Abstract
Despite the enormous opportunity that the Chinese market provides for exporting companies in the food and beverage industry, little research has considered Chinese consumer decision making processes sur-rounding these products. This study provides an empirical investigation into how Chinese consumers prioritize extrinsic product attributes (brand, nutrition content claim, ingredient label, shelf-life, price, and manufacturing country) when making their fruit juice purchase decisions. The study illustrates that consumer decision making processes are culturally embedded by presenting a comparison of the study’s findings with the more prevalent Western-based literature on consumer decision making processes. A choice-based conjoint survey was administered to 645 Chinese participants in Hangzhou, China using the internet-based software 1000Minds. Three consumer segments were identified through cluster analysis: Health Conscious, Premium Product, and Long Product Shelf-life. The Health Conscious segment wants natural and nutritious fruit juices that have a well-known brand. The Premium Product segment is willing to pay higher prices for imported fruit juices. Compared to the other two segments, the Long Product Shelf-life segment prefers lower priced and extended shelf-life fruit juices that are more convenient to store and consume. While the three clusters were similar in their preferences for the fruit juice attributes and levels, they differed in the rank order of the attributes. These findings highlight the importance of how extrinsic product attributes are traded off by Chinese consumers when making their fruit juice purchase decisions. The identification of these Chinese consumer segments provides juice manufacturers better knowledge on the market opportunities in China and strategic guidance for effective positioning, packaging, labeling, and pricing of fruit juices. This attribute prioritization-based segmentation for the Chinese consumer market is novel and thus provides strong implications for the fruit juice industry. In addition, this paper also makes a novel academic contribution to the Chinese consumer decision making literature on food and beverage products.