Chinese Female Customers Attitudes by Shopping Online - Research Paper Example

Chinese Female Customers’ Attitudes by Shopping Online Abstract This research tries to find the attitudes and behaviors of Chinese female customers regarding shopping online. The first part comprises of literature review that aims to discuss global ecommerce, online shopping trend in China and the successful Chinese ecommerce website Taobao. The purpose is to retrieve information from various sources to establish a better understanding of ecommerce and how they contribute to the thesis of the paper. The second part comprises of methodology that uses 30 questionnaire to be filled by 30 Chinese females and five other females will be randomly picked for short interviews. The information retrieved from these participants will be analyzed and neglected in the form of results. Based on these results there are second recommendations that are provided. These recommendations are solely based on the information retrieved from the participants. It is not easy to recommend suggestions to a company which is already doing great in the Chinese market. However there are certain areas they can still improve and. This will help them sustain their huge market share and keep the competition away. Towards the very end of the paper conclusion summarizes the whole debate including the literature review and the information retrieved from the methodology. Introduction Internet is rapidly becoming commercialized. It is swamped with online shopping and “shopping malls”. Customers can browse on their favorite online store viewing products (like 360buy) and food items (like Taobao). People describe it as “impossible is our thinking, but not what we can buy.” Electronic-commerce began in 1984 in North America when it was introduced as an application of Internet technology. The rapid growth of e-commerce proved immensely successful in the business world. China was a little late in entering the e-commerce business but after its arrival it has shown tremendous growth potential in all of Internet related industries. Many people consider the term commerce as something that describes transactions between business partners. To many this concept is very narrow. They preferred using the term e-business. E-business is a broader definition of e-commerce as it includes the service industry along with the retail business. It also represents collaboration with business partners and electronic transactions in an organization. Electronic business is a relatively new field on the Internet but since its inception the growth has been remarkable. Experts believe that the international e-commerce will be leading the economy in the coming years. The global economy has changed after the introduction of digital technology. Many business terms have been redefined to better suit the needs of the economy. For instance value creation now does not rely on physical goods anymore. It focuses on services, intelligence, and information as the chief sources for creating value for the customers. The researchers have identified certain stages or attributes in e-commerce. Exchanging digital information between parties is the primary stage. E-commerce in China has grown from there developmental phase in the last 10 years. There is evidence suggesting that many Chinese businesses get confused about proceeding to the next step in e-commerce. The consumer behavior and changes in shopping trends is another reason for this confusion. This report analyzes literature on Chinese e-commerce and tries to find out how this trend has changed in the past decade. Moreover it focuses on certain Chinese businesses that have excelled in e-commerce strategies. Taobao is one of them. The methodology for this paper is to disseminate a questionnaire among female Chinese Internet shoppers. The purpose is to get information including why they prefer shopping online and not physically going to the store. And what makes them comfortable about one shopping website etc. Research suggests that there are more female online shoppers in China than the male counterparts. The purpose of this research therefore focuses on the female population. The objective of this paper can be summarized in a few research questions; 1) What is the current status of Chinese e-commerce for female customers? 2) What are the main problems these shoppers face? 3) What are the proposed solutions for those problems? 4) And what the future holds for female Chinese online shoppers? The thesis of this report identifies a theoretical framework of business, pointing out features of Chinese online shopping. By retrieving knowledge from the literature review about marketing the report analyzes the current situation in Chinese Internet marketing, and finding out the problems that female Chinese shoppers face. The case of Taobao will be referred to frequently because it is a highly successful online business in China in female products niche. It has employed highly effective business strategies to become the leader in its niche. Research Method The thesis of this research is chiefly based on qualitative methods. However, quantitative research methods are also used to better establish the grounds for the thesis. Using the questionnaire