Consumption patterns of entrepreneurs in the People's Republic of China

Kong Wing, Clement CHOW, Ka Yiu, Michael FUNG, Hang Yue NGO

    Research output: Journal PublicationsJournal Article (refereed)

    8 Citations (Scopus)

    Abstract

    Since the implementation of economic reforms in 1978 in the People's Republic of China, entrepreneurs have emerged as a new consumer group. With rising income and high consumption power, entrepreneurs have become major consumers for expensive goods and services. However, little research has been carried out to understand their consumption decisions. In this article, we study the consumption patterns of small business owners, getihu , in China by using a set of large-scale, nationwide survey data. Their consumption is postulated to be affected by (1) risk factors which include failure risk and financial (leverage) risk, (2) household variables such as the household size, financial and labor resources in the family, (3) the future plans of their business, and (4) home ownership. The effects of these factors on consumption patterns are evaluated. Our empirical results, based on regression and Tobit analysis, showed that all these factors are important in the consumption decisions of the entrepreneurs' households. In particular, risk and household factors are statistically significant in accounting for the variations in their consumption patterns. The marketing implications are also discussed.
    Original languageEnglish
    Pages (from-to)189-202
    Number of pages14
    JournalJournal of Business Research
    Volume52
    Issue number2
    DOIs
    Publication statusPublished - 1 May 2001

    Fingerprint

    Consumption patterns
    China
    Entrepreneurs
    Household
    Factors
    Resources
    Small business
    Financial leverage
    Marketing
    Labor
    Empirical results
    Income
    Owners
    Survey data
    Tobit analysis
    Home ownership
    Economic reform
    Regression analysis
    Risk factors
    Household size

    Keywords

    • Consumption
    • Entrepreneur
    • Getihu

    Cite this

    CHOW, Kong Wing, Clement ; FUNG, Ka Yiu, Michael ; NGO, Hang Yue. / Consumption patterns of entrepreneurs in the People's Republic of China. In: Journal of Business Research. 2001 ; Vol. 52, No. 2. pp. 189-202.
    @article{d88983877df5480daf602689dfb81544,
    title = "Consumption patterns of entrepreneurs in the People's Republic of China",
    abstract = "Since the implementation of economic reforms in 1978 in the People's Republic of China, entrepreneurs have emerged as a new consumer group. With rising income and high consumption power, entrepreneurs have become major consumers for expensive goods and services. However, little research has been carried out to understand their consumption decisions. In this article, we study the consumption patterns of small business owners, getihu , in China by using a set of large-scale, nationwide survey data. Their consumption is postulated to be affected by (1) risk factors which include failure risk and financial (leverage) risk, (2) household variables such as the household size, financial and labor resources in the family, (3) the future plans of their business, and (4) home ownership. The effects of these factors on consumption patterns are evaluated. Our empirical results, based on regression and Tobit analysis, showed that all these factors are important in the consumption decisions of the entrepreneurs' households. In particular, risk and household factors are statistically significant in accounting for the variations in their consumption patterns. The marketing implications are also discussed.",
    keywords = "Consumption, Entrepreneur, Getihu",
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    language = "English",
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    Consumption patterns of entrepreneurs in the People's Republic of China. / CHOW, Kong Wing, Clement; FUNG, Ka Yiu, Michael; NGO, Hang Yue.

    In: Journal of Business Research, Vol. 52, No. 2, 01.05.2001, p. 189-202.

    Research output: Journal PublicationsJournal Article (refereed)

    TY - JOUR

    T1 - Consumption patterns of entrepreneurs in the People's Republic of China

    AU - CHOW, Kong Wing, Clement

    AU - FUNG, Ka Yiu, Michael

    AU - NGO, Hang Yue

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    N2 - Since the implementation of economic reforms in 1978 in the People's Republic of China, entrepreneurs have emerged as a new consumer group. With rising income and high consumption power, entrepreneurs have become major consumers for expensive goods and services. However, little research has been carried out to understand their consumption decisions. In this article, we study the consumption patterns of small business owners, getihu , in China by using a set of large-scale, nationwide survey data. Their consumption is postulated to be affected by (1) risk factors which include failure risk and financial (leverage) risk, (2) household variables such as the household size, financial and labor resources in the family, (3) the future plans of their business, and (4) home ownership. The effects of these factors on consumption patterns are evaluated. Our empirical results, based on regression and Tobit analysis, showed that all these factors are important in the consumption decisions of the entrepreneurs' households. In particular, risk and household factors are statistically significant in accounting for the variations in their consumption patterns. The marketing implications are also discussed.

    AB - Since the implementation of economic reforms in 1978 in the People's Republic of China, entrepreneurs have emerged as a new consumer group. With rising income and high consumption power, entrepreneurs have become major consumers for expensive goods and services. However, little research has been carried out to understand their consumption decisions. In this article, we study the consumption patterns of small business owners, getihu , in China by using a set of large-scale, nationwide survey data. Their consumption is postulated to be affected by (1) risk factors which include failure risk and financial (leverage) risk, (2) household variables such as the household size, financial and labor resources in the family, (3) the future plans of their business, and (4) home ownership. The effects of these factors on consumption patterns are evaluated. Our empirical results, based on regression and Tobit analysis, showed that all these factors are important in the consumption decisions of the entrepreneurs' households. In particular, risk and household factors are statistically significant in accounting for the variations in their consumption patterns. The marketing implications are also discussed.

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