Chinese and Australian Consumer Behaviour Essay Example

Hierarchy of Needs and Consumer Behavior is a useful tool for marketers to capture their target audience by understanding the various differences in culture and personality. This hierarchy classifies five basic human needs in order of importance, beginning with physiological necessities such as food and water, followed by safety and security, social needs, ego needs, and self-actualization. Marketers can apply this hierarchy to their goods and services to determine which level of needs they satisfy and segment their audience accordingly. According to the theory, once lower level needs are satisfied, higher needs emerge to be fulfilled. Consumers will only purchase products that fulfill their higher needs once their lower needs have been satisfied. The usefulness of this hierarchy lies in the fact that most needs can be classified under it.The importance of the needs hierarchy to marketers lies in the fact that a consumer's higher social needs cannot be fulfilled if their basic physiological needs are not met due to demographics of the country. Conversely, if the majority of a country's wealth is held by a small percentage of the population, only that percentage becomes marketable. Marketers can design products that meet perceived needs, which increases the likelihood of consumers choosing their product over competitors. The needs hierarchy serves as a basis on which to build benefits of a product that fulfill needs and become consumer goals. Marketers can even create an arousal of need through advertising. Understanding the needs hierarchy is crucial for market segmentation and positioning on a needs basis. Measles hierarchy identifies five basic levels of human needs, which are affected by culture.Although Maslow's Hierarchy of Needs is generally accepted in individualistic

societies as it meets the primary or physiological needs of most people, it cannot be universally applied across all cultures. This is because individuals in different cultures acquire needs in response to their unique cultural backgrounds (Bedlam et al. 2010). For example, the Chinese and Australians prioritize their needs differently based on the intensity of their respective cultures. Therefore, marketers need to consider cultural understanding when deciding on needs-based segmentation. Nevis (1983) argues that Maslow's Hierarchy of Needs reflects an individualistic culture like Australia and America and does not apply to the collectivist Chinese culture. Instead, Nevis proposes a new hierarchy that places belongingness as the primary need followed by physiological, safety, and self-actualization in service of society at the top for the Chinese. This new hierarchy reflects the collectivist traits of the Chinese culture, such as high family and group orientation (Cyanic, Gambler, 2003), expressing oneself as part of a group rather than the individual self, and gaining meaning through society interaction. Thus, marketers should position their products based on acceptance by the targeted consumer's social and family groups.Regardless of the segmented basis for consumer needs, relying on social groups for guidance in purchasing products is crucial for Chinese consumers. This is emphasized in the commercial targeting the Chinese consumer, where family acceptance plays a significant role in fulfilling the need for belongingness. Although self-actualization is also important to the Chinese, they tend to achieve this need through group success rather than individual recognition, unlike Australia. This low individualism score of 20 in China is opposed to Australia's score of 0, where individual achievement is highly valued. Additionally, China's emphasis on "face" contributes to

the strong social association with consumption and placing importance on publicly visible possessions. (Boo, Us, Chou, 2003, p.737)The socio-cultural characteristic of high face in Chinese culture represents the importance of belongingness and acceptance within social and family groups. It also leads to a greater likelihood of purchasing luxury products as a symbol of social status and family prestige, rather than self-expression like in individualistic societies such as Australia. This emphasis on belongingness and reference group influence reflects the subverted Hierarchy model, where it is the first need for Chinese collectivist culture. When exporting products to China, marketers must focus on appealing to these reference groups when segmenting on a needs basis rather than on product benefits alone. Understanding cultural differences in the Hierarchy of needs is essential for successful positioning, as different cultures prioritize different needs. Additionally, brand personality is crucial for creating an association of human-like personality traits with a brand.Individuals develop their human personality traits through their behaviors, characteristics, beliefs, and demographic characteristics. However, brand personality traits are influenced by consumer interactions with the brand, the culture from which they come, and the way marketers portray the brand (Luau, Papua 2001). Marketers aim to create a brand identity that evokes positive emotional responses in consumers and allows them to connect with the brand (Bedlam et al.2010). If a brand's personality closely aligns with the consumer's personality, they are more likely to have a positive response and purchase from the brand (Wee, 2003).

Brand personality can also reflect the cultures surrounding it (Gerhardt, Houston 2001). For instance, Chinese culture focuses on harmony and relationships, which is reflected in brands aimed at the Chinese market. In

a TV commercial for Audi marketed in China (see Appendix 2), the car is not shown until after several happy relationships have been depicted. This approach aims to connect the car with relationships and relatedness, creating a brand image of connection and inclusivity.

