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Case study
Publication date: 12 July 2023

Ram Subramanian and Grishma Shah

To understand how certain cultural dynamics play out in the case, the main attributes of Hofstede and Meyer’s work are first highlight. While Hofstede focuses on national culture…

Abstract

Theoretical basis

To understand how certain cultural dynamics play out in the case, the main attributes of Hofstede and Meyer’s work are first highlight. While Hofstede focuses on national culture, Meyer’s uses culture as a tool by which to gauge behavior within organizations, teams and individuals. Below the main elements of their work are highlighted. Hofstede’s cultural dimensions are detailed in IM Exhibit 1. Note there are six dimensions on a scale of 0–100. The higher the number, the higher that element of that dimension. For example, the individualism score for the USA is 91, whereas China’s score is 20, suggesting that Americans are much more individualistic, whereas the Chinese are much more collectivist. Students can find where the USA, France and China, the three countries discussed in the case, stand at the Hofstede’s website noted below. For reference, these are also noted in IM Exhibit 2.

Research methodology

All of the information in the case was gathered using publicly available secondary sources (i.e. news articles, annual reports and executive/employee interviews). All sources are cited at the end of the Case/IM.

Case overview/synopsis

On April 12, 2022, LVMH Moet Hennessy Louis Vuitton (LVMH), the global leader in the personal luxury goods, released first quarter earnings for 2022, highlighting their latest acquisition, the New York City-based Tiffany & Co (Tiffany). Tiffany had performed well due to growth in demand in the USA following two difficult years because of the global COVID-19 pandemic. This underscored the fact that Tiffany was still largely dependent on the US market, which was a cause for concern for CEO, Anthony Ledru, who was brought in by the parent LVMH to elevate Tiffany and exploit the high growth market for personal luxury goods in China and other parts of Asia-Pacific. LVMH’s acquisition of Tiffany had been completed on January 7, 2021, and LVMH was expecting the turnaround of the largely US-centric Tiffany to show results by shifting focus to higher-end and more iconic jewelry lines and greater expansion in China. Nonetheless, Ledru’s ability to address the China market for Tiffany was constrained by culture clashes between the company’s French owners and management team and its large cadre of US-based employees. Employees chaffed at what they felt was a rigid and autocratic management style and at the company’s insistence on limits to a work-from-home policy that was instituted in early 2020 because of the pandemic. Ledru and his top management team had to quickly overcome the internal clashes and employee issues to make significant inroads in the China market.

Complexity academic level

This case is appropriate for undergraduate and MBA courses addressing dynamics of global business, strategy and culture, such as cross-cultural management, international business, global strategy and organizational behavior. At both levels, its is found that the case will be valuable in generating a lively discussion on organizational and strategic challenges grounded in often lesser discussed issues around cultural fit. In most courses, the case should be positioned toward the end, mainly because it examines both cultural challenges (French ownership of a quintessentially American company) and strategic initiatives (how to grow the brand itself along with geographic expansion, i.e. China), assuming that the module has covered one or the other/or both at different points in the course.

Details

The CASE Journal, vol. 20 no. 2
Type: Case Study
ISSN: 1544-9106

Keywords

Article
Publication date: 27 February 2024

Lydia Mähnert, Caroline Meyer, Ulrich R. Orth and Gregory M. Rose

The purpose of this paper is to examine how users on social media view brands with a heritage. Consumers commonly post opinions and accounts of their experiences with brands on…

Abstract

Purpose

The purpose of this paper is to examine how users on social media view brands with a heritage. Consumers commonly post opinions and accounts of their experiences with brands on social media. Such consumer-generated content may or may not overlap with content desired by brand managers. Drawing from “The medium is the message” paradigm, this study text-mines user narratives on Twitter1 to shed light on the role of social media in shaping public images of brands with heritage through the lens of the stereotype content model.

Design/methodology/approach

The study uses a data set of almost 80,000 unique tweets on 12 brands across six categories, compares brands high versus low in heritage and combines dictionary-based content analysis with sentiment analysis.

Findings

The results indicate that both user-generated content and sentiment are significantly more positive for brands low rather than high in heritage. Regarding warmth, consumers use significantly more positive words on sociability and fewer negative words on morality for brands low rather than high in heritage. Regarding competence, tweets include more positive words on assertiveness and ability for low-heritage brands. Finally, overall sentiment is more positive for brands low rather than high in heritage.

Practical implications

Important from co-creation and integrated marketing communication perspectives, the findings provide brand managers with actionable insights on how to more effectively use social media.

Originality/value

To the best of the authors’ knowledge, this research is among the first to examine user-generated content in a brand heritage context. It demonstrates that heritage brands, with their longevity and strong links to the past, need to be aware of how contemporary social media can detract from their image.

Details

Journal of Product & Brand Management, vol. 33 no. 3
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 29 March 2024

Rui Guo, Jingxian Wang, Min Zhou, Zixia Cao, Lan Tao, Yang Luo, Wei Zhang and Jiajia Chen

The study aims to examine how different types of green brand ritual (GBR) influence customer engagement behavior and the mediation mechanisms and boundary conditions of the…

Abstract

Purpose

The study aims to examine how different types of green brand ritual (GBR) influence customer engagement behavior and the mediation mechanisms and boundary conditions of the positive and negative pathways.

Design/methodology/approach

The study conducts two online experiments to collect data from a total of 940 consumers in China. Hypotheses are tested by independent samples t-test, two-way ANOVA and Hayes' PROCESS model.

Findings

Different kinds of GBR have different effects on customer engagement behavior. Internal GBR is more likely to play a positive role by inciting connectedness to nature. External GBR is more likely to play a negative role by inciting psychological resistance. This dual effect is especially pronounced for warm brands rather than competent brands.

Originality/value

The study pioneers the brand ritual into the field of interactive marketing and enriches its dual effect research. Additionally, the study figures out whether the category of brand ritual can trigger negative effect.

Practical implications

Inappropriate brand rituals are worse than no rituals at all. The results provide guidance for green companies to design effective brand rituals to strengthen the connection with consumers. Green brands should describe brand rituals in vivid detail and consciously lead consumers to immerse themselves in them.

Details

Journal of Research in Interactive Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-7122

Keywords

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