Consumer Behaviour : A case study on consumer behaviour in furniture stores in Shanghai

Abstract: With a booming economy and increase in immigration as well as urbanisation in China, the economic, demographic and consumer landscape is radically changing. Chinese people are moving out from their homes kept in the family for generations and moved into new homes in larger cities, causing a rise in demand for real estate which in turn incentivises furniture demand. With these factors in mind, important questions in the mind of furniture companies arises with regards to their new consumers such as: How do consumers behave in furniture stores in Shanghai? How does certain psychological and demographic factors influence consumer behaviour in furniture stores in Shanghai? The purpose of this study is to map consumer behaviour and find out how certain psychological and demographic factors influence behaviour in furniture stores in Shanghai. By fulfilling the purpose of this study, important details on consumer behaviour in furniture stores were answered, thus making it easier for companies to attract new ones while maintaining loyal customers. The methodological approach for this study was of a deductive nature. Qualitative as well as quantitative data was gathered through interviews, surveys and observations in the form of shadowing. Empirical data was analysed against theory by interpreting qualitative data and analysing quantitative data with diagrams, chi-square and linear regression tests. Conclusions suggest that nine factors play a role in influencing consumer behaviour in furniture stores in Shanghai. These factors are: Gender, age, income, nationality, knowledge, lifestyle, attitude, value and need. Consumers in the market can be segmented by the first four mentioned demographic factors because they are influenced differently by the five latter psychological factors. Companies can then create a marketing strategy on these segmentations by manipulating the psychological factors according to the need of each market segment.