The Effects of Consumption Value on Satisfaction and Loyalty: Focusing on Chinese Smartphone Users

소비가치가 만족과 충성도에 미치는 영향: 중국 스마트폰 이용고객을 중심으로

Purpose - Recently, Korean companies have been struggling to perform well in the larger smartphone market in China, which is regarded as a blue ocean area. First, it is very important to accurately understand the Chinese consumers, who have a different consumption culture and value system from the Korean culture and system. This would help to identify priorities for the Chinese market. Further, considering the smartphone industry, where technological change is rapid, Korean companies will need to take prompt measures about market trends in order to establish strong competitiveness. Consequently, this study focused on analyzing the relationship between the variables of consumption value, satisfaction, and loyalty in the Chinese smartphone market. The principal dimensions of consumption value, which smartphones have, was analyzed, and the influence on satisfaction was identified. Moreover, the relationship among the variables of satisfaction, attitudinal loyalty, and behavioral loyalty was empirically analyzed. Research design, data, and methodology - This study examined the relationships between various consumption values (functional value, emotional value, social value, epistemic value, and economic value), along with satisfaction and loyalty. The data were collected through a questionnaire survey that was circulated to 310 customers who were users of smartphones in Chingdao and Yeontae regions in China. The survey was conducted from June 23 to August 4, 2013. A total of 301 responses to the questionnaires were collected and used for the data analysis. Moreover, a path analysis based on Lisrel 8.54 was used for the hypothesis test. Results - The variables of functional value, emotional value, social value, and epistemic value were revealed to have positive effects on satisfaction related to smartphone usage. However, the variables of monetary cost and psychological cost were not found to have negative effects on satisfaction related to smartphone usage. Moreover, satisfaction positively influenced attitudinal loyalty related to smartphone usage, but did not have a significant influence on behavioral loyalty related to smartphone usage. Specifically, satisfaction is essential, but not a sufficient condition for building behavioral loyalty in relation to smartphone usage. In addition, attitudinal loyalty positively influenced behavioral loyalty in relation to smartphone usage. Conclusions - First, this study shows that functional value, emotional value, social value, and epistemic value in relation to smartphone usage are important for marketing in the Chinese smartphone market. Particularly, functional value and emotional value play pre-eminent roles as regards customer loyalty in the use of smartphones. Second, the results of this study reveal that the variables of monetary cost and psychological cost are not important to the Chinese consumers. Specifically, the smartphone price and cognitive effort are not perceived as value barriers. Third, satisfaction did not guarantee behavioral loyalty in relation to smartphone usage, and the strategic approach for improving the repurchase and referral action in relation to smartphones based on solid attitudinal loyalty would be desirable and should be the focus of the marketing activities of Korean smartphone companies.