Marketers in China have long used the government's system of city tiers as a de facto segmentation tool. Previous research shows that this has led to assumptions on the part of advertisers about differing levels of conservatism and uncertainty avoidance between city tiers. This in turn has resulted in advertisers’ reluctance to invest in creative advertising, particularly when it is directed at consumers in low tier Chinese cities. This paper investigates potential differences in consumer response to advertising creativity between high (Tier 1–2) and low (Tier 5–6) Chinese cities; the moderating effect of uncertainty avoidance on Chinese consumer processing of creative ads; and the efficacy of tiers as a means of segmenting the complex Chinese marketplace. Findings reveal that regardless of tier, Chinese consumers respond positively to advertising that engages their emotions. Additionally, while Chinese consumers rank high in uncertainty avoidance, this does not moderate their response to creative ads.
AakerJ.L., and MahswaranD., 1997. The effect of cultural orientation on persuasion. J. Consum. Res.24 (3), 315–328.
2.
AdairW.L., and XiongT.X., 2018. How Chinese and Caucasian Canadians conceptualize creativity: the mediating role of uncertainty avoidance. J. Cross Cult. Psychol.49 (2), 223–238.
3.
AhaniA., NilashiM., IbrahimO., SanzogniL., and WeavenS., 2019. Market segmentation and travel choice prediction in spa hotels through TripAdvisor's online reviews. Int. J. Hosp. Manag.80 (July), 52–77.
4.
AmabileT.M., 1983. The social psychology of creativity: a componential conceptualization. J. Pers. Soc. Psychol.45 (2), 357–376.
5.
AngL., and EisendM., 2018. Single versus multiple measurement of attitudes: a meta-analysis of advertising studies validates the single-item measure approach. J. Advert. Res.58 (2), 218–227.
6.
AngS.H., LeeY.H., and LeongS.M., 2007. The ad creativity cube: conceptualization and initial validation. J. Acad. Mark. Sci.25 (2), 220–232.
7.
AngS.H., LeongS.M., LeeY.H., and LouS.L., 2014. Necessary but not sufficient: beyond novelty in advertising creativity. J. Mark. Commun.20 (3), 214–230.
8.
AnsariA. and RiasiA., 2016. An investigation of factors affecting brand advertising success and effectiveness. Int. Bus. Res.9 (4), 20–30.
9.
AmabileT.M., BarsadeS.G., MuellerJ.S. and StawB.M., (2005) Affect and creativity at work. Adm. Sci. Q.50, 367–403.
10.
AtsmonY., MagniM., JinA. and LiL., 2012. From Mass to mainstream: Keeping Pace With China's Rapidly Changing consumers. 2012 Annual Chinese Consumer Report, September. McKinsey Insights China.
11.
AtwalG., and BrysonD., 2017. Luxury Brands in China and India. London: Springer.
12.
BaackD.W., WilsonR.T. and TillB.D., 2008. Creativity and memory effects: recall, recognition, and an exploration of non-traditional media. J Advert37 (4), 85–94.
13.
BaackD.W., WilsonR.T., van DesselM.M. and PattiC.H., 2016. Advertising to businesses: does creativity matter?Ind. Mark. Manag.55, 169–177.
BaumannC., HaminH., and YangS.J.S., 2016. Work ethic formed by pedagogical approach: evolution of institutional approach to education and competitiveness. Asia Pacific Bus. Rev.22 (3), 374–396.
16.
BeardenW.O., and NetemeyerR.G., 1999. Handbook of Marketing Scales: Multi-Item Measures For Marketing and Consumer Behavior Research. Thousand Oaks: Sage Publications.
17.
BergkvistL., and RossiterJ.R., 2009. Tailor-made single-item measures of doubly concrete constructs. Int. J. Adv.28 (4), 607–621.
18.
BerlyneD., 1991. Aesthetics and Psychobiology. New York: Appleton-Century Crofts.
19.
BicenP., KamarudinS. and JohnsonW.H.A., 2014. Validating new product creativity in the eastern context of Malaysia. J. Bus. Res.67 (1), 2877–2883.
