The Effect Of Market Attributes And Product Attributes On Willingness To Shop Across The Border

The phenomenon that many Mainland Chinese people cross the border to shop and consume overseas has recently drawn great public attention abroad. Meanwhile, more and more visitors from abroad come to China for tourism and business. On the contrary, it is a pity that no Mainland Chinese author ever touched so hot two-way cross-border shopping phenomenon in China. In theory, three factors influence the cross-border shopping:market, product and consumer. The thesis researches on the effect of market attributes and product attributes on Cantonese and Hong Konger'willingness to shop across the border could help firms, industries and governments on both sides of the border to understand the picture of the phenomenon and something deep into the water.According to the cross-border shopper decision process, this thesis consists of two studies. Study 1 focuses on the effect of market attributes on consumers' market choice decision. In this study, the author conducted an empirical survey and then developed neural network models, which are known for their capability of modeling noncompensatory decision processes, to predict and explain consumer choice between HK and Mainland for buying credence goods and experience goods. Study 2 focuses on the effect of product extrinsic attributes (shopping market, price, and country of origin) on consumers' product choice decision. The author developed propositions about conditions under which HK market may lead to stronger, less, or the same willingness to buy as do Mainland market. The propositions are tested in two experiments which varies shopping market (HK vs. Mainland), price (high vs. low), country of origin (the west brand vs. Chinese brand), goods types (search goods vs. experience goods), and consumer types (Hong Konger vs. Cantonese).Results suggest that for the credence goods, only two attributes of HK market:smaller probability to buy counterfeits and higher product quality positive affect Cantonese willingness to shop across the border. If the travel cost of money and time can be minimized, Cantonese will cross the border to shop in HK without hesitate. As for the experience goods, results indicate that price, services and shopping environment are main HK market attributes that drive Cantonese shop across the border. In Mainland, Hong Kongers have stronger willingness to buy low-price Chinese brand products than high-price and (or) the west brand products. While in HK, they are more likely to buy the west brand goods than the Chinese brand goods. On the other hand, Cantonese have stronger willingness to buy low-price products in Mainland than in HK. Besides, as for the search goods, the market attributes differences between HK and Mainland are insignificant or not important enough to affect consumer' willingness to shop across the border. The major findings are discussed and directions for future research are suggested.