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Showing papers in "European Journal of Marketing in 1999"


Journal ArticleDOI
TL;DR: A review of the literature on consumer-perceived risk over the past 30 years can be found in this paper, where the authors identify and report the theoretical and model developments over this period and propose criteria which researchers can use in deciding the most useful model for their own research.
Abstract: Reviews the literature on consumer‐perceived risk over the past 30 years. The review begins by establishing perceived risk’s relationship with related marketing constructs such as involvement and trust. It then tackles some debates within the literature, concerning subjective and objective risk and differences between the concepts of risk and uncertainty. It describes how different models have been devised and operationalised to measure risk and how these have developed over the years. Aims to identify and report the theoretical and model developments over the past 30 years and to propose criteria which researchers can use in deciding the most useful model for their own research. The criteria are: understanding, prediction, suitability for reliability and validity assessment, practicality and usability. It is suggested that the basic two‐component model is still the most generally useful for researchers and practitioners alike.

1,394 citations


Journal ArticleDOI
TL;DR: In this paper, a large sample of customers from four different service industries was used to identify four dimensions of service loyalty: purchase intentions, word-of-mouth communication, price sensitivity, and complaining behaviour.
Abstract: In recent research on service quality it has been argued that the relationship between perceived service quality and service loyalty is an issue which requires conceptual and empirical elaboration through replication and extension of current knowledge. Focuses on the refinement of a scale for measuring service loyalty dimensions and the relationships between dimensions of service quality and these service loyalty dimensions. The results of an empirical study of a large sample of customers from four different service industries suggest that four dimensions of service loyalty can be identified: purchase intentions, word‐of‐mouth communication; price sensitivity; and complaining behaviour. Further analysis yields an intricate pattern of service quality‐service loyalty relationships at the level of the individual dimensions with notable differences across industries.

783 citations


Journal ArticleDOI
TL;DR: In this article, the authors present evidence that market-driven business units developed higher levels of six vital marketing capabilities (in the areas of market research, pricing, product development, channels, promotion, and market management) than their less market driven rivals and significantly outperformed these rival business units on four measures of organizational performance.
Abstract: Although progress has been made in understanding market‐driven businesses from a theoretical perspective, relatively few empirical studies have addressed the capabilities needed to become market‐driven and the performance advantages accruing to firms possessing these capabilities. One of the barriers faced has been in defining what is meant by the term “market‐driven”. Develops a multi‐dimensional measure useful for assessing the degree to which a firm is market‐driven. Presents evidence that market‐driven business units developed higher levels of six vital marketing capabilities (in the areas of market research, pricing, product development, channels, promotion, and market management) than their less market‐driven rivals and significantly outperformed these rival business units on four measures of organizational performance.

353 citations


Journal ArticleDOI
TL;DR: In this article, the authors investigate the factors that determine the degree of marketing orientation development and show that marketing orientation should be conceptualised synthetically since it represents the integration of a certain culture with specific behaviour.
Abstract: While a strong association between Marketing Orientation development and company performance has been established, the understanding of the Marketing Orientation remains unclear since some studies have suggested a philosophical nature for Marketing Orientation and some other studies concluded that Marketing Orientation represents a behavioural notion. As a result of this antithesis, research has not proceeded in the investigation on the factors that determine the degree of Marketing Orientation development. Shows that Marketing Orientation should be conceptualised synthetically since it represents the integration of a certain culture with specific behaviour. Closely examines the major determinants of Marketing Orientation development. Although exploratory in nature, suggests that Marketing Orientation development is determined by company‐specific, as well as by market‐specific factors with the former having a facilitating effect and the latter a coercive effect.

