Luxury Service in China

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

The study looks to conduct an analysis on the current conditions of the luxury market in China and how it has affected the consumption values and beliefs of consumers in the country. For this purpose a qualitative study was conducted by using questionnaire as the primary instrument for data collection. Other sources for data gathered for the study include online libraries and journals. The Chinese consumers are now becoming aware of the number of brands that are available in their country. These international luxury brands have given the Confucius culture or face and Gaunxi concept more relevance as buyers look to emulate their peers in order to fit in the society. Chinese consumers also pass judgment about an individual based on the brands that they choose and consumers. There is also a shift in preferences for luxury services with consumers looking to experience services that would set them apart from the masses.

TABLE OF CONTENTS

ACKNOWLEDGEMENTI

DECLARATIONII

ABSTRACTIII

CHAPTER 1: INTRODUCTION1

Background of the Study1

Problem Statement3

Research Questions4

CHAPTER 2: LITERATURE REVIEW6

Chinese Luxury Industry6

Customer Care and After-Sales Service, the Key12

The Wealth of the Rich Will Have Tripled In 201512

Chinese Ministry's Efforts20

Expansion into Rural Areas21

Characteristics of Luxury Consumers in China23

Luxury Products and Services in China31

Consumption Values in China32

Functional values34

Emotional values35

Social values36

Slowing Market for Luxury Services in China39

CHAPTER 3: METHODOLGY41

The Research Process41

Research Design42

Data Collection and Analysis42

Questionnaire Design43

Primary Data43

Secondary Data44

Questionnaire Responses45

Selection of Participants45

Literature Search45

Confidentiality46

Validity and Reliability of Data46

External Validity48

Internal Validity49

Reliability49

Definition of Qualitative Research50

Qualitative Research50

Assumptions of Qualitative Research51

Research Philosophy52

Literature Search52

Ethical Considerations53

Research Design54

Research Method54

Data Analysis Method55

Population55

Sampling56

Research Questions56

Assumptions57

CHAPTER 4: RESULTS AND ANALYSIS59

Data Analysis Process59

Chinese Customer Perceived Values and Product Quality on Global Brands60

Responses to Questions60

CHAPTER 5: CONCLUSION65

Implications for Future Research and Recommendations66

REFERENCES70

CHAPTER 1: INTRODUCTION

Background of the Study

The luxury service industry of China is still in its infancy, and its real market potential is not yet known. For Western labels, it is important to gain a better understanding of how special the concept of "luxury" is in China and of what it takes to build lasting brand loyalty and offer continuous customer attention there. China has seen rapid economic growth over the last 25 years. The country's phenomenal growth has reduced the gap that once existed between the rich and the poor. There are not many nations that can tell the story of reducing the number of people that lived in poverty like China. With the influx of wealth, the country has seen a sharp increase in the amount of money consumer spend in the economy. This in turn has led to a change in consumer consumption patterns, behaviors and values depending on the ...