Loyalty cards, credit options and economic market development

2020 ◽  
Vol 48 (6) ◽  
pp. 591-607
Author(s):  
Stephan Zielke ◽  
Marcin Komor
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Credit Cards ◽  
Emerging Countries ◽  
High Price ◽  
Private Debt ◽  
Content Type ◽  
Product Categories ◽  
Developed Markets

PurposeThis paper analyses three strategies in customers’ use to afford consumption in a developed and an emerging market for different product groups. The strategies are: (1) usage of loyalty cards, (2) usage of credit cards and (3) usage of long-term credits.Design/methodology/approachMall intercept surveys conducted in Poland (emerging market) and Germany (developed market) provide data for testing a set of hypotheses using ANOVAs.FindingsResults show that customers in emerging markets show no differences in the usage of loyalty cards for product categories with high shopping frequency (groceries) compared to developed markets, while in all other product categories loyalty card usage is stronger. Results show further that in low price categories, customers in emerging markets use credit card payments more often compared to customers in developed markets. In high price categories, they use credit cards less often, but long-term credits more often.Research limitations/implicationsResults have implications for the design of loyalty programs and payment options in different markets. Results have also implications for public policy regarding concerns about increasing private debt in emerging countries.Originality/valueThis paper suggests a cost-benefit framework where customers in emerging countries perceive benefits of loyalty cards and credit options higher, while they are willing to bear higher costs. As a result, effects of product category characteristics on usage that are observable in developed markets do not exist in emerging markets.

scholarly journals An Analysis and Comparison of Multi-Factor Asset Pricing Model Performance during Pandemic Situations in Developed and Emerging Markets

Mathematics ◽  
2022 ◽  
Vol 10 (1) ◽  
pp. 142
Author(s):  
Konstantin B. Kostin ◽  
Philippe Runge ◽  
Michel Charifzadeh
Keyword(s):  
Emerging Markets ◽  
Factor Model ◽  
Five Factor Model ◽  
Emerging Market ◽  
Model Performance ◽  
Research Area ◽  
Emerging Countries ◽  
Developed Markets ◽  
The Cost ◽  
Three Factor

This study empirically analyzes and compares return data from developed and emerging market data based on the Fama French five-factor model and compares it to previous results from the Fama French three-factor model by Kostin, Runge and Adams (2021). It researches whether the addition of the profitability and investment pattern factors show superior results in the assessment of emerging markets during the COVID-19 pandemic compared to developed markets. We use panel data covering eight indices of developed and emerging countries as well as a selection of eight companies from these markets, covering a period from 2000 to 2020. Our findings suggest that emerging markets do not generally outperform developed markets. The results underscore the need to reconsider the assumption that adding more factors to regression models automatically yields results that are more reliable. Our study contributes to the extant literature by broadening this research area. It is the first study to compare the performance of the Fama French three-factor model and the Fama French five-factor model in the cost of equity calculation for developed and emerging countries during the COVID-19 pandemic and other crisis events of the past two decades.

scholarly journals Subsidiary banks in emerging markets: how strong is the coordination on a group-wide basis?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Małgorzata Iwanicz-Drozdowska ◽  
Bartosz Witkowski
Keyword(s):  
Emerging Markets ◽  
Performance Management ◽  
Emerging Market ◽  
Robustness Analysis ◽  
Capital Adequacy ◽  
Series Data ◽  
Content Type ◽  
Financial Performance Measures ◽  
Asset Quality

PurposeThe parent-subsidiary nexus has been explored since the mid-1990s, but the extent to which subsidiaries resemble their parents remains unclear. Therefore, this study examines the performance drivers for subsidiary banks in emerging markets and their parents to determine the similarities between these groups. The findings could help identify key financial performance measures that should be included in global strategies for multinational banks operating in emerging markets.Design/methodology/approachThe study uses data on subsidiaries from 32 countries, including 20 European transitioning countries and 49 parent companies operating internationally from 1996 to 2015. It considers several models that distinguish between units using individual bank effects and the stochastic structure. In a robustness analysis, EU- and non-EU-based institutions are distinguished and long-term historical links between parents' and subsidiaries' countries are considered.FindingsCost control, capital adequacy and asset quality policies have similar importance for parent banks and subsidiaries and are strictly coordinated, whereas the remaining policies allow more flexibility. Subsidiaries in the EU and in countries that were politically and/or militarily influenced by parent countries do not “fall far from the tree”, which signals their strong group-wide integration and coordination.Research limitations/implicationsThis study covers a limited number of emerging market countries due to the limited availability of long-term series data. Future studies should include more countries.Originality/valueThis study identifies key financial measures used on a group-wide basis for performance management while accounting for long-term relations between host and home countries and the geopolitical characteristics of host countries.

