Consumer behavior is one of the most important parts in marketing. This report aims to discuss how market segmentation and motivation of consumer’s behavior. The report also shows the difference between China and Australia. Due to the different culture, it provides good opportunity for Australia exporter to be success in China.
The definition of market segmentation is the process of dividing a market into subgroups based on common needs or characteristics in order to target with a distinct marketing strategy (Schiffman et al. 2011). There are four major segmental types: Geographic, Demographic, Psychographic and Behavioral. (1) Geographic Segmentation
Geographic segmentation is dividing the market by region, city or metro size. As the birthplace of tea, tea is very popular in each place of China. In China, different provinces have different types of tea. For example, the 10 most famous Chinese teas are produces in different provinces in China. Xi Hu Dragon Well is the most famous tea in China, it is produces in Zhe Jiang province; Dong Ting Spring Snail is produces in Jiang Su provinces; Jun Shan silver needle is produces in Hu Nan province and so on. Although these teas produces in different provinces but they are famous in other provinces of Chain and all over the world. (2) Demographic Segmentation
Demographic segmentation focuses on characteristics such as age, sex, marital status, income, occupation and education (Schiffman et al. 2011). In China, tea is more famous in middle-age people than young-age people; young people are more prefer to drink Coca-Cola than drink tea. There is another issue to cause that, the price of teas sold in China is not cheap and some types of tea are very expensive, however, young-age people have not enough money to purchase teas. Now for the sex aspect, survey shows that male like drink tea more than female. (3) Psychographic Segmentation
Psychographic segmentation focuses on the partitioning of the market in terms based on the lifestyle traits of the consumer (Schiffman et al. 2011).The lifestyle of Chinese people is much different than other cultures. Based on the large population of China there are several different types of lifestyle in China. (4) Behavioral Segmentation
Behavioral Segmentation is activities, interests and opinions are measured based on a response by consumers to certain statements, providing helpful indications into consumer outlooks and attitudes (Schiffman et al. 2011). The benefits of drink teas are much better than drink others. Now here will list some major benefits of drink tea:
1. The people who drink tea could help them to reduce the rate of heart attack and also could help protect against cardiovascular and degenerative disease.
2. Tea can boost exercise endurance. Scientists report shows the catchiness include in tea could improve the ability of body to burn fat as fuel that is an easy way to improve muscle endurance.
3. The antioxidants include in tea could help people to prevent a boatload of cancers, that include breast, colon, colorectal, skin lung, pancreas. Tea could improve the health of body, but it cannot instead of miracle cure, after all. While more studies than not suggest that tea has cancer- fighting benefits, the current research is mixed.
Compare with Australia
Australia has a few hundred years of history and it is a imported country. It is one of the largest tea importers in the world, which average annual imports 20000 tons. Australia mainly importes by Indonesia, Sri Lanka, India, Papua New Guinea, and the rest are Kenya, Uganda, Bangladesh. However, China just exports 8% to Australia. “The first western reference to tea was in a 1559 volume of travel literature entitled Voyages and Travels, compiled by Giambattaista Ramusio. It describes