The Effect of Brand Position on Consumer Choices of Luxury Brands: A Cross-Cultural Study between British and Kazakhstani Consumers

This chapter will present how the author finds answers to our research questions, the author will explain the origin of secondary data and how the samples will be selected. Figure 4 is the schematic presentation of the methodologyIn the chapter of Research Purpose and Objectives, the purpose of this research has been briefly explained. Generally, there are three common types of purposes for academic research: explore, describe, or explain (Yin, 2003). According to the definition of the exploratory aim that is to explore what is occurring, to seek new insight and to bring out questions about effect relationships (Saunders, 2003), this research can be ranged as an exploratory research as it involves all of the three purposes discussed above to gain a deeper understanding and to answer the research questions.

3.2 Research ApproachBecause of the limitation of time and space as well as the occupation of the author is a university student, it is difficult to collect effective information just from primary questionnaire and interview. A s it involves the consumers of Kazakhstan and Britain, and consumers who are financially can afford the luxury goods, so the author decides to use the secondary data as the object of analysis and study. H owever, the way to go through the research with case study is qualitative, and the origins of the secondary data are quantitative3.3 Research StrategyThere is no absolutely right or wrong strategy, only more suitable strategy in consideration with the objective and approach of research.

T he author finds that the most suitable strategy is to conduct differently relevant case studies. S ince it is not limited in one method, thus the author can have the opportunities to use different methods that depend on the case circumstances and special situations. According to Eriksson and WiedersheimPaul (2001), the advantage to use a qualitative case study approach is that it accepts the fact that there are many different opinions of the study’s purpose.

3.4. Data and Sample Selections. This research will use secondary data in the past literature that is relevant to the author’s topic. T his data will reflect both the Kazakh and British consumers' decision makingbehaviour of the luxury brands. S ince the consumer behaviour keeps changing with the development of economic environment, so in order to make this research’s result to be more effective, the author will only utilize data collected from past ten years documentation, which specifically, the second data is valid from 2010;2016. T.

he process of using case studies to collect data is a very complex way, because that all these sources complement each other. A nd this way has its own advantages and disadvantages. The advantages with multiple case studies are that the depth and the broad of the information are not limited to the time and the space resources, and it is efficient and easy to get hold of (Denscombe, 2000). B.

ut the disadvantage of having case study analysis is that it’s difficult to coherent those different orientation studies to the objectives of this research. The author must be very careful to tell the data valid or not.

3.5. Data AnalysisThe research is based on the following strategies: • Based on the theoretical proposition • Thinking about rival explanations • Conducting a case description Under the guide of the three strategies, the author will be able to treat the evidence fairly, to use tools to make manipulations more effective and efficient and to produce analytic conclusions. S ince there is no similar cross-cultural study on luxury brand purchasing between Kazakh and British consumers, the author will analyze Kazakh and British consumers' data separately. A fter that, the data of these two countries will be compared for a cross-cultural research. T.

he analysing stage can be summarized as two steps: within-case and cross-case analysis. T hese two process stages will involve validity and reliability method. V alidity is about to explain the ability to measure what actually plan to be measured. R eliability means that other researchers who use the same approach should be able to come up with the similar results (Erikson & Wiedersheim-Paul, 2001).The data goes to test the hypotheses based on the literature.

T hese can be state as the following: Table 1 Evidence in Extant Research in Kazakh Consumer Shopping BehaviourAuthorsMain findingsYoung, R., People in their 20s and 30s, they have no idea about Soviet times. T hey are more open to experiment and try new brands.

T hey are less brand-brainwashed; less attached to things and more mobile, compulsive, more global, Oleg NiThe average check buying clothes in Kazakhstan on average from $ 150 to $ 500 per person, and it is growing every year. T his is the main indicator of readiness to take on Kazakhstan market not only products for mass market, but luxury brandsProposition 1: Positioning for luxury brands will raise brand awareness or reputation. P roposition 2: The effect of the brand differentiation on consumer choice-making is culturally dependent. P.

roposition 3: Brand positioning will increase overall brand loyal attitude towards luxury brands, but the level of the loyalty is different, especially the British consumers, since they are more brands loyal. Chapter 4. Data Presentation and Analysis4.1 Decision Making of the Kazakh ConsumersTo date, 95% of the Kazakhstani market of imported clothing and takes only 5% is domestically produced clothing. I n the structure of imports is China 42%, 11% - Turkey, 7% - Italy, 5% - India, 35% - Russia. Private consumption is growing rapidly asKazakhstan’s business environment improves, based on the country’s vast natural resources, its integration customs union with Russia and Belarus, rising investments in retail real estate development, and a steadily improving business environment. T he GRDI’s 10th-ranked country has a small population and wide income differentiation, which makes the luxury market rather strong while lower-income segments have limited potential.