What differentiates successful strategic marketing among manufacturers in an emerging vs developed market?

2018 ◽  
Vol 30 (2) ◽  
pp. 309-332 ◽  
Author(s):  
Roger Brooksbank ◽  
Zahed Subhan ◽  
Steven Miller
Keyword(s):  
Decision Making ◽  
Emerging Markets ◽  
Emerging Market ◽  
Strategic Marketing ◽  
Conventional Model ◽  
Content Type ◽  
Developed Markets ◽  
Marketing Decision ◽  
The Usa ◽  
Competitive Success

Purpose Emerging markets present strategists with a unique set of challenges that result from a business environment that is quite different from that which characterises developed markets. Yet, little is known about marketing’s contribution to successful strategic decision making in emerging markets. Thus, the purpose of this paper is to examine the usage of conventional strategic marketing practice, as it relates to developed markets, within groups of higher- and lower- performing manufacturers in the emerging market of India, comparing it against that of their counterparts in the developed market of the USA. Design/methodology/approach The study is based on separate web-hosted questionnaire surveys conducted in India and the USA, yielding samples of 71 and 84 self-reported manufacturing companies, respectively. Data analyses were conducted using independent-sample t-tests and logistic multiple regression, and sought to compare and contrast successful strategic marketing decision making in each country. Findings The results confirm that conventional strategic marketing plays a vital role in facilitating the competitive success of manufacturers in India. However, they also suggest that differences in the strategic environments faced by manufacturers in both countries necessitate quite different priorities for success at each stage of the strategic marketing decision-making process. Research limitations/implications Due to relatively low response rates, the extent to which the study samples are representative of the population under scrutiny remains unknown. Also, differences in the respondents’ interpretation of certain questions and some of the marketing vocabulary and terminology used cannot be ruled out. Practical implications The research highlights the important contribution that conventional strategic marketing makes to the achievement of competitive success of manufacturers in India. However, it also identifies several specific practices that differentiate higher firm performance in the two countries, drawing into question the direct applicability of the conventional model of strategic marketing within an emerging market. Originality/value As far as is known for the first time, the applicability of the conventional model of successful strategic marketing within an emerging market is assessed. As a result, a new model is forwarded.

An integrated-dynamic mode of entry model: global MNEs entering into emerging markets

2020 ◽  
Vol 30 (1) ◽  
pp. 97-107 ◽  
Author(s):  
Bolortuya Enkhtaivan ◽  
Zagdbazar Davaadorj
Keyword(s):  
Emerging Markets ◽  
Conceptual Model ◽  
Emerging Market ◽  
Integrated Approach ◽  
Policy Implications ◽  
Dynamic Mode ◽  
Content Type ◽  
Mode Of Entry ◽  
Entry Model

Purpose The purpose of this paper is to develop a conceptual model for the mode of entry in a particular case of global MNEs entering into emerging markets. Design/methodology/approach The conceptual model builds on institutional theory and follows an integrated approach of entry mode theories using bargaining theory, the liability of foreignness and local legitimacy. Findings The conceptual model introduces five propositions. Research limitations/implications The study has policy implications for emerging market institutions. Also, the model highlights the significance of long-term vision in global MNEs’ sustainability. However, the model excludes the MNEs’ internal institutions, home country institutions, as well as institutional and cognitive distances. Originality/value The conceptual model addresses the dynamics of MNEs’ entry decisions with long-term strategic vision. It helps to recognize the global MNEs’ internalization of the host country’s formal and informal institutions when the bargaining power is in imbalance.

How Consumer Mindset Response and Long-Term Marketing Effectiveness Differ in Emerging vs. Mature Markets

2015 ◽  
pp. 738-758
Author(s):  
Selin Erguncu ◽  
Gokhan Yildirim
Keyword(s):  
Emerging Markets ◽  
Brand Management ◽  
Emerging Market ◽  
High Price ◽  
Consideration Set ◽  
Marketing Effectiveness ◽  
Long Run ◽  
Time Period ◽  
Mature Market

This chapter develops a conceptual framework based on different dynamics in consumer attitudes. Empirical analysis seeks to illustrate this framework with emerging and mature market data for the same brands over the same time period. The results generate important implications, especially for brand management in emerging markets. First, the emotional brand connection, judged so important in mature markets, is substantially less important than securing the brand's spot in the consumers' consideration set. Second, emerging market consumers are more willing to seek out distribution channels for their brands, reducing the “compromised choice” due to less-than-perfect distribution coverage. Third, price is a double-edged sword in emerging markets: a high price benefits sales through consideration but hurts sales through liking. The net impact of these influences shapes the long-run sales effects of marketing. In particular, long-run advertising and price elasticity is higher, while long-run distribution elasticity is lower in emerging markets compared to mature markets.

