Factors Affecting Chinese Consumers On Purchase Of Jewellery in Afghanistan

Factors Affecting Chinese Consumers On Purchase Of Jewellery in Afghanistan?

1.0 Chapter 11.1 BackgroundThe global jewellery goods market has increased considerable over the last twenty year. Today, it is estimated to be worth $20 billion. In spite of operating within a comparatively stable business environment for decades, jewellery goods firms have faced recent challenges from external forces (Yeoman and McMahon-Beattie, 2006). The industry is faced by globalisation, intense competition, increased consumer sophistication and maturity in markets (Djelic and Ainamo, (1999). For example, Nueno and Quelch (1998) found that sales volume in luxury brands decline by 3% averagely each year from 1990 to 1993. The recent global financial crisis as well affected the luxury goods market. LVMH an American luxury firm reported that its sales dropped by 4% in the US market and by 5% in Japanese market in 2008.

The increased external pressure is forcing jewellery and other luxury companies to transform themselves from family-owned and private companies to public companies, while at the same time they try to exploit international markets (Bhat and Reddy, 1998). Foxall (2005) observes that China as an emerging market offer big opportunity for jewellery goods companies.

As noted by Agarwal and Wu (2004) China is the biggest emerging market and boosts of a fast growing economy. With high economic growth of China, there is increase in personal income, which is resulting in a new segment of wealthy individuals referred to as China’s “new rich” (Wu, 1997). This point is further echoed by Blackwell et al (2001) who notes that increasing number of rich individuals in China has meant that more people are able to reside in affluent neighbourhoods and buy luxury products. a report carried by Ernst and Young (2005) indicated that China was the third biggest consumer of premium fashions and luxury products, and Chinese market is projected to account for 30% of entire global luxury goods sales by 2015.

Several luxury goods firms including those dealing specifically in jewellery have set up shop in China to exploit China’s vibrant economy and the emerging rich consumer group who is in love with and can afford jewellery goods. Gucci, Bally and Lois Vuitton are some of the luxury that have already set shop in China, and have operated for over ten years. Indeed, as early as 2004, Ermenegildo Zegna had 40 stores in more than 20 Chinese cities, and China is its fourth-biggest market. Armani had 30 stores by 2006, and Prada was not left behind as it has 10 stores as at 2006 (Wiedmann el al, 2007). All these luxury goods firms plan to put more efforts in their businesses to increase their sales. Nonetheless, not all luxury goods companies that enter Chinese market succeed, some are only able to record minimal profits, while others struggle to survive within the market (Yeoman and McMahon-Beattie, 2006).

Table of Contents

TOC o “1-3” h z u HYPERLINK l “_Toc367043269” 1.0 Chapter 1 PAGEREF _Toc367043269 h 4

HYPERLINK l “_Toc367043270” 1.1 Background PAGEREF _Toc367043270 h 4

HYPERLINK l “_Toc367043271” 1.2 Research Aim and Objectives PAGEREF _Toc367043271 h 7

HYPERLINK l “_Toc367043272” 1.3 Research justification PAGEREF _Toc367043272 h 8

HYPERLINK l “_Toc367043273” 1.4 Structure of the thesis PAGEREF _Toc367043273 h 8

HYPERLINK l “_Toc367043274” 2.0 Literature Review PAGEREF _Toc367043274 h 10

HYPERLINK l “_Toc367043275” 2.1 Introduction PAGEREF _Toc367043275 h 10

HYPERLINK l “_Toc367043276” 2.2 The meaning of jewellery products PAGEREF _Toc367043276 h 10

HYPERLINK l “_Toc367043277” 2.3 What does luxury goods entail? PAGEREF _Toc367043277 h 11

HYPERLINK l “_Toc367043278” 2.4 Outlook of Chinese jewellery market PAGEREF _Toc367043278 h 12

HYPERLINK l “_Toc367043279” 2.5 Consumption of jewellery as a luxurious product PAGEREF _Toc367043279 h 13

