Global Perspectives in Marketing for the 21st Century: Proceedings of the 1999 World Marketing Congress



This volume includes the full proceedings from the 1999 World Marketing Congress held in Qawra, Malta with the theme Global Perspectives in Marketing for the 21st Century. The focus of the conference and the enclosed papers is on marketing thought and practices from a global perspective. This volume resents papers on various topics including marketing management, marketing strategy, and consumer behavior. Founded in 1971, the Academy of Marketing Science is an international organization dedicated to promoting timely explorations of phenomena related to the science of marketing in theory, research, and practice. Among its services to members and the community at large, the Academy offers conferences, congresses and symposia that attract delegates from around the world. Presentations from these events are published in this Proceedings series, which offers a comprehensive archive of volumes reflecting the evolution of the field. Volumes deliver cutting-edge research and insights, complimenting the Academy’s flagship journals, the Journal of the Academy of Marketing Science (JAMS) and AMS Review. Volumes are edited by leading scholars and practitioners across a wide range of subject areas in marketing science.

Chapters (100)

Based on Becker’s (1965) theory of time allocation, this paper develops a formal model to explain consumers’ distribution channel switching behavior. Our model suggests that consumers choose among alternative distribution channels on the basis of the relative opportunity costs of time, costs of the goods, pleasure derived from shopping, perceived value of the goods, and relative risk of each channel.
The paper presents a research program on the future of logistics in electronic commerce. It emphasizes the key role of logistical intermediation in the marketing channel, while much research on the subject tends to deal with the idea of “generalized disintermediation.” Three propositions are put forward; one of them concerns the nature of this logistical intermediation, and the other two relate to the sen/ice providers who exercise operational responsibilities.
Since 1981, the expansion in international markets is unprecedented in a history of world market evolution. Never have so many firms been involved in marketing to so many user s worldwide. Yet, the channel function tends to lag behind the other traditional areas, i.e. advertising, promotion, packaging pricing, and product differentiation. These areas have a good deal more “excitement” in their applications compared to the seemingly mundane task of moving goods and services through the channel. Furthermore, existing channel variation between countries poses a sizeable threat to the effectiveness of an integrated international distribution strategy.
As global competition has increased, there has been a renewed Interest in the effect of culture on marketing strategy (Aggarwal 1995; Black and Porter 1991; Bigoness and Blakely 1996; Dyer and Song 1997). The basic question, which has been argued for decades (see for instance, Buzzell 1968; Levitt 1983), is whether (or to what extent) management theories and practices are transferable across cultures (Douglas and Wind 1987). Some assert that globalization and changes in technology have lead to standardization, increasingly similar cultures, and universal management practices (Levitt 1983; Misawa 1987; Harpaz 1990; Ralston et al 1992). Others argue that despite the standardization of products and services, cultures are resistant to change, cultural differences are fairly stable over time, and different cultures require different management practices (Newman and Holten 1996; Hofstede 1980; 1991; Barkema and Vermeulen 1997; Erez 1986). Research findings have been mixed, but recently academicians have tended toward the view that culture does still matter. However, it has appeared that many organizations operate under the belief that cultures are converging and therefore, the transferability of management practices is a viable strategy (Callahan 1989; Marketing News June 1998). Thus, the impact of culture on marketing management strategies is still an important issue.
The paper explores the appropriateness of using a neural network algorithm for ana-lyzing excerpts from focus group interviews. Keywords (brand names, values, etc.) are identified by the analyst. The program then scans the entire text and establishes a “cova-riance” matrix with weights that express pain/vise associations between words. This matrix can be used as input data set in multivariate analysis. The paper discusses a selection of problems involved in quantifying qualitative information. The empirical analysis is based on focus groups concerning a tourist catalogue.
A case study was done of the development of a service designed to help large companies, develop relationships with teenagers. The focus of the case study is on determining why target companies did not find the service appealing enough to buy it.
For many companies the (financial) risks of entering new markets or launching new products or services are quite substantial (Boush and Loken 1991; John and Loken 1992). One way of dealing with these risks is to use the familiarity and prestige, or rather, the image of brands as a leverage for enhancing credibility and unobservable quality (Rao et al. 1997). Moreover, a strong corporate brand image can be used to increase communication efficiency, particularly if the new market is clearly beyond the current market scope of the firm (Keller and Aaker 1997).
Despite references to franchising’s rapid growth as ‘spectacular’ an ‘explosion’ (Chan, 1994), there remains a notable lack of research into franchising in a European perspective. Studies of contemporary literature show a lack of franchising research generally (Hamilton and Watts, 1998), and little on international franchising issues (Elango and Fried, 1997), (Hoffman and Preble, 1995). This paper presents an overview of franchising in the existing literature, considers marketing issues relevant to European franchising from a critical perspective and poses key questions and directions for future research.
This paper uses a neural network to analyse the type(s) of strategy best followed by managers wishing to improve performance. Insights are also gained into the input variables that had the most impact on performance, and the conjunctions of factors that impact performance. For illustrative purposes the analysis is performed on the hospitality sector, using data collected from 100 hotel units located in the UK.
“… The set of beliefs that puts the customer’s interest first, while not excluding those of all other stakeholders such as owners, managers and employees, in order to develop a long term profitable enterprise” Deshpande, Farley & Webster, 1993, pp 27.
