08_Syn 07/09/2001 12:03 pm Page 235 (Black plate)

Japanese Psychological Research Invited Paper

2001, Volume 43, No. 4, 235–248
Special Issue: Consumer behavior

Understanding Japanese consumers:

Some important underlying factors

NICOLAOS E. SYNODINOS
Department of Marketing, University of Hawaii at Manoa, Honolulu, Hawaii
96822, USA

Abstract: This article reviews existing findings and outlines some general points that need to
be considered when trying to understand Japanese consumer behavior. In addition to various
psychological variables, researchers need to attend to a set of unique sociocultural factors.
Among the factors considered are Japan’s setting, population density, economic prosperity,
modernization, homogeneity, and group orientation. Other issues that are raised are the
implications of a well informed society, and the importance of both age and aesthetic values.
The article also discusses risk aversion, eclecticism, lack of time and space, the importance of
quality and image to the Japanese, and recent changes as they affect consumer behavior. In
addition to universals, there are some unique factors that should be considered in order to
understand Japanese consumer behavior, much as, undoubtedly, another set of unique
features should be considered for the study of any other society.
Key words: consumer behavior, culture, Japanese.

The Japanese consumer market is very attract-
ive to both domestic and foreign companies
because of its tremendous potential. Yet
despite its importance, the Japanese market
has been characterized as an enigma to most
foreign observers (Fields, Katahira, Wind, &
Gunther, 2000), and it has even been suggested
that it “is the most difficult market in the world
in which to succeed” (Ariga, 1990, p. 91). It has
also been suggested that very few foreign
products are ready for entry into the Japanese
market (Melville, 1999). Indeed, over the
years there have been spectacular examples
of commercial failures along with the
successes.
Information from a variety of sources must
be considered in order to understand consumer
behavior. In addition to various psychological
variables, researchers need to attend to a set of
unique cultural/societal factors that operate in
a particular context. This article points out
some of the important factors that need to be
considered when attempting to understand the
Japanese market and the psychology of the
Japanese consumers. The aspects that are dis-
cussed here are in addition to some of the indi-
vidual difference factors (gender, age, ability,
place of residence, education, income, etc.) that
underlie the uniqueness of any individual
consumer. Also, it should be pointed at the
outset that this article is eclectic and points
to some of the important sociocultural fac-
tors; it is beyond its scope to attempt an
all-encompassing framework. Undoubtedly,
the factors discussed herein influence to
some degree various consumption behaviors,
and appreciating their importance will assist
researchers in their study of Japanese con-
sumers. Understanding these critical factors
is a necessary – although not a sufficient –
condition for the development of theoretical
frameworks of Japanese consumer behavior.
In addition, pinpointing some of the important
variables affecting Japanese consumption can
broaden researchers’ understanding of con-
sumer behavior in general, and its application

© 2001 Japanese Psychological Association. Published by Blackwell Publishers Ltd, 108 Cowley Road,
Oxford OX4 1JF, UK and 350 Main Street, Malden, MA 02148, USA.
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236 N. E. Synodinos
in their own unique societal situations in
different parts of the world.
When dealing with widely divergent cultures,
consumers may behave sufficiently differently
to necessitate the adaptation of theories
developed solely in one cultural context
(Schütte & Ciarlante, 1998). Triandis (1990)
pointed out that almost all of the empirical
psychological findings have been collected
from individualistic cultures. Similarly, con-
sumer behavior as an academic field of study
developed and flourished largely in a North
American and Western European milieu in the
last 40 or so years. Thus, it views consumer
behavior almost exclusively from an indi-
vidualistic framework. As Tse (1996) correctly
pointed out, the things that consumers from
collective societies search for in their purchases
and their behavior in market systems can be
fundamentally different from those found
in individualistic societies, and so warrant
“systematic and comprehensive research
efforts” (p. 352).
For a plethora of reasons, it is important to
understand Japanese consumer behavior. This
can be accomplished by attending “to the
important invisible culture rooted in Japanese
values, mores, attitudes, opinion, motivations
and perceptions” (Lazer, 1985, p. 36). It has
been suggested that many fail to study the
Japanese market adequately (Melville, 1999).
Examples of this failure can be found in the
marketing of certain foreign products in Japan
and in businesses that cater to Japanese con-
sumers in other contexts (e.g., tourist destina-
tions, electronic commerce and mail order
across national boundaries).
Japanese consumer society developed
relatively recently, starting in the 1960s, and it
is marked by the transition from need to desire.
Indeed, this transition represents a funda-
mental shift in Japanese society (Clammer,
1997). Historically, Confucian cultures have
generally denounced excessive consumption,
and have restricted consumption to what is
pertinent to a particular person’s life circum-
stances (Tse, 1996; Yoshino, 1975).
Melville (1999) pointed out that two critical
problems permeate Western studies of
© Japanese Psychological Association 2001.
Japanese business. The first is the rarity of such
studies. The second is the lack of appreciation
that Japanese business should be viewed as
fundamentally a cultural rather than simply an
economic issue. Therefore, in order to under-
stand Japanese consumers, we need to consider
the underlying psychological factors which
have developed within that particular context
(historical, cultural). Indeed, consumers reflect
their cultural conditioning in many of their
behaviors. At the same time, some behaviors
may be incorrectly attributed to culture when
they are simply due to the existing marketing
structure (Fields et al., 2000).
