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1 – 10 of 171The purpose of this study is to investigate the credibility of advertising vs publicity; to examine the credibility of advertising including a promotional endorser (APE) and…
Abstract
Purpose
The purpose of this study is to investigate the credibility of advertising vs publicity; to examine the credibility of advertising including a promotional endorser (APE) and publicity including a promotional endorser (PPE); to compare the credibility of advertising across the different demographic segments; and to explore the important factors affecting consumers' shopping considerations of new fast moving consumer goods (FMCGs) in Turkey.
Design/methodology/approach
The data was gathered by a telephone survey from a sample of 717 of which 348 respondents wanted to participate from three of Turkey's largest cities, İstanbul, Ankara, and İzmir. The systematic sampling was exercised to select the sample. χ2 and t‐tests were computed and the results of them were significant at 0.05 level.
Findings
For announcing new FMCGs in Turkey, advertising was found to be more credible by the participants with higher income. Respondents' shopping decisions of new FMCGs were affected by price and quality more than the other factors. Consumers tended to rely on publicity more than advertising; more than APE; and more than PPE. They also tended to count PPE more credible than APE.
Originality/value
The findings suggest that it would be appropriate for advertising managers, who wish to market to Turkey, to consider recipients' income levels in regard to the credibility of advertising for new FMCGs. It is also important to note for international companies that price and quality play a major role on Turkish consumers' shopping decisions of new FMCGs among the other factors including experiments, organizational trust, and word‐of‐mouth.
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Md. Noor Un Nabi and Imtiaz Masroor
Increasing digitalization and the advent of Industry 4.0 were scrutinized on how these may influence SDG attainment in different levels. The digitalization of the business and…
Abstract
Increasing digitalization and the advent of Industry 4.0 were scrutinized on how these may influence SDG attainment in different levels. The digitalization of the business and operational models emerged as the newer source of attaining competitive advantage in the pre-COVID-19 context. The COVID-19 pandemic has undoubtedly added more complexities to the already prevailing VUCA context of sustaining the business and development agenda irrespective of their geographic or institutional affiliations. Businesses in different industries, particularly in the developing countries, had lower or no preparedness in most cases in dealing with such uncertainties arising from the pandemic. Business firms and governments started to revise and digitalize their business models at the enterprise and institutional levels. To be very precise, MNCs in the fast-moving consumer goods industry in Bangladesh restructured their business model, at least the supply chain part, through direct and indirect digitalization of their business models, partly developing cooperation with existing e-commerce platforms. Volatile, uncertain, complex, and ambiguous focused corporate leadership and strategy helped in halting drastic slipping on the SDG millstones for Bangladesh. Despite the prevalent COVID-19 context, Bangladesh graduated to the club of the developing countries by retaining eligibility position on the gross national income index, human assets index, and economic vulnerability index. This chapter attempts to establish theoretical structuration of the links between digitalization and transformation of the business models and handling the SDG challenges.
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This chapter applies Axelrod’s (1976) and Huff’s (Huff, A. S. (1990). Mapping strategic thought. In A. S. Huff (Ed.), Mapping strategic thought (pp. 88–115). Chichester: Wiley;…
Abstract
This chapter applies Axelrod’s (1976) and Huff’s (Huff, A. S. (1990). Mapping strategic thought. In A. S. Huff (Ed.), Mapping strategic thought (pp. 88–115). Chichester: Wiley; Jenkins & Huff, 2002) approach to mapping strategic thought (causal mapping) to (1) categorize how manufacturers of new fast moving consumer goods (FMCGs) may respond to environmental feedback to their decisions and (2) assess the effectiveness of alternative implemented decisions in assisting organizational growth. The manufacturing of new FMCGs requires timely product modifications in the assumptions of entrepreneur thinking in response to environmental responses/non-responses to decisions/actions of the manufacturing enterprise. A detailed example of causal mapping analysis is presented for a manufacturing entrepreneurial case study; the example covers processes linking events, decisions, and activities in business start-up, growth, and failure of the enterprise. The chapter closes by suggesting that causal mapping analysis is a valuable tool for advancing theory construction from case study research. The chapter provides a research plan for future reports applying causal mapping in retailing entrepreneur studies.
