Consumers in China tend to buy products more frequently and via different channels because of their relatively high level of disposable income. But at the same time China has a predominantly collectivist culture; people, therefore, are not so interested in trying out new, untested products or shopping in non-traditional ways. These are the findings of a recent study.
Individualism vs collectivism
For example, consumers in countries that appreciate individualism (such as the USA or Australia) tend to be far more likely to shop via various channels (retail stores, online, catalogue) and return items that do not meet their expectations. They are also more interested in chasing the latest trends than staying true to a particular brand. They are trying to find the best deal. That makes loyalty cards far less effective when you want to get your customers to shop repeatedly with you. Firms should therefore allocate resources to improve their multichannel approach and minimise rewards programmes, according to an article on the strategy-business.com website.
In collectivist countries such as Portugal, Mexico or Turkey, people tend to value a long-term reputation rather than novelty. Consumers in these countries typically buy things for their families rather than just for themselves. For that reason they are more likely to buy multiple items from different departments of a trusted retailer. They do not enjoy so much the freedom of trying out a wide range of products.
-jk-