Why are there cross-national differences in response to comparative advertising?: some mediators

This study conducted a lab experiment in the US and South Korea to test cross-national differences in response to comparative versus non-comparative Facebook advertising messages. Consistent with prior research, this study found that comparative ads resulted in more positive attitudinal responses among Americans, whereas non-comparative ads resulted in more positive attitudinal responses among Koreans. Results of multiple mediation tests showed that Americans showed more positive responses to a comparative ad message because the message was perceived to be more assertive than a non-comparative ad message, whereas Koreans showed more negative responses to a comparative ad message because the message was perceived to be less considerate than a comparative ad message. This study has important theoretical implications by testing multiple mediators for comparative ad effects; and also has practical implications for cultural adaptation marketing strategies.     

Chatbots in retailers’ customer communication: How to measure their acceptance?

Currently, online retailers evaluate whether chatbots—software programs that interact with users using natural languages—could improve their customers' satisfaction. In a retail context, chatbots allow humans to pose shopping-related questions and receive answers in natural language without waiting for a salesperson or using other automated communication forms. However, until now, it has been unclear which customers accept this new communication form and which factors determine their acceptance. In this paper, we contrast the well-known technology acceptance model (TAM) with the lesser known uses and gratifications (U&G) theory, applying both approaches to measure the acceptance of the text-based “Emma” chatbot by its target segment. “Emma” was developed for the prepurchase phase of online fashion retailing and integrated into Facebook Messenger by the major German online retailer Zalando. Data were collected from 205 German Millennial respondents in a usability study. The results show that both utilitarian factors such as “authenticity of conversation” and “perceived usefulness,” as well as hedonic factors such as “perceived enjoyment”, positively influence the acceptance of “Emma”. However, privacy concerns and the immaturity of the technology had a negative effect on usage intention and frequency. The predictive power of both models was similar, showing little deviation, but U&G gives alternative insights into the customers’ motivation to use “Emma” compared to the TAM.     

Are there demonstration-related spillovers from FDI?: Evidence from Switzerland

This paper examines whether there are signs of demonstration-related spillovers from foreign direct investment (FDI). It hypothesizes that the size and the extent of such benefits vary according to the level of the absorptive capacity of local firms. Using detailed firm data from Swiss manufacturing and services/construction, we find strong evidence for demonstration-related spillovers when (a) local firms are not far behind the technological frontier of the industry with a technological gap slightly greater than one, and (b) local firms demonstrate high investment in the absorptive capacity. The results are found to be more consistent in manufacturing than services/construction.     

Are there regional spillovers from FDI in the Swiss manufacturing industry?

This paper examines whether there are signs of regional spillovers from FDI, although evidence is still very scarce. It hypothesizes that (a) the assessment of regional spillovers relies on a detailed analysis of these effects, according to the channels by which they occur (namely, increasing competition, worker mobility, and demonstration effects); (b) the size and the extent of these effects depend on the interaction between their channels and the levels of existing technological capacity of local firms; and (c) spillover benefits tend to occur in regions where local firms largely invest in absorbing the best foreign knowledge. Using detailed firm-level manufacturing data from Switzerland, we have found that local firms gain from the presence of foreign firms in their region, but lose out if the firms are located elsewhere. Competition-related spillovers appear to be fully absorbed by local firms, with high technological capacities; worker-mobility-related spillovers are fully absorbed by low technology firms; while demonstration-related spillovers are absorbed by all groups of firms with mid technology firms experiencing the larger benefit. In addition, our results demonstrate that only local firms which have invested largely in the absorptive capacity benefit from spillovers, stemming mainly from technology transfer. This benefit seems to occur at both regional level and outside.     

COVID-19 and retail: The catalyst for e-commerce in Belgium?

Since the turn of the century especially small, local retailers struggle with the advent of e-commerce. It is hence no surprise that the retail sector is one of the hardest-hit sectors in the current pandemic. To understand the short- and longer-term impacts of COVID-19 on retail, we conducted two surveys to understand ongoing changes in the sector. By contrasting changing consumer behavior with the actions taken by local retailers, we assess whether the current pandemic is potentially a catalyst for e-commerce in Belgium. We do this based on a newly constructed framework of e-retail accessibility, as the differences between online and physical retail require a revision of the traditional economic geographical perspective on retail performance as introduced by Christaller (1933). We conclude that the COVID-19 pandemic holds ample opportunities for an increase in the three components of e-retail accessibility, but that a lack of professionalism might prevent traditional local retailers to retain a share of the expanded online market. This could well mean the final blow for local brick and mortar shops if, as is predicted, the share of online shopping in total retail expenditure remains high after the pandemic.     

