Pub Date : 2022-10-08DOI: 10.1177/1069031X221134495
Miao Hu, Jie Chen, D. Alden, Qimei Chen
Prior research in international markets has yielded two seemly opposing views regarding customer engagement with local/domestic versus foreign-made brands: a preference for foreign brands based largely on country-of-origin effects or a preference for local/domestic brands based primarily on consumer ethnocentrism. In the present research, the authors contextualize the investigation across international markets and propose that, in two national markets with different cultural characteristics, a combination of local and foreign appeals leads to more favorable brand and product evaluations, compared with either local or foreign appeals alone, due to a heightened level of perceived brand globalness, a phenomenon called “the coalescence effect.” The authors report results from seven studies conducted in China and the United States and discuss ways to design branding strategies that enhance customer engagement in an era of intensified global competition.
{"title":"The Coalescence Effect: How a Combination of Foreign and Local Appeals Enhances Customer Engagement Through Perceived Brand Globalness","authors":"Miao Hu, Jie Chen, D. Alden, Qimei Chen","doi":"10.1177/1069031X221134495","DOIUrl":"https://doi.org/10.1177/1069031X221134495","url":null,"abstract":"Prior research in international markets has yielded two seemly opposing views regarding customer engagement with local/domestic versus foreign-made brands: a preference for foreign brands based largely on country-of-origin effects or a preference for local/domestic brands based primarily on consumer ethnocentrism. In the present research, the authors contextualize the investigation across international markets and propose that, in two national markets with different cultural characteristics, a combination of local and foreign appeals leads to more favorable brand and product evaluations, compared with either local or foreign appeals alone, due to a heightened level of perceived brand globalness, a phenomenon called “the coalescence effect.” The authors report results from seven studies conducted in China and the United States and discuss ways to design branding strategies that enhance customer engagement in an era of intensified global competition.","PeriodicalId":48081,"journal":{"name":"Journal of International Marketing","volume":"31 1","pages":"49 - 68"},"PeriodicalIF":5.8,"publicationDate":"2022-10-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41513899","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-20DOI: 10.1177/1069031X221130690
C. Connell, R. Marciniak, Lindsey Carey
Today's technology-enabled customer with instant access to a global marketplace has led to firms facing intense competition from around the world. As a result, customer engagement has emerged as an important marketing strategy and for more than a decade has fueled intense attention from academe and professionals. However, despite this focus, there is a paucity of research considering customer engagement in a cross-cultural context. This exploratory study provides empirical clarification as to whether culture at a national level impacts the manifestation of specific customer engagement behaviors exhibited by customers engaged with a brand. A conceptualization of customer engagement behaviors according to Hofstede's six dimensions of culture is presented, and a netnographic study focusing on an online brand community reveals that while national culture exerts no impact on the behaviors of engaged customers, the culture associated with a brand does. These findings serve as a foundation for future academic inquiry and present the opportunity for managers to foster and nurture a brand culture that encourages customer engagement.
