Cross Cultural Study of Consumer Behaviour

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School of Management and Economics Fed 323; International Marketing Strategy Master’s thesis, spring 2006 Examiner: Anders Pehrsson

- A study about different factors affecting consumer preferences

Authors: Eva-Lena Andersson 820517
Evelina Arvidsson 820410
Cecilie Lindström 820404


Master thesis, School of Management and Economics, Växjö University FED 323; International Marketing Strategy, spring 2006

Authors: Eva-Lena Andersson, Evelina Arvidsson, and Cecilie Lindström Examiner: Anders Pehrsson
Title: Coca-Cola or Pepsi; that is the question – A study about different factors affecting consumer preferences

Background: Today, advertising is a multi-billion industry, employing hundreds of thousands of people and affecting billions of people’s lives worldwide. Yet, seeing as advertising clutter has increased tremendously and is more intense than ever, it is vital that companies differentiate themselves from competitors by creating even more powerful, entertaining and innovative advertisement messages, as well as sponsoring different events. Examples of such companies that spend billion of dollars on marketing strategies in order to stay key players in their industry are The Coca-Cola Company and PepsiCo.

Purpose: The overall purpose of this paper is to gain a deeper understanding of different international and local factors affecting consumer preferences on a local market.

Method: A quantitative method was applied, and thus a questionnaire with 150 respondents on the local market was conducted. The respondents were divided into three different age groups: ≤ 18, 19-34, and ≥ 35, and represent a diverse set of people who are at different stages in their lives.

Conclusions: International advertising and international sponsorship respectively influence the local target group in different ways, but they also affect international brand in that they have an impact on brand image and brand equity. Moreover, depending on a person’s age, consumers view brands differently, and thus have an effect on international brand alone, but also in combination with international advertisement and international sponsorship. Together, these factors influence the way in which a brand is perceived, and consequently influence consumer preferences.


“We shall not fail or falter; we shall not weaken or tire...Give us the tools and we will finish the job” - Sir Winston Churchill, 1941

This Master’s thesis was written during the spring of 2006, and is the result of ten weeks of hard work and dedication. Although it was challenging at times, the process was interesting and motivating, and provided us with a deeper knowledge in the area within consumer preferences.

This thesis however, would not have been made possible if it had not been for a number of people. First and foremost, we would like to take the opportunity to express our gratitude to our mentor, Anders Pehrsson, professor at the School of Management and Economics, Växjö University, for his help and guidance throughout the process of this thesis. We would also like to thank those who helped us in finalizing the questionnaire and gave us concrete feedback in how to modify the questionnaire to perfection. Finally, we would like to thank all of the 150 respondents who took time out of their busy schedules to participate in this study and therefore made this thesis possible.

Växjö, May 29, 2006

Eva-Lena AnderssonEvelina ArvidssonCecilie Lindström

Table of contents

1. Introduction ........................................................................................................................... 4

1.1 Background...
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