'China Compare to Australia\r'

'Abstract Consumer behaviour is of the essence(predicate) for whatso invariably commercializeer. Cross ethnic analysis provides crucial sociableisation as to what go by the gate be successful exported to global markets. In relation segmentation in mainland china Australians need understand stopping point, sub polish and cross-cultural affiliation. A nonher important factor when considering selling opportunities is Maslow’s hierarchy of of necessity. It is ever present that at that place argon stintingal and cultural struggles at heart chinaw be. payable to increase globalization and increase Westernisation of chinaware finiss be beginning to blend. pinch these ii theories is commanding for exporters proveing to fat into the diverse and complex Chinese market. Introduction: Cross-Cultural Analysis The Australia - china Free dispense Agreement (ACFTA) is offering the opportunities for Australian exporters to a progress to to a greater extent sustainab le competitive advantages in the sulphur astronomicst economy in the world. Chinese domestic economic growth, liberalisation, and recent membership to the military man Trade brass instrument nurture given opportunities for Australian exporters and firms to expand in China (ACCI, 2004). at that placefore, cross †cultural analysis has catch an important tool for Australian marketers in analysing to what effect consumers of the two unlike nations differ. As a result, marketers result be able to study and understand in-depth the orthogonal market which to whom they leave behind market their products to, since cultural ack straightledgement will require a significant bushel to every aspects of marketing particularly in segmenting the market and understanding the consumers behaviors. People from contrastive countries restrain contrasting culture that shaped their characteristics and behaviors in their acquire activity.Chinese culture vs. Australian Culture (Segmentat ion: Culture, subculture and cross-cultural affiliation) Consumer behaviour is the intimately essential aspect of marketing, which outlines what consumers’ need, and what influences their buying behaviour. Therefore, it is vital to plow the cultural, social, personal and physiological characteristic of the Chinese consumers in array for Australian marketers to understand Chinese consumer behaviours in order to successfully snap into the Chinese market. There atomic number 18 several ifferent studies conducted by experts which mark that the fleeceable Chinese markets behaviour is similar to Australian culture who are price and disgrace sensitive, and are at one time constantly moving towards mature market, who view the sanitary known foreign tick offs with superior quality and swear out as leverage to their social term (Yi-You, 2004). This bm is the result of the Chinese culture that underpins the wideness of social status and a robust economy that boosts consum er ego-assurance in outgo (Giele, 2009). For instance, the gross r unconstipate referable figure for opulence cars in China has surprisingly increased within 2005-2010.According to the customs figures China has import more than 100,000 sumptuousness cars in recent twelvemonths, approximately valued at $4. 84 billion (China Business, 2006). This ex antiophthalmic factorle underlines the growing Chinese economy that significantly affected by consumers spending bahaviour. It is obvious that Australia is similar in a virtuoso where we live in a culture that underpins importance of social status; however this does not recollect Australians will go out and buy a luxury car for the sake of promoting their economical situation.Australian consumers draw to use a cost-benefit analysis, that is, will the benefits of the vehicle all overbalance its price, if yes sales will tend to increase, if no sales will drop (Reh, 2009). Therefore while at that place is a small similarity in demo graphic segment opportunities (socio-economical status), the buyer behaviour decision comfort differs. Luxury Cars Thus, it is crucial for Australian marketers to choose the bust(p) entry and pricing strategies to fetch the potential markets verity and trust.In relation to the car sedulousness, Australian subsidiaries much(prenominal) as Holden and Ford can penetrate the market with their extravagantly end vehicles the Calais, Caprice, Senator and Mondeo and ultimately make Chinese consumers aware(p) of the quality and luxury that such brands underpin (Financial Times, 2009). In doing so exporters need to set themselves aside from competitors including Mercedes, BMW, AUDI and even neighbouring brand Lexus and show consumers the unique opportunity of investing in an Australian Luxury Vehicle. Chinese bigotry Furthermore, distinct Chinese culture is alike vie an important role in shaping consumers behaviour.Chinese state believe in â€Å"Feng Shui”, it is the stro ngest cultural impact on consumers in the decision- fashioning process. This Differs from Australian culture who has a different perspective on such superstitious belief, in most(prenominal) cases Australian consumers would mock a marketing strategy with such a belief. Thus where the buying decisions of the Chinese is dependent on this cultural principle, the Australian consumers care more close product quality, price, comprehend benefits and service of the product, as opposed to what the product represents (Giele, 2009). Chinese believe that Feng Shui will bring them luck and peace.Therefore, Chinese consumers will consult â€Å"Feng Shui” experts before making the purchasing decision. For example, Chinese people interpreted add quadruple (? pinyin si) as bad luck since it is nearly homophonous to the word â€Å"death” (? pinyin si). Therefore people in China do not like anything that involving number four (Lubin, 2010). In state this when marketing Australian exporters should market in relation to positive Feng Shui beliefs in China. For example when marketing Australian drink which is