International Catalog Mix Adaptation

Abstract

Striking the right balance of adaptation of the international catalog mix may be the key to profitability. U.S. catalog firms, new to international markets, have less experience in adapting than firms in more globalized industries. The literature on international marketing strategy adaptation reveals that this decision depends on the environment, industry, market, product, and characteristics of the firm. This paper examines the influence of market similarity, type of business and the firm's international experience on international catalog adaptation, and explores the effects of catalog adaptation on a firm's performance. We hypothesize that the greater the market similarity, the less likely it is that firms will adjust their catalog. We also argue than adaptation is greater for consumer catalogs than for business-to-business catalogs. A third hypothesis is that more internationally experienced firms will adapt more and a final hypothesis is that a greater degree of adaptation will increase the international catalog performance. The results did not support the association of international catalog adjustment and market similarity, experience, and type of catalog. Findings are mixed both on catalog adaptations and firm performance. We found that some but not all adaptations in the catalog lead to improved performance. We speculate that U.S. catalog firms are making adaptations to reduce the costs of international marketing operations. This cost reduction strategy may not necessarily lead to profitability, thereby discouraging other firms from entering international markets.     

Psychic distance,marketing strategy and performance in export ventures of Brazilian firms

Compared to other issues examined in the exporting literature, less attention has been paid to the performance implications of following a standardisation or adaptation strategy. In addition, despite the interest in the psychic distance construct in the international marketing literature, there has been also little empirical research on the effect of managers' psychic distance on the international marketing strategies of the firm. To address these issues the present study offers an empirical investigation of the relationship among psychic distance, international marketing strategies, and export performance of Brazilian firms. A sample of senior managers of industrial firms in Brazil is used to test the hypotheses. The results reported here indicate that the degree of international marketing strategy adaptation is affected by the manager's psychic distance towards the foreign markets. Product and promotion adaptation were found to have a positive effect on export performance while surprisingly, distribution and price adaptation were found to influence export performance negatively. Contrary to expectations, the results also confirm that psychic distance has a positive effect on the export performance of the firm. Implications of these findings along with the limitations of the study are discussed.     

Standardization Versus Adaptation in Global Markets: Is Channel Strategy Different?

The argument over standardization versus adaptation of marketing strategy in international markets has raged for several decades. This argument has generally taken place at the aggregate level to include all four strategic areas of the marketing mix (product, price, promotion, and place) taken together. This article disaggregates the standardization-versus-adaptation argument by focusing on just one strategic area of the marketing mix—channel strategy. We argue that three underlying phenomena or forces in global markets (culturally distant distribution behavior, distributive institution rigidity, and international functional fragmentation) inhibit a firm's ability to standardize channel strategy in global markets to a greater degree than is the case for product, price, and promotional strategies.     

A Model of Interorganizational Networking Antecedents,Consequences and Business Performance

Purpose: This quantitative study intended to examine the communication interactions that develop within a business network among various actors (i.e., customers, providers, cooperators, etc.), together with their effects upon business networking and performance. To these ends, we developed a conceptual model of dyadic marketing-oriented and network-oriented communication exchanges (i.e., interorganizational antecedents), interorganizational networking consequences, and business performance. Specifically, interorganizational networking consequences were examined in terms of tactical and strategic cooperation, whereas business performance was examined in terms of adaptability, productivity and efficiency.

Methodology/approach: To set the hypotheses of the study we delved into the wide stream of marketing literature pertaining to interorganizational networks and business-to-business relationships, and specifically to the marketing orientation theory, the social network theory, and the IMP approach. These research hypotheses were tested using advanced statistical analysis and causal modeling. The research sample comprised 1,000 business-to-business international companies, which were mostly U.S., and European and were randomly selected from the yahoo.com business-to-business companies’ subdirectory. The data collection involved a two-wave e-mail survey, in which the quantitative research instrument was emailed to the respective marketing directors’ personal accounts. Totally 249 high ranking marketing executives responded, thus yielding a 24.9% response rate. The selected data were, then, subjected to rigorous advanced statistical analysis of structural equation modeling, using the AMOS21 statistical package, to test reliability and stability of selected measures and validity of the research model, as a whole.

Findings: Overall, the research findings provided sufficient evidence that the proposed model was robust. Moreover, the findings supported that communication exchanges that deploy within a wide array of participants (i.e., within a network of organizational members, customers, partners, and other interacting partners within a market), may have stronger explanatory powers upon a company’s networking effects and business performance, than communication exchanges that evolve merely at a dyadic company-customer level.

