Consumer Lifestyle Matters: Evidence from Gray Markets in China

Abstract

Consumers are at the central point of marketing. However, while existential research is devoted to understanding gray market, little attention is given to the consumer’s view of gray market. This study attempts to take the perspective of consumers to address the gray market issue. Lifestyles of the target customers of trademark holders are proposed for trademark holders to retain existing customers while simultaneously attracting new customers from the gray market. We perform Cluster analysis to identify different customer groups by using “lifestyle” as a market segmentation variable. ANOVA, Scheffe test and regression analyses are then employed to test the proposed hypotheses. Analytical results reveal that the different customer groups exhibit particular lifestyle features, different perceptions of gray product quality as well as different purchase intentions.

Share and Cite:

W. Liu, L. Chang and J. Lin, "Consumer Lifestyle Matters: Evidence from Gray Markets in China," Journal of Service Science and Management, Vol. 5 No. 2, 2012, pp. 196-205. doi: 10.4236/jssm.2012.52024.

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1] J. B. Thomas and C. L. Okleshen, “The Underground Mall: An Investigation of Factors Influencing Gray Market Consumption,” International Journal of Retail & Distribution Management, Vol. 34, No. 2, 2006, pp. 106-120. doi:10.1108/09590550610649777
[2] China Review, “Why Do Chinese Like Gray Market Products?” 2008. http://www.chinareviewnews.com/doc/1006/3/8/0/100638054.html?coluid=59&kindid=0&docid=100638054&mdate=0507102031
[3] B. C. Y. Lee, “Consumer Perceived Importance of Channel Authorization: A Post Hoc Segmentation Approach to Dealing with Gray Markets,” Australasian Marketing Journal, Vol. 14, No. 1, 2006, pp. 10-23. doi:10.1016/S1441-3582(06)70050-7
[4] S. J. Alberts, “Trademarks and Gray Market Goods: Why U.S. Trademark Holders Should Be Held Strictly Liable for Defective Gray Market Imports,” The George Washington Journal of International Law & Economics, Vol. 25, No. 3, 1992, pp. 841-873.
[5] K. Antia, M. E. Bergen, S. Dutta and R. Fisher, “How Does Enforcement Deter Gray Market Incidence?” Journal of Marketing, Vol. 70, No. 1, 2006, pp. 92-106. doi:10.1509/jmkg.2006.70.1.92
[6] T. Z. Chang, “Parallel Importation in Taiwan: A View from a Newly Emerged,” International Marketing Review, Vol. 10, No. 6, 1993, pp. 30-42. doi:10.1108/02651339310051605
[7] N. T. Gallini and A. Hollis, “A Contractual Approach to the Gray Market,” International Review of Law and Ecnomics, Vol. 19, No. 1, 1999, pp. 1-21. doi:10.1016/S0144-8188(98)00032-5
[8] P. E. Chaudhry and M. G. Walsh, “Gray Marketing of Pharmaceuticals,” Journal of HealthCare Marketing, Vol. 15, No. 3, 1995, pp. 18-22.
[9] M. Prince, “Seeing Red over International Gray Markets,” Business Horizons, Vol. 43, No.2, 2000, pp. 71-74. doi:10.1016/S0007-6813(00)88563-8
[10] P. S. Sloane, “Preventing the Unauthorized Importation of Altered Gray Market Goods: Practical Suggestions for US Trademark Owners,” Intellectual Property and Technology Law Journal, Vol. 16, No. 6, 2004, pp. 12-16.
[11] R. Meredith, “Middle Kingdom, Middle Class,” Forbes, Vol. 174, No. 10, 2004, pp. 188-192
[12] K. W. J. Jih, S. F. Lee and Y. C. Tsai, “Effects of Service Quality and Shared Value on Trust and Commitment: An Empirical Study of 3Cs Product Customers in Taiwan,” International Journal of Business Studies, Vol. 15, No. 2, 2007, pp. 83-98.
