Consumer Behavior Report

Running Head: CONSUMER BEHAVIOR REPORT
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Consumer Behavior Report
Student’s Name
Institutional Affiliation
03/21/2019

Consumer Behavior Report 2
Introduction
The purpose of this report is to demonstrate and analyze the consumer behavior trends in
e-commerce services platforms, utilizing the case of Alibaba. The China’s consumer population
and characteristic will be used in the analysis of consumer behavior and the response of Alibaba.
Recommendations on the best strategies for companies to leverage on consumer behaviors ar
also provided. China has a dense population, the largest population in the world. The Chinese
population I also the most responsive to the shopping culture (Peng et al., 2016). The Chinese
huge population coupled with a massive shopping culture serves as the best audience for the
consumer behavior analysis. The shopping culture made companies like Alibaba to succeed. The
variation of the population in China also provides the platform for evaluating the behaviors of
consumers (Ding et al., 2017). Consumers in China demonstrate a different kind of behaviors
that provide insight for companies to know how to target them, as described below.
Purchasing Situation and Target Market
Since Alibaba.com is an online shop, its target market is the global market. Despite the
factthat it specializes in China, the online shop of Alibaba extends across all the consumers
worldwide. However, the global market that Alibaba targets is that of a technology savvy
audience with an access to digital resources like power, mobile phones and internet accessibility.
The Alibaba Group Holding Limited is a Chinese multinational company that has
specialization in technology, e-commerce, internet, and retail. The company was founded in
1999 and provides the services of the consumer to consumer, business to consumer and business
to business services of sales through web portals, shopping search engines, and electronic

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payment services (Han, Xiao & Su, 2019). In this case, the main focus would be on the analysis
of the consumer behavior on the shopping platform of Alibaba through its website, Alibaba.com.
Alibaba e-commerce platform operates in a country that contains the world’s largest population,
China. China bears the largest number of internet users all over the world meaning that it has the
largest activity of e-commerce than any country in the world. One major consumer characteristic
shaping consumer behavior in China is Single’s day (Sun et al.,2015). Alibaba set aside a day
that is called the Single’s day, which occurs every year in November, the 11th. This is China’s
largest event in shopping rivaling other similar days in other countries (Liu et al., 2016). For
example, Alibaba’s Singles’ Day has overtaken the Black Friday of Jumia, and Cyber Monday,
when combined. CNBC reported that in 2018 Alibaba’s 24-hour shopping craze; the Single’s
Day registered whopping billion dollars sales within a time frame of 90 seconds. Only after five
minutes of Sales, the day had registered the same value of items as Amazon would on a prime
day. The most recent Single Day registered a total sale’s value of 30.8 billion dollars. Out of the
1.04 billion orders that were made, 90 percent occurred on a mobile device (Shen & Tan, 2018).
That is according to business insider and internet statics. A total of 1.6 billion network attacks
were blocked successfully, during the shopping spree (Peng et al., 2015). Thanks to the
technology of artificial intelligence, it was possible to make attractive recommendations for large
amounts and volumes of products to online consumers. Artificial intelligence was also key in
service, serving to enable the service of more than a billion translations and services to global
users. A new report by AliResearch and The Boston Consulting Group (BCG), the research arm
of Alibaba reports that as China’s economy continues to grow and mature, there is more and
more diverse. There is a rise of emerging sub-classes of buyers with distinct or unique needs and
preferences. Despite the slow growth of China’s, there is an increasing in consumer spending by

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a margin of 10%, annually. The spending margin of 10% is faster than all the countries in the
world. It has been projected that by the year 2021, China will be the second largest consumer
market in the world. It will then add $1.8 trillion in consumptions that are new; it will add
approximately 40% from the past year’s $6.1 trillion level.
Consumer Behavior and Factors of Customer Decision Making Process
Owing to the above findings, it is evident that Chinese consumers have the behavior of
low tolerance for latency. For the Chinese consumers, it is evident that the Chinese consumers
are normally impatient and therefore, performance is key. The tendency of the Chinese
consumers to be impatient and bear low tolerance to latency provides necessary pressure to
companies and businesses. The businesses that will not stand the pressure of having the right
capacity to deliver goods according to the demand will be locking out naturally. Therefore, the
consumer behavior of the Chinese population is a necessary one because the quality of
businesses and companies will be streamline to hit the highest standards. In that case, Alibaba
had to utilize the technology of Artificial intelligence to meet the standards of the consumer