Opening the OTC drug market: The effect of deregulation on retail pharmacy’s performance

Governments in many countries have deregulated the retail pharmacy market to offer easier and broader access to pharmacy services. Such deregulation has spurred the competition by allowing the entry of new drug distribution channels. Current research leverages the Pharmaceutical Affairs Law revision introduced in South Korea in November 2012. The policy change allowed 24-hour convenience stores to sell 13 first-aid drugs directly to patients. This research investigates the causal effect of new retailers’ entry on incumbent pharmacies’ financial performance in terms of pricing, revenue, and market exit. The findings, based on the panel data of 2,795 pharmacies in a 36-month period from 2011 to 2013, suggest deregulation posed a significant competitive threat to incumbent pharmacies, resulting in lower average prices for the deregulated drugs, significant drops in revenue and accelerated financial failures. A significant heterogeneity in the treatment effect is found across pharmacies. Pharmacies with less loyal customers and poorer financial performance suffered more after deregulation. Our findings suggest that although such deregulation is intended to enhance consumers’ access to health care, opening the OTC drug market to new retailers may hamper consumers’ access to pharmacy services because of the exit from the market of underperforming incumbents.     

Right messages for the right site: on‐line creative strategies by Japanese multinational corporations

The aim of this research was to compare the on‐line creative strategies of Japanese multinational corporations that are used at home and in foreign markets in the light of the standardization versus localization debate. Product‐based websites created by the same Japanese firms were examined in Japan, Spain and the USA using a cross‐cultural content analysis research framework. The findings show that Japanese multinational corporations are likely to localize their web communications through tailoring on‐line creative strategies according to the target market. Domestically, soft sell approaches are used more than hard sell approaches in Japan, whilst the relation reverses in the USA. Spain equally weighs both approaches. Cross‐culturally, while Japan tends to employ soft sell approaches more than the other countries, there is no significant difference across the three countries. On the other hand, the USA significantly differs from the others in terms of the usage of hard sell approaches. The dimension of creative executions in Spain seems more limited.     

Social distancing in retail: Influence of perceived retail crowding and self-efficacy on employees’ perceived risks

The global COVID-19 pandemic has compelled all countries to impose social distancing as the basic epidemic prevention strategy; however, enterprises find it difficult to follow social distancing. Enterprises should give precedence to the perceived feelings of employees and manage internally to control risks. This study explores the influence of perceived retail crowding and self-efficacy regarding the perceived risk of employees in the retail industry in terms of practical social distancing. Overall, 378 valid samples were investigated using actual employees in the retail industry, and partial least squares (PLS) method was used to test the hypotheses. This study found that perceived retail crowding has a positive impact on different risk levels, while self-efficacy has a direct negative significance. For the retail industry, knowledge of these risks and employees’ perceived attitudes can be used to suggest means to maintain the service capacity of sustainable operations in retail stores.     

Hedonic study on mobile telephony market in France: pricing–quality strategies

This paper provides a hedonic price analysis of mobile telephony services for the French market. We adopt the hedonic price theory to examine the relationship between changes in price levels and the evolution of the market for mobile telecommunications industry in France from June 1996 to December 2002. The results support the hypothesis that there was price competition between service providers in the earlier period. There were also large differences in prices set by individual service providers which, however, did not persist over time. Next, using estimates from hedonic-price equation for each operator separately, we found that the three-mobile providers seemed to adopt similar pricing strategies over the period 1996–2002. Quality indexes are also calculated. The results of a comparative analysis indicate that in the period 2000–2002 neither the quality nor the price indexes show significant changes for the three mobile providers. These results are of some consequence, especially after the French competition authority decision in December 2005 which stated the existence of collusion on the mobile market during the same period (2000–2002). Surprisingly, our primer results supporting the assumption of potential collusive conduct in France are not re-affirmed when comparing the French and German markets.     

‘Impression management’ in Chinese corporations: a study of chairperson's statements from the most and least profitable Chinese companies

The purpose of this study is to investigate whether ‘impression management’ exists in Chinese corporate annual reports. Despite flourishing in the Western context, the literature regarding impression management has not yet received any significant development pertinent to China and its cultural norms. The following question is raised: do the most profitable Chinese listed companies disclose information in their chairmen's statements in a way that is significantly different from those of least profitable companies? The results indicate impression management motives do underlie chairman's statements in the Chinese context in a number of ways, as we suggest in this contribution.     

