How do Asia's two most important consumer markets differ? Japanese–Chinese differences in customer satisfaction and its formation

Little is known about international differences in the formation of customer satisfaction, particularly regarding developed and emerging markets in Asia. This lack of knowledge limits the competitiveness of Western companies in Asia. From the perspectives of economic and cultural country differences, this study thus compares customer satisfaction and its formation between Japan, China, and Germany (Western reference country). Customer satisfaction is higher in Japan than China for goods and private services but lower for public services. It is influenced more strongly by perceived quality and less strongly by perceived value (difference moderated by switching costs), public brand image, and quality expectations in Japan than China. Economic differences between developed (Japan, Germany) and emerging (China) markets influence consumer preference structures more strongly than cultural differences. Due to larger inter-Asian cultural variance than Western managers might expect, Chinese consumer preference structures differ more from Japanese than German consumer preference structures.     

What characterizes Chinese consumer behavior? A cross-industry analysis of the Chinese diaspora in Japan

In order to profit from China??s enormous business opportunities, international firms need to know Chinese consumer preferences. To learn more about intrinsic Chinese consumer preferences and their distinction from other Asian consumer preferences, this study analyzes differences in the formation of customer satisfaction, repurchase intent, and word-of-mouth intent between Chinese-born and locally born consumers in Japan. Verifying culture-based hypotheses, cross-industry analyses show that Chinese-born consumers pay less attention to the public brand image and risk-related switching costs, but more attention to quality expectations, perceived value, experienced usefulness, and financial switching costs than Japanese consumers. Marketing strategies should account for these preference structures.     

Chinese consumer decision-making styles: A comparison between the coastal and inland regions

China is rapidly becoming an important market for consumer goods, but relatively little is known about variations in consumer shopping patterns in different regions of China. We employ a cultural materialism perspective in understanding decision-making styles of inland and coastal shoppers. Our findings reveal that consumers in the two regional markets do not differ in utilitarian shopping styles but they do in hedonic shopping styles. Marketers need to understand these differences to be able to market effectively to consumers in different regional markets within China.     

A paradox of price–quality and market efficiency: a comparative study of the US and China markets

The price–quality schema rests on an assumption that price is credible information about product quality. However, the credibility of price information varies across different markets. In an inefficient market, consumers would believe in the price–quality relationship to a lesser extent because price information is less credible. Paradoxically, in such a market, sometimes consumers have to rely more on price to infer quality because other product information is less available. With a cross-national perspective, this study investigated the influences of market efficiency and consumer risk aversion on the price–quality schema between the China and the US markets. We found that due to the inefficient market environment, Chinese consumers possess a weaker price–quality schema than American consumers. Chinese consumers are more risk averse than their American counterparts. However, in China, risk-averse consumers are more likely to use price to infer product quality. Implications for global marketing are discussed, and directions for future research are suggested.     

Understanding post-pandemic market segmentation through perceived risk,behavioural intention,and emotional wellbeing of consumers

The COVID-19 pandemic has altered consumer behaviour, leading to varying levels of perceived risk for different products and services. Companies must reassess their market segmentation strategies and adapt them to take effective countermeasures to improve employee performance and achieve the desired results. Research on post-pandemic segmentation is lacking. Thus, this study aims to create consumer archetypes based on perceived risk and examine how they affect behaviour and emotions post-pandemic. Based on 1,140 survey responses from Taiwanese consumers, consumer segments are classified into three archetypes: Moderate, Aggressive, and Hesitant. The Hesitant group mainly comprised senior women who faced high physical and psychological risks. In contrast, the moderate archetype group had the lowest levels of perceived risk but showed less interest in shopping activities and personal hygiene than the other two groups. Aggressive shoppers prioritise quality and convenience, with fluctuating emotions during shopping, despite moderate concerns about the virus.     