The Japanese setting
Japan’s area is 378,000 km2 (Statistics Bureau,
2000). It is a little smaller than California but a
little larger than Germany. Japan’s area is small
when compared with that of the USA but it is
much larger than most European nations. For
example, Japan is about three times larger than
Greece. Japan is a “narrow” island nation that
spans several climatic zones from north
(latitude 45o) to south (latitude 30o). From that
fact alone, it is important not to neglect the
regional differences that exist, and that are
reflected in the needs and behaviors of
Japanese consumers.
Japan has meager raw material resources
and relies on imports to drive its industrial
base. Given this dependence for certain foods
and raw materials, it has been suggested that
Japan can be viewed as being “addicted” to
certain imports which cater to consumption
needs that cannot be fulfilled by domestic
products and services (March, 1991).
Japan has an excellent infrastructure based
on “Western” principles that started during the
Meiji restoration. Its distribution system has
been criticized by some as inefficient but it is
nevertheless well developed and its ability to
restock stores is legendary.
Population density
Japan’s population was 126.7 million in 1999,
which indicates an increase of only about
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Understanding Japanese consumers
10 million during the last two decades
(Statistics Bureau, 2000). Compared with other
countries, Japan was (in 1998) the eighth most
populous in the world (Statistics Bureau, 2000).
In 1999, its population density was 340 persons
per km2, which is about equal to that of
Belgium and about 11 times greater than
that of the USA (Statistics Bureau, 2000).
According to projections, the Japanese popu-
lation will increase by about 1 million by the
year 2010, and by 2050 it will have declined
to a total of 100 million, which corresponds
to a density of 270 persons per km2 (Statistics
Bureau, 2000).
Only about a quarter of the land area of
Japan consists of plateaus and lowlands
(Statistics Bureau, 2000). Thus, the population
tends to be highly concentrated. Approximately
42 million Japanese (50% of the country’s
population) lived in urban areas in 1950, but by
1975 this number reached 84 million, making
up 76% of the country’s population (United
Nations, 1998). Since that time, the rate of
increase has slowed considerably. In 1995, 98
million (78% of the country’s population) were
urban dwellers; it is projected that, by 2030,
the number of urban dwellers will reach 101
million, or about 85% of Japan’s decreasing
total population (United Nations, 1998).
Approximately 44% (in 1995) of Japan’s
population lived within 50 km of the center of
each of the three major metropolitan areas of
Tokyo, Osaka, and Nagoya (Statistics Bureau,
2000). The population density of these three
metropolitan areas (and especially Tokyo) is
very high compared with the rest of the
country. For instance, the density at the ward
part of Tokyo was 12,706 persons per km2 in
1999 (Statistics Bureau, 2000). Currently,
greater Tokyo is the world’s most populous
city: Tokyo’s urban agglomeration has been
estimated to have 28 million people (in 2000),
followed by the Mexico City agglomeration as
a distant second with 18.1 million (United
Nations, 1998). Tokyo has been the world’s
most populous city since 1970, when it had
about 16.5 million inhabitants. It is projected
that by 2015 it will have a population of
28.9 million, with Bombay being a close second
237
with 26.2 million persons (United Nations,
1998).
The concentration of the population leads to
a concentration of employment opportunities,
entertainment, products, and services. A
quarter of a century ago, Yoshino (1975)
observed that purchasing power was con-
centrated in the large metropolitan areas. This
continues to be the case. For example, in the
fiscal year 1997, the per capita annual income
of the prefectures was highest for Tokyo, at
4.34 million yen, and lowest for Okinawa, at
2.16 million yen (Asahi Shimbun, 2000). The
highly concentrated population, coupled with
the desire to shop frequently and close to
home, has created many shopping outlets that
are not really in direct competition with one
another. Indeed, large Japanese cities have
multiple “downtowns” centered at major
transportation hubs.
Ariga (1990) discussed various marketing
implications of the highly concentrated popu-
lation. It has long been known (Yoshino, 1975)
that increases in expenditures for Western
foods, furniture, and architectural styles have
been much higher among urban dwellers. Also,
in large urban areas people can remain largely
anonymous. Thus, status symbols become
important because they can “offer a way to lay
claim to a higher status than would be justified
based on performance alone” (Belk & Pollay,
1985, p. 38).
Metropolitan areas, such as Tokyo, attract
many young trendsetters. Consequently, some
specifically chosen geographic locations are
used to bring products to the attention of a
large number of persons. According to Ariga
(1990), certain companies establish what he
termed “antenna shops.” He pointed out that
their main purpose is to gauge trends in
consumer values and lifestyles that in turn can
be used to assist in product development.
Various negative effects can be attributed
to the high crowding that is commonly
encountered in many shopping districts of large
Japanese cities. At the same time, crowds are
not always an annoyance, as they can round up
the shopping experience by “providing the
requisite background of noise, energy and
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238
sense of something happening” (Clammer,
1997, p. 47).
Economic prosperity
The postwar period has been characterized by
relative political stability, peace, and economic
prosperity. Since the end of the Second World
War, Japan has undergone profound societal
changes that in turn have influenced various
consumer-related behaviors. In addition, some
of the environmental costs (noise, air pollution,
water pollution) of rapid industrialization and
growth are becoming increasingly apparent.
