The Factors of the Foreign Products
Category : Conceptual Framework Dissertation, Conceptual Framework Qualitative Research, Conceptual Framework Thesis, Pricing Examples, Purchasing and Supply, Thesis Conceptual Framework Examples, Thesis Scope & Limitations, Thesis Significance of the Study, Thesis Statement, Thesis Statements Samples
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The factors of the foreign products would influence Chinese consumers’ purchasing behavior.
Chapter 2 Literature review
The purpose of my literature review is to give the relevant theory about consumer buying behavior, consumer buying process and the previous research about the factors of foreign products influence Chinese consumers. Philip Kotler(2005) point that understanding consumer behaviors and “knowing customers” are never simple. Customers may state their needs and wants buy act otherwise. They may not be in touch with their deeper motivations. They may respond to influence that change their mind at the last minute. Nevertheless, marketers must study their target customers’ want, perceptions, preferences, and shopping and buying behavior.
2.1. What is consumer behavior?
Consumer behavior is the study of how people buy, what they buy, when they buy and why they buy. It is a subcategory of marketing that blends elements from psychology, sociology, anthropology and economics. It attempts to understand the buy decision making process, both individually and in groups. It studies characteristics of individual variables in an attempt to understand people’s want. It is also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. (Chris Fill 2005)
2.2. Why consumer behavior is important?
Kotler (2005) pointed that consumer behavior is an important factor impact the market. I personally think, the important reason for consumer behavior is there is no market if no people buy your products. Many manufactures develops new products according to consumer’s interest. Because consumers do not interest in your product, they won’t buy it.
2.3. Types of buying behaviour.
There are four typical types of buying behavior based on the type of products that intends to be purchased. (Kitchen, P. J 2003)
- Complex buying behavior is where the individual purchases a high value brand and seeks a lot of information before the purchase is made.
- Habitual buying behavior is where the individual buys a product out of habit e.g. a daily newspaper, sugar or salt.
- Variety seeking buying behavior is where the individual likes to shop around and experiment with different products. So an individual may shop around for different breakfast cereals because he/she wants variety in the mornings!
- Dissonance reducing buying behavior is when buyer are highly involved with the purchase of the product, because the purchase is expensive or infrequent. There is little difference between existing brands an example would be buying a diamond ring, there is perceived little difference between existing diamond brand manufacturers.
2.4. The buying process
An understanding of the contextual elements that impact upon individual purchase decision-making and the overall process through which individual behave and ultimately make decisions is an important first stage in the development of any marketing communications plan. Knowledge of a buyer’s decision-making process is vital if the correct type of information is to be transmitted at the right time and in the right or appropriate manner (Chris 2005).
A general buying decision-making process
Figure 1.1 Five general stages of buyer’s purchase decision process.
The buying process starts with problem recognition. At this stage, the buyer recognizes a problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins). (Chris Fill 2005)
An “aroused” customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins. A customer can obtain information from several sources. (Chris Fill 2005)
- Personal sources: family, friends, neighbors etc
- Commercial sources: advertising; salespeople; retailer; dealers; packaging;
- Public sources: newspaper, radio, television, consumer organizations; specialist, magazines.
- Experiential sources: handling, examining, using the product
The usefulness and influence of these sources of information will vary by product and by customer. Research suggests that customers’ value respect personal sources more than commercial sources (the influence of word of mounth). The challenge for the marketing team is identify which information sources are most influential in their target markets. (Burnett. J. 2000)
In the evaluation stage, the customer must choose between the alternative brands, products and services. An important determinant of extent of evaluation is whether the customer feels “involved” in the product. By involvement, we mean the degree of perceived relevance and personal importance that accompanies the choice. (Burnett. J. 2000)
The final stage is the most post-purchase evaluation of the decision. It is common for customers to experience concern after making a purchase decision. This arises from a concept that is known as “cognitive dissonance”. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she made the right decision.(Philip Kotler)
2.5. Major factors influence buying behavior
- Cultural factors exert the broadest and deepest influence on consumer behavior. The role played by the buyer’s culture, subculture, and social class are particularly important.
