S/M/54. Dissertation. Consumer Buying Behaviour: A Study of Luxury Cars in China

ÄChange is a way of life in post-reform China, and right now there is no more striking symbol of change than the personal automobileŽ (Bandurski, 2003). China, a country famous for its millions of bicycles, the idea of owning or even getting behind the wheel of a luxury car has been parked in dreamland for most of Chinas 1.3 billion people. But nowadays, things are gradually changing, like everywhere else; luxury cars are attracting the rich and the hopeful (CNN.com, 2002). The explosive rise in luxury car consumption not only means growth in Chinas domestic economy, also indicates a fundamental changing pattern of consumption in China. The research problem undertaken in this project is the understanding of the factors influence consumers when considering purchase a luxury car. Four hypotheses are presented É price, product perceived quality, brand and income É in order to understand Chinese luxury car consumers buying behaviour. The results show some interesting patterns. Consumers consider price is an important factor when purchasing luxury cars. The reliance on price as an indicator of quality is critical in the case of purchases of luxury cars. When the price is set to be higher, consumers expectation of the product will be higher. The relatively weak relationship between brand and product was found when consumers consider purchasing luxury cars. Chinese consumers believe that luxury cars do have better product quality in terms of safety, design, reliability and performance. Finally, consumer purchase behaviours are strongly related to consumers income. However, the limitation of the research does not guarantee that the results of finding for this study can be absolutely representative. Limited time, resources and population could affect the results of findings. Despite these weaknesses, there are some important implications for marketers and car manufactures. To stay ahead of the competition, aside from pricing, product improvement is continuously needed. The long-term growth of the luxury car company will depend on the quality and convenience of service that offered to Chinese customers, as it did in other countries. The distinctions of the brand name or logo of luxury cars, the information implied in the brand, the perceived quality, and the added value the brand offered to the consumers are all important for luxury cars to be successful and demanding in the market. Furthermore, marketers of luxury cars should draw interest from Chinas upper income class precisely because they are premium brands and carry premium price tags.