Following some difficult years after the war,
the Japanese economy grew very rapidly. In
fact, this economic success – known as the
“Japanese miracle” – was instrumental in the
development of the new Japanese consumer
with increasing purchasing power. The eco-
nomic growth was achieved in a relatively short
time and Japan’s current prosperity (notwith-
standing the long lingering economic downturn
of the last 10 or so years) rivals that of the most
economically advanced nations. As a result of
this prosperity, consumers became more willing
to make major (and minor) purchases. Indeed,
the increasing prosperity of the 1960s and early
1970s created a Japanese mass market very
rapidly (Yoshino, 1975).
The economic prosperity allowed Japanese
consumers to travel abroad in large numbers.
In 1970, the number of Japanese traveling
abroad was only about 663,000, but it has
grown steadily and since 1995 it has been
between 15 and 16 million annually (Asahi
Shimbun, 2000).
Travel to foreign countries, coupled with the
economic ability to purchase various goods and
services, had a tremendous impact on Japanese
consumers. Their exposure to various un-
familiar products and brands created demand
for these upon returning to Japan. Consumers
are thus more receptive to foreign products
than they were in the past. Travel contributed
to the creation of international tastes, and
increased the familiarity of Japanese con-
sumers with the availability of certain products
and their prices. Advances in transportation
© Japanese Psychological Association 2001.
N. E. Synodinos
have created more mobile consumers, who are
traveling more frequently within the country
(e.g., with increasingly faster trains) and abroad.
In addition, recent advances in electronic com-
munications have provided more ready access
to some information and make it more prac-
tical to maintain close relationships with friends
and relatives in other parts of the world.
Generally, the Japanese can be characterized
as being “product literate” consumers. Japanese
visitors to Hawaii are frequently seen intently
perusing various product/service information
publications that they have studied carefully
before their departure from Japan. Inciden-
tally, it has been suggested that individualism
increases by being exposed to other cultures
(Triandis, 1989).
Compared with the USA, the effects of
immigrants on Japanese consumer behaviors
are relatively small. In 1998, the total number
of registered foreigners was 1.15 million, which
is less than 1% of Japan’s population (JETRO,
2000).
From the early 1990s, the Japanese economy
slowed substantially. Consumption expendi-
tures from the middle to the late 1990s (for
salaried workers’ households) were stable or
decreasing (Asahi Shimbun, 2000). Interest-
ingly, the average debts of salaried workers’
households, as well as their average savings,
increased (Asahi Shimbun, 2000).
Japanese consumers have a high propensity
to save. In 1998, the average household savings
rate was 13.4% (Asahi Shimbun, 2000). The
rate of savings by the Japanese is similar to that
of Italians (13.6%) and vastly different from
the US rate of 0.5% (Asahi Shimbun, 2000).
The underlying reasons for the high rate of
savings among Japanese consumers may stem
from Confucian values as well as various
practical considerations, such as savings for
education, for housing, for emergencies, and
for retirement.
Three other important economic factors need
to be considered in the study of Japanese con-
sumption. First, employment bonuses are
customarily given twice a year, and have tre-
mendous effects on Japanese consumption pat-
terns of certain high-cost items (e.g., expensive
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Understanding Japanese consumers
durables, travel). Second, Japanese society
still remains a cash society. Third, household
finances are almost totally controlled by
women.
Modernization
Early in its history, Japan was mostly
influenced by its close mainland neighbors,
namely China and Korea. During the Meiji
restoration period (starting in 1868), the
influence was primarily Western. European
influence was especially strong in the late 19th
and early 20th century. American culture was
“imported” with the occupation forces after
the Second World War, and its influence on
Japan was pervasive during the second half of
the 20th century.
“Americanization” in terms of a quest for
convenience has been a profound consumer
trend in Japan for several decades (Hori, 1998).
Nevertheless, the introduction of certain West-
ern products, concepts, and technologies does
not imply that Japan has been Westernized
(Lazer, 1985). That is, “changes wrought in
manners and consumption patterns may be
misleading if projected to basic values” (Fields,
1983, p. 14). Put differently, a Japanese person
is not necessarily “Westernized” simply because
she/he eats hamburgers and, similarly, a New
Yorker consuming sushi is not necessarily
“Easternized” (Fields, 1983).
Japan’s modernization occurred in a rela-
tively short period. Also, it is important to note
that there are consequential differences in the
process of modernization of Japan compared
with that of Western countries (Schütte &
Ciarlante, 1998). The most typical order of
modernization stages in the West progressed
from cultural to societal to political to eco-
nomic, whereas in Japan the reverse is true
(Schütte & Ciarlante, 1998).
Homogeneity
The Japanese share a single language, cultural
heritage, and national origin. Thus, Japanese
consumers have many shared meanings, and
are relatively homogeneous compared with
239
the populations of many other countries. As
Larke (1994) pointed out, “compared to the
West, income, education, spending and indi-
vidual social awareness are surprisingly uni-
form” (p. 42). Nevertheless, there is substantial
variability, which cannot be ignored. Thus, in
many instances, it is inappropriate to market
to Japan as if it were a mass market, without
appropriate segmentation (Sasaki, 1995).
