Download - chinese and non chinese
-
7/27/2019 chinese and non chinese
1/19
1
Table of Contents
S.no Topics Pg.no
1 Introduction 1
2 Literature review 3
3 Research methodology 5
4 Findings and Suggestions 9
5 Data analysis 10
6 Pareto analysis 13
7 Diagrammatic representation 14
8 conclusion 15
9 Questionnaire 16
-
7/27/2019 chinese and non chinese
2/19
2
ABSTRACT
China, which is a growing economic power, exports its manufactured goods to the entire global
markets. In India imports were increasing day by day around 200 million crores of imports were
from china only due to its competitive advantage than other countries. Chinese goods have been
successful to capture market because of its competitive price strategy as compared to theproducts of other countries. The major problem with the Chinese products is that these are
perceived as of relatively inferior quality in comparison to the products of other countries. This
study is an attempt to assess the perceptions of customers regarding price and quality aspects of
Chinese and non Chinese products. To compare the relative effectiveness of price and quality,
the concepts of perceived life and perceived value are used. It is found that the Chinese products
are perceived as price effective but the area of product quality requires.
-
7/27/2019 chinese and non chinese
3/19
3
1. INTRODUCTION:
It is being observed that the sale of Chinese manufactured goods is very common in the markets
around the globe and Chinese products such as home appliances, generators, stationary items,
clothes and fabric and hardware are dominating specially in the Indian markets.Figure 1 showsthe import of manufactured goods from China following a consistently rising pattern while
Figure 2 shows the growth rate of Indian imports (Billion US $) from China.
Source :(http://www.indianembassy.org.cn/DynamicContent.aspx?MenuId=3&SubMenuId=0)
Source: (http://www.indianembassy.org.cn/DynamicContent.aspx?MenuId=3&SubMenuId=0)
0
10
20
30
40
50
60
2011 2012 2013
Chinas Exports to India in us$
Chinas Exports to India in
us$
0
50
100
150
200
250growth rate
growth rate
http://www.indianembassy.org.cn/DynamicContent.aspx?MenuId=3&SubMenuId=0http://www.indianembassy.org.cn/DynamicContent.aspx?MenuId=3&SubMenuId=0http://www.indianembassy.org.cn/DynamicContent.aspx?MenuId=3&SubMenuId=0http://www.indianembassy.org.cn/DynamicContent.aspx?MenuId=3&SubMenuId=0 -
7/27/2019 chinese and non chinese
4/19
4
Source:(http://www.foreign-trade.in/node/98)
By observing the above graph imports of India were majorly from china than other countries like
Germany, Belgium, Indonesia, Japan, and Saudi Arabia etc,,. After china, India majorly imports
from Switzerland. The Value of imports from China is around 200 million crores in 2011-12.
Due to its competitive advantage in human resource its playing a major role in the exports of all
over the world. China, which is a growing economic power, exports its manufactured goods to
the entire global markets
Consumers are usually attracted by low price of Chinese goods as compared to goods imported
from other countries but on the other hand they are skeptical about the durability of Chinese
manufactured goods. The quality of manufactured goods is an important factor for consumers
and is considered as an important factor for the exports too.This study focuses on comparing the
quality, durability and value of goods manufactured by China and other countries available in the
markets of India as perceived by consumers.Perceived quality can be defined as the customer'sperception of the overall quality or superiority of a product or service with respect to its intended
purpose, relative to alternatives. Perceived quality is, first, a perception by customers. It thus
differs from several related concepts, such as:a) Actual or objective quality: the extent to which the product or service delivers superior
service
b) Product-based quality: the nature and quantity of ingredients, features, or services included
c) Manufacturing quality: conformance to specification, the "zero defects" goal
http://www.foreign-trade.in/node/98http://www.foreign-trade.in/node/98http://www.foreign-trade.in/node/98 -
7/27/2019 chinese and non chinese
5/19
5
2. LITERATURE REVIEW:
Perceived product quality is perhaps one of the most important constructs in marketing .In recent
years perceived quality has been the subject of considerable interest to both practitioners and
researchers, mainly in services marketing. Indeed, the belief that perceived quality leads to
repeated purchases is the bedrock of any business. Thus a better understanding of the
relationship between perceived product quality and product involvement, consumer satisfaction,
and purchase intentions may help academics to develop a model of consumer decision making
for goods.Products life or durability is equally important as price criteria to the consumer in a
purchasing decision. For last several decades market research studies have consistently
confirmed that product durability is a primary factor that influences repeat purchases.Consumer
perceptions of price, quality and value are considered pivotal determinants of shopping behavior
and product choice.