- Social factors: groups, family, and roles and statuses.
- Personal factors: buyer’s age and stage in the life style, occupation, economic circumstances, life style, and personality and self-concept.
- Psychological factors: motivation, perception, learning, and beliefs and attitudes.
Figure 1.2 Factors of influence customer behaviour
Cultural factors exert the broadest and deepest influence on consumer behaviour. The role played buy the buyer’s culture, subculture, and social class are particularly important. Culture is the most fundamental determinant of a person’s wants and behaviour. Subcultures include nationalities, religions, racial groups, geographical regions. Many subcultures make up important market segments, and marketer often design products and marketing programs to their needs. Social class are relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behaviour.(Philip PKotler 2005)
Social factor influenced consumer behaviour by such social factors as reference groups, family, and roles and statuses. A person’s group consist of all the groups that have a direct or indirect influence on the person’s attitudes or behaviour. The family is the most important consumer-buying organization in society, and it has been researched extensively. (Geoff Lancaster2005)
Personal factor also influenced a buyer’s decision. Age and stage in the life cycle concerns people buy different goods and service over their lifetime. They eat baby food in the early years, most foods in the growing and mature years, and special diets in the later years. A person‘s occupation also influence his or her consumption pattern. A blue-collar worker will buy work clothes, work shoes, and lunch boxes and so on. People’s economic circumstances consist of their spend-able income, savings and assets, debts, borrowing power and attitude toward spending versus saving. (Geoff Lancaster2005)
A person’s buying choices are influenced buy four major psychological factor—motivation, perception, learning, and beliefs and attitudes. A person may has many needs at any given time. Some needs are biogenic; they arise from physiological states of tension such as hunger, thirst, discomfort. Other needs are psychogenic; they arise from psychological states of tension such as the need for recognition, esteem, or belonging. Freud assumed that the real psychological forces shaping people’s behavior are largely unconscious. Maslow’s answer is that human needs are arranged in a hierarchy, from the most pressing to the last pressing. Perception depends not only on the physical stimuli but also on the stimuli’s relation to the surrounding field and on conditions within the individual.( Philip Kotler 2005)
2.6 Previous research ---The factors of foreign products influence Chinese consumer behaviour.
This research has identified a number of factors of foreign products that influence Chinese consumer buying behaviour. These factors are illustrated in a diagram and discussed in some detail in this section.
Figure 1.3 The factors of foreign product influence Chinese consumers.
“A brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.”(Kotler 2005) A brand name is the name of the distinctive product, service, or concept. Branding is the process of creating and disseminating the brand name. Branding can be applied to the entire corporate identity as well as to individual product and service names. In the current Chinese market, some of the famous foreign brand is stand for a people’s life standard. Such as, LV; Gucci; levis; Reply; Buttery; Omega; Rolex and so on. Some people like this famous foreign brand, because they feel these kinds of brand stand for rich, successful, powerful. So these famous brands have a very big market in China.
Price is a kind of marketing tool to control the product. The most elementary pricing method is to add a standard markup to the product’s cost. (Kotler 2005) Construction companies submit job bids by estimating the total project cost and adding a standard markup for profit. In China, most of the price of foreign products are high than domestic product. Because they need to add some cost. Some Chinese people think higher price means high quality. Obviously, high quality cost high price, but some of the domestic product also have good quality and the price also reasonable.
Quality is the total of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. In general, perceived quality is defined as a consumer’s evaluation of a brands overall excellence based on intrinsic(e.g. performance, durability) and extrinsic cues (e.g. brand name, warranty) (Kirmani and Baumgartner 2000). The current situation of Chinese market, most of people think, foreign products have better quality than domestic products. Similar products, one is made in domestic, the other one is made in forging country, people will choose the foreign one. The have the perceived think, maybe the foreign products have better quality. So from this we can say, quality is an important factor influence Chinese consumers’ buying behaviour.