{"title":"The Effect of Cross-Cultural Dimensions on the Manifestation of Customer Engagement Behaviors","authors":"C. Connell, R. Marciniak, Lindsey Carey","doi":"10.1177/1069031X221130690","DOIUrl":"https://doi.org/10.1177/1069031X221130690","url":null,"abstract":"Today's technology-enabled customer with instant access to a global marketplace has led to firms facing intense competition from around the world. As a result, customer engagement has emerged as an important marketing strategy and for more than a decade has fueled intense attention from academe and professionals. However, despite this focus, there is a paucity of research considering customer engagement in a cross-cultural context. This exploratory study provides empirical clarification as to whether culture at a national level impacts the manifestation of specific customer engagement behaviors exhibited by customers engaged with a brand. A conceptualization of customer engagement behaviors according to Hofstede's six dimensions of culture is presented, and a netnographic study focusing on an online brand community reveals that while national culture exerts no impact on the behaviors of engaged customers, the culture associated with a brand does. These findings serve as a foundation for future academic inquiry and present the opportunity for managers to foster and nurture a brand culture that encourages customer engagement.","PeriodicalId":48081,"journal":{"name":"Journal of International Marketing","volume":"31 1","pages":"32 - 48"},"PeriodicalIF":5.8,"publicationDate":"2022-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45086960","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-20DOI: 10.1177/1069031X221130740
Ayşegül Özsomer, Bernard L. Simonin, Timo Mandler
Multinational corporations (MNCs) must balance opportunity-seeking initiatives locally with global programs and imperatives. This balancing act between generating and responding to local insights and exploiting standardized marketing programs calls for some form of marketing agility. Under this lens, this study investigates the relationship between market orientation (MO) and marketing program standardization (MPS)—two critical marketing capabilities—and their dual effects on subsidiary performance. The authors compare the cases of Western MNCs’ subsidiaries operating in Japan and Turkey and inquire about the moderating role of a country's economic development (advanced vs. emerging market) and an industry's global competitive interdependence. Analyzing MO at the subcomponent level, they find a positive relationship between responsiveness and MPS in both markets. MPS also functions as a partial mediator between responsiveness and profitability in an advanced market. In an advanced market, both responsiveness and MPS are positively related to profitability and market share. In an emerging market, MPS is negatively related to profitability in support of adapting the marketing program. The results and follow-up discussions with executives from established MNCs support the conceptualization of MO and MPS as reflections of international marketing agility in subsidiaries.
{"title":"Marketing Agility in Subsidiaries: Market Orientation and Marketing Program Standardization as the “Twin Engines” of Performance","authors":"Ayşegül Özsomer, Bernard L. Simonin, Timo Mandler","doi":"10.1177/1069031X221130740","DOIUrl":"https://doi.org/10.1177/1069031X221130740","url":null,"abstract":"Multinational corporations (MNCs) must balance opportunity-seeking initiatives locally with global programs and imperatives. This balancing act between generating and responding to local insights and exploiting standardized marketing programs calls for some form of marketing agility. Under this lens, this study investigates the relationship between market orientation (MO) and marketing program standardization (MPS)—two critical marketing capabilities—and their dual effects on subsidiary performance. The authors compare the cases of Western MNCs’ subsidiaries operating in Japan and Turkey and inquire about the moderating role of a country's economic development (advanced vs. emerging market) and an industry's global competitive interdependence. Analyzing MO at the subcomponent level, they find a positive relationship between responsiveness and MPS in both markets. MPS also functions as a partial mediator between responsiveness and profitability in an advanced market. In an advanced market, both responsiveness and MPS are positively related to profitability and market share. In an emerging market, MPS is negatively related to profitability in support of adapting the marketing program. The results and follow-up discussions with executives from established MNCs support the conceptualization of MO and MPS as reflections of international marketing agility in subsidiaries.","PeriodicalId":48081,"journal":{"name":"Journal of International Marketing","volume":"31 1","pages":"6 - 24"},"PeriodicalIF":5.8,"publicationDate":"2022-09-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45121378","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-14DOI: 10.1177/1069031X221129554
Risqo M. Wahid, Heikki Karjaluoto, Kimmo Taiminen, Diah Isnaini Asiati
This study examines the effects of content characteristics (i.e., informational and emotional characteristics), language, and nonverbal information on social media engagement (SME; i.e., likes, shares, and comments) in the context of global brands operating in an emerging market and implementing TikTok as a tool for social media marketing. The data set comprised 680 posts, 1,527,340 likes, 58,529 shares, and 18,743 comments collected from global smartphone brands’ TikTok accounts specifically targeting Indonesian consumers. The findings confirm that informational content mainly generates higher SME than emotional content. English and code-switched languages generally improve SME, whereas nonverbal information mostly has no significant effects. Furthermore, English and code-switched languages mainly have negative moderating effects on the relationship between content characteristics (both informational and emotional characteristics) and SME. Theoretically, this study provides a preliminary understanding of effective SME enhancement strategies for global brands targeting consumers on TikTok in emerging markets. Practically, the results of this research can provide guidelines for global brands engaging with consumers in emerging markets. These insights can also assist global brands in creating TikTok-famous content.
