The influence of culture on the effect of core values regarding the brand awareness and brand loyalty : case study of the Dutch fair fashion brand MYOMY do goods

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The influence of culture on the effect of core values

regarding the brand awareness and brand loyalty

Case study of the Dutch fair fashion brand MYOMY do goods

Abstract: It is suggested that product design and core values both positively affect the brand awareness and brand loyalty customers have towards a brand or product. Presumably, different core values might have a different effect on the brand awareness and brand loyalty. To gain and sustain a competitive advantage within the market place culture is of great importance for companies to coordinate the actions of people and understand their beliefs, values and expressions. So, culture might influence the effect of core values, apart from product design, regarding the brand awareness and brand loyalty towards a brand.

Author: Aniek van Someren Student number: 11031859

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Statement of Originality

This document is written by Aniek van Someren who declares to take full responsibility for the contents of this document.

I declare that the text and the work presented in this document are original and that no sources other than those mentioned in the text and its references have been used in creating it.

The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.

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Fair trade products are these days purchasable in almost every supermarket in the Netherlands. Between 2007 and 2016 the percentage of Dutch households who buy fair trade products in the supermarket has even risen from 24% to 69% (van Joolen, 2017). Besides the popularity of these primary products, like food, the popularity of fair trade luxurious products, for example handbags, shoes and clothing, has been rising in the Netherlands (Fashion

Revolution, n.d.). Consequently, the number of fair trade brands and fashion houses has been quickly expanding in the past decade (Fashion Revolution, n.d.). According to Witkoski this growing popularity of fair products could give us the opportunity to conceptualise the fair trade movement as an alternative system for globalisation and economic development than carried out by conventional marketing of multinationals. Some describe fair trade even as a form of “ethical globalisation” (2005).

The Dutch fair fashion house MYOMY, specialised in leather bags and accessorises, is an example of a company which suits the growing demand for fair trade products and beliefs in the alternative system for globalisation and economic development (MYOMY, n.d). This fair-fashion house distinguishes themselves by their distinctive product designs and strong core values. Since the foundation of MYOMY in 2007 the demand and the popularity of their products continue to rise each year. Consequently, there might be a relation between the distinctive characters of the brand and the growing popularity and demand.

The overall global popularity of fair trade products increased since the fair trade sales in most product categories grew steadily over the past decade (FLO, 2016). Therefore, the Dutch fair fashion house MYOMY would like to expand their market to other countries. My internship at this fair fashion house have shown me the difficulties concerning the global marketing of a fair trade brand. So, first it might be of interest to test if both product design and core values influence the brand awareness and brand loyalty. Each country has a different

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culture and therefore the costumers presumably a different response, in terms of brand awareness and brand loyalty, to the distinctive characters of MYOMY. Therefore, the main aim of this study is to provide insights into whether culture influence the effect of core values, apart from product design, regarding the brand awareness and brand loyalty. But firstly, the different concepts of fair trade, product design, core values, brand awareness, brand loyalty and culture are elaborated on.

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Literature review Fair trade

Fair trade is "a philosophy that supports the marketing and sale of products at greater than free trade prices" (LeClair, 2003). Supporters of this philosophy believe that product prices, of agricultural commodities, textiles, and handicrafts, must be high enough to assure producers in developing nations a living wage, safe working conditions and human dignity (Witkowski, 2005; Moore, 2004; LeClair, 2003). The main goal is greater equity in

international trade since many supporters of fair trade also contend that the terms of trade have become unfair. Fair trade could be described as a form of "ethical globalisation” since the principles of economic development are bundled with commitments to gender equity, human rights, and environmental protection (Witkowski, 2005).

There are multiple stories on how and where fair trade initially started, but according to the World Fair Trade Organisation (WFTO) this was in the United States of America (USA) with the buying of Puerto Rican needlework in 1946 (2015). Parallel initiatives where taking place among the late 1950s in the United Kingdom (UK) and the Netherlands (WFTO, 2015). Moreover, at the end of the 20th_{century socially motivated individuals and} Non-Governmental Organisations (NGOs) in countries as Africa, Asia and Latin America

perceived the anticipated need for fair marketing organisations. These organisations provided assistance, support and advice to disadvantaged producers (WFTO, 2015). The relationships between the organisations and the producers were all based on partnership, dialogue,

transparency and respect and therefore aligned with the fair trade philosophy.

Furthermore, fair trade has been the topic of a growing marketing and management literature, mostly from European researchers (see, e.g. Strong 1997; Langeland, 1998; Nicholls, 2002; Auroi, 2003; Nicholls and Opal, 2005; Yeoman & McMahon-Beattie, 2006;

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Kapferer & Michaut-Denizeau, 2017). Together with the growing popularity of fair trade products and movement this stresses the importance of fair trade within the global marketing.

Product Design

In the classic marketing mix, also commonly known as the four P’s, is product design the most fundamental characteristic of a product (Grönroos, 1994). Therefore, the design of a product could be of great usefulness for the marketing and thus the sale of a product. The importance of the physical form or design of a product is also stressed by Bloch. He states that the form is certainly a determinant of a product’s success in the marketplace (1995). When a product design is good, customers are attracted to the product, it communicates to them and adds value to their quality of life. So, the visual appearance of products is considered to be a critical determinant of consumer response.

