Research Proposal Team 4, Final Version
Transcript of Research Proposal Team 4, Final Version
FactorsInfluencingChineseConsumerMarketTrends:
AsurveyresearchintoGuangzhouconsumermarket
AresearchproposalsubmittedbyTeam4:
FeiYANG/Studentnr:2326590/Email:[email protected]
YuhaoXIE/Studentnr:2218030/Email:[email protected]
Supervisor:
Ms.LindseyREID
FontysUniversityofAppliedSciences
InternationalBusinessandManagementStudies(IBMS)
Semester7:PO,AcademicSkills
Eindhoven,theNetherlands
Date:28/04/2016
Wordcount(chapter1-4):3813
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TABLEOFCONTENTS
1 INTRODUCTION........................................................................................4
1.1 PURPOSEOFTHESTUDY........................................................................................................................41.2 CONTEXTOFTHESTUDY/DEMARCATION.................................................................................................41.3 PROBLEMDEFINITION...........................................................................................................................51.4 SIGNIFICANCEOFTHESTUDY..................................................................................................................51.5 UNITOFANALYSIS................................................................................................................................51.6 HYPOTHESISORPROPOSITION................................................................................................................51.7 DEFINITIONOFTERMS...........................................................................................................................6
2 LITERATUREREVIEW.................................................................................7
2.1 INTRODUCTION....................................................................................................................................72.2 DEFINITIONOFTOPICORBACKGROUNDDISCUSSION..................................................................................72.3 CONCEPTUALMODEL/THEORETICALFRAMEWORK......................................................................................82.4 FIRSTSUB-PROBLEMDISCUSSIONHEADING...............................................................................................9
NEWGENERATION....................................................................................................................................9 GROWINGMIDDLE-INCOMEHOUSEHOLD.....................................................................................................10 GROWTHOFE-COMMERCE.......................................................................................................................10
2.5 SUMMARYOFLITERATUREREVIEW.......................................................................................................11
3 RESEARCHMETHODOLOGY.....................................................................12
3.1 RESEARCHMETHODOLOGYANDPARADIGM............................................................................................123.2 RESEARCHDESIGN.............................................................................................................................123.3 POPULATIONANDSAMPLE...................................................................................................................12
POPULATION.........................................................................................................................................12 SAMPLEANDSAMPLINGMETHOD..............................................................................................................13
3.4 THERESEARCHINSTRUMENT................................................................................................................133.5 PROCEDUREFORDATACOLLECTION.......................................................................................................133.6 DATAANALYSISANDINTERPRETATION...................................................................................................133.7 VALIDITYANDRELIABILITY....................................................................................................................14
EXTERNALVALIDITY.................................................................................................................................14 INTERNALVALIDITY.................................................................................................................................14 RELIABILITY...........................................................................................................................................15 GENERALIZABILITY..................................................................................................................................15
3.8 ETHICALCONCERN..............................................................................................................................163.9 CONTRIBUTIONSANDLIMITATIONSOFTHESTUDY....................................................................................16
4 RESEARCHPLANNING.............................................................................17
4.1 TIME-TABLE......................................................................................................................................174.2 CONSISTENCYMATRIX.........................................................................................................................18
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5 REFERENCES...........................................................................................19
6 APPENDICES...........................................................................................25
6.1 APPENDIXA......................................................................................................................................256.2 APPENDIXB......................................................................................................................................28
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LISTOFTABLES
Table1IndependentVariablesandMeaning.........................................................................................8
Table2:Time-planforcompletionofresearchreportbyTeam4........................................................17
Table3:Consistencymatrix..................................................................................................................18
LISTOFFIGURES
Figure1:Conceptualmodel(authors’conceptualization)......................................................................8
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1 INTRODUCTION
AsChinaisgettingmoredevelopedandbecomesmorematureinitsmarketeconomy(Chow,2015,p.
