Research on the Power of Supply-Side Reform for the Sustainable Development of Cultural Industry in Jiangsu Province, China under the Background of Domestic Dual Circulation

Abstract

With the continuous changes in the external environment, and the prevalence of protectionism and unilateralism in some countries, the theoretical environment of “dual circulation” has changed dramatically, and China’s national economy has been severely impacted by the new crown epidemic. Thus, developing the national economy and activating the vitality of the sustainable development of the cultural industry is key. This paper constructs a hypothetical model of the key factors of the supply-side structural reform of the sustainable development of Jiangsu’s cultural industry under the dominance of domestic internal circulation, and then designs a questionnaire according to the hypothetical model and conducts a questionnaire survey. Data and hypothetical models are investigated, reliability and validity testing are conducted, and structural equation modeling analysis is carried out. The research results show that: product satisfaction factor, consumer price rationality factor, consumption channel diversity factor, consumption promotion effectiveness factor, and consumption security factor all have a positive impact on consumer satisfaction factor, and the supply-side structural reform impetus has a significant positive impact on consumer satisfaction, and consumer satisfaction has a positive impact on consumer expectations. Finally, suggestions are put forward for the supply-side structural reform of Jiangsu’s cultural industry, in order to promote the sustainable development of the cultural industry.

1. Introduction

The meeting of the Political Bureau of the Central Committee of the Communist Party of China on 30 July 2020 proposed to accelerate the formation of a new development pattern dominated by the domestic cycle and mutually reinforcing the domestic and international dual cycles. At present, the overseas epidemic is still spreading rapidly, and economic globalization is facing a reversing trend. Some countries have adopted protectionism and unilateralism, resulting in a sharp decline in the market share of international trade and investment. Therefore, to stabilize the Chinese economy and develop the cultural industry, it is necessary to expand domestic demand as soon as possible under the leadership of the domestic internal cycle, turn the domestic cultural industry into a powerful endogenous driving force, and promote the economic recovery and stable and sustainable development of the cultural industry.

With China’s “new normal” economy and the process of economic transformation, Chinese residents’ demand for cultural consumption has escalated. Residents’ consumption concepts are in line with international standards, and they are more personalized and technological. The rapid development of the Internet has gradually increased residents’ demand for cultural products, and their demand for cultural products tends to be diversified, high-end and customized. The traditional cultural consumption concept has changed to personalized and customized cultural consumption and pursuing higher spiritual needs. As the 18th National Congress of the Communist Party of China pointed out, it is necessary to: “Promote the development of cultural undertakings and cultural industries. To meet the people’s new aspirations for a better life, we must provide them with rich intellectual nourishment”. Therefore, the domestic economic cycle is the leading factor in the domestic cultural industry being affected by the epidemic. To promote upgrading cultural consumption, it is necessary to change the structure of cultural consumption and improve the quality, and level, of cultural consumption products. At the same time, this should be accompanied by an increase in the quality of cultural-related services and support systems.

Therefore, based on domestic internal circulation dominance, the supply-side structural reform of Jiangsu’s cultural industry should consider the upgrading of cultural consumption as an essential consideration. While assuming social responsibilities, enterprises should respect culture and consumers, and truly think about upgrading cultural consumption under the domestic cycle. With the development of the domestic cultural industry as the leading factor, it is necessary to understand the role of expanding cultural consumption on the supply-side reform, guide the supply-side reform of the cultural industry, analyze and study the dynamics of the supply-side structural reform of Jiangsu’s cultural industry, and realize the supply-side structural reform and development of the cultural industry. The cultural industry creates cultural products that meet the people’s material and cultural consumption needs.

2. Literature Review

2.1. Research on the Structural Reform of the Supply Side of the Cultural Industry

With China’s rapid economic development, the development of Chinese culture has reached profound depths, which requires the optimization and upgrading of the cultural industry structure. However, at this stage, the Chinese cultural field is facing some problems: inefficient resources, insufficient innovation, and lack of cultural products. Therefore, working from the supply side and upgrading cultural consumption is the key point of “Supply-side Reform in the Cultural Field” (Fan and Zhou, 2016) [1]. Bian and Zhong, 2016 [2] point out that the fundamental task of the supply-side reform of the cultural industry is to correct a mismatch of factors, optimize the efficiency of resource allocation, and increase total factor productivity. (Qi, 2016) [3]. It is believed that building a policy pillar for the optimization of the cultural-industry structure is the top priority of supply-side structural reform. Song (2016) [4] believed that the cultural industry’s innovation mechanism, technological-progress mechanism and talent-promotion mechanism interact with each other from the perspective of supply-side reform, and jointly promote the activation and improvement of the endogenous growth momentum of the cultural industry. (Li, 2017) [5]. Supply-side structural reforms of the cultural industry include: “subtraction,” to remove the backward production capacity of cultural enterprises, and to remove the inventory of cultural products, and “addition,” to improve the quality of cultural products, encourage technological innovation and the development of new formats, and improve the policy environment. As a major province of cultural industries, Jiangsu actively promotes cultural supply-side reforms and regards cultural industries as one of the key points of Jiangsu’s development. Although the scale of Jiangsu’s cultural industry is large, the core of its cultural industry is not prominent, and the industrial structure and the grade of cultural products are unreasonable. Therefore, it is necessary to increase the supply of effective quality products, promote the cultural industry’s internal integration, and coordinate the development of the cultural industry (Yin, 2018) [6].

