Currency Substitution and Price Endings: Right Digit Effect

ABSTRACT

The strategic manipulation of prices. rightmost digits has been a tactic used by retailers in the western world for decades. By studying the internationalization of pricing tactics in a global economy, our research adds a much needed contribution to the literature of price endings and pricing tactics in global markets. We find that at lower price levels, consumers exposed to a 99 ending price in a currency substitution market are more likely to purchase the product compared to consumers in the US market. At higher price levels, on the other hand, consumers in either market situation exhibit no change in purchase intentions. Thus, the 99 ending tactic has no effect on consumers when the product is expensive. The use of the right digit effect by managers in a currency substitution/ dollarized economy as a way of persuading consumers to buy is still likely to be more successful compared to the USA market. As such, firms in a dollarized economy should structure their pricing strategies while taking into consideration the type of product they are offering and the consumer market they are dealing with.     

Technological Complexity and Country-of-Origin Effects on Binational Product Evaluation: Investigation in an Emerging Market

ABSTRACT

Research into the impact of the country of origin (COO) dimensions on product perceived quality in emerging markets is limited and does not distinguish between technologically complex/simple products. This paper investigates country-of-design (COD) and country-of-manufacture (COM) effects through their two subconstructs (global country image and the perceived capacity of the country to design/manufacture products), on the perceived quality of four products varying in their level of technological complexity. Findings indicate that consumers are more sensitive to COM than COD for complex and for simple products, and that COD only affects product quality for products carrying symbolic meaning. The findings have marketing implications for binational products entering emerging markets.     

A paradox of price–quality and market efficiency: a comparative study of the US and China markets

The price–quality schema rests on an assumption that price is credible information about product quality. However, the credibility of price information varies across different markets. In an inefficient market, consumers would believe in the price–quality relationship to a lesser extent because price information is less credible. Paradoxically, in such a market, sometimes consumers have to rely more on price to infer quality because other product information is less available. With a cross-national perspective, this study investigated the influences of market efficiency and consumer risk aversion on the price–quality schema between the China and the US markets. We found that due to the inefficient market environment, Chinese consumers possess a weaker price–quality schema than American consumers. Chinese consumers are more risk averse than their American counterparts. However, in China, risk-averse consumers are more likely to use price to infer product quality. Implications for global marketing are discussed, and directions for future research are suggested.     

Systemic small-player market exclusion in an east African context

ABSTRACT

Producer–consumers in Kenya and Uganda face challenges in meeting their subsistence goals. They face a paradoxical inclusion and exclusion from the contemporary market system that the solutions proposed in the agriculture development, subsistence markets and BOP perspectives cannot address because of faults in the pervasive marketing ecosystem perspective. In this article, we go beyond the traditional discussion of producer–consumers’ market access, to include upstream as well as downstream challenges. We introduce the concept of integration gaps to markets as a counterpoint to typical measures of market access. We show the integration gap is a systematic neocolonialist exclusion of producer–consumers that international aid agencies exhorting greater market engagement may worsen. We offer suggestions for improvement from a marketing ecosystem perspective.     

Retail Image as Seen through Consumers' Eyes: Studying International Retail Image through Consumer Photographs of Stores

Abstract

The aim of this article is to explore how retail store image is perceived by consumers from different cultural backgrounds and with different degrees of awareness and experience of the retailer. The subject is IKEA, a retailer recognized as having a global approach to the markets in which it operates, resulting in a highly standardized approach to store branding. However, rather than employing traditional methodologies to elicit consumer perceptions of store image, we attempt to capture consumer perceptions through interpretations of the visual images generated by the participants themselves. The photo-elicitation method employed captured the different interpretations and meanings attached to commonly identified elements of store image and reinforced the central role played by the store itself in retail image formation.     

