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Impact of Culture on Consumer Behavior in Luxury Consumption South Korea vs Netherlands

In: Business and Management

Submitted By cndee
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Impact of Culture on Consumer Behavior in Luxury Consumption
South Korea vs Netherlands

By: Cindy Yoel Tanesia, Joline Boersma

I. South Korea
South Korea is a country located in the southern part of Korean peninsula. The population is 48,955,203 people (July 2013 est.) which make South Korea to be the 25th largest country in terms of population despite the relatively small area of the land. This paper will compare two cities in South Korea, Seoul and Busan, in terms of different in culture and how it affects the consumer behavior of the people living in the related cities. But, first of all, let’s see the general culture of people in South Korea:
1. Homogeneous
There is a term of ‘hanminjok’ (한민족) in South Korea which literally means South Korean race. This term is used to describe that South Korean actually prefer to not mix their race with other races through international marriage because they afraid that they eventually will not have the pure Korean race anymore. However, the diplomatic relationship between USA and South Korea where USA helps South Korea for the military made USA military base established in some parts of South Korea actually opened the opportunity for more people from USA to come and stay in South Korea and eventually have their own family in South Korea which contributes to the increase in the international marriage in South Korea, especially in Seoul.
2. Importance of education
Education plays important part for South Korean in almost every aspect. Approximately 70% of high-school graduates continue to college or university which resulting in the higher standard for companies to hire their employees because university graduate is already a common requirement. Young people in South Korea have obligation to pursue their study until at least undergraduate level in order to survive in the society. This fact actually increased the

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