2.2. Research on the Supply-Side Reform Momentum of the Cultural Industry

The development of the cultural industry’s supply-side reform requires the drive of supply-side structural reform to promote the optimization and upgrading of the structure of the cultural industry, the diversified supply of cultural consumer goods, and the development of cultural industry innovation.

First of all, we can learn from the development model of cultural-industry power through foreign scholars’ research. (Yuko Aoyama and Hiro Izushi, 2003) [7]. It is believed that the creative resources of the popular Japanese comics and animation industry and the technical knowledge accumulated in the consumer electronics industry have promoted the emergence of the Japanese video-game industry. (Yuko Aoyama, 2007) [8]. The role of consumption in shaping the national art of flamenco has been examined from the perspective of art form and industry. (Sun, 2012) [9]. It has been demonstrated that art education is an indispensable way to cultivate talents in the cultural and creative industries, and promote the development of art education. (Zheng, 2014) [10]. Sample surveys have been used to explore the impact of creative-industry clusters on cultural and creative industries. (Chuluunbaatar, 2014) [11]. Taking the Mongolian circus as an example, the great contribution of talents in developing cultural and creative industries has been pointed out. (Moon and Song, 2015) [12] believed two factors affect the international retail industry of cultural products: the cultural embedding perceived by consumers and the general cultural environment of foreign markets. (Gonzalezd, 2015) [13]. It was found that social networks have a positive effect on the profitability of Spanish cultural companies, and facilitate the transfer of cultural products and services from producers to consumers.

Chinese scholars have conducted much research on the supply-side reform momentum of the cultural industry. In terms of industrial clusters, Kang and Xiang (2005) [14] pointed out that industrial clusters are conducive to the relatively high innovation and creativity requirements of the cultural industry. Therefore, it is necessary to strengthen China’s local cultural-industry clusters’ competitiveness, conduct cultural-industry research in terms of strategy, comparative advantages, development planning, and policy systems, and promote cultural-industry development. Yuan (2010) [15] pointed out that the agglomeration of cultural industries is more complicated. Cultural consumption demand and government financial support are conducive to the agglomeration of cultural industries, but the financial impact is not obvious. The number of cultural enterprises, the level of human capital, and the regional development, regional location, and culture will affect cultural industries’ agglomeration. In terms of government-driven and fiscal and taxation policies, Liu (2016) [16] pointed out that Jiangsu has many advantages in developing cultural industries, but there are also some problems. The government needs to be driven to undertake the functions of government guidance, regulation, management, service, and guarantees. To promote the rapid rise in Jiangsu’s cultural industry, Fu (2009) [17] proposed that the government formulate and implement flexible public economic policies based on the country’s resource endowment and cultural-industry competitiveness. Learning from the public economic policies of the United States is helpful to the spread and development of national culture and cultural industries. This is in line with the Chinese cultural development strategy. Regarding the promotion of cultural consumption, Deng (2007) [18] pointed out that cultural consumption psychology, cultural characteristics, economic, social, globalization and other factors impact the cultural industry. Therefore, it is necessary to start with the concept of consumption and promote cultural consumption to promote cultural industry’s development.

In terms of brand strategy, Lu (2012) [19] believes that the development stage and premium ability of the cultural industry depend on a cultural brand’s credibility. If the category opposition strategy is implemented for a cultural brand, it will help avoid homogeneous competition in the cultural industry. In terms of cultural-industry talents, Luan et al. (2016) [20] found, based on data from Shanghai’s cultural enterprises, that personnel with higher academic qualifications are beneficial to increase the cultural industry’s productivity. Among them, comprehensive business managers and cultural innovation talents are key talents for the development of cultural industries. In terms of technological innovation, Xu and Ding (2006) [21] highlighted the rapid and sustainable development of the cultural industry requires technological innovation. Therefore, science and technology management departments have to promote cultural-industry development from the perspective of scientific and technological innovation. For instance, to clarify cultural-industry science and technology industry-development directions, they should integrate high-tech and culture, set up cultural science and technology topics, and establish cultural science and technology safeguards to promote cultural industry’s development. In terms of economic development and cultural infrastructure, Lin and Zhang (2014) [22] pointed out, through statistical data research, that cultural consumption demand, recognition capital, and regional economic development positively impact the cultural industry. In addition, cultural infrastructure and government support are not sustainable, but have short-term effects on cultural industries’ development. From researching the Shanxi province cultural industry, Li and Zhang (2020) [23] found that cultural industry development is not isolated. In production, distribution, exchange, and consumption, the government should cultivate talents as new points and render all manner of help to promote cultural-industry convergence. This, in addition to continuously innovating mechanisms to break through the bottleneck of supply and demand; improving management and supervision; operating with integrity; and building core cultural industry competitiveness.

In summary, scholars at home and abroad have expounded and considered the cultural industry from different perspectives. However, although existing studies have involved the supply side to varying degrees, they have only selected one or a few perspectives for their discussion, which is not systematic and comprehensive. Domestic scholars’ empirical research on the supply-side structural reform motivation is insufficient, and its depth and precision are not enough to make it more effective or targeted to propose the supply-side structure of Jiangsu’s cultural industry driven by new consumer demand. This is the motivation factor for policy reform.