Packaging includes the activities of designing and producing the container or wrapper for a product. The container or wrapper is called the package. (Kotler 2005). In recent times, packaging has become a potent marketing tool. Well-designed packages can create convenience value for the consumer and promotional value for the producer. In the modern market, same products, good packaging will attract more people to buy. There is a same situation in china, especially in women product. Sometimes, some good packaging free gifts will attract more people to spend the money to buy the product in order to get the nice free gift. We have to say, packaging is another important factor influences Chinese consumers’ buying behaviour.
After sale service factor
Service is the prompt delivery of the product. It is courteous sales personnel. It is a user or service manual modified to meet your customer's needs. It is ready access to a service facility. It is knowledgeable, cost-effective maintenance, repair, or replacement. Service is location. Service is dealer support. (Kolter 2005) Service, which is addressed here, should be an integral part of any company's export strategy from the start. Properly handled, service can be a foundation for growth. Ignored or left to chance, it can cause an export effort to fail. An exporting firm's strategy and market entry decision may dictate that it does not provide after-sale service. It may determine that its export objective is the single or multiple opportunistic entries into export markets. Although this approach may work in the short term, subsequent product offerings will be less successful as buyers recall the failure to provide expected levels of service. As a result, market development and sales expenditures may result in one-time sales. There are many foreign companies offer a good after sale service for Chinese customers.
They have a very high reputation in Chinese market. This is another reason for Chinese consumers choose foreign products.
Country of origin effect
Country of origin (COO) stands for information pertaining to where a product is made. Marketers are particularly interested in the perceived image associated with the COO (Martin and Eroglu, 1993). This particular concept has been understood by "the overall perception consumers form of products from a particular country, based on their prior perceptions of the country's production and marketing strengths and weaknesses" (Roth and Romeo, 2003). Many researchers have pointed out that consumers have considerably different perceptions about products that have been made by different foreign companies, and the influence of COO is one of important effects on consumers' evaluation of the products in the local market.
The definition of coo could give the reason to explain why Chinese customer fancy global brands such as: LV, Gucci, etc. according the COO concept, the Chinese customers has been getting lose their rational purchasing behavior when they get more choice for same kind of product. In the Chinese market, the same product competition between national brand and global brand has a clear preference to global brand, Chinese customer’s culture has changed, before they preference quality and quality and low cost, because at that time the Chinese living standard is low and they like save the money.
On the other hand, after Chinese economic growth and the living standard has been increasing as well, meanwhile the new culture form western also give a high influence on the Chinese, therefore the concept of consumption has been changed we well, they star demand the high quality life style and luxury goods to assisted their social live.
Some researchers have argued that for consumers in less developed countries, country image is likely to play a more significant role in influencing their attitude and behaviour (Lin 2005). Unlike their counterparts in more developed countries, this is partly because consumers in less developed countries have less abundant information and purchasing experiences with foreign products. This may be particularly the case with more expensive and complex products. As a result, these consumers may have to rely more heavily on surrogate information cues such as the producing country's image in product evaluation. Therefore, COO information can be more important for a durable product with more complex features than a common non-durable product with simple features. This product type effect may be more salient than that typically found in developed countries. Some researchers have called for more attention to the COO effects across product types. They have argued that comparative assessment of two or more countries and studies conducted across different product classes using different countries of origin to produce a comparison of national images in a specific market would be particularly desirable and fruitful.
The influence of product knowledge on consumer purchase decision
Research of consumer behavior and product knowledge plays a significant role. During his/her purchasing process, the amount of knowledge consumer has about a product would not only affect his/her information search behavior, but also, at the same time, affect his/her information and decision-making processing. Furthermore, it influences the consumer purchasing intension. Zhu (2004) indicates that concerning the RV leisure van, when a consumer selects a product, he/she usually evaluates it based on his/her understanding of it, and his/her understanding would effect consumer information search processing, attitude, and information search quantity.