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Jyrki Isojärvi and Jaakko Aspara
While most marketing research on organic products refers to the premium price levels of organic products, little research exists on consumers’ behavioural responses to price…
Abstract
Purpose
While most marketing research on organic products refers to the premium price levels of organic products, little research exists on consumers’ behavioural responses to price promotions or discounts of organic products. The present study aims to fill this research gap.
Design/methodology/approach
To develop alternative hypotheses about consumers’ behavioural responses to price promotions of organic fast-moving consumer good (FMCG) products, the authors used the researcher-introspection method in a pre-study. To test the hypotheses developed based on the pre-study, the authors conducted a field experiment on online advertising of an FMCG sold in drugstores. In the field experiment, the authors exposed consumers to an online ad featuring either a price promotion (−20%) or the regular price of the product. The ads also varied in terms of whether they contained explicit organic claims or not, and whether they included implicit organic cues or not.
Findings
The price promotion increased the clickthrough rate of the ad both when combined with an explicit organic claim and when combined with the implicit cue of green product pack. The results suggest that consumers do not have significant suspicions about price promotions of organic products, but rather presume that the price promotion of an organic FMCG product is a periodical promotional action, similar to the price promotions for conventional, non-organic products. Also, consumers seem to assume that the regular prices of organic FMCG products are so high that the retailer/manufacturer can well afford periodic price discounts.
Research limitations/implications
The present research shifts the focus of organic marketing research from the premium price levels to the effectiveness of price promotions and discounts. Further, the present results contrast with certain earlier studies that have questioned the effectiveness of price promotions for organic products.
Practical implications
The results have different implications for marketing managers of brands not yet providing organic product versions in the market, of brands producing non-organic products, which cannot easily be rendered organic, and of brands offering organic products in the market.
Originality/value
This is, to the best of the authors’ knowledge, the first empirical study and field experiment on price promotions of organic products, including explicit organic claims.
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Belén Derqui, Teresa Fayos and Nicoletta Occhiocupo
This paper aims to shed light on features of successful innovation and on the role played by downstream open innovation (OI) dynamics in the Fast Moving Consumer Goods (FMCG…
Abstract
Purpose
This paper aims to shed light on features of successful innovation and on the role played by downstream open innovation (OI) dynamics in the Fast Moving Consumer Goods (FMCG) industry. It also explores the reasons for the decline in the number of disruptive innovations in this industry in the European Union (EU).
Design/methodology/approach
The authors interpret the data in a Kantar consumer panel dataset on disruptive innovations in Spain through an exploratory research including in-depth interviews with 19 managers in the industry.
Findings
Results show that downstream open innovation in this industry is mostly limited to the executional stage in the process and highlight the crucial role played by the point of purchase in the success of innovations. The authors build up a virtuous circle of innovation based on features such as the use of OI processes, company focus and marketing support, transparency and collaboration with retailers, as well as the product's uniqueness and its potential to become viral.
Research limitations/implications
The paper focuses on Spain and, thus, results cannot be generalised. Further research in other countries would be interesting.
Practical implications
The study describes the features of disruptive innovators and develops an extensive list of success factors.
Social implications
The development of disruptive innovation is a source of competitive advantages and one of the most relevant activities of managers today. Nevertheless, the number of disruptive innovations is in decline, and only a few succeed, negatively affecting consumer welfare.
Originality/value
Through this study, the authors provide insights on the features of successful innovators in FMCGs and describe the factors affecting the decreasing trend in the number of breakthrough innovations. Further, this paper fulfils an identified need to study OI in low-tech industries.