Homogeneity is the result of various factors,
such as being an island nation that has never
been occupied by foreigners (other than the
seven-year period following the end of the
Second World War), and from its self-imposed
isolation from the early 17th to the middle of
the 19th century. This should not be construed
to imply that the Japanese were not influenced
by outside forces even at the times of “isolation.”
As Meow (1989) noted, “even during the
enforced period of seclusion, the Tokugawa
shogunate had more knowledge of the west
than vice-versa” (p. 12). Two other important
factors contribute to the homogeneity of Japan.
One is Japan’s uniform education system
(Sakaiya, 1993), and the other is the Japanese
mass media (Reischauer & Jansen, 1995).
Income differentials in Japan are smaller
than in many other countries (Okahashi, Gary,
& Cornish-Ward, 1998). Actually, “one of the
most significant aspects of the postwar eco-
nomic growth is the fact that its benefits have
been widely distributed” (Yoshino, 1975, p. 8).
Indeed, most Japanese consider that they are in
the middle of the middle class (Schütte &
Ciarlante, 1998), and this is an important
guiding factor in their consumption choices.
The homogeneity of the market can also be
viewed as a consequence of the relatively
smaller range in the purchasing power of
Japanese consumers. In addition, the homo-
geneity can be seen in the numerous “me too”
products that are offered to Japanese con-
sumers, and that capitalize on almost indiscern-
ible differences between them.
Collectivism
Individualism-collectivism is one of the major
dimensions of cultural differences between
© Japanese Psychological Association 2001.
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240 N. E. Synodinos
Western and Eastern societies (Hofstede, 1980;
Triandis, 1990). The Japanese have been char-
acterized as group oriented, where cooperation
and loyalty to the group are greatly valued. In
this context, an individual may sacrifice the
personal for the good of the group. This
orientation may have its roots partly in the
Confucian culture and in the cooperation
among individuals that was necessary for rice
cultivation. Conformity to group norms is an
important characteristic of collectivist cultures.
Japanese conformity has been traced to histor-
ical factors such as the strict laws enacted during
the Tokugawa Shogunate, the militarism before
the Second World War, and the austerity that
followed that war (Clammer, 1997).
In Japan, the establishment of trust is an
important goal that guides relationships with
others in personal, business, and consumer
interactions. It is important to maintain rela-
tionships and to allow for “face saving.” Thus,
the Japanese are polite and willing to listen to
others in order to build a consensus. In their
personal and business dealings, most Japanese
prefer to find a compromise that is acceptable
to all parties involved. For instance, companies
are like extended families, and unresolved
disputes that lead to strikes are a rarity. The
willingness to compromise may be one of the
reasons for the relatively small number of
lawyers in Japan. The importance of social
bonds and loyalty to the group can be seen in
the value attached to established relationships
in business dealings. The group orientation is
also evident in the blurred lines between
business and personal relationships that are
commonly encountered in Japan. Japan’s col-
lectivist nature can be seen in the lifetime
employment system of some companies, and
the largely seniority pay system.
Generally, many Japanese strive to belong,
and are reluctant to take positions or exhibit
behaviors that make them stand out. In
consumer behavior, it has been postulated that
the Japanese are especially prone to faddism
(Schütte & Ciarlante, 1998). Reluctance to be
different is manifested in the speed of
appearance and disappearance of new fads. It
has been pointed out that “group acceptance of
© Japanese Psychological Association 2001.
the company and its brands determines whether
or not the products will be accepted in the
marketplace” (Schmitt & Pan, 1994,
pp. 44–45). In Japan, products diffuse at faster
rates, leading to steeper slopes in product life-
cycle curves (Johansson & Nonaka, 1996).
Group orientation implies adherence to
appropriate social roles. Consumption may
consist of the acquisition of appropriate – as
dictated by group norms – products for the
occasion. The choice of clothes is an example
where there are clearly “prescribed” attires for
business, sports, and weddings (Clammer,
1997). The tendency to adhere to group norms
is also evident among young people. Even
what, at first sight, appears as a unique teenage
fashion may be simply a trend of that particular
group. This may stem from group-orientated
internalized values that stress the importance
of not deviating from group norms and keeping
up certain appearances. In many respects,
Japan “tends to be a formulaic society, and this
is itself reflected in the nature of consumption
– the availability of (and often there is no
choice) prepackaged, coded and standardized
items” (Clammer, 1997, p. 11).
Harmony (wa) is valued, and the quest for
group harmony stresses the great importance
of striving for stability. This quest can imply
that certain conspicuously consumed products
reflect consumption governed by a desire
to be harmonious with the reference group.
Japanese consumers may express preferences
ambiguously and indirectly. This probably
reflects a society that has many shared mean-
ings and that greatly values the preservation of
harmony. Displeasure with a product or service
may be expressed indirectly, and the provider
must infer it. As has been pointed out else-
where, “Asians are less likely to complain when
they receive defective products or inappro-
priate service; instead they change companies
and products silently” (Schmitt & Pan, 1994,
p. 44). This has tremendous implications for
foreigners doing business in Japan, and for
locales patronized by Japanese nationals (e.g.,
Hawaii’s tourist industry).
