Malaysia to Australia Marketing Report - Case Study Example

Malaysia to Australia marketing report Name of the Student: Name of the Instructor: Name of the course: Code of the course: Submission date: Malaysia to Australia marketing report Introduction It is an apparent fact that the concept of consumer behavior has a long history among scholars as well as practitioners in the marketing field. This fact is determined by Sirgy (1985, p. 104) who determined that when marketers started to accept and practice marketing concepts, they eventually recognized the fact that consumer behavior usually plays a fundamental role in marketing. Nonetheless, it is only since the 1950s that the idea of consumer behavior has become responsive to the development and eventual growth of contemporary marketing to embrace the more holistic allay of undertakings which have direct impacts on the consumer decision (Bray, 2008, p. 2). This is evident in the modern definitions of consumer behavior, for instance, by Solomon et. al. (2006, p. 6) who perceived consumer behavior as the study of the concerned processes when either individuals or groups select, purchase, use or dispose of services, products, ideas or experiences aimed at satisfaction of needs and desires. Against this background, this report is aimed at comparing and contrasting as to how two aspects or theories of consumer behavior as discussed in Schiffman applies to Malaysia and how they differ from those in Australia. Additionally, this report will show how this might be central in the provision of a marketing opportunity for an Australian exporter. In this case, two theories namely culture as well as attitude both of which have extensive impacts on consumer behavior. Culture In a generic sense, culture can be defined as sum of learned beliefs, values as well as customs that serve an integral purpose in directing consumer behavior of members of a specific society (Schiffman, 2011). Diverse cultural studies on consumer behavior have been conducted in the past, mostly in the western context (Jung & Kau, 2004, p. 366). In these studies, differences in the consumption patterns between individuals as well as collectives from different ethnic backgrounds were unearthed, for instance, in the study by Saegert, Hoover and Hilger (1985). On the other hand, other studies revealed differences in various aspects like decision making as well as novelty seeking and perceived risk by Doran (1994) and Gentry et al. (1988) respectively across diverse cultural set-ups in relation to consumer behavior. Thus, there is a need for marketers to have an understanding of the cultural meaning of their brands and products while the consumers endeavor to engage in the acquisition of certain cultural meanings in different products and use these products to create a personal identity which is desirable (Luo & James, 2011, p. 2). In this case, the theoretical foundation of culture is bound to have implications on Australian marketers venturing into Malaysia based on the differences as well as similarities between the cultural set-ups of these countries. From a cultural perspective, Malaysia has a collective culture which is basically communal as opposed to being individualistic. In this case, the spirit of belonging into a specific in-group has greater precedent above the private well-being of individuals. As a result, the decision making process is often founded on group interests over individual ideas (Sian et. al., 2010, p. 182). This cultural orientation based on collectivism is bound to have extensive impacts on the consumer behavior in this country. Additionally, the Malaysian culture has a massive inclination towards masculinity. In this case, men in Malaysia have been revealed of demanding submissiveness from their wives who are expected to stay at home and take care of the children and other domestic chores (Jung & Kau, 2004, p. 368). This can be perceived to explain a predominant trend in this country whereby there are limited women in the workforce. Lastly, based on the dynamics that are inherent in the cultures of different societies, studies have revealed that the elevated economic prosperity in Malaysia in the recent decades has been integral in changing their cultural lifestyle in that there has been greater emphasis being placed on material possession (Haron et. al, 2007, p. 9). In this case, there has been predisposition towards stronger materialistic values being entrenched in the Malaysian culture which has extensive impact on consumer behavior. Unlike in Malaysia, the Australian culture is to a great extent inclined towards individualism which is related to the degree to which individuals are integrated in a particular grouping (Sian et. al., 2010, p. 181). In this case, individuals in Australia maintain very loose bonds and in most cases, individual interests precede those of the groups where they belong which bring a major difference between the consumer behavior in this country and that in Malaysia where the latter is influenced by collective ideals. On the other hand, the Australia culture has lesser inclination towards masculinity and thus women in this region have a greater chance of being entrenched in the national workforce. This is a phenomenon which has seen the overall participation rate of women in the Australian workforce increase significantly in the last two decades to reach a high of 57% which exceeds the OECD average of 50.3% (Abhayaratna & Lattimore, 2006, p. 29). Lastly, Australia has been revealed as having robust materialistic values which are related to the use of possession for managing as well as portraying an impression. This is a similar trend in Malaysia as has been epitomized in the preceding analysis. Nonetheless, it is imperative to note that different scholars, for instance, Ryan and Dziurawiec (2000) and Kamineni (2005) among others have revealed research findings from recent studies in Australia which have indicated that males have a tendency of demonstrating higher level of materialism when they are compared with their female counterparts which is bound to influence the resultant consumer behavior. Against these differences and similarities between Malaysian and Australian cultures which are bound to impact on consumer behavior, an Australian exporter exporting a product like diapers ought to take the marketing opportunity presented by the cultural orientation of this country. This is whereby based on the masculinity culture, the exporter ought to target the women who are mandated with the role of taking care of the children in the advertisement and promotion efforts. Moreover, the exporter ought to take advantage of the increased materialistic values growing in Malaysia in presenting high quality and differentiated diapers in the country which will be used in portraying as well as managing an impression. Attitude Attitude can be perceived as a predisposition that is leant to behave in a consistent manner either in favorable or unfavorable way with respect to a particular object (Schiffman, 2011). The theory of attitude