Trust and the don't‐want‐to‐complain bias in peer‐to‐peer platform markets

This paper addresses peer‐to‐peer (P2P) digital platform markets, often associated with the “sharing economy” or the “collaborative economy”. Such digital platforms, facilitating new purchasing channels for consumers by matching P2P supply and demand, can be considered new market places challenging the conventional markets. How are P2P platform markets evaluated by the consumers? Based on a comprehensive survey‐data material, five different P2P service markets are considered by peer buyers and the results compared to consumers’ evaluations from similar conventional service markets according to trust, comparability and consumers’ satisfaction with the transactions. Comparability seems to be one advantage for the platform markets, while trust could become a problem. Conditions for trust in P2P platform markets is particularly interesting to study because contrary to conventional markets P2P transactions cannot rely on governmental laws, regulations and security net. This trust problem has been solved by a trust‐generating rate and review system. Our data material, however, distinguishes a mechanism that we have coined as the don't‐want‐to‐complain bias. More precisely, people do not like to complain, hence buyers of P2P services often hesitate to give negative ratings when they are discontent with a service or a supplier. Therefore, positive ratings become overestimated. If consumers recognize this bias, ratings and reviews will lose credibility and no longer be considered trustworthy. Eventually, this may threaten the well‐functioning of P2P markets.     

Consumers' Online Information Search for a New Restaurant for Dining-Out

ABSTRACT

By Nelson (1970)'s categorization, purchasing a service such as dining-out at a new restaurant is ‘experience-oriented’ in its nature, and its quality cannot be easily searched before the actual consumption. However, it has been suggested that the interactive nature of the Internet will improve market efficiency by creating a new channel of communication that allows the provision of information about experience attributes in a readily available format (e.g., other consumers' rating online). The paper empirically investigates this notion by exploring consumers' online information search behavior for a new restaurant for fine dining. The extent of usage of various online information sources and the perceived importance of each source are investigated in the United States and in Taiwan. Results show that information from other consumers is considered more important than information from sellers, but that US consumers favor non-Internet sources of information while Taiwanese consumers favor online sources.     

New Cultures,New Strategies,New Formats and New Relationships in European Retailing

Abstract

During the last fifteen years there has been a substantial restructuring of retailing in Europe. The implications of this reach beyond Europe. The restructuring involves not only competitive relationships amongst retailers but also involves new forms of relationships with suppliers. A new perspective of the role of retailing is emerging that places retailing in a global framework of international store operations, international sourcing of products, international flows of management and managerial know-how, and international awareness by consumers of the retailers who are becoming international brands. The aim of this paper is to place the restructuring in context, to consider the nature of it and to explore how the new global framework will begin to have effects for distribution industries in Asia.     

Exploring Consumers' Expectations of Sustainability in Mature and Emerging Markets

ABSTRACT

“Sustainability” has turned into a buzzword for businesses around the globe as consumers in mature and, increasingly, in emerging markets shift their demand toward sustainably enhanced products. Surprisingly, a global picture of consumers' expectations regarding sustainable products is still missing. This study uses exploratory factor analysis to determine the perceived importance and interrelation of selected sustainability aspects in three developed (Germany, Switzerland, United States) and three emerging (Brazil, China, India) markets. Results are linked to national cultural value theory to explore which sustainability aspects and positioning strategies may be promising to expand the outreach of sustainable products in developed and emerging markets alike. Results suggest that across the sampled economies, sustainability is increasingly considered as being comprised of a health aspect. While health and quality of life aspects emerged as key issues across countries, cultural backgrounds and local market conditions resulted in nuanced expectations of sustainability, which should be kept in mind in communicating and positioning sustainable products.     

Theory into practice: meditations on cultures of accountability and interdisciplinarity in marketing research

Abstract

The emergence of a more reflexive and discerning customer has created inter alia a demand for ‘better’ food (i.e. quality and ‘authenticity’) in terms of sourcing, processing, and specialist distribution/retailing. As a consequence, the food production/distribution industry is under pressure to change many of its practices. One manifestation is the emergence of farmers' markets and the associated emphasis on ‘local’ food. This paper aims to identify the extent to which ‘conscious’ consumers are committed to buying local foodstuffs and supporting local food producers, especially from farmers’ markets. Given the exploratory nature of this research, a qualitative approach was undertaken using in-depth interviews with ‘conscious’ consumers. The results reveal that ‘conscious’ consumers recognise their own limitations (i.e. time, convenience, and price) but also demonstrate that integrating ethical considerations into their consumption behaviour is a complex and flexible task. A number of strategic actions for farmers’ markets are proposed to help differentiate their provision, particularly in terms of capitalising on perceptions of authenticity and locality.     