20.
BilbyJ., ReidM. and BrennanL., 2016. The future of advertising in China: practitioner insights into the evolution of Chinese advertising creativity. J. Advert. Res.56 (3), 245–258.
21.
BilbyJ., and SinhaK., 2017. China: unique approaches to advertising in a globalising world. In Global Advertising Practice in a Borderless World, ed. CrawfordR., BrennanL. and ParkerL., 192–207. London: Routledge.
22.
BilloreA., JayasimhaK.R., SadhA., and NambudiriR., 2020. Divergence or relevance in advertisements: what works in emerging markets? Evidence from Indian consumers, J. Global Mark.33 (1), 1–17.
23.
BrennanL., ParkerL., NguyenD. and AletiT., 2015. Design issues in cross-cultural research: suggestions for researchers. In The Palgrave Handbook of Research Design in Business and Management, 2nd Ed., ed. StangKenneth D., 81–101. New York: Palgrave Macmillan US.
ChenH., and TaylorR.E., 2012. Message strategies of Chinese award-winning print advertisements: a longitudinal analysis using Taylor's six-segment message strategy wheel. J. Int. Commun.30 (3).
31.
ChenH., WangR., and LiangX., 2019. Americanized or localized: a qualitative study on Chinese advertising practitioners' perceptions of creativity and strategy in the digital age. Global Media China4 (2), 233–253.
32.
ChenJ., and SmithR.E., 2018. The boundaries for ad creativity: effects of type of divergence and brand processing and responses. J. Brand Manag.25 (6), 561–576.
33.
ChenJ., YangX. and SmithR.E., 2014. The effects of creativity on advertising wear-in and wear-out. J. Acad. Mark. Sci.44 (3), 334–349.
34.
ChinW.W., 1998. The partial least squares approach to structural equation modeling. In MarcoulidesG. A. (Ed.), Modern Methods for Business Research. Mahwah, NJ.
35.
ChinW.W. and NewstedP.R., 1999. Structural equation modeling analysis with small samples using partial least squares. Stat. Strat. Small Sample Res.1 (1), 307–341.
ChoiS., and KimM., 2008. A comparative study of perceptions toward “scratch and save” promotions in Canada and Korea. J. Product Brand Manag.17 (4), 265–271.
CohenJ.B., PhamM.T. and AndradeE.B., 2006. The nature and role of affect in consumer behavior. In Handbook of Consumer Psychology, (Ed.) HaugtvedtC.P., HerrP., and KardesF.R., 297–348. Mahwah, NJ: Lawrence Erlbaum Inc.
CuiG., LiuH., YangX. and WangH., 2013. Culture, cognitive style and consumer response to informational vs. transformational advertising among East Asians: evidence from the PRC. Asia Pacific Bus. Rev.19 (1), 16–31.
43.
DavisL., WangS., and LindridgeA., 2008. Culture influences on emotional responses to on-line store atmospheric cues. J. Bus. Res.61 (8), 806–812.
44.
DeitzG.D., MyersS.W. and StaffordM.R., 2012. Understanding consumer response to sponsorship information: a resource-matching approach. Psychol. Mark.29 (4), 226–239.
De MeulenaerS., De PelsmackerP., and DensN., 2015. Have no fear: how individuals differing in uncertainty avoidance, anxiety, and chance belief process health risk messages. J. Advert.44 (2), 114–125.
FornellC. and LarckerD.F., 1981. Evaluating structural equation models with unobservable variables and measurement error. J. Mark. Res.18 (February), 39–50.
53.
FornellC. and BooksteinF.L., 1982. Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. J. Mark. Res.19 (4), 440.
GeuensM., De PelsmackerP. and FaseurT., 2011. Emotional advertising: revisiting the role of product category. J. Bus. Res.64 (4), 418–426.
57.
GuilfordJ.P., 1967. Creativity: yesterday, today and tomorrow. J. Creat Behav.1 (1), 3–14.
58.
GründlJ., and AichholzerJ., 2020. Support for the populist radical right: between uncertainty avoidance and risky choice. Polit. Psychol.77 (1), 90–119.