To try and gain insights into the advertising client-advertising agency relationship, recent research has attempted to apply organizational theory frameworks. The four key areas to consider in the client-agency relationship are the task, the buying center, the process, and power.
Many universities are interested in knowing why overseas students choose one country over another in which to pursue their studies. Most Hong Kong students who study overseas choose either Australia, the UK, the USA or Canada, but why do they choose one over another? Exploratory research identified 17 variables thought to influence this choice. These variables were structured into a model of choice of destination involving three underlying dimensions: course and country characteristics, administrative processes, and costs. The model and two competing models were tested using data gathered through a questionnaire personally administered to 354 Hong Kong residents intending to study overseas. The model with the best fit contained only course and country characteristics.
Older adults are a key leisure travel market segment. Thus, it is imperative to understand age differences in how travelers respond to destination advertising used to prompt the destination selection decision.
This exploratory study takes a “uses and gratifications” approach to studying the ways in wh1ch on-line media function as information sources for college students. Based on a survey of 204 students, the study yields insights into the motivations driving Internet usage among a college population and examines gender and cultural differences in the sampled populations. Managerial implications and directions for future study are also provided.
This paper describes a social marketing program that utilized an advertising campaign and the involvement of peers to combat alcohol and tobacco use within four rural communities. A model media campaign was implemented by teams of young women from four participating communities. Preliminary results suggest that the campaigns had an impact on community environment and self-efficacy, but not on peer influence, behavior, and behavioral intentions.
It is acknowledged (Weinstein & Nicholich, 1993) that with the development of services marketing specifically related to health services comes a need to understand the aspects of consumer risk behavior. This paper examines differences in perceived risk between health services, general services and goods and will seek to substantiate and develop the work reported by Murray and Schlacter, (1990), utilizing a qualitative methodology with repeated measures and nested factors. The conclusions support the hypotheses that there are significant differences in perceptions of physical, convenience and social risks when purchasing health services.
We examine the relationship of personal values and arousal tendencies. The relationship is based on telic dominance, a state-based theory developed to explain risk-taking. However, antecedents of telic dominance have been under-studied. Our study seeks to identify the role of personal values as antecedents. In general, we find that personal values and telic dominance tendencies are related.
Studies exploring kids’ influence have used different methodologies. Thus, it is virtually impossible to compare their findings. Additionally, most previous studies have been conducted in the US. Therefore, cross-cultural comparisons are few and far between. We replicate Ward and Wackman’s study (1972) and present a cross-cultural comparison between Israeli and US samples. The study revealed differences across products and age groups. Israeli children request more frequently products that are used primary by children such as clothing, bicycles and records. US children mostly try to influence the purchase of food products such as breakfast cereals, snacks and soft drinks. Additionally, for most products, Israeli mothers tend to yield more often than US mothers do.
The pressure of time and consumers’ consequent desire for convenience in our technology driven society promotes the search for new and more convenient ways of undertaking everyday activities. One major change currently occurring is in how the population shops. The use of technology to facilitate shopping both at home and in the workplace, is one of the major influences on electronic commerce that is expected to continue into the 21st century and is reflected in the growth of non-store alternative forms of retailing.
This study attempts to empirically examine consumerism in Saudi Arabia, an attractive international market in the Arab Middle East. The study reveals that consumers in Saudi Arabia have: an overall positive view about marketing practices, a little enthusiasm about consumerism, and an overwhelming reliance on government regulations.
This study presents the results of an investigation on the effects of liberalization of trade channels on marketing activities in Nigeria. The study is an ongoing survey of the distributive trade sector of the Nigerian economy, a country characterized as the largest economy in the Sub-Sahara Africa. The study was conducted in two commercial cities in Nigeria. The purpose is to evaluate the role of marketing in the development process in Nigeria, and also to examine the future role of marketing in developing countries, especially sub-Sahara countries, as they enter the 21st century search for solutions to their economic problems.
Influencing factors that have emerged onto the forefront of international market research include consumer ethnocentrism (CE) and country of origin (COO), and to a lesser extent, consumer world-mindedness (CW), consumer patriotism (CP), and level of conservatism exhibited by consumers (CC). These factors and their determinants become important to marketers who are always trying to uncover the nature and extent of the influences in order to devise appropriate marketing and advertising plans. Keeping in mind this task of marketers, the study presented here examines the relationships between CW, CP, CC and CE, and in turn, outlines how this might impact COO evaluations and subsequent purchase behaviors.
Private brands, which include those that carry the name of the store in some way or those that are exclusively available from a specific retailer, has evolved into the mainstream of branding strategy. The history of private brands has been one that has seen varying levels of success and acceptance over the years as it fell under the assault of large packaged goods companies in the 1950s. Because private brands typically cost less to make and sell than national brands, one of its problems has been its poor brand image compared to national brands.
In this work-in-progress paper we address the issue of governance forms and its influence on performance in distribution channels. We use the typology from Mintzberg to define different dimensions of governance form and its implications on performance. To address these issues we draw on transaction cost theory, principal-agency theory and the theory of interfirm trust.
