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1 – 10 of over 1000The purpose of this paper is to test the difference among foreign and domestic cosmetics firms in terms of types of strategic innovations they chose in the Chinese market, and the…
Abstract
Purpose
The purpose of this paper is to test the difference among foreign and domestic cosmetics firms in terms of types of strategic innovations they chose in the Chinese market, and the difference between domestic large-sized cosmetics firms and cosmetics small- to medium-sized enterprises (SMEs) about types of strategic innovation they choose in the Chinese market.
Design/methodology/approach
The independent-sample t-test was used to compare foreign and domestic cosmetics firms and domestic SMEs and large-sized cosmetics firms.
Findings
Foreign and domestic cosmetics firms should not choose the same type of strategic innovations, and it also showed that Chinese domestic large-sized firms and SMEs should not choose the same types of strategic innovations.
Research limitations/implications
China is the exclusive place of focus. Only 19 types of strategic innovations were analyzed. There may be other variables that have not been addressed in the study.
Practical implications
Though other large-sized companies achieved considerable profitability or growth by using some types of strategic innovations, the same types may not contribute to the same profitability or growth for SMEs. Although foreign cosmetics companies had great growth and profitability in the Chinese market, domestic large-sized companies should not blindly follow them as their needs and situations are different.
Originality/value
From this t-test analysis, it is clear that foreign cosmetics firms and domestic cosmetics firms chose different types of strategic innovation in the Chinese market. Meanwhile, domestic large-sized cosmetics firms and SMEs chose different types of strategic innovation.
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Yudha Dwi Nugraha, Rezi Muhamad Taufik Permana, Dedy Ansari Harahap, Mohsin Shaikh and Hofifah Ida Fauziah
This study aims to investigate how the social identity theory and emotional attachment theory influence the willingness of consumers to buy foreign cosmetic products…
Abstract
Purpose
This study aims to investigate how the social identity theory and emotional attachment theory influence the willingness of consumers to buy foreign cosmetic products. Specifically, this study examines the relationship between consumer ethnocentrism, foreign product judgment and willingness to buy foreign products. Furthermore, the interaction effect of consumer affinity and patriotism are tested in the model.
Design/methodology/approach
An online survey of 208 millennial Muslim women consumers was used to collect the data. The structural equation modeling test was used to assess the six hypotheses. Moreover, the two-step estimation approach was used to test the interaction moderation of consumer affinity and patriotism.
Findings
The results indicate that consumer ethnocentrism has a positive and significant relationship with foreign product judgment. Foreign product judgment was also found to have a positive and significant relationship with willingness to buy. In addition, this study concludes that affinity was found to moderate the relationship between consumer ethnocentrism and foreign product judgment and strengthen the positive and significant effect of foreign product judgment on the willingness to buy. Finally, patriotism did not moderate the relationship between consumer ethnocentrism and foreign product judgment. However, patriotism moderated the relationship between foreign product judgment and willingness to buy.
Research limitations/implications
This study only focused on one category (i.e. low involvement product), and the authors recommend future studies to examine a high involvement product. Other individual orientation constructs, such as xenocentrism, need to be examined in future studies. Moreover, only intentional measures were investigated. Thus, further research could correlate intentional measures with product ownership. Finally, future research could examine how consumers behave differently across nations. Thus, the present model would require cross-cultural research.
Practical implications
Marketers focusing on global branding and international marketing can benefit from the findings of this paper by understanding the antecedents of consumers’ willingness to buy in the foreign cosmetic products setting. Additionally, foreign cosmetic marketers could focus on consumer affinity to strengthen the communication with and arouse the affinity of Muslim millennials women consumers in Indonesia. Finally, marketers can incorporate messages and signals of patriotism in their marketing communications to increase Muslim millennial women consumers’ love and pride.
Social implications
The growing obsession with beauty among women has led to the immense growth of the cosmetics industry. This phenomenon has spawned an abundance of cosmetic products on the market. The advancement of information technology has further increased competition for cosmetic products as more products can be quickly brought to market. Muslim millennials consumers must be aware and careful about raw materials, impacts on long-term health, impacts on the national economy, environmental impacts and halal certification when using various kinds of cosmetics.
Originality/value
This study contributes to the literature on international marketing research by incorporating the interactive effect of consumer affinity and patriotism in the acceptance of foreign cosmetic products.