and interviews help draw the discussion towards a concrete conclusion. The data for completing this report is mainly collected from primary sources like official company websites, books, and journals. Limitations As with any other study this report also has its limitations. It simply cannot encompass all models of Chinese e-commerce. It focuses on customer to customer (C2C) model. There is also a limit to the recommendations because no model can be universal. What worked for Taobao cannot be applicable to every e-commerce business in China. Literature Review 1. E-commerce In the simplest words e-commerce means “Technology- mediated exchange between parties (individuals or organizations) as well as the electronically based intra- or inter-organizational activities that facilitate such exchanges.” (Rayport & Jaworski, 2003, p. 4). E-commerce is attracting more attention every day and becoming a focus of any business engaged in production and operations. There are specific conditions of every country that depend on the forecast of world economic development. Governments are also paying more attention to developing e-commerce in their regions. In fact e-commerce is the new driving force for stable and futuristic economic growth. The main benefits of e-commerce include; higher market reach and sales probability, lower cost of sales, faster multiple transactions, easier information access for customers increased consumer convenience and choice (Froyk, 2012). Powered by eBay’s success, online consumer-to-consumer (C2C) auction, as a major e-commerce form, has quickly diffused to all over the world in the last few years. (Lin and Li, 2005). This type of business model rules out the trade company. The customers buy and sell directly from other customers. In a business-to-business contact one of the primary functions of e-commerce is electronic data interchange or EDI systems (Warf, 2012). The growing demand of the telephone, the growing number of internet users, and immense competition in the telecommunications industry, are all rudiments for e-commerce development. However, the focus of e-commerce is different in China than it is in Europe-America because of the dissimilarity in traditional business models, orthodox consumer behaviors, and consumer prospects (Wong et al., 2004). China is a special case as it has shown an upsurge in e-commerce trading. China Internet Network Information Center (CNNIC) reported the number of Internet users in China crossed 123 million, the second highest in the world in 2006. People shopping on the Internet has also crossed 30 million in China where the number of people paying to buy something is gradually increasing. Researchers believe that this rising trend in the number of Internet users and shopping activity will make Internet shopping malls into a new business dimension for competition. eBay, Yabuy and Coolbid are among the leaders of this business battleground. But history suggest that as Internet business grew many companies could not keep up with rapidly changing trends. The number of Internet users around the world has been gradually growing. This has given the incentive and the opportunities for global and regional e-commerce. However, with different characteristics of the local environment, both the infrastructural and socio-economic have created a noteworthy variation in reception and growth of e-commerce in different countries (Efendioglu and Yip, 2004). Moreover, the emergence of e-commerce makes the retention of existing customers even more difficult (Jahromi et al., 2010). With competition just ‘‘one click away’’ and unprecedented customer empowerment, the churn rate of customers is likely to amplify. To ensure the success of e-commerce, it is important to manage the customer churn rate (Peng et al., 2013). To prevent customers from clicking away from a website different marketing offers and techniques are used. The emergence of e-commerce lowered barriers to entry in selling many goods. For instance home-base proprietors are now able to use Internet to sell their products. Small businessman use online auction sites like eBay. Many travel agencies have to close their businesses because their business models was not profitable anymore, people could book tickets and travel packages online without paying any commissions to agents (Mohapatra, 2012). 2. Consumer behavior in China The growth of China is becoming evident every day. The people spend more time shopping online instead of going to a real store. China Southern Airlines is the leader of online sales in China. They built an e-commerce platform on March 28, 2000 (Huo & Hong, 2013). They were sending e-tickets 14 years ago. The 3rd quarter of 2009, the number of Internet users in China reached 359 million. Chinese ‘netizens’ who participate in the B to C e-business are highly educated. There among, female account for 51% and male account for 49% (Mengti, 2010). Upcoming ecommerce businesses especially consider this trend while making their business strategies. In 2002, China became the biggest mobile phone market and the second largest internet market globally (Wong et al. 2004). Global management consulting firm McKinsey & Co said China's online sale forecasts exceed $420 billion annually