간행물

Global Marketing Conference

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2014 Global Marketing Conference at Singapore (2014년 7월) 393

161.
2014.07 구독 인증기관 무료, 개인회원 유료
Based on individuals’ risk perceptions regarding a purchase via smartphone, this empirical work aims at developing a typology of smartphone users. Employing cluster and discriminant analysis, a dataset of 202 young German smartphone users was assessed. To address each of the three emerged clusters in a need-sensitive way, implications for retailers are presented conclusively.
4,000원
162.
2014.07 구독 인증기관 무료, 개인회원 유료
In this paper, we explore the popularity of contents at social curation sites. More specifically, we evaluate an article’s popularity at a given point in time and enduring popularity. The results of analyses demonstrate that the amount of content in an article and the initial page views positively affect the page’s popularity. However, an excess amount of content has a negative effect on outbound traffic. Finally, we find that a within-site bookmark prolongs the life of an article.
4,500원
163.
2014.07 구독 인증기관 무료, 개인회원 유료
This research deals about the phenomenon of crowd-funding as an interesting way of interactive marketing where consumers are involved in co-creation value. Our research objective is to evaluate the impact of the type of rewards (financial vs. symbolic) on consumer level of investment. We propose an experimental design with a real case study in order to evaluate the impact of the type of rewards (financial vs. symbolic) towards the intention of investing in the project. The results indicate that the financial reward brings higher level of investment than the symbolic one. Moreover, in the case of a financial reward, attitude towards investment into the project is significantly higher than for symbolic reward. This research illustrates the key role playing by the value-marketing proposition in this particular context of collaborative investment where consumers as investors are more sensitive to a financial reward than a symbolic one.
4,000원
164.
2014.07 구독 인증기관 무료, 개인회원 유료
Exporting represents an entry mode into international markets that is less risky than more direct strategies, therefore, it particularly fits SMEs (small-medium enterprises) that generally have a few resources to invest. In the case of emerging markets because of the high psychic distance, SMEs tend to rely on their distributors for the business operations in the new market. However, even if this type of intermediary allows the access to the foreign distribution channel that is particularly complex in countries such as China, it can limit the control of the market and in some cases, the product expansion. Based on a qualitative research consisting of interviews and secondary data, we will present two original case studies of Italian firms operating in the Chinese market. It will be shown that in emerging markets, since distributors do not really analyze and know consumer expectations and behaviors, they may represent a barrier in the knowledge accumulation of foreign products in the new market. Managerial implications will be discussed on the extent to which SMEs are not able to replicate marketing strategies used in other countries, but they should define a clear strategy that involves their distributors in the process of knowledge accumulation and brand value creation in the foreign market.
4,500원
165.
2014.07 구독 인증기관 무료, 개인회원 유료
The luxury market is surely one of the most affected areas by the counterfeiting phenomenon. The presence of fake goods means very often a financial loss for companies, both in terms of reduced turnover, but also in terms of intangible losses (i.e. brand value reduction). This phenomenon has led companies, in the last years, to ask their New Product Development (NPD) division if and how it was possible to develop unique products, difficult or even impossible to replicate, and how to help customers in the identification of authentic goods versus fake ones. The authors propose a model to support fashion companies for developing anti-counterfeiting solutions since the NPD phases in order to deal with the effect of black and grey market and preserve their brand and products values.
4,000원
166.
