Factors affecting Consumer Acceptance - 2750 Words

Factors affecting Consumer Acceptance of a product (Dissertation Review Sample) Content: Literature ReviewIntroductionIn most recent, the trend of benefit on new products has grown tremendously instead of the idea of greater product quantities. This growing trend is because of the increasing demand on fresh and more convenient products (Olajide, 2006). The need for companies dealing in Scandinavian products to be innovative as well as developing fresh processing technologies and devising new products with the verge of thriving and coping with the dynamic consumer behavior that is characterized with inconsistency and surprising has grown. Many observations have been made regarding products departure patterns on what people consume, where to consume, with whom to consume, and even how to judge appropriateness or acceptability of given product items. These dynamics are mostly caused by basic shifts in gender roles, changes related to the profusion of comparatively cheap products in supply side processes, and worldwide rise in net income. These changes have e qually been connected to business globalization where local businesses have foreign products that are reasonably priced (Forlani, 2003).Some of the change patterns observed includes having snacks in preference to a main meal or the indiscretion where family go halves a meal together; the tendency of an individual to get served with variety of meals because of tastes and preference among family members and individualism. Weight control and the fear of food safety among consumers has been another key reason for diet change. This has resulted to eroding of taken-for-granted for food products and tradition that has led to high demand for natural and new food products.Despite the need of developing new products to meet consumerà ¢Ã¢â€š ¬s varying tastes, only a handful has been thriving. The reason behind these failure include inability to formulate products properly, limitations in developing products as per the marketà ¢Ã¢â€š ¬s willingness to accept and test improved or new products , the ability to suit the product into market being introduced to, and lack of being enough market-oriented, that is, ignoring to recognize customer requirements in the event of developing the product.This section will review factors influencing consumer acceptance of a Scandinavian product in UAE international market on: consumer and product characterizes, the uniqueness of UAE market, and nutrilett.Literature search StrategyThe literature used only two sources of information: search relevant websites and a systematic library database searches. It was important to define study related search terms.Definition of search termsLiterature was sought that focused on factors influencing consumer acceptance of a Scandinavian product in UAE international market.Searches for literature that mainly addresses details on factors affecting consumer acceptance would elicit diversified results, much of it may not be relevant to the research objective. Therefore, the key words will include consume r acceptance, Scandinavian products, and international market.The research aims in describing factors affecting consumer acceptance. The decision was made that additional word to be used with the verge of creating greater flexibility. The process could be described as discussion on studies of product characteristics, consumer characteristics, and uniqueness of UAE market. Therefore, as well as consumer acceptance, Scandinavian products, and international market, key words included à ¢Ã¢â€š ¬Ã‹Å"product characteristicsà ¢Ã¢â€š ¬ à ¢Ã¢â€š ¬Ã‹Å"consumer characteristics,à ¢Ã¢â€š ¬ and à ¢Ã¢â€š ¬Ã‹Å"market uniqueness.à ¢Ã¢â€š ¬In relation to context, it is vital to refer to international market or UAE market in order to avoid literatures that focus on local markets.The above choices have led to a combination of search choices as shown in the table below.Search components A B C D Search terms CharacteristicsORFactorsORUniqueness à ¢Ã¢â€š ¬Ã‹Å"productsà ¢Ã¢â€š ¬ORà ¢Ã¢â€š ¬Ã‹Å"Con sumersà ¢Ã¢â€š ¬ORà ¢Ã¢â€š ¬Ã‹Å"marketsà ¢Ã¢â€š ¬ORà ¢Ã¢â€š ¬Ã‹Å"international marketà ¢Ã¢â€š ¬ à ¢Ã¢â€š ¬Ã‹Å"international marketà ¢Ã¢â€š ¬ORà ¢Ã¢â€š ¬Ã‹Å"UAE marketà ¢Ã¢â€š ¬ à ¢Ã¢â€š ¬Ã‹Å"Scandinavian productsà ¢Ã¢â€š ¬ Combinations of search terms A + B + C + DA + B + CA + B + DA + C + D Limiters * American English only * 20 years limit: 1993- 2013 Selection criteria * Focus on Factors influencing Consumer Acceptance of a Scandinavian product in UAE international market * In case the search acquiesces too many types of fallout, the focus will be on research carried out in Scandinavian areas and UAE. Selection of websites and DatabasesThe anticipation was applicable data to meager locally and internationally. The international database used include Scopus, ERIC, Ingenta connect, and Google scholar. Website used