T hose factors combined with slowing GDP growth and recent currency devaluation make the market challenging for international retailers. Modern grocers are spreading, especially in discount and cash-and-carry. T hough most consumers are price-conscious and prefer unpackaged food from traditional markets (80 percent share), Kazakhs are increasingly drawn to modern formats for their customer service and easy store access. L ocal brand Magnum Cash & Carry is the leader in the food market, and German retailer Metro Group plans to expand its presence in cash and carry. Most shopping malls and international brands are located in Astana and Almaty, with little presence elsewhere.

K azakh consumers prefer one-stop outlets with access to quality inter-national brands. S everal global players entered in 2012−2013, and some, such as Christian Dior, Pronovias, Giorgio Armani, and Kiton, continued expanding in 2013.

R ussian chains such as Centrobuv are considering entry as well. Ecommerce has seen some similar growth from Russian brands, with apparel brand Lamoda entering in 2012, and online fashion seller Wildberries and online hypermarket Ozon.ru expanding to Kazakhstan in 2013. Our market is now one of the most attractive to European players, as it is actively growing, while the European clothing market has a negative dynamics of development, at best stagnating. Fashion-industry is developing quite rapidly. I f earlier in the season 2−4 was created collection, now it is 6−8 collections for six months, and tomorrow’s trend is to create collections of 10−12 for 2 months. Many brands that enters Kazakhstan market decide on whether to open the first boutique in Almaty or Astana.

W hich city is more significant and valuable in terms of luxury business? T he answer is simple — at the moment both of the markets are very important for us, they have its own way of development, they both are quite independent and have their consumer power. A stana is fast developing market with demand more oriented on men products and gift items. I t is showing high growth records for the past 10 years.

A lmaty is more conservative, more saturated market where people have a bigger selection of luxury brands. According to Michael Koval, PR-director Lookagency agencies engaged in advertising fashion brands, as a whole, the sector is well developed in the country. & quot;The market is now playing already own luxury-brands, rather than intermediaries. T his is good because there is a clear pricing policy, which does not change — he said. — I.

n other words, if before you bought through intermediaries with 300% wrap, now you take the goods at the same price as all over the world". In such a pricing policy only takes into account taxes. A t the same time, as noted by the source, the period of sales, many upper-brands offer affordable prices comparable to the mass market brands. Meanwhile, social networking users are actively discussing the care of the world’s luxury brands from the domestic market. D ue to the inability of the purchasing of Kazakhstani business representatives for luxury brands proved to be unprofitable.

H owever, such rumors dispelled the managing director of one of the largest shopping and entertainment center of Almaty Agnieszka Nowak." It contains information that does not meet current realities and facts. A nd the facts are — luxury and premium brands not only can survive in Kazakhstan, they demonstrate high performance and succeed in our market «, — commented the source/According to RK Committee for Statistics, the average wage in Kazakhstan amounted to 121 763 tenge in July 2014. A.

pproximately the same average cost of one dresses in the stores of luxury brands. A 52,000 square meter shopping mall to open in Almaty, Kazakhstan’s largest city, will feature Louis Vuitton, Stella McCartney & Saks Fifth Avenue. The central Asian country of Kazakhstan is one of many growing former Soviet republics, the regional center for financial services, and in terms of area, the ninth largest country in the world. With an economy owing most of its wealth to oil and industry, times have been easier than in many traditional luxury markets, but growth has still suffered during the recent global economic crisis. Despite its vast size the country has a relatively small population of 16,000,000, but hopes are strong that a luxury goods sector will be able to grow healthy roots.

4.2 Decision making of UK ConsumersAnd from Table 5, we can see that British consumers are less conscious of the money they spend during shopping and the impulsive shopping just frequently happens (F=0.678).Table 5A Ten-Factor Model of UK Consumer Decision-Making Style (Mitchell & Bates, 1998) ItemFactorloadingFactor 1 Recreational, Hedonism. Shoping is very enjoyable to me.

0.881Shoping is not a pleasant activity to me.-0.879I enjoy shoping, just for fun.