According to Kotler, Chandler, Brown and Adam (1994, p. 752), many analysts view the 1990s as the ‘Earth Decade’ in which protection of the natural environment will be the major issue facing people around the world. Environmental issues according to Kotler, et al. (1994) have become so important in our society that there is no turning back to the time when few managers worried about the effects of product and marketing decisions on environmental quality. Kotler, et al. (1994, p.752) claimed that companies have responded with ‘green marketing’ -developing ecologically safer products, recyclable and biodegradable packaging, better pollution controls and more energy efficient. Peattie & Charter (1994, p.692), also claimed that environmental concern has led to the emergence of green marketing - an attempt to balance the pursuit of sales and profit with a concern for the environment and society. For businesses to gain a competitive advantage, new strategies are required so as to win the green consumers, says Ottman (1992). According to Miller (1990) companies that do not address environmental issues could face declining market share. In spite of this growing importance of environmental marketing, vety little research has been done in Australia to examine business attitudes towards environmental marketing. This paper presents the results of an exploratory study that seeks to (1) identify the attitudes of businesses in Western Australia towards green marketing and (2) determine whether businesses in Western Australia incorporate the concerns of the physical environment into their marketing practices.
The CETSCALE, a 17-item measure of ethnocentrism, was subjected to a validation test in the Armenian language using a 276 respondent data set collected in Soviet Armenia. Confirmatory factor analysis indicated that the 17-item single factor model found by Shimp and Sharma (1987) does not fit the Soviet Armenian sample response pattern. However, a revised two factor model consisting of five and four items, respectively, discriminates adequately and is conceptually useful in this particular situation.
This study explores the information and thematic content of consumer advertising in India. The findings reveal that most consumer-oriented advertising contains some information. However, the typical ad has relatively few informational cues and is likely emotional as opposed to rational. Country-of-origin of the product did not influence the nature of the advertising themes used.
A content analysis of prime time Russian television commercials examined advertising strategies employed in that country. The analysis examined appeals and information content employed by both Russian and foreign advertisers. Results indicate that foreign advertisers influence and are influenced by the Russian culture.
In the advertising industry, the agency/client relationship is extremely important for both parties as a “failed” relationship can result in major costs in both time and money. Past research has concentrated on just analysing the views of the advertisers. This study examines what attributes are valued by agency executives as important in winning new clients, particularly whether there is any variation in perceived attribute importance ratings among account directors of different types of agencies, based on (a) type of account handled; (b) size of billings; (c) nature of agency service; and (d) success rate in winning new clients.
This case study, written for classroom use, describes the marketing actions undertaken by a USAID-funded project to control the spread of HIV/AIDS in Nepal. It details the communication strategy used to achieve the program’s objectives. The focus of the case analysis requires students to evaluate the results of a preliminary research study conducted to assess the program’s effectiveness and to decide whether to undertake a larger-scale assessment and if so, identify the specific data needs
Different Levels of customer participation are inevitable in services production and delivery. The current conceptualization of the service delivery process focuses mainly on the relationship between the provider and the customer during the service encounter.
The use of technology to enable or facilitate the delivery of services can benefit customers and service providers alike. Correspondingly, however, the purposes to which technology is put, and the manner in which it is used, may run the risk of disenfranchising customers. This might be due to technical faults and failings, but also due to situations in which human interaction is substituted or diminished by a use of technology that is more in a service organisation’s interests than in those of its customers.
Relationship marketing has gained recognition amongst both marketing academics and practitioners as the “paradigm of the 90’s.” The recent adoption of the loyalty card by supermarkets has been hailed by many as the establishment of relationship marketing in that industry. This paper compares the application of relationship marketing in British supermarkets and convenience stores.
There has been limited research that considers the link between a firm’s relational value discipline and its Service Profit Chain. The Service Profit Chain, while a valuable managerial tool, does not fully incorporate measurement for a magnificent value proposition. More specifically, determining exactly how employee and customer factors impact an organization's financial performance requires an understanding of its dominant value discipline based on its adaptive strategy. In this paper, we present a contingency model that provides the added link to the Service Profit Chain in terms of relational value disciplines. We propose that it is the choice of relational value discipline that determines the nature of an organization’s customer loyalty and its financial performance.
Although the Chinese market has been accessible for German companies for many years now, long term business relationships remain difficult to establish. In an exploratory study we detect barriers on different relationship levels.
Despite the substantial quantity of work that has been done in the area of export marketing and performance over the last three decades, according to Aaby and Slater (1989), as well as Cavusgil and Kirpalani (1993), there still remain few generalizable conclusions that can help guide firms in their export endeavors. Reviews by Bilkey (1978), and Cavusgil and Nevin (1981), Reid (1983), Madsen (1987), Aaby and Slater (1989), and Da Rocha and Christensen (1994) indicated that the international literature is contradictory with mixed empirical evidence. In the light of the shortcomings of the export marketing literature, Da Rocha and Christensen (1994) called for additional research to examine to what extent export management theories and practices developed in the West are applicable to the developing countries. Styles and Ambler (1994) also called for future research to empirically test a comprehensive list of variables that might influence export performance. This paper will be presenting the results of a study in China that was designed to investigate the relative importance of the key success factors of export marketing put forward by various paradigm (including: management commitment paradigm, firm competence paradigm, strategic management paradigm, industrial organization paradigm, relationship paradigm, etc.). This study surveys three major cities in China namely Beijing, Shanghai and Guangdong. Discriminant analysis will be used to identify the relative importance of key success factors differentiating success export ventures from unsuccessful export ventures.