quickly increasing in popularity in the Chinese market, a marketer should avoid any aged wine with the number four.That is for example Shiraz from 2004, 1994, 1984. This has been reflected in the dramatic ruin in sales, during 2004, and marketers were bewildered as to why it occurred (Lubin, 2010). Marketers should in fact promote wine from years that have the number eight included, as this is a symbolism of prosperity and happiness. In saying this in the year 2008 Australian wine exporters could not keep up with assume from Chinese consumers, an increase in 32% from the previous year (Winefacts, 2009).Thus in order for Australians to penetrate the market they should do so harmoniously with the Feng Shui principle in order to succeed. exporting alcoholic potable to the Chinese Segment Culture is wholeness of the most important factors and basic cau ses that influence consumer behaviour. It involves the attitudes, beliefs and knowledge which run into consumer’s buyer behaviour (Schiffman et al. 2008). For example, when on that point are a small number of consumers, it is easy for them to try and feel product variations and quality then the maker mustiness(prenominal) meet the expectation.If these expectations are not met, consumers would never re bargain for that product. However, if at that place are a large number of consumers, a brand name must be established in order to produce new consumers, and it will develop with continued purchase by the consumer. In this process, marketer must coiffe the product depending on different segmentations like culture. encounter beer for instance, when a new brand of beer is introduced into a beer imbibing country like Australia, fresh beer is always unploughed chilled, and Consumers do not want to order beer without universe cool.It also ineluctably to be kept out-of-d oor from the sunlight to maintain its savor, which is different from Chinese. In China, beer does not need to be kept in deep freezer and always exposed to the sunlight. Moreover, there is a difference of beer taste amidst Australian consumers and Chinese consumers. If the bon ton exports the Australian beer directly to China, Chinese consumers will not accept it because Australian beer tastes too strong for the Chinese consumer (Mona Chung , 2007). Similarly, Chinese white spirit cannot fit Australian consumers because it is too hot for them.Nowadays, Chinas taste for wine provides a great market opportunity to Western Australia. Chinese consumers are growing interest for nice Australia wine. husbandry and Food Minister, Mr. Redman said â€Å"Premium wine industry is gaining the attention of consumers in China, but to date there has not been a Chinese language obtain with information on WA wineries for this market”. Because Chinese consumers are getting thirst for Austr alia wine, Redman had launched a take in mandarin in Shanghai about Australian wine which includes 100 local hint wineries in order to cope with Chinese consumer expectation.Australia is one of top suppliers of wine to China. The wine exported every year to China has increased by 20% over the agone 2 years (Josette Dunn, 2010). Redman predicts that the number of wine imported to China would grow to 1. 26 billion in 2013. Also , according to the research , summation Australian wine exports to China grew 37% annually from 1999-2000 to 2004-2005 and increased at a rate of 84% annually from 2004-2005 to 2009-2010 . Moreover , wine intelligence shows the market in China which import wine could grow to between 70 and 80 million cases by 2025 (2010).In saying this, it is obvious that when segmenting to the Chinese market, marketers must take into count on the diverse cultural beliefs of Chinese consumers, but also take into account the close similarities between buyer behaviours of the two nations. Hierarchy of inevitably Maslow’s power structure of postulate (appendix 1) has been cited in numerous texts both in psychology and marketing. In the marketing context the power structure is useful in interpreting how different products and run satisfy different needs. The hierarchy is based on intuitive notion that certain needs must satisfied, at least partially, before reaching the undermentioned level.The most basic need of the hierarchy is physiological, examples are food, water and breathing. The next level is caoutchouc and shelter needs which covers shelter, protection and stability. These first two levels are necessary for human survival. The next three levels consist of psychological needs. These respectively are:- social needs such as affection, belonging and friendship; self needs which includes prestige, status and self-respect and final self-actualisation which is the estimation of self fulfilment or finding pith with one’s life. Differences between culture China is generally considered a Collectivist culture.Collectivism is based on unity of the group, where people are encouraged to correct to society and do what is best for the community as a whole (Britannica, 2010). This means individuals are more easily persuaded by friends and family as there is a strong desire to fit in. Contrastingly, Australian and early(a) Western Cultures are seen individualist societies where more idiom is placed on each person beingness unique. This is why marketing is focused on making individuals stand out rather than blend in with the rest of the crowd (see appendix 2 & 3 for examples).In the Chinese commercial (appendix 2) it can be seen that collective culture and history still plays a major role in Chinese culture. The ad clearly targets the social need as Pepsi is seen to be drunk by the group and the new school-age child must crush the can to be trustworthy into this culture. This allows him to become part of the dynasty and correct to the norm. This is juxtaposed to American commercial (appendix 3) where the individual is the focus of ad. It appeals to the ego and self actualisation needs as by potable Pepsi you can achieve your ambition and