The new middle class in emerging markets: How values and demographics influence discretionary consumption

The rise of new middle‐class consumers in rapidly transforming emerging markets has attracted the attention of Western business executives. What they know about this growing segment of customers will determine whether they succeed or fail in these markets. The present study examines the factors that drive the discretionary consumption of this new middle class, including the effects of consumerist values, religious values, occupation, education levels, and ownership of fixed assets. The study draws its insights from data gathered from 391 new middle‐class consumers in Ankara, the second‐largest city in Turkey. The findings provide important implications for businesses, both indigenous and foreign. An overall implication is that managers ought to understand and qualify the new middle class in emerging markets not simply by their access to disposable income but by deeper attitudinal and behavioral characteristics.     

The influence mechanism of environmental anxiety on pro‐environmental behaviour: The role of self‐discrepancy

Environmental anxiety (EA) caused by environmental pollution has prompted consumers to change their behaviour towards greener, lower‐carbon and environmentally friendly. However, its boundary conditions and internal mechanisms are still unclear. With two experiments based on attentional control theory and self‐discrepancy theory, this study aimed to explore the influence mechanism of EA on PEB. In Experiment 1, it was found that environmental anxiety can directly and significantly affect Pro‐environmental behaviour intention (PEBI). In Experiment 2, it was found that at high levels of self‐discrepancy, EA can directly and significantly affect compensatory PEBI, and guilt can play a significant mediating role in the effect of EA on compensatory PEBI. However, EA does not significantly affect promotional PEBI. At low levels of self‐discrepancy, EA can directly and significantly affect promotional PEBI but cannot affect compensatory PEBI. Therefore, we concluded that the same PEB could have different psychological mechanisms in different contexts.     

The influence of eco-label knowledge and trust on pro-environmental consumer behaviour in an emerging market

Consumers are increasingly concerned about the negative environmental implications of purchasing goods, which in turn shape their behaviour. Yet, there are indications that consumers do not always act on these concerns, causing an attitude–behaviour gap. For consumers to make ecologically responsible purchases, they need relevant product environmental information. Therefore, marketers and firms are increasingly integrating more detailed environmental information in their offerings, including eco-labels with externally validated information. This study integrates consumers’ knowledge and trust in eco-labels with their environmental knowledge to determine how these affect pro-environmental consumer behaviour (PECB). The findings suggest environmental and eco-label knowledge is positively associated with attitudes towards the environment, and that positive environmental attitudes and trust in eco-labels affect PECB. This implies that firms, policy-makers and accreditation organisations (i.e. labelling) can educate consumers about eco-labels and the environment to increase PECB. Such strategies will also build consumer knowledge and trust in eco-labels, necessary for facilitating PECB.     

Exploring the relationship between consumer knowledge and purchase behaviour of value‐based labels

Despite an increasing market presence, little research has been conducted regarding consumer‐purchase behaviour of food products bearing ‘value‐based’ labels. Moreover, as the effectiveness of these labelling formats is dependent upon consumer's knowledge of their existence, this paper aims to explore the relationship between knowledge, openness to experience (i.e. validated personality trait related to intellectual capability) and purchase behaviour upon consumer behaviour in this context. Using structural equation modelling techniques, causal influences on purchases of fresh meat bearing ‘value‐based’ labels are identified and three multi‐attribute attitude models are proposed. The paper concludes that these labels are of value to consumers and that product knowledge plays a significant role in aiding purchase decisions. Consequently, marketing communication implications arising from the proposed multi‐attribute attitude models are discussed.     

Overcoming the psychological barriers to energy conservation behaviour: The influence of objective and subjective environmental knowledge

Energy conservation is a crucial aspect of responsible consumption which is the reflection of individual efforts for sustainability. However, especially young consumers are reluctant to reduce their energy consumption despite their pro‐environmental attitudes. Resistance to behavioural change can be attributed to various psychological barriers that help consumer to avoid engaging in pro‐environmental actions. In this context, the first aim of the study is to extend the theoretical and empirical evidence regarding impeding effects of psychological barriers on individual energy conservation behaviour. Secondly, the study investigates the alleviating role of environmental knowledge on those barriers that limit energy conservation. Proposed impeding effects of objective and subjective environmental knowledge on various denial mechanisms, which are in turn expected to hinder energy conservation, were tested using the survey data collected from young Turkish consumers. Results suggest that denial mechanisms hinder young consumers’ energy conservation behaviour indirectly through diminishing feelings of moral obligations. Moreover, it was found that objective environmental knowledge's effect can be used to break down the psychological barriers and to facilitate the change towards more sustainable energy consumption patterns. Implications of the findings and directions for future research are discussed.     