59.
HairJ.F., BlackW.C., BabinB. and AndersonR.E., 2014. Multivariate Data Analysis. 7 ed.Harlow: Pearson Education.
60.
HartnettN., RomaniukJ. and KennedyR., 2016. Comparing direct and indirect branding in advertising. Austr. Mark. J.24 (1), 20–28.
61.
HeathR., BrandtD. and NairnA., 2006. Brand relationships: strengthened by emotion, weakened by attention. J. Advert. Res.46 (4), 410–419.
62.
HeathR., NairnA., and BottomleyP., 2009. How effective is creativity? Emotive content in TV advertising does not increase attention. J. Advert. Res.49 (4), 450–463.
63.
HeineK., AtwalG., and HeJ., 2018. Managing country-of-origin affiliations for luxury brand-building in China. Austr. Mark. J.27 (1), 14–23.
64.
HenselerJ., RingleC.M. and SarstedtM., 2015. A new criterion for assessing discriminant validity in variance-based structural equation modeling. J. Acad. Mark. Sci.43 (1), 115–135.
65.
HenselerJ., DijkstraT.K., SarstedtM., RingleC.M., DiamantopoulosA., StraubD.W., KetchenD.J.Jr., HairJ.F., HultG.T.M. and CalantoneR.J., 2014. Common beliefs and reality about PLS. Organ Res. Methods17 (2), 182–209.
66.
HirschmanE.C., 1983. Consumer intelligence, creativity, and consciousness: implications for consumer protection and education. J. Public Policy Mark.2, 153–170.
67.
HofstedeG., 2001. Culture's consequences: Comparing values, behaviors, Institutions and Organizations Across Nations. Thousand Oaks: Sage Publications.
68.
HofstedeG., and BondM.H., 1988. The Confucius connection: from cultural roots to economic growth. Organ. Dyn.16 (4), 5–21.
HouseR.J., 2004. Culture, leadership, and organizations: The GLOBE Study of 62 Societies. Thousand Oaks: Sage Publications.
71.
HuL., and BentlerP.M., 1999. Fit indices in covariance structure modeling. Psychol. Methods3 (4), 424–453.
72.
HuangY.H., BedfordO., and ZhangY., 2018. The relational orientation framework for examining culture in Chinese societies. Cult. Psychol.24 (4), 477–490.
73.
HuangY., and QianL., 2018. Consumer preferences for electric vehicles in lower tier cities of China: evidences from South Jiangsu region. Transp. Res. Part D (63), 482–497.
74.
JungJ.M., and KellarisJ.J., 2004. Cross-national differences in proneness to scarcity effects: the moderating roles of familiarity, uncertainty avoidance, and need for cognitive closure. Psychol. Mark.21 (9), 739–753.
75.
KardesF.R., CronleyM.L., KellarisJ.J., and PosavacS.S., 2004. The role of selective information processing in price-quality inference. J. Consum. Res.31 (2), 368–374.
KoslowS., SasserS.L., RiordanE.A., 2006. Do marketers get the advertising they need or the advertising they deserve? Agency views of how clients influence creativity. Journal of Advertising35 (3), 81–101. doi:10.2753/JOA0091-3367350306.
78.
KostelijkE.J., and AlsemK.J., 2015. Doing Business With China, a Marketing Perspective. Hanze University of Applied Sciences.
79.
KumarV. and GuptaS., 2016. Conceptualizing the evolution and future of advertising. J. Advert.45 (3), 302–317.
80.
LaczniakR.N., MuehlingD.D. and GrossbartS., 1989. Manipulating message involvement in advertising research. J. Advert.18 (2), 28–38.
81.
LeeE.J., and SchumannD.W., 2004. Explaining the special case of incongruity in advertising: combining classic theoretical approaches. Mark. Theory4 (1–2), 59–90.
82.
LeeW.N., and YooJ.J., 2012. Understanding the role of culture in advertising. In Handbook of Research on International Advertising, 20–41. Edward Elgar Publishing.
