Our analysis reveals important insights into the likely demographic and socio-demographic profiles of C… As the richest guy in the world, Gates doesn’t need to prove himself or get attention with brand labels. International Journal of Sports Marketing & Sponsorship, 10 (1), 63-78. The statistics are arresting: ten million new Chinese consumers enter the market each year. Determinants and antecedents of general attitudes towards advertising. Much of the Chinese athletes’ rise to prominence may be attributed to China’s rapidly growing sport industry, which has been fueled by a massive government funding of elite sport development (Yang, Sparks & Li, 2008). Journal of Current Issues and Research in Advertising, 27 (2), 67-80. Journal of Advertising, 29 (3), 1-13. Brookings figures that in 2015, newly wealthy consumers in China and India already outspent their American counterparts, accounting for a combined 17 percent of … Such an approach might involve the use of ACEs to establish cross-border continuity. Permission must be received for subsequent distribution in print or electronically. Canadian consumers don’t think and shop in the same ways as their American counterparts. Chinese consumers want to feel special, just as American and European consumers do. Older consumers may value price over quality, but younger generations are increasingly willing to pay premiums for higher-end products. In contrast, China itself is a market that the U.S. can hardly ignore. & Song, K. (2009). This does not mean brands for everyday consumer items are unimportant. This finding suggests that advertisers may benefit from knowing the cultural meanings contained in potential ACEs or may otherwise risk the association of undesirable meanings with their products. Journal of Product and Brand Management, 18 (4), 262-271. This segment appeals to a wide swathe of Chinese consumers who place an equal value on price and quality. With intelligent, diligent and culturally sensitive merchandising and marketing, companies everywhere still have a shot at becoming familiar brands in the country that is home to the biggest one-day spending binge on the planet. – which has claimed the lives of more than 41,000 people and infected at least 842,000 worldwide – is fundamentally changing consumer behaviour in Asia, Europe and North America. Additionally, McCracken (1986) argued that celebrity endorsers can serve to transfer cultural meaning from the celebrity to the advertised product. Celebrity endorsements are also prevalent in Ireland (O’Mahony & Meenaghan, 1997/98) and the UK (Erdogan, Baker, & Tagg, 2001). The results suggest that relative to U.S. consumers, Chinese consumers are considerably more receptive to ads featuring ACEs, especially toward the information contained in these ads. This fact alone is a compelling reason to get to know the idiosyncrasies of Chinese shopping behavior. Highlighted below are two critical differentiators. Journal of Sport Administration and Supervision, International Journal of Consumer Studies, International Journal of Sports Marketing & Sponsorship, Skip other details (including permanent urls, DOI, citation information), http://hdl.handle.net/2027/spo.6776111.0002.105, http://www.forbes.com/global/2008/0630/049.html, http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20070919005517&newsLang=en. Due to the impact of COVID-19 on Chinese consumers, the household spending is projected to fall by -2.8% y-o-y in 2020, from the pre-COVID-19 forecast of a growth of 7.2% y-o-y. Peter Stein, global CEO of Razorfish, noted this key difference in a recent Forbes column, emphasizing that 75% of Chinese Internet users post online feedback on their purchases at least once a month, compared with less than 20% in the U.S. “There are now more than 300 million people [in China] who move forward only with purchasing a product after getting consent from their peers via social media and ecommerce forums,” Stein wrote, making social media the “key pillar of all engagement for successful Chinese brands.”. Celebrity images in magazine advertisements: An application of the visual rhetoric model. But some unique factors are also at work, such as the government’s one-child policy and the marked economic imbalances among regions. Simmers, C. S., Damron-Martinez, D. & Haytko, D. (2009). Thus, this study will examine the following hypotheses: H1: Chinese consumers will have more favorable attitudes towards ACEs than will U.S. consumers. China also is one of the world's largest consumers of commodities: Ads involving celebrity endorsements are commonplace in China, with many of these featuring celebrity athletes (Tschang, 2009). This fact simplified the questionnaire construction process by eliminating the need for instrument translation, which attempted to avoid the translation limitations typical to cross-cultural consumer research. Considering the high cost of using these kinds of strategies, their execution thus becomes fraught with financial risk when undertaken without a sufficient understanding of consumers’ reactions to celebrity endorsements in the targeted countries. So American consumers have already been paying significant taxes to the government, and some of the merchandise that we import and distribute through United States carry duties as high as 37.5%. To be sure of taking part in that journey, companies in the market should start making the acquaintance of China’s 2020 consumers today. Chinese