0.842It, sfim to buy something new and exciting.

0.460Factor 2 Perfectionism, High-Quality Consciousness. In genneral, I usually try to buy the best overall quality.

0.752I make aspecial effort to choose the very best quality products.

0.701Getting good quality is very important to me. I have very high0.610standards and expectations for products I buy.

0.588I usually buy the more expensive brands.

0.431Factor 3 Novelty-Fashion Consciousness. I keep my wardrobe up to date with the changing fashions.

0.836I usually have at least one outfit of the newest style.

0.816Fashionable, attractive styling is very important to me.

0.655Factor 4 Confused by OverchoiceThere ar so many brands to choose from that I often feel confused.

0.815I get confused by all the information on different products.

0.749The more I learn about products, the harder it seems to choose the best.

0.574Sometimes it, s hard to decide in which stores to shop.

0.593Factor 5 Time-Energy ConservingI spending little time deciding on the products and brands I buy.

0.802I really don, t give my purchases much thought or case.

0.625I normally shop quickly, buying the fist product I find that seems Good enough.

0.596Shoping in different stores is a waste of time.

0.413I should spend more time deciding on the products I buy.

0.382Factor 6 Brnd ConsciousnessThe higher the price of the product the better its quality.

0.670The more advertised brands are usually good choices.

0.662I prefer buying the best-selling brands.

0.630Good quality department and speciality stores offer the best products.

0.458I usually buy the well-known brands. Factor 7 Price-Value ConsciousnessI look very carefully to find the best value for money.

0.674I buy as much as possible at sale price.

0.581I usually buy the lower-price products.

0.564I carefully watch how much I spend.

0.558Despite a common trend of conscious consumption and lower than average consumer confidence index in 2014, luxury market is on the rise in Britain, showing 4% growth in 2015 (versus 7% globally). The figure comes from a recent study by LuxHub, Havas Media Group’s newly launched luxury consulting boutique, who surveyed 928 respondents representing 10% of the upper middle class from 10 countries: the USA, the UK, China, Russia, France, Italy, Germany, Spain, Saudi Arabia and the UAE. The survey looks at the current consumer trends in the global luxury market, specifically in the UK, and analyses 40 of the top «power» global brands in this category. The major findings are, as follows:

1. 66% of UK luxury shoppers still prefer «power» brands to «niche» ones. This rate differs by country, with the lowest 43% in Spain and the highest 83% in China. When asked to cite some luxury brands spontaneously, the UK respondents named Rolex (19%), Chanel (14%), and Cartier (13%).

2. 78% of UK respondents define luxury in terms of quality and craftsmanship, while only 44%—in terms of personal reward, and 20%—as a status thing. Interestingly, the average percent of consumers considering quality as the main attribute of luxury goods, is lower—63%.

3. The average spend on personal luxury in the UK was £28,243 which accounted for 15% of household income. This was the second highest spend across six categories of goods—clothing & accessories, travel, jewellery, home furnishings, cars and art—after Russia (£36,078 per person). Interestingly, 89% of that average budget was spent on clothing and accessories.

4. As demand for luxury goods remains high, the market in the UK is expected to grow by 4% in 2015. Over half of respondents intends to spend on luxury the same amount, 27% expect to spend 30% more than last year, 17% plan to spend an average of 37% less.

5. 67% of UK respondents do online luxury shopping from desktop/laptop devices. Only 30% prefer to shop at physical stores, while 39% make purchases mainly online, and 32% — both online and offline. As for the age groups, 56% of Millenials prefer to shop for luxury online. 48% of UK respondents feel that luxury brands should engage with social media. However, among Millennials, 72% hold this belief.

6. Discounting trend is the lowest in the UK of all surveyed markets. While just 33% of US luxury shoppers buy goods and full price and prefer discounts, the UK has the highest percentage of full-price luxury purchases — 55%.With time, a consumer’s behavior and attitude toward luxury evolves. I n response, brands must adapt their strategies to cater to the changing wants of its core consumer group. Deloitte found that there are four primary solution points brands can use to meet the changing consumer sentiment in the UK. B y relying on decision drivers, channels, digital and social and gifting, luxury brands will be better able to service the wealthy individuals of this specific market. In the UK, impulse purchases remain a dominant driver of luxury goods, but additional drivers such as trend, routine and change in circumstance, and even the offer at hand can drive a sale.

