product customisation/standardisation for export packaged foods to china – modeling ... ·...
TRANSCRIPT
1
Product Customisation/Standardisation for Export Packaged Foods to China – Modeling for Managerial
Decision Making
Nicholas Grigoriou B. Bus (Marketing), Grad Dip Business (International Business), Graduate Certificate (Adult
Teaching and Learning)
Thesis submitted in fulfilment of the
requirements for the degree of
Doctor of Philosophy
Faculty of Business and Enterprise
Swinburne University
Hawthorn, Victoria
Australia
October2013
2
Abstract
A gap exists in our knowledge of international marketing concerning the specific variables
that are decisive in actual managerial decisions concerning the customisation or
standardisation (C/S) choices for packaged food exported to China. On one hand,
international marketers who standardise their products too much potentially undermine their
performance in foreign markets by marketing products that don’t meet consumers’ changing
needs. On the other hand, too much product customisation that goes beyond the existing
needs of specific target markets is an inefficient use of productive resources.
Research Problem: To determine the extent to which packaged food exporters are required
to standardise or adapt their products for export to the People’s Republic of China.
Research Objective: The objective of this study is to develop and test a marketing model
aimed at answering the following research question: What factors influence an exporter’s
managerial decision of whether to develop and market standardised or customised food
products to China and to what extent do these factors influence this decision?
Methodology: This study employed a range of literature based variables salient in making
this managerial decision, in terms of the economic or behavioural payoffs derived from
implementation of the product customisation or standardisation decisions made. Using mixed
methods of data collection, namely both qualitative and quantitative inquiry which accessed
practitioners actively involved in this work, this study empirically modelled the importance
of different possible influences on managerial decisions affecting the degree of packaged
food product C/S for export to China as these decisions.
Findings: The study found that country-of-origin had the strongest effect on the food product
customisation or standardisation decision. Other factors suggested in the literature influenced
the same decision, but the effects are largely mediated by country of origin effects. The study
found a degree of consensus between what the literature suggests, and practitioners’ own
product development strategies and perceptions, in this highly specific export context. This
bridges an important gap between academic theory and actual practice. An unanticipated
3
finding was results concerning the moderating role of intermediaries in these decisions.
Intermediaries were found to have a moderating role in the food export product C/S in that
some food exporters relied on intermediaries to assist them with product and market related
decisions. This finding was also supported empirically.
Managerial Implications: This knowledge should provoke useful reflection by practitioners
upon how they currently undertake this work, and how they may best do so in the future,
relative to the views and practice of their peers, as well as to the literature. There are further
implications of these findings for the practice of exporters, the composition of suitable export
management teams, and for the satisfaction of export customers and for exporter
performance.
4
Acknowledgments
I am forever thankful to my Supervisor, Dr. Railton Hill from Swinburne University of
Technology whose guidance, support, and encouragement enabled me to develop a deep
understanding of the managerial decision making context surrounding the product
development decisions pertaining to exporting packaged food products to China.
In addition, I would like to thank Dr. Denny Meyer from Swinburne University of
Technology for providing me with a detailed understanding of the qualitative analysis aspects
of my work. In addition Dr. Bruno Mascitelli and Dr. Barry O’Mahoney provided me with
guidance and advice to complete my research.
Finally, I owe a deep gratitude to the two hundred or more people who agreed to participate
as respondents to my research. Without their involvement and commitment to my study, my
passion for the topic would not be fulfilled.
5
Declaration
I hereby acknowledge that this dissertation contains no material that has been accepted for the
award to a candidature of any other degree or diploma.
To the best of my knowledge this dissertation contains no material previously published or
written by any other person except where due reference is made in the text of the examinable
outcome, and where the work is based on joint research or publications, the relative
contributions of the respective authors is disclosed.
6
Table of Contents
Product Customisation/Standardisation for Export Packaged Foods to China –
Modeling for Managerial Decision Making .................................................................. 1
February 2013 ................................................................................................................... 1
Abstract .............................................................................................................................. 2
Acknowledgments ............................................................................................................... 4
Declaration ........................................................................................................................ 5
Table of Contents ............................................................................................................... 6
List of Figures .................................................................................................................. 15
List of Tables .................................................................................................................... 16
Table 8.10 ........................................................................................................................ 16
Table 8.12: ....................................................................................................................... 16
Table 8.13: ....................................................................................................................... 16
Chapter 1 ......................................................................................................................... 18
MANAGERIAL DECISION MAKING AND PRODUCT CUSTOMISATION VERSUS
STANDARDISATION ....................................................................................................... 18
Introduction...................................................................................................................... 18
Background ...................................................................................................................... 19
Overview of Product Standardisation and Customisation............................................... 20
Key Terms Defined ........................................................................................................... 21
Standardisation .................................................................................................................... 21
Globalisation........................................................................................................................ 22
Product Adaptation .............................................................................................................. 23
Product Market Strategy ...................................................................................................... 24
The Argument for Product Standardisation ..................................................................... 24
Levitt’s Product Standardisation Argument .................................................................... 26
Additional Product Standardisation Views .......................................................................... 28
The Argument for Product Customisation ....................................................................... 30
Forms of Product Customisation ......................................................................................... 32
Factors Affecting Product Customisation ............................................................................ 33
Summary of the Product C/S Considerations ...................................................................... 35
Product Customisation or Standardisation: Some Theoretical Foundations .................. 35
7
The Importance of the Product Customisation or Standardisation Managerial Decision for
Exporters .......................................................................................................................... 36
Frameworks for the Product Customisation or Standardisation Decision ..................... 37
Figure 1.1: An Evaluation of Product Modification and Product Standardisation ........ 40
Branding and the Product Customisation or Standardisation Decision ......................... 41
Product Customisation or Standardisation Decision Models ......................................... 43
Figure 1.2: A Model of Global Product Standardisation ................................................ 44
Figure 1.3 Degree of Marketing Strategy Formulation .................................................. 45
Convergence of Food Consumption: Some Trends ......................................................... 47
Middle Ground? ............................................................................................................... 48
Research Question and Proposed Methodology .............................................................. 50
Internationalisation and the Export Imperative .............................................................. 51
Structure of this Dissertation ........................................................................................... 53
This is followed by a further detailed review of relevant literature that is divided into three
chapters. Chapter two provides a detailed context to managerial export product decisions in
terms of characteristics of the Chinese economy, culture and regulatory environment.
Chapter three organisational and export performance concepts and metrics in relation to the
C/S decision making. ........................................................................................................ 53
Summary .......................................................................................................................... 54
Chapter 2 ......................................................................................................................... 55
LITERATURE REVIEW: CHINA: THE ECONOMIC, CULTURAL AND REGULATORY
CONTEXT ........................................................................................................................ 55
Chinese Cultural Values .................................................................................................. 58
China’s Stage of Economic Development: The World Trade Organisation (WTO) ....... 59
Guanxi .............................................................................................................................. 60
Chinese Negotiations ....................................................................................................... 63
Segmenting China’s Consumer Markets .......................................................................... 66
Taxonomy of Food Product Research.............................................................................. 68
Food Consumption in China ............................................................................................ 70
Dietary and Nutrition Issues ............................................................................................ 72
Nutrition and Labelling........................................................................................................ 72
Nutrition and China ............................................................................................................. 73
Packaged Food Product Labelling .................................................................................. 79
8
New Product Development for International Markets..................................................... 82
Legal Constraints on Chinese Food Marketing ............................................................... 86
Conclusion ....................................................................................................................... 89
ORGANISATIONAL AND EXPORT ‘PERFORMANCE’: CONCEPTS, METRICS, AND THE
ROLE OF INTERMEDIARIES ........................................................................................ 90
Introduction...................................................................................................................... 90
Organisational Performance ........................................................................................... 91
The Role of Products in Organisational Performance ........................................................ 94
Environmental Factors Affecting Organisational Performance.......................................... 96
Marketing Performance: Conceptualisation and Measurement.................................... 101
Conclusions on Organisational Performance, Marketing Performance, and Measurement 103
What is Export Marketing Performance? .......................................................................... 103
Influences on Export Marketing Performance ............................................................... 105
Organisational Performance and the Stage Approach to Internationalization................. 106
The Role of Strategy, Contingency, Competitive Advantage in Organisational Performance
............................................................................................................................................ 107
The Role of Marketing Research in Organisational Performance .................................... 109
Modelling Export Performance ......................................................................................... 111
Figure 3.1: A conceptual framework into the relationship between export performance
and export marketing research ...................................................................................... 111
Figure: 3.2: Factors Influencing NPD Process Evaluation ......................................... 113
Figure 3.3: A Synthesis of Export Performance Models ............................................... 114
Figure 3.4: A Simplified Export Performance Model .................................................... 116
Figure 3.5: A conceptual framework for international product customisation: strategy
and export performance ................................................................................................. 118
Figure 3.6: Determinants of Export Performance ......................................................... 119
Figure 3.7: Antecedents of Marketing Mix Strategy and Export Performance ............. 120
Figure 3.8: Proposed Predictors of Export Performance ............................................. 121
Discussion on Export Performance ................................................................................... 122
The Role of the Intermediary in Export Performance ................................................... 122
Conclusions .................................................................................................................... 128
Chapter 4 ....................................................................................................................... 129
9
Consumer Ethnocentrism, Country of Origin and the Customisation/Standardisation
Decision ............................................................................................................................. 129
Introduction.................................................................................................................... 129
Definitions of Ethnocentrism ......................................................................................... 130
The Influence of Ethnocentrism ..................................................................................... 132
CETSCALE .................................................................................................................... 133
Country of Origin (COO)............................................................................................... 134
Defining COO .................................................................................................................... 135
The Influence of COO on Export Marketing Strategy ....................................................... 136
Figure 4.1: Country of Origin over the Product Life Cycle .......................................... 137
Figure 4.2 – Constructs of Country of Origin ............................................................... 139
Figure 4.3: A Framework for Evaluating COO Influences in Product Evaluations ..... 141
Country of Design (COD) and Country of Assembly (COA) ......................................... 141
Figure 4.4: The Effects of Extrinsic Product Cues ....................................................... 144
Figure 4.5: A Conceptual Model for Cue Usage in Product Evaluation and Purchase
Intention ......................................................................................................................... 145
Country of Origin Effects in China’s Markets ............................................................... 146
COO and Branding ............................................................................................................ 146
Globalisation and COO ..................................................................................................... 150
Country of Origin, Food Products, and Food Labelling ................................................... 152
Region of Origin ............................................................................................................ 155
Conclusions on Ethnocentrism and Country of Origin.................................................. 157
Chapter 5 ....................................................................................................................... 159
MANAGERIAL DECISION MAKING ........................................................................... 159
Introduction.................................................................................................................... 159
Managerial Decision Making: An Introduction ............................................................ 160
Theory on General (Individual) Decision Making Behaviour ........................................... 161
Decision Quality and Choice ............................................................................................. 161
Cost-Benefit Trade Offs ..................................................................................................... 163
Decision Making Outcomes and Processes ....................................................................... 163
Differentiation and the Managerial Decision .................................................................... 165
Organizational Size Effects on Managerial Decision Making .......................................... 165
Routine Managerial Decision Making ............................................................................... 166
10
Time Related Factors in Managerial Decision Making .................................................... 167
The Role of Ethics in Managerial Decision Making .......................................................... 169
Uncertainty and the Managerial Decision ........................................................................ 170
Theory on Group Decision-Making ............................................................................... 171
Individualism, Collectivism, and Cultural Differences in Group Decision Making .......... 173
Cognitive Consensus and Team in Group Decision Making ............................................. 174
Compromise and Group Decision Making ........................................................................ 177
Expertise and Familiarity .................................................................................................. 177
Group Efficacy and Managerial Decision Making ............................................................ 178
Uncertainty, Motivation and the Group Decision ............................................................. 179
The Role of Communication in Group Decision Making................................................... 180
Face to Face versus Computer Aided Decisions ............................................................... 180
Groupthink and the Managerial Decision ......................................................................... 181
Risk and Information.......................................................................................................... 181
The Role of Gender in Group Decision Making ................................................................ 183
Virtual Decision Making Teams ........................................................................................ 184
Summary ........................................................................................................................ 185
Managerial Decision Making and New Product Development ..................................... 186
Traditional Product Development Decision Making ......................................................... 187
Knowledge Based Decision Systems for New Product Development ................................ 187
The Role of Strategic Alliances in the New Product Development Decision .................... 188
Contribution of Marketing Research to the Export Product C/S Decision ................... 188
Summary ........................................................................................................................ 190
Chapter 6 ....................................................................................................................... 191
QUALITATIVE STUDY AND CONCEPTUALISATION ............................................... 191
Introduction.................................................................................................................... 191
Export Food Product Customisation/Standardisation Decision Making: A Qualitative Study
........................................................................................................................................ 191
Design and Methodology ............................................................................................... 192
Qualitative Study: Findings ............................................................................................... 194
Table 6.1: Qualitative Study: The Respondents and Their Export Experience ............. 195
Table 6.2: Qualitative Study: The Respondents and Their Organisations .................... 196
Qualitative Study: Discussion and Conclusions ............................................................ 201
11
Figure 6.1: Initial Proposed Model: Factors in Managerial Export Food Product C/S
Decision Making re for China ....................................................................................... 204
Chapter 7 ....................................................................................................................... 205
QUANITATIVE METHODOLOGY FOR EMPIRICAL STUDY .................................... 205
Introduction.................................................................................................................... 205
Cross Cultural Research ................................................................................................ 205
Figure 7.1: Managerial Differences Across Cultures: Export Decision Makers and
Chinese Markets............................................................................................................. 206
Figure 7.2: Managerial Differences Across Cultures: Export Decision Makers in
Different Countries ........................................................................................................ 207
Figure 7.3: Cross Cultural Differences: Export Decision Making Between Individual
Regions and China ......................................................................................................... 208
Empirical Study: Methodology ...................................................................................... 210
Empirical Study: Operationalization of Constructs .......................................................... 210
Cultural Issues/Buyer Behaviour (CBB) ........................................................................ 211
Organisational Strategic Intent (OSI) ............................................................................... 212
Competitive Factors (CF) .................................................................................................. 213
Target Market Economic Conditions and Stage of Development (ECSD) ........................ 213
National Legal & Regulatory Context (NLRC) ................................................................. 213
Operationalized Model: Group and Individual Influences on Managerial Export Food
Product C/S Decision Making ....................................................................................... 214
Figure 7.4: Proposed Model: Group and Individual Influences on Managerial Export
Food Product C/S Decision Making .............................................................................. 215
Table 7.5 Empirical Study: Summary of Constructs and Their Measures .................... 216
Empirical Study: Hypotheses for Testing .......................................................................... 217
Questionnaire Design .................................................................................................... 218
Sampling ............................................................................................................................ 219
Summary ........................................................................................................................ 220
Chapter 8 ....................................................................................................................... 221
FINDINGS: EMPIRICAL STUDY ................................................................................. 221
Introduction.................................................................................................................... 221
The Respondents ............................................................................................................ 221
Table 8.1: Number of Staff Employed Worldwide ......................................................... 222
12
Table 8.2: Gender of Respondents ................................................................................. 223
Table 8.3: Age of Respondents....................................................................................... 223
Table 8.4: Years of Respondent Export Product Related Decision Experience ............ 224
Table 8.5: Gross Annual Sales Turnover of Respondents’ Organisations .................... 225
Table 8.6: Export Revenue Contribution to Gross Annual Sales Turnover .................. 226
Table 8.7a - Geographic Operational Bases of Respondent Exporters......................... 227
Table 8.7b – Location Where Respondents’ Organisations Make Their Export Decisions
........................................................................................................................................ 227
Findings on the ‘Buying Centre’ and Research Input Context to Export Decision Making228
Table 8.8 – Initial Marketing Research Responsibilities ............................................... 229
Table 8.9a: Consumption Patterns Selected for Initial Market/ing Research ............... 230
Table 8.9 b – Dietary Habits Selected for Initial Market/ing Research ........................ 230
Table 8.10: Primary Buyer/Distributor of Packaged Food ........................................... 231
Table 8.11: Primary Buyer/Distributor Involved in New Product Development .......... 231
Scale Development ......................................................................................................... 232
Table 8.12(a) – Exploratory Factor Analysis (EFA) ..................................................... 234
Table 8.12(b) – Exploratory Factor Analysis (EFA) ..................................................... 235
Table 8.13 - Factor Names and of Constructs ............................................................... 236
Table 8.14(a) - Confirmatory Factor Analysis (CFA) Goodness of Fit Statistics ......... 237
Table 8.14 (b) – Summary of Factor Items .................................................................... 240
Validity ........................................................................................................................... 241
Face Validity ...................................................................................................................... 241
Discriminant Validity ......................................................................................................... 241
Reliability ........................................................................................................................... 241
Table 8.15 - Summary of Independent and Moderating Variables: Descriptive Statistics
and Reliability (Cronbach’s Alpha) for Summated Scales ............................................ 242
The Impact of Respondent and Company Characteristics ............................................. 242
Table 8.16: P-Values for Krukal-Wallis Tests (Chi-Square Statistics) ......................... 244
Table 8.17: The Relationship Between Age and the Importance of Profitability Intent
(PI) (on scale of 1 = ‘ ‘ and 7 = ‘ ‘) .............................................................................. 245
Table 8.18: The Relationship between Company Size and the Importance of Buyer
Behaviour ....................................................................................................................... 245
Table 8.19: Age of the Decision Maker ......................................................................... 246
13
Table 8.20: Experience with Export to China, influence of China’s Economic
Development, and Decision Constraints........................................................................ 247
Table 8.21: Decision Constraints and Years of Export Product C/S Decision Making
Experience...................................................................................................................... 248
Hypothesis Testing ......................................................................................................... 248
Table 8.22: Pearson Correlations for Summative Scales .............................................. 250
Table 8.23: Regression Analysis .................................................................................... 251
Interpretation of Findings .............................................................................................. 252
Structural Equation Model (SEM) ................................................................................. 253
Contribution ....................................................................................................................... 261
Methodological and Theoretical Implications ............................................................... 262
Managerial Implications ................................................................................................ 264
Limitations of this Research .......................................................................................... 267
Recommendations for Further Research ........................................................................ 268
Location ............................................................................................................................. 268
Product Categories ............................................................................................................ 269
Services .............................................................................................................................. 270
Industrial Goods ................................................................................................................ 270
Application of Model to Multiple Marketing Mix Elements ......................................... 271
Policy Implications for Governments ............................................................................ 272
References ...................................................................................................................... 273
List of Appendices ......................................................................................................... 375
Background .................................................................................................................... 378
Decision Making ............................................................................................................ 378
The People’s Republic of China .................................................................................... 379
Your Customer(s) in China ............................................................................................ 382
China’s Economy ........................................................................................................... 383
New Product Development for China ............................................................................ 384
Branding ......................................................................................................................... 385
Country of Origin ........................................................................................................... 387
Chinese Culture/End User-Consumer Behaviour .......................................................... 388
Packaged Food Product Customisation/Standardisation Decisions for the People’s Republic
of China .......................................................................................................................... 388
14
About your organisation ................................................................................................ 402
Ethics Approval ............................................................................................................. 405
15
List of Figures
Figure 1.1: An Evaluation of Product Modification and Product Standardisation…… 34
Figure 1.2: A Model of Global Product Standardisation………………………………38
Figure 1.3 Degree of Marketing Strategy Formulation………………………………..39
Figure 3.1: A Conceptualisation of Country of Origin………………………………...106
Figure 3.2 – Various Conceptualisations of Country-of-Origin ………………………108
Figure 3.3: A Framework for Evaluating COO Influences in Product Evaluations …..109
Figure 3.4: The Effects of Extrinsic Product Cues……………………………………110
Figure 3.5: A Conceptual Model for Cue Usage in Product Evaluation and Purchase Intention
………………………………………………………………………………...............113
Figure 6.1: Initial Proposed Model: Factors in Managerial Export Food Product C/S Decision
Making for China …………………………………………………….............197
Figure 7.1: Managerial Differences across Cultures: Export Decision Makers and Chinese
Markets ……………………………………………………………………..................200
Figure 7.2: Managerial Differences across Cultures: Export Decision Makers in Different
Countries …………………………………………………………..………..................201
Figure 7.3: Cross Cultural Differences: Export Decision Making Between Individual
Regions and China ……………………………………………………………………202
Figure 7.4: Proposed Model: Group and Individual Influences on Managerial Export Food
Product C/S Decision Making …………………………………………………...........209
16
List of Tables
Table 2.1: A Taxonomy of Food Product Research......................................................63
Table 6.1: Qualitative Study: The Respondents and Their Export Experience....……189
Table 6.2: Qualitative Study: The Respondents and their Organisations…………….189
Table 7.5: Empirical study: Summary of Constructs and their Measures ……...……. 210
Table 8.1: Number of staff employed world-wide …………………………………… 216
Table 8.2: Gender of respondents ……………………………………………………. 217
Table 8.3: Age of respondents ……………………………………………………….. 217
Table 8.4: Years of respondent export product related decision experience ………… 218
Table 8.5: Gross annual sales turnover of respondents’ organisations ………………. 219
Table 8.6: Export revenue contribution to gross annual sales turnover ……………… 220
Table 8.7a: Geographic operational bases of respondent exporters ………………… 221
Table 8.7b: Location where respondents’ organisations make their export decisions...221
Table 8.8: Initial marketing research responsibilities ……………………………..…. 223
Table 8.9a: Consumption patterns selected for initial market/in research ………….. 224
Table 8.9b: Dietary habits selected for initial market/ing research ………………….. 224
Table 8.10: Primary buyer/distributor of packaged food ……………………………. 225
Table 8.11: Primary buyer/distributor involved in new product development …….. 225
Table 8.12: Exploratory factor analysis (EFA) ……………………………………… 228
Table 8.13: Factor names and encompassing constructs …………………………….. 230
Table 8.14(a): Confirmatory factor analysis (CFA) goodness of fit statistics ………… 231
Table 8.14(b): Summary of Factor Items………………………………………………..234
Table 8.15: Summary of independent and moderating variables: descriptive statistics and
reliability (Cronbach’s alpha) for summated scales ……………………………......... 236
Table 8.16: Kruskal Wallis tests for scales in relation to company characteristics (p-values
for Chi-square Statistics (* p<.01) ……………………………………………............ 238
Table 8.17: The Relationship between age and the importance of profitability intent (PI) (on
scale of 1 = ‘ ‘ and 7 = ‘ ‘) ………………………………………………………........ 239
Table 8.18: The Relationship between company size and the importance of buyer behaviour.
………………………………………………………………………………………......239
Table 8.19: Relationship between company size and the importance of buyer behaviour (IBB)
………………………………………………………………………………………….240
17
Table 8.20: Experience with export to China, influence of China’s economic development,
and decision constraints ………………………………………………….……………. 241
Table 8.21: Decision constraints and years of export product C/S decision making
experience……………………………………………………………………………. 242
Table 8.22: Pearson Correlations for Summative Scales ……………………………. 243
Table 8.23: Regression analysis ……………………………………………………... 245
Table 8.24: Summary of Findings ……………………………………………………. 252
18
Chapter 1
MANAGERIAL DECISION MAKING AND PRODUCT
CUSTOMISATION VERSUS STANDARDISATION
Introduction
As more organisations attempt to take advantage of international trade opportunities in
rapidly developing emerging economies, the need to understand strategic marketing decisions
made by exporters significantly increases (Raymond, Kim and Shao, 2001). For marketers to
create value for international or global customers, traditional marketing logic argues the need
to formulate and implement appropriate new product development strategies and processes to
meet the needs and demands of international markets (Johnson and Filippinio, 2013; Lai, et
al., 2011; Peres, Muller, and Mahajan, 2010; Schmid and Kotulla, 2011). International
marketers have to grapple with more demanding regional and global customers. A rising level
of international competition, suppliers and resource markets, pressures to keep pace with
rapid technological change in information and communication, must all be addressed by the
managerial decision maker (Czinkota, Ronkainen and Moffatt, 2010). In spite of the
important role that competition plays in determining marketing strategy, research on the role
of competition through product standardisation has been relatively sparse (Viswanathan and
Dickson, 2007).
This study considers the development and export of packaged food products to China and the
product customisation or product standardisation decision inherent in product development.
With a population of 1.3 billion people, a rising per capita income and a booming economy,
China’s urban consumers have developed a growing interest and demand for quality imported
packaged foods (http://www.euromonitor.com 2008) that comply with international standards
(Horton, 1998). Such is the demand for quality imported packaged foods, that in 2007-08,
Australian food exports to China were valued at AUD$928 million, up to 40 from the
previous year (Source: Food Australia Report - Australian Food Statistics 2008). In light of
this, the Australian government established the Small Business Development Corporation to
assist domestic producers find export markets for their products to benefit from the growing
19
importance of exporting (especially foods) to other countries
(http://www.exporters.sbdc.com.au/07_02_exportready.asp). Whilst this study is international
in its nature, that is, this study looks at how food export marketers from various nations make
product related decisions for China, Australia is used as the base from which the qualitative
data for this study is collected, as this country represents the researcher’s home base. Further,
Australia as a food producer and importer has placed an emphasis on food safety (Hobbs,
Fearne, and Spriggs, 2002; Smith and Riemuller, 1999) and food quality assurance (Wills and
Harris, 1994) for their locally made and exported produce. These emphases, if promoted
within China, may alter the thinking of local food producer and exporters from other nations
in light of China’s recent food problems (Gossner, et al, 2009; Ingelfinger, 2008; Xin and
Stone, 2008).
Background
Field studies have shown that there is a great need for more systematic research to advance
the understanding of the management of international new product development and the
strategic decisions associated with developing new products for foreign markets (Leonidou,
1996; 1998). Of particular interest in this research study are strategic product decisions
related to the need to market adapted or standardised packaged food products to China.
Surprisingly, very little research has examined this phenomenon given the importance of food
for daily survival and the number of food exporters targeting China as a packaged and
organic food export destination (Gale, 2002b). The researcher extends the current knowledge
by focusing on the managerial decisions associated with exporting customised or
standardised food products to China. In doing so, the researcher hopes to bridge the
knowledge gap on how these managerial decisions are made, and to what extend if any food
manufacturers adapt (or customise) their products for export to China, and hope the
researcher can assist practitioners to make more accurate packaged food product development
decisions for China.
China is the focal geographical setting for this study for several reasons. China has
experienced near double digit economic growth for the past two decades. Perhaps more
importantly, China accounts for one-sixth of the world’s food market (Anderson and Peng,
20
1998). Indeed, Anderson and Peng (1998) posit that China will become a significant net
importer of food. This is because to do otherwise would be very costly in terms of the
economic growth that would have to be foregone by this densely populated country. They
add maintaining self-sufficiency in food without slowing industrial development and
economic growth is simply not going to be possible. Finally, as per capita GDP increases in
China and the effects of integration into a global economy take place, Chinese consumers’
demand for imported food products is likely to increase (Ravallion and Chen, 2007). In light
of this, we are interested in examining what effect, if any, these factors have on consumers’
preference for imported food product to determine whether imported food products in China.
