Journal of the Korea Society of Computer and Information (한국컴퓨터정보학회논문지)

Korean Society of Computer Information (한국컴퓨터정보학회)
권호 표지
DOI QR코드

DOI QR Code

A Study on the Difference of Price Response in China: Focus on Tier 4 Cities

  • Kwak, Youngsik (Dept. of Business, Gyeongnam National University of Science and Technology) ;
  • Hong, Jaewon (Dept. of Global Trade, Gyeongnam National University of Science and Technology) ;
  • Nam, Yongsik (Cheil China)
  • Received : 2018.10.31
  • Accepted : 2018.11.07
  • Published : 2018.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

The purpose of this study is to empirically measure the consumer response to mobile phone price changes in small and medium cities that have been alienated from Chinese marketing research. To do this, we measured price response through consumer survey based on conjoint analysis. The results of this study are as follows. First, it show a typical pattern in which the part-worth decreases as the price increases. This suggests that there is room for improvement in profitability through pricing strategy for small and medium cities. Second, the decrease of the utility value according to the price increase was different for each city. This implies that difference of price response by city should be used strategically when planning price tactics. This study has contributed to understanding the expansion of research subjects from large cities to small cities and the price response phenomenon of small cities. And it will provide basic data on price response to mobile phone marketers of small and medium cities.

Keywords

CPTSCQ_2018_v23n12_227_f0001.png 이미지

Fig. 1. Difference Between High and Low Price

Table 1. Classification by Administrative divisions

CPTSCQ_2018_v23n12_227_t0001.png 이미지

Table 2. Classification by city size

CPTSCQ_2018_v23n12_227_t0002.png 이미지

Table 3. Characteristics of Respondents

CPTSCQ_2018_v23n12_227_t0003.png 이미지

Table 4. Statistics of part-worth by price level

CPTSCQ_2018_v23n12_227_t0004.png 이미지

Table 5. Part-worth of each price level by city

CPTSCQ_2018_v23n12_227_t0005.png 이미지

Table 6. Gap analysis by city

CPTSCQ_2018_v23n12_227_t0006.png 이미지

Table 7. Difference of part-worth among city

CPTSCQ_2018_v23n12_227_t0007.png 이미지

Table 8. Difference of gap among city

CPTSCQ_2018_v23n12_227_t0008.png 이미지

References

  1. China Information and Communication Research Institute, 2017, http://www.caict.ac.cn/
  2. LG Economic Research Institute, 2018, http://www.lgeri.com/
  3. China Economic Net, 2015, http://www.ce.cn/
  4. Korea Trade-Investment Promotion Agency, 2016, http://www.kotra.or.kr/
  5. Kshop 2018 Conference, https://www.kshop.org:12080/2018/
  6. C. Park, Y.R. Kang, "Comparison of Market Segmentation of Mobile Phone by Usage Motivation between Korea and China," Journal of Business and Economics, Vol. 35, No. 1, pp. 81-101, 2018.
  7. J.H. Lee, "Comparative Analysis of Consumer Satisfaction and Loyalty of Chinese and Korean Smartphones," The e-business studies, Vol. 19, No. 4, pp. 67-81, 2018. https://doi.org/10.20462/TeBS.2018.8.19.4.67
  8. W.H. Noh, S.J. Yeon, D. Wu, and Y.W. Song, "The Influence of Brand Origin, Ad Model Nationality and Advertising Appeal on Advertising Effectiveness: Advertisement of Mobile Phones in China," Vol. 38, No. 2, pp. 25-50, 2015.
  9. Dai, H., Midha, V., Koong, K.S., "Consequents of functional and technical quality: evidence from electronic and mobile service industry in China," International Journal of Mobil Communications, Vo. 12, No. 5, pp. 477-495, 2014. https://doi.org/10.1504/IJMC.2014.064594
  10. M. Wang, D.I. Lee, and S.J. Park, "A comparative study on attitude formation process toward stores and salesmen in mobile phone distribution -Focused on Korean Market and Chinese-," Korea research academy of distribution information review, Vol. 16, No. 1, pp. 5-19, 2013.
  11. J. Jing, S. Yi, J.H. Lee, C. Park, “Lifestyle of Young Chinese Consumer and Their Consumption related to IT,” Journal of Business and Economics, Vol. 37, No. 1, pp. 91-110, 2017.
  12. Gao, F., Rau, P., and Zhang, Y., “Perceived Mobile Information Security and Adoption of Mobile Payment Services in China,” International Journal of Mobile Human Computer Interaction, Vol. 9, No. 1, pp. 45-62, 2017. https://doi.org/10.4018/IJMHCI.2017010104
  13. Qu, Jia, and Jing Zhang, "Validating Mobile Designs with Agile Testing in China: Based on Baidu Map for Mobile," In International Conference of Design, User Experience, and Usability, pp. 491-498. 2016.
  14. Y.S. Kwak, J.W. Hong, and J.Y. Pak, “An Empirical Study on the Difference in Price Elasticity by Colors in the Chinese Mobile Phone Market,” Journal of Platform Technology, Vol. 6, No. 2, pp. 10-18, 2018.
  15. National Bureau of Statistics of China, 2018, www.stats.gov.cn
  16. Wikipedia, https://en.wikipedia.org/wiki/Administrative_divisions_of_China
  17. Simon, H., Price Managment, Ny: Free Press, 1989.
  18. P.H. Yu, Pricing Strategy, Pakyoungsa, Seoul, 1991.
  19. Simon, H., Confessions of the Pricing Man: How Price Affects Everything, Springer, 2015.