[13] R. E. Goldsmith, L. Flynn, E. Goldsmith and C. E. Stacey, “Consumer Attitudes and Loyalty towards Private Brands,” International Journal of Consumer Studies, Vol. 34, No. 3, 2010, pp. 339-348. doi:10.1111/j.1470-6431.2009.00863.x
[14] N. Scott and N, Parfitt, “Lifestyle Segmentation in Tourism and Leisure: Imposing Order or Finding It?” Journal of Quality Assurance in Hospitality & Tourism, Vol. 5, No. 2-4, 2004, pp. 121-139. doi:10.1300/J162v05n02_07
[15] P. Vyncke, “Lifestyle Segmentation: From Attitudes, Interests and Opinions, to Values, Aesthetic Styles, Life Visions and Media Preferences,” European Journal of Communication, Vol. 17, No. 4, 2002, pp. 445-463. doi:10.1177/02673231020170040301
[16] K. C. C. Yang, “A Comparison of Attitudes towards Internet Advertising among Lifestyle Segments in Taiwan,” Journal of Marketing Communications, Vol. 10, No. 3, 2004, pp. 195-212. doi:10.1080/1352726042000181657
[17] J. Child and D. K. Tse, “China’s Transition and Its Implications for International Business,” Journal of International Business Studies, Vol. 32, No. 1, 2001, pp. 5-21. doi:10.1057/palgrave.jibs.8490935
[18] T. Sun, M. Horn and D. Merritt, “Values and Lifestyles of Individualists and Collectivists: A Study on Chinese, Japanese, British and US consumers,” Journal of Consumer Marketing, Vol. 21, No. 5, 2004, pp. 318-331. doi:10.1108/07363760410549140
[19] H. Dagevos, Y. He, X. Zhang, I. van derLans and F. Zhai, “Relationships among Healthy Lifestyle Beliefs and Body Mass Index in Urban China,” International Journal of Consumer Studies, Vol. 35, No. 1, 2011, pp. 10-16. doi:10.1111/j.1470-6431.2010.00926.x
[20] K. D. Antia, M. Bergen and S. Dutta, “Competing with Gray Markets,” MIT Sloan Management Review, Vol. 46, No. 1, 2004, pp. 63-69.
[21] D. R. John, B. Loken, K. Kim and A. B. Monga, , “Brand Concept Maps: A Methodology for Identifying Brand Association Networks,” Journal of Marketing Research, Vol. 43, No. 4, 2006, pp. 549-563. doi:10.1509/jmkr.43.4.549
[22] G. Zaltman, “Rethinking Market Research: Putting People Back in,” Journal of Marketing Research, Vol. 34, No. 4, 1997, pp. 424-437. doi:10.2307/3151962
[23] G. F. Gebhardt, G. S. Carpenter and J. F. Sherry Jr., “Creating a Market Orientation: A Longitudinal, Multifirm, Grounded Analysis of Cultural Transformation,” Journal of Marketing, Vol. 70, No. 4, 2006, pp. 37-55. doi:10.1509/jmkg.70.4.37
[24] A. K. Kohli and B. J. Jaworski, “Market Orientation: The Construct, Research Propositions, and Managerial Implications,” Journal of Marketing, Vol. 54, No. 2, 1990, pp. 1-18. doi:10.2307/1251866
[25] W. Wells and D. Tigert, “Activities, Interests, and Opinions,” Journal of Advertising Research, Vol. 11, No.4, 1971, pp. 27-35.
[26] W. A. Kamakura and M. Wedel, “Life-Style Segmentation with Tailored Interviewing,” Journal of Marketing Research, Vol. 32, No. 3, 1995, pp. 308-408.
[27] O. Kucukemiroglu, “Market Segmentation by Using Consumer Lifestyle Dimensions and Ethnocentrism: An Empirical Study,” European Journal of Marketing, Vol. 33, No. 5/6, 1999, pp. 470-487. doi:10.1108/03090569910262053
[28] G. Tellis and G. J. Gaeth, “Best Value, Price-Seeking, and Price Aversion: The Impact of Information and Learning on Consumer Choices,” Journal of Marketing, Vol. 54, No. 2, 1990, pp. 34-45. doi:10.2307/1251868