Intrinsic/extrinsic
Intrinsic cues
Extrinsic cues
Perceived quality
Perceived value
Purchase
Market price
Monetary cost
Forgone cost
Perceived price
-
7/27/2019 chinese and non chinese
6/19
6
On the basis of the above mentioned references it can be concluded that Price and durability of a
product make a customer satisfied about the product. Hence satisfaction of a customer about a
product is related with the constructs perceived price and perceived durability, and it influences
the purchase decision in future. As the consumer product price and durability are the primary
factors for making decisions about future purchase, therefore the metrics based on customer
knowledge about pricing and their perceptions about the durability of a product are suitable
measures that can be used to reflect conditions of product quality and product value. Survey
questionnaires are a primary means for collecting data of consumer perception of price, quality
and value
Of particular importance is the fact that many research studies have shown that metrics based on
customer knowledge about pricing and their perceptions of product durability are appropriate
measures that can be used to reflect conditions of product quality or product value by the
customers to determine consumer product purchase behavior. Schniederjan, Cao and Olson have
concluded that perceptions of consumer purchasing behavior can be accurately measured.
Consumer product price and durability are primary factors in future consumer purchasing
decisions. Also price and durability can be linked together to compute a consumer metric called
product value. A model relating Perceived Quality, Perceived value, and Perceived Price as the
purchase decision
3. RESEARCH METHODOLOGY:
3.1 Data Collection:
To conduct this study, an online survey questionnaire is designed that targets the consumers
belonging to different age group in different locations through social networking sites.The items
manufactured by China and other countries are available in the markets of Andhra Pradesh and
the items included in this study have been considered on the basis of a survey of different
markets in Andhra Pradesh through e-search. The list of items included in this study comprises
of 77items. The items being included are placed in different categories named as Lawn Furniture,
small appliances, electronic items, clothes and fabric products, Hardware items and General
Miscellaneous as given in Appendix 2. The questionnaire was forwarded to the consumers who
-
7/27/2019 chinese and non chinese
7/19
7
were there in my friends list in social networking sites and I received 300 responses out of which
270 response were found complete in all respect and have been included in this study.
After observing the frequency table, age between 20 to 29 were 89% more in number than other
ages.
Above frequency table shows that males are more in number while comparing to the females
from the collected responses.
age
Frequency Percent Valid Percent Cumulative Percent
Valid under 20 50 16.7 16.7 16.7
20-29 217 72.3 72.6 89.3
30-39 22 7.3 7.4 96.7
above 40 10 3.3 3.3 100.0
Total 299 99.7 100.0
Missing System 1 .3
Total 300 100.0
Gender
Frequency Percent Valid Percent
Cumulative
Percent
Valid male 194 64.7 64.9 64.9
female 105 35.0 35.1 100.0
Total 299 99.7 100.0
Missing System 1 .3
Total 300 100.0
-
7/27/2019 chinese and non chinese
8/19
8
3.1 Research Instrument
The research instrument for this research comprises of 18 questions. The questions are about age,
gender, marital status, education, origin of the item in use, price of the item, expected age of the
item in use, satisfaction level etc. The constructs of our research instrument was pretested with a
focus group to determine, whether the questions are correctly understandable for extracting the
required information and to determine whether the questions are valid or not. The results of this
pretest revealed no misinterpretation of the questions. The questions used in this study are
presented in Appendix 1.