How Consumer Mindset Response and Long-Term Marketing Effectiveness Differ in Emerging vs. Mature Markets

2014 ◽  
pp. 51-71
Author(s):  
Selin Erguncu ◽  
Gokhan Yildirim
Keyword(s):  
Emerging Markets ◽  
Brand Management ◽  
Emerging Market ◽  
High Price ◽  
Consideration Set ◽  
Marketing Effectiveness ◽  
Long Run ◽  
Time Period ◽  
Mature Market

This chapter develops a conceptual framework based on different dynamics in consumer attitudes. Empirical analysis seeks to illustrate this framework with emerging and mature market data for the same brands over the same time period. The results generate important implications, especially for brand management in emerging markets. First, the emotional brand connection, judged so important in mature markets, is substantially less important than securing the brand's spot in the consumers' consideration set. Second, emerging market consumers are more willing to seek out distribution channels for their brands, reducing the “compromised choice” due to less-than-perfect distribution coverage. Third, price is a double-edged sword in emerging markets: a high price benefits sales through consideration but hurts sales through liking. The net impact of these influences shapes the long-run sales effects of marketing. In particular, long-run advertising and price elasticity is higher, while long-run distribution elasticity is lower in emerging markets compared to mature markets.

Running out of steam on emerging markets? The limits of MNE firm-specific advantages in China

2018 ◽  
Vol 26 (3) ◽  
pp. 207-224 ◽  
Author(s):  
Louise Curran ◽  
Lee Keng Ng
Keyword(s):  
Emerging Markets ◽  
Market Entry ◽  
Multinational Enterprises ◽  
Market Access ◽  
Emerging Market ◽  
Local Networks ◽  
Content Type ◽  
Over Time

Purpose The purpose of this paper is to explore the extent to which the firm-specific advantages (FSAs) which underlie international expansion have proved resilient for European multinational enterprises (MNEs) operating in a key emerging market – China. Design/methodology/approach The authors adopt a qualitative, case study approach, using interview data to explore the companies’ FSAs on market entry, how they evolved over time and the strategies adopted to defend them. They undertook 15 in-depth interviews with decision makers in six companies addressing their experience since market entry. To control for sector-level effects, the authors focus on companies in the environmental protection sector. Findings The authors found examples of significant erosion of the FSAs among the case study companies, which undermined their position on the host market and their long-term competitiveness. The key sources of erosion were limitations in market access, exclusion from local networks and the emergence and upgrading of local competitors, often firms with whom the MNEs had collaborated in the past. Research limitations/implications The relatively small number of cases (six) limits the generalisability of the findings by the authors. However, the authors are convinced that, given that the case companies are generally large and have long experience in China, the conclusions made are well grounded. In addition, there was the high level of coherence in the reported experiences of the interviewees, providing further support for the findings. Practical implications The experience of these case study companies highlights that MNEs have difficulty retaining their unique FSAs when faced with rapidly evolving local competition in a key emerging market. Key strategies mobilised included focussing on a sub-sector of the market and localising both the company and their supply chains. The difficulties experiencing by these case study companies in retaining their FSAs underline the need for MNEs in emerging markets to avoid complacency and constantly innovate, but they also raise questions about their capacity to extend their international reach in the long term. Originality/value Very few studies have explored the FSAs of firms and how they evolve over time using a case study-based qualitative approach, especially in emerging markets.

Store image perceptions and customer knowledge cues in emerging markets

2016 ◽  
Vol 44 (12) ◽  
pp. 1182-1205 ◽  
Author(s):  
Mbaye Fall Diallo ◽  
Gérard Cliquet
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Personal Characteristics ◽  
Developed Countries ◽  
Emerging Countries ◽  
Store Image ◽  
Customer Knowledge ◽  
Content Type ◽  
Metropolitan Cities ◽  
Retail Chains

