A Comparison of Car Buying Behavior Betweenamerican and Chinese People Living in Northamerica: an Exploratory Study

The objective of this paper is to use the Wheel of Consumer Analysis to identify, cultural differences between American and Chinese people in North America regarding their car buying behavior. The study is based on the consumer behavior model proposed by J. Paul Peter and Jerry C. Olson (1994), which helps to explain the reasons for buyer behavior differences between American and Chinese people living in North America. INTRODUCTION The objective of this paper is to use the Wheel of Consumer Analysis to identify cultural differences between American and Chinese people in North America regarding their car buying behavior. The study is based on the consumer behavior model proposed by J. Paul Peter and Jerry C. Olson (1994) which helps to explain the reasons for buyer behavior differences between American and Chinese people living in North America. For example, the Taiwanese frequently purchase a house using cash, as do many Chinese living in North America. In addition, many Americans and Chinese prefer Japanese cars to American cars because of the quality. In order to better understand the differences between Chinese and American car-buying behavior, we conducted a study of selected U.S. and Chinese auto buyers. It is commonly accepted that occupation, age, and gender influence car-buying attitudes. This study uses the Wheel of Consumer Analysis Model to explain how cultural differences between U.S. and Chinese consumers affect car buying decisions. The Wheel of Consumer Analysis consists of three elements (a) environment, (b) behavior, and (c) affect/cognition, and is a useful model for explaining buyer behavior in general, and car buying behavior in particular. These three factors interact and influence each other and no one factor can be isolated. Finally, this model of consumer behavior can be useful in examining car-buying behavior differences and similarities between these two groups. LITERATURE REVIEW AND CONCEPTUAL MODEL-WHEEL OF CONSUMER ANALYSIS A consumer behavior model, Wheel of Consumer Analysis, was created by J. Paul Peter and Jerry C. Olson (1994) as a basis for explaining car buying behavior. According to the American Marketing Association, consumer behavior is defined as the dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives. (Olson & Peter, 1994). Marketers can analyze am consumer behavior situation according to the three elements using the Wheel of Consumer Analysis the environment, behavior, and affect/cognition (see Figure 1). However, because these three factors interact and influence each other, no one factor can be isolated from the other. To understand consumer behavior, marketers must pay close attention to all three elements, each of which is discussed below. Figure 1 Wheel of Consumer Analysis Affect and Cognition: Both affect and cognition are important for understanding consumer behavior, because affect and cognition refer to the internal and psychological reactions that consumers may have in response to objects in the external environment i.e., marketing stimuli, or to their own behavior. In other words, affect concerns feelings, while cognition involves thinking. Affective feelings can be positive and favorable, or negative and unfavorable. Whether positive or negative, they will affect the decisions of consumers. The Chinese consumer presents a good example of this. When Chinese consumers go to car dealers to purchase a car, their emphasis is on the services, including the attitude of sales people and option packages. An important factor for the Chinese is that dealers are sincere when conducting business rather than focusing solely on the price. Many international companies have experience when dealing with the Chinese and they understand that the Chinese like to negotiate, especially on price and service.