+1(978)310-4246 credencewriters@gmail.com
  

Research Topic: The research of marketing strategies
of German cars companies in China
Module Code:PM600
Group: MD17
Module Title: Research Project
Assessment Type: Written Report
Module Tutor Name: Andrew Upton
Student ID Number: P298197
Date of Submission: 12 April 2022
I confirm that this assignment is my own work. Where I have referred to academic
sources, I have provided in-text citations and included the sources in the final reference list.
Abstract
The research has described various marketing strategies used by three German car companies
operating in the Chinese market including Mercedes, Volkswagen, and BMW. It has also
discussed the impact of Covid-19 on car sales in the US and currently China is described as
largest car sales in comparison with the developed country in the world as well. Further, the
research has utilised a secondary method of data collection as it is easier and more convenient to
use. The project has also included qualitative data in concern with this topic. The secondary data
has been collected from different sources to optimise the reliability of the research paper.
Based on the research, it is found that China is the biggest market for German cars as compared
to big economies like the US. Moreover, It is also found that Volkswagen has a high dependency
on the Chinese market which can affect the performance of the brand. Moreover, it is found that
Mercedes Benz is having high growth than other car markers in China. Hence, the research has
critically discussed the way marketing strategies have helped the companies in achieving success
and growth in the Chinese market.
Keywords: marketing strategies, German Car, Covid-19,Mercedes, Volkswagen, BMW, China
and US, Chinese market, Automobile industry, Electric vehicle, Growth, Sales of German car
Table of Contents
Abstract ……………………………………………………………………………………………………………………………………… 2
Section 1: Introduction …………………………………………………………………………………………………………………. 1
1.1 Background……………………………………………………………………………………………………………………….. 1
1.2 Scope ……………………………………………………………………………………………………………………………….. 1
1.3 Research Question ……………………………………………………………………………………………………………… 1
Section 2: Literature Review…………………………………………………………………………………………………………. 2
Section 3: RESEARCH METHODOLOGY ……………………………………………………………………………………. 7
3.1 Introduction ………………………………………………………………………………………………………………………. 7
3.2 Data Collection method ………………………………………………………………………………………………………. 7
3.3 Methodology of one previous research from resources ……………………………………………………………. 8
3.4 Conclusion ………………………………………………………………………………………………………………………… 8
Section 4: Findings ……………………………………………………………………………………………………………………… 9
4.1 Introduction ………………………………………………………………………………………………………………………. 9
4.2 China as a biggest German car market ………………………………………………………………………………….. 9
4.3 Volkswagen too much dependency on China Market ……………………………………………………………. 10
4.4 Slow growth of Mercedes as compared to other German cars in China ……………………………………. 12
4.5 Conclusion ………………………………………………………………………………………………………………………. 13
Section 5: Discussion …………………………………………………………………………………………………………………. 14
5.1 Introduction …………………………………………………………………………………………………………………….. 14
5.2 China as the biggest German car market. …………………………………………………………………………….. 14
5.3 Volkswagen too much dependency on China Market ……………………………………………………………. 14
5.4 Slow growth of Mercedes as compared to other German cars in China ……………………………………. 15
5.5 Conclusion ………………………………………………………………………………………………………………………. 15
6: Conclusion/Recommendations ………………………………………………………………………………………………… 17
References ………………………………………………………………………………………………………………………………… 19
Section 1: Introduction
The automobile sector in China has seen persistent growth and it is supported by the economic
growth of the country which is increasing year by year. Further, the Chinese market offers
diverse attractions as the consumer demands are increasing and offer diverse growth
opportunities to the companies (Williamson et. al. 2021). For this purpose, the research will
focus on describing the marketing strategies of Volkswagen, Mercedes, and BMW in the
Chinese market. The demand of e-vehicles is also increasing in Chinese market to address the
increased environmental concern.
1.1 Background
The automobile industry in the Chinese market is growing rapidly and China is known as the
world’s largest vehicles market. Along with that, the Chinese government also expects that the
automobile output will reach around 35 million by 2025. It also enhances the competitiveness
among German car companies in the Chinese market. Due to this increased competitiveness and
availability of substitutes, planning of marketing strategy is must achieve success and growth
(Williams-Franklin and Franklin, 2022).
1.2 Scope
The primary scope of the research is to identify the marketing strategies used by the automobile
sector in the Chinese market. The research will also highlight the marketing strategies used by
some of the German car companies in the Chinese market. Companies have also taken advantage
of marketing campaigns, advertising, and promotion techniques to achieve significant growth in
the Chinese market (Fan et. al. 2020). The scope is to understand the importance of marketing
strategies and different strategies that could help German car companies in achieving success in
today’s Chinese market. Further, the market and demands of consumer is changing frequently,
for example, the demands during the Covid-19 have affected the market. These changes are
responsible for bringing changes in marketing strategies as well.
1.3 Research Question
1. Why China market is considers as the biggest market for the German cars?
1
2. Volkswagen’s too much dependence on the China market would lead to a financial problem
for the company in the future?
3. Why there is slow growth of Mercedes’s compared with other German car makers in the China
market?
The first question aims to analyze the importance of the China market in the global cars market
and changes in the environment that have impacted the companies in the short and long run. The
reason why the China market is more important to German car makers than any other market in
the world. The second question is about Volkswagen and its dependence on the sale or in the
China market. Company major growth lies in the China market which might bring difficulties for
the company in near future financially. Change in the policy of China government like Made in
China by 2025 campaign would reduce the growth of the company or not. The third question is
regarding the low growth of Mercedes in the China market than other German companies. This is
due to late Enter or change in the policies of the China government or lack of proper strategic by
the company in the China market.
Section 2: Literature Review
2.1 Introduction
The Chinese market is considered one of the most attractive consumer markets with its
increasing consumer demands and high growth opportunities for the company. As per the report
of Sha et al. (2014) during the time of the global recession of 2008-10, China was the only
country to recover quickly and headed in an upward swing.
According to Barton (2013), head of CAR (Center Automotive Research)’s Automotive Research
Center, said, “In the Chinese market, German cars shares are increasing and would be more in
future also. In 1988, Volkswagen entered China with their new brand Audi, and slowly became
the leader of premium cars in the Chinese market.
