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TANJUNGPINANG, KEPULAUAN RIAU] Date: 13 January 2016, At: 17:48

Journal of Education for Business

ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20

International Perspective: Business Education

and Its Influence on Attitudes to Business,

Consumerism, and Government in Saudi Arabia

Shahid N. Bhuian , Alhassan G. Abdul-Muhmin & David Kim

To cite this article: Shahid N. Bhuian , Alhassan G. Abdul-Muhmin & David Kim (2001) International Perspective: Business Education and Its Influence on Attitudes to Business, Consumerism, and Government in Saudi Arabia, Journal of Education for Business, 76:4, 226-230, DOI: 10.1080/08832320109601315

To link to this article: http://dx.doi.org/10.1080/08832320109601315

Published online: 31 Mar 2010.

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Business Education and Its

Influence on Attitudes to Business,

Consumerism, and Government in

Saudi Arabia

SHAHID N. BHUIAN

ALHASSAN G. ABDUL-MUHMIN

DAVID KIM

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Louisiana Tech University

King Fahd University of Petroleum

&

Minerals

University

of Central Arkansas

Ruston, Louisiana

everal national and cross-national

S

studies have examined consumer attitudes toward business, consumerism, and government (BCG). Scholars have argued that consumer attitude to BCG is an important indicator of how well business firms satisfy consumer needs. In general, if consumers are content with business practices, they will have favorable attitudes toward business activities and unfavorable attitudes about consumerism and government regulations. Although consumers generally have unfavorable attitudes toward business practices, they are uncertain whether consumerism and government regulation can control and mitigate business malpractice (Barksdale et al., 1982; For- nell, 1992; Ger & Belk, 1996; Varadara- jan, Bharadwaj, & Thirunarayana,

1994).

In this study, we examined the similarities and differences between the attitudes of business majors, both students and graduates, and the attitudes of nonbusiness majors, both students and graduates, toward BCG. Because business majors are taught the design and functioning of business systems, they are likely to have positive attitudes about business even if their buying and consumption experiences are unsatis- factory, according to the dissonance the-

226

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Journal of Education for Business

Saudi Arabia

Conway, Arkansas

ABSTRACT. This study examined the similarities and differences in the atti- tudes of business majors and nonbusi- ness majors toward business, con- sumerism, and government in Saudi Arabia. Drawing on the unique culture of Saudi Arabia and the potential influ- ence of business education, we devel- oped three hypotheses. An examination

of a sample of 134 respondents revealed that business majors were more favorably predisposed toward a number of business aspects and con- sumerism than were people who had not majaored in business. Also, both groups were equally and positively inclined toward consumer-related gov- ernment regulations and price controls.

ory (Mehta & Keng, 1984). However, literature suggests that changes in the business curriculum have produced mixed notions about business among recent business graduates. These changes reflect a curriculum that de- emphasizes the fundamental principles of capitalism, the merits of a market economy, and the negative effects of government intervention and control. A particular concern is that these changes produce students who fail to understand business ethics and business’s role in society. Ultimately, these individuals may view business malpractice with indifference (Jennings, 1999).

Given this backdrop, a study compar-

ing the attitudes of buiness and nonbusiness majors to business, consumerism, and government may help us understand better the influence of the business curriculum as well as the general state and future prospects of business. Our study was undertaken in Saudi Arabia, a developing country. The country’s his- tory of business education is recent and limited in reach. Also, as in most other developing countries, the market mech- anisms in Saudi Arabia frequently experience nonmarket, government interventions, which foster an unfavorable, less-competitive and unfavorable environment for conducting business. Final- ly, scholars and researchers have expressed the need to continue examin- ing business practice across cultures and globalization issues (McLean, 1997), which further attests to the need for this type of study.

Attitudes to Business

Previous research identifies four dimensions of consumer attitudes toward business: business philosophy, product quality, advertising, and marketing practices (Varadarajan, Bharad- waj, & Thirunarayana, 1994). We dis- cuss these in the context of Saudi Arabia.

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The current socioeconomic environment in Saudi Arabia exhibits both favorable and unfavorable conditions. Current- ly, the Saudi Arabian market is inundated with a large number of foreign brands in every conceivable product category. Fueled by oil wealth, Saudi Arabia has been transformed into a western-style consumption society. Recent generations have seen increasing improvement in the quality of products available (Bhuian,

1998).