The physical form of a product has been evolving during the past years, it has become more an art. The designs have been more creatively and strategically employed to gain advantage in the worldwide marketplace (Bloch, 1995; Bloch, 2011). The empirical research concerning product design has also been evolving. Previous research measured product design in a one-item measure referring to aesthetic aspects and to measures of selected dimensions, e.g. the hedonic and utilitarian dimensions (Homburg & Schwemmle & Kuehl, 2015). Recent conceptual research considers product design as a three-dimensional concept, composed of aesthetic, functional and symbolic, thus extending beyond a one or two-dimensional measurement (Bloch, 2011; Homburg & Schwemmle & Kuehl, 2015).

Furthermore, product design could be referred to as a set of constitutive elements of a product (Crilly & Moultrie & Clarkson, 2004). Designers decide how to incorporate these elements and they determent the degree of congruity between the them (Crilly & Moultrie &

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Clarkson, 2004). These constitutive elements of a product are perceived by consumers and could be placed in the artistic, functional, and symbolistic dimension.

In addition, the design or form of a product may contribute to its success in various ways. Product design could be used to distinguish the product from others in the market place and so gaining consumer notice (Dumaine, 1991; Page & Herr, 2002). Beside this, first impressions are based on the design of a product and is thus a great manner to communicate information, e.g. core values, to customers (Nussbaum, 1993; Crilly et al., 2004). Also, the quality of life might be affected by the usage and viewpoint of products. When a product is beautifully designed the quality of life could be increased by the amusement and stimulations consumers experience (Crilly et al., 2004).

Moreover, durable products might have an impact on the life of users for several years (Bloch, 1995). When a product form is based on distinctive design philosophies this could help in developing corporate and brand identities by reinforcing a corporate character (Bloch, 1995). Product design could incorporate greater social benefits and thus be a way to create shared value (Porter & Kramer, 2019). Shared value is often integral to the competitive position and profitability of a company. It leverages the unique resources and expertise of the company to create economic value by creating social value (Porter & Kramer, 2019).

In conclusion, product design consists of all constitutive elements perceived by customers and could be placed in the artistic, functional and symbolistic dimension. Product design creates the first impression and is thus a great way to distinguish from other products and communicate to the customers. Besides this, the quality of life could be affected by the usage and viewpoint of beautifully designed products. Furthermore, product design could be used to create shared value (e.g. social value) and thus enhance the competitive position and the profitability of a company.

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Core Values

In a constant developing marketplace is differentiation of great importance for most companies in order to gain competitive advantage (Bloch, 1995; Porter & Kramer, 2019). Product design is often used to create this differentiation from other products in the marketplace. But there are certainly more ways, for example a corporate brand might

distinguish herself whilst expressing her brand identity (Duh & Belak & Milfelner, 2010). In corporate branding and expressing the brand identity are core values a manner to differentiate from other companies (Balmer & Gray, 2003). Most literature look at core values from three different viewpoints: values that are related to the organisation, values that summarise the brand and values that are experienced by the customers.

The first view point looks at a companies’ core values as: “the organisation’s essential and enduring tenets, a small set of timeless guiding principles that require no external

justification; they have intrinsic value and importance to those inside the organisation” (Collins & Porras, 1998 p. 222). In addition, this organisation value is also referred to as the core processes of the organisation, as the storytelling of an organisation or as a component of the organisations intellectual capital (Edvinsson & Malone, 1997; Jensen, 1999; Knox et al, 2000;).

The second view point sees core values as the brand essence, or in other words as values that sum up the brand (Urde, 2003). The main objective of establishing the brand essence is to describe and define where a brand stand for. Furthermore, values that sum up a brand can be viewed as part of identity or as an inner value of a company (Aaker &

Joachimsthaler, 2000; First & Khetriwal, 2010).

The third view point refers to core values as all values that are experienced by the customers of a company. Multiple authors agree that brands have value since they add value. This value adding process could be seen in the light of customer value, e.g. what customers

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are prepared to exchange for a brand (Knox &Maklan, 1998). Moreover, according to Jonas & Morgan (1994) and Urde (2009) value adding could be used to explain the durable competitive advantages from a strategic perspective and the process of developing brands.

If core values are fulfilling their role and function, they are reflected in the product design, expressed in organisational behaviour and in the outward communication (Urde, 2003). When the goal of a company is to create shared value, e.g. caring for the world, this is often reflected in its core values. The concept of creating shared value could be applied to almost every major decision in a company and could therefore be established in a companies’ core values (Porter & Kramer, 2019).

To conclude, the values of a company answer the question of what they, as an

organisation, stand for and what characterises them. The internal values are a guideline whilst establishing core values and therefore summarising the brand identity. Core values could be all values that are related to the organisation, summarise the brand and are experienced by the customers. All corporate brands have core value but these may vary in number, in degree they are internally fixed and extent they are perceived by customers. But when these values and promises are without commitment, they could cause severe problems for the credibility and legitimacy of the brand and thus harm the customer relation. When they do fulfil their role and function, the core values are expressed in the organisational behaviour, reflected in the product designs and in the outward communication.

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Brand awareness

The recent rising customer consciousness has made customers choose to purchase their most favourable and familiar brand. Therefore, if companies want a competitive advantage, they need to make sure that customers love their products and brands. But even though customers are familiarised and are willing to purchase a product, brand awareness is still an important factor (Macdonald & Sharp, 2000).

Brand awareness refers to the ability of a consumer to recognise and recall a brand based on perceptual frequency (Aaker, 1996; Hellofs & Jacobson, 1999). The recognition of a brand refers mainly to the capability of a consumer to remember past exposure and thus identify the brand correctly (Aaker, 1992; Chi, Yeh & Yang, 2009). On the other hand, brand recall refers to the ability to recall a brand name correctly without any mention of for example product class (Aaker, 1992; Walsh & Kim & Ross, 2008).

