Chinese Cross-Border Shopping: an Empirical Study

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Journal of Hospitality & Tourism Research
DOI: 10.1177/1096348004272178
Journal of Hospitality & Tourism Research 2005; 29; 110
Ho-fuk Lau, Leo Yat-ming Sin and Kelvin Kin-cheung Chan
Chinese Cross-Border Shopping: An Empirical Study http://jht.sagepub.com/cgi/content/abstract/29/1/110 The online version of this article can be found at:
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CHINESE CROSS-BORDER SHOPPING:
AN EMPIRICAL STUDY
Ho-fuk Lau
Leo Yat-ming Sin
Kelvin Kin-cheung Chan
The Chinese University of Hong Kong
Shopping is one of the most enjoyable leisure-time activities for many tourists. It is, for some destinations, the primary reason for tourism. This article introduces a conceptual model on cross-border shopping built on the extant literature of outshopping, cross-border shopping, and border travel. The authors incorporate macro- and microanalytical factors that influence cross-border shopping behavior. It is hypothesized that market and consumer characteristics (i.e., macro and micro factors) affect cross-border shopping. The model has been tested with data collected from1,000

Citations: Downloaded from http://jht.sagepub.com at Universiteitsbibliotheek on July 7, 2008 J1LO0aU.u1 R1eN7t 7aA/l.L1/0 OC9F6H 3HIN4O8ES0SP0EI4T A2C7LR2IOT17YS8 S&- BTOORUDREISRM S RHEOSPEPAIRNCGH Previous studies show that for some destinations, shopping is one of the primary elements in tourism (Timothy & Butler, 1995) cities within the same country for necessities, fashions, or big-ticket items (Herrmann & Beik, 1968; Lumpkin, Hawes, & Darden, 1986; Riecken & Yavas, not explain cross-border shopping at all adequately (Goodchild, 1991; Hawes & Lumpkin, 1984; Huff, 1964; Papadopoulos, 1980; Piron, 2002; Samli & Uhr, 1974; Timothy & Butler, 1995; Wang, 2004). Downloaded from http://jht.sagepub.com at Universiteitsbibliotheek on July 7, 2008 Clark (1994) developed a conceptual model, incorporating the major variables of store-location-choice models of outshopping (Converse, 1949; Huff, 1964; Reilly, 1931), with variables unique to cross-border shopping, such as government studying cross-border shopping, Clark (1994) tried to propose a “general picture of secondary boundary effects” (p shoppers (Bygvrå, 1998; Piron, 2002; Sullivan&Kang, 1997; Timothy& Butler, 1995; Wang, 2004) 1998; Piron, 2002; Sullivan & Kang, 1997; Timothy & Butler, 1995; Wang, 2004) opportunities for retailers on both sides of the border. It was estimated that about 80% of Canadians live within 100 miles of the United States (Clark, 1994) estimated leakage from the Canadian economy because of cross-border shopping may be as high as Canadian $10 billion per annum (Clark, 1994) hand, the situation may have reversed when the exchange rate of Canadian dollars softened (Sullivan & Kang, 1997) in some countries; for example, Germans and Belgians venture to Luxembourg and Netherlands for lower-priced consumer goods (Rohwedder, 1994) milk and cheese, and about $100 million francs on cooking oil (Rohwedder, 1994) the border town of Malaysia, for shopping, recreation, and food (Piron, 2002). This huge drainage of retail sales had become a serious concern of the Singaporean government (Piron, 2002) Hong Kong, 2002). The estimated spending of Hong Kong residents on shopping in Shenzhenwas about U.S Census and Statistics Department, 2002). Downloaded from http://jht.sagepub.com at Universiteitsbibliotheek on July 7, 2008 exchange rates (Crawford, Smith,&Tanner, 1999; Ferris, 2000; Gibbons &Fish, 1987) or on consumer characteristics and motivations of cross-border shoppers (Piron, 2002; Sullivan & Kang, 1997) works were focused on the U.S. border, that is, with Canada (Clark, 1994; Di Matteo&Di Matteo, 1996; Evans, Lane,&O’Grady, 1992; Gehrt&Carter, 1990; Sullivan & Kang, 1997; Timothy & Butler, 1995) and Mexico (Dawson & Garland, 1983; Diehl, 1983; Merrit & McCullough, 1985; Prock, 1983) or countries