Customer communications strategy for Russia’s car market entry
Globalization of markets raises the importance of intercultural analysis to understand the dominant frames of customers’ behavior around the globe. There are two opposite approaches to the issue: some scholars are devoted to standardization and adaptation of the marketing communications strategy, others claim that cultural differences have major implications for the localisation strategy.
The present work draws upon the latter premise and lays out the argument that contrasting orientation of the US and Russia along most value dimensions is reflected in the behavior of car customers and thus mandates that a localization strategy be chosen for entering the Russian market by a US car maker.
It leads to different perceptions of automobiles or their marques, which are important in purchase decision making. To prove this hypothesis, there was designed a case of entry by a foreign car maker to the Russian market. It was considered topical to analyze prospects for Tesla Motors entry to the Russian B2C market and measure possibility of building a mutually beneficial relationship between the car producer and its customers. The focus of research makes it relevant to accomplish an intercultural analysis of Russia and the USA (as a home country producer of Tesla cars).
The research is based on Hofstede's dimensional model of national culture which provides six dimensions: Power Distance, Individualism/ Collectivism, Masculinity/Femininity, Uncertainty Avoidance, Long-/Short-Term Orientation, and Indulgence. This framework is adopted in this research in order to operationalise the concept of culture. Cultural values were used to identify Russia and the US as two countries with opposite scores along these dimensions. The classification of each country along each cultural dimension was hypothesized to have consequences in terms of consumer behavior.
Supervisor – Lilia Bondareva, Associate Professor, PhD