309 citations


Journal ArticleDOI
TL;DR: The authors compare phenomenology and grounded theory, two methods which are often treated as one and contrast them in relation to underpinning philosophies, procedures for sampling, data collection and techniques for analysis, suggesting that methods are personal and that researcher introspection and the philosophical basis of a given methodology should form the starting point for enquiry.
Abstract: The 1980s and 1990s have witnessed a growing application of qualitative methods, particularly in the study of consumer behaviour. This has led to some division between researchers on the basis of methodological orientation, or a positivist/interpretivist split. Much of the criticism regarding qualitative research centres on issues of clarity, methodological transgressions, and the mixing of methods without clear justification and explication of “why” and “how”. Offers the example of phenomenology and grounded theory, two methods which are often treated as one. Compares and contrasts them in relation to underpinning philosophies, procedures for sampling, data collection and techniques for analysis. Suggests that methods are “personal” and that researcher introspection and the philosophical basis of a given methodology should form the starting‐point for enquiry.

287 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examine the image effects generated and transferred by different categories of sponsorship such as sports, arts and the environment and test if such differentiation by sponsorship category may provide a useful guide to practitioners.
Abstract: Various elements of brand identity contribute to brand image development; however, the role of marketing communications is particularly important in achieving brand image effects. In the case of advertising, two separate elements of communications, a message and a medium, combine to deliver particular brand image values. In the case of sponsorship both the message and media elements are not separate, but are inextricably linked and imagery is delivered by association with particular activities and events. Presents the result of focus group research which sought to examine the images transferred by different categories of sponsorship, i.e. sports and arts. The results show that goodwill, which is generated amongst consumers as a result of corporate sponsorship involvement, varies by sponsorship category. The results have important implications for sponsorship managers in terms of the choice of sponsorship category and the manner in which sponsorship investments are leveraged. Introduction Commercial sponsorship represents one of the most rapidly growing sectors of marketing communications activity. The scale and recency of development in the sector is evidenced by the fact that world-wide sponsorship expenditure has increased from $2 billion in 1984 to $18.1 billion in 1997 (Sponsorship Research International, 1998). Growth in sponsorship expenditure has been driven by factors such as corporate desire for cost effective access to target markets, technological change as manifested in media developments and an increasing eventand leisure-oriented society. For the corporate user, sponsorship represents a highly versatile method of communication, capable of achieving a variety of objectives, largely in terms of communication effects, with a diversity of corporate publics. A particularly important sponsorship objective relates to the projection of brand imagery. While various image effects can be achieved through the usage of sponsorship, this paper seeks to examine the image effects generated and transferred by different categories of sponsorship such as sports, arts and the environment and to test if such differentiation by sponsorship category may provide a useful guide to practitioners. In effect, this paper seeks to examine the ``media effects'' of commercial sponsorship. The development of commercial sponsorship Sponsorship may have its origins in the patronage systems of earlier societies, but commercial sponsorship as it is experienced today is regarded by Media effect in commercial sponsorship 329 corporations as being similar to advertising in that sponsorship investments are made in order to fulfil particular commercial objectives. In effect the sponsor, in agreeing to sponsor a particular event or activity, is purchasing the rights to associate with the profile and image of the event and to exploit this association for commercial ends. Commercial sponsorship as a marketing activity has only developed over recent decades. This is indicated by the fact that total UK investment in this medium was only £4 million as recently as 1970 (Buckley, 1980). However by 1996 the scale of expenditure in the UK market had grown to £491 million (Mintel, 1997). On a world-wide basis, sponsorship expenditure has grown significantly in recent years and this is indicated by reference to Table I. This shows that in 1984 the world-wide sponsorship market was valued at $2 billion, but by 1997 this had risen to $18.1 billion, a growth in excess of nine-fold over the period. Europe and North America continue to dominate the world sponsorship market, each accounting for approximately 33 per cent of total world-wide expenditure (Sponsorship Research International, 1998). The estimates of sponsorship expenditure only refer to the costs of purchasing the property rights to events; effective sponsorship exploitation is of course reliant on support advertising and promotions to leverage the initial investment. Theoretical foundations of paper Traditionally image development in marketing has been discussed at three levels of analysis, namely corporate, retail and product/service. Increasingly the term ``brand'' is used generically to refer to the employment of marketing imagery at all these levels (Blackson, 1992; King, 1991). Analyses of marketing imagery of necessity distinguish between identity and imagery. Identity refers to the elements controlled and ``sent'' by the brand owner while image is essentially that which is received by the consumer. Identity and image inevitably differ as the consumer is the recipient of communication stimuli beyond those controlled by the brand owner. These stimuli will include Table I. World-wide sponsorship market Year Value ($ billion) 1984 2.