Purpose International retailers operating in different emerging countries should figure out how their store image is perceived across these countries and whether they should adapt or standardise the retail offer. The purpose of this paper is to investigate how store image is perceived across different emerging markets and how it relates to customer knowledge cues and personal characteristics. Design/methodology/approach A store-intercept survey undertaken in Brazil and Vietnam generated 505 usable responses from customers of two metropolitan cities (Brasilia and Hanoi), respectively, in Brazil and Vietnam. The questionnaires were collected in Extra (Brazil) and Big C (Vietnam) retail chains belonging both to the same group (Casino, France). Findings Overall, this paper reveals that emerging market customers assess positively modern retail stores and are concerned about services, merchandise, and store layout when shopping. More specifically, the results indicate differences and similarities between Brazilian and Vietnamese customers in terms of store image attributes, store image dimensions, and overall store image. Moreover, customer knowledge of retailers affects store image perceptions at different levels in both countries. Also, significant differences arise across age, gender, and education in both countries, but not across household income categories. Research limitations/implications Respondents were customers of only two emerging markets (Brazil and Vietnam) and shoppers of two retail chains (Extra and Big C). Caution should therefore be exercised when generalising the results to other emerging markets. Practical implications The paper shows both differences and similarities in store image perceptions in different emerging countries. Because store layout is more positively rated in Brazil than in Vietnam, retailers should be careful to that attribute. In both countries, to improve assortment perceptions, managers might focus on first price (budget) store brands, which can help diversify the assortment and attract less wealthy customers. The service dimension also demands careful management, but personnel training should mirror the local culture. Originality/value This research highlights differences and similarities between Brazilian and Vietnamese customers in terms of store image perceptions. It shows that store image mechanisms are similar in emerging countries as in developed countries. Furthermore, the paper is the first to relate store image perceptions to customer knowledge cues in emerging countries.

scholarly journals Corporate entrepreneurship of emerging market firms: current research and future directions

2019 ◽  
Vol 22 (1) ◽  
pp. 5-30
Author(s):  
Irem Demirkan ◽  
Qin Yang ◽  
Crystal X. Jiang
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
Corporate Entrepreneurship ◽  
Future Research ◽  
Future Directions ◽  
Content Type ◽  
Strategic Renewal ◽  
Developed Markets ◽  
Current State ◽  
Emerging Market Firms

Purpose The purpose of this paper is to examine the current state of corporate entrepreneurship (CE) of emerging market firms (EMFs) and provide direction for future research on the topic. Design/methodology/approach The authors specifically review the recent literature between the years 2000 and 2019 on CE with the keywords “corporate entrepreneurship,” “emerging economies” and “emerging countries” published in the Australian Business Deans Council list journals. The authors review the existing literature about CE in emerging markets, summarize current achievements and present an agenda for future research. Findings Based on the review, the authors categorized the macro and micro contexts of CE and summarized the current articles on CE in emerging markets within each macro and micro context. The authors conclude that despite the abundance of research on CE that investigates the three prongs of CE in terms of innovation, strategic renewal and new venturing in developed market contexts, there is a scarcity of literature that focuses on CE in emerging markets from a holistic perspective. Originality/value While there is an abundance of literature review on CE in general in terms of the drivers of the construct, the contexts contributing to it and the outcomes, the reviews are lacking about CE specifically within the context of emerging markets. Emerging markets vary from developed markets institutionally, economically, culturally, socially and technologically. However, the questions of how these differences impact the CE activities, as it relates to innovation, venturing and strategic renewal in EMFs, and how these differences provide incentives or hinder the activities that contribute to CE remain mostly unanswered. This paper reviewed the research on CE and emerging market contexts from 2000 to present. It targets to provide a better understanding of the current achievement on this topic and what to be done in the future.

The use and knowledge of export promotion programs in the early internationalization of Brazilian SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcelo André Machado ◽  
Viviane Bischoff
Keyword(s):  
Emerging Markets ◽  
Emerging Market ◽  
International Markets ◽  
Export Promotion ◽  
Internal Factors ◽  
Content Type ◽  
Domestic Markets ◽  
Early Internationalization ◽  
Developed Markets ◽  
Internationalization Strategy

PurposeThis paper aimed to evaluate the differences in the use and knowledge of export promotion programs (EPPs) between Brazilian SMEs that internationalized early and SMEs that internationalized in a gradual, traditional fashion. Additionally, it tested hypotheses that distinguish these two types of SME internationalization processes in an emerging market context.Design/methodology/approachThe authors tested four hypotheses in a sample of 540 SME Brazilian exporters. The sample was divided into two groups according to the born global (BG) criteria: 379 SMEs with gradual or traditional internationalization (TI) and 161 SMEs with early internationalization (EI).FindingsThe results indicate that Brazilian EI SMEs operate in more countries and continents than TI SMEs. In emerging countries such as Brazil, the domestic market continues to play an important role both for SMEs that internationalize early and those whose process is slower. Even though logistic regression could not classify the sample of TI and EI SMEs according to their knowledge about EPPs, the results led to the idea that EI SMEs currently use more specific EPPs than do TI SMEs.Practical implicationsManagers of successful SMEs from emerging markets need to incorporate EPPs into their internationalization strategy. In emerging markets with large domestic markets, SME managers can meet their growth needs by exploiting opportunities in both domestic and international markets.Originality/valueResearch on the early internationalization of SMEs has long focused on SMEs from developed markets and on internal factors. Moreover, the effects of EPPs on the firm' performance of large and SME firms has also been the subject of study. The value of this paper relies on the intersection of EPPs and the early internationalization of SMEs, even for firms in developed markets.

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