Gender differences in Egyptian consumers’ green purchase behaviour: the effects of environmental knowledge,concern and attitude

This study investigates the influence of three cognitive and attitudinal factors on gender differences in green purchase behaviour. Using a large sample size (n = 1093), a survey has been developed and administered across Egypt. The findings from the multivariate analysis of variance (MANOVA) confirm the influence of consumers’ ecological knowledge, concern and attitude on gender differences in green purchase behaviour. Consistent with previous studies, this study found that women appeared to be less aware of environmental issues compared with men. However, contrary to other studies conducted in the West, men showed more environmental concern and more positive outlook towards green purchase compared with women. The study discusses how the present findings may help policy makers and marketers alike to fine‐tune their environmental and marketing programmes.     

An empirical analysis and extension of internalization theory in emerging markets: The role of firm-specific assets and asset dispersion in the multinationality-performance relationship

This study examines the relationship between firm multinationality and financial performance with a focus on firm-specific assets and dispersion of these assets for MNCs from emerging markets. Drawing upon internalization theory, the authors reveal that while the financial performance of manufacturing MNCs depends on technological assets, service MNCs are more dependent on marketing assets to succeed in international markets. Study findings further emphasize the critical role of the industry context in emerging markets as the authors demonstrate that international asset dispersion weakens the effects of internationalization on financial performance more for MNCs in manufacturing industries than for MNCs in services.     

Added distance,entry mode choice,and the moderating effect of experience: The case of British MNEs in emerging markets

Distance has been viewed as a crucial determinant of the internationalization strategy of firms. Nonetheless, in recent years, there has been considerable debate with regards to, first, the type of distance considered most important when it comes to explaining the internationalization strategy of firms, and, second, how distance should be measured. In our study, we argue that a developed market multinational enterprise (DMNE)’s decision regarding the mode of entry into an emerging market (EM) will be affected by the geographic and administrative distance between the locations in which the MNE has previously held operations. Drawing our arguments on transaction costs economics (TCE) and Internalization Theory, we propose that, for low and high geographic and administrative distance, DMNEs will opt to enter EMs via a wholly owned subsidiary, while for moderate levels of distance via a joint venture. Furthermore, we argue that DMNEs’ previous international experience in EMs will have a positive effect on the suggested U‐shaped relationship, alleviating the negative effects associated with the coordination and knowledge dissipation costs incurred as a result of the level of distance. Our study contributes to existing literature both theoretically—notably via the examination of under‐researched facets of distance on entry mode choice—and also methodologically—through the adoption of a novel methodological approach in measuring distance. We test our hypotheses against a data set comprising 316 entries of FTSE 250 British MNEs in 39 EMs spanning the period 1971–2010.     

Exploring the nutrition and lifestyle knowledge,attitudes and behaviour of student home economics teachers: baseline findings from a 4‐year longitudinal study

It is widely acknowledged that obesity linked with reduced exercise contributes to health problems, and that, conversely, individuals who embark on weight reducing diets may become deficient in key nutrients. It is often advocated that these problems, which can be grouped together as poor dietary practice, be tackled through education. This study attempts to examine the relationship between nutrition education and lifestyle behaviours in a select group of third level students. The Irish Home Economics curriculum aims to teach secondary school pupils about nutrition and lifestyle practices conducive to health. However, the attitudes and lifestyle practices of those teaching this subject have never been examined in Ireland. The purpose of the present 4‐year longitudinal study, whose first year findings are presented here, is to investigate the nutrition and lifestyle knowledge, attitudes and behaviours of a cohort of Irish student home economics teachers over the 4 years of their Bachelor of Education (Home Economics) degree course. The study was designed to explore possible changes in knowledge, attitudes and practices over the course of their professional education. Nutritional knowledge was measured using a 220‐question adapted version of the test devised by Parmenter and Wardle. Attitudes were measured using a questionnaire adapted from the Pan‐EU Survey on Consumer Attitudes to Physical Activity, Body‐weight and Health. Food, alcohol consumption and exercise were measured using a 7‐day reported dietary/exercise diary. Nutrient intake data were determined using dietary analysis. Weight, height and waist circumference were measured and body mass index (BMI) calculated. When starting college, student home economics teachers have broadly similar anthropometric, dietary and lifestyle characteristics to those of their contemporaries. Mean BMI was identical [24.4 kg/m² (SD 4.3)] to that reported in the North/South Ireland Food Consumption Survey (NSIFCS) for those aged 18–35 years, although energy intakes were significantly higher in the cohort of student teachers (P = 0.000). Thirty‐eight per cent were overweight or obese vs. 33.6% in the NSIFCS. Only 17% (n = 6) of students achieved an intake of 300 µg/day of folate as recommended by the Food Safety Authority of Ireland and only one the recommended intake of non‐starch polysaccharides (18 g/day). One in three students in this study smoke (16 of 48) and alcohol consumption was high. Only one student was very active. Students scored a mean of 55% (SD 8%) on the knowledge test, with similar scores attained for specific aspects of nutritional knowledge (i.e. food groups, constituents of foods, current dietary advice, nutrients, lifestyle practices). However, knowledge of nutrition definitions was weaker with a mean score of 31% (SD 8.6%). Students had a positive attitude towards food choice, the link between food and health and control over their own diet. Similar attitudes towards exercise, smoking and alcohol consumption were displayed despite students perceiving themselves as not having a balanced diet, having insufficient exercise and having regretted something done as a result of consuming alcohol. They appear to display optimistic bias in relation to health risks. These findings provide baseline data for the longitudinal study and indicate that those choosing to pursue a career as a home economics teacher in Ireland have similar nutritional and lifestyle characteristics to those of their contemporaries.     