276 citations


Journal ArticleDOI
TL;DR: In this article, the authors present an analysis of 28 national and multi-national Canadian firms that had been involved in sport sponsorships at the national or international levels and argue that sport sponsorship should be considered a resource which can be the basis of competitive advantage.
Abstract: Presents the results of an analysis of 28 national and multi-national Canadian firms that had been involved in sport sponsorships at the national or international levels. Detailed interviews were conducted with senior marketing personnel in each company to determine how sponsorships were created and managed. Suggests that those firms which were successful had, either knowingly or fortuitously, developed their sponsorship into a distinctive competence and made it an intrinsic part of the overall marketing and communications mix. By contrast, those that were unsuccessful entered into sponsorship agreements on a more piecemeal basis with little thought of building a coherent marketing image. Sport sponsorship involves the allocation of scarce resources with the intent of achieving certain organisational objectives (Slack and Bentz, 1996). Consequently, it has frequently been described in the marketing literature as a strategic activity (Carter, 1996; Gilbert, 1988; Otker, 1988). The use of recent developments in the strategic management literature to provide insights that will further our understanding of sport sponsorship, as has been the case in the wider marketing field, therefore appears logical and germane. Unfortunately, this is an avenue of research that has been largely neglected. Although the linkages with strategic management have long been recognised in marketing research (e.g. Biggadike, 1981), similar connections are conspicuously absent in the sponsorship literature. In this paper, we attempt to address this void by extending our previous arguments that sponsorship agreements should be considered as strategic investments (cf. Amis et al., 1997). Specifically, we contend that any firm entering into a sponsorship agreement should treat its sponsorship as a resource which, either singly or in combination with other resources, can be developed into an area of distinctive competence which in turn can assist the firm to a position of sustainable competitive advantage. To this end, the remainder of the paper is divided into six sections. In the first of these we argue that sport sponsorship should be considered a resource which can be the basis of competitive advantage. In the next section we present arguments to suggest that for this advantage to be sustainable, the sponsorship The authors would like to acknowledge the assistance of Sport Canada for funding the research upon which this study is based.

263 citations



Journal ArticleDOI
TL;DR: In this paper, the authors identify consumer market segments existing among Turkish consumers by using lifestyle patterns and ethnocentrism, and find that non-ethnocentric Turkish consumers tend to have significantly more favorable beliefs, attitudes, and intentions regarding imported products than do ethnocentric Turkey consumers.
Abstract: Identifies consumer market segments existing among Turkish consumers by using lifestyle patterns and ethnocentrism. Data for the study were collected through personal interviews in Istanbul. Survey findings indicate that there are several lifestyle dimensions apparent among the Turkish consumers which had an influence on their ethnocentric tendencies. Non‐ethnocentric Turkish consumers tend to have significantly more favorable beliefs, attitudes, and intentions regarding imported products than do ethnocentric Turkish consumers. Using the lifestyle dimensions extracted, three distinct market segments were found. Consumers in the Liberals/trend setters customer market segment showed similar behavioral tendencies and purchasing patterns to consumers in western countries. The findings provide some implications to marketers who currently operate in or are planning to enter into Turkish markets in the near future.