381), Chinese consumers’ spending behaviour is changing as rapidly as the speed of the country’s
economicgrowth(Crabbe,2013).Ontheotherhand,inordertopursuemoresustainableeconomic
growth, the Chinese government which under the leadership of new president Xi Jinping ‘‘has
reaffirmed its determination to shifts away from the investment and export toward a more
consumption-driveneconomy’’(SteinbergHKC,2013).Moreover,itisnotedthatChinaisexpectedto
surpasstheUnitedStatesastheworld’slargestconsumermarketby2018(FungBusinessIntelligence
Centre, 2013). Understanding the changing consumer market trends which drive the consumer
spending behaviour has become crucial for company success (Oakes, n.d.). This study provides a
perspectiveonwhere,whatandhowChineseconsumersarespending,inwhichthestudywilltakea
closer look at Guangzhou consumer market to identify the significant factors which affecting the
consumermarkettrends.
1.1 Purposeofthestudy
ByunderstandingthefactorswhichaffecttheChineseconsumermarkettrends,itcanrevealcertain
the shifting consumerbehaviour in today’smarketplace. Therefore, thepurposeof the study is to
investigatethemainfactorswhichaffectingtheChineseconsumermarkettrends.Morespecifically,
thisstudywillfocusonGuangzhouconsumermarkettodeterminetheinfluencingfactors.Ultimately,
attempting to provide an up-to-date overview and analysis of the Chinese consumer market for
companiestomeetthespecificneedsoftheChineseconsumer.
1.2 Contextofthestudy/demarcation
ThisstudyfocusesonidentifythesignificantfactorswhichaffecttheChineseconsumermarkettrends.
TheresearchwillbeconductedinGuangzhou,acapitalcityofGuangdongprovince,asithasbecome
amajorfinancialandcommercialcentreinsouthernChina,butalsooccupyasignificantpositioninthe
entirecountry(HKTDC,2015).
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1.3 Problemdefinition
AsChineseconsumermarkettrendsarechangingrapidly,itisextremelyhardforbusinesstokeepup
(Accenture, n.d.). Business is eagerly looking for ways to embrace changing consumer landscape.
Therefore,gainingtheknowledgeregardingtheinfluencingfactors isvitalforthebusinessdecision
making. This study is initiated in order to investigate the significant factors which influencing the
Chineseconsumermarkettrends,togainanewinsightintothemarketplaceoftheChineseconsumer.
1.4 Significanceofthestudy
Research on the trends of Chinese consumer has been conducted numerous times. The previous
studies have examined the changing dynamics of the consumermarket in China and highlight the
changing consumer spending behaviours. However, the consumer market is changing over time.
Gaininglatestinformationoncustomermarkettrendsisimportantforthebusinesssuccess.Thisstudy
providesnew insights into thechangingconsumermarket forcompany toengagemoreeffectively
withtheirChinesecustomer.
1.5 Unitofanalysis
Middle income households and young generation occupy a significant position in the Chinese
consumer market (Bouee, 2012). Therefore, this study will focus on these two target group to
determinetheinfluencingfactors.Specifically,theunitsofanalysisareasfollowing:
• ThemiddleincomehouseholdswithanannuallyhouseholddisposableincomeofCNY60,000toCNY229,000.
• Theyounggenerationwhoarebetween18and35yearsofage.
1.6 HypothesisorProposition
Basedonthepreviousstudies,therearethreehypothesizeswillbeconductedinthisstudy:
Hypothesis 1: the young generation will positively impact the Chinese consumer market
trends.
Hypothesis2:therisingmiddle-incomehouseholdhasasignificantpositiveinfluenceonthe
Chineseconsumermarkettrends.
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Hypothesis3:e-commercehasapositiveinfluenceonChineseconsumermarkettrends.
1.7 Definitionofterms
Consumption–isthevalueofgoodsandservicesboughtbypeople(Banerjee&Shivani,2011).
ConsumerSpending - isan importanteconomic factorbecause itusuallycoincideswith theoverall
consumerconfidenceinanation’seconomy(Vitez,n.d.).
Consumermarket-consumermarketreferstoamarketwherethesellersellstheproductforaprimary
reasonofmakingprofitswhile thebuyerbuys theproducts forpersonaluse (Businessmarketand
Consumermarket,n.d.).
Consumptionpattern-isthewayelementsofconsumptionarecombinedtoformlevelofconsumption
asawhole(ConsumptionPatternandExpenditure,2009).
Householdfinalconsumptionexpenditure(formerlyprivateconsumption)-isthemarketvalueofall
goodsandservices,includingdurableproducts,purchasedbyhouseholds(TheWorldBank,2014).
