Chinese and Australian Consumer Behaviour

These advantages piece of ass be gained done gaining w wear call fors the Chinese place the cost vastness on In regards to the hierarchy and what type of grass genius throw out be created to to the highest degree efficaciously target the Chinese market. Introduction bedevil Culture Analysis A cross-cultural study is a sound tool undertaken to effectively understand the foreign countries involved In exever-changing goods Internationally. Marketers app argonntly desire to efficiently trade large measures of goods and function to unhomogeneous create countries.If the complex procedure of understanding the major alterations between Chinas and Australias look atr behavior is effectively established a result of costive outlooks and increased tell on acknowledgment go away be identified. According to the Australian Embassy, China is Australias largest trading conk outner hence allowing a beneficial exposure for further acknowledgment and marketing opportunities for an Australian exporter. China may be classified as a collectivisedic civilization (Horn, Merritt, Sun 2004).Collectivist assimilations atomic number 18 defined by their ability to m ordainant unanimous connections within their groups and in cabaret to be coherent, individuals are strongly rund by black eye(a) couples or family members to follow similarities within one ordination (Horn, Merritt, Sun 2004). They break a lofty command for companionable recognition and status and consume goods to communicate a symbolic press oution of their status and prestigiousness (Clans, Gambler, 2003). For example, the Chinese intoxication wine on special occasions to belong, but too to stress their status and prestige (Lulu, Murphy, 2007).As an trade opportunity Australian marketers wad capitalist on this by emphasizing their wine harvest-homes to be a sign of prestige to target the Chinese leftist culture. Australia on the other hand is viewed to have deferent cultural beliefs the nation is defined as a strongly laissez-faire(a) culture. This means individuals within Australia desire to express their unique traits with a minimum influence by others (Lee, Askance 2000) which Is In opposition to the Chinese.As an Individualistic culture, Australia has a greater tendency to be ego-enhancing than leftist cultures, and associates achievement with the individual rather than the group (which is typical of the Chinese culture) (Nevis 1983). Although these cardinal countries have strong dissimilarities, marketers must take into account Australias and Chinas similarities in consumer behavior, as there might be potential for an Australian exporter to succeed. Although In invest to satisfactorily establish exporting analysis between the countries consumer behavior characteristics.The various differences in culture and spirit must be used adequately to capture the target audience. Moscow pecking order of Needs and Consumer Behavior Mascots power structu re of Human Needs is a classification of five basic tender-hearted ineluctably ranking in order of most substantial to least(prenominal) central. The first is physiological, which includes the need for food and water, followed by safety and security need (protection, stability), social require (friendship and belonging), ego ineluctably (status, restive) and self actualization (self- assemblement) as the final need (Bedlam et al. 2010).This hierarchy tolerate be utilize to goods and services in determining what level of needs they satisfy and help marketers segment the on a needs base of operations. Most people in society express these needs, though in slightly divers(prenominal) ship canal. Most needs could be classified under this hierarchy which makes it useful for marketers when segmenting (Bedlam et al. 2010). The theory of the hierarchy states that in one case lower levels needs are satisfied, again new (and button up higher) needs pop To be fulfilled (Moscow, 943 p. 375). Which means that it is only once lower needs are satisfied, do higher needs emerge to be fulfilled (Bedlam et al. 010). For consumers this means that they will only buy reapings to fulfill higher needs once their lower needs have been satisfied. For marketers this becomes significant when billet on a needs basis as the demographics of the landed estate may not allow those people to fulfill their higher social needs if their basic physiological needs arent being met. Or it may mean that only a small percentage of the population would be marketable to if they hold most f the wealth of the country. Importantly if marketers see a product to meet the perceived needs of consumers, consumers are more than probable to choose that product over competitors.In this way the needs hierarchy can be used as a basis on which to build the benefits the product can offer to the consumer, through fulfilling a need, deviseing it more likely they will consume that product over compet itors. Marketers can also bring about the arousal of needs through advertising, and the product they are trying to sell can become the consumers goal particularised product (Bedlam et al. 2010). This is ultimately the aim of the product. Therefore an understanding of Mascots hierarchy is important when segmenting the market.It can allow marketers to position to a segment on a needs basis and even create the arousal of need, of which the product can become a product specific goal. The Effect of Culture on Mascots Hierarchy of Needs As was described earlier, in the previous section, Mascots Hierarchy of Needs identifies the five basic levels of human needs. While generally accept because it reflects the needs of most people in an laissez-faire(a) society, it cannot be use to all cultures. This is because despite the fact that most people express master(a) or physiological needs, acquired needs are leant in response to ones culture (Bedlam et al. 010). The Chinese and Australians w ill therefore place their needs with differing important to marketers when considering which needs basis to segment on. According to Nevis (1983), Mascots Hierarchy of needs is a formulation of an single culture such as Australia and America, and therefore cant be applied to the Collectivist Chinese culture. Nevis (1983) proposes the Chinese culture subverts the traditional model by placing belongingness as the first basic need, allowed by physiological, safety needs and self-actualization in service of society