Particularly, whether consumers in China prefer imported food products that are
manufactured and exported to an international standard or customised to the specific needs of
China’s food market.
Overview of Product Standardisation and Customisation
To demonstrate the importance of the managerial decision to customise or adapt products
Lim, Sharkey, and Heinrichs (2006) argue that organisations with a product development
focus have an advantage in efficient production as compared with those pursuing a market
penetration strategy. However, they also suggest that organisations pursuing a product
development strategy need greater resource commitment than organisations that pursue an
international market penetration strategy.
International marketing strategies may be differentiated according to the degree of
customisation (or customisation) versus standardisation pursued with respect to one or more
marketing mix elements. A standardisation strategy involves uniform marketing mix
elements across different national markets, whilst a customisation strategy involves the
tailoring of marketing mix elements to each international market (Chung, 2005; Lim, Acito,
and Rusetski, 2006; Siraliova and Angelis, 2006). Within a packaged food context,
customisation refers, but is not limited to, the customisation of the product’s packaging,
ingredients, and labelling (Regmi and Gehlhar, 2005; Sajilata et al. 2007). In this study,
reference will be made to the product customisation or standardisation decision through the
abbreviation of product C/S.
21
Ryans, Griffith, and White (2003) argue that the last 40 years of scholarly research in product
C/S within international marketing strategy has advanced without a strong underlying
theoretical framework. They suggest that the primary underlying elements of research in this
area have remained relatively constant, with researchers unable to substantiate some of the
key underlying assumptions regarding the value of standardisation. This is an interesting
finding given Shoham’s (2003) assertion that the extent to which a product is standardised
influences an organisation’s ability to unlock opportunities for competitive advantage in
primary and support activities of its value chain, to rapidly enter export markets, and to
standardise positioning strategies. By contrast, other researchers report that an organisation’s
international product customisation strategy leads to sales growth but not market share.
(Leonidou, Katsikeas, and Samiee, 2002). It is important here to define or explain some key
terms.
Key Terms Defined
The current study attempts to explore the managerial decisions related to export food product
C/S for China. The study attempts to build a theoretical and empirical understanding of the
antecedent factors affecting such a decision. To enable a clearer understanding of some of the
key concepts that impact the export food product C/S, this study uses the extant literature to
define some key terms. In doing so, it is noted the extant literature offers no one universally
accepted definition of the key terms.
The key terms being defined in this study are not only central to understanding the concepts
that impact the packaged food product C/S decision, they are also common expressions found
in the extant literature on product C/S studies. These terms include standardisation,
globalisation, and product customisation.
Standardisation
Buzzell (1968, p. 103) defines standardisation as
22
Offering identical product lines at identical prices through identical distribution systems,
supported by identical promotional programs in several different countries.
Medina and Duffy (1998, p. 225) offer a more refined definition:
The process of extending and effectively applying domestic target-market dictated product
standards, tangible or intangible attributes, to markets in foreign environments.
In a broader context Picard, Boddewyn and Grosse (1998, p.38) suggest that marketing
standardisation is
The degree of similarity in the marketing activities, programs or policies of a multinational
enterprise from one country to another.
Globalisation
Robertson (1987, p.38) defines globalisation as
The crystallisation of the world as one place.
Rundh (2007, p. 181) offers an economic based definition of globalisation, that is,
The shift toward a more integrated and interdependent world economy.
Hannertz (1990, p. 237) suggests that a ‘world culture’ is emerging as a result of increased
globalisation. World culture in the Hannertz context is the:
Interconnectedness of varied local cultures as well as through the development of
cultures without clear anchorage in any one territory.
23
Product Adaptation
Jain (1989, p. 77) defines product adaptation as
The degree to which physical product change when they cross national boundaries.
In contrast, Johnson and Aruthanes (1995, p. 33) define product customisation strategy as
A firm’s consistent and planned activities to meet local consumers’ preferences and
values.
To refine this definition and internationalise its context, Medina and Duffy (1998, p. 225)
offer
The mandatory modification of domestic target-market dictated product standards,
tangible or intangible, as to make the product suitable to foreign environmental
conditions.
In the Medina and Duffy (1998) definition, mandatory refers to compulsory changes made to
either an existing or new product to ensure its conformance to cultural or legal requirements
in a foreign country. Thus, Medina and Duffy (1998) refer to product adaptation as a form of
product customisation.
For the purpose of this study, the Medina and Duffy definition of product standardisation will
be adopted for its conciseness and clarity. Product customisation is generally perceived as the
opposite of product standardisation. Bonaccorsi (1993) distinguishes product customisation to
foreign markets and product customisation to individual foreign customer requirements. The
former involves customising products for specific country markets. The latter refers to
customising products for individual buyers in an international market and tends to be more
prevalent in industrial or business to business marketing. The current research is concerned
with the food product customisation for China’s food markets. China serves as the export
destination for this study because the extent of product C/S may be impacted by the country’s
diverse ethnic population (Xu, et al, 2005), who have diverse food preferences (Wright,
24
Nancarrow, and Kwok, 2001). Further, China as a food export destination makes for
interesting product C/S study due to the nation’s climate which affects where locally
produced food is grown and stored for further processing (Heilig, Fischer, and Van
Velthuisen, 2000), and its infrastructure which affects how locally produced or imported food
reaches its target audience (Li and Shum, 2001). Further, the term product adaptation will be
referred to as product customisation throughout the rest of this thesis for consistency.
Product Market Strategy
Product market strategy concerns how an organisation intends to compete in the markets it
chooses to serve (Day and Wensley, 1988). Product market strategy has been conceptualised
in the literature in terms of two decisions. First product market scope illustrates how a
marketing organisation intends to target its intended consumers (i.e. broad or narrow focus)
(Yarborough, Morgan and Vorhies, 2011), while value proposition refers to the benefit/cost
bundle created by the marketing organisation to target its intended consumers (Slater and
Olson, 2001).
The Argument for Product Standardisation
The globalisation of markets is the principal driving force behind the need for global product
standardisation thinking (Loyka and Powers, 2003).
Proponents of standardisation essentially argue that world markets have become more
homogeneous and that a standardised approach to international product planning can generate
advantages through economies of scale and greater efficiencies (Buzzell, 1968; Kogut, 1985;
Levitt, 1983; Ryans, Griffith, and White, 2003; Viswanathan and Dickson, 2007). Rapid
advances in transportation and communication technologies have facilitated this trend
towards homogenisation of world markets (Ohmae, 1985). In light of this, Buatsi (1986)
suggested that product standardisation can lower inventory handling, spare parts, and
maintenance costs and the cost of training service personnel, although this argument appears
less immediately compelling in the case of packaged food products, than in, consumer
durables for example. Kotabe (1990) posits that European and Japanese organisations that
25
their standardised products had higher levels of product innovation (a source of competitive
advantage) than those using product customisations. Similarly, Chung (2009) suggests that
organisations should standardise their products when marketing to nations that have a high
cross-national similarity and in the economic and cultural marketing environments, especially
if the similarities pertain to consumers’ tastes and preferences (Lim, Acito, and Rusetski,
2006).
In light of these general effects of globalisation, an important question becomes: How does
the globalisation phenomenon influence an export decision maker’s product strategies? Pitta
(2005) echoes many claims that the first lesson many export decision makers learn is that
culture remains an important factor in globalising business process. However, culture is
extremely difficult to define. Kroeber and Kluckhohn (1952) identified over 140 conceptual
definitions of this construct.
In addition to cultural understanding, a standardised approach to sourcing, production,
marketing, and other organisational functions seems to be both feasible and desirable (Lee,
Roehl, and Choe, 2000). Consumer heterogeneity in one country is likely to be high (Roth
1995) such that companies may benefit from seeking similar segments across markets and
standardising their product rather than customising products to appeal to different segments
in different markets, although both approaches acknowledge the importance of matching
product offering to local market characteristics. When consumer preferences and
communication requirements are largely similar among consumers of diverse cultures, a
standardised product strategy can be cost effective (Cui, 1997). Similarly, global products
have been shown to be beneficial in emerging markets under transition economies (Lee and
Tai, 2009). Explication of the phenomena of globalisation strengthens the argument for
product standardisation. Why customise products when the world (and therefore consumers)
is becoming increasingly globalised in its tastes?
One of the many possible answers to this question comes from a study undertaken by
Bardakci and Whitelock (2000) which reveals that managers see a standardised brand name
as a key element in competing globally for both consumer and industrial goods marketers,
since a standardised brand name is seen as essential in obtaining global recognition.
26
Similarly, Alashban, et al., (2002) note that successful international marketers are those that
treat market segments as global entities, not local ones.
Proponents of the standardisation approach argue that in light of the accelerating
internationalisation of world economies and the parallel increase in competition on a global
scale, due to factors such as technological advancements, trade liberalization and economic
integration, success lies in the development of universal marketing mix strategies (Leonidou,
1996). Yet, while standardisation can offer economies of scale, it can also lead to suboptimal
sales when it is inconsistent with the environment in the host market (Yip, 2003). Schuh
(2000) found that strong corporate cultures and management practices with regard to quality,
innovation, and product performance are also antecedents of product standardisation.
Levitt’s Product Standardisation Argument
Perhaps the greatest proponent of the product standardisation in international markets is
Theodore Levitt. In his seminal article, Levitt (1983, p.33), asserts that well managed
companies have moved from an emphasis on customising items to offering globally
standardised products that are advanced, functional, reliable and low priced. He states that
there are essentially two types of firms engaged in international marketing. The global
corporation that ‘operates with resolute constancy, at low relative cost, as if the entire world
(or major regions of it) were a single entity; it sells the same things the same way
everywhere.’ The multinational corporation on the other hand, ‘adjusts its products and
practices in each country, at high relative cost.’ A product standardisation strategy helps
organisations provide more consistent offerings to their customers and more uniform
planning and control procedures to their international operations (Chung, 2005).
Levitt also suggests that multinational corporations are dinosaurs because ancient differences
in national tastes and modes of doing business are disappearing. He cites examples of
successful Japanese conglomerates that sell standardised products (such as robots, hi-fi
equipment, computers, and software) globally with little consideration for customisation to
accommodate national differences. Levitt (1983, p. 35) states, ‘if a company forces costs
down and pushes quality and reliability up, while maintaining reasonable concern for
27
suitability, customers will prefer its world-standardised products.’ Similarly, Katsikeas,
Samiee, and Theodosiou, (2006) suggest that a higher degree of customisation is likely when
there is a similarity in institutions (e.g. media, intermediaries, trade facilitation agents) within
the nation markets selected.
Whilst Levitt does not dispute that countries have different national tastes, cultural
preferences and business institutions, he believes these are ‘vestiges of the past.’ He cites
generic examples of pita bread, pizza, jazz, and country and western music being enjoyed
everywhere in the world. These products target market segments that exist in worldwide
proportions. He argues that rather than contradicting global homogenisation, they confirm it.
Levitt (1983, p. 93) also argues against the assumption that an extant difference must remain
in place.
I do not advocate the systematic disregard of local and nation differences. But a
company’s sensitivity to such differences does not require that it ignore the possibility
of doing things differently or better.
In summary, Levitt (1983 p. 94) states,
The successful global corporation does not abjure customisation of differentiation for the
requirement of markets that differ in product preferences, spending patterns, shopping
preferences, and institutional or legal arrangements. But the global corporation accepts
and adjusts to these differences only reluctantly, only after relentlessly testing their
immutability, after trying in various ways to circumvent and reshape them…
Levitt (1983, p.95) further suggests:
The global competitor will seek constantly to standardise his offering everywhere. He
will digress from this standardisation only after exhausting all possibilities to retain it and
he will push for reinstatement of standardisation whenever digression and divergence
have occurred.
28
The premise underlying Levitt’s argument is: do not customise for the sake of customisation.
Always seek to sell standardised products everywhere and if this is not possible, then and
only then, customise your products. Levitt’s approach appears on the surface to contradict the
‘marketing concept’, whereby marketers determine what the customer wants, and then
prepare a marketing mix to suit. Levitt (1983, p.100) answers this criticism by stating that,
Marketers falsely presume that marketing means giving the consumer what he says he
wants rather than trying to understand exactly what he’d like.
Levitt (1983, p. 100) argues that Japanese companies operate almost entirely without
marketing departments or market research of the kind prevalent in the West, yet they have
been successful in their international expansion.
They have done this not by looking with mechanistic thoroughness at the way that the
markets are different but rather by searching for meaning with a deeper wisdom.
Additional Product Standardisation Views
Whilst acknowledging that complete standardisation of products for international markets is
difficult and impractical, Jain (1989) suggests that the marketplace is becoming increasingly
global and the decision to standardise needs examination in terms of its impact on
competitive advantage. Jain sites examples of Mercedes Benz, and Coca Cola among
consumer goods and Boeing among industrial goods as examples of global products. The
likelihood of successful program standardisation according to Jain depends on a variety of
factors that include ‘the nature of the product’, ‘environment’, ‘organisational factors’ and
(presumably specific aspects of) the target market and its ‘position’ vis-a-vis) are similar to
such factors. Jain asserts that total standardisation is unthinkable and that the degree of
standardisation in a product/market situation should be examined in terms of its long-term
advantage.
Taking Jain’s (1989) position on standardisation, it is reasonable to ask (in the context of this
study): If exporters do decide to adapt their offering for China, to what extent does the
29
offering need to be adapted? Which elements require the most customisation and which
require the least? What specific environmental factors within China influence the product
standardisation decision and why?
An alternate way of looking at target markets involves dividing the entire market into discrete
groups of consumers, that is, in terms of discrete homogenous segments within nations
(Ganesh and Oakenfull, 1999). This leads Jain (1989, p. 74) to propose that:
Standardisation strategy is more effective if worldwide customers, not countries, are
the basis for identifying the segment(s) to serve.
Considering a variable he terms market position, Jain suggests that in addition to segmenting
world (geographical) markets, market-specific contexts must be considered. Market
development, market conditions, and competitive factors must also be considered. The reason
for this is that different markets are at different stages of development. An explanation of this
is suggested by product life cycle theory. If, for example, a product is in the maturity stage of
the product life cycle in Australia, and the same product is in for example, the growth stage
of the product life cycle in China, there may need to be appropriate changes in the product
design to make adequate product/market match. According to Jain there are three market
conditions that influence the decision. These are cultural differences, economic differences
and differences in customer perceptions. Jain (1989, p. 75) proposes:
The greater the similarity in the markets in terms of customer behaviour and lifestyle,
the higher the degree of standardisation.
Jain (1989, p 75) also proposed:
The higher the cultural compatibility of the product across the host countries, the
greater the degree of standardisation.
30
The Argument for Product Customisation
An often stated basic aim of the ‘marketing concept’ is to identify consumers with a given
need and then provide them with an offering that satisfies that need in a manner superior to
that of your competition (Kotler and Keller, 2012), then the product offering (in this case a
tangible food product) is critical. Empirical studies have tended to support the idea that
marketers can meet consumers’ needs over time better than the competition by offering a
high variety product line (Kahn, 1998). Boddewyn, Soehl, and Picard (1986) report that
organisations perceive competition is the most important obstacle in standardising any
element of the marketing. In light of this, Cavusgil, Zou and Naidu (1993) found that the
most important consideration in a packaging and labelling customisation decision is the
intensity of competition in the foreign market.
Organisations that support customisation in market offerings do so, on the basis that despite a
more globalized world, people still retain their unique cultures, backgrounds, and tastes
(Hofstede, 1997). By adapting market programs and processes, companies are seeking to be
more responsive to diverse demands from targeted groups of consumers, thus capturing more
market share than those who do not adapt (Leonidou 1996; Ozsomer, Bodur, and Cavusgil
1991). Many have empirically shown the importance of local customisation, especially as it
relates to marketing communication (Burt, Johansson, and Thelander 2010; Lee and Tai
2009). For an organisation that wants to use adaptive strategies in its multinational
operations, it is important not to be too ethnocentric, or home-country oriented, so as not to
think that what works well in one’s home country will work well in all other cultures (Burt,
Johansson, and Thelander 2010; Jain 1989).
Despite its importance, product customisation has no universally accepted definition. Other
similar terms have been used in lieu of product customisation such as ‘localisation.’ In light
of this, the American Marketing Association defines product customisation as the strategy of
developing new products by modifying or improving the product innovations of others.
The American Marketing Association’s definition introduces the possibility of product
standards being an integral aspect of product customisation. Product standards are
requirements that specify characteristics that a product must have. Because product standards
31
impose requirements on the manufacturer, these standards can impede export trade, therefore
affecting an organisation’s decision to export or invest in production abroad (Neff and
Malanoski, 1996). Further, nations specify minimum product standards that enforce some
degree of product customisation.
Research evidence suggests that product customisation has a number of different conceptual
constructs. For instance, Kahn (1998) and Bardacki and Whitelock (2003) suggest that
variety in a product line will make it more likely that each consumer finds the exact option
they desire, boosting market share and profitability. In a study of Canadian companies
conducting business in Japan, Ryans (1988) found that products that were modified to meet
the needs of the Japanese consumer had significantly higher market share than the products
that were not. Kahn’s idea is central to the argument of product customisation strategy. The
more choice an export organisation offers (profitably) to international consumers, the more
likely it is to succeed in export markets in the long term. The purpose of this research study is
to gain a detailed understanding of the managerial decision makers make the product C/S
decisions. For example, how do managers decide how long their product line should be
relative to the line in our home market, or what brand related changes may be required for the
export market?
Given the importance product development plays in organisational success, Kotler (1986)
asserts that international product failures have been caused by a lack of product
customisation. He advocates product customisation because consumer demand in different
nations for specific product features is different, whilst Valenzuela and Dhar (2004) argue
that product customisation allows decomposition of the purchase decision into a series of
smaller sub problems affecting consumers’ choice evaluation. Bardakci and Whitelock
(2003) argue that customers now seek exactly what they need, when they need it and how
they need it at affordable prices. They are not willing to wait for customised products, but are
seeking customised products in record time and without having to make sacrifices to acquire
those products (Kotha, 1995).
Using macro-environmental forces to examine product related decisions for international
markets, Schuh (2000) states that by employing a more responsive international
differentiation (customisation) strategy, different levels of market development and the
32
differences in household income, customer expectations, and usage patterns could be better
addressed. He found that adjustments in the product mix occur mainly among non-core
elements and are often kept to a minimum – such as product instructions, labelling of content,
package design, and names of consumer products are changed to meet legal requirements in
foreign markets.
Forms of Product Customisation
Gilmore and Pine (1997) propose four distinct approaches to customisation. These are:
Collaborative – the conduct of discussions with key customers who articulate their
needs, to define the precise goods and services that meet those needs, and then to
produce that offering.
Adaptive – offering one standardised yet customisable product, designed such that
buyers can alter it themselves.
Cosmetic – offering a standard product differently to different customers. Marketing
communications becomes an important strategy in communicating differences to
different consumers.
Transparent – providing customers with unique goods and services without letting
them know explicitly that those offerings have been customised to suit the specific
target market(s).
Each of these approaches would appear to have possible application with packaged food
products. The applications vary from the degree of customer orientation to the degree of
product C/S. Indeed applications extend to other marketing variables, especially promotional
activities within the exporting organisation.
An alternative approach to product customisation is offered by Mintzberg (1988) who argues
that customisation can take three distinct forms. These are:
Pure customisation strategy – furnishes products designed and produced from scratch
for each individual customer
Tailored customisation strategy – requires a basic design that is altered to meet the
specific needs of consumers, while a
33
Standardised customisation strategy – the final product is assembled from a
predetermined set of components.
The Mintzberg (1988) and Gilmore and Pine (2007) frameworks provide export decision
makers with a platform on which to consider their export product customisation decision. An
international marketer may (for example) adopt a cosmetic approach in their domestic market
and a transparent approach in one or more of their export markets.
Factors Affecting Product Customisation
The design of a product for a specific market affects consumers’ beliefs about the product
and brand (Bittner, 1992; Solomon, 1983). In that vein, Keegan and Green (2000) recognise
that the degree of product customisation to a national locality is related to cultural sensitivity.
They suggest a continuum of product categories, with industrial (business to business)
products being the least sensitive to culture, computers being in the middle of the continuum,
and food being the most sensitive to culture and requiring the most customisation to the
specific needs of different national markets. This would encourage us to expect that culture
would emerge as a key factor in this study of factors influential in the managerial C/S
decision regarding packaged food products for China.
Some organisations take a proactive stance by imbedding the customisation issue in their
product development strategy. Others focus on commonalities across multiple markets
(Appiah-Adu, 1999). Johnson and Aruthanes (1995) conducted a comprehensive study into
market related determinants of product customisation that impact on the performance of
United States exporting firms. Their research distinguishes between actual product
customisation and ideal product customisation. The actual can be defined as the similarity
between exported and domestic product on measurement units, size, brand packaging,
contents and quality (Douglas and Wind, 1987). The ideal is defined as the marketing
manager’s opinion of the extent to which the product should be adapted on the same factors.
This study attempts to measure the actual rather than the ideal amount of food product
customisation undertaken.
34
The study undertaken by Johnson and Aruthanes (1995) concludes that determinants such as
government regulation, infrastructure differences, cultural differences, competitive intensity
and end-user differences determine the extent to which ideal or actual product customisation
takes place. Similarly, Vrontis, Thrassou, and Lamprianou (2009) placed multinational
companies on a linear continuum in terms of their standardization-customisation ratio. Then,
they separated various environmental factors into ‘significant’ and ‘peripheral’ reasons
pulling towards standardization or customisation, so that practitioners can adjust their
behaviour according to the dynamics of their served markets. This in turn affects
organisational performance (market share, sales growth, profit).
The Johnson and Aruthanes (1995) research addressed one weakness in Cavusgil, Zhou, and
Naidu’s (1993) research namely, the distinction between consumer goods and industrial
goods when it comes to making international product customisation decisions. Interestingly,
one of Johnson and Aruthanes’ hypotheses, namely, that the level of actual product
customisation positively affects the firm’s performance was supported. Further, in another
hypothesis, that the level of actual product customisation positively affects market share did
not receive support. This gives support for the value of standardisation.
Supporters of the customisation or localisation philosophy have found that due to the inherent
complexities and dissimilarities involved in operating in the international marketplace,
particularly as regards macro-environmental forces, consumer behaviour, usage patterns, and
competitive situations, it is more viable to have a marketing program tailored to the
individual needs of each foreign market (Grewal and Dharwadkar, 2002; Leonidou, 1996).
For example, Li and Atuahene-Gima (2001) found that organisations marketing high
technology ventures into China were forced to adapt their offerings because of the inherent
risk and resource consuming activity of marketing new technologies to a developing
economy. Further, organisations have to adapt their product offerings in export markets with
high cross-national differences in the economic macro-environments compared to those of
the exporter’s home market (Schilke, Reimann, and Thomas 2009), or where there is a high
cross-national psychic distance (Sousa and Lengler, 2009). In addition, Felzenstein, Hibbert,
and Vong, (2001, p. 77) suggest:
35
If geographic origin imparts a quality differentiation, the producer possesses an
attribute that cannot be easily duplicated, if at all.
This suggests a competitive advantage for some food exporters based on their (product’s)
country of origin.
Summary of the Product C/S Considerations
The rapid proliferation of options in many product markets throughout the world and the
potential for information overload has created an important role for product customisation
(Dhar, Valenzuela and Zettemeyer, 2004). A customised product must be designed to
customer specifications (Duray, et al., 2000). A product’s appropriate customisations for a
foreign market are determined by a number of marketing and non-marketing factors such as,
local government regulations, industry standards, market competition, cost considerations,
societal values, cultural beliefs, and the unique human factors surrounding the consumption
of a product. The role of government influence in the product customisation decision is
considered a crucial factor in an international marketer’s strategy (Cavusgil, Zou and Naidu,
1993; Jain, 1989). In general, it is agreed that the customisation of an organisation’s product
for export markets enhances that organisation’s performance (Shoham, 1995, 1996).
However, existing research suggests that the standardisation of process is also likely related
to an organisation’s performance in export markets (Kotabe, 1990). An export manager could
realistically be expected to take at least some of these contributions into account during the
packaged food product customisation/standardisation decision. In light of this, this study
investigates how international product development and branding strategy decisions are made
for packaged food products exported to the People’s Republic of China.
Product Customisation or Standardisation: Some Theoretical
Foundations
The theoretical foundations of the C/S debate centre on the perception of consumer
homogeneity or the movement to homogeneity (Levitt, 1983: Samiee and Roth, 1992;
36
Walters and Toyne, 1989). Studies in this area have tended to look at the various aspects of
the marketing mix in isolation, focusing mainly on one element (Jain, 1989). However, as
Cavusgil and Zou (1994) posit, a much richer understanding of the product customisation
versus standardisation decision may be obtained by considering the extent to which the
domestic marketing product strategies may be transferred to a particular export market. This
is important in light of the fact that previous studies condemned the assumption that ‘a
product that is successful in the domestic market will be successful in any other
(international) market’ (Cateora and Hess, 1975, p. 171).
Medina and Duffy (1998) propose distinctions between the terms ‘globalisation’,
‘standardisation’, ‘customisation’ and ‘customisation.’ For the purposes of clarity, this thesis
the terms product standardisation will be used instead of product globalisation.
The Importance of the Product Customisation or Standardisation
Managerial Decision for Exporters
The issue of product standardisation versus customisation may be of little concern to
international marketers of commodities. However, organisations that market non-commodity
consumer or industrial goods or services may need to consider the product customisation
issue more carefully. This study considers the merits of, and influences on, international
product customisation whilst acknowledging the view that some organisations can
successfully market a standardised product (essentially their domestic product) in foreign
markets. Although most companies’ new (export) product development strategies lie
somewhere between the extremes of total customisation (customisation) and total
standardisation (Quelch and Hoff, 1986), export decision makers often have little empirical
evidence indicating when they should customise their product and how their strategy
selection will affect brand performance (Brown and Eisenhardt, 1995; Jain, 1989; Sakaraya,
Eckman, and Hyllegard, 2007). As Quelch and Hoff (1986) posit, the basic question in global
marketing is not whether or not to ‘go global’, but rather to what degree, and how. The focus
of this study is the managerial customisation/standardisation decision, in the context of
exporting packaged foods products to China. This study explores the factors managers
actually take into account in this crucial decision. The study does not venture to question of
37
what factors they should take into account. Instead, the study is concerned with the
managerial actuality. Such knowledge may unleash a range of further questions concerning
linkages between influential factors on manager’s decisions and organisational export
outcomes, profitability and the like. However, these are not the focus of the current study.
The contribution of this study lies in understanding the context and dynamics of packaged
food product C/S decision making, specifically with regard to China. In the course of the
research a secondary focus developed on the gaining of an enhanced understanding of the
role of intermediaries in this decision making.
A significant literature exists on the topic of product standardisation versus customisation.