This paper looks into the variables affecting the FDI entry mode selection process. It argues that most of the existing studies on this issue are based on the experience of multinational corporations of developed countries and thus are not adequate to explain FDI of firms from the newly industrializing economies into their neighboring regions. While most empirical studies have tended to follow a single theoretical perspective, this paper argues that an eclectic approach is more suitable to explain the complex and multifaceted entry mode decision-making process of firms. In view of the overwhelming dominance of Hong Kong manufacturing investment in China, this study attempts to provide an explanation of what factors influence Hong Kong manufacturing firms’ choice of FDI entry modes into China. Following a detailed literature review, this paper proposes an analytical framework that combines strategic, firm-specific, country-specific and transactional variables to guide future empirical investigations.
In carrying out marketing work, an organization may use one or a combination of the following philosophies or concepts which Kotier (1994), described as: (1) the production concept (2) the product concept (3) the selling concept (4) the marketing concept and (5) the societal marketing concept “The production concept holds that consumers favour products that are available at low cost and that management’s task is to improve production efficiency and bring down prices. The product concept holds that consumers favour quality products and that little promotional effort is thus required. The selling concept holds that consumers will not buy enough of the company's products unless they are stimulated through heavy selling and promotion. The marketing concept holds that a company should research the needs and wants of a well - defined target market and deliver the desired satisfaction. The societal marketing concept holds that the company should generate customer satisfaction and long-run consumer and societal well-being as the key to achieving both its goals and responsibilities". (Kotler, et al. 1994 p. 18)
This paper examines the perceived role, responsibilities and tasks of brand managers in fast moving consumer goods industries. It analyses their involvement in activities relevant to market analysis, strategic and tactical planning, implementation and evaluation of programmes and training of assistants and colleagues in Greece. The results proved that brand managers have a co-ordinating role and that their involvement in the strategic decision making of their brands is still limited
Unconditional service guarantees have been championed as a potentially powerful tool to improve service quality and build marketing muscles (Wirtz 1997). Yet, despite the potential benefits, there is a large majority of service providers who are unwilling to expose themselves to the perceived risk of running such a guarantee. Customer cheating or fraudulent invocation of guarantees is one of the reasons why firms hesitate to implement unconditional guarantees (Wirtz 1998). Anecdotal evidence from firms with successful guarantees seems to suggest that consumer cheating is not a severe problem. However, this may be due to self-selection biases of the firms which have guarantees, and as the literature on shop lifting demonstrates, by far not all customers are immune to the temptation of taking advantage of a firm. Hart (1993) reported an example based on Hampton Inn’s guarantee. A guest repeatedly invoked the guarantee and wrote on a comment card that he liked Hampton Inn because it is free. So far, no empirical research has examined what drives cheating behaviour on guarantees, and how such behaviour could be reduced or controlled for. This study examines potential drivers of cheating on service guarantees.
While the author of this paper has in the past been frustrated by the lack of students’ knowledge of their own culture, Blackmon (1998) reports that “America is becoming a nation of culture” (p. A1). Americans are buying “serious books,” attending the opera and symphony, foreign and “arts” cinema, and eating at “fine dining” restaurants. High levels of wealth, education, and cultural exposure (sometimes due to high technology) provide the explanations. While certainly marketers at opera companies and theaters are encouraged by this news, other not-so-obvious industries are affected.
This paper uses the latest findings of the CMP research program to examine the realities of the business-to-business/consumer marketing dichotomy, from the perspective of the practitioner.
In business to business markets users are typically very experienced with the product or service. This study examines the effect of different levels of experience on satisfaction judgements, and on subsequent word of mouth intention in a business to business market. It finds that customer experience has an additive effect on disconfirmation of expectations. At any level of disconfirmation of expectations, more experienced customers were more satisfied. It also finds an interaction between experience and satisfaction in predicting word of mouth. At lower levels of satisfaction, more experienced customers were much less willing to recommend the service.
The evolution of alternative format stores has attracted consumers by offering larger package size and the one-stop shopping approach. The grocery industry must remain on top of all trends in order to compete. Specifically, Category Management is a concept that has been adopted by firms in this industry to gain a competitive advantage not only at the national level, but at the global level as well.
During the 1990s there has been an awareness in the Australian business community and society of the need for Australia to compete effectively in the international economy if the current standard of living is to be maintained. This highlights the need for managers to understand the importance of their role in strategy development. Even though managers cannot control the external environment, they can make the appropriate strategic choices to assure business success.
The development of the Internet has raised new Issues about Its Impact on the structure of markets and the marketing policy of firms. The paper attempts to provide a conceptual framework, In the form of a matrix, to assess the Impact of the digital revolution on firms’ offer policy, according to the nature of Its activities. In a second step, we try to Identify the strategic consequences of dlgltallzatlon on the competitive advantage of firms and the perceived value of Its offer.
For high technology users, the opportunity to personally and directly secure services on the Internet should be a welcomed option to the variability of services delivered by humans. Yet our research indicates, to the contrary, that high technology users prefer the human touch in the services that they seek.
This paper examines the evolving application of direct marketing in a digital marketplace. The promise and threat associated with interactive marketing via the Web is identified. Various prerequisites for widening customer acceptance of global direct marketing using the Internet are explored. Current examples illustrative of the strategic use of Internet-based marketing that can provide guidance to those seeking to extend their reach to non-domestic markets are offered. The evolution of new conceptualizations of methods for developing e-commerce relationships (e.g., portals) and how companies can mine consumer and business databases to more accurately target Internet-using consumers and achieve greater profitability are discussed.
