Strategy Development for Manufactured Exports of Third World Countries to Developed Countries

This paper addresses the problem of developing consumer patronage in high income markets for the autonomous manufactured exports of third world countries. Specifically, the focus is on overcoming consumer bias in high income markets against products of third world origin. Such bias exists; it has been established and tested in a twenty-year stream of research. This paper extends that research and, more importantly, for the first time sets the problem in a real world, managerial context. The research presents an illustrative, hypothetical case, somewhat simplified but realistic. A new Mexican microwave oven is introduced into the U.S. market and positioned against competing U.S. brands. A multifactored marketing strategy is built from several levels of three strategic factors: price, warranty, and endorsement. The findings are promising and establish the following: (1) the power of the different strategic elements against consumer bias varies significantly, (2) the power of different multifactored strategies varies significantly, and (3) some multifactored strategies prove effective in overcoming consumer bias establishing position against U.S. brands.     

Do Global Brands Use Similar Executional Styles Across Cultures? A Comparison of U.S. and Japanese Television Advertising

A major development in global marketing research is the evolution of global consumer culture theory and the notion that global consumer culture positioning (GCCP) strategies can be effective across markets. This study compares the content of a large sample of U.S. versus Japanese television advertising and looks at several executional variables (timing and counting variables) used in prior studies to explore whether global brands use more similar executions across the United States and Japan in comparison with local brands. Results indicate fewer differences for global brands on these dimensions. This pattern of results appears to be consistent with the notion that the use of GCCP strategies aimed at responding to the trend toward global consumer culture have taken hold and that for global brands it is more possible to standardize executions, in addition to strategy, than was the case in the past. However, results suggest that the amount of time that visuals are on screen is more difficult to standardize than other elements of the ad, and that ads for services show somewhat more similarities than ads for physical products. Theoretical and managerial implications are discussed.     

Branding in a global marketplace: The mediating effects of quality and self-identity brand signals

Research documents that consumers with a stronger belief in global citizenship through global brands (GCGB) view branded products as more important and prefer global to local brands. We test the mediating effects of consumer use of quality and self-identity brand signals on the relationships between GCGB and the importance attributed to branded products (Study 1: U.S. and Russia) as well as purchases of global brands (Study 2: U.S., U.K, and Russia). Our research establishes that consumer involvement with branded products and purchases of global brands revolves around consumers' use of brands as signals of quality and self-identity. In the developing country, results document mediation effects for the use of both quality and self-identity signals on the importance of branded products and global brand purchases. In developed countries, we find that the importance of branded products is explained by a greater use of brands as self-identity signals, whereas purchases of global brands are explained by a greater use of quality signals. Overall, consumers with a stronger belief in GCGB are more likely to use brands as symbolic signals and to express their identity through brands, and consumer use of global brands as quality signals provides a distinct competitive advantage to global brands in both developed and developing countries.     

A Korean,a Chinese,and an Indian walk into an American bar: Tapping the Asian-American goldmine

Historically, globalization has been synonymous with mega brands’ expansion into international markets. However, changes in the marketing landscape—namely, growth of immigrant consumers, new and emerging branding strategies, and advancements in technology—have created a shift in the globalization paradigm, opening opportunities for small brands. Focusing on the growing number of Asian-American consumers, the authors develop a two-stage global market entry strategy for small brands entering the U.S. market. Specifically, the authors show how Asian brands can penetrate the U.S. market by serving Asian-American consumers or using them as a launchpad to reach mainstream American consumers. The growth of small global brands signifies an important and exciting change in the branded marketplace currently dominated by Western brands.     

Iranian consumer animosity and U.S. products: A witch's brew or elixir?

This research investigates the animosity of more than 900 Iranian consumers toward the U.S. and their propensity to purchase U.S.-made products/brands in the context of a prolonged hostility between the two countries. Our results suggest that the antecedent demographic variables of education, age and foreign travel experience are inversely related to consumer animosity whereas women and students tend to hold greater consumer animosity feelings than men and non-students. Additionally we found a strong and significant inverse relationship between Iranian consumer animosity and intention to buy U.S.-made products, but no moderating effects based upon product importance or product necessity were uncovered in our consumer animosity model. The major managerial implications of our study are threefold: (1) MNCs are well advised not to ignore or underestimate the economic value of hostile markets; (2) within hostile markets, MNCs ought to be proactive and pursue alternative oversight strategies when constrained by national institutions; and (3) local and foreign competitors may exploit such animosity to better position their own products against the products of a country that is a target of consumers’ animosity.     

