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Article

José L. Ruiz-Alba, Rodrigo Guesalaga, Raquel Ayestarán and Javier Morales Mediano

This paper aims to investigate interfunctional coordination (IC) in a B2B context. More specifically, it explores the role of digitalization as a strategic driver for an…

Abstract

Purpose

This paper aims to investigate interfunctional coordination (IC) in a B2B context. More specifically, it explores the role of digitalization as a strategic driver for an effective IC.

Design/methodology/approach

Following a qualitative methodology, three studies have been integrated: Study 1 (focus group with 5 participants), Study 2 (31 in-depth interviews with top executives) and Study 3 (online focus group with 9 experts).

Findings

One finding is that digitalization is the main driver for IC and can be considered strategic. Other findings show that digitalization can enhance IC, but it was also found that digitalization can have negative side effects on IC.

Originality/value

This study contributes to the understanding of the importance of digitalization on IC and also contributes to the conceptualization of IC as a dynamic capability.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 3
Type: Research Article
ISSN: 0885-8624

Keywords

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Article

Rodrigo Guesalaga and Pablo Marshall

The purpose of this article is to examine the purchasing power at the bottom of the pyramid (BOP), i.e. of low‐income consumers.

Abstract

Purpose

The purpose of this article is to examine the purchasing power at the bottom of the pyramid (BOP), i.e. of low‐income consumers.

Design/methodology/approach

The authors analyze secondary data on income, population, and expenditure at the BOP from different countries, and apply the buying power index (BPI) methodology to assess the purchasing power of low‐income consumers.

Findings

In developing countries, more than 50 percent of the purchasing power resides in the BOP segment. Asia is the region with the greatest purchasing power, relative to Africa, Eastern Europe, and Latin America and Caribbean. On average, the greatest BPI is in the lowest income tier, and consumption concentrates mainly in food, housing, and household goods.

Practical implications

The article provides useful information to companies interested in reaching low‐income consumers about the relative purchasing power at the BOP across geographic regions, income tiers, and product categories (or industries).

Originality/value

The research proposes the BPI as a key indicator of purchasing power at the BOP, and shows how this purchasing power breaks up among geographic regions, income tiers, and product categories (or industries).

Details

Journal of Consumer Marketing, vol. 25 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

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Article

Rodrigo Guesalaga, Meghan Pierce and Daiane Scaraboto

– The purpose of this paper is to explore cultural sources of variation on consumers’ expectations and evaluations of service quality within local emerging markets.

Abstract

Purpose

The purpose of this paper is to explore cultural sources of variation on consumers’ expectations and evaluations of service quality within local emerging markets.

Design/methodology/approach

The authors employ a multi-method approach. The multi-method research design utilizes: first, netnography to examine foreign consumers’ blogs and online communities; second, interviews with local and foreign consumers to unveil critical incidents in service encounters; and third, an online survey of 139 foreign consumers living in Chile and 460 Chilean consumers to map differences in their expectations and evaluations of services.

Findings

A general analysis of local and foreign consumers living in an emerging market reveals that these two groups do not differ significantly in their expectations of service quality. The authors also find that differences in expectations and evaluations of service quality within a local emergent market are only partially explained by aggregating consumers according to their country or region of origin. Finally, the findings demonstrate that examining cultural differences at the individual level generates a better understanding of how cultural factors impact consumer expectations and evaluations of service quality within emerging markets.

Research limitations/implications

The research is limited to one emerging market (Chile) and focusses largely in one industry (banking). Further research should be conducted to examine the findings in other contexts, including developed markets, and to identify how other cultural differences (e.g. language mastery) within local markets may impact consumer expectations and evaluations of services.

Practical implications

Service companies operating in emerging markets should account for cultural differences when determining service standards and protocols. These differences may cut across the local-foreign divide and suggest that profiling foreign customers depending on their country of origin is not the most adequate approach for providing excellence in service and enjoying the benefits that follow.

Social implications

Foreign consumers living in a local market are frequently considered a homogeneous group distinct from local consumers, and are treated as such by public and private service providers. The study demonstrates that foreign consumers may be more or less similar to local consumers depending on their cultural values, and should not be considered as a uniform group.

Originality/value

The findings extend research on consumer expectations and evaluations of service quality to account for cultural diversity within local emerging markets. The authors demonstrate that a cluster-approach to examining consumer expectations and evaluations of service quality better accounts for variations due to cultural values within local markets.

Details

International Marketing Review, vol. 33 no. 1
Type: Research Article
ISSN: 0265-1335

Keywords

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Article

Dennis A. Pitta, Rodrigo Guesalaga and Pablo Marshall

The purpose of this article is to examine the bottom of the pyramid (BOP) proposition, where private companies can both be profitable and help alleviate poverty by…

Abstract

Purpose

The purpose of this article is to examine the bottom of the pyramid (BOP) proposition, where private companies can both be profitable and help alleviate poverty by attending low‐income consumers.

Design/methodology/approach

The literature on BOP was reviewed and some key elements of the BOP approach were proposed and examined.

Findings

There is no agreement in the literature about the potential benefits of the BOP approach for both private companies and low‐income consumers. However, further research on characterizing the BOP segment and finding the appropriate business model for attending the BOP can provide some answers to this issue.

Practical implications

The article provides some guidelines to managers as to how they need to adapt their marketing strategies to sell to the BOP market, and what type of partnerships they need to build in order to succeed.

Originality/value

The article presents a thorough analysis of the key elements involved in the BOP initiative: companies' motivations, characterization of the BOP consumers, and the business model to attend the BOP.

