Role of Cultural Diversity and Acculturation in Ethnic Marketing of Banking Service in Sweden

School of Sustainable Development of Society and Technology
Mälardalen University Västerås

MIMA International Marketing

Master Thesis (EFO705)
Role Of cultural diversity and acculturation in
ethnic marketing of banking services in Sweden
Tutor
Tobias Eltebrandt tobias.eltebrandt@mdh.se
Authors
Muhammad Rizwan rizwan.sh@gmail.com
Zahid Mustafa zahidbinmustafa@gmail.com
Date: 2009-06-10
Acknowledgement
In the name of Allah, the most beneficent the most merciful.
We would like to convey our eternal appreciation to every person that helped to make this thesis
possible and we accept that without their help this thesis wouldn’t be able to complete. Therefore
we would like to dedicate our acknowledgment for all of those who contributed in our thesis
work.
First of all, we would like to give foremost and special thanks to our supervisor Tobias
Eltebrandt for his guidance and recommendations throughout the course duration particularly the
time after seminars which he spared for us.
We would also like to thank to those respondents who help in conducting our survey such as
bank officials and different people.
We also thank to our main and side opponents for their feedback on our studies which really
helped us in further improving our work.
We also thanked to Malardalen University for providing every facility we needed to complete
this theis such as computer labs, library resources, and electronic journals.
Lastly, we would like to give special thanks to our parents whose prayers enabled us to complete
this work. They raised us, taught us, supported us and loved us. We dedicate our work to them.
Muhammad Rizwan
Zahid Mustafa
Abstract
Date: 2009-06-10
Program: MIMA-International Marketing
Course Name: Master Thesis (EF0705)
Title: Role Of cultural diversity and acculturation in ethnic marketing of
banking services in Sweden
Authors: Muhammad Rizwan rizwan.sh@gmail.com
Zahid Mustafa zahidbinmustafa@gmail.com
Tutor: Tobias Eltebrandt
Strategic questions: How important is the customers ethnic background, culture and level
of acculturation when choosing a provider of financial services?
What are Swedish service-providers currently doing in order to target

these customers and what adjustments would be most beneficial for
them to implement in order to obtain more customers?
Purpose: To examine whether the banks in Sweden are considering the cultural
diversity and acculturation when providing services or not, and how
the attitude of ethnic consumers has been developed”
Method: In this research qualitative research method are used to analyze the
information. Two different consumer and bank surveys conducted to
extract the information needed to complete this study. A common
theoretical framework and questionnaire was developed to find data
from consumers and a different questionnaire for this particular study.
Conclusion: Ethnic consumers in Sweden are attractive market for banking

industry because of the growing nature of immigration in the country.
Although Swedish banks realize this fact but they are not targeting
ethnic consumers differently. There are factors for Swedish banks
which could play important role such as cultural identity, language,
national identity, and acculturation while formulating strategies for
targeting ethnic consumers.
Keywords: Cultural Diversity, Acculturation, Ethnic consumer, Banks

Table of Contents
1. Introduction ............................................................................................................................. 1
1.1 Background to this study .................................................................................................. 2
1.2 Strategic questions............................................................................................................ 3
1.3 Purpose ............................................................................................................................. 3
1.4 Target audience ................................................................................................................ 3
2. Literature Review .................................................................................................................... 4
2.1 Relationship between Cultural Diversity and Marketing ................................................. 4
2.2 Cultural diversity and Consumer Behavior ...................................................................... 5
2.3 Acculturation .................................................................................................................... 6
2.4 Consumer Acculturation .................................................................................................. 7
2.5 Effect of Ethnic Affiliation on Acculturation .................................................................. 7
2.6 Measurement of Acculturation ......................................................................................... 8
2.7 Trends in Consumer Acculturation Studies ..................................................................... 8
2.8 Segmentation and marketing mix strategies..................................................................... 9
3. Methodology.......................................................................................................................... 10
3.1 Choice of Topic .............................................................................................................. 10
3.2 Research Methods .......................................................................................................... 10
3.2.1 Data Collection Methods ........................................................................................ 11
3.2.2 Questionnaire selection ........................................................................................... 11
3.2.3 Elaboration of Questionnaire .................................................................................. 12
3.2.4 Selection of Respondents ........................................................................................ 13
3.2.5 Data and its valuation.............................................................................................. 13
3.3 Limitation of Study ........................................................................................................ 14
4. Findings & Analysis .............................................................................................................. 15
4.1 Banks and their ethnic market in Sweden ...................................................................... 15
4.2 Ethnic consumers as a potential market segment ........................................................... 18
4.3 Importance of different cultural factors ......................................................................... 19
4.4 Effects of cultural diversity on consumer behavior ....................................................... 24
4.4.1 Self Identity and cultural group .............................................................................. 24
4.4.2 Involvement in cultural group ................................................................................. 25
4.4.3 Swedish as first language ........................................................................................ 25
4.4.4 Use and fluency in Swedish .................................................................................... 25
4.4.5 Ethnic purchase behavior ........................................................................................ 26
4.4.6 Importance of religion............................................................................................. 26
4.4.7 Celebration of religion and different events ........................................................... 26
4.5 Importance of Acculturation in decision making ........................................................... 28
4.5.1 Cultural Identity ...................................................................................................... 28
4.5.2 Fluency of Swedish Language ................................................................................ 29
4.5.3 Celebration of Swedish Events ............................................................................... 29
4.5.4 Swede as Close Friends .......................................................................................... 30
4.5.5 Factors Affecting Selection of banks ...................................................................... 31
4.6 Marketing Strategy to Ethnic consumers by Swedish banks ......................................... 32
4.6.1 Marketing Mix, Communication, banks and Ethnic customers .............................. 33
4.6.2 Communication between customers and banks ...................................................... 37
5. Conclusion ............................................................................................................................. 38
6. References ............................................................................................................................. 42
Appendix: Banks Survey .............................................................................................................. 46
List of Figures
FIGURE 1: A MODEL OF THE INTERACTION OF CULTURE AND CONSUMER BEHAVIOR (LUNA&

GUPTA, 2001) ........................................................................................................................... 5
FIGURE 2 : CULTURE SWAPPING BY THE ETHNIC PARTICIPANTS (JAMAL. A, 2001) .......................... 7
FIGURE 3: FRAMEWORK FOR INTERPLAY OF MARKETING, ETHNICITY AND CONSUMPTION (JAMAL.
A, 2001) ................................................................................................................................... 7
FIGURE 4: POPULATION IMMIGRATION RATIO IN SWEDEN (SWEDEN POPULATION STATISTICS, 2009)
............................................................................................................................................... 16
FIGURE 5: TOTAL IMMIGRANTS FIGURE CAME BETWEEN THE PERIODS OF 2002-2008 .................... 18
FIGURE 6: IDENTIFICATION OF CULTURAL GROUP AMONG ETHNIC CONSUMERS ............................. 28
FIGURE 7: GRAPHICAL ILLUSTRATION OF RESPONDENT’S ABILITY TO SPEAK SWEDISH LANGUAGE
FLUENTLY ............................................................................................................................... 29
FIGURE 8: GRAPHICAL ILLUSTRATION OF INOLVEMENT AND CELEBRATION OF SWEDISH EVENTS BY
ETHNIC CONSUMERS ............................................................................................................... 30
FIGURE 9: GRAPHICAL ILLUSTRATION OF SWED AS CLOSE FRIENDS FOR ETHNIC CONSUMERS ....... 31
FIGURE 10: GRAPHICAL REPRESENTATION OF DIFFERENT FACTORS MEAN IN CHOOSING OF BANKS
BY ETHNIC CUSTOMERS........................................................................................................... 35
FIGURE 11: BANKS AND LANGUAGE FOR COMMUNICATION WITH ETHNIC CUSTOMERS .................. 35
FIGURE 12: CUSTOMERS AND THEIR PERCEPTION REGARDING ADVERTISEMENT COMMUNICATION 37
List of Tables
TABLE 1: SWEDEN’S PRELIMINARY POPULATION STATISTICS BY MONTH CHANGES UP TO AND

