Prof. Francis J. Mulhern (Northwestern University)

Program

Date: December 19, 2017

Time: 11.30 - 1.00 hrs

Place: Kaulbachstr. 45, Remise

Title: Country-of-Origin Effects among Chinese Consumers: Market Segmentation and a Longitudinal Analysis of Preferences

Abstract:

Country-of-origin preferences are a key aspect of consumer buying behavior in the global economy. The academic literature contains a long series of studies showing that consumers have distinct preferences for brands and products from certain parts of the world. This paper provides an empirical analysis of country-of-origin preferences held by Chinese consumers for a set of five product categories, annually from 2014 to 2016 with data from a large syndicated panel. We then conduct a market segmentation analysis based on the preferences in each of the three years. The segmentation analysis identifies three distinct groups of consumers with respect to preferences for products from China and four other countries. We consistently find a segment that strongly prefers Chinese products, one that strongly prefers foreign products and a third that prefers a less distinctive mix of the two. We also evaluate how preferences changed over a threeyear period finding a slight increase in preference for Chinese products and a slightly declining preference for products from other countries, particularly other Asian countries.