葡萄酒消费行为影响因素分析

葡萄酒是一种健康的酒精饮料,在我国潜在消费市场巨大,发展前景良好。葡萄酒的消费行为受外在因素、内在因素、营销因素三个方面的影响。葡萄酒企业制定营销计划应以消费者为中心,针对葡萄酒消费市场的特点以及消费者的需求,巧妙灵活、广泛宣传葡萄酒健康功能、美容功能、社交功能,刺激消费者的购买欲望,建立消费者对葡萄酒的认知度和忠诚度。同时,结合我国传统文化、各区域历史、民族、饮食等文化,建立具有中国特色的葡萄酒文化,使葡萄酒真正的走进消费者的生活中。     

An investigation into the perceptions of Chinese consumers towards the country‐of‐origin of dairy products

The dairy incident in 2008 influenced Chinese residents’ attitudes towards domestic and foreign brands in the market. This paper highlights the strong consumer perceptions existing in the Chinese dairy market towards the country of origin of dairy products. Chinese residents generally believe dairy products from foreign countries are superior than those from China. A new theoretical framework is developed to explore the driving factors of country‐of‐effects and its corresponding impacts. Consumers’ image of different countries and national stereotypes, consumer ethnocentrism and animosity, product familiarity and experience, product involvement and some cultural value differences were found to drive country‐of‐origin effects. These effects directly impact on consumer's perceived quality, brand awareness, brand association and loyalty towards the related goods in the market, then influence the brand equity of products from different countries. This study provides a better understanding of country‐of‐origin effects on consumer behaviour, and will help relevant domestic and foreign firms improve their business strategies in China.     

Impact of Consumer Awareness,Knowledge, and Attitudes on Organic Rice Purchasing Behavior in China

This study examines how Chinese consumers’ awareness, knowledge, and attitudes influences their purchasing behavior for organic rice. The aim is to determine whether regional differences in these factors and in the resulting behavior exist and thereby, to provide the organic rice industry with sufficient information to expand its market and improve profitability. Respondents answered a total of 1,371 questionnaires, whereby 406, 539, and 426 responses came from inland, coastal, and northern regions, respectively. A binary logit regression is applied to analyze the survey data and predict purchasing behavior at the national and regional levels. While the results indicate that consumer awareness, product certification, and product availability factors have a positive impact on the likelihood of purchasing organic rice, the price has a negative relationship with organic rice consumption. Furthermore, the results demonstrate that northern consumers are more likely to buy organic rice than those in inland and coastal regions. In particular, awareness and knowledge factors have a greater influence on purchasing behavior in northern regions. These findings suggest that enhancing consumer awareness of organic rice and providing more purchasing channels could contribute to increasing organic rice consumption.     

Consumer expectations and the communications gap: Causes of consumer dissatisfaction

Despite steady improvement in product quality and values, consumer complaints and demands for protective legislation are more common than before. The rising expectations of consumers are a main cause of consumer irritation, and exaggerated promotional information contributes to these rising expectations. The remedy for consumer dissatisfaction is to narrow the gap between consumer expectancy and perceived product performance, primarily by reducing exaggerated expectancy. More careful and thorough monitoring of consumer satisfaction levels can help reduce consumer dissatisfaction. Three guidelines are suggested for dealing with discrepancies between consumer expectancy and product performance.     

Consumer ethnocentrism,product necessity and quality perceptions of Russian consumers

Retail buyers in Russia have indicated that some customers have expressed a desire to purchase domestically produced products over imports. Consumer ethnocentrism has been proposed as a measure to provide retail buyers with the information necessary to market to these consumers. The purpose of this research is to determine if perceived product quality of products differs based on country of origin, product necessity and consumer ethnocentric tendency. A repeated measures ANOVA test indicates that perceived quality differs by necessity, by product, by country. A consumer ethnocentrism effect on the overall model, however, was not significant. We conclude that Russian consumers do perceive differences in product quality based on country of origin and product necessity, but that consumer ethnocentrism does not have an effect on perceived product quality.     

Dialectical mind can be sweet toward crisis‐associated products/brands

Consumers’ thinking style (e.g., dialectical thinking), which is fundamental to cognition, has been paid inadequate attention in the consumer literature. This research explores the impact of dialectical thinking on Chinese consumer responses toward crisis‐associated products/brands. Findings in three experimental studies indicate that, in comparison to those primed with nondialectical thinking, consumers primed with dialectical thinking report higher levels of purchase intention and trust for a crisis‐associated product/brand. This is the case not just for products with Chinese cultural background, but also for products with western cultural background. Consumers’ perceived severity of crises moderates the impact of dialectical thinking, with a stronger impact in a highly severe crisis situation than in a less severe one. A survey study indicates a similar pattern. These findings are important in suggesting ways of encouraging Chinese consumers to be insistent on quality standard in order to better protect their consumer rights, and moreover, for multinational corporations on how best to respond and formulate strategies of handling product‐harm crises in the Chinese market.     

