1.4.5 The effect of Globalization on consumer’s attitudes and behaviour
Many economic, political and cultural practices have been changed due to globalization, which has influenced the international acceptance of the consumer values and created the fear of the disappearance of local cultural traditions. According to Buehler and Halbheer (2012) globalization has a massive correlation both positive and negative with religious and national cultures. Most of the researches on globalization effects has been focused on studying the similarity and differences between psychological behaviour of consumers and globalization to know the social changes across countries. In addition, globalization may create new lifestyles as well as lead to the isolation
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With globalization, the consumers had a chance of not only buying quality products from different parts of the world, but they were also able to choose the products that they perceived as the highest quality. With the implementation of globalization, the customers were not only expecting more from the products that they were consuming from their countries, but also required the local products to match up with the quality of international products. Globalization has enabled customers to accept the high quality of the products they consume and realize the value of their money at all …show more content…
It also increases the level of consumption as consumers are able to source cheap products from international markets that they can afford in large quantities. One such example is how Saudi Arabian customers are able to consume different types of fruits that are imported from countries such as Africa and India. Without globalization, their consumption of the fruits would have been curtailed by lack of availability of adequate fruits. Another behavioural aspect that globalization changes is the use of products such as the attire that is worn by the local population. The impact of globalization can easily be deduced from the actions of consumers who change their lifestyles post exposure to the global culture. In most of the GCC countries, there is a concern that globalization has led some of the youth to behave similarly to their western counterparts. According to van Raaij (2014) globalization leads to the loss of identity where the local consumers demand products that can help them to be identified with foreign culture. Rather than wearing the attire that is prescribed by the culture, some youths in Saudi Arabia have adopted the western clothing that they copy from their
globalization of markets and of production. The Globalization of markets is the blending of different markets from different nations into one large global marketplace. Cross-border trading has made it easier to sell internationally. Companies can sell standardized products efficiently and effectively all over the world thus helping to build a global marketplace. The globalization of production refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labor, energy, land, and capital) (Hill, 2005). By doing so, companies hope to lower their costs and improve the quality of their product and increasing their distribution. This would allow the companies to compete with other companies on a worldwide basis.
Globalization is nothing new and will continue to manifest itself in non-western societies and cultures throughout the world. Some cultures accept the changes that come with globalization. Most cultures bring and find both economic and cultural growth to be the outcome of accepting globalization. However, there is always the risk that globalization comes with the possibility of destroying rituals and unique cultural practices bringing about a decline or stoppage in the progress that a society was achieving. Globalization is an unstoppable force; while we are powerless to stop it, we must be responsible when introducing change, and strive to preserve the heart of the culture being effected by globalization. (Kim, 2009)
In the book Globalization: A Very Short Introduction by Manfred Steger and the reprint Globalization and the Impact of American Popular Culture Abroad by Carl Guarneri, the point is made how recognized globalization has become and how much it has affected citizens around the world. Some of the debates over the effects of cultural globalization are: the West and its multinational corporations after World War II, what it promotes to the world’s people, the views of consumer capitalism’s effects and the repercussions of the globalization of culture.
Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world or the process of making it all happen. The global economy is known as a globularity every now and then. The advantages and disadvantages of globalization have been heavily examined and all of them vary. People who favor it say that it helps developing nations catch up to industrialized nations very quickly through increased employment and technological advances. On the opposite side people say that It makes nations sovereignty weak and allows the rich to ship domestic jobs overseas where labor is much cheaper. The quick spreading of McDonalds restaurants all over the world is a perfect example of globalization. The fact that they adapt their to suit local taste is an example of globalization. Mcdonalds has turned into the symbol of American social force and the embodiment of the Americanization of whatever is left of the planet. The message of globalized Mcdonalds is "If you consume like us, you are set to be like us." When actually by consuming like Americans individuals far and wide are just being enlivened to look increasingly like American's as to corpulence. However yet, Mcdonald's, for example numerous American organizations, have persuaded themselves that notwithstanding its blemishes, American society is unrivaled and in this manner its impact is just gainful to other, "lesser"
Thanks to globalization, cultures, and the environment of different nations are being attacked. Their customs and traditions are vanishing thanks to globalization. A perfect example is what is occurring in India. Prior to globalization occurring, “the meals on the train used to be served in moistened banana leaves that were plucked in front of you and thrown away after” (Rajiva 1) . Today after the full impact of globalization, “they are wrapped in tin foil or come in plastic or cardboard containers” (Rajiva 1. In this example, both the culture and environment is destroyed. The custom of packaging food in banana leaves is gone tha...