The influence of product involvement on the consumer purchase decision
Friedman and smith (1993) discover in their research concerning service that when consumer selects a service and his/her involvement increases, he/she will search for more information. Goldsmith and Emmert (2001) report that product involvement plays an important role in consumer behavior. When his/her involvement level increases, the consumer will search for further information.
Marketing promotion on foreign product
The marketing campaign is very important for the foreign company, because the first entry of Chinese market the brand reputation is low and the marketing sale will be low without promotion of product. Heavy promotion is an important factor for foreign products will influence people’s purchasing behaviour.
The promotion will be a vital point to make people get know your product in the early marketing period, it could make business opportunities to build a relationship with customer, the communication will be connect by promotions. The promotion is one of factors of “marketing Mix”, it is a marketing strategy when a product launch in a new market.
Advertising is a powerful tool to promote product and it has diverse applications, those application could be the long term promotion of corporate image and brand advertising. The foreign company can use this approach to promote and communicate with local customers and it could influence target customer them this way.
Frwell and wills ( 2004 ) advise that before an advertising campaign, marketers has three question to address:
1 objective: what should this advertising achieve
2 the image: what information does the advertising convey
3 the medium: what kind channel should we use.
The questions will give the company and customer a clear information package to communicate between each other; therefore they could have effectiveness ro control the budget.
Summary of chapter
In this chapter I have introduced several relative theories with my topic, especially the factors of foreign products influence Chinese consumers’ buying behaviour. Those knowledge could give a support with my later analysis, the foreign product companies has been use right business strategies to conquer a new massive market after Chinese Economic Reform。The relevant theories will support future research and the process of interview will basic on the theory to design the questionnaire. The knowledge will be used in the exam the result of research as well, the quality of literature review will help me the critical analysis the factors of foreign product that influence Chinese customer’s purchasing behaviours.
Kitchen, P. J (2003) Marketing communications: principles and practies international Thomson Business press
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Geoff Lancaster, Lester Massingham & Ruth Ashford (2005)“Essential of Marketing” fourth edition, McGraw-Hill Publishing Company.
Chapter 3 METHODOLGY
The purpose of this chapter is to give a clear detail description of the research methodology use to address the factors of foreign products influence Chinese consumer buying behaviour. The follow steps provide a definition of the aims of the research project, moving to a theoretical explanation of the approaches and design of the research. From the questionnaire, get the data information to do the data analysis, and then layout the result evidence. Merriam (1994) defined methodology as a means of gathering and classifying researched facts and figures into a data entity. The gathered information is carefully analyzed so that the desired results are achieved and observed. In addition, the paper’s detailed research blueprint must also be stated in this section so that the dissertation’s permanence will be instituted (Day, 1998).
3.2 Aim and objective of the research
The aim of the methodology is to explain the method of the primary research and the reasoning behind the method (Hussey 2002). My primary research has the purpose of prove the percentage of Chinese customer who prefers to use foreign product and what are the factors that could influence them to make such decision. The aim of the project is to discuss how foreign product influence Chinese consumers buying behavior in the research.
· For the purpose of the study, in conjunction with the limitation of time, get 100 fully answered questionnaires (by keeping well distributed in each class of respondents) are considered as an appropriate number.
· All of data will be the important finding to prove the foreign company has made a higher marketing performance than national company, basic on those we could analysis the advantages of foreign product and the factors.
· The interview amount of people to understand the preference of product and what main factors to make their purchasing decision.
- Analyze the motives of the prior customers
- Analyze the factors of foreign product influencing Chinese consumer buying behavior
3.3 Research approach
Crossan (2003) states that “positivism adopts a clear quantitative approach to investigating phenomena.”
