Skyworth TV: channel dynamics and growth in China ' s rural market

2013 ◽  
Vol 3 (4) ◽  
pp. 1-22 ◽  
Author(s):  
Sherriff T. K. LUK ◽  
Ivy Siok Ngoh Chen ◽  
John Coombes
Keyword(s):  
Rural Areas ◽  
Consumer Behaviour ◽  
Emerging Market ◽  
Distribution Channels ◽  
Channel Network ◽  
Household Appliances ◽  
Content Type ◽  
Channel Dynamics ◽  
Brand Reputation ◽  
Rural Market

Title – Skyworth TV: channel dynamics and growth in China ' s rural market. Subject area – Marketing. Study level/applicability – Target audience this decision case has been tried and tested in a classroom setting with final-year undergraduate BBA students and postgraduate students studying an MSc in marketing. The specific course in which this case was used was marketing management in China. This case may also be suitable for an undergraduate or masters level courses in consumer behaviour, distribution management or marketing in China. The case covers environment analysis, market segmentation, consumer behaviour and distribution channels. Case overview – Skyworth, a Chinese manufacturer of television sets, was faced with some major decisions. Government subsidies on consumer purchases of household appliances had stimulated demand for TV sets especially in rural areas. However, there were limited distribution channels serving rural areas. Large-scale nationwide chain stores like Gome and Suning served mainly urban areas and top-tier cities. These retailer chains were less interested in selling TV sets as their profit margins were lower. How should Skyworth set up its distribution network to take advantage of the growth in rural markets? Establishing its own channel network would involve huge investments that would affect Skyworth ' s profits in the next few years. Relying on existing retailer chains may not give it the coverage it wanted. Skyworth ' s brand reputation had also suffered because of poor product quality and customer support. Can the distribution channel network help to improve its brand reputation and customer loyalty? This case highlights how government policies in China can shape the growth of the household appliance market and change consumption patterns. Expected learning outcomes – By studying this case, students will:1. Examine how environmental factors affect television manufacturers in China;2. Understand the buying behaviour of rural households for household appliances;3. Examine distribution channels in an emerging market;4. Evaluate a company ' s product portfolio strategy; and5. Suggest segmentation bases for the market for television sets in China. Supplementary materials – Teaching Notes are available for educators only. Please contact your library to gain login details or e-mail [email protected] to request teaching notes.

Skyworth TV: channel dynamics and growth in China's rural market

2013 ◽  
Vol 3 (4) ◽  
pp. 1-13
Author(s):  
Sherriff T.K. Luk ◽  
Ivy Siok Ngoh Chen ◽  
John Coombes
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Consumer Behaviour ◽  
Emerging Market ◽  
Distribution Channel ◽  
Distribution Channels ◽  
Channel Network ◽  
Household Appliances ◽  
Content Type ◽  
Brand Reputation

Subject area Marketing. Study level/applicability Target audience this decision case has been tried and tested in a classroom setting with final-year undergraduate BBA students and postgraduate students studying an MSc in marketing. The specific course in which this case was used was marketing management in China. This case may also be suitable for an undergraduate or masters level courses in consumer behaviour, distribution management or marketing in China. The case covers environment analysis, market segmentation, consumer behaviour and distribution channels. Case overview Skyworth, a Chinese manufacturer of television sets, was faced with some major decisions. Government subsidies on consumer purchases of household appliances had stimulated demand for TV sets especially in rural areas. However, there were limited distribution channels serving rural areas. Large-scale nationwide chain stores like Gome and Suning served mainly urban areas and top-tier cities. These retailer chains were less interested in selling TV sets as their profit margins were lower. How should Skyworth set up its distribution network to take advantage of the growth in rural markets? Establishing its own channel network would involve huge investments that would affect Skyworth's profits in the next few years. Relying on existing retailer chains may not give it the coverage it wanted. Skyworth's brand reputation had also suffered because of poor product quality and customer support. Can the distribution channel network help to improve its brand reputation and customer loyalty? This case highlights how government policies in China can shape the growth of the household appliance market and change consumption patterns. Expected learning outcomes By studying this case, students will: 1. Examine how environmental factors affect television manufacturers in China; 2. Understand the buying behaviour of rural households for household appliances; 3. Examine distribution channels in an emerging market; 4. Evaluate a company's product portfolio strategy; and5. Suggest segmentation bases for the market for television sets in China. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or e-mail [email protected] to request teaching notes.