2
According to Hu & Yuan (2018) in their report on China NEV market development for the
premium cars, Mercedes and BMW also enter the market in 21 centuries in the Chinese market.
As per Bartikowski & Cleveland (2017) study, Around 5.4 million vehicles were sold by these
companies in the Chinese market in 2020 which is around 38% of the total sale of a car in China.
Therefore, the main objective of this project is to analyze China’s market influence in the global
car industry and how German car companies are using different marketing strategies to capture
the China market. The main content of this discussion consists of the following four parts: China
is influencing the global car industry, Volkswagen marketing strategy in China, BMW strategy
in China, and Mercedes marketing strategy in the China market.
2.2 China is influencing the global car industry:
China is one of the biggest markets for the car in the world. The demand for car is increasing day
by day in the market. As per the study by Barton (2013), China alone accounts for 50% of
Volkswagen’s world sales, 37% of Audi, and 30% of BMW, Porsche, and Mercedes-Benz. As
per the report of Bartikowski & Cleveland (2017) on the environment of China for premium, cars
states that the current trends of SUVs, electrified car, and connected cars are having demand in
the market. Chinese buyers and especially the youth population are attracted towards SUVs more
to have the prestige of having bigger cars. According to the study of Dewalska-Opitek (2020),
The growth of SUVs in China is about 65% in the youth who are buying for the first time with an
average age around 34. Currently, demand for connected cars and electrified cars are increasing
in the market. The demand for the electrified car is more than the demand in the US. As per
study by Jiang (2018), in 2013 China has surpassed the US in the consumption of the highest
automobiles demand in the world.
According to Sha et al. (2014) study states that the huge population of China makes the demand
for the products more than the other countries with less population. The main limitation of these
two reports is that these reports consider before covid situation and not after situation which is
changed around the world drastically even, it had impacted the behavior of consumers
differently.
2.3 Volkswagen Marketing Strategy in the China:
3
According to the study of Heq (2015), Volkswagen entered the Chinese car market in 1988
through three different approaches for three different areas of the car market. It came up with the
joint venture with shanghai based SAIC Volkswagen, in the northeastern city of Changchun the
second venture FAW-Volkswagen and three in Beijing Volkswagen import. It focused more on
the requirement of the Chinese with a unique model for the Chinese market were launched in
SUVs to capture the market. The report concludes that with the use of this strategy currently,
Volkswagen has the highest market share in the car market of China which is not the only reason
for Volkswagen’s success in China.
As per the report of Lee et al. (2021) company’s next strategy is to strengthen the company by
electrification of the car which is demanded by the youth in the market. JAC Volkswagen’s joint
venture for electrification cars is strengthening with the increase in the capital and research and
development of the venture for the best production of the electrified car. Before covid, the launch
of 10 electrified models in 2020 was the target, but due to covid things have changed in the
market and country.
According to Cheng (2018), Volkswagen has come up with a new strategy to secure future
demand for batteries in the Chinese e- models. According to the agreement Volkswagen
Investment co. (China) would become the largest shareholder of Gotion with 26% of shares by
buying at 1.1 billion euros. With this partnership, the company would get to know how in the
battery industry and the recycling of battery process by Going. With that Gotion would become a
certified supplier of local MEB vehicles for the company. As per report by Lee et al. (2021),
Volkswagen growth is directly proportional with the China market which means change in the
China market or downturn in China market would lead to low growth in the company.
2.4 BMW Marketing Strategy in China:
As per the study of Jiang (2018), BMW entered China market in 1994 by a joint venture with the
Shenyang-based Brilliance company that was later called BMW Brilliance. Rapid growth was
seen by the company from the start, as China is considered the second-best market for luxury
cars in the world after the US. As per the report by Mckisney China luxury car market would
reach around 3 million units by 2021 and would surpass the US and become the largest market
4
for the luxury car by 2023. This report has considered the growth in luxury cars in China but has
ignored growth and new entries in the auto sector in China.
According to Gao & Krogstie (2015), Various strategies were used by the BMW company to
increase the growth in China by localizing global popular campaigns like “Joy of BMW” and
connecting with the people of the chin by increasing brand reputation. It also used Chinese
culture, painting, opera masks, and calligraphy in order to customize the brand in the local
market.
As stated by Dewalska-Opitek (2020), a Joint venture with the brilliance group have helped the
company in bringing a new model with advanced technology in the market which also helps in
the growth of the company. In 2018, BMW Brilliance have built the first high-voltage power
battery center for luxury car companies in China, which would help BMW to expand in the
electrified car market with new technology. The BMW Brilliance R&D Center has advanced
R&D equipment which can perform a variety of vehicle testing, laboratories, a variety of test
workshops, and 56 benches like noise testing, climate simulation, complete road test in real
climate, and vibration. BMW Brilliance contributed to the development of local suppliers related
technologies by establishing quality standards which help in promoting the local presence of
international suppliers. The report does not state other companies which Brilliance group
consider or make a battery for them which are indirect competitors of the BMW in the China
market.
2.5 Mercedes Marketing Strategy in China:
According to the report of Chevalier &Lu (2015), Mercedes entered China in 2005 with new
models for the China market in the luxury cars segment. Entering the market where already two
big companies are their in-luxury segment made it difficult for Mercedes to stable its position in
the market. Innovation and development in the models of the car helped the company to increase
the demand for their product in the growing economy of China. If we compare the growth of
Mercedes with Volkswagen then it would be very less, as Mercedes growth is around 5% only in
the market (Hu & Yuan, 2018). The report considers late entry of Mercedes has affected the
growth of the company in China which is true up to a certain level but there are other reasons
also.
5
As per the report of Bartikowski et al. (2019) on luxury cars: Made in China states that China
government is now concerned about the market captured by the German car company in their
country. These would affect the car market of China in the future with the continuous
intervention of the government. Whether it is due to late entry in the China market or due to
change in the policies of China government towards automobiles sector or international
companies growth in the China market or due to company objective and bad strategic plan in the
China market.
2.6 Conclusion:
As mentioned in the literature review, the benefits and the problems are due to China’s influence
on the global car market. With that analysis of the different marketing strategies used by the
companies i.e., Volkswagen, BMW, and Mercedes to increase their market share in China and all
overgrowth of the company in the global market. For luxury cars, China is the biggest market,
and analysis on how this has impacted the company with the change in the situations. At some
point, changes in the environment due to the covid pandemic are also considered.