To achieve perfect globalization it will be of great importance to eliminate the barriers between the countries. This can be attained by eliminating the differences in tariffs which will benefit the businesses of all the countries of the world. Tariffs don’t bring any benefits to the countries that they impose them, and for this reason they won’t help in realization of globalization. With tariffs reduction and the enhancement of globalization the consumers will have more choice on products and wider price range for the products. This is because reduction in tariffs results in reduction in trade barriers which is expected to expand the global economy. The elimination of tariffs will make the businesses to export freely and import freely, there will be an increase in the quality of goods and services that are produced in...
The process of globalization is the spread of business, ideas, beliefs, and cultures throughout the world which results in an increasingly connected world, but may also lead to the loss of culture. As an illustration, the McDonald's restaurants. These are restaurants which have spread throughout the world, although, they have had to accommodate to the diets of the countries in which they had established themselves in, they have taken the idea of the fast food industry throughout the world. The spread of ideas is a useful tool since it has the capacity to open other societies. Ideas formed from the corporation of different cultures and societies are able to encompass different perspectives. The differing perspectives are able to create solutions to worldwide issues, which are able to facilitate the advancement of the world as a
Kofi Annan, a UN diplomat, once said,“...that arguing against globalization is like arguing against the laws of gravity.” He is undoubtedly correct in this assessment. Indeed, globalization is no longer something to be skeptical of, it is very real and is changing our world exponentially. The affects of globalization, however, continue to be a heated topic for debate. Proponents praise the overall economic lift provided by free trade, the diffusion of cultures, and the spread of democracy and capitalism. Critics cry foul at the loss of national identity, the accelerated and uncontrolled use of natural resources, and the redistribution of wealth into the hands of a few very powerful people and corporations. Globalization is a polarizing topic and it has affected people in different and varying ways. I looked back over my life, looking for personal experiences that represent the affect of globalization upon my life. It is difficult to pinpoint exact experiences, but it is clear the broader affects globalization has had on my life such as in the spread of cultural practices such as yoga or foreign entertainment, or the rapid demise of the Midwestern manufacturing industry.
A consumer’s buying behavior is influenced by cultural, social, personal and psychological factors. Cultural factors have the broadest and deepest influence for consumers when making a purchase.
With the globalization of a product, a company might benefit in many ways. First, by sifting its production or services overseas, the company can reduce its overall production costs due to availability of low-cost labor. Second, working collectively with other companies overseas allows companies to access technical knowledge or resources that are either unavailable or are too expensive at home.
Globalization is occurring at accelerated speeds due to information technology and the way corporations use suppliers and manufactures of other countries for the use of receiving or distributing goods through their global supply chain. Furthermore, with the use of social media cultures is more integrated than ever do with communication and the ability to share amongst peers. In order to make the evaluation if the average citizen should resist globalization I will have to conduct research on the benefits and disadvantages of globalization and include research on how people behave as consumers and members of a civil society.
Globalization’s history is extremely diversified and began during the beginning of civilization. Now we live in a world that is constantly evolving, demanding people to use resources in locations that are very difficult to obtain certain resources. This could make it completely impossible to operate in these specific parts of the world. However, globalization allows people across the world to acquire much needed resources. Globalization creates the opportunity for businesses to take advantage and exploit the ability to take part of their business to a different country. Nevertheless, globalization is part of today’s society and will be involved in virtually all situations.
Globalization encourages worldwide business. Globalization is an efficient process by which all the nations of world will commonly try to set regular universal standards & regulations (both created & recommended) which will encourage business around different nations. Business around nations or elements crosswise over different fringes is called universal business.
To be successful in today’s global market, managers and leaders need to understand more than just technical skills. Managers and leaders should also understand globalization and organizational behavior. Globalization is the tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen. The global economy is sometimes referred to as a globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries (Search CIO). Organizational behavior is a field of study that studies individuals groups, and structure. Organizational behavior applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively (Robbins,2014).Gaining an understanding of globalization and its effect on organizational behavior is crucial to interacting effectively in the modern global economy. Globalization affects an organization’s behavior in several ways like stimulating hyper competitive pricing for a product or service, perpetuating continuous operations and communicating around the clock and globe, capitalism is replacing governmental control and organizations are no longer constrained by borders, and corporations are becoming more heterogeneous and adapting to people who are from different nationalities and cultures. To be successful in a global economy, professionals should have a thorough knowledge of sociology, psychology, communication, and management.
Globalization is the increasing interconnectedness of people, places, and cultures throughout the world today. The effects of this homogenizing process that we call globalization can be seen in all aspects of life. From McDonalds being in almost every country, to the majority of North American clothes being made in periphery countries, to the technological ability that allows us to instantly communicate with people anywhere in the world, the effects are everywhere. Economically today, globalization has had both positive and negative effects around the world, with many similarities to colonization. Globalization has also led to increased poverty amongst the global periphery, and a specific group of winners and losers within this process of globalization.