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Meletios I. Niros, Angelica Niros, Yannis Pollalis and Qing Shan Ding
This study proposes marketing strategies for global fast-moving consumer good (FMCG) brands to survive and thrive in the turbulent economic environment created by COVID-19. The…
Abstract
Purpose
This study proposes marketing strategies for global fast-moving consumer good (FMCG) brands to survive and thrive in the turbulent economic environment created by COVID-19. The authors investigate the indirect effects of consumer ethnocentrism (CET) and consumer confidence (CC) on customer equity drivers (CEDs)’ effectiveness in influencing repurchase intention (RI) for global FMCG brands.
Design/methodology/approach
This study uses the mall-intercept technique. Respondents were randomly approached at popular retail and shopping destinations in Athens, Greece, and 228 customer participants completed the survey.
Findings
CET and CC weaken the positive relationship between certain CEDs and RI of FMCG brands. Particularly, the effects of relationship equity (RE) and value equity (VE) on strengthening repeated purchases are higher for low-confidence or low-ethnocentric consumers. Thus, marketing strategies for enhancing value and creating stronger consumer–brand relationships are more effective in boosting repeated purchases during economic turbulence.
Practical implications
Practitioners and academicians can use the insights obtained from this study to determine how to allocate resources and adopt the most effective marketing strategies in local environments based on consumer preference for domestic or global products and consumer morale and expectations for future financial status.
Originality/value
This research unveils the mechanism behind the moderating effects of CET and CC on the effectiveness of CEDs in global FMCG settings using social identity and system justification theory. Turbulence in international and local markets due to the pandemic has revealed that marketing function needs to redesign strategies and coordinate practices to boost repeat purchases.
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This paper investigates consumer engagement, evaluation and beliefs of domestic products and the influence of such associated attributes communicated via domestic COO labelling…
Abstract
Purpose
This paper investigates consumer engagement, evaluation and beliefs of domestic products and the influence of such associated attributes communicated via domestic COO labelling within the United Kingdom.
Design/methodology/approach
A visual ethnographic approach utilising the methods of autophotography and photo elicitation interviews was conducted to explore consumers' interaction with the domestic COO label and provenance advertising.
Findings
The results of photo elicitation interviews revealed both positive and negative cognitive, affective and normative implications of domestic provenance labelling of influence emerging within consumers.
Research limitations/implications
The findings are applied to the context of the United Kingdom, with contextual limitations acknowledged of doing so. Convenience sampling limitations are also acknowledged.
Practical implications
The findings provide UK-based FMCG manufacturers and retailers insight into the associated attributes of domestic brand and products interpreted by consumers, communicated via a COO label, to assist in their purchasing strategies.
Originality/value
This paper seeks to contribute towards the understanding of provenance labelling influence on consumers for products within the FMCGs sector, whilst specifically commenting upon attributes of reliance and influence that may assist navigation of changing priorities and national sentiments.
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The purpose of this paper is to explore why and how firms with logistics-intensive operations such as fast-moving consumer good (FMCG) distributors benefit from residing in…
Abstract
Purpose
The purpose of this paper is to explore why and how firms with logistics-intensive operations such as fast-moving consumer good (FMCG) distributors benefit from residing in logistics clusters. In particular, this study seeks to fill a gap in the understanding of how logistics clustering may influence FMCG firms’ distribution capabilities.
Design/methodology/approach
Three case studies of FMCG distributors geographically agglomerated within Q Logistics Cluster in Jordan serve to elaborate the existing theory of clustering. Data were collected from 24 interviews as well as observational evidence of the FMCG distributors’ outbound logistics operations. The unit of analysis was the interaction between FMCG distributors and other agents in the logistics cluster.
Findings
FMCG distributors tend to gravitate to clusters where logistics service providers and other FMCG firms co-locate. FMCG distributors interact intensively and benefit greatly from building ties with non-competitor distributors in a cluster. Informal personal relations, collaborative activities and knowledge sharing, learning opportunities and resource availability were found to act as mechanisms for generating distribution capabilities within a logistics cluster.
