indian vs chinese products
TRANSCRIPT
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A
DISSERTATION REPORT
On
A study on consumer behaviour toward imported product .A study of
Chinese product vs domestic product)
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARDS OF DEGREE OF
MASTERS OF BUSINESS ADMINISTRATION (M.B.A)
(SESSION 2012- 2013)
Under the Supervision of: - Submitted By:-
Mr .Mayank pant Trilok singh karki
Sr. Lecturer M.B.A. 4rd SEM
U.I.M.
UTTRANCHAL INSTITUTE OF MANAGEMENT DEHRADUN
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(AFFILIATED TO UTTARAKHAND TECHNICAL UNIVERSITY, UTTARAKHAND)
CERTIFICATE
I have the pleasure in certifying that Mr. Trilok singh karki is a bonafide student of fourth 4TH
semester of the Masters Degree in Business Administration of Uttaranchal Institute of
Management, Dehradun under Class ID No MBA-14121112102.
He has completed his Summer Training Project workentitled A study on consumer behaviour
toward imported product .A study of Chinese product vs domestic product under my
guidance.
I certify that this is his original effort and has not been copied from any other source. Thisproject has also not been submitted in any other university for the purpose of award of any
degree.
This project fulfils the requirement of the curriculum prescribed by Uttarakhand Technical
University, Dehradun for the said course.
Signature:
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Name of the Guide: Mr. Mayank pant
Date: .
DECLARATION
I declare that the Dissertation Report A study on consumer behaviour toward imported
product .A study of Chinese product vs domestic product is a record of independent
research work carried out by me during the academic year 2012-13 under the guidance of my
faculty guide Mr. Mayank Pant of Uttaranchal Institute of Management.
I also declare that this dissertation is the result of my effort and has not been submitted to
any other University or Institution for the award of any degree, or personal favour whatsoever.
All the details and analysis provided in the report hold true to the best of my knowledge.
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TRILOK SINGH KARKI
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PREFACE
This Research is a part of my DISSERTATION REPORT is an integral part of every M.B.Acourse. We cant rely merely upon theoretical knowledge. It is to be complemented by practical
know how for it to be fruitful. A positive and correct result of the classroom learning needs
realities of practical situation.
The report submission enables the management students to themselves work in
research by them own for getting benefit in the future. It gives them real feel of research work,
which helps them to better equip themselves with the required skills. I got the opportunity to
complete research workon A study on consumer behaviour toward imported product .A
study of Chinese product vs domestic product.In particular I was lucky enough to be part of study and I was assigned to do some research
regarding the strategy formulation for marketing of the product/services of the institute. It has
been a great learning experience for me.
The study would not have been possible without the unconditional guidance
and support of my guide.
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TABLE OF CONTENTS
Acknowledgement 6 Introduction 7-19 Literature survey 21-31 Objective of the research 32 Research Methodology 33-36 Data interpretations 37-43 Findings of study 45 Limitation 46 Conclusions 47 Bibliography 48 Questionnaire 49-51
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ACKNOWLEDGEMENT
I express my deepest sense of gratitude the GOD almighty for the abundant blessing
without which the study would have never been light of the day.
I hereby acknowledge my sincere gratitude to the U.T. University and the
Management for giving me an opportunity to undergo MBA Degree Course and to
undertake this project work successfully.
I wish to express my deep sense of thanks to our HODMr. Saurabh Joshi.
I owe my reverential gratitude faculty guide Mr. Mayank Pant for her valuable
guidance and suggestions rendered at each stage of the project.
Last, but not Least I would like to acknowledge the wholehearted support of my parents,
faculties, and friends who helped me at various stages in completing this work
successfully.
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CHAPTER-1
INTRODUCTION
TO
THE TOPIC
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INTRODUCTION:
Why marketing mix mapping for lenovos computers.
In the 1980s, with economic reform in progress, the Chinese government hired Liu Chuanzhi to
distribute imported computers. Liu founded Lenovo in 1984 with a group of ten engineers
in Beijingwith 200,000 yuan. Their first significant effort, an attempt to import televisions,
failed. The group rebuilt itself within a year by conducting quality checks on computers for new
buyers. Lenovo soon started developing a circuit board that would allow IBM-compatible
personal computers to process Chinese characters. This product was Lenovo's first major
success. In 1990, Lenovo started to manufacture and market computers using its own brand
name.[6] Lenovo officially claims that it was founded on 1 November 1984. Lenovo's
incorporation was approved by the Chinese government on the same day. Jia Xufu, one of the
founders of Lenovo, claims the first meeting in preparation for starting the company was held on
17 October of the same year. Eleven people, the entirety of the initial staff, attended. Each of the
founders were middle-aged members of the Institute of Computing Technology, Chinese
Academy of Sciences. The 200,000 yuan used as start-up capital was approved by Zeng
Maochao. The name for the company agreed upon at this meeting was the Chinese Academy ofSciences Computer Technology Research Institute New Technology Development Company.
2. Design of the study:
1. To know the perception regarding the brand lenovo.2. Marketing mix mapping for lenovo in computer segments.
http://en.wikipedia.org/wiki/Chinese_economic_reformhttp://en.wikipedia.org/wiki/Government_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Liu_Chuanzhihttp://en.wikipedia.org/wiki/Beijinghttp://en.wikipedia.org/wiki/Renminbihttp://en.wikipedia.org/wiki/Chinese_charactershttp://en.wikipedia.org/wiki/Lenovo#cite_note-chief-6http://en.wikipedia.org/wiki/Institute_of_Computing_Technology,_Chinese_Academy_of_Scienceshttp://en.wikipedia.org/wiki/Institute_of_Computing_Technology,_Chinese_Academy_of_Scienceshttp://en.wikipedia.org/w/index.php?title=Zeng_Maochao&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Zeng_Maochao&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Zeng_Maochao&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Zeng_Maochao&action=edit&redlink=1http://en.wikipedia.org/wiki/Institute_of_Computing_Technology,_Chinese_Academy_of_Scienceshttp://en.wikipedia.org/wiki/Institute_of_Computing_Technology,_Chinese_Academy_of_Scienceshttp://en.wikipedia.org/wiki/Lenovo#cite_note-chief-6http://en.wikipedia.org/wiki/Chinese_charactershttp://en.wikipedia.org/wiki/Renminbihttp://en.wikipedia.org/wiki/Beijinghttp://en.wikipedia.org/wiki/Liu_Chuanzhihttp://en.wikipedia.org/wiki/Government_of_the_People%27s_Republic_of_Chinahttp://en.wikipedia.org/wiki/Chinese_economic_reform -
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3. Identify and monitor competitors marketing strategies and activities:
The Strategic Marketing Management Analysis of Lenovo GroupWang, Wen Cheng, Dept. ofBusiness Management, Hwa Hsia Institute of Technology, TaiwanChu, Ying Chien, Department
of Tourism and Leisure, National Penghu University,TaiwanChen, Ying Chang, Department of
Hotel and Restaurant Management, Ching Kuo Institute of Management and Health In recent
years, market competition in the market economy is fierce, the different economic performances
and behaviors based on the enterprises own interests, to enhance their own economic strength
and to achieve the exclusion of similar economic agents. Competition in the IT market is to drive
their own material interests, because of the inherent dynamic of all economic actors, as well as
the loss of their material interests are similar in the market bycrowding out of economic actors.
But How a newly established global brand build its brand awareness and be a successful global
brand become a critical issue. 2005, Lenovo PC merge IBM computer and become the No.3
computer company in the world. As for Lenovo Group, in order to achieve success in the fierce
competition of the products market it needs effective marketing strategy to attain profit and
improve its development in Chinese IT market.The Lenovo Group operating activities are often
completed through marketing products, producing, research, marketing portfolio. The Lenovo
Group product and the quality of products constrain the results of pricing, promotion, and
marketing. Therefore, the Lenovo Group managers attention should also be given to brand-name
marketing, addition to make efforts in the flexibility of the marketing. Marketing strategy,
especially the brand strategy is the real insight beyond product and services specific forms, and
can be able to give consumers the direct interests, the image of the expression. To establish the
product brand, it should be to establish the Lenovo Group brands, because good corporate image
is the fundamental point of the brand building. This research is going to present the conclusion of
a set of practical marketing modules applied in the IT industry; it will further enhance the
Lenovo Group marketing in the computer market.
