The Transitioning of Marketing Practices from Segment to Customer-Centric Marketing in the African Business Context: Toward a Theoretical Research Framework

ABSTRACT

Although marketing has long been posited to be shifting from segment marketing to customer-centric marketing, there is little theoretical insight into the status of such transformation, especially in emerging African economies. Therefore, this paper develops an integrated theoretical framework for assessing (a) the extent to which firms in African economies use the segment marketing mix (4Ps) versus the customer-centric marketing mix (4As) as well as (b) their antecedents and performance outcomes. Propositions drawn from qualitative data and theoretical tenets in strategic management and in institutional theory are offered to guide systematic empirical research.     

Sustainable market orientation: a competitive strategic tool in an emerging economy context

The purpose of this research is to test the effect of sustainable market orientation (SMO) as a strategic tool on banks’ sustainable balanced firm performance (SBFP) in an emerging economy. The research data was collected via the survey approach through self-administered questionnaires to 445 bank employees. Exploratory Factor Analysis was employed to establish the dimensionality of the research constructs, whereas multiple linear regressions were utilised to test the research hypotheses. Results suggest that SMO is positively and significantly related to sustainable balanced performance of banks. The study confirms the SMO concept promulgated in prior studies. Employees’ opinions on bank Managers incorporating sustainability management variables into market orientation as a strategy are encouraged by scholars to engender SBFP. Strategic approaches of this kind leads to balance performance of organisations and the larger society which is central to all stakeholders. This study may be the initial quantitative investigation into SMO and SBFP in the strategic marketing literature.     

Habitus,doxa, and ethics: insights from advertising in emerging markets in the Middle East and North Africa

The advertising industry influences culture through its pervasive messages that reflect and shape culture and through the role that advertising practitioners play as cultural intermediaries. As such, the manner in which advertising practitioners confront ethical issues is important. Drawing on Bourdieu's theory of practice, this paper examines how the perceptions, practices, and discourses of advertising practitioners in the Middle East and North Africa influence the advertising field's habitus and doxa. It demonstrates that understanding ethical problems is enhanced by examining them as macro, meso, and micro phenomena. However, that is not enough. Understanding how factors at the three levels interrelate, interact, and reinforce one another is critical to understanding the habitus. Underlying biases that shape the doxa can be explained by ideas central to behavioral ethics. A better understanding of the forces that shape the habitus and doxa with respect to ethics is key to moving toward a culture that encourages ethical advertising practices.     

A componovation perspective of innovation in emerging markets: Evidence from Indian organizations

In todays market landscape firms can effectively compete without the benefit of resource advantages, proprietary technology, or market power but by being more aligned towards creative combination and responsive innovation. This study approaches the concept of componovation from the composition based view (CBV) developed by Luo and Child. The CBV emphasizes how firms with ordinary resource endowments can achieve outstanding results through the creative use of open resources and unique integrating capabilities that result in an enhanced speed and a value‐price ratio that are well suited to large numbers of mass market consumers. Thus componovation is a new approach aimed at innovation in emerging markets.     

Global impact of loss of confidence in Asian emerging markets

With the interest rate hike in the US and, more recently, in the UK, sudden stops in investments and capital reversals are apparent in the Asian emerging economies. A modelling approach is taken, using the G-Cubed model, to simulate the potential global economic impacts, with a focus on Asia. The results demonstrate that myopic fiscal interventions in Asian emerging economies could result in short-term stimulus, at the expense of long-term growth. The stimulus in advanced economies too would be short-lived, diverting the benefits to unintended fractions in the global economy. Advanced economies that minimally change their trade and investment patterns tend to avoid distortionary impacts of the crisis.     

Mapping the impact of home‐ and host‐country institutions on human resource management in emerging market multinational companies: A conceptual framework

While there is a growing literature concerned with multinational companies from emerging markets (EMNCs), it does not contain a robust conception of how institutions shape human resource (HR) practices in such firms. We contribute to filling this gap through developing a framework of how institutions create a range of constraints and opportunities for EMNCs. Specifically, our framework contains three key elements of how MNCs from emerging markets interact with institutions: EMNCs develop approaches that to some extent reflect the perceived strengths and weaknesses of the institutions in the home country (institutional conditioning); the strategies of actors in EMNCs can overcome the weaknesses of the home country by drawing on institutions in other countries (institutional arbitrage); and the actions of EMNCs can reinforce, or create pressures for change in, the institutional context in the countries in which they operate (institutional change/consolidation). By mapping this set of strategies of EMNCs, we contribute to a fuller understanding of the relationship between institutions and HR practices, and we outline how the rise of EMNCs reshapes the global landscape by adding new kinds of firm behavior to capitalist diversity.     

