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Market development; market analysis; customer incentive programmes and segmentation.

Undergraduate Business and Management, MBA/MA Management.

The Singapore subsidiary of AHL Insurance Corporation (AHL) was trying to expand its customer base through a “recommend-a-friend” programme. Ideally, the incentives would encourage the top tier customers to refer more friends to help AHL further penetrate the market and expand its customer base. Instead, the programme worked the reverse on these customers and referrals from “Apostles” fell. Ray Stevenson had to find out why this was so and think of a way to rectify the problem.

This case will enable students to analyse a business decision which ultimately proved unsuccessful to the point of adverse market reaction. Students will examine the reasons for this poor market perception; conduct analysis of field test data and provide managerial conclusions and recommendations identifying the correct course of action.

Teaching notes.

The purpose of this paper is to examine the dual influence of traditional Chinese and national Singaporean cultural values on the attitude towards skin beauty and the purchase intention relating to skin care cosmetics among Chinese Singaporean women. It aims is to investigate how ethnic and national cultures might interact to influence the attitude towards skin beauty and hence the willingness to buy skin care products.

A survey of 370 Chinese Singaporean women was conducted to test the proposed links. The study adopts an empirical approach using structural equation modelling.

Both traditional Chinese and national Singaporean cultural values impact the attitude of Chinese Singaporean women towards skin beauty and their willingness to buy skin care cosmetics. The components of the traditional Chinese values (Buddhism, Daoism and Confucianism) and national Singaporean values were found to have differing impact on the attitude towards skin beauty and the purchase intention of skin care cosmetics among Singaporean women. Confucianism was found to have a very strong impact on skin fairness and whitening, national Singaporeans' values were found to have a strong impact on skin anti‐ageing, and Buddhist values were found to have moderate impact on attitude towards skin smoothness and skin fairness and on the willingness to buy skin smoothening and skin whitening cosmetics.

Even though the sample can be considered large, given the number of variables in the model, it would be wise to rely on a larger sample. In addition, the research was about specific cosmetics products, namely those related to skin care. It is judicious to extend the analysis to other categories and types of products. For expatriate ethnic groups, it is recommended that marketers think about the interaction between their traditional values and the values of the host country, as these have dual effects on their attitudes and hence on their buying intention. The interaction between these values is not static across products. It varies in size and combination across types of attitudes and products.

Traditional ethnic and national cultural values have differing impact in terms of significance and size on the attitude towards face beauty. Hence, marketing actions such as positioning and advertising should be customized accordingly, to target at these values in an attempt to influence attitude, and hence purchase behavior. Attitude plays a mediating role between cultural values and purchase intention. Influencing consumers' willingness to buy involves influencing their attitudes.

Few works have surveyed the dual influence of national and ethnic values on a specific ethnic subgroup in Asia. To the authors' knowledge, there no previous research has been conducted for Singapore. This paper demonstrates that it is important for the marketer to take into account Singaporeans' national and ethnic values while marketing to them.

Although more than 30 years of research has established the power of word‐of‐mouth (WOM), little work has focused on how it could be managed more effectively. This study examines how incentives would work to actively encourage WOM, and how incentives would potentially interact with other variables that have been shown to drive WOM. In particular, a 3 × 3 × 2 experiment was conducted to examine the impact of incentives, tie‐strength, and satisfaction on WOM behavior. Consumer deal proneness was investigated using a quasi‐experimental design. Suggests from the findings that satisfaction does not necessarily increase the likelihood of WOM being generated. Shows incentives to be an effective catalyst to increase the likelihood of WOM being generated by satisfied consumers and tie strength to be an important variable in explaining WOM behavior. Suggests from the findings that deal prone consumers generate more WOM, independent of incentives. The findings have important implications, and suggest that satisfied customers are a necessary but not sufficient condition for getting positive WOM, and that incentives may be an effective way to get satisfied customers to recommend a firm. Furthermore, incentive programs targeted at strong ties are likely to be more effective than those targeted at weak ties, provided customers are genuinely happy with the service provided.

This study aims to explore the factors responsible for influencing the service quality (SQ) of department stores in Albaha region, Saudi Arabia. This study also examines the level of influence on SQ.

Primary data was collected from 600 customers out of which 508 questionnaires were included for analysis using retail service quality scale (RSQS). Quota sampling technique was adapted for data collection from different cities of Albaha province. SPSS software was used to analyse the data using multiple linear regression analysis.

Three dimensions have a positive significant impact on SQ (physical aspect, problem-solving and reliability), whereas one dimension (personal interactions) has a negative significant influence and one dimension (policy) is found to be a highly insignificant factor.

Further investigation is required for the negative but significant behaviour of personal interaction and insignificant impact of policy as factors.

This study outlines the dimensions having positive and significant influence of SQ on the department stores.

This study suggests socially and culturally acceptable methods to improve SQ in Albaha.

The research suggests that personal interaction has a negative influence on SQ; this deviation of results from the literature may be due to the cultural variances in KSA which needs to be further investigated, as customers in Albaha are not willing to converse and interact with the seller.

The purpose of this paper is to analyse the prerequisites for lateral knowledge transfer in manufacturing networks.

Data stem from a single case study involving 26 interviews at the management level of a manufacturing network and a survey of 17 manufacturing plants in the network.

The requirements for lateral knowledge transfer between knowledge-sending and knowledge-receiving plants are similar strategic orientation, product portfolio similarity and process similarity. If the knowledge-sending and knowledge-receiving plants meet at least one of these requirements, then knowledge transfer is facilitated. Plant age, functional ties and geographical proximity do not seem to be important in lateral knowledge transfer.

The results come from a single case study, limiting their generalisability. Further research should consider the influence of the network’s coordination mechanism on lateral knowledge transfer.

The paper investigates prerequisites for lateral knowledge transfer in manufacturing networks, shedding light on the fundamental factors that must be in place at the knowledge-sending and knowledge-receiving plants.