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Byoungho Jin, Jae-Eun Chung, Heesoon Yang and So Won Jeong
Contrary to the mainstream born global (BG) perspective, some previous studies report the incremental expansion of BGs. In addition, the reasons behind BGs initiating specific…
Abstract
Purpose
Contrary to the mainstream born global (BG) perspective, some previous studies report the incremental expansion of BGs. In addition, the reasons behind BGs initiating specific steps, if any, and BGs’ entry market choices are still unknown or rather contrasting. This study views that such contrasting findings may be attributed to the contexts in which BGs operate. Within the context of consumer goods BGs, the purpose of this paper is to examine the entry market choices and post-entry growth patterns, and investigate the underlying reasons.
Design/methodology/approach
This study adopted in-depth historiographic case research from seven Korean BGs in the consumer goods sector that demonstrated success in internationalization. Multiple sources were used to gather data from each case. A total of 14 interviews, approximately two one-on-one interviews per firm, were the major means of data collection.
Findings
The findings revealed that first entry market choices among BGs functioned largely as attempts at emergent opportunities. However, after the first wave of entry into countries with available selling opportunities, entry market choice became a simultaneous pursuit of strategic markets and emergent selling opportunities. BGs focusing on image-oriented consumer goods appeared more strategic when entering the world’s leading markets to gain brand reputation. The analyses of internationalization processes revealed three patterns, which collectively implied that each move to the next stage came from a strategic decision to solve the problems related to survival and strategic visions for growth.
Originality/value
One contribution of this paper is the provision of empirical evidence for entry market choices among consumer goods BGs. The findings suggest that BGs’ entry market choices may not be a simple matter of simultaneous expansion to the world’s lead market. Instead, they may comprise more strategic decision. While previous studies have suggested such evolutionary or path-dependent internationalization processes, this study is among the first to reveal specific growth patterns and the possible reasons behind them.
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Vasileios Davvetas and Alessandro Biraglia
Although firm growth through the acquisition of independent players is at a record high, market reports reveal a parallel increase in independent firms that enjoy noticeable…
Abstract
Purpose
Although firm growth through the acquisition of independent players is at a record high, market reports reveal a parallel increase in independent firms that enjoy noticeable consumer support across industries and threaten MNC-owned brands in several countries. Despite this evident contrast, no research has investigated how independent firms stack up against their non-independent counterparts from a consumer perspective. This study examines this standoff and proposes that independent firms outperform their non-independent contenders in fostering perceptions of product craftmanship and warmth in specific product categories and cultures.
Design/methodology/approach
Three experimental studies were conducted across five countries (Study 1: N = 360; USA and China – Study 2: N = 487; UK and India – Study 3: N = 323; Italy). Data were analysed using experimental techniques (Analysis of Variance) and conditional process analyses (Moderated Mediation) using PROCESS.
Findings
The findings suggest that (1) firm independence fosters perceptions of product craftmanship and warmth in individualistic cultures, (2) consumers view products sold by independent firms as warmer and more authentic than products sold by non-independent firms in hedonic but not in utilitarian product categories, (3) the positive effects of firm independence on product craftmanship and warmth are neutralized for vertically collectivist cultures (India) and reversed in horizontally collectivist cultures (China), (4) loss of firm independence leads to higher drops in perceived craftmanship and product preference when it is caused by a takeover from a foreign multinational (compared to a domestic corporation).
Originality/value
This research provides a first account of how perceptions of firm independence drive assessments of product craftmanship and authenticity, elicit feelings of warmth and build product preference. The findings inform decisions of multinational corporations regarding (1) how to communicate the acquisition of independent firms in local markets, (2) how to balance an international brand portfolio in culturally diverging markets and different product industries, (3) how to optimize brand architecture through the relative exposure of the corporate brand image vis-à-vis the image of standalone brands owned by the corporation and (4) offer smaller independent players an alternative positioning strategy to differentiate from global competitors enjoying the resources or support of bigger corporations.
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Călin Gurău and Ashok Ranchhod
The market of ecological products is growing exponentially at global level, however, there are very few studies focused on the international marketing strategies of eco‐firms…
Abstract
Purpose
The market of ecological products is growing exponentially at global level, however, there are very few studies focused on the international marketing strategies of eco‐firms. Seeks to address the issues.
Design/methodology/approach
On the basis of the information collected during interviews conducted with six British and six Romanian eco‐firms with international activity, the main opportunities and challenges for international green marketing are identified and analysed.
Findings
The findings show important differences between the Romanian and the British firms, mainly determined by the level of development of their domestic market. The Romanian firms usually export ecological products using foreign agents, while the British firms sell internationally using their own brand name and attempting to control the foreign distribution channels. The similarity of the foreign market selection process applied by the UK eco‐firms has allowed the development of a tentative theoretical framework in the second part of the paper.
Originality/value
The paper provides insights into the issues surrounding the marketing of ecological products in the international marketplace.