[29] L. B. Crosby, R. D. Vito and J. M. Pearson, “Management Your Customers’ Perception of Quality,” Review of Business, Vol. 24, No. 1, 2003, pp. 18-24.
[30] R. K. Teas and S. Agarwal, “The Effects of Extrinsic Product Cues on Consumers’ Perceptions of Quality, Sacrifice, and Value,” Academy of Marketing Science Journal, Vol. 28, No. 2, 2000, pp. 278-291. doi:10.1177/0092070300282008
[31] U. R. Orth, M. McDaniel, T. Shellhammer and K. Lopetcharat, “Promoting Brand Benefits: The Role of Consumer Psychographics and Lifestyle,” Journal of Consumer Marketing, Vol. 21, No. 2, 2004, pp. 97-108. doi:10.1108/07363760410525669
[32] A. M. Thompson and P. F. Kaminski, “Psychographic and lifestyle antecedents of service quality expectations,” Journal of Services Marketing, Vol. 7, No. 4, 1993, pp. 53-61. doi:10.1108/08876049310047742
[33] D. Champion, “Marketing: The Bright Side of Gray Markets,” Harvard Business Review, Vol. 76, No. 5, 1998, pp. 19-22.
[34] J. H. Huang, B. C. Y. Lee and S. H. Ho, “Consumer Attitude toward Gray Market Goods,” International Marketing Review, Vol. 21, No. 6, 2004, pp. 598-614. doi:10.1108/02651330410568033-
[35] H. Li, T. Daugherty and F. Biocca, “Impact of 3-D Advertising on Product Knowledge, Brand Attitude, and Purchase Intention: The Mediating Role of Presence,” Journal of Advertising, Vol. 31, No.3, 2002, pp. 43-58.
[36] C. R. Newberry, B. R. Klemz and C. Boshoff, “Managerial Implications of Predicting Purchase Behavior from Purchase Intentions: A Retail Patronage Case Study,” The Journal of Services Marketing, Vol. 17, No.6, 2003, pp. 609-619. doi:10.1108/08876040310495636
[37] J. C. Bou, C. Camison and A. B. Escrig, “Measuring the Relationship between Firm Perceived Quality and Customer Satisfaction and Its Influence on Purchase Intentions,” Total Quality Management, Vol. 12, No. 6, 2001, pp. 719-734.
[38] W. B. Dodds, K. B. Monroe and D. Grewal, “Effects of Price, Brand and Store Information on Buyers’ Product Evaluations,” Journal of Marketing Research, Vol. 28, No. 3, 1991, pp. 307-319. doi:10.2307/3172866
[39] C. A. Martin and A. J. Bush, “Do Role Models Influence Teenagers’ Purchase Intentions and Behavior?” Journal of Consumer Marketing, Vol. 17, No. 5, 2000, pp. 441- 455. doi:10.1108/07363760010341081
[40] M. R. Young, W. S. DeSarbo and V. G. Morwitz, “The Stochastic Modeling of Purchase Intentions and Behavior,” Management Science, Vol. 44, No. 2, 1998, pp. 188- 202. doi:10.1287/mnsc.44.2.188
[41] S. Todd and R. Lawson, “Lifestyle Segmentation and Museum/Gallery Visiting Behavior,” International Journal of Nonprofit and Voluntary Sector Marketing, Vol. 6, No. 3, 2001, pp. 269-277. doi:10.1002/nvsm.152
[42] R. Tsiotsou, “The Role of Perceived Product Quality and Overall Satisfaction on Purchase Intentions,” International Journal of Consumer Studies, Vol. 30, No. 2, 2006, pp. 207-217. doi:10.1111/j.1470-6431.2005.00477.x
[43] D. Shawyer, N. French and A. McGann, “The Effect of Price Cues on Perceived Product Quality in a Grocery Shopping Simulation,” European Journal of Marketing, Vol. 6, No. 4, 1972, pp. 217-222. doi:10.1108/EUM0000000005143
[44] M. H. Goode and L. C. Harris, “Online Behavioural Intentions: An Empirical Investigation of Antecedents and Moderators,” European Journal of Marketing, Vol. 41, No. 5-6, 2007, pp. 512-536. doi:10.1108/03090560710737589

Copyright © 2024 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.