Consumer involvement Involvement is a person’s perceived relevance of the object based on their inherent needs, values and interests. Involvement reflects our level of motivation to process information. As our level of involvement with product increases, we devote more attention to ads related to the product, exert more cognitive effort to understand the ads, and focus more attention on product related information in the ads.
China: The Mecca of Shipping Container Industry
The global shipping container market is expected to have a steady growth due to increase in seaborne trade and industrialization globally. The market in the developed countries such as the U.S., Canada, Mexico, and Germany experiences slower growth when compared to the developing regions such as China, India, South Africa, and the Middle East, owing to the availability of raw material and low-cost labor in these regions. Ultra large container vessels capable of carrying more than 18.000 TEU (twenty-foot-equivalent-units) represent the fastest growing segment of global shipping container fleet. The arrival of such vessels exacerbates supply-and-demand inter balances on the major trade lines. Ports located in Asia and Europe are designed to hold these tremendous vessels on the coastal lines of the region. Also, Europe’s economic decline has resulted in reduced demand on the Asia-Europe trade lane. According to the International Monetary Fund (IMF), the volume of global trade, which is key to the demand for container shipping services, is anticipated to increase by 3.4 percent in 2016. The total containership fleet grew by 8 percent in 2015 which added to the persisting over-capacities in the market. Subsequently, container freight rates declined by 30-40 percent even as the scrapping of capacities continued. In contrast, container charter rates did increase in the first half of 2015, but could not keep the gains as they ended up 10 percent less than the prior year by the end of 2015. The containership order book at the end of 2015 stands at 18 percent of existing capacity which is a rather moderate increase of ordering activities as compared to the beginning of the year. In 2014, head-haul trade was just over double the size of back-haul. Asia accounted for the highest import volumes due to strong interregional trade, while North America experienced the highest import growth, due to higher Mexican imports. BIMCO expects the shipping container segment to see a net fleet growth of around 3.1% in 2017. In terms of ocean container throughput and volume growth, the Asia Pacific region continues to dominate the globe, largely due to the recent and sustained double-digit increases in exports from China. China is the major shareholder of the shipping container market globally. Factors such as availability of raw materials, low-cost labor, large coastal line, and large dependency on the seaborne trade are driving the growth of the market. The ISO containers (international standards) and non-ISO containers are manufactured in China and are exported to almost all parts of the world. The international market share of China is getting larger every year. China specializes in the manufacturing of special purpose containers such as warm-keeping, pot, and regional special containers. Altogether, China has almost 900 diverse types of containers in various sizes which are expected to cater the needs of a large section of customers. China entered the shipping container manufacturing in 1980 with the formation of CIMC in Shenzhen, China, but only gained its greatest momentum in 1993. Not only was China’s low cost of labor an issue, but was also becoming the largest producer and recycler of steel. Till 1995, Taiwan, Hong Kong, Japan, Korea, and most of Europe were producing their shipping containers in Mainland China. Since 1996, CIMC is the largest manufacturer of ISO containers in the world, and by 2007 China produced 82% of the entire world supply of ISO shipping containers. There are many small companies in China currently, which fabricate ISO-certified containers.