Decision tree analysis of wine consumers’ preferences: evidence from an emerging market

2017 ◽  
Vol 119 (6) ◽  
pp. 1349-1361 ◽  
Author(s):  
Miomir M. Jovanović ◽  
Ljiljana Kašćelan ◽  
Miljan Joksimović ◽  
Vladimir Kašćelan
Keyword(s):  
Decision Tree ◽  
Rural Areas ◽  
Emerging Market ◽  
Cognitive Factors ◽  
Content Type ◽  
Urban Rural ◽  
Socio Demographic Factors ◽  
One Year ◽  
Practical Implications

Purpose The purpose of this paper is to analyse the interactive and individual influences of socio-demographic and behavioural-cognitive factors on the frequency and quality of wine consumption, as well as importance of the brand and advertising on selection. Design/methodology/approach The survey was prepared on the basis of the selected factors. The research was carried out on a sample of 207 randomly selected respondents. The analysis was done using the classification decision tree. Findings The results show the dominant influence of socio-demographic factors, such as region, place of living (urban-rural areas), family size, age, income and education of consumers as well as behavioural-cognitive factors, such as the price importance, place of purchase and product characteristics, in all analysed target variables. Apart from the similarities with traditional wine markets, the specificities related to an emerging market have also been determined. Research limitations/implications The limitations of this research concern sample size as well as the research conducted over the period of one year. Practical implications The practical objective of this paper is to help wine marketers to develop more effective positioning strategies for a specific emerging market. Originality/value This research combines critical factors based on related studies, including the antecedents and outcome variables, to develop more comprehensive models for better understanding of the wine consumers’ behaviour. In major and traditional wine-making countries, the consumption of wine is fairly predictable. In emerging markets, the commercial strategies are, for the most part, based on certain specificities and are quite interesting for the surveys.

Ethically minded consumer behaviour in Vietnam

2019 ◽  
Vol 31 (3) ◽  
pp. 609-626 ◽  
Author(s):  
Tri D. Le ◽  
Tai Anh Kieu
Keyword(s):  
Consumer Behaviour ◽  
Emerging Market ◽  
Measurement Instrument ◽  
Personal Characteristics ◽  
Consumer Ethics ◽  
Ethical Consumption ◽  
The Body ◽  
Content Type ◽  
Job Levels ◽  
The Impact

Purpose Consumer ethics in Asia has attracted attention from marketing scholars and practitioners. Ethical beliefs and judgements have been predominantly investigated within this area. Recent research argues for consumer ethics to be measured in terms of behaviours rather than attitudinal judgements, due to a potential pitfall of attitudinal scales, which researchers often refer to as an attitude–behaviour gap. Accordingly, the purpose of this paper is to examine the dimensions of ethically minded consumer behaviour (EMCB) in an Asian emerging market context. Design/methodology/approach A survey of 316 Vietnamese consumers was conducted to investigate their ethically minded behaviours. Findings The SEM analyses reveal a significant impact of long-term orientation on EMCB, whereas spirituality has no impact. Collectivism, attitude to ethically minded consumption and subjective norms are found to influence the dimensions of EMCB. Age, income and job levels have effects on EMCB dimensions, but gender, surprisingly, has no effect. Practical implications The study can be beneficial to businesses and policy makers in Vietnam or any similar Asian markets, especially in encouraging people to engage with ethical consumption. Furthermore, it provides practitioners in Vietnam with a measurement instrument that can be used to profile and segment consumers. Originality/value This is among the first studies utilising and examining EMCB, especially in Vietnam where research into consumer ethics is scant. It contributes to the body of knowledge by providing a greater understanding of the impact of personal characteristics and cultural environment on consumer ethics, being measured by the EMCB scale which has taken into account the consumption choices. Furthermore, this study adds further validation to the EMCB scale.

