CHINESE CONSUMERS COUNTRY-OF-ORIGIN PREFERENCES OF SKIN CARE PRODUCTS

1. CHINESE CONSUMERS COUNTRY-OF-ORIGIN PREFERENCES OF SKIN CARE PRODUCTS Purpose of Study The Chinese market, potentially the world’s largest cosmetic market by the century’s end, has attracted significant investment from multinational companies around the world. The purpose of this study is to evaluate how Chinese consumers’ attitudes towards various countries influence the perceptions of skin-care products, thus providing companies with managerial information. Research Questions • How do Chinese consumers rank products from the countries in terms of perceived quality, value, and image? • How do Chinese consumers rank the five top trading partners in terms of Country Image? • How is Chinese consumer attitude toward a country reflected in attitude toward products from that country? Method and Sample Description Conclusion and Implications • The study was conducted in Guangdong Province, the largest market for skin-care products in China • Chinese female college students were surveyed because of the volume of usage of skin care products by this demographic • Questionnaires were distributed through campus liaisons at two major universities in the Guangdong province, 330 female college students were interviewed in this study • A total of 308 questionnaires were distributed and resulted in 280 usable questionnaires • USA and French brands should maintain the quality and image perception, and focus on the upper crust of the Chinese Market • Japan brands should use promotional strategies to improve the perceived image of their brands in relation to price • Germany and China brands should focus on the value-conscious consumer and engage in intensive distribution of their brands in China • Chinese attitudes and purchasing patterns are evolving and are becoming increasingly sophisticated. Therefore, future research should also examine segmentation opportunities in the skin care market based on: • Usage pattern • Consumption quantity • Climate of difference regions • Regional culture The study provides a view of the relatively competitive positions of manufacturers from different exporting countries and domestic manufacturers in the Chinese cosmetics market in terms of various marketing variables as perceived by consumers. The manufacturers will benefit from learning how foreign brands are evaluated relative to domestic brands. Undergraduate Marketing Student: Zhan Yi Chen, Faculty: Dr. Rama Yelkur, Dr. Chuck TomkovickUniversity of Wisconsin – Eau Claire May 01, 2006 Results Perceived product quality or image USA France Japan Britain Germany China Perceived product value China Germany Britain USA France Japan Perceived country image USA Japan Germany Britain France China Country of Origin a = Significant at 0.01 level Significant difference means the relationship between two variables exists. Country image is positively correlated with perceived quality or perceived image of skin care brands from all the countries. However, no significant relationship was found between country image and perceived value of brands. The results generally suggest that when consumers have a positive attitude toward a country, they usually have a positive toward the quality and image of the brands from these countries Quality Brand Countries share the same ranking for a dimension if no significant differenceis found between them.