Moreover, brand awareness could be defined as the buyer’s ability to identify the brand in adequate detail to make an actual purchase (Grewal, Monroe & Krishnan, 1998). A product has higher brand awareness when the brand name comes in to the minds of customers when they want to buy a product. This consumers’ purchase decision can therefore be

influenced if a product has higher brand awareness (Chi, Yeh & Yang, 2009). So, this

explains why a product with higher brand awareness will have higher market share and better quality evaluation.

According to Hoeffler and Keller brand awareness can be distinguished in the depth and the breadth. The depth of brand awareness concerns how effortless customers can

recognise or recall the brand. Moreover, the breadth refers to the amount of consumption and purchase situations the brand comes to mind by customers. High depth of brand awareness leads to an increase in sales when consumers when they think of the brand when needed the

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product. High breadth of brand awareness leads to an increase in sales when consumers are thinking of the brand in a variety of settings (2002).

In short, brand awareness refers to the ability of customers to recognise and recall a brand, based on perceptual frequency and to identify the brand to make a purchase. This affects the purchase decision of consumers through brand association because they mostly tend to buy well known and/or familiar products. So, companies with high depth and breadth of brand awareness will have a competitive advantage in the market place.

Brand loyalty

Some studies suggest that the cost to attract a new customer is more than five times higher than of maintaining a loyalty customer (Barsky, 1994; Chi & Yeh & Yang, 2009). So, the higher the brand loyalty, the less cost businesses might have to pay to attract new

customers. Therefore, it is import for a company to build up brand loyalty to have a

competitive advantage. Moreover, multiple studies have shown that when brand awareness is high, its brand loyalty is also likely to increase (Walsh & Kim & Ross, 2008; Chi & Yeh & Yang, 2009). So, it could me assumed that high brand awareness will ultimately lead to a higher brand loyalty.

Brand loyalty refers to consumers’ preference resulted from previous use and experience of a certain product (Aaker & Equity, 1991; Hoeffler & Keller, 2002). The strongest form of brand loyalty is when customers are willing to invest for example energy, time and money in to the brand beyond the purchase or consumption of their products (Hoefler & Keller, 2002; Chi & Yeh & Yang, 2009). Previously, it was believed that brand loyalty was fully captured when there was a repetition in purchasing a brand (Newman, 1966; Kahn et al., 1986; Ehrenberg, 2000). But this approach was challenged with preferences to infer loyalty. The existence of for example situational factors, intrinsic factors and

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socio-cultural factors were given more attention when reviewing the concept of brand loyalty. Day (1996) was the first author who introduced attitudinal besides behavioural brand loyalty. So, brand loyalty may be defined as the biased behavioural response, expressed over time by some decision-making unit, with respect to one or more alternative brands out of a set of such brands, and is a function of psychological processes (Jacoby & Kyner, 1973; Bandyopadhyay & Martell, 2007)

Most the existing literature of brand loyalty has been focussing on the role of the attitudinal aspect, the perceived quality, the customer satisfaction and the brand reputation. Although, the last past decades the shifting to relational marketing has committed a lot of effort to analyse how other concepts, such as trust, might influence and predict future purchase intention. There are conceptual connections of trust to the notion of customer

satisfaction and brand loyalty, but this connection is especially lacking in the brand-consumer relationship (Gabarino & Johnson, 1999; Delegado –Ballester & Luis Munuera-Alemán, 2001). So, it is demonstrated that consumer satisfaction and brand trust also have a role in predicting the future intentions of customers and thus the brand loyalty.

To conclude, to gain competitive advantage in the market place it is of great

importance for a company to build up brand loyalty. Brand awareness is also of high concern because it is assumed that high brand awareness will lead to brand loyalty. The strongest form of brand loyalty is when customers are willing to invest energy, time and money in to the brand beyond the purchase or consumption of their products. The repetition in purchasing a brand is referred to as the behavioural aspect of brand loyalty. Moreover, the situational factors, intrinsic factors and socio-cultural factors concern the attitudinal aspect of brand loyalty. Besides this behavioural and attitudinal aspect and the role of perceived quality, customer satisfaction, brand reputation and brand trust is also stressed when concerning the concept of brand loyalty.

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Culture

The term culture could bring up several different associations and definitions. Whether we have in mind the development of an individual, of a group, or of a whole society, or if we look at culture in a business perspective (Hofstede, 1984; Elliot, 2010). Culture has been conceived rather vaguely as a group’s norms and values, as its observed patterns of behaviour, and as its attitudes towards family and work (e.g. Tudge et al., 2000; Matters, 2008).

According to Hofstede management within a society is much constrained by its cultural context. It seems to be impossible to coordinate the actions of people without a good understanding of their beliefs, values and expressions (1984).

Therefore, four dimensions have been developed by Hofstede to represent elements of common structure in the different cultural systems. The dimensions are based on four issues in human societies to which each society has its own answers. The position of a country depends on each of the four dimensions which could be indicated by a score. The different dimensions concern the following concepts: individualism versus collectivism, large versus small power distance, strong versus weak uncertainty avoidance and, masculinity versus femininity (1984). These four dimensions were researched by Hofstede (1984) for approximately 40 different countries.

