Designing a Country Marketing Function:

Most governments of developing and industrialized countries are in the market for foreign direct investment. Indeed, in the case of developing countries, new entrants to this market are constantly emerging. This paper reports on a study that examines the generic structures governments have adopted in their efforts to promote their countries as sites for foreign direct investment. It pays special attention to the question of whether promotional functions do, or should, differ in structural form based upon the size of the country seeking to attract additional investment. The study concludes that, contrary to existing research, country size does have an impact on the type of generic promotional structure adopted. Larger countries tend to adopt decentralized or coordinated promotional structures, whereas smaller countries tend to rely on centralized promotional structures. Although centralized structures tend to be more efficient, larger countries are forced by regional pressures to include multiple organizations in their promotional activities. The study argues that given the type of investment likely to be attracted to larger countries, diffusion of the promotional function is an appropriate structural response. But, when this diffused function is coordinated countries are likely to gain the benefits of promotional efficiency while allowing for the involvement of regional entities.     

On the Marketing of Nations

Abstract

Deciding on how and where to begin a new regional expansion is a highly important and complex task for multinational companies. The importance and complexity stems from the fact that these decisions involve relatively high uncertainty (i.e., risk) and, at the same time, require an intensive multidimensional evaluation process. Many countries, however, particularly in emerging markets, work to encourage multinational companies to establish a base of operations there or to enlarge existing regional headquarters. Consequently, multinationals and countries have a common interest in identifying key elements in this multidimensional decision process and estimating the likelihood that a particular country will be more suitable to fill this task than others. In order to gain a deeper understanding as to the attractiveness of a host country for establishing a base of operation (BOO) of multinational corporations, we explore the perceptions of corporate managers of different Mediterranean countries. Our analysis highlights the different country characteristics that contribute to the difference in perceptions. In addition, we find specific attributes that contribute the most to these differences. We conclude with a discussion of actions that can be taken by a specific country to close, or expand, some perception gaps.     

Sales promotion practices of consumer goods companies in an advanced developing country

In recent years, manufacturers of consumer and industrial goods as well as service firms have been increasingly thinking in global terms and paying more attention to sales promotion in their overall promotional programmes and strategies. The purpose of this paper is to investigate the consumer sales promotion practices of consumer goods producing companies in the advanced developing country of Turkey. It was discovered that sales promotion activities are gaining importance in overall promotional practices of Turkish companies, though there are differences in its use by type of industry, size of company, area of business and locus of decision-making within the firm. Furthermore, differences were detected between companies using sales promotions versus other forms of promotional techniques such as mass media advertising, personal selling and publicity. Study findings may be applicable to other developing countries that are at a similar level of socio-economic, market and technological development as Turkey.     

The interplay of social influence and nature of fulfillment: Effects on consumer attitudes

Sales promotional activities account for a significant portion of the integrated marketing communications budget of most companies because brand managers realize the effectiveness of these activities in meeting certain marketing communication objectives. However, there are times when promotional plans backfire, and promotions go unfulfilled. Much of this is reported in the media, and these reports are likely to trigger discussions about the companies involved in the nonfulfillment. Although much research has focused on the impact of sales promotional activities on consumers' responses and attitudes, not much has focused on how nonfulfillment of promotional promises and social influence might operate to color consumers' perceptions of a company. This article reports on an experimental study that was conducted to investigate this issue. Results indicate significant effects of the nature of fulfillment on corporate credibility, brand attitude, and patronage intentions; significant social influence effects on brand attitude, patronage, and switching intentions; and an interaction effect of social influence and fulfillment on switching intentions. The implications for brand managers and marketing communications managers are discussed, and areas for future research are proposed. © 2004 Wiley Periodicals, Inc.     

Investigating the impact of intelligent personal assistants on the purchase intentions of Generation Z consumers: The moderating role of brand credibility

Consumers increasingly use intelligent personal assistants for shopping, given their advantages of being hands-free and voice-controlled, enabling individuals to multi-task during interactions, and identifying users through voice printing. Members of Generation Z (Gen Z), the world's most populous generation, who focus on experiences and innovation and are familiar with using the internet, are increasingly using smart technologies. However, the factors that influence Gen Z consumers' purchase intentions as they use intelligent personal assistants (IPAs) are unknown. Drawing on the computers are social actors (CASA) paradigm, this paper explores how the intelligent features of IPAs affect Gen Z consumers' purchase intentions and investigates the moderating effect of brand credibility. Using structural equation modeling on a sample of 428 Gen Z consumers who use IPAs, the results show that personalization and a conversational tone have significant positive effects on informational support and emotional support. Autonomy and responsiveness have significant positive effects on informational support. Informational support and emotional support have a positive impact on purchase intentions. Brand credibility positively moderates the relationships between informational support and purchase intentions and between emotional support and purchase intentions. This study deepens our understanding of the antecedents of purchase intentions that affect Gen Z's use of IPAs and provides practical guidance for the development of IPAs. In addition, the results could help companies develop strategies to improve brand credibility to increase the purchase intentions of Gen Z consumers.     

