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Article
Publication date: 11 July 2016

Soyeon Kim, Jae-Eun Chung and YongGu Suh

This paper aims to explore multiple reference effects with regard to customers’ post-consumption evaluations in a cross-cultural context. The authors propose to test an…

Abstract

Purpose

This paper aims to explore multiple reference effects with regard to customers’ post-consumption evaluations in a cross-cultural context. The authors propose to test an integrative model of three types of reference effects (disconfirmation, attractiveness of alternatives and self-image congruity) and their relationship to customers’ evaluations associated with satisfaction and loyalty. Additional insight into the link between reference points and customer satisfaction is provided by examining the moderating influence of the cultural orientation of customers: South Korean (an Eastern, collectivist and high uncertainty avoidance culture) versus American (a Western, individualistic and low uncertainty avoidance culture).

Design/methodology/approach

The data for this study were collected through a Web-based survey. Based on a sample of 723 Korean and American consumers, multi-group analysis of structural equation modeling was used to test the proposed model and the moderating effect of culture.

Findings

Overall, the results indicated that American customers’ use of reference points in their post-consumption evaluations is significantly different from that of Korean customers. Specifically, disconfirmation had a stronger effect on Korean customers than on their American counterparts, whereas the attractiveness of alternatives had a stronger effect on American customers than on those from Korea. Moreover, self-image congruity was found to be equally important in both cultures.

Research limitations/implications

Owing to the comparison of American and Korean participants in this study, these results may not be applied to customers from other countries. Moreover, the study is limited to post-consumption evaluations in restaurants and generalization of the results to other industries may be ill advised. Thus, further research is required to replicate the results and include customers from different countries in more diverse consumption settings.

Practical implications

The findings provide useful guidance for efficient marketing strategies to generate positive consumer outcomes across borders. Marketers must consider the interaction of cultures and customers to better understand customer perceptions and evaluations about their experiences. This understanding will enable the marketers to more effectively communicate with their target markets and allow them to tailor advertising to different segments of their customer base contingent upon their cultural orientations.

Originality/value

Although the role of reference effects has begun to attract considerable interest among consumer behavior researchers, much of this research has been conducted in a single cultural context. Because the global economy is becoming increasingly cross-cultural, it is valuable to conduct international consumer research to further the understanding of consumers’ post-consumption evaluation processes using multiple reference points from a global perspective.

Details

International Journal of Contemporary Hospitality Management, vol. 28 no. 7
Type: Research Article
ISSN: 0959-6119

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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…

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

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Article
Publication date: 28 June 2018

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…

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.

Details

International Marketing Review, vol. 35 no. 6
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 4 November 2013

Jiyoung Hwang, Jae-Eun Chung and Byungho Jin

This study aims to examine unique cultural influences in the context of buyer-supplier relationships in a Confucian culture. The paper identifies whether and how long-term…

Abstract

Purpose

This study aims to examine unique cultural influences in the context of buyer-supplier relationships in a Confucian culture. The paper identifies whether and how long-term orientation (LO), an inherent value of Confucianism, is an antecedent of important factors of channel relationships, rather than a relationship outcome and whether and how market orientation mediates relations among LO and other relational factors.

Design/methodology/approach

Data were collected from retail buyers at department stores in South Korea, a country that is representative of Confucian culture. One hundred and fourteen valid cases were analysed using path analysis to assess the proposed model.

Findings

LO plays significant anteceding roles in market orientation, trust, and economic dependence, both directly and indirectly. In addition, market orientation mediates the impact of LO on trust and economic dependence.

Research limitations/implications

Testing the proposed model with both retailers' and suppliers' data will add robustness to the research findings. This research advances the understanding of cultural influence on channel relationship regarding the role of LO and market orientation. Strategic practical implications include that marketers who deal with business partners in Confucian culture need to understand the embeddedness of LO and its impact on business relationship management.

