THE EFFECT OF THE KOREAN WAVE ON CHINESE CONSUMERS’ BRAND PREFERENCES

Abstract

The purpose of this study is to assess the impact of the Korean Wave -- "Hallyu" -- on Chinese consumers' brand equity development process. The sample data of 225 Chinese consumers was collected from Chinese tourists in Korea, and a structural equation model with 6 selected determinants was developed to examine the relationship between the Korean wave and consumers' brand equity, including Korean drama (KD), K-pop (KP). Our findings show that both were found to be the major factors for consumer preference with positive impact on brand trust. However, these two constructs of the Korean wave do not appear to influence directly consumer loyalty while brand constructs do. This implies that brand affect and brand trust are the essential prerequisites for consumer loyalty towards a brand. The results shed light on market of Korean cosmetic brands suggesting that branding strategy should be generated through brand trust and brand affect.