However, despite this research effort, there is little agreement on the specific conditions
under which either standardisation or customisation is appropriate in foreign markets. Despite
repeated calls for studies on the performance implications of standardisation or customisation
(Cooper and Kleinschmidt, 1987; Brown and Eisenhardt, 1995; Jain, 1989) there are only a
limited number of such studies (Katsikeas, Samiee, and Theodosiou, 2006). The current study
does not however address these questions. Rather, it seeks to extend knowledge by modelling
the decision influences which currently are salient upon managers at the product
(customisation or standardisation) level. How do export managers actually make crucial C/S
decisions?
Frameworks for the Product Customisation or Standardisation
Decision
Cavusgil, Zou, and Naidu (1993, p. 483) observed:
In a limited number of empirical studies that have been conducted on the topic, only
the bi-variate relationships have been assessed, leaving the relative significance of
individual explanatory factors unknown.
Cavusgil, Zou, and Naidu’s (1993) research proposed and then empirically tested a
conceptual framework for the correlation of product and promotional customisation decisions
for export markets. While Cavusgil, Zou, and Naidu’s study provides managerial decision
38
makers with insight into the product C/S versus standardisation for export markets, their work
includes the marketing mix variable of promotion which is not included in this study. Further,
their work is not specific to either packaged food products or China as an export destination.
The Cavusgil, Zou and Naidu (1993) study examined export venture cases. The degree of
product customisation upon and after international market entry, was measured on a 5 point
bipolar scale where 1 = no customisation, 5 = substantial customisation. Nine independent
variables were also established and measured on 5 point bipolar scales:
One limitation of Cavusgil, Zou, and Naidu’s (1993) research is that they focused on
organisations that undertook international marketing via export. This ignores organisations
that pursue international markets via foreign market entry methods that offer greater risk,
commitment, reward and control over the international marketing activity. Such international
entry modes include licensing, joint ventures, strategic alliances, foreign direct investment,
green-field operations or manufacturing and assembly. This may imply that an organisation’s
choice of international market entry mode affects their product customisation decisions for
international markets. This study similarly focuses on export decisions, rather than market
participation via other entry modes.
A second limitation of Cavusgil, Zou, and Naidu’s research is that they bundled consumer
goods and industrial goods into one research study. Whilst they tried to balance the number
of industrial goods cases (47.3 per cent of the total sample) with the number of consumer
goods cases (52.7 per cent), this study ignored the possibility that one product classification
(for example, consumer goods) may require a greater degree of customisation than the other.
Essentially the current study continues the work of Cavisgil, Zou, and Naidu, restricting itself
to a highly specific export context- that of product customisation (only i.e. only this area of
the marketing mix) of packaged food for export to China, attempting to model the actual
decision making such managers undertake.
Delene, Meloche, and Hodskins (1997) present a decision framework for determining
strategic international product strategy alternatives. Their research provides a framework
based on three factors: company heritage, market and product factors, and selected target
markets. Delene, Meloche, and Hodskins propose that international product strategy
39
decisions should be made on the basis of the competitive advantage that they provide in the
export market. Competitive advantage is gained from increases in customer delivered value
derived from product strategy decisions (Frambach, Prabhu, and Verhallen, 2003; Landwehr,
Wentzel, and Herrman, 2012).
Within the Delene, Meloche, and Hodskins framework of company heritage, defined as, the
company’s culture and values including the prevalence of innovation and change patterns;
historic traditions of a market orientation or an operations and production orientation, and the
organisation’s concentration on quality. Delene, Meloche, and Hodskins cite as an example
the experience of Caterpillar Inc. When re-entering the Vietnam market Catepillar Inc. had to
establish their own dealerships rather than continue an historic pattern of local dealer
partnerships.
Further, in Delene, Meloche, and Hodskins’s framework market and product characteristics
are explained as the nature of the market itself and whether the products involved are
perceived as a commodity, service or manufactured goods by the market. The third element
in the Delene, Meloche, and Hodskins framework involves characteristics of the target
market as reflected in the target market profiles. This profile should include: segment or
market size, knowledge of consumers’ buying processes and purchase criteria, along with
market intelligence about related economic, legal and cultural issues. These three factors are
integrated into a framework to help organise and design suitable international product
strategy. The implications for product modification or product standardisation can be
evaluated as follows:
40
Figure 1.1: An Evaluation of Product Modification and Product Standardisation
PRODUCT MODIFICATION COSTS1 Low Market Variability High Market Variability 1High Low High High
Low
Target
Market
Appeal3
1
Aggressive modifier
------------------------4
Selective market
seeker
3
Selective
standardiser/modifier
-----------------------------
Selective market seeker
5
Selective
modifier/standardiser
----------------------------
Company heritage
improvement
7
Aggressive
standardiser
-------------------------
Company heritage
improvement
High
Target
Market
Appeal
2
Aggressive modifier
--------------------------
Aggressive market
seeker
4
Selective
standardiser/modifier
-----------------------------
Aggressive market
seeker
6
Selective
modifier/standardiser
----------------------------
Aggressive company
heritage improvement
8
Aggressive
standardiser
-------------------------
Aggressive
company heritage
improvement
Adapted from Delene, Linda M., Meloche, Martin S., Hodskins, John S. (1997) International Product Strategy: Building the
Standardisation-Modification Decision, Irish Marketing Review, Volume 10, Number 1.
Delene, Meloche, and Hodskins’s (1997) matrix enables useful analysis for international
marketers faced with product C/S decisions. For example, in Figure 1.1 an organisation that
finds itself in cell one would best follow an aggressive product modification strategy driven
by continuous monitoring of changing target market needs. Still in Figure 1.1, an organisation
in cell two will also aggressively modify their product offering, but will have to be more
aggressive in its market seeking behaviour since current markets are not appealing.
The Delene, Meloche, and Hodskins decision chart underscores the complexity of
international product decisions. It provides general guidelines only, and of course is not
specific to any one market. This study seeks to provide a detailed understanding of how
1The product modification costs are most influenced by the company heritage, especially the type of orientation, environmental awareness, and technology environment 2 The market variability is most influenced by market and product characteristics, especially the market value of modification, product, and market types. 3. The target market appeal is most influenced by target market factors, especially revenue potential, target market size, and competition. 4. Above the dashed line is the recommended current strategy for a company occupying that cell. The future strategic direction is indicated below the dashed line.
41
product C/S decisions are actually made, within one very specific context- that of packaged
food product export to China.
Branding and the Product Customisation or Standardisation Decision
Scholarly interest in consumer perceptions of brand image and how it is affected by cross-
border shifts in product C/S or on country of origin effect has attracted a lot of attention.
Because of these cross border differences in brand image, Keller and Moorthi (2003) suggest
it is advisable for international marketers to make a product’s brand image more
demonstrably functional in developing economies such as that of China. Nebenzahl and Jaffe
(1996) argue that consumer evaluation of international products is influenced by the
country’s stage of economic development. That is, consumers hold more negative perceptions
of products made in developing countries (Wang and Lamb 1983) and that the sourcing
country (Han and Terpstra, 1988) and country of origin (Tse and Gorn 1992) have greater
effects on consumer evaluations of product quality than do brand names. The research
undertaken by Nebenzahl and Jaffe (1996) provides evidence that product value generated by
global brand names may not outweigh the effect of country image when production is
sourced to lesser-developed countries. However, regardless of the relative importance, these
two variables are highlighted as highly relevant to the product customisation decisions. Image
variables affect beliefs through inferences made by consumers (Laroche et al., 2005). Further,
scholars (Gottelard and Boule, 2006) argue that the degree of customisation versus
standardisation is a function of organisational, product, market, and environmental
characteristics.
De Chernatony, Halliburton, and Bernath (1995) studied the effects of branding decisions of
products for international markets. They argue that while the core essence of the brand should
remain unchanged, its execution should be adapted for international markets. By ‘core
essence’, De Chernatony, Halliburton, and Bernath refer to the basis on which the brand will
be differentiated in world markets such that consumers perceive unique values in the brand.
The core essence of the brand is what the brand stands for in terms of its value added
positioning, gained by the satisfaction of consumers’ rational, functional, emotional, and
psycho social needs (De Chernatony 1993).
42
From the De Chernatony, Halliburton, and Bernath (1995) study, it emerges that to appreciate
the extent to which the brand’s execution can be standardised, marketers are faced with
balancing demand side factors against supply side factors. Demand side factors include: the
degree of customer convergence internationally and product/market standardisation.
Customer convergence refers to whether customer demand for a brand/product is truly
converging internationally, or whether significant national requirements persist. To this end,
De Chernatony, Halliburton, and Bernath, (1995) argue that customer convergence may be
independently driven by common customer trends, or proactively led by companies’
international marketing strategies. Hence, international new product activity and marketing
intelligence for known and potential competitors must be carefully monitored (Keller and
Moorthi. 2003).
The supply side of the De Chernatony, Halliburton, and Bernath (1995) study considers such
things as: a centralised structure, that is, the extent to which international branding decisions
are made from a centralised location or whether they are decentralised to the individual
nations where the product is marketed. Another issue in the supply side is whether economies
(or diseconomies) of scale in marketing and manufacturing exist. Should exporters put more
marketing weight behind international brands, compared with fragmented national budgets?
De Chernatony, Halliburton, and Bernath (1995) conclude that developing brands on an
international basis offers opportunities for capitalising on economies of scale, provided there
is sufficient customer convergence. De Chernatony, Halliburton, and Bernath are essentially
arguing for the strength of branding as a factor in the product customisation/standardisation
decision.
Schuh (2000) divides the C/S decision into two discrete parts, namely program C/S and
process C/S. Program standardisation (or customisation) relates to the marketing mix for
international markets. Process standardisation (or customisation) refers to the degree to which
organisations either adapt or customise such things as decision making, data collection,
planning and controlling, reporting processes, and organisational structures to maximise
opportunities in international markets. Hence, while Schuh raises the issue of process in a
general way, it is the decision process aspect of product C/S which is the key focus of the
current study.
43
Product Customisation or Standardisation Decision Models
The strategic importance to marketers of the C/S debate has led to a great deal of interest
from scholars (Hvan, Mortensen, and Reis, 2008). There are a number of models that have
been proposed which attempt to provide normative guidelines for managers making product
C/S decisions. Most relate to the product C/S decision but also take in other areas of the
marketing mix- pricing, promotion etc. Such models include those of Loyka and Powers
(2003) and Viswanathan and Dickson (2007).
Instead of implying that multinational companies should aim at product standardisation,
Loyka and Powers (2003) offer a framework that helps identify specific problem areas that
can aid in providing a base for further empirical research. Their model considers the
relationships and factors associated with global product standardisation and the dimensions of
global product standardisation are illustrated below.
44
Figure 1.2: A Model of Global Product Standardisation
Market
Industry
Company Dependent Variables
Independent Variables
Source: Loyka, J.J. and Powers, T.L. (2003). A model of factors that influence global product standardisation, Journal of Organisational
Studies, 10 (2), p. 71.
The Loyka and Powers (2003) model depicted in Figure 1.2 demonstrates the relationship
between the market, industry, and company factors, and the dimensions of global product
standardisation based on an extensive review of the product customisation versus
standardisation literature. The model’s rationale is that global product standardisation is a
Legal requirements
Cultural/social requirements
Consumer preferences
Consumer buying habits
Product use conditions
Economic development
Marketing infrastructure
Competition
Market turbulence
Technological turbulence
Sub-unit horizontal independence
Sub-unit vertical independence
Headquarters-unit trust
Sub-unit acquiescence
Sub-unit cooperation
Centralisation of decision-making
authority
Commonality of product
Commonality of pricing
Commonality of
promotion
Commonality of
distribution
45
multidimensional construct that is dependent upon variables that can be grouped into market,
industry, and company categories.
In contrast to the Loyka and Powers (2003) model, in Figure 1.3, Viswanathan and Dickson
(2007) offer a normative model on the degree of marketing strategy formulation. Their model
is illustrated below.
Figure 1.3 Degree of Marketing Strategy Formulation
Viswanathan, N. K., and Dickson, P. R. (2007). The Fundamentals of Standardizing Global Marketing Strategy.
International Marketing Review, 24 (1), 46-63.
Common to these modelling approaches is an acknowledgement of the importance of a range
of factors in the C/S decision, with commonly held variables likely to be aspects of local
market culture and economy, as well as factors located within the exporting organisation. In
Degree of marketing strategy formulation
Homogeneity of
Customer response to the
marketing mix
Product
Price
Placement
Promotion
Transferability of
Competitive advantage
Core competence
Market power
Similarity of market
Homogeneity of
economic freedom
Decision Variables -:
Firm’s international experience
Economy of scale
Culture
Consumer adoption
Similarity of competitive position
Degree of marketing strategy formulation
46
light of this, some organisations take a proactive stance by imbedding the customisation issue
in their product development strategy. Others focus on commonalities across multiple
markets (Appiah-Adu, 1999). A deeper investigation into the product C/S decision was
conducted by Johnson and Aruthanes (1995) into market related determinants of product
customisation that impact on the performance of United States exporting firms. Their
research distinguishes between actual product customisation and ideal product customisation.
The actual can be defined as the similarity between exported and domestic product on
measurement units, size, brand packaging, contents and quality (Douglas and Wind, 1987).
The ideal is defined as the marketing manager’s opinion of the extent to which the product
should be adapted on the same factors. This study will measure the actual rather than the
ideal amount of food product customisation undertaken.
The study undertaken by Johnson and Aruthanes concludes that determinants such as
government regulation, infrastructure differences, cultural differences, competitive intensity
and end-user differences determine the extent to which ideal or actual product customisation
takes place. This in turn affects organisational performance (market share, sales growth,
profit).
The Johnson and Aruthanes (1995) research addressed one weakness in Cavusgil, Zhou and
Naidu’s (1993) research, namely, the distinction between consumer goods and industrial
goods when it comes to making international product customisation decisions. Interestingly,
Johnson and Aruthanes’ ninth hypothesis, that the level of actual product customisation
positively affects the firm’s performance was supported. Their tenth hypothesis, that the level
of actual product customisation positively affects market share did not receive support. This
seems to constitute support for the value of standardisation.
Supporters of the customisation philosophy suggest that due to the inherent complexities and
dissimilarities involved in operating in the international marketplace, particularly as regards
macro-environmental forces, consumer behaviour, usage patterns, and competitive situations,
it is more viable to have a marketing program tailored to the individual needs of each foreign
market (Leonidou, 1996). In support of this view, Li and Atuahene-Gima (2001) found that
organisations marketing high technology ventures into China were forced to adapt their
offerings because of the inherent risk to resources.
47
Van Mesdag (2000) offers a hypothesis regarding the reason for the huge differences in the
internationalisation of products, labelled the ‘duration of usage syndrome.’ He too seeks to
identify the dimensions that are relevant in the shaping of strategies for international
marketing and considers the extent to which the marketing mix can be standardised in various
different configurations of international marketing. Van Mesdag concludes that some
products internationalise more easily than others, with cultural factors being the key
determinants of any product customisation decision. Van Mesdag’s postulations seem both
general in terms of product categories/markets and also untested. In general, Van Mesdag is
pro customisation. However, Van Mesdag (2000, p. 77) offers a clue to a middle path with
the statement:
There is no such thing as a global marketing mix. A global marketing mix can only be
realistic if there is room for adaptability.
Van Mesdag (2000) further posits that while there is significant convergence of consumption
patterns between different countries, the rate of such convergence varies enormously between
product categories. Generalisation is therefore misleading; the only generalization one may
make is that convergence rates, on average, are increasing. This is a key reason why the
current study focuses specifically on one product – that of packaged food products – within a
specific international market.
Convergence of Food Consumption: Some Trends
Convergence in the consumption of food has previously been investigated empirically
(Connor, 1994; Herrmann and Roder 1995; Gil, Gracia and Perez 1995; Traill 1997). For
example, Connor (1994) argued that Europe would follow the US way of food consumption
(with a lag of 5 to 10 years), as a result of a catch-up process in incomes, prices and
demographic factors. Using broad product categories of food, Traill (1997) showed that the
coefficients of variation in consumption across 29 European countries in 1990 were all
smaller than in 1961, thus providing evidence that within European nations convergence in
food consumption has been occurring, too, due to the increasingly similar economic
48
conditions within the area. Herrmann and Roder (1995) and Gil, Gracia and Perez (1995), in
using OECD and EU consumption data respectively - and in applying more sophisticated
methodologies of measurement - were able to confirm this finding. However, their results
show that the degree of convergence was different across the analysed food nutrients (and
also depended on the used measurement criteria) (Herrmann and Roder, 1995), or the
tendency developed differently across individual countries (Gil, Gracia and Perez 1995). In
addition, Gil, Gracia, and Perez (1995) demonstrated that the speed of convergence
diminished, i.e. convergence, to a large extent, took place in the 1970s and was less intensive
during the 1980s.
Finally, Herrmann (1994), in analysing consumption of 15 food products in OECD countries
between 1968 and 1988, found that convergence tendencies were considerably different for
individual food products. For example, consumption in foods such as poultry meat was found
to actually have diverged over time, and for others such as fruit and vegetable oil no
significant trend could be revealed. In summary, some convergence in food consumption
across industrialised nations was found and it seems that once people are freed from income
and product availability constraints, their food consumption patterns move towards an
internationally similar diet. This has implications for packaged food export C/S decisions.
Further, this convergence in food consumption can even occur when a national diet is
believed to be more beneficial than the ‘international’ one, as Laajimi, Garcia and Albisu
(1997) show for the case of Spain by the shift of Spanish consumers away from the
traditional Mediterranean diet. However, it has also been shown that there are still
considerable regional or national differences in food consumption.
Middle Ground?
The researcher supports Van Mesdag’s (2000) viewpoint concerning the need to adapt
products to some extent, in preparation for sale into international markets. The direction of
the current research is to determine how managerial decision-making occurs and to what
extent specifically within the context of exporting packaged food products to China.
Correspondingly, ‘middle ground’ refers to the extent to which a standardised domestic
product is adapted for export sales to China.
49
Jain (1989) and Walters (1986) support the view that neither total standardisation nor
customisation of any component of an organisation’s marketing mix is conceivable. Few
organisations, if any, implement a completely standardized or adaptive approach, as extreme
homogeneity or heterogeneity does not exist across markets, so the decision is not an ‘either-
or’ one but rather a matter of degree (Vrontis, Thrassou, and Lamprianou 2009). In other
words, the marketing reality is not as polarized as the debate might suggest, and it is typical
for firms to implement aspects of both approaches such that standardizing and adapting
strategies coexist within the organization. Indeed, one unifying theme from this debate is how
the decision to standardize or adapt is always affected by situation-specific factors such as
product and industry characteristics, as well as macro- and micro-environmental factors in the
target countries. This is why the current study attempts to understand the extent to which an
exporting organisation customises or standardises its product for an international market.
Finding the middle ground can prove difficult for managerial decision makers. If they do not
customise/adapt their export offering, they run the risk of missing out on sales, profit, and
market share opportunities. If on the other hand, they offer too many customised products to
the foreign markets, the large assortments may be perceived negatively by consumers who
may resort to simplistic decision rules to make a decision quickly. In fact, as Kahn (1998)
suggests, it has been found that in some cases, very large assortments and choices make
consumers more promotion sensitive than they might be when faced with smaller choice sets.
In light of this, customisation costs money which must be recouped by the incremental sales
achieved in the new market.
A consensus exists in the literature regarding the need to consider the type of industry and
product category in the context of marketing standardisation versus customisation. For
example, Walters (1986) and Walters and Toyne (1989) conclude that standardisation is
situation specific and is not appropriate in all settings; they assert that the extent to which
consumers’ needs are homogeneous for a given product will determine the degree of product
C/S. Similar customer needs and market structures may also make it possible to standardise
other elements of the marketing mix rather than go through the time consuming and
expensive process of designing and testing new approaches and designs for each export
market. Further, Boddewyn, Soehl, and Piccard, (1986) argue that the extent of
standardisation will vary depending on the type of product with consumer non-durables being
50
the hardest to standardise due to host nation consumer tastes and habits. Finally, Shoham, et
al., (2008) suggest that organisations have to partly standardise and partly customise their
marketing mix across nations to become relevant in their home country and their host
countries. Following the Shoham, et al., (2008) logic, there is no ‘one-size-fits-all’ solution to
the export product C/S debate (Hultman, Robson, and Katsikeas, 2009).
The aim of this study therefore is to find how export decision makers make such product C/S
decisions with regard to marketing packaged food products to China. Decades of research has
not succeeded in the distillation of any convincing normative model or guaranteed managerial
guidelines for the making of product C/S decisions. Hence this study has chosen to focus,
against the background of this research, on the area which has not been examined namely, the
actual process of decision making used by export managers.
Research Question and Proposed Methodology
Although great importance has been attached to new product development for international
markets (De Brentani and Kleinschmidt, 2004; Subramaniam and Venkatraman, 2001) little
attention has focused on how important products such as packaged foods are developed for
export to China. This study seeks to extend our broad knowledge of new product
development by answering the following research question: What are the antecedent factors
affecting the product C/S decision for packaged food exports products to China? Given the
importance of food as one identifier of China’s culture and China’s growing demand for
imported foods, this current study seeks to understand not only the cultural implications for
why Chinese consumers select foreign made food products, but also the managerial decision
associated with how food product development decisions are made for China. These
decisions may impact a firm’s export performance in China.
To answer the research question, and to be epistemologically consistent with the research
question, this study proposes a mixed methods approach to data collection using in-depth
interviews with key informants who are currently exporting packaged food products to China,
as well as a structured questionnaire to capture quantitative data. NVivo software will be used
for analysis the depth interviews and SPSS is proposed for analysing questionnaire data. The
51
purpose of the depth interviews is to gain a deep insight into the types of product and market
related factors that export decision makers and packaged food product developers consider
when making export product decisions. These factors will then be further considered through
a structured questionnaire and subsequent data analysis. A full explanation of the research
methodology is provided in chapters six and seven.
Internationalisation and the Export Imperative
Exporting activity is of extreme importance from both the viewpoint of nations and
individual export marketers. From the point of view of national governments, exporting
activity is crucial because it contributes to the economic development of nations. It influences
the amount of foreign exchange reserves a nation has, and the level of imports a country can
afford, while shaping public perceptions of national competitiveness (Lages and
Montgomery, 2004). Further, exports enhance societal prosperity and assist national
industries to develop, improve productivity and create jobs, improve competitiveness,
productivity and economic integration (Gertner, Gertner, and Guthery, 2006). Internationally,
exports enlarge consumers’ accessibility to a diverse range of goods and services, and
improve the standard of living and quality of life. With increased internationalisation, the
economic growth potential afforded by small business exporting may be quite significant
(Pedersen and Petersen, 2004; Sakaraya, Eckman, and Hyllegard, 2007). Further, with falling
international trade barriers and improved international communication and information
networks, many small and medium sized organisations are able to compete in international
markets (Pedersen and Petersen, 2004; Wolff and Pett, 2000). As Hultman, Robson, and
Katsikeas (2009) posit, exporting is an ideal market entry method for small and medium sized
enterprises.
The extant literature on exporting ventures of previously domestically based organisations is
extensive. For instance, a study of 328 exporters from Nordic nations, Lindmark, et al.,
(1994) concludes that Nordic organisations’ domestic markets no longer seem to be as
important a ‘learning place.’ They delve into export markets not long after their inception.
Similarly, Preece, Miles and Baetz (1999) report a tendency toward an increasing number of
‘instant internationals’. A longitudinal study of 948 newly established businesses undertaken
52
in Denmark by Christensen and Jacobsen (1996) found that these organisations began
exporting within the first years of their existence.
From the view point of organisations, exporting provides an opportunity to become less
dependent on the domestic market. Expanding into foreign markets creates economies of
scale allowing the organisation to compete more effectively. Further, by competing in export
markets, the marketing organisation learns from international competition to eventually
explore further new export markets. To that end, Johansson and Vahlne (1990, p. 11) define
internationalisation as:
A process in which the enterprise gradually increases its international involvement.
Andersen (1997) and Moen and Servais (2002) argue that country selection and entry mode
choice are the key strategic decisions in relation to an organisation’s internationalisation.
Andersen (1997) suggests that what differentiates internationalisation from other growth
processes is the transference of goods, services, or resources across international borders.
The unit of analysis in this study is the individual export case, which Madsen (1989, p. 42)
defines as being:
The marketing of one product in one foreign country.
For example, using Madsen’s position, it could involve the marketing of packaged breakfast
cereal by company X to mainland China. As researchers move in the direction of developing
a better understanding of export behaviour, an important organisation variable is the new
product development process and its creation of a standardised or customised product for
international markets (Song and Parry, 1997).
In conclusion, this study endeavours to explore the factors affecting managerial decision
making related to the need to adapt or standardise packaged food products for exporting to
China. In the foreign marketing context, adapting products and ensuring that products are
managed properly on their way to end-users are daunting challenges for many exporters
(Bush, et al., 2001). Whilst much has been previously written about product
53
customisation/customisation for foreign markets, previous research has failed to explain the
actual decision making processes that are used by export marketing managers. A concern in
this study is with how managerial decision making actually occurs. Having carefully
examined the export performance literature, this study posits the simple assertion that product
strategy functions as one key area of managerial decision making that is likely to impact on
export performance.
Structure of this Dissertation
This dissertation is presented in nine chapters.
The introductory chapter provides an overview of the debate around customisation and
standardisation (C/S) in international marketing, explaining the background to, and particular
focus of, the current study, and the structure of the dissertation.
This is followed by a further detailed review of relevant literature that is divided into three
chapters. Chapter two provides a detailed context to managerial export product decisions in
terms of characteristics of the Chinese economy, culture and regulatory environment. Chapter
three organisational and export performance concepts and metrics in relation to the C/S
decision making.
In chapter four consumer ethnocentrism and the effects of country of origin in the food
product C/S decision is considered.
In chapter five, the study examines the important role managers play in the export food
product C/S decision by looking at the types of managerial decisions made, who makes them
and where they are made.
Chapter six presents findings from an original qualitative study, providing further input to the
development of a conceptual model of managerial decision making concerning
customisation/standardisation of food products for export to China. Research methodology
for this empirical study designed to test this model is then presented.
54
Chapter seven focuses on the methodology used in the empirical study. Due to the complex
nature of new product development, export marketing, and managerial decision making, the
current study proposes a mixed methods methodological approach to demonstrate the
relationship between these variables.
In chapter eight the study reports on findings of the empirical study. In do so, the managerial
implications for the empirical finds with a view of assisting export decision makers and
product development executive develop an optimum food product for export to China are
addressed.
Chapter nine offers a discussion of the findings, and draws conclusions both theoretical and
managerial. In Chapter nine, the study reflects on the limitations of this research, and makes
recommendations for further research.
