Management Consulting/CONSUMER BEHAVIOUR

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Question
CASE 1
Sports marketing strategy: A consumer behavior case analysis in China. Marketing research that
targets consumers' influences and financial implications is a worthwhile sports marketing effort. To
implement effective marketing strategies in a specific country, it is pertinent to understand consumer
behavior in that country. In this paper, 11 major findings related to the unique behavior, attitudes, and
buying patterns of Chinese sports consumers are highlighted. From the results of questionnaires
administered to 2,155 mainland Chinese consumers in 10 selected cities, different economic, social,
and personal factors in the China's environment are determined. The marketing implications of the
Chinese culture and lifestyle are also discussed.
With a quarter of the world's population and a fast-growing economy, China is rapidly turning into
one of the busiest market centers in the world. Sports marketing has the potential to emerge not only
as an effective vehicle in imitating the development of the Chinese economy, it also affects the
Chinese culture and lifestyle.
Since sports marketing in China has not been analyzed or researched, it is appropriate to study the
consumer as well as general financial implications. A look at American success in sports marketing
will be helpful. However, implementing such strategies in China creates special considerations
because of the existence of cultural and economic differences between the two countries. This study
attempts to identify the proper marketing strategies in China through an analysis of Chinese
consumers' behavior, attitudes, and buying patterns.
METHODOLOGY
The methodology used in this study consisted of exploratory research of interviewing managers of
retail outlets, secondary research of literature review, and primary research of a total of 4,000
questionnaires distributed in 10 selected cities (Beijing, Chendu, Guangzhou, Nanjing, Qindao,
Shanghai, Shenzhen, Tianjin, Xian, and Xiamen) in China. Questionnaires were administered to a
judgmental quota sample and assigned to one of four age groups with equal males and females. The
rate of response was 53.9%; 2,155 questionnaires were returned.
The analysis of the data include editing, coding, analyzing coded observations, and interpreting
results for solutions to the research problems. Tabulations and measures of central tendency were
used to describe the distribution of characteristics in the subject population. Crosstabulation and chi
square statistics were also used to show relationships between consumer segments.
SURVEY FINDINGS
Eleven major factors affecting consumer purchasing emerged from the questionnaire data analysis: 1.
purchasing reasons; 2. purchasing experience evaluation; 3. income level relative to the expense
level; 4. type of sporting goods purchased; 5. product factors affecting purchasing; 6. people
influencing consumer purchasing; 7. sources of information about where and how to purchase;8.
influence of advertisements; 9. brands consumers prefer; 10. where goods purchased; and 11. time
spent in sports.
Purchasing Reasons: The major reason why people purchased sports products was "for exercise."
Purchasing Experience Evaluation: Approximately half of the respondents indicated that their
purchasing experience was "positive."
3 | P a g e
Income Level Relative to the Expenses Level: The Chinese consumers' income levels range from less
than $173 U.S. per year to over $863 U.S. a year. The middle income level accounted for 72% of the
respondents.
However, most respondents indicated they spent "less than $40 U.S. per year" on the purchase of
sporting goods.
Type of Sporting Goods Purchased: "Shoes" were the No. 1 favorite type of sporting goods for
Chinese consumers. Females tended to purchase apparel; males were more likely to purchase all type
of sporting goods.
Product Factors Affecting Purchasing: "Quality," "style," and "price" were the three most important
factors influencing purchasing decisions. People Influencing Consumer.
Purchasing: "Boy-and-girlfriend" had the most important influence in the decision process. "Parents"
had the least important influence.
Sources of Information About Where and How to Purchase: The major information channel for
Chinese consumers was their "going to a shopping mall" experience.
Influence of Advertisements: Of those responding to the survey, more than half said they either
"occasionally" or "rarely" believe advertisements.
Brands Consumers Prefer: Adidas, Asics, Nike, and Reebok were identified by the Chinese
consumers.
Where Goods Purchased: Most of those surveyed purchased their sporting goods from either "a
sporting goods store" or "a department store."
Time Spent in Sports Activities: Almost 90% of the Chinese consumers spent "less than 5 hours a
week" participating in sports activities. However, three meaningful findings emerged: 1) those who
participated "less than 5 hours per week" in sports activities spent more money purchasing sports
products than those who participated "over 5 hours" per week in sports activities; 2) those in the
income level of "$402 to $863 U.S." spent more time participating in sports activities; 3) young
