Consumer Behaviour - Internet of Sharing Things - Thailand

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Abstract

The paper is about examination of consumer behavioral trend of ‘Internet of Sharing Things’ (IoT) in Thailand to provide recommendations for companies in Thailand to increase their business benefits. The current use of IoT in Thailand provides more information sources rather than creating trust through enhancing multi-layer services. In detail, with the characteristics of collectivism mindset that people in Thailand rely more on recommendations within their groups or communities to filter information to choose the shortlist of potential buying options. Then, IoT application is around the corner of social pages or online services of retailers in offering more information such as detailed information about product or comparison comments about products. However, despite the current non-applicable status, people in Thailand starts showing their interests in smart services such as smart home devices, television, air conditions, etc. just by one button in IPad. Thai Government has adapted Internet applications on sharing national-level information for population. IoT is the new global trend with promising opportunities to bring up new ways of living for people. However, ‘cultural borders’ of nations affect the adoption of IoT. Thai people are consuming with cultural assumptions of being collectivism. Hence, IoT should be considered as the future trend rather than the current one in Thailand.

TABLE OF CONTENT

Introduction        

Discussion        

Cultural framework of Thailand        

Description of emerging trend – Internet of Sharing Things        

Description of Consumer behavior theory        

A set of actions to apply Internet of Sharing Things into Thailand        

Conclusion        

Reference        

Introduction

The paper is to examine Consumer behavioral trend of ‘Internet of Sharing Things’ (IoT) in Thailand with practical implications in new adaption to derive values to businesses. The consideration is on features of Thailand cultural framework that impact consumer behaviors in resonating to the new trend of IoT.

‘Internet of Sharing Things’ connects separate objects with shared access among consumers based on “the use of intelligently connected devices and systems” (GSM Association, 2014). More and more people are connected with more interconnected objects enabling automatic and contextual delivery of varieties of services (Ning and Wang, 2011). Consumers naturally involve in the revolution of IoT at the exponential pace as the growth way of Internet revolution (Alkar and Buhur, 2005). The paper focuses on consumer behavior of Thai people in resonating themselves into the new trend by which requests for new actions from businesses.

The paper is formatted into two sessions. The first session is to give descriptions about (1) cultural framework in Thailand; (2) emerging trend of IoT; and (3) consumer behavior concept/ theory as the academic background for the paper. The second session is to consider a possible set of actions as part of proactive strategy to apply IoT efficiently into the context of Thailand. It concludes that IoT is the global trend that with more knowledgeable Thailand consumers, firms should have proper preparation for adapting new changes in how to operate businesses.

Discussion

Cultural framework of Thailand

Culture has the strong impact on how consumers formulate and express their consumption behavior; therefore, it is crucial to recognize complexities of cultural dimensions affecting consumers’ buying patterns in order to find out corresponding implications to adjust business and marketing strategies (Doole and Lowe, 2008). Human needs in consumption and people interactions are shaped by “cultural and individual personality” that implicitly, influenced by their belonging culture (Kotler and Armstrong, 2012).

According to Hofstede’s cultural framework, Thailand is inclined to Orient of to be collectivism. Therefore, Thai people give high prominence on social ties within group cohesion; saving face in public with indirect communication style of showing opinions (De Mooji and Hofstede, 2011). Thai cultural framework influencing consumption behavior is considered from 09 aspects as shown in the Figure 1. Value of family and relative-ship network is the traditional feature of Thai culture that it gives definite impacts on people’s decisions and interests. It covers points of role of women in family; power of the wai (father), phi (older brother) and nong (younger brother) neighbors; kinship relationships; family-related personal decisions; and influences of parents on children.

Figure 1: Thai cultural framework influencing consumption behavior [pic 2]

Under hard impact of group cohesion, trust building to outsiders is important which comprises by beliefs in physical things, personal relationships among locals, information–based interactions and less trust to foreigners. “Master over nature” is somehow generated by ‘long time being dominated history’ that Thai people always find ways to change their living by accepting new things, loving for new knowledge but at high social responsibility. Besides changing new ways of living, they maintain traditional beliefs of national spirits, festivals, sex perceptions, etc. in inheriting traditional values. Hierarchical social structure is important for Thai people upon social status and authority. Thai people always know their positions, avoid criticism and refrain themselves to achieve good relationships among parties (Ingersoll-Dayton, Saengteinchai, Kespichayawattana and Aungsuroch, 2001). Context communication involves body languages and long-standing personal relationship in conducting successful interactions. Face orientation means people care to saving ‘their faces’ in society as protecting good appearances and hiding bad characters; hence Thai tend to accept ‘in-house contractionary policy’ to buy modern things with prices being over their affordability. In addition, the ego orientation makes Thai people avoid direct criticism causing inconveniences and discomforts for others. Self-reliance means people often rely on themselves to solve problems and only show them to others/ legal court/ public if being serious. New generations should be categorized in one independent group since they are performing new living styles and behaviors being adapting to combinations of Individualism and Collectivism (Western + Orient).