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On the other hand, the informa-

tion supplied to consumers is limited in both quality and quantity. The current political system, monarchism, the Arabic tradition, and culture all impose restric- tions on all types of press, media, and publications. Consumer protection legis-

lation is limited (Metwally, 1993).

Unfair, unethical, and even unsafe and harmful business practices are not ade- quately addressed, and resulting consumer grievances that may be permeating

society go undetected.

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Attitudes to Consumerism

We looked at three dimensions of consumer attitudes to consumerism identi- fied in the literature: consumer responsibilities, consumer problems, and

consumelism itself (Darley

& Johnson,

1993). Consumerism is a movement directed at enhancing the power of consumers in relation to businesses. Cultur- ally, Saudi Arabians have a deep sense of fatalism and tend to attribute any misfor- tune to fate (Tuncalp, 1988). In this vein, they can attribute buying mistakes to fate and not hold businesses accountable.

Because their living standards have risen, Saudis may perceive consumer problems as less severe than in previous years. On the other hand, Saudi culture is one in which people do not voice their opinions. The monarchic political system prohibits all organized free expres- sions of grievances or opinions. Hence, Saudis may be either indifferent about consumerism or skeptical about it as a means of safeguarding their interests. It is also true that improved education, greater acceptance of Western consumer culture, and exposure to Western press and literature have made more Saudis aware of consumer issues and the negli- gent or deliberate violations of consumer rights by businesses.

Attitudes to Government

We studied two dimensions of consumer attitudes to government-attitudes to (a) government regulations and (b) price practices (Barksdale et al., 1982). Historically, the political system in Saudi Arabia has been mostly author- itarian. For centuries, tribal chiefs and monarchs were sovereign and played paternal roles. In turn, people developed a strong need to be ruled, told, guided, and provided for (Hofstede, 1984). This cultural aspect would suggest that Saud- is favor government interventions in business practices, including pricing.

Influence of Business Education on Attitudes

Through formal business education, business majors develop a set of attitudes that are uniquely pro-business regarding business practice, consumerism, and the role of government. In Saudi Arabia, we would expect those attitudes to differ significantly from those of the general population. Busi- ness majors are more likely to embrace the positive aspects of business and overlook its inadequacies. Because consumerism is in conflict with the essence of the capture theory or self-interest theory (Cox, 1998), business majors are more likely to view consumer-related issues unfavorably. They are also more likely to view government regulations as adding unnecessary costs to businesses while preventing them from operat- ing more effectively and efficiently (Cox, 1998; Varadarajan, Bharadwaj, &

Thirunarayana, 1994; Venkatesh &

Burger, 1984). Given this background, we developed the following hypotheses:

H,: In Saudi Arabia, business majors are more favorably predisposed to business philosophy, product quality, advertising, and marketing practices than are nonbusiness majors.

H,: In Saudi Arabia, business majors are more unfavorably predisposed to consumer responsibilities, consumer problems, and consumerism than are nonbusiness majors.

H,: In Saudi Arabia, business majors are more unfavorably predisposed to government regulations and price prac-

tices than are nonbusiness majors.

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Method

We collected data from a judgmental sample of faculty, staff, and students of several educational institutions located in the tri-cities of Dammam, Khobar, and Dhahran in the Eastern Province of Saudi Arabia. We hand delivered a total of 250 questionnaires to the respondents and made three callbacks to obtain 134 completed questionnaires. The questionnaire was in English because the selected educational institutions have strong English programs and their members are fluent in it. Previous studies in Saudi Arabia have also used questionnaires in English with similar respondent groups (Bhuian, 1998).

