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Chinese Mobile Brands and Cross-Cultural Consumer Behavior

CASE FLYER, CONSUMER BEHAVIOR
ET Cases, 6 pages
AUTHOR(S) : Vijay Kumar Tangirala and Dr. Nagendra V. Chowdary

Case Preview

Chinese Mobile Brands and Cross-Cultural Consumer Behavior

 

Expected Learning Outcomes

• Appreciate how the perceptions/the cultural and political contexts play a predominant role in viewing ‘foreign’ products/services
• Developing an overview of the factors responsible for a number of Chinese brands (government-owned companies as well as private companies) growing into global brands
• Understanding how foreign brands devise their communication and product strategies in a foreign country and how a latent consumer need can be translated into appropriate business value proposition

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I. Country of Origin, Country of Design and Country of Manufacture

1. What do the terms Country of Origin, Country of Design and Country of Manufacture mean to you? What is their significance from the point of view of Consumer Behavior?
2. Whenever you buy a foreign product, which is the most important factor amongst the following:
(a) Product (b) Price (c) Place (d) Promotion (e) Packaging (f ) Brand
(g) Country of Origin (h) Country of Design (i) Country of Manufacture
3. When you have to choose a product from the following countries, which one would you choose and why?
(a) German automobiles (b) Korean automobiles (c) Finnish automobiles
(d) Japanese electronics (e) Irish electronics (f ) Chinese watches
4. What does “Made In” signify to you?
5. ..................

Teaching Note Preview

Chinese Mobile Brands and Cross-Cultural Consumer Behavior

 

Synopsis

This case flyer offers an overview of the concepts of Country of Origin, Country of Design, Country of Manufacture and country brand strength. It further connects these concepts to China and demonstrates how the country has gained global recognition as a Country of Origin for several products, brands and also as a manufacturing epicenter. The case flyer further throws light on how certain Chinese smartphone brands have overcome the earlier negative perception associated with products emanating from China and have gained a strong foothold in the potentially explosive Indian smartphone market.

Prerequisite Conceptual Understanding (PCU)/ Before the Classroom Discussion

This case flyer presupposes an understanding of the Country of Origin and of country brand. The participants were asked to read the following chapter and articles to help them better connect the concepts:

  • • Leon G. Schiffman, et al., “Cross-Cultural Consumer Behavior: An International Perspective”, Consumer Behavior, 10th Edition, Pearson Education Inc., 2010 – To understand how Country of Origin affects other related concepts and relate the same to understanding cross-cultural consumer behavior
  • • “Country Brand Index 2014-15”, http://www.futurebrand.com/cbi/2014 – To understand China’s Country Brand Equity
  • • Michael E. Porter, “The Competitive Advantage of Nations”, Harvard Business Review, March–April 1990 – To understand the Diamond Model and how countries derive competitive advantage

 

Case Positioning and Setting

This case flyer can be used for the following:

  • • In MBA Program: This case flyer can be used for Consumer Behavior course to understand the concepts related to Country of Origin and how perceptions of a country influence the demand for brands emanating from it.
  • • In MDPs/EDPs: This case flyer can also be used in Management and Executive Development programs to demonstrate how brands have to undergo acculturation to gain acceptance in a foreign country.

 

Case Flyer Analysis and Classroom Discussion

Preamble to this Case Flyer Analysis

This case flyer is meant to introduce the participants/students to the idea/concept/notion of Country of Origin and how consumers from one country perceive the products/services from another country. Although this case flyer highlights how Chinese mobile brands have made inroads into the Indian market with their ‘aspirational’ value proposition, the participants should be directed towards broad basing their horizons on Country of Origin/Country of Design/Country of Manufacture taking a cue from this case flyer. Accordingly, the classroom orchestration of this case flyer can be conducted along the lines detailed in Exhibit (TN)-I.................

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Product code: CB-4-0016, CB-4-0016A

Abstract


This case flyer, based on the accompanying article published in The Economic Times1, is meant to introduce the participants/students to the concept of Cross-Cultural Consumer Behavior. With the underlying concepts of Country of Origin, Country of Design, Country of Manufacture and acculturation, this case flyer presents how some of the Chinese global mobile brands (Xiaomi, Gionee, OPPO Mobile and Lenovo) have carved a niche for themselves in the Indian market with their focused and differentiated strategies. Most importantly, how could these late entrants prompt Indian consumers' acculturation giving them heads-up in the market? Since all these Chinese mobile brands carry the baggage of "Made in China-Sold in India", how did they overcome the incumbency threat in the Indian market?



Pedagogical Objectives

  • To have an understanding of the broad contours of Country of Origin, Country of Design and Country of Manufacture connotations and discuss their relevance for Consumer Behavior
  • To examine China's Country Brand Index over a period of time and discuss the factors that have contributed to China transforming from being a mere copier to being a catalyst, at least in a few product categories
  • To discuss how some of the Chinese mobile brands (Xiaomi, OPPO Mobile, Gionee and Lenovo) have overcome the negative perceptions in India about the brands emanating from China with their unique value propositions and sustained branding initiatives

Case Positioning and Setting
This case flyer can be used for the following:

  • In MBA Program: This case flyer can be used for Consumer Behavior course to understand the concepts related to country of origin and how perceptions of a country influence the demand for brands emanating from it.
  • In MDPs/EDPs: This case flyer can also be used in Management and Executive Development programs to demonstrate how brands have to undergo acculturation to gain acceptance in a foreign country.


1 Mukta Lad,'The Great Call of China', The Economic Times, October 8th 2014



This Case Pack Includes:
 - Abstract
- Case Flyer
- Teaching Plan (**ONLY for Academicians)
$2.74
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