Qualitative and quantitative research methods can be found in the literature. As discussed in the
literature above, too much dependence on the China market might affect the companies, and
change in the government policy like motivating made in China campaign may affect the
companies and their growth cycle in the luxury car segment of China.
6
Section 3: RESEARCH METHODOLOGY
3.1 Introduction
A research methodology is a systematic selection of the methodological choices which are being
made by the researcher while doing the research. The major purpose of this methodology chapter
is to offer the specific details related to the methodology used by the researcher for data
collection, interpretation, and analysis for systematically conducting high-quality research. The
major aim of this research report is to research the marketing strategies of the German car
companies in China. For this, the researcher has made the appropriate choice of methodology
which is being explained in this section of the report.
3.2 Data Collection method
Selecting the data collection method is the most important task for the research. This research
study is being conducted by using the secondary data collection method. One of the important
reasons behind using this method for data collection is that it is easy and more convenient to
use(Johnston,2017). This project has included qualitative data related to the research topic. For
gathering the information through the secondary data collection sources different sources are
being used(Hammarberget al.2016). The academic resources which are available in the
University library in the form of hard copies of books have been used. Along with these different
online academic sources such as journals, articles, Google scholar and the electric library has
been used for this project. Moreover, the report will be investigating the different academic
sources in the finding and discuss section.
Gathering the information from the secondary data collection method is very effective for this
research(Martinset al.2018). This had allowed in gathering the data from different sources which
had made the research more valid and reliable. The secondary resources have helped in
understanding the background information related to the research study. However, doing the
primary research is quite costly and requires alot of resources and time. Also, it is not easy to
conduct the primary research on the German Car companies due to ethical considerations which
can create major obstacles in doing the research. But in secondary research, these issues are less
and ethical considerations are also less. Also for instance, if the managers of the different
7
marketing departments of the German cars would have been interviewed then it would be more
complex to interpret and analyse the data.
3.3 Methodology of one previous research from resources
One of the previous resources has focused on investigating the marketing strategies of luxury car
firms in China. The name of the source “Analysis of the Marketing Strategies of Luxury Cars in
China—Porsche as an Example”is and is done by GuoJingchunin 2021. In this research, the
researcher had gathered information related to the trends of the Chinese market through the
secondary data collection method (Guo, 2021). In this study the researcher had gathered data for
marketing strategies of Porsche car in china is being studied for understanding how the car
market of China is affecting the firm’s operating in it. The researcher had focused on
investigating how Porsche is operating in the Chinese market and getting knowledge for the
market.
One of the important advantages of using this method is that it makes it easier for the researcher
to do the research. Also, the researcher has utilised the qualitative data as this has allowed them
in understanding the market and making appropriate recommendations for the company
(Kozleski, 2017). Moreover, the researcher has used the quantitative data in the resource to show
the sales figure of Porsche cars in the Chinese market because quantitative data shows numerical
data which is easy to understand. Thus, using quantitative data for this research is relevant
because the understanding of the automotive industry is easier through the use of quantitative
data which include sales figure, profit, and market share. The alternative source which could
have been used by the researcher was primary research but it is a time-consuming process to
conduct the survey and interviews and thus secondary sources for the data collection are used
where the use of authentic publications are used for the research.
3.4 Conclusion
This chapter had provided the overall information about the way the data is being gathered and
the research is being produced. This section of the report had also evaluated the methodology of
one of the previous research on the related topic. This assisted in understanding why the
methodological choices made for this project are appropriate. From this section, it is clear that
the secondary data collection method is more useful for this project and therefore the researcher
had used it.
8
Section 4: Findings
4.1 Introduction
This chapter focuses on finding and analysis of the data which is gathered from secondary
sources to answer the research question. Moreover, the findings will be also be connected with
the existing literature to determine if the findings are in support or against the existing literature.
4.2 China as a biggest German car market
The China market is known as the biggest German car market because of the high population and
youth craze for German car due to which the sales of German cars is higher in China as
compared to other countries (Notar, 2016).
Figure 1: Germany Car sales in China
(Source: Car Sales Statistics, 2020)
Based on the above secondary research data, There has been a growth in the sales of the German
car companies in china such as Audi, BMW, Porsche, and Mercedes Benz except Volkswagen,
other shows a high change in growth in 2020 as compared to 2019.
9
Figure 2: German car sales in the USA
(Source: Car Sales Statistics, 2020)
It is analysed that China is a bigger market as compared to the US as every brand has faced a
decrease in sales in the year 2020 as compared to 2019. These findings can be supported with the
existing literature of Barton(2013), which found that China accounted for 50% of the sales of
Volkwagen total sales in the world, 37% of Audi, and 30% of Mercedes Benz, BMW and
Porsche
4.3 Volkswagen too much dependency on China Market
As per the recent data, Volkwagen’s 40% sales comes from the Chinese market which means
china account for the biggest market share for the growth of Volkwagen in the Future.
10
Figure 3: Volkswagen higher deliveries to China
(Source: Mikhailova. V.,2020)
Based on the above data which shows the volume of deliveries done by Volkwagen in different
markets and shows that the deliveries are higher in China which states that Volkwagen’s sales
account mostly from the Chinese market which can create a problem for the brand in the future.
11
Figure 4: Volkswagen sales in different markets
(Source: Car sales statistics, 2020)
It is analysed that there is a decrease in sales by 10% which account for higher sales volume in
China than in other markets. Thus, It is found that Volkswagen is highly dependent on the China
market and it can affect the brand performance due to high dependency on one market for sales.
This finding can be supported by the study of Lee et al (2021) which found that the growth of
Volkswagen is directly propositional with the china market and any changes in the China market
will have a significant impact on the brand performance financially as its sales largely come
from this market.
4.4 Slow growth of Mercedes as compared to other German cars in China
12
Figure 5 Higher Sales growth of Mercedes in China Luxury market
(Source: Car sales statistics, 2020)
In 2020, Mercedes Benz recorded the highest growth in their sales as compared to any other
brand. Mercedes is making development in their product as per the changing demands of
customers and despite the pandemic hit Mercedes accounted for 11.7% sales growth in 2020.