adults and "unmarried" persons spent more time per week participating in activities than those who
were "married" or elderly.
DISCUSSION ON CONSUMER INFLUENCES
The following discussion focuses on economic, social, and personal influences. These three
categories have unique Chinese environmental and cultural meanings and thus need to be considered
when engaging in marketing in China.
Economic Factors: Unlike the past, when most income was spent on basic necessities such as food
and clothing, the current Chinese consumer spends more money on entertainment and durable goods.
However, the general tendency of the Chinese consumer to have stronger purchasing power and the
fact that their buying decisions reflect creative purchasing beyond bare necessities are not reflected in
sports marketing. It could be concluded that not all Chinese consumers are willing to spend a certain
percent of their income on sports products. This phenomenon can be explained either by consumers'
lack of sufficient income or too high a price for sports products. On the other hand, however, a great
potential exits for marketers who appeal to the Chinese consumers with creative strategies. Those
4 | P a g e
who know desires and needs in specific areas, while being sensitive to economic restraints, may
capture a slumbering Chinese market.
Social and Culture Factors: With the implementation of an "open-door policy" in China, the lifestyle
of the Chinese people changes constantly. Several social and cultural trends may stimulate marketers
to be optimistic about Chinese consumers.
 The most important trend is growing fitness consciousness. No matter the gender, age,
occupation, and education of those surveyed, all tend to tie their purchase of sports products
with exercise and entertainment.
 A second trend the survey revealed is a movement toward use of sports products for casual
reasons. Chinese consumers are embracing a more casual and health-conscious lifestyle.
 There is a growing consumer preference for international products. The Chinese people,
especially the younger generation, are very fond of wearing and using brand name sporting
goods from around the world. Owning high grade sporting goods seems to be a symbol of
wealth and a new fashion for those young consumers.
The social and culture trends just discussed will lead to different pricing, promotional, and
distributional strategies. Since marketing principles are applicable throughout the international arena,
what has proved successful in the American market could basically be transferred and applied to the
China market.
However, to implement a successful marketing strategy in China, several environmental differences
must be taken into account:
1) "Shopping on Sundays" is a hobby for Chinese consumers. Marketers should create an
attractive shopping environment in a prestigious shopping center.
2) Chinese consumers believe what they see rather than what they hear. They know that some
imitation products exist in the market, and dishonesty in advertising is publicized. Marketers
should increase their image by eliminating imitation products and dishonesty advertising.
3) Although consumers' attitudes toward the international sports products are positive, devotion
or loyalty to brands is subject to rapid change. Marketers should have a strategy to keep
consumers' loyalty.
4) Non athletes have greater purchasing power than most athletes or sportspersons. Nonathletes
buy sporting goods either to impress others or simply because their friends have those items.
Marketers should consider how to design sports product with attractive sports features.
5) The type of sporting goods desired by the older and younger generations is widely dissimilar.
And a large gap exists between the desire to purchase and the ability to purchase sporting
goods. It causes problems of bringing the right products to the right person and establishing
an appropriate price policy.
5 | P a g e
6) The purchasing decision of Chinese consumers is heavily influenced by social values and the
social environment. Marketers should establish an educational program to either match or
lead a social value.
Personal Factors: Because of recent social changes, Chinese consumers have learned much from
other cultures. They are more independent and more knowledgeable about commerce and business.
There are at least three particular changes which may create opportunities for marketers:
1) The nuclear family has become the baic economic unit, and it has more power to make
purchasing decisions. With the implementation of the "one child per family" policy in China,
the nuclear family, consisting of parents with one child, has replaced the traditional clan
family which consisted of two or more generations living as one family.
2) Chinese wives are viewed as decision makers for goods purchased in families. Since wives
control family finances, it is important to target wives.
3) Individuals who live in the urban locations have stronger purchasing power. The Chinese
government predicts that by the end of 1995, people in large urban areas will increase to
30% of the population. This modernization movement will undoubtedly create business
opportunities.
Questions
Discuss the various factor which influences consumer behavior in china?
What should be the target market and what can be the marketing strategy?