Segmenting Markets Along Multiple Dimensions of Luxury Value: The Case of India

abstract

This is one of the first investigations of consumer motivations for purchasing luxury brands in India, a country with an emerging middle class. It identifies four dimensions of luxury benefits for segmenting markets. These include the financial, functional, personal, and social benefits of luxury value. Using data collected from 329 respondents in Mumbai the study identifies nine luxury factors for purchase behavior. These are used for classifying respondents into three behavioral segments using cluster analysis. The first segment appears to buy luxury goods primarily for their snob appeal, the second segment for their prestige appeal, and the third for their value appeal. The results show that while many consumers may buy the same luxury goods, their motivations for doing so differ. The findings should help marketers tailor their messages to specific luxury-seeking segments. There are many papers on luxury brands but very few are from emerging markets. The results may be of great use to global brands that are looking for expansion due to slowdown condition across globe.     

Characteristics of Internet Users and Their Privacy Concerns

Abstract

Concern about the privacy of online consumers is a global issue. Given the global nature of the Internet, companies planning and implementing e-commerce must understand the differences in privacy concerns of consumers in different cultures with different social/economic contexts to become effective in business. Motivated by this need, this study analyzes and compares the privacy concerns of online consumers in China and the United States, identifies major factors related to these concerns, and discusses the cultural/social/economic backgrounds of the related phenomena found in the study.     

Poverty as we never knew it: THE source of vulnerability for most of humankind

ABSTRACT

Most of humankind lives in poverty. Over 1.2 billion people survive on less than $1.25 per day, and around 2.7 billion people survive on less than $2.50 per day. Of course, these statistics do not take into account those living in relative poverty within the very highest development nations in the world. Yet few within entitled sectors of the global economy have had much to do with people living in poverty, except for occasional and indirect contact. Even basic ideas about poverty lack clarity; for example, what is the line between poor and not poor both within and among countries? Is it only about income or do other resources matter or act as substitutes for money when impoverished consumers engage their markets? Is poverty in the USA the same or different than poverty in Sub-Saharan Africa? Answers to such questions are provided in this commentary through an examination of three different research projects conducted in poverty communities. Together, they reveal distinct patterns of results between more affluent and more impoverished consumers across the globe.     

Sadness bright as glass: the acceptance of emotionally sensitive radical innovation

Abstract

The existing literature acknowledges the importance of emotions in consumer decision-making and the challenges of radical innovation adoption; however, the literature seldom combines these two streams. The purpose of this study was to analyse potential adopters’ considerations concerning an innovation that is targeted at intense negative emotions. Choosing a case-study strategy enabled us to focus on extremely negative emotions (related to death) and the acceptance of a radical innovation (a memorial stone made of glass). In this study, we applied a longitudinal mixed-methods approach. Data were collected via interviews with consumers (357 respondents), the entrepreneur and her employee. Findings show that an emotionally sensitive radical innovation evokes more intense emotions and emotional ambivalence among consumers. Its acceptance also seems to depend on the age and gender of the customers and requires cultural change. A lengthy adoption process seems to be characteristic of emotionally intensive innovation. This study has implications for managers facing the challenge of creating new markets for a radical innovation that involves extreme emotions on the part of consumers. Theoretically, the study contributes to both innovation adoption and consumer decision-making literature.     

Technology and Competition Economics

Abstract

Advances in technology are creating new business models. The internet means that consumers can access a wide variety of potential suppliers. Those suppliers may have extensive data on individual consumers, and the interactions between buyers and sellers may be moderated by large, potentially dominant, platforms such as Google and Facebook. Competition authorities and policy makers are grappling with the issues raised by technology. However, the tools available to regulators are often laws that were designed for a pre-internet world. It is not clear if these laws can adapt. This article briefly surveys three areas of particular concern for both economic researchers and competition authorities: the competitive implications of two-sided markets; price restrictions imposed by internet platforms on retailers; and the use of personalized data by sellers.     