INCLUDING 31 MARCH 2009 (SWEDEN POPULATION STATISTICS, 2009) ................................ 15
TABLE 2: BANKS AND THEIR MAJOR ETHNIC CUSTOMERS’ NATIONALITIES .................................... 17
TABLE 3: IMMIGRATION STATISTICS (CITIZENS OUTSIDE THE NORDIC) BY COUNTRY OF BIRTH, SEX
............................................................................................................................................... 19
TABLE 4: TOTAL SCORE AND MEAN VALUE FOR FACTORS BY BANKS ............................................. 20
TABLE 5: DISTRIBUTION OF MEAN VALUE FOR IMPORTANCE OF DIFFERENT FACTORS BY BANKS ... 21
TABLE 6: TOTAL SCORE AND VALUE FOR FACTORS BY ETHNIC CONSUMERS .................................. 22
TABLE 7: DISTRIBUTION OF MEAN VALUE FOR IMPORTANCE OF DIFFERENT FACTORS BY BANKS ... 23
TABLE 8: DIFFERENT BANKS IN SWEDEN AND DATA ABOUT THEIR CUSTOMER RESEARCH ............ 27
TABLE 9: IMPORTANT FACTORS FOR DECISION MAKING IN SELECTION OF BANKS .......................... 31
TABLE 10: BANKS CURRENT MARKETING STRATEGY ..................................................................... 32
TABLE 11: DIFFERENT FACTORS MEAN IN CHOOSING OF BANKS BY ETHNIC CUSTOMERS ............... 34
TABLE 12: BANKS AND HIRING OF EMPLOYEES TO SERVE DIFFERENT ETHNIC GROUPS ................... 36
1. Introduction
The rising competition in global markets, especially in developed countries like in Sweden,
has forced service providers to look into different market segments rather than considering
national market as homogeneous market. Because of the complexity in needs and diversity in
consumer behavior conventional approach for market segmentation is not enough under one
market As Maslow’s Hierarchy of Needs present in universal model such as Self-
actualization need which is highly directed to individual but in case of collectivistic cultures,
actualization is not for individual but in the interest and honor of the group (Mooij, 1998),
Therefore, identifying and understanding the characteristics of different ethnic groups can
play a role in market segmentation.
Markets look homogenous in macro picture but reaching at micro level it proves to be
heterogeneous and the overall market comprises on several market segments. Ethnic
consumers are individuals which belong to a specific ethnicity-based group which make them
distant from mainstream consumers in national market (Pires G., Stanton J., 2000). Ethnic-
based consumers represent specific consumer’s behavior and they must be indentified and
address as separate segment. It is very vital for marketers to offer products according to their
specific needs. As Landsberg (2006) put immigrants in “New Customer” category because
they bring their needs according to their ethnic (national) identity which reflects that for
targeting niche market, financial service provider in Sweden can get a big share of business
by understanding and addressing “New Customers” needs.
To identify needs of any specific ethnic group, financial service providers in Sweden should
identify and understand cultural background, acculturation level of these groups. Culture has
hundreds of definitions and it vary with one region to other but normally culture comprise of
different attributes including of human behavior, values, family structure, language, religion
and life style (Helgesson,1996). While acculturation level pointed that when groups of
individuals having different cultures come and intact with each other, and accept values of
each other, it brings changes in their original culture and values (Marta, 1979). Considering
ethnic group as a small group which has different needs, language difference and difficulty in
cultural understandings from rest of consumers, targeting ethnic consumers is considered to
be difficult (Pires, Stanton, 2000). Considering growing ethnic market in Sweden, it is
stressing on the importance for service providers to carry out market research in order to
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understand ethnic consumer behavior and their needs and bring them under their consumer
net.
Targeting ethnic groups effectively is crucial principal as message must be clear, direct and
understandable to ethnic consumer and carry such message which would address all
characteristics that make collectively ethnic consumer behavior (Svendsen, 1997). Therefore,
our study will accomplish the core objective that what financial service providers are doing to
target different ethnic groups in Sweden and in which way.
1.1 Background to this study
This thesis is a part of a larger collaboration between students during the spring semester of
2009. The aim was to work together in order to collect more data and allow deeper analysis in
the specific area chosen by each student-group. The goal was to come up with advice for
banks on how to target immigrants in Sweden.
During this process a common theoretical framework was decided on and a questionnaire was
developed. The questionnaire was written in English and later translated to several other
languages in order to reach some of the target groups that were not fluent in English.
The chosen structure of each paper was to write it more like an article than a “traditional”
master thesis. If a group decided to add more concepts on top of the ones agreed upon at the
beginning of the project they will describe these in the paper. The following theories were
used for the development of the questionnaire and much of the analysis:
The cultural dimensions by Geert Hofstede, Consumer behavior, Acculturation, Culture

(including language and religion), Demographics and the SERVQUAL model. During the
courses leading up to the thesis, all students had used the books below and were familiar with
the content. A large amount of articles and books were also covered so the framework is not
based on these books alone.
• Fisher, Researching and Writing a Dissertation: A Guidebook for Business Students.

• Grönroos, C, Service management and marketing
• Jamal, A., Evans M.M., Foxall, G. Consumer Behavior
• Cateora, P. and Ghauri, P., International Marketing
• Porter, M.E.: On Competition
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1.2 Strategic questions
All groups agreed to use one or both of the following strategic questions and to find research
questions related to these:
• How important is the customers ethnic background, culture and level of acculturation
when choosing a provider of financial services?
• What are Swedish service-providers currently doing in order to target these customers
and what adjustments would be most beneficial for them to implement in order to
obtain more customers?
1.3 Purpose
“The purpose of this study is to examine whether the banks in Sweden are considering the
cultural diversity and acculturation when providing services or not, and how the attitude of
ethnic consumers has been developed”
1.4 Target audience
The outcome of this study will help banks in Sweden in formulating their strategies to target
ethnic consumers in future. This study will also help them reevaluate their current strategies in
this context and make appropriate changes in their strategies.
Also those banks which do not consider Swedish ethnic market as separate segment and those
banks which are planning to target ethnic consumers as separate market segment other than
mainstream consumer can consider this study in order to find out the importance of ethnic
consumers and factors which they should consider before targeting this particular segment

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2. Literature Review
In this chapter we will review different articles, journals and books to analyze and select
different concepts and theories regarding cultural diversity, acculturation, and ethnic base
segmentation and marketing mix strategies
2.1 Relationship between Cultural Diversity and Marketing
Countries are becoming more culturally diverse with the passage of time and now many
cultures are existing in one national boundary (Pires, Stanton & Cheek,2003) which are
leading cultural diversity in any country and in result world is now characterized by diverse
ethnic subcultures (Cui & Chouhdhury, 2002). Having different language, traditional
practices, belief, social and family system, ethnic and national identity, many minority
(ethnic) groups are living with main stream population and behaving differently in many
aspects including consumption from rest of population. In past, multiculturalism and cultural
diversity consider being problem in society (Wilkinson & Cheng, 1999) and that’s why
organizations developed their marketing strategies for ethnic consumers in few countries
including US, UK, and Australia.
But today multicultural diversity in society consider in positive terms because many
opportunities and benefits are now attributed with multiculturalism and multicultural society
(Wilkinson & Cheng, 1999). Having large number of ethnic groups and their population in
different societies, and showing different behavior in many aspects life, it can affect on
marketing practices and consumer behavior. Jamal (2001, p.1599) indicated that “marketing
practices are embedded in society and have significant macro level impact on the way
consumer and maintain their identities”, therefore in culturally diverse societies, consuming
behavior is widely affected by national and ethnic identity, demographic, belief and other
factors. That’s why proper and objective analysis of ethnic consumer’s behavior and needs is
necessary to offer them products (Burton, 1996). Specific need of ethnic customer lead
different marketers to provide them solution and in response marketers are now considering
ethnic consumers as potential consumers, in view of and identifying them as new segment and
adopting marketing mix strategies to target them.
Moreover current multicultural market place require understanding ethnic consumer’s needs
beyond basic and simple understanding (Jamal, 2001) but it needs of in-depth analysis of
ethnic consumers regarding their previous culture, measuring of acculturation level, following
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to belief, slow or speedy integration with society and different family structure, and by this
way companies can expand their customer base in the era of competition, globalism and
internationalization.
2.2 Cultural diversity and Consumer Behavior
As culture has different definition but normally culture is characterized by symbols, belief,
ritual practices, art forms, ceremonies, language, rituals of daily life and these characteristics
are considered sharing modes between individuals having same culture and ultimately it
develop behavior of these individuals (Swidler, 1986) while Hofstede (Hofstede, 1997, p.5)
define it as “ the collective programming of the mind which distinguishes the members of one
group or category of people from another” (Luna & Gupta, 2001, p.46). When individuals of
specific ethnic group move from one locality to another, they bring their culture also on new
place and practice it. Cultural values of these individuals are affecting on many aspects of life
including their purchasing behavior and consumption. From Figure 1, it shows that culture
develop and grow by values, symbols, rituals, heroes with passage of time. Individual culture
then influences some specific ethnic group culture and then society culture as a whole at the
end. It is also clear from figure 1 that culture effect on consumer behavior and ultimately
consumer behavior and culture merge with each other and develop some new values in
society.
Cultural Value System
Symbols
Values
Heros
i l
Marketing Communication
Consumer Behavior
Cognition
Affect
Behavior
Figure 1: A model of the interaction of culture and consumer behavior (Luna& Gupta,
2001)
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Now we look this in another scenario that when an individual come into a different cultural
society, actually he also brings cultural values with himself which is integrated with consumer
behavior and contribute in development of any additional value in new culture and consumer
behavior in host society. On the marketer end, marketing strategies are contributing effect on
sides, consumer’s end and culture. Here marketers get important role to integrate main stream
consumer’s behavior with ethnic consumer’s behavior, develop marketing mix according to
their consumer behavior and provide solutions. Therefore, it is core issue for marketer to look
on needs of consumer behavior in multicultural society and then study and identify weather
ethnic group are accepting culture of host country by adding any cultural values from their
side or maintaining their culture (Burton,1996). According to what marketers identify in this
regards, marketers, then, will be able to address ethnic consumer’s needs.
2.3 Acculturation
Redfield, Linton and Herskovits (1936) define acculturation as “…those phenomena which
result when groups of individuals having different cultures come into continuous first-hand
contact, with subsequent changes in the original cultural patterns of either or both groups”
(p.149). Acculturation can be describe as when individual culture gets dominant by host
culture influencing one’s values and beliefs and become more alike the dominant majority
ethnic identity from the original ethnic identity (Quester and Chung 2001). People around the
world migrating to different countries due to several reasons carrying their native culture with
them to host country and during the process they try to learn the host culture in order to
become a part of society. In many cases, acculturation looks at how consumers from one
country adapt their attitudes and behaviors of a host culture (Dion and Dion 1996). As time
pass on these immigrants learn behavior and attitudes of host country and start practicing
them because of its dominance in the society which affect their original ethnic identification
and become more alike host ethnic identify and this particular change affect their
consumption pattern as well.
It is the matter of fact that both native and host culture of immigrant undergo changes on
continuous basis, usually mainstream host culture has more impact on individual comparing
the impact of immigrant cultures on the mainstream host culture (Kim 1985). Immigrants
which culture is not dominant in the society and their need to adapt the host culture in order to
get accepted by host culture is greater than the host cultures’ need to include aspects of the
immigrant culture
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Figure 2 : Culture swapping by the ethnic participants (Jamal. A, 2001)
2.4 Consumer Acculturation
Many studies has been done in recent times considering ethnic consumption, and there is
debate between different scholars on whether the constructs of ethnic identity and
acculturation which are almost identical because they both rely on similar measures such as
language, reference group influence, adherence to cultural customs, and food preferences to
operationalize them (Hui, Joy et al. 1992). As immigrants start living in host country and
continuing molding themselves according to the host culture which affect their acculturation
level also influencing and affecting their consumption behavior. People start to purchase
product/services which they never consider before. Consumer acculturation is a subset of
acculturation and socialization. While acculturation is broader perspective, consumer
acculturation is more specific to the consumption process of the immigrants. Consumer
acculturation can be seen as a socialization process in which an immigrant consumer learns
the behaviors, attitudes and values of a culture that are different from their culture of origin
(Lee 1988).
Figure 3: Framework for interplay of marketing, ethnicity and consumption (Jamal. A,