Summary
Consumers select products they believe best satisfy their needs. Research has shown that the
decisive factor in consumers’ food and beverage product choice is taste (Raghunathan,
Naylor, and Hoyer, 2006). In turn, marketers, through their new product development process
attempt to develop offers that best match their consumers’ taste requirements. The
development of such offers is impacted by cultural differences in consumer needs, tastes, and
demands. To that end, new product development across international borders becomes a more
complex proposition for international marketing organisations.
One of the key managerial decisions facing organisations engaging in new product
development is knowing how much to adapt, or whether to adapt a product sold in their
domestic market, for one or more export markets. This managerial decision has export
performance implications. Many factors will impact such a managerial decision. This study
proposes to examine some of these factors as they apply to the export food product C/S and
proposes a model for further consideration.
55
Chapter 2
LITERATURE REVIEW: CHINA: THE ECONOMIC,
CULTURAL AND REGULATORY CONTEXT
In this chapter an exploration of what is known about China as an export destination, with
particular emphasis and the economic and cultural context is examined. The study considers
characteristics and phenomena within the Chinese market, including ‘guanxi’, Chinese
negotiation patterns, consumer market segmentation, knowledge concerning Chinese food
consumption, dietary and nutritional issues, as well as the regulatory context of Chinese food
marketing, food safety and product customisation (Swanson, 1996).
This study concerns decision making on the degree to which food export products are adapted
for conditions found in the People’s Republic of China. An appropriate level of market
customisation is a key determinant of market performance. At the same time, the degree of
customisation is conditioned by the degree of difference between countries (Cavusgil, Zou
and Naidu., 1993). These differences could be structural (e.g. different channels of
distribution), consumer based (e.g. different responses to product offerings), or cost based
(e.g. different communications and transportation costs).
China, with nearly one-fifth of the world’s population, an economy in transition from planned
to capitalist, and one of the fastest rates of economic growth, represents a market Western
business can no longer ignore (Fang, Worm and Tung, 2008; Meng, 2004; Zhang 1996).
Armed with increasing disposable income and developing tastes, Chinese consumers are
having their say in shaping the directions of this huge and growing market (Zhou, et al.
2010). Since 1978, when Premier Deng Xiaoping first set China forth on a path of economic
reform (Dunne, 1995; Kotler, 2010), her GDP has grown an average of 9.5 per cent per
annum, three times that of the United States, and faster than any other economy (Wan, 2004;
Woodall, 2004). In 2003-2004, the world’s economy grew by almost 5 per cent whilst
China’s grew by 10 per cent in the same time (Woodall, 2004). In the second quarter of 2010,
China’s economy was valued at US$1.33 trillion, ahead of Japan’s US$1.28 trillion economy
(Kotler, 2010). Today’s global economy is strongly influenced by China’s economy (Kotler,
2010). In 2012 alone, China’s economy grew by 7.7 per cent (Anonymous, 2012). As a result
56
of this dynamic growth, more than 200 million Chinese have been brought out of poverty
(Yifu, 2007).
If internationalisation is defined as ‘the crossing of national boundaries in the process of
growth’ (Buckley and Ghauri, 1999, p. 9), then China is currently the most active
internationalising economy among the developing nations. Investment from both domestic
and international sources has been increasing over the years (Chadee, Qiu, and Rose, 2003).
China is the second largest recipient of foreign direct investment in the world with more than
330,000 foreign investment projects operating in the country in 2007 (Luo, 2007). Much of
this investment centres on 14 special economic zones formed in 1984 (Wei and Leung, 2005).
Moreover, rapid commercialisation of consumption did more than simply increase consumer
choice and raises the material standard of living. It also broke the monopolies that had
previously cast urban consumers in the role of supplicants to the state (Davis, 2000).
China is approximately three times the size of the European Union in population, and more
than one language is spoken (Ambler, Styles, and Wang, 1999). Some provinces in China are
separated by large physical distances (e.g. Beijing to Guangzhou is 2,300 kilometres) as well
as by substantial psychic distance (e.g. different languages and cultural histories). However,
most Chinese reside in the eastern provinces, making it a highly geographically concentrated
market (Zhou and Hui, 2003). With a birth rate higher than most Western nations, China has
a relatively young population. A common language, despite regional dialects, and cultural
heritage, reinforced by decades of communist rule, give China the appearance of a
homogeneous market (Davis, et al., 2007).
As Kumar and Nagpal (2001) suggest, the greatest challenge facing international marketers is
the choice of appropriate variables for segmentation. China is still largely a developing
country and consists of multiple markets which can be segmented by regional economic
development and local culture (Eves and Cheng, 2007; Keller and Moorthi, 2003; Wei and
Leung, 2005). Therefore, despite the noted Eastern geographic population concentration,
China cannot, for export marketing purposes, be considered ‘one market’. Indeed, packaged
food manufacturers recognise that regional consumption are important for developing
marketing strategies, such as test marketing new products (Bond, Thimany, and Bond, 2008).
Variables such as ethnic origin, household size and education level serve as proxies for
57
preferences and may help explain distinctive food consumption patterns in some regions. As
Hofstede (1983) suggests, nations may be inappropriate cultural units if a nation includes
many cultures (as is the case in China), or if one culture spans several nations.
One key element in Chinese liberalisation policies has been the promotion of consumption
(Jussaume, 2001; Li, et al., 2009). Consumption is now being viewed by the Chinese political
leadership as beneficial for a variety of reasons. These include:
Improved well-being for general populace;
The strengthening of demand as an element in promoting further growth; and
The appeasement of citizens
Hooper (2000) however, warns that resistance to global products (and more broadly to global
culture) on nationalistic and ethnic/cultural grounds has been a basic feature of the Chinese
response to global consumerism. Similarly, Davies (1994) reported that a significant number
of multinational companies overestimated the demand for their products in China and these
ventures have not been profitable. Regardless, with an increasingly abundant supply of goods
and more disposable income, Chinese consumer aspirations will be heightened. This may
include the aspiration to buy foreign made packaged foods.
To realise the untapped market potential among various consumer segments in China, Cui
and Liu (2001) suggest that international marketers and export decision makers need to:
1. assess their similarity to the developed economies in terms of market environment,
especially market structure and consumer characteristics, and
2. determine to what extent they can apply standardised global marketing (e.g. products)
or need to adapt to the local market conditions.
Understanding how export managers approach Cui and Liu’s (2001) second suggestion is the
essence of the focal decision within this research study.
58
Chinese Cultural Values
Despite the growing importance of China as an economic superpower Doran, (1994) and
Swierczek (1991) lamented that there was insufficient research on Chinese consumer
behaviour. Export decision makers should undertake cultural analysis of their international
target market(s) to better understand how that specific culture influences the buying decision.
Cultural values have been previously recognised as powerful motivations in shaping
consumers’ product preferences (Clark, 1998; Lowe, and Corkindale, 1998; Yau, 1988).
Further, differences in consumers’ culture bound value systems influence consumers’
shopping behaviour (Zhou and Hui, 2003). In the context of this study, China is a large and
ethnically diverse nation and the culture specific nature of food underscores the importance
of conducting cultural analysis.
Prior research has suggested that ‘face’ (Leung and Chan, 2003), social hierarchy (Buttery
and Leung, 1998), negotiation styles (Hiltrop and Udall, 1995; Fisher and Ury, 1986;
Maddux, 1988; Swierczek, 1991), ‘guanxi’ (Buttery and Leung, 1998), and cultural heritage
(Garrott, 1995) impact heavily on an international marketer’s ability to successfully compete
in China. If cultural or sub-cultural groups are found initially to be dissimilar in their basic
value orientations, the export decision maker might then consider following up with more
complex, costly techniques such as AIO (Activities, Interest and Opinions) or benefit
segmentation (Lenartowicz, Johnson, and White, 2003).
Given the salience of Chinese cultural values to export decision makers, Yau (1988)
classified Chinese cultural values into five orientations:
Man-to-Nature Orientation
Man-to-Himself Orientation
Relational Orientation
Time Orientation
Personal Activity Orientation
Yau’s (1988) orientations have managerial implications for the export food product C/S
decision. For example, in the man-to-nature orientation, where the Chinese regard man as
part of nature and man should adapt to their nature in order to achieve harmony (Chan, 1999),
59
one possible manifestation is having a lower expectation of product quality. Product quality is
a customisable or standardisable product attribute. If the product’s performance does not
meet expectations, a Chinese consumer may feel less dissatisfied because they think they
have to conform to harmony. To exemplify this view, Thorelli (1982) posits that the Chinese
have a tendency to attribute product failure to fate rather than to the product’s manufacturer.
Further, in considering the value of time orientation (where the Chinese have a strong
preference past time orientation), a possible manifestation is implications that the Chinese
tend to be brand loyal. Branding as a standardised or customised aspect of a product is given
greater attention later in this dissertation.
China’s Stage of Economic Development: The World Trade Organisation
(WTO)
In October of 2001, China entered the WTO. The vote for allowing China, still a developing
country, to become a member of this influential trade organisation indicated that China’s
economic development had been recognised and that and its economic influence could not be
ignored (Hung, 2004; Zhou and Hui, 2003). The hope for export decision makers was that
WTO membership would constrain, if not neutralise, an independent and possibly
obstructionist China, while at the same time pry open China’s doors for global business
(Lichtenstein, 2000).
China’s foreign trade has been one of the nation’s largest and most important engines for
economic growth. Foreign trade has played an increasing role in the national economy since
reforms began in 1978 (Huang and Rozelle, 1998; Huang, Rozelle, and Rosengrant, 2003).
These economic reforms have made possible opportunities for exporters to embrace China
with their standardised or customised products, specifically food products. Against this
backdrop, many exporters are evaluating the scope of the relaxation of trading rights
restrictions, which are among the most important WTO induced changes they will face
(Zeng, 2002). Export decision makers must decide how they will take full advantage of
substantial policy and regulatory changes to ensure that their market in China is viable.
60
The effect and importance of China’s WTO entry has been the subject of much research.
Various authors, notably Ianchovichina and Martin (2004), have estimated the impacts of key
economic variables of China’s accession to the WTO as a guide to policy, and as a
subsequent analysis at the household level. It is particularly at this household consumer goods
purchase decision level that export decision makers are interested. As Zhang (2001) observes,
although foreign direct investment is located in every corner of China, it tends to be highly
concentrated in the coastal regions. This fact may be one basis for geographic segmentation
in China for export decision makers, including packaged food manufacturers.
Guanxi
In China, guanxi is the foundation of business negotiations. It expresses the central
importance of social relationships within Chinese society (Song, Cadsby, and Bi, 2007).
Accumulating social capital through guanxi is a means of maintaining legitimacy and
survival in a large and culturally complex market (Carlisle and Flynn, 2005).
China is a market whose cultural traditions suggest that relationships between customers and
suppliers may be more important than in the West (Pye, 1986; McGuiness, Campbell, and
Leontiades, 1991). Central to the concept of guanxi is that business commitments are based
on personal relationships rather than formal contracts (Fang, Worm, and Tung, 2008; Leung
and Wong, 1993). China is often portrayed as a ‘relational society’, where concepts such as
guanxi are the major influence on both social and business behaviour (Styles and Ambler,
2003).
The word guanxi is made up of two Chinese characters meaning ‘gate/pass’ and ‘connect’. It
generally refers to the establishment of a connection between two independent individuals to
enable a bilateral flow of personal and social interactions (Yeung and Tung, 1996). Guanxi is
a special type of relationship, but ‘relationship’ does not necessarily mean guanxi (Wang,
2007). It converts business partners, who are otherwise strangers, to insiders within a
business network. While Western business organisations often judge potential alliance
partners on brand or corporate image, Chinese business to business relations are often based
on contacts or bonds with specific individuals, not among organisations (Davies, et al., 1995).
61
Guanxi involves a flexible, but relatively permanent set of exchange relationships based on
reputation and trust, that provides access to resources and information, over an indefinite
period of time (Lovett, Simmons, and Kali, 1999). Participants in guanxi cement their ties
through exchanges not only of material objects or special favours but also of respect and
affection (Khatri, Tsang, and Begley, 2006). Guanxi is seen as a potential solution for most
problems of entering and operating in China (Fan, 2002). Of importance to food exporters
targeting China’s markets is the fact that guanxi is not automatic. It takes years of close
friendship to develop. In addition, it is harder for foreigners to develop guanxi because
guanxi is steeped in China’s cultural and historical heritage.
The concept of guanxi is enormously rich, complex, and dynamic (Yang, 1986; Yang 2001).
In English as well as in Chinese, guanxi evokes different meanings and images. These
meanings and image may influence an export decision maker’s marketing mix for a nation
that exhibits a high guanxi culture. The growing knowledge about guanxi in the West makes
all the more important understanding of the construct in its conceptual specificity (Chen and
Chen, 2004). For instance, guanxi has been:
1. identified as one of the most important key success factors in doing business in China
(Guo and Giacobbe-Miller. 2010; Li, et al, 2007; Song, Cadsby, and Bi, 2007; Yeung
and Tung, 1996)
2. regarded as a source of sustainable competitive advantage (Tsang, 1998)
3. acclaimed as marketing’s third paradigm (Ambler, 1994), thus linking the concept with
relationship marketing (Simmons and Munch, 1996), and
4. extolled as the future direction for western business practices (Lovett, Simmons and
Kali, 1999)
5. seen as a critical role in Chinese organisational behaviour when task uncertainty is high
(Song, Cadsby and Bi, 2011; Tsui and Fahr, 2007), for example, when dealing with
foreign based exporters
Western social psychological theories of interpersonal relationships tend to adopt a
universalistic ‘culture free’ perspective (e.g. the effects of physical proximity and attitude
similarity in buyer-seller relationship development). According to Chen and Chen (2004)
however, these theories fall short on capturing the unique characteristics of guanxi
62
development e.g. the role of pre-determined guanxi heritage in guanxi initiation. Different
guanxi bases tend to define different types of relationships and to trigger different principles
of interaction, which in turn bring different outcomes. This is important for the export
decision maker because they must determine and seek the appropriate level of interaction
with their China counterparts. Their export success is contingent upon it.
Guanxi represents a system that was essential to the survival and prosperity of groups of
people within Chinese society who did not expect anything or did not get anything from the
political system (Buttery and Leung, 1998). Wong (1999) suggests that international
marketers can use guanxi as a means by which to segment a market in China, whilst Oliver
and Coulter (2004) suggest that guanxi is important for the conduct of accurate and timely
market research in China.
The right guanxi can bring cheap and reliable supplies, tax concessions, and approval to sell
goods domestically or for export (Osland, 1990; Pye 1986; Tai 1988). They may influence
decision making as to which foreign product is purchased (Grow, 1986) and provide for
assistance when business problems arise. Guanxi helps maintain harmony in the Chinese
system of doing things and this is where it ties in closely with Confucian thought (Buttery
and Leung, 1998). The whole system of guanxi can be seen as a complex web of mutual
obligations, assurances, and understanding, a long-term perspective, and cooperative
behaviour (Ambler, Styles, and Wang, 1999; Arias, 1998; Luo, 1997). From an exporter’s
viewpoint, guanxi provides a set of implicit rules that have a greater meaning than any legal
framework. This being the case, guanxi principles could possibly override any legal
obligation to customise or standardise products for export to China.
Guanxi can be described in several contexts. For example guanxi operates in different life
spheres such as family, friendship, political and business guanxi. It is expected that guanxi
plays a role in developing buyer-seller relationships (especially those involving the
recruitment and training of distribution channel intermediaries) in China. Once guanxi is
established between two people, each can ask a favour of the other with the expectation the
debt incurred will be repaid sometime in the future (Yang, 1994).
63
Several scholars have concluded that guanxi is a major determinant of successful marketing
of goods to China (Xin and Pearce, 1996). These personal connections seem particularly
important to executives in nations that do not have a stable legal and regulatory environment
that allows for impersonal business dealings (Zucker, 1986). China is one such nation (Xin
and Pearce (1996). A weak rule of law is problematic for all who do business in China, but
such unreliability would prove burdensome for newer exporters to China, or smaller
exporters with limited resources (Xin and Pearce, 1996).
Whilst much has been written about the effect guanxi has on business and trade negotiations
in China, few authors have attempted to operationalise this important business concept. Given
that guanxi is complex in definition and critical to many China trade transactions, it is
surprising that more research has not been directed to defining the factor attributes of guanxi
and establishing a scale that operationalises the measure of this complex form of relationship.
For international marketers conducting business in China, guanxi is an important
consideration mainly at the initial stage: introduction, negotiation and set up of operation. As
soon as the business is operating in China, other factors will take on a greater importance
(Fan, 2002).
Chinese Negotiations
Research reveals that there are specific, context and cultural based negotiation styles
(Graham and Lin, 1987; Ken, 1985; Picken, 1987; Shane, 1988; Tung, 1984). With this in
mind, Rubin and Carter (1990, p. 21) define negotiation as:
The process of reviewing, planning and analysing used by two parties to reach
acceptable agreement or compromise.
Scholarly interest in international (trade) negotiations reveals that cross border negotiations is
a multi-faceted construct. For example, for international business negotiations to go
smoothly, Zhao (1991) recommended that foreign negotiators spend time getting to know
their counterparts. In China, foreign negotiators should know what social standing they have
64
and what authority they have to make decisions (Fang, Worm, and Tung, 2008). Western
business people must realise that a Chinese business partner may place Western priorities,
such as efficiency and profit, beneath socialist values and goals. Jacobs, Gao, and Herbig
(1996) suggest that trade negotiations with China can be difficult for two reasons:
1. the country’s impervious bureaucracy, which controls management and procurement
(buying) systems, and
2. the Chinese are masters at stalling, a cultural tradition dating back to ancient times.
Adler, Brahm, and Graham (1992) conducted negotiation simulations between American and
Chinese business people and found that negotiators in both cultures are more successful when
taking a cooperative approach. Further, they found that Chinese negotiators tend to ask many
more questions and interrupt negotiations more frequently than their American counterparts.
When the Chinese do not reciprocate with cooperative behaviour, their counterparts’
economic returns are diminished. This position is supported by Zhao (2000) who explored the
Chinese approach to international business negotiations by examining the negotiation
textbooks used in China’s training programs.
The Zhao (2000) study revealed that Chinese negotiators are taught a variety of
communication techniques for negotiation arrayed along a continuum from the relationship-
based win-win strategy to the pure competition-based win-lose approach. The findings of the
Zhao (2000) assist in the development of appropriate negotiation strategies when dealing with
the Chinese.
Negotiations between Western business people and Chinese counterparts often stall (or never
begin) because of language barriers. Osland (1990) asserts that language is critical to
successful business transactions, whilst Murad (2004) suggests that the need to learn a
foreign language is not mandatory for successful marketing in China, but ‘thinking locally’
(p. 61) is. In a study undertaken by Brunner, et al., (1990), a sample of international traders
indicated that the Chinese are becoming more flexible in their negotiations and are sincerely
interested in expanding their trade with the West. However, export decision makers must not
see this as a reason not to employ the assistance of translators and business negotiators when
discussing the possibility of exporting to China.
65
Another significant difference between Chinese and Western negotiations is the initial
approach taken by the negotiator. The hard line method involves negotiators taking up an
initial position and then making concessions until a compromise is reached (Fisher and Ury,
1986). Negotiators from the West mainly favour this approach. Under the soft line approach,
‘relationship maintenance’ is important. With the soft line approach, negotiators from both
sides can focus on mutual interests but not on pre-determined positions and achieve joint
profits based on some objective standard. This is the preferred stance in a negotiation taken
by Eastern negotiators. For Western export decision makers, understanding the different
approaches and then finding ‘middle ground’ between the two methods, influences heavily
their ability to successfully negotiate with the East.
In an effort to provide export decision makers with a framework for negotiating with the
Chinese, Stewart (1989) identified factors for successful negotiation and categorised these
factors as being of high importance (e.g. uniqueness of the export product, China’s need for
the product), moderate importance (e.g. good personal relationships, patience, the exporter’s
technical expertise), and low importance (e.g. having a good interpreter, willingness to
arrange counter-trade, willingness to offer good financing). The first factor in Stewart’s
(1989) framework suggests product ‘uniqueness’ as a key factor in the export product
customisation/standardisation decision. Does the high importance that the Chinese place on
uniqueness of foreign made products (Dickson, et al., 2004) necessitate
customisation/customisation of the export product? Decision makers will need to consider
whether a standardised food export product will be seen as ‘unique’ by Chinese importers or
consumers.
In a broader context the literature on negotiation describes two approaches: cooperative and
instrumental (Swierzcek, 1991). Cooperative negotiators are those who employ
representational communication (transmission of information), whereas instrumental
negotiators use influencing behaviour (Graham and Lin, 1987). The Chinese prefer an
instrumental approach to negotiations (Swierczek, 1991), consisting of individualistic
influencing behaviour.
A dominant logic in marketing literature suggests that negotiation is a stage-wise, goal
directed resolution process (Fisher and Ury, 1986). Maddux (1988) posits that negotiations
66
are an exchange process for one party to obtain resources or benefits from another party when
these resources are under the control of the ‘seller’.
The literature demonstrates that there is much more to doing business in China than simply
being skilful at negotiations. The most important marketing task for any exporter to China is
to familiarise potential customers with the export product (McGuiness, Campbell, and
Leontiades, 1991), whether customised or standardised. To what extent do these cultural
differences impact managerial product customisation/standardisation decisions?
Segmenting China’s Consumer Markets
Segmentation at the macro levels, that is, ‘country segmentation’, falls short of
offering marketing managers with a marketing decision tool that will aid them to
formulate strategic plans (Souiden, 2002, p. 615).
Market segmentation is an essential component of international market development,
particularly for value added agricultural products (Krause, Wilson, and Dooley, 1995;
Riefler, Diamantopoulos, and Sigauw, 2012). Careful segment identification can assist
managerial decision makers in selecting markets to target in an effort to enhance export
success. Further, knowledge of segment characteristics can guide decisions related to product
for (that is, product C/S) and distribution (Dickson and Ginter, 1987; Green and Kreiger,
1991; Grover and Srinivasan, 1987; Krause, Wilson, and Dooley, 1995).
A study by Adler (1984) reports that comparative management studies assume,
inappropriately, that domestic populations are culturally homogeneous. Just as cultures differ,
so too there may be regional cultural variation within a particular area, especially if that
culture is large and complex (Goodman, 1992). Nonetheless, simply because national
boundaries are easy to identify does not make them an appropriate variable for segmenting
behaviour (Lenartowicz, Johnson, and White, 2003; Lenartowicz and Roth, 1999; 2001).
Furthermore, few large countries are culturally homogeneous, and many, such as Canada,
Belgium and India are visibly or even legally multicultural, a fact that Calantone, Morris and
Johar, (1985) suggests may cause systematic within-country measurement difference. Indeed,
67
Hofstede (1997) proposes that the same dimensions that were found to differentiate among
national cultures may also apply to sub cultures within a country. As Lenartowicz and Roth
(2001) argue, while a variety of dimensions have been used to reflect culture, the cultural
grouping or unit of analysis typically is identified by national geopolitical boundaries. Thus,
both single culture and cross culture studies on country of origin effects have implicitly
assumed that homogeneous consumer groups exist within nations studied. As the current
study has previously suggested, this may be a fallacy (Padmanabhan 1988).
The idea that China is not one market, but rather several, perhaps many disparate markets, is
supported by several authors (e.g. Bates 1998; Laroche, Bergeron, and Barbaro-Forleo 2001;
Zhou and Hui, 2003). The Bates study also found a shift in consumer preference towards
Western brands, and product origin as an important criterion in many purchases. However,
the study found that the ‘best is not always the best’. That is, products that may have a greater
perceived value or quality are not always desired. The Batra (1997) study prompts questions
such as: Do more discerning Chinese consumers prefer Western products? What is the
implication of this for product customisation or standardisation decisions? Presumably export
managers have a view on this issue, which impacts their decisions.
As their disposable income has grown, Chinese consumers have been unhappy with the
quality of the products available through state run stores. They seem to prefer to buy foreign
made brands, including those manufactured in China by foreign-local joint ventures (Davis,
1994; Keller and Moorthi, 2003).
Empirical studies have tended to support the idea that as exporters are attracted to the size
and growth of consumer markets in emerging economies like China’s, they have largely
overlooked the diversity among indigenous consumers (Cui and Liu, 2000). Although many
consumers in China desire international brands and associate them with superior quality, rosy
forecasts of macroeconomic statistics and higher consumer expectations have not translated
easily into soaring demand and actionable strategies for multinational companies (Cui and
Liu, 2001). The incongruity between macroeconomic forecasts and latent demand for
international branded consumers good among mainland Chinese consumers often results in
organisations seeking access to emerging economies assuming a huge market with
68
homogeneous consumers. This often leads to difficulties in assessing demand for consumer
goods and services, and difficulties in devising effective marketing strategies.
One such marketing strategy is the decision to market standardised (domestic) products into
China or to adapt/customise the domestic product for export. To compete effectively,
organisations need to define and understand the consumers within emerging markets. Export
decision makers will then need to develop an approach to serving their needs (Prahalad and
Liberthal, 1998). Regional disparities in consumer purchasing power in countries like China
often pose significant barriers for exporting organisations to adopt uniform strategies in this
market (Batra, 1997).
Another important assertion made by Batra (1997) is that in their rush to expand and grow
their business in economies that are in transition, export decision makers marketing consumer
goods have thus far aimed at the higher end segment of consumers. However, to truly take
advantage of demand for consumer goods in economies such as China’s international
marketers need to also compete in the mid-range segment, if not the low end. This call for
product development that removes products features that are not highly valued by these
lower-mid range segments, and adapting to better meet the basic needs of the consumers.
Batra’s (1997) assertion implies the need for product customisation not just for China, but
also for segments within China. The challenge facing international marketers is still to
determine the necessary extent of product customisation.
Taxonomy of Food Product Research
The understanding of food product development and consumption is so important it has been
studied from a range of different perspectives. A synthesis of prior research on food
consumption reveals that food consumption is a multi-dimensional construct. Researchers
have studied food product development and consumption from a variety of different
perspectives which is summarised in Table 2.1.
69
Table 2.1 Taxonomy of Food Product Research
Sensory influences on food choice and food intake De Graaf (2007); Gibson (2006)
The impact of context and environment on consumer food choice
Meiselman (2007)
Perception of risk, benefit and trust associated with consumer food choice
De Jong et al. (2007); Frewer
et al, (1998)
Branding and labelling of food products Bernues, Olaizola, and
Corcoran, (2003); Van Dam
and van Trijp (2007)
Consumer perceptions of food quality Grunert (2007); Grunert et al.,
(2001)
Consumer attitudes to food innovation and technology Ronteltap, et al. (2007); Siegrist
(2007)
Cross-cultural dimensions in food choice Prescott, et al., (2002); Risvik,
Rùdbotten and Olsen (2007)
Gender differences in food choice Bates, Prentice, and Finch
(1999); Ueland (2007)
Consumer attitudes towards functional foods LaÈhteenmaÈki, Lyly and
Urala (2007); Verbeke (2006)
Food allergy Christie, et al., (2002); Van
Putten, et al., (2007)
Changing unhealthy food choices Anderson (2007); Lobstein and
Davies (2008)
Social factors and food choice Booth, et al., (2001); Kjaernes
and Holm (2007)
The ethics of food production and consumption Brom (2000); Korthals (2007)
Food choice development Furst, et al., (1996); KoÈster
and Mojet (2007)
Whilst Table 2.1 provides a broad perspective of food product development and
consumption, of greater importance in this study are the antecedents and practices of food
consumption in China.
