Research Proposal Team 4, Final Version

Factors Influencing Chinese Consumer Market Trends:
A survey research into Guangzhou consumer market

A research proposal submitted by Team 4:
Fei YANG / Student nr: 2326590 / Email: f.yang@student.fontys.nl
Yuhao XIE / Student nr: 2218030 / Email: y.xie@student.fontys.nl

Supervisor:
Ms. Lindsey REID

Fontys University of Applied Sciences
International Business and Management Studies (IBMS)
Semester 7: PO, Academic Skills
Eindhoven, the Netherlands
Date: 28/04/2016
Word count (chapter 1-4): 3813

Team 4: Factors Influencing Chinese Consumer Market Trends: A survey research into Guangzhou consumer market i
TABLE OF CONTENTS
1 INTRODUCTION ........................................................................................ 4
1.1 PURPOSE OF THE STUDY ........................................................................................................................ 4
1.2 CONTEXT OF THE STUDY / DEMARCATION ................................................................................................. 4
1.3 PROBLEM DEFINITION ........................................................................................................................... 5
1.4 SIGNIFICANCE OF THE STUDY .................................................................................................................. 5
1.5 UNIT OF ANALYSIS ................................................................................................................................ 5
1.6 HYPOTHESIS OR PROPOSITION ................................................................................................................ 5
1.7 DEFINITION OF TERMS ........................................................................................................................... 6
2 LITERATURE REVIEW ................................................................................. 7
2.1 INTRODUCTION .................................................................................................................................... 7
2.2 DEFINITION OF TOPIC OR BACKGROUND DISCUSSION. ................................................................................. 7
2.3 CONCEPTUAL MODEL/THEORETICAL FRAMEWORK ...................................................................................... 8
2.4 FIRST SUB-PROBLEM DISCUSSION HEADING ............................................................................................... 9
NEW GENERATION .................................................................................................................................... 9
GROWING MIDDLE-INCOME HOUSEHOLD ..................................................................................................... 10
GROWTH OF E-COMMERCE ....................................................................................................................... 10
2.5 SUMMARY OF LITERATURE REVIEW ....................................................................................................... 11
3 RESEARCH METHODOLOGY ..................................................................... 12
3.1 RESEARCH METHODOLOGY AND PARADIGM ............................................................................................ 12
3.2 RESEARCH DESIGN ............................................................................................................................. 12
3.3 POPULATION AND SAMPLE ................................................................................................................... 12
POPULATION ......................................................................................................................................... 12
SAMPLE AND SAMPLING METHOD .............................................................................................................. 13
3.4 THE RESEARCH INSTRUMENT ................................................................................................................ 13
3.5 PROCEDURE FOR DATA COLLECTION ....................................................................................................... 13
3.6 DATA ANALYSIS AND INTERPRETATION ................................................................................................... 13
3.7 VALIDITY AND RELIABILITY .................................................................................................................... 14
EXTERNAL VALIDITY ................................................................................................................................. 14
INTERNAL VALIDITY ................................................................................................................................. 14
RELIABILITY ........................................................................................................................................... 15
GENERALIZABILITY .................................................................................................................................. 15
3.8 ETHICAL CONCERN .............................................................................................................................. 16
3.9 CONTRIBUTIONS AND LIMITATIONS OF THE STUDY .................................................................................... 16
4 RESEARCH PLANNING ............................................................................. 17
4.1 TIME-TABLE ...................................................................................................................................... 17
4.2 CONSISTENCY MATRIX ......................................................................................................................... 18

Team 4: Factors Influencing Chinese Consumer Market Trends: A survey research into Guangzhou consumer market ii
5 REFERENCES ........................................................................................... 19
6 APPENDICES ........................................................................................... 25
6.1 APPENDIX A ...................................................................................................................................... 25
6.2 APPENDIX B ...................................................................................................................................... 28

Team 4: Factors Influencing Chinese Consumer Market Trends: A survey research into Guangzhou consumer market iii
LIST OF TABLES