2.3. Research on Supply-Side Structural Reform and Sustainable Economic Development

On 18 October 2017, President Xi Jinping pointed out, in the report to the 19th National Congress of the Communist Party of China (CPC) [24], that supply-side structural reform should be deepened. In building a modern economic system in China, we must focus on developing the real economy, take improving the quality of the supply system as the main direction, and significantly enhance our country’s economic quality advantage. Sang (2018) [25] found in his research that the supply-side structural reform implemented in China mainly achieves the goal of improving overall productivity through the efficient and reasonable allocation of resources. This reform method can reduce ineffective and low-end supply and expand effective and mid-to-high-end supply. Through supply-side structural reform, China has transformed the entire country’s production model from a factor-input-driven model to a factor-driven growth model; China uses short-term and long-term supply-side structural reforms to improve inefficient supply and expand effective supply, thereby promoting the sustainable development of China’s market economy. Liang (2016) [26] took Shanghai, an economically developed city, as an example in his article, and pointed out that China’s supply-side structural reform cannot simply follow the practices of other countries. China should combine fiscal policy to grasp the relationship between long term and short term, and take into account national and local differences; structural reforms are carried out by regions and industries to improve the overall utilization rate of resources and promote sustained economic growth. Xiao (2018) [27] reconstructed the indicator system of supply-side structural reform, using capital, labor, and innovation as the primary indicator system, and selected other suitable secondary indicators for analysis; all indicators passed the consistency test, and it was found that, after the implementation of supply-side structural reform, the average value of the corresponding indicators changed significantly; that is, the implementation of supply-side structural reform had a certain impact on the labor, innovation level, and labor capacity of the selected samples. He (2021) [28] used expert algorithms and sandbox simulations to model economic supply-side structural reform in the real world and analyze the economic development of sample companies. The study found that financial supply-side structural reform has played a role in promoting the development of the local real economy. Liu and Jing (2019) [29] selected 84 experimental samples from 1998 to 2018 as the background of China’s supply-side structural reform, and used the VAR model to conduct impulse-response analysis. They found that, concerning the influence of supply-side structural reform, China’s implementation of the new fiscal policy has obviously promoted sustained economic growth. China’s supply-side structural reform has played a significant role in promoting the sustainable development of China’s economy, but it is still necessary to continuously improve the innovation capabilities of various industries in the country and the rational allocation of resources (Yan and Yu, 2017; Hu et al., 2016) [30,31]. Supply-side structural reform has achieved remarkable results in many industries in China, and has promoted the sustained growth of the country’s overall economy, but there are still many obstacles that need to be identified and overcome.

2.4. Research on Cultural Tourism Development

The supply-side reform of Jiangsu culture in China cannot abandon the rich ethnic martial arts and traditional culture, as well as the development of sports culture and tourism managers. These cultures can provide effective kinetic energy in the context of China’s internal circulation, promote the development of the culture and tourism industry, and continue to expand continuous development. Tsai (2017) [32] conducted an AHP questionnaire by studying the perceptions of travel-agency managers on the employability of the tourism industry, collecting data from 50 valid returns, and executing the AHP questionnaire. Research shows that travel agency managers consider general skills to be the most important occupational skills, while on specific projects, communication is the most critical skill. According to the research results, Tasi suggested that Taiwan vocational colleges should consider from the perspective of employers when designing courses to improve students’ job-seeking ability. Ewa and Wil (2018) [33] applied source analysis and observational methods to study the links between cultural heritage, sports, and tourism, which can demonstrate the sociocultural potential of sports tourism forms to understand cultural heritage. Through the National Park, it is very important to understand the role of cultural education in both China and Western countries. Przemysław et al. (2020) [34]. By studying “Martial Arts Tourism: Meta-Analysis of Publications from 2005–2020”, the study found that there are thematic relations between the main destination, and the destination country; martial arts are treated by researchers as both primary and secondary threads, the differences between travel destinations and the types of events attended by people interested in martial arts. Stefania and Marta (2021) [35] investigate martial arts tourism and UNESCO documents, the authenticity of Shaolin Temple and Chenjiagou Village and find that cultural and natural heritage issues have become a powerful representation of the modern image of new China. Munsters and Melkert (2015) [36] study anthropology as a driving force for tourism research; tourism anthropology discovers the development of anthropology through the impact of tourism on destinations and the impact of tourism on tourists drives tourism research. The perspective of cultural tourism development theory sorts out the concepts of leisure sociology and culture, cultural tourism theory, and sports tourism, and fully studies the cultural industry and the management of cultural heritage related to the operation of culture. Tsai (2017) [37] simplified the structural modeling of loyalty acquisition based on a conceptual clustering model; the study found that customer loyalty is predicted by perceived value.

3. Model Construction

3.1. Questionnaire Design and Data Collection

The questionnaire for consumers participating in Jiangsu’s cultural industry was distributed online and offline, and interviews were conducted with some surveyors to collect questionnaires. Consumer survey subjects in Jiangsu Province were selected offline, and online questionnaire surveys were conducted using the questionnaire star website, using a snowball survey method. One of the questions in the questionnaire is “Have you ever carried out relevant consumer activities on Jiangsu cultural products?” If yes, the respondent continues to answer the question to complete the questionnaire; if not, the process is ended. In addition, a query based on the online questionnaire’s IP address is included to avoid multiple answers on one machine and ensure the reasonable validity of the sample. Two hundred and eighty seven questionnaires were issued during the first round, and 150 questionnaires were issued later, 133 invalid questionnaires were excluded, leaving 304 valid questionnaires (online and offline). This questionnaire was mainly aimed at consumers’ cultural consumption in Jiangsu and chose a matrix scale to specifically analyze people’s cultural consumption, as shown in

Table 1. Measured variables of cultural industry factors under the dominance of domestic internal circulation.