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2 LITERATUREREVIEW
2.1 Introduction
Inrecentyears,anumberofpreviousstudieshaveidentifiedthefactorswhichinfluencingtheChinese
consumermarkettrends.Somestudiesintherelevantliteraturehavefoundaseriesofmajorchanges
whichareemergingintheChineseconsumermarket.
Accordingtoa2013studybyChina-BritianBusinessCouncil(2013,p.10),“withgrowingpurchasing
power and more Western brand preferences, Chinese middle income consumer are become an
obvioustargetmarketforbusiness”.Moreover,Bouee(2012)foundthatoneofthemajorconsumer
grouphasemergedfromtheyoungconsumerwhoborninthe1980sand1990s.Heemphasizedthat
consumersagedbetween25and34yearsarethemostactivebuyerscomparewithotheragegroup.
Furthermore,Hongbing, adirectorofAliresearch, argued that “ecommerce is transformingChina’s
Marketplace,ithasbecomeanemergingshoppingchannelinChina”(BCG,2015).Besides,Helenhas
forecasted five Chinese consumer trends in 2012, which are: Value Seekers, Sophisticated High
Earners,LoyalBrandEnjoyersandPragmaticMasses(Wang,2012).
2.2 Definitionoftopicorbackgrounddiscussion.
Thetermconsumermarkettrendsrefertothechangeswithinthemarket(Oakes,n.d.).Basedonthe
previousstudies,younggenerationconsumerandmiddleincomeconsumer,aswellase-commerce
havebeenidentifiedassignificantfactorsdrivingtheChineseconsumermarkettransformation.This
studyaimstoprovideaperspectiveontheChineseconsumermarket,inwhichthisstudywilltakea
closerlookatthesethreeinfluencingfactors.
Moreover,thisstudywillfocusonGuangzhou,whichhasmentionedin1.2.AccordingtoeChinacities
(2013), “Guangzhou’seconomyhas rapidly climbed,with the city’sGDP increasingbybillionseach
year”.In2015,GuangzhouGDPhit1.81trillion,representinganincreaseof8.4%(GuangzhouDaily,
2016),hascaughtupwithSingaporeandHongKong(Du,2016).BasedonHKTDC(2015),Guangzhou
hasappearedtobeacrucialfinancialandcommercialcentreofChina,andplayingasignificantrolein
theentirecountry.Thetotalretailsalesofconsumergoodsgrew12.5%toCNY769.8billionin2014,
accountingfor26.8oftheprovincialtotal(HKTDC,2015).Furthermore,basedon2013figuresfrom
IPEXresearch,Guangzhouranksthirdamongtop30majorcitiesofChinaintermofthesizeofthe
consumermarketwithahighlevelofspendingpower(IPEX,2015).
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2.3 Conceptualmodel/theoreticalframework
Figure1:Conceptualmodel(Kuo,2016;Bouee,2012;BCG,2015)
Aftercompletingtheliteraturereview,theconceptualmodeliscreatedtodeterminetherelationship
among the different variable. Based upon the conceptual model, consumer market trends are
identified as InterveningVariable. Itwill bedrivenby the generational, income level, aswell as e-
commercewhich are presented in figure 1 the first arrow (Independent Variable), and eventually
influencethespendingbehaviorsofChineseconsumer.
Table1IndependentVariablesandMeaning
Independentvariables Meanings
Generation Younggeneration “Peoplewhoborninthe1980sand1990sandnowreachedtheirtwentiesandthirties”(Bouee,2012,p.4)
Incomelevel Middleincomehousehold “Chinesemiddleincomeconsumer’asthosewithahouseholddisposableincomeofCNY60,000toCNY229,000ayear”(Barton,2013,p.3)
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E-commerce “E-commerceisthebuyingandsellingofgoodsandservices,orthetransmittingoffundsordata,overanelectronicnetwork,primarilytheInternet.Thesebusinesstransactionsoccureitherbusiness-to-business,business-to-consumer,consumer-to-consumerorconsumer-to-business.”(Nelson&vanKetel,n.d.)
2.4 Firstsub-problemdiscussionheading
Newgeneration
AccordingtoBouee(2012,p.4),“amajorconsumergrouphasemergedfromthegenerationofChinese
borninthe1980sand1990swhohavenowreachedtheirtwentiesandthirties.”Inthiscontext,Boston
consultinggrouparguedthat“anabilitytoattractayoungerdemographicwillincreasespellsuccess
or failure for companies selling into China” (Brennan, 2015). Moreover, consumption by this
generationisgrowingatmorethan20%annually,hasbeenamaindriver intheChineseconsumer
market.