Table 1 Independent Variables and Meaning ......................................................................................... 8
Table 2: Time-plan for completion of research report by Team 4 ........................................................ 17
Table 3: Consistency matrix .................................................................................................................. 18

LIST OF FIGURES

Figure 1: Conceptual model (authors’ conceptualization) ...................................................................... 8

Team 4: Factors Influencing Chinese Consumer Market Trends: A survey research into Guangzhou consumer market
4
1 INTRODUCTION
As China is getting more developed and becomes more mature in its market economy (Chow, 2015, p.
381), Chinese consumers’ spending behaviour is changing as rapidly as the speed of the country’s
economic growth (Crabbe, 2013). On the other hand, in order to pursue more sustainable economic
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-driven economy’’ (Steinberg HKC, 2013). Moreover, it is noted that China is expected to
surpass the United States as the world’s largest consumer market by 2018 (Fung Business Intelligence
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
perspective on where, what and how Chinese consumers are spending, in which the study will take a
closer look at Guangzhou consumer market to identify the significant factors which affecting the
consumer market trends.
1.1 Purpose of the study
By understanding the factors which affect the Chinese consumer market trends, it can reveal certain
the shifting consumer behaviour in today’s marketplace. Therefore, the purpose of the study is to
investigate the main factors which affecting the Chinese consumer market trends. More specifically,
this study will focus on Guangzhou consumer market to determine the influencing factors. Ultimately,
attempting to provide an up-to-date overview and analysis of the Chinese consumer market for
companies to meet the specific needs of the Chinese consumer.
1.2 Context of the study / demarcation
This study focuses on identify the significant factors which affect the Chinese consumer market trends.
The research will be conducted in Guangzhou, a capital city of Guangdong province, as it has become
a major financial and commercial centre in southern China, but also occupy a significant position in the
entire country (HKTDC, 2015).

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1.3 Problem definition
As Chinese consumer market trends are changing rapidly, it is extremely hard for business to keep up
(Accenture, n.d.). Business is eagerly looking for ways to embrace changing consumer landscape.
Therefore, gaining the knowledge regarding the influencing factors is vital for the business decision
making. This study is initiated in order to investigate the significant factors which influencing the
Chinese consumer market trends, to gain a new insight into the marketplace of the Chinese consumer.
1.4 Significance of the study
Research on the trends of Chinese consumer has been conducted numerous times. The previous
studies have examined the changing dynamics of the consumer market in China and highlight the
changing consumer spending behaviours. However, the consumer market is changing over time.
Gaining latest information on customer market trends is important for the business success. This study
provides new insights into the changing consumer market for company to engage more effectively
with their Chinese customer.
1.5 Unit of analysis
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
determine the influencing factors. Specifically, the units of analysis are as following:
• The middle income households with an annually household disposable income of CNY
60,000 to CNY 229,000.
• The young generation who are between 18 and 35 years of age.
1.6 Hypothesis or Proposition
Based on the previous studies, there are three hypothesizes will be conducted in this study:
Hypothesis 1: the young generation will positively impact the Chinese consumer market
trends.
Hypothesis 2: the rising middle-income household has a significant positive influence on the
Chinese consumer market trends.

6
Hypothesis 3: e-commerce has a positive influence on Chinese consumer market trends.
1.7 Definition of terms
Consumption – is the value of goods and services bought by people (Banerjee & Shivani, 2011).
Consumer Spending - is an important economic factor because it usually coincides with the overall
consumer confidence in a nation’s economy (Vitez, n.d.).
Consumer market - consumer market refers to a market where the seller sells the product for a primary
reason of making profits while the buyer buys the products for personal use (Business market and
Consumer market, n.d.).
Consumption pattern - is the way elements of consumption are combined to form level of consumption
as a whole (Consumption Pattern and Expenditure, 2009).
Household final consumption expenditure (formerly private consumption) - is the market value of all
goods and services, including durable products, purchased by households (The World Bank, 2014).