Keywords: marketing strategicLenovo Groupglobal brandIT industry Merge has become
a common and efficient strategy for a local company to become global brand. But How a newly
established global brand build its brand awareness and be a successful global brand become a
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critical issue. (Chen, 2006) Along with Chinese economic and political reform getting thorough,
the society has changed huge; the development of Lenovo is facing the unprecedented
opportunity and the challenge. According to the basis characteristics of macroscopic external
environment, if Lenovo wants to develop, it must reform the management system, establishes the
unification guiding ideology and the reasonable management mechanism, and adopts
strengthened core competitive power, market development, and product development etc.
integration strategy. Only then can consolidate the leading position of Lenovo, win in the intense
extracurricular market competition, and receive the good social efficiency and the economic
efficiency.Study on Lenovos developmental strategy plan is the application and development of
strategic management theory in Lenovo Company. By analysis of internal the external
environment and study the future development direction of Lenovo, this article has utilized the
knowledge and method of the economic, the management, the marketing, the pedagogy etc to
make a localization for future development and propose the strategy plan and tactics conception
localization of Lenovo. During try to instruct practical work of our national Lenovo, this article
also developed some new thoughts about the strategic management content. The Introduction of
the Lenovo is one of the largest famous personal computer makers in the world. Today, Lenovo
strives to be the global market share leader in each of the market we serve. On September 24, in
2004, Lenovo purchased the personal computer business and the brand ThinkPad famous
computer IBM in the IT industry all over the world. This landmark transaction is taken as its
most important stage of the international strategy in the computer industry. This marks the trinity
Lenovo's internationalization strategy has risen to a new stage, which indicates that Lenovo
already in the United States established a brand-name image localization. Now, the Lenovo has
become the global application company (sales) that have their own package plants in more than 7
countries and cooperation plants in many countries and make the local enterprises business
license and distribution contract. Lenovo is also one of the major global companies (sales), and it
has its own production plants in 7 countries, its products are marketing in nearly 80 countries.
Analysis of the Marketing and Management CapabilitiesIn the domestic market, according to
statistics of Zhong Yikang Company: Lenovo is actually the first brand in Chinese IT industry:
Lenovos overall share of computer market in China has reached 21%, significantly ahead of
competitors; Lenovo has a monopoly status in the personal computer market; Lenovospersonal
computer market share is 24%, which is much higher than the internationally recognized
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monopoly; Lenovo also surpasses in the business computer market; Lenovos business computer
market share is 14%, which is higher than domestic computer suppliers and the strong brand
ranks the first. In the international market, Lenovo has three products occupy the first three
positions in the world market share of the computer industries. According to the results of the
latest survey of the global authority consumer market survey and analysis institutions,
EUROMONITOR show that on turnover statistics, the Lenovo Group ranked the third in the
world personal computer manufacturers, Lenovo's goal is to become the world's first personal
computer manufacturers in the near future.
SWOT Analysis of Lenovo
In order to propose and justify a forward strategy for Lenovos goods, we use the method of
SWOT (strength, weakness, opportunity and treat) to analysis the Lenovo in the follow:
Table 1: SWOT Summary of the Lenovo
STRENGTHS WEAKNESSES
- The Lenovo goods and services have good quality
- The brand recognition and traditional reputation of Lenovo are very good
- Expanding global markets strategy of the marketing
- The diversification of products
- Owns very convenient and beautiful images
- Good public relationship and sponsorship
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- Single marketing channel, the products and services are mainly sold by monopolized stores
- Large number of product lines lie in the expansion of overseas
- Product styles are too fewer to choose
- Marketing sources are not rich
- Prices are not cheap
- Takeover Lenovo to become the largest computer seller
- Specialty business computer industry takes larger market in the world
- European countries market exploration, such as England, France, Italy, Germany, and so on
- Division of products
- There are too many cheap products appearing in the world
- Competition from other shoppers embedding on form factors more pleasing to the consumer
- The market protect in some countries is strong
- Foreign exchange rate fluctuations
OPPORTUNITIES THREATS
Today, Lenovo continues to carry out the proud tradition of the good product and services
quality founded by Lenovo long time ago that will be of great benefit to companies in thecoming years. And the purpose of this Lenovo tradition pioneered by Lenovo is just the best
quality of raw materials, the production of the best quality products. Miles & Snow(1978)
proposed that the organization for changes its product/market in accordance to the environment
change the degree, does for the enterprise strategy classified datum, stressed that the organization
to the changeable environment's response including (1) defender (Defenders), its goal is standing
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firm the existing customer, the maintenance present market share, therefore pays great attention
in the narrow product/market domain, favors does not surmount the original scope to seek for the
new opportunity; (2) explorer (Prospectors), its goal grows in the pursue product/market's
innovation as well as the expansion, therefore, seeks the market opportunity continually, favors
holds the post of the change in the industry innovation (Creator); (3) assayer (Analyzers), its goal
in the choice by the explorer was confirmed that has the development potential the new domain
to promote the improvement fast the new product, therefore, is the fore-mentioned two kind of
syntheses, moreover is in a product - market change domain manages (4) reactor (Reactors) in a
relative stabilization, lacks the consistent strategy, is only makes the simple response to the
environment pressure.With an increasingly competitive market, competition among enterprises
gradually evolved from short-term competition to long-term competitiveness, that is no longer
focused on a certain stage, winning or losing the competitiveness of certain products, and to
focus on the product, pricing, marketing, promotion strategy, combined with a clear positioning
of the brand strategy to accumulate, fostering sustainable market advantage. Although Lenovo is
already the leading enterprises of computer industry in the world, however, in the face of other
powerful and internationally renowned brands, it still appeared too weak and feeble in the
industry.
The Marketing Mix: Ingredients for Success
The marketing mix, earlier known as the 4 Ps, (but now has a few more), is a vital part of any
marketing strategy. This is a tool whereby the marketer takes decisions on what and how a
product should be, where it can be sold, how it should be priced, how it will be promoted, how to
equip the people who are responsible for selling the product and so on. Getting the marketing
mix right is equally important for the large corporation and the small business owner.
One of the most critical marketing management decisions is that decision of setting the
marketing mix values, and selecting and employing strategy that periodically changes that
marketing mixes in response to changing business environment. The marketing mix problem
involves setting the values of the marketing decision variables; the four Ps; namely, Product (its
quality), Price, Place (distribution and sales-force expenditures) and Promotion (advertising,
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selling). Developing an effective marketing mix is important for product planners seeking to gain
competitive advantage in industrial markets. The decision regarding specifying the marketing
mix depends on a set of variables, such as competitor's price, competitor's product quality,
competition level, forecasted sales and others. These types of variables necessitate adoption of
appropriate approaches that can deal with such variables' nature marketing mix mapping is a step
done to achieve this.
Product: A lot of thought and effort goes into designing a product offering. The most important
question, as a marketer, a person need to ask is whether there is a need for that type of product
and how this product satisfies that need better than those of their competitors. This will force to
think of why that product is unique, and thereby help to evolve that products Unique Selling
Proposition.
Price: This element of the marketing mix can be many a strategys undoing. A complete
understanding of the financials that drive a business is essential before deciding a pricing
strategy. Base your decision after considering the followingwhat is the perceived value of your
product in the eyes of the customer? How price elastic is the market? Do you wish to load
overheads on to the new product, if an existing product line is capable of absorbing them? What
is your objectivedo you plan to gain market share on the strength of a rock bottom price or do
you wish to create a premium image targeted at niche customers and price your product
accordingly?