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Byoungho Ellie Jin, Daeun Chloe Shin, Heesoon Yang, So Won Jeong and Jae-Eun Chung
Little is known about Indonesian consumers' acceptance of global brands despite their huge retail market potential. Drawing from Festinger’s (1957) cognitive dissonance theory and…
Abstract
Purpose
Little is known about Indonesian consumers' acceptance of global brands despite their huge retail market potential. Drawing from Festinger’s (1957) cognitive dissonance theory and Schwartz’s (1992) value system, this study aims to examine the effect of Indonesian consumers' religiosity, cosmopolitanism and ethnocentrism on their preference for and purchase intention towards global brands.
Design/methodology/approach
Data were collected from 316 female consumers aged 20 years or older living in Indonesia via a professional online survey firm. The firm sent prospective participants an email invitation with a survey URL. Confirmatory factor analysis and structural equation modelling were conducted using AMOS 24.0 to test hypotheses.
Findings
The analyses revealed that Indonesian consumers' religiosity increased their ethnocentrism but not cosmopolitanism. Further, ethnocentrism decreased global brand preference without affecting purchase intention towards Korean cosmetics, whereas cosmopolitanism increased both global brand preference and purchase intention towards Korean cosmetics.
Originality/value
The findings show that cosmopolitanism has a stronger influence on global brand preference than ethnocentrism, suggesting ethnocentrism’s diminishing relevance in predicting purchase intention for foreign products. Additionally, religiosity’s effect on ethnocentrism was confirmed.
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Bettysa Dornelas, Felipe Esteves and Jorge Carneiro
The purpose of this chapter is to offer instructors and students a real managerial dilemma faced by a large Brazilian company in the cosmetics industry as it ventures into the…
Abstract
Purpose
The purpose of this chapter is to offer instructors and students a real managerial dilemma faced by a large Brazilian company in the cosmetics industry as it ventures into the European arena after successful expansion in Latin America.
Methodology/approach
This is a teaching case for use in class discussion about the advantages and disadvantages of certain courses of internationalization, in particular, standardization versus adaptation of the marketing mix, the choice of entry and operation modes, and the management of international acquisitions.
Findings
Since this is a teaching case, there are no “findings” in the usual sense of the word related to traditional empirical studies.
Research limitations/implications
Data for the case came mainly from the manifested perspectives of the company’s Vice-president of International Operations, complemented by the opinions of the company’s Senior Manager of Strategic Planning and of a business analyst of the cosmetic industry, which has been following the company for years. Such data may reflect the particular views of these actors. The authors also used public secondary data from the company’s presentations to the public, consulting companies, and business magazines. Although these accounts may be partial, this is not a severe limitation since a teaching case is expected to provide some information, but not a full set of information, in order to reflect better the real context of managerial decisions.
Practical implications
This teaching case study can help students reflect upon a real managerial dilemma related to international expansion of a firm into psychically distant markets.
Originality/value
This teaching case discusses how an emerging market firm can challenge strong incumbents in developed markets and find a viable positioning, based on a distinctive sales model and value proposition for customers.
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According to John Dunning’s eclectic paradigm, firms need to have ownership, location, and internalization advantages in order to cross borders and engage in foreign direct…
Abstract
According to John Dunning’s eclectic paradigm, firms need to have ownership, location, and internalization advantages in order to cross borders and engage in foreign direct investment. By drawing on historical evidence on the evolution of a group of leading marketing‐based multinationals in consumer goods, this paper claims that, despite its richness, the eclectic paradigm, and in particular the concept of “ownership advantages,” needs to be revised and extended to take into account different levels of institutional analysis. For the eclectic paradigm to give a rounded view of the internationalizing firm, it needs to acknowledge the critical importance of firm‐specific ownership advantages, such as the role of the entrepreneur.
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Robin A. Coulter, Lawrence F. Feick and Linda L. Price
Research conducted in the early 1990s in Hungary indicated a lack of knowledgeable and influential personal sources in the cosmetics product category. The purpose of this article…
Abstract
Research conducted in the early 1990s in Hungary indicated a lack of knowledgeable and influential personal sources in the cosmetics product category. The purpose of this article is to examine women cosmetics opinion leaders in Hungary approximately ten years into the country’s transition to a market economy. Because of the evolution of the cosmetics market over the past decade and Hungarian women’s increased involvement with cosmetics, we expected to see the emergence of opinion leadership in the product category. Survey data from 340 Hungarian women indicate that the incidence of cosmetics opinion leadership and self‐reported product knowledge is lower than what we might expect in more established market economies. Nonetheless, we found the relationships between cosmetics opinion leadership in Hungary and antecedent and consequent variables are similar to what we would expect in more established market economies. We discuss the implications of these results for marketing managers.
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