The questionnaire was adopted from the literature (Barksdale et al., 1982;

Thirunarayana, 1994). It included 36 statements for response on a Likert- type scale ranging from 1 (strongly dis-

agree) to

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5 (strongly agree). Multi-item

scales measured all the dimensions of business, consumerism, and government. We list the items and scales in the Appendix. The means of all the items corresponding to different scales are used in the analyses. For instance, the mean of the three items related to the philosophy of business is estimated for business and nonbusiness majors, and these two means are then compared. Varadarajan, Bharadwaj, &

Results

Results of the analyses are shown in Table 1. Both groups combined showed slightly favorable attitudes to the philosophy of business (p = 2.79), advertising

(p = 2.83), and marketing practices (p =

2.81) and a moderately positive view

about product quality (p = 3.14). As hypothesized in H,, business majors had a more favorable attitude to philosophy of business ( F = 12.971, p = O.OOO), advertising ( F = 4.983, p = 0.028), and

marketing practices

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( F = 5.442, p =

0.021) than did nonbusiness majors. Contrary to H,, nonbusiness majors’ attitudes to product quality were just as positive as those of business majors ( F =

0.007, p = 0.936).

With respect to H,, both groups had slightly unfavorable attitudes to all three dimensions of consumerism (means

MarcWApril2001 227

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TABLE 1. Results of Analyses

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Factors

Total Business Nonbusiness

N

M n

M n M F statistics

(p value) Business

Philosophy of business Quality of product Advertising Marketing practices Consumerism Consumer responsibilities Consumer problems Consumerism

Government regulations Pricing practices Government 118 117 115 118 119 115 119 118 121 2.79 3.14 2.83 2.81 2.90 2.99 2.70 3.89 3.64 87 85 85 87 88 83 89 87 89 2.92 3.14 2.91 2.90 2.83 3.06 2.77 3.93 3.69 31 32 30 31 31 32 30 31 32 2.42 3.15 2.61 2.54 3.12 2.82 2.49 3.78 3.48

12.971 (0.000) 0.007 (0.936) 4.983 (0.028) 5.442 (0.021) 9.613 (0.002) 2.918 (0.090) 3.178 (0.077) 0.743 (0.390) 1.459 (0.230)

ranged from 2.70 to 2.99). The response means for business majors ranged from 2.77 to 3.06, indicating that their attitudes toward consumerism were slightly less than favorable. The means for nonbusiness majors were similar, ranging

from 2.49 to 3.12. As hypothesized in H,,

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business majors had less favorable attitudes to consumer problems (F = 2.918,

p = 0.090) and consumerism itself ( F =

3.178, p = 0.077) than did nonbusiness majors. Contrary to H,, nonbusiness majors’ attitudes to consumer responsibilities were similar to those of business majors ( F = 0.720, p = 0.398).

H, was not supported. Both groups combined moderately favored govern-

ment regulations

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(p = 3.89) and price

controls

(p

= 3.64). The means of the two groups indicated no significant dif- ference regarding government regula- tions ( F = 0.743, p = 0.390) and price controls (F = 1.459, p = 0.230).

Discussion

In general, business majors in this study viewed business philosophy and various practices more positively than did nonbusiness majors, even if they believed that they had been treated unfairly by businesses. Both groups shared positive attitudes about product quality. This may reflect the experience of current generations of Saudis, who have seen a substantial increase in the quality of products supplied to their markets (Bhuian, 1998). Further, even though product information is restricted

in Saudi Arabia, businesses are allowed to promote their products. In their pro- motional activities, business repeatedly forcus on quality; in fact, this product information may be the most tangible aspect of business. The effect of information on consumer decisions is well documented (Widdows & Bei, 1999).

Business majors viewed consumer- related issues more negatively than did nonbusiness majors and were opposed to consumers’ gaining increased bar- gaining power over business. Both groups believed that consumers are ultimately responsible for product use and consumption behavior. Interestingly, business majors favored consumer- related government regulations and price controls, even though these activities could impose legal burdens and costs for business.

Conclusion and Recommendations

In this study, we examined business education and its influence on attitudes toward business, consumerism, and government in Saudi Arabia. We expected that business majors would be strongly pro-business and opposed to consumerism and government regulations of business activities. However, apparently cultural and business education changes have modified business majors’ opinions. For example, we found that business majors not only had a favorable attitude to business but also favored government regulations and price controls.

Our findings have implications for business educators and practitioners, in general, and in Saudi Arabia in particu- lar. As noted earlier, the transformation of the business curriculum has produced students who lack the fundamental knowledge about capitalism. Many feel ambivalent about business, and some see it as concerned solely with profits, to the detriment of consumers’ needs. Further, too many businesses lack an understand- ing of and empathy for consumer attitudes to business-related issues.