Promotional strategies on the World Wide Web

Business managers that use the Internet as a major component of their marketing communications strategy face great challenges. The popularity of the Internet with consumers and businesses drives thousands of firms to promote their products and services using World Wide Web (known hereinafter as the Web) sites. Technology has created a competitive arena that enables exposure to consumers worldwide, who can now easily communicate with each other. This potential for exposure has dramatic implications for any business considering the Internet as a promotional vehicle. The growing popularity of Internet sites, where users may discuss their feelings about companies and products, allows an increased scrutiny of all aspects of business. If companies do not deal effectively with this scrutiny, brand equity is vulnerable to erosion. Therefore, all contingencies inherent in promotional efforts on the Internet must be weighed carefully. Businesses which examine the ramifications of on-line exposure are better able to create and maintain a positive Internet presence which facilitates effective Web site promotion. Planning, implementation and control must be integrated into the on-line marketing communications of businesses, regardless of business size.     

The distinct contribution of investment promotion agencies’ branch offices in bringing Chinese multinationals to Europe

This study uncovers the distinct contribution of investment promotion agencies’ (IPAs) overseas branch offices in advancing and even creating foreign direct investment. It offers a novel categorisation of IPAs depending on location and headquarter/branch status, and conceptually connects the known functions of IPAs with the advantages set out by the OLI paradigm. Empirical examination of longitudinal data from 29 European IPAs finds that the activities of their branches in China instilled greater awareness and confidence in Chinese multinational enterprises about their ownership- and European location-specific advantages. This contribution of IPA branches is especially salient in emerging economies with newcomer investors.     

In the consumers’ eye: A mixed-method approach to understanding how VR-Content influences unbranded product quality perceptions

Virtual reality (VR) is an exciting technology that offers great promise as a novel promotional tool. The notion that promotional tools can signal brand quality to consumers is supported in the literature, but the impact for products when brand signals are not paramount is less understood. We use a mixed-method approach to explore how VR-content influences consumers' quality perceptions for products where branding is less relied upon. Findings from a qualitative study reveal that the perception of VR-content's innovativeness acts as a heuristic to signal product quality for unbranded property products. Results from two quasi-experimental studies reveal that while industry-perceived innovative VR-content may not signal consumers' product quality perceptions, consumers' perception of media innovativeness can signal product quality for the offering and increase purchase intentions. Theoretical and managerial implications are discussed.     

中国企业服务寻求型的海外直接投资——基于面板数据的实证研究

文章旨在研究中国企业海外直接投资活动的服务寻求动机,并对服务寻求型海外直接投资的影响因素进行分析。文章采用面板数据的实证方法,对2003-2009年中国企业对40个国家的OFDI数据进行检验。文章研究结论认为,中国企业OFDI具有服务寻求的目的,东道国生产者服务业的技术含量越高越能够吸引中国企业对其进行投资。并且,这种服务寻求型OFDI与生产者服务业FDI之间存在明显的替代关系。母国严格的投资管制使得服务业FDI受到限制,进而会促使企业以OFDI的方式获取东道国的服务投入。     

Comparison of promotional management in exporting to the Soviet Union and OECD countries

This study compares the promotional management problems Finnish firms have experienced in exporting to the Soviet Union and OECD countries. Within the context of a representative sample of 76 industrial companies, the study focuses on the perceived importance and use of promotional activities as well as on the major planning and implementation problems related to these activities. The results indicate that companies exporting to the OECD area should modify considerably their strategies when trying to enter the Soviet market. Promotional planning should be based on comprehensive knowledge of the characteristics of Soviet government bodies and communication patterns.     