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2 LITERATURE REVIEW
2.1 Introduction
In recent years, a number of previous studies have identified the factors which influencing the Chinese
consumer market trends. Some studies in the relevant literature have found a series of major changes
which are emerging in the Chinese consumer market.
According to a 2013 study by China-Britian Business Council (2013, p. 10), “with growing purchasing
power and more Western brand preferences, Chinese middle income consumer are become an
obvious target market for business”. Moreover, Bouee (2012) found that one of the major consumer
group has emerged from the young consumer who born in the 1980s and 1990s. He emphasized that
consumers aged between 25 and 34 years are the most active buyers compare with other age group.
Furthermore, Hongbing, a director of Aliresearch, argued that “ecommerce is transforming China’s
Marketplace, it has become an emerging shopping channel in China” (BCG, 2015). Besides, Helen has
forecasted five Chinese consumer trends in 2012, which are: Value Seekers, Sophisticated High
Earners, Loyal Brand Enjoyers and Pragmatic Masses (Wang, 2012).
2.2 Definition of topic or background discussion.
The term consumer market trends refer to the changes within the market (Oakes, n.d.). Based on the
previous studies, young generation consumer and middle income consumer, as well as e-commerce
have been identified as significant factors driving the Chinese consumer market transformation. This
study aims to provide a perspective on the Chinese consumer market, in which this study will take a
closer look at these three influencing factors.
Moreover, this study will focus on Guangzhou, which has mentioned in 1.2. According to eChinacities
(2013), “Guangzhou’s economy has rapidly climbed, with the city’s GDP increasing by billions each
year”. In 2015, Guangzhou GDP hit 1.81 trillion, representing an increase of 8.4% (Guangzhou Daily,
2016), has caught up with Singapore and Hong Kong (Du, 2016). Based on HKTDC (2015), Guangzhou
has appeared to be a crucial financial and commercial centre of China, and playing a significant role in
the entire country. The total retail sales of consumer goods grew 12.5% to CNY 769.8 billion in 2014,
accounting for 26.8 of the provincial total (HKTDC, 2015). Furthermore, based on 2013 figures from
IPEX research, Guangzhou ranks third among top 30 major cities of China in term of the size of the
consumer market with a high level of spending power (IPEX, 2015).

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2.3 Conceptual model/theoretical framework

Figure 1: Conceptual model (Kuo, 2016; Bouee, 2012; BCG, 2015)
After completing the literature review, the conceptual model is created to determine the relationship
among the different variable. Based upon the conceptual model, consumer market trends are
identified as Intervening Variable. It will be driven by the generational, income level, as well as e-
commerce which are presented in figure 1 the first arrow (Independent Variable), and eventually
influence the spending behaviors of Chinese consumer.
Table 1 Independent Variables and Meaning
Independent variables Meanings
Generation Young generation “People who born in the
1980s and 1990s and now
reached their twenties and
thirties” (Bouee, 2012, p. 4)
Income level Middle income household “Chinese middle income
consumer’ as those with a
household disposable
income of CNY 60,000 to
CNY 229,000 a year”
(Barton, 2013, p. 3)

