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Retention or defection? Chinese consumers’ decision-making styles for domestic and global brands

By S. Y. Tzeng and W. M. Wong

Abstract

This study explores consumers’ decision-making in terms of intention to switch to foreign brands from domestic brands when purchasing cell phones and sports shoes. A survey of 584 undergraduates in Guangdong, China, shows that domestic brands retain their low quality-conscious, low fashion-and-recreational-conscious and low price-conscious customers and attract low brand-conscious and high choice-confused buyers from foreign brands. Foreign brands typically retain their consumers who are highly conscious of fashion and recreation and keep and draw customers with low choice confusion. High-price-conscious consumers and those who are highly brand-confused will assess foreign and domestic brands when searching for bargains. Regarding managerial implications, local brands should offer products of high quality at low prices and constantly invest in R&D; foreign brands may expand their customer bases and build interactive brand channels; all companies can retain brand-confused customers with preferential packages and design their marketing strategies based on decision-making styles of their target consumers

Topics: Management. Industrial management, HD28-70, Business, HF5001-6182
Publisher: African Online Scientific Information Systems
Year: 2016
DOI identifier: 10.4102/sajbm.v47i4.77
OAI identifier: oai:doaj.org/article:14fc6474c0424393a25018356357f493
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