A n understanding of these drivers can lead brands to a greater knowledge of their consumers' habits and individual drivers to give insights to what, when and how a client wishes to experience the brand at hand. By respondents, Deloitte found that the UK luxury consumer has a strong impulsive purchasing driver. T his is more pronounced among female and older consumers, while millennials are driven by trends and less defined by routine.UK consumers are less likely than their European counterparts to be driven by a brand’s new collection. A.

lso, when discovering a new brand in non-digital channels, the UK consumer is much more enamored with department stores than monobrand boutiques. Awareness channels are also shifting in the UK with digital touchpoints rising to offer consumers an «art without a frame» concept. Traditionally the luxury «frame» was represented by flagship boutiques where consumers could go explore the brand’s offerings through their senses, but now digital offers an alternative way to display its products.

4.3 Comparing the Kazakh and British Consumers Choice-Making BehavioursThis research concerns that luxury brands in Kazakhstan will be as successful as in western countries. T he author thinks luxury brand differentiation in Kazakhstan is in its infancy level, at least consumer do not perceive the brand’s unique personalities clearly. I t is no doubt that there is some kind of disparity between the effect of luxury brands choice difference between the Chinese and British consumers. Table 2 illustrates a clear comparison of the various effects on consumer decision difference on Kazakh and British consumers. F.

rom Table 2, it is clear to see the similarity and differences of Kazakh and British consumers' attitude towards luxury brands positioning and differentiation. I n the cluster «novelty and fashion conscious variables», British and Kazakh consumers behave differently. K azakh consumers pursue variety, while British consumers do not, which means British consumers are clear what kind of brand suits themselves rather than keep changing brands. W hile facing different brand choices, consumers from two countries both get confused, however, the British consumers are able to learn about brand position and differentiation knowledge quickly compared to Kazakh consumers.

W hen consumers find the brands they like, both British and Kazakh consumers would keep their loyalty with the brands. H owever, when British consumers choose brands, they will take brands level, social status, and personal taste into considerations. O n the other hand, the factors—- luxury brand products price, quality and keep in fashion are still main factors that affect Kazakh consumers' luxury brands consumption. Table 2Comparison the CSI Item BetweenKazakh and British ConsumersComparisons Kazakh and UK consumers decision-making styles on luxury brandsLuxury brand positicning stimulationCSI variable measuremenBrand conscious Decisicn-Making Style (3 items) Importance in Kazakh consumer choice decisionImportance in UK consumer choice decisionThe well-known national brands of goods/services are best for meI prefer buying the bestselling brands of goods/servicesThe most advertised brands of goods/services are usually very good choicesNovelty and fashion conscious (2 items) Fashionable, attractive styling is very important to meTo get variety, I shop different stores and choose different brandsThere are so many brands to choose from that I often feel confusedSometimes it’s hard to choose which stores to shop. The more I leam about products, the harder it seems to choose the bestAll the information I get on diffeerent products confuses me. I have favourite brands I buy over and overOnce I find a product or brand I like, I stick with itI regularly change the brands of goods/services I buyIn conclusion, I would like to note that Nada stage is quite difficult to compare Kazakhstan and the UK markets.

T his trend develops not so long ago in fact Kazakhstan. H owever, if we take into account the level of interest of Kazakhstani citizens to buy luxury brands in the near future we can assume that Kazakhstan will reach a new level of cooperation in the branded goods manufacturers. Conclusions and RecommendationsPositioning, differentiation and the construction for the luxury brand personality are becoming more and more important to luxury companies as they eager to reach out to customers. A s competition among luxury brands becomes harder for majority companies, it is becoming more and more important to equip with the «little extra», the special characteristic that makes you stand out from your competitors. T.

his research definitely has limitations. M ost crucially, even though the data of the cases might be an accurate reflection of Kazakh and British consumers in metropolitan cities and districts, it is not the representative of the whole populations, because of the factor of the region differences, thus the findings may not be applied to all Kazakh and British consumers. S econdly, due to the data collection and analysis method the author uses are secondary based, information able that is provided to describe some individuals' choice of luxury brand by personal reasons is limited: lack of time, lack of space access, or lack of relevant basic understanding about other similar luxury brands. N evertheless, despite those limitations above, this enquiry into Kazakh and British consumers' choice making towards luxury brands has generated new insights focusing on five main areas: It tests luxury brand purchase variables in Kazakh context and British context by integrating models.