4.5 Conclusion
Thus, it can be summarized based on the findings that China is the biggest market for German
cars as compared to big economies like the US. Moreover, It is also found that Volkswagen has a
high dependency on the Chinese market which can affect the performance of the brand.
Furthermore, based on analysis, it is found that Mercedes Benz is having high growth than other
car markers in China.
13
Section 5: Discussion
5.1 Introduction
The marketing strategies used by German automobile companies in China will be discussed in
further depth in this section of the study. This section will provide the discussion based on the
findings and link the findings with the existing research to make evaluations. The section will
also include the research questions: China as the biggest German car market, Volkswagen too
much dependence on China market and the slow growth of Mercedes in China as compared to
other brands. Based on evaluation it provide answering the research questions. Thus, the
recommendation will be provided based on findings.
5.2 China as the biggest German car market.
Based on the findings, it is analysed that German car market in China has largest sales in
comparison with its sales in the US automobile industry. The findings show that the sales of the
brands Audi, BMW, Porsche, and Mercedes Benz except for Volkswagen, have grown amid the
pandemic whereas the sales of these brands have decreased in the United States which shows
that China is a big market as compared to the most developed country in the world. The findings
can be supported with the existing literature, as per the CAR (Center Automotive Research),
Automotive Research Center chief said, “German automobiles share in the Chinese market is
expanding and would be higher in the future as well,” according to Barton (2013). Volkswagen’s
new brand entered the Chinese market in 1988, as well as the company has since steadily risen to
the top of the luxury automobile market in China. The literature as per Barton(2013), support the
findings as its showed that China account for Volkswagen 50% sales, 37%Audi and 30% for
BMW, Mercedes and other. Thus, it can be said that China is the biggest car market for German
automobiles.
5.3 Volkswagen too much dependency on China Market
Based on the findings, It is analysed that Volkwagen is too much dependent on the China market
as it accounts for 40% of the brand market share and thus the company can have significant
financial problems due to its too much dependence on China market. The findings are also
supported as per Lee et al (2021) which state that if there are any market changes in china
economy there will be a significant impact on the brand performance. Furthermore, It is analysed
14
that the Chinese government is supporting Chinese brands to develop a car manufacturing
market and increase the demand of the domestic car market as compared to German cars such as
BYD company is Chinese brand specialized in electric cars which will have a negative impact
on the sales of Volkswagen. These findings assisted in answering the question of whether
Volkwagen is too much dependent on China market, the answer is yes as seen from the findings
and existing literature. The company is using the marketing strategies as per the changing
demands of the customer such as now the company is working on electrification through joint
venture and partnership to meet the changing demands in China market.
5.4 Slow growth of Mercedes as compared to other German cars in China
Automobile manufacturer Mercedes-Benz is yet another well-known name in the world of highend vehicles. The comfort and reliability of their high-end variants are well-known among
consumers. Mercedes-Benz uses a different approach in the Chinese market. To fulfil the needs
of its customers, the company has had to alter its marketing strategy to emphasise the delivery of
high-quality products as well as the delivery of a premium brand experience. At the moment, the
Chinese luxury automotive business is thriving. Based on the findings, It is analysed that
Mercedes is showing a high growth of sales in the Chinese market as it is the only brand that
showed the high sales growth during the pandemic. However, According to Chevalier and Lu
(2015), literature showed that there is a slow growth of Mercedes due to its late entry into the
market. Mercedes had a difficult time gaining traction in the luxury market since it joined a
segment that was already controlled by BMW as well as Audi (Yingze, 2020). The findings
assisted in answering the research question of the slow growth of Mercedes in China market
which is No as with time the company has changed its strategy which assisted in increasing its
growth of sales in the market.
5.5 Conclusion
To summarise from the above discussion. it is noticed that China is the biggest car market for
large car manufacturers like Audi, VW, and many more compared to other developed and
developing economies. The success of the car market has been shown by the likes of BMW and
VW. Results examine the role of China’s automobile sector in the global automotive industry as
well as environmental developments that have affected enterprises in the short term as well
as long term. For German carmakers, China represents the most significant economy in the
15
country. Further, the next section will frame the conclusive statement from the findings and will
then help in proposing recommendations based on the findings and discussions.
16
6: Conclusion/Recommendations
In conclusion, this research has analysed the marketing strategy of German automobile
companies in China. This investigation started with a review of the historical backdrop of the
Chinese automobile industry to emphasise the importance of the sector’s continued expansion.
Based on the findings, It is recommended to companies adopt marketing strategies as per the
changing demands of customers such as the increasing craze for electric cars will assist firms to
make those changes to be competitive in the Chinese market. Moreover, the brands can use
sustainable ways to improve their manufacturing which will assist in gaining government support
towards the brands. Volkswagen can increase its awareness in other countries as well to reduce
its too much dependence on one market which is not good for the organisation.
From the findings to further improve the corporation, Mercedes plans to electrify the automobile
that the market’s young want. To increase their market share in China, German manufacturers
will need to adapt their marketing strategies to better satisfy the needs of Chinese customers.
This may be accomplished by using cultural references to Chinese culture in their
advertisements. Since Mercedes’ expansion in China has been gradual, a joint project with the
brilliant group has assisted in the introduction of a new model with revolutionary technology into
the marketplace, which has also aided the company’s growth. Thus, the company can partner
with well-known individuals and organisation to increase product awareness and reach in the
China market. It is necessary for the German automobile sector to be more inventive in China,
because purchasers put more emphasis on brand awareness and a pleasurable car experience. It is
possible for German automobile manufacturers to stay up with its competitors in China by
strengthening their marketing approach.
A particular brand experience is sought for by Chinese consumers when they purchase a car. The
major limitation of the research was the impact of Covid-19 since it was not easy to collect
information physically and that has been negative for business growth since the impact of Covid19 changed the consumers behaviour. According to a research, China is a bigger market than the
United States, despite the fact that sales for every brand are expected to decline in 2020.
According to the results data, Volkswagen’s Chinese sales will account for 40 percent of the
17
firm’s revenue growth, necessitating cooperation with local recognised brands as well as greater
marketing and investment in the electronic vehicle sector in order to improve sales.