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E-commerce “E-commerce is the buying
and selling of goods and
services, or the
transmitting of funds or
data, over an electronic
network, primarily the
Internet. These business
transactions occur either
business-to-business,
business-to-consumer,
consumer-to-consumer or
consumer-to-business.”
(Nelson & van Ketel, n.d.)
2.4 First sub-problem discussion heading
New generation
According to Bouee (2012, p. 4), “a major consumer group has emerged from the generation of Chinese
born in the 1980s and 1990s who have now reached their twenties and thirties.” In this context, Boston
consulting group argued that “an ability to attract a younger demographic will increase spell success
or failure for companies selling into China” (Brennan, 2015). Moreover, consumption by this
generation is growing at more than 20% annually, has been a main driver in the Chinese consumer
market.
The environment and the period in which they grew up are completely different from their parent and
grandparent. They were born under China’s one-child policy, and grew up in a period of Chinese reform
and opening up. In other words, they not only lived in an abundant environment but also enjoyed
material prosperity. Consequently, they have different spending patterns from older generations.
(Bouee, 2012; Seok, 2013)
Recent empirical research by Bouee (2012) has also shown that people aged between 25 and 35 years
are the most active consumers in the Chinese consumer market. Most of them are able to achieve
their financial independence and have an optimistic perception of spending. Moreover, they spend
more rather than other consumer groups. Based on research by Kuo (2016), the consumption of this
group of consumers is increasing at an annual rate of 14%, which are twice as much as for consumers
that are older than 35 years old. Thus:
Hypothesis 1: the young generation will positively impact the Chinese consumer market trends.

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Growing middle-income household
There is a multitude of studies that fall into this consumer group investigate their changing lifestyles
and behaviours. Base on the study by Barton (2013), he estimated that the number of Chinese middle
class household and the annual private consumption will reach 630 million and $6.5 trillion respectively
by 2022, which represents over 45% of entire population of China and 81% of total consumption
growth during that period. He also has defined ‘Chinese middle income consumer’ as “those with a
household disposable income of CNY 60,000 to CNY 229,000 a year” (2013, p. 2). Furthermore, Credit
Suisse argued that the “China’s middle class is now the largest in the world, and growing much faster
than American’s” (Yan, 2014). The middle class has become driving force behind the Chinese economy.
Moreover, Hefele and Dittich (2011) add that “with growing prosperity, consumption patterns
amongst the middle classes have changed markedly and now resemble much more closely those of
the West.” In addition, in comparison to the low income consumer, the middle income consumer has
a higher level of product preference rather than brand preference. Thus:
Hypothesis 2: the rising middle-income household has a significant positive influence on the Chinese
consumer market trends.
Growth of e-commerce
China e-commerce has attracted significant research interest for more than 10 years. According to the
report by China Internet Network Information Centre (CNNIC), China has outpaced the United States
in becoming the world’s largest digital retail market in 2014, with e-commerce revenue grossed CNY
2.79 billion ($439 million), represented 7% of the country’s GDP (Hall, 2015). Meanwhile, the number
of Internet-savvy consumers has reached 361 million in 2015, accounting for 55.7% of the country’s
shoppers. Moreover, Dobbs (2013) predicted that the online sales will achieve more than $650 billion
by 2020.
In this context, Bouee (2012, p. 15-16) argued that “online shopping provides consumer with
many replaceable and complementary categories, creating and encouraging spontaneous
shopping demand and appealing to consumers’ delight in picking products, compared to other
channels online shopping is the most active channel”.
In addition, as the rapid growth of E-commerce in China, the consumer marketplace has changed
dramatically. Empirically, Gao (2015) found out that “e-commerce actually stimulates new demand in
China by filling many needs that are not being met by brick-and-mortar stores”. This opens up business

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opportunities for retailers and brands who want to enter the Chinese e-commerce market (Blanchard,
n.d). Thus:
Hypothesis 3: e-commerce has a positive influence on Chinese consumer market trends.
2.5 Summary of Literature Review
Chinese consumer market has attracted significant research interest for a long time. Three significant
influencing factors which driving consumer market trends have been highlighted by previous studies.
Several studies believe that there is a huge potential from the consumers who born in 1980s and 1990s.
Furthermore, a number of previous studies indicated that middle income households have become a
major consuming force of China. Moreover, the literature argued that e-commerce has developed into
an emerging shopping channel (Bouee, 2012). On the other hand, a conceptual model has been created
based on the literature review. Whilst, three different hypothesis tests are developed by the
researcher regarding these three influencing factors and will be tested with research.

