Consumer behavior varies according to countries and markets. This paper will analyse the consumer behavior of two countries, and where they differ. The two countries to be analysed are South Korea and Australia. Culture influences the behavior of a given market.
There is a need to analyse a market before doing business in that market. Australia and South Korea are two countries that differ in culture. South Korea consumers are known to be homogeneous in character, and in the way they purchase products.
This is evident, especially when it comes to food consumption. The specific products that will be analysed in this paper is that of cosmestic products that are used by women.
Women have been using cosmetics since time immemorial to enhance their attractiveness. Attractive women are thought to be intelligent, socially acceptable, confident about themselves, and seem to have professional success.
Women spend on cosmetics for mainly emotional reasons. They hope to avoid guilt of not paying attention to their looks. Women prefer cosmetic brands based on packaging, effectiveness on use and sensorial experiences like smell, smoothness or coolness (Majumdar, 2010).
South Korea is estimated to be the biggest per capita market for cosmetics and cosmetic procedures. The figures stand at an astounding 20% between the ages of 19 and 49 in Seoul, who have gone through cosmetic surgery (plastic), laser hair removal and Botox (Botolinum Toxin Type A).
This chemical is is injected into muscles and used to improve the look of moderate to severe frown lines between the eyebrows (Tyagi, & Kumar, 2009).
Koreans are obsessed with these procedures. It is found out that 16% of South Koreans go for surgery as compared to about 6.2% in Australia, meaning Koreans represent one among the highest numbers in the world.
Reasons behind South Korea’s rise in cosmetic surgery specifically is the adoption of pop culture with the desire to look like popular celebrities like Michael Jackson.
Australia, on the other hand, represents a different consumer market altogether. Women in Australia spend more because of brand loyalty, coupled with the fact that they perceive these products to be of high quality.
Australia has been experiencing for the last few years a bit of decelerating economic growth like any western country which has greatly impacted of consumer spending. The working middle class population has been spending less because their disposable income has been coming down.
In some industries, there has been lay offs due to low demand for their goods, whereas in some, workers have had to content with salary reduction to reduce the wage bill on company finances being squeezed every other day.
Cosmetic consumers have had to reduce, therefore, to the bear minimum requirements or completely abandon expenditure, thus, become luxury in this market.
Food and other basic necessities like servicing mortgage, medicine, and clothing have taken precedence (Samli, 2006).
On the contrary, consumers of cosmetics in South Korea are growing every other day in numbers. The country has been experiencing double-digit growth in the GDP with the economy creating jobs.
Companys have been posting improved profitability out of increased sales and high business turnover therefore able to higher more.
Fourthermore, new industries are coming up, new trades increasese in public spending and, improved communication through all channels (phone, social media, general internet, mass media), whereby manufacturers have been able to reach more potential consumers via advertisements.
Adverts, especially towards working class, upper middle and the affluent has been so intense so much so that even manufacturers are giving free gifts with some amount of purchase. This has greatly improved market penetration (Lake, 2009).
References
Lake, L 2009, Consumer behavior for dummies, John Wiley & Sons, New York.
Majumdar, H 2010, Consumer behavior: Insights from Indian Market. PHI Learning Pvt. Ltd., New Delhi.
Samli, AC 2006, International consumer behavior: Its impact on marketing strategy development, Greenwood Publishing Group, London.
Tyagi, CL, & Kumar, A 2009, Consumer behavior, Atlantic Publishers & Distributors, Atlanta.