Coping with Ambiguity in Intercultural Communication
This case study explores the importance of coping with ambiguity in communication, particularly due to language differences, for effective intercultural collaboration. It delves into the challenges faced by EducationCo in intercultural communication with international partners and provides insights on improving intercultural collaboration through coping strategies. The narrative follows David's experience and the extra efforts managers need to resolve communication issues arising from language barriers.
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Parc Mediterrani de la Tecnologia Edifici ESAB Carrer Esteve Terradas, 8 08860 Castelldefels, Barcelona Impact of the economic and political changes on consumers wine preferences in Catalonia (Spain): a generalized multinomial logit approach Cristina ESCOBAR, Zein KALLAS & Jos Mar a GIL Centre for Agro-food Economy and Development Castelldefels, Barcelona (SPAIN). Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
Table of contents 1. INTRODUCTION AND OBJECTIVES 1.1. Catalonia as a wine region 1.2. Socio-economic context in Catalonia 2. CONSUMERS PREFERENCES TOWARDS WINE 3. METHODOLOGY 4. EMPIRICAL APPLICATION 4.1. Sample 4.2. Attributes and levels 5. RESULTS AND DISCUSSION 6. CONCLUSIONS Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
1. INTRODUCTION: Catalonia as a wine region Wine Wine production production in in Spain Spain > > 42 42 millions millions Hectoliters Hectoliters Catalonia Catalonia 300.000 3,7 millions Hectoliters 3,7 millions Hectoliters ITALY; 44.900 250.000 SPAIN; 42.700 200.000 Catalonia FRANCE; 42.016 1000 hl 150.000 Rest of Spain REST OF THE WORLD; 148.984 100.000 50.000 Source: OIV & DAAM, 2014 0 2013 Source: OIV, 2014 Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
1. INTRODUCTION: Catalonia as a wine region WINE SECTOR KEY FACTORS (1): CONSUMPTION DECREASE 12 10 LITRES/CAPITA 8 6 4 2 0 2005 2006 2007 2.008 2.009 2.010 2.011 2.012 2.013 TOTAL VINS (vins+escumosos) VI TRANQUIL (DO) V.TAULA ESCUMOSOS ALTRES VINS Source: MAGRAMA 2014 Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
1. INTRODUCTION: Catalonia as a wine region WINE SECTOR KEY FACTORS (2): LOW MARKET SHARE OF CATALAN DO WINES IN CATALONIA % in volume 2011 2012 2013 Catalan quality wines Market share (11 DO) 28,5% 28,9% 29,6% Source: Nielsen panel, 2014 Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
1. INTRODUCTION: Catalonia as a wine region WINE SECTOR KEY FACTORS (3): EXPORTATION INCREASE 700 605 601 597 600 543 542 Milions d'euros 527 481 500 450 441 400 300 200 100 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: DATACOMEX 2014 Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
1. INTRODUCTION: Socio economic context in Catalonia Market INSTABILITY (since 2007) and CRISIS UNEMPLOYMENT RATE IN SPAIN (Ortega & Pe alosa, 2012) DEVASTATING IMPACT on the EMPLOYMENT IN SPAIN: 6.2 million people unemployed in 2011 (INE, 2014) SHARP DROP in consumption and in fixed capital investment (Carballo-Cruz, 2011) Also consequences for the AGRO FOOD MARKET (Nielsen market trends) Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
1. INTRODUCTION: Socio economic context in Catalonia POLITICAL CHANGES have also occurred in Catalonia Members of Parliament strongly in favor of an INDEPENDENT CATALONIA increased 7,4% (elections of 2012) Massive POPULAR MOBILIZATIONS in Catalonia after the long awaited decision of the Constitutional Court about the new Statute of Autonomy Plus, the MAIN NATIONALIST PARTY in Catalonia (CIU), has SHIFTED from nationalism to Catalan independentism (Guibernau, M., 2013, amongst others) Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