Place: This is probably that element of the marketing mix that has undergone a complete change
in definition. Traditional trading and distribution models have given way to remote or virtual
channels. While reaching the customer may have become simpler, your job as a decision maker
has become that much more complex. You now have a plethora of options to choose from do
you go for brick and mortar or direct mailing, use the phone or sell door to door? This decision
should, first and foremost, be driven by customer preference and then by other considerationslike logistics and economics. Indeed most businesses rely on a multi distribution channel
strategy.
Promotion: In a commoditized industry, this is what makes the essential difference. Possibly no
other marketing mix element draws as much attention from strategy makers. Again, let consumer
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needs drive your efforts. Does your marketing communication address a specific need of the
target audience? Is the message memorable? Does it spur action? Here again, the entire
landscape has changed from what it was a few years ago. Promotion has gone way beyond mere
advertising and public relationsit is now a highly evolved process, ranging from live events to
internet marketing. In these times of information overload, promotion strategies must pack
sufficient punch to cut through the clutter.
The marketing mix is a dynamic entity and needs to be reviewed and refined periodically. It
always helps to stay in touch with the latest developments. Marketing mix mapping for the brand
is done to know the standing of the brand mapped with their competitors with respect to essential
element of marketing mix i.e., product, price, place, and promotion. It ensures Studying
marketing mix strategies of the brand mapped and reviewed and refined periodically according
to market condition and competition comparative mapping with other major players in the
market, finding loopholes and building effective marketing mix strategy for Lenovo computer
segment.
Industry structure and development
Lenovo in order to achieve the goal from China brand to international brand, first of all, choose
to become a sponsor of the Olympic Games. Because the Olympic games partners, especially
the
top sponsors, Lenovo may through a variety of ways to obtain global attention on the Olympic
games ,and to achieve branding more convenient on many occasions. IOC top sponsor global
partners a total of 11, Lenovo became one of the first enterprise of China. In Turin WinterOlympics, Lenovo planned a series of brand promotion activities. Product promotion on the one
hand, and on the other hand is a whole brand marketing. Sponsor the Olympic Winter Games,
Lenovo has all round display their strength, also is more recognized by own strength .In addition,
Lenovo opening up world markets by international sports star endorsements, as well as
cooperation with famous events. 2006 football World Cup, Lenovo signed Brazil star Ronald in
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ho as agents of new products. After the contract signing Ronald in ho, in some emerging
markets, such as India, Ronald in ho endorsements by LENOVO 3,000 laptop sales growth
almost was 100%. From these data, Ronald in ho endorsements influence on Lenovo brand and
market lead to a substantive breakthrough. The same year, Lenovo and NBA signed a several
year global marketing co-operation agreement, both in cooperation between marketing in China
and USA, Lenovo will have the right to use on the NBA Logo and star image on the own
product, also with NBA star come to China, NBA China Games and other activities for
marketing to China. After this series of sports marketing, to enhance Lenovos brand image and
spur business growth, improve employee morale.
Lenovo Group
2 . LENOVO GLOBALIZATION DEVELOPMENT PROCESS
One of the essential conditions og globalization is that has a global passage of brand identifi es,
but Lenovo followed 18 of English identifies legend has been rushed in multiple national.
Lenovo PR announced of a copies information displayed, although Lenovo famous rate has up
90% in China domestic consumer , but in face what do you think Lenovo of brand
representative?, different consumer answers is not same. Against this background,
Lenovos decision to launch a new global brand and thorough combing and system promotion to
Lenovo brand architecture.
In 2004, Lenovo formally was renamed Lenovo from Legend. On March 26, 2004, Lenovo
made a significant strategic change: ending of a three-year of services, high technology andglobal to target strategic restructuring, return to manufacturing. Lenovo had been made
market share of around 30% in the area of China PC, but how to breakthrough growth is
Lenovos new problems encountered. Lenovo face two choices, fi rst, globalization, exploring
the PC business in the global market; the second is diversified, exploring new business in the
Chinese IT market, such as communication businesses and IT services
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businesses. Has gone through a period of adjustment and select, Lenovo chose globalization. On
December 8, 2004, Lenovo purchased IBMs global PC business for $ 1.25 billion, became the
worlds third-largest PC maker, with 19,000 employees worldwide, manufacturing and logistics
base in China, the
United States, England, India, and Malaysia, and Japan and Australia and so on.
In November 2005, Lenovo announced dual-branding strategy to abandon IBM and Levono
earlier, started to implement brand strategy as Levono brand in the world, hoped that by virtue of
the geographical advantages of the fast-growing Asia-Pacific market, through channel
integration became overlord of PC machines in the world. On April 28, 2006, Lenovo officially
announced and Spain Barcelona deal, its star Ronaldinho to be global brand image representative
of the Lenovo Group, Lenovo then launched a campaign global branding around Ronaldinhos in
China and overseas markets. But Lenovo faced a huge challenge in the global PC market. In
2006, major changes in the global PC market. Owing to the global PC market through a business
market of severe recession, specializes in this area of Dell and Lenovo THINK departments are
in a difficult situation
and specializes in transactional business HP had a lot of\ benefi t , replace Dell as the new
Overlord PC in the world. According to two leading research fi rms IDC and Gartner, released in
April of this year according to the ranking of the worlds 5 largest PC vendor in the first quarter,
HP continued to occupy the fi rst position, followed by Dell, Acer and Lenovo, the fifth is a
Toshiba. Acer beyond Lenovo has become the worlds third largest PC vendor.
ANALYSIS OF THE GLOBALIZATION STRATEGY OF
LENOVO
Global Investment Strategy
Lenovo carried out mergers and acquisitions for its investment strategy of globalization. Lenovo
acquired IBMs personal computer Division, established the worlds third-largest PC vendor, the
acquisition of transactions total approximately US $ 1.75 billion. After completion of the
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acquisition of the new Lenovo Group, its global headquarters in New York, the main operation
center was established in Beijing and Raleigh (in the United States, North Carolina). Two years
after the implementation of investment strategies, Lenovo has established branch offices in 60
countries around the world, in 160 countries sales network worldwide. Lenovo has the leading
business notebook products, leading research and development capacity and product
differentiation, with more innovative products capacity and more powerful combinations.
Lenovo and IBM formed a long-term strategic alliance, IBM become the preferred service
provider and customer fi nancing for Lenovo, Lenovo become IBM PC vendor of choice, so
IBM can provide their enterprise customers with a variety of PC solutions. After Lenovo
completed its acquisition of the IBM personal computer sector, three overseas private investment
companies for 350 million dollars to fund the new Lenovo. At this point, Lenovo not only
achieved a globalization, equity ownership in terms of products,
marketing networks, but also achieved globalization of financing and other aspects.
Global Brand Strategy
Lenovos brand strategy is to provide premium products and supported by excellent service for
customer. In 2005, the world prestigious financial press--United Kingdom financial times
published Chinas list of the top ten international brands award, Lenovo in second place, and
in current Chinese enterprise in the international ranking of leading brands,Lenovo still ranked
second.After acquisition of the IBM PC ,Lenovo fi rst of all is to use the dual-brand strategy.
LENOVO popularity is relatively abroad, but THINK is very well known abroad. So,
LENOVOs strategy is to enhance brand visibility in a foreign country, with the help of IBM
brand explore the Copyright Canadian Academy of Oriental and Occidental Culture 88
Analysis of Lenovo Globalization Strategy and Enlightenment to Chinese Enterprises
international market, the THINK brand construction Center is to improve its reputation. And
Lenovo began to try to play down the IBM trademark, it is Lenovos ultimate goal that raised
LENOVO brand and play down the IBM trademark at the global.
