Table Of ContentHandbook of Markets and Economies
East Asia
Southeast Asia
Australia
New Zealand
Handbook of Markets and Economies
East Asia
Southeast Asia
Australia
New Zealand
Foreword by John O’Shaughnessy
Anthony Pecotich and Clifford J. Shultz II, editors
M
.E.Sharpe
Armonk, New York
London, England
CAMBODIA 1-1
Copyright © 2006 by M.E. Sharpe, Inc.
All rights reserved. No part of this book may be reproduced in any form
without written permission from the publisher, M.E. Sharpe, Inc.,
80 Business Park Drive, Armonk, New York 10504.
Library of Congress Cataloging-in-Publication Data
Handbook of markets and economies : East Asia, Southeast Asia, Australia, New Zealand / edited by
Anthony Pecotich and Clifford J. Shultz II.
p. cm.
Includes bibliographical references and index.
ISBN 0-7656-0972-X (cloth : alk. paper)
1. Marketing—Asia—Handbooks, manuals, etc. 2. Marketing—Australia—Handbooks, manuals, etc.
3. Marketing—New Zealand—Handbooks, manuals, etc. 4. Asia—Handbooks, manuals, etc.
5. Australia—Handbooks, manuals, etc. 6. New Zealand—Handbooks, manuals, etc. I. Title: East Asia,
Southeast Asia, Australia, New Zealand. II. Pecotich, Anthony. III. Shultz, Clifford J.
HF5415.33.A78H36 2005
330.95—dc22 2004017970
Printed in the United States of America
The paper used in this publication meets the minimum requirements of
American National Standard for Information Sciences
Permanence of Paper for Printed Library Materials,
ANSI Z 39.48-1984.
~
BM (c) 10 9 8 7 6 5 4 3 2 1
CONTENTS v
CONTENTS
Foreword, John O’Shaughnessy ix
Acknowledgments xi
Introduction, Anthony Pecotich and Clifford J. Shultz II 3
1. Australia, Janet R. McColl-Kennedy, Sharyn Rundle-Thiele, and Steve Ward 23
Overview 23 • Introduction and Brief Historical Background 23 (cid:127) Economic Climate
24 (cid:127) Demographic Factors 28 (cid:127) Social Structure and Culture 36 (cid:127) Implications for
Marketing 44 (cid:127) Conclusion 45 (cid:127) Notes 46 (cid:127) References 46
2. Brunei Darussalam, Leong Vai Shiem and Tan Siew Ee 47
Overview 47 (cid:127) Introduction 47 (cid:127) Natural Environment 48 (cid:127) Demographic
Characteristics 50 (cid:127) Political System and Government Structure 52 (cid:127) The Economic
Environment 53 (cid:127) Sociocultural Environment 62 (cid:127) Consumers in the Monarchical
Market 67 (cid:127) Conclusion 73 (cid:127) Notes 73 (cid:127) References 74
3. Cambodia, Clifford J. Shultz II and Don R. Rahtz 76
Overview 76 (cid:127) Introduction 76 (cid:127) Geographic and Cultural Influences 77 (cid:127) Political
Evolution and Structure 78 (cid:127) Economic Environment 83 (cid:127) Demographic Trends and
Societal Wellness 91 (cid:127) Implications for Marketing and Consumer Behavior 95 (cid:127)
Future Trends and Expectations 101 (cid:127) Conclusion 103 (cid:127) References 104
4. The People’s Republic of China, Pia Polsa, Stella L. M. So, and Mark W. Speece 107
Overview 107 (cid:127) Introduction 107 (cid:127) A Brief Introduction to Geography and Climate
108 (cid:127) A Brief Introduction to the Economic History of China 109 (cid:127) Current
Government Structure and the Political Situation 111 (cid:127) The Socioeconomic
Environment 111 (cid:127) The Demographic Environment: Population Size and
Distribution 117 (cid:127) Culture and Cultural Change 121 (cid:127) Consumer Income and
Employment 126 (cid:127) Consumption Patterns 129 (cid:127) The Macromarketing Mix 139 (cid:127)
Hong Kong: Background 151 (cid:127) Structure of the Economy 152 (cid:127) Demographics
156 (cid:127) Employment, Income, and Housing 157 (cid:127) Social and Cultural Environment
160 (cid:127) Prices and Expenditure 165 (cid:127) Consumers and Health Care 168 (cid:127) Food
Consumption Patterns 171 (cid:127) Retail Sales and Retail Outlets 174 (cid:127) Branding and
Marketing Communication 179 (cid:127) Beginnings of a Role for the Internet 185 (cid:127)
Conclusion 188 (cid:127) Notes 189 (cid:127) References 190
v
vi CONTENTS
5. East Timor, Tony Lapsley 200
Overview 200 (cid:127) Introduction and Recent History 200 (cid:127) The Natural System 202 (cid:127)
The Political System 204 (cid:127) The Economic System 208 (cid:127) The Social System 216 (cid:127)
The Knowledge System 220 (cid:127) The Education System 221 (cid:127) The Executive System
222 (cid:127) The Marketing System 223 (cid:127) Conclusion 230 (cid:127) Notes 230 (cid:127) References 231
6. Indonesia, Don R. Rahtz and Ignas G. Sidik 234
Overview 234 (cid:127) Introduction 234 (cid:127) The Natural System: Overview of Indonesia’s
