THESIS THEME IN LATVIAN LANGUAGE
ETHNIC CULTURAL ASPECTS INFLUENCE ON SALES PROCESS
A THESIS
PRESENTED TO THE FACULTY OF
BA SCHOOL OF BUSINESS AND FINANCE AND SBS SWISS BUSINESS SCHOOL
IN PARTIAL FULFILLMENT
OF THE REQUIREMENT FOR THE DEGREES
BACHELOR OF BUSINESS ADMINISTRATION IN INTERNATIONAL MANAGEMENT/ BACHELOR OF FINANCE IN INTERNATIONAL FINANCE
BAKALAURS FINANSĒS AR SPECIALIZĀCIJU STARPTAUTISKAJĀS FINANSĒS
BY
GUSTAVS EDVARDS ĶĒNIŅŠ
JUNE 2022
PROMOTER: DITA DANOSA
Etnisko kulturālu aspektu ietekme uz pārdošanas procesu norisi
Ethnic cultural aspect influence on sales process
Presented to the faculty of
BA School of Business and Finance and SBS Swiss Business School
In partial fulfillment of the requirement for the degrees
BACHELOR OF BUSINESS ADMINISTRATION IN INTERNATIONAL MANAGEMENT/
BACHELOR OF FINANCE IN INTERNATIONAL FINANCE
BAKALAURS FINANSĒS AR SPECIALIZĀCIJU STARPTAUTISKAJĀS FINANSĒS
Student Declaration:
I declare that I, Gustavs Edvards Ķēniņš, group 4Fa, the undersigned, have completed this work
and that I have not used any other than permitted reference sources or materials nor engaged in any plagiarism. All references and other sources used by me have been appropriately acknowledged in the work. I further declare that the work has not been submitted for the purpose of academic examination, either in its original or similar form, anywhere else.
____________________________________________ ______________________
Signature Place / Date
Promoter Declaration:
I, the undersigned, verify that this document meets BA School of Business and Finance and SBS Swiss Business School academic standards.
____________________________________________ ______________________
Name, Surname, Position Place / Date
Reviewer’s signature (BA School of Business and Finance):
____________________________________________ ______________________
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Table of Contents
Introduction 6
Background of the Problem 6
1.2. Background of the Study 6
Objectives of the Study 7
2.1. Problem Statement 7
2.2. Objectives of the Study 7
2.3. Hypothesis Statement 7
2.4. (Additional Research Questions) 7
2.5. Limitations 7
Literature Review 7
3.1. Chapter Introduction 7
Collection of Primary Data 8
4.1. Methodology 8
4.2. Research Design 8
4.2.a. Type of Research 8
4.2.b. Design of the Research Instrument 8
4.2.c. Sample Selection 9
4.3. Research Execution 10
4.4. Analysis of Data 10
4.4.1. Analysis of Survey Responses 10
4.4.2.a. Profile of Respondents 10
4.4.2.d Conclusions on Survey Analysis 21
List of Figures
Introduction 6
Background of the Problem 6
1.2. Background of the Study 6
Objectives of the Study 7
2.1. Problem Statement 7
2.2. Objectives of the Study 7
2.3. Hypothesis Statement 7
2.4. (Additional Research Questions) 7
2.5. Limitations 7
Literature Review 7
3.1. Chapter Introduction 7
Collection of Primary Data 8
4.1. Methodology 8
4.2. Research Design 8
4.2.a. Type of Research 8
4.2.b. Design of the Research Instrument 8
4.2.c. Sample Selection 9
4.3. Research Execution 9
4.4. Analysis of Data 10
4.4.1. Analysis of Survey Responses 10
4.4.2.a. Profile of Respondents 10
4.4.2.d Conclusions on Survey Analysis 22
List of Tables
No table of figures entries found.
Introduction
Background of the Problem
1.2. Background of the Study
Objectives of the Study
2.1. Problem Statement
2.2. Objectives of the Study
2.3. Hypothesis Statement
2.4. (Additional Research Questions)
2.5. Limitations
Literature Review
3.1. Chapter Introduction
Collection of Primary Data
4.1. Methodology
As the basis for the analysis a survey was conducted to obtain primary data. The survey collected quantitative data with qualitative measures for the determination of factors for the results. The obtained data was used for the purpose of achieving objectives mentioned in Chapter 2 and the testing of assigned hypotheses.
The research methodology was chosen to use statistical and numerical comparisons and measurements to investigate the importance and influence on the sales process depending on the ethnic cultural aspects. Primary data was gathered by spreading an online survey using Google Forms. Returned data was valid for analysis. Microsoft Excel was used to compile, sort, and prepare visualizations of data.
4.2. Research Design
4.2.a. Type of Research
The goals of the primary data research are to perceive the importance of ethnic cultural aspects on the process and outcome of a sales deal, how different ethnic cultures interact and influence each other, depending on the combination.