consumers love to get a bargain, but they definitely don’t want to spend a fortune on something that looks cheap. The group’s buying behaviors and viewing patterns, however, are different and unique from the total population. A comparison of American and Chinese consumers’ attitudes toward athlete celebrity endorsers. John L. Kent, Ph.D., is a professor of marketing at Missouri State University. As a society, China places tremendous value on harmonious relationships—something marketers may wish to emphasize when crafting messages. In contrast, China rates significantly higher on the power distance index (PDI 80) (Hofstede, 1991). Yao is reported to have endorsement deals with Reebok, Apple, VISA, TAG Heuer, Gatorade, and McDonald’s totaling more than $20 million (Liu, Huang, & Minghua, 2007). Survey results found 68% of Chinese respondents said they were “happy or overjoyed” with their shopping experiences, compared with only 48% of American respondents and 41% of British respondents who said they felt the same way. Long-term Orientation (LTO) China is a pragmatic society with high LTO as compared to USA. Studies have shown that Chinese exports led to lower prices for U.S. consumers — and helped lift many millions of Chinese out of poverty. Kindel's (1983) model of Chinese consumer behavior was used to develop research hypotheses concerning differences in the evaluation and selection of retail stores by Chinese and American consumers. Please contact mpub-help@umich.edu for more information. The article was written from the perspective of an American, and it did not include Chinese perspectives on the way Americans do business. Burkitt, L. (2008). Other research has shown celebrity endorsements to be an effective strategy for gaining and holding consumers’ attention (Atkin & Block, 1983), improving brand attitude and increasing purchase likelihood (Friedman & Friedman, 1979), and increasing brand loyalty/enhancing favorable word-of-mouth (Bush, Martin, & Bush, 2004). Conjoint analysis was employed to model the decision-making of a convenience sample of subjects from each country. A substantial amount of this research has involved the five dimensions of national culture introduced by Hofstede (2001) and (Hofstede & Bond, 1988). The country leads the world in mobile shopping: more than three out of four Chinese consumers said they have used a mobile phone to shop, compared with a global average of 43%, according to the PwC survey results. I desire products endorsed by likable celebrity athlete endorsers. Liu, M., Huang, Y. But a number of Chinese economic practices have also benefitted American consumers. In China, about 90% of ecommerce is done in online marketplaces, vast collections of the virtual shops of thousands of independent merchants supported by third-party service providers such as parcel-delivery companies. Social commerce is one of the major driving forces of consumption in China. Kindel's (1983) model of Chinese consumer behavior was used to develop research hypotheses concerning differences in the evaluation and selection of retail stores by Chinese and American consumers. Thus, in high context cultures (e.g., China), celebrity endorsers as cultural icons can effectively imply and convey informational messages to consumers without overstating them (Choi, et al., 2005). American consumers, comparatively, are still logging on to the Internet from computers, either desktop or laptop. The Chinese sample consisted of native Chinese college-aged students enrolled in a business course offered at the Chinese branch campus of a Midwestern American university. Petrovici, D. & Marinov, M. (2007). They want to experience more of what the world has to offer through their product choices, and they want opportunities to be educated about products in a sophisticated way, something that the online retail environment is uniquely suited for. Business advertising appeals as a mirror of cultural dimensions: A study of eleven countries. Findings of this research serve as an initial cross-cultural study comparing consumers’ perceptions of celebrity endorsers and ACEs in the U.S. and China. That’s roughly one-third more sales volume in a single 24-hour period than the three biggest U.S. shopping days combined. Retailers such as Walmart import goods from China, so prices would go up and living standards would be squeezed. But on the face value of it, I would say that the difference may not be that high. A few years ago, Chinese consumers usually cited cheaper prices as the main reason they shopped online. These findings support the premise that Chinese consumers, being from a high power distance culture, may tend to more willingly accept the recommendations of ACEs than those in the U.S. China Business Review, 36 (1), 38-42. Meanwhile, Chinese people spend an average of three hours a day on their smartphones, mainly for social media and ecommerce. Ads with celebrity athlete endorsers serve as valuable information sources. Organizational Dynamics, 16 (4), 5-21. While the concept of contracts does exist on quite a large extent in China, they are not given as much importance as in the West. Therefore, different findings may have resulted had the sample been drawn from the less developed, less affluent, more pastoral interior regions of China. For Shanghai-based Pearl Studio, China's imminent rise … The prevalence of global advertising strategies involving ACEs highlights the need for global