The Globalization of Furniture Industries/Markets

The globalization of industries and markets represents a key trend of the last decade. This evolutionary process, anticipated to become more prevalent in the future, requires long-term strategies whereby firms, industries and nations utilize competitive advantage to expand beyond domestic borders. In order to remain competitive, manufacturers of industrial and consumer goods must address the threats of both domestic and foreign origin and, increasingly utilize a global context for strategic planning, operations and marketing. Global communications and transportation technologies for electronic data interchange, materials resource planning, international finance, management and marketing have enhanced the ability of firms to operate internationally and offer true world brands. Furniture is an example of a product that naturally lends itself to internationalization in that if performs the same basic function across geographic areas and cultures such as seating, bedding, dining, storage and display. Moreover, the use of international furniture and woodworking machinery shows rapidly diffuses new technologies and designs through the global marketplace. Wood furniture represents a prime example of a U.S. industry that has felt the competitive pressures of market globalization. In 1978, imports claimed only 6.6% of the U.S. consumption of wood household furniture. By 1990, they had reached nearly 25% of consumption. The secondary wood manufacturing industries in the United States, including wooden furniture, have been largely insulated from foreign competition due to their established position within the domestic market, abundant and high quality materials with high consumer acceptance and appeal and certain transportation barriers as associated with relatively high volume to value items. However, as the international competitive arena changes, manufacturers, industries and nations must reevaluate their future strategies in terms of the forces shaping competition. This paper presents a framework based upon a multitude of factors affecting competitive advantage in the global context using a furniture industry example. These considerations may be categorized into six domains: (1)raw material supply; (2) production/technology; (3) design and marketing; (4) related/supplying industries; (5) home country demand; and (6) government influence on trade. Global strategic options are then briefly addressed as they pertain to the wood furniture industry. The synthesis of key strategic inputs combined with a global involvement strategy may provide insight not only to wood furniture, but to many other industries attempting to cope with similar changes as evolutionary momentum builds toward global markets, consumers and competition.     

Attractiveness,Purchase Intention,and Willingness to Pay More for Global Brands: Evidence from Turkish Market

Emerging markets (EMs) are increasingly becoming significant in income growth for Multinational corporations (MNCs). Therefore, what affects the consumer perceptions and behaviors toward global brands in EMs is a fundamental question to answer for MNCs. There is a remarkable literature on global brands in EMs however there is little evidence specifically upon bandwagon effects. This study aims to fulfil this gap and examines the effects of bandwagon consumption, conspicuous value and social value on consumer attitudes towards the global brands. In the study, data were collected via face-to-face questionnaire from a sample of 458 university students, and Structural Equation Modelling (SEM) was used to test the research hypotheses. As a result, it was found that bandwagon consumption, conspicuous value, and social value have positive impacts on brand attractiveness, purchase intention and willingness to pay more for global brands.     

The role of consumers' attitude towards economic climate in their reaction to ‘PL-only’ assortments: Evidence from the United States and Spain

Retailers’ assortment rationalisation strategies have found an “ally” in the current global economic crisis. Indeed, retail boycotts of individual brands in economic recession contexts are not uncommon in the CPG industry. In fact, many of the consumers who began buying PLs during the economic recession are continuing their PL behaviour post-recession. So, what is the role of the economic climate in consumers’ reaction– in terms of store loyalty – to retailers’ NB delisting decisions? Is it so relevant? This paper examines how consumers’ attitude towards the economic climate influences his/her reaction to retailers’ strategy of offering ‘PL-only’ assortments in the context of an economic slump (Spain) compared to a context of economic recovery (U.S.). To do so, we have designed a controlled online experiment for two large consumer panels in the Spanish and the U.S. markets. Our results suggest that consumers’ acceptance of ‘PL-only’ assortments is a separate phenomenon rather than merely being a “consequence” of the current economic situation. Nevertheless, in an economic recovery, such ‘PL-only’ assortments do not appear to be the best strategy.     