To overcome these limitations, business leaders should be more consumer oriented. The business curriculum must emphasize business ethics and the role of business in society. In particular, the importance of honesty and fairness and the merits of a market economy should be stressed (Jennings, 1999). For both multinational and local businesses oper- ating in Saudi Arabia, our findings suggest the need to stress customer orientation and business law (Yavas, 1999). Resources and efforts need to be directed toward gathering information about customer needs and concerns and responding to them accordingly.

The exploratory nature of the study and its use of a judgmental sample

weaken the generalizability of the findings. Nevertheless, the study can be used as a basis for formulating rigorous future studies on these issues.

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[image:4.612.54.564.70.250.2]

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Barksdale, H. C., Perreault, W. D., Jr., Amdt, J..

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Zif, J.

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APPENDIX. Questionnaire With the 36 Statements Measured

Philosophy of business

1. Most manufacturers are more interested in making profits than in serving consumers. (Reversed)

2. Most manufacturers operate on the philosophy that the consumer is right.

3. Despite what is frequently said, the guiding philosophy of most manufacturers is “The buyer is never right.” (Reversed)

4. Over the past several years the quality of most products has not improved. (Reversed) 5. In general, manufacturers make an effort to design products to fit the needs of consumers.

6. From the consumer’s point of view, style changes are not as important as improvements in product quality.

7. Manufacturers do not deliberately design products that will wear out as quickly as possible.

8. Most product advertising is believable.

9. Manufacturers’ advertisements usually present a true picture of the products advertised. Quality of product

Advertising

10. Manufacturers’ advertisements are reliable sources of information about the quality and performance of products. 1 1. In general, advertised products are more dependable than unadvertised ones.

12. The Saudi marketing system operates more efficiently than those of other countries.

13. The games and contests that manufacturers sponsor to encourage people to buy their products are usually dishonest. (Reversed)

14. In general, the quality of repair and maintenance service provided by manufacturers and dealers is getting better.

15. The problems of consumers are less serious now than in the past.

16. The information needed to become a well-informed consumer is readily available to most people.

17. Many of the mistakes that consumers make in buying products are the results of their own carelessness and ignorance.

18. Consumers often

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try to take advantage of manufacturers and dealers by making claims that are not justified. (Reversed)

19. The average consumer is willing to pay higher prices for products that will cause less environmental pollution.

20. The problems of the consumer are relatively unimportant when compared with the other questions and issues faced by the

2 1 . Concern for the environment does not influence the product choices made by most consumers. (Reversed)

22. Manufacturers seem to be more sensitive to consumer complaints now than they were in the past.

23. When consumers have problems with products they have purchased, it is usually easy to get them corrected.

24. Most business firms make a sincere effort to respond to consumer complaints fairly.

25. From the consumers’ viewpoint, the procedures followed by most manufacturers in handling complaints and settling grievances

26. Consumerism or the consumer crusade has not been an important factor in changing business practices and procedures. Marketing practices

Consumer responsibilities

(Reversed)

Consumer problems

average family. (Reversed)

Consumerism

of consumers are not satisfactory. (Reversed)

(Reversed)

Government regulations

27. The gov&nment should test competing brands of products and make results of these tests available to consumers.

28. The government should set minimum standards of quality for all products sold to consumers.

(Appendix continues)

MarcWApril2001 229

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APPENDIX

(Continued)

29. The government should exercise more responsibility for regulating the advertising, sales, and marketing activities

of

30. A government department of consumer protection is not needed to protect and promote the interests of consumers. (Reversed) 3 1. In general, self-regulation by business itself is preferable to stricter control of business by government. (Reversed)

32. The most important problem facing consumers today is the high prices of consumer goods.

33. High prices of consumer goods are caused primarily by wholesale and retail middlemen taking excessive profits.

34. Considering wage rates and income levels today, most consumer products are priced fairly. (Reversed)

35. Refusal of consumers to buy expensive products is the most effective way of keeping prices of consumer goods at reasonable lev-

36. Government price control is the most effective way of keeping the prices of consumer products at reasonable levels.

manufacturers. Pricing practices

els. (Reversed)

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Note. The statements were measured on a Liken-type scale ranging from 1 (stmngly agree) to

5 (strongly disagree). The scale was reversed for some

statements, as noted, depending on the direction of the statement.

230

Journal

of Education for Business