2001)
2.5 Effect of Ethnic Affiliation on Acculturation
Peñaloza (1994, 1995) suggests that ethnic affiliation is negatively related to consumer
acculturation such that the more a person affiliates with his or her ethnic community, the less
7

are his or her chances to adapt to and adopt mainstream values and behaviors. People from
different ethnic group try to remain in contact with their community due to several reason
such as social and security need. It is common physiological concept that people feel more
safe when their relatives and friends are around them, such behavior negatively affect the
acculturation level of those person as they most of time remain in their ethnic community
which force them to continue practicing their native culture and de motivate to adopt host
culture values and behavior.
2.6 Measurement of Acculturation
Ethnic marketer always try to learn the acculturation level and ethnic factors in the society
which they further use in their marketing activities to attract those ethnic group. To measure
acculturation and ethnicity there has been several measurement factors proposed in both the
social sciences and the consumer behavior literature. Most common factors that have been
considered in the measurement are language, reference groups, intermarriage, identity, culture
(Laroche, Kim and Tomiuk 1998; Lee and Um 1992; Peñaloza 1989; Suinn, Rickard-
Figueroa, Lew and Vigil 1987; Valencia 1985), and religion (Hirschman 1981).
Communication based measures, such as media usage, have also been used (O’Guinn and
Faber 1985 & Kim, Laroche et al. 1990). These factors can help marketer to understand and
measure the acculturation level and ethnicity in the society and tailor their marketing activities
to attract ethnic consumers in the society.
2.7 Trends in Consumer Acculturation Studies
There has been three different trends appeared in consumer acculturation studies, first is
ethnic identity as most of the ethnic groups after migrating continuing saving their original
identity and always differentiate themselves from the mainstream consumer. Marketers can
use ethnic identity to differentiate those ethnic groups as separate segment in their marketing
activities, Second is the strength of ethnic affiliation which depends on the strength of
affiliation of an individual with its ethnic group and as long the affiliation remains strong it
will decrease acculturation level among those individuals, last one is situational ethnicity
where consumer behave according to the situation and feel ethnicity in specific situations.
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2.8 Segmentation and marketing mix strategies
Companies are adopting and tailoring their marketing strategies according to market situation.
Different markets have certain level of diversity where people from different ethnic
background are living together. To be effective marketer companies need to segregate the
whole market into various distinctive segments which can help marketer to understand the
needs and expectation of specific segment more easily. This complete understanding of
market segment can help companies to adopt appropriate marketing mix strategy including
product features, distribution channels, promotional strategies and pricing. To reach these
market segments, companies may chose different levels of marketing mix differentiation such
as standardize marketing, product adaptation, advertising adaptation, and complete ethnic
adaptation (Cui, 1997). Adopting any particular marketing mix strategy largely depends on
consumer trends in the market.
Effective ethnicity based segmentation mainly focuses on achieving homogenous reactive

consumption behavior from a specific segment to marketing stimulus over a period of time
long enough for the marketing action to reach the targeted population. To identify and
conclude the homogeneous consumption from specific segment companies should consider
that the target population needs to be identifiable, measureable, actionable, unique, stable, and
homogenous in the relevant characteristics. (Donthu and Cherian, 1994; Thomas, 1980)
9

3. Methodology
In this chapter authors have developed methods which describe how authors will collect
findings to analyze research question based on the conceptual framework.
3.1 Choice of Topic
This thesis is part of broader study which focus is to come up with advice for banks on how to
target immigrants in Sweden. While formulating the common theoretical framework for the
overall study different concepts and factors was discussed between all the groups. Looking at
the common theoretical framework we found interest in cultural diversity and acculturation
and felt that these factors have greater importance when formulating strategies to target ethnic
market.
On the other hand most of the groups were focusing specific ethnic groups but we decided to
cover both banks and overall ethnic consumers in Sweden. In this thesis we have covered the
current practices for targeting ethnic groups by banks from survey and compare and analyze
that information which we got from banks to the information we got from other consumer
survey.
3.2 Research Methods
Considering core objective of study for researching on ethnic marketing from banking service
provider’s perspective, it needs an in depth knowledge and detailed information from banks
and if in case the targeted banking service providers haven’t started to target ethnic consumers
yet, authors can discuss with them about their future plan and viewpoint on ethnic marketing.
Therefore authors have considered qualitative strategy to conduct this research work. Bryman
(2004) described that apparently it seems less difference between two strategies because in
quantitative one researcher use measurement while not in quantitative because it depends on
words rather than quantification in collection and analysis of data. In view of facts about
qualitative research, research question shows that authors are going to examine the fact that
what are banking service providers in Sweden doing in area of ethnic marketing while dealing
two issues related to offering to ethnic consumers; one is acculturation and other is cultural
diversity and how ethnic consumers attitude has been developed in this regard. The study
need in depth information to analyse data to address research question. Other major issue
which relates to qualitative prospect to facilitate study needs is that the data collection method
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should be in flexible and open way (Silverman, 2000) so that authors can discuss with
interviewee in detail or collect information through questionnaire with open ended questions.
Furthermore, information on ethnic marketing by banking service provider in Sweden is not
available at large amount, therefore there might be chances that banking service providers still
would not start their operation to target ethnic consumers but in this article authors have also
discussed with them about their future prospects in ethnic market.
3.2.1 Data Collection Methods
According to nature and requirement of study, selection of methods for data collection is
much important and it affect also on overall study’s result because study mainly focus on
empirical data collected by these methods (Brewerton ,Millward, 2001). Several types of
methods are used for data collection including interviews, questionnaires, panels, observation,
documents, databases (Fisher, 2004) for this study authors have designed two different survey
questionnaires both from consumers and marketers after evaluating pros and cons of different
selection methods. A common questionnaire has been designed for the overall study which
was used by all the groups included in this project while a separate survey has been
specifically designed for this particular study since the research question of this study is also
focusing banks. In next section, authors will discuss about the selection of survey
questionnaire study and its justification.
3.2.2 Questionnaire selection
Due to time constraint, difficulties in getting appointment with respondents from different
financial providers and getting precise information, authors decided to conduct surveys
through two different questionnaires from various service providers and ethnic consumers in
Sweden. Authors have also concerned that through questionnaire the aim of credibility,
reliability and diversity in information can be achieve. Content and type of questions,
structure, formatting and sequence of questions in questionnaire are critically developed.
As questions are foundation of questionnaire (Frankfort & Nachmias, 1997), authors put such
questions in questionnaire which clearly address to different insides of research questions
such as cultural diversity, acculturation, and ethnic consumer from financial service
provider’s perspective. Authors have used mixed type of questions in the questionnaire such
as open and close ended questions. The reason for using open ended questions is because this
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particular study is based on qualitative strategy therefore it needs to plant such questions in
front of respondents which provide them opportunity to give answer with independently. On
the other side close ended questions are used to get information with specified value where
authors found that respondents would like to give specific information.
Format of questionnaire is crucial part in questionnaire design because it will develop

respondent’s interest while filling it therefore authors developed different parts of
questionnaire and try to locate all of them in such logical manner which can provide easy way
for respondents to complete the questionnaire.
3.2.3 Elaboration of Questionnaire
Questionnaire has been organized based on theoretical analysis of different literatures

concerning cultural diversity, acculturation, segmentation and different methods of offering
products. The aim of preparing questionnaire was to gather the views from different financial
services regarding their ongoing practices for accommodating ethnic consumers in Sweden
and bearing in mind different perspective such as cultural diversity, acculturation level which
differentiate ethnic consumers from mainstream consumers. The overall construction of
questionnaire has been divided into four main sections which are cultural diversity,
acculturation, segmentation, and product offering.
Questionnaire covered the cultural diversification among Swedish consumers in terms of

financial companies’ views. Respondents will be ask for any specific changes they made in
their marketing tactics such as hiring employees from different ethnic background as in a
multicultural marketplace, marketing enterprises usually try to hire and operated by people of
different ethnic backgrounds which helps them to understand, identifying and serving the
needs of consumers of different ethnic backgrounds (Jamal, 1996) and providing product
information in different languages since marketers needs to respond to consumer differences
with differentiation in marketing and segmentation strategies. (Sheth et al., 1999)
In the survey respondents were asked that how banks are attaining ethnic market segments
adopting different levels of marketing mix differentiation such as standardize marketing,
product adaptation, advertising adaptation, and complete ethnic adaptation. (Cui, 1997) and
which cultural factor they consider while formulating their marketing strategy. Respondent
was also asked about the importance of acculturation level and cultural factors they consider
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while crafting their offerings and how much cultural diversity influencing their offerings to
define ethnic group.
Lastly respondents were asked about their opinion about their future prospects for ethnic
marketing and their intentions to formulate strategies considering ethnic market specifically.
3.2.4 Selection of Respondents
Since selection of respondents and its number from overall population mainly focus on the
nature of study (Frankfort, Nachmias, 1997), therefore in this case authors decided to select
different respondents for interviews and for questionnaire. This study focuses on banks and
their ethnic consumers in Sweden which leads authors to select selective number of service
providers and consumers from different ethnic group in Sweden.
3.2.5 Data and its valuation
Authors used different type of questions questionnaire including dichotomous questions,

checklists, rating, ranking and open questions (fisher, 2004) and so for analysis and
assessment purpose each type of question has different value to assess and analyze. Each
question has attributed with specific value which is identifiable and measurable for effective
analysis.
Dichotomous questions are analyzed using percentile method while different other methods
are used such as mean and standard deviation to analyze the data got from banks and ethnic
consumers.
For rating questions, authors value these questions from value “5” to “1” as from “Most
important” for “5” and “Not important” for 1. For describing of different levels of
respondents’ choice in these questions authors will calculate value by the help of formula:
Value= Total Score / total number of respondents
While Total Score calculated by: Total Score= (5*Total number of respondents to choose
choice of “5”)+ (4*Total number of respondents to choose choice of “4”)+(3*Total number of
respondents to choose choice of “3”)+ (2*Total number of respondents to choose choice of
13