249 citations


Journal ArticleDOI
TL;DR: In this paper, a modified laddering technique based on means-end theory is applied to use the elicited benefits to form benefit segments, and a comparison with attribute-based segments demonstrates that meansend chains provide a powerful tool for benefit segmentation.
Abstract: Although the basic idea of benefit segmentation lies in using causal, as opposed to descriptive, factors as segmentation criteria, most of the empirical studies do not differentiate between product attributes and the benefit sought by consumers. The objectives of this article are to clarify the distinction between attributes and benefits sought, and to apply a modified laddering technique, based on means‐end theory to use the elicited benefits to form benefit segments. A comparison with attribute‐based segments demonstrates that means‐end chains provide a powerful tool for “true” benefit segmentation.

241 citations


Journal ArticleDOI
TL;DR: In this paper, professional sports have emerged as a lucrative business, with many opportunities forsports marketers to flourish, and professional sports teams unite to produce a league product that, while initially being produced to provide entertainment for spectators, is now sold to four distinct groups: first, fans who support leagues by attending games, following games on television and other media, and purchasing league-and team-related merchandise; second, television, other media companies which purchase the right to show games as a programmingoption; third, communities which build facilities and support local clubs; and fourth, corporations which
Abstract: Keywords Consumer behaviour, Corporate ownership, Global marketing, Marketing strategy,Sponsorship, SportAbstract Professional sports have emerged as a lucrative business, with many opportunities forsports marketers to flourish. As this paper will show, professional sports teams unite to produce aleague product that, while initially is produced to provide entertainment for spectators, is now soldto four distinct groups: first, fans who support leagues by attending games, following games ontelevision and other media, and purchasing league- and team-related merchandise; second,television and other media companies which purchase the right to show games as a programmingoption; third, communities which build facilities and support local clubs; and fourth, corporationswhich support leagues and clubs by increasing gate moneys, purchasing teams outright, orproviding revenues through sponsorships or other associations. As a result, professional sportsleagues provide a unique environment for marketing decisions and processes to occur, in anumber of markets and at a number of levels, and should continue to be a growing segmentwithin the broader, global, entertainment industry.

Journal ArticleDOI
TL;DR: In this article, the authors discuss the elements of a broadened concept on internal marketing, which emerges from: a systematic review and examination of the existing literature; case study material; expert opinion from leading academics; and interviews with managers.
Abstract: Internal marketing has been of interest to practitioners and academics, in marketing and other disciplines of management, for some years, and published papers focus on definitions, the role of internal marketing in organisations, and various empirical investigations. Discusses the elements of a broadened concept on internal marketing, which emerges from: a systematic review and examination of the existing literature; case study material; “expert” opinion from leading academics; and interviews with managers.

Journal ArticleDOI
TL;DR: In this article, the authors examined the impact of different strategies of product placement on consumer reactions in the context of television advertising and concluded that product placements that play a passive role and are not clearly expressed within the program are perceived as less ethical, especially when they appear in information/services magazines.
Abstract: Reports the results of an experimental study that examines the impact of different strategies of product placement on consumer reactions in the context of television sponsorship. Four factors were manipulated: type of placement, sponsor’s image, type of television program and sponsor‐program congruity. Uses a factorial design comprising these four factors, which was operationalised by means of 12 brief written vignettes. Indicates that strategies of product placement impact differently on consumers’ evaluative and ethical judgements and that their effects interact with the type of television program. Suggests that evaluations of product placement are most negative in the context of mini‐series/drama television programs. Furthermore, product placements that play a passive role and are not clearly expressed within the program are generally perceived as less ethical, especially when they appear in information/services magazines. Also determines that sponsor‐program congruity leads to better ethical and evaluative consumer reactions for all types of television program considered except mini‐series/dramas. Implications for research and practice are derived from these results.