HYPERLINK l “_Toc367043280” 2.6 Jewellery goods consumption in Chinese market PAGEREF _Toc367043280 h 16

HYPERLINK l “_Toc367043281” 2.7 Cultural orientation and jewellery products consumption PAGEREF _Toc367043281 h 19

HYPERLINK l “_Toc367043282” 2.8 Theory of planned behaviour PAGEREF _Toc367043282 h 24

HYPERLINK l “_Toc367043283” 2.8.1 Application of planned behaviour to Chinese buying behaviour of jewellery PAGEREF _Toc367043283 h 26

HYPERLINK l “_Toc367043284” 2.9 Summary of the chapter PAGEREF _Toc367043284 h 28

HYPERLINK l “_Toc367043285” 3.0 Chapter 3 PAGEREF _Toc367043285 h 31

HYPERLINK l “_Toc367043286” Methodology PAGEREF _Toc367043286 h 31

HYPERLINK l “_Toc367043287” 3.1 Introduction PAGEREF _Toc367043287 h 31

HYPERLINK l “_Toc367043288” 3.2 Research Designs PAGEREF _Toc367043288 h 31

HYPERLINK l “_Toc367043289” 3.3 Data collection PAGEREF _Toc367043289 h 32

HYPERLINK l “_Toc367043290” 3.3.1 Secondary data method PAGEREF _Toc367043290 h 32

HYPERLINK l “_Toc367043291” 3.3.2 Primary data PAGEREF _Toc367043291 h 32

HYPERLINK l “_Toc367043292” 3.4 Data collection methods PAGEREF _Toc367043292 h 33

HYPERLINK l “_Toc367043293” 3.4.1 Interview PAGEREF _Toc367043293 h 33

HYPERLINK l “_Toc367043294” 3.2.2 Questionnaire PAGEREF _Toc367043294 h 34

HYPERLINK l “_Toc367043295” 3.5 Sampling strategy PAGEREF _Toc367043295 h 35

HYPERLINK l “_Toc367043296” 3.6 Viability and Reliability PAGEREF _Toc367043296 h 35

HYPERLINK l “_Toc367043297” 3.7 Data analysis PAGEREF _Toc367043297 h 36

HYPERLINK l “_Toc367043298” Chapter 4: PAGEREF _Toc367043298 h 37

HYPERLINK l “_Toc367043299” Investigation: Results and analysis of results PAGEREF _Toc367043299 h 37

HYPERLINK l “_Toc367043300” 4.1 Demographic aspects of the respondents PAGEREF _Toc367043300 h 37

HYPERLINK l “_Toc367043301” 4.2 Dimensions of satisfaction PAGEREF _Toc367043301 h 41

HYPERLINK l “_Toc367043302” 4.2.1 Store Type and Location PAGEREF _Toc367043302 h 41

HYPERLINK l “_Toc367043303” 4.2.2 Other variable Correlations PAGEREF _Toc367043303 h 43

HYPERLINK l “_Toc367043304” 4.2.3 Product Aspects of Jewellery PAGEREF _Toc367043304 h 45

HYPERLINK l “_Toc367043305” 4.2.4 Product characteristics PAGEREF _Toc367043305 h 46

HYPERLINK l “_Toc367043306” 4.2.5 Value created-including PAGEREF _Toc367043306 h 47

HYPERLINK l “_Toc367043307” 4.3 Findings from interview from the 20 managers PAGEREF _Toc367043307 h 48