Geography and Climate 235 (cid:127) The Political System: A Brief History of Colonialism,
Unity, Diversity and Politics 236 (cid:127) The Economic System: A Look at Some Basic
Indicators 245 (cid:127) The Social and Cultural System: One Nation, Many Cultures 249 (cid:127)
The Social Structure System 258 (cid:127) The Education System 265 (cid:127) The Knowledge
System 266 (cid:127) The Marketing System: Consumer Behavior and Market Conditions
267 (cid:127) The Marketing Mix in Indonesia 275 (cid:127) A Final Thought 282 (cid:127) References 283
7. Japan, Tsutomu Okahashi, N. Clay Gary, and Steven Ward 286
Overview 286 (cid:127) Introduction 286 (cid:127) The Japanese Consumer: The Conventional
Wisdom 288 (cid:127) The Bubble Economy 288 (cid:127) The Economic Environment 290 (cid:127) The
Demographic Environment 294 (cid:127) Education 296 (cid:127) Changes in the Traditional Family
297 (cid:127) Materialism, the Environment, and Health 303 (cid:127) Consumer Behavior 307 (cid:127)
Changes in the “Macro-Marketing Mix” 310 (cid:127) Dankai Juniors and the Product Mix
312 (cid:127) Future Trends and Expectations 320 (cid:127) Demographic Trends 321 (cid:127) Marketing
Management 323 (cid:127) Conclusion 324 (cid:127) References 325
8. Korea, James W. Gentry, Sunkyu Jun, Seungwoo Chun, HeeSuk Kang,
and Gyungtai Ko 328
Overview 328 (cid:127) Introduction 328 (cid:127) Brief Historical Perspective 329 (cid:127) Political
Environment 330 (cid:127) The Economies of the Koreas 332 (cid:127) Demographic and Social
Environment 343 (cid:127) Cultural Environment 349 (cid:127) Changes in the Macromarketing Mix
353 (cid:127) Changing Trends 360 (cid:127) Consumer Issues 361 (cid:127) Future Trends 363 (cid:127) Conclusion
367 (cid:127) References 367
9. Laos, William J. Ardrey IV, Clifford J. Shultz II, and Michael Keane 372
Overview 372 (cid:127) Introduction 372 (cid:127) Geography, Lan Xang, and the Emergence of
Modern Laos 373 (cid:127) The Economic Environment 374 (cid:127) Salient Trends and Economic
Drivers 378 (cid:127) Inflation 380 (cid:127) Income and Employment 381 (cid:127) Natural Environment
383 (cid:127) The Demographic and Cultural Environment 384 (cid:127) Changes in Consumer
Behavior 391 (cid:127) Consumer Savings and Credit 395 (cid:127) Changes to the Macromarketing
Mix 396 (cid:127) Future Trends and Expectations 401 (cid:127) Notes 404 (cid:127) References 404
10. Malaysia, Aliah Hanim M. Salleh, Che Aniza Che Wel, and Anthony Pecotich 407
Overview 407 (cid:127) Introduction 407 (cid:127) The Natural Environment 408 (cid:127) The Economic
Environment 409 (cid:127) Political Environment 416 (cid:127) Investment Climate 417 (cid:127)
Technological Environment 420 (cid:127) Understanding Malaysian Consumer Behavior
421 (cid:127) Some Studies on Cross-Cultural Consumer Behavior in Malaysia 426 (cid:127)
Important Trends and Implications for Marketing and the Industry 429 (cid:127) Conclusion
439 (cid:127) References 442
CONTENTS vii
11. Myanmar, May Lwin, Anthony Pecotich, and Vicki Thein 447
Overview 447 (cid:127) Introduction 447 (cid:127) Historical Background 448 (cid:127) Environment 448 (cid:127)
Trends in Marketing Mix 467 (cid:127) Conclusion 474 (cid:127) Note 475 (cid:127) References 475
12. New Zealand, Roger Marshall, Mike Potter, and Christina Kwai Choi Lee 477
Overview 477 (cid:127) The Economic Environment 477 (cid:127) The Demographic Environment
482 (cid:127) The Cultural Environment 484 (cid:127) The Marketing Environment 486 (cid:127) Consumer
Lifestyles 489 (cid:127) The Internet 490 (cid:127) Conclusion 490 (cid:127) References 495
13. Papua New Guinea, Ronald A. Fullerton 496
Overview 496 (cid:127) Introduction 496 (cid:127) Structure of the Economy/Economic
Environment 501 (cid:127) Political Environment 507 (cid:127) Marketing Institutions 510 (cid:127)
Consumer Life in Papua New Guinea 511 (cid:127) Future Trends 514 (cid:127) Conclusion 515 (cid:127)
References 516
14. The Philippines, Albert F. Celoza, Jane Hutchison, and Anthony Pecotich 518
Overview 518 (cid:127) Introduction 518 (cid:127) The Physical Environment 518 (cid:127) The Consumer
Environment 519 (cid:127) Government and Politics 521 (cid:127) Economic Environment 526 (cid:127)
Overview of Major Industrial Sectors 526 (cid:127) International Trade 530 (cid:127) Investment
Climate: Elements of the Marketing Mix 530 (cid:127) Conclusion 534 (cid:127) References 534
15. Singapore, Jochen Wirtz and Cindy M.Y. Chung 536