The dimension of individualism versus collectivism has been defined in various ways since Hofstede first introduced these concepts as opposites of a value dimension that

characterised different world cultures (1980; 1984). Aspects associated with individualism include e.g. giving personal goals priority over group goals, the feeling of personal

independence and having greater concern with personal fate than group fate (Hofstede, 1980; Ho & Chiu, 1994; Rhee & Uleman & Lee, 1996). Features associated with collectivism include e.g. giving group goals priority over own priority’s, interconnection with the group, avoiding open conflict within the group and distinguish sharply between groups and out

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groups (Hofstede, 1980; Ho & Chiu, 1994; Rhee & Uleman & Lee, 1996). These opposites of individualism and collectivism have been developed as conditions that include beliefs, norms, values, attitudes and behaviours of different cultures (Rhee & Uleman & Lee, 1996).

Moreover, the dimension of power distance is defined by Hofstede as ‘the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally’ (1980). People from cultures with high power distance are more familiar with centralised leadership and a high value of personal

independence, whereas from cultures with low power distance are more content with autonomous leadership and equal power distribution thus a have more collective attitude (Eylon & Au, 1999). Cultures could be defined and thus divided in terms of having or feeling commonly high or low power distance.

Furthermore, the amount of uncertainty avoidance, strong or weak, was characterised by Hofstede (1980) as a variable value (e.g. dimension) across different cultures. The

dimension was explained as “the extent to which the members of a culture feel threatened by uncertain or unknown situations” (Hofstede, 1991, p. 113). This feeling is often expressed by the need for predictability, the expression of features of stress and the search for safety (Hofstede, 1991; Jung & Kellaris, 2004). Uncertainty avoidance has been dealt with at the accumulated level as a distinctive characteristic of cultures (e.g. Hofstede, 1980; Hofstede, 1991; Jung & Kellaris, 2004). The dimension of uncertainty avoidance is constituted by multiple different subjects and therefore applicable to cultures instead of individuals.

Nevertheless, the dimension of masculinity and femininity is used to indicate whether cultures are low or high on masculinity and femininity (Hofstede, 1980). Characteristics of high masculinity in cultures are e.g. money oriented, independence ideal, machismo ideal and decisiveness (Hofstede, 1983). In the light of product image the dimension of masculinity and femininity is restricted to symbolic attributes directly associated with sex roles (Sirgy, 1982).

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This is often measured by using a bipolar masculinity-femininity rating or by two independent constructs to measure the masculinity, femininity, and psychological androgyny in product perception and thus brand image (Gentry & Doering, & O'Brien 1978; Allison et al., 1980). So, the dimension of masculinity and femininity within different cultures could also be referred to when concerning product image.

In conclusion, the importance of the four different cultural dimensions by Hofstede is stressed since it is seeming to be impossible to coordinate the actions of people without a good understanding of their beliefs, values and expressions. The dimensions of individualism and collectivism, power distance, uncertainty avoidance and masculinity and femininity represent elements of common structure in the different cultural systems. Therefore, this could be a great manner to distinguish between cultures when concerning e.g. product perception, brand image or management within a company.

Conceptual model and hypotheses

Multiple studies suggest that product design and core values are both great manners for companies to distinguish in the market place and thus gain a competitive advantage (Dumaine, 1991; Bloch, 1995; Page & Herr, 2002; Balmer & Gray, 2003; Duh & Belak & Milfelner, 2010). Furthermore, this differentiation and possible competitive advantage of companies are results from high brand awareness and thus high brand loyalty among their customers (Macdonald & Sharp, 2000; Walsh & Kim & Ross, 2008; Chi & Yeh & Yang, 2009). Therefore, it might be assumed that product design and core values will lead to brand awareness and brand loyalty. Consequently, this study aims to test this assumption through the following hypotheses:

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Hypothesis 1a; product design positively affect the brand awareness and brand loyalty

Hypothesis 1b; core values positively affect the brand awareness and brand loyalty

Furthermore, it might be of interest for companies to know whether the effect of core values differs in terms of brand awareness and brand loyalty. If the effect differs they could use their core values to gain a competitive advantage within the market place. Moreover, it might be possible to select for example the collections or products with the most affecting core values regarding the brand awareness and brand loyalty. The assumption that different core values lead to different responses in terms of brand awareness and brand loyalty will be tested through the following hypothesis:

Hypothesis 2; apart from the product design, different core values will have different

responses in terms of brand awareness and brand loyalty

Moreover, some studies have shown the importance of the four cultural dimensions by Hofstede when trying to coordinate the actions of people and thus understanding their beliefs, values and expressions (e.g. Allison et al., 1980; Elliot, 2010). Brand awareness and brand loyalty also might vary across cultures. For example, Asian consumers tend to be more brand loyal and thus favour the similar product or brand other members of their group recommended (Palumbo & Herbig, 2000). Especially Chinese consumers favour to be part of small

reference groups (Palumbo & Herbig, 2000).

The different reactions of cultures might be of interest for companies in order differentiate in the market place and thus to gain and sustain a competitive advantage. Therefore, the aim of this study is to provide insights into whether culture moderates the

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effect of core values, apart from product design, regarding the brand awareness and brand loyalty. Since, Asian cultures tend to be more brand aware and brand loyal according to Palumbo and Herbig (2000) the following hypothesis will be tested:

Hypothesis 3: Asian cultures influence the relation between core values, apart from the

product design, more positively than European cultures

The combination of information given in the theoretical framework allows for the creation of the conceptual models which are provided below (Fig. 2 & 3). The framework helps to create a better understanding into the dynamics of this research and the relations between the different hypothesis.

