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.