Risk taking under transition: An empirical comparison between Chinese,western-, and eastern-German managers

Even after 10 years, countries under transition are still on their way to becoming developed, internationally competitive countries. At this stage it is helpful for business cooperation to know whether managers in countries undergoing transition are behaving like socialists or Western managers, or somewhere in between. Many joint ventures and other alliances between Western companies and companies in countries in transition are seeking to establish new markets with new products or new technologies (i.e., new processes). They are risky because the returns are uncertain. Understanding the risk attitudes of managers in countries in transition can explain different investment behavior and provide vital information for installing the right incentives. This study compares the risk attitudes of Chinese, eastern, and western German managers. Chinese managers' risk attitudes seem to be more similar to the attitudes of western German managers than to those of their counterparts in eastern Germany. Some of the reasons and consequences are discussed in this article. © 1999 John Wiley & Sons, Inc.     

The Emergence of Corporate Social Responsibility in Chile: The Importance of Authenticity and Social Networks

Little is known about how and why corporate social responsibility (CSR) emerged in lesser developed countries. In order to address this knowledge gap, we used Chile as a test case and conducted a series of in-depth interviews with leaders of CSR initiatives. We also did an Internet and literature search to help provide support for the findings that emerged from our data. We discovered that while there are similarities in the drivers of CSR in developed countries, there are distinct differences as well. In particular, we found that different sectors drive CSR in Chile. In contrast to other geographies where consumer demand and government regulation provided the impetus for CSR efforts, multinational companies (MNCs) and non-governmental organizations (NGOs) are key actors in Chile. MNCs imported their CSR beliefs, skills, and processes into Chile. Their efforts resulted in a virtuous cycle. Once large domestic firms felt pressured by their MNC rivals, they too adopted CSR initiatives. The ability to manage relationships with multiple stakeholders and perceptions of authenticity were also critical to the success of CSR in Chile. Using network theory as a lens, we suggest that network density and centrality largely determine whether CSR efforts will be authentic. Based on these contentions, we suggest avenues for future research.     

Exploring the Relationship Between Export Intensity and Exporter Characteristics,Resources, and Capabilities: Evidence From Chile

This study focuses on exporters in Chile in order to compare the characteristics, resources, and capabilities for export success (RACFES) possessed by high, medium, and low intensity exporters. Data for this study were collected throughan Internet survey of Chilean manufacturers that export. Of the 480 companies in the sample, 133 responded to the questionnaire consisting of 69 items, yielding a total response rate of 28%. The analysis of variance procedure was used to analyze linear items and the chi square procedure was used for nonlinear items. The results indicated that export intensity in Chile is very strongly associated with firms that are smaller in size, have had export operations for longer periods of time, are highly involved in foreign markets, and are vertically integrated with their international target markets. These firms have also been very successful in overcoming export barriers. They make greater use of promotional strategies to expand their export markets and use sales agents as a means for reducing distribution costs. These firms are more likely to have vertically integrated their Chilean operation with their international target markets and to have created working international networks. The major limitation of this research is that it was carried out in only one South American country, with a rather limited sample size. A practical implication of this study is that companies in small countries, endowed with comparative advantages based on natural resources, can successfully penetrate export markets by imitating Chile's thriving export companies. Export penetration factors for small, resource-based countries like Chile are not very different from those for large developed countries.     

Relationship between portfolio diversification and value at risk: Empirical evidence

This research explores the risk associated with the stocks prices in the seventeen selected companies that are listed in Indian BSE (100) National as well as portfolios of investment that are constructed from these seventeen companies employed. Additionally, for considering the possibility of international diversification, construction of portfolios of investment form stock price indexes in various emerging markets and developed countries of the world is considered. Correlations for domestically as well as internationally diversified portfolios are computed to unveil the relationship between stock prices of various firms as well as domestic and internationally diversified portfolios of investments. Further, to understand the effect of diversification on the risk associated with each of the portfolios of investments employed, value at risk analysis (VaR) is undertaken for studying the benefits associated with domestic as well as international diversification (if any).The study results show that domestic diversification lowers the expected losses associated with each of the domestic portfolios of investment employed where the international diversification substantially mitigates the portfolio risks. Results from VaR analysis reveal that diversification lowers the portfolio risks and additional reduction in portfolio risks is realized by international diversification.     

Outward foreign direct investment and green innovation in Chinese multinational companies

This paper investigates the reverse green innovation spillovers of outward foreign direct investment (OFDI) in Chinese multinational companies and how environmental regulation stringency in host countries moderates the relationship between OFDI and green innovation. The empirical analysis is based on an integrated dataset of publicly listed firms from 2008 to 2018. The findings demonstrate a significantly positive relationship between OFDI and the green innovation performance of multinational companies. It is also shown that environmental regulation stringency in host countries positively moderates the relationship between OFDI and green innovation. Further analysis reveals the variation of the findings across multinational companies in host countries at different development stages, with different ownership and in industries with different pollution intensities. The observations in this paper imply that the institutional environment of investment destinations matters for reverse technology spillovers, particularly reverse green technology spillovers from OFDI.     