by 2020. This will likely make it the world's largest online retail market matching the existing size of the Japanese, French, British, German and the US markets combined. The most concentrated e-commerce region in China is the Guangdong province. It accounts for over 20% activity in commerce. Well-developed cities like Beijing and Shanghai are on its trail. Chinese citizens are concerned about the online transaction safety. The security of payment as well as the business reputation are among their primary concerns for establishing e-commerce in China. In 2008 China commercial interests were only $7 billion when the Internet users were around 200 million, by 2011 these users reached half 1 billion and e-commerce revenues were reaching $80 billion meaning a growth of 87% every year (Dodson, 2012). The online shopping user base reached 80 million by the end of 2008 which amounts to 45% of the Chinese Internet users. But still the primary concern of Chinese citizens remains online shopping transactions. They use a credit card or electronic bank transfers to purchase things online. For using an online payment service the seller and the buyer generally create accounts allowing them to make payments. The buyers give their information like bank accounts or card numbers while sellers give information about the accounts where the payments need to be deposited. In some cases however, they don't need to create accounts because the online payment service receives funds for them. For completing a transaction the buyers inform the online payment service to release the funds to the seller. The 2009 annual report China Third-Party Payment Market mentions the actions to which institutions as well as individuals can use communication network based equipment for indirectly issuing transaction. The third-party electronic payment systems are on the rise. There was a slowdown observed during 2008 but China continued to show accelerated growth. During that year alone the transactions exceeding 281.3 billion Yuan. That was an increase of 170.8% from last year. When there were 107.3 million registered third-party electronic users were using system. The Chinese business-to-business market accounts for 90% of Chinese e-commerce market (Tong, 2004). In 2004 Chinese business-to-business market turnover reach 120.2%. This upsurge in the growth of market is very optimistic. There are different modes of online shopping but they can be categorized into three sections (Kuah, 2008). The first one includes the shops that are only a reproduction of traditional shops and supermarkets, just their version on the Internet. A shop online usually takes the form of a website. It holds pictures and simple descriptions of some commodities. Customers log onto the website and scroll through the digital commodities. When they find the one they like to buy they place an order and it is delivered to an appointed place. The payment is made online using a credit card or an online banking service. A cash on delivery system is also available. This online shopping has reached almost all corners of the world however the main buying process is very similar to the physical one. The second category can be considered a collective purchase. In this form of shopping dispersed potential customers that plan of buying a certain commodity engage in collective shopping over the Internet. This way they get the best deals. After the introduction of the bulletin board system work through an online forum the customers in an area exchange information with each other about the product or service. Then they decide a place to buy it. Once they confirm a date and a place they reach the decided shops for bargaining and then ask for discounts or for wholesale prices. Their main argument is that bulk purchases deserve discounts. When they get the desired price the shopping group disperses. The third mode of shopping is called communal purchase. It takes place in a pre-existing virtual community or a forum. This type of shopping is based on long-term interaction with the members of the groups. Onlylady.com defines daigou as a type of shopping where one person asks the other to by a certain commodity for him or her because the original buyer cannot find the product in his or her locality. The same shopping arrangement can be made if the buyer cannot find the desired price for the product in his or her area. This type of shopping mode is on the rise in China. For instance the beauty products from some brands are sold only in Macau, Hong Kong or certain big cities. Therefore it gets difficult for women in the inland provinces to buy those products. Hence it is very easy for the women of developing areas to get information on such products by exchanging information through virtual communities. By establishing various women's websites gives Chinese women the freedom to exchange information on makeup products. It stimulates the demand for good quality products at reasonable prices. In hinterland the beauty products are usually sold at very high prices therefore, some women prefer paying 10% of the commodities value and additional mailing cost to join these communities and shop through other people. Extensive information about skin care and makeup products to online forums