Exploring cosmetics advertising in southern China

China is now one of the largest and fastest-growing advertisement markets in the world. This research provides insights to assist advertising executives in their bid to target cosmetics consumers in Hong Kong and Shenzhen. Despite a tendency to retain certain traditional values, we find that Chinese women in these cities have increased their status and independence, and are inspired by western brands, music and images. We discover some significant differences between these markets, which suggest that some adaptations may be required in terms of advertising appeal, model selection and media focus, when designing advertising campaigns that will influence the consumer groups in these cities.     

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.     

中国品牌在Interbrand全球榜的地位及策略 ——基于其他国际权威品牌排行榜的对比

华为连续五年在Interbrand全球榜攀升,但在2019年下降;联想连续三年在Interbrand全球榜尾徘徊,在2018年落榜;其它中国品牌则从未进入该榜。迄今为止,中国品牌在Interbrand全球榜上的数量、名次、价值及其占比,与美国、德国、日本、法国品牌一直存在巨大差距。从2019年Brand Z、Brand Finance、World Brand Lab、Forbes等四种全球品牌排行榜来看,中国品牌展示的最大价值是1300多亿美元,最佳位次是第7名,在百强中实现的最多品牌数量为21个。同时,华为在Interbrand全球榜的品牌价值、位次,分别大幅度落后于四种全球榜中的三种。为扭转中国品牌在Interbrand全球榜的不利地位,中国品牌要向Interbrand全球榜的入选标准靠近,主动适应全球榜的规则。同时,中国实业界、理论界应当设法改善中国品牌在Interbrand全球榜的竞争环境。     

Global Brands: Taking Stock

Global brands have never quite delivered on their promise. This article focuses on why this may now be about to change. The author first addresses three basic issues: why global brands matter more now than in the past; what distinguishes them from national brands; and the main building blocks for a global brand. He then moves on to some of the key problems which face managers of international brands today: the new Euro-zone, instability in emerging markets, the problem of diversion, and management of global relationships with advertising agents and market researchers. He concludes with a discussion of the issues involved in deciding whether brands should be taken global.     

Cuba,the centrally planned cigar,and its rivals

Cuba has a long‐standing reputation for producing premium cigars. Despite the inefficiencies of central planning, Cuba continues to command a dominant global market share in this product outside the United States, whose trade embargo forbids Cuban imports. Cuba's main rivals in premium cigars include the Dominican Republic, Nicaragua and Honduras, which dominate the US market but have a smaller presence elsewhere. All premium cigar exporters face important global demographic and policy changes that will alter the competitive landscape. Public anti‐smoking measures have diminished cigar demand in Europe and other industrialised areas, reinforcing a market growth shift towards emerging markets, especially China. Cuba's strengths in branding, reputation and third‐world ties give it an advantage in developing the high end of these new markets. However, the rigidities of Cuba's economic system make it difficult to increase or adjust premium cigar output and exports in response to new market opportunities. Cost‐efficient competition from its Caribbean rivals allows them to respond to consumer preferences for new cigar blends and lower‐priced brands. The paper concludes by assessing the need for economic reforms and foreign investment in Cuban cigar production that will be necessary for it to maintain or improve its export performance.     

Integrated marketing communications in the Australian and New Zealand wine industry

Integrated marketing communications and the management of brands is a vital area for research in many industries. The global wine industry is facing significant changes including: retail concentration; proliferation of brands and labels; fragmenting consumer markets; and over-production. Improving the planning, implementation and integration of marketing communications activities is essential for the survival of brands and companies operating under these conditions. This research reports on findings into marketing communications integration in the context of the Australian and New Zealand wine industries. The research employs Duncan and Moriarty's (1997) abbreviated Integrated Marketing Audit to examine key communications issues and demonstrates that a higher level of integration is associated with better brand-related performance.     

A Cross-National Investigation on How Ethical Consumers Build Loyalty Toward Fair Trade Brands

Although Fair Trade has recently experienced rapid growth around the world, there is lack of consumer research that investigates what determines consumers’ loyalty toward Fair Trade brands. In this research, we investigate how ethical consumption values (ECV) and two mediating variables, Fair Trade product beliefs (FTPB) and Fair Trade corporate evaluation, (FTCE) determine Fair Trade brand loyalty (FTBL). On the basis of two empirical studies that use samples from the U.S. and Korea, we provide evidence demonstrating that the manner in which ECV influence FTBL differs in the U.S. and Korea. In the U.S., ECV determine FTBL only indirectly via FTPB, whereas in Korea they determine FTBL directly as well as indirectly via FTCE. We discuss theoretical and managerial implications of these findings.     