includes OECD, IMF, and CIA.Uniqueness and overview of UAE marketUAE as a brand country ranks the first in lodging and resorts option; number two as a rising start brand (as a country to venture new business, and shopping destination); number ten for fine dining (advanced technology, and standard of living is average), that is according to County Brand Index (Walker, 2010). UAE consists of seven emirates with a total population of around 7.8 million by 2011, where 80 percent are ÃÆ'migrÃÆ's in lieu of 185 countries. The country has had a stable political environment since 1971.The country is divided into three governments; the federal government (oversees the nation strategy), administrative government (governs each emirate), and municipalities whose function is rule an emirate. Among the seven Emirates, Dubai has been reported to be the most aggressive in development (CIA, 2012). However, the strategy is being replicated across the rest of the emirates through the federal government consolidation based in Abu Dhabi.In terms of national competitiveness, UAE ranks 31st out of 134 countries (Economic Forum Global Competitive, 2012). It i s 5th in the world in oil production, despite the fact that its oil dependency has reduced to 40 percent (UAE Interact, 2013). According to IMF, the country has the highest invested sovereign wealth funds. Focusing on its diversified investments in unique infrastructure projects and global strategies, the country has been found a hub not only for tourism, but also for trade and logistics (CIA, 2012).UAEà ¢Ã¢â€š ¬s economic freedom stands at 71.1 percent, making the countryà ¢Ã¢â€š ¬s economy as the 28th freest in the 2013 index. The score increased from 1.8 points as compared to 2012 meaning that the country is experiencing a substantial improvement in respect to freedom from corruption, government spending freedom, business freedom, and monetary freedom. The country is ranked third out of fifteen Middle East/North Africa countries, and its overall score is more than the regional and world average score.Regarding economic freedom, United Arab Emirates has been rated fifth as most free in the last recent years. Its economic competiveness is good in many areas. Commercial operations are in support of the open-market policies while barriers to trade are minimal. The country is experiencing a transparent and favorable business climate as well as high level of political stability hence creating a dynamic market for both foreign and local investors (OECD, 2010).The perceived corruption and restrictive investment regime levels in UAE has reduced, though respecting rule of law has been vulnerable following the politically influenced judicial system. Generally, the rule of law is well maintained despite the fact that ruling families have considerable influence on the countryà ¢Ã¢â€š ¬s judiciary system. Abu Dhabi Emirateà ¢Ã¢â€š ¬s land is all government owned. Foreigners are allowed to rent, buy, own, sell, and invest and mortgage property at special areas. The government has worked towards improving intellectual property rights as it present corruption at its mo dest levels (Wenzel, 2012).UAE can be characterized as unlimited government since it has no federal-level corporate tax and income tax. However, corporate tax rates apply in specific activities in some emirates. There is nothing like sales tax, and burden of overall tax is as low as 7.1 percent as per the total domestic income. Government spending is 22.3 percent of the domestic output. The government budget mostly depends on the large oil revenues as the revenues have helped in keeping the public debt under 20 percent of the GDP (OECD, 2010).UAE regulatory efficiency has greatly improved since they are no minimum capital requirement in establishing a business. In this country, you can establish a business less than 30 days upon your arrival (less than the world average of 30 days). Licensing costs and requirements have been streamlined to be effective and less costly. Non-salary cost of employing a person and employment regulations are comparatively flexible and moderate. Inflation ary pressure is kept under control hence monetary stability maintained (GorgenlaÃÅ'nder, 2010).The countryà ¢Ã¢â€š ¬s trade-weighted average tariff rate is 3.7 percent, however, some non-tariff barriers adjoin to cost of trade. Unfortunately, foreign investors do not receive equal treatment as local investors, and their investments are limited. In most cases, the UAE national must own at least 51 percent of the business. The comparative and modern financial sector gives a full range of services, though the state presence is substantial. Capital markets in UAE are open pulsating.Factors Affecting Consumer Acceptance of a ProductThe manner in which consumers accept and use of a product in new markets may be attributed to a number of factors. Despite the existence of low profile ...