Signed: Lele San
Newswise — This study looked at seven less-studied markets in Asia, including Hong Kong, South Korea, Japan, Singapore, Indonesia, Malaysia, and Thailand. This study uses data from more than 3,000 consumers between the ages of 18 and 64 to understand how collectivism, religious tradition, frugality, and status/materialistic consumption values play out in these markets. We investigated whether they jointly form consumption preferences.
The findings of this study indicate that collectivism plays an important role among the four values. Researchers say that in collectivist societies like the seven Asian markets, traditional religious values are often given more weight. An increase in religious traditional values leads to an increase in frugality, which in turn leads to a decrease in status consumption and luxury consumption.
However, collectivism directly increases status consumption, and this positive effect is so strong that it negates any countervailing negative effects. As a result, Asian consumers have expressed a passion for consuming luxury goods, while at the same time espousing the moral virtue of frugality, Batra and colleagues say.
In collectivist societies, people often care greatly about the opinions of their social group. Therefore, they may purchase expensive or high-status items to impress their co-workers and fit in with the group. Furthermore, unlike Western individualistic cultures, where status consumption may be viewed negatively as ostentation or materialism, in collectivist cultures luxury consumption is favored because it brings honor within a valued group. There is a high possibility that it will be done.
“The fact that luxury consumption is high and increasing in Asia is not because Asians are becoming more Western and individualistic, but rather because collectivists have their own reasons for valuing status consumption. Maybe it’s because I have it and I’m able to enjoy it more,” Batra said.
Batra says it’s too early to conclude that status-oriented appeals only target younger, more connected consumers. Older, more religious and traditional consumers may have stronger ties to their social in-groups and, contrary to conventional marketing wisdom, may be more receptive to status-oriented appeals.
The study also shows that the values consumers hold can influence how they prioritize different features when choosing a product. For example, consumers who value the consumption value of status often want their consumption choices to be noticed by others. They prioritize more publicly visible product attributes, such as style, brand reputation, and country of origin, and are less sensitive to price.
In contrast, frugal consumers value durability and value for money.
“This helps marketers prioritize which product attributes to emphasize,” Batra said.
This article originally appeared on The Michigan News.