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3 RESEARCH METHODOLOGY
3.1 Research methodology and paradigm
The positivist research approach is taken in this research, where “using scientific method and language
to investigate and write about human experience is supposed to keep the research free of the values,
passions, politics and ideology of the researcher” (Ryan, 2006, p. 13). The researchers’ bias can be
avoided under this approach to ensure impartiality in the collection and analysis of research data.
Moreover, the quantitative methods will be used in the research, as this research is aims to quantify
the attitudes, opinions, as well as the behaviours to generalize results from Guangzhou consumer.
3.2 Research Design
This research attempts to conduct an impartial scientific study to determine the influencing factors
which driving the Chinese consumer market trends. Keep that in mind, correlative research is most
appropriate for this research to determine the relationship between the dependent and independent
variables, which has mentioned in 2.3. Correlative research is considered an effective quantitative
method of research by using statistical data to determine whether there is a relationship between or
among the variables (Waters, n.d.). According to Kendra (2015), the correlative research not only
indicate the direction of a relationship (positive correlations, negative correlations or no correlation),
but also measure the degree of the relationship (strong or weak). 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, and supplies evidence which might support or contradict a theory. However, with this type
of design, the research is not able to dive deeper into the specific consumer group, and also cannot
establish the cause and effect.
3.3 Population and sample
Population
The population of this study consist of 12.7 million permanent residents in Guangzhou.

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Sample and sampling method
Since given the large population size of approximate 12.7 million, the n = (
$% & ' ()*
+
)-
will be used
to determine the sample size in this research (Keller, 2008, p. 411). The researchers suppose that the
respond rate to the survey is 20%, which means the approximate value of (P) =0.2. According to the
formula, sample size of 6,150 will be enough to draw statistically significant conclusions about this
population, with 5% significance level. The appropriate sampling method in this research is probability
sampling in the form of simple random sample, which ensure that each member of the population has
an equal chance of being selected (Sampling Methods, n.d.).
3.4 The research instrument
Base on the research question, researcher chose the subject-completed instrument to collect data.
More specifically, a questionnaire will be utilized to capture evaluative data. The questionnaire consists
of three parts. The first part comprised demographic questions, such as age, income, education, and
gender. The second part focusses on the consumer spending behaviour in their daily life. The third part
of the questionnaire investigated the consumer behaviour towards online shopping. The detailed
questionnaire will be shown in Appendix A.
3.5 Procedure for data collection
In order to collect more efficient and accurate data, a small research team will be organized in
Guangzhou to conduct the survey. Mall intercept method will be used to collect data from the sample
of consumer, the shopping centre which are covering four major commercial districts in Guangzhou
(Tianhe Road commercial district, Zhujiang New Town, Beijing road, and Update Mall). Due to
geographical location, the researchers are not able to be physically present at Guangzhou, ten local
university student will be invited to join the research team to assist researchers with data collection.
On the other hand, the same questionnaire will be published online in order to obtain more data.
3.6 Data analysis and interpretation
The descriptive statistics tool will be applied in this research to provide a concise summary of data. As
the type of data in this research are nominal and ordinal, the data which collect from the sample of

14
consumer will be analysed with a z-test, with 5% significance level (Keller, 2008). Moreover, a
scatterplot will be used to demonstrate the relationship between the variables.
The formula state as (Keller, 2008, p. 407):
𝑝 =
𝑥
𝑛

𝑧 =
')*
' ()' ∕4

The p-value which matched the value of z on z-table will be using to compare with significance level to
verify the hypothesis.
In H1, the x means the number of people whose age is between 18 to 35, n means the total number of
sample size. The value of p is assumed by researchers, here, p = 0.4.
In H2, the x means the number of middle income households, n means the total number of sample size.
The value of p is assumed by researchers, here, p = 0.1.
In H3, the x means the number of people spending on online shopping, n means the total amount of
sample size. The value of p is assumed by researchers, here, p = 0.3.
3.7 Validity and reliability
External validity
As the entire country is not available for this research, Guangzhou will be taken as a target city for this
research as Guangzhou has become a major financial and commercial centre and occupies a key
position in china, it can represent the total population china. Moreover, the research will be conducted
by a survey which enable to maximize the external validity.
Internal validity
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, Mark argued that “all quantitative research methods are subject to
bias and error” (Caputi & Balnaves, n.d., p. 33). The behaviour of the data collector and their bias are