Answer
Question:   sir i need help solving these. these are not my homework, these are the sample study's form test papers for my mba course. i cant find the solutions for these case sutdies. and these might come in the final exam, which is this month.


Sports marketing strategy: A consumer behavior case analysis in China. Marketing research that targets consumers' influences and financial implications is a worthwhile sports marketing effort. Toimplement effective marketing strategies in a specific country, it is pertinent to understand consumer behavior in that country. In this paper, 11 major findings related to the unique behavior, attitudes, and buying patterns of Chinese sports consumers are highlighted. From the results of questionnairesadministered to 2,155 mainland Chinese consumers in 10 selected cities, different economic, social,and personal factors in the China's environment are determined. The marketing implications of theChinese culture and lifestyle are also discussed.With a quarter of the world's population and a fast-growing economy, China is rapidly turning into oneof the busiest market centers in the world. Sports marketing has the potential to emerge not only as aneffective vehicle in imitating the development of the Chinese economy, it also affects the Chinese culture and lifestyle.Since sports marketing in China has not been analyzed or researched, it is appropriate to study theconsumer as well as general financial implications. A look at American success in sports marketing will be helpful. However, implementing such strategies in China creates special considerations because of the existence of cultural and economic differences between the two countries. This study attempts toidentify the proper marketing strategies in China through an analysis of Chinese consumers' behavior,attitudes, and buying patterns.

METHODOLOGY
The methodology used in this study consisted of exploratory research of interviewing managers of retail outlets, secondary research of literature review, and primary research of a total of 4,000questionnaires distributed in 10 selected cities (Beijing, Chendu, Guangzhou, Nanjing, Qindao,Shanghai, Shenzhen, Tianjin, Xian, and Xiamen) in China. Questionnaires were administered to a judgmental quota sample and assigned to one of four age groups with equal males and females. Therate of response was 53.9%; 2,155 questionnaires were returned.The analysis of the data include editing, coding, analyzing coded observations, and interpreting resultsfor solutions to the research problems. Tabulations and measures of central tendency were used todescribe the distribution of characteristics in the subject population. Crosstabulation and chi squarestatistics were also used to show relationships between consumer segments.
SURVEY FINDINGS
Eleven major factors affecting consumer purchasing emerged from the questionnaire data analysis: 1. purchasing reasons; 2. purchasing experience evaluation; 3. income level relative to the expense level;4. type of sporting goods purchased; 5. product factors affecting purchasing; 6. people influencingconsumer purchasing; 7. sources of information about where and how to purchase;8. influence of advertisements; 9. brands consumers prefer; 10. where goods purchased; and 11. time spent in sports.Purchasing Reasons: The major reason why people purchased sports products was "for exercise."Purchasing Experience Evaluation: Approximately half of the respondents indicated that their purchasing experience was "positive."Income Level Relative to the Expenses Level: The Chinese consumers' income levels range from lessthan $173 U.S. per year to over $863 U.S. a year. The middle income level accounted for 72% of therespondents.However, most respondents indicated they spent "less than $40 U.S. per year" on the purchase of sporting goods.Type of Sporting Goods Purchased: "Shoes" were the No. 1 favorite type of sporting goods for Chineseconsumers. Females tended to purchase apparel; males were more likely to purchase all type of sportinggoods.Product Factors Affecting Purchasing: "Quality," "style," and "price" were the three most importantfactors influencing purchasing decisions. People Influencing Consumer.Purchasing: "Boy-and-girlfriend" had the most important influence in the decision process. "Parents"had the least important influence.Sources of Information About Where and How to Purchase: The major information channel for Chineseconsumers was their "going to a shopping mall" experience.Influence of Advertisements: Of those responding to the survey, more than half said they either "occasionally" or "rarely" believe advertisements.Brands Consumers Prefer: Adidas, Asics, Nike, and Reebok were identified by the Chinese consumers.Where Goods Purchased: Most of those surveyed purchased their sporting goods from either "asporting goods store" or "a department store


on entertainment and durable goods.However, the general tendency of the Chinese consumer to have stronger purchasing power and the factthat their buying decisions reflect creative purchasing beyond bare necessities are not reflected in sportsmarketing. It could be concluded that not all Chinese consumers are willing to spend a certain percentof their income on sports products. This phenomenon can be explained either by consumers' lack of sufficient income or too high a price for sports products. On the other hand, however, a great potentialexits for marketers who appeal to the Chinese consumers with creative strategies. Those who knowdesires and needs in specific areas, while being sensitive to economic restraints, may capture aslumbering Chinese market.Social and Culture Factors: With the implementation of an "open-door policy" in China, the lifestyle of the Chinese people changes constantly. Several social and cultural trends may stimulate marketers to beoptimistic about Chinese consumers.