83.
LélagerC., PolitisD.N., and RomanoJ.P., 1992. Bootstrap Technology and Applications. Technometrics34 (4), 378–398.
84.
LeonardK.M., Van ScotterJ.R., and PakdilF., 2009. Culture and communication: cultural variations and media effectiveness. Adm. Soc.41 (7), 850–877.
85.
LiH., LiA. and ZhaoS., 2009. Internet advertising strategy of multinationals in China: a cross-cultural analysis. Int. J. Adv.28 (1), 125–146.
86.
LiH., DouW., WangG. and ZhouN., 2008. The effect of agency creativity on campaign outcomes: the moderating role of market conditions. J. Advert.37 (4), 109–120.
87.
LiuF., ChengH., and LiJ., 2009. Consumer responses to sex appeal advertising: a cross- cultural study. Int. Mark. Rev.26 (4/5), 501–520.
88.
LiuF., KansoA., ZhangY., and OlaruD., 2019. Culture, perceived value, and advertising acceptance: a cross-cultural study on mobile advertising. J. Promot. Manag.25 (7), 1028–1058.
89.
LiuH.B., McCarthyB., ChenT., GuoS. and SongX., 2014. The Chinese wine market: a market segmentation study. Asia Pacific J. Mark. Logistics26 (3), 430–471.
90.
LiuS., LiangL. and MichelsonE., 2014. Migration and social structure: the spatial mobility of Chinese lawyers. Law Policy36 (2), 165–194.
91.
LiuS., PerryP., MooreC. and WarnabyG., 2016. The standardization-localization dilemma of brand communications for luxury fashion retailers' internationalization into China. J. Bus. Res.69 (1), 357–364.
92.
LiuShuang, SmithJ.R., LieschP.W., GalloisC., RenY., and DalyS., 2011. Through the lenses of culture: chinese consumers' intentions to purchase imported products. J. Cross Cult. Psychol.42 (7), 1237–1250.
93.
LiuZ., HuangS.S., HallakR., and LiangM., 2016. Chinese consumers' brand personality perceptions of tourism real estate firms. Tour. Manag.52 (C), 310–326.
94.
LoE., FangZ., 2013. A deep dive into Chinese lower-tier cities. Admap (June), 1–6.
LowryP.B., and GaskinJ., 2014. Partial least squares (PLS) structural equation modeling (SEM) for building and testing behavioral causal theory: when to choose it and how to use it. IEEE Trans. Prof. Commun.57 (2), 123–146.
97.
MacInnisD.J., and JaworskiB.J., 1989. Information processing from advertisements: toward an integrative framework. J Mark53 (4), 1–23.
98.
MalliaK.L., WindelsK. and BroylesS.J., 2013. The fire starter and the brand steward. J. Advert. Res53 (3), 339–353.
99.
MartinsJ.M., YusufF., BrooksG. and SwansonD.A., 2017. Demographics and market segmentation: china and India. In The Frontiers of Applied demography, (Applied Demography Series) (Ed.) SwansonD.A., 3–19. Cham: Springer International.
100.
McQuarrieE.F., and MickD.G., 1992. On resonance: a critical pluralistic inquiry into advertising rhetoric. Journal of Consumer Research19 (2), 180–197.
101.
ModigE., DahlélanM. and CollianderJ., 2015. Consumer-perceived signals of ‘creative’ versus efficient advertising. Int. J. Adv.33 (1), 137–154.
MortonC., AnableJ., and NelsonJ.D., 2017. Consumer structure in the emerging market for electric vehicles: identifying market segments using cluster analysis. Int. J. Sustain. Transportation, 11 (6), 443–459.
NgM., LawM., and ZhangS., 2018. Predicting purchase intention of electric vehicles in Hong Kong. Austr. Mark. J.26 (3), 272–280.
108.
O'ConnorH., KoslowS., KilgourM., and SasserS.L., 2018. Do marketing clients really get the advertising they deserve? The trade-off between strategy and originality in Australian and New Zealand agencies. J. Advert.45 (1), 147–155.