A specialty store’s perspective on retail internationalization: a case study

Retail internationalization is an important trend for today’s retailers. However, the appropriateness of the strategy for all retailers has not been fully addressed. Most of the literature is based on experiences encountered after businesses have entered their new marketplaces. Very little information exists about strategic considerations occurring prior to international expansion. This study contributes to retail internationalization theory by partially validating a conceptual model of decision antecedents (Simpson and Thorpe, 1995). Data collected from an idiographic case study using a qualitative methodology support the conceptualization presented in the model, indicating that certain pre-conditions should exist in the retailer’s domestic environment, act as motives for considering a global expansion strategy, and drive the internationalization decision-making process forward.     

2007 IFCAIO:Focus on China Autos

Environmental protection,energy- efficiency and green manufac- turing,those heated topics in automobile industry nowadays exactly coincide with the 2007 theme of the In- ternational Forum on Chinese Automo- tive Industry Development(IFCAID). IFCAID was successfully held in 2005     

Impact of Shari’ah on Consumers’ Behavior Toward Sales Promotion Tools: Focus on Egyptian Convenience Products

This study measures to what extent compliance with Shari’ah moderates the relationship between different sales promotion tools—namely, price discount, product demonstration and sampling, buy one get one free (bonus pack), sweepstakes/lucky draws, scratch and win offers, and free samples—and three consumer behavioral responses (product trial, stockpiling, and spending more) for buying convenience products from supermarkets in Egypt. A total of 381 selected Muslim consumers/shoppers were surveyed via face-to-face interviews using a structured questionnaire. Overall correlation analysis between the six proposed sales promotion tools and consumers’ response behavior in general demonstrated a significant relationship. However, some specific tools did not indicate a significant relationship with specific response behaviors. Furthermore, correlation analysis initially indicated that there is a positive significant relationship between all sales promotion tools and compliance with Shari’ah, with the exception of sweepstakes and scratch and win offers, which demonstrated a significant negative relationship. Furthermore, after running linear stepwise regression, the model was fit (62%), indicating the moderating role of compliance with Shari’ah in the relationship between specific sales promotion tools—namely, sweepstakes/games and scratch and win offers—and Muslim consumers’ behavioral responses. Generally speaking, marketers should consider Shari’ah and ethical principles in Islam before creatively crafting promotional tools to attract Muslim consumers, and new tools could be developed with an Islamic orientation to attract Muslim consumers.     

Transnational corporations and spatial divisions of ‘service’ expertise as a competitive strategy: the example of 3M and Boeing

Production processes are becoming increasingly more complicated as firms develop corporate strategies that are designed to increase profitability or capture market share. The focus of this article is on manufacturing companies (3M and Boeing) and on understanding the social organisation of production and the ways in which firms manipulate spatial divisions of expertise (service inputs) as well as labour (manufacturing inputs). This distinction recognises that there are important differences between production and non-production tasks. The 3M case examines the firm's global labour market by exploring the geographies of its transnational or foreign service employees. The Boeing case examines the design and manufacture of the 787 and the development by Boeing of a new complex spatial division of expertise.     

Co-creation on a global scale: How customers impact firms’ internationalization strategies

The importance of customers in international strategy has largely been neglected or relegated to the simple and rather passive role of a buyer. In this article, we suggest a different approach and identify the potential impact of co-creation activities. We provide several examples of how customers are more actively involved in global value creation and thereby impact firms’ international posture.     

Understanding the ‘retail revolution’ in urban China: a survey of retail formats in Beijing

Retailing in Chinese cities has experienced rapid changes in the reform era. One of the most visible changes in the urban retail landscape has been the emergence and growth of new retail formats. Using Beijing as a case study, this paper examines the evolution of retail formats in Chinese cities. The paper investigates the impacts of the changing external environment, especially the shift in government policies, on the structure of retail formats. It argues that to understand the rapid restructuring of retail formats in Chinese cities one needs to take into account the factors such as political, economic and social-cultural environment, and perhaps more importantly, regulatory changes. The consequences and implications of observed retail changes are discussed.     

