Consumer Behaviour in Malaysia Decision-making is a significant aspect of consumer behavior since purchasing of commodities depends on a consumer’s decision. Different countries have different consumer behaviors that can be analyzed using the decision-making theory of consumer behavior (Parnell, 2006). For example, Malaysian and Australian consumers have different behaviors that have different implications on their decision-making. This essay will therefore compare and contrast Malaysian consumer’s behavior to that of Australians in relation to their decision-making. The essay will also analyze the suitability of Malaysian market to Australian exporters due to Malaysian consumer behavior. The financial capabilities of consumers are the main determinant of their consumption behavior.
In addition, the decisions of consumers between different types of goods are based on their income. Both Malaysia and Australia have a large middle class society that has relatively high earnings. In addition, the two countries have most of their population living in urban areas. In both countries, more than 46% of the total population lives in urban areas. Per capita income of the two countries is also relatively high with the Australia leading with $ 44663 while that of Malaysia is $ 15155.
This indicates that Australian citizens have a more flexible budget that does not depend on strict decision-making as that of Malaysian consumers (Trachsel, 1995). Purchasing basic commodities and leisure commodities has equal chances in Australia. Unlike Malaysian consumers, Australians divide their earnings between basic goods and secondary wants without undergoing major financial constraints. Secondly, both Malaysia and Australia have multicultural societies. The two countries also have people who are members of the different religions in the world. Decision making of customers from the two countries is free from cultural and religious constraints.
Unlike here in Malaysia, the Australian encounters a high cost of living. This is because their government does not subsidize basic commodities such as education and healthcare. In addition, the cost of basic comedies such as food, clothing, transport, and housing is relatively higher in Australia (Vygotsky, 1978). This makes Australians to be stricter on their spending than the Malaysians. In addition, Australians have a more developed culture of saving and investing than Malaysia citizens do (Chung & Smith, 2007). The needs to save and invest are a factor that differentiates consumer behavior from the two nations in relation to their decision-making. Malaysia is a developing country and therefore its consumers are looking upon the western countries as a source of their style and development (Hofstede, 2001).
Due to this aspect, Malaysian consumers are very optimistic and welcoming on products associated with developed countries such as Australia (Giele, 2009). An Australian exporter will therefore find the Malaysian market attractive due to the optimistic nature of its consumers. In addition, Malaysians have a shopping culture.
Shopping has been considered as a pastime activity for Malaysian citizens. This has led to massive growth of the retail sector and establishment of mega shopping malls. The shopping behavior and well-developed retail sector in Malaysia will be supportive to the Australian exporter. The Australian exporter will take advantage of the Australian market if he targets the growing retail sector as a channel for distributing his products. In conclusion, the Australian and Malaysian consumers have striking differences on their consumer behaviors and decision-making. Although the two countries have almost similar levels of GDP and per capita income, Australian consumers have stricter budget restrictions than Malaysian.
Finally, Malaysians have a shopping culture and preference of foreign products. Works Cited Chung, M., & Smith, W 2007, The Importance Of Overcoming Cultural Barriers In Establishing Brand Names: An Australian Company In China, Innovative Marketing, Volume 3, Issue 2. Giele, F 2009, Chinese Consumer Behaviour: An Introduction, Frans Giele, Viewed 28 May 2012 . Hofstede, G 2001, Cultures consequences: International differences in work-related values, Sage, Newbury Park. Parnell, A 2006, Generic strategies after two decades: a reconceptualization of competitive strategy, Management Decision, Vol.
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