Chinese Cross-Border Shopping: an Empirical Study

Topics: Hong Kong, Retailing, Hong Kong Island Pages: 39 (11832 words) Published: September 22, 2008
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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
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Citations (this article cites 29 articles hosted on the
© 2005 ICHRIE. All rights reserved. Not for commercial use or unauthorized distribution. 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 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 HongKong residents. Findings of this study confirmed that cross-border shopping behavior was affected by the macro-environmental factors (market characteristics) of the shopping area and socioeconomic as well as motivational characteristics of the consumer (microanalytical factors). On the other hand, the impact of traveling distance between the tourist’s place of residence and the shopping area on cross-border shopping was found to be nonsignificant. Implications for retailers and tourism-related institutions are discussed.

KEYWORDS: cross-border shopping; outshopping; Chinese
Shopping is one of the most enjoyable leisure-time activities for many tourists. Previous studies show that for some destinations, shopping is one of the primary elements in tourism (Timothy & Butler, 1995). During the past 40 years, there have been numerous studies conducted on out-of-hometown shopping. These studies have mostly focused on consumers from small towns traveling to larger cities within the same country for necessities, fashions, or big-ticket items (Herrmann & Beik, 1968; Lumpkin, Hawes, & Darden, 1986; Riecken & Yavas, 1988). Theories have been established, over time, on the choice of retail location and on the identification of outshoppers. Despite the numerous extensions and elaborations to such theories, most of the studies were either focused on macroenvironmental factors or microconsumer characteristics of outshopping and did 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).

Journal of Hospitality & Tourism Research, Vol. 29, No. 1, February 2005, 110-133 DOI: 10.1177/1096348004272178
© 2005 International Council on Hotel, Restaurant and Institutional Education 110
© 2005 ICHRIE. All rights reserved. Not for commercial use or unauthorized distribution. Downloaded from http://jht.sagepub.com at Universiteitsbibliotheek on July 7, 2008...


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).
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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
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