The mediation of trust in country-of-origin effects across countries

2014 ◽  
Vol 21 (2) ◽  
pp. 150-171 ◽  
Author(s):  
Nadia Jiménez ◽  
Sonia San Martín
Keyword(s):  
Emerging Markets ◽  
Purchase Intention ◽  
Emerging Market ◽  
Country Of Origin ◽  
Purchase Intentions ◽  
Content Type ◽  
Mediating Role ◽  
Brand Reputation ◽  
Negative Effect ◽  
Mature Market

Purpose – This paper aims to investigate if trust plays a mediating role on the country-of-origin (COO) brand reputation and consumer animosity effects in determining consumers’ purchase intentions in both emerging and developed markets. Design/methodology/approach – The paper opted for the structure equation modelling methodology to analyse data collected from 476 Spanish and Mexican car owners who evaluate American automobiles. Findings – The results show that in the emerging market economy, the COO's brand reputation influences trust and purchase intention more than in the mature market. Also, the results show that although trust plays an important role in different markets because it mediates the effect of COO's brand reputation on consumers’ purchase intention in both emerging and mature economies, it does not mediate the effect of animosity on purchase intention in the analysed developed economy. Research limitations/implications – The chosen category product presents the shortcoming of being of a hybrid nature regarding their manufacturing origin and research results may not be generalizable since we consider one product of one COO. Practical implications – COO's brand reputation is a key trigger of trust, and can substitute absent regulatory institutional elements, especially in emerging markets. In emerging markets, animosity could play an important role in explaining the rejection of foreign products, but the increase of trust could mitigate its negative effect on purchase intention. Originality/value – This study distinguishes the mediating role of trust between different interrelated COO variables and consumers’ purchase intentions in two different national contexts, and offers evidence that good COO's brand reputation building is crucial for international marketing success.

Candy Confectioneries Pvt Limited (CCL)

2017 ◽  
Vol 7 (1) ◽  
pp. 1-26
Author(s):  
Sajjan Singhvi ◽  
Gaurav Sharma ◽  
Rajat Gera
Keyword(s):  
Rural Areas ◽  
Sales Management ◽  
Distribution Channel ◽  
Channel Structure ◽  
Rural India ◽  
Channel Management ◽  
Content Type ◽  
Distribution Management ◽  
Rural Market ◽  
Market Coverage

Subject area Rural Marketing, Sales and Distribution Management, Salesperson Motivation, Channel Management. Study level/applicability The case can be used in sales management, channel management and rural marketing courses offered to graduate students of MBA degrees. In the sales management courses, the emphasis is on understanding the typical tasks that the rural salesperson is required to conduct. The case can be used to design a suitable motivation-mix for a rural salesperson after analysing their approach towards work. In a rural marketing course, the case can be used to understand the sales and distribution management of fast-moving consumer good products in rural India. The case can be used in channel management courses to design an appropriate channel structure in the rural market in India and utilized for managing the distributors’ salesforce for effective and improved market coverage in rural areas. Case overview Candy Confectioneries Private Limited started its operations in 1995, and was one of the largest confectionery players in India with a market share of 20 per cent. The company had achieved sales of Rs 20bn in 2014 and had 15 confectionery brands in the market. The company was also trying hard to establish itself in the snacks category. The company had nationwide operations, and it was important for the company to expand into the rural market. It served its markets through a comprehensive urban and rural distribution setup. In the rural distribution network, the rural sales representatives (RSRs) played a key role and perhaps were one of the most critical factors in covering the rural market. The RSR system was typical to suit the requirement of product-market coverage with its limitations. The case broadly profiles eight RSRs who were engaged to cover a specific territory in the State of Bihar in India. It also describes their approaches to work and complexities emerging thereof in achieving the best results for the organization. Expected learning outcomes The case has the following learning objectives: Understanding the design of sales and distribution channel structure followed for distribution and selling of confectionery products in rural India. Examining whether the existing system is adequate to achieve the goals of the firm. Evaluating the performance of each salesperson and identifying common factors to formulate the salesforce policies. Arriving at a suitable motivation-mix for the rural salesperson. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 8: Marketing.

