Consumer Psychology’s Perspective on the Collectivist Culture That Shapes Purchasing Decisions: A Review of The Literature

Abstract

A strong collectivist culture is one of the characteristics of Indonesian society and plays a role in shaping consumption behavior. This literature review aims to review how collectivist culture influences the purchasing decision-making process in the realm of consumer psychology. The study was based on 10 previous studies published in the span of 2021 to 2025 and found that social values ​​and group identities have an influence on brand referral and consumer loyalty. The results of this study show that Indonesian consumers tend to make purchases based on social considerations such as recommendations from the community, brand image that supports solidarity, and carries cultural values. In addition, the development of social media strengthens another form of collectivism, namely, the formation of digital interactions such as online communities which are an important factor in forming trust and brand engagement. This literature confirms that purchasing decisions are not only a form of economic activity but also a manifestation of social processes and cultural identity. This study is expected to enrich insights and theoretical understanding of consumer behavior in the context of collectivist culture, as well as providing practical implications for marketing strategies oriented to the social values ​​of Indonesian society.