— I t reconfirms the significance of relevant luxury brands positioning components influence. — I t supports perception as an antecedent towards choice-making intention in certain level. — I.

t proposes a revision of symbolic consumption in a Kazakhstan context. — I t examines the role of differentiation as a motivation in luxury brand consumption both in Kazakh and UK luxury markets. M arketers who are working in British luxury brands markets need to take consideration with the carefully targeted marketing strategies. S o they are able to attract the four kinds of UK consumers: Cautious Brand Loyalty, Trend Setters, Shopping Avoiders, and Recreational Quality Seekers. A.

t the pinnacle of Kazakhstan’s consumer market, the number of high-net-worth individuals (HNWIs) is forecast to increase by 81 percent in the coming decade, according to The 2013 Wealth Report by Knight Frank Research. T he number of people with (reported) assets of over $ 30 million will reach 244 by 2022. F or comparison, this means upstart Kazakhstan will soon have more than one-third as many uber-wealthy citizens as Austria. M eanwhile, Euromonitor estimates that over the past five years, the number of affluent households in Kazakhstan (those with annual disposable incomes of over $ 75,000) has already more than doubled from 55,900 in 2007 to 116,800 in 2012. In addition, more thoughtful researches are still required to find out how consuming behaviour differs, which would give more information on the topic. I.

n conclusion, the impact of luxury brand positioning and differentiation on consumers can be measured under framework and we are able to compare consumer behaviours between two different countries to find out the similarities and differences, which can give a general idea to the luxury brand managers for the strategies of multinational luxury brand management and developmentReferences or BibliographyAdjei, M., Noble, C. & amp; Noble, S., 2012. E.

nhancing Relationships With Customers Through Online Brand Communities. MIT S loan Management Review, 13 June. Chatterjee, S., Singh, N. P., G oyal, D. P. &.

amp; Gupta, N., 2014. M anaging in Recovering Markets. 2nd ed. L ondon: Springer. Chernev, A., 2015. S trategic Brand Management.

I ndianapolis, IN: Cerebellum Press. Chodha, D., 2016. F ashion forward: can Kazakhstan become a designer capital of the future?. Online] Available at:

http://calvertjournal.com/articles/show/5176/kazakhstan-fashion-designers[Accessed 15 August 2016]. C rewe, L., 2015. P lacing fashion: Art, space, display and the building of luxury fashion markets through retail design. P.

rogress in Human Geography, 77(2).Diab, A., 2015. S elf-Organized Mobile Communication Technologies and Techniques for Network. N ew York: IGI. Franzen, G. & amp; Moriarty, S., 2015. T.

he Science and Art of Branding. 3rd ed. L ondon: Routledge. Gardetti, M.

A. & amp; Muthu, S. S., 2014. H andbook of Sustainable Luxury Textiles and Fashion, Volume 2. 2nd ed. L.

ondon: Springer. Kapferer, J.-N. & Bastien, V., 2012. T he Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands. 2nd ed. L ondon: Kogan Page. Kent, T.

& amp; Brown, R., 2015. F lagship Marketing: Concepts and Places. L ondon: Routledge. Nobbs, K., Moore, C.

& amp; Sheridan, M., 2012. T he flagship format within the luxury fashion market. I nternational Journal of Retail & Distribution Management, 40(12), pp.

920 — 934. Okonkwo, U., 2013. L uxury Fashion Branding: Trends, Tactics, Techniques. L ondon: Springer. Shaw, D., Carrington, M. & amp; Chatzidakis, A., 2016. E.

thics and Morality in Consumption: Interdisciplinary Perspectives. L ondon: Routledge. So, J. T., P arson, A. G. & amp; Yap, S.-F., 2015.

C orporate Branding, Emotional Attachment and Brand Loyalty: The Case of Luxury Fashion Branding. I n: New Perspectives in Luxury Branding. L.

ondon: Emerald Publishing Group, pp. 93−131.Som, A. & amp; Blanckaert, C., 2013. T he Road To Luxury: The Evolution, Markets and Strategies of Luxury Brand. H oboken, NJ: John Wiley and Sons. Strähle, J., 2015.

E motionalizing Fashion Retail. B erlin: Reutlingen University Press. Young, R., 2013. K.

azakhstan, More than Just a Klondike. [Online] Available at:

https://www.businessoffashion.com/articles/market-gps/kazakhstan-more-than-just-a-klondikeOleg Ni Could be Kazakhstan market to the active expansion of luxury brands?