advertising managers to understand how consumers’ perceptions of celebrity endorsements vary cross-culturally. Indeed, an exhaustive review of the celebrity endorsement literature uncovered no cross-national studies comparing U.S. and Chinese consumer’s perceptions of celebrity endorsers, and more specifically, athlete celebrity endorsers, a remarkable phenomenon considering that China is one of the world’s fastest growing sportswear markets (Tong & Hawley, 2009). Chinese shoppers are also more engaged than those from the U.S. or the U.K. when it comes to learning about products they are interested in purchasing, Millward Brown found. Atkin, C. & Block, M. (1983). Regional market segments of China: Opportunities and barriers in a big emerging market. To be successful closing deals in China, American business people must learn some important cultural differences. HONG KONG -- China is expected to overtake the U.S. to become the world's largest consumer of goods this year despite a slowdown in the economy and retail sales, according to a research report. Highlighted below are two critical differentiators. Sports sponsorship as a strategic investment in China: Perceived risks and benefits by corporate sponsors prior to the Beijing 2008 Olympics. Later, Hofstede & Bond (1988) conducted an additional study with a questionnaire designed for the Chinese employees and managers. Shopping patterns on Tmall.com, China’s largest shopping website for authentic branded goods, demonstrate that consumers especially seek out imported brands for several reasons including better quality, product safety, lack of domestic availability, and lower prices. Chinese consumers, probably more so than any others in the world, depend heavily on product recommendations from online reviewers. According to McCracken (1986), a celebrity endorser is any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement. The Confucius connection: from cultural roots to economic growth. Measures: The survey instrument included a nine-item scale designed to measure respondents’ general attitudes towards ACEs. Benefits of this approach include enhanced ad recall, increased product desirability, and enhanced product glamour (Spielman, 1981). While the prevalence of celebrity endorsements in the U.S. has been well documented, such endorsements are by no means a unique American phenomenon. More and more consumers of other races and ethnicities are adopting Asian-American cooking styles and habits. Choi, S. M., Lee, W. & Kim, H. (2005). American consumers are reducing their spending in a variety of ways. Cui, A. Journal of Consumer Research, 13 (1), 71-84. On both campuses, questionnaires were administered to respondents in a classroom setting. Journal of Advertising Research, 23 (1), 57-61. To those in the West who have heard of it, this annual 24-hour sale, held on an unusual Chinese holiday called Singles Day and hosted by ecommerce giant Alibaba Group (my employer), is a source of curiosity if for no other reason than its sheer scale. More pain than gain: How the US-China trade war hurt America Ryan Hass and Abraham Denmark Friday, August 7, 2020. (2000). Journal of Sport Administration and Supervision, 1(1), 52-64. doi: 10.3883/v1i1_simmers; published online April, 2009. The findings of this research potentially benefit global advertising strategists considering using ACEs by providing insight concerning how consumers in China and the U.S. differ in their responsiveness to ACEs. A convenience sample of college students was drawn for both the U.S. and Chinese samples. are the most impacted, and non-essential … This study compared U.S. and Chinese consumer responses to questions regarding their general attitudes towards ACEs. Order from Chaos. Chinese consumers, by contrast, take a more nuanced approach by accounting for positive and negative reviews simultaneously. China is more traditional than USA. Measuring customer-based brand equity: Empirical evidence from the sportswear market in China. Indeed, technology is integral to the shopping process, which frequently incorporates social media, smartphones, tablets and PCs in decision-making and buying. The old axiom of politics, “All politics is local,” is also applicable to consumer trends. Local companies that focus on the good-enough segment understand local consumers better, and offer products or services with the right balance of the two essentials: price and quality. Published online April, 2010. It's true: Some aspects of China's rise--primarily the availability of cheap labor and the country's devalued currency--have made things more challenging for the United States. More significantly, one in four Chinese consumers say they shop with a mobile phone at least once a week. European Journal of Marketing, 41 (3/4), 307-326. Increasingly affluent Chinese consumers now actively search for products offering a premium experience. They have been the … China's annual inflation rate eased to 0.5 percent in October 2020, the lowest since October 2009 and below market expectations of 0.8 percent. Understand the Importance of Relationships . For much of the late 19th and early 20th century, Americans settled in cities in pursuit of factory work. Hofstede, G. H. & Bond, M. H. (1988). Stafford, M., Spears, N., & Hsu, C. (2003). Advances in Consumer Research, 28, eds. Respondents rated their levels of agreement with each of the nine items. 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