According to Crossan (2003) “the basic reasoning of positivism assumes that an objectives reality exists which is independ of human behavior and is therefore not a creation of the human mind…. The sense is used to accumulate data that are objective, discernable and measurable; anything other should be rejected as transcendental”
The general elements of positivist philosophy have a number of implications for social research based on this approach. These implications, adapted from Bond (1989), Easterby-Smith et al (1997), and Hughes (1994) are:
l Methodological: all research should be quantitative, and that only research which is quantitative can be the basis for valid generalizations and laws
l Value-freedom: the choice of what to study, and how to study it, should be determined by objective criteria rather than by human beliefs and interests
l Causality: the aim should be to identify causal explanations and fundamental laws that explain human behaviour
l Operationalisation: concepts need to be operationalised in a way that enables facts to be measured quantitatively
l Independence: the role of the researcher is independent of the subject under examination
l Reductionism: problems are better understood if they are reduced to the simplest possible elements.
Phenomenology as a qualitative research method, has its source in social philosophy and psychology. It arose in the late 19th century in response to positivism which, as a scientific approach, could not adequately address the problems being presented to the humanities (Sadala and Adorno, 2002). According to Mc Millan（2004，p 273）,“Phenomenological research describes real direct experiences that happen daily and can interpret the experience of participants in order to understand the essence of the experience as perceived by the participants”.
One of the major paradigms adopted in this research is a logical positivist one. Besides Crossan, Rudner (2003) defines a positivist perspective as a systematically relate set of statements, including an empirical testable generalization. This research aims to enhance scientific understanding through a systematized, structured study capable of explaining, proposing, and analyzing the factors of foreign product that influence Chinese consumer buying behavior.The validity of this approach is based on the method of checking the internal logic findings and then exposing them to empirical tests. However, this doesn’t mean that the positivist approach resolves all issues. The approach recognizes the fact that causality can never be conclusively verified, and it generally reflects the best explanation that science can provide at a given point in time.
There are two research approach is usually used in the research project, that is deductive and inductive approach. Deductive approach which develop a theory and hypothesis (or hypotheses) and design a research strategy to test the hypothesis. And inductive approach, in which you would collect data an develop theory as a result of you data analysis (Saunders, Lewis and Thornhill, 2003).
Major differences between deductive an inductive approaches to research
l Scientific principles
l Moving from theory to data
l The need to explain causal relationships between variables
l The collection of quantitative data
l The application of controls to ensure validity of data
l The operationalisation of concepts to ensure clarity of definition
l A highly structured approach
l Researcher independence of what is being researched
l The necessity to select samples of sufficient size in order to generalize conclusions
l Gaining an understanding of the meanings humans attach to events
l A close understanding of the research context
l The collection of qualitative data
l A more flexible structure to permit changes of research emphasis as the research progresses
l A realization that the researcher is part of the research process
l Less concern with the need to generalize
Comprehensively speaking, this research will adopt DEDUCTION as the research approach. Since at the very beginning of this research, theories of consumer buying behavior is discussed, and then the questionnaire survey was conducted, we can say that it is a process from theory to data (quantitative data). Meanwhile, the validity and the reliability can be ensured in this research, and the sampling size is sufficient. Under these circumstances, the research approach of DEDUCTION is more efficient than INDUCTION.
3.4 The research process
In order to clearly evaluate what are the factors of foreign products that influence the consumer buying behavior in China, the proponent applied the quantitative approach in doing the research. It will involve the collection of quantitative data. Moreover, this research arrangement is more suitable in answering rational problems because it draws more primary and secondary sources related to the topic. The proponent’s primary and secondary sources include research documents, interviews, and other related records and materials.
The second-hand sources used in this paper are equipped with the necessary theories about the factors of foreign products and its subsequent relation to consumer purchase behavior. As a replacement for the direct observation method, the proponent collected surveys, statistics, and interviews conducted by secondary sources that include the works of Chinese Action Plan for TV and T-shirt between domestic and foreign products.
Furthermore, the proponent also applied the epistemological methodology approach in this dissertation. Through this methodology, the paper’s hypothesis is carefully examined. With this, the proponent effortlessly grasps the research process and used it to have a systematic analysis on the gathered data. In addition, a comparison among related studies was also used as a methodology to contrast the paper’s findings about China foreign products market.
