Opportunities in Malaysian Consumerism - Essay Example

?Opportunities in Malaysian Consumerism Introduction An important sunshine industry in Malaysia today is the information and communication technology(ICT) industry. In the latter part of the 1990s, the Malaysian government has embarked on an ambitious project designed to make the country a future global leader in information technology by developing the information technology sector. (Pecotich & Schultz 2006, p. 428) ICT products and services, hence, can be considered as attractive areas of interest for Australian IT companies. This is highlighted by the fact that despite of the technological development that has transpired in Malaysia, certain areas are still in its infancy and industries such as e-banking, mobile technology and other ICT sectors have low diffusion in the country driving a stronger demand. (Ndubisi 2006, p17) In order to be able to take advantage of opportunities and establish strong chance at competition in Malaysia, Australian exporters should be able to understand the dynamics of the country’s consumer market because Malaysian consumers differ significantly from those in Australia. An understanding of consumer behavior, particularly, can make a difference since it impacts purchasing behavior and, therefore, marketing decisions as well. In addition, the diffusion of trends such as technological and economic is also crucial to penetrate the Malaysian market. Culture and Consumer Behavior The relationship between consumers and consumer goods is driven by several variables. Culture is one of the most important of such. McCracken’s model, which explained the movement of cultural meaning, identify possession ritual, exchange ritual, grooming ritual and divestment ritual as what dictates individual consumer behavior in the process wherein meaning is constructed, structured and transferred in the flow of consumer goods. (Schiffman et al 2009) Ritual is the key concept at work here. Consumption becomes a symbolic activity typified by steps, behaviors and actions that became constant, occurring repeatedly over time. This underscores how culture impacts consumers. Consumer products are symbols that represent what the consumers value in products and services or what the marketers communicate as value for the buyers. Karahana, Evaristo and Strite also explained how culture impacts behavior through their own theoretical model of culture’s influence on behavior. Here, behavior is driven by attitude and social norms, variables that are produced by cognitive beliefs, cultural practices and values. (p8) Pecotich and Schultz conducted a review of studies on consumer perception on brands in Malaysia. It was found that Malaysians display specific characteristics in their attitude towards products. Specific examples were provided. For instance, in brand selection on electrical products, Malaysians were found to be motivated by the perceived best brand, favoring prestige over a product that is simply thought of as efficient or works well. (p426) This is also congruent to the tendency of Malaysian consumers to patronize celebrity-endorsed products and their loyalty to brands. According to Kacen and Lee (2002), impulse consumer buying behavior now accounts for up to 80% of all purchases in some countries and that culture plays a part as consumers engage in sudden, compelling, hedonically complex purchase decision process that precludes thoughtful, deliberate consideration of all information and choice alternatives. (p163) The argument is that culture tempers impulsive buying. This is highlighted in Malaysia by the Islamic subculture, which in turn can best be depicted through the concept of halal. In Malaysia, halal, which means what is permitted, is the norm in Islamic consumption. Consumers and their consumption are subject to institutionalization regulated by the Ministry of Domestic Trade and Consumer Affairs. Fischer (2008) explained that halal informs and controls ideas and practices such as wearing of gold and ornaments, wigs and hairpieces; paintings; photographs, keeping of dogs; cleanliness; industries and crafts; sexual appetite, and numerous other areas. (p29) An excellent example of this subculture is a Sunsilk advertisement (see fig. 1). The ad aims to market shampoo but throughout the video sequence, the hair of the model was never seen because Islamic norms require women’s hair to be hidden. Consumption, hence, though not strictly controlled, is guided by strong cultural and institutional rules and this dictates marketing decisions in the country. Fig. 1: Sunsilk Shampoo Commercial The previously cited variables highlight how the characteristics of the Malaysian consumers differ significantly from the Australians. This is depicted in the ten core values of Australian consumers as described by Schiffman et al. Materialism overpowers traditional values such as the religious and reinforced by the sheer potency of the hedonism, universalism, self, direction, power, achievement and stimulation. (Schiffman et al, Chapter 8) Unarguably, Australia, as most Western societies, has purely consumerist consumption norms wherein materialism permeates and is unregulated. Shopping in Australia has become a national past time, with male shoppers projected to radically rise in the next few years. This is also highlighted by the high incidence of credit card use and how statistics show the strong materialistic values in Australia today, which is associated with the importance that Australians attach to possessions. Diffusion of Technology An important factor in penetrating the Malaysian market is the diffusion of technology. This factor is important because of the previous emphasis given by this paper on technology, knowledge and communication sector in Malaysia. It has been stipulated that the country has developed a sophisticated ICT sector, with the government