Serial Number	Measured Variable
1	Q1: Jiangsu’s cultural products can arouse my interest in consumption.
2	Q2: The cultural products I consume in Jiangsu meet my individual needs.
3	Q3: Jiangsu’s cultural products are at the forefront of the times.
4	Q4: Jiangsu is rich in cultural products, which makes me feel very satisfied.
5	Q5: I am very satisfied with the products and services provided by Jiangsu cultural enterprises.
6	Q6: The prices of Jiangsu cultural products and services are moderate.
7	Q7: When carrying out cultural consumption in Jiangsu, the consumption experience and price are very compatible.
8	Q8: When carrying out cultural consumption in Jiangsu, I can accept the price of tickets for most tourist attractions.
9	Q9: When carrying out cultural consumption in Jiangsu, I feel that I enjoy services that are equal to or exceed the price.
10	Q10: When carrying out cultural consumption in Jiangsu, the price is within my acceptable range.
11	Q11: The opening of public cultural places in Jiangsu makes it more convenient for me to carry out cultural consumption.
12	Q12: I really like cultural consumption on the Internet.
13	Q13: The current convenient and fast booking method makes me engage in the consumption of cultural products more proactively.
14	Q14: I know many well-known Jiangsu cultural celebrities.
15	Q15: In Jiangsu, I can feel the strong cultural atmosphere on many occasions.
16	Q16: I mainly obtain information about Jiangsu cultural products through mainstream media.
17	Q17: Promotional activities on websites such as Ctrip and Qunar attracted my cultural consumption in Jiangsu.
18	Q18: I feel safe to consume cultural products in Jiangsu.
19	Q19: When I was carrying out cultural consumption in Jiangsu, I could solve problems in time when I encountered problems.
20	Q20: In the cultural consumption activities in Jiangsu, I can obtain the direction board or the staff’s guidance in time.
21	Q21: I am very satisfied with the diversity of Jiangsu cultural products.
22	Q22: I am very satisfied with the quality and attitude of cultural consumption services in Jiangsu.
23	Q23: I will consume more Jiangsu cultural products to meet my needs in life.
24	Q24: I am generally satisfied with cultural consumption in Jiangsu.
25	Q25: When I was carrying out cultural consumption in Jiangsu, I was satisfied with cultural products’ ability to solve the problems encountered.
26	Q26: I hope there will be more Jiangsu cultural brand products.
27	Q27: I am willing to try new and creative cultural products with Jiangsu elements.
28	Q28: I look forward to a more convenient and efficient way to purchase cultural products.
29	Q29: I will pay attention to the development of Jiangsu cultural products and services.
30	Q30: I look forward to more value-for-money cultural products.

Note: The indicator adopts Likert 7-level scale: strongly disagree–strongly agree.

. It is divided into: 7 observation variables, a total of 30 items, using a Likert 7-level scale; the higher the score, the higher the degree of agreement. This research scale’s design refers to the research results of many scholars: Liu (2014) [38] divides the four factors of personal attributes, ability conditions, supply conditions and environmental conditions, selects indicators, and evaluates and measures residents’ cultural consumption. Research shows that Beijing residents’ cultural consumption mainly includes five indicators: personal consumption habits, the amount of money that can be spent, cultural consumption prices, types of cultural consumption, and advertising media. Li and Shen (2018) [39] found, through questionnaire design and research, that social exclusion, as an important driving factor, has an important impact on new citizens’ conspicuous cultural-consumption willingness. The internal mechanism is, mainly: social exclusion reduces the sense of belonging and control of new citizens, and the compensation of psychological deficiency makes consumers willing to participate in conspicuous cultural consumption.

In order to make the structural equation model research reliable and pertinent, repeated experiments, elimination and model modification were carried out. Finally, 30 variables were selected as the factors of the structural equation model, and the effect showed relatively good results. Concerning the analysis of the key factors of consumer participation, it is classified into product-satisfaction factors: Q1, Q2, Q3, Q4, Q5; consumer price-rationality factors: Q6, Q7, Q8, Q9, Q10; consumption-channel-diversity factors: Q11, Q12, Q13; consumption-promotion-effectiveness factors: Q14, Q15, Q16, Q17; consumption-security factors: Q18, Q19, Q20; consumer-satisfaction factors: Q21, Q22, Q23, Q24, Q25; and consumption-expectation factors: Q26, Q27, Q28, Q29, Q30.