Mapping the impact of home‐ and host‐country institutions on human resource management in emerging market multinational companies: A conceptual framework

While there is a growing literature concerned with multinational companies from emerging markets (EMNCs), it does not contain a robust conception of how institutions shape human resource (HR) practices in such firms. We contribute to filling this gap through developing a framework of how institutions create a range of constraints and opportunities for EMNCs. Specifically, our framework contains three key elements of how MNCs from emerging markets interact with institutions: EMNCs develop approaches that to some extent reflect the perceived strengths and weaknesses of the institutions in the home country (institutional conditioning); the strategies of actors in EMNCs can overcome the weaknesses of the home country by drawing on institutions in other countries (institutional arbitrage); and the actions of EMNCs can reinforce, or create pressures for change in, the institutional context in the countries in which they operate (institutional change/consolidation). By mapping this set of strategies of EMNCs, we contribute to a fuller understanding of the relationship between institutions and HR practices, and we outline how the rise of EMNCs reshapes the global landscape by adding new kinds of firm behavior to capitalist diversity.     

Children and advergames: the role of product involvement,prior brand attitude,persuasion knowledge and game attitude in purchase intentions and changing attitudes

The central aim of this study is to build upon previous research by investigating the role of product involvement, prior brand attitude, persuasion knowledge and game attitude in the brand attitude changes and purchase intentions of children after playing an advergame. In all, 279 respondents between the ages of 10 and 12 years participated in the study. First, they were asked to complete a pre-test survey addressing product involvement and prior brand attitude towards several products and brands. Two weeks later, the respondents were asked to play an advergame and complete a survey addressing brand attitude, purchase intention, persuasion knowledge and attitude towards the game. Our analysis reveals that a positive attitude change is more likely when the game player has already evaluated the brand positively. Furthermore, game attitude is positively related to attitude changes towards the advertised brands, consistent with affect transfer theory. Counterintuitively, a higher level of persuasion knowledge is associated with a higher intention to buy the advertised product. Finally, children who had a more positive attitude towards the game were more likely to report higher purchase intentions, indicating that games which provide good experiences positively influence behavioural intentions. We conclude the paper by discussing the study's limitations and suggestions for future research.     

The impact of espoused national cultural values on innovative behaviour: an empirical study in the Chinese IT-enabled global service industry

In this article, we explore the different roles that knowledge sharing and exploitative learning play in employees’ innovative behaviour, and investigate the different moderating effects of employees’ espoused national cultural values on the relationship between exploitative learning and innovative behaviour in the Chinese IT-enabled global service firms with different ownerships. We propose a theoretical model to characterize these antecedents of innovative behaviour. A structured research survey was conducted and data were collected from a sample of 484 full-time employees in 3 IT-enabled global service firms in the PRC. Results indicate that knowledge sharing is positively associated with innovative behaviour in multinational corporations and private IT-enabled global service; espoused power distance has a significant positive moderating effect on exploitative learning–innovative behaviour relationship in state-owned and private firms; espoused collectivism has a significant moderating effect only in state-owned firms in China. Last, we explore the implications of our findings for theory and practice of innovation.     