Understanding Rural Retailer at the Base of the Fortune Pyramid

2015 ◽  
Vol 3 (2) ◽  
Author(s):  
Nilamadhab Mohanty
Keyword(s):  
Rural Areas ◽  
Market Development ◽  
Design And Implementation ◽  
Rural Market

The literature in the field of rural marketing has paid little attention to intra-rural transaction. However, approaches towards inclusive marketing and rural market development are incomplete without clarity on rural to rural transaction. In this article an attempt has been made to understand the rural to rural transaction in the context of rural retail units. Identification of the supportive features, appreciation of organizational limitations of the business, and design of alternative revenue options were found as three strategies adopted by rural retailers to build a profitable enterprise. Compatibility and desirability of the revenue alternatives have been discussed to be the indicators determining the importance of each of these strategies. Implications are discussed both for commercial ventures involved in rural marketing as well as for agencies concerned with the design and implementation of income generating programmes in rural areas.

Empirical analysis on corporate environmental performance and environmental disclosure in an emerging market context

2020 ◽  
Vol 15 (6) ◽  
pp. 1061-1082 ◽  
Author(s):  
Merve Acar ◽  
Hüseyin Temiz
Keyword(s):  
Environmental Performance ◽  
Emerging Market ◽  
Positive Association ◽  
Corporate Environmental Performance ◽  
Tobit Regression ◽  
Environmental Reporting ◽  
Environmental Disclosure ◽  
Significant Positive Association ◽  
Content Type ◽  
Environmental Disclosures

PurposeThe purpose of this study is to investigate the association between environmental performance of firms and the level of voluntary environmental disclosure in emerging markets.Design/methodology/approachWe used tobit regression OLS and t-test methods to reveal the association between environmental performance and the level of voluntary environmental disclosure.FindingsWe find a significant positive association between the level of discretionary environmental disclosures and corporate environmental performance. The result is in line with the arguments of economics disclosure theory that argues environmentally good performers disclose more.Practical implicationsMany of the environmentally good firms in Turkey are also listed in the “BIST Sustainability Index,” and this situation can be the result of the relative power of external regulations. Accordingly, it can be suggested to increase the community and governmental pressures for environmental reporting but also gives importance to increase intrinsic motivations for companies to engage in disclosure practices.Originality/valueThis study shed light on relation between environmental performance and environmental disclosure in an emerging market context. Also, it is revisited that the relation between environmental performance and the level of environmental disclosure by testing two different predictions on the level of environmental disclosures.

Mean reversion in corporate leverage: evidence from India

2019 ◽  
Vol 45 (9) ◽  
pp. 1183-1198
Author(s):  
Gaurav S. Chauhan ◽  
Pradip Banerjee
Keyword(s):  
Capital Structure ◽  
Emerging Market ◽  
Simulated Data ◽  
Mean Reversion ◽  
Developed Countries ◽  
Data Sets ◽  
Debt Ratio ◽  
Testing Strategy ◽  
Content Type ◽  
Financing Behavior

Purpose Recent papers on target capital structure show that debt ratio seems to vary widely in space and time, implying that the functional specifications of target debt ratios are of little empirical use. Further, target behavior cannot be adjudged correctly using debt ratios, as they could revert due to mechanical reasons. The purpose of this paper is to develop an alternative testing strategy to test the target capital structure. Design/methodology/approach The authors make use of a major “shock” to the debt ratios as an event and think of a subsequent reversion as a movement toward a mean or target debt ratio. By doing this, the authors no longer need to identify target debt ratios as a function of firm-specific variables or any other rigid functional form. Findings Similar to the broad empirical evidence in developed economies, there is no perceptible and systematic mean reversion by Indian firms. However, unlike developed countries, proportionate usage of debt to finance firms’ marginal financing deficits is extensive; equity is used rather sparingly. Research limitations/implications The trade-off theory could be convincingly refuted at least for the emerging market of India. The paper here stimulated further research on finding reasons for specific financing behavior of emerging market firms. Practical implications The results show that the firms’ financing choices are not only depending on their own firm’s specific variables but also on the financial markets in which they operate. Originality/value This study attempts to assess mean reversion in debt ratios in a unique but reassuring manner. The results are confirmed by extensive calibration of the testing strategy using simulated data sets.

scholarly journals Limiting role of resource dependence: an examination of director interlocks, board meetings and family ownership

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vidya Sukumara Panicker ◽  
Rajesh Srinivas Upadhyayula
Keyword(s):  
Board Of Directors ◽  
Resource Dependence ◽  
Family Firms ◽  
Emerging Market ◽  
Resource Provisioning ◽  
Independent Directors ◽  
Family Ownership ◽  
Independent Director ◽  
Content Type