Originality/value/contribution: This research is original; that is, it deals with empirical, quantitative data and makes an attempt to combine marketing concepts mainly from 3 marketing streams studying the long-term business-to-business relationships. Our approach is based on existing marketing literature, suggesting that networks, apart from being embedded in previous relationships and interactions, they may also be based on more loosely coupling between organizations. Thus, we use the IMP approach to formulate the measures of our study; however, we don’t discriminate between strong and weak ties in relationship bonding. In this research we focus on specific communication behaviors that may nurture interorganizational networking and look for effects upon cooperation and business performance. The research findings imply that marketing executives would worthwhile expand their communication exchanges beyond their narrow customers’, or providers’ network, to the wider array of trustworthy business circle, as such a behavior may largely favor their companies’ adaptability to environmental changes, flourish innovation, and lead to synergies in efficiency and productivity gains.     

50 years of research on international standardization and adaptation—From a systematic literature analysis to a theoretical framework

When going and operating abroad, firms face the challenge of finding the optimal balance between standardizing and adapting their marketing strategies across national borders in order to be successful. In this contribution, we present the major results of a systematic literature analysis in the field of international marketing standardization/adaptation. Based on our findings, we introduce a theoretical framework combined with the concept of situation-strategy fit. This framework serves as a basis for providing theoretically grounded and empirically testable recommendations regarding performance-enhancing strategies of international product standardization/adaptation in given situations. We argue that a high degree of international product standardization is likely to enhance foreign product profit, as compared to all alternative strategies, if there is (1) a high cross-national homogeneity of demand, (2) a high potential for cross-national economies of scale, (3) a high cost of product modification, (4) a high foreign price elasticity of demand, (5) a small perceptual error of the managers, and (6) a high quality of strategy execution. By presenting the state-of-the-art knowledge in the field and by introducing a novel theoretical framework, our paper has important implications for both scholars and managers in the fields of international marketing and international business.     

Improving International Marketing Programs to Reflect Global Complexity and Risk: Curriculum Drivers and Constraints

This article looks at the curriculum redesign of a master's-level program in international marketing from a UK perspective. In order to ensure that the program would be more fit-for-purpose for future managers working under conditions of complexity, uncertainty, and within regimes often very different from the home market, the team began the curriculum redesign process with the view that international programs need to have a more broad and cross-disciplinary curriculum. Both drivers and constraints for the curriculum redesign are considered as well as the rationale for including a 30-week module on political and economic risk in the program.     

Cross-functional selling teams - The loss of control of the selling function

Selling has become dispersed through the use of selling teams that include members from functional areas other than marketing or sales. This now occurs within many firms utilising key account management strategies, within both business-to-business and business-to-reseller environments. This article is aimed at developing a better understanding of factors affecting ‘team selling’ and its impact on sales performance, with clear benefits to company management.     

Modeling customer value perceptions in cross-cultural business markets

Even as customer value research in business-to-business markets burgeons, scholars still circumscribe its progress to studies performed in domestic, Western markets and call attention to the ongoing lack of consensus for how to model customer value. To advance the validity and usefulness of this emerging core construct in marketing, this study investigates the measurement equivalence and modeling of customer value perceptions with business managers across five culturally-diverse countries. Analyses draw clarity to the divergent modeling of customer value in the literature by exploring alternative measures and model specifications within structural equations modeling (SEM) and partial least squares (PLS). Comparisons of eight models reveal several valid and invalid conceptualizations reported previously in the literature and generate guidance for managers and scholars modeling customer value in various research contexts.     

International entrepreneurial marketing strategies of MNCs: Bricolage as practiced by marketing managers

The extant research lacks information on entrepreneurial marketing in large international firms. This study explores the international entrepreneurial marketing strategies of multinational corporations (MNCs), and its results reveal that MNC marketing managers use bricolage to develop international entrepreneurial marketing. A novel finding of the study is that the international entrepreneurial marketing strategies of MNCs include co-innovation, accelerating customer value, and international expansion based on regional market leadership. Marketing managers use both parallel and selective bricolage in their international entrepreneurial marketing. Environmental uncertainty and entrepreneurship culture are important drivers of the implementation of bricolage to develop international entrepreneurial marketing. The research findings can inform MNC management of the options available to utilize corporate venturing to facilitate bricolage and in turn to realize international entrepreneurial marketing strategies.     

JBBM at 21 with a Tribute to David T. Wilson: Founding Editor of the Journal of Business-to-Business Marketing

ABSTRACT

Purpose: This article documents the contributions of David T. Wilson to the field of business-to-business marketing in general and his contributions as founding editor of the Journal of Business-to-Business Marketing (JBBM).