The proponent also used questionnaires in gathering the required data. These questionnaires were developed so as to collect information relating how the factors of foreign products influence Chinese consumer buying behavior. These questionnaires are for the Chinese consumers. The style of the questionnaires uses a point-scale answering method.
.Some of the questionnaires that were handed out to the respondents were not all completely answered because of certain factors such as “too busy to answer” and “no idea what is the survey all about”. In addition, some questioners were not at all given back by the respondents. All the questionnaires that were not completely answered and/or were not returned back were considered as having the answer of “no comments”.
After the questionnaires were answered, the result opinions, answers, and responses were then evaluated in relation to the consumer buying behavior. I will do the data analysis, give out the finding result.
3.5 Research design
As a practical setting, the shopping-mall intercept procedure will be used to enhance the realism of the study. Mall intercepts have been demonstrated to be a methodologically robust and externally valid technique for generating samples to tap into consumer preferences and to uncover consumer judgment processes. During the test I will interview different shoppers from different nations in the shopping mall. With their agreement it is expected that they will participate in the study, and they will receive a questionnaire in the shopping centre, and I will explain what they going to do.
Hussey and Hussey (2001) defined deductive research as “a study in which a conceptual and theoretical structure is developed which is then tested by empirical observation; thus particular instances are deducted from general influences.” Deductive research is a study in which theory is tested by empirical observation. The deductive method is referred to as moving from the general to the particular.
Inductive research is a study in which theory is, “developed from the observation of empirical reality; thus general inferences are induced from particular instances, which is the reverse of the deductive metod since it involves moving from individual observation to statements of general patterns or law,”(Hussey and Hussey, 2001)
Cavaye (1996) does not exclude the combined use of both inductive and deductive approaches, saying they can “both used in the same study”. The possibility of using both inductive and deductive approaches in the same case study has also been discusses by Perry(2001). He describes a continuum from pure induction to pure deduction. He advocates taking a middle-ground of a balance between the two, striking the position of what he calls “theory confirming/disconfirming” approaches.
Subjective / objective
Another significant choice which in the research paradigm to be adopted is the extent to which the researcher is subjective(involved in or has an influence on the research outcome) or objective(distanced from or independent) in the execution of the fieldwork(empirical work).
Easterby –Smith (2002) discussed the “traditional assumption that in science the research must maintain complete independence if there is to be any validity in the results produced.” The use of this paradigm necessarily requires involvement in both real world circumstances as well as the involvement (sometimes directly) of the researches himself. It is accepted that such a subjective approach, as used in the research, requires the recognition of any influence or limitation such subjectivity may have on the conduct or finding of the research.
3.5 Data collection methods
A wide variety of possible data collection methods are available under the case study approach. These include the use of the questionnaire; interview (in a variety of formats including unstructured, structured and semi-structured); observation; gathering of documentation and artefacts. Saunders (2000) included in their multi-layer approach to research a variety of data collection methods: secondary data(e.g. documentation); observation; interviews, and questionnaires. Powell (2005) also discussed data collection techniques, specially identifying three methods: questionnaire, interview and observation.
This multi-method approach to data collection is also supported by Goode, W (2000) who advised using a number of alternatives, which were all used in this research project:
- Data gathering in person or via phone: in this case study that included key informant interviews.
- Data gathering through participant observation: in this case study that included observation during meeting of various types.
Triangulation is an approach intended to increase the quality and validity of the qualitative research methods and has been commented on by a number of authors(Dark 1998; Easter-Smith, 2001, Kinicki 2000), for example, advocated the use of triangulation to avoid bias on the part of the researcher, either in terms of the influence the researcher has on the behaviour of participants or in terms of the bias the researcher brings himself into the conduct of the research.( Ghauri P 2002)
Secondary date collection
From the primary date research we could understand the high living standard has given Chinese customer an ability to choose the high quality and high price global product to meet their increasing level requirements
Through the national newspaper’s report (People’s daily Tuesday, September 12, 2006, updated at 09:23(GMT+8) we could find out the fact:
“Survey Reveals Chinese are Optimistic about the Future
A recent survey conducted by
MasterCard International showed that Chinese people are highly optimistic about
their future standard of living and the country’s economic development.
