The Niche Portfolio Strategy to Global Expansion: The Influence of Market Resources on Demand for Formula One Racing

ABSTRACT

International products can achieve mass adoption in some countries, while languishing outside the mainstream in other countries. Theoretically, global organizations can manage market entry and divergent demand by practicing a niche portfolio strategy that requires marketers to appropriately prioritize and cultivate key resources in underdeveloped niches while maintaining dominant status in traditional markets. The authors use the international context of Formula One Racing to examine how market resources influence demand for the sport in 19 different geographically defined niches across four continents. Hierarchical regression analysis demonstrates positive incremental demand effects for participant, spectator, and sponsor-based resources, while media-based resources were nonsignificant.     

An assessment of the use of partial least squares structural equation modeling in marketing research

Most methodological fields undertake regular critical reflections to ensure rigorous research and publication practices, and, consequently, acceptance in their domain. Interestingly, relatively little attention has been paid to assessing the use of partial least squares structural equation modeling (PLS-SEM) in marketing research—despite its increasing popularity in recent years. To fill this gap, we conducted an extensive search in the 30 top ranked marketing journals that allowed us to identify 204 PLS-SEM applications published in a 30-year period (1981 to 2010). A critical analysis of these articles addresses, amongst others, the following key methodological issues: reasons for using PLS-SEM, data and model characteristics, outer and inner model evaluations, and reporting. We also give an overview of the interdependencies between researchers’ choices, identify potential problem areas, and discuss their implications. On the basis of our findings, we provide comprehensive guidelines to aid researchers in avoiding common pitfalls in PLS-SEM use. This study is important for researchers and practitioners, as PLS-SEM requires several critical choices that, if not made correctly, can lead to improper findings, interpretations, and conclusions.     

The Cost of Rich (and Poor) Country Protection to Developing Countries

This study confirms that substantial barriers to market accesswill remain in both rich and poor countries following full implementationof the Uruguay Round agreement. The analysis finds that approximately40% of the costs of these barriers to developing countries arisefrom barriers to market access in industrial countries and 60%from barriers in developing countries themselves. The resultssuggest that there would be large gains to almost all regionsfrom a round of negotiations that increased market access inthe North and South. In Africa, the potential static gains frommultilateral reform appear to exceed those from preferentialliberalisation, without the well-known disadvantages of a preferentialapproach.     

The scholarly output of economists: A description of publishing patterns

This paper analyzes the research productivity of a cohort of economists over the 15 years following receipt of their doctorate degrees, contrasting their results in publishing articles, books, and textbooks after controlling for the individual characteristics of the economists in the sample. Specifically, this paper considers the quality of graduate school, the type of employment, the general area of dissertation research, and the gender of each individual in the cohort. Primary conclusions indicate that scholarly journals are the most important research outlet, and that book production is a complementary activity to output in scholarly journals. Moreover, publishing success is closely related to the quality of the graduate school attended as well as the type of employer. According to this research, women do not face a statistically significant disadvantage to publishing. Finally, the analysis documents that midway through the 15-year time span covered by this study, output begins to decline, reflecting the post-tenure drop-off in research productivity.     

Management fads and information delays: An exploratory simulation study

Management fads seem omnipresent. Adoption research that focuses on the uptake of change says little about subsequent abandonment behaviors. In this paper a simulation model is developed that extends adoption and diffusion models to consider abandonment from a dynamic perspective. Analysis of the simulation results leads to the conclusion that incomplete information and bandwagon effects can lead to fad-like behaviors.     

Raising the portcullis: repeal of the National Dock Labour Scheme and the employment relationship in the docks industry

The National Dock Labour Scheme (NDLS) was created because of the unsatisfactory nature of the employment relationship in the docks industry. The most strident criticisms and damaging effects of the mature operation of the NDLS also revolved around the nature of labour relations. This article concludes that following repeal there has been no simple 'swing of the pendulum' back to the casual, ill-trained and unsafe working practices of the past.     

Cartel pricing dynamics with cost variability and endogenous buyer detection

This paper characterizes collusive pricing patterns when buyers may detect the presence of a cartel. Buyers are assumed to become suspicious when observed prices are anomalous. We find that the cartel price path is comprised of two phases. During the transitional phase, price is generally rising and relatively unresponsive to cost shocks. During the stationary phase, price responds to cost but is much less sensitive than under non-collusion or simple monopoly; a low price variance may then be a collusive marker. Compared to when firms do not collude, cost shocks take a longer time to pass-through to price.     

The role of strategic uncertainty in games: An experimental study of cheap talk and contracts in the Nash demand game

We utilise results from a human-subjects experiment to examine the connection between strategic uncertainty and outcomes in games. Our basic game is a Nash demand game where one player has an outside option available. A “chat” treatment allows bargainers to send cheap-talk messages prior to playing the basic game, and in a “contracts” treatment, they can additionally propose and accept binding contracts. We propose that strategic uncertainty comprises at least two facets: “coordination-type”, which is lower in the chat game than in the basic game, and “rationality-type”, which is lower in the contracts game than in the chat game. We find that both types of strategic uncertainty impact bargaining outcomes: moving from the basic game to the chat game, and thence to contracts, improves several aspects of outcomes, such as higher efficiency, less opting out and less under-demanding. Other results include a treatment effect on the types of agreements that are reached.     

An empirical study of the impact of consumer perceived risk on purchase likelihood: a modelling approach

Drawing on an extensive literature review, a conceptual model incorporating marketing and psychometric paradigms for assessing consumer purchase behaviour is developed in the context of a hazardous and harmful risk associated with potentially contaminated food. An empirical study of 200 respondents was carried out to test this conceptual model. Structural equation modelling using LISREL 8.30 confirmed the link between perceived risk characteristics and risk perception, and that the latter appears to influence purchase behaviour. Concern about potential consequences, long‐term adverse impacts and the involuntariness of exposure were key shapers of risk perception, and risk perception itself was measured by health, money, time, lifestyle and taste losses in this study. These findings can help both the food industry and its regulators as they seek to formulate effective risk management and communication strategies. The model developed in this exploratory study can be extended to all commodities, as well as all services industry.