2014.07 구독 인증기관·개인회원 무료
Purpose The current rapid growth of internet-based commerce is putting pressure on brick-and-mortar retail outlets due to an urge to redefine the role of store spaces from sales channel to, among others, a branding instrument (Hines & Bruce 2008, Nobbs et al 2013). Differentiation in the fashion business being mostly based on non-tangible, emotional, produt attributes, fashion brands recognise the importance of offering a three dimensional environment in order for people to ‘experience’ the brand (WGSN 2014, Lea-Greenwood 2013, Easey 2008). The increased amount of flagship and (or) concept stores must be understood in this context. However, given the need for a clearly identifiable brand identity, one could argue that, depending on a brand’s idiosyncratic identity, sometimes a flagship store might be superfluous, or else it should present different features and chatracteristics. So for instance the introduction of what are commonly know as ‘third spaces’ in stores goes at the expense of space where garmets could be stocked, and thus impacts an important metric like turnover per square meter. Hence, in the context of flagship stores, the questions arise of 1) should every fashion brand have a flagship store? or else: 2) given that a brand has a flagship store: is there a relationship between its symbolic value some flagship store’s characteristics? Design/Methodology The methodological stance in this paper is mainly interpretative, as we aim at a richer understanding of the relationship between branding and retailing. At first a large number of qualitative data (22 interviews and 678 store observations) have been collected about characteristics of flagship stores around the globe. Afterwards the brands, owners of the stores, have been classified according to their Glue Value, i.e. according to the benefits that the symbolic value of the brand implies. We have then looked for a corrispondence between the store features and the brand that would reflect the Glue Value dimension. Findings We have found partial evidence of a correspondence between the glue value of a brand and its flagship store’s characteristics. We hypothesise this might be due to two main reasons 1) brands with a lower glue value tend to profile emotional rather than functional values, and attempt to portray that in a store with mixed results (literally). Secondly it is clear that the location and ownership of the store has a major impact on the need to fulfill ‘harder’short term financial goals (like e.g. turnover per square meter). Limitations One main limitation in this study is the self-selection bias. As normally brands with a higher glue value feel the need for a flagship store , the data could be richer and results more valid if we did include data from a wider range of store typologies. Social/Managerial implications The outcomes suggest that brand owners are seldom aware of the longer-term strategic function of their stores. Especially given the growth of internet based transactions, we offer a framewokr for brand owners to rethink the role of their stores in the context of their branding strategy. Also we suggest that, as with strategy (cfr Michael Porter) making a unique and definitive choice about the role and function of a store is increasingly important for the perception of a brand’s identity. Originality To our knowledge som eauthors suggest a relation between branding and distribution strategy, but little work has been done that tends to infer a relationship between a brand’s characteristics and the physical characteristics of its retail outlets.
167.
2014.07 구독 인증기관·개인회원 무료
As cause-related marketing (CRM) is becoming an increasingly integral part of corporate social responsibility activities and promotion plans, many researchers have studied what determines the effectiveness of cause-related marketing activities. One of the factors past research paid much attention to in this regard is the fit between the brand and cause. Previous studies have demonstrated that a high brand-cause fit generally improves consumer attitude toward company, increases purchase intent and brand loyalty. However, few recent studies show that a high brand-cause fit may backfire in some circumstances. This research aims to investigate when and why a high brand-cause fit backfires. In this regard, this research focuses on the role of important but understudied concept of consumer-cause fit. Based on a multi-dimensional perspective of self-concept (Sirgy,1982), this research defines and measures consumer-cause fit with respect to multiple dimensions of a consumer’s self-concept. Then, a series of experiments shows how the congruence between images of a cause, a consumer’s ideal and actual self-concept, and images of a brand will interact to moderate, in some cases even reverse, the relationship between brand-cause fit and consumer responses to a cause-related marketing campaign.
168.
