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Book ChapterDOI

Retailing in Emerging Markets

TL;DR: In this paper, the authors analyse what the successful retailers have done right and why is it that when retailers try to expand into emerging markets, fail. But historical data suggests that there are more failure stories known to us than success stories.
Abstract: Emerging markets are more than a lucrative business opportunity for retailers in developed markets today. Retailers today see emerging markets as an irresistible opportunity to go global. Opportunities and growth rate of emerging economies provide a perfect platform for modern and traditional retailers to grow and expand their business. These markets are viewed as a fuel which will drive a retailer’s growth. But historical data suggests that there are more failure stories known to us than success stories. In this chapter, we are going to understand and analyse what the successful retailers have done right and why is it that when retailers try to expand into emerging markets, fail.
Citations
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Book ChapterDOI
01 Jan 2020
TL;DR: In this article, the impact of direct marketing on consumer behavior in emerging markets is discussed, focusing on the degree to which customers accept direct communication as a substitute and complement of indirect communication for buying at a traditional store or an online platform.
Abstract: The advent of several traditional and non-traditional communications has prompted many manufacturers and retailers in emerging economies to redesign their traditional marketing channel structures by engaging in direct marketing routes. This chapter demonstrates the impact of direct marketing on consumer behaviour in emerging markets. We primarily illustrate how direct marketing affects the degree to which customers accept direct communication as a substitute and complement of indirect communication for buying at a traditional store or an online platform. In this chapter, we develop the related theory, a scholastic argument, and bring several propositions related to direct marketing effects in emerging economies.

1 citations

References
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Journal ArticleDOI
TL;DR: In this paper, the authors propose a conceptual model of the antecedents, impediments, and firm consequences of customer engagement and relate this model to seven articles appearing in the special issue on customer engagement.
Abstract: Since 2000, customer management (CM) research has evolved and has had a significant impact on the marketing discipline. In an increasingly networked society where customers can interact easily with other customers and firms through social networks and other new media, the authors propose that customer engagement is an important new development in CM. Customer engagement is considered as a behavioral manifestation toward the brand or firm that goes beyond transactions. The authors propose a conceptual model of the antecedents, impediments, and firm consequences of customer engagement and relate this model to seven articles appearing in the special issue on customer engagement.

855 citations

Journal ArticleDOI
TL;DR: In this article, the authors investigate the influence of advertised reference price and sales price as anchor points on the latitude of expected price, and subsequently on purchase intention (PI) in a situation where price estimation task is a non-thoughtful process.
Abstract: Purpose This paper aims to investigate the influence of advertised reference price (ARP) and sales price (SP) as anchor points on the latitude of expected price, and subsequently on purchase intention (PI). The research involves the theoretical lens of selective anchoring mechanism, which allows investigation of the influence of ARP and SP in a situation where price estimation task is a “non-thoughtful processes”. Design/methodology/approach On the basis of quasi-experimental design, the study involves intercept survey of 142 shoppers. Findings The study finds that due to anchoring effect, the highest and the lowest expected prices shift toward ARP and SP, respectively. Consequently, it influences the latitude of expected price, which in turn influences purchase intention. In addition, the study proposes and tests a method to forecast expansion and contraction of the latitude of expected price. Research limitations/implications It suggests a new mechanism to understand the simultaneous influence of ARP and SP, provides a mechanism to understand shifts in price latitude’s end-points and investigates a phenomenon with two externally provided anchors. Practical implications The study highlights the role of the latitude of expected price in understanding consumers’ response. Results suggest that a plausible ARP, when joined with an above-expectation SP, can fetch better consumer responses. Originality/value The study uniquely investigates a problem with two anchor points and two estimation targets, and proposes a construct of internal price uncertainty (IPU).

