Method


Sampling

A random sampling method was applied. Four major Chinese cities “ Beijing, Hangzhou, Guangzhou and Xian “ were selected, representing northern , eastern , southern and western China respectively. Data were collected by research assistants in local cities, using personal interview methods in key local shopping districts. These research assistants were mainland Chinese students recruited by referral and trained in the basic techniques of conducting personal interviews. Proper guidance and instruction were given before data collection started. Mall intercepts were carried out between December 1999 and February 2000 with every fifth person until a target of 200 was reached. Finally, 200 usable questionnaires each were collected from Beijing, Hangzhou and Xian. Some questionnaires from the Guangzhou group had a significant number of missing values resulting in only 196 usable cases. In the aggregate sample, there were 391 females and 402 males so the sample is evenly distributed between males and females.

40.2 per cent were aged 17 “25, 24.8 per cent 26 “35,
15.7 per cent 36 “45, 15.9 per cent 46 “55 and 3.4 per cent 56 “68. These age groups represent those who are in active work and financially independent.

Measurement

After an extensive literature review, ten items related to trust in business ethics, environmental consciousness and health consciousness were selected to measure lifestyle dimensions. The questionnaire was initially developed in English, translated into Chinese and translated back into English following standard blind procedures to ensure the accuracy of translation. Finally, a Chinese version was used for data collection. A five- point Likert type scale was used for both lifestyle and marketing mix statements on consumers' post purchase perceptions of product quality, service quality and price, ranging from (1) 'strongly agree' to (5) 'strongly disagree '.

To ensure that all the measurements have good internal consistency, a Cronbach alpha test was applied to the three derived scales: trust in business ethics (a=0.68), environmental consciousness (a=0.62) and health consciousness (a=0.55). While alphas for two out of three scales are reasonably acceptable, alpha for the health consciousness construct is slightly lower than the threshold of a=0.60. However, from an exploratory perspective, a slightly lower alpha is still acceptable (Nunnally, 1978). To confirm the existence of three dimensions, a factor analysis was conducted . A principle component analysis was used as the extraction method. The rotation converged on four iterations, using the varimax method. It can be observed from Table 4.8.1 that three factors (Eigenvalue >1) were derived, resulting in an accumulated explained variance of 58.67 per cent.

Table 4.8.1: Factor analysis of lifestyle variables
 

Factor 1

Factor 2

Factor 3

Trust in Business Ethics (a=0.69)

You believe that product quality is improving

.721

117

“7.339E-02

You believe that firms are beginning to pay attention to customers' complaints

.721

4.763E

“6.228E-02

You believe that product trademarks start to follow rules and regulations

.720

159

7.097E-02

You believe that the dangers arising from using products are decreasing

.707

“9.076E-02

5.912E-02

Environmental Consciousness (a=.62)

My country should invest in environmental protection

1.900E-02

.820

3.729E-02

The possibility of an energy crisis still exists

2.112E-02

.760

.188

From the country's point of view, the one child policy is necessary

.132

.666

1.006E-02

Health Consciousness (a=.55)

Drinking is a bad hobby

3.293E-02

“3.172E-02

.865

Smoking can cause cancer

5.635E-02

.249

.768

Eigenvalue

2.081

1.805

1.394

Variance explained

23.126

20.057

15.491

Extraction Method: Principal Component Analysis.

     

Rotation Method: Varimax with Kaiser Normalization.

     

Rotation converged in 4 iterations.

     

Results

Data from four cities “ Guangzhou, Beijing, Hangzhou, and Xian “ were compared using a one-way ANOVA post hoc Scheffe test (see Table 4.8.2). There is no difference in consumers' health consciousness across the four cities and with all the arithmetic means below 2.02 ('1' strongly agree and '5' strongly disagree), indicating that Chinese consumers in all four cities are very health conscious.

Table 4.8.2: One-way ANOVA post hoc Scheffe Test of differences in lifestyles among Guangzhou, Beijing, Hangzhou and Xian
 

Guangzhou (1)

Beijing (2)

 

Hangzhou (3)

Xian (4)

 

SD

N

Mean

SD

N

Mean

SD

N

Mean

SD

N

Mean

Health Consciousness

186

1.946

.930

198

1.980

.714

199

2.020

.763

198

1.846

.846

Confidence in Business Ethics

185

2.635

.607

195

2.542

.545

196

2.297

.515

196

2.431

.551

Environmental Consciousness

178

2.150

.906

195

1.670

.537

197

1.702

.457

195

1.622

.531

a Scales range from (1) 'Strongly Agree' to (5) 'Strongly Disagree'

Consumers in Guangzhou have a lower confidence in business ethics than those in Hangzhou and Xian. While there is no significant difference in consumers' confidence in business ethics between Guangzhou and Beijing, consumers in the latter turn out to be less confident than those in Hangzhou.

Consumers in Guangzhou are less environmentally conscious than in the other three cities. Interestingly, there is no difference between these three cities. Nevertheless, all the respondents indicated a fairly good environmental consciousness as all the arithmetic means are below 2.15.




Doing Business with China
Doing Business with China
ISBN: 1905050089
EAN: 2147483647
Year: 2003
Pages: 648
Authors: Lord Brittan

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