consumer behavior case study

Topics: Middle class, Working class, Sociology Pages: 8 (2457 words) Published: April 2, 2014

The main purpose of this report is to analyze the beef and wine markets in South Korea with two theories of consumer behavior as following, social classwhich include the income of different levels of class and their behavior toward beef and wine. In addition, in this report, the attitudes of consumer will also be taken into account as the main focus to evaluate the points of marketing strategy and how South Korean consumers buying behavior different from Australian. With social class and attitude these two aspects of consumer behavior can provide the Australian beef and wine markers the better information about their target market and to understand how they response to the importing products.


The economy of South Korea is ranked eleventh in the world and third among Asian countries, thus unquestionably South Korea consumer has a certain buying power and might be a potential market for Australia. From Department of Environment and Primary Industries 2012, with a GDP of $1.46 trillion (USDA, 2011), the economy of South Korean was ranked 13th largest in the world in 2010. Approximately 6.1% economy inclined in 2010 and it brings per capital of buying power about $ 30,000 USD (CIA, 2011). The demand for the healthy products and with high quality food is increasing in South Korean market. Owing to the climatic reasons and the capacity of the land is limited in South Korea to expand the farms and wine vineyard thus Australia has been one of main exporter to South Korea.

According to government report, for Australian wine South Korea has became an important export market. In 2008, approximately 1.9 million liters of wine, which valued $12.7 million was exported to South Korea from Australia. The average price of wine per liter $6.71 AUD. More than 73% of exports to South Korea from Australia are bottled products and the soft packs are popular, about 26% of Australian exports. Red is the color of the choice, occupied 73% of Australian shipments (Clark, 2009).

South Korea is the third largest export country for Australian beef, about thirteen percent of export volume that Australia export to global and $750 million of return to the Australian red meat industry. For Australian Cattle Council to work on progressing an Free Trade Agreement with South Korea is a first priority for the beef industry to make sure that any opportunity is grasped and stay competitive in this market. Social class position in South Korea

According to the theory of Schiffman, social class could be divided into several parts, which include upper-uppers, lower-uppers, upper middles, middle class, working class as well as lower class. The consumer behavior varies from class to class. In general, the social structure of South Korea is a fairly mature structure of the industrialized countries. On the top of the social structure is upper-upper, which accounts for 4.3%. Lower-uppers ranks second, with the percentage of 23.9%, followed by upper middles at 24.8% and middle class at 8.9%. Working class has the largest proportion of 29.7%. At the bottom is lower class, which takes up 8.4% (Kim et al. 2013). Base on Schiffman’s theory income is one of the ways to position social class. In addition occupation and education are also index to position level of social class. In 2012 South Korea's gross national income (GNI) per capita reached $22700. On the basis of the statistics of the middle class standard in 2012, those people whose income is over 150% of GNI per capita are classified as upper class, with the income of $34050(Lund et al. 2010). While those people whose income is about GNI per capita are classified as middle class, those people whose income is under GNI per capita are classified as lower class.


Consumption behavior from different social class
The beef market and wine market are chosen in order to analysis the consumer...
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