18
References
Bartikowski, B. and Cleveland, M., 2017. “Seeing is being”: Consumer culture and the
positioning of premium cars in China. Journal of Business Research, 77, pp.195-202.
Bartikowski, B., Fastoso, F. and Gierl, H., 2019. Luxury cars Made-in-China: Consequences for
brand positioning. Journal of Business Research, 102, pp.288-297.
Barton, D., 2013. The rise of the middle class in China and its impact on the Chinese and world
economies. US-China Economic Relations in the Next 10 Years: Towards Deeper Engagement
and Mutual Benefit, pp.138-148. ( Barton, 2013)
Barton, D., 2013. The rise of the middle class in China and its impact on the Chinese and world
economies. US-China Economic Relations in the Next 10 Years: Towards Deeper Engagement
and Mutual Benefit, pp.138-148.
Blackwelder, B., Coleman, K., Colunga-Santoyo, S., Harrison, J.S. and Wozniak, D., 2016. The
volkswagen scandal.
Car Sales Statistics, 2020. Global: German Luxury Car Sales Worldwide, USA and China
Accessed on 13th March 2022, Available at https://www.best-selling-cars.com/global/2020-fullyear-global-mercedes-benz-and-smart-sales-worldwide/
Car sales statistics, 2020. Global: Volkswagen Brand Worldwide Car Sales by Model and
Country.
Accessed
on
13th
March
2022,
Available
at
https://www.best-selling-
cars.com/brands/2021-full-year-global-volkswagen-brand-worldwide-car-sales-by-model-andcountry/
Chen, Q., 2018. Research on Marketing Strategy of Self-owned Brand Automobiles.
(Cheng,2018)
Chevalier, M. and Lu, P.X., 2015. Luxury China: Market opportunities and potential. John
Wiley & Sons.
Chevalier, M. and Lu, P.X., 2015. Luxury China: Market opportunities and potential. John
Wiley & Sons. Dewalska-Opitek, A., 2020, October. Customers’ value co-creation in automotive
19
sector–the case studies of BMW Co-creation Lab and Volkswagen’s People’s Car Project in
China. In International Conference on Transport Systems Telematics (pp. 231-245). Springer,
Cham.
Dewalska-Opitek, A., 2020, October. Customers’ value co-creation in automotive sector–the
case studies of BMW Co-creation Lab and Volkswagen’s People’s Car Project in China.
In International Conference on Transport Systems Telematics (pp. 231-245). Springer, Cham.
Gao, S. and Krogstie, J., 2015, October. Understanding business models of mobile ecosystems in
China: a case study. In Proceedings of the 7th International Conference on Management of
computational and collective intElligence in Digital EcoSystems (pp. 64-71).
Guo, J., 2021, December. Analysis of the Marketing Strategies of Luxury Cars in China—
Porsche as an Example.In 2021 3rd International Conference on Economic Management and
Cultural Industry (ICEMCI 2021) (pp. 953-956).Atlantis Press.
Hammarberg, K., Kirkman, M. and de Lacey, S., 2016. Qualitative research methods: when to
use them and how to judge them. Human reproduction, 31(3), pp.498-501.
He, Q., 2015. The Chinese Consumer Behaviour and Marketing Research Based on Volkswagen,
China. (Heq,2015)
Hu, Z. and Yuan, J., 2018. China’s NEV market development and its capability of enabling
premium NEV: Referencing from the NEV market performance of BMW and Mercedes in
China. Transportation Research Part A: Policy and Practice, 118, pp.545-555.( Hu&Yuan,
2018)
Hu, Z. and Yuan, J., 2018. China’s NEV market development and its capability of enabling
premium NEV: Referencing from the NEV market performance of BMW and Mercedes in
China. Transportation Research Part A: Policy and Practice, 118, pp.545-555.
Jiang, X., 2018. Improving the Cross-Cultural Marketing Strategy of Chinese Atomobile
Industry: Case Company: BMW.
Johnston, M.P., 2017. Secondary data analysis: A method of which the time has
come. Qualitative and quantitative methods in libraries, 3(3), pp.619-626.
20
Kozleski, E.B., 2017. The uses of qualitative research: Powerful methods to inform evidencebased practice in education. Research and Practice for Persons with Severe Disabilities, 42(1),
pp.19-32.
Lee, J., Kim, J., Kim, J. and Choi, S., 2021. Why Localization Is Necessary as a Business
Strategy in Emerging Markets: The Case Comparison of Hyundai and Volkswagen. Journal of
Open Innovation: Technology, Market, and Complexity, 7(3), p.190.
Lee, J., Kim, J., Kim, J. and Choi, S., 2021. Why Localization Is Necessary as a Business
Strategy in Emerging Markets: The Case Comparison of Hyundai and Volkswagen. Journal of
Open Innovation: Technology, Market, and Complexity, 7(3), p.190.
Li, L., 2018. China’s manufacturing locus in 2025: With a comparison of “Made-in-China 2025”
and “Industry 4.0”. Technological Forecasting and Social Change, 135, pp.66-74.
Martins, F.S., da Cunha, J.A.C. and Serra, F.A.R., 2018.Secondary data in research–uses and
opportunities. PODIUM sport, leisure and tourism review, 7(3).
Mikhailova. V.,2020. Volkswagen in China: Market analysis of the nation’s #1 car brand. Daxue
consulting. Accessed on 13th March 2022, Available at https://daxueconsulting.com/volkswagenin-china/
Notar, B. E. 2016. Car crazy: The rise of car culture in China. In Cars, Automobility and
Development in Asia (pp. 162-180). Routledge.
Sha, S., Huang, T. and Gabardi, E., 2014. Upward Mobility: The future of Chinas Premium Car
Market. McKinsey Automotive & Assembly Practice in Greater China, available online at
http://www. mckinseychina. com/2013/03/07/upward-mobility-the-future-of-chinas-premium-carmarket/, accessed, 10(6), p.2013.( Sha, Huang &Gabardi,2014)
YINGZE, Z., 2020, November. Analysis on Audi’s Marketing Strategy in China. In 2020 5th
International Conference on Modern Management and Education Technology (MMET
2020) (pp. 119-125). Atlantis Press. (YINGZE,2020)
21
Yingze, Z., 2020, November. Analysis on Audi’s Marketing Strategy in China. In 2020 5th
International Conference on Modern Management and Education Technology (MMET
2020) (pp. 119-125). Atlantis Press.
