This paper presents a research study into urban adult Chinese consumers’ preferences in China with an analysis of the literature on country of origin effects on consumer brand preferences. The study implemented a mixed methods approach. Analysis of quantitative and qualitative data with results and conclusions are given.

This paper analyses the importance of innovation for 680 EU multinationals subsidiaries involved in international marketing in China, the period of 1998-2009, using unbalanced panel data analysis. To date, the literature on EU subsidiaries has failed to consider product innovation in the strategy interplay in approaching new markets overseas. Building on the resource-based view of the firm, linked with host economic and political institutions, the authors empirically examine the inferential marketing strategy in an EU-China context, by applying econometric techniques to investigate innovation capabilities and to test the presence of agglomeration effect of past innovation activities. We find that EU innovation in China is influenced by both host country institutions and firm capabilities, rendering support to the theory. Our analysis indicates EU subsidiaries’ innovation is positively related to firm advertisement, labour training and host market size. R&D expenditure has a negative bearing on innovation. However, openness has a negative and significant effect on product innovation in China. The study findings have important implications for research on international marketing, new venture decision making, and overseas innovation expansion strategies.