{"title":"Becoming TikTok Famous: Strategies for Global Brands to Engage Consumers in an Emerging Market","authors":"Risqo M. Wahid, Heikki Karjaluoto, Kimmo Taiminen, Diah Isnaini Asiati","doi":"10.1177/1069031X221129554","DOIUrl":"https://doi.org/10.1177/1069031X221129554","url":null,"abstract":"This study examines the effects of content characteristics (i.e., informational and emotional characteristics), language, and nonverbal information on social media engagement (SME; i.e., likes, shares, and comments) in the context of global brands operating in an emerging market and implementing TikTok as a tool for social media marketing. The data set comprised 680 posts, 1,527,340 likes, 58,529 shares, and 18,743 comments collected from global smartphone brands’ TikTok accounts specifically targeting Indonesian consumers. The findings confirm that informational content mainly generates higher SME than emotional content. English and code-switched languages generally improve SME, whereas nonverbal information mostly has no significant effects. Furthermore, English and code-switched languages mainly have negative moderating effects on the relationship between content characteristics (both informational and emotional characteristics) and SME. Theoretically, this study provides a preliminary understanding of effective SME enhancement strategies for global brands targeting consumers on TikTok in emerging markets. Practically, the results of this research can provide guidelines for global brands engaging with consumers in emerging markets. These insights can also assist global brands in creating TikTok-famous content.","PeriodicalId":48081,"journal":{"name":"Journal of International Marketing","volume":"31 1","pages":"106 - 123"},"PeriodicalIF":5.8,"publicationDate":"2022-09-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43793365","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-13DOI: 10.1177/1069031X221128787
Vivek Astvansh, Barbara Duffek, A. Eisingerich
A company often faces incidents in which its offerings cause bodily (e.g., product safety defects) or psychological (e.g., data breach) harm to its consumers. Such incidents may invoke product liability lawsuits against the company. The company may try to recover from the liability-invoking failure by notifying the affected consumers, offering a remedy, and persuading them to comply with the company message. The authors theorize and experimentally demonstrate that, on average, a prevention-focused message receives greater compliance than a promotion-focused message. Further, a prevention-focused message is more effective with consumers from high-uncertainty-avoidance cultures, whereas a promotion-focused message is more effective in low-uncertainty-avoidance cultures. Perceived compatibility of prevention or promotion goals with low or high values of uncertainty avoidance mediates the interaction effect on compliance. The findings can help companies overcome consumer apathy to product recall or data breach notices and offer managers ways to promote consumer safety and protection.
{"title":"How Can Companies Recover from Liability-Invoking Failures? Exploring the Role of Uncertainty Avoidance in Facilitating Consumer Compliance Across National Cultures","authors":"Vivek Astvansh, Barbara Duffek, A. Eisingerich","doi":"10.1177/1069031X221128787","DOIUrl":"https://doi.org/10.1177/1069031X221128787","url":null,"abstract":"A company often faces incidents in which its offerings cause bodily (e.g., product safety defects) or psychological (e.g., data breach) harm to its consumers. Such incidents may invoke product liability lawsuits against the company. The company may try to recover from the liability-invoking failure by notifying the affected consumers, offering a remedy, and persuading them to comply with the company message. The authors theorize and experimentally demonstrate that, on average, a prevention-focused message receives greater compliance than a promotion-focused message. Further, a prevention-focused message is more effective with consumers from high-uncertainty-avoidance cultures, whereas a promotion-focused message is more effective in low-uncertainty-avoidance cultures. Perceived compatibility of prevention or promotion goals with low or high values of uncertainty avoidance mediates the interaction effect on compliance. The findings can help companies overcome consumer apathy to product recall or data breach notices and offer managers ways to promote consumer safety and protection.","PeriodicalId":48081,"journal":{"name":"Journal of International Marketing","volume":"31 1","pages":"1 - 18"},"PeriodicalIF":5.8,"publicationDate":"2022-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44873723","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-13DOI: 10.1177/1069031X221128786
Constantinos N. Leonidou, V. Gruber, B. Schlegelmilch
Environmental sustainability research suffers from a paucity of comprehensive, cross-cultural investigations and lacks insight into the interplay of human values and environmental beliefs and behaviors. In addition, despite the importance of understanding why consumers engage in active attempts to protect the environment, studies examining the role of environmental sustainability activism remain scarce, poorly integrated, and ill-defined. Against this backdrop, this research captures the links of specific human values with environmental sustainability beliefs and their subsequent relationships with individuals’ environmental sustainability activism and quality of life. Using data from the United States and China, the authors show that religiosity and interdependence are consistently related to environmental sustainability beliefs, whereas, contrary to previous findings, materialism has no significant relationship. In addition, generativity is positively linked with environmental sustainability beliefs only in the U.S. sample, whereas family values are significant only in the China sample. The results show that environmental sustainability beliefs influence environmental sustainability activism, which in turn is linked with individual perceptions of superior quality of life. The study discusses several implications for practice and identifies fruitful future research directions.