3.2 Purpose and hypothesis:
The purpose of this research paper is to study consumer perception on the quality of products
made in China. In this research we will concentrate about following two objectives:
1. To compare Business institutes consumers-based perceptions on the quality of Chinese made
goods with the perceptions of non-Chinese goods.
2. To compare Business institutes consumer-based perceptions on the value of Chinese made
goods with the perceptions of non-Chinese goods.
In the light of objectives of this research following alternatives have been stated to test their
truthfulness.
H1: Chinese manufactured products are perceived significantly low in price as compare to
products produced in other countries.
H2: There is significant difference between the mean perceived life of the products
manufactured by China and by other countries
H3: There is significant difference between the mean perceived values of the products
manufactured by China and by other countries.
H4: Chinese manufactured products are perceived as significantly low in quality as compared to
the products produced in other countries.
.
-
7/27/2019 chinese and non chinese
9/19
9
3.3 Variable measurement metrics
In this research Simple Economic Indexation procedure has been used for comparing the
perceived quality and value of Chinese manufactured goods and non-Chinese manufactured
goods. The quality characteristics of the products used in this research are product price and
product durability. The ratios for both the Chinese and non-Chinese products are:
Product Value (Chinese product) = Mean price paid for Chinese products .(1)
Mean number of months product actually lasted
Product Value (Non-Chinese product) = Mean price offered for non-Chinese products..... (2)
Mean number of months product was expected to last
The lower the value of the index, the better the overall perceived quality of the product. Quality
is defined as the duration of useful life relative to the price paid for the product.
The computation of net product value is based on the ratios in equations 1 and 2 given as under:
Net product value = Product value (non-Chinese)Product value (Chinese)..(3)
The larger the product value, the greater is the price /cost of their use. As long as net product
value is positive, the value of the non-Chinese products is better than the Chinese products, if net
product value is negative, the Chinese products sampled in this survey are rated as more price
/cost-valued than the non-Chinese products.
In order to compare the relationship of non-Chinese product value with that of Chinese product
value is a simple price ratio index of the product values.
A product value index less than 100 favors Chinese goods, while an index greater than 100
favors non-Chinese made goods. Computation of Equation 1 is based on the responses to
question 8 and 9 while computation of equation 2 is based on responses to questions 10 and 12.
The responses are however based on the assumption that the respondent:
1) Remember the price and 2) Remember that it was a Chinese or nonChinese product
-
7/27/2019 chinese and non chinese
10/19
10
4. FINDINGS AND DISCUSSIONS:
The number of responses to each survey question from the total of 300.Based on the sample of
300 responses the mean price, mean durability, product value, net product value and product
value index measures were computed . It gives comparative analysis of Product value and net
product value for the Chinese and Non-Chinese product. It also gives the Product Value Index,
the value of which can be interpreted with respect to the standard value of 100. If for any
product, we get 100 as the Product value index, it indicates that the Product Value for both
Chinese and Non-Chinese for that product is same. Any value less than 100 indicates that the
product value of Chinese Product is greater as compared to the Non-Chinese Product. Similarly,
if it has a value greater than 100, it favors the Non-Chinese Product in terms of Product Value
Index. We can identify that travelling bags is the product having Product Value Index of 101.67
which is closer to 100, and it implies that for this product the respondents are indifferent
regarding the product value of Chinese and Non-Chinese product. The items mobiles (67.40) and
electronic equipments (172.99) have the lowest and highest Net Product Value Indices
respectively.