3.2. Research Hypothesis

Regarding the research on the driving factors of the industry’s supply-side reform under the background of domestic economic development as the leading factor, some domestic documents have mentioned this. Hu (2016) [40] studied the cultural supply-side reforms of Karamay in Xinjiang and found the importance of public cultural-service platforms, cultural-enterprise innovations, the formation of a “cultural +” trend, the construction of a cultural financial system, the implementation of innovative cultural supply-side structural reforms, and the upgrading of innovative cultural consumption. Such reform momentum will be conducive to cultural supply-side reforms. Meng and Huang (2016) [41] pointed out that the supply-side reform of the cultural industry is mainly driven by residents’ income, education level, expectations, the total size of the cultural industry, cultural infrastructure, and social security, which all have a positive impact on cultural consumption. The price of cultural products is negatively correlated with cultural consumption, so it can promote cultural supply-side reforms. Zhang and Huang (2018) [42] highlighted that, in the cultural supply-side reform, the integration of the cultural-tourism industry will help residents’ cultural consumption, and the income level of urban residents, the level of comprehensive development of the tourism industry, and the level of cultural consumption will all affect the cultural industry.

It can be seen from the above analysis that most of the existing literature is limited to qualitative analysis and conceptual description, and lacks the testing and quantification of the interaction relationship based on actual data. The research on Jiangsu’s cultural industry’s supply-side reform momentum is a complex system with much reform impetus under domestic internal circulation dominance. For instance, product-satisfaction factors, consumer price-rationality factors, consumer channel-diversity factors, consumer promotion-effectiveness factors, consumption-security factors, consumer-satisfaction factors, consumption-expectation factors, social status, age, position, and other factors affect consumers’ consumption of cultural products to varying degrees. This article focuses on the construction of seven aspects including the product-satisfaction factor, consumer price-rationality factor, consumption-channel-diversity factor, consumption-promotion-effectiveness factor, consumption-security factor, consumer-satisfaction factor, and consumer-expectation factor. This article studies hypothetical relationships; the path diagram is shown in Figure 1.

According to the hypothesis testing roadmap, the specific hypotheses are shown in

Table 2. Basic hypotheses of cultural industry under the dominance of domestic internal circulation.

Hypothesis	Content
H1	Product satisfaction has a positive impact on consumer satisfaction.
H2	The rationality of consumer prices has a positive impact on consumer satisfaction.
H3	The diversity of consumption channels has a positive impact on consumer satisfaction.
H4	The effectiveness of consumer promotion has a positive impact on consumer satisfaction.
H5	Consumption security has a positive impact on consumer satisfaction.
H6	Consumer satisfaction has a positive impact on consumer expectations.
H7	Consumer satisfaction plays an intermediary role between product satisfaction and consumer expectations.
H8	Consumer satisfaction plays an intermediary role between the rationality of consumer prices and consumer expectations.
H9	Consumer satisfaction plays an intermediary role between the diversity of consumption channels and consumption expectations.
H10	Consumer satisfaction plays an intermediary role between the effectiveness of consumer promotion and consumer expectations.
H11	Consumer satisfaction plays an intermediary role between consumer security and consumer expectations.

.

4. Empirical Research Analysis

4.1. Descriptive Statistical Analysis

This article used SPSS Statistics 24.0 software to measure each factor’s mean, standard deviation, and correlation coefficient. Then, descriptive statistical analysis was conducted to determine the basic level and data distribution status between each factor. The statistical results are shown in Table 1. It can be seen from the table that the mean and standard deviation of the items of each factor meet the normal distribution conditions, and the data of the questionnaire can be directly used for reliability and validity analysis. The correlation coefficients among product-satisfaction factor, consumer price-rationality factor, consumption-channel-diversity factor, consumption-promotion-effectiveness factor, consumption-security factor, consumer-satisfaction factor, and consumption-expectation factor are all less than 0.5, the p-value. Significantly, there is no collinearity problem, and the next step can be tested (

Table 3. Descriptive statistical analysis and correlation coefficient of each variable.

Measured Variable	Mean	Standard Deviation	1	2	3	4	5	6	7
1. Product satisfaction	4.97	1.12	1.00
2. Consumer price rationality	4.73	1.24	0.452 **	1.00
3. Diversity of consumption channels	5.10	1.14	0.475 **	0.463 **	1.00
4. Consumer promotion effectiveness	4.81	1.33	0.428 **	0.432 **	0.426 **	1.00
5. Consumption security	4.90	1.30	0.053	0.053	0.105	0.406 **	1.00
6. Customer satisfaction	4.92	1.23	0.352 **	0.295 **	0.376 **	0.379 **	0.311 **	1.00
7. Consumer expectations	5.58	1.17	0.245 **	0.272 **	0.354 **	0.343 **	0.241 **	0.397 **	1.00

Note: ** means p < 0.01.

).

4.2. Analysis of Sample Reliability and Validity

In order to ensure the validity of the conceptual model of this study, including the evaluation of model fit and hypothesis testing, further reliability and validity analysis were carried out.

4.3. Reliability Analysis

Reliability refers to the degree of consistency or stability of measurement results (data). Consistency mainly reflects the relationship between the measurement’s internal items, and examines whether each item of the measurement measures has the same content or characteristics. Stability refers to the reliability coefficient between repeated test results of the same group of subjects at different times using a measurement tool (such as a questionnaire). This paper used Cronbach’s Alpha reliability coefficient to test the consistency of the measured variables, used SPSS 24.0 to test the reliability of 30 questions after factor analysis had been eliminated, and used the Alpha model to obtain the Cronbach’s α comprehensive value. The value of 0.938 indicates that the questionnaire has good stability and credibility, and the consistency between the questions is good.