1. INTRODUCTION Thus, the OBJECTIVE of this paper is: To determine CONSUMERS RED WINE PREFERENCES for a special occasion and, More specifically, their CHANGES regarding the newer economic and political scenario We applied 2 DISCRETE CHOICE EXPERIMENTS (DCE), BEFORE and DURING the economic crisis (1TBefore vs.3TDuring) Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
2. CONSUMERS- PREFERENCES TOWARDS WINE Wine is a DIFFICULT AND CONFUSING product for consumers to choose IMMENSE NUMBER OF CUES ROO COO White Red DO BRAND PACKAGING Ros PRICE Liquored TYPE AWARDS TASTE Sparkling VINTAGE GRAPES ALCOHOL CONTENT Others... Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
2. CONSUMERS- PREFERENCES TOWARDS WINE Are capable of acting as a SURROGATE for a number BRAND of attributes (including quality) and might help address RISK while providing product cues Consumers may use a SMALL REPERTOIRE, which may well be a collection of true brands and GENERIC TYPES ROO GRAPE GENERIC TYPES DO VARIETY Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
2. CONSUMERS- PREFERENCES TOWARDS WINE Plays a KEY ROLE in the consumers decision COUNTRY OF ORIGIN making process, specially in wine producing countries When consumers do not have information about the PRICE product, it generally performs as a PROXY to infer the quality of the product when: The product cannot be evaluated The RISK of making a wrong choice is high Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
2. CONSUMERS- PREFERENCES TOWARDS WINE RISK REDUCTION STRATEGIES Compilation of the main RRS in wine choice (Rawbone-Viljoen, 2012) INFORMATION SEARCH [assistants, waiters, wine editorials, tasting notes, packaging, word-of-mouth, family and friends and opinion leaders] SEEKING REASSURANCE [mainly through tastings, information seeking behaviour and prior experience] BRAND loyalty and Well-known brands PRICE STORE IMAGE Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
3. METHODOLOGY: The DCE: Econometric model ( jn jn j U V X S = + , ) n jn The basic model is THE MULTINOMIAL LOGIT MODEL (MNL). = + = = = 1, , N 1, , J 1, , U x n j t T njt njt njt n It imposes homogeneity in preferences for observed attribute The IIA property seldom hold. Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
3. METHODOLOGY: The DCE: Econometric model The Mixed Logit Model (MIXL) = + = , N j = , J t = 1, 1, 1, , U x n T njt n njt njt n Extend the MNL introducing for unobserved heterogeneity by allowing random coefficients on attributes . Recent studies argued that much of the PREFERENCE HETEROGENEITY captured by random parameters in MIXL can be better captured by the scale term; and thus known as SCALE HETEROGENEITY . The MIXL turns to be likely a POOR APPROXIMATION to stated data if scale heterogeneity is not accounted for Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
3. METHODOLOGY: The DCE: Econometric model The Generalized Multinomial Logit Model (GMNL) [ njt n n U = + + (1 ) + X ] n n njt njt Known also as Generalized Mixed Logit Model (G-MXL). nis a scaling factor that proportionately scales the up or down for each individual n. is a mixing parameter, and its value determines the level of mixing or interaction between the scale heterogeneity coefficient and the parameter heterogeneity coefficient . Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
4. EMPIRICAL APPLICATION: Sample 2 IDENTICAL SURVEYS performed in 2 DIFFERENT TIMES: BEFORE & DURING the ECONOMIC CRISIS. Before During Consumers over 18 years who purchase regularly food and are residents in the metropolitan area of Barcelona. Population Stratified sample by age and postal districts using proportional affixation to the number of persons by stratum. Metropolitan area of Barcelona 400 Sample Design Field Sample Size Confidence interval Confidence level 401 4.9 4,9% 95.5% (k=2) 95.5% (k=2) Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy Control measure Pilot survey (25 questionnaires)