stimulates daigou. When China was under socialist ideology Chinese women did not care much about their appearance. Therefore makeup and skincare products were never in high demand in China (Kuah, 2010). After the reforms the makeup and skincare are now considered items of bourgeois lifestyle. Economic development and modernization of mainland China brought in makeup as a fashion item for Chinese women. With the rise of professional working women this demand has soared considerably. The rise of Internet offers the women of big cities and coastal areas a great opportunity to learn from each other about makeup products. So when the exchange of information happens it is obviously a women sharing her knowledge about makeup products with another woman who has relatively little information about it. Hence the one with the knowledge can recommend certain products to the other. Therefore, the demand of certain makeup products is generated through female online communities (Kuah, 2010). In those communities the women that have certain knowledge consider it their obligation to tell their ‘sisters’ and guide them about better products at reasonable prices. The majority of participants in daigou style shopping are middle-class office women with stable income and a practical demand for makeup (Kuah, 2010). The middle-class women that fail accessing the Internet and who cannot afford imported beauty products are usually excluded from this buying activity. For some people this form of shopping where virtual community takes care of the buyer is more attractive than physical shopping. The reasons are obvious; everyone cannot recognize a fake product. People who are already using them have experience about their quality and hence they can guarantee the quality. Secondly, buyers communicating with the person of knowledge consider that they are being taken care of. This is a huge boost that makes the buyer comfortable, comfort enough to take out the money and buy the product. Daigou is also one of the fastest and convenient ways for buyers in certain Chinese regions. Onlylady.com establishes all daigou activities in its fulishe forum (Kuah, 2010). It has been over 15 years since China had its first online seller of Chinese language books, music and movies. Peggy Yu, Yu Yu is the cofounder and co-president of Dangdang.com. It was 1998 when this company came back to China after 11 years in the United States. It is considered the Amazon.com of China (Kariv, 2012). With the increase in online shopping trends companies like CISCO, Huawei and ZTE have also established their online shopping arrangements (Chang, 2013). When ecommerce started in China, the US was way ahead of it many ways. The total sales revenue of one of the biggest 150 departmental stores amounted to $3billion per year when Walmart alone was generating a revenue of $120 billion (Hu, 2004). 3. TAOBAO Chinese first batch of e-business website was established in 1997. After that, from 1997 to 1999 Alibaba, Taobao, Dangdang and other well-known e-commerce sites have arisen. Taobao is among those companies that stood the test of time and gradually improved their e-commerce business. Online transaction volumes of Taobao sellers demonstrate many stochastic properties similar to those on eBay with some distinguishing properties like faster growth coupled with lower concentration trend (Li, Li & Lin, 2008). By enriching its contents and services, Taobao has made itself a well-known Ecommerce website and the leader moving ahead of eBay in a short year’s time (Lixia & Xun, 2009). The most important thing that puts Tao Bao at the top of E-commerce market is its effective business and operations strategies. Capturing the market by ‘no fees’. Strengthening the comprehensive cooperation with banks, building the shopping platform by associating with strong enterprises, establishing a secure trading platform and service strategies. They launched the corresponding tool ‘Taobao Wangwang’ and ‘Alipay’ as a communication tool and a particular secure payment service focusing on online transaction. Taobao website was established on May 2003 by one of the biggest trading companies online Alibaba (Lixia & Xun, 2009).. $100 million were invested into it which give it a great platform for the Chinese people who were looking for an alternative shopping experience. Alibaba already had immense experience in business-to-business capabilities. Therefore this experience was transferred directly to the newly established website. Taobao built a domestic Internet market and a transaction Internet community. It had great flexibility in its operations which provided business services to millions of members around the world. Taobao is now one of the largest e-commerce trading platform in China. It is the largest e-commerce shopping centre of Asia. It has set a trend for other businesses to follow. ALEXA in 2004 indicated Taobao reaching 18th-ranked in the world (Lixia & Xun, 2009).. Among customer to customer businesses in China Taobao holds the largest market share at 83.6% according to 2007 market data in China. The competition does not come in anywhere near; Paipai at 8.7% and Tom&Ebay at 7.7% (Lixia & Xun, 2009).. Strategies incorporated by Taobao are among the principles