Theenvironmentandtheperiodinwhichtheygrewuparecompletelydifferentfromtheirparentand
grandparent.TheywerebornunderChina’sone-childpolicy,andgrewupinaperiodofChinesereform
andopeningup. Inotherwords, theynotonly lived inanabundantenvironmentbutalsoenjoyed
material prosperity. Consequently, they have different spending patterns from older generations.
(Bouee,2012;Seok,2013)
RecentempiricalresearchbyBouee(2012)hasalsoshownthatpeopleagedbetween25and35years
arethemostactiveconsumers intheChineseconsumermarket.Mostofthemareabletoachieve
their financial independenceandhaveanoptimisticperceptionofspending.Moreover, theyspend
moreratherthanotherconsumergroups.BasedonresearchbyKuo(2016),theconsumptionofthis
groupofconsumersisincreasingatanannualrateof14%,whicharetwiceasmuchasforconsumers
thatareolderthan35yearsold.Thus:
Hypothesis1:theyounggenerationwillpositivelyimpacttheChineseconsumermarkettrends.
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Growingmiddle-incomehousehold
Thereisamultitudeofstudiesthatfallintothisconsumergroupinvestigatetheirchanginglifestyles
andbehaviours.BaseonthestudybyBarton(2013),heestimatedthatthenumberofChinesemiddle
classhouseholdandtheannualprivateconsumptionwillreach630millionand$6.5trillionrespectively
by 2022,which represents over 45% of entire population of China and 81% of total consumption
growthduringthatperiod.Healsohasdefined‘Chinesemiddleincomeconsumer’as“thosewitha
householddisposableincomeofCNY60,000toCNY229,000ayear”(2013,p.2).Furthermore,Credit
Suissearguedthatthe“China’smiddleclassisnowthelargestintheworld,andgrowingmuchfaster
thanAmerican’s”(Yan,2014).ThemiddleclasshasbecomedrivingforcebehindtheChineseeconomy.
Moreover, Hefele and Dittich (2011) add that “with growing prosperity, consumption patterns
amongstthemiddleclasseshavechangedmarkedlyandnowresemblemuchmorecloselythoseof
theWest.”Inaddition,incomparisontothelowincomeconsumer,themiddleincomeconsumerhas
ahigherlevelofproductpreferenceratherthanbrandpreference.Thus:
Hypothesis2:therisingmiddle-incomehouseholdhasasignificantpositiveinfluenceontheChinese
consumermarkettrends.
Growthofe-commerce
Chinae-commercehasattractedsignificantresearchinterestformorethan10years.Accordingtothe
reportbyChinaInternetNetworkInformationCentre(CNNIC),ChinahasoutpacedtheUnitedStates
inbecomingtheworld’slargestdigitalretailmarketin2014,withe-commercerevenuegrossedCNY
2.79billion($439million),represented7%ofthecountry’sGDP(Hall,2015).Meanwhile,thenumber
ofInternet-savvyconsumershasreached361millionin2015,accountingfor55.7%ofthecountry’s
shoppers.Moreover,Dobbs(2013)predictedthattheonlinesaleswillachievemorethan$650billion
by2020.
Inthiscontext,Bouee(2012,p.15-16)arguedthat“onlineshoppingprovidesconsumerwith
many replaceable and complementary categories, creating and encouraging spontaneous
shoppingdemandandappealingtoconsumers’delightinpickingproducts,comparedtoother
channelsonlineshoppingisthemostactivechannel”.
In addition, as the rapid growth of E-commerce in China, the consumermarketplace has changed
dramatically.Empirically,Gao(2015)foundoutthat“e-commerceactuallystimulatesnewdemandin
Chinabyfillingmanyneedsthatarenotbeingmetbybrick-and-mortarstores”.Thisopensupbusiness
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opportunitiesforretailersandbrandswhowanttoentertheChinesee-commercemarket(Blanchard,
n.d).Thus:
Hypothesis3:e-commercehasapositiveinfluenceonChineseconsumermarkettrends.
