International Marketing Review

Will ethical consumers sustain their values in the global credit crunch? : Table of Contents

Marylyn Carrigan, Patrick de Pelsmacker — Sat Oct 24 08:00:20 BST 2009

Abstract:
Purpose – The current global recession is presenting new and difficult challenges for those customers wishing to consume sustainably and ethically, and the marketers who seek to provide the goods that allow them to do so. The purpose of this paper is to explore to what extent international marketers can engage consumers with a social conscience and retain their loyalty both during and after the recession. Design/methodology/approach – This paper explores the impact the global recession is having upon consumers and marketers, and considers the evidence surrounding concerns that the demand for ethical products will decline across international markets as the recession deepens. Findings – The discussion acknowledges that while discount retailers are thriving, and customers are trading down, evidence suggests that across international markets a significant number of socially conscious consumers are still exhibiting ethical consumption behaviour. Future marketing opportunities lie in providing consumers with products that will deliver value without compromising their ethical social values. Originality/value – The paper offers a balanced perspective on the significance of ethical consumers to international marketers. The analysis highlights a number of threats and opportunities that exist in the current global recession, and the discussion is illustrated with several examples of successful marketing ethics in action.

Distance factors and target market selection: the moderating effect of market potential : Table of Contents

Shavin Malhotra, K. Sivakumar, PengCheng Zhu — Sat Oct 24 08:00:20 BST 2009

Abstract:
Purpose – The paper is in the domain of marketing strategies of multinational firms. Specifically, it aims to focus on target market selection of multinational firms. Design/methodology/approach – Using the cultural, administrative, geographic, and economic distance framework proposed by Ghemawat, the authors offer empirical support for the role of different distance factors on firms' foreign market acquisition behavior. In addition, they examine the moderating role of market potential of a target country on the relationship between distance factors and target market selection. The context of the paper is multinational firms from developing countries. The sample consists of cross-border acquisitions (CBAs) completed by firms from 18 emerging countries between 1990 and 2006. The authors use ordinary least squares and moderated regression analysis to determine the main effect of distance factors and the interaction effect of market potential. Findings – The authors find that while cultural and geographic distance factors have a significant, negative impact on the number of CBAs, administrative and economic distances have a significant, positive effect. They also find that the market potential of target countries significantly moderates the relation between the distance factors and the number of CBAs. Research limitations/implications – The results show that the market potential of countries compensates and sometimes even overrides the role of distance. Future studies should expand this research to include industry-specific factors. Originality/value – The paper provides an empirical illustration of Ghemawat's distance framework. In addition, the paper highlights several boundary conditions of the impact of distance factors on firms' internationalization processes. Finally, the study enhances knowledge on foreign market entry behavior of firms from developing countries.

Affect and cognition as predictors of behavioral intentions towards services : Table of Contents

Anne Smith, Nina Reynolds — Sat Oct 24 08:00:20 BST 2009

Abstract:
Purpose – The purpose of this paper is to examine alternative approaches to measuring service evaluation across cultures. This paper aims to assess: differences between cognitive and affective measures and their ability to predict behavioral intentions and the impact of service features on these measures. Design/methodology/approach – A self-completion survey of African (East/West), Chinese, and English higher education students includes service quality, satisfaction, affect (emotions/feelings), and behavioral intentions scales relating to retail banking. Findings – For all groups, overall quality, satisfaction, and positive affect predict behavioral intentions. Negative affect is significant for English consumers. Differences across cultures are identified in the determinants of service evaluation, for example, assurance and responsiveness, but these are antecedents of affect and not of overall service quality or satisfaction. Research limitations/implications – The sample is drawn from cultural groups (based on Hofstede's individualism continuum) of higher education students in the UK. The implications for generalizability of findings to wider populations and the need to recognize the considerable diversity within the cultural sample groupings is emphasized. Practical implications – Service providers should include measures of affect in surveys which aim to assess the role of service features in overall evaluation and behavioral intentions towards the service. This will provide valuable data for managerial decision making and resource allocation. Cultural comparisons derived from cognitive-based Western measures may fail to identify elements of service quality which impact on behavioral intentions. Originality/value – No other studies have directly compared a range of alternative service-related measures as predictors of behavioral intentions across cultures, or included African consumers who are rarely represented in service evaluation studies.

A cultural paradox in authority-based advertising : Table of Contents

Jae Min Jung, Kawpong Polyorat, James J. Kellaris — Sat Oct 24 08:00:20 BST 2009

Abstract:
Purpose – The purpose of this paper is to examine an important exception to the “value congruity hypothesis,” which holds that advertising should be more effective when it is congruent with cultural values. It documents a paradoxical “reverse authority effect” among young adult consumers in traditionally high power distance (PD) countries. Design/methodology/approach – Two experiments were conducted using data from traditionally high (South Korea in Study 1, Thailand in Study 2) and low (USA in Study 1) PD countries. Data are analyzed by variance analyses (multivariate analysis of covariance, analyses of variance) and regression. Findings – Results show a reverse authority effect in Korea and attenuation of this effect in the USA (Study 1). Results also show a reverse authority effect in Thailand (Study 2), suggesting the generality of the effect across young consumers in traditionally high PD countries. It appears that a shift away from traditional cultural values has occurred in the course of modernization, as Western ideology gains popularity among young adult consumers in Eastern countries. Practical implications – Findings suggest that traditional national culture alone is not a good predictor of responses to authority-based ads. Rather, the extent to which a segment embraces or rejects traditional cultural values is more relevant. Originality/value – This paper documents a notable exception to the value congruity hypothesis, i.e. a negative effect of authority-based ads among young consumers in high PD cultures. It extends prior research and has implications for both theory and practice in global advertising.

Intra-organizational factors and market orientation: effects of national culture : Table of Contents

Ahmet H. Kirca, G. Tomas M. Hult — Sat Oct 24 08:00:20 BST 2009

Abstract:
Purpose – The purpose of this paper is to gain an increased understanding of the moderating role of national culture on the impacts of intra-organizational factors on market orientation. Design/methodology/approach – Using Schwartz's cultural value dimensions, the paper presents a set of propositions regarding the moderating effects of conservatism, intellectual autonomy, hierarchy, egalitarianism, and mastery dimensions of national cultural values on the relationships between market orientation and various intra-organizational variables including interdepartmental connectedness, top management emphasis, interdepartmental conflict, centralization, formalization, and market-based reward systems. Findings – National cultural values can determine the importance of various antecedents to market orientation. Originality/value – The conceptual framework presented in this paper contributes to the extant literature in market orientation by investigating the context dependent nature of the relationships involving market orientation and its antecedents in efforts to expand the theoretical knowledge base on the implementation of marketing concept in a global context.