for the upcoming e-commerce businesses. It is obvious to think that it must rely on Internet economy for its rapid success however the most important thing in its success is the effective business strategy which includes operations and services. Operation strategy It captured the market with ‘no fee’, one of the best strategies to capture the audiences or customers. When something is offered for free to anyone there is high probability that it will be taken because nobody criticizes free samples. They announced that they will not charge any transaction fee for the first three years. This was essential because Taobao anticipated that they need customers first and cash flows later. Once they have established their benefits of online transactions they will establish a loyal customer base which will be willing to pay them. Cooperation with banks Taobao and Industrial and Commercial Bank of China signed an agreement in 2003 that would protect their newly born company against fraud and default. It was a reflection of integrity needed by the online community for monetary transactions. The mode of payment for online banking was established. It was a new mode of payment and settlement that put the banking intermediaries on Internet. With the introduction of this service the user’s confidence in the credibility of online transactions increased considerably. And not to forget, it laid the foundations for an e-commerce empire of Taobao. Building a strong shopping platform by associating with well-established enterprises Taobao announced in 2004 that they will form an alliance with the Chinese internal portal 21CN by launching an online shopping website. It was a two-pronged strategy, giving the customers both services; e-mail messaging and business activities. One year later in 2005 Sohu and Taobao announced a joint venture. The two corporations agreed to share their customer lists and work together to promote e-commerce in time. By sharing resources both websites raked in a lot of complimentary benefits. Establishing a secure business platform Taobao reached an agreement with the minister of public security in 2004 for building a National Citizen Identification Number Inquiry Service Centre. The purpose of this platform was to provide a secure system for Taobao. The way it worked was Taobao would submit the registration information to the Ministry of Public security. After central checking the results would be returned to the company. Anyone using false identity would be identified through this process. Another benefit of this cooperation was Taobao strengthened its legal standing by minimizing violations and infringements. This also benefited the authoritative departments because it strengthened theirs and Taobao's ability of cracking down any illegal violations. Before investing in the Chinese market Taobao had to investigate the market dynamics of Chinese society. They figured out two main features when Chinese buy things. First they see the goods and then try to cut the price. Plus they also have reservations about online payments. After considering and realizing these two problems Taobao launched tools that became their own features of the company; Taobao Wamgwang is a communication tool that provides a helpful platform for both the buyers and sellers. By using this service they can discuss the quality and price of commodities. It does not only hold meetings and communication between the parties, they can also participate in other activities. The greatest feature of this tool was timely communications between the parties. This aspect was highly sought after and attracted many customers. Alipay is secure payment system for online transactions. Taobao established it to an agreement with the Agricultural Bank of China and China Construction Bank (including other domestic monetary institutions). Through this system Taobao acts as the credit intermediary; a service that temporarily holds the money of the purchase before the buyer confirms receiving the goods. eBay China failed miserably and Taobao dominated the Chinese consumer customer to customer auction market. Taobao has transformed the habits and behaviours of the Chinese online shoppers. For instance a huge number of female office workers browse the website of Taobao during lunchtime. It is as if they are shopping in the malls even if it's window-shopping. They think it is fun knowing about different products and their prices. The cheap price attracts the majority of Chinese consumers. Shopaholics aside there are other people who are genuinely interested in the quality and the price for their convenience. Whenever they order something on Taobao they usually get the product within one or two days (So & Westland, 2010). The majority of items sold on the website are fixed-price rather than auctions. Another wonderful strategy by Taobao is to welcome other businesses to sell through their websites. For instance Lenovo is the largest Chinese computer maker and it sells its products through Taobao. Sony and Philips follow suit. Methodology The methodology uses first-hand information from Taobao customers. It is better to get input directly from the customers that shop on Taobao. A questionnaire with 30 questions was given to Chinese female