4. EMPIRICAL APPLICATION: Attributes and levels To reduce wine choice complexity we delimited our wine selection by focusing on a RED WINE purchased for a SPECIAL OCCASION such as Christmas. Based on the literature and discussion groups we identified the following attributes and levels: ORIGIN: Catalonia (regional), (international) WINE REFERENCES: Own Experience, Recommendation, Prestige GRAPE VARIETY: Cabernet Sauvignon, Grenache, Merlot PRICE: 6, 10, 14 Spain (national), Imported Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
4. EMPIRICAL APPLICATION: Attributes and levels We followed the DUAL RESPONSE CHOICE EXPERIMENT design. From the FULL FACTORIAL DESIGN using the total number of attributes and levels which led to a total of 81 hypothetical products. In a choice set of 2 alternatives we have 6,561 possible combinations. The orthogonal fractional factorial design with only 9 CHOICE SETS. Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
4. EMPIRICAL APPLICATION Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
4. EMPIRICAL APPLICATION: Attributes and levels All attributes, including the price, were coded with EFFECT CODING as discrete variables To avoid the base levels being CONFOUNDED WITH THE INTERCEPT Effects of all levels can be estimated All models were estimated by using 500 Halton draws. Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
Both models are statistically significant and exhibited a good fit with highly significant likelihood ratios. 5. RESULTS AND DISCUSSION Before During Random parameter estimates .12845 .63037*** .02310 -.07484 -.09077 .29827** .35270*** .17124 2.66169*** -3,964.89 3,444.13 (0.000) .4343290 1.277 Spanish Catalan Recommended Prestigious Grenache Cabernet sauvignon Price-10 Price-14 No choice Log-Likelihood (0) LL ratio test Pseudo R2 AIC/N Variance parameter tau in scale parameter ( ) Weighting parameter Gamma ( ) wines that have been PREVIOUSLY EXPERIENCED .42491*** 2.20855*** .19417 -.19178* -.10651 1.14638*** -.32333** -.99064*** -1.18832*** -3,955.00 936.57 (0.000) .1184036 1.971 Practically all SIGNIFICANT Consumers preferences are higher for the CATALAN ORIGIN of the .26744*** 0.00 product, for the grape variety CABERNET SAUVIGNON and, for .10053** .57052*** Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
5. RESULTS AND DISCUSSION Before During Random parameter estimates Some levels turn into NON- SIGNIFICANT .12845 .63037*** .02310 -.07484 -.09077 .29827** .35270*** .17124 2.66169*** -3,964.89 3,444.13 (0.000) .4343290 1.277 Spanish Catalan Recommended Prestigious Grenache Cabernet sauvignon Price-10 Price-14 No choice Log-Likelihood (0) LL ratio test Pseudo R2 AIC/N Variance parameter tau in scale parameter ( ) Weighting parameter Gamma ( ) .42491*** 2.20855*** .19417 -.19178* -.10651 1.14638*** -.32333** -.99064*** -1.18832*** -3,955.00 936.57 (0.000) .1184036 1.971 A greater utility for the No choice intercept In During consumers show a greater preference for not taking the product, indicating PERSISTENCE IN THE UNOBSERVED ATTRIBUTES .26744*** 0.00 .10053** .57052*** Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
5. RESULTS AND DISCUSSION Before During Random parameter estimates In During model it becomes NON-SIGNIFICANT: the VARIATION OF .12845 .63037*** .02310 -.07484 -.09077 .29827** .35270*** .17124 2.66169*** -3,964.89 3,444.13 (0.000) .4343290 1.277 Spanish Catalan Recommended Prestigious Grenache Cabernet sauvignon Price-10 Price-14 No choice Log-Likelihood (0) LL ratio test Pseudo R2 AIC/N Variance parameter tau in scale parameter ( ) Weighting parameter Gamma ( ) .42491*** 2.20855*** .19417 -.19178* -.10651 1.14638*** -.32333** -.99064*** -1.18832*** -3,955.00 936.57 (0.000) .1184036 1.971 THE DEGREE of RANDOMNESS in their final decision and hence their degree of UNCERTAINTY DECREASED significantly. Tau parameter (KEY PARAMETER) captures the SCALE HETEROGENEITY Common circumstances may have had a HOMOGENISING INFLUENCE .26744*** 0.00 .10053** .57052*** Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