Waiting is something that most time-pressed consumers voice as being a negative and many people complain about waiting for service providers. While many different aspects of waiting have been studied, the reported research looks at several dimensions of waiting behavior for six different consuming situations in two different countries. The results indicate that there are differences between cultures with respect to most dimensions of waiting examined. There are also differences among the different consumer situations, but most surprising is that in this study there was not a strong association between waiting behavior and satisfaction with the service provider.
Two-sided messages are generally more effective than one-sided messages when it comes to changing a strongly held attitude (Hawkins, Best, Coney 1995; Jackson and Allen 1987), and their use appears to be increasing in North America. However, with the globalization of business the question arises as to whether this message strategy is just as effective in other cultures. The focus of this paper is on examining the role of a major cultural dimension, namely, Individualism/ Collectivism (I/C) on the differential effectiveness of these two message forms.
The study focuses societal and social marketing. A qualitative research was taken to know the consumers attitudes toward three programs referring the avoidance of energy power wastage. Some considerations were made aimed to guide marketing decisions. The marketing activities would be improved not just to reach the consumer satisfaction but the society as a whole.
An important fundamental issue in marketing is the understanding of the relational context in which exchanges occur (cf. Bagozzi 1975; Houston and Gassenheimer 1987; Kotler and Levy 1969). Several marketing scholars have maintained that relationship marketing actually represents a paradigm shift in marketing (Gronroos 1991; Sheth and Parvatiyar 1995; Webster 1992), permanently changing the competitive playing field for firms and consumers (McKenna 1991). Given its importance, we argue that future research on relationships in marketing needs to be driven by a clearer understanding of the complexities and intricacies of these relationships. To guide this understanding, we review and integrate a large body of empirical work by marketing scholars on business marketing relationships (BMRs). We build a theoretical framework, against which we can assess extant relational theories, e.g. transaction costs economics, resource dependence, social exchange, and suggest areas for future research.
The Internet as a medium for communication and distribution is gaining more and more importance. For the retail trade, in particular, which traditionally has very close links to the customer, the Internet offers enormous opportunities if retailers can also succeed in applying their knowhow in customer policy in way that is effective in the media. Nevertheless, the opportunities offered by the Internet also involve some risks for retail traders. The danger of manufacturers by-passing the retailers is one that is mentioned again and again in this context. The retail trade will also be faced with a new challenge if new companies appear dealing solely in virtual retail trading. This is why it is now of interest to find out what factors cause a consumer to access a company in the Internet and which factors determine whether he will access a retail trader, a manufacturer or an entirely new company. So, the purpose of the study is to analyze the consumers’ relationship with the business sector and the companies.
The purpose of this article is to present a revised model of Service Quality to study the role of telemarketing in the creation of service quality and customer satisfaction. The SERVQUAL instrument is used as a base for the conceptualization. Based on five focus groups, five propositions are presented for study.
The paper assesses and interprets the changes which have taken place in Polish retailing, particularly grocery retailing, over the last 10 years. Key issues are the privatisation of the existing network, subsequent restructuring and the opening up of the market to non-Polish retail firms. Some implications of these changes for competition and industry structure are indicated. The paper points to possible ways the sector will develop over the next 5 years.
A common view in the field of innovation is that large, incumbent firms rarely introduce radical product innovations. Such firms tend to solidify their market positions with relatively incremental innovations. As a result, radical innovations tend to come from small firms, the outsiders.
This study investigates differences in the extent and nature of children’s purchase influence in the U.S. and Malta. Hypothesized differences were based on cultural patterns in the countries. Findings support that Maltese children will exert greater overall influence than children in the U.S. Findings about the nature of influence were mixed.
This paper explores the existence of different food-related lifestyle segments in the Republic of Croatia. Using international instruments and a cluster analysis, we found five different segments which differ in buying motives, quality aspects of the food, buying decisions, cooking methods and consumption situations. They also differ in sociodemographic characteristics. We called these segments, making up the following percentage of the population: Relaxed - 10%, Traditionalists - 20%, Modern - 29%, Concerned -12% and Hedonists 32%. We expect these segments to change in the future in size and in the characteristics of behavior concerning a food-related lifestyles.
Australian technology policy has traditionally relied on the use of R&D incentives to stimulate innovative activity. However, a recent Industry Commission report found that Australian industry receives $16.6 billion in Government R&D incentives each year, but concluded that most selective assistance has little or no positive effect on the welfare of Australians (Dwyer 1998).
Faced with declining funds from government and the public, charities have increasingly sought support from business organizations (Industry Commission, 1995). Three main types of support have been sought, namely donations, sponsorship and coalignments (commercial business deals, e.g. licensing the use of a logo). Organizations can provide either money or in-kind support, such as goods, services and staff time.
The immediate post war period saw a confidence in statist policy intervention. In the anglophone world this was particularly the case in Australia and Britain. The concept of policy sciences was developed as a multi-disciplinary, problem solving, explicitly normative approach to the under-standing and managing of the policy process. Disillusionment with state based approaches to policy solutions led to a rise of market-based policy solutions, and demise for the original policy sciences project. The original state-based policy tools were replaced by market-based policy tools. However, the market-based discipline of marketing has thus far not been explicitly included. This paper argues that marketing should be considered a policy science and has much to offer as a tool in the policy process.
