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The case authentically illustrates a common problem encountered within the business scope of an agent who is representing a European food ingredients manufacturer in an emerging market. The case describes the kind of legal set-up and contracts that are necessary to safeguard the long-term prospective of the business for both parties, the agent and overseas supplier. It explains what each party has to observe in case of a termination of the agency agreement.

This is a longitudinal case study of a market entry by a European food ingredients manufacturer through a foreign-owned third agent. The authors studied how sales developed over the first few years and then concentrated the investigation on the fact that after the sales volume was reached, the overseas manufacturer wants to cancel the agency agreement and do the business directly without getting the agent involved.

This case describes and explains a common problem encountered frequently by overseas manufacturers who want to enter an emerging market through a third-party agent representation. The overseas supplier uses the agent’s service and solid reputation to enter an emerging market with limited exposure to costs and risk. The agent works towards guarding the relationship with the overseas supplier for as long as possible. The development of the relationship illustrates what kind of conditions have to be stipulated in advance to provide an acceptable solution to both parties concerned once they part ways.

This research is based on a European food ingredients manufacturer, who was expanding its business in different Asian emerging markets, namely, Vietnam and Cambodia. The agent was a long-time established trading house who acted frequently as agent for overseas companies that wanted to get a foothold in these promising Asian emerging markets.

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CSS 5: International Business

This study aims to conceptualize and test the effect of monetary and non-monetary incentives for word-of-mouth (WOM) campaigns on the brand attitude of those receiving an incentivized brand recommendation. It also studied whether or not the type of relationship between the recommender and the person who receives the recommendation and the expertise of the recommender moderate the impact of incentivization on brand attitude. The results should enable brand management to improve the design of WOM campaigns.

An experiment was conducted utilizing a sample of about 645 respondents in Thailand. In a 3 × 3 experimental design, three levels of incentivization and three types of social relationships were manipulated. All other variables were measured through a respondent-administered questionnaire. For incentivization of WOM, monetary reward and non-monetary reward are compared to a non-incentivized control state. The three types of social relationships are an authority relationship, a kinship relationship and a market pricing relationship between strangers as the control state.

The results of the experiment show that the introduction of rewards for recommendations harms the attitude of the receiver of a recommendation toward the brand. The attitude of potential buyers toward the brand can be tainted by the impression that a brand has enticed friends and relatives into profiting from their relationship. The negative effects increase further with the introduction of cash rewards. Contrary to expectations, however, the social relationship between the recommender and the new customer did not moderate the effect of incentivization. Source expertise has a direct as well as moderating effect on brand attitude.

The findings suggest that companies should use referral rewards with caution. Brand managers need to be aware that there is a trade-off between the advantages and the disadvantages of incentivized WOM campaigns. Recommendations have been derived about how to improve the design of incentivized WOM campaigns. Whether the advantages outweigh the disadvantages probably depend to some extent on brand-specific factors such as brand strength and market- or industry-specific factors, such as a credence good quality within the industry. It also emphasized that WOM campaigns need to be carefully monitored by measuring customer attitudes toward the brand.

Although past research provides valuable conceptual and empirical insights into consumer responses in incentivized WOM situations, most research has focused on the immediate effectiveness of WOM by measuring purchasing intentions. There is still a lack of information about how different kinds of incentivization affect customer attitudes toward a brand that incentivizes WOM, and how various relationship types moderate the effects; in particular, authority relationships have not yet been studied in this context.

The article seeks to study consumer evaluation of the health benefits of a health‐promoting destination. Health‐promoting destinations often attempt to scientifically prove health benefits. It is suggested that health destinations should instead attempt to reflect consumers' preconceived health beliefs, rather than reform them. The aim is to test the applicability of the expectation‐disconfirmation theory to health promoting destinations and to offer recommendations for place marketing of destinations which are positioned as proving health benefits.

Cognitive dissonance is a central theoretical concept in the model of consumer evaluation of the health benefits of a health‐promoting destination. The authors suggest that low cognitive dissonance between subjective health beliefs and the characteristics of a destination results in positive customer evaluations of the destination. This hypothesis was tested through regression analysis of data collected via a survey of 240 visitors at seven hot spring resorts in Taiwan.

The study suggests that the subjective beliefs of tourists regarding what is healthful are important criteria for tourists to evaluate the health benefits of a destination.

The expectation‐disconfirmation theory is successfully applied to the tourism sector and health care.

Based on the results, consumer research about what is believed to be beneficial to health is important when designing and promoting a health place.

Destinations have been mostly studied as wellness destinations. However, many destinations promote scientific health benefits. The effect of consumer health perceptions on the attractiveness of health‐promoting destinations has received little attention. While common in tourism, the results are a novel approach to health care destinations.

Although a company can manifest its corporate social responsibility (CSR) effort through various strategies, the challenge this presents is that not all CSR activities have identical attributes with respect to the consumers’ perception. The purpose of this paper is to examine the efficacy of four CSR initiatives – regulatory compliance, green cause-related marketing (CRM), green product, and a combination of green CRM and green product – on consumer attitude and purchase intention.

An experiment is conducted to investigate how consumers in an emerging Asian market like Thailand respond to different environmental CSR tactics.

The results of this study demonstrate that a specific environmental CSR strategy elicits more favorable response than a general approach of complying with regulations. In addition, engaging in green CRM and offering a green product concurrently is perceived as more appealing than employing only either of the two strategies. The key finding is that in the eyes of Thai consumers, green CRM and green product CSR initiatives are substitutable.

