To understand marketing and consumer behavior in Australia, it is important to briefly consider
the nation’s historical development. European settlement commenced in 1788 in the form of
a British penal colony. Transportation of convicts, many of whom were Irish, continued until
1840 (Hancock 1995). These convicts could gain a “ticket of leave” after serving their sentences
in Australia. Thus, they formed the basis of the working class. This contrasts with the majority of
free white settlers who were skilled Protestant artisans from England and Scotland who came to
this new country in search of a better life. As a result, two distinct classes were emerging by the
late 1800s—the Protestant urban upper class and the highly unionized and predominately Catholic
labor force. There have been tensions between these groups for much of Australia’s history,
and many cultural values of “a fair go,” egalitarianism, and distrust of authority (the tall poppy
syndrome) can be traced back to conflicts between these two groups.
The great depression of the 1890s brought about high unemployment and lowered living standards.
It was during this difficult time that a basic minimum wage was established to protect the
workers. National identity was a key issue, and the Commonwealth of Australia was formally
established in 1901, bringing together the individual colonies into a single federation (Hancock
1995). Soon after this, the “White Australia” policy was introduced. This meant that settlement
was restricted to Europeans. This white migration policy continued until the 1960s, when immigrants
from the Middle East as well as other European countries were allowed entry. Asian migration
commenced in the 1970s, and this has continued until today, making Australia a truly
multicultural society (Hancock 1995). In the 1960s and 1970s, thousands migrated to Australia to
pursue their dreams, culminating, for many, in the “time of excess” of the early 1980s, when the
focus was on spending. The economy went into a recession in the late 1980s, and this continued
into the early 1990s. The consumer emphasis of the late 1990s was on maintaining personal
relationships, obtaining value for money, and getting back to basics, including refocusing on the
family and home (McColl-Kennedy 1998). At the turn of the twenty-first century, Australia experienced
more positive growth, but this was tempered with a greater sense of uncertainty, with the
tragic events of Bali in October 2002. Despite a hardy, historical pioneering rough-and-ready
bush image, modern Australia is an urban community with a social structure centered in the cities,
particularly on the east coast.