22
Structure of the Written Report: (4000 words ± 20%)
The Written Report should include the following sections:
Section 4: Research Findings and discussion (1200-1500 words)
My recommended structure is this:
4.1 Introduction
4.2 Research question 1
4.2.1 Findings: This section should present and describe your key research findings and
include, as appropriate, graphics to support and aid the reader. You should be using a
combination of different sources to answers your research questions.
4.2.2 Discussion: In this section you should consider how the research data you have
collected helped you answer your research questions and how your findings link to other
literature that you used in your literature review. Here are some questions that will help you
decide what to write:
Commenting on the findings
•
•
•
•
•
What conclusions can you draw from your findings?
What are the implications/impacts of your findings? What do the findings mean?
Why are the findings important?
Can you make any recommendations based on your findings?
Can you think of any possible reasons for the trends, importance for the industry,
economy, society, et … ?
Some Useful language
The fact that A is larger than B suggests that … (interpretation/speculation)
These results mean that … (implication)
The implication of … might be that … (implication/speculation)
These results show that … (implication)
Therefore … (implication)
It might be said that some of the reasons … (interpretation/speculation)
Linking to your literature review: If sources in your literature review can be linked to your
findings, you should bring this into the discussion. Think about these questions:
•
•
Are any of your findings supported by sources in your literature review? (are they
similar to ideas you included in your literature review?) If yes, mention this.
Do any of your findings disagree with authors in your literature review? If yes,
mention this.
•
Do any of your findings add new information about areas you wrote about in your
literature review? If yes, explain this.
Some Useful language
Supporting these conclusions are *author name* (year), who writes that …
Similar conclusions were drawn by *author name* (year)
In previous studies, *author name* (year) pointed out …
Similarly, *author name* (year) claimed / wrote / stated / speculated / concluded that (choose
the correct verb)
4.3 Research question 2: see above
4.3.1 Findings: see above
4.3.2 Discussion: see above
4.4 Research question 3: see above
4.4.1 Findings: see above
4.4.2 Discussion: see above
Section 5: Conclusion/Recommendations (~500 words)
This section should summarise the key findings for your project and reflect on how these
could be useful in your chosen field and also recommend how this topic can be further in the
future.
Section 7: Reference List (excluded from the word count)
In this section you should include a list of all sources you have referred to in the report, in
accordance with the APA or Harvard referencing conventions.
Section 8: Appendices (if using – this isn’t included in the word count)
This section may include a copy of a reflective diary about your research process and also
other documents such as a copy of your research instrument(s), a copy of your informed
consent (if applicable), etc.
1
“I confirm that this assignment is my own work. Where I have referred to academic
sources, I have provided in-text citations and included the sources in the final reference
list.”
PM600
GD10
Research Project
Literature Review &Research Question
Ruth Anna Farragher
Xianghan Meng
P314971
14.04.2022
2
The Impact of Internet marketing on the Behavior of Consumers
Literature review
Entrepreneurs engage in internet marketing when they use digital channels like search
engines and social media to send promotional messages to consumers. Individuals or groups are
all considered in the study of consumer behaviour in the context of the actions related to the
purchase, such as the customer journey, how consumers use and discard goods and services, and
consumers’ preferences (Dilham et al., 2018). Web-based marketing is capable of influencing
potential clients at every stage of their purchasing process. Internet marketing is essential to
business operations since entrepreneurs are able to attract and retain consumers despite the
difference in location.
Positive impacts of internet marketing on the behaviour of consumers
Information obtained from articles used is this section is compared to evaluate the positive
impacts of internet marketing on the behavior of consumers. Though the articles focus on the
positive impacts of internet marketing on the behavior of consumers, the research was carried out
from different places at different times. The sources used depict on how customer research skills
through the internet have improved dramatically in recent years when making a buying
decisions. According to Bala and Verma, consumers are becoming more knowledgeable and
aware as internet marketing allows them to use a more critical approach to making decisions
(Bala and Verma, 2018). Likely, business owners face an overwhelming amount of information
when they try to sell their items on the Internet. The article has several strengths in that is
describes how consumers can now explore and consider different products on the internet before
making a choice of what they want to purchase, making the buying experience easier for
3
everyone. Since there is so much data available online, consumers have even been able to test out
several different products before making a selection. The same technology that has allowed
marketers to influence consumers purchasing decisions has also given people tremendous power
over their lives. Because of the openness with which companies are eager to engage with their
consumers, customers have profited from internet marketing by better understanding the services
and products they purchase.
Every consumer wants to feel like they belong to something bigger than themselves. They
don’t pass up an opportunity to interact with their favourite brand when the occasion presents
itself. Compared to Bala and Verma, Grubor and Jakša state that consumer interaction has
increased significantly due to the extensive usage of mobile technologies and the internet
(Grubor and Jakša, 2018). The article depicts that anyone with an internet connection may utilize
social networking services. As a result of these initiatives, consumers are actively engaging with
businesses on social media and consumer forums. It is a strength how the article by Grubor and
Jakša describes the power of internet marketing to empower consumers to make more informed
choices about their favourite brands and play a role in their companies’ reputation-building is of
great advantage. According to Peng, consumers may connect with and learn more about their
company of interest on various review websites and social media platforms (Peng, 2020). They
may now quickly convey their ideas to the companies that they support. From the research, the
author was able to make a conclusion that companies that respond to consumer feedback as
quickly as possible notice an increase in customer engagement and revenue in the long run.
The usage of digital advertising has bolstered intuitive purchasing. Impulsive purchasing
decisions are those made nearly quickly before the transaction is completed. Peng’s discussion is
similar to Sabaitytė and Davidavičienė since they state that if consumers are going to buy
4
anything on the spur of a moment, they are going to do it regardless of whether or not they have
planned their purchase or picked out the goods they want to buy in advance (SabaitytÄ— and
Davidavičienė, 2018). The authors depict that digital marketers use this well-known tendency to
affect customers in a positive way. Businesses utilize online advertising to present exciting deals,
discounts and offer that increase their interest to draw in consumers. Brands use social media and
third-party websites to promote their best deals on a regular basis, which has an influence on
consumers’ purchase decisions.