Consumer Ethnocentrism and Country-of-Origin Effects in the Moroccan Market

ABSTRACT

Differences in consumer values exert a powerful impact on product acceptance. Morocco is no stranger to this phenomenon. While this country's consumers have easy access to world markets, consumer ethnocentrism can restrict choice. The objective of this research has been to investigate ethnocentric behavior of Moroccan consumers and the extent to which domestic products might be preferred to foreign products or vice versa. Data were collected via face-to-face interviews with 400 consumers in four major Moroccan cities. A questionnaire was developed for this purpose using a version of the Consumer Ethnocentrism Scale (CETSCALE). Opinions about four products were solicited. The four products were jeans, cars, shampoo, and juice. The interviewees were asked their opinions about product attributes and about various countries-of-origin. Their responses were analyzed also on the basis of their most essential demographic characteristics. Logistic regression models were developed to analyze the data.     

Antecedents of Belief in Global Citizenship: A Two-Country Empirical Investigation

ABSTRACT

This research contributes to the existing literature by investigating the antecedents of belief in global citizenship. Previous literature in global brand management has provided strong evidence of the importance of perceived quality and social prestige of global brands in influencing consumers’ evaluations of global brands. Accordingly, the authors’ model focuses on the perceived quality and social prestige of global brands as antecedents of consumers’ belief in global citizenship. In addition, they examine the direct and indirect effects of consumer ethnocentricity and cultural openness on consumers’ belief in global citizenship. They empirically examine this framework within a rich cross-cultural context using samples from the United States and India (developed and developing countries). The proposed model suggests that perceived quality and social prestige of global brands are mediators of the relationship between ethnocentricity and cultural openness and consumers’ belief in global citizenship. They followed Gerbing and Anderson's two-step approach to develop a measurement model with an acceptable fit to the data and then conducted a structural model to test the hypothesized relationships. The authors conducted χ² difference tests to examine the structure of their hypothesized relationships across the United States and India. The results support partial mediation for perceived quality and social prestige of global brands on the relationship between ethnocentricity and cultural openness and consumers’ belief in global citizenship. Furthermore, they demonstrate some interesting differences in the relationships in the model across the two samples.     

The Atkins Diet Phenomenon: How the Low Carbohydrate Lifestyle Has Revolutionized the Consumer Behavior of American Dieters

Abstract

Examined are the impact of the Atkins diet on the American diet conscious consumer and its impact on the market for consumer oriented diet foods, specifically foods low in carbohydrates and high in protein. Focusing on the fact that studies continue to show that as many as 25% of the American population is clinically obese, at least 100 pounds overweight, the recent obsession with low carbohydrate foods has created entirely new food related markets, markets for consumers products that are significantly different from the traditional food markets that have existed in the past. This paper will address the impact that the Atkins phenomenon has had on groceries, soft drinks, restaurant offerings, beer, fast food and supermarket products. It will show how these industries have been forced to modify their product lines to incorporate an ever escalating consumer demand for low carbohydrate products or risk being left behind in the expanding $42 billion food industry.     

Representing the political consumer: liquid agencies in the production of consumer voice

ABSTRACT

This paper explores the consumer role in marketplace transformation by examining how political consumers become produced in food retailing. It attends to situated representational practices in a Swedish consumer cooperative that seeks to strengthen consumer voice in markets. Combining notions of political and symbolic representations, the paper demonstrates the production of spokespersons for the cooperatives’ owners who, in turn, work to engage other consumers to voice and enact concerns in the cooperative. Four stages of representational practices are identified: (s)electing, equipping, engaging, and enacting. These practices are conceptualised as part of processes of agencing and concerning: (s)electing and equipping work to arrange consumer agencies, while engaging and enacting refer to ways of concerning others that put agencies into motion. Agencies are proposed as liquid in character and the capacity of consumers to shape markets comes into effect depending upon how agencies continuously become connected to each other.