{"title":"Consumers’ Environmental Sustainability Beliefs and Activism: A Cross-Cultural Examination","authors":"Constantinos N. Leonidou, V. Gruber, B. Schlegelmilch","doi":"10.1177/1069031X221128786","DOIUrl":"https://doi.org/10.1177/1069031X221128786","url":null,"abstract":"Environmental sustainability research suffers from a paucity of comprehensive, cross-cultural investigations and lacks insight into the interplay of human values and environmental beliefs and behaviors. In addition, despite the importance of understanding why consumers engage in active attempts to protect the environment, studies examining the role of environmental sustainability activism remain scarce, poorly integrated, and ill-defined. Against this backdrop, this research captures the links of specific human values with environmental sustainability beliefs and their subsequent relationships with individuals’ environmental sustainability activism and quality of life. Using data from the United States and China, the authors show that religiosity and interdependence are consistently related to environmental sustainability beliefs, whereas, contrary to previous findings, materialism has no significant relationship. In addition, generativity is positively linked with environmental sustainability beliefs only in the U.S. sample, whereas family values are significant only in the China sample. The results show that environmental sustainability beliefs influence environmental sustainability activism, which in turn is linked with individual perceptions of superior quality of life. The study discusses several implications for practice and identifies fruitful future research directions.","PeriodicalId":48081,"journal":{"name":"Journal of International Marketing","volume":"30 1","pages":"78 - 104"},"PeriodicalIF":5.8,"publicationDate":"2022-09-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45380013","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-07DOI: 10.1177/1069031X221127938
Linda Alkire, Susan E. Myrden, Sören Köcher, G. O'Connor
Given the well-documented relationship between lifestyle, disease burden, and health care costs, there is a greater need to investigate individual factors in health-related attitudes and behaviors. This research extends the rich knowledge developed around engagement, in particular customer engagement, to a new, understudied setting—namely, public health—and establishes the concept of health engagement, defined as individuals’ cognitive, emotional, and behavioral investments in health-related interactions centered around managing and taking care of their health. In addition, the current work investigates cultural drivers of the health engagement construct. A multinational survey of 1,208 participants reveals that uncertainty avoidance, long-term orientation, and indulgence are positively related to the salience of one's health, which, in turn, motivates health engagement and, by extension, improves physical and psychological health outcomes. Finally, the authors provide actionable insights for policy makers, public health actors, and business managers who seek to develop health engagement to improve overall public health.