5. RESULTS AND DISCUSSION Before During GAMMA in both models is SIGNIFICANTLY DIFFERENT from ZERO. Random parameter estimates TASTE heterogeneity is PARTIALLY CONDITIONED to SCALE .12845 .63037*** .02310 -.07484 -.09077 .29827** .35270*** .17124 2.66169*** -3,964.89 3,444.13 (0.000) .4343290 1.277 Spanish Catalan Recommended Prestigious Grenache Cabernet sauvignon Price-10 Price-14 No choice Log-Likelihood (0) LL ratio test Pseudo R2 AIC/N Variance parameter tau in scale parameter ( ) Weighting parameter Gamma ( ) .42491*** 2.20855*** .19417 -.19178* -.10651 1.14638*** -.32333** -.99064*** -1.18832*** -3,955.00 936.57 (0.000) .1184036 1.971 heterogeneity. In During model, however, they become more INDEPENDENT (Gamma increases from 0.10 to 0.57) .26744*** 0.00 .10053** .57052*** Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
5. RESULTS AND DISCUSSION Before .04461 1.71303*** .65423*** .50088*** 1.00272*** .90646*** .73129*** .53750* 1.30448*** 3.08245*** During .66391*** .41490 .27907 .32330* .57437** .42036 Spanish Catalan Recommended Prestigious Grenache Cabernet sauvignon Price-10 Price-14 No choice Standard deviations of parameter distributions Practically all SIGNIFICANT .75440* 1.83369*** Regarding the UNOBSERVED TASTE (PREFERENCE) HETEROGENEITY, it is captured by the standard deviation of the random parameters. Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
5. RESULTS AND DISCUSSION Before .04461 1.71303*** .65423*** .50088*** 1.00272*** .90646*** .73129*** .53750* 1.30448*** 3.08245*** During .66391*** .41490 .27907 .32330* .57437** .42036 Spanish Catalan Recommended Prestigious Grenache Cabernet sauvignon Price-10 Price-14 No choice Standard deviations of parameter distributions .75440* 1.83369*** Some levels turn into NON- SIGNIFICANT Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
5. RESULTS AND DISCUSSION In the During the crisis model, Spanish wine s show a NOT SIGNIFICANT UTILITY but its TASTE HETEROGENEITY TURNS SIGNIFICANT Catalan wines show again a SIGNIFICANTLY POSITIVE UTILITY and its TASTE HETEROGENEITY TURNS NOT SIGNIFICANT Furthermore, the SCALE HETEROGENEITY = ZERO CONSUMERS PREFERENCES TOWARDS CATALAN wines have become CLEAR Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
6. CONCLUSIONS Consumers preferences are higher for the CATALAN ORIGIN of the product, for the grape variety CABERNET SAUVIGNON and for wines that have been PREVIOUSLY EXPERIENCED The CATALAN ORIGIN of the wine shows a SIGNIFICANTLY POSITIVE UTILITY IN BOTH importance of the Catalonian identity in the consumer behaviour. However, During the crisis, this quality is HOMOGENEOUS ACROSS CONSUMERS (does heterogeneity). This finding is in ACCORDANCE ENVIRONMENT SURVEYS, which reveals the not show any unobservable with the POLITICAL Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
6. CONCLUSIONS SPANISH WINES shows a NON-SIGNIFICANT UTILITY During the crisis, this occurs in spite of gathering the highest market share in Catalonia, which suggests an influence of the political changes Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
6. CONCLUSIONS The GMNL model has shown to be appropriated to DECOUPLE both UNOBSERVED HETEROGENEITIES Has provided us with more information about the SOURCE OF CONSUMERS HETEROGENEITY In the During model: HETEROGENEITY indicate that the degree of uncertainty in the decision-making process has DECREASED SIGNIFICANTLY. This finding might show an IMPACT OF SOCIO ECONOMIC CHANGES in the environment of consumers decision-making towards wine. In this sense, external common circumstances may have had a HOMOGENIZING INFLUENCE. the results for the SCALE Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
Thank you for your attention Paper prepared for presentation at the EAAE-AAEA Joint Seminar Consumer Behavior in a Changing World: Food, Culture, Society . March 25 to 27, 2015. Naples, Italy
