An empirical investigation of regional differences in consumption behaviors in an emerging economy

Abstract

AbstractWidely regarded as one of the most dynamic economies in Southeast Asia, Vietnam has increasingly attracted scholarly interest from diverse business disciplines. However, previous marketing research on Vietnam largely treats the country as a homogenous society. We draw on the literature in sociology, geography, history and predict that significant regional differences exist in consumers' consumption behaviors between the North and South of Vietnam, bearing important implications for international marketers. Using secondary survey data collected by an international market research firm, we show that consumers in Hanoi (HN) and Ho Chi Minh City (HCMC) differ greatly in how they perceive the impact of an economic crisis, how they change their consumption behaviors as a result, and whether they will cut back on spending on themselves, their families, and children. Our results also demonstrate that HN and HCMC consumers differ in their attitude toward luxury product consumption, attitude toward advertising, and marketing versus non‐marketing controlled sources of information. Our research provides important implications for both managers and researchers interested in this fast‐growing economy.