The Factors Influencing Chinese Consumers (Essay Sample)

The Factors Influencing Chinese Consumers’ Purchase Intention Towards Self-Brand in Hypermarkets: A Case of Carrefour
Chapter 1 Introduction
1.1Background of the research
Throughout history marketer has been investigating the factors that influence consumers to choose a given brand. Self-brand refers to the process in which a consumer matches his or her self-concept with a brand (Chang & Wildt, 1994). Consumer’s purchase intentions towards a brand are not only governed by function or quality of the products, but also depend on the symbolic meaning of the products and the brands (Yang and Liu, 2009). Consumers decide to purchase a product from a brand if it satisfies their needs. According to Tih and Lee (2013), brand provides different values to the consumers, and these values serve as functional (solving problems), experimental (enjoyment), as well as symbolic. Consumers do not buy products just to satisfy their basic needs. However, their buying behaviours are in a deeper level. Tih and Lee (2013) indicate that consumers will only buy a trademark if they find a match between the company image, which is communicated through advertisement, retails or package design and his own self-concepts (de Chernatonyi & de Mello, 1995). Furthermore, the quality the brand enables the consumer to build, as well as creates a self-concept.
The Chinese population presents high success opportunities for many businesses worldwide. The increasing population coupled with the country's strengthening economic position offers one of the most lucrative business environments in the world (Fin and Kang, 2011). The vast opportunities have solicited major concerns among many authors and researchers that have been raised in a growing number of researchers seeking to understand and reveal clearly, the Chinese consumer purchase behaviour. Interestingly, global companies including Carrefour – an international retailer headquartered in France - seeking to benefit from the country's major business prospects have explored China. The Chinese consumers have embraced the culture of shopping in hypermarkets, which is closely in tandem with business environmental changes such as the growing number of hypermarkets in the country. Among the notable driving forces towards the increasing nature of hypermarkets in China, include low prices whereby customers are enticed by the price cutting strategies which effectively meets the overall culture of price sensitivity among the Chinese (KPMG, 2006). This aspect necessitates retailers to adapt to the local needs by customisation of prices in order to increase market share. Another factor driving increased hypermarket establishment and subsequently, the shopping culture in hypermarkets is one stop shopping whereby customers are able to access a wide variety of groceries and non-food products in single stores. In addition, the seamless shopping experiences entailing the ability of consumers to access leisure due to the existence of cinemas and restaurants within the hypermarkets that are located conveniently near city centre underpins the Chinese shopping culture (KPMG, 2006).
Previous studies have used self-congruity theory to explain the formation of self-brand connections (Boksberger, Dolnicar, Laesser and Randle, 2011). Sirgy’s congruity theory indicates that the consumer behaviours are partially determined by similarity between consumers' psychological comparison and the brand-user-image. Additionally, the author also indicates that the self-congruity affects consumer behaviours through motives such as self-consistency (Boksberger, et al., 2011). Previous studies points out that brand personality and congruity impact on purchase intention of consumers. Wang, Yang and Liu’s (2009) study comparing the impacts of the product-brand personality and company brand personality found that the product-brand personality significantly affects purchase intention more than company-brand personality. The two factors positively affect the consumer purchase intention (Tariq et al., 2013). Products-personality and company-brand personality moderates the relationship between product/company-brand personality and purchase intention. Previous studies on the effect of brand quality effect on purchase intention of consumers posit that perceived brand quality has a positive effect on consumers' purchase intention. The studies also indicate the relation between brand qualities, brand loyalty and purchase intention are positive (Knight and Kim, 2007). Tsiotsou (2006) study points out that perceived quality influences the purchase intention of consumers. Brand quality perception concept consists of three aspects including the perceived value, satisfaction, and involvement. The study found that the perceived brand quality has a direct and indirect effect on purchase intention because it offers satisfying products. Brand pricing, promotion activities influence the behaviour of consumer towards purchasing (Chang & Wildt, 1994). Zeithaml (1988) proposes a model that describes the relationship between extrinsic product cues, that is, country of origin (COO), price and brand name, which affect the way consumer perceive brand quality, and the way they influence consumer towards brand purchase intention. Previous studies have shown that self-band pricing supports the positive price-perceived quality relationship. However, as the studies shows, the relationship of the two is reduced by the presences of direct product information (Johnson and Kellaris, 1988). Furthermore, the trade-off between perceived price and perceived quality results to perceived values, and as already seen, perceived values is the primary factor that influence purchase intention. Chandon, Wansink and Laurent (2000) discuss the importance of self-brand promotion influence on consumer behaviour. Promotion activities influence the consumer purchase intention because the promotion activities affect the perceived quality of the product (Chang, and Wildt, 1994). Tih and Lee (2013) conducted a study evaluating the consumers' perception of the retail store and identified the factors that determine the purchase intention for the store brand. Using a sample from supermarket, they found that perceived values were the strongest predictor of purchase intention. The study also found that a significant influence on purchase intention toward towards the store.
1.2 Rationale
Purchase intention studies continue to be an important concept in the marketing of consumer products. For instance, Wang, Yang and Liu (2009) indicate that purchase intention studies are currently important as the businesses have become globalised and brands are engaging in differentiating their products to satisfy consumer needs. Understanding the factors that influence the purchase intention can improve business performances. Businesses can gain competitive advantage through understating the consumer need better than they understood it before (Johnson and Kellaris, 1988). The importance of the purchase intention in marketing scholars comes; as a result of its relationship with consumer behaviour (Tih and Lee, 2013) Purchase intention is important in an organisation because it allows managers to forecast revenue of existing and new products in the market. Knowledge from purchase intention has become important to managers in decision making about product demand, market segmentation, as well as promotional strategies. The concept of self-brand among the consumers has been found to assist business gain competitive advantage. In the marketing field, companies engage an enduring competitive advantage by utilising the concept of self-brand and self-concept. This form of competitive advantage endures because it is difficult for competitors to imitate (Tsiotsou, 2006). For example, organisations are able to emphasise their brands image when they associate themselves with teams rallying for victory. At the individual level, brand symbolism provides moderation effect for in-group and out-group. Through symbolism, the businesses have stronger communication effect with its consumers (Wang, Yang and Liu, 2009). This also connects to brand reputation influence on consumer behaviour. Companies have recently found the effects of brand reputation on the consumer behaviour towards brand. Corporate social responsibility has become the norm for the organisation to follow in order to influence consumer behaviours. Apart from helping Carrefour in finding the factors that influence purchase intention towards the brand, the research also helps other brands in the Chinese market to understand the factors that influence Chinese consumers’ purchase intention towards self-brand. Therefore, this research adds further knowledge on consumers purchase intention, as the topic has become important in the contemporary business environment
1.3 Research aim and objectives
The aim of this research is identify, analyse, and present the factors that influence consumers’ purchase intentions towards self brands in the hypermarkets. This research intends to study Carrefour in China. The specific objectives of the research are as follows:
1 To analyse customers’ perceptions of self-brands in the supermarkets of China;
2 To analyse the factors affecting customer purchase intention;
3 To put forward recommendations for supermarket in China;
1.4 Research structure
The research is structured in five main parts, which include the research introduction, literature review, research methodology, the conclusion, and recommendations. The Introduction section provides insights to the concepts of the consumer purchase intention, and the concepts of self-brand. The relationship of the two concepts is first highlighted in this section. The part also contains the rationale of the study that provides the importance of the study. F...