As shown in Table 2, the Cronbach’s α values of the product-satisfaction factor, price-reasonableness factor, channel-diversity factor, promotion-effectiveness factor, consumer-security factor, consumer-satisfaction factor, and expectation factor are 0.871, 0.867, 0.718, 0.727, 0.768, and 0.900, 0.829, respectively, which are all greater than 0.7, indicating that each dimension has good reliability, indicating that the questionnaire has good stability and credibility. The consistency between the questions is good.

4.4. Validity Analysis

This article used exploratory factor analysis to test the validity of the measurement structure. It also used KMO (KMO > 0.7) and Bartlett’s sphere test (Sig. < 0.005) to test the validity of the measurement-scale structure. The calculated result is KMO = 0.912 > 0.7, and the Bartlett’s sphere test value is significant (Sig. < 0.001), indicating that the questionnaire data meets the premise of factor analysis. As shown in

Table 4. Reliability and validity test of the scale.

Variable	Number of Items	Cronbach’s α	Cronbach’s α	Factor Loading	Cumulative Explained Variance%
Product-satisfaction factor	5	0.938	0.871	0.849	65.943
Consumer price-rationality factor	5		0.867	0.844	65.369
Consumption-channel-diversity factor	3		0.718	0.635	57.309
Consumption-promotion-effectiveness factor	4		0.727	0.647	55.017
Consumption-security factor	3		0.768	0.660	68.411
Consumer-satisfaction factor	5		0.900	0.886	71.401
Consumption-expectation factor	5		0.829	0.833	59.858

Note: The principal component method is used to extract the factors whose characteristic roots are greater than 1, and the maximum variance rotation method is used. The KMO values are all greater than 0.60, and the Bartlett sphere test’s values are all significant.

, each factor’s explanatory power is 65.943%, 65.369%, 57.309, 55.017%, 68.411%, 71.401%, which are all greater than 50%, indicating that the seven factors selected are significantly representative. The hidden-factor-loading coefficient is less than 0.4, the loading of each measurement item factor is greater than 0.5, and the cross load is less than 0.4. Each item falls into the corresponding factor, indicating that the measurement scale has good structural validity.

5. Structural Equation Model Analysis

5.1. Hypothesis Testing

In the confirmatory factor analysis model, the acceptable fit index standards include the absolute fit index and relative fit index. The absolute fitting index includes: CMIN/DF, chi-square divided by the degree of freedom of the model, the smaller the better; the CMIN/DF of the model in this study = 2.557, which meets the requirements. GFI, the variance and covariance obtained by model fitting can explain the data’s variance and covariance. The closer to 1, the better the model fitness. The GFI of this model is 0.914, which is in-line with the ideal value. CFI not only considers the relationship between the hypothetical model and the independent model, but also considers the degree of dispersion of the central chi-square distribution in the hypothetical model and the theoretical one. CFI > 0.9 indicates that the fitting effect is good. The CFI of this research model is 0.864, which is slightly lower than the ideal value. RMR is the mean value of the difference between each constituent element of the regeneration matrix and the initial data, the smaller the better; the research model RMR = 0.134, which meets the requirements. RMSEA averages the square root of the square error; RMSEA < 0.08 determines that the fitting effect is better; the RMSEA of this research model is 0.067, meaning the value is significant. the relative fitting index is NFI, assuming the difference between the model and the independent model, NFI > 0.9 indicates that the fitting effect is better than good; the model in this study has an NFI = 0.873, which meets the requirements. TLI is when the NFI is adjusted from the perspective of degrees of freedom, and TLI > 0.9 indicates that the fitting effect is better. The model in this study has a TLI = 0.842, which is slightly lower than the ideal value. Although the relationship established by the structural equation model has passed the significance test, CMIN/DF, GFI, RMR, and RMSEA all reach the ideal value, but CFI, NFI, TLI are slightly lower than the ideal value. This means the model still needs to be revised.

It can be seen from

Table 5. Estimation of the path coefficients of the structural equation model of the cultural industry.

	Standardized Estimates	Unstandardized Estimates	S.E	C.R.	P
Consumer satisfaction←Product satisfaction	0.27	0.28	0.078	3.592	***
Consumer satisfaction←Consumer price rationality	0.282	0.216	0.056	3.832	***
Consumer satisfaction←Diversity of consumption channels	0.204	0.295	0.112	2.624	***
Consumer satisfaction←Consumption security	0.565	0.513	0.090	5.686	***
Consumer satisfaction←Consumer promotion effectiveness	0.361	0.273	0.062	4.397	***
Consumer expectations←Consumer satisfaction	0.294	0.341	0.118	2.885	***

