Did the Proposed Country-of-Origin Law Affect Product Choices? The Case of Salmon

The 2002 Farm Securit and Rural Investment Act mandated that country-of-origin labeling (COOL) be applied to specific food commodities. Using revealed preference data for 1998–2006, a nonlinear AIDS model is used to estimate the demand for uncooked frozen, uncooked fresh, and precooked salmon to assess the impact of the legislation on consumer demand patterns. Findings from a non parametric analysis suggest a possible rotation in the demand curve for fresh salmon that may be linked with the quality signal associated with COOL. However, our findings indicate that COOL had no significant impact on overall consumer demand for the three products. All three were found to be inelastic, with uncooked fresh salmon being slightly more price sensitive than uncooked frozen and precooked salmon. Given the expenditure elasticities, the fresh salmon segment of the industry appear to be more vibrant than the other salmon segments and would likely influence investment decisions in the salmon industry.     

Effectiveness of Absurdity in Advertising Across Cultures

This paper examines the effect of absurd advertising on memory and persuasion across cultures. Drawing on Hofstede's cultural dimensions, it is hypothesized that the effect of absurdity on recall is culturally invariant, whereas the effect on attitude toward the ad is contingent on the recipients’ cultural orientation. The assumptions are tested using a between-subjects experimental design, in which we manipulated type of absurdity and used the cultural dimensions as blocking variables. Data was collected from 274 students in the United States, Germany, Russia, and China. We discuss theoretical and managerial implications of these findings as well as guidelines for further research.     

Retail network spatial expansion: An application of the percolation theory to hard discounters

This article concerns the spatial organization of a retail network. During the expansion of a retail network, the location decision process does not necessarily lead to a regular distribution of outlets throughout the territory. The case of 5 hard discount store networks in France in their development stage illustrates this situation. A hard discount network strategy to fight against incumbent stores relies on the postulate that its competitiveness stems from its perfect cost control, and consequently, its ability to impose its brands to the consumers. To explain hard discounter spatial strategies, the diffusion theory was primarily developed by retaining only the temporal dimension of the process. But this model is not well established for the disordered environment in which the networks are managed. The percolation theory facilitates a new approach of the diffusion in this disordered medium that represents the retail network.     

Does private-label production by national-brand manufacturers create discounter goodwill?

Discount stores have a private-label dominated assortment where national brands have only limited shelf access. These limited spots are in high demand by national-brand manufacturers. We examine whether private-label production by leading national-brand manufacturers for two important discounters (one hard and one soft) creates discounter goodwill. We estimate a selection model that is based on a sample of 450 manufacturer-category combinations from two leading discounters (Aldi in Germany and Mercadona in Spain), and we show that private-label production is indeed rewarded: national-brand manufacturers that are involved in such practices have a higher likelihood of procuring shelf presence for their brands. Moreover, while powerful manufacturers are intrinsically more likely to obtain shelf presence with soft discounters, manufacturers with less power can compensate for this by producing private labels. No such dependence on power exists for hard discounters.However, not all national-brand manufacturers are equally likely to produce private labels for discounters. We find that national-brand manufacturers are less likely to do so when: (a) they experience more sales growth, (b) it is more difficult to produce high-quality products in a specific category, (c) they invest more advertising support into their brands, and (d) they introduce more innovations. Moreover, a higher price differential relative to the discounter's private labels makes national-brand manufacturers less likely to engage in private-label production for hard discounters.     

Retail ‘Quality Assurance’ Labels as a Strategic Marketing Communication Mechanism for Fresh Meat

Approximately 40 quality assurance labels are in operation throughout the UK, namely for meat, salmon, milk, cereals, eggs, fruit and vegetables. Fresh meat quality labels are the most prevalent, thus requiring consumers to recognize and learn not only about the many nationally organized quality labels, but also the in-house retail labels. This paper identifies the meat purchasing behaviour of consumers and their perceptions, attitudes and knowledge towards the main quality assurance labels. Results indicate consumers' purchase preferences to be more influenced by quality labels co-ordinated by producer-led organizations, and that recognition and knowledge of retail labels are low in comparison. This raises questions regarding the relevance and communication strategies of in-house retail ‘quality assurances’ to consumers.     

Critique

Abstract

The ethnic segmentation of the cigarette market is currently controversial, but not a new phenomenon. A census of 540 cigarette ads from 1950–1965 Ebony magazines, compared to a matched sample from Life, reveals segmented and segregated advertising toward black consumers. The ads in Ebony eventually featured black models almost exclusively, primarily professional athletes. Despite endorsements from black athletes and musicians also famous to white audiences, none of these appeared in the Life ads. On average, the segregated advertising was two to three years tardy in offering filtered products to black consumers, suggesting that appeals to black pride were not without prejudice. Potential reasons for these historical results are discussed, as are current practices.     

Theoretical and Applied Relevance of Consumer Limits to Processing Advertising

Abstract

This study investigates (1) how immigrant consumers change their media consumption when they move across cultural boundaries and (2) whether media exposure relates to consumers' acculturation of the new social norms. A total of 938 respondents from four sample groups including Hong Kong residents, long-time and new Hong Kong immigrants to Canada and English-speaking Caucasian Canadians responded to a predesigned questionnaire. It was found that while the immigrant groups did not increase their total media consumption, their consumption across different media types followed both assimilation and ethnic affirmation models. This acculturation process seemed to be affected by immigrants' original media consumption behavior and language ability. Media exposure was found to relate significantly to immigrants' acculturation of the new social norms after influences due to personal characteristics were removed.     

Testing the Cross-National Applicability of U.S. and Russian Advertising Belief and Attitude Measures

Abstract

Examining the cross-national applicability of advertising measures is becoming increasingly important, especially in rapidly changing countries such as Russia. Therefore, our study's purpose is first to demonstrate recommended procedures for testing the cross-national equivalence of advertising belief and attitude measures. Then, we conduct an initial cross-national comparison of beliefs and attitudes toward advertising in general between student samples from both the U.S. (n=148) and from Russia (n=64). Results indicate that, while Russian respondents felt advertising is more essential, U.S. respondents felt advertising resulted in greater negative social effects. Also, U.S. respondents were more favorable toward the institution of advertising (its purpose and effects), with no differences for the instrument of advertising (its methods and practices). Russian respondents' attitudes toward advertising in general were more favorable than those of U.S. respondents.     

Bribery in international business: Whose problem is it?

Bribery is a frequently discussed problem in international business. This article looks at the problem from the North American and from the developing country perspective. It describes and analyses specific cases and highlights recurring patterns of behavior.The article is based on the experiences of the authors who have been promoting business in the developing world. In addition to ethical considerations involved with bribery there are some very practical reasons for not engaging in the practice. There are also real barriers to establishing the relationships necessary to avoid the practice yet continue doing business. Henry W. Lane is Associate Professor of Organizational Behavior at the School of Business Administration, The University of Western Ontario, London, Ontario. He is at present Director of the Centre for International Business Studies. His most important publication is: Managing Large Research and Development Programs (with Rodney Beddows and Paul R. Lawrence), (State University of New York Press, Albany, 1981).Donald G. Simpson is Associate Professor at the University of Western Ontario. He is at present Associate of the Centre for International Business Studies. He was formerly Associate Director of Social Sciences Division at the International Development Research Centre, Ottawa, Canada and Executive Director of the Office of International Programs, University of Western Ontario.