The paper conceptualizes the difference between four environmental CSR strategies from dimensions of the firm’s discretion and commitment level and highlights the importance of using specific voluntary environmental CSR strategies over involuntary regulatory compliance. Firms are recommended to engage in either green CRM or green product initiatives. The choice depends on a firm’s resources and opportunities. The addition of green CSR initiatives increases the positive impact on consumer attitude and purchase intention.

The aim of this paper is to contribute a conceptualization of the information and communication needs of medical tourists from Western countries in an Asian health care context.

Multi-phase, semi-structured, in-depth interviews and observations were conducted with 27 multi-source informants who have communication experience in the international healthcare setting.

Multi-level information provision should be used to address communicative incongruence in Asian healthcare provider – Western patient encounters as was self-reported by the participants and observed by authors. The use of an informative communication model is proposed in order to facilitate interaction and the effective transfer of information with Western patients to overcome negative, underlying emotions and enable autonomous decision making by the patients.

This exploratory study is focused on Western patients and Asian practitioners in Thailand. Future research in other countries and with patients from other geographical areas could expand to generalize findings.

Fostering information sharing with Western patients by using an integrative communication model can improve patient satisfaction and health outcomes. The need for developing and implementing these improved practices for communicating with Western patients is reflected by the healthcare industry's current developmental trends helping to lead to a future of health service internationalization.

This is the first empirical study to provide insights concerning the communication needs and coping strategies of Western patients with Asian doctors in developing countries.

The purpose of this paper is to examine the effects of offering customer decision authority on customer satisfaction in credence services, and the moderating effects of customer persuasion knowledge and service provider credibility.

A video-based experiment is conducted to achieve high similarity to real service encounters. The video comprises three levels of customer authority while service provider credibility is manipulated. In a subsequent questionnaire, customer response and customer persuasion knowledge are measured.

Results suggest that greater decision authority increases customer satisfaction. However, customer persuasion knowledge and provider credibility together were found to moderate these effects. Offering decision autonomy is most important when source credibility is low and persuasion knowledge is high.

The study setting is an initial healthcare encounter. Other service settings and service provider communication behaviors, such as empathy, responding to customer queries, and length of encounter are not considered in this study but should be further studied.

The study confirms that offering decision authority to customers increases satisfaction only under certain circumstances. Customers are willing to relinquish authority to credible service providers who then direct customer decisions in order to maintain service quality. Offering decision autonomy to customers is suggested when provider credibility is low and customer persuasion knowledge is high.

Analysis of credence service encounters is based on agency theory. Specifically, this study highlights the role of customer (principal) persuasion knowledge, which acts as a qualifier for the principal-agent problem because it alerts the customer to possible persuasion attempts by the service provider, whereas agent credibility eases customer suspicion.

As cause‐related marketing (CRM) is usually subsumed under corporate social responsibility (CSR), in practice CSR and CRM can serve as different public relations tools. This study aims to compare the effect of CRS and CRM on customer attitude.

In order to overcome various measurement problems, an experiment is conducted in a country characterized by a significant diversity of attitudes towards a cause.

The result indicates that both CSR and CRM have similar positive effects on customers' attitudes. However, while CRM might be more cost‐efficient, its positive effect is limited to customers with high cause affinity. In contrast, CRM has a negative effect on customers with low cause affinity, or who oppose the cause. A major finding is that CRM can compensate for negative CSR to a high degree in the cause affinity segment of the market. Therefore, a high degree of cause specificity of CSR might only be preferable if the market is characterized by broad cause affinity, or if a firm is facing negative public sentiment caused, for instance, by a product harm crisis.

The paper conceptualizes the difference between the cause‐unspecific and cause‐specific dimension of CSR and highlights the importance of cause affinity in cause‐specific CSR.

The purpose of this paper is to study the service responses of service providers to the affective states of business clients and to test whether they have a positive effect on the client's job performance, as well as their satisfaction and bonding to the service provider.

The results are based on a survey of 240 business travellers in Taiwan. Ordinary least square regression is applied to test the relationships.

Statistical tests confirm that service responses to emotional states have a positive effect on customer satisfaction, job performance and bonding. While service responses aimed at easing customers’ emotional problems increase satisfaction and job performance, true bonding is only facilitated through service responses that are centred on affection and social‐emotional support.

The authors investigate the personal service encounter with business customers who are using the service to perform a task. The findings are applicable to services that deal with customers in a similar way.

The paper shows that appropriate service responses to emotional states of customers, including business customers, can lead to higher satisfaction and bonding to the service provider. Service responses enable business customers to perform better.

The authors apply the concept of pre‐consumption emotions of customers to business clients. While pre‐consumption emotional states of customers have been studied much less that the elicitation of customer emotions, in the business‐to‐business sector emotions are seldom addressed. However, the study demonstrates that emotions are an important input factor that clients bring into the service encounter, which service providers can deal with to their competitive advantage.

The purpose of this paper is to propose a general model that examines the contextual factors underlying the decision‐making process of international hospital outshopping.

Patients who chose medical treatment abroad were selected to analyze the drivers of internationalization in medical services. A total number of 27 international patients who traveled from developed countries to receive medical treatment at the largest hospital in Thailand were interviewed and their responses assessed through narrative analysis.

The narrative analysis reveals that while high costs and the deteriorating conditions of health care in developed countries are initially driving consumers to leave their local service area and choose foreign service providers, pull factors such as innovation, organizational efficiency, emotional service quality and patient‐doctor relationships in service encounters are nurturing a real preference for choosing foreign health care providers.

This exploratory study is limited to the largest hospital in South East Asia. Future research could expand upon its findings and comparisons be made with other different foreign health care providers.

In order to attract foreign customers a personal service, such as medical treatment, must be based on and sustained by continuous innovation in service quality.

The paper is the first empirical in‐depth study that examines the factors underlying the decision‐making process of international hospital outshopping.