Practical implications
This study provides practical implications for FMCG logistics and distribution managers who make distribution centre (DC) location decisions. The study provides such managers and their firms with a deeper understanding of the importance of co-locating DCs in logistics clusters, and may help them in designing their supply networks.
Originality/value
This is the first scholarly work to uncover the various ways in which FMCG distributors benefit from logistics clustering and explain why they may differ in performance, building on observations of their capabilities. The study provides insight from an emerging market and encourages future researchers to conduct further studies on logistics clustering in order to bring relevant theory forward.
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Nikolay Korotkov, Nicoletta Occhiocupo and Lyndon Simkin
The world's leading manufacturers of fast moving consumer goods (FMCGs) generate up to 50 per cent of their revenues in emerging markets. Simulated test marketing (STM) is a…
Abstract
Purpose
The world's leading manufacturers of fast moving consumer goods (FMCGs) generate up to 50 per cent of their revenues in emerging markets. Simulated test marketing (STM) is a common practice deployed by these companies to forecast new product sales. Emerging markets represent only a small portion of the global STM business. The purpose of this paper is to incorporate and further explore some key trends anticipated in the development of the future generation of STM models by drawing specific attention to the issues currently experienced in one of the emerging markets, Russia.
Design/methodology/approach
A quantitative survey of Russian client-side marketing experts provides strong evidence for the need to further improve and modify STM methods, addressing new challenges in rapidly developing markets of Eastern Europe, the Middle East, Asia, Latin America and Africa.
Findings
Marketers in Russia believe many STM approaches poorly reflect the nuances and characteristics of their markets. This has implications for global players targeting emerging markets based on assumptions formed for STM in their home markets.
Research limitations/implications
This is a preliminary study which warrants following up. Its basis in Russia arguably has implications for other emerging markets, but whether these findings are evident in other markets needs to be tested.
Practical implications
FMCG companies in Russia would appreciate a flexible, proactive, “client-oriented” approach as opposed to conservative, “model-centered” services based on “global” execution standards. This would lead to the co-creation of STM models that could achieve more accurate forecasts in emerging markets and achieve a greater level of confidence in the use of STM among multinational FMCG companies.
Originality/value
The research undertaken leads to a general conclusion that although traditional STM models have attained relatively high awareness among FMCGs in Russia, their use is still limited as there is a perception of this being a research instrument that would need adaptation to the Russian market. Instead, simpler, cheaper and less time consuming alternatives are often employed, such as expert assessments, basic quantitative or qualitative tests. Although the most commonly acknowledged advantages of STM are well understood in Russia, there are some key barriers to its widespread adoption: poor quality or insufficient market data, lack of local market experience and validations, lower forecast accuracy as compared to “western” markets, low flexibility in terms of design and cost.
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Faisal Qamar and Shuaib Ahmed Soomro
Drawing on the symbolic interaction theory, this research examines leader–member exchange (LMX) and employee’s happiness at work (HAW) with mediation of self-esteem (SE) and…
Abstract
Purpose
Drawing on the symbolic interaction theory, this research examines leader–member exchange (LMX) and employee’s happiness at work (HAW) with mediation of self-esteem (SE) and moderation of organizational embeddedness (OE).
Design/methodology/approach
The study uses data collected from a sample of 246 employees working in fast moving consumer goods companies (FMCGs) and applied SmartPLS to analyze the proposed model.
Findings
Findings reveal that LMX predicts HAW. Whereas, the follower’s SE fully transmitted the effect of LMX on employee’s HAW. Moreover, OE moderated the relationship between LMX and HAW.
Practical implications
Leaders should consider quality LMX interactions with their employees in prevailing global crises. LMX can improve the relationship with team members and boost their SE resulting in HAW. Furthermore, organizations should promote such practices which may enhance their employees' OE for enhanced workplace happiness.
Originality/value
The study is among the very few works which apply symbolic interaction as an overarching framework to explain the employees' HAW.
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