WHY CHINA CAN HAVE DIFFERENT ELECTRONIC PRODUCT MARKET
Paper Type: Dissertation
Academic Subject: Consumer Demand
Word Count: 2800
Submitted by: Student
The growing technological advancements have led many markets in the world towards the expansion of digital products market. These products are widely used due to their convenience and time saving ability. In other words, these products are being considered as the pioneer of information and technology. The communication has become easier and with the rise of globalisation, many digital products such as mobile phones and internet have become common amongst the people. Digital products market in the world China has been one of the widely expanding digital product markets emerging on both domestic and international level. With the rise in the population in China, the use of the digital products has also been increased. People now prefer different kinds of digital products and this is becoming a trend amongst all the people living in the country. Due to this preference, the consumer’s demand of these products has risen along with the consumer base in Chinese market. China’s digital product market has also some implications for the international business products; however consumers prefer Chinese digital products due to the low prices. Nevertheless, the quality of the digital products is also the concern of some people providing that Chinese digital product market can have many products available due to consumer demand.
The world of information technology has begun to enter in the markets with the implication of great profits and development. People living across the borders have started to connect with each other with the different digital products as well as started to use those products for their own entertainment. The Chinese market has also developed due to the rise of the use of digital products especially in youngsters. The dependency of people on digital products such as mobile phones, camera, game consoles and others in China has been the main reason for high demand of digital products. This research was conducted with the main aim of answering the research question stated why the China can have different types of digital products in the market. The aim of the research had been divided into number of objectives given below:
Ideally the fourth chapter of the dissertation, this chapter incorporates the data analysis of the information gathered for the purpose of answering the research question. As the main aim of the study was to identify why China can have different types of products in the market and this led towards the choice of quantitative research design by the researcher. Due to the quantitative nature of the research, the data has been analysed by using diagrams and graphs derived from the answers obtained through the designed questionnaire. In order to align the analysis with the research objectives, the detailed discussion has also been included in this chapter.
The analysis of the research has been the most important part as it helped in addressing the question of the research study. The data analysis has been divided into demographic and descriptive analysis which is given below:
The demographic analysis is the analysis of the respondent’s age and gender. The demographic analysis has included the number of participants, their gender and their age.
The first question of the questionnaire was about the gender of people. The derived information showed that amongst the 30 respondents, 15 were male and 15 were female, who answered the questions given in the questionnaire.
The second question was about the age of the respondents. It was identified that out of 30 respondents, five were under the age of 18, nine people were between18-25 and six were 26-35. Out of remaining ten, five were between the age of 36 and 45 and five were over 45.
The descriptive analysis would be the analysis of remaining questions of the research. The analysis is as follows;
The third question of the questionnaire was about consumer’s preference about a digital product in the market in accordance with their need. Out of thirty respondents, 10 people preferred mobile phones and 10 chose game consoles as the most preferred digital products. This is because the number of the young respondents was higher than the others and these people preferred mobile phones and game consoles as the most desired digital product.
The fourth question of the questionnaire was about the choice of a mobile brand the consumers preferred the most. According to the collected information, 9 people said that they preferred Sony and 8 people said that they chose Apple as the most favourite mobile phone brand. Out of remaining thirteen people, 10 said that they liked Samsung and 3 chose “other” option of the questionnaire.
The fifth question of the questionnaire was asked to the respondents as if they were a teenager which brand of game console would they buy. Amongst thirty respondents, most of the respondents, about 15 respondents, said that they would buy game consoles of Sony brand. The remaining fifteen respondents had different response as 5 said that they would buy Microsoft brand and 10 chose Nintendo as the most preferred game console brand to buy.
The next question was about the factors, which the respondents would consider while buying digital products. They were given options like brand, quality, price, design, playability, convenience, function and plasticity. Four people said they would consider brand, convenience and function respectively. Out of the remaining fourteen respondents, five respondents chose quality and 5 chose price as their most considered factor while buying digital product. Moreover, only two people said that they would prefer playability and 2 said plasticity as the most favoured characteristic while buying a digital product.
The next and last question of the questionnaire was about the total time people like to spend on a digital product. This question was asked to understand the consumer’s usage of a digital product. Out of thirty respondents only 2 people said that they would spend less than three hours on a digital product whereas4 people responded that they would spend three to five hours on a digital product. Most of the people, 10 respondents, said that they spend most of their time almost more than twelve hours on a digital product. Out of remaining fourteen 6 respondents said they would spend six to nine hours and 8 people said that they would spend ten to twelve hours on a digital product.
The discussion of the analysis is given below:
According to the research conducted by Esper et al. (2010: 5) the development of markets is dependent upon a customer demand of the particular products. High customer demand means high sales and hence high profit margin. The Chinese digital product market has developed due to the high consumer’s demand of different digital products. With the rise of technological development in China the people are inclined towards both convenience and entertainment. This has been identified from the research as well that in China high consumer demand and influence of digital products as well the preference of the domestic market products amongst the people have been the reasons why China’s electronic and digital product market have developed in recent years. According to Hill, Jones and Schilling (2014), cost leadership theory is defined as the strategy of the company to lower down the cost of production in order to position the products in the market with lower prices. In China, the cost of production is low, the main reason why people prefer Chinese products all over the world. This is another reason behind the growth and development of China’s digital product market and the inclusion of different digital products in the market as well.
