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

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Original languageEnglish
Pages (from-to)47-66
Journal / PublicationMultinational Business Review
Issue number2
Online published17 Jun 2006
Publication statusPublished - 2006


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.

Research Area(s)

  • China, Consumer behaviour, Consumer sentiment, Social institutions

Bibliographic Note

Research Unit(s) information for this publication is provided by the author(s) concerned.