2.5 SummaryofLiteratureReview
Chineseconsumermarkethasattractedsignificantresearchinterestforalongtime.Threesignificant
influencingfactorswhichdrivingconsumermarkettrendshavebeenhighlightedbypreviousstudies.
Severalstudiesbelievethatthereisahugepotentialfromtheconsumerswhobornin1980sand1990s.
Furthermore,anumberofpreviousstudiesindicatedthatmiddleincomehouseholdshavebecomea
majorconsumingforceofChina.Moreover,theliteraturearguedthate-commercehasdevelopedinto
anemergingshoppingchannel(Bouee,2012).Ontheotherhand,aconceptualmodelhasbeencreated
based on the literature review. Whilst, three different hypothesis tests are developed by the
researcherregardingthesethreeinfluencingfactorsandwillbetestedwithresearch.
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3 RESEARCHMETHODOLOGY
3.1 Researchmethodologyandparadigm
Thepositivistresearchapproachistakeninthisresearch,where“usingscientificmethodandlanguage
toinvestigateandwriteabouthumanexperienceissupposedtokeeptheresearchfreeofthevalues,
passions,politicsand ideologyof the researcher” (Ryan,2006,p.13).The researchers’biascanbe
avoidedunder this approach toensure impartiality in the collectionandanalysisof researchdata.
Moreover,thequantitativemethodswillbeusedintheresearch,asthisresearchisaimstoquantify
theattitudes,opinions,aswellasthebehaviourstogeneralizeresultsfromGuangzhouconsumer.
3.2 ResearchDesign
Thisresearchattemptstoconductan impartialscientificstudytodeterminethe influencingfactors
whichdrivingtheChineseconsumermarkettrends.Keepthat inmind,correlativeresearch ismost
appropriateforthisresearchtodeterminetherelationshipbetweenthedependentandindependent
variables,which hasmentioned in 2.3. Correlative research is considered an effective quantitative
methodofresearchbyusingstatisticaldatatodeterminewhetherthereisarelationshipbetweenor
among the variables (Waters, n.d.). According to Kendra (2015), the correlative research not only
indicatethedirectionofarelationship(positivecorrelations,negativecorrelationsornocorrelation),
butalsomeasurethedegreeoftherelationship(strongorweak).Furthermore,Kwanjai(2016)argued
that “in this type of design, relationships between and among a number of facts are sought and
interpreted”. In addition, Waters (n. d.) added that correlative research is also often used for
prediction,andsuppliesevidencewhichmightsupportorcontradictatheory.However,withthistype
ofdesign,theresearchisnotabletodivedeeperintothespecificconsumergroup,andalsocannot
establishthecauseandeffect.
3.3 Populationandsample
Population
Thepopulationofthisstudyconsistof12.7millionpermanentresidentsinGuangzhou.
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Sampleandsamplingmethod
Sincegiventhelargepopulationsizeofapproximate12.7million,then = ($% & ' ()*+
)-willbeused
todeterminethesamplesizeinthisresearch(Keller,2008,p.411).Theresearcherssupposethatthe
respondratetothesurveyis20%,whichmeanstheapproximatevalueof(P)=0.2.Accordingtothe
formula, samplesizeof6,150willbeenoughtodrawstatistically significantconclusionsabout this
population,with5%significancelevel.Theappropriatesamplingmethodinthisresearchisprobability
samplingintheformofsimplerandomsample,whichensurethateachmemberofthepopulationhas
anequalchanceofbeingselected(SamplingMethods,n.d.).
3.4 Theresearchinstrument
Baseontheresearchquestion, researcherchosethesubject-completed instrumenttocollectdata.
Morespecifically,aquestionnairewillbeutilizedtocaptureevaluativedata.Thequestionnaireconsists
ofthreeparts.Thefirstpartcompriseddemographicquestions,suchasage,income,education,and
gender.Thesecondpartfocussesontheconsumerspendingbehaviourintheirdailylife.Thethirdpart
of the questionnaire investigated the consumer behaviour towards online shopping. The detailed
questionnairewillbeshowninAppendixA.
