The Economy

The Economic and Sociocultural Policies

Brunei Darussalam is one of Asia’s wealthiest nations, with very high per capita income derived from its abundant oil and gas reserves. However, its gross domestic product (GDP) per capita has followed a downward trend in the past decade due to fluctuations in the world oil and gas industry, the effects of the 1997 Asian financial crisis, and the collapse of a huge local construction conglomerate in 1998.

The Bruneian market is unique, very small but wealthy, with consumers of high-spending character. Nearly all products in the country are imported from abroad. It is therefore interesting to look in depth into the nature and patterns of consumer behavior in Brunei before analyzing the marketing practices in the country. The first section in this chapter focuses on the macroenvironmental factors, the importance of the natural resources of the country, which essentially shape its economic and social development programs, its demographic characteristics, the institutional aspects of the monarchical system and the national philosophy, and also, the economic and sociocultural policies of the government.

The second part of the discussion turns to the relatively price-insensitive and high-spending consumers who reside primarily in the urban areas. As will be explained later, consumption patterns in Brunei are highly influenced or governed by the state philosophy: Brunei is a Malay Islamic Monarchy. Following an understanding of the patterns of consumer behavior and the marketing practices in Brunei, discussions eventually lead to the final section, which emphasizes the importance of relationship marketing and customer retention in the marketplace.

The Global Marketplace

Although Australia’s population is relatively small by world standards, it is certainly not homogeneous. It would be a mistake, therefore, to assume that Australians are exactly like the residents of the United States, and that few or no changes are required regarding products when entering the Australian market. Australia’s population is aging.

However, again, it is important not to think that older consumers are all alike. Targeting specific subsegments of the mature consumer segment is required. This is applicable to the other segments of the population as well. Australian consumers are seeking increasingly more information on products and services.

They expect to obtain this information quickly and are using electronic media, such as the Internet, to gather up-to-date information. Furthermore, Australian consumers want their complaints dealt with quickly and fairly. It is not sufficient in the Australian market to acknowledge a complaint; it is critical that complaints be addressed and then resolved satisfactorily.

In the new millennium, it is important to recognize that although Australia is located in the Asia-Pacific region, Australia is very much a part of the global marketplace. Marketers must ensure that promotional materials and messages are realistic, with those portrayed in the advertisements reflecting the many lifestyles of Australian consumers. Certainly, they should represent
the various cultural and social groups in the population.

Important for Marketers

Australia’s population is relatively sophisticated and multicultural. Consumers are generally well educated and require informative answers to their product and service inquiries. With considerable immigration over the years, first principally from the United Kingdom and Europe, and then more recently from Asia, a wide range of customs, beliefs, values, food, and goods and services preferences can be found.

There are also many subcultures, namely, Aboriginal, Greek, Italian, Chinese, Vietnamese, and other ethnic populations, and so it is important for marketers to be aware that each subculture has distinctive needs and wants. The influence of subculture tends to be strongest where a significant number of the group members are geographically grouped together.

For instance, in the suburbs of Kilkenny in Adelaide and Westend in Brisbane, there are large Vietnamese communities. Consumers from these groups often have preferences for particular goods and services, such as food and foodpreparation items. As previously noted, the availability of goods and services catering to these subcultures’ needs has changed many Australians’ perceptions of food options and combinations.

While Australia could be regarded as a Christian country, an increasing proportion of consumers are non-Christian. Major non-Christian groups in Australia include Muslims, Buddhists, Jews, and Hindus. Practicing members of these religious groups observe certain religious days, eat or abstain from eating certain types of foods, and wear specific types of clothing. Such beliefs and customs influence consumer behavior, and marketers need to be aware of product and service requirements and to think about how products are presented to consumers, for instance, in terms of the colors used in promotional campaigns.