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Article
Publication date: 9 November 2015

International brands in emerging markets: the myths of segmentation

Arry Tanusondjaja, Luke Greenacre, Melissa Banelis, Oanh Truong and Taylah Andrews

International brands are expanding their business into emerging markets seeking new consumers for their products. Multiple research studies suggest that there are two key…

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Abstract

Purpose

International brands are expanding their business into emerging markets seeking new consumers for their products. Multiple research studies suggest that there are two key differentiators between developed and emerging markets that managers must take into account. These are that consumers differentiate between local and international brands, and that consumer segments differ between emerging and developed markets. This paper refutes these myths. The paper aims to discuss these issues.

Design/methodology/approach

The authors examine large-scale data of purchase behaviour across seven countries and six product categories through telephone or online data collection. Surveys conducted in conjunction with research consulting projects form the basis of data collection, with samples skewing towards middle-income population from urban areas within the emerging markets. The different survey methods used support the empirical generalisability of the findings.

Findings

The authors find that brand user profiles in emerging markets rarely differ between local and international brands across age, income and gender. Differences in segmentation are related to geography – which is likely a factor of infrastructure differences. When brand users are compared, their attitudes towards the brands are also very similar between local and international brands across several attitudinal measures: “high quality”, “value for money”, “meet/understand my needs”, “affordability” and “trustworthiness”.

Originality/value

The research highlights that consumers in emerging markets need not be segmented based on their brand purchasing behaviour when it comes to local and international brands. This is in line with a growing body of literature in consumer segmentation and in contrast to a considerable amount of traditional literature on emerging markets.

Details

International Marketing Review, vol. 32 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/IMR-08-2014-0286
ISSN: 0265-1335

Keywords

  • Consumer behaviour
  • Segmentation
  • Brands
  • Emerging markets

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Article
Publication date: 11 November 2014

Uncovering generalized patterns of brand competition in China

Margaret Faulkner, Oanh Truong and Jenni Romaniuk

The purpose of this research is to analyze brand competition in China using the Duplication of Purchase (DoP) law, with important implications for understanding Chinese…

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Abstract

Purpose

The purpose of this research is to analyze brand competition in China using the Duplication of Purchase (DoP) law, with important implications for understanding Chinese buyer behavior in comparison with Western buyers. Discovered in the Western markets, the DoP law holds across a variety of product categories.

Design/methodology/approach

Multiple sets of new data are examined to extend past research in the application of the DoP law in Chinese buying behavior. This study draws on panel data and self-reported data, utilizing bootstrapping to identify partitions where excess sharing occurs.

Findings

This paper finds the DoP law holds across six categories (two personal care, two impulse categories and two durables), as well as over multiple years. Brands in China share customers with other brands in line with the market share of the competitor brand. There were few partitions where brands shared significantly more customers than expected. Partitions occur due to the same umbrella brand or ownership, and geographic location.

Research limitations/implications

Areas for further research include extended replication in other categories, investigating partitions and whether a different consumer path to purchase occurs in China.

Practical implications

DoP can be applied across a wide range of categories in China to understand market structure. New entrants to China can use this approach to understand a category from a consumer behavior perceptive. DoP provides guidelines for marketers to identify competition and allocate resources appropriately.

Originality/value

This research provides a comprehensive, unparalleled examination across six very different categories of brand competition in China. This gives confidence in the robustness and generalizability of the results.

Details

Journal of Product & Brand Management, vol. 23 no. 7
Type: Research Article
DOI: https://doi.org/10.1108/JPBM-04-2014-0557
ISSN: 1061-0421

Keywords

  • China
  • Consumer behavior
  • International marketing
  • Buying behavior
  • Competition
  • Duplication of purchase law

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Article
Publication date: 13 November 2017

Evaluation of impediments to the competitiveness of the rail sector in Australia: Empirical research and evidence

Hadi Ghaderi, Stephen Cahoon and Hong-Oanh Nguyen

The purpose of this paper is twofold: first, to empirically evaluate the key impediments to the competitiveness of the rail sector in Australia; and second, to provide…

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Abstract

Purpose

The purpose of this paper is twofold: first, to empirically evaluate the key impediments to the competitiveness of the rail sector in Australia; and second, to provide relevant transport management and policy recommendations for enhanced competitiveness.

Design/methodology/approach

This paper has adopted an empirical approach. A survey was developed and distributed among rail stakeholders in Australia. Accordingly, exploratory factor analysis and confirmatory factor analysis were conducted to evaluate the key impeding areas.

Findings

This paper found four areas that are impeding rail development, these being infrastructure management, shortage of freight data and poor information sharing, service delivery and organisational and commercial interactions.

Research limitations/implications

The theoretical approach of this thesis can be applied to any freight market where competition exists between different transport modes. However, the specific strategies provided in this research in terms of transportation management, infrastructure planning and policy were made according to the specific market condition, infrastructure quality and regulation that exist in Australia.

Practical implications

The findings provide important implications for both industry and government in terms of making transport planning and policy decisions, but also useful insights by identifying the weak parts of the rail sector and directions to target them.

Originality/value

The notion of the rail stakeholder does not appear to have been previously defined in the literature. Therefore, this research takes a broader view of rail stakeholders to include various interest groups within the rail sector and its operational environment.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 29 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/APJML-02-2017-0034
ISSN: 1355-5855

Keywords

  • Competitiveness
  • Intermodal transportation
  • Non-bulk
  • Rail freight
  • Rail stakeholder
  • Rail transport

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