Consumer behaviour is important for any marketer. Cross cultural analysis provides crucial information as to what can be successful exported to international markets. In relation segmentation in China Australians need understand culture, subculture and cross-cultural affiliation. Another important factor when considering marketing opportunities is Maslow’s Hierarchy of needs. It is ever present that there are economic and cultural differences within China. Due to increased globalization and increased Westernisation of China cultures are beginning to blend. Understanding these two theories is imperative for exporters trying to expand into the diverse and complex Chinese market.
Introduction: Cross-Cultural Analysis
The Australia -China Free Trade Agreement (ACFTA) is offering the opportunities for Australian exporters to a gain more sustainable competitive advantages in the second largest economy in the world. Chinese domestic economic growth, liberalisation, and recent membership to the World Trade Organisation have given opportunities for Australian exporters and firms to expand in China (ACCI, 2004). Therefore, cross – cultural analysis has become an important tool for Australian marketers in analysing to what extent consumers of the two different nations differ. As a result, marketers will be able to study and understand in-depth the foreign market which to whom they will market their products to, since cultural acknowledgement will have a significant impact to every aspects of marketing particularly in segmenting the market and understanding the consumers' behaviors. People from different countries have different culture that shaped their characteristics and behaviors in their purchasing activity.
Chinese Culture vs. Australian Culture (Segmentation: Culture, subculture and cross-cultural affiliation) Consumer behaviour is the most essential aspect of marketing, which outlines what consumers’ need, and what influences their buying behaviour. Therefore, it is vital to discuss the cultural, social, personal and physiological characteristic of the Chinese consumers in order for Australian marketers to understand Chinese consumer behaviours in order to successfully penetrate into the Chinese market. There are several different studies conducted by experts which accentuate that the immature Chinese market's behaviour is similar to Australian culture who are price and brand sensitive, and are now constantly moving towards mature market, who view the well known foreign brands with superior quality and service as leverage to their social status (Yi-You, 2004).
This movement is the result of the Chinese culture that underpins the importance of social status and a robust economy that boosts consumer confidence in spending (Giele, 2009). For instance, the sales figure for luxury cars in China has surprisingly increased within 2005-2010. According to the customs figures China has imported more than 100,000 luxury cars in recent years, approximately valued at $4.84 billion (China Business, 2006). This example underlines the growing Chinese economy that significantly affected by consumers' spending bahaviour. It is obvious that Australia is similar in a sense where we live in a culture that underpins importance of social status; however this does not mean Australians will go out and buy a luxury car for the sake of promoting their economical situation. Australian consumers tend to use a cost-benefit analysis, that is, will the benefits of the vehicle outweigh its price, if yes sales will tend to increase, if no sales will drop (Reh, 2009). Therefore while there is a small similarity in demographic segment opportunities (socio-economical status), the buyer behaviour decision still differs.
Thus, it is crucial for Australian marketers to choose the best entry and pricing strategies to gain the potential market's loyalty and trust. In relation to the car industry, Australian subsidiaries such as...
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