3.5 Procedurefordatacollection
In order to collect more efficient and accurate data, a small research team will be organized in
Guangzhoutoconductthesurvey.Mallinterceptmethodwillbeusedtocollectdatafromthesample
ofconsumer,theshoppingcentrewhicharecoveringfourmajorcommercialdistrictsinGuangzhou
(Tianhe Road commercial district, Zhujiang New Town, Beijing road, and Update Mall). Due to
geographicallocation,theresearchersarenotabletobephysicallypresentatGuangzhou,tenlocal
universitystudentwillbeinvitedtojointheresearchteamtoassistresearcherswithdatacollection.
Ontheotherhand,thesamequestionnairewillbepublishedonlineinordertoobtainmoredata.
3.6 Dataanalysisandinterpretation
Thedescriptivestatisticstoolwillbeappliedinthisresearchtoprovideaconcisesummaryofdata.As
thetypeofdatainthisresearcharenominalandordinal,thedatawhichcollectfromthesampleof
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consumer will be analysed with a z-test, with 5% significance level (Keller, 2008). Moreover, a
scatterplotwillbeusedtodemonstratetherelationshipbetweenthevariables.
Theformulastateas(Keller,2008,p.407):
𝑝 =𝑥𝑛
𝑧 = ')*' ()' ∕4
Thep-valuewhichmatchedthevalueofzonz-tablewillbeusingtocomparewithsignificancelevelto
verifythehypothesis.
InH1,thexmeansthenumberofpeoplewhoseageisbetween18to35,nmeansthetotalnumberof
samplesize.Thevalueofpisassumedbyresearchers,here,p = 0.4.
InH2,thexmeansthenumberofmiddleincomehouseholds,nmeansthetotalnumberofsamplesize.
Thevalueofpisassumedbyresearchers,here,p = 0.1.
InH3,thexmeansthenumberofpeoplespendingononlineshopping,nmeansthetotalamountof
samplesize.Thevalueofpisassumedbyresearchers,here,p = 0.3.
3.7 Validityandreliability
Externalvalidity
Astheentirecountryisnotavailableforthisresearch,Guangzhouwillbetakenasatargetcityforthis
research as Guangzhou has become amajor financial and commercial centre and occupies a key
positioninchina,itcanrepresentthetotalpopulationchina.Moreover,theresearchwillbeconducted
byasurveywhichenabletomaximizetheexternalvalidity.
Internalvalidity
Due to the limitation of quantitative research, the results of this research lack of support from
documented measurement validity, hence, “when it is claimed, is always an estimate” (Benz &
Newman,n.d.,p.39).Moreover,Markarguedthat“allquantitativeresearchmethodsaresubjectto
biasanderror”(Caputi&Balnaves,n.d.,p.33).Thebehaviourofthedatacollectorandtheirbiasare
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themainconfoundingfactorsinthisresearch.Inordertoavoidconfoundsandmaximisetheinternal
validityintheresearch,thesurveyanddatacollectionprocessactivitieswillbestandardizedbythe
researcher.Moreover,theresearcherwillberesponsibleforkeepingthewholeprocessontrackand
monitoringpersonal.
Reliability
Inordertoensurethereliabilityofthequestionnaire,thepilottestwillbecarriedoutonasmallgroup
ofvolunteers.Afterthat,Cronbach’salphawillbeusedtotestthereliabilityoftheresult.University
ofCalifornia,LosAngeleshasdefinedtheCronbach’salphaas:
“Cronbach'salphaisameasureofinternalconsistency,thatis,howcloselyrelatedasetof
itemsareasagroup.Itisconsideredtobeameasureofscalereliability.A"high"valuefor
alphadoesnotimplythatthemeasureisunidimensional.If,inadditiontomeasuringinternal
consistency, you wish to provide evidence that the scale in question is unidimensional,
additionalanalysescanbeperformed.Exploratoryfactoranalysisisonemethodofchecking
dimensionality.Technicallyspeaking,Cronbach'salphaisnotastatisticaltest-itisacoefficient
ofreliability(orconsistency).”(UniversityofCalifornia,LosAngeles,n.d.).
Theformulastateas:
α =N ⋅ C
𝑣 + 𝑁 − 1 ⋅ 𝐶
Afterthecalculation,thevalueofαis0.74.Itisenoughofthisleveltoconductanexploratoryresearch
(seeAppendixBforthecompletetable).