2014.07 구독 인증기관·개인회원 무료
Explicit environmental attitude measures tend to produce strong socially desirable responses (Bruni & Schultz, 2010; Milfont & Duckitt, 2010; Stern & Dietz, 1994) and fail to capture more than what participants consciously recall (e.g., explicit belief, past behavior, Dunlap, Van Liere, Mertig, Jones, 2000; Schultz, Shriver, Tabanico, & Khazian, 2004). A number of studies have highlighted the popularity of environmental issues in common discourse in various countries, which leads individuals to eagerly express pro-environmental explicit attitudes (Dunlap, 1998; Leiserowitz, 2005; Meijers & Stapel, 2011). Therefore, an explicit measure of environmental attitudes would hardly be an unbiased indicator of prior knowledge and experience when testing the effect of subtle feeling on judgments: although a participant explicitly reports favorable attitudes toward environment or related issues, it does not necessarily mean that she or he has knowledge and experience to hinder the regulatory fit effects. Using the Implicit Association Test, we examined whether the extent to which individuals are implicitly biased toward (or against) sustainability moderates the regulatory focus by construal level interaction. Scores from the indirect measure of attitudes served as the indicator of the strength of associations between the concept of sustainability and evaluations that may result form its frequent pairing with desirable consumption patterns or repeated exposure to persuasive messages promoting sustainability. Specifically, we showed that the regulatory focus – construal level fit effect will be greater among individuals who have not formed significant associations about sustainability since these individuals are more likely to rely on feeling right from regulatory fit rather than using prior experience or knowledge.
169.
2014.07 구독 인증기관·개인회원 무료
Self Service Technology (SST) refers to technological interfaces that enable customers to produce a service independently, without service employees’ direct involvement. Because of the recent technological evolution and rising labor cost, most companies in the retail and service industries tend to use more technology-based SST options. In this study, we tried to investigate the effects of technology readiness and consumer readiness on SST service quality, attitude toward using SST, and intention to use SST in franchise fast food restaurants. The study results showed a significant and positive influence on all six dimensions of SST service quality. This research found that consumer readiness has a stronger and statistically more significant influence on all of SST service quality’s six constructs than does TR. Within a setting in which a customer is using SST, consumer readiness is a concept that is composed of the following: customer’s own role clarity, ability to utilize SST, and self-efficacy about using SST. Shim & Han (2012) confirmed that Consumer Readiness is a strong variable that effects motivation to use SST. This research presents academic significance in that it verified that consumer readiness is a major leading variable that influences perceived SST service quality. This research confirmed the moderating effects of consumer traits (self-consciousness, need for interaction, technology anxiety) and situational factors (perceived crowding, perceived waiting time) within the relationship between SST service quality and attitudes and intentions toward using SST. Study results showed that all variables have moderating effects. Ease of SST use was shown to have a strong influence on developing attitudes and intentions toward using SST in people with high levels of technology anxiety. For people with low levels of technology anxiety, ease or difficulty of SST use did not affect their attitude toward using SST. The expectation of increased enjoyment through SST use had an impact on developing attitudes and intentions toward using SST. This implies that expectation of increased enjoyment does not affect the development of intention toward using SST for people with high technology anxiety, as their technology anxiety is greater than such expectation. In contrast, this expectation of increased enjoyment greatly affects the development of attitude toward using SST for people with low technology anxiety. As a result, when introducing SST, firms need to design the system to appeal to people with high technology anxiety. Results also revealed that innovativeness does not have statistically significant influences on enjoyment or convenience. Because our results confirmed that technology readiness is an important leading variable of SST service quality, our research supported the works of Lin & Hsieh (2006) and Zeithaml et al. (2002). Managerial implications and limitations of the study were also discussed.
170.
2014.07 구독 인증기관·개인회원 무료
Using multiple channels along the buying process is common for today’s consumers. Research suggests that additional channels enhance customer satisfaction and ultimately customer loyalty. However, research that focuses on the relationship between satisfaction with multichannel performance and behavioral consequences is relatively sparse. As this topic is of tremendous importance for retail practice this study attempts to investigate main drivers of consumer satisfaction in a multichannel environment and the consequences concerning consumer behavior and loyalty. Therefore we take on an approach of Renoux (1973) that considers explicitly the aspect of the consumer decision stage in order to explain satisfaction with a multichannel retailer. The study focuses on satisfaction in the pre-purchase and purchase stage. Furthermore, it is investigated whether the perceived integration of channels has an influence on satisfaction with a multichannel retailer. Results of a structural equation model based on a survey among 171 German multichannel shoppers show that satisfaction in the pre-purchase stage is a crucial predictor of consumer’s overall satisfaction with a multichannel retailer. It has also a strong impact on satisfaction in purchase stage and can therefore influence the buying decision. To add, perception of the integration of channels positively influences the overall satisfaction with the multichannel retailer. Satisfaction, in turn, can lead to loyalty to the multichannel retailer and thereby influences repurchase and supplementary purchase intention, and recommendation intention. The study concludes with managerial implications and suggests directions for further research.