70
Food Consumption in China
The consumption of food has often been analysed from the perspective that food choices are
dictated and moulded largely by societal expectations (Escalas and Bettman, 2003; Herrmann
and Roder, 1995). From a specific China perspective, Denton and Kaixun (1995, p. 60) posit:
Food consumption is influenced by historical, medical, social and cosmological
factors. Food is also a primary component of Chinese festivals. In combination, these
independent considerations produce a complex system of food preference and
consumption that is unlike any experienced in the West.
Taking Denton and Kaixuan’s comment into consideration, packaged food export decision
makers must consider food preference and consumption patterns as an important variable in
determining whether or not exported packaged foods to China require customisation, in what
ways, and to what extent. Given the central importance of food in Chinese culture (Veeck and
Burns, 2005) and the historic vulnerability of the Chinese population to food insecurity (Gale
and Huang, 2007), export food product C/S decisions become a key managerial decision for
food exporters targeting mainland China. With an abundance of new consumption options
and increased spending in an era of economic reform, Chinese consumers have begun
indulging in hedonic consumption in many consumer goods categories (Davis, 2000; Keller
and Moorthi, 2003; Landwehr, Wentzel, and Herrman, 2012). Specific to this study, the rise
in ownership of refrigerators and the growth in China’s finished consumer goods imports, has
contributed to the growth of the food industry in China (Veeck, 2000). Once rare, processed
foods, including chilled, dry, semi-prepared and canned became rapidly available in China’s
urban areas in the 1990s (Veeck and Burns, 2005).
China is the largest producer and consumer of food in the world in total, as well as for many
individual products such as grains, fruits, and vegetables (Hu, et al., 2004). With one-fifth of
the world’s consumers, one of the world’s fastest growing economies, and a limited
endowment of arable land, many see China as a potential source of increased demand in
world food markets (Gale, 2002a; Gale 2003). The range of predictions about China’s food
economy in the 21st century varies greatly. For example, some Chinese economists predict
71
that China will be a major food exporter (Paarlberg, 1997), whilst other researchers project
that China’s food imports will soar in the future, and that China will become the largest food
importer in the world (Carter and Zhong, 1991). In 2008, China achieved the status of the
world’s second largest food importer (source: http://www.flex-news-
food.com/pages/18635/China/Food/Import/china-became-net-food-importer-1st-half.html).
As China develops economically, there is general consensus that there will be an associated
change in the Chinese diet (Gould, 2002, Wang, et al., 2002).
A major issue facing China’s government is to provide enough food for its ever expanding
population, either through increased domestic product or imports (Roth, et al., 2008). The
geographic and demographic distribution of China’s population suggests varying nutritional
needs. Cities such as Beijing, Shanghai and Guangzhou are some of the largest in the world,
yet approximately 80 per cent of China’s population lives in rural areas. Whilst the majority
of China’s food consumption is produced domestically, there is a growing importance on
food importing. This has paved the way for packaged food exporters to consider China as an
export destination.
China’s accession into the World Trade Organisation (WTO) increased the role of market
forces, which in turn has increased food imports. However, at the end of the twentieth
century, China was largely self-sufficient in food and was a major exporter of corn, rice, fruit,
and vegetables. According to Smil (1981), a typical working family class family of five, with
both spouses employed and earning about 1.7 times the national average wage, spent about
60 percent of their income on food. For lower income families, the share was as much as 75
percent.
At a product level, Pingali (2007) and Meade and Rosen (1996) found global consumption
patterns to indicate that as income increases, the consumption of animal protein (dairy, meat
and fish) also increases, whilst Dong (2005) found that Asian demand for dairy products
appears to be responsive to income rather than prices. Beghin (2006) observed that many
Asian countries are also experiencing westernisation of their diet. This refers to an additional
change in consumption patterns not explained by income growth, but rather by urbanisation
and associated exposure and availability of new food items. Contrary to this view Meade and
Rosen (1996) posit that the share of private consumption expenditure spent on food at home
72
in any country mostly reflects the prosperity or poverty of that country’s citizens. People with
low income levels are forced to spend most of their income on foods products merely to
survive. As markets like China become more modern and affluent with increased exposure to
other cultures, consumers may desire the products consumed in other cultures (Kim, et al.,
2002). Consumer values appear to shape motivations to purchase particular brands and
products by prioritizing consumer needs and influencing consumers’ product evaluation and
decisions (Guo, Hao, and Shang, 2011). For example, Western imported brands may be used
to convey social status in non Western consumer markets (Muller, 1987). A key issue facing
food export decision makers is the extent to which the notion of consumption culture
influences a Chinese consumer’s choice of (imported) packaged food product, and the
elements of individual consumer behaviour and national culture salient in that choice.
Dietary and Nutrition Issues
Nutrition and Labelling
Research has shown that various national cultures have different food availabilities and
preferences, dietary patterns, and cultural definitions of foods (Herrmann and Roder, 1995;
Macpherson-Sanchez, 1998; Orbeta, 1998; Painter, Rah and Lee, 2002; Van der Merwe et al.,
2010). Cronin (1998) states that different food guidance systems may be appropriate for
vegetarians, ethnic groups, and others with distinct and varying food preferences and dietary
needs, while Simopoulos (1995) found that universal dietary recommendations are not
applicable, and that to be effective food guides must incorporate the unique dietary
components of specific populations. The results of a Nayga (2000) study suggest that
nutrition knowledge does not have an effect on product label use, confirming the hypothesis
of a weak link between nutritional knowledge and purchase behaviour, and contradicting the
findings of Jacoby, Chestnut and Silverman (1977). They reported that most consumers were
aware of and intended to use nutritional information on food labels. An additional study by
Nayga (1997) suggests that males are less likely to perceive nutrition as important when food
shopping than females. Nayga (1996) also found than males are less likely to use food labels
when selecting packaged food goods than females, giving rise to Mazis and Raymond’s
(1997) assertion that consumers’ responses to food labels are largely affected by the degree
to which they rely on health claims and on nutritional information. In addition, Nayga,
73
Lipinski, and Savur (1998) found that a consumers’ level of education has a positive impact
on the likelihood of using labels, thus possibly assisting export decision makers with their
target market segmentation. Other researchers (Wang, Fletcher and Carley 1995) suggest that
economic, socio-demographic and consumer health awareness variables are determinants of
food label usage.
These findings are relevant to packaged food exporters who may believe they need to use
nutritional guides on their product packaging (Lai, 2004; van der Merwe et al., 2010). Nayga,
Lipinski, and Savur (1998) suggest that export decision makers must answer the following
questions:
1. Do (Chinese) consumers want nutrition information?
2. Will they acquire nutritional information when making food purchase decisions?
3. Will they adequately understand and use the information?
Bender and Derby (1992) and Jacoby, Chestnut and Silberman (1977) go further, suggesting
that consumers may even pay extra for additional nutritional information. The western trend
towards healthier eating in recent times has increased consumer demand for more detailed,
accurate and accessible information on food package labels covering nutritional content,
ingredients and claims, as well as aspects relating to food safety, such as expiry dates, storage
and cooking instructions (Abbott, 1997; Bass, 1991; Calvin et al., 2006; Moorman, 1990;
Veeck and Burns, 2005; Zhou, Lu, and Geng, 2003). The Abbott (1997) study reveals that
more than 50 per cent of respondents wanted more information on food labels, with less than
15 per cent satisfied with the current labelling information. This consumer led desire for
increased nutrition information on food labels provides food exporters with an opportunity to
customise this aspect of their offering - but only if found to be relevant to Chinese
consumers.
Nutrition and China
Research interest in the nutritional and dietary habits of Chinese consumers is hardly
surprising given Fu’s (2002) claim that the Chinese government was forecasting a 10 per cent
annual increase in the domestic market capacity for ‘health food’. As their incomes rise,
Chinese consumers are changing their diets and demanding greater quality, nutrition,
74
convenience and safety in their food (Gale, 2003; Gale and Huang, 2007; Guo, Mroz, Popkin,
and Zhai, 2000; Gould, 2002; Hsu, Chern and Gale, 2002). Whilst low income urban
consumers purchase fresh food produce, an increasing number of middle income earners are
turning to packaged foods for their daily food intake (Gale, 2003; Gale and Huang, 2007; Hu
et al., 2004).
Against the backdrop of an increase in capacity and food consumption in China, comes the
issue for packaged food export decision makers of diet-related chronic diseases such as
diabetes, cancer, and heart disease (Henson, Cranfield and Herath, 2010). Ma (1998) reports
these on the increase in China (Ma 1998). Chinese people are becoming increasingly
concerned about their diet and health. They have some knowledge of nutrition and some are
aware of the relationship between diet, nutrition and health (Veeck, 2003). This creates
opportunities for export decision makers to ensure that the labelling of their products not only
conforms to Chinese food import laws, but also provides sufficient information about the
health and nutritional value of their product.
Food consumption has always played a prominent role in defining Chinese culture (Houston
and Eckhardt, 2000/2001; McCraken, 1986; Moustakerski, 2002). Not only is Chinese
cuisine highly advanced, but also beliefs in the interconnection between medical and
nutritional use of food have a long history, and are widely held in Chinese society. The
important role that food plays in maintaining human health was already recognised by people
in ancient times, when food was considered as medicine (Ma, 1998). Dai and Luo (1996)
estimate that there are 3,000 ‘healthy’ foods (also known as ‘functional foods’) sold in China.
Lappalainen, Kearny, and Gibney (1998) define ‘healthy’ eating as eating that helps one stay
healthy (p. 470). This knowledge is useful for food export decision makers, as it provides not
only insight into one of the roles that food consumption plays in China, but suggests another
dimension on which may need to be adapted for successful marketing in China.
Liking, or the affective response to the sensory properties of food, is believed to play a major
role in the choice of food or food intake (Rozin, 1990). According to Gedrich (2003)
nutritional behaviour is framed by biological, economic, anthropological, psychological,
socio-cultural, and home economics related determinants and it is shaped by the individual
consumers’ situation.
75
Although a few studies exist on China’s food consumption, most focus on demand modelling
or elasticity estimations. Wan (1995) proposes an econometric model for studying food
consumption convergence in rural China. Wan (2005) suggests that examining food
consumption convergence can aid long-term planning by government and non-government
agencies, as well as the planning of marketing strategies. If food consumption is found to be
converging in a country (or as may be the case in China, a region within a country), demand
for food is expected to rise faster in some areas than others. This may have implications for
the location of food processing and storage facilities, for the design of market entry (e.g.
exporting) or expansion plans for both domestic and foreign traders.
Across Asia, food consumption behaviour changes dramatically as countries urbanise. As
noted, one of the most significant trends accompanying economic growth has been a rapidly
occurring dietary transition resulting in changes in food demand, food supply, and nutritional
outcomes such as alterations in body size and composition (Popkin, 1994; Popkin, et al.,
2001; Satia, Galanko, and Neuhouser, 2000). Similarly, many changes in diet and physical
activity are occurring simultaneously in the developing world (Popkin and Du, 2003). This
dietary transition is directly linked to the socio-economic environment, specifically to
increases in household income, food availability, and food variety in the market place, as well
as to the effects of cultural diffusion, assimilation (Bhandari and Smith, 2000) and past
experiences (Eertmans, Baeyens, and van den Bergh, 2001). Urban consumers buy less rice
and demand higher levels of meats, milk products, and fish than do their rural counterparts,
even after accounting for differences in income and prices (Huang and Rozelle, 1998; Huang,
Rozelle, and Rosengrant, 1999). Consumption of processed convenience wheat-based
products such as breads, biscuits, and instant noodles is increasing (Gale, 2003; Tanzer,
1995). All of these products are adaptable to Chinese cultural and dietary needs at
manufacturing level. Marketers will probably want to consider the extent to which these
processed foods require customisation to suit the Chinese consumers’ needs?
Jussaume (2001) undertook research to investigate the patterns of dissemination of modern
food consumption in contemporary China, assessing factors associated with more ‘modern’
dietary patterns in a typical Chinese urban setting. Jussaume’s (2001) paper suggests that
consumer interest in branded and imported food products is not associated with the more
76
frequent consumption of daily foods like chicken and fresh fruits. This does not mean that
Chinese food consumption practices are not becoming more ‘modern’ or influenced by
globalisation. It does suggest that these processes will evolve along a different trajectory in
the area of food consumption.
In a study of adolescent Chinese immigrants, Hrboticky and Krondl (1985) observed
increased use of processed foods, theorising that these foods were adapted to subjects’ diets
because of the high prestige and pleasure values associated with them. Similarly, information
collected on dietary patterns among Asian students before and after immigration to the
United States found significant increases in consumption of sweets/fats, dairy products and
fruits, and significant decreases in the consumption of meat and vegetables after immigration
(Pan, et al., 1999). Wang and Olsen, (2002) used longitudinal data collected in China from
984 children initially aged 6-13 years to examine dietary intake patterns over a 6 year period.
They found that approximately half of those children who initially consumed high fat, high
carbohydrate, high vegetable and fruit, and high meat diets continued such diets 6 years later.
Further, family income, urban-rural residence, mother’s education and baseline dietary intake
were all important predictors of children’s dietary intake patterns. These findings suggest that
food exporters to China need to use appropriate marketing communications and media
strategy to target consumers (i.e. mothers of young children). Secondly, and more importantly
to this study, is the apparent impact that a food exporters’ product content has on the well
being of consumers. This second point not only implies thought be given to the content of the
food product exported to China (that is, customised for dietary habits), but also for the
broader issue of societal marketing of food products to economically lesser developed
nations. Essentially this is an ethical issue, and it does not figure prominently in literature
concerning packaged food export. Hence the current study does not pursue this matter in its
modelling. The qualitative work (reported in chapter 6) confirmed that this ethical issue did
not figure prominently in managerial thinking.
As noted, the way Chinese people live and behave as food consumers is steeped in thousands
of years of tradition. This history affects the way the Chinese consume food and their notion
of healthy eating. Chinese notions hold that the universe is composed of ch’i, which literally
means strength or energy. Ch’i is believed to pervade a person’s body and enable them to
maintain sound health. According to traditional Chinese beliefs, different foods can provide
77
different amounts and forms of energy to the body (Wu, 1995). Thus in Chinese culture,
proper diet is a means for the body to maintain harmony with the universe.
Food is not only a means to satisfy hunger, but a way to acquire good health (Kearney,
Kearney and Gibney, 1997). Culturally, some foods occupy a place between nourishment and
medicine (Wu, 1995), whilst Chaney (1996) suggests that particular lifestyle attributes, as
regards food consumption, are an indicator of socio-cultural status. To emphasize the
important food consumption-cultural dyad, Fieldhouse (1995) and Rozin (1996) found that
individual food consumption preferences are not independent of culture. Rather, food and
beverages are experienced in a socio-cultural context (Allen, Gupta, and Monnier (2008).
The desire for longevity has acted as an impulse to investigate healthy diet since ancient
times in China (Cottrell, 1986). Wu (1995) notes that balance is seen as a golden rule to
account for the importance of food in China. A balanced diet is estimated from the
coordination of the foods of nature and one’s body base. Foods are taken to compensate for
ones weakness. Integral to this notion are the nutrients contained in foods. The nutrients in
foods include: protein, fats, carbohydrates, vitamins, minerals, and dietary fibre. In packaged
consumer goods, the amount of each or any of these nutrients contained in a given food
product can be determined by the food manufacturer and exporter. They may form the basis
by which exporters decide how and to what degree they customise their export food products
to China. Moustakersi (2002, p.7) suggests that food exporters to China consider several
strategies when planning their export marketing strategy, including:
To adapt your product to the individual market labels, flavours, package size and
price.
Colour carries important symbolic and associative information about the product category
and specific brands, making it a powerful visual cue for conferring meaning, for example,
association of the colour red with chillies (Garber, Hyatt and Starr 2000; Hoegg and Alba,
2007). Product decision makers manipulate colour to signal freshness and taste which has
been shown to be effective in influencing perceptions of flavour intensity (Delwiche, 2004).
International marketers should be sensitive to the vital role that colour plays not only in the
promotion of a product in a foreign market, including the role that colour plays in that
78
product’s packaging. Colour is an important component of many corporate and brand
building cues such as logos, packaging, and displays (McCracken, 1986; Schmitt and Pan,
1994). If the meaning associated with a colour or combination of colours is different across
cultures, export decision makers may benefit from pursuing a customised (adapted) strategy
with regards to the colour associated with the brand, packaging and labelling. In contrast,
when colour meanings are similar across export markets, a standardised product strategy is
more viable (Madden, Hewett and Roth, 2000).
Although reactions to colour are considered highly individualised, universal colour
preferences are sought (Grieve, 1991). It is important for export decision makers to
understand which colours are preferred by their target consumers in each export market.
More importantly, if export decision makers are going to use colour in their product’s
packaging and labelling to create, maintain, or modify brand images, they must understand
what meanings are associated with different colour combinations. For example, black on red
signifies happiness to Chinese people. A combination of red on white represents celebration
and signifies life force to the Japanese.
Globalisation of tastes has already introduced numerous fast food empires into China. As in
other rapidly modernising and urbanising countries the breakdown of traditional families,
high rates of female employment, and reduced willingness to cook are fuelling increased
purchases of fast foods high in saturated fat and refined sugar (Smil, 2003). Hence, food
exporters do need to consider how willing Chinese consumers are to break away from their
traditional diet and adopt a Western one? What will be the impact of that willingness on the
decision to standardise or adapt packaged food exports to China?
What we eat, how it is prepared, and the rules and meanings that permeate every aspect of
food consumption practices are all socio-cultural matters, irrespective of their biological,
psychological, or economic dimensions (Alden, Steenkamp, and Batra, 1999). Because of the
deep connections to local culture, food generally is regarded as the product category that is
most often consumed in traditional and locally idiosyncratic ways. The Alden, Steenkamp,
and Batra study and the Fischler studies suggest a strong motivation for export food
marketers to China to consider at least some form of product customisation.
79
Bhandari and Smith (2000) studied the relationship between the level of education among
adult Chinese consumers and their food consumption patterns. The underlying assumption in
the Bhandari and Smith research is that in China, as in other developing nations, education
will lead to alternations in people’s eating habits and in their demand for food. They found
that the educational level of the male and female heads of the household had a differential
impact on food consumption patterns. Female education had an effect on the consumption of
nutritious and preferred foods that was independent of the effect of income. Male education,
by contrast, had an effect on the consumption of these foods only when it interacted with
income. For food exporters to define strategy for healthy eating, it is important to know what
sources of information are sought by different population groups in the target foreign market,
as well as to ascertain which are the most trusted ones (de Almeida et al., 1997).
Packaged Food Product Labelling
The potential effect of visual sensations should not be underestimated, even for food
products. Perceptions of quality are influenced by visual image (Hetherington and
MacDougall, 1992). At least pre trial, this is likely to be true even for packaged food
products. Food labelling is a prime marketing tool for domestic and international marketers.
Food labels are a key source of information for the consumer (Allen, Gupta, and Monnier,
2008). Consumers’ taste evaluations are influenced by cultural symbols ascribed, consciously
or unconsciously, to a food or beverage often depicted in a product’s labelling. As previously
discussed, food labels also serve as a regulatory control vehicle in respect of consumer
protection and fair trading (Allen, Gupta, and Monnier, 2008; Verbeke and Viaene, 1999).
Thus, food labels may need to be adapted to conform to each country’s food labelling
regulations.
Kotler (1997) provides export decision makers with a practical guide to the aims of labelling.
He states that food products labelling has four functions: To identify, grade, describe and
promote the product. These functions enhance the ability to differentiate products, enlarge
product attractiveness and assure the customer of a certain level of product quality (Northern,
2000). Such is the importance of labelling, that in an experiment conducted by Nevid (1981),
participants preferred the taste of Perrier mineral water over rival Old Fashioned Seltzer
80
when the two products were labelled; when the products were offered without labels,
participants did not show a preference. When considering the symbolic aspect of food
consumption and the foods’ labelling, the labelling need not be restricted to packaged food
and beverages. For instance, Wansik, van Ittersum, and Painter (2005) found that when a
food item on a restaurant menu was described using evocative terms (e.g. succulent),
restaurant customers reported that the food tasted better than when evocative terms were not
used. This has important implications for the words used (and in the context of this study,
translated into Chinese language) for food export decision makers.
Food products appear to embody strong associations with place, as they have by their very
nature a land based geographic origin (Tedone, et al., 2007). Although there are not such
clear indications on exact linkages between consumer perceptions and places where the food
is produced, origin relates to the delivery of quality and authenticity (Tregear, Kuznesof, and
Moxey 1998), The Scottish Food Strategy Group (1993, p. 3) provide a useful definition of
quality food products as: ‘a quality food and drink product is one which is differentiated in a
positive manner… from the standard product, is recognised as such by the consumer, and can
therefore command a market benefit if it is effectively marketed.’ This definition is accepted
in light of no previous definition of food product quality linked to a product’s country of
origin.
Quality in food products can be adapted for the market that the product is trying to serve.
Food export decision makers make food quality decisions (and hence product
customisation/standardisation decisions) for their various international markets. Food
producers will supply quality food if it is profitable for them or if they are required to do so
(Caswell and Mojduszka 1996).
Kim, Nyaga, and Capps (2001) state that labels of quality are strongly needed for food
products. This is due to the possibility that consumers know less about how food products are
produced and controlled than they may about other products and that there are fewer
consensuses on what is good and bad to eat. The absence of quality food product labelling
tends to increase consumer uncertainty in the food product. Dimara and Skuras (2005)
suggest that consumers use product labels as cues for product quality. They found that
informational labelling linking product to place ranks top among a wide set of information
81
sought on labels. Maggat and Viscusi (1992) argue that too much information, or information
delivered in a complex format, will not be used by consumers. Korthals (2001) argue that
labels, besides their direct shopping aid impact, play a very important third party role in the
sense that they are related to a manufacturer’s strategic choices and to the operation of
regulatory and information policies. Hence another challenge for export food decision makers
is to decide how much information is required: 1) by law to ensure that a food product’s
packaging and labelling conform to a nation’s food labelling regulations and 2) by
consumers. These product-related decisions are customisable on a product by product, nation
by nation basis and must be made to ensure that an export product is optimised for an
international market.
A field experiment (Taylor and Bower 2004) indicated that consumers’ intentions to comply
with product instructions is enhanced when consumers are told how compliance with the
instructions will lead to the desired outcomes in terms of product consumption. The central
tenet of the Taylor and Bower study is the consideration of methods of improving consumer
product instruction compliance when non-compliance with a product instruction does not
necessarily lead to a hazardous situation, probably a fair description of the kind of result
which could occur if packaged food is poorly cooked. If customers fail to use products in a
manner consistent with the product instructions (often contained on the product’s packaging),
marketer efforts to provide customers with high quality products may come to nothing.
Consumers’ misuse of product because of failure to correctly follow product instructions may
induce dissatisfactory product performance or product failure. Further, if a consumer fails to
use a product properly, the consumer may blame the marketer (and/or manufacturer) for the
product’s failure (Laufer, et al., 2005). An implication for packaged food exporters is that not
only must they consider customising their labelling in different languages. These exporters
will also face cross cultural differences in terms of labelling their products with culturally
linked cooking and/or food preparation instructions. Failure to provide accurate, effective
cooking and consumption instructions could lessen the marketability of the product in export
markets.
Studies suggest that consumers who reported using nutrition label information consumed less
dietary fat than those who reported not using information (Kim, Nayga, and Capps, 2000).
Lin and Lee (2004) make a link between food label information and dietary behaviour.
82
Individuals, who consume a higher percentage of calories from fat, are less likely to report
searching for fat information on food labels. Satia, Galanko, and Neuhouser (2005) also
reported that label users had lower intake of dietary fat than non-users. These findings are
important for food exporters. Since fat is a food content and often used to enhance the taste
and flavour of food, the level of fat used in foods is determined by the manufacturer. This in
turn may impact export marketing since taste and flavour (derived partially from fat content)
may be culture, nation or segment specific and thus adaptable to the needs of individual
markets.
New Product Development for International Markets
The prevailing view of products in marketing is that products are a bundle of attributes and
that customer utility is a function of those product attributes (Ailawadi, Neslin, and Gedenk,
2001; Krishnan and Ulrich, 2001). This being the case, managerial decision makers are
charged with the responsibility of developing the product attributes that are sought by the
relevant export markets, and these product attributes are adaptable during the product design
and development process (Landwehr, Wentzel, and Herrman, 2012). Not surprisingly then,
few areas of international marketing have received as much attention from researchers as new
product development for foreign markets. Scholars have considered the strategic decision of
new product development for international markets from various perspectives. These include
process performance and product attractiveness (Brown and Eisenhardt, 1995; Landwehr,
Wentzel, and Herrman, 2012), market conditions (Cooper and Kleinschmidt, 1994), research
and development execution (Maidique and Zirger, 1984), competitive advantage (Frambach,
Prahbu, and Verhallen, 2003), information sharing among new product development team
members (Song and Parry, 1994; 1997), resource commitment (Lages and Montgomery,
2004; Maidique and Zirger, 1984), research and development (Atuahene-Gima and
Evangelista, 2000), decision making (Krishnan and Ulrich, 2001), and timeliness of
international product rollout (Chryssochoidis and Wong, 1998). To that end, Krishnan and
Ulrich (2001, p1) define product development as ‘transformation of a market opportunity into
a product available for sale.’
83
New products are important contributors to a company’s growth, profitability and its ability
to compete in the (international) marketplace (Crawford, 2003; Landwehr, Wentzel, and
Herrman, 2012; Maldonado and Tansuhaj, 1998; Song, Kawakami, and Stingellow, 2010). A
lack of product innovativeness has often been cited as a consistent and dominant factor in
explaining why new products fail (Nantachai, Petty and Scriven, 1992; Sethi, Smith, and
Park, 2001; Szymanski, Kroff, and Troy, 2002). Innovativeness presumes a degree of
creativity in the new product design process (Landwehr, Wentzel, and Herrman, 2012; Zirger
and Hartley, 1994).
Extant research on international new product development considers the strategic decision of
various different perspectives. For instance Lim, Sharkey and Heinrichs (2006), Slotegraaf
and Atuahene-Gima (2011) and Xie, Song, and Stringfellow (2003) suggest organisations
take an integrated or cross functional approach when pursuing new product development
strategies to increase the chances of success, while several studies suggest export decision
makers and new product development managers are bringing together experts from different
countries within and outside their organisations to develop products (De Clerq, Thongpapanl,
and Dimov, 2011; McDonough 2000; Norton, Parry, and Song, 1994; Song and Parry, 1996;
Swik, 2002). McDonough (2000) found a positive impact of cross functional team use on
NPD performance. In light of this, Durmusoglu, Calantone, and McNally (2011) define cross
functional team use as:
…implementing a core team with members from different functions, where this core
team actively participates from a new product’s inception through to its launch (p.