Selling to the urban Chinese in East Asia: Do CSR and value orientation matter?

Most multinationals have a presence in the East Asian region and target the urban Chinese population. In an effort to win over the loyalty of consumers, Corporate Social Responsibility (CSR) has been used increasingly as a marketing strategy. This paper explores how personal values influence the attitude and behavior towards CSR among Chinese consumers. By collecting data from three major East Asian cities — Hong Kong, Shanghai and Singapore, and employing factor, cluster, conjoint and correspondence analyses, the authors demonstrate that Confucian value orientation can be a powerful antecedent of CSR support.     

Is there a negative relationship between the order-of-brand entry and market share?

The order-of-entry effect has been continually examined over the last quarter century, leading to the generalization that a negative relationship exists between the order-of-brand entry and market share. As the number of followers that become market share leaders and the conceptual arguments against this assumption grow, the nonexistence of this negative relationship has yet to be empirically demonstrated. This research challenges the generalization by examining market conditions in which a brand’s entry position has exerted a positive effect on its market share potential, compared with an earlier entry position. Using order-of-entry models consistent with extant literature, an empirical analysis of consumer scanner data across 375 followers reveals two situations that challenge the prediction of a negative relationship between the order-of-brand entry and market share.     

Ideally human-ish: How anthropomorphized do you have to be in shopper-facing retail technology?

As shopper-facing retail technology (SFRT) increasingly replaces human interactions in retail environments, many businesses are considering how to make their retail technology more human-like. This paper identifies two methods of anthropomorphizing technology—visual and cognitive—and seeks to determine whether using these two types of anthropomorphism with a product/service is a better approach to interacting with consumers or whether a combination of visual and cognitive anthropomorphic features is less effective than one. This paper proposes that including one form of anthropomorphism in an SFRT may increase purchase intentions, while the addition of a second form of anthropomorphism will not lend an additional advantage. Specifically, the theory of social response is used to examine the process through which consumers view anthropomorphized SFRT. Three studies assess the proposed model in a mobile shopping application context and include the use of a functional app and 360° video experiments. Theoretical and practical implications are discussed.     

Does reducing spatial differentiation increase product differentiation? Effects of zoning on retail entry and format variety

This paper investigates the impact of spatial zoning restrictions on retail market outcomes. We estimate a structural model of entry, location and format choice across a large number of markets in the presence of zoning restrictions. The paper contributes to the literature in three ways: First, the paper demonstrates that the omission of zoning restrictions in the extant literature on entry and location choice leads to biased estimates of the factors affecting market potential and competitive intensity. Second, the cross-market variations in zoning regulations helps us test and provide evidence for the theory that constraints on spatial differentiation will lead to greater product differentiation. Finally, we provide qualitative insight on how zoning impacts retail entry and format variety; in particular we evaluate the impact of prototypical zoning arrangements such as “centralized,” “neighborhood,” and “outskirt” zoning on entry and format variety.     

Barriers to Exporting: What are They and Who do They Matter to?

The international trade literatures on gravity modelling and firm‐level export behaviour have established that nontariff barriers are important impediments to international trade flows. In this paper, we provide fresh evidence on the actual barriers to exports firms face and how they vary with firm‐level characteristics. Our results indicate that the higher the export experience of firms the lower are the trade costs they face. These barriers are not related to other firm‐level characteristics, such as productivity and size, found by the literature to be associated with export market entry. Overall, these results suggest the existence of a process of learning to export whereby firms learn how to cope with export barriers through direct experience in export markets.     

Does retail type matter? Consumer responses to channel integration in omni-channel retailing

A critical issue faced by marketing practitioners today is orchestrating strategies that provide a smooth consumer experience in an omni-channel environment. The extant literature offers limited guidance on managing the consumer journey in an omni-channel environment across different retail types. Using the S–O-R framework as its basis, this study generates novel insights by examining how different types of retailers influence consumer perceptions of channel integration (CPCI) as well as consumer empowerment, trust, satisfaction, and patronage intention. Data from 736 consumers was collected using purposive sampling to target those who interact with retailers from high-end specialty stores, department stores, and hypermarkets. The data was then analysed using partial least squares structural equation modelling (PLS-SEM). We find that consumers from high-end specialty stores, hypermarkets, and department stores have different perceptions when patronising the omni-channel retail business. The implications of the study are discussed and suggestions for future research are presented.     

Does poverty lead to non-fatal unintentional injuries in rural Vietnam?