Generalizability
According to Horsburgh (2003, p. 311), “in quantitativework generalizability is statistical”. In this
research, the sample size which mentioned in 3.3.2 has been determined at 6,150 by statistical
method,itislargeenoughtoensuretomatchthetotalpopulation.Moreover,simplerandomsample
willbeusedintheGuangzhouregion.Hence,thefindingsfromthistheresearchcanbeassumedthat
itisgeneralizable.
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3.8 Ethicalconcern
Inthisresearch,theprivacyofrespondentsshouldbetakenintoaccount.Alltheresearcheranddata
collectorareresponsibleforprotectingrespondents’information.Therefore,thesurveywillbemade
tobe100%anonymous.
3.9 Contributionsandlimitationsofthestudy
The researcher believe that this study contributes to a better understandingof Chinese consumer
market.Thefindingsofthisstudyareexpectedtodeterminetheinfluencefactorswhichaffectingthe
Chineseconsumermarkettrends.Thefindingsprovidemarketingdecisionmakerswithablueprintfor
creatingmarketingstrategythatmeetcustomerneeds.
However, there are a number of limitations which can potentially influence the outcomes of the
research.Thepossiblelimitationsofthisresearchinclude:(1)thetimeconstraintisoneofthemajor
limitationsofthisstudy.Thestudywillbeconductedwithinalimitedperiodoftime,theresearchteam
doesnothaveenoughtimetoconducttheresearchwithanenormoussamplesize.(2)itisnotableto
drawcausal inferencesonthebasisofcorrelativeresearch.(3)thesamplesizeofthisstudycanbe
improvedtoincreasethevalidity.(4)therespondentsmaynotbewillingtorevealtoomuchpersonal
information.(5)thisresearchonlyfocusonyoungerpopulationandmiddleincomehouseholds,the
otherconsumergroupsshouldnotbeoverlygeneralized.
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4 RESEARCHPLANNING
4.1 Time-table
Table2:Time-planforcompletionofresearchreportbyTeam4
Activity Week1
Week2
Week3
Week4
Week5
Week6
Week7
Week8
Week9
Week10
Proposalpresentationanddefence
Yang&Xie
Proposalapproval Yang&Xie
Conductingquantitativeresearch
Yang&Xie
Questionnairequestionsfinalized
Yang&Xie
Questionnairecompletion
Yang,Xie&researchteam
Dataanalysisandstatisticalresults
Yang&Xie
Revisefinalreport Yang&Xie
Submitfinalreport Yang&Xie
Finalpresentation Yang&Xie
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4.2 Consistencymatrix
Table3:Consistencymatrix
Researchproblemstatedhere
Sub-problem LiteratureReview HypothesesorPropositionsor
Researchquestions
Sourceofdata Typeofdata Analysis
Younggeneration • Brennan,2015
• Bouee,2012
• Kuo,2016
H1:theyoung
generationwill
positively
impactthe
Chinese
consumer
markettrends.
Questionnairesurvey
Bothnominalandordinal
Usingz-testandestimatorofp-valuetoanalysistheresultofresearch
Middleincomehouseholds
• Baron,n.d
• Dominic,2013
• Suisse,n.d
• Yan,2014
• Hefele&Dittich,2011
H2:therising
middle-income
householdhasa
significant
positive
influenceonthe
Chinese
consumer
markettrends.
Questionnairesurvey
Bothnominalandordinal
Usingz-testandestimatorofp-valuetoanalysistheresultofresearch
E-commerce • Bouee,2012
• Hall,2015
• Dobbesetal.,2013
• Gao,2015
• Blanchard,n.d
H3:e-
commercehasa
positive
influenceon
Chinese
consumer
markettrends.
Questionnairesurvey
Bothnominalandordinal
Usingz-testandestimatorofp-valuetoanalysistheresultofresearch
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5 REFERENCES
Accenture.(n.d.).WinningtheheartsofChineseconsumers—Drivinggrowthandhighperformance.
Retrieved from Accenturestrategy: https://www.accenture.com/us-en/insight-winning-
hearts-chinese-consumers.aspx
Atsmon,Y.,Magni,M.,&Li,L.(2012).2012AnnualChineseCosumerReport:Frommasstomainstream:
KeepingpacewithChina’srapidlychangingconsumers.Mckinsey&Company.