ITEMS MPNC useful life
productvalue
MPC useful life
productvalue
netproductvalue
productvalue index
Ele. shavers 2631.85 14 187.989 1731.4 12 144.28 43.704 76.7518621
calculator 333 20 16.65 294 24 12.25 4.4 73.5735735
laptops 39915 32.5 1228.1 30025 30 1000.8 227.32 81.4908764
watches 1975.2 24 82.302 1178.2 20 58.912 23.389 71.5806676
digitalcameras
13432 24 559.6667
7500 12.5 600 40.333 107.206670
travellingbags
3100 17.8 174.157 2160 12.2 177.049 2.8918 101.660497
mobiles 14626. 21 696.498 8521.2 18 473.402 223.09 67.9689517
electronicequipments
9500 26 365.384 5666 9 629.555 264.171
172.299415
shoes male 1334.8 18 74.13 1305 14.73 88.564 14.432 119.468484head phones 2678.98 16.45 162.855 1988.7 15.4 129.139 33.716 79.2964452
dvd players 2800 18 155.555 2154.1 16.8 128.222 27.332 82.4288265
kitchenaccessories
35333 17.6 2007.55 21789 12.35 1764.29 243.26 87.8825187
table tennis 15000 35.5 422.535 8000 11 727.272 304.73 172.121212
-
7/27/2019 chinese and non chinese
11/19
11
MPNC: mean price non Chinese products; MPC: mean price for Chinese products.
Net Product value computed for 300 subjects on the basis of questions 4 8 from the
questionnaire which indicates that 8 out of 13 are the non Chinese products have greater product
value than Chinese products.Negative sign is appearing with the measures of 5 products
favoring these 5 Chinese products like table tennis, electronic equipments, shoes male, travelling
bags, digital cameras.Therefore, it can be concluded that consumers perceive 5 of these Chinese
products better than competing non-Chinese products.
5. DATA ANALYSIS:
In this research data analysis has been performed with the help of SPSS 17 in two stages. At the
first stage, in order to test the hypothesis H1, H2, H3 and H4, independent samples testing has
been performed.
H1: Chinese manufactured products are perceived significantly low in price as compare to
products produced in other countries
t-Test: Paired Two Sample for Means
Variable 1 Variable 2
Mean 10973.84 7100.985231
Variance 1.69E+08 80429258.35
Observations 13 13
Pearson Correlation 0.988505
Hypothesized Mean Difference 0
Df 12
t Stat 3.220133
P(T
-
7/27/2019 chinese and non chinese
12/19
12
H2:There is significant difference between the mean perceived life of the products manufactured
by China and by other countries
t-Test: Paired Two Sample for Means
Variable 1 Variable 2
Mean 21.91153846 15.99885
Variance 40.43339744 34.38439
Observations 13 13
Pearson Correlation 0.231783778
Hypothesized Mean Difference 0
Df 12
t Stat 2.810595872
P(T
-
7/27/2019 chinese and non chinese
13/19
13
Reject H3
There is no significant difference between the perceived value of the product of Chinese and non
Chinese products.
H4: The difference between the mean perceived quality for Chinese and Non-Chinese products
are significant which supports our H4
t-Test: Paired Two Sample for Means
Variable 1 Variable 2
Mean 10973.84 7100.985231
Variance 1.69E+08 80429258.35
Observations 13 13
Pearson Correlation 0.988505
Hypothesized Mean Difference 0
Df 12
t Stat 3.220133
P(T
-
7/27/2019 chinese and non chinese
14/19
14
6. PARETO ANALYSIS:
Pareto analysis is used to assess question 16, that focuses on the reasons for perceiving the
Chinese and non-Chinese products differently. In this research the Pareto analysis is based on the
information from question 16. It identified the three main reasons for which Chinese products are
perceived as low graded.
DURABILITY- 168, MATERIAL -53, OTHERS57, DESIGN- 10, WORKMAN SHIP-12.
By observing the pareto analysis that there is 57% of these five reasons for perception of the
failure of the product.It is suggested that the Chinese manufacturers should consider these
reasoning in their quality improvement program in order to improve the perception among the
consumers about the quality of their products.
0
20
40
60
80
100
120
0
20
4060
80
100
120
140
160
180
Frequency
cumulative percentage
-
7/27/2019 chinese and non chinese
15/19
15
7. Diagrammatic representation:
How do you feel about the quality of any similar non-Chinese product you used earlier?