Economic influences on perceived value,quality expectations and customer satisfaction

Consumer research has extensively analysed psychological determinants of customer satisfaction. As macro‐level customer satisfaction data were not available until recently, researchers have only taken first steps towards analysing economic determinants of customer satisfaction. Based on a more complex conceptual framework and on data from Germany and Japan, this article examines how economic processes influence the perceived value of goods and services, quality expectations and customer satisfaction. Using principal component analysis, regression analysis and structural equation modelling, this study finds that perceived value is positively influenced by both economic growth and lagged economic expectations. Customer satisfaction is positively influenced by economic growth and negatively by current economic expectations, with half of the impact mediated by perceived value. Economic expectations positively influence expectations regarding the quality of goods and services. These results imply that consumer researchers should no longer ignore economic influences on consumer attitudes. Marketing managers are advised to be cautious not to misinterpret economic‐induced variations in customer satisfaction as caused by corporate performance.     

Different Effects of Utilitarian and Hedonic Benefits of Retail Food Packaging on Perceived Product Quality and Purchase Intention

Since consumers primarily make in-store purchase decisions, firms use product packaging to attract potential consumers. Ever-increasing market competition in many food product industries has further fueled this phenomenon in firms. However, the question of how retail food packaging affects consumer processes has received very little attention. This study investigates the benefits of food packaging on consumer responses to hedonic products by comparing different benefits (i.e., utilitarian and hedonic) of food packaging to understand which one has more impact on consumers’ perceived quality and purchase intention. The results show that both utilitarian and hedonic benefits of retail food packaging are critical predictors of consumer evaluations but play different important roles in determining customers’ reactions. Utilitarian benefits of food packaging impact perceived quality more than hedonic benefits do. Compared to utilitarian benefits, hedonic benefits of retail food packaging have more impact on consumer purchase intention.     

Understanding consumer's brand categorization across three countries: Application of fuzzy rule-based classification

In multi-brand situations, people categorize all known brands into subsets called consideration, hold, foggy and reject sets. This is the Brisoux–Laroche model. Traditional brand categorization models including this, assume that consumers can properly categorize each brand into these subsets. However, a brand with both perceived positive and negative attributes increases the difficulty for a consumer to decide about the placement into subsets. This study investigates consumers' brand categorization when a brand has both perceived positive and negative attributes. We propose that a brand may belong to more than one subset (decision fuzziness). Using fuzzy-rule-based classification, this is investigated across three cultures (Chinese, Japanese and Kazakhstan) and two product categories: Quick Service Restaurants (QSR) and beer. The findings confirm that decision fuzziness varies across cultures. Chinese consumers have less decision fuzziness for foreign brands than for local brands in the QSR market. In general, the opposite is found to be true for Japanese and Kazakh consumers.     

How incumbent firms foster consumer expectations, delay launch but still win the markets for next generation products

Consumers learn quality of many durable products through word-of-mouth information while firms launch new and improved products frequently in these markets. This paper examines firm incentives to invest in R&D to compete for patents in makets where consumers rely on word-of-mouth information and have expectations about the new products before launch. When its loss due to a possible entry is above a threshold, an incumbent has more incentives than a potential entrant to invest in R&D for patents. Moreover, if the current product is more profitable, its true quality is above consumer priors and the quality of the new product is below a threshold, it is optimal for the incumbent to launch the new product after a time lag. The later the optimal time of launch, the greater is the incumbent’s potential loss if entry occurs and greater its incentives is to invest in R&D versus that of the entrants. While potential entrants are generally thought to have more incentives to invest in a drastic innovation which results in a race to launch the new products, we show that the more drastic the innovation, the later the optimal time of launch and greater are the incumbent’s incentives to invest in R&D when the value added of the new product can be conveyed to all the consumers. Only when consumers are uncertain about the value added of the new product, the incumbent’s incentives are lower. We also demonstrate that by promoting consumer expectations about the new product before launch, an incumbent has more time to launch and higher probability of dominating its market.     