HYPERLINK l “_Toc367043308” Chapter 5: PAGEREF _Toc367043308 h 50

HYPERLINK l “_Toc367043309” 5.1 Conclusion PAGEREF _Toc367043309 h 50

HYPERLINK l “_Toc367043310” Chapter 6: PAGEREF _Toc367043310 h 52

HYPERLINK l “_Toc367043311” 6.1 Recommendations PAGEREF _Toc367043311 h 52

HYPERLINK l “_Toc367043312” Appendix PAGEREF _Toc367043312 h 54

HYPERLINK l “_Toc367043313” Questionnaire PAGEREF _Toc367043313 h 54

HYPERLINK l “_Toc367043314” Reference PAGEREF _Toc367043314 h 64

though China’s rapid economic growth with definitely continue to offer considerable opportunities for luxury goods companies and particularly those dealing in jewellery, cultural differences, changing consumer behaviour and differences in Chinese consumer markets presents major challenges for these firms operating in China. Tse (1996) notes that the buying of jewellery goods by Chinese consumers could be driven by factors that differ from those in their home markets such as the US and European markets.

According to Tse (1996) present studies on consumption strongly show western culture and stress on individualistic objectives and that in a collectivist culture such as China, the consumer behaviour and motivations for buying luxury products maybe remarkably different with those observed in individualistic culture. However, Wiedmann et al (2007) disagree with this argument and states that consumer behaviour concerning luxuries products like jewellery is “culture independent”, therefore, does not differ across cultures. Yet again, behaviour is guided by attitudes, which are arise from values and therefore related to culture (Triandis, 1995). Attitudes are influenced by beliefs; consequently, consumers with different beliefs regarding buying goods may use different processes in searching for product information and in making buying decisions, this will certainly result in different consumer behaviour. As noted by Wong & Ahuvia (1998) though same products maybe available in Asian and Western markets, consumers from these two different cultures may have different reasons for buying same products. Wong and Ahuvia (1998) add that culture can affect consumer’s perceived motivations, values and even beliefs regarding goods, including jewellery. Phau and Prendergast (2000) points out that empirical research reveals that consumer in collectivist societies have different perceptions and attitudes towards jewellery and other luxury products than those of individualistic cultures.

Another important aspect that jewellery goods firms have to take into account is the diversity existing in Chinese consumer market. Cui & Liu (2000) states that though in general Chinese consumers are experiencing raise in their income and show increased demand for luxuries products, patterns of buying jewellery goods differ significantly within these consumers. Indeed, Triandis (1995) explains that people in each society whether collectivist or individualistic, differ in their personal cultural orientation. More so, the cultural orientation of collectivist and individualistic could either be horizontal or vertical. Different cultural orientations observed among Chinese consumers could result in different beliefs about buying jewellery goods and therefore different buying patters. To be successful in Chinese markets, jewellery goods firms ought to understand the different cultural orientation of their target consumers to formulate responsive marketing strategies.

Information and data on jewellery goods available in past literature is very limited (Vickers and Renald, 2003; Beverland, 2004). Though China is a significant market for jewellery goods, research is limited on the Chinese jewellery goods market as well as on Chinese consumer behaviour in relation to jewellery goods. According to Xiao (2005) this can be attributed to two main factors. First, players in the jewellery goods industry hold that “the golden principle for success in the jewellery market is to remain stylish, reliable and effective, and instead of asking what customers want, you should tell them what they ought to have”. Indeed, few firms in the jewellery goods industry frequently examine developments that occur within the market place for jewellery products (Xiao, 2005). Secondly, jewellery goods firms only lately made a mark in Chinese market and other emerging markets; this explains the limited applicable and consistent data exist on consumers of jewellery products in these markets. As observed by Crane (1997) research is needed for formulating an analytical system to promote scholars’ knowledge of buying behaviour relating to jewellery goods in Chinese market, and to assist players formulate marketing strategies appropriate for this market. The necessity for such kind of research has motivated the present research to investigate the factors affecting Chinese consumers to buy jewellery.

1.2 Research Aim and ObjectivesThe main aim of this research is to determine the factors that influence Chinese consumers to buy jewellery. Accordingly, the specific objectives set for this research are:

To investigate the Chinese consumers behaviour in regard to cultural orientation

To establish the main factors that determines Chinese consumers’ intention to buy jewellery as luxury products by applying the Planned Behaviour theory.