171.
2014.07 구독 인증기관 무료, 개인회원 유료
The aging of society is speeding up in Japan. Although over 30 millions of aged persons in Japan are not good at using up-to-date tools like the internet for their daily life, they are well-off and have attractive purchasing power than younger generation. It is very import task how to approach them to sell goods, provide services through the internet. The issue seems to Japan just now, but will be the large and urgent task to Korea, to China in near future. We discuss the measures on the view of partnership marketing.
4,000원
173.
2014.07 구독 인증기관 무료, 개인회원 유료
We aimed to extend the Stimulus–Organism–Response framework. Atmospherics and staff service were evaluated as stimulus impacting attendees’ social/self concept and memory (organism), and further leading to behavioral intention (response). Memory is not only an effective predictor of behavioral intention but also mediates the social/self concept value and behaviors.
4,000원
174.
2014.07 구독 인증기관·개인회원 무료
Educational robots are used to teach skills in problem-solving, cooperation, logical thinking, and computer programming. Diverging from mundane classroom studies, robots can be used effectively to develop children’s study habits and encourage creativity and imagination. Although students and parents are showing increasing interest in robot education, it has not been widely commercialized in the student education market because parents find it too costly. This research focuses on the robot education industry and strives to develop a 1) customized education program that alleviates parents’ resistance to the financial burden and a 2) marketing strategy to enhance customer satisfaction and loyalty for sustainable growth in the robot education industry. The study shows that the industry must first understand students’ and parents’ needs and wants and then develop customized service packages for each client type. Continual improvement is key for achieving customer satisfaction, providing differentiated service, and consolidating the service with teacher education. It is essential that children show that they are achieving and that they are satisfied if companies are to maintain customers and attract new business. Also, if children are enthusiastic about robot education, their parents will be more willing to finance such programs. Therefore, robot education companies must increase customer satisfaction by increasing the quality of robot education through home visitation and instruction delivered through education centers.
175.
2014.07 구독 인증기관·개인회원 무료
In services in general, customers play critical roles in determining the success of service delivery. Some services (such as education) require an active participation of customers for the successful accomplishment of purchase objectives. Yet, there are few systematic and integrated researches in defining the dimensions of customer’s active participation and in empirically testing the effect of customer’s active participation on customer’s perceived performance (as opposed to the firm’ performance and customer satisfaction). Existing studies have focused mainly on the general concept of customer participation during a service encounter, leaving the specific concept of customer’s active participation in various situations still under-researched. Through this study, we intended to fill this gap in research. Specifically, using college business education as our study context, we first propose the concept of “customer’s active participation (CAP)” as the reflection of customer engagement concept and identify the dimensions of CAP. We then empirically examine the effect of CAP on customer perceptions of performance of their own (CPP). Through the review of literature on the topics of customer participation, customer engagement, employee engagement and focus group interviews, we defined customer’s active participation and identified its dimension as follows. We defined customer’s active participation as “customers' making not only their individual efforts to ensure the successful outcome of the service delivery but also active interacting with service providers, other customers, and others in and outside of the service delivery context to achieve their consumption goal”. We then identified five dimensions of customer’s active participation; in-service-space interaction, 3 kinds of outside-service-space interactions (customer-to-service provider, customer-to-customer, customer-to-others), and individual level participation both in and outside the service space. In order to collect necessary data, we administered a self-administered survey using a questionnaire among undergraduate-level business major students at Yonsei School of Business. As a result of an EFA, we confirmed the uni-dimensionality of each of five determinants and the reliability of the measurement items for each dimension. The CFA result of a different set of data collected from another set of respondents among undergraduate business major students at Yonsei School of Business, we confirmed that the five dimensions well explain the customer’s active participation (CAP). Results also supported that customer’s active participation (CAP) positively influences customer’s perceptions of performance (CPP). This study contributes academically and practically in several ways. First, this study is the first attempt to propose the concept of “customer’s active participation (CAP)”. Second, this study identified the major determinants of CAP and developed a scale in the business education context. Third, this study empirically verified and the importance of the effect of CAP on their perception of own performance. Practically, this study contributes by showing the importance of managing CAP and by proposing the specific dimensions of CAP that should be managed.