“2”)+ (1*Total number of respondents to choose choice of “1”). After it value then
corresponds with different score range which was developed by formula:
Interval of value in question= (Highest value-lowest value)/ total number of intervals in

values = (5-1)/5 =0.80
From this formula following value range was developed and their corresponding meaning:
Value Range Meaning
1.00-1.80 Attribute attached with choice “1” in question
And in last, adding open questions in questionnaire is good idea (Fisher, 2004) to give
freedom to respondents by which they will give answer in the way what they want. Authors
also include open questions in questionnaire just to let respondents to feel liberty in answering
of question which are relating to qualitative perspective.
3.3 Limitation of Study
As this study is qualitative-based research and authors carried out two different surveys from
banks and consumers therefore authors might not be able to collect precise and accurate
information regarding different topics to address research question. The other major limitation
of method choice is about questionnaire carrying open and close ended both types of
questions. Authors send appropriate questionnaires to different respondents who are working
in their organization’s head offices and different ethnic consumers which are using banking
services in Sweden and for that authors adopted the strategy of survey because of time limit
for this research. Furthermore, open ended questions may return with lot of irrelevant
information which can effect over all study while analyzing it with theories. Getting
appointment and information from banks officials has been very difficult experience since
most of the respondents deny giving information for this study
14

4. Findings & Analysis
In this chapter findings from consumer survey and survey from banks has been analyzed
based on the common theoretical framework authors developed for this study.
4.1 Banks and their ethnic market in Sweden
Sweden is one of the countries where immigrant’s ratio is increasing every year because of its
stable political and economic situation and peaceful living environment. Immigrants’ moving
to Sweden is mainly due to any conflict in their home countries like Iraq, in search of better
earning, looking job opportunities and high-standard living. So authors can categories
immigrants on two broad categories, one who came due to any political basis and others are
economical. Furthermore, there are also a kind of temporary immigrants; students, who come
every year in large number and search financial products according to their need. According
Högskoleverket Annual Report (2008), quarter of 81,300 new university entrants came abroad
for higher studies in Sweden. Therefore, every year about 20,000 foreigner students come to
Sweden having different cultural background with different needs.
Table 1: Sweden’s Preliminary Population Statistics by month Changes up to and including

31 March 2009 (Sweden Population Statistics, 2009)
Year Population at the end of period Immigrants

1998 8 854 322 49 391
1999 8 861 426 49 839
2000 8 882 792 58 659
2001 8 909 128 60 795
2002 8 940 788 64 087
2003 8 975 670 63 795
2004 9 011 392 62 028
2005 9 047 752 65 229
2006 9 113 257 95 750
2007 9 182 927 99 485
2008 9 256 347 101 171
15

Now look why consumer from different ethnic background is important for different financial
service provider to target them and offer products. Population of Sweden is currently now
more than nine million (table 1) while immigrants number increasing year to year. In 1998,
more than 49391 immigrants were inducted in Sweden’s population while this number is
raised to 99485 in 2007 and 101171 in 2008 which indicate that there is more than 51%
increase in immigrant ratio in 2008 from immigrants in 1998. Table(1) figures show that
770229 immigrants has been added in last ten years which are now 8.32 % of total population
Figure 4 which shows its significance in term of their needs for financial products. As Sweden
has welcoming policies towards immigrants, expectation of immigrants for fulfilling of their
needs become high and they look for such products which would be closer to their culture and
belief.
Figure 4: Population immigration ratio in Sweden (Sweden Population Statistics, 2009)
People, coming from different ethnic background and having different consumer behavior,
could become potential customers for banks to expand their market share. Therefore, primary
step to recognize their different cultural and belief needs with service quality factor so that
bank can bring them in their customer net.
As Maslow’s Hierarchy of Needs present in universal model such as Self-actualization need

which is highly directed to individual but in case of collectivistic cultures, actualization is not
for individual but in the interest and honor of the group (Mooij, 1998), therefore careful
identification and understanding different characteristics of ethnic group and their needs is
important for segmentation of market. Responding to the question regarding awareness about
16

changes in population regarding immigration, four banks including Swedbank, SEB, Nordea
and Länsförsäkringar are aware and all three have experience to serve different ethnic groups
(Table2).
Table 2: Banks and their major ethnic customers’ nationalities

Länsförsäkringar
Organization Swedbank SEB Nordea
Bergslagen
Aware of the changes happening
in the characteristics of the Yes Yes Yes Yes
Swedish population
Experience of serving customers
Yes Yes Yes Yes
from different ethnic groups?
Nationalities to serve other than
customers from Nordic countries?
Nationality 1 Americans Iraqi Nigeria Turkish
Nationality 2 English Indian Indian England
Nationality 3 Iranian Chinese Chinese Thailand
But interestingly, all four are targeting different ethnic groups of different background. SEB
and Nordea both are targeting Chinese and Indians while SEB is considering Chinese as
potential and on the other hand Nordea is serving those customers who have Nigerian ethnic
background. Länsförsäkringar has more interest in the customers who have Turkish, England
and Thailand national identity. Looking at immigration statistics from figure 5, it has been
found that most prominent immigrant figure is about 58988 Iraqis from 2002-2008. On the
other hand in table 2 it has been found that most such as Nordea and Länsförsäkringar are not
dealing or providing services exclusively to them. Also Indian and Chinese number is less
than Somalian and Thailand but banks are neglecting Somalian and Thailand’s background
consumers but considering Indians and Chinese. Interestingly Länsförsäkringar is missing
Iraqis, Somalian and Chinese who have more in number than Turkish. And in last Iranian has
reasonable figure of 12100 but only Swedbank is considering them as potential for services.
17

Figure 5: Total immigrants figure came between the periods of 2002-2008
From above discussion, it shows that Banks’ strategy in identification and recognition of
characteristics of different ethnic group is not up to mark because missing the largest
community of Iraqis couldn’t give positive outcome in their business. Furthermore, many
ethnic groups in figure 5 have same characteristic group like Iraq and Iran could have some
common characteristics including culture, language, belief and they could be combined on
these basis. But still banks are not combining different ethnic group and considering them
individually.
4.2 Ethnic consumers as a potential market segment
An interpretation from the statistics provided by SCB (Statistiska centralbråyn) confirmed that
ethnic groups are becoming an emerging market segment for business. During past few years
Sweden is experiencing increment in immigration ratio subsequently since various ethnic
groups from different countries are immigrating to Sweden based on several grounds and
becoming considerable part of Swedish overall population (Table 3). These ethnic groups
contribute sufficient part in enriching economy and are significantly different from
mainstream consumers based on their race, religion, language group, a shared history and
origin, nationality, etc. (Berthoud et al., 1997; Phinney, 1996a, b; Venkatesh, 1995).
According to the findings in consumer survey of 800 population sample there are 40.25%
people who speak English, 21.25% Thai, 9.75% Polish, 8.25% Russian, 7.37% Arabic,
7.125% Persian(Farsi), and 0.875% other languages.
18

Table 3: Immigration Statistics (Citizens outside the Nordic) by country of birth, Sex
2004 2005 2006 2004 2008
China (excluding Hong
Kong) Men 500 613 833 1039 1196
Women 1019 1099 1161 1374 1506
Total 1519 1712 1994 2413 2702
Iran (Islamic Republic
of) Men 660 502 917 714 893
Women 722 593 1055 769 917
Total 1382 1095 1972 1483 1810
Iraq Men 1292 1454 6807 9201 6161
Women 1685 1458 4009 6067 6516
Total 2977 2912 10816 15268 12677
Poland Men 1113 1744 3409 4215 3820
Women 1342 1674 2934 3289 3145
Total 2455 3418 6343 7504 6965
Thailand Men 371 451 515 532 563
Women 1711 1675 1962 2078 2543
Total 2082 2126 2477 2610 3106
other countries Men 10758 12725 19124 20430 22002
Women 10235 11081 16639 16900 18369
Total 20993 23806 35763 37330 40371
Source: SCB (Statistiska Centralbråyn)
Based on a survey from banks show that almost all the Swedish banks in survey are aware of
changes happening in the characteristics of Swedish population and all of them are
experiencing customers from different ethnic groups in their banks which are using different
banking products.
Also from consumer survey it has been found that 100% of population size is using banking
services of one or more banks. These consumers from survey are using almost all the banking
services which different banks are offering to their consumers such as basic account, ATM
card, credit card, loan, internet banking, payment and money transfer, insurance and pensions.
4.3 Importance of different cultural factors
Various scholars has coined different factors of measuring acculturation level to define ethnic
group such as language, reference groups, intermarriage, national identity, culture (Laroche,
Kim and Tomiuk 1998; Lee and Um 1992; Peñaloza 1989; Suinn, Rickard-Figueroa, Lew and
19

Vigil 1987; Valencia 1985). From the result of respondents from bank authors calculate the
value for importance of each factor from banks perspective i.e culture, religion, national
identity, language, adaptation of local culture by immigrants on 5 to 1 rating scale.
Table 4: Total score and mean value for factors by banks