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Research design Methods

The quantitative research to test the three hypotheses will be done by taking MYOMY do goods as a case study. The Dutch fair fashion house MYOMY do goods, specialised in leather bags and accessories, distinguishes themselves by their distinctive product designs and strong core values. They are currently operating within the Netherlands, Belgium, Germany and Austria but would love to expand to other countries since the popularity of fair products continues to rise. Therefore, MYOMY do goods is a great case study to provide insights into whether culture influence the effect of core values, apart from product design, regarding the brand awareness and brand loyalty. The second hypothesis will be tested whilst comparing the three different main collections, the MY PAPER BAG, MY CARRY BAG and the MY PHILIP BAG collection, of MYOMY do goods. These collections all represent different stories (core values) so when these are compared an answer might be found.

Design and Sample

To provide these insights the different hypotheses will be tested through analysing the different variables using SPSS. The data was collected using a cross-sectional survey design. The survey was executed among people who already did know MYOMY do goods and among people who did not know the company. An anonymous link for the questionnaire was distributed and the data was collected during a time span of 10 days. The minimal required field consisted of approximately 100 people. However, only 89 participants fully completed the survey and 50 did not. Leading to a final sample size of 89 participants, from which 30 % already was in the position of a MYOMY do goods bag and 70% was not.

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Independent Variable: Product Design & Core Values

The effect of product design and core values was measured by approximately 10 items whilst/after showing the participants three different product designs and the core values of MYOMY do goods. An example item of product design is: ‘I bought or would buy a bag because of the product designs’. An example item of core values is: ‘I bought or would buy a bag because of the story behind the bags’. The 5-point Likert scale of each item ranges from (1) completely disagree to (5) complete agree. A high score represents high effect of product design and core values.

Dependent Variable: Brand Awareness & Brand loyalty

Brand awareness was measured with 7 items, partly developed by Kim and Kim (2005), before showing the participants the products and core values of MYOMY do goods. An example item of was: ‘I have seen/know the brand MYOMY do goods’. Brand loyalty was measured with 8 items, partly developed by Kim and Kim (2005), after showing the

participants the product designs and core values of MYOMY do goods. An example item was: ‘I have a positive attitude towards MYOMY do goods’. The 5-point Likert scale of each item ranges from (1) completely disagree to (5) completely agree. High scores represent high brand awareness and high brand loyalty.

Moderating Variable: Culture

Culture was measured with 4 items for each of the three product designs based on the four cultural dimensions, individualism/collectivism, power distance, uncertainty avoidance and masculinity/femininity, developed by Hofstede (1980). Example items are ‘The design of the MY PAPER BAG is in my opinion’ with the answers ‘male’ or ‘female’ and’ The design

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of the MY PAPER BAG shows in my opinion’ with the answers ‘collectivism’ or ‘personal independence’. Moreover, the different cultures where established by 2 items. These were ‘From which country are you?’ and ‘The vision of MYOMY and their product designs will be loved in my country’. For the last item, the 5-point Likert scale ranges from (1) completely disagree to (5) completely agree.

Analytical plan

Firstly, the main effects of the IV on the DV will be tested. To test Hypothesis 1a, the relation between product design and brand awareness and brand loyalty, and Hypothesis 1b, the relation between core values and brand awareness and brand loyalty, the reliabilities and correlations will be tested with SPSS with brand awareness and loyalty as dependent variable and product design and core values as independent variable.

To test Hypothesis 2, that different core values will have a different response in terms of brand awareness and brand loyalty, the data collected from the questionnaire will be analysed using SPSS to compose the mean brand awareness and brand loyalty on the different stories (core values) of the collections. These analyses will indicate weather, apart from the product design, the different stories (core values) of each collection will lead to brand awareness and brand loyalty.

Finally, the interaction effect of the IV and the M on the DV will be tested. To test Hypothesis 3, that Asian cultures influence the relation between core values, apart from the product designs, more positively than European cultures, the data will be analysed in SPSS to compare the outcomes of the questionnaire for each collection and the four cultural dimensions of Hofstede (1980). Moreover, the mean score of each variable for the different collections will be composed using SPSS to indicate which cultures influence the relation between core values, apart from product design, and brand awareness and brand loyalty the strongest.

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Analysis Sample

The data has been collected from a sample of (N=89) participants, the initial response rate was 139 but not every participant finished the complete questionnaire. The age, gender and education level of the sample were not of major interest for this research and therefore not asked. Additionally, the sample consist of participants from the Netherlands (N= 94%), China (N=2%) and other countries, e.g. Korea (N= 2%) and Saudi Arabia, (N=1%). Approximately 26 participants (N=30%) were already in the position of one or multiple bags from MYOMY do goods and consequently 63 (N= 70%) were not. Moreover, the questionnaire was

distributed by the company MYOMY do goods itself, by the University of Amsterdam and by personal networks.

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Hypothesis 1: Reliabilities and correlations

The reliably and correlations between product design, core values and brand

awareness, brand loyalty are only of interest to test the first hypothesis (H1a; product design positively affects the brand awareness and brand loyalty and H1b; core values positively affects the brand awareness and brand loyalty). In Table 1 the means (M), the standard deviations (SD) and the reliabilities (α) of all the relevant variables are presented. The reliability of the Brand Awareness (α = ,95), Brand Loyalty (α =,883), Product Design (α =,71) and Core Values (α =,705) were good: (α ≥ .80) and reasonable (.60 ≤ α < .80), thus satisfactory. Also, Table 1 contains the relevant correlations indicated by Pearson’s

correlation coefficient (r). As was expected, product design is significantly positive related to brand awareness, r (89) = 0,538, p< ,05, and brand loyalty, r (89) = 0,656, p<,05. As was proposed, also core values is significantly positive related to brand awareness, r (89) = 0,67, p<,05, and brand loyalty, r (89) = ,67, p<,05. So, these reliabilities and correlation might suggest that the first hypothesis (part a and b), that product design and core values both positively affect the brand awareness and brand loyalty, could be supported.