be illogical from the rest of the crowd.Thus the distinct marketing differences between the embodied Chinese culture and individualistic Australian culture can be seen. China is the world’s fastest growing economy and as such there has been a huge influx of Multi-national corporations. This has started to have an influence on China’s urban areas as they are proper individualistic due to Western products. The change can also be attributed to the one child policy. This has made the new contemporaries of Chinese far more self-centred and have become more indulgent in themselves as costs to run a family have get down dramatically.This has allowed this generation far greater influence over their families decision making (Mari, 2008). Though Australia is seen as a uniform society where there is little beggary and relatively small gap between rich and poor in China however there is very distinct divide between urban and verdant populations. The annual per capita income of urban Chinese was somewhat three times as high as their country-bred counterparts and the Engel coefficient was 37% for urban and 46% for rural (Mari, 2008). Even more demonstrative is that Chinese urban and rural consumer spend only 3. and 2. 13% of their total income respectively on entertainment. This is compared to Australia where our total GDP per capita is $38,911 (World economic outlook database, 2010) and the average household spends a $ one hundred fifty a week on both groceries and entertainment. This equates to 22% of GDP per capita. It is obvious Australian culture focuses on high levels rather than the set out need on the hierarchy (ABS, 2006). The effect of Culture on the Hierarchy The differences in purchasing behaviour for u rban and rural Chinese can be explained by Maslow’s needs hierarchy.People living in rural China live in a far more traditional society (Collective) and their consumption of goods is used to satisfy the social need to give a sand of belonging. Though the majority of their earnings is to satisfy their physiological, safety and protection needs. The bicycle is an example of the social differences of culture in China. The bicycle is the main mode of tape drive as cars are still too big-ticket(prenominal) to afford for rural commuters. The bicycle is fulfilling their safety and security need as it allows people to get to work on and thus provide for their family.Contrastingly, bicycles and bike riding in Australia is seen as a subculture mainly for leisure. Consumers who purchase bikes are doing so for their ego and self actualisation needs as they are simultaneously helping to lower pollution and increasing their physical appearance (At, 2006) Chinese; moving up Maslow†™s Hierarchy Due to the cultural differences, there are high demands in luxurious branded items such as Louis Vuitton. This demand has increased due to higher incomes which has led consumers to coming the higher levels of Maslow’s hierarchy.Chinese people are now purchasing luxury items for the prestige and social status which is associated with the high end brand. Loius Vuittton introduced itself into China as must have brand in order to conform to popular culture (Bloomberg Businessweek, 2007) Therefore, marketers of this brand have successfully expanded into this emerging market as it is sheer that Chinese consumers tend to buy the same brand as others which is represented in their buying culture (Yau, 2007). However, Australians are less concerned about conform to society so once a brand becomes popular consumers tend to try and create a new fashion trend.When Loius Vuitton markets to Australia it has constantly change its products as to not become a ‘fadâ€⠄¢ or lose interest allowing customers to remain brand loyal. Australian Exporting opportunities It appears there are opportunities for Australians to export into China. As more and more urban areas are becoming Westernised more international companies are trying to gain entrance into the Chinese market. Hence as China’s economy continues to grow so will the income of its population giving them more discretion on purchases as they move up Maslow’s needs hierarchy.To effectively market to these consumers at present an Australian exporter would use direct marketing and word of let out to make use of Collectivist culture of China. Exporting education is the most worthwhile export. Marketers can accentuate the self actualisation and ego needs of the Chinese people and show them that by attending an Australian University they are likely to have a better education, giving them more employment opportunities, ultimately a better way of life thus substantive these higher leve l needs.Moreover, Australian exporters can sidle up to Chinese businesses the growing importance of speaking English, which they can gain under an Australian education. This will give them a far greater ability to expand outside of Asia. To make this easier Australian Universities can situate a campus within China in order to grant easier access to Australian education. This maintains the social needs of Chinese students but could fulfil their ego and self actualisation by learning English from a prestigious institution.Recently the world expo in capital of Red China gave Australian exporters a chance to promote Australian education and give a good perceptiveness into the benefits of studying in Australia (Xiuyun, 2009). Conclusion It is evident there exists great potential for Australians to expand in the Chinese market but in order to do this they must understand socio-cultural segmentation and why different segments embody different needs on Maslow’s hierarchy. It is als o important to understand the similarities between the two nations as China is becoming more Westernised, thus insight into Western and Chinese culture is jointly important.References At, M. 2006, Bicycle culture, Copenhagenize. com, viewed at 26th horrible 2010 <http://www. copenhagenize. com/>. 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