According to Luau and Papua (2001), Chinese brand personalities reflect their cultural collectivist traits by emphasizing belongingness and expressing acceptance by society and peers. Conversely, Lam and Lee (2005) observed that Australian consumers, who embody a more individualistic culture, tend to purchase brands that reflect their own personality and sophistication rather than group acceptance. Additionally, Australian consumers are less likely to switch brands as personality tends to remain stable (Bedlam et al., 2010). In contrast, collectivist consumers like the Chinese are more likely to switch brands to conform to the evolving fashion and social status norms within their peer groups (Luau, Papua 2001).

A crucial aspect for marketers is creating a distinct brand personality that appeals to collectivist cultures, aligns with the personality of individualistic cultures, and is socially desirable among consumers' peer groups. Understanding the influence of culture on brand personality is vital for successful product positioning as consumers may develop an alternate perception of the marketed product. Conversely, favorable perceptions increase marketability among culturally diverse audiences. To understand brand personality in the Chinese market, Australian marketers need to consider socio-cultural characteristics that shape consumer preferences and behavior. Consumers seek brands with personalities that mirror their own, which shapes their self-identity and association with brand personalities.According to Bedlam et al. (2010), marketers must consider the intertwined pressures of economic, lifestyle, and cultural conditions as a collective factor in successfully promoting their firm's

offerings. Hefted (2001) states that China's cultural differences are largely characterized by a high degree of long-term orientation and collectivism. In contrast to individualistic societies like Australia, collectivist cultures rely on group-based standards and consumption decisions driven by family, extended family, networks of friends, and community. Confucianism, China's dominant philosophical influence, reinforces this collective nature while emphasizing the importance of interpersonal relationships, the concept of "face," and hierarchy. Factors such as education level, sex, age, and standard of living also shape foreign brands' perception in the Chinese market (Chem.(3)). In a recent study by Chug and Sung (2011), a six-dimensional framework of brand personalities was identified in China encompassing notions such as 'Competence, Excitement, and Sophistication' (Chug, Sung, 2001 p.L) found in individualistic societies like Australia, as well as culture-specific dimensions like 'Traditionalism, Joyfulness, and Trendiest.'Chug and Sung (2011) conducted a research to prove that marketers who establish Chinese brand personality structure can recognize the coexistence of traditional Chinese values and Western modernization in modern China. Over the past thirty years, the Chinese market has been receptive to Western influence without endangering ingrained cultural values. Powel (2011) noted that the young middle-class Chinese consumers have developed affluent brand preferences due to the breaking down of cultural barriers between nations; however, cultural shifts do not conform to Confucianism. Instead, brand personality reflects wealth, success, youth, and consumption modernity. These cultural characteristics and connections with economic and social factors form consumer perceptions concerning brand personality in culturally conditioned societies. To increase opportunities for exporting, adaptation is crucial. Successful brands align their branding strategies with dominant cultural inclinations.According to Bedlam et al. (2010), there has been a shift

from the traditional marketing concept to societal marketing, which is more appropriate. In contrast to Australians, Chinese consumers place greater importance on social interaction when making consumer-based decisions, where recommendations and comments from others play a crucial role (Chem.(3) p.7). This notion is reflected in a Chinese milk commercial (See Appendix 3) that highlights the significance of trust-based interpersonal relationships. The ad depicts a brother and sister in a time when milk was a commodity the majority of Chinese could not afford daily. The positioning of the siblings over time provides a depiction of milk as a precious commodity that one should be grateful to have. Upon realizing that his sister was only pretending to dislike milk so she could give it to him, the young boy vows to provide milk for his future family. This ad underscores the need for marketers to demonstrate that their brand is part of the Chinese consumers' relationships with others to be received positively. As depicted in the ad, belonging and relationships are central to the Chinese culture.Adopting a long-term outlook and incorporating ethical behavior and social responsibility in business dealings can attract loyal customer support over the long term. Understanding cultural subtleties allows for effective tailoring of marketing mix strategies and adoption of brand elements that appeal to the Chinese market. It is crucial for marketers to comprehend how Maslow's Hierarchy and brand personality differ between Australia and China to position brands based on each culture's intrinsic needs. Without this understanding, marketers may miss opportunities and fail to integrate brands positively in different cultures.The ability for marketers to export successfully depends on their ability to adapt marketing approaches

to account for cultural differences. It is crucial to have an understanding of both concepts and how they are influenced by culture. A study by Ability, Frank, Anemia, and Achievement (2011) suggests that foreign retailers should consider cross-cultural differences in customer satisfaction formation when dealing with Chinese consumers. Alison Owens' research on education and migration also highlights the importance of cultural awareness. Stephen Taylor's analysis on Australian business etiquette and culture, based on Geert Hofstede's approach, further emphasizes the need for cultural sensitivity. Bao, Su, and Zhou (2003) found that face consciousness and risk aversion can impact consumer decision-making within different cultures.