Selecting optimal intermediary channels in emerging markets: The case of Vietnamese toiletries

Abstract

Domestic distribution in Vietnam is characteristic of an emerging market in the beginning stages of modernization, with frequent changes in retail format, a fragmented distribution structure, and ambiguous regulations. This study uses field surveys and comparative analyses of individual enterprises in Vietnam’s toiletry products industry to identify suitable channel strategies for emerging markets in the early stages of distribution modernization. The results indicate that partnership channels are more suitable than hierarchy and market governance channels. Moreover, among the various types of intermediaries, distributors provide a key role in emerging markets where transportation functions are undeveloped. Finally, the study investigates the various methods of partner selection, finding that effectiveness-oriented networks are superior to large-scale efficiency-oriented networks because they have greater channel coverage in modernizing emerging markets. The findings demonstrate the optimal channel structures and partner selection criteria for distributors in emerging markets.     

Cyclical wage movements in emerging markets compared to developed economies: a general equilibrium comment

I examine distinct cyclical properties of labor markets in emerging economies compared to developed ones from a general equilibrium perspective. The evidence in emerging economies shows that (1) wages are more volatile than income, while (2) employment is less volatile and (3) less pro-cyclical than in developed economies. I use a standard open-economy model to study the implications of wealth effects on labor market dynamics in both emerging and developed economies simultaneously. In contrast to the (partial equilibrium) results of the small open economy (SOE) model, I show that in general equilibrium, strong wealth effects on labor supply in emerging economies are necessary to rationalize the evidence. The model is also consistent with empirical regularities of exchange rate fluctuations, namely (1) excess volatility of real exchange rates, and (2) the negative co-movement between the real exchange rate and relative consumption.     

Covered in Gold: Examining gold consumption by middle class consumers in emerging markets

As wealth and status rise for middle class (MC) consumers in emerging markets (EMs), they increasingly acquire gold for both consumption and investment. The authors delineate a conceptual map for gold consumption drawing insights from the context of MC in EMs. Perceived benefits of gold and disposable income directly determine the attractiveness and availability of gold for individual consumers. Cultural, institutional and economic factors account for country variations in gold consumption. Based on theoretical considerations and empirical evidence, we contend that gold consumption and disposable income have a curvilinear relationship: as EMs mature and MC consumers’ shopping baskets become more diverse and sophisticated, their gold consumption decreases and eventually stabilizes.     

The new middle class in emerging markets: How values and demographics influence discretionary consumption

The rise of new middle‐class consumers in rapidly transforming emerging markets has attracted the attention of Western business executives. What they know about this growing segment of customers will determine whether they succeed or fail in these markets. The present study examines the factors that drive the discretionary consumption of this new middle class, including the effects of consumerist values, religious values, occupation, education levels, and ownership of fixed assets. The study draws its insights from data gathered from 391 new middle‐class consumers in Ankara, the second‐largest city in Turkey. The findings provide important implications for businesses, both indigenous and foreign. An overall implication is that managers ought to understand and qualify the new middle class in emerging markets not simply by their access to disposable income but by deeper attitudinal and behavioral characteristics.     

Market orientation in the context of SMEs: A conceptual framework

A number of studies in the marketing literature have examined the construct of market orientation (MO). These studies generally show a positive link between MO and organizational performance. This paper examines MO specifically in the context of small and medium sized enterprises (SMEs). An in-depth review of the extant literature is used to develop a conceptual framework by exploring the major antecedents of MO, the MO–Performance relationship, and the key mediators and environmental moderators of this relationship. This paper also examines several studies on SMEs with respect to various aspects of this framework and offers suggestions for future research in order to understand more thoroughly how MO influences SME performance.     

Rituals in managing extrabusiness relationships in international project marketing: a conceptual framework

The current craze for the so-called relationship marketing in business markets must not mask the fact that, beyond economic and technological interdependencies between companies, business relationships are also made up of social interactions. This social dimension often escapes the attention of marketing theorists although it is of major importance in the management of business relationships. On the basis of an investigation into international project activities, this article develops a ritual approach for managing the extrabusiness phase of business relationships. This ritual approach allows us to build a framework designed to encapsulate and, possibly, manage the many faces of the social dimension of business relationships.     

Self-concept,individual characteristics,and counterfeit consumption: Evidence from an emerging market

The study draws on a sample of over 350 consumers from 10 department stores in an emerging market where counterfeit products are available in abundance and there is a huge demand for such goods. The findings reveal that interdependent and independent self traits significantly affect individual characteristics, that is, susceptibility to normative influence, readiness to take social risk, and status acquisition (SA), which in turn influences counterfeit purchase intention. It was discovered that such individual characteristics play a mediating effect on the self-concept—purchase intention relationship and that high degrees of interdependent self traits positively affect consumers' purchase intention. The study adds to the theory of reasoned action (TRA) by incorporating SA variables into the TRA framework and discovers their significant influence on purchase intention. Some novel insights surrounding counterfeit consumption in an emerging economy context are presented and several implications are extracted to help practitioners appeal to such individual characteristics for combating counterfeit consumption.     

A Taxonomic Analysis of Export Marketing Strategy:

This study focused on a taxonomic analysis of export marketing strategy pursued by U.S. electronics exporters, and identified six distinct strategy types, i.e., innovative differentiation, low price leadership, promotion- and technology-based differentiation, low price leadership with deemphasis on technology, marketing differntiation with product adaptation, and "stuck in the middle." The study also identified the significant impact of export marketing strategy on export performance. Two strategy types, i.e., low price leadership and innovative differentiation, were found to be particularly successful.     