has been perceived to have massive impact on consumer behavior, a fact which is determined by Montazeri et. al. (2013, p. 72) who revealed that based on diverse researches which have been conducted in the 21st century, there has been an inference that attitudes among different individuals and collectives pose extensive influence on marketing as well as the recognition of consumer behavior. There are some apparent differences as well as similarities in the consumer attitudes in Australia as well as in Malaysia as evidenced in the subsequent analysis. In Malaysia, it is imperative to note that the population in this country is to a great extent inclined towards Islamic religion which constitutes a major element of the ethnic identity among people in this region (Kamaruddin & Kamaruddin, 2009, p. 1). In this case, the religious homogeneity in this country is bound to influence the attitude that these people have towards certain products, for instance, alcohol. In actual sense, some of the products like alcohol are considered to be controversial and their heavy restrictions are imposed on their advertisement. This fact is revealed by Fam et. al., (2004, p. 550) who determined that in societies where Islam is the primary faith, advertisement of alcoholic products is either totally banned or under heavy restrictions. This religious predisposition thus shapes a negative attitude of the people in this region towards the advisement as well as consumption of such products. The above fact is supported by Mokhlis (2009, p. 75) who determined that religion is an imperative factor to study based on the fact that it is one of the most influential and universal social institution which has significant influence on people’s attitude, behaviors and values both at the societal as well as the individual level. On the other hand, Malaysians have been revealed to have a negative attitude towards foreign made products, mostly from the developed countries. This is founded on the high level of ethnocentrism in this country which makes the consumers to have a negative attitude towards foreign made products (Shar, 2012, p. 35). In this case, the Malaysians often prefer to consume domestically produced products which have a great significance in influencing the consumer behavior in this country. It is such phenomena in certain countries which have influenced studies on attitude on foreign manufactured products among consumers in the domestic markets of various countries which has tended to receive increased attention among researchers (Shar, 2012, p. 27). Nonetheless, the Australian society is highly heterogeneous in terms of religion which influences the secular attitudes towards various products. This fact is revealed by the Department of Immigration and Citizenship (2007, p. 5) which determined that Australia is a highly secular society founded on freedom of religion and governed by a secular government. This influences the liberal attitudes of various products, for instance, alcohol and contraceptives which might be considered to be offensive in Malaysia which has strict values, attitudes and behaviors governed by the predominant Islamic religion. On the other hand, individuals in Australia have a liberal attitude towards foreign made products which get their way into the Australian market. This liberal attitude influences the consumer behavior whereby individuals and groups consume both locally made as well as foreign products in equal measures provided they are of the desired quality and meet the consumer needs. In this case, exporters of various products from other regions of the globe are bound to find it easier to penetrate the Australian market when juxtaposed with the Malaysian market. Therefore, an Australian exporter can take advantage of the market opportunity based on the above differences in societal attitudes between the two countries. For instance, the exporter of particular products, for instance, Halal foods into the Malaysian market can take market advantage of the homogenous attitudes among the members of this population towards such a product. This is based on the fact that the positive attitude of the Muslims in Malaysia is key in informing their intention to consume the Halal products which eventually influences the consumer behavior in this region. This is epitomized in the subsequent framework. Figure 1.0: Conceptual framework of consumer behavior towards Halal food Source: Soesilowati (2010, p. 154). Lastly, the fact that the members of the Australian population have negative attitude towards foreign made products is also a marketing opportunity which an Australian exporter of Halal food can exploit. This is founded on the fact that there is limited competition from international producers and the challenge is making this product to be acceptable in the Malaysian market. This exporter can overcome this challenge through using an alternative market entry mode, for instance, joint venture or franchising where the Halal food is distributed by locals which will increase its acceptability. Conclusion This report has explored the concept of consumer behavior which has received increased attention in the marketing realm in the recent decades. Additionally, it has compared and contrasted two theories of consumer behavior in both Malaysia and Australia. The first is the cultural theory in terms of collectivism and individualism, masculinity as well as materialism values. On the other hand, there is the attitude theory which was analyzed in terms of religious rigidity in Malaysia against secularism in Australia, both of which influence consumer behavior as well as attitudes towards foreign products. Lastly, it has explored various market opportunities which an Australian exporter can exploit based on cultural and attitude differences and similarities in these two countries which can be central in ensuring that this exporter succeeds in the Malaysian market. References Abhayaratna, J. & Lattimore, R., 2006, ‘Workforce Participation Rates – How Does Australia Compare?’, Staff Working Paper, Productivity Commission, Canberra. Bray, J., 2008, ‘Consumer Behaviour Theory: Approaches and Models’, retrieved 29th May, 2013, < http://eprints.bournemouth.ac.uk/10107/1/Consumer_Behaviour_Theory_-_Approaches_%26_Models.pdf>. Department of Immigration and Citizenship, 2007, Life in Australia, Commonwealth of Australia, Canberra. 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Soesilowati, ES., 2010, ‘Business opportunities for Halal products in the global market: Muslim consumer behavior and Halal food consumption’, Journal of Indonesian Social Sciences and Humanities, Vol. 3, pp. 151-160. Solomon, M., et al., 2006, Consumer Behaviour: A European Perspective, 3rd ed., Prentice Hall, Harlow. Appendix Figure 1.0: Conceptual framework of consumer behavior towards Halal food Soesilowati, ES., 2010, ‘Business opportunities for Halal products in the global market: Muslim consumer behavior and Halal food consumption’, Journal of Indonesian Social Sciences and Humanities, Vol. 3, pp. 151-160. Read More