Cultural Anaylsis Essay

1194 words - 5 pages

Second, a greater understanding of India and China’s socio-cultural segments showcases the influences society has on consumer behavior. Mooij (2010) argues that cultural values affect consumer behavior. Effectively, market consumption is in part based on the cultural environment surround a consumer, thus marketing should adapt to their local customs. India’s consumers offer a family orientation that includes an extended family that value generic brands at affordable prices. Chinese consumers face a shrinking family that values luxury items and places preferential treatment towards brand names. Chinese consumers intend to flaunt their wealth to differentiate themselves from their neighbors. ...view middle of the document...

Particularly, what consumer’s believe effects what they purchase. Thus, it is possible to infer what target products appeal to particular groups as well as the best way to communicate to them. SRI VALs 2 data demonstrates these similarities and differences between China and India. Forest Ma (2004) argues for two underlying Chinese consumer behavior: life-orientation and social grades. Furthermore, he shows that most Chinese are either social climbers (12%), Middle class traditionalist (13%), underprivileged traditionalist (14.1), middle class moderates (15.1%), or underprivileged moderates (12.1). After evaluating numerous surveys, Ma shows that most Chinese life-orientation groups prefer foreign brands while tradition oriented Chinese consumers are more likely to buy domestic. Thus, a great number of local Chinese will buy domestic products because their lifestyle preference favors known brands. Furthermore, Ma rejects the conclusion of differences among all lifestyle groups exposer to TV. Yet, fashion, privileged, and high achievers go to the cinemas frequently and extensively use the Internet compared to other groups. Thus, the Chinese expected to buy foreign goods require dense advertisement.
Similarly, Spillan et al. (2007) find a general consensus among Indian ethnocentric buying habits. However, Spillan contradicts himself by stating that Indian consumers understand the beneficial nature of imports. Thus, many Indians fell like it is their patriotic duty to buy Indian merchandise, yet given price constrains impoverished Indian consumers cannot afford expensive domestic products. Effectively, both India and China are similar to each other on life-style consumption, as they would rather buy domestic products. However, Chinese upper class consumers are willing to pay extra for luxury items. A key differences is that Chinese middle-class consumers have been able to purchase luxury items for almost two decades; however, Indian consumers are presently moving towards a powerful middle-class market consumers. Thus, Chinese consumers require extensive advertising to persuade their purchases due to their life-style preferences, while Indian consumers life-style is second to associated cost.

Last, organizational behavioral attributes illustrate how purchasing arrangement and segmentation are unique to the organization markets. The degree of purchasing structure aligns itself with the economy’s degree of centralization. In other words, buyers may consider transactions cost and risk minimization in their consumption. Obviously, Chinese consumption typically falls within risk mitigation and centralized ruling. These customers heavily favor cost saving products and require considerable information and evaluation of alternative suppliers before consumption. Within decentralized arrangements quality and service is desired. Typically, this behavior describes Indian market consumption behavior. A market that has little purchasing power cannot drive cost...

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