{"title":"Cultural Drivers of Health Engagement","authors":"Linda Alkire, Susan E. Myrden, Sören Köcher, G. O'Connor","doi":"10.1177/1069031X221127938","DOIUrl":"https://doi.org/10.1177/1069031X221127938","url":null,"abstract":"Given the well-documented relationship between lifestyle, disease burden, and health care costs, there is a greater need to investigate individual factors in health-related attitudes and behaviors. This research extends the rich knowledge developed around engagement, in particular customer engagement, to a new, understudied setting—namely, public health—and establishes the concept of health engagement, defined as individuals’ cognitive, emotional, and behavioral investments in health-related interactions centered around managing and taking care of their health. In addition, the current work investigates cultural drivers of the health engagement construct. A multinational survey of 1,208 participants reveals that uncertainty avoidance, long-term orientation, and indulgence are positively related to the salience of one's health, which, in turn, motivates health engagement and, by extension, improves physical and psychological health outcomes. Finally, the authors provide actionable insights for policy makers, public health actors, and business managers who seek to develop health engagement to improve overall public health.","PeriodicalId":48081,"journal":{"name":"Journal of International Marketing","volume":"31 1","pages":"90 - 105"},"PeriodicalIF":5.8,"publicationDate":"2022-09-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44614634","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-09-02DOI: 10.1177/1069031X221126925
Paurav Shukla, Verónica Rosendo-Ríos, S. Trott, Jingjing Lyu, Dina Khalifa
Once the preserve of the elite, many luxury brands are now targeting the rapidly rising global middle classes. This “democratization of luxury,” understood as the perceived reduction in distinctiveness, exclusivity, and self-differentiation of luxury goods due to wider availability and access, has changed the luxury industry landscape substantially, and yet it remains an underexplored phenomenon in academic research. Building on the theory of network effects, this study focuses on how democratization influences the relationship between conspicuous signaling and luxury purchase intentions. Analysis of primary data (n = 1,156) from luxury consumers in developed (United States and Spain) and developing (China and India) markets with distinctly differing economic trajectories reveals the varying negative moderating influence of democratization. These negative effects of luxury democratization are more pronounced in developing markets (Study 1). Further, the findings highlight that consumer indulgence can help mitigate negative externalities associated with luxury democratization (Study 1) and identify its underlying mechanism through positive affect (Study 2). The multimethod approach demonstrated in this study sheds new light on consumer perceptions of luxury democratization and offers actionable implications for international luxury firms on managing this challenge in developed and developing markets.
{"title":"Managing the Challenge of Luxury Democratization: A Multicountry Analysis","authors":"Paurav Shukla, Verónica Rosendo-Ríos, S. Trott, Jingjing Lyu, Dina Khalifa","doi":"10.1177/1069031X221126925","DOIUrl":"https://doi.org/10.1177/1069031X221126925","url":null,"abstract":"Once the preserve of the elite, many luxury brands are now targeting the rapidly rising global middle classes. This “democratization of luxury,” understood as the perceived reduction in distinctiveness, exclusivity, and self-differentiation of luxury goods due to wider availability and access, has changed the luxury industry landscape substantially, and yet it remains an underexplored phenomenon in academic research. Building on the theory of network effects, this study focuses on how democratization influences the relationship between conspicuous signaling and luxury purchase intentions. Analysis of primary data (n = 1,156) from luxury consumers in developed (United States and Spain) and developing (China and India) markets with distinctly differing economic trajectories reveals the varying negative moderating influence of democratization. These negative effects of luxury democratization are more pronounced in developing markets (Study 1). Further, the findings highlight that consumer indulgence can help mitigate negative externalities associated with luxury democratization (Study 1) and identify its underlying mechanism through positive affect (Study 2). The multimethod approach demonstrated in this study sheds new light on consumer perceptions of luxury democratization and offers actionable implications for international luxury firms on managing this challenge in developed and developing markets.","PeriodicalId":48081,"journal":{"name":"Journal of International Marketing","volume":"30 1","pages":"44 - 59"},"PeriodicalIF":5.8,"publicationDate":"2022-09-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48363020","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-22DOI: 10.1177/1069031X221123993
Wolfgang Messner
Cultural differences between countries are customarily calculated by comparing mean scores on multiple dimensions, which ignores heterogeneity within societies. This article proposes a fundamentally new way of measuring cultural differences by evaluating the functioning of the emotional brain—that is, by comparing how people think, rather than what they think. Deep learning as a supervised machine learning technique is used to mathematically represent the emotional brain of the Volksgeist (“folk spirit”) with a complex system of nonlinear combinations of value priorities, opinions, and other factors with subjective feelings of well-being. Cross-validating how well one Volksgeist's artificial brain fits another country provides a novel measure for emotional cultural differences, which also considers heterogeneity within a society. This measure is conceptually and statistically unrelated to the Kogut–Singh index calculated from mean scores on cultural dimensions. However, it shows good face validity and supports international marketing and business theory as a negative and highly significant predictor for bilateral trade flows within Europe, using a classic gravity model.
