2. Literature Review
3.1 Methodology
3.1.1 Measures
The independent variable familiarity, like the other variables, will ultimately be measured
The independent variable familiarity, like the other variables, will ultimately be measured through the 7-point Likert scale comprised of Mishra et al.’s (1993) product expertise measure plus an item from Srinivasan and Ratchford’s (1991) knowledge scale. The variable will also integrate, but not copy, measurement constructs from Zhang and Ghorbani (2004) measuring familiarity but adjusted for the Chinese context, as product features will be examined in detail.
The dependent variable Purchase intention will be measured with a seven-point Likert scale ranging from “Extremely agree” (1) to “Extremely disagree” (7). Hayes & Carr (2015) used example items like, “How likely would you be to purchase this product?” and, “How likely you would you consider the use of this product?”. This will be used but adjusted for the Chinese context. This entails that the survey questions will be directly correlated to the variables as to avoid metaphors or context mistranslations. An example will look as such regarding familiarity: “Familiarity with a coffee product is most important to me when I purchase PL coffee”.
Purchase intention. The dependent variable Purchase intention will be measured with a seven-point Likert scale ranging from “Extremely agree” (1) to “Extremely disagree” (7). Hayes
& Carr (2015) used example items like, “How likely would you be to purchase this product?”
and, “How likely you would you consider the use of this product?”. This will be used but slightly adjusted for the Chinese context. This entails that the survey questions will be directly
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correlated to the variables as to avoid metaphors or context mistranslations. An example will look as such regarding familiarity: “Familiarity with a coffee product is most important to me when I purchase PL coffee”.
Example: Buencafé provides the best quality and services compared to the other competing brands.
Strongly disagree
Disagree Somewhat disagree
Neutral Somewhat agree
Agree Strongly Agree
Example: Buencafé offers, product with excellent features.
Strongly disagree
Disagree Somewhat disagree
Neutral Somewhat agree
Agree Strongly Agree
The variable risk will also be tested using the 7-point Likert scale, 1 being strongly agree and 7 strongly disagree and follows the approach by Robert N. Stone (1992), where the different types of risk will be captured with construct measurements to ensure Cronbach alpha reliability. The idea is to measure the views towards purchasing coffee in terms of the different types of perceived risk. Bear in mind that coffee might resemble different levels of risk, as compared to the study of Stone (1992).
Example survey: Coffee is a product, that I purchase with the intention of saving money.
Example survey: Coffee is a product, that I purchase with the intention of saving moneymoney.
• Example psychological risk: The thought of purchasing Private Label coffee online makes me feel psychologically uncomfortable.
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Commented [TFG25]: Ik weet dat je figures en tabellen enzo moet labelen (Fig. 1, Fig 4.2, etc).. Moet dat ook bij Examples? Dacht het wel
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Example survey: I worry that the PL Coffee loses quality over a long period of time after purchasing Example survey: I worry that the PL Coffee loses quality over a long period of time after purchasing
Example survey: I worry that the product PL Coffee loses quality over a long period of time after purchasing coffee
The variable price is different, as price can be defined as “what is given up or sacrificed to obtain a product”. When price is measured, it is subjectively perceived in the consumer’s mind, due to different understandings of the term. The survey questions will therefore be as straightforward as possible to the scenario, and slightly adjusted for the Chinese context.
Example: The price of Starbucks is extremely high.
Strongly disagree
Disagree Somewhat disagree
Neutral Somewhat agree
Agree Strongly Agree
Example: Price deals that are emphasized for Starbucks seem reasonable.
Strongly disagree
Disagree Somewhat disagree
Neutral Somewhat agree
Agree Strongly Agree
The variable quality will be measured via the constructs proposed by Dodds,
Monroe and Grewal (1991) Yoo et al. (2000) Pappu et al. (2005). Perceived quality is often defined as the consumer’s perception and opinion about the overall quality or excellence of a product or service concerning to substitutes (Steenkamp, 1989). Aaker (1991) mentioned how perceived quality cannot empirically be decided due to its summary concept (Aaker, 1991). This research will acknowledge perceived quality as, the overall "goodness" about the principal brand, and will be adjusted for the Chinese context given the language
barrier.
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Commented [MFG26]: Construct voorbeelden in Appendix
35 3.3 Novelty
The novelty of this study is that there is a lack of consumer response directly from Chinese target consumers in this case, millennials. The results of this study will also enable foreign private label producers to better understand what it takes to target Chinese millennials and which factors determine a successful product strategy. Finally, it will guide European business managers to bring their private label Coffee products to China using e-commerce.
3.4 Feasibility
The scope of the research is wide, and it may be exceedingly difficult to develop a Chinese survey and gaining enough respondents (assuming the language barrier is not affected by the translation). The translation will be done by two Chinese students from the Chinese university Ningbo, who have agreed to then share the survey amongst their acquaintances and friends that meet the millennial age requirement as mentioned before, between 1981 and 1996 (PBS, CBS, Federal Reserve, 2019).
The research objective can be attained using the results and data. The risk that this project currently faces however, is the outbreak of Covid-19. It is important to control the impact Corona has on consumer good purchasing in China for internal validity. Another issue that can occur is that the survey might not gain enough attention and lead to a possible low survey response and therefore inadequate recommendation to European managers.
To determine reliability of test, Cronbach's Alpha will be used. Cronbach’s alpha is used to calculate internal consistency, using tools which measure different properties.
3.5 Data collection
The data will be collected by formulating the vignette study among the most relevant Chinese consumer segment. The online survey collects data efficiently at a relatively low cost in a short period of time (Robson, 2011). Online surveys can reach out to participants otherwise too hard to reach which is especially the case for Chinese millennials, reducing the investigation efforts and time (Wright, 2005). In this case, the channel Qualtrics will be used.
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The survey, using a Likert scale 1-7, will reveal which variables have statistical influence on purchasing PL products and to see whether familiarity is mediated by price, quality and risk.
To protect the rights of our research participants, this thesis uses two principles mentioned by Trochim (2006). The two standards the research will abide by are the principles of anonymity and confidentiality. By guaranteeing that the information obtained is confidential the data collected has a higher probability of obtaining valid data and results and avoid bias.
3.6 Reporting method
After identifying the impact of the variables upon millennial consumers in China, the output of the accumulated survey data will be discussed and transformed into a recommendation.
This recommendation will include steps for European retailers that own private labels on how to enter the Chinese market and discussion for future research implications and/or managerial relevance.