Amy Wong
and Alison Dean
Newcastle Business School, Australia
(July, 2005)
Resulting from a developing economy, deregulation and direct foreign investment, the past two decades have seen a spectacular growth in market forces and consumerism in China. Because of the huge population and market potential of China, understanding consumer preferences and likely behaviours provide rich areas for research.
This paper reports on a study that tested the relationships between store and customer characteristics with perceived value and customer loyalty in retail stores in Tianjin, China.
The sample consisted of 400 actual shoppers in three department stores (n=200) and three supermarkets (n=200).
Multiple regression analysis showed that service orientation, customer orientation, and price consciousness were the best predictors of both perceived value and customer loyalty.
A major implication of the findings is that managers can use the relevant store characteristics to enhance the likelihood of their retail success.
INTRODUCTION
The past two decades have seen enormous growth in retail activity in China,
facilitated by the transition to a market economy, deregulation and direct foreign
investment. Similarly, the standard of living of the population has increased markedly
(Wong and Yu, 2002), providing the opportunity for a ‘shopping lifestyle’ evident in a
recent study that compared consumers from Xi’an and Hong Kong (Tsang, Zhuang and
Zhou, 2003). In 1992, the central government opened China’s retail market to foreign
investors, providing the impetus for retail development and access to more than a
billion consumers (Wong and Yu, 2002). The retail sector is reported to be growing at
7% per annum, much faster than in other developing countries (Mai and Zhao, 2004).
This growth has involved a shift of focus for supermarkets and department stores from
overseas visitors to the local community and a resultant increase in the importance of . . . . . . . (baca selengkapnya)
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