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Article
Publication date: 1 July 2014

Xu Yang

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…

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.

Details

Journal of Science and Technology Policy Management, vol. 5 no. 2
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 20 October 2022

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.

Details

Journal of Islamic Marketing, vol. 14 no. 10
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 25 September 2019

Gordon Liu, Meng-Shan Sharon Wu, Wai Wai Ko, Cheng-Hao Steve Chen and Yantai Chen

Cause-related marketing (CRM) focuses on the use of marketing tools to publicize a firm’s corporate social responsibility (CSR) activities. Drawing on legitimacy theory, the…

1533

Abstract

Purpose

Cause-related marketing (CRM) focuses on the use of marketing tools to publicize a firm’s corporate social responsibility (CSR) activities. Drawing on legitimacy theory, the purpose of this paper is to investigate the impact of CRM-led CSR in international business-to-business (B2B) markets. In particular, the authors examine the relationship between supplier CRM-led philanthropic CSR reputation and foreign customer business engagement in an international B2B setting. The authors also test how the foreign customer’s host-country sustainable development level moderates this relationship.

Design/methodology/approach

The authors collect and analyze dyadic data from multiple sources including: dyadic data from a supplier and its 90 foreign customers; the supplier’s internal company records; and publically available data.

Findings

The authors find that supplier CRM-led philanthropic CSR reputation positively affects foreign customer business engagement. Furthermore, the authors find that this positive relationship is stronger when host-country environments are characterized by achieving higher level of environmental well-being development. In contrast, this positive relationship is weaker when the foreign customer host-country environment is characterized by achieving higher level of economic well-being development.

Originality/value

The authors examine that impacts of CRM-led CSR in international B2B markets and differentiate the contingent roles of foreign customer host-country sustainable development in moderating such impacts.

Details

International Marketing Review, vol. 37 no. 4
Type: Research Article
ISSN: 0265-1335

Keywords

Book part
Publication date: 24 November 2016

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.

Details

The Challenge of Bric Multinationals
Type: Book
ISBN: 978-1-78635-350-4

Keywords

Article
Publication date: 5 March 2019

Jae-Eun Chung, Byoungho Jin, So Won Jeong and Heesoon Yang

The purpose of this study is to examine the branding strategies of SMEs from NIEs, juxtaposing the different strategies used to specifically target developed and developing…

1080

Abstract

Purpose

The purpose of this study is to examine the branding strategies of SMEs from NIEs, juxtaposing the different strategies used to specifically target developed and developing countries with regard to brand-building approach, type and number of brands and degree of standardization.

Design/methodology/approach

A case-study approach is used. In-depth interviews are conducted with 10 Korean consumer-goods SMEs exporting their own in-house brands.

Findings

Clear differences emerge between the strategies of SMEs entering developed countries and those entering developing countries, particularly regarding brand identity development, use of foreign sales subsidiaries and number and types of brands used. The authors find an interaction effect between product characteristics and host market levels of economic development, both of which influenced the degree of product standardization.

Originality/value

This study is the first attempt to uncover the branding strategies of NIE consumer-goods SMEs. The findings contribute to the field by extending our understanding of branding strategies used by consumer-goods SMEs from NIEs, thereby providing useful insight for other NIE enterprises when establishing branding strategies aimed at foreign markets.

Details

Journal of Product & Brand Management, vol. 28 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 3 July 2017

Hajime Kobayashi, Yoritoshi Hara and Tetsuya Usui

This study adopts a three-component view of trust bases (cognition, affection and institution) and examines how these trust components function and interact during a business…

1678

Abstract

Purpose

This study adopts a three-component view of trust bases (cognition, affection and institution) and examines how these trust components function and interact during a business expansion in an unfamiliar foreign context.

Design/methodology/approach

A longitudinal case study of a Japanese cosmetics company was conducted trying to collaborating with its Chinese partners to develop business in China. The data sources consist of semi-structured interviews and archival data, including industry reports, newspaper articles and internal documents.