Partnerships that go places: How to successfully market products from vendor partners at retail stores from the vendors’ perspective

This study constructed a model using multiple attribute decision making (MADM) to evaluate the successful marketing of products from vendor partners at an on-campus training store. We used the 5Ps of marketing (people, product, price, promotion, and place) as the research framework and applied the fuzzy analytic hierarchy process (FAHP) to calculate the weight of each evaluation criterion. A gap analysis was performed on each evaluation criterion, using the modified VlseKriterijumska Optimizcija I Kaompromisno Resenje (modified VIKOR) to identify the important factors that students at an on-campus training store should prioritize for improvement when formulating marketing strategies from vendor partners. The results indicatae that when collaborating with the on-campus training store, vendor partners placed the greatest emphasis on promotion and the least on people. The results indicatae that when collaborating with the on-campus training store, vendor partners placed the greatest emphasis on promotion and the least on people. The evaluation dimensions were ranked according to their weights in descending order as follows: promotion(0.279), product(0.239), price(0.179), place(0.157), and people(0.143). Based on the overall weights of all evaluation criteria featured in present study, vendor partners placed the top five greatest emphasis on product quality and safety assurance(0.088), social media marketing(0.078), price promotion activities(0.071), product uniqueness(0.069), as well as brand advertising and promotion(0.066). The current research provides practical and appropriate strategies for planning successfully product marketing strategies from vendor partners, and further helping vendor partners increase product exposure and attract consumers to purchase their products at the on-campus training store. The findings may help vendor partners increase and improve product exposure and attract consumers to purchase their products.     

Navigating the ‘retail apocalypse’: A framework of consumer evaluations of the new retail landscape

Strong signals exist for a permanent restructuring of retailḍing, where traditional physical retailers may not fully recover. Such transformation will have vast implications for consumers, the industry, and society in general. This study explores U.S. consumers’ evaluations of these profound changes sometimes referred to as the ‘retail apocalypse.’ Two studies, a content analysis of reader comments in response to articles featuring reports on large-scale store closures, and structured online consumer interviews, provide insights into consumers’ perspectives. We include consumer-derived explanations for the decline in physical retail, and the growth of online shopping, as well as anticipated consequences for both, individual consumers and society in general, in a conceptual framework. We find many consumers lamenting the disappearance of physical retailers. Most expect negative consequences for themselves and society. However, many consumers also describe physical retailers as often unable to deliver on basic retail functions, and many are accepting of a future with very few physical stores. Based on these findings, we develop practical implications for the retail industry and public policy, as well as future research opportunities.     

Active labor market programs’ effects on entrepreneurship and unemployment

Many countries are turning to active labor market programs (ALMP) to increase individuals’ incentive to start a business and to reduce unemployment, but research on the effectiveness of such programs has produced mixed results and is still inconclusive at the macroeconomic level. This article examines the importance of ALMP targeted at entrepreneurship to explain cross-country differences in aggregate entrepreneurship rate. By using GEM data over the period 2002–2013 on OECD countries, our results show a positive impact of ALMP on the rate of necessity entrepreneurship but no significant effect on the rate of opportunity entrepreneurship. We further established that generous unemployment benefits reduce the positive outcome of ALMP on the aggregate rate of necessity entrepreneurship. Moreover, because most businesses started out of necessity do not create new jobs, we find that the economic spin-off of such programs in terms of unemployment reduction is very limited.     

Multi-sensory congruent cues in designing retail store atmosphere: Effects on shoppers’ emotions and purchase behavior

This paper explores the effects of multi-sensory congruent cues om shoppers’ emotions and purchase behavior in designing retail store atmosphere. Prior research suggests atmospheric stimuli to contribute to establish an appealing atmosphere and studies have confirmed that shoppers react to different stimuli. However, extant studies have not examined how multi-sensory congruent cues added to a visually dominant store atmosphere might impact shopper emotions and purchase behavior. The findings demonstrate a positive effect of multi-sensory congruent cues on shoppers’ emotions, through valence, and purchase behavior, through time spent and purchase. It is evident that shoppers perceive multi-sensory cues, such as auditory and olfactory ones, to be more effective in a dominant visual store atmosphere compared to only adding new visual stimuli. For retailers, a visually dominant store atmosphere should be designed more in the direction of a multi-sensory atmosphere in offering shoppers more appealing experiences of the retail setting.     