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Hypothesis 2

The data collected with the questionnaire could provide inside to the second (H2; apart from the product design, different core values will have different responses in terms of brand awareness and brand loyalty). In Table 2 the score of brand awareness and brand loyalty on the different stories (core values) of the collections is presented. The MY PAPER BAG collection is indicated by the mean of 3, the MY CARRY BAG collection by 4 and the MY GYM BAG collection by 3. The 5-point Likers scale ranged from (1) completely disagree to (5) completely agree. So, the effect on the brand awareness and brand loyalty of the story (core values) behind the MY CARRY BAG collection was stronger than of the other two collections. This might suggest that there is indeed a difference in the effect of the different core values regarding the brand awareness and brand loyalty. But since, the standard

deviation of the MY GYM BAG collection is the smallest the data collected lies closed to the mean than by the other two collections. This might indicate that the respondents were more conformable about the MY GYM BAG collection. In conclusion, the results do show that the effect of the core values per collection might differ in terms of brand awareness and brand loyalty.

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Hypothesis 3

To test the fourth hypothesis (H3: Asian cultures influences the relation between core values, apart from the product design, more positively than European cultures), the data presented in Table 3, Table 4 and Graph 1 could be used. Firstly, the countries and thus cultures are grouped together, e.g. Europe, Asia and UAE, to compare the outcomes of the questionnaire for each collection and the four dimensions (Table 3) to the research of

Hofstede. Moreover, Table 4 shows the means of the different variables, e.g. product design, core values, brand awareness and brand loyalty, per culture. The 5-point Likers scale ranged from (1) completely disagree to (5) completely agree. Graph 1 shows the average scores on the four dimensions of Hofstede for the Netherlands, China, South Korea and Saudi Arabia (Hofstede insights, n.d.). Since the participants of the questionnaire are from these cultures it assumed in this research that the averages could reflect the European, the Asian and the United Arab Emirates (UAE) cultures. Therefore, the results of the questionnaire, presented in Table 3, could be compared to the averages in Graph 1.

First cultural dimension: Masculinity

Table 3 shows that the first cultural dimension of masculinity was valued for the MY PAPER BAG (MPB) collection as low by the European (96%) and Asian cultures (75%) and high by the UAE cultures (100%). In addition, this dimension for the MY CARRY BAG (MCB) collection was scored as low by the European (96%), Asian (100%) and UAE cultures (100%). Controversially, the MY GYM BAG (MGB) collection was valued as high by the European (57%), Asian (75%) and UAE (100%) cultures.

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Second cultural dimension: Individualism

The second dimension of individualism was for the MPB collection valued as high by the European (55%), the Asian (75%) and the UAE cultures (100%). Additionally, for the MCB collection as low by the European (56%) and Asian (100%) cultures but as high by the UAE cultures (100%). Also, the MGB collection was valued as low by the European (62%) and Asian cultures (100%) but high by the UAE cultures (100%).

Third cultural dimension: Power distance

The third dimension of power distance was for the MPB collection valued as low by the European (71%) and UAE cultures (100%) but as average by the Asian cultures (50% low, 50% high). On the other hand, for the MCB collection this dimension was low for the European (73%) and Asian cultures (100%) but high for the UAE cultures (100%).

Furthermore, the MGB collection scored low on this dimension in the European (82%), Asian (75%) and UAE cultures (100%).

Fourth cultural dimension: Uncertainty avoidance

The last cultural dimension of uncertainty avoidance was for the MPB collection low for the European (65%) and UAE cultures (100%), and high for the Asian cultures (75%). This dimension scored low for MCB collection by the European (51%), Asian (75%) and UAE cultures (100%). In comparison, the MGB collection was valued as high by the European (68%), average by the Asian (50% low, 50% high) and low by the UAE (100%) cultures.

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Comparison of Graph 1, Table 3 & Table 4

Graph 1 shows that Saudi Arabia (the UAE) scores the highest on masculinity in comparison to the Netherlands (Europe) and the average of China and South Korea (Asia). On the other hand, the European cultures have the highest value of individualism compared to the UAE and Asian cultures. Furthermore, the UAE cultures have a higher value on power

distance than the Asian and European cultures. Moreover, the UAE cultures are rated higher on uncertainty avoidance than the Asian and European cultures. The Asian cultures are valued the lowest on the first and second cultural dimension and the European for the third and fourth cultural dimension.

So, when considering the first cultural dimension it might be best to promote the MPB collection among the UAE, European and Asian cultures, the MCB collection among the European and Asian cultures and the MGB among the UAE cultures. Looking at the second dimension the MPB could be promoted among the European and UAE cultures but the MCB and MGB collection among the Asian cultures. Viewing the third dimension the MPB collection could be promoted among the Asian cultures, the MCB collection among the UAE cultures and the MGB collection among European cultures. Lastly, according to the values of the fourth cultural dimension the MPB could be best promoted among Asian cultures, the MCB among European cultures and the MGB among the Asian cultures. Considering all four cultural dimensions it would be best to elevate the MPB collection among the European, Asian and UAE cultures but the MCB and MGB collection among the Asian cultures.