According to Qiu and Zhou (2013: 142) the rise of globalization has also increased consumer’s preference of digital products in the world. The markets have been concerned about incorporating new forms of digital products in the market in a way that would increase consumer preference and loyalty as well as give positive brand image to the company and brand. This aspect has also been aligned with the research object. As the markets are growing, China’s digital product market has also including different types of digital products. As stated by Goggin (2012) the growing importance of information and technology and the rise of interdependence have increased the use of mobile phones in the world. The research also determined the same notion which was another objective of the research. In China the most preferred digital product used is mobile phone. The people especially youngsters are inclined towards the fun and entertainment and for that matter most of them use game consoles or game accessories in order to pass time. The research also identified that in China youngsters like to indulge in activities which include game consoles. Other than that the people also prefer camera, home appliances and other products much to their convenience.
According to Hoyer et al. (2010: 283) brand image can increase consumer motivation and loyalty towards the products. The brand image can be created by the number of factors. This factor can be price or quality or both. The price effective theory advises that the brand owner puts the lowest price of the product in the market to influence consumer buying behaviour. It has also been identified by the research that the people in China prefer Samsung the most due to the low prices of the product. However, there are some people in China who prefer the strong brand name more than the price of the product and make purchases of those high price brands. The most preferred brand in China has been Samsung however Sony has also emerged with a strong brand name in the market. According to the research conducted by Aaker (2012) the high consumer demand of the product is the reason behind the brand presence in the market. The many brands only exist in the market because consumers use them. In China the different mobile brands are present due to the fact that people like those brands such as iPhone, Sony and Samsung. This has been the main research question and the research findings align with the main question of the research that why China can have different types of digital product market. Thus the research had given a positive response towards a research question.
As a study conducted by Rouse (2010) stated that the indoor games have been converted into digital games which can be played inside the house. The young generation of the world is inclined towards the entertainment especially the game consoles and game accessories. In China the teenagers are being indulged in different types of games such as Xbox and PS4. These young people prefer different brands of game console such as Sony, Nintendo and Microsoft. This has been identified by the primary information gathered in this research. Most people especially teenagers prefer Sony as the most popular gaming brand amongst the others. According to Williams and Page (2011: 1), the millennial generation is known to be the people who are tech savvy. These people consider the world as a digital screen and like to use different digital and electronic product for their own entertainment and convenience. These are young people and are the largest users of mobile phones and game consoles. Similarly, in China the young clan is also the millennial generation and these people are tech savvy as well. This has been identified by the gathered information when people responded towards the question about the preferred game console brands. Their preference is another reason why China’s digital product market can have different types of product market.
According to Wheelwright (2010) the product life cycle starts from the idea of the product till its removal from the market. The consumers make buying decisions on the basis of satisfaction given by the product. This satisfaction can be achieved through a time frame in which the product is consumed by the customer. The research identified that the product life cycle in China is long due to the consumer’s total usage of the product. The user of a digital product in China spends most of the time of the day on a digital product. It can be for entertainment or for the convenience: in both the cases the total usage of the digital product in China is high. This is one of the other reasons why China has different kinds of digital products in its market. According to Castells (2011) the rise of information and technology has made people’s lives easier and easy to connect with each other. This aspect has also been derived from the research. In China people like to spend most of their time using digital product either due to the basic requirement or due to the boredom. In both the senses the high consumer usage has been one of the reason for growing demand of digital product in Chinese market and hence one of the reasons why China can have different kinds of digital products in its market.
The data analysis has achieved all the aims and objectives of the research. The analysis were drawn which helped the researcher to put the discussion into perspective. The analysis suggested that China’s digital product market has different types of products due to consumer’s preference and demand especially by the teenagers. The high demand have also shown the great influence in Chinese market as the people have started to spend more of their time on digital products. China’s digital product market is effective in its production and pricing strategy and due to which the consumer’s loyalty has been increased towards Chinese products.
The research was conducted for answering the question why China can have different types of products in the market. For answering the research question in a systematic way, the research set the aims and objectives of the research. In order to have a better understanding of the latest facts and facets about the Chinese market, the researcher included a detailed review of existed literature. Further, the researcher selected the research strategy and design for the conduct of the research. The data was collected by using primary source particularly the questionnaire. According to the quantitative nature of the research, the quantitative research design as well as inductive approach were selected for answering the research question that why China can have different types of electronic products in the market. The sample size for collecting primary information was thirty and the people who were selected for gathering information were the users of various digital products.
The next step after the collection of data was the analysis. The analysis was drawn on the basis of the answers received from the questionnaires and different diagrams and charts were used to analyse the data. The aims and objectives of the research were met due to the data analysis which further was discussed in the discussion session of the research. The research developed the idea that china can have different types of products in the market due to the consumer’s preference in the country. Amongst the many people youngsters used the digital products most and for a long span of time. This has identified the reason for the development of China’s digital product market. The research determined that the growing demand of the digital products and people’s preference were the factors due to which China’s digital product market has a potential to grow more in future.