With the evolution in business acumen between the two countries, there are still visible difference between them both in the customer service interaction and the retail front. This is mostly as a result of the difference in cultures between the two countries. The differences are as follows;
Customer service interaction
In the US, there is a lower power distance meaning that there’s little inequality in the way the people relate and the customer care representative treats the clients as equals. This is not very much the case in Europe where the customer is regarded with a lot more respect since they command a lot more authority from the customer service representative. This is because Europe has a higher power distance index meaning they give greater regard to hierarchy as compared to the U.S.
The U.S is the most individualistic country in the world. This means that loyalty is to the individual first before it is spread out to the community and the surrounding. This means that for the market in the U.S, the customer service representative is largely concerned with achieving the task assigned to him as opposed to creating a relationship with the client. In as much as Europe is also becoming an individualist state, there is greater need by the customer care representative to create a relationship with the client more as opposed to completing the task. The customer service representatives in Europe are more determined to create a harmonious relationship with their clientele while establishing trust with them.
There is a difference in the masculinity and femininity which are the extent to which the cultures are driven by motivations like competition and assertiveness as opposed to those cultures driven by cooperation and the consensus between people as well as the quality of life. The U.S has a higher masculine index compared to European countries. This means that in the U.S, the customers expect the customer service representative to bend over backwards in order to satisfy their demands. The customers there would prefer that their products be delivered before those of the other customers. In Europe, the customer service representatives focus more on the establishment of steady long term relationships that are pleasant and reliable. In this set up, the focus is more on providing equal services to all customers without favoring some over others.
The degree to which people in a various countries embrace the idea of situations that are either structured or unstructured differs. This is determined using the uncertainty avoidance index. The U.S has an uncertainty avoidance that is higher than that of Europe. This means that the Customer in the U.S do not appreciate uncertainty, they prefer to be in control, are risk-averse and usually require a lot of information on the product or service before purchasing it. Europe on the other hand has a lower uncertainty avoidance index compared to the U.S and the customers are more inclined to solutions that are practical as opposed to intellectual statements. They are more prone to taking risks and do not require a lot of information to make decisions regarding products and services offered to them. The American clients are allowed to show emotions as opposed to their counterparts in the weak uncertainty states like Europe who are not allowed to show emotion.
Both the U.S and Europe have almost the same ratio of Long Term orientation. The U.S is however more inclined towards creating a lasting relationship with its customer. The clients are more persistent, their ordering relationship is by the status and they observe this order to the latter. The customers in the countries with Short Term orientation on the other hand are more inclined to their own stability and steadiness and respect as well as tradition. They also reciprocate for the services offered with gifts and/or favors.
Retail Differences
There is difference in retail industry between the U.S and Europe. It is considered less expensive to hold an inventory in the U.S as compared to Europe. This is because the space where the retail businesses and warehouses are put up is cheaper as compared to the coat of the same space in Europe. This means that that it’s less expensive to put up a retail store in the U.S as it is in Europe. The cost of transportation is also lower in the United Sates. The discipline of forecasting is considered more developed in the U.S.
In the U.S, the demand forecasting lives around replenishment as opposed to merchandise planning. The demand forecasting is also used in the supply chain capability as opposed to the enterprise capability. Different forecasting models are rarely used in the U.S. In Europe, demand forecasting is approached as an enterprise capability that is often translated through different functions. The aim is usually to reconcile assumptions, if not to get outright results. The European retailers are more likely to take advantage of the forecasting information that is generated in the social channels as compared to the U.S.
There is varying price transparency between the U.S and Europe. In the U.S there has been the adaption of the “Show Rooming” strategy in which the consumers can enter into a store, look at the items they intend to purchase and test them. The customers are also capable of comparing the prices offered there with those of others in an online store. This strategy is only beginning to be adapted in Europe. There is also the issue of little transparency in pricing between different retail stores although under the same company. This depends on the different zones in which those stores are found as well as the different zip code. This means that one can find several stores within a small radius that have priced the same item differently increasing competition. This is not the case in Europe where the prices are more regulated by the government.
There is difference in promotion of items between the two States. While there is the low priced Wal-Mart in the U.S and retail stores where customers are allowed to bargain and promotions can take place as often as the owners deems best, this would be taken negatively in Europe. The other aspect that is different in the retail market of the U.S and Europe is the inventory localization. Retail stores in the U.S are not localized enough, while those in Europe are too localized. This means that retail stores in the U.S do not quite provide the commodities that are central to that particular area. The European states are too localized that it is difficult to find products central to other areas in a retail store of another area.
Work Cited
Cassidy, Tony. "Culture's consequences (abridged edn)—International differences in work-
related values." Personality and Individual Differences 6.2 (1985): 288-289. Print.
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"RSR Research » The Candid Voice in Retail Technology Research » US vs. EU Round 3: Inventory Localization." RSR Research. N.p., n.d. Web. 7 June 2014. <http://www.rsrresearch.com/2012/04/24/us-vs-eu-round-3-inventory-localization>.