Self-identity and internal environmental locus of control: Comparing their influences on green purchase intentions in high-context versus low-context cultures

This study empirically examines the combined effect of two crucial internal consumer predispositions, self-identity (SI) and internal environmental locus of control (INELOC), among consumers in a collectivistic culture and an individualistic culture. The study validated the extended theory of planned behaviour to predict consumers' green purchase intentions. Structural equation modelling was used to analyse primary data collected from 365 American and 408 Indian respondents. Analysis revealed differences between the two cultures. Green self-identity influenced attitude more than perceived behavioural control among American consumers, while the reverse was true for Indian consumers. Conversely, INELOC positively and significantly affected only Indian consumers’ perceived behavioural control, not that of American consumers.     

Effects of institutions on ecological attitudes and behaviour of consumers in a developing Asian country: the case of the Philippines

This study examines the effects of institutions emanating from the social environment on ecologically sustainable consumer behaviour in a developing country context. Drawing on the behavioural perspective model of consumer choice and institutional theory, this study argues that the regulative, normative and cognitive dimensions of the institutional environment play critical roles in shaping the pro‐environmental attitudes called eco‐attitudes of consumers. In turn, eco‐attitudes positively influence the eco‐behaviour of consumers. The structural equation modelling of data from a survey of 1045 consumers from the Philippines shows the significant and positive effects of the regulatory, normative and cognitive dimensions of the institutional environment on the eco‐attitudes of consumers, which in turn have strong positive influence on eco‐behaviour. The findings about the partial mediating role of eco‐attitudes offer a more nuanced explanation on how institutions explain the eco‐behaviour of consumers which is a topic that is less understood especially in a developing country context. The study highlights the theoretical, methodological, policy and future research implications of the findings.     

Profits and perils in the antiques and collectibles market: the influence of product knowledge structures on dealer exchange outcomes

The secondary market for antiques and collectibles represents a disorganized market channel characterized by competition for supply of rare goods and retail sales arising from non-traditional channels, loose ties among channel members, and largely unregulated transactions between buyers and sellers. This study explores how knowledge structures affect dealers' abilities to turn a profit in the antiques and collectibles market. Data were obtained from in-depth interviews with eight professional antiques and collectibles dealers operating in different regions of the United States. Findings indicate that while information is widespread, its credibility can be difficult to assess without some degree of product and market knowledge. Furthermore, the findings show knowledge plays a critical and somewhat differential role in the ability of professional dealers to turn a profit. Knowledge asymmetries that create favorable conditions for profits when dealers hold the balance of informational power in the upstream acquisition of antiques and collectibles ironically reduce dealers' ability to earn profits in downstream resale of these goods. Findings support a multidimensional view of knowledge as a broader concept, based on information and product and market expertise, but deepened by experiences that lead to tacit knowledge, which can be difficult to transmit.     

Antecedents of the propensity to learn management practices and their impacts on firm outcomes in emerging markets: A Bayesian Model Averaging approach

This article explores the factors that motivate firms to learn new management practices. The hypotheses are empirically tested using a representative sample of 3676 small, medium and large firms from four South Asian countries and across all main sectors of economic activity. Given that we know little about the antecedents of the propensity to learn management practices in emerging markets, the study employs Bayesian Model Averaging approach to overcome the potential issue of model uncertainty. The results reveal that market competition, resource allocation towards internal and external R&D, good quality mobile network coverage and the use of external certified financial auditors have all positive and significant effects on the propensity to learn management practices. The results also suggest that private intellectual property rights protection in the context of inefficient legal systems can deter firms from learning, perhaps in fear of legal ramifications. Finally, the study shows that firms with a higher propensity of learning management practices are more likely to become profitable while exhibiting higher levels of both potential and actual innovation.     

The contingent influence of organizational capabilities on proactive environmental strategy in the service sector: An analysis of North American and European ski resorts

Our study of 134 North American and European ski resorts examines the influence of externally focused organizational capabilities on the generation of proactive environmental strategies under contingent effects of uncertainty in the general business environment. We find that the capabilities of strategic proactivity and continuous innovation are associated with proactive environmental strategies. Managerial perceptions of uncertainty in the general business environment moderate the deployment of the capability of continuous innovation at all levels of uncertainty and stakeholder engagement at low and average levels of uncertainty. The study contributes to the resource‐based view (RBV) by illuminating an important contingency under which capabilities are likely to be deployed to generate a proactive corporate strategy. Copyright © 2007 ASAC. Published by John Wiley & Sons, Ltd.