participants who were Taobao's customers. They were asked for their informed consent before handing them their questionnaires. From ethical perspective their identities were not asked. They were told that any information or comment they give will be kept anonymous and is solely for the research purpose and for understanding establishment of e-commerce in China. Some questions are prepared with multiple choices while some are open ended questions in order to investigate online consumers’ attitude. The interviews are especially open ended because the purpose is to gain relevant information from the Chinese customers. To read the questionnaire please refer to appendix 1 and appendix 2 for the interviews given at the end of this report. Results After analysing the filled questionnaire it was observed that the results matched the literature review and reflected the general perception. The majority of people use Taobao and are very happy by using it. A few participants did show their concerns about payment safety but the majority was convinced that after a safety guarantee from the one of the most renowned Chinese financial institutions they are very comfortable about payment safety on Taobao. The results also show that Taobao is primarily used for female fashion wear and makeup items. Whenever participants need to buy products outside this niche they usually refer to other websites. Only five participants out of 30 confirmed that they contributes to online forums, sharing their thoughts about the products. Recommendations It is not easy to give recommendations to the booming Chinese Internet market that caters specifically for the female customers. From the literature review and the questionnaire and interviews submitted it is evident that the market shapes the business strategies. The Chinese consumers have different behaviours than in any other country. Online retailers like Taobao specifically create sales packages and discounts to make the people comfortable enough to buy things online. However there are certain recommendations that can enhance the user experience; a) There were certain participants that showed discomfort with online transactions. They still had some concerns about the safety of their money. Stricter money tree controls and prevention of fraud and scam incidents can help improve this situation. b) It is evident that people are more comfortable buying a product which a friend or someone the trust has a recommended. Taobao and other e-commerce websites operating in China can use this strategy for to their benefits by employee blog and community forums. When they enhance the user experience through a community they will be more comfortable in buying a recommended product. Conclusion E-commerce is on the rise everywhere. China is probably the most aggressively advancing country in e-commerce. Predictions say that it's online shopping revenues will be exceeding that of United States in a few years. It is encouraging to see that many websites are specially designed for the female consumers. As they are seeking great products even while they are working. They can just browse different products and engaging online communities to be better informed about the quality of the products and their prices. Taobao is probably a textbook example of how to set up a business on e-commerce platform in China. They have set the trend of online secure payments and offering a variety by catering to a huge population of Chinese female working women. With certain improvements on their website and transaction systems they can attract even more customers and enjoy the biggest market share that they already have in China. In the coming years this trend only increase and with the inclusion of more Internet users there will be even more revenue exchange online. References 1. Chang, S. J. 2013. Multinational firms in China: Entry strategies, competition and firm performance. Oxford University Press. 2. Dotson, B. 2012. China fast-forward: the technologies, green industries and innovations. John Wiley & Sons. 3. Efendioglu, A. M., and V. F. Yip. 2004. Chinese culture and e-commerce: an exploratory study. Interacting with Computers. Vol 16(1), p. 45–62. 4. Froyk, R. 2012. The ABCs of e-commerce and drop shipping success: Practical guide how to start and if successful online store and e-commerce business. Robert Froyk. 5. Hu, B. 2004. Breaking grounds: The journal of a top Chinese woman manager in retail. Homa & Sekey Books. 6. Huo, J. & Hong, Z. 2013. Service science in China. Springer. 7. Kariv, D. 2012. Female entrepreneurship and the new venture creation: An international overview. Lodon: Routledge. 8. Kuah, K. E. 2008. Chinese women and the cyberspace. Amsterdam University Press. 9. Li, D., J. Li, and Z. Lin. 2008. Online consumer-to-consumer market in China – A comparative study of Taobao and eBay. Electronic Commerce Research and Applications. Vol 7(1) p. 55–67. 10. Lin, Z., and J. Li, 2005. The online auction market in China: a comparative study between Taobao and eBay. Proceedings of the 7th international conference on Electronic Commerce. p. 123–129. Available http://dl.acm.org/citation.cfm?id=1089577 [Accessed 13 May, 2014] 11. Lixia, Y. & L. Xun. 2009. Analysis on the Successful Strategies of Taobao’s E-Commerce. Proceedings of the 2009 International Symposium on Web Information Systems and Applications. Vol 8 p. 8–11. 