Determine behaviour dimensions that influence Chinese consumers to purchase jewellery

1.3 Research justificationIt’s generally accepted that China as a market provides significant long-term opportunities for jewellery goods firms; however, lack of awareness with the market situation may hamper these firms’ ability to exploit the opportunity that exists. Being able to understand consumer behaviour relating to jewellery goods is necessary for various business activities including product development, promotion activities, branding strategies and customer relations. Manufactures, designers, and even retailers in the jewellery goods industry have to know and understand the consumer behaviour of these products so as to gain from the market opportunities. This calls for proactive analysis of the buying behaviour of Chinese consumers to produce results with relevant implications for firms currently operating or those planning to open their operations in Chinese market.

It’s against this background that the findings of the current research offer valuable and significant information for players with jewellery goods industry. The research documents the setting and potential of the jewellery goods in Chinese market. More so, the results offer in-depth into consumer behaviour relating to jewellery products.

1.4 Structure of the thesis

The thesis is arranged in five chapters as outlined below

Chapter 1: Introduction: this chapter provides the background information of the research, aim and objectives and research rationale

Chapter 2: the literature review: gives a review of the past literature on luxury goods and market with special attention on jewellery market, a review of Chinese cultural orientation and who it influences consumer behaviour, and theory of planned behaviour.

Chapter 3: methodology: this chapter underlines research design, data collection methodology, sampling, questionnaire formulation and data analysis.

Chapter 4: data analysis: This chapter gives details of data analysis and presents interrelates data.

Chapter 5: Conclusions, Recommendations: this chapter revisits research questions, summarises the research findings and offers conclusion, and recommendation based on the research findings. It also will provide direction on future research work.

2.0 Literature Review2.1 IntroductionThis chapter will reviews past studies on the current topic to determine academic basis to apply when formulating the theory to be used. The first aspect to examine will be defining jewellery products, before reviewing the meaning of luxury products in general. This will be followed by examining the general outlook of the industry as well as the consumer behaviour. In addition, the review will examine Consumption of jewellery as a luxurious product, Jewellery goods consumption in Chinese market, Cultural orientation and jewellery products consumption and lastly examine Theory of planned behaviour in relation to consumption of jewellery.

2.2 The meaning of jewellery products

The online dictionary defines jewellery as “articles of gold, silver, precious stones, etc., for personal adornment,” or “any ornaments for personal adornment, as necklaces or cuff links, including those of base metals, glass, plastic, or the like” HYPERLINK “http://dictionary.reference.com”http://dictionary.reference.com Similarly McCreight (1997) defines jewellery as all forms of decorative items worn by men and women. He adds that jewellery is normally made with precious stones and gems like gold, diamond and silver (McCreight, 1997). Nonetheless, they can be made from other materials including bones, iron, plastic and stones. According to McCreight (1997) people have fashioned jewellery from metal, and the main metal they have used is nickel, which can be used in costume jewellery for example buttons.

Jewellery has been around for many centuries (McCreight, 1997). In ancient years, jewellery was usually worn by only those in the upper social class as away of showing their status. During that time, jewellery was made for practical uses and not for decoration as the case right now. Presently, all sort of jewellery has been made to be worn on virtually every part of the body including the toes, fingers, tongue, stomach and many others (Tait, 1986).

Tait (1986) explains that there are a number of rules that have to be followed when buying jewellery, be it diamond or gold. Each occasion have its type of jewellery. For example, McCreight (1997) explains that while a person can buy unconventional deigns and styles of jewellery for official occasion, the same person will buy different jewellery for weddings, which will normally require diamonds, gold and other precious stones. In general, the size, quality and type of the precious stone will determine the price of the jewellery. Certainly diamond jewellery is some of the most expensive. However, the price of jewellery usually includes the uniqueness of the gemstone. Recent studies show that the biggest jewellery market is the United States (KPMG India, 2007).

