Search results

This paper aims to investigate the dynamics of a coordinate monopoly with established, risk-neutral firms; how these firms compete by adjusting prices; and when new competition(s) might enter the market with expectations of making more profits than any of the incumbents.

All results are established on the intuition of systems research and the concept of Nash equilibria of game theory.

Established results include how in a developed marketplace, risk neutrality would lead to stagnation in profits and irrational decision on pricing, and a sufficient and necessary condition under which new competition(s) would enter, although the market is coordinately monopolized.

Conclusions presented are initial results in the direction of research. More real-life-like, asymmetrical conditions need to be considered to see what variations of similar results could hold true.

Presented are an operational aspect on how to compete although the consequent level of profits might not change much or any at all and how some of the key issues on market entry timing are theoretically resolved.

This work indicates that for the minimum objective of business survival, existing firms, no matter how established, have to without any choice participate in market competition and look for new market opportunities.

Other than the established thought-provoking results, this work is the first of its kind. It organically combines recent achievements of systems research with game theory to explore issues of marketing, market entry timing and the dynamics of business firms’ behaviors.

The luxury brands sales in emerging markets will see rapid growth. When entering the emerging markets, luxury fashion brands always find it challenging to balance adaption with local consumer culture and standardization to maintain their global brand image. The present study attempts to examine this intriguing issue of adaptation and standardization and many other challenges for luxury brands in the emerging market by focusing on China’s luxury market. A case study on China is conducted, which consisted of reviewing academic literature and consulting trade reports, examining over 50 luxury brands’ Chinese websites, reading newspaper articles, conducting field trips to luxury retail outlets, and studying luxury brands’ advertisements in major Chinese fashion magazines. We identified five intriguing market characteristics that must be taken into account in order to succeed in this market. Specifically, we found that to perform well in China’s luxury market, luxury brands should have a good understanding of the conflicting Chinese social cultural sentiments toward luxury consumption. Luxury brands should seek a balance between standardization and adaptation and appeal to both consumers’ converging needs and their desire for products that embrace local elements. Further, given the unique consumer characteristics, luxury brands should better serve the young and economically diverse consumer base in China.

This study aims to examine animosity's role in determining consumers' product choices. Considerable research attention has been devoted to studying the relationship between animosity and consumers' willingness to buy foreign products. Few studies, however, have considered that individual consumers may harbor varying degrees of animosity toward different countries, thus, differentially affecting their willingness to buy products from these countries. The within‐subject comparison of the present study seeks to provide a clearer and cleaner approach to examining the impact of animosity on consumers' preferences for foreign products. Extending this line of inquiry, it also aims to explore the link between consumers' choice of products from high versus low animosity countries at different price levels.

Two studies were conducted to examine the impact of consumer animosity on product choice. Study 1 contains a survey study, and Study 2 is a full factorial conjoint analysis.

It is discovered that animosity plays a stronger role in determining consumers' willingness to buy foreign products from high‐level animosity countries than from low‐level animosity countries. Through conjoint analysis, the paper demonstrates that consumers are willing to make trade‐offs between price and animosity.

This study fills a void in the literature by exploring what role animosity plays in determining a consumer's choice of products, particularly when different degrees of animosity are held toward different countries. The within‐subject design of this research provides considerable insight on this front. In addition, this study represents an initial attempt to explore the dynamics between animosity and price via a conjoint analysis.