The aim of this study was to identify associations between poverty at the household level and unintentional injury morbidity. A cohort consisting of 24,874 person-time episodes, representing 24,776 people living in 5,801 households (classified into rich, middle income and poor by local authorities in 1999) was followed during 2000, in order to identify and assess non-fatal unintentional injuries. Incidence rate ratios were calculated using a Poisson regression model. The results showed that poverty was a risk factor for unintentional injuries generally. When looking at different types of injury, poverty was a risk for home, work and "other" injuries, protective for school injuries, while the risk of traffic injuries was not affected. The results also showed that communes in mountainous areas were at higher risk for home, work and other injuries. Overall, poverty was associated with unintentional injury morbidity. However, the relationship varied by sex, age and type of injury. Specifically, poverty increased the risk for children and elderly people being injured at home, and for adults (15-59 years) being affected by work injuries.     

Angels and non-angels: Are there differences?

The market for informal venture capital is an elusive and nearly invisible source of financing for entrepreneurial ventures. This market consists of a diverse set of high net worth individuals (business angels) who invest a portion of their assets in high-risk, high-return entrepreneurial ventures. The emerging consensus of the characteristics of the individual investor is that of a well-educated,middle-aged individual with considerable business experience and a substantial net worth. These informal investors appear to prefer investing in the early start-up stage of the venture and, if given a choice, prefer that their investments be located close to home. One consequence of this consensus is the tendency to assume that the traits of these business angels are as tightly clustered around the norm as are the traits of venture capital funds. They are not. In terms of their competence in the many areas of venture investing, these Individual investors range from the successful, cashed-out entrepreneur on the one hand to individuals with little or no experience with venture investing on the other. At the same time, little is known about the characteristics of high net worth individuals who never ventured where angels dare to tread, or about these non-angels' propensity to join the fold. Thus, this study seeks to fill the void by examining the characteristics of high net worth individuals regardless of their investment history or their interest in venture investing.An analysis of the data reveals three groups of high net worth Individuals: business angels with experience investing in entrepreneurial ventures, interested potential investors with no venture investment history but who express a desire to enter the venture investment market, and uninterested potential investors who under no circumstances would consider investing in entrepreneurial ventures as part of their investment strategy. Business angels and potential investors (both the interested and non-interested segment) share similar views about the economic significance of the entrepreneur and the difficulty in securing the equity capital for development of the venture. As the issues move from the general to the specific, divergence in investment attitudes takes place among the two groups, but this divergence is in terms of magnitude or intensity, rather than in contrasting or opposing views of the process. The potential investor tends to view investing in entrepreneurial ventures on a smaller scale than the active investor, especially in terms of the dollar amount committed to any one investment. While the business angel is more interested than the potential investor across all stages of financing, the interest for both groups increases as the type of financing progresses from the seed stage to expansion financing. In contrast, the potential investor is more likely to seek diversification as a motivation for venture investing than their angel counterparts.The potential investor pool is segmented into those potential investors who appear willing to take on the role of business angels and those individuals who have no desire to participate in the venture market. For the interested group to increase their interest in providing venture capital, these potential investors want assistance in monitoring the performance of the venture investment, followed by assistance in pricing and structuring. Both of these resources relate more to the technical aspects of venture investing and Indicate that these are the areas where the potential investor is least likely to have expertise. Other resources, such as finding and evaluating the investment opportunity, appear to represent less of a stimulus for the potential investor. In many respects, interested potential investors act like business angels across several dimensions. Both consider the later stages of the development of the venture as the preferred stage to invest. The business angel and interested potential investor prefer investments to be located relatively close to their primary residence and share similar views on the amount of the investment portfolio to allocate to venture investing. Where the interested potential investor and business angel clearly differ is on the scale of the commitment and the motivation for investing. The potential investor will commit a smaller dollar amount to any one venture, is more inclined to participate with other investors, and is more apt to see venture investing as a diversification strategy than is the seasoned business angel.     

How does FDI inflow affect productivity of domestic firms? The role of horizontal and vertical spillovers,absorptive capacity and competition

This paper examines the existence of externalities associated with foreign direct investment (FDI) in a host country by exploiting firm-level panel data covering the Polish corporate sector. We distinguish between horizontal spillovers (from foreign to domestic firms operating in the same industry) and two types of vertical spillovers: backward (from FDI in downstream industries) and forward spillovers (from FDI in upstream industries). The main findings are as follows. Local firms benefit from foreign presence in the same industry and in downstream industries. The absorptive capacity of domestic firms is highly relevant to the size of spillovers: vertical spillovers are larger for R&D-intensive firms, while firms investing in other (external) types of intangibles benefit more from horizontal spillovers. Competitive pressure facilitates backward spillovers, while market power increases the extent of forward spillovers. Horizontal spillovers are particularly strong in services, while the remaining results, including backward spillovers and the role of absorptive capacity and competition, are mainly driven by manufacturing. Host country equity participation in foreign firms is consistent with higher unconditional productivity spillovers to domestic firms. A number of robustness checks yield results qualitatively similar to those obtained in the baseline specification.     