Overview 536 (cid:127) Introduction 536 (cid:127) Political and Historical Background Information
537 (cid:127) Economic Environment 540 (cid:127) Demographic Environment 548 (cid:127) Cultural
Environment 550 (cid:127) Consumer Behavior 555 (cid:127) Changes in the Macromarketing Mix
562 (cid:127) Conclusions and Implications for Marketing Management 571 (cid:127) References 578
16. Taiwan, Yingchan Edwin Tang 582
Overview 582 (cid:127) Introduction 582 (cid:127) History 583 (cid:127) Geography 584 (cid:127) Economic
Environment 584 (cid:127) Demographic and Sociocultural Environment 589 (cid:127) Marketing
Infrastructure System 594 (cid:127) Changes in Consumption Behavior 599 (cid:127) Changes in the
Macromarketing Mix 600 (cid:127) Future Trends and Expectations 606 (cid:127) References 609
17. Thailand, Nittaya Wongtada, Busaya Virakul, and Anusorn Singhapakdi 611
Overview 611 (cid:127) Introduction 611 (cid:127) Changes in the Environment 614 (cid:127) Changes in
Consumer Behavior 630 (cid:127) Changes in Marketing Practices 632 (cid:127) Marketing
Implications 649 (cid:127) Conclusions 650 (cid:127) References 651
18. Vietnam, Clifford J. Shultz II, David Dapice, Anthony Pecotich, and Doan Huu Duc 656
Overview 656 (cid:127) Introduction 656 (cid:127) Land of the Viet 657 (cid:127) Economic Environment
661 (cid:127) Marketing Environment 670 (cid:127) Multi-Institutional Market Transformation 676 (cid:127)
Implications for Marketing Management 679 (cid:127) Conclusion 684 (cid:127) Notes 685 (cid:127)
References 686
About the Editors and Contributors 689
Index 695
FOREWORD ix
FOREWORD
This book has something distinctive to offer: content, organization, and clarity together with the
recognition that regions and countries within regions do not stand still. It was written by experts
on the countries in East Asia, Southeast Asia, Australia, and New Zealand. Normally this gener-
ates problems in reconciling different frameworks for intercountry comparisons, but this is not
the case herein. In this book, contributors largely use the same framework, composed of eight
systems: the system embracing the natural environment and geography; the political system; the
economic system; the social system; the knowledge system; the educational system; the executive
system; and the marketing system. These are the systems that enable and constrain achievement.
They all need to be taken into account, which is generally not done by others, as scholars tend to
fixate on just one system or a subset.
Except for the system embracing the natural environment and geography, all eight systems are
social constructions, products of human ingenuity, or, in some cases, the result of imposed fetters
on realizing potential. I am tempted to group all these socially constructed systems under the
banner of “culture,” but the term “culture” is now more commonly used to mean a “custom
complex” of values, beliefs, social norms, and rules for interpreting experience and shaping ac-
tions. This was not always so. When the anthropological view of culture first came into being, the
positivist climate at the time insisted that culture be confined to what was observable, that is,
confined to artifacts that could be seen, heard, smelled, and touched. With the decline in positiv-
ism, the study of culture became more the study of shared beliefs, values, knowledge, meanings,
and ideas—things that are discovered and inferred rather than just observed. The eight systems
discussed include this view of culture and also the systems that can be described in observational
terms. This is as it should be, because a country’s institutions provide the context within which
people live and work and within which dreams and hopes are facilitated or frustrated.
As Jerome Bruner (1990) said, psychology must link with culture, as human actions are tied to
culturally shared meanings and concepts. However, the chief symbolic element in any culture is
the language; the absence of a common language takes away one means of enhancing culturally
shared meanings and concepts. As shown in this book, some of the countries examined suffer as
a result of lack of common language.
David Landes (1998) sees culture, in the beliefs and values sense, as making the difference:
success or failure is ultimately determined from within, not imposed from without. In line with
this, Paul Bohannan (1995) argued that cultural meanings instilled into human beings standardize
their choices just as readily, but not as unalterably, as handwriting. But we seldom slavishly
ix
