Changing consumer markets and marketing in China

China's enormous population and rapidly increasing consumer spending are attractive to many multinational corporations (MNCs) to supply products to the Chinese markets. Yet MNCs continue to struggle to find ways to serve this diverse and culturally unique market. This article reviews and integrates existing knowledge on Chinese consumers' responses to marketing efforts, and specifies and empirically tests several propositions. Chinese consumers are found to have higher brand consciousness, brand loyalty, lower price sensitivity for visible goods, and to be less responsive to sales promotions compared to Western consumers. We also find indications that the influence of face considerations (i.e., prestige earned in a social network) cause Chinese consumers to have higher emphasis on prestige in their channel choices and advertisement evaluations than Western consumers. By outlining these implications, our study can help MNCs better understand how Chinese consumers behave and that understanding can help MNCs adapt their marketing efforts.

Brady et al.'s (2005) service evaluation models: A replication and extension in China

The research described in this study replicates and extends the Brady et al., [Brady, M. K., Knight, G. A., Cronin Jr. J. Toma, G., Hult, M. and Keillor, B. D. (2005), emoving the Contextual Lens: A Multinational, Mult-setting Comparison of Service Evaluation Models, Journal of Retailing, 81(3), pp. 215-230] study suggestion that future research in service evaluations should focus on emerging service economies such as China. The intent of the research was to examine the suitability of the models suggested by Brady and colleagues in the Chinese market. The replication somewhat successfully duplicated their finding as to the superiority of the comprehensive service evaluation model. Additionally, we also sought to examine as to whether the service evaluation model is gender invariant. Our findings indicate that there are significant differences between gender. These findings are discussed relative to the limitations associated with the study.

An examination of the consequences of market orientation in China

Recent literature suggests that the relationship between market orientation and business performance may be moderated by the nature of the external environment. While the conceptual arguments for such a relationship are well established, empirical evidence on the precise nature of this link has been both limited and ambiguous. The current paper provides further evidence on the nature of the links between market orientation, the environment and performance through a comparative analysis of two business sectors in China with distinctively different competitive environments. The results indicate that market orientation's impact on business performance is positive regardless of environmental conditions. However, the environment is found to moderate the relationship between market orientation and customer satisfaction. Finally, the study provides evidence that market orientation also has positive impacts on power in distribution channels and corporate social responsibility.

The impact of regulation and ownership structure on market orientation in the tourism industry in China

The nature of market orientation and its impact on business performance and other related outcomes have been extensively researched in a range of service contexts including tourism. In contrast, our understanding of the factors that influence market orientation is still limited. This paper reports on a study that contributes to our understanding of the determinants of market orientation within the tourism sector by focusing specifically on the role played by two strategically important variables, namely government regulation and ownership structure. The study analyses two national samples of hotels and travel services in the rapidly growing tourism industry in China. The hotel sector has been open to foreign investment for two decades and has a diversified ownership structure, whereas the travel services sector has been dominated by government owned firms and relatively closed to foreign investment. The results of the survey suggest that of the two new antecedents, only government regulation has a significant role to play in driving market orientation. Internally, access to appropriate managerial and marketing capabilities was identified as a significant predictor of the development of market orientation.

Brand extensions in emerging markets:theory development and testing in China

Brand extensions are increasingly used by multinational corporations in emerging markets such as China. However, understanding how consumers in the emerging markets evaluate brand extensions is hampered by a lack of research in the emerging markets contexts. To address the knowledge void, we built on an established brand extension evaluation framework in the West, namely Aaker and Keller (1990)1. Aaker , D. A. and Keller , K. L. 1990 . Consumer evaluations of brand extensions . Journal of Marketing , 54 ( 1 ) : 27 – 41 . [CrossRef], [Web of Science ®] View all references, and extended the model by incorporating two new factors: perceived fit based on brand image consistency and competition intensity in the brand extension category. The additions of two factors are made in recognition of the uniqueness of the considerations of consumers in the emerging markets in their brand extension evaluations. The extended model was tested by an empirical experiment using consumers in China. The results partly validated the Aaker and Keller model, and evidence that both newly added factors were significant in influencing consumers' evaluation of brand extensions was also found. More important, one new factor proposed, namely, consumer-perceived fit based on brand image consistency, was found to be more significant than all the factors in Aaker and Keller's original model, suggesting that the Aaker and Keller model may be limited in explaining how consumers in the emerging markets evaluate brand extensions. Further research implications and limitations are discussed in the paper.

The impacts of market orientation and corporate social responsibility on firm performance:evidence from China

Purpose – The purpose of this paper is to investigate the joint effects of market orientation (MO) and corporate social responsibility (CSR) on firm performance. Design/methodology/approach – Data were collected via a questionnaire survey of star-rated hotels in China and a total of 143 valid responses were received. The hypotheses were tested by employing structural equation modelling with a maximum likelihood estimation option. Findings – It was found that although both MO and CSR could enhance performance, once the effects of CSR are accounted for, the direct effects of MO on performance diminish considerably to almost non-existent. Although this result may be due to the fact that the research is conducted in China, a country where CSR might be crucially important to performance given the country's socialist legacy, it nonetheless provides strong evidence that MO's impact on organizational performance is mediated by CSR. Research limitations/implications – The main limitations include the use of cross-sectional data, the subjective measurement of performance and the uniqueness of the research setting (China). The findings provide an additional important insight into the processes by which a market oriented culture is transformed into superior organizational performance. Originality/value – This paper is one of the first to examine the joint effects of MO and CSR on business performance. The empirical evidence from China adds to the existing literature on the respective importance of MO and CSR.

Brady et al.'s (2005) service evaluation models: A replication and extension in China

The research described in this study replicates and extends the Brady et al., [Brady, M. K., Knight, G. A., Cronin Jr. J. Toma, G., Hult, M. and Keillor, B. D. (2005), emoving the Contextual Lens: A Multinational, Mult-setting Comparison of Service Evaluation Models, Journal of Retailing, 81(3), pp. 215-230] study suggestion that future research in service evaluations should focus on emerging service economies such as China. The intent of the research was to examine the suitability of the models suggested by Brady and colleagues in the Chinese market. The replication somewhat successfully duplicated their finding as to the superiority of the comprehensive service evaluation model. Additionally, we also sought to examine as to whether the service evaluation model is gender invariant. Our findings indicate that there are significant differences between gender. These findings are discussed relative to the limitations associated with the study.

What does "good" look like? A three-country examination of marketing practice

Grounded in configuration theory, this study investigates the notion of co-alignment of business orientation, marketing assets and marketing capabilities, and their relationships to performance. Using these criteria, profiles of high performing businesses were derived and assessed against a three country sample of Brazil, China and the UK. Findings are consistent, statistically significant and invariant across the sample. They show that businesses with ideal profiles significantly outperform competitors in terms of market-based performance, customer satisfaction, and financial performance. Furthermore, profiles of top performing organizations are similar across countries with respect to their orientations, assets, and capabilities. Only customer-based assets, network capabilities, and customer and shareholder orientations were different. Implications and future research directions are subsequently addressed.