716)
To expand our understanding of cross functional NPD team theory, the degree of cross
functionality in new product development teams refers to the extent of different functional
representations, whose members are involved in attending team meetings, evaluating
opportunities, and determining the most efficient manner for developing new products
(Brown and Esenhardt, 1995).
A product’s design (standardised or customised) can contribute to that product’s success. For
instance, Nussbaum (1993) posits a product’s appearance (e.g. its packaging and labelling) is
a means of communication information (e.g. a product’s attributes) to consumers. In doing
84
so, a product’s appearance (design) has the potential to develop a brand identity. Similarly,
several scholars (Crilly et al., 2004; Ottman et al., 2006) suggest that a product’s design is a
means by which, in a cluttered market, a product gains consumer notice. Lau and Ngo (2005)
report that an organisation’s culture, structure, and practices can aid or hamper new product
development and subsequent success, whilst the need for extensive market(ing) research and
subsequent analysis is recognised by several scholars as being critical to new product
development for international markets (Radnor and Noke, 2006).
Following the prevailing literature on new product development, Frambach, Prahbu, and
Verhallen (2003) offer export decision makers a different view of the new product
development-competitive advantage relationship. Using Porter’s (1980) generic strategies
typology, namely cost leadership, differentiation and focus, Frambach, Prahbu, and Verhallen
developed a framework linking firm’s relative emphasis on cost leadership, product
differentiation, and focus on firm’s customer and competitor orientation, as well as their new
product development and introduction activity. The Frambach, Prahbu, and Verhallen (2003)
study focused on how firms’ relative emphasis on different strategies influences the degree to
which they engage in new product development and introduction. The Frambach, Prahbu, and
Verhallen (2003) framework proposes that firms engage in new product activity to a greater
extent depending on the strategic choices they make and on the degree to which their strategy
influences the nature and extent of their market orientation. Hence, a key premise in the
Frambach, Prahbu, and Verhallen (2003) model is that market orientation has a mediating
role to play in the relationship between business strategy and new product development. This
framework provides export decision makers who engage in new product activity with a range
of options to consider.
Some scholars have recognized the existence between market orientation and new product
development and an organisation’s market orientation. The role of market orientation as an
antecedent of organisational performance has been extensively studied in various contexts
(Deshpande and Farley, 2004; Narver and Slater, 1990; Voss and Voss, 2000), however,
studies concerning market orientation and its effect on new product performance are less
common (Atuahene-Gima, 2003; Atuahene-Gima, and Evangelista, 2000; Gotteland and
Boule, 2006). Previous new product performance-market orientation research has yielded
mixed results. For example, Langerak, Hultink, and Robben (2004) found no significant link
85
between the two variables, whereas Subramanian and Gopalakrishna (2001) found a
significant impact on new product performance, as a result of an organisation’s market
orientation.
There is causal evidence linking new product development and international product rollout.
For instance, Chryssochoidis and Wong (1998) found a positive link between new product
development process proficiency, and timeliness in international new product rollout. Their
study supports the positive and significant associations between new product outcome and
proficient execution of the new product development process found in earlier literature (e.g.
Song and Parry, 1996). The Chryssochoidis and Wong study also found that delays in
international product rollout are more likely for new products that lacked a competitive
advantage. They define competitive advantage of products to include such things as:
uniqueness of the product features and benefits, as well as higher product qualities relative to
competing offerings. These features and benefits are customisable to specific target segments
in export markets (Dickson and Ginter, 1987).
Another stream of new product development research explores the factors that lead to success
(or failure) of new products in export markets. Notably, Brown and Eisenhardt (1995)
developed a model that highlights the distinction between process performance and product
effectiveness and the importance of agents, including team members, project leaders, senior
management, customers and suppliers, whose behaviour affects the successful (or otherwise)
outcomes of new product development. They found that new product development is a
critical means by which members of organisations diversify, adapt, and re-invent their firms
to match the evolving market conditions. Thus, they conclude, product development is among
the essential processes of success, survival and renewal of organisations, particularly for
firms in either fast paced or competitive markets. That is, successful products are more likely
when the product has marketplace advantages, is targeted at an attractive market, and is well
executed through excellent internal organisation (Sheremata, 2000).
The underlying rationale of the Brown and Eisenhardt model appears to be that although
technical and market changes can never be fully controlled, proactive product development
can influence the competitive success, customisation, and renewal of organisations. Of
interest in this research study is the link between new product development and the need to
86
adapt or standardise products for successful marketing in China. In other words, what is the
role of product customisation or standardisation in the new product development process for
internationally marketed products?
One of the important issues to come from the Brown and Eisenhardt (1995) study is that
successful new product development for domestic or international markets is the result of:
Careful planning of a superior product for an attractive market;
The execution of that plan by competent and well-coordinated cross-functional
teams (Durmusoglu, Calantone, and McNally, 2013) that operate with
The blessings of senior management.
Brown and Eisenhardt further observe that the most important determinant of new product
success was product advantage. They define product advantage as the intrinsic value of the
product, including unique benefits to customers, high quality, attractive cost, and innovative
features. This they claim is a critical success factor. Of particular interest to this research
study, is the assumption that product quality and unique benefits to customers (from the
Brown and Eisenhardt definition) is likely to differ from the perceptions of consumers in one
country to consumers in another. Hence, product advantage as defined by Brown and
Eisenhardt might be a function of product C/S.
Of interest in this research study is the link between new product development and the need
to adapt or standardise products for successful marketing in China. In other words, what is
the role of product customisation or standardisation in the new product development process
for internationally marketed products?
Legal Constraints on Chinese Food Marketing
Importing and selling foreign made food products is growing increasingly complicated.
China’s legal system and infrastructure are underdeveloped, and enforcement is erratic and
often biased (Moustakerski, 2002). New laws and standards were introduced to prepare China
for WTO membership. Labelling requirements can be cumbersome. Food products must meet
the latest regulations, which usually mean developing new labels and packaging in Chinese.
87
These regulations create a potential non-tariff trade barrier which may necessitate
customisation of a food product for export into China (Matthews, 1994).
Kan (1996) refers to the term ‘functional’ foods as a surrogate for ‘healthy foods’. In China,
healthy foods are usually divided into three categories: fortified foods, special nutritional
foods, and foods for special health use. Kan notes that China, like most countries, has
national laws on the manufacturing, importation, processing, and marketing of healthy foods.
It is unclear whether the marketing aspect of these laws is aimed at demonstrating
environmental friendliness regarding disposal of the foods’ packaging post consumption.
These laws are governed by the Provisional Law of the People’s Republic of China on Food
Hygiene, overseen by the Ministry of Health.
Article 43 of the Provisional Law of Food Hygiene defines nutritional fortified foods as
Natural or synthetic food additives, belonging to the category of natural nutrients, that are
put into foods in order to enhance the nutritional value (in Kan, 1996).
Article 43 also defines special nutritional food as:
Those foods in which ingredients and proportions of natural nutrients have been changed
to suit the needs of some special population groups (in Kan, 1996).
Central to these definitions, is the idea that additives are put into these foods by the food
manufacturers. The type and amount of nutrients may be governed by law, but may also be at
the discretion of the food manufacturer. This dictates that food exported to China will need to
conform to certain food hygiene standards. These standards may differ from that of the
domestic market, thus necessitating the need for some product customisation (Zunft, et al.,
1997). The definition of special nutritional foods may even suggest a basis for segmenting
markets in China (Gale and Huang, 2007). Laroche, Bergeron and Barbaro-Forleo (2001)
found that marketers, who segmented their markets carefully, were able to charge higher
prices for products that were deemed by the market to be environmentally friendly. Food
88
manufacturers and exporters need to determine the degree (or amount) of customisation that
is required to ensure their food export product conforms to Chinese law in these respects.
In terms of impact on consumer behaviour, a review of the literature reveals significant
variation in the outcomes of empirical food safety studies. For instance, Byrne, Gempeshaw,
and Toensmeyer (1991) found that males expressed less concern over pesticide residues than
females, while Eon (1992) discovered that low income consumers were more willing to pay
premiums to ensure that produce had lower pesticide residue levels. Jussaume and Judson
(1992) found that high income consumers were more inclined to trust government and
business to guarantee food safety supply. Tse (1999) posited that perceived product safety is
an underlying dimension of perceived product quality.
Awareness of food safety issues in China has been heightened by both the rejection of
exports in foreign markets and a series of food safety incidents in the domestic market
(Calvin, et al., 2006). The government has responded by raising domestic and imported food
safety standards and implementing an inspection and testing systems for consumer products
and agricultural commodities (Qui, 2010).
A product can be need satisfying, hence fulfilling part of the notion of product quality, and
yet have a relatively low standard of product safety (Tse, 1999). For example, a food product
may be very delicious (generally accepted as constituting quality), but may be thought to
contain artificial additives that are harmful to consumers. This notion gives credence to the
argument that consumers will be the ultimate judges of food products and will determine their
merits, successes and failures (Stenholm and Waggoner 1992). This makes it imperative for
export decision makers to gain a complete understanding of how the general public and target
market consumers form judgements about safety, not just how they can conform to
government regulations.
Xu, et al, (2006) warn international marketers selling goods to China to beware of emerging
‘green’ issues pertaining to food imports. While attempting to increase sales volume
internationally, export decision makers should recognize that proper labelling not only
reduces legal compliance costs, it minimises the risk of product recall, and provides
international consumers with confidence in the product (Lai, 2004).
89
Conclusion
It is the commonness of food as essential to life that makes it at once a global opportunity and
a localised phenomenon. Consequently, food behaviour seems to be idiosyncratic to different
societies. Specifically, food plays a central role in the life of the Chinese (Eves and Cheng,
2007). Our understanding of China’s food culture must include the types of food products
Chinese consumers prefer, as well as an understanding of the context in which these products
are consumed.
90
Chapter 3
ORGANISATIONAL AND EXPORT ‘PERFORMANCE’:
CONCEPTS, METRICS, AND THE ROLE OF
INTERMEDIARIES
Introduction
Export decision makers may choose to base their packaged food product C/S decision on,
amongst other things, predetermined corporate metrics which attempt to reveal corporate
performance. Such metrics are explored in this chapter. The notion that crucial decisions
concerning whether it is more profitable to market a standardised packed food product to
China, or to market an adapted offering, can be facilitated by off–the-shelf or customised
‘performance’ metrics is surely an alluring one. However, what is the most appropriate
manner to define, examine and measure organisational and export performance? What
evidence is there, that such measures can be convincingly linked to the many variables at play
within a marketing mix – including our focal product decisions? It is useful at this stage to
understand export performance, which from a definitional point of view, refers to the extent
to which an organisation’s objectives, both financial and strategic, are achieved by exporting
products in accordance with the organisation’s export marketing strategy (Cavusgil and Zou,
1994). Such is the importance of export performance that Lages, Jap, and Griffith (2008)
suggest that export decision makers consider export performance across three dimensions:
Export intensity or the proportion of production output to exports as measured by the
percentage of exports to the organisation’s total sales and profits.
Export achievement or the extent to which the organisation achieves its export
objectives in terms of sales, profitability, and market share.
Export satisfaction or the assessment of the effectiveness of a marketing program in
terms of its sales, profitability, and market share
The success of a food product in international markets depends on many factors. Getting
access to distribution channels and having the product placed on supermarket shelves is
91
crucial to export success. Even more important is to know what consumers seek from
packaged food products when they make food product selection choices. Therefore,
understanding the consumer choice and the determinants of modern food consumption is
important for product developers as well as for export marketers. It determines export
performance (Styles, 1998).
In this chapter, organisational and export performance and measures of these constructs is
examined. First, the study examines ‘organisational performance’ from a macro-economic
viewpoint by looking at some of the various measures organisations may consider when
measuring corporate performance. Then the more specific concept of ‘export performance’
and its measurement is considered.
Organisational Performance
Managerial decision making at a corporate level seems very likely to influence
‘organisational performance’ (Eriksen and Knudsen, 2003). Decision makers are charged
with the responsibility of identifying and implementing resources that will create sustained,
profitable differences between the focal organisation and its competitors (Lages and
Montgomery, 2004). Such decisions are crucial to the well-being of the organisation.
A review of the literature reveals a wide range of factors that have been linked to
organisational performance. Whether or not these factors are seen as contributing to a narrow
financial concept of ‘performance’, or as integral elements of a more broadly conceived set of
measures of ‘organisational performance’ is an open question. Indeed, studies in
organisational performance have combined organisational theory with marketing theory and
suggest that there are three important factors that determine an organisation’s ability to
successfully compete: These are:
Product marketing strategy decisions that assist the organisation to achieve its goals
by matching organisational resources and capabilities in a manner that allows the
organisation’s strategic goals to be met (Day and Wensley, 1988; Hughes and
Morgan, 2007)
92
The fit between organisational culture and product market strategy decisions that
enable the effective implementation of planned product strategies (Danneels, 2002)
Organisational culture. This shapes the way decision makers sense and behave in a
given market environment (Bock, et al., 2005; Gong, 2009).
One recent approach to understanding organisational performance considers employee
productivity as a focal metric (Black and Lynch, 1996; Chen and Chang, 2010). In the
knowledge economy, human capital is a form of intangible asset that organisations use to
create a competitive advantage. This in turn assists organisations to meet their organisational
performance targets. Human capital in the form of professional skills, creative abilities, and
managerial expertise differentiates organisations and has been found to have a positive
relationship to organisational performance. Thus organisational performance refers to a
broader set of metrics that go beyond profitability (Dakhli and De Clercq, 2004; Darroch,
2005).
Organisations that empowered their employees to make important market based managerial
decisions (Mittal, Ross and Tsiros, 2002), such as goal setting, including targeted sales
performance (Schillewaert, et al., 2005) were found to outperform their industry rivals in
various metrics (De Jong, De Ruyter, and Wetzels, 2006). As Darroch (2005) argues,
although knowledge among employees is a resource, the management of that knowledge
enables an organisation to complete effectively in its chosen markets. Managers do so by
turning knowledge into specific capabilities, which in turn provides a framework for
improving the organisation’s competitive behaviour (Argote, 2012).
Employee knowledge management and productivity has been given considerable attention in
the literature. For example, Teece (1998) and Wiig (1997) found a direct positive correlation
between an organisation’s knowledge management and its financial performance, while
Ndlela and Du Toit, (2001) posit that employee knowledge management improves an
organisation’s competitive advantage. This suggests the following question: is the attainment
of competitive advantage a precursor of organisational performance (perhaps viewing
performance narrowly as ‘financial performance’), or an integral part of it?
93
Carneiro (2000) noted that employee knowledge management in an organisation improves
that organisation’s ability to innovate. Organisational innovations help the organisation to
compete in its chosen markets (Hauser, Tellis, and Griffiths, 2006; Kester, et al., 2011; Song,
Kawakami, and Stringfellow, 2010). Moorman and Miner (1997) were able to demonstrate
that higher levels of specialised knowledge and skills had a positive impact on new product
innovation levels. New products and the ability to market them properly across all chosen
markets is the lifeblood of an organisation. Long term success depends on having effective
decision making processes in place to embrace market opportunities (Chao and Kavadias,
2008; Kester, et al., 2001). Again, should such ability in innovation be viewed as an element
of organisational performance, or merely as a precursor to a narrow measure of ‘financial’
performance?
The relative power of the organisation has been linked to organisation performance and
profitability (Claver, Molina, and Tari, 2002; Porter, 1980). This approach to organisational
performance suggests that larger organisations that compete in a given market or industry can
yield economic power over smaller less experienced rivals, thus effectively creating an entry
barrier to the market for prospective entrants. The underlying assumption is that any industry
profits are shared among fewer competitors.
Research and development (R&D) is another variable that has been found to affect
organisational performance, specifically in terms of profit generation. Academics and
practitioners agree that research and development investments will benefit an organisation
with positive operating performance (Chan, Lakonishok, and Sougiannis, 2001; Eberhart,
Maxwell and Siddique, 2004; Karjalainen, 2008). Grossman and Helpman (1991)
demonstrated that research and development expenditures have an influential relationship on
profitability. While R&D investment may at first appear to be a mere input to a narrowly
conceptualised ‘organisational performance’, it can also be seen as akin to innovative ability
(discussed above), and capable of interpretation as an integral component of ‘performance’
(Morgan, 2012; Porter, 1980; Slade, 2004). The central hypothesis in these studies is that
market structure (e.g. oligopoly, monopolistic competition) plays an important role in
determining business conduct, and in turn business conduct determines industrial
performance (Pelham and Wilson, 1995). For instance, highly concentrated industries are said
94
to enjoy higher profits due to individual organisations having higher market share (Scherer
and Ross, 1990).
In an era of globalisation, there is an emerging interest in understanding the role that strategic
alliances (either domestic or international) play on profitability and on other organisational
performance outcomes (DeSarbo and Grewald, 2008). Scholars in the area of strategic
alliances and their influence on performance measures posit that corporate mutual
dependence enables organisations to access markets and resources that help them improve
their competitive situation (Morgan, 2012; Porter, 1976, 1979). Prior research has considered
the effects of strategic alliance on various dimensions of performance such as cost reduction
(Maskell, et al., 2007), market share (Afuah, 2000), new product development, (Gomes and
Ramaswamy, 1999; Rothaermel and Deeds, 2004), productivity (Oum, et al., 2004), and
market entry (Mintzberg, et al., 2003). The central idea behind the benefits of strategic
alliances on domestic or international organisational performance is that strategic alliances
enable organisations to achieve economies of scale through joint operations, asset
specialisation, knowledge acquisition, and access to resources (Mintzberg, et al., 2003). The
wide range of dimensions of performance linked to strategic alliances also underlines the
flexibility and breadth of the concept ‘corporate performance’.
The Role of Products in Organisational Performance
Moving now closer to the heart of the current research concern, the product or service
offering - organisational performance link has been given considerable attention in the
literature (Qian, 2002). For example, Ulrich (1995) argues that a product’s ‘architecture’,
defined as the scheme by which the function of a product is allocated physical components,
can be a key driver of the performance of an organisation. The functionality of a product is
the basic purpose it serves (Guo, Hao, and Shang, 2011; Keller and Moorthi, 2003). Ulrich
(1995) posits that an organisation has substantial latitude in choosing a product’s architecture
and that the architecture of the product is important to managerial decision making, since a
product’s function is often linked with the country in which it is made, or the country to
which it is being sold (Keller and Moorthi, 2003). Product development then, should offer the
greatest opportunities for an organisation to generate sufficient revenue to meet its profit
95
objectives (Qian, 2002). From a new product development perspective, Prahalad (1990)
posits that the long term performance of organisations operating in international markets is
based on their ability to develop product and process innovations.
An organisation’s tangible or intangible offering is its most visible source of profit. Not
surprisingly then, the innovation of such offering is a key managerial decision that directly
affects organisational performance (Audretsch, 1995). An ‘innovation’ is defined as the
commercial introduction of a new product, process or service, and organisations have used
technology as a means by which to develop their innovative product or service offering
(Scherer, 1990).
Extending the notion of ‘product as a profit generator’, having appropriate product diversity
among an organisation’s offerings was found to have a positive effect on organisational
performance (Gruca and Rego, 2005). Product diversity refers to the degree of relatedness
among various product segments (Abernathy, et al., 2005). International marketing and
product diversification are two important directions for corporate expansion (Qian, 2002). To
better understand the effect that product diversity can have on an organisation’s profit,
Rumelt (1982) suggests that there are two types of product diversity. Related product
diversification refers to a situation organisations diversify within industries, while unrelated
diversification occurs when organisations diversify across industries. The relative costs and
profits of such product diversification are likely to depend on the interrelationships between
the different business activities of the organisation (Qian, 1997). Organisations with related
businesses can avoid duplicate facilities and individual business units can provide for
themselves and related businesses. This should result in lower fixed costs and a decrease in
average costs, assisting the organisation to become profitable (Qian, 2002).
Whilst product diversity takes a macro view of product management, product variety is its
micro equivalent. Product variety refers to the number of different products offered by an
organisation at a single point in time (Randall and Ulrich, 2001). Generally, the greater the
variety of product offering, the greater the inventory and production costs an organisation
incurs. Product variety costs usually have a flow on effect to the cost of employing
intermediaries who carry the organisation’s products to the chosen markets. These costs need
to be covered to achieve organisational profit. Similarly, on the basis of a cross sectoral
96
empirical analysis of the data on foreign-invested enterprises operating in China, Luo (1997)
found that among the business strategy variables, product quality, sales force marketing, and
liberal credit terms had significant performance influences on foreign invested enterprises
operating in China.
Environmental Factors Affecting Organisational Performance
Most of the extant literature examining organisational performance measures focuses on the
organisation’s domestic markets. In an effort to understand organisational performance from
a global market perspective, Amato and Wilder (2004) developed and tested a model that
relates profit rates of multinational organisations to market share where markets are defined
at a global level. Their work addressed issues in the effectiveness of global competition for
multinational firms, which in turn assists international marketers to establish their global
marketing mix. Lu and Beamish (2001) found that high geographical diversification,
measured as the ratio of sales by foreign subsidiaries to total sales, can be a significant
predictor of organisational performance. Similarly, Kim, Hwang, and Burgers (1993) argued
that the more multinational an organisation is, the greater its opportunities to leverage
strategic resources while simultaneously diversifying market risks thus raising its
performance, while Kim, Hwang and Burgers (1989) found that the impact of product
diversification categories, defined as expansion into product markets new to the organisation
(Hitt, Hoskisson, and Kim, 1997), on organisational performance was contingent on the
degree of multinational expansion.
Li and Atuahene-Gima (2001) provide a conceptual framework which stresses the effects on
the environment and other external forces on how firms organise and compete in the
(international) marketplace. Their framework is based on two tenets:
1. organizations attempt to manage uncertainty and mitigate the effects of external
forces to enhance their organisational performance, and
2. organisations are constrained by and dependent upon other organisations that control
critical resources (e.g. access to raw materials) for them.
97
Central to the research conducted by Li and Atuahene-Gima (2001, p. 1124) is the product
innovation strategy that they define as
‘a reflection of a firm’s commitment to developing and marketing products that are
new to the firm and/or new to the (international) market.’
Much of the current interest in the profitability of multinational organisation stems from the
seminal work of Caves (1971, 1982) who argued that multinational organisations possess one
or more types of intangible knowledge assets, such as the ability to promote goods in foreign
markets, which makes it easier for international consumers to distinguish one organisation’s
product from competing offers. Such assets have revenue raising capabilities for the
multinational enterprise, thus enhancing its profit generating capabilities. Building on the
work of Caves (1971, 1982), Gomes and Ramaswamy (1999) demonstrate that increasing
levels of multi-nationality of an organisation provides that organisation with significant
performance benefits (conceived essentially as profit) up to a certain optimum level beyond
which benefits of multi-nationality decline while costs increase. The position in the Gomes
and Ramaswamy (1999) study is that initial investment in multinational business activity will
incur costs (losses) until a critical customer mass is achieved at which profits (and other
performance measures such as market share) will peak before levelling off or declining.
There is a growing appreciation that a multinational organisation’s ability to generate profits
from its offshore operations is contingent on the environment found in each foreign market
(Doh, 2005). Some authors use the term country effects to describe this situation. Country
effects may rise due to differences between countries and their endowments, their financial
and technological infrastructures, their institutional and regulatory frameworks, and their
openness to international trade and access to markets (Caves, 1982; Goddard, Tavakoli, and
Wilson, 2009; Rugman and Verbeke, 2004; Wan and Hoskisson, 2003). Country effects on
organisational profitability may even reflect variations in accounting practice and disclosure
between countries (Leuz, Nanda, and Wysocki, 2003). For instance, under a common law
system profits and losses are often reported faster than they are under a civil law system and
managerial decision makers may be placed under pressure to attend to the sources of losses
more rapidly (Hung, 2001).
98
Hawawini, Subramanian, and Verdin (2004) assert that the impact of country effects on
organisational profitability is neglected in much of the extant literature. In one way this study
can be seen as examining managerial beliefs concerning a single country effect – that of
China - on their organisations ability to generate profits, or to ‘perform’ however defined.
This study is interested in whether our focal nation’s (i.e. China’s) endowments will affect
exporters seeking choice of market, that is, whether China has specific endowments that
make her a destination choice for food exporters.
Measuring Organisational Performance
Organisational performance, in terms of the acquisition and management of economic profit
for the benefit of the organisation and its investors, has attracted much scholarly interest. This
is hardly surprising given the dynamic nature of the markets many organisations compete in,
and the wide variety of ways that organisational performance can be measured (Oum et al.,
2004).
Researchers have considered organisational performance and its relative measures from
various perspectives. From the preceding discussion the researcher concludes that not only
are there a very wide range of factors which have been linked to organisational performance
other than product or other marketing factors, but that the very concept of ‘organisational
performance’ is subject to interpretation. ‘Performance’ can refer not just to financial
performance or more narrowly, profitability, but to a range of factors which, if adequately
measured, contribute to such narrow measures of performance, while at the same time being
capable of interpretation as actually comprising key parts of broader conceptualisations of
‘corporate performance’.
Performance measurement plays an important role in achieving organisational objectives
(Cedergren, Wall, and Norstrom, 2010). Two well-known statements that have entered the
corporate lexicon that reflect this, namely Peter’s (2002) assertion that ‘what gets measured
gets done’, and Hauser and Katz’s (1998) ‘you are what you measure’ are testaments to the
importance of establishing both good corporate and good product related metrics. Every
metric, whether used explicitly to influence behaviour, to evaluate future strategies, or simply
take stock will affect decisions and subsequently actions (Hauser and Katz, 1998).
99
In the organisational performance metrics literature, organisational size and age have
previously been studied as factors contributing to organisational performance (Dobrev and
Carroll, 2003). Organisational size and age are important attributes because they shape the
internal ability and behaviour of the organisation while simultaneously interacting with the
external environment to shape the behaviour and performance (Haveman, 1993). Having
considered some of the many factors implicated in organisational performance, the current
study turns its attention to the way the construct ‘organisational performance’ may be
measured. A common organisational performance metric is market share (Chang and Singh,
2000; Kurtz and Rhoades, 1992). The notion of a ‘market’ is itself highly flexible, at times
referring to a national (or domestic) market, a market segment, or to a product or product
line. Kurtz and Rhoades (1992) suggest that when considering market share as an
organisational performance metric, organisations should determine whether there is a critical
level of market share above which the influence of market share on organisational
performance becomes notably stronger. This knowledge enables organisations to deploy the
necessary resources to enable the achievement of that market share.