Social obligations and reciprocity are
important in group-oriented societies. This
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Understanding Japanese consumers 241

importance is underlined by the large amounts Informed

that Japanese companies spend on business
Education is highly valued in Japan, and the
entertainment. However, this has been chan-
Japanese consumers spend substantial amounts
ging as a result of the recession and ethical
on various educational activities. In fact, the
concerns. Another important manifestation of
high savings rate has been attributed in part
social obligations is gift giving, which, by its
to the need to have large amounts in reserve
reciprocal nature, serves to initiate and main-
for different learning experiences (Clammer,
tain social relationships. Gift giving takes place
1997). In Japan, education is compulsory up to
at certain seasons and can be viewed as an
the ninth grade. However, the number of
obligatory part of Japanese life. In addition
persons attending senior high school (i.e.,
to the traditional Japanese gift giving seasons,
grades 10–12) has been about 95% during the
several Western occasions for gift giving have
last decade (Asahi Shimbun, 2000). In fact,
also become increasingly popular (Inoue,
Japan has one of the highest literacy rates in
1996). Gifts are exchanged between indi-
the world.
viduals, households, and businesses. It has
Generally, Japanese individuals as well as
been asserted (Melville, 1999) that, at least
organizations have been characterized as
before the current recession, gifts accounted
insatiable information seekers (Melville, 1999).
for a large portion of the sales of prestigious
Johansson and Nonaka (1996) noted that the
stores. By its sheer magnitude, gift giving
Japanese usually amass all the available pertin-
should be an important topic of investi-
ent information in order to minimize risks.
gation within the field of Japanese consumer
Importantly, information is a driver of con-
behavior.
sumption (Clammer, 1997).
A long-term perspective is manifested in
Japan has five major national newspapers,
many aspects of Japanese life, including
with readerships among the highest in the
consumer behavior. For example, in customer
world. For the period July to December 1999,
relations – as in other aspects of Japanese
their daily combined (morning plus evening
life – the emphasis is on long-term relation-
edition) circulation ranged from about 3 mil-
ships between buyers and sellers. Thus,
lion for Sankei Shimbun to about 14.5 million
salespersons tend to be less pushy and place
for Yomiuri Shimbun (Asahi Shimbun, 2000).
great emphasis on the after-sales service to
Coverage by the traditional mass media
keep customers satisfied. As a result, customer
(magazines, radio, television) is also very high.
loyalty is high. Indeed, many large-ticket items
In addition, the number of Internet users
(e.g., automobiles) are sold to existing
has been increasing steadily (Nihon Keizai
customers (Melville, 1999).
Shimbun, 2000). As a result, new consumer
Group orientation is still an important
styles appear in the trendy areas of Tokyo, and
characteristic of Japanese behavior, although in
are very quickly diffused in the whole country
recent years there has been a gradual move
via the media.
toward individualism. The clash between indi-
vidualism and the group can be seen in young
adults who strive to be unique and at the same
Age
time conform to their group. Johansson and
Nonaka (1996) pointed out that affluent In Japan there is a genuine respect for older
consumers are more likely to gravitate towards persons, and one of the national holidays
individualism. This is in agreement with the (September 15) is the Keiro-no-hi (Respect for
assertion of Triandis (1990) that an important the Aged Day). For example, the portrayal of
factor that can create the shift towards older persons in advertisements is generally
individualism is affluence. Thus, Japan’s eco- very positive.
nomic miracle can be seen as contributing to a Age is an important determinant of con-
move towards individualism. sumption. In Western societies it is a variable

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242
commonly used for market segmentation. The
importance of this variable is even greater in
Japan, because many aspects of Japanese life
are determined by age, and expected to occur
with a pattern of regularity. Given the
largely age-based salaries and occupational
advancement, the purchasing power of con-
sumers is very closely tied to age.
Aesthetic values
Aesthetic values have been stressed in
Japanese culture. The importance of these
values and the striving for perfection can be
seen in Japanese gardens, in flower arrange-
ments, in food presentation at restaurants, in
the wrapping of gifts, and in many other
aspects of everyday life.
The aesthetic appearance of products is
therefore critical, and a great deal of attention
is given to it. For example, fresh produce with
minor (mostly cosmetic) blemishes will sell
at vastly lower prices than the “perfect”
specimen. Tse (1996), summarizing some of his
studies, noted that Japanese (and Korean)
consumers placed more emphasis on aesthetic
concerns for both food and appliance pur-
chases than Chinese consumers.
Leisure
Traditionally, the Japanese had a negative
attitude towards leisure. Even now, many
persons do not take all their allotted holidays.
This may stem from various causes, such as a
genuine sense of feeling indispensable to the
company, or an unwillingness to burden the
other members of the group while pursuing
leisure activities. Schütte and Ciarlante (1998)
point out that the Japanese are more willing
to take time off at official holidays, as at
these times they are not burdening others.
Generally, the Japanese take short vacations
that coincide with New Year, Golden Week,
and Obon. The typical aversion towards unique-
ness may be one of the factors responsible for
the popularity of organized (package) tours.
Over the years, the number of hours worked
has steadily declined (Japan Institute of Labor,
© Japanese Psychological Association 2001.
N. E. Synodinos
2000). The changes in the amount of work and
the increasing number of retired people are
creating demand for leisure-related products
and services. Another major factor – until the
bursting of the economic bubble – contributing
to the pursuit of leisure activities was the
growth of Japanese incomes. Ariga (1990)
stressed the increasing importance of leisure
activities in Japanese life. In addition, there has
been “an influx of foreign leisure products that
produced a thriving market through the 1990s”
(Melville, 1999, p. 85). Generally, the amount
spent on leisure as a proportion of total
household budgets has increased, and it is
especially noticeable among unmarried young
women (Clammer, 1997).