Desire,need, and obligation: Examining commitment to luxury brands in emerging markets

The availability of a wide variety of luxury brands has resulted in declining commitment toward a single brand. Enhancing brand commitment has, therefore, become a significant challenge for international businesses and marketing managers. We develop a multi–dimensional brand commitment framework underpinned by marketing, organizational, and social psychology literature streams. The simultaneous examination of brand–commitment dimensions based on consumer desire, need, and obligation in our framework offers a novel perspective that advances research on brand commitment. Our findings demonstrate stability of the framework in important emerging markets for luxury brands, namely China, India, Russia, Turkey, and Thailand. The framework, incorporating affective, continuance, and normative brand commitment dimensions, offers a conceptually robust fit. We demonstrate that each brand commitment dimension is influenced by distinct antecedents, and we show the direct and interactional impact of consumers’ emotional attachment, economic motivations, and normative pressures on purchase intentions. Supported by well-established theories in organizational and social psychology, our study offers new insights on how consumers commit to brands. We provide international brand managers with a blueprint for strengthening brand commitment across countries.     

Strategic marketing planning for heritage tourism: a conceptual model and empirical findings from two emerging heritage regions

This paper examines the process of strategic marketing planning for heritage tourism, an inherently complex and fragmented system, requiring a coordinated approach among a range of stakeholders. A conceptual model, detailing key stakeholders and specific strategic functions, as well as a prescribed method of coordination, is presented. Two regions were investigated using a qualitative methodology, which examined five strategic documents and consisted of in-depth interviews with 11 key informants from the tourism industry. Key findings indicate that weak coordination, in terms of strategic marketing planning, has negative implications for heritage tourism marketing concerning four key strategic functions, strategic orientation, resource allocation, product service development and destination promotion. The paper emphasises the importance of strategic marketing planning for each function and considers the role of the public sector in terms of providing strategic direction. Furthermore, the paper highlights the potential difficulties of engaging in heritage tourism development in a non-traditional destination.     

An empirical analysis and extension of internalization theory in emerging markets: The role of firm-specific assets and asset dispersion in the multinationality-performance relationship

This study examines the relationship between firm multinationality and financial performance with a focus on firm-specific assets and dispersion of these assets for MNCs from emerging markets. Drawing upon internalization theory, the authors reveal that while the financial performance of manufacturing MNCs depends on technological assets, service MNCs are more dependent on marketing assets to succeed in international markets. Study findings further emphasize the critical role of the industry context in emerging markets as the authors demonstrate that international asset dispersion weakens the effects of internationalization on financial performance more for MNCs in manufacturing industries than for MNCs in services.     

The nature and determinants of comovement between developed,emerging and frontier equity markets: Europe versus Asia‐Pacific

International investors are increasingly attracted towards emerging and frontier markets because of their potential to enhance diversification benefits of a global portfolio. This calls for a rigorous analysis of the nature and determinants of stock market comovement between developed, emerging, and frontier markets in Europe and Asia‐Pacific regions. The findings suggest that unlike their Asia‐Pacific counterparts, European developed, emerging, and frontier stock markets display a higher degree of comovement. Although Asia‐Pacific frontier markets provide good diversification opportunities, investors must be cautioned against their weak financial system. The volatility of returns, gross domestic product growth rate, and the 2008 global financial crisis (GFC) are the key determinants of stock market comovement in Europe. The mechanisms by which comovement in the Asia‐Pacific region is strengthened differ across markets. Comparative analysis of comovement and its determinants across different classes of equity markets and geographies is expected to provide valuable perspectives to global investors, portfolio managers, and policymakers.     

消费升级与黑龙江省绿色食品企业营销战略转型

随着消费者收入的持续提高,消费升级成为必然趋势。企业需要以终端和渠道导向为主向消费者导向为主的营销思路转变,完成企业营销渠道战略的转型。当前,黑龙江省绿色食品企业营销渠道面临着对消费者多样化需求的满足程度不够、产销脱节、缺乏对整体渠道的控制力等问题。在消费升级形势下,黑龙江省绿色食品企业的营销战略应向产销一体化渠道模式转型。产销一体化渠道模式能够促进企业的发展和农户增收,满足消费者对食品安全的要求和多样化需求。     

Discovering India's three levels of luxury consumption: An exploratory research to find a conceptual framework

Luxury marketing research has moved from functional product attributes to a ‘democratized’ view in emerging economies. This seems to be based on the development of interactive and digital communications. Luxury research studies have historically focused on the brand's and marketer's perspectives. Thus, little attention has been given to the consumer's view of what we consider to be the individual drivers, i.e., the ‘inner and outer self’ and how that impacts luxury consumption. This paper presents a framework of luxury and self, using concepts such as interdependent or outer, independent or inner, and a new concept of ‘digital self’. These appear as three levels of luxury consumption, i.e., conspicuous, individual, and interactive. The interdependent self is influenced by the external motives and leads to conspicuous luxury behavior. Individual self is affected by internal motives and thus influences individual luxury consumption. Digital self affects the networks of motive and relationships and thereby impacts interactive luxury consumption and behavior.