actively encouraging the flow foreign technology which the country currently. As a result, the adoption of information and communication technologies is easier, offering opportunities for Australian IT providers. Notice, for instance, how an advertisement for a mobile phone seeks to cover a broad market including the young, old, men, women, rural, urban, etc. in its target demographics (see fig. 2). Using Leon’s theory, it is easier to predict, develop and introduce ICT products in Malaysia because it is easier to evaluate adoption constructs and technology acceptance because it is not saturated market, with no sophisticated market segmentation and niche marketing strategies. (p337) Leon emphasized that in Malaysia, with the existing technological landscape, dependent constructs such as consumers’ behavioral intention and the capability of the technological infrastructure are conducive to the bright prospects of information, communication, technological and knowledge products and services. Australian companies who have already established a foothold in Malaysia will find it easier to encourage consumer adoption of products such as broadband internet technologies, mobile communication, e-banking solutions, softwares and other computing peripherals, and so forth. AD for Digi Malaysia (2007) In the ICT sector, particularly in e-commerce, the Malaysian consumer behavior is not so distinct in comparison to Australian consumers. Both of these markets are looking for products and companies that are trustworthy and reliable as the seemingly universal issue that the global consumers are concerned when it comes to the Internet platform is integrity and security. A study by Rugimbana (2007) about the relevant Malaysian experience demonstrated this point. It was found that values that stress integrity of referent groups, self-reliance and identity are important in the ease of adoption of technological products. This is further supported by Sohail and Shanmugham (2003) who, in their research, found no significant differences in the way Malaysians perceive and act towards Internet and e-banking than the rest of the world. He argued that like the rest of us, issues of accessibility, trust and attitude towards change affect Malaysian consumers as well. (p207) One interesting difference between Malaysia and Australian perspective, however, was documented by Fink and Laupase (2000) who investigated the responses of Malaysian and Australian research participants on four Web site design characteristics – atmospheric, news stories, signs and products and services. Their findings revealed that Malaysians prefer an environment of high context that stresses implicit communications while Australians favor low context and high explicit communications. (p44) Nuances such as this detail uncovered by Fink are important because they collectively define the Malaysian identity, crucial in product development and marketing. Conclusion The geographical proximity makes Malaysia a potential market for Australia. This is underscored by the opportunities provided by globalization, the existing international trade mechanisms that allow countries to easily engage in bilateral trade and the current requirement for high technologies. The Australian government recognizes these opportunities and has pursued aggressive measures to fully capitalize on them. There is currently a very active Australian trade office in Kula Lumpur as well as Australia-Malaysia Business Councils in both countries. Australian exporters, hence, are given a favorable market landscape. But in order to effectively take advantage of this, Australian exporters and service providers should be well-versed with the dynamics of the Malaysian market especially the Malaysian consumer behavior. For example, Malaysians are more constrained in their consumption by both the state and religious regulatory mechanisms as evidenced by the concept of halal. Such understanding would mean that marketing decisions would appropriately address and cope with issues of perception and purchase behavior in the Malaysian context. References AD for Digi Malaysia, 2007, Available from: http://www.youtube.com/watch?v=iaJYILdaJzM Fink, D. and Laupase, R. 2000, "Perceptions of Web site design characteristics: a Malaysian/Australian comparison", Internet Research, Vol. 10, Issue 1, p44 - 55. Fischer, J. 2008, Proper Islamic consumption: shopping among the Malays in modern Malaysia. NIAS Press, Copenhagen. Kacen, J. and Lee, J. 2002, "The Influence of Culture on Consumer Impulsive Buying Behavior." Journal of Consumer Psychology Vol. 12, Issue 2, p163-176. Karahanna, E., Evaristo, R. and Strite, M. 2005, "Levels of Culture and individual behavior: An integrative perspective." Journal of Global Information Management Vol. 13, April-June 2005, p8. McCracken, G. 1986, "Culture and consumption: A theatrical account of the structure and movement of the cultural meaning of consumer goods." Journal of Consumer Research Vol. 13, June 1986, p2. Ndubisi, N. 2006, Marketplace behaviour of Malaysian consumers, Volume 29. Emerald Group Publishing. Pecotich, A. and Schultz, C. 2006, Handbook of markets and economies: East Asia, Southeast Asia, Australia, New Zealand. M.E. Sharpe, New York. Rugimbana, R. 2007, "Youth based segmentation in the Malaysian retail banking sector: The relationship between values and personal e-banking service preferences." International Journal of Bank Marketing. Vol. 25, Issue 1, p6-21. Schiffman, L., Bednall, D., O'Cass, A., Paladino, A., Ward, S. & Kanuk, L. (eds) 2008, Consumer Behaviour, 5th edn. Pearson Education Australia  Sohail, S. and Shanmugham, B. 2003, "E-banking and customer preferences in Malaysia: An empirical investigation." Information Sciences. Vol. 150, Issue 3, p207-217. Sunsilk Shampoo Commercial, 2006, Available from: http://www.youtube.com/watch?v=excxIZ4wUvg&feature=related. Read More