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Global Marketing Strategy
Lenovo in order to achieve the goal from China brand to international brand, first of all, choose
to become a sponsor of the Olympic Games. Because the Olympic games partners, especially
the top sponsors, Lenovo may through a variety of ways to obtain global attention on the
Olympic games ,and to achieve branding more convenient on many occasions. IOC top sponsor
global partners a total of 11, Lenovo became one of the fi rst enterprise of China. In Turin Winter
Olympics, Lenovo planned a series of brand promotion activities. Product promotion on the one
hand, and on the other hand is a whole brand marketing. Sponsor the Olympic Winter Games,
Lenovo has allround display their strength, also is more recognized by own strength. In addition,
Lenovo opening up world markets by international sports star endorsements, as well as
cooperation with famous events. 2006 football World Cup, Lenovo signed Brazil star
Ronaldinho as agents of new products. After the contract signing Ronaldinho, in some emerging
markets, such as India, Ronaldinho endorsements by LENOVO 3,000 laptop sales growth almost
was 100%. From these data, Ronaldinho endorsements infl uence on Lenovo brand and market
lead to a substantive breakthrough. The same year, Lenovo and NBA signed a severalyear global
marketing co-operation agreement, both in cooperation between marketing in China and USA,
Lenovo will have the right to use on the NBA Logo and star image on the own product, also with
NBA star come to China, NBA China Games and other activities for marketing to China. After
this series of sports marketing, to enhance Lenovos brand image and spur business growth,
improve employee morale.
Globalization Intellectual Property Strategy
In the research and development stage, Lenovo isnow running technical innovation system II,
stronglysupporting the technology transfer so that it becomesmore smooth. Lenovo Research
Institute, the Center forsoftware design and industrial design center, a fi rm-levelinnovation
platforms form the fi rst level of the platform,starting point of research and development is
focused onthose technology that can play a key role in the futuredevelopment of the enterprise,
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and for the continuingvalue of the enterprise technology; And research anddevelopment
institutions of the business unit level is thesecond-level platform, complete the relevant
technologyapplications, products, technology is within one year ofthe study. Two-level research
and development, undertogether with the companys long-term strategy andshort-term patent
strategy, achieve interaction betweentechnology and market. In the course of research and
development, Lenovo implemented a strict managementsystem of intellectual property.
In international trade, purchase of existing intellectual property rights of others is common form
of international technology transfer and intellectual property strategy. Lenovos acquisition to
IBMs PC business is mainly to get the IBM brand and core technology of IBM notebook.
Through mergers and acquisitions, Lenovo has not only a high-quality research and development
team of more than 2000 people, won the worlds most advanced PC technology, and have more
than 5,000 patents, resulting in the huge innovation resources for enterprises in a short
period of time. Lenovo as the leader of Chinas IT industry, it has been through cooperation
between upstream and downstream enterprises in industry, full implementation of intellectual
property rights protection. On April 18, 2006, Lenovo and Microsoft enter into genuine operating
system authorization agreement, amounting to more than US $ 1 billion, is one of Chinas
largest-ever contract of intellectual property rights. This initiative has opened up an effective
way to block piracy and protect intellectual property rights, plan is implemented in just two
months, Lenovo supporting sales of 600,000 set of Microsoft operating systems. At the same
time, Lenovo purchases up to about $ 10 billion for Microsoft in global.
LENOVO GLOBALIZATION BRING ENLIGHTENMENT TO CHINA
Significance of Chinese Enterprises Globalization Strategies
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As Chinas economy technology development level raising, and globalization strategies for
Chinese enterprises is dominated by Chinese companies, is a transnational integration model of
service in Chinas corporate strategy. After the Chinese economy develops to a certain stage, in
terms of market development space, optimize the industrial structure, access to economic
resources, to seek technical sources, also breakthrough trade protection barriers, cultivation of
Chinese large multinational companies with international competitiveness, globalization is an
inevitable option. In addition, after China joins the WTO, both from the need for national
development strategies, improve international relations, or from Chinas foreign exchange
reserves, part of the economic, technical and managerial capacity of the enterprise have the basic
conditions for the implementation of the global strategy. Chinese businesses need to continue to
boom , Chinese enterprises must adopt 89 Copyright Canadian Academy of Oriental and
Occidental Culture SUN Jing (2012). Canadian Social Science, 8 (2), 86-89 a global strategy,
and eventually through the globalization strategy of China enterprises, also will be become the
most successful companies in China
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CHAPTER-2
LITERATURE
REVIEW
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LITERATURE REVIEW
Consumer Behaviour Christopher (1989) studied the shopping habits of consumers to form an
idea of whether or not the store concepts, product ranges and strategies of the companies are
appropriate towards consumer requirements. He believed that consumer behaviours are
unpredictable and changing continuously changing; while trying to under try to understand how
individual or group make their decision to spend their available resources on consumption-
related items. These are factors that influence the consumer before, during, and after a purchase
(Schiffiman and Kanuk, 1997), for example, feedback, from other customers, packing,
advertising, product appearance, and price (Peter & Olsonetc, 2005).
The essence of this approach is critical for organisational success, so that they can have a better
understanding of their customer behaviours (Solomon et al., 2006). The physical action or
behaviour of consumer and their buying decision every day can be measured directly by
marketers (Papanastassiu and Rouhani, 2006). For that reason many organisations these days are
spending lot of their resources to research how consumer makes their buying decision, what they
buy, how much they buy, when they buy, and where they buy (Kotler, Amstrong, 2001). To get
a well coherent result, organisations normally looked at these behaviour base their analysis on
difference conceptions; whether customers buying behaviour were measured from different
perspectives, such as product quality and better service, lower price structured etc (Papanastassiu
and Rouhani, 2006)
Different theories and researchers have claimed that when organisation fully meet all aspects of
its customer needs, the result enhances their profitability (Chaudhuri, 2006), and also enable
them to develop a better tackling strategies for consumer (Asseal, 1998). Possibly, the most
challenging concept in marketing deals with the understanding why buyers do what they do and
what method or philosophy are they using to evaluate the product after the transactions and what
might be the effect on future transaction (Schiffman, 2004). The reason why marketer chooses to
learning about consumers buying behaviour is, from a business perspective; to be able to be
more effectively reach consumers and increase the chances for success (Sargeant & West, 2001).
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Therefore the field of consumer behaviour has take a tremendous turn in the commercial world
and became the fundamental concepts of achieving company goal (Schiffman and Kanuk, 2007).
More recently, different researchers and author have given their definition and meaning of
consumer behaviour. For Michael R. Solomon (2001) consumer behaviours typically analyse the
processes of group selected or individual purchases/dispose of product, service, concept or
experiences to satisfy their need and desires. Additionally, Kotler (1996) suggested that
consumer behaviours have a huge impact in a firm marketing decision making process every
year. There is a risk that what a consumer does will inflict on his or her behaviour and generate
consequences. (Snoj, Pisnik Koda & Mumel, 2004). The user and the purchaser can be different
person, in some cases; another person may be an influencer providing recommendations for or
against certain products without actually buying or using them (Solomon 1999; Solomon et al.1999).
In this case, most of the large consumer electronics retailers tend to gathered more information
about customers motivating factors and what influences their buying behaviours Solomon &
Stuart (2000).
To get in-depth understanding consumer behaviour concepts will gives us an idea on how its
plays significance role in our life and in the whole trend of business profit to various firms whichwill allow the researcher to get the analysis and determine product positioning, develop the
message and targeting strategy in order to reach to the market (Holskins J, 2002). Consumer
behaviour involves lot aspects, such as;
Complex Buying Behaviour
This kind of buying behaviours significantly involved the consumers when making a purchase
decision. This kind of buying behaviours demand consumer to highly involve within the process.In case of high involvement, consumers distinguish salient differences among the competing
brands (Kotler, Wong, Saunders, Armstrong, 2005). This phenomenon is particularly essential
for Dixons consumers to highly involve, and engage in extensive research about the product
category and make a good purchase decision about the firm own manufacturing products, in case
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they invent a new technology electronics products or audio-video equipment that is too
expensive.
Dissonance reducing buying behaviour
This type of buying behaviour also has high consumer involvement. In terms of expensive and
infrequent purchase, consumer also undergoes reducing dissonancy behaviour. It is extremely
difficult for consumers to differential among brands in this type of buying behaviours (Kotler,
Wong, Saunders, Armstrong, 2005). Differentiating Dixons electronics products/equipments in
the same store from PCWorld or Currys is a daunting task and consumer buying these products
may encounter dissonance reducing buying behaviour, as electronics are usually expensive and
self-expressive. Consumer may easily assume that the available electronics brands in the
store/market within a certain price range to be of the same quality. Then if the product does not
meet customers expectations, it will result to consumer to experience post purchase dissonance
(after sales discomfort) (Kotler, Wong, Saunders, Armstrong, 2005).