109.
OlbrichR., SchultzC.D., LeeN. and WrightM.J., 2014. Multichannel advertising: does print advertising affect search engine advertising?Eur. J. Mark.48 (9/10), 1731–1756.
110.
OuyangM., DongshengZ. and NanZ., 2000. Twenty years of research on marketing in China: a review and assessment of journal publications. J. Global Mark.14 (1–2), 187–201.
111.
PettyR.E., and CacioppoJ.T., 1986. The elaboration likelihood model of persuasion. Adv. Exp. Soc. Psychol.19 (1), 124–194.
112.
PochunT., BrennanL., and ParkerL., 2018. Advertising effects? An elemental experiment. Austr. Mark. J.26 (4), 338–349.
113.
PuppinG., 2014. Advertising and China: how does a love/hate relationship work? In The Changing Landscape of China's consumerism (Ed.) HulmeA., 177–95. Cambridge: Chandos Publishing.
114.
RamalingamV., PalaniappanB., PanchanathamN. and PalanivelS., 2006. Measuring advertisement effectiveness: a neural network approach. Expert Syst. Appl.31 (1), 159–163.
115.
RayD., 2014. Overcoming cross-cultural barriers to knowledge management using social media. J. Enterprise Inf. Manag.27 (1), 45–55.
116.
RingleC.M., SvenW. and BeckerJ.-M., 2015. SmartPLS 3. Bönningstedt: SmartPLS.
117.
RossiterJ.R., 2016. How to use C-OAR-SE to design optimal standard measures. Eur. J. Mark.50 (11), 1924–1941.
118.
RossiterJ.R., PercyL., and DonovanR.J.A., 1991. A better advertising planning grid. J. Advert. Res31 (5), 11–21.
119.
RuizS., and SiciliaM., 2004. The impact of cognitive and/or affective processing styles on consumer response to advertising appeals. J. Bus. Res.57 (6), 657–664.
120.
SasserS.L. and KoslowS., 2008. Desperately seeking advertising creativity: engaging an imaginative '3Ps' research agenda. J. Advert.37 (4), 5–20.
ShaoY., DesmaraisF. and WeaverC.K., 2014. Chinese advertising practitioners' conceptualisation of gender representation. Int. J. Adv.33 (2), 329–350.
123.
ShethJ.N., 2011. Impact of emerging markets on marketing: rethinking existing perspectives and practices. J. Mark.75 (4), 166–182.
124.
SchwartzS.H., 1992. Universals in the content and structure of values: theoretical advances and empirical tests in 20 countries. In Advances in Experimental Social Psychology, (Ed.) ZannaM. P. Vol. 25, 1–65. San Diego, CA: Academic Press Inc.
125.
SchwartzS.H., and BilskyW., 1990. Toward a theory of the universal content and structure of values: extensions and cross-cultural replications. J. Pers. Soc. Psychol.58 (5), 878.
126.
SinclairJ., 2008. Globalization and the advertising industry in China. Chin. J. Commun.1 (1), 77–90.
127.
SinclairJ., 2018. Advertising across the BRICS. In The Advertising Handbook, 216–229. London: Routledge.
128.
SinhaK., 2008. Communicating in China's lower tier markets. J. Creative Commun.3 (2), 185–208.
129.
SinhaK. and ZhaoI., 2007. Consumers in the Real China, Executive Summary. Ogilvy and Mindshare.
130.
SiuN.Y-M., HoY.K. and ZengC.Y., 2016. The role of brand equity and face saving in Chinese luxury consumption. J. Consumer Mark.33 (4), 245–256.
131.
SmithR.E., MacKenzieS.B., YangX., BuchholzL.M., 2007. Modeling the determinants and effects of creativity in advertising. Marketing Science26 (6), 819–833.
132.
SmithR.E. and YangX., 2004. Toward a general theory of creativity in advertising: examining the role of divergence. Mark. Theory4 (1), 31–58.
133.
SmithR.E., ChenJ. and YangX., 2008. The impact of advertising creativity on the hierarchy of effects. J. Advert.37 (4), 47–62.