*** means p < 0.01.

that product satisfaction has a significant impact on consumer satisfaction (β = 0.27, p < 0.001), indicating that the more products are satisfactory, the higher consumer satisfaction is. Hypothesis H1 holds; the rationality of consumer prices affects consumer satisfaction (β = 0.282, p < 0.001) and has a positive effect. The more reasonable the price of consumption, the higher the consumer satisfaction. Hypothesis H2 holds; the diversity of consumption channels has a positive effect on consumer satisfaction (β = 0.204, p < 0.001). The more diverse the consumption channels, the higher the consumer satisfaction. Hypothesis H3 holds; the effectiveness of consumer promotion has a positive influence on consumer satisfaction (β = 0.565, p < 0.001); the more effective consumer promotion is, the higher the consumer satisfaction. Hypothesis H4 holds; consumer security has a positive impact on consumer satisfaction (β = 0.361, p < 0.001); the higher the consumer security, the higher the consumer satisfaction. Hypothesis H5 holds; Consumer satisfaction has a positive effect on consumption expectation (β = 0.294, p < 0.001). The higher the consumer satisfaction, the higher the consumer-expectation degree. Hypothesis H6 is established; consumer satisfaction plays a mediating role (indirect effect β = 0.27 × 0.294 = 0.079) between consumer price rationality and consumption expectations. Consumer satisfaction plays a mediating role between consumer price rationality and consumption expectations (indirect effect β = 0.282 × 0.294 = 0.083); thus, hypothesis H8 is established. Consumer satisfaction plays a mediating role between the diversity of consumption channels and consumption expectations (indirect effect β = 0.204 × 0.294 = 0.060); hypothesis H9 is established. Consumer satisfaction plays an intermediary role between the effectiveness of consumer promotion and consumption expectations (indirect effect β = 0.565 × 0.294 = 0.166); hypothesis H10 holds. Consumer satisfaction plays an intermediary role between consumption security and consumption expectation (indirect effect β = 0.361 × 0.294 = 0.106); hypothesis H11 holds.

5.2. The Second-Order CFA and Its Effect on Quoting the Supply-Side Structural Reform Motivation Factor

Although the first-order CFA can verify the hypothesis, model improvements and corrections can be made. Research by Chi-Shiun Lai et al. (2010) [43] shows that the first-order CFA factor model and the second-order CFA factor model can be used separately, and according to the research of Marsh and Hocevar (1985) [44], the target coefficient (the first-order factor related chi-square value/chi-square value of the second-order model) can be calculated to determine the fitness of the data. A target coefficient T value close to 1 means that the second-order CFA can replace the first-order CFA, making the model more accurate and representative. The T value of cultural consumption in this article is 0.99 (1020.34/1025.43), which is close to the target coefficient of 1, indicating that the fitness index of the second-order CFA of the cultural industry shows good adaptability.

Rex B. Kline (2009) [45] pointed out that, in order to identify a CFA model with second-order factors, there must be at least three first-order factors (a similar requirement for a standard single-factor CFA model is that it has at least three indicators). Otherwise, the direct influence of the second-order factor on the first-order factor or interference variance can be identified. In addition, each first-order factor should have at least two indicators. When the second-order model has more than four first-order factors, the chi-square value of the second-order model is greater than the correlation chi-square value of the first-order factor. In the model in Figure 2 of this study, there are five first-order CFA models in the second-order CFA model, and each first-order factor has at least three indicators, which all meet the requirements.

Therefore, as shown in

Table 6. Targets for the second-order verification factor model of Jiangsu cultural industry under the dominance of domestic internal circulation.

Culture Industry Verification Factor Mode	χ2	df	χ2/df	GFI	AGFI	CFI	RESEA
Null model	3594.619	435	8.263	0.134	0.074	0.000	0.250
1.First-order seven-factor analysis (No correlation between factors)	1337.924	405	3.304	0.543	0.476	0.543	0.141
2.First-order seven-factor model (The factors are related)	1020.34	399	2.557	0.914	0.815	0.864	0.067
3.Second-order factor mode	1025.43	398	2.576	0.910	0.903	0.913	0.078
suggested value	The smaller the better	The bigger the better	<5	>0.8	>0.8	>0.9	<0.08

, the indicators of the second-order factor model are CMIN/DF = 2.576, GFI = 0.910, AGFI = 0.903, RMR = 0.078, indicating that the revised cultural-industry structure-equation model meets the requirements (Figure 3), of which the two in the table. The numerical values of the first-order CFA factor model are all significant, so the second-order CFA can be used instead of the first-order CFA. The second-order model is a simplification of the first-order model, which simplifies the structural-equation model. This study used the results of the second-order CFA to realize the structural equation model analysis.

The power source factors for supply-side reform include product-satisfaction factors, consumer price-rationality factors, consumption-channel-diversity factors, consumption-promotion-effectiveness factors, and consumption-security factors, and the five factors are highly correlated, so the supply-side power source factor of reform can well represent these five factors. It is shown from

Table 7. The estimated path coefficients of the revised structural-equation model of the cultural industry.

	Standardized Estimates	Unstandardized Estimates	S.E	C.R.	P
Consumer satisfaction←Supply-side-reform power source	0.941	1.796	0.248	7.235	***
Product satisfaction←Supply-side-reform power source	0.797	1.000
Consumer price rationality←Supply-side-reform power source	0.851	1.427	0.218	6.540	***
Diversity of consumption channels←Supply-side-reform power source	0.794	1.226	0.205	5.992	***
Consumer promotion effectiveness←Supply-side-reform power source	0.903	1.547	0.245	6.303	***
Consumption security←Supply-side-reform power source	0.916	1.338	0.222	6.017	***
Consumer expectations←Consumer satisfaction	0.413	0.339	00.080	4.243	***

*** means p < 0.01.

that the supply-side-reform power source factor has a significant positive impact on consumer satisfaction (β = 0.941, p < 0.001). For every unit increase in the supply-side-reform power source factor of cultural consumption, consumer satisfaction will increase by 0.941 units with a conversion rate of 94.1%. Consumer satisfaction plays a mediating role between the supply-side-reform power source and consumption expectations (indirect effect β = 0.941 × 0.294 = 0.277), and the mediating effect is significant.

