Retail store ownership influences on Chinese consumers

The steady withdrawal of most investment restrictions and subsequent influx of foreign retailers is providing Chinese consumers with more choice. However, even though there is considerable country-of-origin literature for product choice, there is a dearth of knowledge on its role in store choice including the extent of divergent perceptions within populations. Results presented in this paper reinforce our understanding of consumer diversity in China with those from Chengdu, a less developed city, rating local stores as superior to foreign stores, and consumers from Shanghai, a more economically advanced city, favouring foreign owned stores. Demographics, and in particular income and age, are also important in determining whether a foreign store is viewed favourably and likely to be patronised, with lower socio-economic groups and older consumers preferring local stores and in particular those that are state owned enterprises.