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Xiaomi Case Study : Consumption Behavior Essay Assignment Help

Xiaomi Corporation is a Chinese electronics company which was headquartered in Beijing in 2010 and soon became very competitive in the domain of digital devices in China and other Asian countries. In August 2011, Xiaomi released its first mobile phone and quickly gained MI fans to become the country’s largest smartphone corporation in 2014 (Li & Chu, 2014). Since its establishment, the company has been able to attract a huge number of customers who still use Xiaomi’s products and complementary services. The point why Xiaomi has been profitable from their consumer, based in a positive and sustainable way can be a debatable ground (Gupta & Dhillon, 2014). Xiaomi innovates and manufactures variable products. Prominently, it makes smartphones functions on their own firmware version, called Android MIUI, which gives Xiaomi ability to differentiate itself within Android universe and other competitors. Xiaomi has a great range of products and many series of smartphones that attracts consumer from different segmentations. Furthermore, Xiaomi also starts produces mobile accessories, wearables, and appliances such as television.

Consumption behavior

The company has managed to strategically position itself ion the market. It provides similar specifications phones to competitors though at a much lower price.  The two of the company’s most renowned phones are Mi and Redmi. Xiaomi had an aggressive pricing strategy, where through the strategy it was able to change the perceived value of smartphones. Initially, the company has a skepticism of the quality of its low-priced Redmi series, where it then chooses to launch their top tier Mi, in order to ensure that it was not too drastic and that the consumers could get confidence in the quality.  Just like Amazon and Apple Inc. Xiaomi has a well-developed ecosystem of software and services which include messaging app, cloud service. The store and App store. A very critical part of the ecosystem of Xiaomi is the Mi market (App store), which is doing well since the Android default App is not accessible in China (Lee, 2014).  The Mi App store is one of the largest in China, thanks to the popularity of the Xiaomi’ s phones.  This particular research aims to identify the strategies and the structures used by Xiaomi in the market to remain not just relevant, but keep up with the competition in place.

Data Collection

Photo elicitation and the interview would be used to investigate consumers’ intention and behavior. In this methodological discussion, the different methods to be used in collecting information on the subject matters are highlighted. They involve the different concepts to be used, the two most preferred types for the research and the suitability of each based on the concept.

ConceptsPhoto elicitationInterviewSuitability
Wants and needs Photo elicitation is an integral part of the research, since there will be a showcasing of the products offered by the company and also the progress that has been made by company in terms of maintaining its position in the market. Interviews are critical in that they entail collection of view, opinions and insights from the consumers and stakeholders in the company. The information from the interviews entails that which cannot be observed in daily life and is very critical in investigating the needs and wants of con summers.


 The most suitable methods for this particular research are the use of interviews. This is since the wants and needs of the consumers with regards to the selected company will be addressed and thoroughly analyzed in order to bring about best findings and recommendations.
Attitudes and motivational ConflictsPhotos are not the most effective way of identifying the attitudes and motivational conflicts. This is because they just entail the features of a product without dwelling into the issue of actual feelings of the consumers.Interviews on the hand are the most effective, methods of identifying the attitudes for the consumers, and assist in determining about what the clients feel about the products offered. With regards to identifying the attitudes of the consumers the most suitable method is the use of interviews, since it will be easier to identify the feelings and the attitudes of consumers.
Learning TheoryPhotos are integral in reflecting the actual market information, more so with regards to the visual information.  There are however not always reliable in identifying the perceptions of the clients, which is very vital for the learning theory.



With regards to customer perceptions which are critical in the role of learning theory, inter views are better than photos. This is since there is no need for interpreting the answers acquired from the interviews



 In the case of learning theory, integrating both use of photos and interviews would ensure that the best findings for the study are identified.
Brand and Self-consumption 

Photos are reliable   since the study objects do not intend to hold back. They also allow recipients to share similar feelings with the researchers.  However, photos cannot be used alone, since they do not provide sufficient information regarding self-rationalization and preferences.