Habitual Buying Behaviour
Contrariwise, in this type of buying behaviour consumers have lesser levels of involvements. It
implies that consumer do not have to bother to retrieved information about the available products
and brands in the market. So therefore, there are no potential differences between the different
brands. Whether this factor will have damaging effects on Dixons will be analyse at the findings
and analysis chapter below. Because of the less level of involvement, in habitual buying
behaviour consumers dont often go to the stores to purchaseproduct, (Kotler, Wong, Saunders,
Armstrong, 2005).
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However, some believed that if the consumer persistently purchasing the same product
repeatedly, it becomes habit and their mindsets and perceptions changes overtime about the
brand and the provider (Cohen and Manion, 1987). This conception will portray the consumer to
have unconscientiously developed a brand loyalty to that particular brand due to the consumer
regular buying habits (Cohen and Manion, 1987).
Var iety Seeking Buying Behaviour
This type of consumer level of involvement is low. However consumer may became critical in
terms of brand differences. Additionally, consumer may easily switch from PCWorld to Currys
i.e. from one brand to another. The consumers can now have beliefs about the various brands and
choose a brand without much evaluation. But they evaluate that product at the time of purchase.
In this high technology world, consumer switches their brands not because of dissatisfaction but
because of that enormous trend of technological equipment (Aaker, 1991).
1.2 Decision making
The concept of decision making perceived by buying behaviour as a problem-solving activity
that consumer undergo to solve different problems. The stages include; need recognition, striving
for information, evaluates the alternative, purchase decisions, and post-purchase evaluations.
Consumer decisions making can sometimes be confusing and relate to many ideas and beliefs.
There are numerous perspectives of consumer decision making that include the cue utilisation
theory, value perspective, emotional perspective, and information processing perspective.
Value perspective
This emphasises a trade-off circumstances (Lunn et al, 1997). The common value terms often
involve in the trade-off between quality and price, which also may also be defined the value-for-
money between quality and price, which also may defined the value-for-money perspective
(Change and Wildt, 1994; Hansen, 2001; Sweeney and Soutar, 2001). Zeithaml (1988) and Levy
(1999) purpose that consumers are value driven. Zeithaml (1988) claims that
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customers perceived value may be seen as a reacting of the overall evaluation of the
consumption of a product or service based on perceptions of what is received and what is given.
On the other hand, the value emerges partly from what consumers perceive they are receiving
and partly from what consumers perceived they are giving.
Moreover, Blackett and Robins (2001) consistently said that the key drivers of demand for
products are awareness/familiarity, perceived quality, sales quality and price. These tool drivers
influence the perception of customer in term of the decision making. .
Cue util ization theory
This phenomenon allowed consumer to judge the quality and multiplicity of different productwhen deciding what to purchase and how many. Hansen (2005) opined that, perhaps it might be
extremely hard for consumers to evaluate the essence of different in quality aspects in relation to
each other and in relation to requirement or intention to consumer the products.
This has led consumers to encounter instabilities when making judgements about product
quality, but may not have sufficient of time or the motivation to the considered products
comparative. Attempting to overcome their uncertainty and the shortage of information,
following the cue utilization theory (Olson and Jacoby, 1972), consumers may select one or
more indicators (cues or stimuli) to help their judgement of the product quality. A number of
cues are studied in many researches. In judging the product quality, these cues can be used to
indicate, including country of origin (Eliot and Cameron, 1994), product composition (Olson,
1972), brand name, store name (Dodds, 1995) and price (Shapiro, 1973; Brooker et al.,
1986). As mentioned in the cue utilisation theory, consumers try decrease risk by applying cues
(e.g. brand name, price, colour, advertising, etc) as a way of determining the service or the
product quality. Thus, the reliance on one or one or more cues is a risk-reduction strategy
(Hansen, 2005).
Dawar and Parker (1994) depicted that cues assist consumers to determining the quality of the
product when there is a need to reduce the perceived risk of purchase and when consumer
involvement is low. Low-involved consumers use simple decision ways or indicators in their
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assessments to the quality or the overall performance of a product. In contrast, the behaviour of
high-involved consumers are analysed and described on the basis of the information processing
perspective.
I nf ormation processing perspectiveThe information processing perspective indicated that consumer act as problem-solving
cognitive individual researching for a reasoned decision (Kassarjian, 1981).
Dubois (2000) describes that consumers are expected to apply their cognitive resources in
creating beliefs (cognitive part) about the attribute of a product, which may result of the
progression of an overall feeling (affective part) in the sense of liking/disliking product.
Consumers with a positive attitude to a product are expected to be more willing to consider
purchasing in (cognitive part) than consumers with less positive attitude to the same product.
Emotional perspective Emotion is not the response of an evaluation process in buying a product,
but it is an effective reaction to consumers perceptions of stimuli in the environment. It
represents an effective view of consumer behaviours and it is caused by consumers appearance
to particular stimuli (Bagozzi et al., 1999). Zajonc and markus (1982) discussed that the
traditional cognitive view should be complemented by determining consumers affective
responses, like the emotional responses to the perception and assessment of products and
experiences. Consumer involvement also influences to emotion perspective and product
evaluations.
Peter et al (1999) debated that if product involvement is high, people may experience stronger
affective reaction such as emotions and stronger feelings.
1.2.1 Additional Factors On Decision Making
There are many other causes that have tremendous effect on consumer decision making process,
such as perceptions and attitudes.
Perceptions
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Perceptions take consumers to the process of selecting, organising, and interpreting stimuli to a
meaningful and coherent picture of the world (Schiffman and Kanuk (2007).
Because there are so many marketing stimuli, consumers need to limit the information of product
that will have an effect on the decision making. Bolfing (1988) also purposed that there are
plenty of customers that have perceptual vigilance which is the stage of being screening
information that is relevant. On perception process, customers express their own final perception
using their consuming behaviour.
Attitudes
In the purchase stage, there is attitude in the consumers mind. Without attitude, an alternative
brand may be purchased (Fazio et al. 1989). Good attitude towards the product might move to a
purchase decision. Attitude is connected to behavioural intention and buying forecast (Fishbein,
1980). Attitude is what we can feel about a concept that could be a person, a brand, a category,
an ideology or other things we can think about and applying feeling into (East, 1997). Many
writers agree that attitude is an evaluation. Attitudes are individuals broad evaluations of a
concept or subjective assessments of an idea (Kotler and Armstrong, 2001). Attitude can be the
most important factor in consumer decision process because they theoretically conclude that a
consumer evaluation of an object (product, brand or company) represent positive or negative
feeling and behavioural towards the object (Belch and Belch, 1998). Attitude influences each
stage of the buying decision, as the simple assumption that attitudes causes behaviour to ignores
other determinants such as personality traits, self-image, motives, behaviour and the social and
physical setting in which the action occurs (Foxall, 1998).
1.3 Consumer Buying Behaviour
Consumer purchasing behaviour tends to determine what it exactly is that drives consumers
when making buying decisions. Many studies have been performed including the above
mentioned with regard to consumer behaviourism. Three theories those understand the
consumers buying decision are; radical, teleological, and picoeconomics behaviourism (Foxall,
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2007). Even though, all three theories take their own the consumers choice, they still plays
complementary role with consumer behaviour.
1.3.1 Radical Behaviour ism
According to Foxall, (2007) refer to the radical behaviourism as Behavioural Perspective Model
(BPM), see diagram below.
On the one hand Figure 1, depicts two inputs of consumer behaviour, namely the behaviour
setting and the learning history. These two input variables can be seen as the consumers frame
of reference when making a buying decision. The behaviour setting consists of all the physical,
social and temporal elements that signal the likely consequence of behaving in a particular way
(Foxall, 2007: 136).
