The Study of Factors Affecting the Purchase Intention of Lenovo in the Thai Market

CHAPTER ONE

INTRODUCTION

The Study of Factors Affecting the

Purchase Intention of LENOVO in the Thai Market

The Purchase Intention of LENOVO was selected to be the topic of this study as LENOVO has been introduced into the Thai market for over five years now, but has until today, maintained a considerably low profile. Although being the number-one PC Vender in China, and the top fourth in the world, LENOVO has no more than a market share of 10% in Thailand since its main launching in 2006 (Source: Bangkok Post, Feb 2011).

This study aims to determine the factors which are most important in resulting in the purchase intention of LENOVO products as well as explore the brand’s visibility and perceived value in the Thai market.

The Background of Study, Statement of the Problem, Significance of the Research, Objectives of Research and Scope of Research will be given in this Chapter.

1.1 Background of Study

Formation: LENOVO is a multinational computer technology corporation based in China. The company, originally called “Beijing Legend Computers”, was founded by Chairman Liu Chuanzhi, along with 10 other Science Academics, in the year 1984.

Five years later, the company changed its name to “Hong Kong Legend” had branched out into motherboard manufacture. Soon after, it changed its name again to “LENOVO”. In 2003, the company announced the birth of its new LENOVO logo to prepare for its expansion onto overseas market, and as has maintained this name and logo until present day.

In 2005, LENOVO acquired the IBM PC division which was as a major step for its international market approach.

Currently, LENOVO develops, manufactures, and markets desktops, notebook personal computers, workstations, servers, storage drives, IT management software, and related services (Source: Wikipedia).

Operations: LENOVO's major headquarter operations are located in Beijing, Paris, Morrisville and Singapore. The company employs approximately 23,900 people worldwide.

LENOVO has three main assembly plants in China, capable of producing up to five million units per year. It also has an extensive local distribution network with around 4,400 retail outlets only in China, and selling PCs as low as $350.

Marketshare: Since 2009, LENOVO has been the fourth largest vendor of personal computers in the world. Its market share soon increased from 8.6% to 10.4% worldwide.

The company is the largest seller of PCs in China, with a 28.6% share of the China market. Thus, LENOVO accounts for about three percent of global sales (Source: IDC July 2010)

In Thailand, LENOVO is currently the seventh