The fight between store brands and national brands—What's the score?

In the Western world market shares for store brands have increased across all product categories. The competitive position of store brands compared to national brands may depend on the product category and a retail chain's overall brand assortment strategy. In order to investigate these possible chain and category effects we have selected five chains with different store brand strategies and three product categories that differ with respect to the number of strong national brands in a category. The results we report focus on the competitive position of store brands compared to national brands from a consumer point of view. We find that store brands are in a weak competitive position compared to national brands independent of category and retail chain brand assortment strategy.     

Smuggling in emerging markets: Global implications

Economists and policymakers have lauded the adoption of liberal trade policies in many of the emerging markets. From the outside it may appear that governments in these countries have cemented a new set of rules governing economic behavior within their borders. Yet the authors have found that these countries are likely to see the emergence or resurgence of smuggling and contraband distribution in response to trade liberalization. In order to survive under trade liberalization, smugglers will rely on cost savings associated with the circumventing of legal import channels. In addition they may employ violence to bolster a diminished competitive advantage and may seek new illegal sources, both local and international, for the consumer products they distribute. In a market environment in which organized crime competes alongside more legitimate channels of distribution, U.S. multinationals will face new challenges relating to strategic planning, maintaining alliance relationships and corporate control of global brands and pricing.     

The expansion of modern trade food retailing in Thailand

With a population of nearly 70 million people, Thailand is a large and attractive emerging market, drawing investments from various foreign food retailers since the 1980s. An economic crash and currency devaluation in 1997 brought both new challenges and opportunities, and led to a renewed wave of expansion, but also calls for regulation, which had not been strictly enforced. Thailand has been host to transnational retailers from many countries, several of which ultimately withdrew. The competitive landscape has continued to evolve, with a range of new store formats, expanded services, smart phone applications and online shopping, and a push to expand both private label brands and ready-to-eat foods. However, some of these offerings appear to have potential conflicts in terms of Thai consumer behaviour. Thai culture places low importance on time; few shop online, and the majority of consumers have low incomes, and thus may not be attracted to visit modern trade retailers for the same reasons as customers in the retailers' home markets. Despite this, Thailand is currently the second largest global market for 7-Eleven and Tesco's number two international market. This presents a paradox in that Tesco operates hypermarkets, while 7-Elevens are convenience stores. Do Thais want hypermarket style volume discounts, or higher priced convenience, or both? Thais traditionally have shopped in wet markets and enjoy fresh foods, which contradicts attempts by many retailers striving to sell ready-to-eat foods. Many Thais are concerned about face and status, which may be a barrier towards buying private label brands. This paper describes the history and expansion of food retailing in Thailand and also highlights how cultural differences may affect consumer behaviour. As the ASEAN Economic Community (AEC) aims to open borders more broadly, there will likely be more expansion of stores and potentially more cultural differences. Whether transnational or domestic, food retailers may need to further consider aspects of culture and consumer behaviour to determine whether to adapt their strategies, rather than copy and paste formats from abroad.     

Prepurchase Determinants of Brand Avoidance: The Moderating Role of Country-of-Origin Familiarity

ABSTRACT

This report provides an overview of the concept of prepurchase brand avoidance, by identifying the motivating factors in a developing nation. Additionally, the authors aim to explain the negative effect of country-of-origin familiarity leading to brand avoidance. Relationships between constructs (undesired self, negative social influence, perceived animosity, and perceived risk) were hypothesized and data were collected via an online survey, where 286 respondents provided an evaluation for the brands they avoided. Hypotheses were tested using structural equation modeling via AMOS. To date, anti-consumption studies have taken place in developed countries where high agency and abundant choice enable brand avoidance to occur; the authors find that brand avoidance also exists in developing countries, and for all categories of brands, undesired self-congruence is the key determinant for prepurchase brand avoidance. The study did not use any particular product categories. Results need to be expanded and confirmed with other product categories in other emergent markets. Developing nations constitute the fastest growing markets in the world, and knowledge of the factors motivating brand avoidance in these contexts are a competitive advantage (e.g., undesired self is one important variable to focus on to make brands acceptable in such markets). This report provides new insights into consumer judgments of prepurchase brand avoidance in an emerging market.