Findings

Findings show that a trustee’s actions to activate the three trust bases created stable business relationship with trustors. Additionally, the business expansion was driven over time through the order of manifestation of these trust bases. Institution-based trust develops first, followed by a combination of institution- and cognition-based trust, before the final combination of institution-, cognition- and affection-based trust.

Research limitations/implications

Based on an in-depth single case study, this study provides a process-based explanation of the configuration pattern of three trust components over time. A generalized process-based explanation and the interaction effects of each trust component require further qualitative empirical studies in varied contexts.

Practical implications

The study provides managers with insights into how to activate trust based on the importance of configuring the three trust bases covered in this paper.

Originality/value

This paper adds to the scant literature attempting to explain the dynamic processes by which the trust structure forms compared to the more common variable-based statistical analyses.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 12 January 2024

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.

Details

International Journal of Retail & Distribution Management, vol. 52 no. 3
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 October 2005

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

12679

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.

Details

International Marketing Review, vol. 22 no. 5
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 17 June 2010

Teresa da Silva Lopes

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…

5476

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.

Article
Publication date: 2 November 2020

Jeoung Yul Lee, Joong In Kim, Alfredo Jiménez and Alessandro Biraglia

This study examines the impact of situational and stable animosities on quality evaluation and purchase intention while also testing the moderating effects of within- and…

Abstract

Purpose

This study examines the impact of situational and stable animosities on quality evaluation and purchase intention while also testing the moderating effects of within- and cross-country cultural distance. It focuses on the case of the US THAAD missile defense system deployment in South Korea (hereafter, Korea) and investigates how the resulting Chinese consumers' animosity affects their quality evaluation of, and purchase intention toward, Korean cosmetics.

Design/methodology/approach

This study utilizes a quantitative approach based on a survey and structural equation modeling. The sample comprises 376 Chinese consumers from 19 Chinese regions.

Findings

The results indicate that both stable and situational animosities are negatively associated with purchase intention toward Korean cosmetics. However, their effects on quality evaluation are different. While stable animosity is negatively related to product quality evaluation, situational animosity has no such negative association. Finally, the cultural distance between Chinese regions and Korea strengthens the negative relationship between stable and situational animosities and purchase intention.

Research limitations/implications

The study contributes by better unraveling the effects of stable and situational animosities on perceived product quality. The empirical context is unique because it allows the authors to investigate the relationship between Chinese antagonism toward the THAAD deployment in Korea and Chinese consumers' stable and situational animosities in terms of their quality evaluation of, and purchase intention toward, imported Korean cosmetics. Hence, this study contributes to the literature on consumer animosity by empirically testing the moderating effect of within- and cross-country cultural distance on the relationship between stable and situational animosities and purchase intention.

Practical implications

The study has relevant practical implications, notably for Korean exporters' marketing management and within- and cross-cultural management. The results suggest that countermeasures are needed because Chinese consumers' stable and situational animosities are negatively related to their purchase intention toward Korean cosmetics. Moreover, the findings provide the insight that when foreign firms export culture-sensitive products to a large, multicultural country, their managers should pay attention to within- and cross-cultural differences simultaneously.

Originality/value

Previous studies have shown that the effects of animosity on product evaluation and purchase intention differ depending on the animosity dimension, product type, country and the situation causing animosity, among others. However, the existing literature on animosity has neglected the reality that within-cultural differences in a single large emerging market are relevant to explaining the concept of animosity and its effect on the purchase intention toward culture-sensitive products. Furthermore, none of the animosity studies have touched on the important moderating role of within- and cross-cultural differences between a large and multicultural importing country and a brand's home country in this manner. Therefore, the study fills this gap by empirically examining whether different moderating effects of stable and situational animosities exist for a specific conflict situation caused by a military issue and investigates the causes of these different effects.

Details

Cross Cultural & Strategic Management, vol. 28 no. 2
Type: Research Article
ISSN: 2059-5794

Keywords

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