6. Conclusions and Policy Implications

6.1. Conclusions

This article is based on consumers in Jiangsu’s cultural industry led by domestic internal circulation as the research object, based on the concept of Jiangsu’s cultural-industry supply-side structural reform, and based on the characteristics of Jiangsu’s cultural-industry supply-side structural reform in cultural consumption. Five factors affect cultural consumption. Through the effective survey of consumers through questionnaires, the empirical test of the proposed path model was carried out. The research found that, under the dominance of domestic internal circulation, product-satisfaction factors, consumer price-rationality factors, consumer-channel-diversity factors, consumer-promotion-effectiveness factors and consumer-security factors have a positive impact on consumer-satisfaction factors, and the supply-side-structural-reform power source has a significant positive impact on consumer satisfaction, and consumer satisfaction has a positive impact on consumer expectations. According to the research results, policy recommendations are made on the supply-side structural reform of Jiangsu’s cultural industry, with a view to developing Jiangsu’s cultural industry through domestic internal circulation and promoting the supply-side reform of Jiangsu’s cultural industry.

6.2. Policy Implications

Due to the constant changes in the external environment and the prevalence of unilateralism in some countries, the new crown epidemic has severely impacted the national economy. Therefore, based on domestic internal circulation, the cultural industry in Jiangsu Province has driven the optimization and upgrading of Jiangsu’s cultural industry structure through “supply-side reforms” in order to restore the development of cultural industries in an effective way. The cultural industry’s supply-side structural reform is a systematic project, which has been undergoing dynamic changes. Suppose the government wants to establish an efficient cultural market and carry out reform smoothly. In that case, it is necessary to cooperate with associations, enterprises, governments, scenic spots, departments, and consumers involved in the cultural industry in an epidemic situation. Only through overall planning can the structural reform of Jiangsu’s cultural supply-side be carried out smoothly. In recent years, China’s economy has proliferated. As a significant cultural and economic province, Jiangsu has continuously improved residents’ income, residents’ cultural-consumption quality, and continuously updated demands alongside China’s economic development. These continually increasing demands of residents require the rapid development of the cultural industry, representing the country’s soft power. Therefore, it is necessary to continuously explore the driving force of structural reforms on the supply side of Jiangsu’s cultural industry, meet the upgrading of cultural consumption, and promote the recovery and stable development of the cultural industry under the dominance of domestic internal circulation.

6.3. Optimize the Supply of Cultural Industries, Enrich the Content of Cultural Industries, and Increase Cultural Consumer Products

In the context of the further development of the domestic internal circular economy and the new normal economy, the optimization and integration of traditional cultural industries and emerging cultural industries have become the focus of supply-side reforms. In the service industry, full use should be made of Jiangsu’s cultural resources to provide cultural services that the public loves to consume. High-quality, personalized cultural products and services should be provided to different consumers. In addition, full use should be made of Jiangsu’s cultural resources, such as Jinling culture and Chu-Han culture, to continuously enrich cultural-industry content, such as tourist attractions, cultural relics, historical relics, movies, performing arts, publications, artworks, animation, etc. Cultural consumer products enrich the spiritual and cultural needs of consumers.

6.4. Encourage Cultural Innovation, Create New Cultural Products, and Achieve the Upgrading of Domestic Internal Recycling Cultural Consumption

With the constant changes in the times, cultural consumption is constantly changing, such as through Internet shopping, blog control, mobile phone control, Weibo control, WeChat control, and Internet of Things. These have formed new consumption attitudes and consumption habits, which are very different from traditional consumption patterns. On the other hand, the objects of Chinese cultural consumption have also changed with the advancing of the years. Post-80s, post-90s, and post-00s have become the main components of cultural consumption, and will replace the main body of cultural consumption of the older generations born in the 60s and 70s.

Nowadays, new consumers have higher requirements for cultural consumption. The individualization, hobbies, and aesthetics of consumption affect the development of the cultural-market structure to a large extent. Therefore, it is necessary to comprehensively improve the innovation consciousness of the cultural industry in Jiangsu Province, strengthen the innovation of cultural products, and increase Jiangsu cultural-products’ brand value. To encourage the innovation of cultural enterprises, high-end and personalized cultural new products should be actively researched and developed, the grade and quality of cultural products should be improved, demand by production should be created, demand should be attracted by creation, demand guided by recent trends, and sales sought by production. Although, due to the impact of the epidemic, a huge domestic development space is faced, we continue to explore and achieve the upgrading of cultural consumption to provide impetus for the structural reform of Jiangsu’s cultural industry’s supply side.

6.5. Deepen the Reform of Government Cultural Supply, Optimize the Cultural System, and Ensure Cultural Consumption

Under the dominance of domestic internal circulation, government departments need to strengthen IPR protection continuously and patent systems, protect the rights and interests of innovators, support original cultural works, and vigorously support the creation of cultural boutiques by small, medium and micro enterprises. The laws of the cultural market should be understood, the market taken as the leading factor, the reform and optimization of the cultural system should be guided, full use of the market made, and an environment created that emphasizes cultural innovation and fair competition. The reform of the cultural supply side should be enacted to fundamentally solve the problem of low-end supply, reform the cultural system, take measures to stop the abuse of fast-food culture that endangers the physical and mental health of the people, and protect consumers’ cultural consumption.