Journal ArticleDOI
TL;DR: In this article, the authors explore the meaning of the service concept in the management literature and find that there are clear dichotomies between providers' and customers' views of "service" and suggest ideas for marketing and management of services.
Abstract: Explores the richness of meaning that has grown up around the service concept in the management literature. Examines the subtleties which arise when “service” is used to denote industries, outcomes and processes, and explores more specific service concepts, such as the quality of service encounters and service experiences. Concludes that many of the concept’s ambiguities relate to the use of the word “service” and shifts of meaning which result. Indicates that there are clear dichotomies between providers’ and customers’ views of “service”. Parallel dichotomies can be found between the delivery and consumption of “core services” and the emotional/hedonic dimensions of service performance. Discusses the importance of these and suggests ideas for the marketing and management of services. In addition, develops a broad structural framework with which these ideas can be linked and identifies a number of new avenues of research.

Journal ArticleDOI
TL;DR: This article conducted an empirical analysis of the cultural differences between Australian and Japanese populations in a tourism context and found that the key cultural factors influencing Japanese holiday experiences in Australia are culturally determined perceptions of service and interpersonal relations with hosts.
Abstract: Presents the results of an empirical analysis of the cultural differences between Australian and Japanese populations in a tourism context. Argues that the challenge for tourism marketers lies in understanding the cultural make‐up of the Japanese market, and developing culture‐oriented marketing strategies. Identifies the major reasons for the decline in Japanese tourist arrivals to Australia. Compares the Japanese and Western cultural orientation. Describes and interprets the cultural dimensions identified by a principal components analysis. Determines the most critical cultural dimensions and their indicators by a LISREL analysis. The findings show that the key cultural factors influencing Japanese holiday experiences in Australia are culturally determined perceptions of service and interpersonal relations with hosts. Presents the impact of cultural traits on Japanese tourist perceptions of Australian service and interpersonal contact with hosts. Discusses the implications of these findings for tourism marketers.

Journal ArticleDOI
TL;DR: In this article, a modified version of the Welch and Luostarinen model is used as it provides a broad framework to study internationalisation of small to medium-sized manufacturing firms.
Abstract: The economic deregulation, in 1984, in New Zealand was followed by an influx of cheap imports which most affected the apparel industry. Firms which wanted to survive decided to export. Studies the dimensions of internationalisation of those firms. A modified version of Welch and Luostarinen’s model is used as it provides a broad framework to study internationalisation. Five case studies of small to medium‐sized manufacturing firms provide an overview of the dimensions of internationalisation and propose that a firm can be more internationalised in some dimensions than in others. Psychological and geographical distance still plays an important role in a firm’s internationalisation. The study confirms that regional trading agreements and economic deregulation have expedited the internationalisation of firms.


Journal ArticleDOI
TL;DR: In this article, the authors investigated three market-related factors' impact on line extension success, i.e., the level of competition in the market place, retailer power, and consumers' variety seeking behavior.
Abstract: Among the range of strategies available to a company, line extensions are an important way to keep a brand alive and to realize incremental financial growth. In order to be successful at introducing new extensions managers should understand line extensions’ key success factors. In this study three market‐related factors’ impact on line extension success were investigated, i.e. the level of competition in the market place; retailer power; and consumers’ variety seeking behavior. Data collected from 49 marketing and product managers in the fast‐moving consumer goods industry showed that line extensions have very little added value over existing products, and that cannibalization is very much related to a line extension’s success. Of all line extensions, those involving new flavors and new packaging/sizes were most successful. Extensions that improved product quality were found to be unsuccessful. The market‐variables: level of competition; retailer power; and variety seeking behavior all had a negative influence on line extension success. Dominant brands were hurt more by variety seeking behavior’s negative impact than less dominant brands.

Journal ArticleDOI
TL;DR: In this article, the authors present a case study of how image can serve as the basis for decisions and action within the domain of sports management. And they suggest some specific principles, tools and methods which can be applied to this overall process.
Abstract: Aimed at the managers of sports organisations and sponsorship relationships who are seeking a useful information system to assist in their marketing decisions. Sets out to analyse how image can create value for sports organisations. It can contribute to the enhancement of their ``brand equity'', and bring about changes in consumer behaviour. The first section of this paper seeks to promote the understanding of image as a concept useful for such managers. The second section illustrates, through case studies, how image can serve as the basis for decisions and action within the domain of sports management. We suggest some specific principles, tools and methods which can be applied to this overall process.