Liabilities of origin and its influence on firm's corporate social performance? A study of emerging market multinational corporations

This study draws upon the institutional-based view to examine how home country institutional voids affect the corporate social performance (CSP) of emerging market multinational corporations (EMNCs). We propose that home country institutional voids of EMNCs are positively related to CSP. We also argue that EMNCs' internationalization and visibility will further augment the above relationships. We tested our hypotheses using a sample of 89 EMNCs from 10 countries from 2009 to 2018 and found support for our arguments. Our findings show that EMNCs use CSP to overcome the liabilities of origin due to their home-country institutional voids. Internationalization and visibility increase the challenges of origin liabilities and EMNCs respond by enhancing their CSP. Our research adds to the existing knowledge base on institutional voids within the realm of international business.     

Transnational Governance of Workers’ Rights: Outlining a Research Agenda

In twentieth century Europe and the USA, industrial relations, labour, and workers’ rights issues have been handled through collective bargaining and industrial agreements between firms and unions, with varying degrees of government intervention from country to country. This industrial relations landscape is currently undergoing fundamental change with the emergence of transnational industrial relations systems that complement existing national industrial relations systems. Despite the significance of this ongoing change, existing research has only started to explore the implications of this change for how workers’ rights are governed around the globe. This paper addresses this gap by outlining an agenda for future research into the transnational governance of workers’ rights. Fulfilling such a research agenda would be both challenging, as it requires combining the so far divergent industrial relations and business ethics research streams, and rewarding, as it provides ample scope for promising future research.

Motives behind retailers’ post-entry expansion - Evidence from the Chinese luxury fashion market

This study aims to examine the motives behind retailers’ post-entry expansion in foreign markets. Through case studies of eleven participating luxury fashion retailers in China, qualitative data was collected from twenty-two executive interviews. Although their initial market entry was driven by both reactive (push) and proactive (pull) factors, the motives behind their post-entry expansion have become predominantly proactive, especially long-term growth strategies, the ambition to extend their brands and retail formats to more cities, and the experiences gained in entry markets. The desire to optimize the retail store portfolio through multiple channel strategies have slowed down the expansions of physical stores.     

The impact of retail out-of-stock options on preferences: The role of consumers’ desire for assimilation versus differentiation

This study tested the hypothesis that retail customers’ drive to assimilation or differentiation moderates the effect on their initial preference for a particular product of their discovery in the store of a previously unconsidered comparable alternative, which happens to be presently out of stock. The results revealed that new awareness of alternative options has an impact on customers’ preferences, even if they are unavailable when the choice is being made. Participants who were more concerned with differentiation exhibited a stronger preference for the option originally under consideration if they were told that the alternative was out of stock due to heavy demand rather than short supply. By comparison, those more concerned with assimilation had a weaker preference for the initial product when they learnt that its unavailability was said to be due to heavy demand, not supply shortfall. The article concludes with theoretical implications and areas for future research.     

Examining the role of store design on consumers’ cross-sectional perceptions of retail brand loyalty

This paper compares new and established store design prototypes of the same retailer to examine the role of consumers’ cross-sectional perceptions of retail brand loyalty. In-store surveys were administered to capture consumers’ store-level perceptions towards a new store prototype and an older established prototype of the same fast fashion retailer. The data was subjected to multi-group analyzes with structural equations modeling. The findings suggest that store novelty and complexity promote both store design pleasure and retail brand loyalty outcomes. The different store designs do not, however, account for differences in brand loyalty perceptions at the overall retailer level when multi-group comparisons of both store designs are made. Consumers of newer store designs are found to possess a heightened sensitivity to price perceptions. Managerial implications of the effects of store novelty and complexity on retail brand loyalty are also presented.