Chinese Consumer Brand Switching Intentions


Added on  2020-04-21

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Running head: BUSINESS RESEARCH METHOD RESEARCH PROPOSALBusiness Research Method Research ProposalName of Student-Name of University-Authors Note-
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1BUSINESS RESEARCH METHOD RESEARCH PROPOSALAnswer to Question 1: The problem that is addressed in this research paper is about the decision making madeby the residents of China to switch their using of foreign brands instead of domestic brands in thesector of purchasing sports shoes and cell phones. The research states that the domestic brands ofChina has low quality products, provides low price to consumers, old fashioned and recreationalconscious and provides confusion among the buyers as compared to the foreign brands. On theother hand foreign brands provide their customers with high quality of product, fashion andrecreation to retain their customers. The problem lies this the sector in which the local brandsmust produce products that are of high quality and at low price. There exit a tough competitionbetween the local brands and the foreign brands in China. Studies shows that the people of Chinaprefers to buy Japanese and Western products more than its local brand because the quality of theforeign brands and their symbolic value. The respondents of China mostly favor foreign brands. Customers have experience their influence to switch their buying from local products toforeign products. Whether a marketing strategy is effective or not it is indicated by the intentionsof the citizens of China in switching their choice. There are many factors that are identified forthe switching intentions of the consumers. This includes the customer satisfaction, alternativeavailability of the product, and the switching cost that is related with product. These factors areconsidered as the primary reason for the consumers switching their intention for buying foreignproducts. Customer retention is not always followed by these factors. The way about how theproduct is and how the service is provided to the customer, is impacted directly on switchingintention of the customer. The service or the product that is given to the customer definesweather the customer will switch their intention to foreign products. The consumers make
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2BUSINESS RESEARCH METHOD RESEARCH PROPOSALdecision about hoe the product or service is presented to them. The customers switch theirdecisions to foreign brands if they do not get proper quality, service and new fashioned products.Maximum consumers in China use the foreign brands as their daily used products and services.But the trend is changing to some extent in China. Before studies showed that the respondents ofChina that used the local brands in daily lives were about only 15 percent which has increased itspercentage to 23 %. This increase may happen due to several factors. This may happen due tolow price on local brands or may happen due to demographic factors for intention of switching. Answer to Question 2:According to the literature review that is mentioned in the research paper, the brandchoice of the consumers varies both in developed countries as well as the developing countries.In countries that are developed, the quality of the local products is comparatively higher from theimported products. But in developing countries, the foreign products are more superior to that ofthe local products. A phenomenon has aroused among the customers that the products that comesfrom the developing countries are less superior to that of the products from developed countries.They believe that the products of the developing countries have low quality, performs badlywhich results in dissatisfaction. Big brands are trusted more by the consumers and are morereliable. By advertising or words by mouth, brand trust is influenced by the customers. The preference for the international products in China is more among the consumers. Thelocal Chinese brands struggle to build brand trust and thus faces competition and the productsurplus in the domestic market. The consumers of China prefer more on foreign brands. Theliterature review states a survey of an author Wang & Yang. They conducted a survey across thecities of China to get the auto brand preferences. About 1200 citizens were interviewed. The
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