The problem that is addressed in this research paper is about the decision making made by the residents of China to switch their using of foreign brands instead of domestic brands in the sector of purchasing sports shoes and cell phones. The research states that the domestic brands of China has low quality products, provides low price to consumers, old fashioned and recreational conscious and provides confusion among the buyers as compared to the foreign brands. On the other hand foreign brands provide their customers with high quality of product, fashion and recreation to retain their customers. The problem lies this the sector in which the local brands must produce products that are of high quality and at low price. There exit a tough competition between the local brands and the foreign brands in China. Studies shows that the people of China prefers to buy Japanese and Western products more than its local brand because the quality of the foreign brands and their symbolic value. The respondents of China mostly favor foreign brands.
Customers have experience their influence to switch their buying from local products to foreign products. Whether a marketing strategy is effective or not it is indicated by the intentions of the citizens of China in switching their choice. There are many factors that are identified for the switching intentions of the consumers. This includes the customer satisfaction, alternative availability of the product, and the switching cost that is related with product. These factors are considered as the primary reason for the consumers switching their intention for buying foreign products. Customer retention is not always followed by these factors. The way about how the product is and how the service is provided to the customer, is impacted directly on switching intention of the customer. The service or the product that is given to the customer defines weather the customer will switch their intention to foreign products. The consumers make decision about hoe the product or service is presented to them. The customers switch their decisions to foreign brands if they do not get proper quality, service and new fashioned products. Maximum consumers in China use the foreign brands as their daily used products and services. But the trend is changing to some extent in China. Before studies showed that the respondents of China that used the local brands in daily lives were about only 15 percent which has increased its percentage to 23 %. This increase may happen due to several factors. This may happen due to low price on local brands or may happen due to demographic factors for intention of switching.
According to the literature review that is mentioned in the research paper, the brand choice of the consumers varies both in developed countries as well as the developing countries. In countries that are developed, the quality of the local products is comparatively higher from the imported products. But in developing countries, the foreign products are more superior to that of the local products. A phenomenon has aroused among the customers that the products that comes from the developing countries are less superior to that of the products from developed countries. They believe that the products of the developing countries have low quality, performs badly which results in dissatisfaction. Big brands are trusted more by the consumers and are more reliable. By advertising or words by mouth, brand trust is influenced by the customers.
The preference for the international products in China is more among the consumers. The local Chinese brands struggle to build brand trust and thus faces competition and the product surplus in the domestic market. The consumers of China prefer more on foreign brands. The literature review states a survey of an author Wang & Yang. They conducted a survey across the cities of China to get the auto brand preferences. About 1200 citizens were interviewed. The research found that much of the respondents depend on the brands that comes from German which effects the intention of the consumers in China. Another author Ding investigated the preference of Chinese consumers who are adult, for the foreign products because of mostly three reasons better design, superior brands and superior quality. China is a developing country and it is developing rapidly. Since it is developing rapidly, consumers of China are becoming much more diverse and sophisticated. Studies states that the consumers of China is not only depended on foreign products only. The residents of China who have lower income mostly favor Chinese brands because they are much cheaper than the foreign products and those products are affordable to them. The Chinese products have also improved the quality of their products which is giving a tough competition to the foreign markets. Low price at affordable price will be enhanced by all the residents of China.
Switching intention: Customers usually have a tendency to switch their choice of brands from one brand to another. Retention from the client helps to boost the business and gives profit. If a customer retains with a brand for much longer period of time, then it is mostly possible that the utility is generated by the customers also increases. The brand companies do not want to lose their customers by degrading their quality of product. The switching intentions that influence the customers mainly prove satisfaction, alternative and cost of the product also faces challenges. The customer shifts their intention if they are not satisfied by the product or the services that are provided to them. Studies in the literature review showed that about 90 percent of the companies were satisfied with all the current partners of their business but switched to a different provider in next year.
Decision-making styles: The decision making style that are made by the consumers are mostly crucial. Decision making is considered as a mental orientation for characterizing the approach of the customer for making choices. Previous studies in the literature review states that the style Chinese decision making relate to the preference of local and foreign brands.
The article focus on the decision making that was done on the university students who bought sport shoes and mobile phones. The first thing that was noticed was that the young adults have more buying power and a good potential to make an increment in their buying power. The second thing that was noticed was that the students of the university were considered as most important markets for buying the cell phones and the sportswear. Thirdly retail businesses can relate with separate styles of decision making. Sport shoes and cell phones are mostly common among the students of university and they also represent fashion and technology.
Sample and procedure: The method that was undertaken by several researchers did 628 surveys which distributed electronically surveys for the undergraduate students in China. 584 questions were collected from the survey. The data analysis that came out from the survey had an equal number of females and males. The percentages of male were about 50.4% and that of female were 49.6%. There were also few seniors that are about 3.60 %. The average monthly disposal of income for the month was around 900 RMB.
The procedure that was undertaken by the researchers was appropriate because there is no other better option to research on the switching intention and decision making that was to be held on the respondents of China. The responses were taken as a five point like scale which has a range from 1 to 5. 1 represented strongly disagrees and 5 represented strongly agree. There came out several questions that came from the survey that were done in the purchase of sports shoes and cell phones. The question was about what brands of mobile phones were used by the students and what brand of sport shoes they use. They also questioned that which brand of sport shoes and cell phone they will buy if they have no limits on money. These questions were asked to see the switching intention of the students without the price factor. Respondents choose brands that were foreign as well as local in China. Data is also mentioned about the percentage of purchase intention and the ownership of all the domestic and foreign sport shoes and cell phones. The study depicts about 64 percent of residents have foreign mobile phones and among all the students, about 89 percent of students are willing to buy a cell phone of foreign brands. 46 percent of the students used local brand of cell phones and 40 percent students wanted to buy Chinese mobile phones. The data that is shown in this article shows about 45 percent of respondents had a foreign sport shoes. 79 percent of them want to get shoes of foreign brands. 69 % of the students had Chinese shoes and 47 percent wants to remain in the Chinese brands itself. There was another question that was asked to the students. The students were asked to mark all the possible factors that were concerned in buying the sport shoes or cell phones. The list of answer that were given to them were about the price, quality of the product, fashion, promotion, multifunction, service after sale and others. The quality, brand and price were the most common high factors that were considered by the students while buying the sport shoes and the cell phones.
The sampling strategy that was used in this research was on the universities students. The university students use more cell phone and they have a fascination on sport shoes and cell phones. Some questions were asked to some of the students of some universities and according to their answers the rating was done. To determine all the styles of decision making that are related to brand of product and services that are chosen by the customers to switch their intentions and the regression analysis of the binary logistic was also conducted. The regression of binary logistic is mainly a type of regression where dependent variable is considered as a dummy variable that has two outcomes. The switching intention is considered as seven covariates that are continuous and are also coded as dichotomous. The sampling strategy is one of the best strategies that were used in the research.
Some more areas could also be used for carrying out their research process. Instead of carrying out research only on universities, the researchers might also conduct surveys in offices. The working sectors also use mobile phone in abundant amount. From there also data analysis was possible regarding the switching intention about the people in China regarding local brands or foreign brands.