176.
2014.07 구독 인증기관 무료, 개인회원 유료
This paper examines the situational, individual and social network determinants of negative online word-of-mouth on social network sites. The findings of the empirical study indicate that feeling of injustice, firm attribution, perceived service image, face concern, emotion regulation, SNS use intensity and tie strength significantly affects negative word-of-mouth.
4,000원
177.
2014.07 구독 인증기관·개인회원 무료
This study builds upon the scant brand personality (BP) literature in services and highlights its applicability to services marketing, which is critical given increasing interest in building favourable service brands. This study examines the impact of Geuens, Weijters and De Wulf’s, (2009) BP measure, an arguably theoretically superior measure of BP to Aaker’s (1997), into an accepted nomological net by Chaudhuri and Holbrook (2001), and tests the extent to which BP dimensions determine behavioural outcomes in services (Geuens et al., 2009).
178.
2014.07 구독 인증기관·개인회원 무료
The authors of this article compare American and Korean reactions to the persuasiveness of environmental advertising campaigns that include pledges. Findings indicate that environmental advertising effectiveness depends on how much effort recipients put into making environmental pledges prior to viewing the advertisements. Study 1 demonstrates that when environmental pledges requesting more effort precede ad messages, Americans are more persuaded but Koreans are less persuaded. Study 2 extends the findings and rules out an alternative explanation—mere-effort effect—by showing that the results are replicated only with an issue-relevant pledge, but not with an issue-irrelevant pledge.
179.
2014.07 구독 인증기관 무료, 개인회원 유료
The concept of customer orientation (CO) has been studied for quite a long time at first as a major part of market orientation and then as a separate construct. For emerging market the role of CO became paramount with the shift from the planned to the market economy. However, after more than two decades of transition Russian companies are still demonstrating rather a claim of being customer orientation, instead of implementing a long-term orientation towards customer. This paper focuses on reconsidering applying the Narver and Slater (1990) approach to conceptualizing and measuring customer orientation, and its empirical test and validation in the context of Russian economy. This study is based on data from two empirical studies on Russian companies, conducted during the pre-crisis (2008) and post-crisis (2010) period. Our results reveal that existing theory on customer orientation is not fully confirmed by the evidence from Russian companies.
4,200원
180.