Risk aversion
Japanese consumers are generally more risk
averse than their counterparts in the West
(Fields et al., 2000; Melville, 1999). On
Hofstede’s Uncertainty Avoidance Index, the
Japanese had one of the highest scores of all
the societies that were studied (Hofstede,
1980). Long-established relationships (in
personal, business, and consumer interactions)
may reflect a desire to avoid risks. In cultures
high in uncertainty avoidance, individuals are
less tolerant of ambiguity and establish “more
formal rules, rejecting deviant ideas and
behaviour” (Hoecklin, 1995, p. 31).
The construct of risk aversion has many
implications for consumer behavior. For
example, Japanese consumers are more likely
to be willing to pay a higher price for a known
brand because of its assured level of quality
and subsequent service. That does not imply
that price is unimportant; rather it emphasizes
that price is just one of the factors that has to
be considered. Of course, it is also important to
examine risk taking relative to the personal
wealth of the consumers involved (Tse, 1996).
It has been suggested (Fields et al., 2000)
that the risk averse Japanese consumers are
likely to be receptive to different types of
appeals for financial services. That is, promises
“of wind-fall profits or get-rich-quick pro-
posals are much more likely to fall upon deaf
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Understanding Japanese consumers
ears than more conservative propositions”
(p. 45).
Eclecticism
Throughout history, the Japanese have been
very eclectic in their selection and adaptation
of foreign elements into their own culture
(Ariga, 1990; Fields, 1983; Sakaiya, 1993;
Yoshino, 1975). They have been able to
adapt foreign concepts to create their own
unique Japanese versions. In fact, in this selec-
tion and adaptation process, the Japanese have
shown a remarkable ability to accept systems in
part rather than in their totality (Sakaiya,
1993).
Lack of time
Despite recent changes, many Japanese have
relatively little free time, and this has a sub-
stantial socio-psychological burden. Tradition-
ally, the average number of hours at work has
been high, but this number has been decreasing
(Japan Institute of Labor, 2000). When the long
commuting of most urban dwellers and the
“compulsory” after-work socializing are factored
into the equation, many Japanese spend large
amounts of time away from home.
The long commuting by public transport
leads to higher levels of consumption of vari-
ous reading materials, including manga (illus-
trated comic books). According to Fields (1983),
some persons have asserted that among work-
ing persons the long and crowded commuting
has contributed to lower consumption of
traditional Japanese breakfast and a commen-
surate increase in alternative foods.
The short amount of free time points to
the importance of certain time-saving products
and services, and to the value attached to con-
venience in shopping. Indeed, retailers handle
the delivery of certain products (e.g., gifts),
thus providing a useful and necessary service
for consumers who are short of time. In some
instances, a pre-purchase search is difficult
because of lack of time. Also, for many pro-
ducts it is important to provide everything
needed with one-stop shopping. For example,
243
Melville (1999) points out that a do-it-yourself
product should include all the required tools
for assembly, thus averting the possible need
for additional trips to obtain these.
Lack of space
Japan’s high population density implies that
space, especially in urban areas, is limited.
Japanese homes are generally small, and privacy
is limited within and sometimes between house-
holds. Based on a 1993 survey, the average
floor area of non-owner dwellings in the Tokyo-
Yokohama-Chiba area was 72.8 m2, which is
considerably smaller than the Japanese national
average of 92.6 m2 (International Society for
Educational Information, 1996). The per capita
dwelling space in Japan is approximately half
that in the USA (Asahi Shimbun, 2000).
The lack of space can diminish the im-
portance of ownership and possession of
certain material goods; instead, it can lead to a
quest for (the luxury) experience. Thus,
consumption of “luxurious high-priced goods
and services is directed not so much at
ownership, but more at the feeling of wealth
and affluence that this consumption gives”
(Ariga, 1990, p. 89). For many products (e.g.,
household appliances, cars) miniaturization is a
very important consideration (Schütte &
Ciarlante, 1998).
The lack of space in general and of storage
space in particular has other important
implications for consumer behavior. For
example, frozen food is mostly consumed the
day it is purchased (Fields, 1983). Also, it has
been pointed out (Fields, 1983) that Japan is a
smaller market for furniture polish and a larger
market for laundry detergent than the USA.
Some products are bought with different con-
siderations in mind. For example, consumers in
the USA use Tupperware for food preserva-
tion, whereas the Japanese use it mostly for
efficient utilization of space (Fields, 1983).
Lack of space is also a problem for retailers.
The impracticality of holding large stock has
led to JIT (just-in-time) delivery, and elaborate
systems to keep track of inventories and
replenish stock as needed.
© Japanese Psychological Association 2001.
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244
Lack of space is one of the reasons for
shopping near home and frequently. Another
reason is that large stores have been
traditionally restricted in their hours of
operation, although this changed somewhat
after recent revisions to the Large Scale
Retail Law. In almost all neighborhoods,
there are numerous nearby small stores. In
fact, there are more retailers in Japan per
person than in the USA; thus fewer persons
are served per retailer (Czinkota, 1985). It has
been noted that the Japanese do not
frequently use shopping lists, since grocery
shopping is frequent and many of the choices
are dictated by the freshness of the available
produce.