Methodology: In-depth interviews were conducted with David T. Wilson’s doctoral students to discuss the impact he had on their education in business-to-business marketing and in their personal lives. The list of dissertations, which Dr. Wilson chaired, co-chaired, or served on committee, was compiled through the cooperation of libraries at Texas A&M University and The Pennsylvania State University. This list was verified through ProQuest, a global information-content and technology company that provides solutions, applications, and products for libraries. Further, information in this article was derived from a literature review of David’s early JBBM editorials and scholarly articles, as well as those of the current sitting editor.

Findings: Results of this research demonstrate David T. Wilson’s long-term commitment to the field of business-to-business marketing over his 33-year career at The Pennsylvania State University. His influence is demonstrated through his research, teaching, and service related to business-to-business marketing.

Research implications: David T. Wilson’s vision for JBBM was to position it as a theoretical journal with an international editorial review board and a global impact, including handing the editorial reigns over to David Lichtenthal, the current sitting Editor since 1995 and Wilson’s 16^th doctoral student out of a career total of 38.

Practical implications: It is the responsibility of the editorial review board to understand the journal’s past to help guide the future. Therefore, understanding the contributions of David T. Wilson, as the founding editor, to JBBM and the field of business-to-business marketing is useful to scholars and managers alike. This understanding provides a valuable historical context.     

The Greening of International Marketing

In the instruction of an international marketing course, what should be taught or elaborated oa regarding the "green" movement? Is this an exclusively American idea that belongs in the discussion of domestic marketing current events? Should a student's sensitivity be raised concerning the environment on an international scale? Or should the topic of "green marketing" be taught as a ethical business issue? In this paper, we attempt to examine the "green marketing" issue and provide a foundation from which it may be addressed in the international domain.     

Sales driven company

Selling has become dispersed through the use of selling teams that include members from functional areas other than marketing or sales. This now occurs within many firms utilising key account management strategies, within both business-to-business and business-to-reseller environments. This article is aimed at developing a better understanding of factors affecting ‘team selling’ and its impact on sales performance, with clear benefits to company management.     

Translating strategy into action: The importance of an agile mindset and agile slack in international business

There is growing recognition that agility, the ability to respond quickly, is essential for international business (IB) in times of daunting challenges. Drawing on the resource-based view, we argue that agility is more than a capability and therefore should be investigated from a broader perspective. The current study offers insights for the IB literature by introducing agile resources (mindset and slack) as drivers of marketing strategy effectiveness capability. An agile mindset drives firms to seek out and introduce new management methods and approaches by encouraging their members to be alert to new and innovative ways of doing things. Agile slack refers to unutilized resources that can be quickly deployed in new strategic initiatives. An analysis of survey data from 179 managers via structural equation modeling shows that an agile mindset and agile slack strongly drive marketing strategy effectiveness capability. Marketing strategy effectiveness is a crucial driver of international performance. Nevertheless, the results suggest that while agile resources are important drivers of marketing strategy effectiveness, they do not influence performance directly. Hence, a firm’s ability to exploit resources through capabilities is critical, and to be truly agile, firms must invest in agile slack resources. Managers are advised to improve their firm’s effectiveness and performance by adopting an agile mindset while relying on agile slack resources.     

Country-of-origin effects and antecedents of industrial brand equity

Does the country-of-origin effect matter to industrial brand equity in international business-to-business (B2B) markets? The effect of a product's country-of-origin (COO) on both industrial buyers' and consumers' perceptions and evaluations has been one of the most widely studied phenomena in the fields of international business, marketing, and consumer behavior since the 1960s. Although many country-of-origin studies focus on consumer behavior in developed countries and acknowledge that the processes and stages of economic development by which consumers use COO information may differ in developing countries, the fact that there has been little research to investigate the effects of COO could explain the variations in international buyers' evaluations of industrial brand equity in the newly-industrialized economies, such as Taiwan. Taiwanese firms are now formidable global B2B market players by successfully transforming themselves from manufacturing mainly low-value and labor-intensive goods to producing many high value-added products that require advanced technology, equipment and significant business expertise. With the adoption of advanced technology and equipment, an important question is whether unique and innovative fastener products from Taiwan have generated the country-of-origin effects in international B2B buyers' minds. The main finding is that the country-of-origin of fasteners has not yet become an important antecedent of industrial brand equity in the case of the fastener industry in Taiwan.     