at the discharge.This new hierarchy reflects the collectivist traits of the Chinese culture high family and group orientation (Cyanic, Gambler, 2003), the expression of self as part of a group (brother, father, son, husband but never as self) and gaining meaning through interaction with society. Belonging is therefore the basis of the Chinese society (Nevis 1983). For marketers this means stance products in relation to the products borrowing by the targeted consumers social and family groups.This is an important approach to take regardless of what needs basis is segmented, as Chinese consumers will look to their social groups for guidance when purchase a product rather than the offers and benefits presented to them before purchasing (Ability, Frank, Anemia, Achievement 2011). This is reflected in the pup commercial targeted at the Chinese consumer (See appendix 1). While the drink is targeting a psychological need in Mascots Hierarchy, a large part of the ad focuses on the acceptation of the drink by the family, which is reflecting the grandeur of family orientation to the Chinese nonuser and their need for belongingness.While the Chinese have self- actualization at the top like individualistic cultures, they differ to Australia, in that they fulfill this need through their success as being part of a group as opposed to being recognized individually (Cyanic, Gambler, 2003). This is echoed in their low individuality score of 20. Australia on the other hand has an individualism score of 90 and is reflected in its beliefs that an achieved goal is the result of the individual. Chinese culture also has a high degree of confront, which is evident in the subverted Hierarchy.Consumption in China has a strong social association because of its high degree of face whereby Chinese consumers fulfill their needs through placing more emphasis on publicly visible possessions (ABA, Us, Chou, 2003, p. 737). This socio-cultural characteristic reflects the need for belongingness and acceptance by social and family groups. Furthermore, high face also means Chinese consumers are more likely to buy luxury products as a symbol of social status, and prestige of the family, rather than an expression of self as is common in individualistic societies such as Australia (Cyanic, Gambler, 2003).High face suggests a larger social need and indicates reference group influence is much larger in collectivist cultures than individualistic cultures, and this supports the subverted Hierarchy model with belongingness as the first need for the Chinese Collectivist culture (ABA, et al. 2003). The implications of this for marketers when exporting means centering products on their acceptance by the target market reference groups when segmenting on a needs basis.Positioning to the Chinese on product benefits is less important as they are more likely to look to the group when buying a product than the benefits it bears Cyanic, Gambler, 2003). Overall for marketers, understanding how culture affects the Hierarchy of needs is detrimental when positioning as not all cultures place the same emphasis on the same needs. Brand personality is an association of a denounce whereby it is imbued with human-like personality traits (Bedlam et al. 2010 p. 108). Human personality traits are developed on the basis of an individuals behaviors, characteristics, beliefs, and demographic characteristics.However, mail personality traits are formed and influ ence by the consumers interaction with the brand, the culture from which the consumer comes long with the way that the marketers attempt to portray the brand in the eyes of its consumers (Luau, Papua 2001). For marketers, the aim of creating a brand personality is to create an identity to which consumers can resolve emotionally positively towards, and to extend themselves through the brand (Bedlam et al. 2010). If the brand closely reflects the personality of the consumer, they are more likely to respond positively towards that brand and buy from it (Wee, 2003).By extension, brand personality can be seen as a reflection of the cultures in which the brand is surrounded by (Gerhardt, Houston 2001). For example, the Chinese place emphasis on harmony and relationships (Nevis 1983) and this in tern is reflected in the brand personalities aimed at the Chinese. When Audio marketed their brand to China in a TV commercial (See Appendix 2) the car isnt shown until the very end of the ad, un til after(prenominal) several happy relationships have been shown. The aim was to try and make a connection between the car and the relationships it allows people to have, creating a brand interpret of relationships and connectedness.Chinese brand personalities, which keep in consistency with heir cultural collectivist traits, tend to portray belongingness and the brand as an avenue to express their acceptance by society and group members (Luau, Papua 2001). Whereas in the Individualistic culture of Australia, brand image is much more likely to take on an individualistic approach as Australian consumers are more likely to purchase brands they deem suitable for themselves (Lam, Lee, 2005 p. 165). As a result Australian brand images take on a self-centered approach that stress ordinariness and express the persons personality rather than acceptance by the group.Consumers in individualistic cultures are also less likely to switch brands (Lam, Lee 2005). This could be due to personal ity being relatively stable (Bedlam et al. 2010), so Australians are expected to keep expressing themselves through the same brand that matches their personality. Yet fashion and status are constantly changing within groups, so collectivist consumers (such as the Chinese) are more likely to switch brands to belong to the changing influences of their peer groups. (Luau, Papua 2001).For marketers this means creating a brand personality for collectivist cultures hat are primarily fashionable and seen as acceptable by the consumers peer groups, while in individualistic cultures the brand personality must align with the personality of the consumer to be received positively. This idea of brand personality influenced by culture is vital for marketers to position their product in the eyes of consumers. If a consumer associates a product in a distinct light to the way the marketers are promoting it, it can have detrimental effects towards the longevity of the good.Subsequently, the opposite can happen, whereby