2. Background

2.1. Chinese consumers’ information search behaviour

A study by Accenture revealed that Chinese consumers rely heavily on a wide variety of information sources in making purchasing decisions in order to have secu- rity in those choices (Teo et al., 2007). According to a study by MasterCard Worldwide (2008), fashion maga- zine advertisements appear to be the most popular medium for gathering information on where to shop, preferred by 71.8% of Chinese consumers, followed by TV advertise- ments (57.5%). The study also reveals that the Internet is the third most preferred medium (53.7%) and word-of- mouth, in the form of recommendations from friends and families, is in fourth place (41.5%). A more recent study by McKinsey & Company (2010) also indicated that the importance of word-of-mouth and use of Internet websites have grown in recent years as leading information sources for Chinese consumers, while TV advertising continues to dominate in China as the most important information channel for products and brand awareness.

These reports by MasterCard Worldwide and McKin- sey show clear differences between Chinese consumers and their counterparts in other countries regarding their preferred information sources for shopping. For exam- ple, according to a recent study by Cotton Incorporated Lifestyle Monitor (14 February 2007), 67.5% of female consumers in the USA use store displays, followed by people seen regularly (50.6%), family members (42.5%),

catalogues (42.1%), TV commercials and ads (40.5%), fashion magazines (31%), salespeople (19.4%), and celebri- ties (17.2%). A study on male US consumers’ use of information sources for gathering clothing ideas conducted by Cotton Incorporated Lifestyle Monitor (18 April 2005) revealed that 37% of average male consumers use store displays to gather ideas for clothing items, followed by peo- ple who they see regularly (33%), family members (32%), TV commercials and ads (25%), catalogues (21%), fashion magazines (15%), salespeople in stores (14%), and celebri- ties (12%). As such, cultural values and other aspects of social environment might have affected Chinese consumers’ use of information sources. Chinese consumers may have not only distinctive tastes and priorities but also unique ways of choosing and buying products.

2.2. Socio-economic factors in shopping

Existing evidence shows that the use of personal and impersonal information sources varies by socio-economic characteristics such as educational background, income, occupation, and social status. A study by Han and Kim (2002) revealed that South Korean female consumers in their 50s and 60s tend to rely on their past purchase experience, family and friends, store display, and fash- ion advertisements when purchasing apparel products. Seo (2003) found that South Korean women in their 30s and 40s with a higher educational background tend to have a more receptive attitude towards the information received from observing other people’s clothing, mass media adver- tisements, and media articles. According to a study by Ok (2000) on South Korean consumers’ use of informa- tion sources, consumers with higher income utilise more personal and impersonal information sources than lower income consumers. Han and Kim (2002) also found that consumers with higher income utilise more internal search from their past experience, personal information sources, and store display. Yu (2008) found that consumers with higher income placed greater importance on both personal and impersonal information sources than those with lower income. In a study by Jang (1995), upper-class consumers placed importance on their own judgement, while those in the middle class rely more on others’ opinions and media advertisements. Clearly, China is not a homogenous market and shopping behaviours often differ by demo- graphic characteristics (Jin & Kang, 2011). The present study continues the effort to explore the information search behaviour of Chinese consumers varied by socio-economic characteristics.