Consumers' confidence in the whole Asia Pacific region has started to level off after a strong rally last year, the survey showed.
Carried out twice a year in 13 countries and regions of the Asian Pacific area, the MasterCard survey aims to find out how consumers feel about economic trends in the coming six months.
Interviewees are asked to give their views on the futures of five basic economic factors including employment, the economy, regular income, the stock market and quality of life.
A composite index, called the Masterindex, is then drawn from the five indexes to give a picture of consumer confidence in the future economy. It ranges from 0, the most pessimistic, to 100, the most optimistic.
The recent survey was conducted among 5,469 customers in 13 Asia Pacific markets.
"China is the only market where the Masterindex has kept rising," said Han Weiqiang, vice-president and country manager of MasterCard China.
Chinese consumers are obviously optimistic about the economy and their standards of living, and upbeat about regular income and the stock market. Although the employment index has also advanced slightly, consumers are still cautious about the future in that sector, said the survey.
However, in the whole region, the index eased from the previous survey results.”
http://english.people.com.cn/english/200009/12/eng20000912_50296.html) access at 5/05/2006
From this statement we could see the high living standard of live has brought a high demand of goods, the foreign product entry the market and offer diversiform products for customers, on the other hand due to national company develop in a later period, therefore the Chinese company may have a low ability to develop their product capability and other aspect of business opinions in relation to product information.
The interview will focus on two different age’s group customer, one is 15-35 young people, and other group is 36-50 old people. The purpose of this is test the what is different between pervious traditional customer purchasing behavior and young people’s purchasing behavior, because the old group people may have less effect by foreign brand, but the young people have a strong effect. From the result we could compare those two groups, then could find out the how purchasing behavior has been changed by foreign products.
3.6 The Sample
For the purpose of avoiding possible confusion in relation to mixing up COO images with brand images, therefore we will get tricky changes on the both product’s picture:
(1) The items mentioned (i.e. television ) will firstly be Chinese national brand products, that are not famous with very little promotion and advertising. Another sample will be prepared and these will be famous foreign brands that have well promoted and widely advertised nationally in China.
(2) The foreign TV brand set is perceived to be worse than the national brand, the national TV is a new model, and the foreign product will be an old model.
(3) The price will be also showed on the picture; the national product’s price will lower than global brand product
Present format. The COO information of the products will be presented including the information concerning image about the product, product model, name, and the "made in" information. No other information will be provided. A COO label in Chinese will be stuck under the logo.
Once we obtain the results of the practical test, we will analysis whether Chinese consumers have a rational shopping behaviour or they have been influenced by successful promotion and advertising activities of the foreign product.
The result will directly reflect the factors which could influence customer behaviour and decision making. Therefore we could give a clear analysis for objectives of dissertation.
Through the questionnaire we could collect amount of primary date, those date could give support evaluation of Chinese customer’s attitude towards foreign brands, whether they are rational choice or it is kind of preference. The finding will be important for whole project and it is meaningful point.
3.9 Limitation of research
In the process of dissertation I have face a mount of limitations on the each aspect of research. Through the study and research I have surmount each difficulty by support for my friends and tutor, the list of limitation will be shoe as below:
1. The research of target market is China, but I am studying in the UK, therefore the research process have to carry on by my friends who are studying in the china.
2. Due to the research area process rely on the friends and they are students therefore they only can use weekend to carry on the research, therefore the research has been process in a slow level.
3. Due to the research process in a slow speed, the rest of work also will be delayed.
4. the last one and it is major limitation is timing limitation, the short period of time could give a limitation for research in Chinese market.
Summary of chapter
Basic on the primary research and secondary research, the Chinese customer purchasing behaviour have been evaluated and the interview has showed a certain customer purchasing behaviour phenomena, and this phenomena could give strong support to analysis why how Chinese customer has been effect by foreign products.
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