An experimental investigation designed to ascertain the dominant mode of information integration used by respondents when making judgments under different levels of involvement is described. Consumer judgements were elicited in the presence of an involvement manipulation using a 2×3 fully crossed factorial with two levels of purity and three levels of brand as well as three branded only stimuli. The pattern that emerged suggested that respondents were more likely to add items of information under low involvement, and to use an averaging paradigm under high involvement judgment situations.
At the center of many arguments for “free trade” and “fair trade” is the notion that harmonization--or making more similar governmental policies and regulatory requirements concerning environmental and safety standards and similar issues--will further reduce non-tariff barriers to trade. By now the concept of harmonization has been fully incorporated as the norm in international economic relations in the world's trading system. Harmonization has always been an important concept in the evolution of the European Union (EU) and, more recently, it has been adopted in the World Trade Organization (WTO) Technical Barriers to Trade (TBT) agreements.
Marketing, as a body of knowledge, has always been concerned with understanding relationships between buyers and sellers. Recently marketing has made a move away from the transactional model or ‘four Ps’ model of marketing towards a model based on relationships. Dubbed ‘relationship marketing’ this model has received increased attention. There is general agreement that relationships between buyers and sellers have changed and that this trend can be observed across a range of industries. However, the enthusiastic acceptance of relationship marketing in industrial (Arndt, 1979), services (Berry, 1995) and consumer markets has created a gap between the need to instil a relationship orientation in contemporary firms and the existence of theoretical concepts and empirical guidelines for doing so (Gummesson, 1994).
Two methods for attaining organisational success include the exploitation of firm resources by adopting the resource based view (RBV) and the development of a market orientation (MO). The ultimate objective of the RBV is to create superior value for the firm by deploying unique and costly to imitate resource bundles for the purpose of exploiting environmental opportunities and neutralising threats (Barney 1991). The MO of a firm differs from the RBV as its objective to create superior value for customers relative to competition (Narver & Slater 1990).
This paper investigates the detailed promotional attitudes of retailers across three countries. The key aim was to see whether the perceptions of owner-managers of nine commonly used promotion tools varied across country. Both perception and budget data was examined, as well as selected combinations of promotion tools.
This paper looks at the way the Ukrainian residential real estate market has evolved in Kiev, Ukraine through an analysis of primary sources. Real estate information bulletins from three different agencies are studied over a period of four years. The scope and sophistication of marketing has clearly improved and there is strong evidence for growing professionalism within the industry. The authors suggest that improved marketing practices have had an impact in improving the quality of information available to Ukrainian consumers.
As we contemplate the future of the marketing profession, in a developing European environment where marketing silos (departments) may cease to exist, and where IT offers unparalleled opportunities to access data, we need to be concerned that the reputation of marketing departments as big spenders with low accountability does not infect the reputations of marketing professionals. The paper explores the marketing accountability problem. It will offer some suggestions as to how a mix of financial, operational and intangible measures can be developed. The paper will suggest that current financial reporting methods are out of step with the times, and will propose how corporate reporting might develop systems that truly reflect the values of the company, reporting systems which give some real insights into stakeholder values, and how marketing investment and marketing skills contribute to these values.
In consumer research on brand extension evaluations, it has been established that parent brand attitudes could be transferred to extensions as long as the perceived fit is high between the parent brand and the extension product. Adding to this finding, we examined how parent brand attitudes and incoming attribute information of the extension product affect extension evaluations. Here, we present the long abstract version of our work.
Shoham, Rose and Albaum (1995) discussed the Etnocentric, Polycentric, Regiocentric, and Geocentric Framework (EPRG) in the context of a nomological network that also included export motives and psychological distance. Notably, the impact of EPRG orientations on firm performance was not discussed in their study. This article addresses this relationship. We argue that EPRG orientation, in and by itself, should not affect performance. We document empirically that subjective assessments of export performance do not differ on the basis of firms’ EPRG orientations.
With the globalization of markets, attention to international branding strategies becomes an increasingly important issue. Firms must decide on the appropriate balance of global, regional and local brands, as well as who should have custody of these brands and their positioning in international markets.
The marketing literature still reflects Levitt’s claim that the world’s preference structure is homogenized, even though this claim lacks both conceptual underpinnings and empirical support. Although a long term tendency toward homogenized preferences remains possible, a study using United Nations and World Bank data fails to support such a tendency.
This paper provides a brief summary of a theoretical frame-work which is used to explain the development of international business relationships. It gives an outlook to an empirical study examining what kind of impact selected situational factors have on the outcome of cross-border relationships.
The impact of environmental factors and strategy behind alliance formation on the governance structure of an alliance are examined. Based on a comprehensive sample of 2637 alliances, formed in the biotechnology industry between 1987-92, partial support for hypotheses is found.
With the emergence of relationship marketing there has been an increased focus on the use of inter-firm relationships or strategic alliances in delivering a total service package to the consumer. This research argues the formation of strategic alliances is a strategic reaction on behalf of firms to changes in the market environment.
It is planned that a Transrapid magnetic levitation rail link between Hamburg and Berlin will have been built by the year 2005. However, this means of transport, which is based on innovative technology, is caught in the critics’ crossfire. This contribution highlights the effectiveness of the scenario method in the field of technology and innovation management from a market-orientated perspective. The basic criteria of the scenario method will first be outlined and concepts on the future transportation market in the year 2010 will be produced. This will allow strategic directions for positioning the magnetic levitation railway to be identified and a target-group-oriented marketing concept to be developed.