Std.
Swedbank SEB SEB Nordea Länsförsäkringar Mean
Dev
Culture 1 4 5 4 2 3.2 1.64
Language 3 4 4 4 3 3.6 0.54
Religion 1 2 3 1 1 1.6 0.89
National
1 3 3 1 3 2.2 1.09
Identity
Acculturation 1 4 4 1 2 2.4 1.51
Table.4 depicts different values for importance of different factors such as culture, language,
religion, national identity, and acculturation for different Swedish banks while targeting
ethnic groups in Sweden. Looking at the table authors can analyze that except language
Swedbank do not consider any other factor important for them which suggest that Swedbank
currently is not considering these factors for targeting ethnic consumers. Looking at the data
from other banks such as SEB which is considering the importance of culture, language and
acculturation and almost neutral about religion and national identity which suggest that SEB
is much serious about targeting ethnic consumers. Respondent from Nordea suggest that they
only give importance to culture and language and Länsförsäkringar bank gives less important
to culture religion and acculturation while they are neutral about language and national
identity.
While Interval of value in question= (Highest value-lowest value)/ total number of intervals in
values = (5-1)/5 =0.80. Since the interval value for rating 5 scale is 0.80 the value range for
importance level of each aspect is 1.00 – 1.80 (Not Important), 1.81 – 2.60), 2.61 -3.40
(Neutral), 3.41 – 4.20 (Important), 4.21 – 5.00 (Most Important).
In Table.4 mean value of importance level for each factor has calculated based on survey
from banks. As the mean value for culture calculated is 3.2 it falls in the value range of 2.61 –
3.40 (Neutral) with the standard deviation value of 1.64 suggesting that respondents response
20

largely deviating from the mean value, considering language as another factor the mean value
is 3.60 which falls between 3.41 – 4.20 (Important) with standard deviation value of 0.54
suggest that response for this factor from different respondents doesn’t deviate from the mean,
value for religion is 1.6 which falls between 1.00 – 1.80 (Not important) with standard
deviation of 0.89 also suggesting not much deviation from mean, value for national identity is
2.20 which falls between 1.81 – 2.60 (Less Important) with standard deviation of 1.09 and the
value for acculturation is 2.40 which falls between 1.81 – 2.60 (Less Important) having larger
standard deviation from the mean.
Table 5: Distribution of mean value for importance of different factors by banks

Value Range 1.00-1.80 1.81-2.60 2.61-3.40 3.41-4.20 4.21-5.00
Not Less Most
Neutral Important
Important Important Important
Culture 3.20
Language 3.60
Religion 1.6
National Identity 2.20
Acculturation 2.40
These figures from Table 5 indicate that most of the banks are giving more importance to
language and culture since the mean value of these factors are much higher than other factors
such as acculturation, national identity and religion.
In the consumer survey people has been asked about their opinions about different aspects
measurement factors on 1 to 5 rating scale from different questions. In these questions
importance of culture, language, religion, national identity, and acculturation has been
focused.
21

Table 6: Total score and value for factors by ethnic consumers
Factors Mean Value Std. Dev
Culture 2.82 1.14
Language
Text Material 2.80 1.14
Employee 2.83 1.15
Religion
Define on religion 2.65 1.31
Consider religious 2.40 1.18
National Identity 3.56 0.97
Acculturation
Swedish Fluency 3.48 1.35
Swedish Events 3.69 0.98
In Table.6 the value for culture from consumer survey calculated is 2.82 falls in the value
range of 2.61 – 3.40 (Neutral) with 1.14 standard deviation, mean value for the importance of
language for consumer is 2.81 as the value for importance of text material in consumer
language is 2.80 with standard deviation 1.14 and for the importance of employee speaking
consumer language is 2.83 with standard deviation 1.15 so importance of language falls
between 2.61 – 3.40 (Neutral), average value for the importance of religion for consumer is
2.52 as mean value for opinion from consumer defining themselves by religion is 2.65 and
value for opinion of consumer consider themselves as religious person is 2.40 so overall
importance of religion for consumers falls between 1.80 – 2.60 (Less Important), value for
national identity is 3.56 with minimum deviation of 0.97 which falls between 3.41 – 4.20
(Important) and for finding acculturation level value they average value is 3.85 which falls
between 3.41 – 4.20 (Important) as value for consumer’s ability to speak Swedish is 3.48 with
standard deviation of 1.35 and involvement in Swedish events is 3.69 with 0.98 deviation
from the mean value.
Considering the mean values for all above mentioned factors they are categorize in different value
range in table 7. While Interval of value in question= (Highest value-lowest value)/ total
number of intervals in values = (5-1)/5 =0.80. Since the interval value for rating 5 scale is
0.80 the value range for importance level of each aspect is 1.00 – 1.80 (Not Important), 1.81 –
2.60), 2.61 -3.40 (Neutral), 3.41 – 4.20 (Important), 4.21 – 5.00 (Most Important).
22

Table 7: Distribution of mean value for importance of different factors by banks
Value Range 1.00-1.80 1.81-2.60 2.61-3.40 3.41-4.20 4.21-5.00
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
Culture 2.82
2.80+2.83 /2
Language
= 2.81
Text material 2.80
Employee 2.83
2.65+2.40/2
Religion
= 2.52
Define on
2.65
religion
Consider
2.40
religious
National
3.56
Identity
3.48+3.69/2
Acculturation
= 3.585
Swedish
3.48
fluency
Swedish events 3.69
Values for different factors such as importance of culture, importance of language

(Importance of text material in consumer language & importance of employee speaking
consumer language), importance of religion (opinion from consumer defining themselves by
religion & opinion of consumer consider themselves as religious person), importance of
national identity and for finding acculturation level (ability to speak Swedish, and
involvement in Swedish events) has been calculated in Table.6 from consumer survey. Since
the interval value for rating 5 scale is 0.80 the value range for importance level of each aspect
is 1.00 – 1.80 (Not Important), 1.81 – 2.60), 2.61 -3.40 (Neutral), 3.41 – 4.20 (Important),
4.21 – 5.00 (Most Important).
Considering these factors such as culture, language, religion, national identity and
acculturation result from consumer survey indicate that consumer have more importance for
acculturation and national identity comparing culture and language. After comparing the both
result from bank survey and consumer survey authors found that banks are not targeting the
23

importance of consumer national identity and acculturation factor which authors found are
more important for consumer.
4.4 Effects of cultural diversity on consumer behavior
As Pires, Stanton, Cheek, (2003) elaborated that with the passage of time, countries are
becoming more culturally diverse having habitants with different language, traditional
practices, belief, and family system, ethnic and national identity. Therefore multicultural
diversity should be considered as positive factor by marketers while developing marketing
strategies because now many opportunities and benefits are attributed with multiculturalism
and multicultural society (Wilkinson,Cheng ,1999). All this show that in culturally diverse
societies, consumer behavior is widely effected by national and ethnic identity, demographic,
belief and all other above said factors (Burton, 1996) while Jamal (2001, p.1599) pointed it as
“marketing practices are embedded in society and have significant macro level impact on the
way consumer and maintain their identities”.
Now authors look on different characteristics of culture which are asked in consumer’s survey
(Question#24 of consumer survey). Question shows the customers’ opinion regarding
importance of different characteristics of culture while living as immigrants. All these
questions illustrate that how different factors are important for recognizing people belonging
to different ethnic groups. About 816 people responded these questions belonging to different
cultural or regional group. Values range from Strongly Disagree to Strongly Agree, labeled
with 1 to 5 respectively.
4.4.1 Self Identity and cultural group
In reply of this question, more than 117 respondents were strongly agree followed by 361
with Agree and 251 were neutral in supporting of this statement. While 87 respondents fall in
disagree option. By using the formula mentioned in Appendix (A), mean value authors
calculated is 3.57 which fall under the category of “Agree”. Its mean majority of respondents
feel that strong relationship exists between their self-identity and cultural group and it reflect
that they have still concern and attachment with their cultural group.
24

4.4.2 Involvement in cultural group
People who belong to different cultural or regional groups involve within their group with
different strength; strong or weak. Some of them attach with their group strongly and involve
within the group by different ways and activities while someone has weaken relationship and
involvement. Among 816 respondents, authors choose two cultural/regional groups, Thai and
Swedish to analyze them that to what extent they are involved in their cultural groups.
Total number of Thai respondents are 145, among 145, 18 respondents were strongly agree
followed by 119 with agree to the statement that how much they are involved in their cultural
group. While only 8 answered neutral and none among them are disagree or strongly disagree
to the statement. By using the formula (Appendix A) value is calculated is 4.06 which shows
that respondents are agree to the statement that they are involved in the their group.
While among 185 Swedish-cultural/regional group’s respondents, 12 were strongly agreed to

the statement, 69 agree and 62 remained neutral. Total of 39 respondents fall under disagree
and strongly disagree category. Value calculated by formula (Appendix A) is 3.21 which fall
under “Neutral” category. It seems that people belong to “Swedish cultural group” are neither
agree or disagree to the statement but they are at neutral position.
Analysis of both groups shows that Thai are more involved in their regional group comparing
Swedish-group and it can suggest that to whom marketers should target as different potential
customer and to whom marketers could bring in their mainstream customers.
4.4.3 Swedish as first language
Questions regarding language are significant in current study because most of immigrants
come from that country where Swedish is not being used that’s why they feel problems in
communication with banks. in responding of this question, 598 respondents among 816 were
either answer strongly disagree, disagree or were neutral and the value calculated by formula
(Appendix A) is 2.27 moderate and this value is much near to disagree. It shows that most of
the respondents have other language than Swedish as first language.
4.4.4 Use and fluency in Swedish
Data gather in two statement could be interesting for readers that more than 617 respondents
answered that they are either fluent in Swedish or can speak and mean value got by help of
25

