Regional differences in consumer preference structures within China

• This article shows managers how consumer preferences differ among Chinese regions.
• Economic and ethnic differences strongly impact consumer preferences.
• Geographic differences hardly influence consumer preferences.
• The level of customer satisfaction hardly varies with economic development.
• Customer satisfaction is lower in south China than in north China.

This study examines whether a single marketing strategy is sufficient to cover the Chinese market. Using data from four regions and nine industries, it finds that major regional differences in consumer preferences make regional market segmentation an attractive option. In more developed regions, consumers rely more on perceived quality and public brand image but less on quality expectations. Uyghurs care more about perceived quality and personal recognition but less about quality expectations than Han Chinese. Personal recognition is more important to southern than northern Chinese. Overall, consumer preference structures are influenced more strongly by differences in economic development than subculture.