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Selected empirical findings on the effects of a product′s“made‐in” label are integrated with theoretical developmentsin consumer information processing and the economics…
Selected empirical findings on the effects of a product′s “made‐in” label are integrated with theoretical developments in consumer information processing and the economics of consumer search. The result is an internally consistent theory of how country‐of‐origin effects vary across situations, individuals and products. The new perspective explains why country stereotyping influences decisions more among well‐informed buyers and dismisses the idea that country‐of‐origin cues are necessarily misleading or bad. It also generates predictions of when country‐of‐origin effects are greater and when they are smaller.
Against the success of Japanese exporting companies during the last decade, a brief but comprehensive review of the factors behind their performance is presented. Based on…
Against the success of Japanese exporting companies during the last decade, a brief but comprehensive review of the factors behind their performance is presented. Based on a combination of secondary and primary data, the structures within which the exporting companies operate are spelled out and integrated. The integration is shown to lead naturally to a particular strategic posture dominated by a long‐run perspective and a high quality/price ratio in products meticulously adapted for very specific market segments. Potentially valuable counterstrategies drawing upon the Japanese experiences and military analogies are developed.
Drawing on an in‐depth case study of the Volvo automobile company’s strategy in the early 1990s, before the Ford takeover in 1999, this paper demonstrates how policies…
Drawing on an in‐depth case study of the Volvo automobile company’s strategy in the early 1990s, before the Ford takeover in 1999, this paper demonstrates how policies designed to reduce inventory costs and slim the distribution pipeline can affect a business’ network of suppliers and distributors in unexpected ways. It also shows how the implementation of cost reducing reengineering projects naturally lead to sub‐optimization and a need to consider higher‐level processes. In the Volvo illustration a manufacturer’s reengineering of its distribution chain evolved into a complete recasting of its order fulfillment process, and an adoption of a process management structure. The paper traces the effects on the network of distributors and dealers and shows how Volvo’s new structure curtails the distribution role of foreign sales subsidiaries and shifts their tasks towards market analysis, demand forecasting and customer service in foreign markets. It also shows how a process management perspective impacts a firm’s value chain, marketing function and organizational structure. In the end, the case demonstrates how a division can cut costs and still become more customer‐oriented – and become a more valuable asset for a diversified corporation.
Through a synthesis of research results on Japanese consumer behaviour, this paper offers conclusions about the Japanese marketplace. Insights provided on Japanese…
Through a synthesis of research results on Japanese consumer behaviour, this paper offers conclusions about the Japanese marketplace. Insights provided on Japanese consumers may prove useful to marketers contemplating entry into Japan.
This paper presents some rather complicated empirical work employing econometric modelling to demonstrate the validity of a quite simple proposition: the use of a…
This paper presents some rather complicated empirical work employing econometric modelling to demonstrate the validity of a quite simple proposition: the use of a product's price as an indicator of quality is only justified when the market is free of trade barriers and other imperfections. It demonstrates that individuals are well aware of this fact, making use of price as a quality indicator only where trade barriers have not distorted prices. Thus, it is not possible to make very strong generalisations about the existence of a universal price‐quality relationship. The managerial implications of the findings are briefly discussed.
With competitive rivalry eroding traditional product differentiation, legally protected brands have gradually become one of the most prized assets of multinational corporations. The defense of domestic brand shares and the expansion of well-known brands into new foreign markets have become important tasks of corporate managers. Yet, to date, there is no clear recognition of this increasing role of brands in the economic theory of international trade. This paper explores the implications of strong brands for intra-industry trade, for Vernon’s product-cycle model and for international trade overall. On balance, the ascent of global brands is shown to raise trade in standardized products, exacerbate the shift toward intra-firm trade, and sustain the dominance by large centralized multinationals.
The paper discusses six Japanese marketing cases in depth. It is shown how the “success” interpretation which so often is promulgated by the firms and press alike in fact hides serious mistakes and results which in other countries would be interpreted as “failures”.
The purpose of this paper is to provide an empirical assessment of the degree to which global firms have penetrated markets in emerging countries in the new millennium…
The purpose of this paper is to provide an empirical assessment of the degree to which global firms have penetrated markets in emerging countries in the new millennium. The focus is on the “big four” emerging countries of Brazil, Russia, India, and China (BRIC), and the study examines penetration in three product categories: beer, hair care, and carbonated soft drinks.
The conceptual development draws on a normative‐descriptive framework, predicting the behavior of multinationals from normative models of their strategic behavior. Predictions are evaluated against market share data for the multi‐domestic product categories.
Multinationals with strong global brands will introduce their global brands and be successful also in multi‐domestic local markets where preferences differ across countries. However, the key to success is not always their global brands, but could equally likely be an acquired local brand. Some local brands successfully defend their markets, and even venture abroad into neighboring regions.
Globalization does not mean the success of global brands as much as success of global firms. In the end, the penetration of local emerging markets is not necessarily from global brands, but from global companies with acquired local brands.
The paper establishes that any fear of elimination of valued local brands is overblown. It also helps dispel the myth that emerging countries cannot develop strong international brands on their own. But one issue remains: the financial clout of global firms is difficult for emerging firms to counter.
This paper studies how Chinese consumers respond to foreign goods in the post‐WTO era. Specifically, it examines brand sensitivity as a mediator and product cues as…
This paper studies how Chinese consumers respond to foreign goods in the post‐WTO era. Specifically, it examines brand sensitivity as a mediator and product cues as moderator of purchase intention. Additionally, it examines consumer preferences for different products and consumption plans for the subsequent five years. The survey sample is drawn from a population of foreign product users from 34 cities in 18 provinces in China. Results provide evidence that brand sensitivity mediates the relationship between consumer ethnocentrism and purchase intention; product cues moderate the effect of ethnocentrism on purchase intention. As the first study to link consumer ethnocentrism directly to brand sensitivity and purchase intention, this research provides some managerial implications. Global marketers can offset the negative effect of ethnocentrism by emphasizing brand image of its products, taking advantage of specific product cues, or by providing more comprehensive after‐sale service to reduce the perceived risk of purchasing imports. Also, price is still a hurdle that prevents Chinese consumers from mass consumption of foreign products. Global firms should not overestimate the purchasing power of Chinese consumers. This study represents a “snapshot” of Chinese consumers’ decision making at a time when their economic system is undergoing rapid change.