2.3 What does luxury goods entail?Jewellery is grouped under luxury goods and it’s important to explain luxury goods. According to Dubois, Czellar and Laurent (2005) luxury products such as jewellery, expensive watches and bags have a common attributes, they are expensive, high quality, exclusive, desirable and inaccessible. On their part, Riley, et al (2005) this kind of differentiation features offers clues to identify luxury goods; Riley, et al (2005) have defined luxury goods as having a target a niche market with exclusive distribution, unlike mass products that target the entire market. When people buy luxury goods such as jewellery, they are mainly influenced by status and prestige of the brand name. This is different with mass products, where consumers look for functionality and price (Riley, et al 2005). This kind of differentiation features offers clues to identify luxury goods; however, this cannot be the only way of identifying luxury goods since the values that are based on their intrinsic attributes keep changing with time (Djelic and Ainamo, 1999). We have defined luxury goods because some of the concepts and theories under review cover luxury goods in general, but are applicable to jewellery goods.

Most jewellery are associated with luxury, this implies that many people consume jewellery as a luxury product. Accordingly it’s important to define luxury jewellery. According to Dubois, Czellar and Laurent (2005) luxury jewellery have certain attributes; these attributes include expensive, high quality, exclusive, desirable and inaccessible. As it can be noted these qualities are same to those of other luxury products. This dissertation will mainly examine consumption of luxury jewellery, such as articles and ornaments made from diamonds, gold, silver, precious stones.

2.4 Outlook of Chinese jewellery marketSince ancient times, jewellery consumption has been a critical social practice in many societies across the world (Barry, 1994). According to Djeclic and Ainamo (1999) the jewellery goods industry has experienced great transformation particularly over the last few years.

Since the 1970s, China has been undergoing rapid economic growth and has emerged as a leading market of jewellery products (Agarwal and Wu, 2004). The robust Chinese economic means that more people are getting richer, indeed, Thomas (2007) points out that by 2006 millionaires in China had reached 300. This increasing number of wealthy Chinese is starting to embrace high cost jewellery products. In addition, those Chinese that can buy jewellery is increasing, Ernst and Young (2005) projects that Chinese jewellery market could reach 29% of total global sales by 2015. The number of Chinese travelling across the world has increased tremendous and account for nearly 80% of the jewellery purchases made by Chinese in foreign countries (Okonkwo, 2007).

According to a market research by Business wire, Chinese jewellery industry in 2012 suffered slightly because of the European debt crisis, this saw a decline in demand in Chinese jewellery market. Still, in 2012 Chinese jewellery market increased by 19% in 2012, though this was lower compared to 40.7% increase in 2011 (Business Wire, 2013). In 2012, decline was witnessed in gold, diamond and sliver jewellery sales. Data carried by Business wire (2013) indicate that gold jewellery consumption in Chinese market represents nearly 50% of the net jewellery sales. In 2012, 502.5 tones of gold jewellery were consumed in Chinese market. Chinese consumer prefer pure gold and solid gold (Business Wire, 2013). Agarwal and Wu, 2004

Diamond jewellery as well account for a big percentage of Chinese jewellery market. The report indicates that the biggest market share in diamond segment is the wedding market that accounted for 70% of net diamond jewellery sales. Most of the diamond jewellery is imported to the country since China does not have diamond deposits. But, the volume sold in 2012 declined by 6.36%. Presently the major Chinese diamond markets are Beijing, Shanghai, and Guangzhou among other big cities (Business Wire, 2013).

The Hong Kong and other foreign brands into Chinese jewellery market have increased the level of competition within the industry. Retailers are competing based on brand names, design styles and sales distribution channels. Some jewellery firms are applying expansion strategies to control terminal sales channels tightly, and thereafter take control of the sales initiative as a strategy of getting higher sales and surviving the competitive market.

