Cultural influences on consumer behaviour

TL;DR: In this article, the authors investigated the differences between individualism-collectivism and consumer behavior in relation to automobile purchases and found that Asian-born consumers are more brand conscious and involve a number of family/friends in their decision making.

Abstract: This study investigates the differences between individualism-collectivism and consumer behaviour in relation to automobile purchases. In this study the author looked at several stages of the consumer decision-making process and identified the possible differences between individualist and collectivist consumers and how it influences purchase decision. Based on a sample of 211 respondents from individualist (Australian-born) and collectivist (Asian-born) backgrounds, an established scale (Cultural Values Scale: Singelis, Triandis, Bhawuk, & Gelfand, 1995) was used to confirm the cultural values among the participants, if the respondents are aligned with the particular group (i.e. Asian-born with collectivism and Australian-born with individualism). Hypotheses were tested using independent sample t-test. Results found that there were no differences in individualism observed between Australian-born and Asian-born respondents; however, there were differences in collectivism observed between these two groups, such that Asian-born participants scored higher on collectivism. Results also found that Asian-born consumers are more brand conscious and involve a number of family/friends in their decision making. In contrast Australian-born consumers do not believe in group decision making and uses internet as the most important source of information. The findings will provide insight into how automobile companies could position themselves with respect to their marketing strategies in different cultural settings.