The learning history refers to past experiencesboth positive and negativeof the consumer.
Additionally, it accounts for personal factors influencing the consumers choice, such as: the
ability to pay, consumers mood, impulsive buying and deprivation. On the other hand, three
possible consequences of consumer behaviour are depicted in Figure 1, respectively; utilitarian
reinforcement, informational reinforcement and aversive consequences. Utilitarian reinforcement
refers to the satisfaction consumers perceive when buying, owing and consuming economic
goods. Informational reinforcement as an outcome of consumer behaviour relates to the feedback
on the purchase which connects the consumers choice to the social status that comes with it.
Of course the informational reinforcement outcome is not applicable to every product that can be
bought, as one will not obtain any social status from buying nails for example, on the other hand,
people are often judged by the car they drive, making cars an excellent example of the
informational reinforcement. Lastly, aversive consequences can be described as the costs of
consuming; having to wait in line, not being able to buy alternative products, relinquishing
money, etc. (Foxall, 2007). Based on the level of informational and utilitarian reinforcement a
grid can be composed that divides consumer behaviour in four broad categories, Maintenance
purchases are characterized by necessity; therefore this category can be compared to the
physiological level in Maslows hierarchy of needs, which stands for the basic requirements for
human survival (Maslow, 1943). Accumulation purchases refer to consumer behaviour related to
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certain kinds of collecting, saving and instalment buying. Hedonism or pleasure purchases refer
to the consumption of popular entertainment.
Finally, accomplishment purchases reflect ones social and economic success, such as:
acquisition and conspicuous consumption of status goods, displaying products and services that
signal personal attainment (Foxall, 2007: 136). Foxall (2007) found that green consumer
behaviour cannot be linked to a specific category but can be found in any of the four categories.
1.3.2 Teleological Behaviouri sm
Teleological behaviourism proposes an interpretation of complex behavior based on final
causes, i.e., the consequences of behaviour (Foxall, 2007: 132). Final causes extend outwards
from the person who behaves, each fitting in the next pattern (Foxall, 2007). Hence, making a
sum fits into doing homework, which fits into taking the math class, which fits into studying,
which in turn fits into providing yourself with a good future. Every step (cause) is wider than the
previous one and therefore more embracing, making each cause more final (Rachlin, 1994). The
process of finding the causes of behaviour is one of fitting the behaviour into an ever- increasing
molar pattern of response and consequences (Foxall, 2007: 132).
Rachlin (1994) states that mind equal behaviour and sequences or patterns of behaviour rather
than single acts. This implies that mental phenomena such as intentions, attitudes as well as pain
are all defined as extended patterns of behaviour. When pain is taken as an example, people
know that somebody else is in pain because of the behaviour the other person emits: grimacing,
groaning, holding his arm, etc. (Foxall, 2007). A whole series of final causes may each be
nested within one another, diffused over time, the whole sequence being necessary to a full
explanation of the behaviour that produced them (Foxall, 2007: 132).
Rachlin (1994) points out that in order to understand the full complexity of behaviours
consequences, a significant elapse of time may be required, as the events that explain behaviour
are temporarily extended, it will take time for the whole sequence to be completed and with that
understand behaviour. When it comes to consumer buying behaviour, teleological behaviourism
helps understanding consumers brand choice (Foxall, 2007). Teleological behaviourism helps to
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understand why consumers only consider only a few brands out of all the brands they can choose
from when making a buying decision (Foxall, 2007).
Consumers will only consider brands of which they have direct use-knowledge and which
products characteristics show the greatest match compared to the consumers spending power.
Teleological behaviourism also helps understanding why consumers change patterns and decide
to buy another brand than they usually do. It does so by acknowledging the conflict consumers
can face between utilitarian reinforcement and informational reinforcement.
1.3.3 Picoeconomics
Both radical behaviourism and teleological behaviourism help to understand consumer
behaviour, but both are not complete explanations of it, especially when it comes to breaking of
patterns. Up to a certain extend teleological behaviourism provides an explanation for the
breaking of patterns, as explained in the previous paragraph.
However, picoeconomics provides a much better explanation when it comes to intertemporal
bargaining. The concept of picoeconomics acknowledges that a persons choice is based on more
factors than just the persons preference (Foxall, 2007). Picoeconomics apply the concept of
intrapersonal interests to explain the conflict between behaviours which occurs from
intertemporal rewards (Foxall, 2007). How an individual prioritizes the rewards available
depends on personal rules. However, seldom such a trade-off between short-term (smaller
sooner) and longterm (larger later) is isolated from other choice conflicts (Foxall, 2007).
Therefore an individual might adopt a strategy in which he/she bundles all the short-term and
long-term rewards, also known as reward bundling, which is a means of self-control. Self-control
results from the consumers perspective that a single choice is possible between a bundle of
long-term rewards and a competing bundle of short-term rewards (Foxall, 2007). Of which, as
Foxall (2007) points out, directly relates to green consumer behaviour. The benefits of the long-
term choice are always greater than the benefits of the short-term choice, to make a rational
decision in which the total rewards obtained is the greatest is a matter bringing (imagining) the
long-term rewards forward in time.
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According to picoeconomics there is a conflict of interests brought about by the differences in
situation between the point at which an intention is expressed and that at which the opportunity
to behave emerges (Foxall, 2007: 141). This conflict originates due to incentives available to
the consumer at the moment of purchase (Ainslie, Hofmeyr & Ross, 2010). When the
opportunity to behave emerges the consumer has two choices, either he stays loyal to his buying
pattern, or, the consumer changes his pattern based on a variable presented by the current
behaviour setting.
A customer who has the intention to buy one particular electronic products/bran, might be
tempted once entering the store to purchase either Dixon manufactured product or alternative
that are on sales instead of the more expensive, also known as preference reversal. This is a
typical situation where the consumer prefers a poorer pay-off (which might be temporarily)because it is available sooner, than a better long-term pay-off, which would be better for the
consumer. Consumers apply this behaviour occasionally in the case of brand choice, but much
more often at inter-product choices (Foxall, 2007).
This leads to the question why consumers apply this kind behaviour. Foxall (2007) argues that
just as in radical behaviourism and teleological behaviourism, the consumer tries to maximize
the totality of reinforcement available to him, both informational as utilitarian reinforcement.
However, it need to be noted that consumers often do this with a short-term perspective and
therefore maximize their reinforcement on each shopping trip, which might be not the maximum
reinforcement that can be obtained when a longterm perspective is applied. The dilemma
consumers face is a conflict between informational reinforcement (maximizing the price) and
utilitarian reinforcement (ensure an acceptable level of quality). However, this does not mean
that consumers will always buy the cheapest product available. The usual consumer strategy is
to: (1) select a suitable consideration set on basis of both reinforcements and experience; and (2)
usually selects the least expensive option within the consideration set (Foxall, 2007).
1.4 Consumer Decision
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In electronics markets the consumer will make the decision to purchase technological products to
fulfil and satisfy their desire. Also, there are several factors that can influence consumer to select
which product they will use for provide their needs, such as;
1.4.1 Social in fl uences
According to Boone and Kutz (2006) they have stated on this point that in every consumer
belong to the each social group. As earlier mostly experience can come from a group of family,
neighbourhood groups, work and community. Also, a group membership can influences
individuals purchase decision by values, attitude and behaviour that a group deems appropriate
for its member. Hence, many consumers are often strongly making decision by people who the
consumer knows and trusts.
1.4.2 Economic Man
Many marketers understand consumer behaviour from economics. Especially, the assumption
between people and rational in their behaviour by identified the behaviour that relating to price,
consumer income, consumer taste, and quality of products. Therefore, the demand of medicine is
positivity associated with low price of medicine, high price for products substitutes (high level of
consumer income, high education, high tastes). Also, the quality of products included with
services.
1.4.3 Personal I nf luences
Each person is driven by variety of desires and pressures that influence behaviour by values,
attitudes, personality and beliefs. This could help marketer expected the personal influence from
the field of psychology.
