Do Social Institutions Matter to Markets in Transition? Investigating Consumer Sentiment in China

Abstract

This study assesses the impacts of the social institutions of a transitional economy on its market by examining how China’s political, economic and cultural institutions influence consumers’ sentiment and their purchase planning behaviors. We propose and empirically validate a four‐factor model of consumer sentiment that captures the impacts of these powerful social institutions. The validity of the model was supported with data from a multi‐level stratified survey that involved 9 cities and 3,960 consumers across a number of product categories. Our findings confirm the salience of social institutions in affecting consumers’ sentiment as well as their consumption behaviors in China.

Citation

Yim, C.K.(B)., Hung, K., Zhou, N. and Zhu, J.J.H. (2006), "Do Social Institutions Matter to Markets in Transition? Investigating Consumer Sentiment in China", Multinational Business Review, Vol. 14 No. 2, pp. 47-66. https://doi.org/10.1108/1525383X200600008