Abstract

- Special issues published in Journal of World Business - Volume 47, Issue 1 (2012)

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Abstract

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Abstract

This paper examines Chinese and British consumers' evaluations of Chinese, and international brands, and factors affecting their brand choice. The results support recent findings of a decline in Western brands' preference in China. But, these are attributed to several factors. The findings show country of origin does not affect Chinese brand choice, has a great effect on British choice between Chinese and other brands; brand value, and brand familiarity influence Chinese choice whereas brand reputation, and brand trust determine British choice. Implications for Chinese domestic and international expansion strategies, demographics' influence, and cultural differences are discussed.

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ATTITUDES ;  Brand choice factors ;  British and Chinese consumers ;  Chinese brands evaluation ;  Chinese international expansion ;  COO effect ;  Developed and developing markets ;  DEVELOPING-COUNTRIES ;  IMAGE ;  MARKET ;  ORIGIN ;  PRODUCTS

Abstract

This article evaluates the international location decisions made by public listed Chinese firms during the period 2006-2008, using a Poisson count data regression model. Further, we categorize the firms into state-controlled and privately owned according to majority ownership. We find that the determinants of internationalization differ based on ownership. State-controlled firms are attracted to countries with large sources of natural Resources and risky political environments. Private firms are more market seekers. Although all firms have strategic intent, the attraction is commercially viable technology rather than core research content. Our findings also show that existing theories can sufficiently explain the actions of private Chinese firms, but adjustments are needed to understand the behavior of state-controlled multinationals.

Keyword

China ;  Chinese firms ;  Firm ownership ;  Locational determinants ;  Outward FDI