2014.07 구독 인증기관 무료, 개인회원 유료
The catching-up process of the emerging economies of Central and Eastern Europe (CEE) towards the average income level in Western Europe has driven the marketing strategies of Western multinational companies (MNC) so far. Particularly, the boom years from 2002 to 2008 with an average GDP growth for the region of more than 6% (Becker et al., 2010) fuelled the notion that soon a large European market with similar demand and market structures will exist that will allow Western MNCs to sell their international brands in a highly standardized way in the whole region. The Great Recession of 2008-09 stopped this convergence process and highlighted the still existing differences in consumer behavior (Schuh, 2012). The recessionary developments in the aftermath of the crisis have shown that this is more of a structural problem than a temporary one (Labaye et al., 2013). The Western firms now have to acknowledge that many product markets are not “structural twins” of Western markets with a strong upper- and mid-price segment but that CEE markets are rather shaped like bottom heavy pyramids. By just transferring brand strategies developed for high-income economies to emerging markets they ignore large segments of the mass market. To tap these market segments MNCs have to think how they can make their products affordable to these lower-income consumers, i.e. bring-ing the purchase of a product within the financial means of a consumer or household. The neglect of low-income segments may be either a deliberate decision based on the well-proven inherent business logic of Western branded good marketers (“stick to our success-ful way of doing business”) or a blind spot in the strategic approach to emerging markets (Sheth, 2011). The purpose of this paper is twofold: first, a case is made for the relevance of affordability concepts to CEE markets; second, three case studies of affordability initiatives of leading fast-moving consumer goods companies are analyzed in order to get a better understanding of how these firms approach the affordability issue and what are the success factors of such strategies in CEE. Most of the existing emerging market literature is dealing with very low income consum-ers in Southeast Asia, Latin America and Africa earning less than US- 2,500 p.a. (Prahalad, 2005; London & Hart, 2011; Khanna & Palepu, 2010). While the coverage of the “bottom of the pyramid” is regarded as an extreme stretch for most Western firms, more attention is paid to the growing middle class in the emerging markets (Court & Narashimhan, 2010). The steady growth of the middle-class in the emerging economies is promising rising sales for the future and at the same time supporting the notion that West-ern MNCs can continue with their business model and just have to “wait for the market”. The rapidly growing middle class consumers in emerging markets include almost 2 billion people with a total spending of US- 6.9 trillion annually which will expand to US-20 trillion within the next decade (Court & Narasimhan, 2010). Surprisingly, lead-ing Western MNCs approach the affordability issues in the context of CEE rather defen-sively and reluctantly (Schuh, 2012). This may be resulting from the belief that the eco-nomic catching-up process will bring CEE consumers to a similar standard of living as in the “old” EU and any investment in products for the lower-segments would be only of temporary value. Therefore, CEE countries are not seen as the typical candidates for affordability strategies. This may be partly true for the most advanced Central European countries and Russia with rapidly rising household incomes in the last decade. But the economic downturn and the following recessionary development has shattered the consumption model that was based to a high degree on credit financing in those markets too. Moreover, studies show that there exists a high share of low-income households and price-sensitive consumers in CEE. According to the “Life in Transition” survey the mid-dle-class ranges from 4% in Albania to 27% in Slovenia – in between you can find Poland with 16% and Russia with 18% (EBRD, 2007). Pfeifer, Massen and Bombka (2007) estimate that 56% of the consumers or 57 million people, in Eastern Europe are low-income consumers (< 10,000 in PPP per year). In addition, in Russia and Ukraine 70% of the populations are falling in this category. A study of Roland Berger Strategy Consultants (2008) on “Consumer Archetypes in CEE” identified seven basic consumer types in CEE. Three out of them – the “self-centered consumers” (18% of population), “minimalists” (14%) and “rationalists” (12%) – can be classified as highly price-sensitive. Together, these three highly price-conscious consumer types make up 44% of the CEE market. What is more, other identified consumer types with less distinct price sensitivity could be taken into account as well. In total, these consumer types whose purchasing behavior is influenced predominantly by affordability amount to 56% of all CEE consumers. Summing up, the studies provide divergent figures of the size of the middle class and low-income segment in CEE. Different methodological approaches, classifications, and data bases are the reasons for these variations (Kharas, 2010). However, the findings show that the market below the middle class in CEE is a large one, accounting for more than 60% of the population of a country. The strategies that are used to address low-in-come consumers are described by the so-called “4 A’s”: affordability, acceptability, availability and awareness (Anderson & Markides, 2007). Affordability as a strategy con-cept can be defined as all measures of a company that aim at bringing the purchase of a product within the financial means of a consumer or household (or business). In the literature you can find different approaches towards this goal. Firms typically start with marginal changes in their marketing strategy (e.g., different packages, single portions). However, to tap the lower-end of these price-sensitive mass-markets and to reach non-consumers of your products changes have to go beyond rebranding and adapted market-ing elements. New business models with deeper and more comprehensive changes in product development and architecture of the supply-chain are needed to be successful in this segment (Johnson, Christensen & Kagermann, 2008). The purpose of the empirical part of this study is to get a better understanding of motives, goals and success factors of affordability initiatives addressing the countries of CEE. A case study approach is the best way to learn about underlying assumptions and considera-tions of managers involved in the decision-making process (Yin, 2009). The cases consist of two parts: a) a general company profile describing businesses, geographic presence and goals; b) the role of affordability for tapping emerging markets and the description of affordability initiatives in CEE countries. Globally active consumer goods companies in the food sector from USA and Western Europe were chosen as target firms: They ex-panded strongly into emerging markets and CEE in the last years, play a pioneer role in tapping low-income markets and exemplify the sought-after strategic constellation for this research, i.e. an MNC expanding from a traditional “premium-position” into lower-price segments. In addition, food companies serving broad segments of the population are faced with social responsibility issues, namely if they legitimately can deny people access to their products. So far three cases of Western companies with an extensive presence in emerging markets are available (see overview in Table 1). The results show that affordability is part of the marketing strategies in CEE of all these selected companies. A considerable share of the product portfolio and overall sales vol-ume in their CEE country organizations stem from affordable products. Higher growth rates of this segment than the overall market prove that there is a demand for this type of products. And it seems that these companies don’t see an insurmountable conflict in pursuing the two-pronged approach as indicated in the literature. All affordability strate-gies are run under a business perspective. They have to contribute to the growth and profitability goals, although social motives are mentioned as strong arguments too. The case of company A nicely shows how the affordability initiative started as a CSR project and then evolved into a business project. During this process they learned that they can make a “sustainable business case” out of it. This step was a break with so far existing concepts in the company, as it involved product development targeted to the demand and financial conditions of low-income households. Country organizations decide individu-ally if and to what degree they use affordability initiatives. In our cases Russian, Polish and Romanian subsidiaries were interested in the introduction of affordable products and looking for support within the group. The establishment of competence centers for affordability initiatives at global headquarters is a clear indication that a central hub is needed which provides basic strategy guidelines, offers assistance in the introduction of such initiatives and spreads best practices in the group. However, differences can be found in the market and branding strategy. While company A is using local brands in combination with the company brand, company C is using a strict two-tier strategy. Inter-national brands are sold parallel to local/regional ones which are used for the entry into the lower-income segment. Company B is covering all price points within a category with the international brand. So the brand stretches from the super-premium, premium and mainstream to the affordability segment. 4,000 “good value for money products” are sold worldwide today, in CEE the affordable category accounts for 25% of total turnover and grows twice as fast as the whole zone Europe. The differences can be explained via the basic approach towards branding: are they following a House of Brands or a Branded House architecture. As far as success factors are concerned all three cases show that the successful introduction of an affordable product range is based on (a) a commitment of the organization to the development of affordable products; (b) deep understanding of consumer behavior, buying patterns, and market situation; (c) utilization of synergies with higher priced brands; (d) focus on volume and scale via covering a large consumer base and (e) radical cost cutting along the whole value chain. In our ongoing research we try to increase the number of companies which run affordability initiatives to be able to cover a greater variety of industry and company types. Our research shows that multi-tier and affordability strategies can be found in other consumer and industrial markets in CEE too. This research shall help to clarify for which type of company it makes sense to ex-pand to lower-income segments. While so far the internal perspective was in the center of our research attention, market and competitive constellations should be covered in the future too.
4,000원