Originality/value

The current study scrutinizes unique aspects of cultural influence on the anteceding roles of LO and the direct relationship between LO and market orientation in Confucian culture. The findings on the cultural embeddedness of LO provide novel insights; they also provide managerial implications for Western marketers in how to better deal with Confucian business partners.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 25 no. 5
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 12 April 2011

Jae‐Eun Chung and Byoungho Jin

The purpose of this paper is to examine whether preference toward in‐group members can serve as opportunism governance in channel relationships in a collectivist culture…

Abstract

Purpose

The purpose of this paper is to examine whether preference toward in‐group members can serve as opportunism governance in channel relationships in a collectivist culture. This study proposes a model of opportunism incorporating in‐group preference and trust as antecedents of opportunism. Based on Transaction Cost Economics and Social Exchange Theory, transaction‐specific investment and relationship length are employed in the model as confounding variables of in‐group preference for opportunism and trust.

Design/methodology/approach

Data were collected from 109 Korean department store buyers and analyzed using Structural Equation Modeling (EQS 6.0).

Findings

The results showed that buyers' in‐group preference increased buyers' trust toward suppliers and decreased suppliers' opportunistic behavior. Buyers' increased trust toward suppliers was found to reduce suppliers' opportunistic behavior. Further, Trust was significantly influenced by supplier TSI, but not by length of relationship. On the other hand, opportunism was significantly influenced by length of relationship, but not by supplier TSI.

Research limitations/implications

This study examined only the positive side of in‐group membership. Some criticisms of in‐group preference are favoritism, interference with fair competition, and collective blindness, any of which might decrease the efficiency of business operations. These impacts should be examined to gain a balanced view of the implications of in‐group preference in business settings.

Practical implications

Multinational companies should understand that in‐group membership is an important source of building trust and oppressing opportunism in the Korean market. Multinational companies can strategically approach in‐group members of business partners to become members of those in‐groups.

Originality/value

This is the first empirical study to examine collectivists' tendencies toward in‐group preference as opportunism governance.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 4
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 1 May 2004

HoJung Choo, Jae‐Eun Chung and Dawn Thorndike Pysarchik

Through structural equation modeling, Fishbein and Ajzen's modified theory of reasoned action model (TORA) is used to study the impact of innovation on Indian consumers…

Abstract

Through structural equation modeling, Fishbein and Ajzen's modified theory of reasoned action model (TORA) is used to study the impact of innovation on Indian consumers’ purchase behavior of new processed foods. The results indicate that subjective norms are a key factor in understanding Indian consumers’ new food purchase decisions regardless of their level of innovation. Specifically, subjective norms are found to have direct effects on attitudes, intention to buy, and purchase behavior for new processed food products. Surprisingly, attitudes have little effect on less innovative consumers’ intention to buy. Additionally, product familiarity had a significant impact on Indian consumers’ attitudes, subjective norms, intention to buy, and, ultimately, purchase behavior of the low innovator and high innovator groups. Marketing implications are discussed.

Details

European Journal of Marketing, vol. 38 no. 5/6
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 31 January 2011

Jae‐Eun Chung, Ying Huang, Byoungho Jin and Brenda Sternquist

This study seeks to examine the influence of market orientation on Chinese buyer‐supplier relations. A model is proposed depicting relationships among retailer market…

Abstract

Purpose

This study seeks to examine the influence of market orientation on Chinese buyer‐supplier relations. A model is proposed depicting relationships among retailer market orientation, supplier market intelligence, supplier role performance, and retailer economic and social satisfaction.

Design/methodology/approach

Data were collected from 99 chain store buyers and managers from 25 cities in China. Structural equation modeling was used to analyze the data.

Findings

A retailer's market orientation is critical for its own economic and social satisfaction by increasing supplier market intelligence (MI) and supplier role performance.

Practical implications

Retailers' MO increased supplier MI and role performance. This study found that economic performance was more important in channel relationships than social relationships. Therefore, suppliers should focus on improving retailers' economic satisfaction through role performance and market intelligence rather than social satisfaction.

