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Changing consumer markets and marketing in China

Author

Listed:
  • Sha Zhang
  • Jenny Van Doorn
  • Peter. S.H. Leeflang

Abstract

China's enormous population and rapidly increasing consumer spending are attractive to many multinational corporations (MNCs) to supply products to the Chinese markets. Yet MNCs continue to struggle to find ways to serve this diverse and culturally unique market. This article reviews and integrates existing knowledge on Chinese consumers' responses to marketing efforts, and specifies and empirically tests several propositions. Chinese consumers are found to have higher brand consciousness, brand loyalty, lower price sensitivity for visible goods, and to be less responsive to sales promotions compared to Western consumers. We also find indications that the influence of face considerations (i.e., prestige earned in a social network) cause Chinese consumers to have higher emphasis on prestige in their channel choices and advertisement evaluations than Western consumers. By outlining these implications, our study can help MNCs better understand how Chinese consumers behave and that understanding can help MNCs adapt their marketing efforts.

Suggested Citation

  • Sha Zhang & Jenny Van Doorn & Peter. S.H. Leeflang, 2012. "Changing consumer markets and marketing in China," International Journal of Business and Emerging Markets, Inderscience Enterprises Ltd, vol. 4(4), pages 328-351.
    • Handle: RePEc:ids:ijbema:v:4:y:2012:i:4:p:328-351
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    Citations

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    Cited by:

    1. Liu, Kun & Gao, Feng, 2017. "Scenario adjustable scheduling model with robust constraints for energy intensive corporate microgrid with wind power," Renewable Energy, Elsevier, vol. 113(C), pages 1-10.
    2. Ochs, Dan & Wolf, Christopher A. & Widmar, Nicole Olynk & Bir, Courtney & Lai, John, 2019. "Hen housing system information effects on U.S. egg demand," Food Policy, Elsevier, vol. 87(C), pages 1-1.
    3. (Sandy) Zhang, Sha & van Doorn, Jenny & Leeflang, Peter S.H., 2014. "Does the importance of value, brand and relationship equity for customer loyalty differ between Eastern and Western cultures?," International Business Review, Elsevier, vol. 23(1), pages 284-292.
    4. Yuying Shi & Jeremy M. Lim & Barton A. Weitz & Stephen L. France, 2018. "The impact of retail format diversification on retailers’ financial performance," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 147-167, January.
    5. Jai, Tun-Min (Catherine) & King, Nancy J., 2016. "Privacy versus reward: Do loyalty programs increase consumers' willingness to share personal information with third-party advertisers and data brokers?," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 296-303.

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