Negative impacts of internet marketing on the behaviour of consumers
Alternatively, consumers tend to have a hard time keeping their brand loyalty because of
internet marketing. Until internet marketing, customers were usually loyal to a certain brand.
They tended to stick with products and brands they were already familiar with most of the time.
In addition, this was because they were not exposed to the vast array of goods and services that
they take for granted currently. According to Bartosik-Purgat and Grewal et al., customers in the
current market are searching for products that provide more value for their money (Grewal et al.,
2019). However, they still take into account other elements, such as customer service, brand
value, discounts, and other incentives. Customers develop to have more choices as the industry
develops and more companies provide greater features and deals (Bartosik-Purgat, 2019). They
show less reluctance to transition from their favourite brands to completely new ones. As far as
client loyalty is concerned, it is appropriate to infer that internet marketing has a negative impact.
The only thing it accomplished was to grab attention. Bartosik-Purgat’s research results support
Grewal et al. findings that loyalty from the consumers is a problem since they can easily move to
a different online brand. Likely, Bartosik-Purgat states that communication can be a challenge
5
since customers expect instant reply’s after sending their comments to a brand’s platform
(Bartosik-Purgat, 2019). Delays can lead to loosing potential customers.
With technology improvements, consumers have become impatient since they have a twofold rise in expectations for fast and efficient services. Consequently, they obtain emotional and
real feedback on their products and services via online customer evaluations and forums. It is
unacceptable for services and facilities to fall short of what is expected. For the most part,
consumers look for speedy responses from businesses when they contact them with questions or
concerns. According to Buchanan et al. and Ariffin et al., a brand’s online reputation takes a hit
when consumers do not get what they were promised, which may be seen in public forums
(Ariffin et al., 2018). They get a lot of information from digital marketing, and that knowledge
has a big influence on their purchasing decisions. There has been an unprecedented rise in
consumer expectations as a result of services like hassle-free returns and next day delivery.
Buchanan et al. depicts that internet marketing might lead to a negative influence to the young
people (Buchanan et al., 2018). Internet marketing can encourage teenagers to order products
such as drugs which are harmful for their consumption.
Recommendations to improve the positive impact of internet marketing on the behaviour of
consumers
Appel et al. and Chaffey and Ellis-Chadwick denote that consumers expect an increasingly
tailored shopping experience due to internet marketing. People today don’t want to spend a lot of
time doing research and then going out and getting what they want (Appel et al., 2020). As a
result of this shift in consumer behaviour, businesses should modify their online marketing and
branding strategies to give a more personalized experience to all consumers by curating
6
customized content. A brand’s consumers will be able to purchase products that are tailored to
their exact needs.
Word-of-mouth advertising is critical in the corporate world. Using it, brands and
customers may conduct business more easily. Word of mouth is the most potent influencer, and
it has a direct impact on customer behaviour. Many consumers want to know what other people
think of a product or service before purchasing it (Chaffey and Ellis-Chadwick, 2019). A
consumer’s desire to tell others about their experience via social media matters a lot to
businesses. As social media platforms progress, consumers will be able to broadcast their views
to a larger group of people. Individuals will gain a new perspective on consumption and
marketing via reading blogs, commenting on a sponsored piece and reading customer evaluations
on brand pages. The ability to keep a presence on the internet will also assist businesses. Any
brand’s sales may be significantly impacted by word-of-mouth promotion. In addition,
consumers will have more control over their purchasing decisions as a result of online marketing.
By evaluating the online reviews, it is clear that consumers are becoming more
discriminating when it comes to purchasing products and services. It’s no longer enough to be
well-known on social media, to have a high Google ranking, or to have an impressive website.
This is due to the fact that consumers might easily switch to a competition if a business owner
does not pay attention to their online experience. As a result, companies will see a rise in
consumer trust when customers interact with them online and offline. Consumers are more likely
to click on an advertisement for a brand they are already familiar with than an unfamiliar one.
They depend on other customers’ opinions, and they’re being affected by what they read when
performing their internet searches (Wibowo et al., 2020). In the future, reputation management is
critical for any business, no matter how little, to maintain a polished online presence and offer
7
excellent quality. An outstanding consumer service experience results in positive assessments
that strengthen a brand while enhancing consumer loyalty and encouraging customers to spend
money.
Reflection on research questions
Research question 1: How can entrepreneurs impact customers’ purchase decision process
through the internet?
It is vital to recognize the various ways business owners can impact consumer decision
making process in purchasing as it can serve as a competitive advantage when starting a business
in a developing market (Bala and Verma, 2018). Small business owners can learn various ways
of attracting and retaining customers. Entrepreneurs are in a position to get feedback on their
dealings and easily implement changes to match the consumers’ desires. Likely, entrepreneurs
and company owners might implement internet marketing to increase profits in their businesses.
Research question 2: What is the ideal internet marketing strategy?
The ideal internet marketing strategy is essential to business owners since they enlighten
entrepreneurs on what should be expected (Grewal et al., 2019). As a result, it is easier for them
to implement changes, prevent negative impacts from affecting productivity extensively. In
addition, business owners are able to understand the most effective ways of handling potential
customers through internet marketing.
Research question 3: What is the association between internet marketing and the behavior of
consumers?
8
The primary goal of any business operation is to increase profit levels. Therefore, it is
significant to apprehend the positivity that internet marketing contributes to the behaviour of
consumers purposely to enhance the use of internet marketing (Appel et al., 2020). This includes
considering the factors or services that can be offered to increase the present state of internet
marketing, such as increasing consumer trust purchasing power.
9
References
Appel, G., Grewal, L., Hadi, R. and Stephen, A.T., 2020. The future of social media in
marketing. Journal of the Academy of Marketing Science, 48(1), pp.79-95.
Ariffin, S.K., Mohan, T. and Goh, Y.N., 2018. Influence of consumers’ perceived risk on
consumers’ online purchase intention. Journal of Research in Interactive Marketing.
Bala, M. and Verma, D., 2018. A critical review of digital marketing. M. Bala, D. Verma (2018).