In Table 4 the different means per variable per culture group show that the score on core values is the highest among the Asian (3,75) and European cultures (2,71) in comparison to the UAE cultures (1,00). Furthermore, the brand awareness is the highest among the Asian (3,85) and European (3,00) cultures in comparison to the UAE (1,40) cultures. Also, the brand loyalty is the highest among the Asian (3,85) and European (3,00) cultures.

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So, the mean score of the different variables (e.g. core values, brand awareness and brand loyalty) are the highest for the Asian and European cultures. Also, two out of three collections of MYOMY do goods could be best promoted among these cultures. Since the mean values of the different variables are higher for the Asian than European cultures, this could suggest that there is compliance with the literature that implies that Asian cultures have strong brand awareness and brand loyalty. Therefore, this might entail that Asian cultures do influence the relation between core values, apart from the product design, more positively than European cultures.

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Table 3. The different collection and the four dimensions per culture

Table 4. The means of the different variables per culture group

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Discussion & Conclusion

Summary

This paper researched the interconnected effect between the product design/core values and brand awareness/brand loyalty and the extent to which, apart from the product design, the relationship between core values and brand awareness/ brand loyalty is influence by different cultures. More explicitly, this study tested the relationship with the case study of the Dutch fair fashion brand MYOMY do goods.

Key findings

In compliance to what we were expecting this research suggested that product design and core values might both positively affect the brand awareness and brand loyalty. This outcome suggests that both product design and core values of a specific brand could lead to brand awareness and brand loyalty. Moreover, the results of the second hypothesis suggest that the assumption that different core values, apart from product design, have a different effect on the brand awareness and brand loyalty holds. Nevertheless, the results from the analyse in combination with literature also suggest that culture does influence the relation between core values, apart from product design, and brand awareness/brand loyalty.

Predicted results

In compliance with our expectations, there might be a noteworthy influence of culture on the relation between core values that might lead to brand awareness and brand loyalty. Since multiple studies have shown the importance of the four cultural dimensions by Hofstede when trying to coordinate the actions of people and thus understanding their beliefs, values and expression, these results were not surprisingly. Especially the strong influence of Asian cultures

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was as expected, since they tend to be part of small reference groups and thus favour the similar products and brand.

Discussion points

The regression results (Model 1) and the interaction effect (Model 2) between the different variables could not be researched. Therefore, this research has not provided

statistical evidence for (not) supporting the different hypothesis. The hierarchical regression analysis, using mean-centred variables and pairwise exclusion (Aiken & West, 1991), could not be executed because of lack of similarity in scale between the moderating variable and the (in)dependent variables. To test the regression and interaction effect, and thus provide

statistical evidence, the questions in the questionnaire concerning culture must be adjusted to equalise the scales of the variables.

Moreover, the survey is likely to be biased since it does not represent the world population. The population of Europe, the UAE and Asia were under coverage since there was only 1 UAE respondent from Saudi Arabia, 3 Asian respondents from China and South Korea and 85 European respondents from the Netherlands. So, the different cultures were also distributed unequally since they did not have the same size. Since, the research is done along a case study the results are not universal and could thus differ when another case study is taken into consideration.

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Interpretation of results: similarity with previous results

The finding that product design and core values could both positively influence the brand awareness and brand loyalty stands in line with some previous research (Dumaine, 1991; Bloch, 1995; Page & Herr, 2002; Balmer & Gray, 2003; Duh & Belak & Milfelner, 2010). Since both product design and core values are great manners for companies to distinguish in the market place and thus gain a competitive advantage. Furthermore, this differentiation and possible competitive advantage of companies are results from high brand awareness and thus high brand loyalty among their customers (Macdonald & Sharp, 2000; Walsh & Kim & Ross, 2008; Chi & Yeh & Yang, 2009). Within our study, hypothesis 1 could be supported since product design, core values and brand awareness, brand loyalty are correlated. Therefore, this study provides further evidence to support the correlation between both product design and core values and thus brand awareness and brand loyalty.

The result that there might be a noteworthy influence of culture on the relation between core values that might lead to brand awareness and brand loyalty is in line with multiple studies (e.g. Allison et al., 1980; Elliot, 2010). These studies have shown the importance of the four cultural dimensions by Hofstede when trying to coordinate the actions of people and thus understanding their beliefs, values and expression. Moreover, the finding that this relation between core values and the brand awareness and loyalty could be more positively influenced by the Asian than European cultures, is also in line with previous research (Palumbo & Herbig, 2000). Therefore, this study provides shows whether culture moderates the effect of core values, apart from product design, regarding the brand awareness and brand loyalty.

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Interpretation of results: future research

To gain further insight into the matter of causality versus correlation, extensive literature research must be continued. Therefore, conducting further quantitative and qualitative research on the matter of culture could be done.

Moreover, as mentioned in the discussion point section to provide statistical evidence for the moderation effect of culture, on the product designs/core values and brand

awareness/brand loyalty, the regression and interaction effect must be tested in SPSS. In order to do so, the questionnaire must be adjusted to equalise the scales of the variables. Only then, the regression analysis (Model 1), the interaction analysis (Model 2) and the hierarchical regression analysis, using mean-centred variables and pairwise exclusion (Aiken & West, 1991), could be executed. Also, as mentioned in the discussion point section, it may be interesting to sample within more different cultures to gain a more equally distributed sample which represents the entire world population. Then it would be less likely for the survey to be biased.