15
the main confounding factors in this research. In order to avoid confounds and maximise the internal
validity in the research, the survey and data collection process activities will be standardized by the
researcher. Moreover, the researcher will be responsible for keeping the whole process on track and
monitoring personal.
Reliability
In order to ensure the reliability of the questionnaire, the pilot test will be carried out on a small group
of volunteers. After that, Cronbach’s alpha will be used to test the reliability of the result. University
of California, Los Angeles has defined the Cronbach’s alpha as:
“Cronbach's alpha is a measure of internal consistency, that is, how closely related a set of
items are as a group. It is considered to be a measure of scale reliability. A "high" value for
alpha does not imply that the measure is unidimensional. If, in addition to measuring internal
consistency, you wish to provide evidence that the scale in question is unidimensional,
additional analyses can be performed. Exploratory factor analysis is one method of checking
dimensionality. Technically speaking, Cronbach's alpha is not a statistical test - it is a coefficient
of reliability (or consistency).” (University of California, Los Angeles, n. d.).

The formula state as:
α =
N ⋅ C
𝑣 + 𝑁 − 1 ⋅ 𝐶

After the calculation, the value of α is 0.74. It is enough of this level to conduct an exploratory research
(see Appendix B for the complete table).
Generalizability
According to Horsburgh (2003, p. 311), “in quantitative work generalizability is statistical”. In this
research, the sample size which mentioned in 3.3.2 has been determined at 6,150 by statistical
method, it is large enough to ensure to match the total population. Moreover, simple random sample
will be used in the Guangzhou region. Hence, the findings from this the research can be assumed that
it is generalizable.

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3.8 Ethical concern
In this research, the privacy of respondents should be taken into account. All the researcher and data
collector are responsible for protecting respondents’ information. Therefore, the survey will be made
to be 100% anonymous.
3.9 Contributions and limitations of the study
The researcher believe that this study contributes to a better understanding of Chinese consumer
market. The findings of this study are expected to determine the influence factors which affecting the
Chinese consumer market trends. The findings provide marketing decision makers with a blueprint for
creating marketing strategy that meet customer needs.
However, there are a number of limitations which can potentially influence the outcomes of the
research. The possible limitations of this research include: (1) the time constraint is one of the major
limitations of this study. The study will be conducted within a limited period of time, the research team
does not have enough time to conduct the research with an enormous sample size. (2) it is not able to
draw causal inferences on the basis of correlative research. (3) the sample size of this study can be
improved to increase the validity. (4) the respondents may not be willing to reveal too much personal
information. (5) this research only focus on younger population and middle income households, the
other consumer groups should not be overly generalized.

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4 RESEARCH PLANNING
4.1 Time-table
Table 2: Time-plan for completion of research report by Team 4
Activity Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Week
10
Proposal presentation
and defence
Yang
& Xie

Proposal approval Yang
& Xie

Conducting
quantitative research
Yang & Xie
Questionnaire
questions finalized
Yang & Xie
Questionnaire
completion
Yang, Xie &
research team

Data analysis and
statistical results
Yang & Xie
Revise final report Yang & Xie
Submit final report Yang & Xie
Final presentation Yang & Xie

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4.2 Consistency matrix
Table 3: Consistency matrix
Research problem stated here
Sub-problem Literature Review Hypotheses or
Propositions or
Research
questions
Source of data Type of data Analysis
Young generation • Brennan,
2015
• Bouee, 2012
• Kuo, 2016
H1: the young
generation will
positively
impact the
Chinese
consumer
market trends.