Learning About Computers: An Analysis of Information Search and Technology Choice

We estimate a dynamic model of how consumers learn about and choose between different brands of personal computers (PCs). To estimate the model, we use a panel data set that contains the search and purchase behavior of a set of consumers who were in the market for a PC. The data includes the information sources visited each period, search durations, as well as measures of price expectations and stated attitudes toward the alternatives during the search process. Our model extends recent work on estimation of Bayesian learning models of consumer choice behavior in environments characterized by uncertainty by estimating a model of active learning—i.e., a model in which consumers make optimal sequential decisions about how much information to gather prior to making a purchase. Also, following the suggestion of Manski (2003), we use our data on price expectations to model consumers’ price expectation process, and, following the suggestion of McFadden (1989a), we incorporate the stated brand quality information into our likelihood function, rather than modeling only revealed preference data.Our analysis sheds light on how consumer forward-looking price expectations and the process of learning about quality influence the consumer choice process. A key finding is that estimates of dynamic price elasticities of demand exceed estimates that ignore the expectations effect by roughly 50%. This occurs because our estimated expectations formation process implies that consumers expect mean reversion in price changes. This enhances the impact of a temporary price cut. Finally, while our work focuses specifically on the PC market, the modeling approach we develop here may be useful for studying a wide range of high-tech, high-involvement durable goods markets where active learning is important.JEL Classification: C15, C33, C35, C42, C51, C52, D83, D84     

The dark side of innovation: How new SKUs affect brand choice in the presence of consumer uncertainty and learning

New product activity is critical for sustained success of consumer packaged goods (CPG) brands. However, the impact of new SKUs on the perceived quality, quality uncertainty and subsequent choice of the brand as a whole is, as of yet, not well understood. The authors study how new additions to the brand line shape consumers’ quality perceptions, and how this – next to the mere line length effect – influences their choice of brands over time. They do so in the setting of an emerging market (China), where new product activity is particularly pervasive. Using a unique scanner panel dataset of Chinese households over the period 2011–2014, they estimate a Bayesian learning model that accommodates varying quality, on two CPG categories, and for two types of new-product additions (new sensory SKUs vs. new non-sensory SKUs). They show that while adding new SKUs may lift the brand’s perceived quality level, it also makes consumers more uncertain about the quality of the brand – dampening their brand choice. This holds especially for light customers – an important part of the brand clientele. Managerial implications are discussed.     

The Effects of Consumer Ethnocentrism and Country of Origin on Polish Consumers' Evaluation of Foreign Manufactured Products

The admission of Poland to the European Union may be perceived as the symbolic crowning of a long period of economic transformation. Poland today is not only an emerging market but an emerging culture experiencing a strong economic development wherein old ideals are confronted with new Western values. On this background, the objective of this research is to assess the level and impact of consumer ethnocentrism and the effect of country of origin on consumers’ evaluation of and buying intentions toward foreign manufactured products. Medium-expensive consumer durables—design furniture and fashion clothes—imported from Denmark are examined. Findings show consumer ethnocentrism is present and that more than one-fifth of consumers are highly ethnocentric but also that ethnocentrism has no direct effect on the evaluation of product quality or on buying intention for either of the products from Denmark.     

Green tea quality attributes: a cross-cultural study of consumer perceptions using importance–performance analysis (IPA)

This study examined consumer perceptions about green tea quality attributes and consumers’ green tea consumption behavior within major green tea-producing and consuming countries including China, Japan, and Korea. Five factors of green tea quality attributes were revealed through the exploratory factor analysis and were analyzed using importance–performance analysis (IPA). Safety, health, and sensory factors perceived by Chinese consumers as being important and well-performed were positioned in the “Keep Up the Good Work” quadrant. Safety and sensory factors were perceived by Japanese and Koreans as being important, but were less-performed and were placed in the “Concentrate Here” quadrant. Japanese and Koreans considered the health factor as less important and less well-performed and were positioned in the “Low Priority” quadrant. The price/utility and production factors were less important by all consumers. Chinese consumers perceived all five factors as performing very well. However, Japanese and Koreans perceived other factors as performing less acceptable except for the production factor for Korean respondents and the price/utility factor for those Japanese respondents. The production factor was the most influential for drinking frequency and spending for green tea in all three countries, also for the amount purchased by Chinese and Japanese consumers.     

The moderating effect of individual level collectivist values on brand loyalty

In today's dynamic business environment the success of a firm often depends on its ability to create brand loyalty. While there is a large body of research exploring brand loyalty and its antecedents, little has been done to examine how the relationship between these antecedents and brand loyalty is moderated by consumer differences in individual level collectivist values. This understanding is important however as consumers high in individual level collectivist values have been found to make different brand choices than consumers low in individual level collectivist values. We develop and test theory that suggests consumer differences in individual level collectivist values have a significant moderating effect on the relationship between perceived value, perceived quality, brand trust and brand loyalty. The results show that consumers high in individual level collectivist values are significantly more loyal to a focal brand, especially when brand trust and perceived quality are at relatively low levels.