Journal ArticleDOI
TL;DR: In this article, the authors discuss the validity of classifying transaction and relationship exchanges according to whether the selling firm is operating in consumer or industrial markets, and suggest that the interaction and network approach can be applied to consumer markets, showing that both transaction and relationships may coexist in all markets, regardless of the product/service sold or client/ market served.
Abstract: Discusses the validity of classifying transaction and relationship exchanges (and marketing theories) according to whether the selling firm is operating in consumer or industrial markets. It is only recently that relationship marketing, and thus the exchange relationship paradigm, has started to become an alternative approach to consumer markets. Aims at understanding if the work of the Industrial Marketing and Purchasing (IMP) can be applied to end‐user consumer markets. There is a series of reasons behind this decision; however, the most relevant one is trying to bring a very extensive body of theoretical work within the realm of consumer marketing. First, lists the interaction and network approach assumptions (to be associated with the concept of exchange relationships), next, analyzes and reformulates these assumptions and finally, suggests that the interaction and network approach can be applied to consumer markets, showing that both transaction and relationship exchanges may co‐exist in all markets, regardless of the product/service sold or client/ market served.

Journal ArticleDOI
TL;DR: The authors discusses the relationship between codified marketing theory and practical strategic marketing expertise, particularly with respect to the importance of "tacit" or unarticulated knowledge, and concludes that an epistemology of expertise for marketing management demands both theoretical and linguistic sophistication and implies a pedagogic shift towards a model of philosophic enquiry.
Abstract: Discusses issues concerning the relationship between codified marketing theory and practical strategic marketing expertise, particularly with respect to the importance of “tacit” or unarticulated knowledge. The trajectory of argument draws attention to the role of words as symbolic modelling devices and explores implications of this position for theorising marketing expertise. Makes use of a multidisciplinary perspective and draws material from work in cognitive science, the psychology of expertise and the philosophy of science. Sets the problematisation of practical theory in marketing within a broader context of a possible epistemological “crisis” of rationality in practical disciplines. The conclusion suggests that an epistemology of expertise for marketing management demands both theoretical and linguistic sophistication and implies a pedagogic shift towards a model of philosophic enquiry in marketing.

Journal ArticleDOI
TL;DR: The impact on consumer attitudes of the zenith of the bovine spongiform encephalopathy (BSE) scare of 20/21 March 1996 is explored in this article.
Abstract: Explores the impact on consumer attitudes of the zenith of the bovine spongiform encephalopathy (BSE) scare of 20/21 March 1996. Considers implications for consumer behaviour and marketing communications for the meat industry through exposition of a uniquely timed consumer survey. An initial survey of meat consumers’ attitudes, ethics and habits in Central Scotland was ongoing just prior to the March 1996 media coverage. Following the Government’s announcement of a link between BSE and Creutzfeldt‐Jakob disease (CJD) an opportunistic follow‐up survey was conducted immediately. In all 50 of the original sample were traced and re‐surveyed within three days. Suggests that the scare had reduced levels of trust in information sources, and the faith expressed in products and control measures was ambivalent. Considers marketing and communication implications and scenarios.

Journal ArticleDOI
TL;DR: In this article, the authors examined how perceived product safety may be affected by such product-related factors as price, brand name, store name, promotion channels, source credibility, country of origin, nature of product testing authority and warranty.
Abstract: Examines how perceived product safety may be affected by such product‐related factors as price, brand name, store name, promotion channels, source credibility, country of origin, nature of product testing authority and warranty. Shows that perceived product safety was significantly affected by all of the variables mentioned above. Implies that, by carefully manipulating these variables in formulating marketing strategies, managers can attract the large and growing market of safety‐conscious consumers and gain a competitive edge that cannot possibly be ignored.