Interviews complement photos since they can be used to provide critical of consumer preferences and also on self-rationalization.  A probable challenge of suing interviews in brand and self-consumption solutions that the interviewees may fail to provide full information on the subject matter or hold back. Therefore, to be more effective, both use of interviews and photos can be integrated for the sake of suitability and better results.




ResearchPhoto elicitationInterview
These photos were taken by one of participants to find Xiaomi’s marketing information through investigation.

Wants and Needs

Pic 1

Picture 2

This interview was organized one week after that we took these photos.

The interview was held at 5pm in the Starbucks Coffee within the University in order to provide a cozy atmosphere. Also, there were few people only so that the interview was not disturbed.

The participants are conducted by one male aged 20 who have used Xiaomi products for 2 years and one female aged 21 used Xiaomi products for half a year. They are both undergrad students.



Participant 1

ResearchPhoto elicitationInterview
Attitudes and Motivational Conflicts

Picture 3

Picture 4


Learning Theory


Picture 5

Picture 6


Brand and Self-Consumption

Picture 7


Picture 8




After conducting the interviews, a number of factors regarding the Xiaomi Company were identified. From the participants of the interview, various issues concerning the company products, services and innovation were identified.

Subjective Feelings

Participants who undertook the study were asked about the question of the pricing of the product vs the quality of the products offered. This is based on pictures 1 to picture 4.  Different respondents were of different opinions. The pricing factor was, however, the most interesting factor that makes them attracted to Xiaomi products. A majority of the respondents were of the opinion that compared to other brands, Xiaomi products i.e. Phones, tablets, and laptops were relatively affordable and met their needs and want (Shih, et al., 2014).

  1. Does the Xiaomi product meet your wants and needs more so in terms of quality and pricing?

Majority of the respondents for this question were of the opinion that the company had an iPhone like gear which costs at almost a third price of Apple Products. At first, respondents were of the opinion that they found these deals to be too good to be true but later after experiencing the product got impressed and contented by what they found out.

  1. ii. How does the company market itself and the products?

From the respondents, Xiaomi has a well laid down business model, where it incorporates traditional marketing and distribution practices. It also uses the internet to fuel its sales. The marketing practices of the company have made sure that the target population is able to constantly be informed about new products in the market prices and even offers.  This makes it be one of the best Chinese Tech firms.

  • What is your opinion on the company prices?

The highest number of respondents was impressed by the prices of the products from Xiaomi. They were of the opinion that despite the prices, the company still makes quality products as compared to a number of companies more so in China.

Brand Value

The participants were also engaged in how they feel about this particular brand. The questions also aimed to inquire about what made them choose this particular brand over the other.  From these questions, the value of Xiaomi products in the country would be identified and analyzed accordingly.

  1. i. How would you describe the quality of Xiaomi Products?

Most of the participants in the study were of the view that despite the low prices, the majority of Xiaomi products were of high quality. They also had unique features that met the needs of most of the customers. However, some of them complained about a number of features which they stated that the company had no choice but to improve the specific features in the future models.

  1. What do you think of the Xiaomi brand?

The participants were quite enthusiastic about the Xiaomi brand. Just like Apple and Samsung, it was evident from the interview that the company has its dedicated consumer base which loves the products. It was identified that there are a number of fans, calling themselves “Mi fans’ who even regularly attend the firm’s product launches in China. The consumers are not just limited to China, where the firm manages to reach out to fans in other nations and expounds more on the brand products and offers.

  • Does the brand meet the clients’ expectations?

From the interview, it was evident that the majority of the customers believed that the company meets their expectations, However, there was a section of the respondents who were of the opinion that the company need to increase their quality, which would be enabled by thorough innovation.

User Experience

The type of system used by smartphones and laptop determines whether the consumers are impressed by a product or not. The participants were to air the views on what they thought about the experience of using the Xiaomi brands, more so the smartphones and tablets.