Questionnaire
survey
Both nominal and
ordinal
Using z-test and
estimator of p-
value to analysis
the result of
research
Middle income
households
• Baron, n.d
• Dominic,
2013
• Suisse, n.d
• Yan, 2014
• Hefele &
Dittich, 2011
H2: the rising
middle-income
household has a
significant
positive
influence on the
Chinese
consumer
market trends.
Questionnaire
survey
Both nominal and
ordinal
Using z-test and
estimator of p-
value to analysis
the result of
research
E-commerce • Bouee, 2012
• Hall, 2015
• Dobbes et
al., 2013
• Gao, 2015
• Blanchard,
n.d
H3: e-
commerce has a
positive
influence on
Chinese
consumer
market trends.
Questionnaire
survey
Both nominal and
ordinal
Using z-test and
estimator of p-
value to analysis
the result of
research

19
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6 APPENDICES
6.1 Appendix A
1. What is your age?
A. 18-23
B. 24-35
C. 36-50
D. above 50
2. what is your gender?
A. Male
B. Female
3. What is your highest level of education you completed?
A. Did not complete high school
B. High school
C. Associate degree
D. Bachelor’s degree
E. Master’s degree or higher
4. What is the size of your family?
A. Single
B. Married couple
C. Married couple with children
5. What would you say is your household annually income?
A. 60,000-79,999 CNY
B. 80,000-99,999 CNY
C. 100,000-119,999 CNY
D. Above 120,000 CNY
E. I don’t want to say

26
6. How much of your average monthly expenditure (excluding the rent)?
A. 1,000-1,999 CNY
B. 2,000-2,999 CNY
C. 3,000-3,999 CNY
D. 4,000-4,999 CNY
E. Above 5,000 CNY
7. What items do you spend most of your money (multiple choice)?
A. Food
B. Commodity
C. Clothing
D. Skin care products
E. Luxury goods
F. Electronic device
G. Other
8. What is your main channel used to received product information?
A. Peer groups’ recommendation
B. Storefront/display window
C. Magazines
D. Entertainment news
E. TV commercials
F. E-commerce websites
G. User evaluation on the Internet
9. Do you spend more on items or experiences?
A. Items
B. Experience
10. How much importance do you give to each of these parameters on a scale of 1to 5 before you
purchasing?
Price 1 2 3 4 5

27
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. Which one you prefer to shop?
A. Shopping in a store
B. Shopping Online
12. Typically, how often would you buy goods or services online?
A. Daily
B. Several time per week
C. Several time per month
D. Less frequently
E. Never
13. What types of product do you prefer to shop online?
A. Food
B. Commodity
C. Clothing
D. Skin care products
E. Luxury goods
F. Electronic device
G. Other
14. What is your monthly spending online?
A. Below 499 CNY
B. 5,00-1,499 CNY
C. 1,500-2,499 CNY
D. 2,500-3,499 CNY
E. 3,500-4,499 CNY
F. Above 4,500 CNY

28
15. What is your main concern when you purchase online?
A. Price
B. Quality
C. After sale service
D. Delivery time
E. Payment security
F. Payment method
G. Other
16. Which platform do you use the most for online shopping
A. Taobao
B. Amazon
C. Dangdang
D. Jinddong
E. Other
6.2 Appendix B
Item 1 Item 2 Item 3 Item 4 Item 5 Sum
Record
1
5.00 4.00 4.00 4.00 5.00 22.00
Record
2
4.00 4.00 4.00 5.00 3.00 19.00
Record
3
4.00 4.00 4.00 4.00 4.00 19.00
Record
4
4.00 3.00 5.00 4.00 3.00 14.00
Record
5
4.00 4.00 5.00 4.00 5.00 19.00
Record
6
4.00 5.00 5.00 3.00 4.00 19.00
Record
7
4.00 5.00 5.00 4.00 4.00 19.00
Record
8
5.00 4.00 4.00 4.00 4.00 17.00
Record
9
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

29

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