formula (Appendix A) is 3.44 which fall under “Agree” category. On the other hand, when
authors asked which language they are used to speak with friends and family, 529 respondents
replied that they used language other than Swedish and 129 falls in neutral category while
only 155 respondents disagree from statement. Facts and figures show that regardless
weather people belong to different ethnic group can speak Swedish or not but they prefer to
speak the language whom they feel comfort and easiness.
4.4.5 Ethnic purchase behavior
This question addresses the issue weather customers buy products on such store that are
labeled by any ethic community. It is interesting for analysis because authors can learn that
what customer’s attitude towards visiting and buying products is. In responding to this
question, 210 respondents are agree and strongly agree towards this approach while 294
respondents are fall under strongly disagree and disagree category and 312 respondents are
neutral while responding it. It shows that it is not important for people to visit ethnic store.
4.4.6 Importance of religion
Religion is one the characteristic of culture which consider being very important in some
countries. Question regarding religion can define the lines that weather it is important factor
while consider any ethnic group’s needs or not. On responding question “I define myself
based on my religion”, only 145 respondents were agree and strongly agree to statement while
392 respondents were strongly disagree and disagree to statement, and 278 among total
population were neutral. It shows that for accessing financial products, religion is not
important for different immigrants. And almost same ratio was observed in question “I
consider myself as very religious”. Value calculated by formula (Appendix A) for statement
6 is 2.65 while for statement 7, it is 2.40; both fall under the category of moderate, having
trend towards disagree.
4.4.7 Celebration of religion and different events
Celebrating religious events can indicate how much person’s life is attached with religion and
to what extent. About 312 respondents among 816 are agree and strongly agree that they
celebrate religious event more based on tradition than faith while 230 respondents are against
to this statement and 283 are neutral. While, interestingly, 529 respondents say they are agree
and strongly agree in response of “I celebrate typical Swedish Events (midsommar, jul) in a
26

Swedish way”. Results of both statements show that while celebrating different religious
events, minorities/ethnic group participated fully in traditional Swedish events which are a
kind of adaptation of local culture. And also it shows that ethnic groups have less concern in
religion while finding of products.
After analyzing culture prospect that how important culture and its value is for customer, now
authors look on different aspects of cultural understanding by different banks.
Table 8: Different Banks in Sweden and data about their customer research
Länsförsäkringar
Swedbank SEB SEB Nordea
Bergslagen
Conduct any
research to know Yes Yes Yes Yes Yes
customer type
How to formulate Department
collected data for dealing for
marketing those
strategies customers
Collaboration
We interact
with ethnic Cooperation
Activities to with MDH
networks and with IFS,
maintain with all
sponsorships Munktell
positioning their
(IFS, Syriansak service Park
students
FC, Assyriska)
Special focus on
ethnic groups
Yes Yes No Yes
while positioning
your company?
On asking question about any research conducted by banks to know customer type, all banks
replied positive but none gave clear answer in replying of question that how do they
formulate collected data for marketing strategies for new customer type other than
mainstream customers. For maintaining positioning among ethnic consumers, SEB adopted
the way by collaborating with different ethnic network and by sponsorship while Nordea only
focus on interaction with students in universities. On this point, SEB is adopting relatively
quite effective strategy to maintain its positioning. Interestingly, all banks focus on different
ethnic groups while positioning their company.
27

4.5 Importance of Acculturation in decision making
Redfield, Linton and Herskovits (1936) define acculturation as “…those phenomena which
result when groups of individuals having different cultures come into continuous first-hand
contact, with subsequent changes in the original cultural patterns of either or both groups”
(p.149) and since consumer acculturation is very important factor for the consumption process
of immigrants and decision making of selection of products/services it highlight the
importance of identifying and utilizing acculturation level of immigrants for business.
In order to find out the importance of acculturation, conducted survey from Swedish banks
and calculation in Table.3 suggest that the value for importance of acculturation for them is
2.40 which falls between 1.81 – 2.60 (Less Important) See Table.3. Since the values falls
under range from 1.80 – 2.60 it feels like banks are not giving importance to acculturation
factor for targeting ethnic consumers.
The constructs of measuring acculturation rely on measures such as language, reference group
influence, adherence to cultural customs, and food preferences to operationallize them (Hui,
Joy et al. 1992; Webster 1994). In relation to find out the acculturation level among the
immigrants in Sweden different aspects has covered in survey from ethnic consumer.
Respondents were asked about their opinion on different factors in consumer survey on rating
5 scale which are strongly agree, agree, neutral, disagree and strongly disagree.
4.5.1 Cultural Identity
The most of the important factors to find out acculturation level of ethnic consumers is to look
at how they identify themselves in which cultural group. It can help authors to find out that
ethnic consumers are still maintaining their native culture in Sweden or they are inheriting
Swedish culture within themselves and becoming part of Swedish culture.
Figure 6: Identification of cultural group among ethnic consumers

28

Based on findings through consumer survey where respondents has been asked about their
identification of cultural group they belong too and interestingly majority of the respondents
suggest that they are still identify themselves as their own native culture since be looking at
Figure 6 only 43% of respondents assume themselves as part of Swedish culture and rest from
other cultural group. This indicates that although their large portion of ethnic consumers
adopting Swedish culture but still there is enough room for majority of ethnic consumers to
become part of host culture.
4.5.2 Fluency of Swedish Language
In consumer survey respondents were asked about the agreement level for their ability to
speak Swedish language. Bellow is the graph depicting the percentage ratio of respondents
according to their level of agreement on Swedish speaking ability.
Figure 7: Graphical illustration of respondent’s ability to speak Swedish language fluently
Based on findings among ethnic consumer survey illustrated in figure 7, it has been found
that 28% of the respondent were strongly agree that they can speak Swedish fluently, 30% of
respondents were agree, 19% were neutral, 9% were disagree and 14% of repsondents were
strongly disagree about their ability to speak Swedish fluently. These statistics suggest that
ethnic consumers are more tends to learn language in order to acculturate themselves to
Swedish culture.
4.5.3 Celebration of Swedish Events
Another important factor of celeberating Swedish events has been asked in consumer survey
from ethnic consumers and bellow given graph is depicting percentage ratio of respondents
about their agreement level on celebrating Swedish events.
29

Figure 8: Graphical illustration of Inolvement and celebration of Swedish events by ethnic
consumers
In connection to find out the acculturation level among ethnic consumers respondents were
asked about their agreement on celeberating Swedish events. Though these ethnic consumers
are from different ethnic background and have very different culture from Sweden. Figure 8
illustrates that 17% of respondendts were strongly agree on a fact that they celebrate Swedish
events like natives, but the larger portion of 48% of respondents chose agree for the fact they
often celebrate Swedish events, 22% of respondents were neutral, Based on findings among
ethnic consumer survey it has been found that 28% of the respondent were strongly agree that
they can speak Swedish fluently, 30% of respondents were agree, 19% were neutral, 9% were
disagree and only 4% of repsondents were strongly disagree about their involvement and
celebration of Swedish events. These statistics also suggest that ethnic consumers are more
attached and involved in Swedish culture and they like to celebrate Swedish events.
4.5.4 Swede as Close Friends
Another important factor for finding the acculturation level of ethnic consumer is to find out
their reference groups such as close friend. In the consumer sure respondents were asked
about their close friends circle and following graph is depicting findings about the percentage
ratio of respondents suggesting Swedish as their close friends
30

.
Figure 9: Graphical illustration of Swed as close friends for ethnic consumers
According to survey many respondents assume Swedish as their close friend but still the
major portion of sample suggest that are having close friend from their own nationality.
Figure 9 illustrates that 58% of respondents suggest their close friends from their own
nationality, 30 % of respondents suggest Swedish as their close friends, only 2% of
respondents suggest their close friends both from their own nationality as well Swedish and
remaining 10% respondent suggest people from different other nationalities as their close
friends.
4.5.5 Factors Affecting Selection of banks
In consumer survey respondents has been asked about different factors such as product
information in their own language, having employee at bank who can speak their language
and bank’s interest in their culture in selection of products and services.
Table 9: Important factors for decision making in selection of banks

Consumer opinion Swedish culture Other culture
Mean Mean
If bank offered information in my own language I
2.65 2.92
would switch to that bank
If bank had an employee speaking my language I
2.68 2.94
If another bank showed interest in my culture I
2.58 2.81
31

In Table 9 all the respondents has been divided into two different categories in which 43% of
respondents which identify Swedish culture as their cultural group have lower mean value for
all the factors which can contribute in their decision for selection of banks than other 67%
respondents identifying themselves with other cultural group.
4.6 Marketing Strategy to Ethnic consumers by Swedish banks
Many of the scholars has emphasized on the importance of ethnic consumers and stressed the
worth of understanding ethnic minority subculture and the associated cultural dimensions to
marketing (Bouchet, 1995; Burton, 2000; Costa and Bamossy, 1995; Penaloza and Gilly,
1999). Marketers are attaining ethnic market segments adopting different levels of marketing
mix differentiation such as standardize marketing, product adaptation, advertising adaptation,
and complete ethnic adaptation and which cultural factor they consider while formulating
their marketing strategy (Cui, 1997). Authors have found in survey from banks 60% of the
respondents from banks that their banks has adapted standardize marketing strategy to attract
ethnic consumers and 40% of respondents suggested that they have only adapt some
product/services for ethnic consumers. There was no response from banks regarding
advertisement adaptation or complete ethnic adaptation for ethnic consumers by banks.
Table 10: Banks current marketing strategy
Swedbank SEB SEB Nordea Länsförsäkringar

