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A social institutional approach to identifying generation cohorts in China with a comparison with American consumers

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Abstract

Identifying distinctive target segments is a fundamental challenge faced by international marketers. This paper describes an approach to understanding consumer market structures in an important international market, China, and to segmenting Chinese consumers by integrating insights from generational cohort and social institutional theories. We conduct two empirical studies to verify how China's recent momentous ideological events could give rise to and affect the life experiences of different generation cohorts in the country. The results of Study 1 support the conceptual framework and establish three distinct cohorts in China: Red Guards, Modern Realists, and Global Materialists. Study 2 builds on the findings of Study 1: it links cohort differences to differences in consumer values (materialism) and choice behaviors (foreign vs local brands), and then compares them with parallel consumers in the United States. This paper outlines and tests an approach to segmentation that can help international firms identify distinct segments in and design effective marketing strategies for China.

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Notes

  1. The years of birth for baby boomers are based on Russell's (1999) categorization.

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Acknowledgements

The authors thank the Departmental Editor and three reviewers for their constructive comments. The financial assistance provided by the Research Grant Council (RGC) competitive earmarked research grant is acknowledged.

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Authors and Affiliations

  1. School of Business, University of Hong Kong, Hong Kong

    Kineta H Hung & Chi Kin (Bennett) Yim

  2. Hong Kong Polytechnic University, Hong Kong

    Flora Fang Gu

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  1. Kineta H Hung
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  2. Flora Fang Gu
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  3. Chi Kin (Bennett) Yim
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Correspondence to Kineta H Hung.

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Accepted by David K Tse, Departmental Editor, 3 October 2006. This paper has been with the authors for two revisions.

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Hung, K., Gu, F. & Yim, C. A social institutional approach to identifying generation cohorts in China with a comparison with American consumers. J Int Bus Stud 38, 836–853 (2007). https://doi.org/10.1057/palgrave.jibs.8400288

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  • DOI: https://doi.org/10.1057/palgrave.jibs.8400288

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