  1. What is your experience when using the MIUI (My UI)?

Participants were full of praise for the MIUI, which is a ROM skin-based Android that powers the smartphones and tablets from Xiaomi. The reasons given for the love showed to the system is that it has plenty of features, more than those offered by the likes of IOS and Android. Some of the features that the respondents named as having impressed them included navigation gestures and plenty of them which make their phones more fun and easier to use.

  1. What was your experience at the Xiaomi stores?

Majority of the respondents claimed that they were impressed by the service delivery at the Xiaomi stores, more so those that deal with the MI  phones and products, This was due to the good appearance and branding of the store,  great customer care and  the way prospective and loyal customers  are treated when they opt to visit the store, good customer service is one of the key reasons as which has boosted the brand name of Xiaomi products, not just in China alone but in other nations more so those within Asia.  The launches of new Xiaomi products are also superb, where loyal customers are always keen on the new products being launched, due to the excitement and probably the offers that come with such launches.

  1. What did you like most about using the Xiaomi products?

The feature that most respondents found to be the most use friendly was the MIUI where it offers easy to use apps and also has a variety of apps. Other features the respondents liked most with regards to their experiences were the sleek design of the phones and tablets.


Consumer Perception

Questions on this topic would assist in identifying how clients feel about Xiaomi brand and establish what factors have contributed to these perceptions.

  1. As a customer how do you perceive Xiaomi as a brand?

Most of the participants were of the view that the company has a good reputation and brand name and hence many of its customers love the brand. From one of the respondents, there were many pre-orders in some of the company’s products. This is mostly not just because of the hardware products, but also due to the software offered by the firm.

  1. What are your future expectations about the company?

Many of the respondents expected the company to introduce more models in the coming year and also be innovative in software products. This, according to the participants would help boost the company brand name more and help it compete with the likes of other international brands such as Apple and Samsung.

  • What would you like to see the company change?

A number of participants complained about the time taken when they make their pre-orders and would hence like the company to change on this. This could be due to the fact that there were too many orders and would like the company to increase their rate of productivity so as to keep up with the demands of their products.



Marketing Implications

From the findings, it is apparent that there are a number of issues which the Xiaomi company can use to improve on their service delivery and eventually the brand name of the company.  First, is that the consumers of Xiaomi products yearn for more innovative products.  This requires the company to venture into more research, through incorporating experts and skillful individuals who would ensure that the company regularly releases new products that meet the needs and the wants of the customers (Bjerke & Hultman, 2002). Through innovation, the company would also be able to keep up with the tough competition which is currently being experienced in the tech industry. Innovation would also ensure that the company is able to attract a high number of prospective customers, who will be attracted by different ideas and features released by the company (Furrer, 2014). Based on the findings, enhancing innovation at Xiaomi would boost the loyalty of the company and ultimately ensure that it ultimately meets its revenue goals and objectives (Chaffey & Ellis-Chadwick, 2016).

Building the brand image of a company is also very critical based on the findings of the research. Most of the consumers of Xiaomi products are attached to the company due to the brand name that the firm created.  Marketing managers can borrow from Xiaomi on the issue of branding since this will be very important to the growth of their business (Anwar, 2017).   By having a strong brand, there will be many prospective customers who will be keen on the next releases by the company. A strong brand image will also boost the trust of the prospective buyers where they will not be afraid of either getting lied to or getting a lower quality product than they expected (Atwal & Williams, 2017). However, despite having a good brand image the marketing managers must ensure that they have quality products which meet the expectations of their consumers. Quality products and services ensure that consumers make repeat purchases and also refer other people to the company for a similar product.

From the findings, marketing managers can also learn about the issue of pricing of products which is a major value proposition of Xiaomi. Companies ought to be very keen on the pricing of their products, based on their target markets (Raju & Holm, n.d.). By effectively pricing a product, then the customers will be able to afford a factor that will boost the sales of the firm. However, lower pricing just like in the case of Xiaomi should not compromise the quality of the products since this will have on the company since it will negatively portray the company.

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