Personality and self concept that in each persons distinct personality influences his/her buying
behaviour because the personality refers to unique psychological in each person. Thus, personal
characteristics have relative to buying behaviour on our decision making and personality can be
useful for marketer to analysing consumer behaviour for certain products or select their choice
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(Armstrong and Kotler, 2008). Buying Behaviour The marketers can better predict how
consumers will respond to marketing strategies. Also, they need to understand the decision
processes and acts of people involved in buying and using products
Solomon (1991) stated that a consumer decision is a response to a problem. Schiffman and
Kanuk (1978) depicted that decision is the selection of an action from two or more alternative
choices. It means that there must be more that one alternative choice whenever a customer is
making a decision. Kotler (1996) pointed out that the consumer buying process is the sum total
of alternative, purchase decision, and purchase evaluation.
1.5 Decision Making Process
The decision making process can be used to analysed consumer purchasing decision of certain
product that required enormous level of engagement from a customer (Kotler & Armstrong,
2002). The diagram below gives a brief explanation of consumer decision making process.
Five-Stage Model of the buying process:
1.5.1 Need recognition
Need recognition is the leading thoughts that intercede between the confusing touch incustomers mind, simply put; the consumer desire state and actual state (Schiffman, Lazar &
Hansen, 2008). The actual state mainly focused on consumer who encounters difficulty with
product that does not bring desire satisfaction, particular if the customer desire state is yearning
for something new, the aspiration to minimise the gap between the customer desire state and
current situation (Kotler & Armstrong 2002).
1.5.2 Information search
Consumer searches for information after they have recognised the need. In cases where
customers drive is strong, information is searched externally and more extensively (Bruner &
Pozmal, 1988). When a problem has been indentified the consumers tend to engaging
information search, for the purpose of reducing the risk of making a wrong choice. Thus, such
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a consumer will have a high degree of cognitive activity and will make strong efforts in
evaluating and comparing of products before making decision (Bruner & Pozmal, 1988).
And cues, which are important in low involvement, can be only as pieces of information in an
information processing (Steenkamp, 1989). The products can be important in one of the elements
to influence consumer to select the choice and acquisition process. On the other hand, as noted
by some authors including Hupfer and Gardner (1971) and Kassarjian (1978), not all purchasing
decisions involve equally the same high level of customer interest and engagement. However,
Hoyer (2984) suggested that it is impossible to directly apply these theories to every aspect of
decisions making.
1.5.3 Evaluating alternatives & Purchase
Alternatives valuations are significantly different from large product categories (Kotler &
Armstrong, 2002). For a better understanding in a certain product category, customers use a
variety of criteria in deciding which store to visit and which product to buy, including selection,
price, quality, service, value, and convenience (Boone and Kurtz, 2006). According to Kotler
(1996), consumer use store and product attribute varies among consumers. Management must,
however, know which attribute consumers consider and the important the consumer places on
them. Evaluation of alternative that consumer can make decision can be made from price,location, quality and pharmacists relationship to choose a pharmacy (David Holdford, 2007). The
evaluation process is particularly helpful in influencing customers, particularly, when customers
are familiar with the desire product, their purchase behaviour tends to be quite small, consisting
on average between three and five brands (Schiffman et al., 2008).
1.5.4 Purchase Decision
Bruner and Pomazal (1988) argue that a purchase is done by a consumer after s/he first
recognises some kind of problem, and thus the purchase is a solution to the experienced problem.
Further, Bruner and Pomazal (1988) state that to be able to conduct a purchase the problem
recognised needs to be defined. Consumer tend to choose to buy the product byconsidering
characteristics such as location, price assortment personnel, store image and service etc (Boone
and Kurtz, 2006).
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In executing a purchase intension, there are five purchase sub decisions, which consumers may
make up (product choice, brand choice, dealer, purchase timing, and purchase amount (Kotler,
1996). In order words consumer may answer the question of which product to buy, or might as
well form a purchase intention to buy the most preferred brand. Sometimes consumers may have
to choose which dealer or store they will go for purchase. In some cases, consumers may be
willing to accept high prices for electronically products if the quality of the product is perceived
to be of high quality.
1.5.5 Post-Purchase evaluation
In most post purchase behaviours, customers tend to evaluate purchasing through a trail or
experience some level of satisfaction or dissatisfaction. If the product meets his or her
expectations, the consumer is likely to satisfied, but if it falls short, the consumer is likely to be
dissatisfied. Thus, customers may evaluate the product prior to their preconceived expectations
(Schiffman (2008). An outcome of the evaluation is either the performance that matches
expectations, that performance which exceeds expectations or that the performance below
expectations. The amount of dissatisfaction depends on the size of the different between
expectations and performance (Kotler, 1996).
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OBJECTIVE OF THE STUDY:
To find out consumer behavior of Indian and Chinese products.
To study brand awareness for Lenovo in the market place.
To produce valuable inputs for the Lenovo from the Indian market with respect toelement of marketing mix, i.e., Product, Price, Place and Promotion.
To Study Lenovo competitors marketing mix strategies, and then comparative mappingwith other major appliances players in the market, finding loopholes and building
effective marketing mix strategy forLenovo computers segment with respect
To analyze right strategic direction for Lenovo firstly by the way of studying currentimage of the brand Lenovos , secondly through market mix mapping.
It gives valuable inputs regard to difference that the brand is dealing with their competitors. Like
if HCL, HP, DELL, SONY are present in a segment, satisfying same customer need, what is the
difference in terms of product offering, technology of the products, pricing strategies of the
competitors. This is also suggests competitors direct monetary pricing benefits to distribution
intermediaries, i.e. distributors, direct dealers, dealers, and finally to the customers. Which
clearlyidentifies the different requirements that customers look to be satisfied and at what prices.
These different requirements can then be used to develop the alternative strategies that need to be
implemented, to better access the segments and tune the product offers to suit the customer
requirements and to the level of competition.
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CHAPTER-3
RESEARCH
METHDOLOGY
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RESEARCH METHODOLOGY:
The system of collecting data for research projects is known as research methodology. The data
may be collected for either theoretical or practical research for example management research
may be strategically conceptualized along with operational planning methods and change
management. Some important factors in research methodology include validity of research data,
Ethics and the reliability of measures most of your work is finished by the time you finish the
analysis of your data.
Descriptive Research
1-Descriptive research, also known as statistical research, describes data and
characteristics about the population or phenomenon being studied. Descriptive research
answers the questions who, what, where, when, "why" and how...
Although the data description is factual, accurate and systematic, the research cannot
describe what caused a situation. Thus, Descriptive research cannot be used to create a
causal relati onship, where one variable affects another. In other words, descriptive research
can be said to have a low requirement for internal validity. The description is used for
frequencies, averages and other statistical calculations. Often the best approach, prior to
writing descriptive research, is to conduct a survey investigation. Qualitative research often
has the aim of descriptionand researchers may follow-up with examinations of why the
observations exist and what the implications of the findings are. In short descriptive
research deals with everything that can be counted and studied. But there are always
restrictions to that. Your research must have an impact to the lives of the people around
you.
https://www.tutorsindia.com/research-methodology-help.htmlhttps://www.tutorsindia.com/http://en.wikipedia.org/wiki/Statisticshttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Frequency_(disambiguation)http://en.wikipedia.org/wiki/Averagehttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Averagehttp://en.wikipedia.org/wiki/Frequency_(disambiguation)http://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Statistical_populationhttp://en.wikipedia.org/wiki/Statisticshttps://www.tutorsindia.com/https://www.tutorsindia.com/research-methodology-help.html -
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Data collection Method:
(a) Primary Data Collection Method: Survey method was used for primary data collection. We used questionnaire as an instrument for survey method. Structured questionnaire. Type of questionnaire: Open ended and closed ended.
(b) Secondary Data Collection method: Reference books. Internet.
Sampling Detail
1. Target population: The population for this research study consists of theresidents of Dehradun.
2. Sampling unit: In this study the sampling unit is individual consumer.3. Sample size: 100 consumers.
1. Primary Data Collection
For Product: Customer survey through use of a structured questionnaire.