Shopping near the home contributes to the
establishment of all-important social relations.
Also, it suits Japan’s aging population. Buying
from a local vendor may cost more but the
consumer can be assured of prompt post-
purchase service at almost all times of day and
night (Fields, 1983). Unfortunately, the price
paid for convenience includes visual and noise
pollution, as zoning (as it is known in the USA)
is largely absent. The hours at work and
the relatively long commuting distances (of
those living in Japan’s large metropolitan
areas) have implications for shopping behavior
and dictate appropriate store locations around
transportation hubs.
The practical difficulties associated with
transporting purchased goods in public
transportation contribute to the attractiveness
of shopping near home. These difficulties
have contributed to the booming business of
delivery services. Also, heavy products – such
as beer and sodas – are delivered usually by
nearby merchants to the households, and this
constitutes an important part of their service to
their customers (Fields, 1983).
Product/service quality
Japanese consumers have been characterized
as extremely demanding because of the
importance they attach to product quality and
their insistence on a close match between their
need and the specific product (Czinkota, 1985;
© Japanese Psychological Association 2001.
N. E. Synodinos
JETRO, 1988). The quality of products and
services in Japan is usually uniformly high, and
extends from small- to large-ticket items. For
example, when purchasing a carton of eggs, it is
unnecessary to check them – as consumers
usually do in the USA – because none are
broken. The consistently high quality can lead
to high levels of customer satisfaction. In
manufacturing, many foreign companies try to
imitate the exacting Japanese industrial
standards. Tse (1996), in summarizing some of
his studies in the area of product performance,
noted that among the groups he had studied
(Chinese, Japanese, Korean, U.S. consumers)
the dimension of quality was most important
among Japanese and Koreans, followed by
Chinese and then by U.S. consumers. In many
circumstances, it appears that Westerners are
typically more likely to accept the price/quality
compromise.
Aesthetically pleasing features are a part of
the quality expected by Japanese consumers. It
has been suggested that, when something is
judged visually, the tendency of Westerners
is to “focus on the functional symmetry or
convenience of its features, but they must
broaden their idea of quality to apply more to
aesthetics” (Melville, 1999, p. 134). Moreover,
creating a user-friendly product is part of what
is considered “quality” by Japanese consumers
(Melville, 1999). As Melville points out, a
technologically impeccable product would not
be considered a quality product if the
consumer had difficulty operating it. In other
words, the “blame” is not placed on the
consumer but on the product that has failed
adequately to consider its user’s capabilities.
Generally, customers are always treated with
extreme courtesy and respect. In Japanese, a
customer is called okyaku sama, which literally
means “guest.” In Japan, customers are treated
as human beings rather than as just another
sale. Even in purchasing gasoline, customers
receive an extraordinary high level of service
by the station’s attendants (Melville, 1999). In
fact, the word saabisu has an additional con-
notation compared with its English equivalent,
“service.” For example, at certain instances a
restaurant offers its customers something for
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Understanding Japanese consumers
free (e.g., a drink, an appetizer, a dessert) and
when it is given the server calls it saabisu.
The expectation of quality leads to a quest
for reliable products and services. Obtaining
high-quality products and services seems to be
an important consideration of the Japanese
when they travel to foreign countries. Thus,
visitor destinations that cater to the Japanese
should aim to provide very high service levels
in order to meet their expectations.
In the past, Japanese prices were uniform
and high, which provided high profit margins
for producers. Until recently, there was
relatively little price competition. It has been
pointed out that until the 1980s Japanese
manufacturers had a great deal of control over
their distributors and avoided price compe-
tition, preferring to gain customers “by offer-
ing products of superior quality, with more
advanced product features and a higher brand
image” (Schütte & Ciarlante, 1998, p. 167).
Thus, the Japanese approach to competition
has been characterized as “product focus, not
price focus” (Johansson & Nonaka, 1996,
p. 109).
Another reason for the relative lack of
price slashing was that generally Japanese
“customers interpret a price cut to mean that
the product is having trouble selling” (Melville,
1999, p. 222). As Clammer (1997) aptly
observed, “in the UK people will boast about
the cheapness of something they have
purchased, in Japan about its expense” (p. 24).
However, views on price are changing as
consumers have become more price conscious
(do Rosario, 1993). Important agents of this
change have been: the burst of the Japanese
bubble in the early 1990s; the deregulation and
the increasing number of foreign entrants
and discount outlets in the market; and the
increasing knowledge of Japanese consumers
about prices in other parts of the world. On the
negative side, the increased price competition
has led to some deterioration in the treat-
ment of consumers by Japanese companies
(Johansson & Nonaka, 1996). Fields et al. (2000)
suggest there is a fundamental shift occurring
that is creating the “new” Japanese consumer.
They suggest that some of the characteristics of
245
the “new” consumer include the willingness to
search for a better deal, to experiment with
products, and to be different from others.
Image
The Japanese have been characterized as
image-conscious consumers (Ariga, 1990;
Clammer, 1997; Kato & Kato, 1992; Melville,
1999). Consequently, it has been stressed that a
product may be “the best product in the world,
but unless it projects the correct image, it is not
likely to succeed” (Ariga, 1990, p. 88). Accord-
ing to Melville (1999), even in the height of the
recession two-thirds of the worldwide brand
label sales were in Japan.