2.5 Consumption of jewellery as a luxurious product

Consumer behaviour concerning jewellery goods, which as stated before is a luxury good therefore results from various motivation for example, three forms of interpersonal impacts on jewellery consumption, which are “Veblen effect”, “snob effect” and “bandwagon effect” Veblen effect, means that a certain luxury product is bought because of its high pricing (gives exclusivity feeling to own it). Snob effect is the preference of products because of their uniqueness from other products. Lastly, bandwagon effect is where a preference for a certain product increases because more people are purchasing it. When these three effects interact they either increase or reduce demand for jewellery products. For example, if the Veblen effect is high (the jewellery is highly exclusive) then the demand will be high, but if it declines, the product will loss its exclusiveness and its demand will fall. Vigneron and Johnson (2004, 67). Other motivation comes from the following effects, personal, the hedonic and perfectionism. Accordingly, Vigneron and Johnson (2004) asserts that consumers may think that they can get five values by buying jewellery, these values include conspicuous values, unique value, social values, hedonic values and quality value, all these value is perceived. Hedonic value is the beauty that one derives from the luxury product, while the quality value is the perceived superiority of the product. These two values combine to make the product worth owning. The first three values conspicuous values, unique value, social values interact together to create a visible but unique product that rises owns social status. The second objective of this research is to establish the main factors that determine Chinese consumers’ intention to buy luxury jewellery products. In this lies the inevitability to review the values of purchasing luxury goods and by extension jewellery goods.

Vigneron and Johnson (2004) explains that perceived conspicuous value of luxury products in this case jewellery is the idea that the purchasing of jewellery is seen as symbol of status and wealth, and high prices enhances the conspicuous value and the status of wealth. Social status that is associated with jewellery goods s an essential aspect in conspicuous consumption.

According Vigneron and Johnson (2004) to this value entails the notion that consumers buy luxury goods, in this case jewellery to show uniqueness with the aim of improving both their individual and social image by showing their individual preferences, or going against the common trend. If a large number of individuals have same jewellery brand, it loses its prestige for those consumers who want to own a unique value of jewellery. According to Vigneron and Johnson (2004) some consumers seek uniqueness by buying new brands on the market. Such consumers may as well decline a certain jewellery of it is been purchased by large number of people (mass market). Vigneron and Johnson (1999) applied the terms “very exclusive,” and “rare” to explain the uniqueness customers seek to get.

Vigneron and Johnson (2004) describe perceived social value to imply the behaviour by consumers to buy luxurious products such as jewellery in order to achieve the prestige of belongs to certain social class. they went on to ague these type of consumers are concerned with social value that comes with owning certain brands of jewellery want to fit in particular wealthy lifestyle. They want to be distinguished from the lower social class. They view they jewellery an element of their identity, Vigneron and Johnson (2004) states that social referencing as well as advancement of an individual’s self-esteem by owning jewellery is pursued by those individuals who want to achieve social value. The terms “leading” “rewarding”, “powerful” and “successful” are applied by Vigneron and Johnson (2004) to describe social perception.

Several researchers have tried to formulate a measuring scale to evaluate the interpersonal influence against luxury product buying; many of these scales focus on social effects related with consumer behaviour. For example, Eastman et al (1999) formulated a self-report evaluation scale to measure luxury product consumption. They carried out six studies to refine their uni-dimensional construct scale. Accordingly, the scale has the five items listed below:

“I would buy a product just because it has status”

“I am interested in new products with status”

“I would pay more for a product of it had status”

“The status of a product is irrelevant to me”

“A product is more valuable to me if has some snob appeal”

2.6 Jewellery goods consumption in Chinese marketCulture greatly influences how an individual values wealth and luxury (Rose and DeJesus, 2007). According to Dubois and Duquesne (1993) the social value put on jewellery purchase reveals a considerable effect of culture. Individualistic and collectivistic societies differ in their value system, but they both drive consumers to buy luxurious goods such as jewellery in different approaches (Schutte and Ciarlante 1999). According to Schutte and Ciarlante (1999) status-seeking consumption in Asian cultures in buying of luxuries products stresses social meaning expressed by the products. They add that social meanings are conveyed through signals like price and brand name and not necessarily quality of the product (Schutte and Ciarlante, 1999). Schutte and Ciarlante (1999) further claims that Asian consumer buy luxury goods like jewellery to gain social recognition and comply with the social norms.