For Price: Direct meeting with the dealers to know other companies pricing, by collecting and
analyzing prices for customers (MRP) dealers (D.P),direct dealers, and distributors.
For Place: Obtaining feedback from the existing dealers of Lenovo and other consumer
electronic dealers in the DELHI through direct interviews. To establishing and implementing
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processes for obtaining ideas, Information and insights from the dealers regarding the Haier
marketing proposition for refrigerators and washing machine, after that evaluating the feedback,
assessing the benefits and any risks associated with possible options, and making
recommendations towards enhancing the LENOVO marketing proposition especially place or
in other words dealer expansion in DELHI city.
Promotion: Observing the number of marketing activities done by the other companies by
keeping the record of activities done by them, and also attending the activities to feel the
difference between the Lenovo marketing activities.
2. Secondary Data Collection through company websites, journals & annual reports.
3. Analyzing and interpretation.4. Mapping with respect to other competitors in the market in computer systems
category.
5. Findings and conclusion can be drawn.. HYPOTHESIS
Hypothesis testing is used to analyze the difference between the sample statistics, and
hypothesized population parameter. The hypothesis testing starts with the formulation of a
hypothesis made about a population parameter. Then for testing this hypothesis sample data is
gathered. A sample mean (or a relevant test static) is determined. Sample statistic is compared
against the hypothesized population parameter.
HYPOTHESIS USED :- There are two types of hypothesis: (a) Null Hypothesis and (b)
Alternative hypothesis.
Null hypothesis (Ho): There is a positive perception regarding Indian products in theconsumers mind relative to Chinese products.
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Alternative hypothesis (H1): There is no positive perception regarding Indianproducts in the consumers mind relative to Chinese products.
TEST OF SIGNIFICANCE:
One way anova is used to test the significance of the hypothesis.
One-way ANOVA in SPSS
Introduction
The one-way analysis of variance (ANOVA) is used to determine whether there are any
significant differences between the means of two or more independent (unrelated) groups(although you tend to only see it used when there are a minimum of three, rather than two
groups). For example, you could use a one-way ANOVA to understand whether exam
performance differed based on test anxiety levels amongst students, dividing students into
three independent groups (e.g., low, medium and high-stressed students). It is important to
realise that the one-way ANOVA is an omnibustest statistic and cannot tell you which
specific groups were significantly different from each other; it only tells you that at least
two groups were different. Since you may have three, four, five or more groups in your
study design, determining which of these groups differ from each other is important.
Assumptions
When you choose to analyse your data using a one-way ANOVA, part of the process
involves checking to make sure that the data you want to analyse can actually be analysed
using a one-way ANOVA. You need to do this because it is only appropriate to use a one-
way ANOVA if your data "passes" six assumptions that are required for a one-way
ANOVA to give you a valid result. In practice, checking for these six assumptions just adds
a little bit more time to your analysis, requiring you to click a few more buttons in SPSS
when performing your analysis, as well as think a little bit more about your data, but it is
not a difficult task.
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Before we introduce you to these six assumptions, do not be surprised if, when analysing
your own data using SPSS, one or more of these assumptions is violated (i.e., is not met).
This is not uncommon when working with real-world data rather than textbook examples,
which often only show you how to carry out a one-way ANOVA when everything goes well!
However, dont worry. Even when your data fails certain assumpt ions, there is often a
solution to overcome this. First, lets take a look at these six assumptions:
Assumption #1: Yourdependent variable should be measured at the interval orratiolevel (i.e., they are continuous). Examples of variables that meet this criterion include
revision time (measured in hours), intelligence (measured using IQ score), exam
performance (measured from 0 to 100), weight (measured in kg), and so forth.
Assumption #2: Yourindependent variable should consist oftwo or more categorical,independent groups. Typically, a one-way ANOVA is used when you have three or
more categorical, independent groups, but it can be used for just two groups (i.e., an
independent-samples t-test is more commonly used for two groups). Example
independent variables that meet this criterion include ethnicity (e.g., 3 groups: Caucasian,
African American and Hispanic), physical activity level (e.g., 4 groups: sedentary, low,
moderate and high), profession (e.g., 5 groups: surgeon, doctor, nurse, dentist, therapist),
and so forth.
Assumption #3: You should have independence of observations, which means thatthere is no relationship between the observations in each group or between the groups
themselves. For example, there must be different participants in each group with no
participant being in more than one group. This is more of a study design issue than
something you can test for, but it is an important assumption of the one-way ANOVA. If
your study fails this assumption, you will need to use another statistical test instead of the
one-way ANOVA (e.g., a repeated measures design).
Assumption #4: There should be no significant outliers. Outliers are simply single datapoints within your data that do not follow the usual pattern (e.g., in a study of 100
students' IQ scores, where the mean score was 108 with only a small variation between
students, one student had a score of 156, which is very unusual, and may even put her in
the top 1% of IQ scores globally). The problem with outliers is that they can have a
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negative effect on the one-way ANOVA, reducing the accuracy of your results.
Fortunately, when using SPSS to run a one-way ANOVA on your data, you can easily
detect possible outliers. In our enhanced one-way ANOVA guide, we: (a) show you how
to detect outliers using SPSS; and (b) discuss some of the options you have in order to
deal with outliers.
Assumption #5: Yourdependent variable should be approximately normallydistributed for each category of the independent variable . We talk about the one-way
ANOVA only requiring approximately normal data because it is quite "robust" to
violations of normality, meaning that assumption can be a little violated and still provide
valid results. You can test for normality using the Shapiro-Wilk test of normality, which
is easily tested for using SPSS. In addition to showing you how to do this in our enhanced
one-way ANOVA guide, we also explain what you can do if your data fails this
assumption (i.e., if it fails it more than a little bit).
Assumption #6: There needs to be homogeneity of variances. You can test thisassumption in SPSS using Levene's test for homogeneity of variances. If your data fails
this assumption, you will need to not only carry out a Welch ANOVA instead of a one-
way ANOVA, which you can do using SPSS, but also use a different post-hoc test. In our
enhanced one-way ANOVA guide, we (a) show you how to perform Levenes test for
homogeneity of variances in SPSS, (b) explain some of the things you will need to
consider when interpreting your data, and (c) present possible ways to continue with your
analysis if your data fails to meet this assumption, including running a Welch ANOVA in
SPSS instead of a one-way ANOVA, and a Games-Howell test instead of a Tukey post-
hoc test
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CHAPTER-4
DATA ANALYSIS
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1. Which brand's laptop do you owe?a. Apple b. Samsung c. HP d. LENOVO e. Sony
DATA ANALYSIS:-
BRAND 100
APPLE 10
SAMSUNG 20
HP 20
LENOVO 30
SONY 20
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2. If you have your favorite brand, why do you like the brand the most?
a. Good design b. Reasonable price c. Convenient after-sale service
d. Favorable brand image e. Great specs
DATA ANALYSIS:-
10%
20%
10%
20%
20%
20%
Sales
APPLE SAMSUNG HP SONY LENOVO
REASON 100
GOOD DESIGN 20
RASONABLE PRICE 30
CONVENIENT AFTER-SALE SERVICE 20
FAVORABLE BRAND IMAGE 20
GREAT SPECS 10
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3. When you buy a laptop, what is the most important consideration factor?
a. Brand name b. Price c. Specs d. Design e. Others (Specify: )
DATA ANALYSIS:-
GOOD DESIGN
20%
REASONABLE PRICE
30%CONVENIENT
AFTER-SALE
20%
FAVORABLE
BRAND IMAGE
20%
GREAT
SPECS
10%
REASON 100
BRAND NAME 27
PRICE 36
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BRAND NAME
27%
PRICE
36%
SPECS
9%
DESIGN
14%
OTHER
14%
FACTOR
SPECS 9
DESIGN 14
OTHER 14
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4. Which channel did you use when you bought your laptop?
a. The brand's own website b. Online retail stores (Amazon, e-bay, etc.)
c. Electronics retail stores (Best Buy etc.) d. Warehous