Using social and economic incentives to discourage Chinese suppliers from product adulteration

The American public raised serious concerns about product safety in 2007, when the number of product recalls broke a new record. Following a temporary drop in 2008, both the number and retail value of recalled units have been increasing, despite various efforts exerted by government agencies and private companies to combat this trend. Currently, many countries—including China itself—are expressing serious concern over adulterated or unsafe food made or sold in China. What are the underlying reasons for some Chinese suppliers to adulterate product? When law enforcement is still weak in China, what can western manufacturers do to reduce the risk of product adulteration? To develop effective deterrence mechanisms, we first identify four underlying factors that create incentives for some Chinese suppliers to produce unsafe products. Then we propose ideas to discourage Chinese suppliers from producing adulterated products based on two underlying strategies: (1) creating economic incentives through contingent payments, and (2) creating a social incentive by threatening public exposure through the power of the Internet and social networking sites.     

Can product cycles explain skill upgrading?

Since the late 1970s, both developed and developing countries have experienced skill upgrading; that is, a rise in skilled labor's share of employment and payroll. In this paper, I examine the extent to which skill upgrading can be explained by product cycles, that is, by U.S. innovation and the subsequent relocation of production to U.S. trading partners. The following conclusions obtain. (i) Product-cycle trade is strongly and positively correlated with skill upgrading in a large panel of industries and countries. (ii) No such correlation is apparent for conventional trade measures that do not differentiate between product-cycle goods and non-product-cycle goods. (iii) Product-cycle trade is at least as important as other previously identified domestic sources of skill upgrading such as capital deepening.     

Online personalized recommended product quality and e-impulse buying: A conditional mediation analysis

Consumer lifestyle and purchasing behavior have been significantly transformed over the past few years. At present, internet technologies make it possible for consumers to order goods and services on a go or in real-time without physically visiting traditional store outlets. This phenomenon calls for a change in marketing strategy to be able to reach consumers wherever they are. Accordingly, online marketing techniques such as personalized product/service recommendation, which makes products available to consumers, optimizing their interests and buying experience, are primal to market development.Therefore, this study examines whether or not online consumers' (1) E-impulse buying (EIB) behavior is influenced by personalized recommended product quality (RPQ), (2) affective image (IMAGE) of, and satisfaction (SAT) with recommended products mediate the RPQ-EIB link, and (3) online review stimulus (ORS) moderated the direct RPQ-EIB and indirect PRQ-EIB through affective image and satisfaction. Data was collected from consumers on five (5) online shops in China (N = 947). The Results showed that (i) RPQ had significant positive influence on EIB, (ii) the RPQ-EIB relation was partly explained by consumers' affective image of, and satisfaction with recommended products, and (iii) the direct and indirect relations between RPQ and EIB were sensitive to consumers’ ORS. Theoretical and practical implications, limitations and direction for future studies were also discussed in this study.     

解析海外市场对中国水产品出口的关注焦点——从日本看中国水产品出口

日本是中国长期以来最为重要的水产品出口市场,从日本普通消费者和水产业界的视角考察中国水产品出口情况,发现中国水产品加工企业在保证产品质量安全方面做出了卓有成效的努力,中国水产品对日本出口格局的变化与日本水产品市场的长期低迷及非关税贸易壁垒的设置有直接关系。如何增加海外消费者对中国目前高水准的出口水产品加工状况的了解,成为消解和弱化对中国水产品妖魔化的亟需解决的重要课题之一。     

Strategies to reduce product proliferation

Major problems associated with product proliferation include higher production, inventory, and record-keeping costs; increased expenses associated with trade promotions and slotting fees; added consumer confusion and stress; and increased susceptibility to stockouts. This article describes how a firm can limit product proliferation without incurring reduced sales or lowering consumer loyalty. An effective product proliferation reduction program needs to be based on several principles: resisting the temptation of asking consumers if a greater assortment is required; classifying goods into consumer behavior-based tiers; using interfunctional product pruning teams; practicing mass customization, where appropriate; placing absolute limits on product choice; and implementing effective strategies for product pruning.     

Strategies to detect and reduce counterfeiting activity

While at one time counterfeit products were largely restricted to watches, designer apparel, and movies, today counterfeiting is a major problem in such diverse product categories as pharmaceuticals, automotive parts, and computer software. There are four distinct types of counterfeits: knockoffs, counterfeits that are reverse engineered from genuine goods, goods produced by outsourced suppliers on “third shifts,” and goods that do not meet a manufacturer's standards but are not properly labeled as seconds or destroyed. The quality of some counterfeits is so good that some major retailers have unknowingly purchased counterfeits. But while there are new forms of counterfeit goods, there are also new strategies for combating counterfeiting. This article describes how to detect and reduce counterfeiting activity, via a plan which consists of four steps: (1) developing early warning signals of counterfeiting; (2) budgeting to monitor, deter, and remove counterfeits; (3) using demand-side strategies to deter counterfeiting; and (4) using supply-side strategies to deter counterfeiting.     

