Chinese Consumers and the Second Time Car Purchase-A study of Chinese consumers’ behaviour in the automotive sector

Abstract

The Chinese economy grew rapidly over the past decades with rising incomes and improved living standard this has stimulated consumption in general and lead to an unprecedented boom in the Chinese automotive sector. In 2009 China surpassed the sales and production volume of USA, overtaking USA as the world’s leading automotive nation. China's formidable consumption power in the automotive sector rests on two pillars: (i) the consumers’ first car purchase and (ii) the consumers’ decision to buy another car or replacing the old car with a new. The second time car purchase in China and the factors influencing such a purchase decision is an unexplored research area in the field of Chinese consumer behavior. Which factors may affect the actual and potential second time purchase of a car? In what way do these factors influence Chinese consumers? The answers to these questions add to the literature of consumer behavior and segmentation theory. Furthermore, the study constitutes a valuable source of information to auto manufacturers operating in Mainland China, as well as providing practical experience on how to implement research through questionnaires in Mainland China.