Consumer Diversity In Multicultural Arenas: An Investigation Of Social Influences Between Asians And Westerners

The impact of people’s orientation with regard to Collectivism/Individualism and to Locus of Control on the extent to which they are subject to social influence has never been investigated cross culturally in the context of consumer behavior in making purchasing decisions. The objective of this research is to compare the cultural orientations of people in the East and West, and to observe the effect of social influence in their decision making. In particular, this paper examines and adds evidence to the mutually exclusive cultures: Singapore, Thailand, Australia, and America. Hofstede’s typology of cultures is reconfirmed and empirically associated with specific social influence variables on decision making. The findings provide either whole or partial supports for the hypotheses. In general, high collectivism is positively related with external locus of control and results in high level of social influence. There are exceptions, however, which highlight the need to incorporate other factors into understanding the role that cultural orientation plays in decision making.