The Effect of Probabilistic Selling on the Optimal Product Mix

Determination of the merchandize assortment is an important decision for retailers since the composition and depth of the product mix greatly impact both unit sales and costs. This paper considers how Probabilistic Selling (PS), an emerging marketing strategy, impacts the type and number of products a retailer should carry. We find that adopting PS can alter the optimal number of products (i.e., encourage the retailer to offer more or fewer products), depending on demand- and supply-side factors. Furthermore, introducing probabilistic goods sometimes increases the optimal degree of product differentiation and sometimes reduces it. Specifically, less differentiated products are warranted if there are either few or many consumers with extreme tastes, but more differentiation is needed otherwise. Our analysis reveals that PS can serve either as a substitute to new product introduction (because it enables a retailer to serve a diverse market at a lower cost) or as a complement to new product introduction (since, under PS, a new product enables a retailer to offer additional probabilistic goods that utilize this new product as one of its components). In sum, our results indicate that a retailer must adjust its merchandize assortment appropriately in order to fully benefit from probabilistic selling.     

The influence of anthropomorphic appearance of artificial intelligence products on consumer behavior and brand evaluation under different product types

While artificial intelligence products are widely used in the market, their anthropomorphic appearance design is becoming a frontier issue in product strategy and consumer behavior research. The aim of this study was to investigate the influence of anthropomorphic appearance on consumer behavior and brand evaluation under different AI product types. It was conducted in China, a new but rapidly-growing country in the field of Internet, AI technology and AI product consumption. This study conducted four situational experiments with a 2 (anthropomorphic design: anthropomorphic vs. non-anthropomorphic) × 2 (product type: hedonic vs. utilitarian) between subjects’ experimental design. Data was collected from 1172 Chinese “Digital Natives” by using a structured questionnaire. The findings revealed that for hedonic AI products, anthropomorphic appearance improves consumers' purchase intention and brand evaluation through perceived entertainment, and intelligence level significantly moderates the mediating effect of perceived entertainment; while for practical AI products, anthropomorphic appearance improves consumers' purchase intention and brand evaluation through perceived usefulness, and intelligence level does not significantly moderate the mediating effect of perceived usefulness. There is no significant moderating effect of intelligence level on perceived usefulness. The study contributes to development and validation of a more comprehensive understanding and theoretical foundation of anthropomorphism, and furthermore explores the impact of anthropomorphic appearance on consumer behavior and brand evaluation under different AI product types. This study also provides insights for companies to apply anthropomorphic strategies.     

A comparative institutional analysis of agreements on product standards

The WTO and the EU have chosen two different agreements on product standards. While the WTO's approach is primarily based on a “National Treatment” (NT) principle, the EU's approach crucially relies on a principle of “Mutual Recognition” (MR). This paper offers a first look at the comparative performance of these two principles. We show that standards are imposed for levels of externalities that are too low under NT and too high under MR. This suggests that NT should be preferred to MR when the amount of trade in goods characterized by high levels of externalities is large.     

The Utility of Prestige: Chinese and American Hedonic Ratings of Prestige Goods

ABSTRACT

China is rapidly becoming the most important luxury market in the world (Lung, 2005). The reason for this is not simply due to the market size but also to the Chinese consumer's particular penchant for luxury goods. This study will investigate the differences between U.S. and Chinese consumers based on their hedonic and utilitarian ratings of luxury goods and the relationship that these ratings have with individual and cultural traits, with the expectation that a collectivist background will lead to a more utilitarian view of prestige goods. A sample of more than 600 Chinese and U.S. respondents was analyzed based on the ratings of three prestige goods. The results show that China is rapidly becoming a more individualistic nation and that the expected utilitarian use of prestige goods is confirmed through multiple statistical techniques.     

Worried about strategy implementation? Don’t overlook marketing's role

Many executives and scholars have argued that effective strategy implementation is at least as important as—if not more important than—developing a brilliant strategy. While there are several extant viewpoints regarding what is required for successful strategy implementation, perhaps the most influential perspective is that business success requires a fit between strategy and organizational architecture. Organizational architecture subsumes structural variables and capabilities. For the past 10 years, we have studied the performance implications of matching marketing's organizational architecture to four generic business strategies: Prospectors, Analyzers, Low-Cost Defenders, and Differentiated Defenders. Through six empirical studies we have identified best practice matches between these strategy types and: (1) marketing organization culture, (2) marketing strategy, (3) market strategy formation process, (4) market-focused strategic organizational behaviors, (5) marketing organization structure, and (6) marketing control systems. In this article, we bring together findings from each of these studies to provide a comprehensive overview of those marketing actions and policies that are associated with superior firm performance.     