The use of Sports Marketing and special events has been gaining a legitimate place in the promotional activities of various organization. Substantial resources have been shifted from traditional promotional methods into sports marketing activities. Such activities include: becoming official sponsors of various sports and special events, naming rights on stadiums, in stadium signage, and the use of sports celebrities as endorsers. In 1998 $6.8 billion was spent on sponsoring sports and special events alone. Over 65% of it ($4.55 billion) was used to sponsor sports event. Sport marketers are always on the look for new media to help leverage their sport activities and reach consumers through the magic power of sport. Thus, The explosion in the popularity of the new interactive media, and the World Wide Web (WWW) didn’t go without notice by sport marketers.
There is an increasing trend of a strong preference for or bonding to, possessions which is tied to the rise of individualism in our modern consumer society. Individuais increasingly define themselves and others in terms of their possessions and possessions have come to serve as key symbols for personal qualities, attachments and interests. To help understand this attitude of consumers toward their possessions, marketing scientists have utilized the construct of ‘involvement’. In the past decade, considerable theory development and empirical testing has centered on involvement (Mittal 1989). The purpose of this study was to explore the relationship between consumers involvement, their degree of materialism and degree of self-image product-image congruency.
The dominant theoretical paradigm in marketing--logical positivism--assumes the task of scholarly inquiry to encompass four broad sets of activities: i) observation; ii) theory building; iii) hypothesis formulation; and iv) hypothesis testing. The goal of logical positivism is to develop models and theories which adequately explain the “objective situation”. Insight is achieved, knowledge created, theories refined, and the field is advanced as succeeding generations of theory-based hypotheses are accepted and/or rejected. A key assumption of the perspective is that interactions between phenomena observed (strategy, performance, market share, etc.) and observer (the marketing scholar) are not relevant to the inquiry. Indeed, the ideal has the observer detached, objective, and unobtrusive. For a variety of reasons, this ideal may not always hold up.
Defense strategies have played an important role in marketing theory and practice. Drawing on industrial organization and economic theory several marketing implications can be made. One of the major concerns is the deterrence of potential entrants and the slowing down of actual competitors. Theories about entry deterrence and limiting markets have an especially great impact in deregulated markets such as the utility industry or telecommunication industry. Strategies aiming at entry deterrence include aggressive pricing, cost minimization, product diversification or advertising. The focus of our study is on aggressive pricing.
In a case study of a Sponsorship dyad, Sydney 2000 Olympics Organising Committee, Mr John Moore, and SponsorTelstra General Manager Sponsorship strategy, Mr Rob Smallwood, shared their views on the mutual obligations which the parties of such a relationship should face. This qualitative study revealed unexpected gaps in the respective expectations of the two organisations, as well as a naive optimism with regards to Ambush marketers.
Through an international application of the Greenleaf ERS measure, the author finds that significant differences in the proportional use of the extreme categories can be found between culture. Evidence is provided for the use of 5 to 7-point response formats for cross-cultural research. Implications for cross-cultural research are discussed.
This paper assesses the extent of cultural marginality and ambivalence among Asian students in the U.S. This paper also identifies strategies for assisting Asian students in adjusting to their new environments and for preparing them for the eventual return to their countries.
The influence of cultural values on the marketing of bank services in Japan and the United States is explored. This paper provides a framework for understanding the effect of cultural attributes on nine business dimensions: work and social relationships, enterprise habit, employment and performance expectations, behavioral traits, timeframe perspective, work orientation, preferred communication form, dispute resolution and dominant company reference. Each business dimension is further explored in terms of five service quality gaps and the balanced scorecard measures of customer, financial, internal process and growth perspectives.
Several on-line conferencing products are available commercially, having quickly become popular for use on Web sites. This paper gives one experience using an on-line conferencing product called “WebBoard” in a ‘Strategic Internet Marketing’ class, resulting in greater group interaction outside class between students and between students and faculty. Further, this paper suggests a rubric for analysis of the quality of postings from WebBoard to focus teaching and analytical skills. Bloom’s Taxonomy of Educational Objectives is the source of the categories used in content analysis.
This paper describes the development and implementation of a radically new integrated program for teaching undergraduate business majors. In particular, it focuses on the role of marketing within the integrated whole.
Technological change has driven many improvements in student learning environments and will lead to even more significant improvements, especially in distance learning. A description of a marketing simulation used at the Open University of the Netherlands provides a starting point for a discussion of potential changes in the future.
This study finds that female salespersons exhibit lower levels of opportunism than male salespersons. While the gender gap appears to close with experience, the role of gender and experience interaction as it relates to opportunism was inconclusive.
This study examines the usage and effectiveness of profit-oriented quotas in the achievement of company objectives. Data for this study were gathered from questionnaires sent to 219 sales managers within the U.S., of which 112 were returned for a 51% response rate. This study is perhaps the first to test the link between quotas used and company objectives.
Sales force compensation research has received much attention over the last few years. One of the major problems being addressed is the design of optimal sales force compensation plan structures, and especially determining the relative importance to be given to salary versus incentive pay (see for instance John and Weitz 1989). Starting with the pioneering article by Basu, Lal, Srinivasan, and Staelin (1985), agency theory has become the leading paradigm for analyzing this complex management issue. Unlike previous sales force compensation work, agency theory has allowed researchers to take risky situations into account. Because of a lack of information, or of unforeseen erratic events, selling situations are typically stochastic. Including risk into the sales force compensation problem was therefore warranted. According to the agency theoretic framework, management (the principal) devises an expected profit maximizing compensation plan, based on some knowledge of (1) salespersons’ utilities, (2) salespersons’ attitudes toward risk, and (3) the (stochastic) sales response functions to a salesperson’s selling efforts. As a result, salespeople (the agents) make decisions on their effort level and allocations, given their understanding of (1) the compensation plan imposed by management and (2) the (stochastic) territory sales response functions to their own selling efforts.