12 citations

Journal Article
TL;DR: Chitturi, Raghunathan and Mahajan as discussed by the authors pointed out that utilitarian addition to hedonic base product was perceived less favorably than the hedonicity addition implying assimilation theory or goal congruence.
Abstract: INTRODUCTIONPrior researches suggest that majority of consumption behavior is guided by hedonic and utilitarian dimensions of a choice outcome (Hirschman and Holbrook, 1982; Batra and Ahtola, 1991; Dhar and Wertenbroch, 2000; Khan, Dhar and Wertenbroch, 2004; and Chitturi, Raghunathan and Mahajan, 2008). For instance, Batra and Ahtola (1991) note, "consumers purchase goods and services and perform consumption behavior for two basic reasons: (1) consummatory affective (hedonic) gratification (from sensory attributes); and (2) instrumental (utilitarian) reasons". While hedonic reasons for purchasing a product are primarily driven by its aesthetic appeal, enjoyment and multisensory experience, utilitarian reasons for purchase are derived from its functional and practical attributes. Similarly, Dhar and Wertenbroch (2000) argue that these two dimensions-hedonism and utilitarianism-are not necessarily treated as a dichotomy but depend on the individuals' discretion to their choice outcome. Hence, reasons for purchase may primarily be guided by either hedonic or utilitarian motives because of the different attributes and usage of a product. For example, in case of a mobile handset, hedonic reason of purchasing it may be cited as its use for talking to a friend where as utilitarian reason may be attributed to its use for facilitating business work. At the same time, product attributes can be said to be more hedonic or more utilitarian from the consumer's perspective. For instance, the color of the mobile handset and data storage capacity can be referred as hedonic and utilitarian attributes respectively. Chitturi, Raghunathan and Mahajan (2008) mention that battery life and sound quality of the handset provide more utilitarian benefits, while its aesthetic features like the shape and color of the handset exhibit more hedonic benefits. Therefore, considering and extending prior research approached (Crowley, Spangenberg and Hughes, 1992; Voss, Spangenberg and Grohmann, 2003; and Okada, 2006), it has been postulated that reasons for purchasing a product and its attributes can be classified as more hedonic or more utilitarian which is consistent with the prior classification made to the product or its attributes as high or low on hedonic and utilitarian dimensions in marketing literature.It has been found that addition of objective attributes cannot be sufficient while designing a new product; it is required to consider the subjective attributes too (Luo, Kannan and Ratchford, 2008). There has been research work done recently to show that highlighting hedonic benefits of a utilitarian product enhances consumer's favorable attitude towards a product (Lim and Ang, 2008). Similarly, Gill (2008) states that hedonic attribute added to a utilitarian base product increases consumers' favorable attitude towards the product but attitude remains constant when more utilitarian attribute is added to the utilitarian base product. The authors conclude this to be a result of the mismatch between the product and the features resulting in a consumer's favorable attitude towards the product, thereby exhibiting contrast theory or goal incongruence. At the same time, Gill (2008) pointed out that utilitarian addition to hedonic base product was perceived less favorably than the hedonic addition implying assimilation theory or goal congruence. There is little work which shows direction and provides a link between reasons for purchase and features of the product. Thus, by applying the principle of assimilation theory, the authors assume that hedonic (utilitarian) reasons for purchase may be influenced more by hedonic (utilitarian) attributes of the product. Similarly, in case of contrast theory, the authors assume that hedonic (utilitarian) reasons for purchase will be influenced by utilitarian (hedonic) attributes of the product. But, does it really happen given consumer decision making process is complex? Investigating this question seems will inform theory and practice in a great detail. …

6 citations

BookDOI
03 May 2017
TL;DR: Adhikari et al. as discussed by the authors presented a case study of strategic marketing cases in emerging markets, where the first € price and the £ and $ price are net prices, subject to local VAT.
Abstract: The first € price and the £ and $ price are net prices, subject to local VAT. Prices indicated with * include VAT for books; the €(D) includes 7% for Germany, the €(A) includes 10% for Austria. Prices indicated with ** include VAT for electronic products; 19% for Germany, 20% for Austria. All prices exclusive of carriage charges. Prices and other details are subject to change without notice. All errors and omissions excepted. A. Adhikari, S.K. Roy (Eds.) Strategic Marketing Cases in Emerging Markets

5 citations

Journal ArticleDOI
TL;DR: In this paper, the incremental effect on consumers' willingness to pay in a context where an adjacent price is present, for instance, when a medium priced brand is associated with a high price brand than a moderately high priced brand.
Abstract: Psychological researchers, while studying internal reference price, have dealt with different types of psychological effects like attraction effect and compromise effect. While studying consumer reference price and willingness to pay, marketing researchers have focused on consumers’ perception about a brand by evaluating several attributes of that brand. Our research investigates the incremental effect on consumers’ willingness to pay in a context where an adjacent price is present, for instance, when a medium priced brand is associated with a high price brand than a moderately high priced brand. Unlike other pricing research, this research deals with consumer’s individual level heterogeneity as price sensitivity and consumers’ willingness to pay for a particular brand since they vary among individual. Hierarchical Bayes methodology is used to incorporate such heterogeneity. The study shows significant difference in consumers’ utility and her willingness to pay when a medium priced brand is compared with a high priced brand as against a moderately high priced brand.

2 citations

Trending Questions (1)
Why would a retail company from developed country expand in an emerging country?

A retail company from a developed country would expand in an emerging country to take advantage of the opportunities and growth rate in those markets.