Chinese culture is group-oriented, the collectivism of the Chinese advances the belief that people who share same group are inter-related and therefore should adhere to the norms of that group and to live in harmony (Leung, 1996). Indeed in their study, Hui and Tan (1996) established that Chinese workers emphasised social relationships as well as group welfare at the cost of individual needs and desires. Similarly, Yau (1994) agrees that Chinese culture puts a great value on interpersonal relations as well as social orientations, and therefore emphasising group norms.

Tse (1996) has asserted that consumption in traditional Chinese culture was viewed as a means of serving higher-order demands than an activity that has to be taken by a person. Tse (1996) therefore agues that Chinese consumers place a lot of emphasis on social aspects and values of a brand compared to their American counterparts. Tse (1996) goes on to suggest that Chinese consumers put more value on aesthetics when buying jewellery; nonetheless, the emphasis placed on aesthetics may be drive by a need to attain social status or social identity.

According to Tse (1996) Chinese people always keep a certain social gap those in different social group and try to close this social gap that separate them. Therefore, consumption is normally used as a way to maintain or close the social gap. Yet, again one is expected to behave properly within his/her social class. According to Hui and Tan (1996) Chinese people also have a strong need to be distinguished from others. For example, the Chinese people (mainland China) always want to be differentiated from their brothers in Taiwan and Hong Kong. In seeking this difference they use material thing (Tse, 1996). Hui and Tan (1996) adds their voice to this debate by stating that jewellery and luxury goods in general have usually been applied as social tools to open the gap between social groups and match with peers from the same social group. The above situation becomes outstanding when the class of social groups have been formed with the continuing rapid economic growth in China. Accordingly, the drive to use jewellery and other luxury goods to strengthen social identity has increased from the newly rich class (Hui and Tan (1996)). Still, Tse (1996) suggest that Chinese consumers are bound to put a lot of emphasis on the views of their reference social group in reaching buying decision compared to American consumers.

These cultural features of Chinese people indicates that the “Veblen effect”, “snob effect” and “bandwagon” are critical for Chinese consumers when buying and displaying jewellery goods. Yet again, it cannot be proposed that only interpersonal factors drive Chinese consumers to buy jewellery goods. Triandis (1995) argues that each society has individualistic and collectivists attributes. Triandis (1995) adds that the teachings of Confucianism, Buddhism and Taoism have shaped Chinese people’s life in a way that Chinese traditions stresses inter-group norms, competition, quality and individuality. Indeed, observed individual differences demonstrate adequate differences on an assumption held by a certain homogeneous society.

More so, many factors can result in cultural changes. Chinese society is undergoing rapid economic growth and slowly being influenced by western values (Triandis (1995). According to Triandis (1995) China’s quest of economic reforms as well as open-door policy adopted in 1978 has greatly impacted its traditional cultural values. Western culture is becoming popular in China particularly among the young generation, which is increasingly accepting western norms and products. However, Leung (1996) observes that the young generation may buy jewellery goods driven by different factors that are same as they parents’ generation. Accordingly, the young generation may place a greater emphasis on individual values. Studies done by Tse (1996) seem to agree with this observation since he established that hedonic consumption among Chinese society is increasing.

These changes in consumer behaviour among the young generation has a considerably implication in analysing Chinese consumer behaviour regarding jewellery products. In addition, consumerism in China is comparatively new (Schutte and Ciarlante, 1999). Leung (1996) notes that m