This paper presents the findings from an investigation into Portuguese wine exporters (port and table wine companies). The research was conducted via interviews with the presidents and marketing directors of these companies. This study revealed that the strategic orientation of Portuguese wine exporters is associated with a firm’s size. In the case of port wine companies, strategic orientation is also associated with a firm’s ownership. Additional findings and insights for future research in export marketing are provided. Research propositions are also suggested in order to approach the causal effects of the linkages between internal and external factors, marketing strategy, and export performance.
The most commonly used framework for analysing international market selection and entry is the classic, relatively formal planning model. This model emphasises detailed, numeric assessment of the export potential of different countries. The relevance of the formal model for small and medium sized firms has been questioned. A number of studies (including Brush, 1995) allude to the more informal, unplanned nature of small firm exporting.
In 1996, the Ssanyong-Musso, a new Korean-made recreational vehicle, was released into the Australian market. The product, distributed through the Mercedes-Benz retail network, was advertised as having a Mercedes-Benz engine. The link between a new unknown brand and a well-established prestigious one, via the explicit promotion of one component, appears to be critical for the positioning of Ssangyong in the luxury car market Even though this multi-branding strategy does not necessarily represent a trend, it may reflect one consequence of the globalisation of the automotive industry.
A more detailed understanding of individual differences in fans, likely participation levels, attendance rates and general consumption behaviors of target markets is becoming necessary for sport organizations. This study explores the individual characteristics of a large sample of the Australian population. Cluster analysis was used to identify four major segments, which could be discriminated through the level of sport enthusiasm as well as through personality variables such as sought levels of stimulation and arousal and aggression.
Marketing planning and market orientation are linked by a means end relationship. It is through marketing planning that a goal or a desired level of market orientation is selected and approached. The authors develop a typology of planning styles - synoptic, incremental and interpretive. Each style has a particular configuration of process, purpose and players. The authors believe that the type of planning undertaken by an organisation will affect its’ ability to execute activities that make up market orientation. The impact of varying planning styles on market orientation and performance will be presented.
One of the key questions in managing independent buyer/supplier relationships is the role external environmental context has in influencing their structure. This paper reports on part of a UK study, completed from the buyer’s perspective, which suggests external context is not as significant an influence on relationship structure in main supply relationships as would be expected. Many key external context variables were found not to be significant across a range of relationship types. An argument is made that management actions are a far more critical determinant.
This study develops and empirically tests a model of how exchange transactions are structured within inter-organizational relationships and the ensuing performance outcomes. It directly compares two different, and partly competing, theoretical perspectives on inter-organizational relationships, resource dependence and transaction cost theory.
Saturated markets characterize the situation that applies to a great number of wholesale firms. The associated trend of commercial customers to show a more mobile shopping behavior is additionally intensified by the changing communication and information possibilities. Against this background the question arises for the wholesale business whether the new media can be applied for increasing customer bonding.
In this study we develop a conceptual model that depicts the antecedents of information technology investments used to support the purchasing function and the impact of such investments on interfirm communications patterns, relationship quality, and purchasing performance. Our test of the model found that the impact of IT investments on performance is fully mediated by communications, frequency, communications intimacy, and relationship quality variables.
The emergence of electronic marketing on the Web has created many issues for Web researchers trying to discover effective design ways to advertise via the Web. The way different design features are used varies from simple and complex plaint text to colour backgrounds and moveable graphic styles to produce special visual effects to draw the viewer’s attention. The variables of Web page design features, differentiating between effective and less effective, are the core Issues to be examined in this research. This paper describes the design of the experiment and suggests a set of user friendly implementation guidelines and tool usage which will benefit on-line advertising.
Orientation: In 2009, Strategy-as-Practice (S-as-P) research, as a subfield of strategy research, was grouped into nine different domains, and researchers were advised to frame their research within these domains. The papers or works (herein used interchangeably) published with S-as-P as subject, were counted, categorised, and a typology matrix was constructed.Researchers use this count to indicate a need for research in a specific domain.Research purpose: The main purpose of this study is to construct a comparative S-as-P typology matrix which accurately depicts the number of papers published in each domain between 2008 and 2015.Motivation for the study: The S-as-P typology matrix was first published in 2009 (Jarzabkowski & Spee 2009), and at the present moment, six years later, researchers still use the dated number of papers counted in each of the S-as-P domains to indicate a research gap.Research design, approach and method: A content analysis of all papers, listed by researchers on the official S-as-P website, was conducted. The papers were disseminated and key variables were counted.Main findings: The comparative typology matrix shows that relative to other domains, domain D appears overly researched, whilst no research has been carried out on domains C and H from 2008 to 2015.Practical/managerial implications: The comparative S-as-P typology matrix allows researchers to accurately evaluate the need for current research within the chosen domain.Contribution/value-add: The comparative typology matrix should prevent, as is the case currently with domain D, that domains are over-researched, whilst others receive no research attention.
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