The most important trend is growing fitness consciousness. No matter the gender, age,occupation, and education of those surveyed, all tend to tie their purchase of sports productswith exercise and entertainment.

A second trend the survey revealed is a movement toward use of sports products for casualreasons. Chinese consumers are embracing a more casual and health-conscious lifestyle.

There is a growing consumer preference for international products. The Chinese people,especially the younger generation, are very fond of wearing and using brand name sportinggoods from around the world. Owning high grade sporting goods seems to be a symbol of wealth and a new fashion for those young consumers.The social and culture trends just discussed will lead to different pricing, promotional, anddistributional strategies. Since marketing principles are applicable throughout the international arena,what has proved successful in the American market could basically be transferred and applied to theChina market.However, to implement a successful marketing strategy in China, several environmental differencesmust be taken into account:1) "Shopping on Sundays" is a hobby for Chinese consumers. Marketers should create anattractive shopping environment in a prestigious shopping center.

2) Chinese consumers believe what they see rather than what they hear. They know that someimitation products exist in the market, and dishonesty in advertising is publicized. Marketersshould increase their image by eliminating imitation products and dishonesty advertising.3) Although consumers' attitudes toward the international sports products are positive, devotionor loyalty to brands is subject to rapid change. Marketers should have a strategy to keepconsumers' loyalty.4) Non athletes have greater purchasing power than most athletes or sportspersons. Nonathletes buy sporting goods either to impress others or simply because their friends have those items.Marketers should consider how to design sports product with attractive sports features.5) The type of sporting goods desired by the older and younger generations is widely dissimilar.And a large gap exists between the desire to purchase and the ability to purchase sportinggoods. It causes problems of bringing the right products to the right person and establishingan appropriate price policy.6) The purchasing decision of Chinese consumers is heavily influenced by social values and thesocial environment. Marketers should establish an educational program to either match or lead a social value.Personal Factors: Because of recent social changes, Chinese consumers have learned much from other cultures. They are more independent and more knowledgeable about commerce and business. There areat least three particular changes which may create opportunities for marketers:1) The nuclear family has become the baic economic unit, and it has more power to make purchasing decisions. With the implementation of the "one child per family" policy in China,the nuclear family, consisting of parents with one child, has replaced the traditional clanfamily which consisted of two or more generations living as one family.2) Chinese wives are viewed as decision makers for goods purchased in families. Since wivescontrol family finances, it is important to target wives.3) Individuals who live in the urban locations have stronger purchasing power. The Chinesegovernment predicts that by the end of 1995, people in large urban areas will increase to30% of the population. This modernization movement will undoubtedly create businessopportunities.

Questions
Discuss the various factor which influences consumer behavior in china?


Eleven major factors affecting consumer purchasing emerged :
1. purchasing reasons;
2. purchasing experience evaluation; 3. income level relative to the expense level;
4. type of sporting goods purchased; 5. product factors affecting purchasing;
6. people influencing consumer purchasing;
7. sources of information about where and how to purchase;
8. influence of advertisements;
9. brands consumers prefer;
10. where goods purchased;
11. time spent in sports.

Purchasing Reasons: The major reason why people purchased sports products was "for exercise.

"Purchasing Experience Evaluation: Approximately half of the respondents indicated that their purchasing experience was "positive.

"Income Level Relative to the Expenses Level: The Chinese consumers' income levels range from lessthan $173 U.S. per year to over $863 U.S. a year. The middle income level accounted for 72% of the respondents. However, most respondents indicated they spent "less than $40 U.S. per year" on the purchase of sporting goods.