Product/ Product/
Marketing strategy Standardize Standardize Standardize
services services
Standardize
No Yes No No Yes
marketing enough
Different services
by ethnic Yes Yes Yes Yes
consumers
As matter of fact four out of five respondents from banks accept that different services are
being asked by these ethnic consumers from native banking consumers. These required
service by ethnic consumers are such as language translation, Interest free banking, Internet
banking in English. Also during an interview with Swedbank employee it has been found that
some immigrants feel repulsive when they have been asked for the source of large sum of
32

deposit, since its Swedish banking regulation and those immigrants didn’t face such
experience in their home country
On the other hand considering their current practices, here is very interesting point from
findings that 60% of respondents from banks suggest that their banks has adapted and
practicing standardize marketing strategy for ethnic consumers but at the same time 60% of
respondents believes that standardize marketing is not enough for banks to target ethnic
groups effectively and their bank is currently working on this aspect. Looking at the
information from SEB authors can analyze that though both of the respondents suggest that
their bank has adopt standardize marketing but one of the respondents from its branch office
think that standardize marketing is not enough for ethnic consumers while respondent from
SEB head office think that standardize marketing is enough for ethnic consumers since ethnic
market in Sweden is in its infant stage. Rest of the respondents suggest that standardize
marketing is enough for Swedish bank to target ethnic consumers since this matter is new for
Swedish companies and they have not yet understood the potential of ethnic consumers.
Three respondents from different banks suggested that their banks have implemented strategy
by opening a customer service centers where more languages are being available for different
ethnic customers. Also one respondent from a major bank told that their bank is targeting and
have collaboration with different ethnic network across the Sweden such as IFS, Syriansak
FC, Assyriska.
4.6.1 Marketing Mix, Communication, banks and Ethnic customers
Now looking the scenario that when an individual come into a different cultural society,
actually he brings cultural values with himself which is integrated with consumer behavior
and contribute in development of any additional value in new culture and consumer behavior
in host society. On the marketer end, marketing strategies are contributing effect on sides,
consumer’s end and culture. Here marketers get important role to integrate main stream
consumer’s behavior with ethnic consumer’s behavior, develop marketing mix according to
their consumer behavior and provide solutions.
From Fig 2, it shows that culture effect on consumer behavior and ultimately consumer
behavior and culture merge with each other and develop some new values in society and
marketers can address these new values by their marketing communication strategies.
33

Now look on the result that which factors are important for consumers when he select bank
for his needs. This selection actually emerge after matching of his cultural needs which effect
on his behavior regarding selection of banks. Authors included different factors on choosing
of banks including of Location, Brand, Fee and Interest rate Service quality, Language, family
and friends thought (Figure 2, and Table 11). Mean of 816 respondents’ answer is reflecting
quite interesting results that most important factors for choosing of banks are fee and interest
rate, service quality, and service from banks. Then customers turned to language of
communication, brand and location as important factors for them while family and friends
thought are not important for customers in selection of products. Results show that customers
mainly depend on such factors which he faced while dealing and communicating with banks
especially language, services and, fee and interest charges while family doesn’t effect on his
decision.
Table 11: Different factors mean in choosing of banks by ethnic customers
Factors Mean
Location 3,75
Brand 3,57
Fee and Interest Rate 4,14
Service from Bank 4,26
Service Quality 4,31
Staff Language 3,65
Family thought 2,96
My friends thoughts(same nationality) 2,72
Friends thoughts (other nationality) 2,72
34

Figure 10: Graphical representation of Different factors mean in choosing of banks by
ethnic customers
Now look at the language factor (Figure 11), more than half of customers are those who either
speak English or language other than Swedish. In case of Swedbank, out of 425 respondents,
201 communicate with bank in Swedish while 119 in English and rest 105 in any other
language.
Figure 11: Banks and language for communication with ethnic customers
Results reflect that along with other factors, customers prefer to speak either English or their
home tongue and this factor ultimately affect on their selection of bank.
35

After examine different needs of customers regarding language, service quality and what they
expect from Banks, now authors will look at what banks are doing for these customers. On
asking question that weather banks hire such employees who can interact with customers,
Swedbank and SEB replied yes, while Nordea don’t hire such employees (Table 12).
When look at figure 12, it shows that two third of Nordea’s different ethnic customers either
prefer or want to speak in English or language other than Swedish. Apparently it looks that if
Table 12: Banks and hiring of employees to serve different ethnic groups
Organization Swedbank SEB SEB Nordea Länsförsäkringar
Bank serving Ethnic

Americans Iraqi Nigeria Turkish
group-Nationality 1
Bank serving Ethnic
English Indian Indian England
group-Nationality 2
Bank serving Ethnic
Iranian Chinese Chinese Thailand
group-Nationality 3
Hire employees to serve
above mentioned ethnic Yes Yes Yes No No
groups
If the answer is yes, then Don’t 0
Don’t 5 (Very
how is consumers Know (Don’t No
Know (0) Satisfied)
response over this tactics (0) Know)
Nordea would fail to provide such services to these customers; they could go to another bank
where they would find such facility. While recognizing needs of customers, asking question
that weather bank notice any difference in the type of services these customers from different
nationalities ask for, all banks replied that they notice different needs of ethnic customer from
mainstream customers.
On the replying the question, Banks are providing some specific services to different ethnic
consumers whose they selected. For example, Swedbank is treating Iranian customers as
potential ethnic customer and providing “cash services” to them while analyzing customer
36

data, 24 out 39 Iranian respondents selected Swedbank on the basis of expecting “Interest rate
on saving account, exchange rate”. Most of the banks along with Swedbank are providing
products who are more or less addressing the needs of customers.
4.6.2 Communication between customers and banks
According to Luna, Gupta model (Fig 2), marketing communication is medium between
cultural values of people and consumer behavior. Marketing communication plays important
role in developing of consumer behavior in specific direction while it is also crucial that
marketing communication should consider cultural value as important gradient for addressing
consumer needs in effective way.
Figure 12: Customers and their perception regarding advertisement communication
From survey, it is noticed that three factors are important for ethnic customer that
advertisement should carry benefit of bank clearly, and it would be attract full for him if the
message would be in his own language. Furthermore, ad should target him, not his group,
family or friends. It reflects that after understanding cultural values of customers and needs of
potential ethnic group, bank develop pin-pointed communication strategy so that message
would communicate with its full spirit and strength.
37

5. Conclusion
Thesis research addresses the issue of acculturation and cultural diversity factors in offering
of different financial products by banks and indicates how these factors are important to
customers and in developing of his attitude in respond to different ethnic marketing and
communication activities by banks. As, understanding ethnic aspect in consumer behavior is
vibrant topic, therefore it carries many direction in discussion regarding cultural, belief,
acculturation, marketing mix and marketing communication.
Another aspect, which is important and quite related in ethnic marketing and offering of
financial services to ethnic groups, is current competitive market in banking sector. Therefore
finding niche market is important to look on different segment rather to target only
conventional market and market segmentation. Furthermore, the strategy to target different
ethnic group is vital and important for marketers in those societies which are growing as
multicultural and multiethnic societies.
Sweden, from last decade, has been receiving a large number of immigrants from different
countries especially from Asia and Middle East. These immigrants are coming on different
basis; people coming from conflict area, for better earning, peaceful life, for economic
purposes and as students. In last ten years (1998-2008), almost 770229 immigrants entered
and merged in Sweden’s population which is almost now 8% of total population. This
percentage of ethnic population shows its significance for marketers including banks to
recognize their needs and offer products according to it.
To respond the needs of ethnic groups, almost all banks are aware about the changes in
Swedish population along with they are serving many ethnic groups. But unfortunately, most
of them are not identifying potential ethnic group for their products. For example, from 2002
to 2008, almost 59000 Iraqis immigrants have been added in Sweden’s population but only
one bank is serving them to address exclusively their needs. Therefore, it indicates that proper
identification of potential ethnic group is the preliminary and primary step and then
recognizing their needs and offer them products accordingly. It’s also learnt during analysis
that banks are not combining many communities who are culturally much closer to each
other; i.e. African’s background ethnic groups can be combined on some common
characteristics.
38

Although still there hasn’t been special consideration by banks to target ethnic consumers as
potential and separate segment but the growing nature of immigration on different grounds is
stressing the potential of ethnic consumers in Sweden. These consumers are coming from
different cultural background and are different from mainstream consumers in different
aspects. After analyzing data authors collected from the survey of banks and consumer
authors conclude that currently Swedish banks are experiencing consumers from different
ethnic groups and these consumers are using almost all of the product and services which
banks are currently offering to all of its consumers.
Since ethnic consumers have different attributes which differentiate themselves from
mainstream consumers such as language, reference groups, intermarriage, national identity,
culture it is found that most of the banks think that culture and language is most important
factor while targeting ethnic consumers while in contrast ethnic consumers are more intent
towards their national identity and acculturation of Swedish culture. This suggests that
Swedish banks are concentrating on wrong factors and they should more concentrate on
ethnic consumer’s national identity and their acculturation towards Swedish culture.
Consumer acculturation has been highlighted as very important factors by different authors
for the selection of product and services by ethnic consumers, Hui, Joy et al. 1992; Webster
1994 suggested different constructs for measuring acculturation among immigrants. Authors
conclude the acculturation of ethnic consumers by findings from consumer survey that
Swedish banks are not giving much importance to acculturation while targeting ethnic
consumers since the mean value for finding importance of acculturation among banks is 2.40
which falls under less important category.
On the other hand consumers survey suggest that the acculturation level of ethnic consumers
are not very high in Sweden since only 43% of respondents identify themselves in Swedish
culture while rest of the respondents are still sticking with their native culture. Only 30% of
respondents suggest that their close friends are Swedish while majority of ethnic consumers
are still maintaining their relationship with people from their own nationality which suggests
that these groups do have influence and affect on their decision making process in selection of
products and services. After analyzing the data there has been an interesting point arise where
majority of the respondents suggest that they tends to celebrate Swedish events and have good
ability to speak Swedish. This concludes that ethnic consumers are willing to adopt Swedish
39