Details

Journal of Consumer Marketing, vol. 25 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

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Article

Rodrigo Guesalaga and Dimitri Kapelianis

The purpose of this study is to develop and test a two-stage model of sales opportunity outcomes, and thus identify the factors that influence the likelihood of a…

Abstract

Purpose

The purpose of this study is to develop and test a two-stage model of sales opportunity outcomes, and thus identify the factors that influence the likelihood of a salesperson pursuing and winning a sales deal.

Design/methodology/approach

Using a longitudinal design, the authors collect data on 330 sales opportunities at two different time periods from two distinct sources and conduct data analysis using hierarchical linear modeling.

Findings

In the first stage, the authors find that the salesperson’s decision to pursue the opportunity is influenced by the strategic value of the client’s business and the concreteness of the opportunity. In the second stage, the authors find that the likelihood of winning the opportunity is influenced by the extent of the salesperson’s specialization, closeness to the buying center, company’s competitive position and fit with the client’s value orientation.

Research limitations/implications

The authors have examined discrete sales opportunities independent of ongoing business relationships; future research should explore transactions that are embedded within customer relationships.

Practical implications

The authors highlight the importance of evaluating sales opportunities at the beginning of the sales process and suggest some specific variables that relate to the selling context.

Originality/value

The authors analyze factors that influence the decision of the salesperson to pursue an opportunity or not, as well as factors that influence the likelihood of winning a deal or not.

Details

Journal of Business & Industrial Marketing, vol. 30 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

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Article

Rodrigo Guesalaga and Dennis Pitta

Services account for a very large portion of the economic activity in most countries. While there is abundant academic research on service quality, which has focused…

Abstract

Purpose

Services account for a very large portion of the economic activity in most countries. While there is abundant academic research on service quality, which has focused mainly on determining service quality dimensions, understanding service quality antecedents, and relating service quality to key outcomes, such as customer satisfaction and performance, there is, however, limited research on an increasingly relevant issue, which is how service quality perceptions differ among cultures. The aim of this research is to address this question.

Design/methodology/approach

The research used two identical surveys administered to managers in two different cultures. One survey was in English for the US sample and one was in Spanish for the Chilean sample. The surveys measured the importance of the five SERVQUAL service dimensions as well as relevant information about the respondent's experience, position and type of company at which he/she worked. Each country was examined for significant characteristics using Hofstede's cultural dimensions. Hypotheses were developed reflecting the differences expected by the characteristics of the cultures in which the respondents worked. Data was analyzed to extract meaning from the data using ANOVA.

Findings

Of the five service quality dimensions (tangibles, reliability, responsiveness, assurance and empathy), reliability is the most important in both countries. Responsiveness is the second most important. Three of the hypotheses testing the difference in perceived importance among service quality dimensions between Chile and the USA, were supported. H1: no difference exists between the two countries in the importance of tangibles, is supported (p=0.000). H2: reliability is more important in Chile than in the USA, is also supported (p=0.039). H3: responsiveness is more important in the USA than in Chile, is supported as well (p=0.012).

Research limitations/implications

Use of MBA students as survey respondents limits the generalizability of the results. Despite the fact that each subject was employed in a managerial position within a firm, each subject was also enrolled in an MBA program. Arguably, the subjects are all employed in business but differ from others who are not in degree programs.

Practical implications

The research highlights the need to attend to perceptions of service quality globally. The Hofstede cultural dimensions provide a clear and easy to apply framework that allows companies to identify what is important in a host culture. That information will enable service quality adjustments that offer the potential of improving customer satisfaction and firm success.

Originality/value

The current research is the first to use two tested conceptualizations to assess differences in service quality importance across cultures. It explores the relationship of Hofstede's cultural dimensions, with perceptions of service quality. It hypothesizes which service quality dimensions will be important based on the characteristics of the culture in which they are delivered. No other study has compared service quality perceptions between the USA and Chile. Each country has a vibrant, free market economy. The study provides a foundation for approaching other markets in Latin America and in countries with similar cultural dimensions.

Details

Journal of Consumer Marketing, vol. 31 no. 2
Type: Research Article
ISSN: 0736-3761

Keywords

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Article

Sungbum Jun, Dongmyung Lee and Jinwoo Park

This paper aims to develop a multi‐criteria approach for determining business models in bottom‐of‐the‐pyramid (BOP) markets.

Abstract

Purpose

This paper aims to develop a multi‐criteria approach for determining business models in bottom‐of‐the‐pyramid (BOP) markets.

Design/methodology/approach

Analytic network process (ANP) was employed to construct a decision‐making model of quantitative and qualitative factors relevant to BOP markets. Alternatives can be evaluated, respectively, and further business implications can be delivered to decision makers through continuous improvement of the model.

Findings

ANP is a tool that can address the interdependencies among decision elements and alternatives in the BOP markets. Moreover, it can be employed in structural analysis of the network of relationships among the selection criteria.

Practical implications

Decision makers can make more informed decisions by using the proposed approach, which is targeted toward BOP customers. This approach also overcomes the flaws of previous approaches.

Social implications

The successful selection of business models for BOP markets can change how multinational companies think about BOP consumers, allowing the poor to be perceived as value‐demanding customers. In addition, if multinational companies create new local business models, the quality of life of the poor could be improved.

Originality/value

The consideration of interdependencies among the criteria relevant to the selection of successful business models in BOP markets is a novel conceptual contribution.

Details

Industrial Management & Data Systems, vol. 113 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

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