Banerjee,D.,&Shivani,D.S.(2011).ANALYSISOFLITERATUREREVIEWOFCONSUMPTIONPATTERN–
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Team4:FactorsInfluencingChineseConsumerMarketTrends:AsurveyresearchintoGuangzhouconsumermarket25
6 APPENDICES
6.1 AppendixA
1. Whatisyourage?
A. 18-23
B. 24-35
C. 36-50
D. above50
2. whatisyourgender?
A. Male
B. Female
3. Whatisyourhighestlevelofeducationyoucompleted?
A. Didnotcompletehighschool
B. Highschool
C. Associatedegree
D. Bachelor’sdegree
E. Master’sdegreeorhigher
4. Whatisthesizeofyourfamily?
A. Single
B. Marriedcouple
C. Marriedcouplewithchildren
5. Whatwouldyousayisyourhouseholdannuallyincome?
A. 60,000-79,999CNY
B. 80,000-99,999CNY
C. 100,000-119,999CNY
D. Above120,000CNY
E. Idon’twanttosay
Team4:FactorsInfluencingChineseConsumerMarketTrends:AsurveyresearchintoGuangzhouconsumermarket26
6. Howmuchofyouraveragemonthlyexpenditure(excludingtherent)?
A. 1,000-1,999CNY
B. 2,000-2,999CNY
C. 3,000-3,999CNY
D. 4,000-4,999CNY
E. Above5,000CNY
7. Whatitemsdoyouspendmostofyourmoney(multiplechoice)?
A. Food
B. Commodity
C. Clothing
D. Skincareproducts
E. Luxurygoods
F. Electronicdevice
G. Other
8. Whatisyourmainchannelusedtoreceivedproductinformation?
A. Peergroups’recommendation
B. Storefront/displaywindow
C. Magazines
D. Entertainmentnews
E. TVcommercials
F. E-commercewebsites
G. UserevaluationontheInternet
9. Doyouspendmoreonitemsorexperiences?
A. Items
B. Experience
10. Howmuchimportancedoyougivetoeachoftheseparametersonascaleof1to5beforeyoupurchasing?
Price 1 2 3 4 5
Team4:FactorsInfluencingChineseConsumerMarketTrends:AsurveyresearchintoGuangzhouconsumermarket27
Brand 1 2 3 4 5
Quality 1 2 3 4 5
Comfort 1 2 3 4 5
Style 1 2 3 4 5
11. Whichoneyouprefertoshop?
A. Shoppinginastore
B. ShoppingOnline
12. Typically,howoftenwouldyoubuygoodsorservicesonline?
A. Daily
B. Severaltimeperweek
C. Severaltimepermonth
D. Lessfrequently
E. Never
13. Whattypesofproductdoyouprefertoshoponline?
A. Food
B. Commodity
C. Clothing
D. Skincareproducts
E. Luxurygoods
F. Electronicdevice
G. Other
14. Whatisyourmonthlyspendingonline?
A. Below499CNY
B. 5,00-1,499CNY
C. 1,500-2,499CNY
D. 2,500-3,499CNY
E. 3,500-4,499CNY
F. Above4,500CNY
Team4:FactorsInfluencingChineseConsumerMarketTrends:AsurveyresearchintoGuangzhouconsumermarket28
15. Whatisyourmainconcernwhenyoupurchaseonline?
A. Price
B. Quality
C. Aftersaleservice
D. Deliverytime
E. Paymentsecurity
F. Paymentmethod
G. Other
16. Whichplatformdoyouusethemostforonlineshopping
A. Taobao
B. Amazon
C. Dangdang
D. Jinddong
E. Other
6.2 AppendixB
Item1 Item2 Item3 Item4 Item5 SumRecord
15.00 4.00 4.00 4.00 5.00 22.00
Record2
4.00 4.00 4.00 5.00 3.00 19.00
Record3
4.00 4.00 4.00 4.00 4.00 19.00
Record4
4.00 3.00 5.00 4.00 3.00 14.00
Record5
4.00 4.00 5.00 4.00 5.00 19.00
Record6
4.00 5.00 5.00 3.00 4.00 19.00
Record7
4.00 5.00 5.00 4.00 4.00 19.00
Record8
5.00 4.00 4.00 4.00 4.00 17.00
Record9
5.00 5.00 4.00 3.00 4.00 19.00
Variance 0.25 0.44 0.28 0.36 0.50 4.53