How do you feel about the quality of any similar non-Chinese product you used earlier?
Frequency Percent Valid Percent Cumulative Percent
Valid bad 1 .3 .3 .3
poor 16 5.3 5.3 5.7
average 122 40.7 40.7 46.3
good 144 48.0 48.0 94.3
excellence 16 5.3 5.3 99.7
53 1 .3 .3 100.0Total 300 100.0 100.0
How do you feel about the quality of Chinese product you experienced earlier
How do you feel about the quality of Chinese product you experienced earlier?
Frequency Percent Valid Percent Cumulative Percent
Valid bad 34 11.3 11.3 11.3
AVERAGE 101 33.7 33.7 45.0
FAIR 121 40.3 40.3 85.3
GOOD 36 12.0 12.0 97.3
EXCELLENT 8 2.7 2.7 100.0
Total 300 100.0 100.0
By comparing the percentages of perceptions about the quality of Chinese and non Chinese
products in the above tables 48% consumers rated non Chinese products were good and 40% of
consumers rated non Chinese products were fair.
-
7/27/2019 chinese and non chinese
16/19
16
8. CONCLUSION:
This research is based on consumer survey where price and product durability has been used as
measures to assess the perceived quality of Chinese and non-Chinese products. This research
supports H1,H2 and H4 therefore it may be concluded that the average price of Chinese products
is significantly less than the average price of non- Chinese products while same is true for
perception regarding quality of Chinese and non-Chinese products and there is a significant
difference between perceived life of product of Chinese and non Chinese products. However, I
did not found any difference between perceived qualities of Chinese and non Chinese products.
Although Chinese products are dominating in the markets all over the world but Chinese
manufacturer have to pay attention to improve the quality of their products in order to maintain
this domination. Product quality is an aspect in which Chinese Products are lacking as consumers
perceived the non-Chinese products as of better quality as compared to the Chinese products.
And Chinese products have to develop their durability than non Chinese products most of the
customers were not satisfied with the durability of the Chinese products.
-
7/27/2019 chinese and non chinese
17/19
17
-
7/27/2019 chinese and non chinese
18/19
18
1.
Age: _______Years
2.
Gender: (300) Male / Female
3.
Marital Status: (300) Single / Married
4.
Have you purchased recently and used an item made in China in the last fouryears? (If you answered yesproceed to the next question)
Yes/No
5.
Which Chinese products you purchase during last four years?( Check all thatapply) (300)
6.
Which Chinese product did you purchase and used (write the item from the listattached, also circle it in the list) (300)
________________
7.
Considering the price and the length of useful life of the Chinese made product,
how would you rate the value of this product from what you might have expectedfrom using the similar product in the past? (300)
1 I feel cheated2 Poor value3 Fine value4 Good value5 Great value
8.
Roughly, how much did you spend on this Chinese product? (300) Rs._______________
9.
Roughly what was its useful life? (Specify in nearest months) (300) _____________months
10.
How many months of useful life did you expect from this product? (Specify in
nearest months) (300)
______________months
11.
Did you compare prices with other similar items at the time of your purchase ofthe Chinese product? (300)
Yes/No
12.
Roughly what was the price of a similar item that you did not purchase? (300) Rs.____________
13.
What was the country of origin for the similar item which you did not purchase?(300)
_________________
14.
How do you feel about the quality of any similar non-Chinese product you usedearlier? (300) 1 Bad
2 Poor3 Average4 Good5 Excellent
15.
How do you feel about the quality of Chinese product you used earlier? (300)
1 Bad2 Poor3 Average4 Good5 Excellent
-
7/27/2019 chinese and non chinese
19/19
19
16.
How much did you spend on this Chinese product you identified in question no.11? (300)
Rs.___________
17.
If you have to guess why your Chinese product failed which one of the following
is your guess?( Mark all that applies) (300)
Workmanship Material Design of a
product Durability Other
18.
Is there anything you would like to comment concerning products made in China?(300)
__________________