Type of Sporting Goods Purchased: "Shoes" were the No. 1 favorite type of sporting goods for Chinese consumers. Females tended to purchase apparel; males were more likely to purchase all type of sportinggoods.
Product Factors Affecting Purchasing: "Quality," "style," and "price" were the three most importantfactors influencing purchasing decisions.

People Influencing Consumer. Purchasing:
"Boy-and-girlfriend" had the most important influence in the decision process. "Parents"had the least important influence.

Sources of Information About Where and How to Purchase:
The major information channel for Chinese consumers was their "going to a shopping mall" experience.

Influence of Advertisements:
either "occasionally" or "rarely" believe advertisements.

Brands Consumers Prefer:
Adidas, Asics, Nike, and Reebok were identified by the Chinese consumers.

Where Goods Purchased:
Most of those surveyed purchased their sporting goods from either "asporting goods store" or "a department store


“on entertainment and durable goods.”
However, the general tendency of the Chinese consumer to have stronger purchasing power and the factthat their buying decisions reflect creative purchasing beyond bare necessities are not reflected in sportsmarketing.

It could be concluded that not all Chinese consumers are willing to spend a certain percent of their income on sports products. This phenomenon can be explained either by consumers' lack of sufficient income or too high a price for sports products. On the other hand, however, a great potential exits for marketers who appeal to the Chinese consumers with creative strategies. Those who know desires and needs in specific areas, while being sensitive to economic restraints, may capture as lumbering Chinese market.

Social and Culture Factors: With the implementation of an "open-door policy" in China, the lifestyle of the Chinese people changes constantly. Several social and cultural trends may stimulate marketers to beoptimistic about Chinese consumers.

•The most important trend is growing fitness consciousness. No matter the gender, age,occupation, and education of those surveyed, all tend to tie their purchase of sports productswith exercise and entertainment.

•A second trend the survey revealed is a movement toward use of sports products for casual reasons. Chinese consumers are embracing a more casual and health-conscious lifestyle.

•There is a growing consumer preference for international products. The Chinese people,especially the younger generation, are very fond of wearing and using brand name sportinggoods from around the world. Owning high grade sporting goods seems to be a symbol of wealth and a new fashion for those young consumers.The social and culture trends just discussed will lead to different pricing, promotional, and distributional strategies.
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What should be the target market and what can be the marketing strategy?
Since marketing principles are applicable throughout the international arena,what has proved successful in the American market could basically be transferred and applied to theChina market.
However, to implement a successful marketing strategy in China, several environmental differencesmust be taken into account:
1) "Shopping on Sundays" is a hobby for Chinese consumers. Marketers should create anattractive shopping environment in a prestigious shopping center.

2) Chinese consumers believe what they see rather than what they hear. They know that someimitation products exist in the market, and dishonesty in advertising is publicized. Marketers should increase their image by eliminating imitation products and dishonesty advertising.

3) Although consumers' attitudes toward the international sports products are positive, devotion or loyalty to brands is subject to rapid change. Marketers should have a strategy to keep consumers' loyalty.

4) Non athletes have greater purchasing power than most athletes or sportspersons. Non athletes buy sporting goods either to impress others or simply because their friends have those items. Marketers should consider how to design sports product with attractive sports features.

5) The type of sporting goods desired by the older and younger generations is widely dissimilar. And a large gap exists between the desire to purchase and the ability to purchase sporting goods. It causes problems of bringing the right products to the right person and establishing an appropriate price policy.

6) The purchasing decision of Chinese consumers is heavily influenced by social values and thesocial environment. Marketers should establish an educational program to either match or lead a social value.
Personal Factors: Because of recent social changes, Chinese consumers have learned much from other cultures. They are more independent and more knowledgeable about commerce and business. There areat least three particular changes which may create opportunities for marketers:
1) The nuclear family has become the baic economic unit, and it has more power to make purchasing decisions. With the implementation of the "one child per family" policy in China,the nuclear family, consisting of parents with one child, has replaced the traditional clanfamily which consisted of two or more generations living as one family.

2) Chinese wives  are viewed as decision makers for goods purchased in families. Since wivescontrol family finances, it is important to target wives.

3) Individuals who live in the urban locations have stronger purchasing power. The Chinese government predicts that by the end of 1995, people in large urban areas will increase to30% of the population. This modernization movement will undoubtedly create business opportunities.
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