PurposeThis paper attempts to examine the activity and involvement of board of directors in internationalization activities of firms in emerging markets, by evaluating the resource provisioning roles of interlocks provided by board of directors, and the frequency of board meetings. We demonstrate that the effectiveness of board involvement is contingent upon the levels of family ownership in firms since family ownership could impact the firm’s ability to utilize the presence of different types of board members.Design/methodology/approachThe authors test our hypotheses on a sample of listed Indian companies, extracted from the Prowess database published by the Centre for Monitoring Indian Economy (CMIE), a database of the financial performance of Indian companies. On a panel of 3,133 firm years of 605 unique Indian firms with foreign investments, over a time period of 2006–2017, the authors apply different estimation techniques.FindingsThe results demonstrate that both board meeting frequency and director interlocks are instrumental in supporting internationalization activities in emerging market firms. However, family ownership moderates the role of insider and independent interlocks on internationalization investments in different ways; the authors find that interlocks provided by independent directors support internationalization activities in family firms, whereas those provided by insider directors do not. Further, the study also finds that board meetings are less effective in internationalization of family firms.Practical implicationsThe authors conclude that family firms aiming at international diversification require to develop more connected and networked independent directors to enable internationalization in firms. While independent director interlocks enhance the international investments, it is also useful to know that board meetings are ineffective in utilizing the resources in family firms. This points to the possibility that family firms should device mechanisms to integrate family meetings with board meetings so that they can utilize the within-family processes to aid in their internationalization decisions.Originality/valueThe study contributes to resource dependence theory by understanding its limiting role in family firms. Theoretically, it helps delineate the limiting resource provision role of the insider directors vis-à-vis independent directors. The authors argue that the resource provision role of insider director interlocks does not effectively help in internationalization in comparison to independent director interlocks in family-dominated firms. Consequently, the study shows the limiting role of resource provision and utilization by family-owned firms in comparison to non-family-owned firms.

Loan officer rotation and credit access: evidence from Madagascar

2019 ◽  
Vol 80 (1) ◽  
pp. 51-67
Author(s):  
Yaw Sarfo ◽  
Oliver Musshoff ◽  
Ron Weber
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Frequency Effect ◽  
Content Type ◽  
Credit Access ◽  
Loan Officer ◽  
Microfinance Institution ◽  
Lending Decisions ◽  
Loan Officers ◽  
Loan Approval

Purpose With exclusive data from a commercial microfinance institution (MFI) in Madagascar, the purpose of this paper is to investigate if loan officer rotation (change of loan officer) has an effect on credit access (loan approval) in rural and in urban areas. The authors further analyze how the frequency of loan officer rotation affects credit access in rural and in urban areas. Design/methodology/approach The authors apply propensity score matching to compare credit access between loan applicants who experienced loan officer rotation and loan applicants who experienced no loan officer rotation in rural and in urban areas. Findings Results show that loan officer rotation has a positive and statistically significant effect on credit access. The authors observe further that loan officer rotation has a different effect on credit access in rural and in urban areas. Whilst rural loan applicants who experienced loan officer rotation are more likely to have credit access, urban loan applicants show no statistically significant effect of loan officer rotation on credit access. For the frequency effect on credit access, the authors observe that one loan officer rotation has a positive and statistically significant effect on credit access whereas results are mixed for two loan officer rotations. Research limitations/implications Even though the authors can show that loan officer rotation can improve credit access to loan applicants, especially in rural areas, the conditions in Madagascar are unique. Therefore, results need to be verified in other countries and institutional contexts. Practical implications From the perspective of MFI, the authors recommend that the management of MFI needs to provide better tools to loan officers to improve on the evaluation of agricultural loan products or standardize the assessment of agricultural loan products to improve on lending decisions. Further, if applicable, the authors recommend that MFI should consider using credit worthiness assessment procedures which rely less on loan officer’s judgment for loan evaluation, such as automated systems. From the perspective of loan applicants, the authors recommend that loan applicants should request for a change of loan officer if they experience successive loan applications rejection. Originality/value To the authors’ knowledge, this paper is the first to provide empirical evidence on the effect and frequency of loan officer rotation on credit access in Sub-Sahara Africa, and Madagascar, in particular.

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