Customer Service as a Strategic Weapon in International Operations

Customer service is an important competitive weapon in international markets becuase of its ability to acquire and retain overseas customers (especially intermediate firms) and, thus, enhance companies' revenues. Customer service is especially critical when foreign vendors are perceived as offering similar products at comparable prices, and purchasers have doubts about suppliers' willingness to carry out various post-purchase responsibilities. This paper reports the results of a study of the customer service programs of 151 U.S. non-service companies with international operations in five or more foreign countries. Sixty-nine firms responded to their customer service efforts in international markets and 81 addressed domestic customer service programs, allowing for comparisons to be made between international and domestic customer service operations. The study's results indicate that copmanies realize the importance of customer service in marketing to international customers, yet customer service for international markets is not considered to be appreciable more important than it is for domestic ones. Much similarity in perceptions about international and domestic customer service programs being in place. Whether this similarity occur from a careful analysis of domestic and international markets or simple expediency is uncertain.     

Incentives and Disincentives of Corporate Environmental Disclosure: Evidence from Listed Companies in China and Malaysia

Previous studies on motivations for corporate environmental disclosure (CED) in emerging countries are generally undertheorized and have neglected to investigate disincentives. This study addresses this gap using legitimacy theory to determine whether differences exist between Chinese and Malaysian managers in relation to incentives and disincentives for CED. Our findings reveal that differences exist suggesting that legitimization strategies, if employed, vary and perceptions of legitimacy threat differ between countries. The study also reports that the dominating incentive for managers in both countries is to appear reputable; implying a strategic CED approach is undertaken in an attempt to alter public perceptions about the legitimacy of an organization. Interestingly, the incentive of regulatory pressure was found insignificant in both countries in persuading companies to engage in CED. Finally, potential damage to a company's reputation received considerable support from all respondents revealing a degree of uncertainty about CED. Overall, the study contributes to the literature on CED practices in emerging economies and points to some policy suggestions. © 2015 Wiley Periodicals, Inc.     

Fostering Corporate Social Responsibility Through Public Initiative: From the EU to the Spanish Case

Should CSR be approached only on a voluntary basis or should it be complemented with a compulsory regulatory framework? What type of government intervention is more effective in fostering CSR among companies? This paper is an attempt to answer these questions, reviewing the debate between proponents of the voluntary case and the obligatory case for CSR, and critically analysing current international government-led initiatives to foster CSR among companies, and national government-led initiatives in the EU area. Finally, the paper focuses on the Spanish case, as an example of the failure of an exclusively voluntary approach. Despite the rapid uprise of CSR, Spain is still far behind late in CSR promotion strategies. Most action has been undertaken by companies themselves with no common guidelines, governmental support, or independent verification. The lack of a regulatory framework for CSR or ethical investment issues and the virtual absence of other indirect incentives, explains the misbalance between private, public and Third Sector initiatives. Based on the Spanish context which is quite similar to other non-OECD countries, the authors call for a more proactive government position in CSR related issues. The conclusions of the paper detail the features of this regulatory framework and other policies to promote CSR in Spain as well as in other OECD countries.     

The impact of banks and non-bank financial institutions on economic growth

Empirical studies examining the relationship between financial sector development and economic growth without including non-bank financial institutions (NBFIs) will likely generate biased empirical results. This study provides evidence that NBFIs can have a statistically significant negative impact on economic growth using cross-country data for both emerging and advanced countries. This finding suggests that these non-bank institutions, often loosely regulated, may introduce an excessive level of risk into the financial sector and the general economy. It is consistent with the current global financial crises where NBFIs, such as investment banks and insurance companies, introduced an excessive level of risk into the global economy. Hence, policy-makers may need to consider more timely and effective regulation of NBFIs and insure that adequate transparency and disclosure is provided to all financial markets participants.     

Reactance:

Frequently, public sector marketers seek to persuade individuals to engage or not engage in certain forms of behavior. However, research examining reactance suggests that certain choice-restricting messages that are conveyed in public sector promotional campaigns may actually result in promoting more of an undesired behavior or less of a desired behavior. Thus, an understanding of factors associated with reactance arousal may be critical to the overall success of promotional efforts undertaken by public sector marketers. In this paper, these factors are reviewed, and implications of reactance theory for designing promotional campaigns of non-profit and public sector organizations are discussed.