Masters in International Businesses
Research Methods in Business and Management

Impact of Foreign Direct Investment on the Indian Economy

Antai College of Economics and Management
Professors: Jifeng Luo / Liangyan Wang / Jian Liang

Name: Darpan Agarwal
Student ID: 115120990017

as “a social and management process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” 1 An essential aspect of marketing is thus consumer behaviour: the understanding of what consumers need and what exactly influences their buying behaviour.
It is very typical for Chinese to make last minute purchasing decisions. 78 % of the buyers decides in the store what they are going to buy. 37 % is easily susceptible for promotions and only 22 % sticks to its original idea before entering the store4
The study of consumers helps firms and organizations improve their marketing strategies by understanding

It is widespread wisdom that Chinese people adhere a lot of importance to the concept ‘face’. Li and Su demonstrate that Chinese are much more likely to buy luxury products to improve or to keep their face, even if they have not enough money to pay for housing and to buy sufficient food and clothes.
Traditionally Chinese consumers would buy products to (publicly) fulfil certain social needs: e.g. drinking when one has guests or is together with his friends is such an activity. Brand and price are important in such a situation. As a consequence Li and Su have developed the concept of ‘face consumption’, which they define as: “the motivational process by which individuals try to enhance, maintain or save self-face, as well as show respect to others’ face through the consumption of products. Face consumption has three unique characteristics: [...] obligation[, ...] distinctiveness [, ... and] orientation [to the