Marketers would argue that organisational performance is complex, and warrants
considerations that go beyond financial ratio analysis to consider appropriate assessments of
market dimensions (Morgan, 2012). Even while focussing on financial measures alone, such
dimensions can include risk and instability as a function of opportunity cost calculations
(Skrepnek, 2004). To focus on commonly reported measures of accounting based rates of
return may result in misleading conclusions, especially in the assessment of industries that
have significantly different levels of risk or levels of intangible assets. As Clarkson (1977)
stated in his criticism of accounting based measures of profit, ‘any serious study of industrial
organisation and resource allocation must be concerned with real measures of economic
activity’.
The triple bottom line agenda focuses organisations not just on their economic performance
in terms of the value they add to their shareholders, but also on the environmental and social
value they add. This phrase was first coined by John Elkington in the mid 1990s as a means
to capture this notion. Organisations should report not only their financial performance, but
100
also their social and environmental performance (Norman and MacDonald, 2004). Ethical
leadership, employee wellbeing, sustainability, and social responsibility are the main
components of the triple bottom line (Fry and Slocum Jnr., 2008; Milne, Tregidga, and
Walton, 2003). Each component of the triple bottom line, simplified as ‘planet (the
environment), ‘people’ (employees), and ‘profit’ (financial performance) is assessed
independently. The organisation is not ‘in credit’ (i.e. achieving the triple bottom line) unless
all three bottom lines are positive (Buckley, 2003). Essentially, each element must be
measured, calculated, audited, and reported just as the financial performance of public
entities is (Norman and MacDonald, 2004). The ‘triple bottom line’ then, is a metaphor to
remind us that corporate performance is a multi-dimensional construct that goes beyond
simple profit and loss reporting (Pava, 2007).
Much discussion of corporate performance relative to marketing decision making relies on
traditional accounting measures of organisational performance. One criticism of such
measures is that whilst they were valid during an industrial age, they are no longer uniquely
capable of measuring performance in a post industrial era (Kaplan and Norton, 1992).
Further, such accounting metrics fail to reflect the intangible assets held by the firm
(Sawhney and Zabin, 2002). Finally, standard accounting metrics whilst acknowledging the
effect of depreciation in a capital investment such as research and development tend to take a
short term view of investments. They typically limit the effect of the investment to an annual
balance sheet or profit and loss statement. Most marketing investments however, take longer
than a year to reach critical mass, and thus generate a return on investment. Hence a long
term view is required in marketing metrics, especially if organisations are going to move
away from thinking of marketing as a cost rather than as an investment (Seggie, Cavusgil,
and Phelan, 2007). Clark (1999) championed the cause for a link between accounting and
non-accounting measures of organisational performance, demonstrating how traditional
accounting measures such as sales, profit, and cash flow can be expanded to include non
accounting performance measures such as customer satisfaction and brand equity. Customer
satisfaction and loyalty were in turn found to have a positive effect on organisational profit
(Oliver, 2010). This leads us to consider specific marketing metrics and their effect on
organisational performance.
101
Marketing Performance: Conceptualisation and Measurement
This study will now focus on the measurement of overall corporate performance to the
measurement of ‘marketing performance’, a matter of interest to both academics and
practitioners (Schultz, 2000). Marketing managers, as organisational decision makers, have
attracted criticism for their inability to identify and measure the value which marketing
delivers to the organisation (Seggie, Cavusgil, and Phelan, 2007). Much of this criticism
stems from the fact that marketing is seen as a cost rather than an investment to the
organisation. Marketing is often criticised as an organisational function that is isolated from
other functions, and in terms of its performance measurement. For instance, researchers have
found the need for marketers to closely coordinate their efforts with co-workers in product
development, supply chain management, and customer service, to improve overall
shareholder value and bottom line profit (Payne and Frow, 2005).
At a time when the role of marketing in an organisation was being questioned, a metric was
proposed by Kaplan and Norton (1992) that took a holistic approach to measuring
performance. The Balanced Score Card enables a manager to consider a broad look at the
whole organisation from four different, yet interconnected organisational perspectives. These
perspectives are: the customer perspective, the internal business perspective, the innovation
and learning perspective, and finally the financial perspective. Notice how these include
aspects discussed earlier in this chapter – for example, capacity for innovation. The main
benefit of the Balanced Score Card approach is that it requires managers from different
organisational units to work together to achieve organisational performance. It is also a
forward thinking, long-term approach to achieving organisational goals. Finally, the Balanced
Score Card considers both quantitative (e.g. financial) and non-quantitative (e.g. learning and
innovation) measures together, rather than in isolation.
The central theme connecting the marketing function and overall organisation performance is
that it is essential for all organisational functions to be financially accountable (Rust,
Moorman, and Dickson, 2002). At the centre of this theme is the notion the marketing
function’s key contribution is to serve as a link between the customer and the various
processes of the organisation (Day, 1994). Often when organisations are cutting costs to
improve bottom line performance, marketing is one of the first functions affected by the
102
cutbacks. This necessitates the need for marketing measurement, for without measurement it
is impossible to be accountable (Seggie, Cavusgil, and Phelan, 2007). This further
necessitates the causal linkages between the marketing and financial outcomes.
In the past, marketing managers have often relied heavily on subjective measures of
performance. This has given rise to the call for marketers to provide the organisation with
more measureable approaches to marketing productivity (Webster, Malter, and Ganesan,
2003). One such approach to have arisen is the Economic Value Added (EVA). First
proposed by Stewart (1993), EVA (Economic Value Added) is defined as the difference
between an organisation’s net operating income after taxes and its cost of capital of equity
and of debt. Supporters of EVA suggest that focusing on EVA as a performance
measurement leads to improved stock performance compared to focusing on the traditional
accounting measures. EVA provides a perspective that goes beyond simple accounting
measures and considers expenditures (e.g. advertising and promotion) as investments that
should be evaluated in line with the return on investment.
Another marketing metric commonly used by organisations to measure marketing
performance is brand equity. Organisations invest heavily in developing brand names for the
organisation itself and its market offerings (Hoeffler and Keller, 2002). As such, a brand
becomes a source of competitive advantage for the organisation (Keller, Parameswaran, and
Jacob, 2011). Srivasta and Shocker (1991, p. 5) define brand equity as ‘a set of associations
and behaviours on the part of the brand’s customers, channel members and parent corporation
that permits the brand to earn greater volume or greater margins than it could without the
brand name that gives it a strong, sustainable and differential advantage.’ From a
measureable performance viewpoint, Ambler (2000) describes brand equity as the reservoir
of cash flow that has been earned by good marketing but has yet to materialise in sales or
profits. Further, Simon and Sullivan (1993) link brand equity to incremental cash flows.
In summary, most scholars agree that there is no single performance measure that is superior
to all others for use at either organisational or marketing function level. Most decision makers
continually monitor their environment for signs of changes, for example, in consumer
demand, technology substitution, changes in the social and political environments, and access
to the future inherent profitability and growth in the organisation’s historical markets. As
103
Fraser and Hite (1988, p. 97) state that metrics selection is essentially a rational process by
which ‘marketing managers can learn to improve performance by altering utility levels
associated with control variables.’ The set of marketing metrics selected by an organisation is
likely to reflect aspects of intended performance which reflect a degree of subjectivity in
terms of their importance, rather than universal measures used by all organisations (Ambler,
Kokkinaki, and Puntoni, 2004).
Conclusions on Organisational Performance, Marketing Performance, and
Measurement
This study has discovered a set of possible conceptualisations of organisational performance,
and also of marketing performance, which are enormously disparate. They range from sets of
strictly financial measures, to a range of measures which reflect highly inclusive
conceptualisations of what it means for an organisation to ‘perform’ well. Even within the
domain of the marketing function, the range of possible measures of marketing performance
is very broad.
What is Export Marketing Performance?
Zou, Taylor and Osland (1998, p. 38) assert, export performance has ‘been measured by a
myriad of indicators in different studies.’ Export performance has been defined as having
elements of effectiveness, efficiency and continuity of export activities (Shoham and Kropp,
1998). Traditionally, scholars have relied on single, and in recent times, multiple measures of
export performance (Baldauf, Cravens and Wagner, 2000). From an export product C/S
perspective, a good fit between product strategy and the international context in which that
strategy is being executed is generally found to have significant positive effects for
performance (Venkatraman, 1989; Venkatraman and Prescott, 1990). Specific to product
customisation, Lages, Jap, and Griffiths (2008) found that product customisation is closely
related to export performance. Nevertheless, Kirplani and Macintosh (1980) related several
marketing variables to export performance and found that pricing and promotion were most
significant, whilst Cavusgil and Kaynak (1982) found that the marketing mix elements that
104
required the most modification to be suitable for international markets were promotion and
distribution. Packaging, physical product, and pricing required the least modification in their
study. These findings are in direct contrast to those of Burton and Schlegelmilch (1987) who
empirically confirmed a significant relationship between the uniqueness of a physical product
(as measured by its differentiation from competing products in the same export market) and
that product’s export performance. A later study by Thirkell and Dau (1998) supported these
findings.
Export performance according to Louter, Ouwerkerk, and Bakker, (1991), is a subjective
term, because what one export decision maker considers being an excellent performance,
another may condemn as rather poor. Export performance has been measured principally in
terms of 1) economic indicators – e.g. profit, sales, market share; 2) strategic outcomes –
gaining a foothold, or increasing awareness of the product/organisation or; 3) perceptual or
attitudinal – e.g. perceived satisfaction (O’Cass and Julian, 2003). As well as what to
measure, a key research issue has been how to measure export performance. For example, a
distinction has been made between ‘hard’ and ‘soft’ measures (Dolton, et al., 1980). Hard
measures include sales and gross profit, whereas self perception is regarded as a soft measure.
A review of the export performance literature identified a variety of variables associated with
an organisation’s exporting success (Racela, Chaikittisilpa and Thoumrungroje, 2007). These
included organisational characteristics (years of export experience, size, and management
expertise), managerial expectations from exporting (risk, cost, profit), and managerial
characteristics (age, education) (Moini, 1995). As discussed, some studies indicate that
performance is enhanced by standardising marketing strategies across nations (O’Donnell and
Jeong, 2000), while other studies reveal no association between standardisation and
performance (Albaum and Tse, 2001). Katsikeas, Piercy and Ioannidis (1996) suggest that
small companies are less able than larger ones to respond effectively to the needs of
customers in export markets. The most often cited organisational characteristics linked to
export outcomes have tended to be the size of the organisation (Cavusgil, 1984; Katsikeas,
Piercy and Ioannidis, 1996), experience in export marketing activity (Gemunden, 2012), and
market orientation (Racela, Chaikittisilpa and Thoumrungroje, 2007).
105
Influences on Export Marketing Performance
The current study will now examine literature concerning ‘export marketing performance’
and its measurement. This literature is of value in several ways. Firstly, it addresses, although
less than conclusively, the notion that managerial decision making concerning export product
matters actually does impact on ‘export marketing performance’. Secondly, this literature
suggests contexts or contingencies where customisation or standardisation may be
recommended. Thirdly, impact on export performance will certainly be a factor in managerial
thinking as the C/S decision is made. Hence, it is important to have an understanding of how
this may be perceived or measured. Finally, in attempting to define and measure export
performance, this literature highlights a range of possible influences on performance. In some
cases these are new to this discussion, although often they have already emerged and are
simply underscored.
The fact that the empirical evidence on product C/S – performance relationships, reviewed
here and already discussed in chapter one - is equivocal does not alter the fact that such
decisions are made regularly by export managers. Such managers appear to operate under the
belief that these decisions matter, and they absorb significant time and resources. The
matching of product to consumer needs and wants, in the most efficient and profitable way is
basic to the marketing concept within which most marketers are trained. This literature
emphasises the significant difficulty inherent in measuring ‘export performance’. The direct
relationship of any element of the marketing mix – not just of product - is difficult to
establish conclusively when the notion of ‘export performance’ is itself subject to wide
interpretation. Partly for this reason, but primarily because the key concern is with how actual
managerial decision making occurs, regardless of outcomes, this study will not be attempting
to measure performance in this study. It remains a construct subsequent to implementation of
export product C/S strategies decided upon, and beyond the scope of the study.
106
Organisational Performance and the Stage Approach to
Internationalization
One of the most developed streams of research examining exporting is the stage theory of
internationalisation (Wolff and Pett, 2000). This view holds that internationalisation is
accomplished by establishing an export capability through a developmental and sequential
process (Rugman and Verbeke, 2004). For many exporters it has become a blueprint for
managing the new product development (NPD) process to improve effectiveness and
efficiency (Cooper, 2008). Leonidou and Katsikeas (1996) conclude that a sequence of
activities in the export development process can be divided into three broad phases:
1. Pre-engagement phase – organisations not yet engaging in export activity;
2. Initial phase – Organisations that are sporadic or experimental exporters; and
3. Advanced phase – Organisations that are actively and consistently in export activity
The premise of the stage approach is that organisations progress from a less involved export
position to a more involved export position. It consists of a series of stages where the project
team undertakes the work, obtains the needed information, and does the subsequent data
integration and analysis followed by gates – where Go/Stop decisions are made to continue to
invest in the project (Cooper, 2008). However, recent research has used a resource based
theory (Barney, 1991) to propose that organisations need not always progress through stages.
The resource based view suggests that the principal determinants of an organisation’s
strategic direction and subsequent performance measurement, are the unique bundle of
tangible and intangible assets, capabilities, and knowledge that exists within those
organisations (Morgan, Kaleka, and Katsikeas, 2004). For instance, Oviatt and McDougall
(2005) present arguments and evidence that some organisations are ‘born global’. Oviatt and
McDougall (2005) attributed being international-at-foundation in part to advances in
communications, information flow, transportation, and the growing trend by entrepreneurs to
view markets internationally rather than domestically.
A body of literature suggests that how organisations learn about the export markets in which
they operate determines their performance in those markets (Barney, 1991; Conner and
Prahalad, 1996; Luo and Peng, 1999; Spender and Grant, 1996). Host country specific
107
knowledge is a driving force behind international expansion performance because such
knowledge cannot be easily acquired (Inkpen and Beamish, 1997; Luo and Park, 2001).
Expansion into foreign markets is always challenging, calling for organisational learning to
overcome the liability of foreignness (Johanson and Vahlne, 2009).
The Role of Strategy, Contingency, Competitive Advantage in
Organisational Performance
Lages and Montgomery (2000; 2001; 2004) posit that marketing strategy customisation to the
foreign market environment is particularly noted in organisations exporting to the most
developed markets, rather than in organisations exporting to the most competitive
environments.
The Lages and Montogomery (2000; 2001) research is based on a contingency view of
international marketing, that is, it asserts that customisation or standardisation of export
products is a matter of degree because marketing strategies are contingent upon internal and
external forces.
The impact of contingencies, and the variability of product C/S strategies which various
contingencies demand, underscores the importance of export product C/S decision making,
and it’s complexity.
Researchers have concluded that the ideal standardised global strategy should include at least
minimal local adjustments with consideration for local factors such as consumer
characteristics, culture, distribution, and regulation (Douglas and Wind, 1987; Simmonds,
1985). Further, as Jain (1989) suggests, little research has been conducted on the effects of
customisation and standardisation on relative export product performance measures such as
market share. However, Samiee and Roth (1992) found that across a variety of global
industries, performance did not differ between companies using global standardisation and
companies using customisation as their dominant marketing strategies. Katsikeas, Leonidou
and Morgan (2000) suggest that the relevance and importance of various performance
dimensions vary across stakeholder groups (e.g. employees, investors, customers), and
108
according to short term or the long term focus. Robertson and Chetty (2000) found evidence
of a strong correlation between contingency planning and successful exporting.
The resources of any organisation constitute its source of competitive advantage (Day and
Wensley, 1988). In export marketing these resources include: international experience
(Douglas and Craig, 1989); available resources for exporting (Navarro, et al., 2010); channel
support (Styles, Patterson, and Ahmed, 2008), and social networks (Zhou, Wu and Luo,
2007). Of interest to us in this study is the relationship between an organisation’s
commitment to resources and the expenditure of those resources to develop and adapt
products that meet the needs of one or more international markets. An organisation’s
commitment to exporting is offered as a construct that incorporates the amount of planning,
financial, and human resources that the organisation allocates to the exporting activity
(Cavusgil and Zou, 1994).
Previous research in the area of export performance suggests that an important link exists
between the product manufacturer and international intermediary(s) (for instance, an import
distributor) and the exporting organisation’s performance. For example, Styles, Patterson, and
Ahmed (2008) assert that the nature of the exporter (manufacturer)-international distributor
relationship is associated with certain characteristics of the participating organisations,
namely their stake in the relationship, their experience, and their uncertainty surrounding the
relationship. This study considers the influence that an international based distributor has on
the overall packaged food product customisation decision. Specifically, it examines the
product standardisation or customisation decisions that such an intermediary partakes in an
effort to understand why they might be influential in such a decision.
Within the vast literature on product decisions for international markets, there are essentially
two schools of thought. These include authors who support the need to customise goods on
the grounds that product customisation is crucial for international expansion and those who
claim that this need is unnecessary, time consuming, and expensive. It is this author’s belief
that the key question facing international marketing managers is not whether or not to adapt
their domestic product for international expansion. Rather, the key questions are: ‘when
should customisation occur’ and ‘how much customisation should occur’? In addition, under
what specific conditions should customisation occur? These questions support Lemak and
109
Aruthanes (1997) view that higher levels of performance in global markets depend on the
organisation’s selection of a global strategy that is appropriate for its unique set of
circumstances.
A study by Brown and Perry (1998/1999) found that organisations develop marketing
strategies based on a broader model that emphasises the need for development of strong
business relationships rather than relying solely on the four elements of the marketing mix.
The central question that Brown and Perry ask is: how are international marketing strategies
developed by Australian small and medium sized enterprises (SMEs)? The study found that
international product policy (e.g. the need to customise or market standardised products in
international markets) was important in the literature. Perhaps this finding can be attributed to
the small sample size (N = 8), the chosen research methodology (case study based research),
and/or the fact that the respondents served international niche markets.
Lages and Montgomery (2001) offer a different approach to considering export performance.
They suggest that previous literature in the area has treated export performance as a
dependent variable. They argue that the customisation of marketing strategy (and thus,
product strategy) to the internationals markets is directly affected by the organisation’s prior
performance, its commitment to exporting and two external forces, namely competition in the
industry, and the degree of market development. Further, they suggest that marketing strategy
customisation is indirectly affected by preceding export performance and the same two
external forces, through their influence on the organisation’s commitment to exporting. On a
related topic, several authors posit that product strength in terms of attribute uniqueness and
product quality are strongly related to export success (Gemunden, 2012). However, as Styles
and Ambler (1994) suggest, the relationship between product customisation and export
success is less clear.
The Role of Marketing Research in Organisational Performance
Belief in the value of information for enhancing commercial decisions through the reduction
of uncertainty has increasingly led to consensus that the growth and survival of organisations
depends on their strategies for accessing, handling, and processing relevant information
110
gathered from the marketplace (Julien and Ramangalahy, 2003). However, there have been
surprisingly few empirical studies that specifically examine the link between marketing
research and organisational performance in the international domain (Hart and Tzokas, 1999).
It has been argued that the increased uncertainty posed by extending business to an unfamiliar
market with unfamiliar environmental conditions intensifies the need for marketing research
(Douglas and Craig, 2005). Remarkably, Koh and Robincheaux (1988) found that
approximately two-thirds of exporters did not undertake any international marketing research
activities at all, or did so, on an ad hoc basis.
Whilst studies support the link between the conduct of marketing research and organisational
export success (Hooley and Lynch, 1985), there is evidence suggesting that marketing
decision makers hold a cynical view of the potential contribution to performance of investing
in marketing research (Mansfield, Wheeler and Young, 1987; Piercy 1983, 1985). Julien and
Ramagalahy (2003) argue that the use of market information and its role in organisational
performance is confounded by organisational factors that include: organisational structure
and interactions, power and politics, and senior management factors. Diamantopoulos,
Schlegelmilch and Allpress (1990) found no difference between users and non-users of
marketing research for export markets, whilst Baker and Abou-Zeid (1982) found a positive
relationship between export performance and the use of marketing research information. This
is indeed a mixed set of research findings.
A review of the literature on the relationship between export performance and marketing
research shows two distinct themes: 1) The nature and the type of marketing research carried
out by exporters; and 2) studies of factors influencing the collection of export market
information.
Cavusgil (1985) found that export marketing research tended to be less precise and more
subjective than domestic marketing research. Cavusgil (1984a) also found that the incidence
of export marketing research varied with the stage of an organisation’s position in the
internationalisation process. Cavusgil (1984b) provides us with variables that will be
examined in this study, such as how much research export decision makers do, and who
conducts that research (the organisation or external market research specialists) and who is
involved in the marketing research decision process (e.g. export intermediaries). Hart and
111
Tzokas (1999) developed a conceptual framework illustrated in Figure 3.1 incorporating a
broad array of information relevant to an organisation’s exporting activities. This framework
assists export decision makers by considering the types of variables that could be considered
in any export marketing research study (e.g. how best to collect the information, from whom
to collect the information, how best to use the collected information).
Modelling Export Performance
Scholars in the field international business have developed a number of frameworks to model
export performance. One such model is Hart and Tzokas’s (1999) model (Figure 3.1)
depicting the relationship between export performance and the need for market driven
information. Their model is founded in the belief in the value of information for enhancing
decisions by reducing uncertainty.
Figure 3.1: A conceptual framework into the relationship between export performance
and export marketing research
Export marketing research activity Export performance
SOURCE: Hart, H., and Tzokas, N. (1999). The impact of marketing research activity on SME export performance:
Evidence from the UK. Journal of Small Business Management (April), p. 66.
Information collection
vehicles
Information elements
collected
Managerial use of
information
Per centage of total
sales accounted for by
exports
Per centage of total
profits accounted for
by exports
112
Export performance literature has explored factors including: organisational size, export
marketing strategy, standardisation or customisation of goods and service, managers’
motivations to internationalise and managements’ commitment to export (Gertner, Gertner
and Guthery, 2006). Recently, the conceptualisation and operationalisation (Katsikeas,
Leonidou and Morgan, 2000) and psychometric measures (Lages and Montgomery, 2004) of
export performance have been considered in the export performance literature.
To assist export decision makers with their export performance measurement, Smith (2006)
summarises these determinants into two categories: background determinants (environmental,
organisational, and managerial) and intervening determinants (strategic and functional). It is
the intervening determinants that are of most interest in this study, as they closely relate to
the marketing mix, of which product is one element. In the next section consideration is given
to how export decision makers attempt to model export performance. The debate on
particular factors effecting export performance continues unabated. For example, despite the
persistent debate on marketing standardisation versus customisation, empirical research on
the performance outcomes of a particular strategy is limited (Katsikeas, Samiee, and
Theodosiou, 2006).
Empirical studies of organisational export performance rely on objectively determinable
factors such as business ratios, marketing activities, export incentive systems and market
situations, and on manager related conditions such as socio-demographic characteristics and,
the decision makers’ psycho-structural features (Leonidou, Katsikeas, and Samiee, 2002).
Indeed, the past 25 years have seen a considerable number of studies that deal with the
identification of variables influencing an organisation’s export success (Stottinger and
Holzmuller, 2001). Rogers, Ghauri, and Pawar (2005) linked the idea of export performance
with new product development (NPD).
If Belliveau, Griffin, and Somermeyer’s (2002) definition of a new product is accepted, then
any organisation that adapts or customises its products for an international market undergoes
a process of NPD. Belliveau, Griffin, and Somermeyer’s (2002, p. 187) defined a new
product as:
A product, either a good or service, that is new to the firm marketing it.
113
The Rogers, Ghauri, and Pawar model (illustrated in Figure 3.2) provides export decision
makers with a useful framework for measuring NPD performance for international markets.
Their model addresses the managerial processes (such as the organization’s new product
development process, their NPD performance evaluation process, and their approach to
project management of the NPD) and the organisational mechanisms through which NPD is
performed and its link to organisational performance and success.
Figure: 3.2: Factors Influencing NPD Process Evaluation
ENABLERS PROCESS OUTPUT SUCCESS
SOURCE: Rogers, H., Ghauri, P., and Pawar, K.S. (2005) Measuring international NPD projects. Journal of Business and Industrial
Marketing, Vol 20, No. 2, p. 82.
Empirical research undertaken to identify factors responsible for successful exporting (for
example, Aaby and Slater, 1989) has focused on five major groups of variables (Leonidou,
Katisikeas, and Samiee (2002);
1. Organisational – elements related to the characteristics of operations, objectives and
resources
International
resourcing
Systems and
tools
Global
integration
Commitment
Product
development
Evaluation strategy
Project
management
Project output Firm
success
114
2. Managerial – personal, experiential, attitudinal, behavioural and related to the
organisation’s decision-making processes
3. Environmental – factors shaping the task and macro environments within which
exporters operate in both domestic and international markets
4. Targeting – the identification, selection, and segmentation of international markets,
and
5. Marketing Mix Variables – the organisations export product, price, promotion, and
distribution strategies
Leonidou, Katsikeas and Samiee (2002) synthesised the above elements into a conceptual
model useful for conceptualising export decisions, illustrated and discussed below.
Figure 3.3: A Synthesis of Export Performance Models
Adapted from Leonidou, L. C., Katsikeas, C. S., and Samiee, S. (2002). Marketing strategy determinants of export performance: A meta
analysis. Journal of Business Research, (55), p. 52.
Managerial characteristics
General-objective
Specific-objective
General-subjective
Specific-subjective
Organisational Factors
Company characteristics
Operating elements
Enterprise resources
Corporate objectives
Environmental Forces
Task environment
Macro-environment
Export Targeting
Market selection
Market segmentation
Elements of Export Marketing Strategy
Product
Price
Distribution
Promotion
Export Performance
Economic
Non-economic
115
This synthesis of export performance models is important to international marketers as it not
only provides a framework to guide export marketing decisions, but it also assists such
decisions specifically within a marketing context. Finally, it links exporting to organisational
performance, defined broadly, in both economic and non-economic terms. In a similar vein,
Cooper and Kleinschmidt (1985) and Katsikeas and Morgan (1994) found that the export
strategy an organisation selects is closely related to the export performance results it
achieves. They found a negative association between export performance (sales) and an
organisation’s size. Similarly, Kirpalani and Macintosh (1980) found no significant
relationship between organisational size and export performance.
The impact of the choice of foreign country entry mode on the success of the foreign
operations is great, leading Wind and Perlmutter (1977) to identify entry modes as a ‘frontier
issue.’ Usually, organisations selecting a mode of entry into international markets face trade
off decisions, that is, a trade off between control and risk (Anderson and Gatignon, 1986; Li
and Ogonmokun, 2003). Export requires a comparatively low risk/low resource method for
entering foreign countries with a marketing program (Hassler, 2003; Brouthers and Nakos,
2004). However, exporters have relatively little control over how their products will be
represented (marketed) in the international markets (Knudsen and Madsen, 2002). Control
(the ability to influence systems, methods, and decisions), is the focus of the foreign market
entry mode literature because it is the single most important determinant of both risk and
return (Anderson and Gatignon, 1986). Further, Lu and Beamish (2001) found that entry
mode selection and small and medium enterprises (SMEs) performance are significantly
related, indicating the critical importance of making the right foreign market entry mode
choice.