For image-conscious consumers, an import-
ant consideration is the quest of status and
prestige items. Consequently, Japanese con-
sumers “attach importance to what the owner-
ship of a given product signifies to others”
(Ariga, 1990, p. 88). Also, it has been stressed
that the store where a gift was purchased can
be as reflective as the product itself (Ariga,
1990). Incidentally, it has been reported that
status appeals in Japanese advertising increased
dramatically from the late 1950s to the early
1980s and coincided with economic growth
factors (Belk & Pollay, 1985).
Recent changes
The economic problems of the 1990s had
profound effects on Japanese consumer behav-
ior. For example, price became increasingly
important, and consumers “started to look
seriously at the products themselves rather
than at the brands” (Melville, 1999, p. 222). As
discounting continues, it is likely that Japanese
consumers will be more willing to sacrifice
quality and/or after-sales service. In the last
five or so years, unemployment reached all-time
highs, but even now by historical European and
American standards it is still low (Japan
Institute of Labor, 2000). Also, over the years
there have been changes in various business
regulations. For example, spurred by financial
deregulation, a large number of foreign
financial institutions entered the Japanese
© Japanese Psychological Association 2001.
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246
market (Fields et al., 2000). The economic crisis
had many negative consequences in some
consumption behaviors but at the same time it
has presented many marketing opportunities.
Many facets of life have been influenced by
various worldwide changes, such as easily
accessible information and communication.
The Internet provides a tremendous oppor-
tunity to communicate, and it can be used
effectively for direct marketing. The global
media and communications had an impact on
some forms of consumer preferences, which led
to globalized consumer tastes in some instances.
However, it is probably more appropriate to
view “global products” as “being pushed upon
consumers because of the desire of companies
to capture savings through economies of scale
and standardisation, rather than pulled by
consumers” (Schütte & Ciarlante, 1998, p. 194).
Recent technologies have accelerated the
pace of change in many domains of human
existence, and can lead to a clash between the
old and the new ways. An important impli-
cation for consumer behavior is that “the rapid
pace of change makes it all the more difficult
for businesses to use marketing tools that were
successful in other countries and even in Japan
a few years ago” (Ariga, 1990, p. 85).
Attitudes towards marriage, childbirth, family
life, and work have been changing. There is a
general trend for postponement of marriage,
and the average age at first childbirth has
increased. For example, over the last three
decades the mean age at first marriage for
women increased by about three years and in
1998 it reached 27.7 years (Asahi Shimbun,
2000).
Dramatic changes have occurred in the
number of women attending university: the
proportion of females advancing to university
was 15.2% in 1990, which had almost doubled
to 29.4% in 1999 (Asahi Shimbun, 2000). The
number advancing to junior colleges decreased
slightly, from 22.2% in 1990 to 20.2% in 1999
(Asahi Shimbun, 2000).
Increases in education and the pursuit of
careers increased the economic independence
of women. This has far-reaching implications in
many facets of life, including consumption
© Japanese Psychological Association 2001.
N. E. Synodinos
behavior. For instance, it has been pointed out
that “women lead social change not through
production but through consumption, and
major shifts in the market are attributable to
this factor, and not to the tastes or creativity
of their generally more conservative male part-
ners and colleagues” (Clammer, 1997, p. 56).
Japan’s population has aged considerably
in recent years, and this trend is projected to
continue (Foreign Press Center, 2000). Japan’s
aging society (koorei ka shakai) is an important
consideration for consumer behavior. Typically,
older persons have more time and financial
resources. Thus, they can be an extremely
attractive market segment. However, older
Japanese have not been traditionally known to
be free spenders. Marketing of products and
services for the elderly can nonetheless be
viewed as a booming area.
Another factor is the change from extended
families, who typically handled the care of
elderly people, to nuclear families. According
to surveys by the National Ministry of Health
and Welfare, cited by Campbell (1998), in 1960
about 82% of persons 65 and over lived with
their families; by 1981 this had decreased to
about 69%.
An additional important demographic
change has been a decrease in family size. This
has generally been accompanied by greater
autonomy within the household and a shift
toward individualism (Triandis, 1989). The shift
from extended family to nuclear family and the
resulting increase in the number of households
increased the demand for housing and for
major household durables.
Conclusion
This article has reviewed existing findings and
outlined some general points that need to be
considered when trying to understand Japanese
consumer behavior. It has stressed some of
the underlying macro-level factors that influ-
ence the Japanese market and its consumers.
People’s behavior is greatly influenced
by various psychosociological factors, and
consumption-related behavior is no exception.
It is imperative to realize that only a portion of
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Understanding Japanese consumers
the variance can be explained by the factors
discussed. Japanese society is constantly
changing and adapting to new realities. Thus,
the dynamic nature of Japanese society should
not be ignored. In addition, in dealing with
various societal factors that affect Japanese
consumer behavior, certain generalizations
were made. This should not be construed to
imply lack of diversity and individual
differences among the Japanese.
Consumer behavior in Japan differs from
that in other societies in various dimensions. In
addition to universals, there are some unique
factors that should be considered in order to
understand Japanese consumer behavior, as,
undoubtedly, another set of unique features
should be considered for the study of any other
society.
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(Received May 5, 2001; accepted May 13, 2001)