Originality/value

Previous MO literature has focused primarily on the firm's performance and ignored the interactive aspect of business performance among channel members. The current study fills this gap by demonstrating the significant influences of retailer MO on supplier MI and on supplier role performance, as well as on retailer satisfaction – both the economic and social components. To the authors' knowledge, the current study is the first to relate retailer MO, supplier MI, and supplier role performance to two types of retailer satisfaction – i.e. economic and social satisfaction.

Details

Journal of Business & Industrial Marketing, vol. 26 no. 1
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 25 January 2011

Hee Yeon Kim and Jae‐Eun Chung

Using the theory of planned behavior (TPB) to examine the effects of consumer values and past experiences on consumer purchase intention of organic personal care products…

Abstract

Purpose

Using the theory of planned behavior (TPB) to examine the effects of consumer values and past experiences on consumer purchase intention of organic personal care products, this study aims to consider further the moderating effect of perceived behavioral control on the attitude‐intention relationship.

Design/methodology/approach

An online survey was conducted with 207 online panel members, and multiple regression analysis was used to test the relationships among the variables.

Findings

The results indicate that environmental consciousness and appearance consciousness positively influence attitude toward buying organic personal care products. The addition of past experiences as a predictor of purchase intention and perceived behavioral control as a moderator of the attitude‐purchase intention relationship yielded an improvement on the TPB model.

Practical implications

This study suggests that retailers can develop effective marketing strategies emphasizing ecological beauty, product safety, and affordable prices to increase consumers' intentions to buy organic personal care products.

Originality/value

This study provides valuable insight into US consumer behavior regarding organic personal care products by examining the factors that influence consumers' attitudes toward buying organic personal care products and consumers' purchase intentions for the products. Furthermore, this study extends an application of the TPB by examining the moderating influence of perceived behavioral control on the attitude‐intention relationship.

Details

Journal of Consumer Marketing, vol. 28 no. 1
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 1 October 2000

Jae‐Eun Chung and Dawn Thorndike Pysarchik

This study examines the predictors of Korean consumers’ behavioral intention to buy imported and domestic products, based on Lee’s revised Fishbein model. The revised…

Abstract

This study examines the predictors of Korean consumers’ behavioral intention to buy imported and domestic products, based on Lee’s revised Fishbein model. The revised model incorporated two salient Confucian concepts – face saving and group conformity. There were two phases to the study, qualitative (focus group interviews) and empirical (experimental survey design). From the focus group data, parallel self‐report mail survey instruments were developed and sent to Korean students studying temporarily at a large midwestern university in the USA. Instruments were randomly assigned to subjects using a between‐subject experimental design. Findings indicate that there is a positive relationship between Korean consumers’ attitudes toward a product and their product evaluation. Further, there is a positive relationship between their attitudes and their intention to buy either domestic or imported products. The components of cultural pressure, face saving and group conformity have a weaker influence on attitudes than product evaluation, and they are significant predictors for domestic products but not for imported products. Finally, managerial implications and marketing strategies are discussed for multinational and domestic marketers.

Details

Marketing Intelligence & Planning, vol. 18 no. 5
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 11 January 2008

Jae‐Eun Chung, Brenda Sternquist and Zhengyi Chen

The purpose of this study is to compare two models, traditional‐ and performance‐based, of Japanese retailers' channel relationships. The traditional model proposes…

Abstract

Purpose

The purpose of this study is to compare two models, traditional‐ and performance‐based, of Japanese retailers' channel relationships. The traditional model proposes Japanese retailers' long‐term orientation with their supplier is an antecedent of Japanese retailers' trust and dependence on the supplier. The performance model, on the other hand, proposes significant influences of suppliers' role performance and dependence on channel relationships.

Design/methodology/approach

Data were collected from Japanese department store buyers and specialty store buyers. A total of 141 cases were analyzed using the EQS structural equation modeling software.

Findings

Results show that the traditional model had a higher explanatory power than the performance model, which indicates the strong influence of culture on Japanese channel relationships.

Research limitations/implications

Some measures have relatively poor psychometric properties. A further study should refine these measurements by exploring the meanings of these constructs from the cultural context.

Originality/value

This study provides insight into how cultural influences are embedded in distribution channel relationships.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 20 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

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