A Critical Review of Digital Marketing. International Journal of Management, IT &
Engineering, 8(10), pp.321-339.
Bartosik-Purgat, M. (2019). Digital marketing communication from the perspective of individual
consumers: A cross-country comparison. Entrepreneurial Business and Economics
Review, 7(3), 205-220.
Buchanan, L., Kelly, B., Yeatman, H., & Kariippanon, K. (2018). The effects of digital
marketing of unhealthy commodities on young people: a systematic
review. Nutrients, 10(2), 148.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing: strategy, implementation &
practice. Pearson UK.
Dilham, A., Sofiyah, F.R. and Muda, I., 2018. Internet marketing affect the customer loyalty
level with brand awareness as intervening variables. International Journal of Civil
Engineering and Technology, 9(9), pp.681-695.
10
Grewal, L., Stephen, A.T. and Coleman, N.V., 2019. When posting about products on social
media backfires: the negative effects of consumer identity signalling on product interest.
Journal of Marketing Research, 56(2), pp.197-210.
Grubor, A. and Jakša, O., 2018. Internet marketing is a business necessity. Interdisciplinary
Description of Complex Systems: INDECS, 16(2), 265-274.
Peng, Y.P., 2020. The Influence of Social Network Service and Experiential Marketing on
Internet Marketing. International Journal of e-Education, e-Business, e-Management and
e-Learning, 10(3), pp.222-228.
Sabaitytė, J. and Davidavičienė, V., 2018. The analysis of internet marketing research
directions. Маркетинг і цифрові технології, 2(1), pp.7-20.
Wibowo, A., Chen, S.C., Wiangin, U., Ma, Y. and Ruangkanjanases, A., 2020. Customer
behaviour as an outcome of social media marketing: The role of social media marketing
activity and customer experience. Sustainability, 13(1), p.189.
Chapter Three: Research Methodology
3.1 Introduction
The objective of this research is to find out the impact of internet marketing on consumers’
behavior. The research specifically seeks to find out ways entrepreneurs can impact on the
purchasing power of customers through the use of internet marketing. It also attempts to
establish the ideal strategies towards internet marketing. Finally, the research makes an effort to
identify the association between customers’ behavior and internet marketing. This chapter
discusses the methodological approach towards the research. Research methodology refers to the
systematic collection of information and data pertaining to a given topic (Rajasekar et al., 2006).
3.2 Research Design
3.2.1 Research Approach
This is a social science research report that seeks to investigate the influence of internet
marketing on the behavior of consumers. Therefore, positivist and deductive approach to
research are employed. The study is based on three hypothesis which are: the use of internet
marketing influences consumers’ purchasing power; there are ideal strategies for internet
marketing, and that internet marketing positively influences customers behavior. The generation
of these hypotheses is the first step into the development of the methodology.
Positivist approach towards research is basically applicable for scientific research whereby
human behavior is analyzed. This research philosophy is thus better than interpretivist approach
that uses non-scientific combined with qualitative methods in analyzing human behavior.
Deductive approach is also applicable in this research due to scientific nature of the study, and
the reliance on past studies and hypotheses to understand the underlying phenomena.
Secondary data is the main form of data to be used for this research. Important sources of
secondary data to be used in this research include peer reviewed academic articles. Therefore, the
studies will provide qualitative and quantitative data. Since this area of study is generally new in
research studies, the researcher will focus on studies associated with internet marketing and
consumer behavior done across different geographical locations. The focus on studies from
different geographical locations is important as it will increase the possibility of different
1
behavior patterns. Secondary data is highly feasible in terms of widespread collection regardless
of the geographical locations.
3.2.2 Data Collections
The data to be collected in this study will be secondary based on scholarly journal articles. These
sources will be obtained from the university’s online library, supplemented by online libraries.
The search terms will be in such a way that the general objective as well as the specific
objectives of the study. The three research questions will provide the key search terms as shown
in the tables 1 to 3 below:
Table 1: Research Question 1 search terms and filters
Research Question 1: How can entrepreneurs impact customers’ purchase decision
process through the internet?
“entrepreneurs” and “customer” and “purchase”
“internet ads” and “consumer behavior”
“internet” and “buying decision”
Year of publication: 2017 to 2022
Table 2: Research question 2; Research Question 2 search terms and filters
Research Question 2: What is the ideal internet marketing strategy?
“ideal” and “internet marketing ”
“ideal” and “internet” and “marketing”
“categories” and “internet” and “marketing”
“ranking” and “internet” and “marketing” and “strategies”
Years of publication: 2017 to 2022
2
Table 3: Research question 3; search terms & filters
Research Question 3: What is the association between internet marketing and the
behavior of consumers?
“internet marketing” and “positive/negative behavior”
“online marketing” and “positive/negative purchase”
“paid ads” and “brand loyalty” and “purchase behavior”
Year of publication: 2017 to 2022
Once the scholarly articles are obtained, they will then be further screened on the basis of the
titles and abstracts to ascertain that only directly linked to the search topic are used. In addition,
articles without important relevant data will be dropped from the analysis. Although some
articles might arise during the search process, they will only be used if they are peer reviewed.
3.2.3 Data analysis
The first step will be to the extraction of quantitative and qualitative data in terms of the journal
article and the supporting available documents available digitally. These data will then be
tabulated in an excel file. Manipulation of the tabulated data will be done to ensure ease in
comparison. The entities of selection will be used in creating comparison graphs due to the ease
of giving clear and quality images for the readers. It will also be critical to avoid errors as much
as possible.
3.3 Critical Analysis of Methodology
This research methodology will draw inspiration from a study by Appel et al., (2020). The
benchmark case study methodology is a research on future of social media in the marketing
function. The research purely relied on secondary data from all secondary data from scholarly
articles. The article, however, combined qualitative and quantitative data in the analysis process.
More studies and review of methodologies will be considered in this research to provide clearer
perspective on the methodology approach.
3
3.4 Conclusion
This chapter has discussed the design of the study, data collection, and analysis of the data. The
extraction of the data and its manipulation based on peer reviewed journals, it is possible to
provide reliable data and hence findings. The findings from the analysis will be discussed in
chapter four.
4

Purchase answer to see full
attachment

  
error: Content is protected !!