the consumers take a greater liking o the good, and increase the marketability of the product. Global branding brings forth an exposure to an more and more culturally-diverse audience. In order for Australian marketers to understand the distinctly unique dimensions of brand personality in the Chinese market, it is vital to consider the socio-cultural characteristics that underpin Chinese consumer behavior and preferences. Chant, Saunders, Taylor and SHCOON (2003 p. ) logical argument that consumers seek brands with congruent personalities (to their own), and use brands personality to define their sense of self. Furthermore, these unique needs of consumers and owe they identify, relate, and associate themselves to brand personalities alongside the inextricably linked pressures of economic, lifestyle and cultural conditions, must be considered collectively in order for marketers to successfully market their firms offerings (Bedlam et al. 2010). Hefted (2001) pu ts forth that the dimensions of Chinas cultural differences are shown by a high degree of long-term orientation and collectivism.Unlike individualistic societies such as Australia, collectivist cultures support and adhere to standards and exercise decisions on a group axis (family, extended family, network of friends and community) in effect, providing the framework within which Chinese individuals and households function. Confucianism, the dominant philosophical influence in China, is an ideology that reiterates this collective nature, as well as the importance of these interpersonal relationships and interactions, the notion of face, and the concept of hierarchy.In addition, education level, sex, age and standard of living all influence how foreign brands are perceived in the Chinese market (Chin (3)). A recent study conducted by chug and Sung (201 1), identified a six dimensional framework of brand rationalities present in China. They consisted of Competence, Excitement, and Sop histication (Chug, Sung, 2001 p. L) notions co-ordinated with those found in individualistic societies like Australia, and culture-specific dimensions such as Traditionalism, Joyfulness, and Trendiest.Through this research, Chug and Sung (2011) demonstrate that through establishing a Chinese brand personality structure marketers are able to identify the coexistence of both Chinese traditionalism and the implementations of Western ultramodernization on cultural values in modern China. This means that in the past three decades, the Chinese market has increasingly opened p to the West, in a way that does not impinge with deeply rooted cultural norms.This notion is reflected in the consumer behavior of todays novel middle-class aspiring Chinese consumers whom are increasingly becoming the most affluent consumer class in china (Powel, 2011 p. 40). Powel (2011) proposes Mr.. And Mrs.. Middle Class are increasingly extending their brand preferences as a result of breaking beat the barr iers between cultures. However, cultural transitions are not intended to comply with Confucianism, rather, the usage of brand personality becomes an avenue to express wealth, success, youth and the modernity of intromission (Chin (3) p. 8). It is through these cultural characteristics and ties with economic and social factors, that perceptions towards brand personality exists among consumers from a society that is more culturally conditioned. In order to maximize exporting opportunities, adaptation is a necessity. Successful brands have philosophy a duty period from the traditional marketing concept to the more appropriate conceptualization of societal marketing (Bedlam et al. 2010).Unlike Australians whom project high levels of uniqueness and individuality in their consumption patterns, Chinese consumers rely on the importance of social interaction in making consumer based decisions. It is assumed that the recommendations and comments from others play a very important role in th e choice of brand (Chin (3) p. 7). This notion is reflected in the Chinese commercial for milk (See Appendix 3) where it can be seen that the reciprocity of and importance of trust-based interpersonal relationships is highlighted.Set in a time in Chinese narrative where many could not afford to drink milk every day, the positioning of brother and sister, over the course of time, provides depiction of milk as a commodity of value of which one should be grateful to have. Years posterior when the young boy grows up, he realizes that his sister was only pretending to dislike milk so that she could give it to him. As a result, he vows to provide milk for the well-being of his future family.This ad highlights the need for marketers to show the Chinese consumers that the brand is a part of their relationships with others in order for the brand to be received positively. This is because, as the ad depicts, belonging and relationships is central to the Chinese. The societal marketing conc ept takes into account the importance of adopting a long-term outlook, that all companies would be better in a stronger, healthier society and that companies that incorporate respectable behavior and social responsibility in their business dealings will attract and maintain loyal customer support over the long term (Bedlam et al. 010, p. 17). It is through adopting accordingly to these sensitive cultural subtleties that provides an opportunity for brands to adapt their marketing mix strategies to realize the best and most effective ways that meets their needs as ell as adequately adopting brand elements (images, advertising etc. ) that appeal to, relate and reflecting the consumer preferences of the Chinese market. Conclusion Overall it is detrimental for marketers to understand how Mascots Hierarchy and Brand Personality differs between Australia and China.Without an understanding of how Mascots Hierarchy is subverted by different cultures, marketers would miss the opportunity t o position based on what different cultures base as their most intrinsic need. Without an understanding of culture and how it affects brand personality, arresters may not integrate a brand to be adopt positively by a different culture. In order for marketers to export successfully, they need to adapt their marketing approaches to take into account these differences caused by the different cultures, therefore an understanding of both these concepts and how they are affected by culture is vitally important.