Data is predominantly quantitative with qualitative features and gathered by close-ended and open-ended questions for the purpose of gathering records that can be statistically examined, paralleled, and visualized.
Data was classified by respondent’s age, country of residence, ethnicity, employment status and previous experience on the subject of sales.
4.2.b. Design of the Research Instrument
The author prepared a questionnaire that consists of 3 main parts and 12 questions.
Part 1 consists of 2 close-ended questions and 2 open-ended questions to identify respondents demographic and ethnic status.
Part 2 consists of 3 close-ended questions to comprehend respondents previous experience on the subject and theme.
Part 3 consists of 4 questions and a Likert scale of 5 statements to understand the respondent’s opinion on specific real-life situations related to the sales process that involves different ethnic cultures. In these situations the respondent shares insight into the specific situations performed by an action or emotion, depending on ethnic cultural aspects or circumstances.
The purpose of the survey is to see the general view of the population who has experienced a sales deal involving various language representations on the importance of ethnic cultural aspects on the process and outcome of a sales deal. To embody and analyze the respondent’s opinion, respective question types were used by the author:
Single selection of multiple-choice questions that were used on 50% of the questions. This type of responses offers the possibility of numerical analysis and flexibility to compare different groups of respondents.
Open-ended questions to get an insight into which countries and which ethnicities are represented in the answers of the survey.
Rating scale question was included to provide an understandable opinion from the respondents point of view on the subject’s hypothesis .
Likert scale questions were included to develop a perception of attitude towards different real life situations involving ethnic factors and sales process.
4.2.c. Sample Selection
The sample selection is a critically important process for the achievement of statistical equivalence that fairly represents the population.
Sample of the study is a subgroup of the population that the author has chosen to inquire about. Within the research, the sample comprises all people that have previous experience in the sales business sector.. All responses of the sample were valid.
4.3. Research Execution
The target audience for the data was largely reached by the distribution of the online Google Forms questionnaire to the students at BA School of Business and Finance, author’s peers, and other respondents through the author’s peers’ referrals.
4.4. Analysis of Data
4.4.1. Analysis of Survey Responses
Questionnaire for primary data collection was developed by the author. The data summarized includes information on demographics, nationality, place of residence, status, opinion, standing, and experience in terms of sales process that involves different ethnic cultural factors.
4.4.2.a. Profile of Respondents
To portray the profile of the sample, few descriptive types of questions were developed. Data was summarized to include the split of age, country of residence, ethnicity, and employment/study status.
Figure 4.1 Respondents Split by Age as % of Total Answers
Source: Developed by the author based on primary research survey data
From all respondents who participated in the survey, the biggest part or 45.65% of the respondents were in the age group from 20-23 years old2,50% did not identify their gender, moreover, most of the respondents at 62,50% were women and 35,00% were men.
Figure 4.2 Respondents Split by Country of residence as % of Total Answers
Source: Developed by the author based on primary research survey data
From the answers received to the open-ended question about the country of residence represented in the thesis survey, the biggest part or 73.91% of total respondents named their country of residence as Latvia. The second most represented country of residence from the s=respondents was Germany AS 10.87 %. With 6.52% of the respondents, the third most represented country was Sweden. An equal number of respondents or expressed as 4.35%, Russia and Spain were mentioned as the country of residence for the less represented in the survey answers.
Figure 4.3 Respondents Split by nationality as % of Total Answers
Source: Developed by the author based on primary research survey data
From the answers received from survey results, it can be mentioned that overall 4 different nationalities were represented. The biggest part or 65.22% of the respondents stated their nationality as Latvians, the second most represented nationality were Russians as 28.26% of total respondents. 4.35 % of total respondents mentioned their nationality as Germans, but the least represented nationality was Estonian with 2.17% of the total.
Figure 4.4 Respondents Split by Employment and studying status as % of Total Answers
Source: Developed by the author based on primary research survey data
As given by the results of the survey and shown in graph above, the biggest part of respondents or 63.04% mentioned that they are working students, The second most represented group from the answers received mentioned that they are working a full-time job and currently are not studying, 10.87% of the respondents stated that they are working a part-time job and not studying, but the least represented category was non-working students – 8.70% of total respondents.
4.4.2.b. Analysis of Concern about Sustainability
Next two questions help the author to comprehend respondents general concern level about sustainability when buying fashion, clothing items.
Figure 4.5 Respondents Split by whether they have worked in the sales sector before as % of Total Answers
Source: Developed by the author based on primary research survey data
Among the respondents, the biggest part or 60.87% stated that they have worked in the sales sector, but 39.13% of the respondents mentioned that have not worked in the sales sector before.
Figure 4.6 Respondents split by whether they have bought or sold something using a foreign language as % of Total Answers
From the graph it can be seen that the biggest part of respondents or 91.30% have stated they have bought or sold a product while using a foreign language as a tool of expression at least once, while only 8.70% of respondents mentioned that they have not used a foreign language while buying or selling a product (or service).