TabachnickB.G., and FidellL.S., 2007. Using Multivariate Statistics (5 ed.). Boston: Pearson Education.
136.
TanusondjajaA., GreenacreL., BanelisM., TruongO., and AndrewsT., 2015. International brands in emerging markets: the myths of segmentation. Int. Mark. Rev.32 (6), 783–796.
137.
TauteH.A., PetersonJ. and SierraJ.J.2014. Perceived needs and emotional responses to brands: a dual-process view. J. Brand Manag.21 (1), 23–42.
TorresI.M. and BriggsE., 2007. Identification effects on advertising response. J. Advert.36 (3), 97–108.
143.
TriandisH.C., 1990. Cross-cultural studies of individualism and collectives. In BermanJ. (Ed.), Nebraska Symposium On Motivation (Vol. 38). Omaha, Nebraska: University of Nebraska Press.
144.
TseE., 2010. Is it too late to enter China?Harv. Bus. Rev.April19, 96–101.
145.
Van DyckF., 2014. Advertising transformed: The new Rules For the Digital Age. London: Kogan Page.
146.
WangD.L., and PraetP.C.L.C., 2016. Message strategy typologies: a review, integration, and empirical validation in China. In VerleghP., VoorveldH., and EisendM. (Eds.), Advances in Advertising Research Vol. VI, 201–213. Wiesbaden, Germany: Springer Fachmedien Wiesbaden.
147.
WatsonD., ClarkL.A., and TellegenA.1988. Development and validation of brief measures of positive and negative: the PANAS scales. J. Pers. Soc. Psychol.54 (6), 1063–1070.
148.
WebsterD.M., and KruglanskiA.W., 1994. Individual differences in need for cognitive closure. J. Pers. Soc. Psychol.67 (6), 1049–1062.
149.
WestD.C., CaruanaA. and LeelapanyalertK., 2013. What makes win, place, or show?J. Advert. Res53 (3), 324–348.
150.
WestD., KoslowS., and KilgourM., 2019. Future Directions for Advertising Creativity Research. J. Advert.53 (4), 1–13.
151.
WilsonR.T., BaackD.W and TillB.D., 2015. Creativity, attention and the memory for brands: an outdoor advertising field study. Int. J. Adv.34 (2), 232–261.
152.
WoetzelJ., SeongJ., LeungN., NgaiJ., ManyikaJ., MadgavkarA., et al., 2019. China and the world: inside the dynamics of a changing relationship. McKinsey Global Inst., 1–168.
153.
WongD., 2019. China's city tier classification: what they are and how are they defined. China Briefing, 27 February. Retrieved fromhttps://www.chinabriefing.com/.
YangC., 2007. Capture the New market frontiers: Unlocking the Untapped Mass Markets Within China. IBM.
158.
YangX. and SmithR.E., 2009. Beyond attention effects: modeling the persuasive and emotional effects of advertising creativity. Mark. Sci.28 (5), 935–949.
159.
YangX., BublitzM.G., WangK.Y. and PerrachioL.A., 2014. Consumer creativity and its implications for sustainability marketing. In Communicating Sustainability for the Green Economy. (Eds.) KahleL. and Gurel-AtayE., 174–190. New York, NY: Sharpe Inc.
160.
YooB., DonthuN., LenartowiczT., 2012. Measuring Hofstede's five dimensions of cultural values at the individual level: Development and validation of CVSCALE. Journal of International Consumer Marketing23 (3–4), 193–210.
ZarantonelloL., JedidiK. and SchmittB.H., 2013. Functional and experiential routes to persuasion: an analysis of advertising in emerging versus developed markets. Int. J. Res. Mark.30 (1), 46–56.
163.
ZhimingZ., 2010. Inside the Growth Engine: A Guide to China's Regions, Provinces and Cities. HSBC Global Research.
164.
ZhouS., YinY., YuT., StuppleE.J.N., and LuoJ., 2018. Exploring the experience of novelty when viewing creative adverts: an ERP study. Front. Psychol.9 (April) 32–37.