12. Mengti, X. 2010. Analysis of Chinese e-commerce development case. Lahti University of Applied Sciences. Available https://www.theseus.fi/bitstream/handle/10024/15975/Xiong_Mengti.pdf [Accessed 13 May 2014] 13. Mohapatra, S. 2012. E-commerce strategy: Text and cases. Springer. 14. Peng, J., J. Quan, and S. Zhang, 2013. Mobile phone customer retention strategies and Chinese e-commerce. Electronic Commerce Research and Applications. Vol 12 (5) p. 321–327. 15. Rayport, J. F., & B. J. Jaworski. 2003. Introduction to e-commerce. McGraw-Hill Irwin MarketspaceU. 16. So, S. & Westland, J. C. 2010. Read wired: China's Internet revolution. Marshall Cavendish International Asia Private Limited. 17. Tamaddoni Jahromi, A., M. M. Sepehri, B. Teimourpour, and S. Choobdar. 2010. Modeling customer churn in a non-contractual setting: the case of telecommunications service providers. Journal of Strategic Marketing. Vol 18 (7) p. 587–598. 18. Tong, T. 2004. China business guide. HK: China Knowledge Press. 19. Warf, B. 2012. Global geographies of the Internet. Springer 20. Wong, X. Yen, D. C. & Fang, X. 2004. E-commerce development in China and its implication for business. Asia Pacific Journal of Marketing and Logistics, Vol. 16(3), pp. 68 – 83 Appendix 1 Questionnaire 1. How do you feel about using Taobao website? a. Delighted b. Just find it useful 2. How often do you use Taobao? a) Everyday b) Weekly c) Biweekly d) Randomly 3. When you pay for products on Taobao do you feel safe about your money? a) Yes b) No 4. Why do you like to shop on Taobao? --------------------------------------------------------------------------------- 5. What kind of products are you usually interested in buying on Taobao? a) Beauty b) Skincare c) Other 6. Do you trust the prices written on Taobao website? a) Yes b) No 7. You feel more comfortable on Taobao or physically shopping? a) Taobao b) Physical 8. For how many years have you been shopping on Taobao? a) Over two years b) less than two years 9. How often do you use their community for discussion of price? a) often b) seldom c) never 10. Have you had any troubles with the quality of the products after buying on Taobao? a) Yes b) No 11. Did you ever return or tried to return a product on Taobao? a) Yes b) No 12. Can you name a few websites that you use along with Taobao? --------------------------------------------------------------------------------- 13. What kind of improvements would you suggest Taobao to have? ----------------------------------------------------------------------------- 14. Where did you learn about Taobao? a) Through a friend b) search engines c) others 15. How often does Taobao offer you a special offers? a) Weekly b) Daily c) Monthly 16. Would you like to give Taobao your e-mail address to stay updated with their latest offers? a) Yes b) No 17. How would you rate Taobao's marketing strategy? a) Excellent b) Good c) needs improvement 18. Have you ever faced any problems while logging onto their website? a) Yes b) No 19. Have you ever face any problem while buying a product? a) Yes b) No 20. Have you ever purchased a substandard quality product in oblivion on Taobao? a) Yes b) No 21. Have you ever experienced any hidden charges on Taobao? a) Yes b) No 22. Do you think it is good that Taobao has such a huge market share in China or you would prefer close competition for better service? a) More competition b) Less competition 23. If Taobao were to crash, how would that impact your shopping behaviour? a) No impact b) Distress c) Some negative impact 24. Would you recommend your friends to use Taobao for shopping? a) Yes b) No 25. How often do you read their blogs? a) Often b) Seldom c) Never 26. Do you participate in their community discussion? a) Yes b) No 27. How often do you post comments on their forums? a) Often b) Seldom c) Never 28. How would you rate Taobao's customer service? a) Excellent b) Good c) needs improvement 29. Have you ever filed a complaint to Taobao about any problem? a) Yes b) No 30. How soon do you get a product when you order it on Taobao? a) 24 hours b) Two days c) Three days d) Less than a week e) More than a week Appendix 2 Interview Can you name a few websites that you use along with Taobao? If yes why do you navigate away from Taobao? 360buy.com and Amazon.cn Sometimes another website offers a better product or a better price. It is about customization sometimes I want something in particular which is not available on Taobao. I would prefer getting the same product on Taobao at the desired price but I have to look for other websites too. If you do shop on other websites than what attracts you about them? The price and variety attracts me. I mostly shop on Taobao but sometimes I don't get what I want on Taobao which is very seldom. Taobao is the best place for makeup and female fashion-ware but sometimes I have to shop for my boyfriend. So I switch from Taobao to other websites. What kind of improvements would you suggest Taobao to have? I would suggest Taobao to offer more variety in the jewellery section. They can also open a category or regional jewellery and handicrafts can be found. Read More