{"title":"Cultural Differences in an Artificial Representation of the Human Emotional Brain System: A Deep Learning Study","authors":"Wolfgang Messner","doi":"10.1177/1069031X221123993","DOIUrl":"https://doi.org/10.1177/1069031X221123993","url":null,"abstract":"Cultural differences between countries are customarily calculated by comparing mean scores on multiple dimensions, which ignores heterogeneity within societies. This article proposes a fundamentally new way of measuring cultural differences by evaluating the functioning of the emotional brain—that is, by comparing how people think, rather than what they think. Deep learning as a supervised machine learning technique is used to mathematically represent the emotional brain of the Volksgeist (“folk spirit”) with a complex system of nonlinear combinations of value priorities, opinions, and other factors with subjective feelings of well-being. Cross-validating how well one Volksgeist's artificial brain fits another country provides a novel measure for emotional cultural differences, which also considers heterogeneity within a society. This measure is conceptually and statistically unrelated to the Kogut–Singh index calculated from mean scores on cultural dimensions. However, it shows good face validity and supports international marketing and business theory as a negative and highly significant predictor for bilateral trade flows within Europe, using a classic gravity model.","PeriodicalId":48081,"journal":{"name":"Journal of International Marketing","volume":"30 1","pages":"21 - 43"},"PeriodicalIF":5.8,"publicationDate":"2022-08-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42535233","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-08-17DOI: 10.1177/1069031X221123265
Jennifer Zeißler, Timo Mandler, Jeeyeon Kim
Royalty rates are an essential contractual provision to reduce the risk of opportunism in franchising partnerships, many of which are international. However, extant research provides limited insights into the factors that determine the level of royalty rates in international franchise agreements. To address this gap, the authors conceptualize and empirically test a model that treats country characteristics (economic potential, legal rights protection, and cultural distance) and contract characteristics (territorial exclusivity and contract duration) as drivers of royalty rates, accounting for product-market profile and service type as potential contextual factors. Using a unique data set comprising 125 international franchising contracts between franchisors and franchisees from 19 countries, the authors find that economic potential (but not territorial exclusivity) is associated with higher royalty rates, whereas legal rights protection, cultural distance, and contract duration are associated with lower royalty rates. Although these relationships are robust across business-to-consumer and business-to-business markets, the impact on royalty rates of economic potential is more pronounced, and that of legal rights protection is less pronounced, for services targeting people (e.g., hospitality) than for services targeting their possessions (e.g., financial services). This work extends the literature exploring the contracting stage of international franchising and provides insights that inform franchisors’ and franchisees’ decisions related to the design of such contracts.
{"title":"What Drives Royalty Rates in International Franchising?","authors":"Jennifer Zeißler, Timo Mandler, Jeeyeon Kim","doi":"10.1177/1069031X221123265","DOIUrl":"https://doi.org/10.1177/1069031X221123265","url":null,"abstract":"Royalty rates are an essential contractual provision to reduce the risk of opportunism in franchising partnerships, many of which are international. However, extant research provides limited insights into the factors that determine the level of royalty rates in international franchise agreements. To address this gap, the authors conceptualize and empirically test a model that treats country characteristics (economic potential, legal rights protection, and cultural distance) and contract characteristics (territorial exclusivity and contract duration) as drivers of royalty rates, accounting for product-market profile and service type as potential contextual factors. Using a unique data set comprising 125 international franchising contracts between franchisors and franchisees from 19 countries, the authors find that economic potential (but not territorial exclusivity) is associated with higher royalty rates, whereas legal rights protection, cultural distance, and contract duration are associated with lower royalty rates. Although these relationships are robust across business-to-consumer and business-to-business markets, the impact on royalty rates of economic potential is more pronounced, and that of legal rights protection is less pronounced, for services targeting people (e.g., hospitality) than for services targeting their possessions (e.g., financial services). This work extends the literature exploring the contracting stage of international franchising and provides insights that inform franchisors’ and franchisees’ decisions related to the design of such contracts.","PeriodicalId":48081,"journal":{"name":"Journal of International Marketing","volume":"31 1","pages":"103 - 123"},"PeriodicalIF":5.8,"publicationDate":"2022-08-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42755069","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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