culture and banks should act as catalyst to increase the acculturation level of ethnic
consumers.
During studies from consumer an important perspective has been arise when authors compare
two different groups of consumers according to identification of their culture, respondents
which identify themselves as Swedish are less interested in switching banks if another bank
offer them as product information in their own language, having employee at bank who can
speak their language and bank’s interest in their culture while in contrast those respondents
which identify themselves with other cultural group are more interested in such offers for
switching banks.
Currently Swedish banks are not entertaining ethnic consumers as different segment and most
of the banks are emphasizing on standardize marketing still they believe that they need to do
more efforts to cater those segments in their marketing strategy. Their most emphasis to cater
those ethnic consumers is mainly focused on customer service centers where different
languages are being available to those customers. Some banks are also involved in close
collaboration with ethnic groups such as IFS, Syriansak FC, Assyriska.
Marketing practices normally affected by country’s culture and marketers respond to society
in their marketing strategies according to culture of people and the identity whom people
represent. As Jamal (2001) contributed that marketing practices are embedded in societies and
have impact on consumer behavior while maintaining their cultural values and identities. In
research, authors learned that majority of respondents feel that there is strong relationship
between their self-identity and the regional/cultural group, while in some ethnic groups like
Thai are mixed up in their group activities more than Swedish or any other ethnic group.
In addition, despite fluent in Swedish language, still most of the respondents feel good to
speak in their own language while communicating in their own group. Whereas, religion is
not an important factor for them as they don’t feel themselves religious. Two points emerged
from this discussion; one is that people belong to any ethnic group remain attach with their
national identity and they are sticky with their own language rather to Swedish for
communicating, while second point indicated that people consider religion as less-important
factor in their cultural values comparatively from other factors. It is accomplished that banks
40

should take research on above said point and emphasizes more on national identity and
language while offering of financial products to different ethnic groups.
Developing marketing mix strategy for ethnic consumers, it is found out that ethnic
consumers focus more on fee and interest rate, service quality, services from banks and then
language and location while selecting banks and their services. Language is one of the
important factors in offering of services to ethnic group. For example, 54 respondents out of
177 use Swedish language for communication with Banks while 123 customers either speak
English or any other language which reflect that by introducing ethnic group’s own language
can be beneficial to attract more consumers. A new aspect of marketing mix strategy is
marketing communication by which marketer interact with ethnic consumer and effect
gradually on consumer behavior. From analysis, point came out that banks should address the
needs of ethnic consumer clearly and offered-products’ features should be elaborated plainly
to customers in advertisement.
41

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Appendix: Banks Survey
1. Name:
2. Organization:
3. Position:
4. Is the bank aware of the changes happening in the characteristics of the

Swedish population?
Yes No
5. Do you have experience of serving customers from different ethnic groups?
Yes No
6. Can you list the nationalities of the three major visiting customers other than customers from Nordic
countries?
1.
2.
3.
7. Did your organization hire employees from the mentioned nationalities in question number 6 to
facilitate customers from same background? If “yes” go to question#8 otherwise Q#9)
Yes No
8. If the answer is yes, then how is consumers response over this tactics:
Very Satisfied Satisfied Neutral Less Satisfied Not Satisfied Don’t Know
5 4 3 2 1 0
9. Did you notice any difference in the type of services these customers from different nationalities ask
for?
Yes No
10. If yes, what kind of services? Please select for service Nationality 1 you selected in Q6
Bank Loan Saving Account Financial Management

Pension Insurance Other:
Financial Management of special account, retirement, trusts and inheritance
Please select service for Nationality 2 you selected in Q6
Please select service for Nationality 3 you selected in Q6
46

11. What is your organiztion’s current marketing strategy for ethnic consumers: (tick approperiate)
We treat them the same as Swedish customers
We adapt some products/services only for them
We adapt some advertisement only for them
Complete product, service and advertisement adaptation for them
12. What changes your company adapt related to marketing strategy you selected in Q.11?
13. In which language do you communicate with customers? (list the languages)
(1) (2) (3)
14. Does your organization provide all information regarding financial process in any or more than one
of the following languages: (other than Swedish or Nordic languages)
English Polish Farsi (Persian)
Arabic Turkish Any Other:
15. What solution your bank adapted for below mentioned problems in terms of language
Needed Services Solutions
1. Counter problems
2. Customer problems
3. Online problems
4. Customer Serice (Telephonic)
5. Any other:
16. Does your company conduct any research to know the type of customers they deal with?
Yes No
17. If yes how do they use this data to formulate services for these ethnic groups?
Please Specify:
47

18. What kind of activities your company does in order to maintain a special positioning in the minds of
their customers?
19. Is there any special focus on ethnic groups while positioning your company?
Yes No
20. Do you conduct any service quality measurement survey?
Yes No
21. How you rate Age, Gender, income status factor in importance for considering ethnic consumers
as new market segment:
Most Important Important Neutral Less important Not important
5 4 3 2 1
22. How you rate culture factor in importance for considering ethnic consumers as new market
segment:
5 4 3 2 1
23. How you rate Language factor in importance for considering ethnic consumers as new market
segment:
5 4 3 2 1
24. How you rate Religion factor in importance for considering ethnic consumers as new market
segment:
5 4 3 2 1
25. How you rate National Identity factor in importance for considering ethnic consumers as new
market segment:
5 4 3 2 1
26. How you rate “Adaptation of local culture by immigrants” factor in importance for considering
ethnic consumers as new market segment:
5 4 3 2 1
27. From above factors to which you give priority for market segmentation? (please rank with number)
Age, gender, income status

Culture
Language
Religion
48

National identity
Adaptation of local culture by immigrants
28. Tick company’s potential ethnic consumers in your opinion
Eastern European Nordic

Southern European Middle East
Western European Southern Asian
Eastern Asian Other:
29. Would above selected potential ethnic consumer group(s) (in Q#28) be potential in future also?
Yes No
30. Would above selected potential ethnic consumer group(s) (in Q#28) be unique in terms of their
special needs in future also?
Yes No
31. Does the design offered for ethnic consumers are also used by Swedish consumers?
Yes No
32. If your company has never designed any products or services for ethnic groups then what is your
opinion in the need to target ethnic groups living in Sweden as different consumer group?
33. Do you think standardized marketing is enough to target all customers in Sweden?
Yes No
34. If No Why didn’t your organization consider ethnic consumers as potential consumers so far?
35. What are your future intentions to target ethnic consumers?
Date and Place ……………………………………………………………………….
49

Role of Cultural Diversity and Acculturation in Ethnic Marketing of Banking Service in Sweden

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Role of Cultural Diversity and Acculturation in Ethnic Marketing of Banking Service in Sweden

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School of Sustainable Development of Society and Technology

Mälardalen University Västerås

In the name of Allah, the most beneficent the most merciful.

What are Swedish service-providers currently doing in order to target

Conclusion: Ethnic consumers in Sweden are attractive market for banking

Keywords: Cultural Diversity, Acculturation, Ethnic consumer, Banks

FIGURE 1: A MODEL OF THE INTERACTION OF CULTURE AND CONSUMER BEHAVIOR (LUNA&

TABLE 1: SWEDEN’S PRELIMINARY POPULATION STATISTICS BY MONTH CHANGES UP TO AND

1.1 Background to this study

The cultural dimensions by Geert Hofstede, Consumer behavior, Acculturation, Culture

• Fisher, Researching and Writing a Dissertation: A Guidebook for Business Students.

1.4 Target audience

2.1 Relationship between Cultural Diversity and Marketing

2.2 Cultural diversity and Consumer Behavior

Cultural Value System

2.4 Consumer Acculturation

Figure 3: Framework for interplay of marketing, ethnicity and consumption (Jamal. A,

2.5 Effect of Ethnic Affiliation on Acculturation

2.6 Measurement of Acculturation

2.7 Trends in Consumer Acculturation Studies

Effective ethnicity based segmentation mainly focuses on achieving homogenous reactive

3.1 Choice of Topic

3.2 Research Methods

3.2.1 Data Collection Methods

3.2.2 Questionnaire selection

Format of questionnaire is crucial part in questionnaire design because it will develop

3.2.3 Elaboration of Questionnaire

Questionnaire has been organized based on theoretical analysis of different literatures

Questionnaire covered the cultural diversification among Swedish consumers in terms of

3.2.4 Selection of Respondents

3.2.5 Data and its valuation

Authors used different type of questions questionnaire including dichotomous questions,

Value= Total Score / total number of respondents

Interval of value in question= (Highest value-lowest value)/ total number of intervals in

3.3 Limitation of Study

4.1 Banks and their ethnic market in Sweden

Table 1: Sweden’s Preliminary Population Statistics by month Changes up to and including

Year Population at the end of period Immigrants

Figure 4: Population immigration ratio in Sweden (Sweden Population Statistics, 2009)

As Maslow’s Hierarchy of Needs present in universal model such as Self-actualization need

Table 2: Banks and their major ethnic customers’ nationalities

4.2 Ethnic consumers as a potential market segment

4.3 Importance of different cultural factors

Table 4: Total score and mean value for factors by banks

Table 5: Distribution of mean value for importance of different factors by banks

Values for different factors such as importance of culture, importance of language

4.4 Effects of cultural diversity on consumer behavior

4.4.1 Self Identity and cultural group

While among 185 Swedish-cultural/regional group’s respondents, 12 were strongly agreed to

4.4.3 Swedish as first language

4.4.4 Use and fluency in Swedish

4.4.5 Ethnic purchase behavior

4.4.6 Importance of religion

4.4.7 Celebration of religion and different events

4.5.1 Cultural Identity

Figure 6: Identification of cultural group among ethnic consumers

4.5.2 Fluency of Swedish Language

Figure 7: Graphical illustration of respondent’s ability to speak Swedish language fluently

4.5.3 Celebration of Swedish Events

4.5.4 Swede as Close Friends

4.5.5 Factors Affecting Selection of banks

Table 9: Important factors for decision making in selection of banks