Market entry into new export markets: When are firms more likely to imitate their competitors’ market presence?

We investigate the extent to which competitors’ presence in a given export market has an impact on a firm's decision to enter such a market and, more precisely, under what conditions imitation is more likely to take place. We show that firms with greater export knowledge are more likely to enter those countries where their competitors are already present. Furthermore, experiential knowledge seems necessary to absorb valuable information provided by the presence of competitors in those markets. Thus, imitation should not be regarded as the option best suited for firms with reduced expertize that follow blindly their competitors into new markets. Through a panel analysis of Brazilian exporters during the 2001–11 period, our study contributes to research on market entry decisions, especially stressing the critical role of prior relevant knowledge in facilitating imitation among players.     

Author and institution rankings in retail research: an analysis of the four retail journals from 1994–2008

The four retailing journals are reviewed over a 15 year period through 2008. Utilizing established methodology, the impact of scholars and institutions upon the retailing discipline is assessed using five measures. Over 1,800 articles were reviewed, coded for authorship and institutional affiliation and then analyzed based on several measures designed to control for quantity and quality of publication. Results by journal as well as overall are tabled by author and institutional appearance. Findings include a distinct division of European authors and institutions dominating the three European-based journals and North American authors dominating the American-based journal.     

Decomposing the effect of advertising: What happens in the retail channel?

The diverging interests of manufacturers and retailers famously give rise to the double marginalization problem but have consequences far beyond pricing. Advertising is another marketing instrument that is under the control of the manufacturer but its ultimate effect on consumer demand also depends on retailers’ pricing decisions. We decompose the effect of advertising in the channel and highlight an additional route through which advertising affects sales, namely via the changes in the retail price that a strategic retailer makes in response to changes in demand following manufacturer advertising. The total demand effect of advertising thus comprises the direct effects of advertising on market shares, and the indirect effects coming through adjustments that the retailer makes to the in-store prices of all the brands in a given product category in response to the shifted demand due to advertising. We match advertising data for four different categories (both food and non-food) to store-level scanner panel data, which also include information on wholesale prices. Controlling for wholesale prices, we establish in a reduced-form model that the retailer reacts to manufacturer advertising by changing retail prices instead of simply imposing a constant markup on the wholesale price. To further explore the role of the strategic response of the retailer in a systematic fashion and quantify the effects derived in the decomposition, we estimate a discrete-choice model of demand and determine the magnitude of the direct and indirect effects. We find that the indirect effect of advertising through retailer prices is about half the size of the direct effect, and thus substantively affects advertising effectiveness.     

Generation Y female and male decision-making styles in Iran: are they different?

In the early 2000s the Iranian government liberalized investment regulations and many foreign companies entered this high potential market where end-user consumers mainly comprise young people. Unfortunately, there are few studies of shopping behavior. This study compares Generation Y female and male consumer decision-making styles to offer guidelines to Iranian and overseas marketers. Sproles and Kendall's Consumer Styles Inventory (CSI) was adopted. The results show some differences between female and male decision-making styles, suggesting that gender affects shopping behavior. Identification of new traits suggests that CSI cannot be applied without considering socio-cultural factors.     

SMEs in Argentina: who are the exporters?

There exists a growing body of literature which looks at export decisions made by firms. Most studies focus on developed countries and do not explore whether different behavioral patterns prevail over the firm size distribution. This paper aims at filling this gap in the literature by analyzing the export behavior of a statistically representative sample of 192 small and medium-size enterprises (SMEs) in a developing country, Argentina, over the period 1996–1998. We find that the level of employment, sourcing from abroad, investment in product improvement, and average productivity are associated with higher probability of exporting. Training activities for employees are important to export outside of MERCOSUR.     

Firm exits as a determinant of new entry: Is there evidence of local creative destruction?

This study posits that a local process of creative destruction provides an impetus to regional industrial renewal. We argue that exits of older firms release resources that stimulate local entry. New entrants add value to these resources by redeploying them in more productive uses. We test our hypotheses with a unique longitudinal database encompassing the entry and exit of Canadian manufacturing enterprises. We find that exits of old firms increase entry and that on average new entrants are more productive. Persistent high local rates of exit, however, deter entry.