For the case study MYOMY do goods it might be of interest to research if the

outcomes of the second and third hypothesis would be different if also product design is taken into consideration. Moreover, it might be interesting to test all the hypotheses for multiple case studies operating in the same market place. So, more insight is provided into whether culture influence the effect of core values, apart from product design, regarding the brand awareness and brand loyalty.

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Conclusion

Previous research has showed that culture could influence the effect of product design and core values regarding the brand awareness and brand loyalty. This research provided insight in the positive relation between product design and both brand awareness and brand loyalty, and between core values and both brand awareness and brand loyalty. Moreover, the assumption that different core values lead to different amounts of brand awareness and brand loyalty also seems to be in line with this research. Moreover, the present study did show the effect of culture on the relationship between core values, apart from product design, and brand awareness, brand loyalty. Especially, the Asian cultures have shown a strong influence on this relation. These findings are in conformity with previous research that suggests that Asian consumers tend to be more brand loyal. Combining these results with contemporary studies show the importance of culture when trying to coordinate the actions of people and

understanding their beliefs, values and expressions, for companies to gain and sustain a competitive advantage within the market place.

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Appendix

The questionnaire

Introduction: Dear participant,

In advance I would like to thank you for filling in my questionnaire. This questionnaire is of great importance for my bachelor thesis about international marketing focused on a Dutch Fair Fashion house. All the given answers will be handled with great confidence and will be anonym.

The Dutch Fair Fashion house is MYOMY do goods. They are specialised in leather bags and accessorises which are fair trade produced in India and Bangladesh. Every MYOMY do goods item you purchase contributes directly to a better life for the artisans and their family members, for example in the form of healthcare and education.

Try to answer questions as honestly as possible by choosing from the options provided. If you are interested in the results of my research you can email contact details to

aniek.vansomeren@student.uva.nl Brand awareness

I have seen/know the brand MYOMY do goods

1 – 5 scale

I know the brand MYOMY do goods well and I know where they stand for

1 – 5 scale

I am familiar with the brand MYOMY do goods

1 – 5 scale

I have a positive opinion about MYOMY do goods

1 – 5 scale

I see the bags of MYOMY do goods around me

1 – 5 scale

My friends and family own MYOMY do goods bags

1 – 5 scale

I would recommend MYOMY do goods to my family and friends

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MY PAPER BAG

The design of the MY PAPER BAG collection appeals to me

1 – 5 scale

I know that the MY PAPER BAG collection is inspired on a paper grocery bag

1 – 5 scale

The design of the MY PAPER BAG is in my opinion

- More female - More male

The design of the MY PAPER BAG shows in my opinion (Individualism/Collectivism)

- Collectivism

- Personal independence

The design of the MY PAPER BAG gives you in my opinion (Power distance)

- A high status - A normal status

The design of the MY PAPER BAG is in my opinion (Uncertainty avoidance)

- Iconic - Ordinary

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MY CARRY BAG

The design of the MY CARRY BAG collection appeals to me

1 – 5 scale

I know that the MY CARRY BAG collection is inspired on a plastic bag and launched when it was forbidden to gif plastic bags away for free

1 – 5 scale

The design of the MY CARRY BAG is in my opinion

The design of the MY CARRY BAG shows in my opinion (Individualism/Collectivism)

- Collectivism

The design of the MY CARRY BAG shows in my opinion (power distance)

The design of the MY CARRY BAG is in my opinion (uncertainty avoidance)

- Iconic - Ordinary

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MY GYM BAG

The design of the MY GYM BAG collection appeals to me

1 – 5 scale

I know that the MY GYM BAG collection is inspired on a childhood soccer bag

1 – 5 scale

The design of the MY GYM BAG is in my opinion

The design of the MY GYM shows in my opinion (Individualism/Collectivism)

- Collectivism

The design of the MY GYM BAG gives you in my opinion (Power distance)

The design of the MY GYM BAG is in my opinion (Uncertainty avoidance)

- Iconic - Ordinary

Product design & core values:

I bought or would buy a bag because of the product designs

1 – 5 scale

MYOMY do goods have distinctive product designs in comparison to other bag brands

1 – 5 scale

I bought or would buy a bag because of the story behind the bags

1 – 5 scale

I care about the world and therefore I would buy/bought a MYOMY do goods item

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Brand loyalty

I have seen MYOMY do goods bag in a lot of shops

1 – 5 scale

I often see /give attention to advertises of MYOMY do goods

1 – 5 scale

I often see/give attention to information send by MYOMY do goods

1 –5 scale

I have a positive attitude towards MYOMY do goods 1 – 5 scale

MYOMY do goods is well known for its corporate social responsibility

1 – 5 scale

I own one or multiple MYOMY do goods bag(s)

Yes or no

No

I would buy a bag from MYOMY do goods now I have seen their product designs

1 – 5 scale

I would buy a bag from MYOMY do goods now I heard the story behind their bags

1 – 5 scale

Yes

I use my MYOMY do goods bag often

1 – 5 scale

I would buy more MYOMY do goods bags

1 – 5 scale

Culture

From which country are you?

- The Netherlands - Luxembourg - Belgium - France - Germany - Spain - Portugal - Poland - the UK - the USA - Australia - China - Other namely..

The vision of MYOMY and their product designs will be loved in my country

The influence of culture on the effect of core values regarding the brand awareness and brand loyalty : case study of the Dutch fair fashion brand MYOMY do goods