Relationship Value in Thai Business-to-Business Marketing

This study focuses on value in the business-to-business relationship among buyers and sellers. Relationship value has long been one of the key research areas in marketing for business to business. By examining from the perspective of the buyers, this research identifies how business buyers can use marketing benefits, product benefits, technical benefits, logistics benefits, financial benefits, risk-reduction benefits, information benefits, and strategic benefits to predict buyer–seller relationship. The study confirms significant relationships among marketing benefits, product benefits, and value in retailer–supplier relationship. The analysis from this study supports that benefit in a business-to-business relationship can be created if suppliers work on mutual benefits with customers. The results also confirm that Thai business customers will look for business partners who can provide risk reduction and marketing benefits for their business.     

Implications of perceived competitive advantages,adaptation of marketing tactics and export commitment on export performance

The aim of this exploratory paper is to fill an important gap in the international marketing literature by examining the influence of firm behavior in foreign markets (export commitment and adaptation of marketing tactics) on perceived competitive advantages and export performance. Using a sample of 150 Spanish export firms, the study found that firms that are more committed to their foreign markets are more willing to adapt elements of the marketing program. These firms also perform better in foreign markets. Moreover, the results also point out that adapting marketing tactics does not have direct effects on export performance, although it does have on the achievement of perceived competitive advantages in foreign markets, which positively influence export performance.     

Journal of Business-to-Business Marketing Part I: Subject Listing

The Journal of Business-to-Business Marketing (JBBM), an important thematic journal within the field of marketing, serves as a vital venue for both academicians and practitioners interested in business-to-business marketing phenomena. Articles cover a broad spectrum of topics related to business marketing management. A subject-based listing classifies these articles into sixteen categories according to their key research issues. Those categories are: Advertising and Communication, Brand Management, Buyer-Seller Dyad and Relationships, Channels, Customer Relationships, Education, International Issues, Literature Reviews, Methodology, Networks and Strategic Alliances, Organizational Buying Behavior, Pricing and Value, Product Development, Segmentation, Selling and Salesforce Management, and Technology. After the subject listing, titles and abstracts of all articles appearing in the first fifteen volumes of JBBM are listed in volume/issue order. We hope that this index will provide a useful tool for academicians and practitioners who are interested in business-to-business marketing research     

Key Account Management in information-intensive services

Key Account Management (KAM) is surprisingly little known marketing approach in retailing and consumer services context, however it has much to offer to companies in these industries. It provides an effective, practical and rather simple method for companies interested in increasing their profits by right customer and relationship management. Indeed, KAM is a business-to-business marketing approach, however most retailers and service companies can greatly benefit from it. A large number of retailers and service companies operate both in the consumer and business-to-business market. Few retailers or service providers have never invoiced another company. Moreover, most consumer goods and services are influenced by business-to-business services. The availability and quality of consumer goods and services often essentially depends on various business-to-business services in the earlier phases of marketing channels. Furthermore, by understanding the logic of KAM, retailers and consumer service providers can develop their own key supplier management. Information is one of the most important resources of goods and services in post-industrial economy. Information-intensive services are based on knowledge and refining of information. Increasing number of information-intensive services emerge both in the consumer and business-to-business market. This paper describes the nature of KAM and information-intensive services, and suggests a framework for KAM practices in information-intensive services.     

The 1939 New York World's Fair

Decades before the literature on marketing for non-profit organization emerged in Journal of Marketing, the New York World's Fair 1939 Corporation undertook the challenge to make the 1939 fair in New York City a truly “world's” fair. That nonprofit organization recognized, from its inception in October 1934, that only a customer-oriented marketing effort could transform a then ash-dump in Queens into a site where 60 nations and international organizations would ultimately construct memorable exhibits alongside showcases prepared by U.S. firms. While such a degree of foreign participation in a U.S. fair was unprecedented, success came largely because the nonprofit sponsors devised and executed a six-part international marketing strategy. This paper is a case study of how that nonprofit managed objectives, strategies, and tactics within an international marketing concept, with lessons still applicable for those managing such events in the 1990s.     

Social Influence and Contextual Utilization of Customer Relationship Management Technology in an International Field Sales Organization

Building from related interdisciplinary theories, this research identifies social influence–related variables that are linked to customer relationship management (CRM) technology utilization within an international business-to-business field sales force. Field sales employees (n = 147) in a multinational organization from Australia, Canada, New Zealand, the United Kingdom, and the United States were surveyed to test the research model. Four of 7 primary hypotheses were supported, predicting more than 65% of the variance in the research model. Effort expectancy, uncertainty avoidance, collective performance expectancy, and internal/organizational social influence all showed antecedent significance to contextual utilization of CRM technology. The results of this study suggest that group-oriented individual decision making and the related concept of institutional collectivism are equally as important as individual-oriented decision making in the international utilization of organizational technology. Based on the strong significance shown in the results of this study, it would also be wise to consider cultural value–derived uncertainty avoidance in practical development of training and implementation of multinational CRM systems.