新冠肺炎疫情下中俄深化农产品贸易合作路径探析

近年来,中俄农产品贸易在中俄合作中的重要性不断提升。尤其是新冠疫情爆发后,随着两国民众对农产品的需求变化,中俄农产品贸易不论是数量还是质量都得到显著的提高,成为新冠疫情下中俄双边经贸合作的新亮点。2020年前三季度,两国农产品贸易额大增,中国在保持俄罗斯农产品第一大出口国的同时,中国自俄进口农产品也大幅攀升。探讨新冠疫情下中俄农产品贸易现状,聚焦两国农产品贸易发展的制约性因素,提出有利中俄农产品贸易转型升级的有效路径,将为后疫情下的中俄农业合作提供新的启示。     

品牌战略任重道远

在市场竞争中,品牌体现着一个企业乃至一个国家的素质、信誉和形象。改革开放以来,由于社会各界对品牌工作的高度重视和品牌意识的提高,培育出了一批著名品牌,有些品牌甚至可以与外国名牌相抗衡。但是从总体上讲,我国的品牌事业与西方发达国家相比还存在较大的差距,面临着较深的危机。面对我国加入WTO的历史机遇,作为创建和发展品牌的主体的企业,必须紧紧抓住机遇,增强使命感和紧迫感,狠抓产品质量,加强科学管理和文化建设,搞好品牌延伸,加紧实施名牌战略,提高品牌的市场竞争力。     

Maximizing customer value via mass customized e-consumer services

While the Internet provides an ideal marketplace for customized services, its strategic potential has yet to be fully realized. In particular, multi-seller (or “cross retail”) partnerships are the key to a largely unexploited Internet strategy for mass customizing bundles of goods or services as value-added solutions to individual customer needs. This article uses mass customization successes to advance cross retailing as a comprehensive strategy that frames current Web initiatives specifically in terms of customer value. Exploiting the strategy will necessitate an understanding of the enablers and dimensions of mass customized “e-consumer services” (i.e., e-tail services, as well as service-related consumer products, that are defined and sold via the Internet). The overall success of the broader Internet marketplace will be determined not just by industry-wide cooperation, but also by the development of rich standards that allow for the highly customized bundling of products. More importantly, service providers will be differentiated by their ability to employ powerful Web interfaces within a strategy that comprehensively supports and extends a customer-controlled customization process.     

基于生命周期理论的我国技术标准战略研究

技术标准已经成为国际经济竞争的最主要形式之一。本文根据产品生命周期理论,研究了技术标准演进的规律,分析了技术标准对市场的强化作用和保护作用,指出了竞争者在技术标准运行的不同阶段所应采取的标准战略,最后提出了我国实施技术标准战略应采取的对策。     

An empirical analysis of online shopping adoption in Beijing,China

The Internet is a global communication medium that is increasingly being used worldwide as an innovative tool for marketing goods and services. At the end of 2010, Internet users in China reached 420 million. However, online shopping in China is not widely practiced and organisations investing in B2C online shopping need to understand the factors that affect Chinese consumers′ online buying behaviour. This research develops a theoretical research model as a framework to identify the key decision factors influencing Chinese consumers′ to shop, or not to shop online. A self-administered questionnaire was used to gather information from 435 respondents in Beijing, China. The empirical analysis identifies and ranks seven important decision factors: perceived risk, consumer resources, service quality, subjective norms, product variety, convenience, and website factors. All of these decision factors impact on Chinese consumers′ adoption of online shopping. Moreover, managerial implications and recommendations are also presented.     

The new WTP: Willingness to participate

A key concept underlying competitive strategy is that of WTP, representing the consumer's ‘willingness to pay’ a premium price for goods or services. Through branding and other efforts, companies strive to push their message out and create a high willingness to pay, whereby consumers feel there are few or no substitutes for what these companies are selling. Social media, however, are making push-based marketing anachronistic. Users of social media typically eschew professional communications forced on them by faceless and impersonal organizations, in favor of more personal conversations. These individuals seek greater engagement with their preferred brands, and involvement—with or without the company's approval—in creating brand personalities. Their affinity for these preferred brands might well auger the dawn of a new WTP: willingness to participate. This article presents a model of consumer engagement through social media, and argues for re-conceptualizing WTP by utilizing a series of examples which show how companies that engage consumers via social media (e.g., Facebook, Twitter, YouTube) stand to reap the benefits of long-term competitive advantages.     

Reverse stigma in the Freegan community

Freegans are anti-consumers who sustain themselves through dumpster diving and the consumption of disposed goods. Mainstream consumers consider Freeganism dirty and tainted—a stigma. Through a qualitative investigation of Freeganism and its practitioners, this research contributes a multi-dimensional framework of reverse stigma. The framework explicates the mechanisms by which stigmatized individuals re-direct stigma onto normative culture. Specifically, these mechanisms are ideological reversal, practice reversal, and resource reversal. While past research emphasizes defensive, self-directed stigma management strategies, this research shows that some communities adopt offensive, others-directed strategies to reject their stigmatized status and redirect the stigma to normative others.     

Complementary Goods: Prices and Consumer Welfare Under Duopoly and Monopoly

We examine prices, profits, and consumer surplus for differentiated complementary goods under duopoly and a multi‐product monopoly. We find that little can be said about the relative magnitudes of prices of the components of a system of complementary goods under the alternative market structures. Although demand complementarity can lead to lower prices for either the primary or the secondary good under monopoly, both prices are not necessarily lower. The results unique to this paper are that, when two complementary goods form a system, the system price is unambiguously lower and consumer surplus and profits are higher under a multi‐product monopoly.