Journal ArticleDOI
TL;DR: In this paper, an empirical study concerning the market orientation of various types of Chinese enterprises based on their size, location, ownership and sector is presented. But the study is limited to three types of enterprises: small, medium, and large enterprises.
Abstract: As China moves from a command economy to one more directed by customer demands, its enterprises must acquire an entirely new understanding of the purpose of business. The marketing concept appears to offer an approach to management that is dramatically new to China but much needed in its current state of development. Reports the results of an empirical study concerning the market orientation of various types of Chinese enterprises based on their size, location, ownership and sector. The data suggest substantial differences between the various types of operations. Since the existing literature relating to market orientation is devoted almost exclusively to Western business settings, this study provides benchmark data that may be used to track the evolution of an economy that is in the midst of a dramatic economic transition.

Journal ArticleDOI
TL;DR: In this article, a survey of 42 international joint ventures in Bahrain, respondents ranked partner related factors as significantly more important than task factors in selecting a partner, and the existence of partner-related factors as a separate construct is also confirmed by factor analysis.
Abstract: Argues that the motivation involved in partner selection must be distinguished from the motivation to enter into a joint venture; the latter may be considered the “ends” dimension of motivation while the former is concerned with “means”. Thus it is important to distinguish between “task related” factors and “partner related” factors in analyzing the partner selection process. Based on a survey of 42 international joint ventures in Bahrain, respondents rank partner related factors as significantly more important than task factors in selecting a partner. The existence of partner related factors as a separate construct is also confirmed by factor analysis. Further, shows that respondents’ factor scores on four factors are significantly related to the corporate history and characteristics of the corporate partner, and to the personal characteristics of the Chief Executive Officer.


Journal ArticleDOI
TL;DR: This paper investigated the relationship between print advertisement wording and consumer interest in relation to cell phone promotion and reported on an experiment involving two independent variables: message framing and felt involvement levels, showing how these variables interact regarding attitudes towards cell phones for a New Zealand sample.
Abstract: Investigates the relationship between print advertisement wording and consumer interest in relation to cell phone promotion. Reports on an experiment involving two independent variables: message framing and felt involvement levels. Shows how these variables interact regarding attitudes towards cell phones for a New Zealand sample. These findings provide new insights as well as support for previous empirical research. Discusses theoretical and managerial implications and directions for future research.

Journal ArticleDOI
TL;DR: In this paper, the authors examine the behavioural implications of three main microeconomic explanations for franchising, resource constraint, agency theory and search cost theory, along with the empirical evidence found to support them.
Abstract: Examines the behavioural implications of the three main micro‐economic explanations – resource constraint, agency theory and search cost theory – for franchising. Reviews these theories, along with the empirical evidence found to support them. Highlights the implications of each explanation upon relational quality using four relational characteristics drawn from Macneil. Uses the characteristics of power balance, anticipation of trouble, sense of unity and presentation of costs and benefits. Argues that since the motivation to franchise depends upon the specific strategy employed by the franchisor, then relational quality will legitimately differ according to franchisor strategy. Describes a model drawn by linking strategic direction, franchise motivation and relational quality. Some illustrative propositions are derived from the model. Discusses the implications of the theory for both researchers and managers.

Journal ArticleDOI
TL;DR: In this article, the authors present and analyse data relating to small businesses in Australia which currently export or which plan to export, and provide recommendations as to how to increase the participation rate of small business in the growing global economy.
Abstract: Business, management, workers and governments are responding to global imperatives. These imperatives include marketing. The origins of global marketing lie in exporting. Presents and analyses data relating to small businesses in Australia which currently export or which plan to export. Thirty‐five per cent of small businesses which consider it feasible to export have no plans to do so. The reasons for this export rejection are analysed. Other critical factors such as motivation to export; source of expert advice; and problems experienced with developing export markets are also reported and analysed. Provides recommendations as to how to increase the participation rate of small business in the growing global economy.