Figure 4.7 Respondents split by whether they have experienced poor service due to different ethnic culture/nationality as % of the total answers
From the results of survey answers it can be concluded that the biggest part or 71.74% of the respondents have experienced poor service quality due to different ethnic culture/nationality at least once, but 28.26% stated that they have not experienced poor service due to the reason of different ethnic culture or nationality.
Figure 4.8 Respondents split by whether they agree with the statement as % of Total Answers: ” I become nervous if I have to buy something while speaking in a foreign language”
As shown in the graph, The biggest part or 32.61% of respondents agree with the statement, 19.57% of respondents somewhat agree with the statement, 13.04% strongly agree with the statement. 10.87% could not pick a side to state their opinion based on this statement, equal number of respondents or 8.70% choose somewhat disagree or disagree as an answer, but the least of respondents choose strongly disagree as an answer to this statement – 6.52%.
Figure 4.9 Respondents split by whether they agree with the statement as % of Total Answers: ”I tend to be more flexible and open when speaking in my native language”
From the results it can be concluded that equal number of respondents answered to the statement that they disagree or somewhat disagree – both 26.09% of total, 19.57% stated that they strongly disagree to this statement, 13.04% answered with somewhat agree, but 10.87 could not pick a side to show their attitude regarding the statement, 8.70% mentioned that they agree with this opinion.
Figure 4.10 Respondents split by whether they agree with the statement as % of Total Answers:
”When going for a trip, I do a research about cultural characteristics of the country I plan to visit”
The majority of respondents or 30.43% stated that they somewhat disagree with this statement, while an equal number of respondents mentioned that they disagree or somewhat agree with the opinion. 15.22% chose Neutral as an answer, 13.04% Agreed with the statement, 6.52% Strongly agree, but 4.35% strongly disagree with the statement.
Figure 4.11 Respondents split by whether they agree with the statement as % of Total Answers:
”People from other countries are more friendly than people from my home country”
The majority of respondents or 21.74% disagree with this statement, while an equal number of answers – 17.39%, state that they somewhat agree or somewhat disagree with the statement. 15.22% mentioned that they Agree with the opinion, another equal result between Neutral or strongly agree – both 13.04% of answers, but 6.52% chose strongly disagree as their answer to this statement.
Figure 4.12 Respondents split by whether they agree with the statement as % of Total Answers:
”It is hard to make friends with people from different country”
The majority of respondents or 28.26% chose disagree as their answer, 21.74% somewhat disagree with the statement, 19.57% strongly disagree, 13.04% Agree, 10.87% somewhat agree, but an equal number of respondents chose Neutral or Strongly agree as their answer to the statement.
Figure 4.13 Respondents Split by Importance (in a scale of 1-5) of ethnic cultural aspects influence on the sales process as % of Total Answers
Source: Developed by the author based on primary research survey data
The majority of respondents or 41.30% chose 4 as the level of importance that ethnic cultural aspects have on the sales process, 28.26% chose the middle level or number 3, 17.39% stated it as very important (nr.5), 13.04% chose number 2, but 4.35% chose as a very low level of importance that ethnical cultural aspects have on the sales process.
Figure 4.13 Respondents split by the answer chosen as % of Total Answers:
In your opinion, are there more advantages or disadvantages while doing business with a person from a different ethnic culture/ nationality?
The majority of respondents or 54.35% answered the question with the answer More Disadvantages, 28.26% chose More Advantages as their answer, but 21.74% were not able to tell whether it provides more advantages or disadvantages when doing sales business with a person who represents different ethnical culture or nationality.
Figure 4.14 Respondents split by the answer chosen as % of Total Answers:
What are the biggest constraints on getting to know about other ethnic
cultures and nationalities?
From the answers received, it can be concluded that the majority or 36.96% of respondents stated that the problem is caused mainly by the lack of learning provided in school, 32.61% mentioned that the emotions in society are the main cause, 23.91% answered that the lack of knowledge why this subject is important could be the potential reason, but 10.87% answered that the personal lack of interest is the reason.
Figure 4.15 Respondents split by the answer chosen as % of Total Answers:
Would you be willing to learn about other cultures to create a better business
deal?
The majority or 63.04% chose Yes as the answer to the final question, 28.26%
stated that it is a question of how profitable the deal would be, but 13.04%
stated that they would not invest their time to learn about other cultures or
nationalities to finalize a better deal.
4.4.2.d Conclusions on Survey Analysis
The majority of respondents stated that in general ethnical cultural and nationality differences have an important influence on various business processes, especially the sales business deals. From the answers gained in the last part it can be concluded that there is not one main cause that could create such a problem in the modern world, but various different perspectives. The knowledge about importance of cultural intelligence and moral understanding why different people from different nationalities, ethnical cultures and other aspects could be much improved, plus that would upgrade the quality of our life in many other aspects, not only the business side.