In contrast to the Cooper and Kleinschmidt (1985) conceptual model discussed earlier,
Katsikeas, Leonidou, and Morgan (2000) offer export decision makers a more simplified
export performance model, illustrated below.
116
Figure 3.4: A Simplified Export Performance Model
SOURCE: Katisikeas, C.S., Leonidou, L.C., and Morgan, N.A. (2000). Firm-level export performance assessment: Review, Evaluation, and
Development. Journal of the Academy of Marketing Science, 28 (4), p. 496.
In the Katsikeas, Leonidou, and Morgan (2000) model, managerial factors refer to those
demographic, experiential, behavioural, attitudinal and other characteristics of the decision
maker within the exporting organisation who is potentially, or actually involved in the export
marketing process. Environmental factors are forces shaping both the domestic and foreign
task environment and macro environment within which marketers operate. These factors are
beyond the control of the exporting organisation (Aaby and Slater, 1989). Organisational
factors comprise demographic aspects, operating elements, resource characteristics, and the
goals and objectives of the exporting organisation (Leonidou, 1998). Targeting Factors refer
to the critical processes of identifying, selecting, and segmenting international markets.
Finally, marketing strategy factors relate to the organisation’s marketing mix (that is, their
product, price, placement and promotion activities). These assertions support Tesar’s (1975)
view that export marketing difficulties perceived by organisations vary with both market and
company characteristics.
The Katsikeas, Leonidou, and Morgan (2000) model has several benefits to the export
decision maker. First, it conforms to basic marketing theory in that it asks export decision
makers to conceptualise their marketing mix in an international context. Second, it asks
export decision makers to take a strategic focus on the export performance measurement
Environmental Factors
Organizational Factors
Managerial Factors
Targeting Factors
Marketing Strategy
117
imperative. Finally, it asks export decision makers to consider factors that are beyond their
control, yet important to the export process.
In a similar vein, Calantone and Knight (2000) developed a structural model based on a series
of case studies, and then tested the model for validity using data from a survey based study of
organisations that are active in international markets.
A model with a strong theoretical foundation is presented by Zou and Casvusgil (1996) who
present a framework where global business performance is largely determined by global
strategy and some internal organisational factors, while most internal and external factors
affect performance only indirectly through export strategy.
Most export performance studies have the limitation of focusing on a single nation (usually
the United States). This potentially may result in cultural or economic biases. Thus, findings
derived in one national setting need to be carefully scrutinised for their transferability to other
countries (Stottinger and Holzmuller, 2001). Smith and Reynolds (2002) posit that the reason
for the lack of relevant cross-national studies may be found in the extremely high demands
that such work imposes on the researchers involved. As a rule, financial expenses and
methodological problems are fundamentally more complex than in an intra-national context.
Moini (1995) suggests that export performance and success is a three stage model of export
development using ‘export success’ as the dependent variable. Moini (1995) was able to
classify organisations into one of three categories based on the following criteria:
1. The ‘partially interested’ exporting organisation shows an export to sales ratio of 10
per cent or less and a decline or no growth in the organisation’s export activity in the
past five years;
2. The ‘growing’ organisation also has an export to sales ration of less than 10 per cent,
however, this volume is higher than export volume five years ago;
3. The ‘successful’ organisation has current export sales ratio of more than 10 per cent
and has increased its export sales over the past five years.
118
The Moini (1995) model is useful in that it assists the decision maker to plan their export
expansion by giving them two quantitative measures (time to market and export sales) by
which to gauge their performance.
In an effort to reduce some of the economic and cultural biases in export performance
research, Calantone, et al., (2006) developed and empirically tested a model of the
antecedents of product customisation strategy and export performance using data collected
from 239 export managers in the United States, 205 export managers from Korea, and 143
export managers from Japan. Their model is illustrated below.
Figure 3.5: A conceptual framework for international product customisation: strategy
and export performance
Firm Factors
Industry Factor
Market Factor
SOURCE: Calantone, R. J., Kim, D., Schmidt, J. B., and Cavusgil, S. T. (2006). The influence of internal and external firm factors on
international product customisation strategy and export performance: A three country comparison. Journal of Business Research, 59, p. 177.
Export
Dependence
Openness to
Innovation
Industry
Customisation
Market
Similarity
Product
Customisation
Strategy
Export
Performance
119
The Calantone, et al., (2006) model posits that an organisation’s internal and external
characteristics influence product customisation strategy and therefore export performance.
Internal factors include organisational structure, marketing strategy, managerial experience,
and/or resource capability (Barney, 1991). External factors include such variables as the
business environment and/or industry competitiveness (Cavusgil and Zou, 1994). A particular
feature of the model is the idea that an organisation’s product customisation strategies act as a
mediator between its internal and external environments and its export performance. The
Calantone, et al, (2006) study found that product customisation strategy is positively
associated with export performance in the three countries studied. In addition, the authors
found that export dependence is an important antecedent of product customisation strategy.
Holzmuller and Kasper (1990; 1991) argue that research on export performance can no
longer ignore the aspect of organisational culture. Holzmuller and Kasper (1991) included
individual aspects of organisational culture as well as export decision-makers’ attitudes
towards formal organisational processes in their export performance determinants model
depicted below.
Figure 3.6: Determinants of Export Performance
Holzmuller, H. H., and Kasper, H. (1991). On a theory of export performance: Personal and organisational determinants of export trade
activities observed in small and medium sized firms. Management International Review, 31 (Special Issue), 45-70.
Environment
Objective Business
Characteristics
Objective Manager
Characteristics
Organisational
Culture
Subjective Manager
Characteristics
EXPORT
POTENTIAL
120
The variables included in the Holzmuller and Kasper (1991) model, as well as their
hypothesised relationships to export performance are based on past research. The importance
of the model to export decision makers centres around the notion that the product C/S
decision for international markets is influenced by internal organisational factors (that is
corporate culture) that may be beyond the export decision makers’ direct control. Not only
does this notion have implications for how product related decisions for export markets are
made, but also for how an organisation’s senior management recruit export decision makers
who are usually required to fit into an existing organisational culture.
A study undertaken by O’Cass and Julian (2003) examines the potential influences of
marketing strategy and export performance and the individual product-market level. Their
model is illustrated below.
Figure 3.7: Antecedents of Marketing Mix Strategy and Export Performance
O'Cass, A., and Julian, C. (2003). Modeling the Effects of Firm specific and Environmental Characteristics on Export Marketing
Performance. Journal of Global Marketing, 16 (3), p. 61.
The O’Cass and Julian model depicts the direct and indirect effects of both internal
organisational characteristics and external forces hypothesized to affect marketing strategy
Firm Characteristics
Channel support
Firm competencies
Firm commitment
Firm size
Product
Characteristics
Environmental
Characteristics
Macro-environment
Micro-environment
Industry
Marketplace
Marketing Mix Strategy
Degree of standardisation-
customisation
Export Marketing
Performance
Overall satisfaction
Profitability
Profits derived from
exporting
121
and marketing performance. The results of the O’Cass and Julian (2003) research indicate
that marketing mix strategy has a significant influence on export marketing performance,
defined broadly to include aspects of satisfaction, as well as financial profitability. This study
has important implications for this work. Interest in the product customisation decision and
its effect on export performance closely reflects that of the O’Cass and Julian model.
However this study is distinctive in that it is product and nation specific.
Baldauf, Cravens and Wagner (2000) proposed several predictors of export performance, this
time conceptualised to include aspects of effectiveness, intensity and sales. Their study aimed
to empirically investigate the effects of environmental factors, organisational characteristics,
and business strategies on export performance. Their model is illustrated below.
Figure 3.8: Proposed Predictors of Export Performance
Baldauf, A., Cravens, D. W., and Wagner, U. (2000). Examining Determinants of Export Performance in Small Open
Economies. Journal of World Business, 35 (1), p.63.
Bauldauf, Cravens and Wagner (2000) findings suggest that in addition to the size of the
exporting organisation, predictors of export performance include management’s motives to
Environmental Socio-cultural
Political
Organisational
Characteristics Demographics
Management motives
Business Strategies
Differentiation
Low Cost
Export Performance Export effectiveness
Export intensity
Export sales
122
internationalize, and the use of a differentiation strategy. The latter two constructs are
management decision variables, and thus relevant to this study.
Discussion on Export Performance
This survey of research and theory concerning factors influencing ‘export performance’
supports the view that no single ‘magic bullet’ is responsible for export success. It suggests a
number of factors, including managerial decision making itself, which managers are likely to
be taking into account in the C/S decision making. Again, like the research reviewed on
general organisational performance however, it illustrates a wide range of conceptualisation
and measurement possibilities regarding ‘performance’ – this time the narrower concept of
‘export performance’ – as a dependent variable.
The Role of the Intermediary in Export Performance
International marketing organisations normally service foreign markets through local,
intermediaries, such as sales agents, merchant distributors, licensees and franchisees (Benito,
Pedersen, and Petersen, 2005). By ‘externalising’ their foreign market operations,
international marketers may avoid the appearance of foreignness, the penalty costs due to
investments in under-utilised local marketing or manufacturing capacity, and the deployment
of scare resources.
Research suggests that choice of a local partner is an important variable influencing export
performance (Bello, Chelariu, and Zhang, 2003). For example, exports are an important
ingredient in the growth of small business (Andersson, Gabrielsson, and Wictor, 2004), yet
aspects relating to the choice of international intermediaries by small business exporters have
not received much research attention (Bello, Chelariu, and Zhang, 2003; Li, 2010).
Matear, Gray and Irving’s (2000) study found that foreign intermediary involvement in
formulating marketing plans generally leads to better profit for both the intermediary and the
exporting manufacturing organisation. After making the decision to export, finding a suitable
intermediary is the next critical decision (Bhargava and Choudhary, 2004). When an
123
international firm enters an foreign market, international distribution channel structure is very
important. Das and Teng (2000) note that certain resource characteristics, such as imperfect
mobility, imitability, and substitutability, promise value-creation, and thus facilitate alliance
formation. Distribution channel structures decisions are made by assessing the company’s
degree of commitment and risk (Pennings and Wansink, 2004).
As Park (2001) posits, the chief problem for many potential exporters may not be so much to
select an intermediary, but rather to be selected by an intermediary. Once an international
intermediary has been appointed, they are often difficult to change (Belenky, 2002; Lv and
Wang, 2011). Several studies, (Bello, Lohtia, and Sangtani, 2004; Luo, 2002) argue that
export decision makers may select the correct intermediary in an international market, but
establish the wrong channel structure. They posit that export decision makers have channel
structure options along a forward integration continuum.
At one extreme, the exporting organisation can provide all the marketing functions itself
through vertical integration. This is an unlikely option for smaller organisations entering an
international market for the first time. At the other extreme the exporting organisation may
perform none of the exporting tasks itself, relying instead on an intermediary to conduct the
marketing and distribution in the export market. In the middle of this continuum is a situation
where the exporting organisation performs some of the exporting functions itself, and
contracts the rest of the tasks to an intermediary.
Therein exists one of the challenges facing export decision makers. Which, if any of the
exporting activities, will the exporting organisation conduct itself, and which if any of the
activities it will outsource to the export intermediary organisation? This decision has
implications for how the export decision maker determines, develops, and implements its
export strategy in an international market. Specifically, the intermediary channel structure
decision may affect the degree to which an export product is customised (adapted) for a
particular international market, since the export channel intermediary may influence this
product related decision (Angelmar and Pras, 1984).
An intermediary can play various roles in the export product destination market (Dong and
Glaister, 2006). A local intermediary may reduce the marketing risk faced by the exporting
124
organisation, as well as the exporting organisation’s level of committed resources. Such
partnerships offer an advantage when the country risk is high and the familiarity with the host
country is low (Hill, Hwand and Kim, 1990). Further, they can assist with promotional
activities, market research, product design decisions, and product distribution (Angelmar and
Pras, 1984). Brouthers, Brouthers, and Wilkinson (1995) propose a ‘4Cs’ framework for
assessing success in the selection of international intermediaries: They posit that the
intermediary selected should offer complimentary skills, cooperative cultures, compatible
goals, and commensurate levels of risk. Thus, organisations enter such international alliances
to leverage their and their partners’ resource endowments.
Mothe and Quelin (1998) suggest that international partner alliances serve three functions:
1. to combine partners’ competencies
2. to acquire resources and information and
3. to facilitate an organisation’s customisation to its environment
It is the third of these suggestions that is most relevant within this study. Specifically, how
may a China based intermediary assist with correct customisation (if necessary) of specific
packaged food products exported to China?
The general intent of selecting an intermediary in a foreign country is to establish and
maintain a long term cooperative relationship to compete more effectively with organisations
outside the relationship (Matear, Gray, and Irving, 2000). Hitt, et al., (2000) suggest that
partner selection criteria may be grouped into task-related and partner-related criteria. While
task related criteria refers to the complementary capabilities the local partner may offer,
partner-related criteria are closer to the notion of ability to work with the local (that is,
foreign) partner. Bello and Williamson (1985) propose that the importance of channel choice
and structure in developing an international marketing strategy directly affects an exporter’s
success overseas. This strategy may affect the decision of whether or not to adapt a product
for the export market. In addition, scholars have proposed that profit expectations from
export markets are contingent upon the selection of the appropriate channel intermediary
(Cavusgil and Zou, 1994; Li, 2010; Matear, Gray, Irving, 2000). Li, et al., (2008) suggest that
cultural differences may create a barrier to the selection of international intermediaries
because goals and channel motivations differ across different cultures. Commitment to
125
maintaining an ongoing intermediary relationship affects the relative profit that an exporter
will receive (Leonidou, Katsikeas, and Samiee, 2002). Commitment is important where
products are modified for exporting and when foreign market information is considered
critical.
This study explores managerial beliefs concerning product modification in export markets.
The role that a channel intermediary in the foreign market may play in making product
customisation or customisation decisions is also explored. In line with Munro and Beamish’s
(1987) suggestion, the current study examines whether an export intermediary provides
information about an international market to the exporting organisation, or whether that
exporting organisation obtains market related information from other sources (e.g. a
marketing research consultancy). Organisations do cite insufficient foreign market knowledge
as a major exporting problem area (Ling-Yee, 2004).
Parkhe (1991, p. 581) defines international alliances (of which intermediaries in the
international market may be examples) as:
Cooperative agreements, involving cross border flows and linkages that utilise
resources and/or government structures from autonomous organisations headquartered
in two or more nations.
Research on international partner selection has inadequately dealt with selecting partners in
emerging markets (Hitt, et al., 2000). Hitt, et al., (2000) address this issue in their study of
international partner selection from both emerging and developed markets. They argue that
organisations from emerging and developed markets often differ in terms of their resources,
capabilities needed and absorptive capacities. They find that organisations from economically
developed markets try to leverage their resources through partner selection, whereas
organisations from economically emerging markets emphasized financial assets, technical
capabilities, intangible assets (such as brand equity) and willingness to share expertise in
selection of partners. Thus, to select the appropriate intermediary, export decision makers are
likely to search for complementary resources and knowledge that can be learned. The general
goal is to strengthen existing or to create new competitive advantages (Brass, et al., 2004). In
fact, Mitchell, Shaver and Yeung (1994) suggest that learning from international experience
126
is a pre-requisite to the success of entering the international market. In support of this,
Matear, Gray and Irving (2000) argue that strategic alliances that combine partners’
complementary resources may be necessary for survival and growth. Specifically, they
suggest that collaborative efforts may be an effective way to continue use of resources that
are vulnerable to knowledge-based market failure.
This study is concerned with the role that managers believe export intermediaries perform on
behalf of the exporting organisation. There is little understanding of how Chinese
organisations perceive the strategic and organisational attributes of foreign companies Luo
(2002). The underlying assumption here is that foreign organisations and local (that is,
Chinese) organisations have different selection criteria in choosing international alliance
partners. Luo (2002) suggests that Chinese organisations look for productive resources and
capabilities from foreign partners that can satisfy their strategic needs. Chinese managers thus
view international collaborations as a means by which they acquire foreign technologies and
partner knowledge to stimulate their expansion.
An established principle of strategic management is that for an organisation to compete
successfully, it must possess a special proprietary advantage (Coeurderoy and Durand, 2004).
What is less understood is the relative benefit of possessing one proprietary advantage over
another and which of an organisation’s proprietary advantages it uses in its international
markets. Do these advantages assist with intermediary recruitment and selection? Further, the
literature suggests that an organisation’s experience in exporting can affect channel selection.
For instance, Brouthers (2002) found that as multinational corporations gain experience in
international markets, they tend to opt for market entry modes providing greater control and
requiring more commitment. The present study quantifies the length of time that the
respondent organising has been in business both as a domestic entity and one operating in
export markets.
Scholars have argued that the primary proprietary advantage an exporting organisation has
that appeals to foreign intermediaries is the exporting organisation’s product and its
attributes, such as its branding (Angelmar and Pras, 1984). Therefore, the nature of the export
product is crucial to the selection of an export intermediary. Previous studies have found that
product quality is important in gaining export intermediary acceptance (Angelmar and Pras,
127
1984; Cateora and Hess, 1975). Product quality can be adapted to suit export market
conditions. The packaged food product manufacturer’s reputation is important for gaining
export intermediary acceptance (Nevins and Money, 2008), while price (Leonidou, 2004),
personal selling (Lee and Griffith, 2004), and method of export (e.g. direct compared to
indirect exporting) (Hessels and Terjesen, 2010), have also been found to be important
factors in gaining the acceptance of intermediaries overseas.
Export performance has been measured in three different ways. These three means of
measuring export performance are associated with different conceptualisations of the
construct. The most common way of conceptualising and measuring export performance
focuses on the financial outcomes of exporting (Greenaway, Guariglia, and Kneller, 2007).
Another method of conceptualising export performance is based on capturing the strategic
outcomes of exporting. The emphasis here is that organisations often have a set of strategic
objectives, as well as financial objectives in exporting (Westhead and Howorth, 2006). The
third conceptualisation of export performance advocates the use of perceptual and attitudinal
measures of performance. The logic behind this conceptualisation is that being positively
disposed toward exporting and/or satisfied with exporting operations is a strong indication of
success in exporting (Greenaway, Guariglia, and Kneller, 2007). The approach in this study is
to follow the strategic fit paradigm which suggests that performance in international markets
will only be enhanced if there is congruency between levels of product C/S, and the
environmental context in which this strategy is being executed.
Further, this study proposes that the selection of an international intermediary influences
export success in China. Channel satisfaction is thought to facilitate improved morale and
cooperation among channel members (Razzaque and Boon, 2003) and to lower channel
conflict (Webb and Hogan, 2002). This study considers factors that export decision makers
look for when selecting a China based intermediary and the role (if any) that channel
intermediaries in the export market play in the packaged food product customisation decision.
128
Conclusions
While this study acknowledges the extensive conceptual and measurement work which has
done on organisational performance and specifically in the area of export performance, this
study does not attempt to decide on the most appropriate measure(s) of corporate and export
performance, and does not attempt to directly measure these. The literature reviewed in this
chapter – whether on organisational performance in general or on export performance
specifically - illustrates the complexity of that task- one which has been chosen to place
beyond the purpose of this dissertation. The current study explores how such managerial
decisions are made. The concepts of organisational and export performance are subject to
multiple competing conceptualisations and competing measurement metrics. Like this study’s
research subjects, it is assumed that managerial decision making does impact a firm’s
performance. However measurement of that performance is not the focus of this study.
Rather this study seeks to model how such decision making occurs.
In summary, export performance measures must be aligned with the organisation’s overall
performance measures. In this chapter, a number of metrics were suggested for measuring
export performance, as were the factors influencing an organisation’s export performance. In
addition, the role intermediaries perform in the delivering export goals was also considered.
In the next chapter consideration is given to the important role that consumer ethnocentrism
and country of origin effects play on the product C/S decision for export packaged food
products.
129
Chapter 4
Consumer Ethnocentrism, Country of Origin and the
Customisation/Standardisation Decision
Introduction
The relaxation of trade policies, specifically the reduction of import tariffs under the
influence of globalisation, has provided consumers with more foreign product choices than
ever before. Chinese consumers are subject to this increased choice. China’s rapid
development of an American style consumer culture, defined by Arnould and Thompson
(2005) as “a family of theoretical perspectives that address the dynamic relationships between
consumer actions, the marketplace, and cultural meanings”, is revolutionising the lives of
hundreds of millions of Chinese (Kotler, 2010). Consequently, their attitudes towards
products originating from foreign countries are of interest to international business and
consumer behaviour researchers (Wang and Chen, 2004). Products may be linked to a
country by virtue of its location, weather, and natural resources or because of traditional
manufacturing expertise (Usunier and Cestre, 2007). In addition, products may be linked to
countries because the particular country is known for its product innovation and
development.
Previous research has have supported the idea that consumers hold stereotypes of countries
other than their own (Herz and Diamantopoulos, 2013). These stereotypes affect the way
consumers perceive products made in other countries (Liu and Johnson, 2005). Extant
research into country of origin has revealed that country stereotypes are universally held
(Cuddy, et al, 2009), whilst other scholars found that country stereotypes are used as a
heuristic to simplify product choice (Chattalas, Kramer, and Takada, 2008), although these
stereotypes could result in erroneous perceptions of foreign made products (Yoo and Donthu,
2005).
Because of globalisation, COO has now become a managerial decision variable (Brodowsky,
Tan and Meilich, 2004; Hoffman, 2000). An international marketing organisation may choose
130
to design products in one country and manufacture and assemble them in another using raw
materials or components from a variety of locations around the globe, for the purpose of
marketing those products in different countries again.
Consumers’ intentions to purchase domestic compared to foreign products are influenced by
perceived quality (Wang and Chen, 2004). In the literature, quality perception is treated as a
multi-dimensional construct including appearance, colour and design, fashion, durability,
function, reliability, texture, prestige, value for money, technical advancement, and
workmanship (Insch and McBride, 2004). The effect of visual sensations should not be
underestimated. Human perception of quality is dependent on visual image (Wang, et al.,
2004). At least at pre-trial, this is possibly true even for packaged food products.
Previous studies in this area have suggested a positive correlation between the evaluations of
domestic products and a nation’s level of economic development (Verlegh, 2007).
Consumers tend to purchase products made in a technologically advanced nation if they
judge that product’s quality as better than that of a good produced in a less developed
country. Moreover, a product’s COO often serves as a cue activating a consumer’s
ethnocentric tendency (Huddleston, Good and Stoel, 2001). As such, willingness to buy
domestic or foreign made products is influenced by both ethnocentrism and quality
judgement (Wang and Chen, 2004). These influences may of course, be contrary to each
other.
Definitions of Ethnocentrism
Sinkovics and Holzmuller (1994) define ethnocentrism [cf. Sumner (1906, p.13)] as
‘The view of things in which one’s group is the centre of everything, and others are
scaled and rated with reference to it. Each group nourishes its own pride and vanity,
boasts itself superior, exalts its own divinities, and looks with contempt on outsiders’.
Klein and Ettenson (1999, p. 6) simplify the definition as:
131
The belief among consumers that it is inappropriate, or even immoral, to purchase
foreign products because to do so is damaging to the domestic economy, costs
domestic jobs, and is unpatriotic.
Pecotich and Rosenthal (2001, p. 34) offer:
… ethnocentric consumers believe that the purchase of imported goods is wrong
because it results in damage to the domestic economy and is unpatriotic.
‘Consumer ethnocentrism’ suggests that nationalistic emotions affect attitudes about products
and purchase intentions (Usunier and Cestre, 2007). This concept assumes that if a consumer
holds feelings of ethnocentrism, he or she will believe that it is wrong to purchase foreign
goods on economic and moral grounds (Parker, Haytko, and Hermans, 2011). Highly
ethnocentric consumers are probably most prone to biased judgement by being more inclined
to adopt the positive aspects of domestic products and to discount the virtues of foreign made
products (Watson and Wright, 2000).
Whilst the definitions above are useful in understanding the possible effects of ethnocentrism,
each of the definitions is socially based, that is, based on people in a society, rather than a
view of people specifically as consumers. To this end, Shimp and Sharma (1987, p. 280)
define consumer ethnocentrism as:
The beliefs held by consumers regarding the appropriateness and morality of
purchasing foreign made products.
Implicit in the Shimp and Sharma (1987) definition is likelihood that the export managers
will investigate and consider the extent to which Chinese consumers exhibit ethnocentric
tendencies towards foreign food products when selecting foreign markets or discrete
consumer segments within those nations to enter. COO and consumer ethnocentrism is
therefore likely to figure in marketers C/S decision making.
132
The Influence of Ethnocentrism
To investigate the consequences of ethnocentrism, researchers have hypothesized that certain
variables have an effect on the relationship between ethnocentrism and attitude, and in turn,
attitude and purchase intention (Usunier and Cestre, 2007). These variables include product
necessity, product serviceability, and COO and consumer animosity. In a similar vein, Klein
and Ettenson (1999) suggest that international marketers make the distinction between
consumer ethnocentrism and consumer animosity. Conceptually, it is likely that some
consumers may find it perfectly acceptable to buy foreign products from a variety of
countries, but refuse to buy a product from a specific country toward which they feel enmity.
To that end, they distinguish between general consumer ethnocentrism, which assesses
beliefs about the purchase of foreign products generally, while animosity is thought to be
comprised of (negative) consumer attitudes toward purchase from a specific country.
Perspectives of Ethnocentrism
Scholars have used diverse approaches to understand the effects of ethnocentrism on
international marketing. Table 4.1 summarises these views.
Table 4.1 Perspectives of Ethnocentrism
Perspective Author
Cultural Moon and Jain, (2002).
Product Necessity Javagli, et al., (2005)
Conspicuous Consumption Wang and Chen, 2004; O’Cass and McEwan, 2004;
Shipman (2004).
Collectivist versus Individualist
Consumer Perspective
Javagli, et al, (2005)
Level of National Development Javagli, et al, (2005)
Strategic Marketing Approach Herche (1994)
Nationalistic Pride Ettenson (1993)
Product Cues Ahmed, et al., (2004); Huddleston, Good, and Stoel
(20010; Watson and Wright (2000)
133
More recently, a growing Chinese middle class is resulting in demand for well known locally
produced brands ahead of those manufactured overseas or carrying a foreign brand name
(Parker, Haytko, and Hermans, 2011). Further, as Ewing, et al. (2002) suggest, Chinese
brands are beginning to emerge at the expense of better known foreign brands. In turn, these
domestic brands are increasing their domestic market share. This change in thinking among
Chinese consumers towards local vis-a-vis foreign made goods provides managerial decision
makers with an important challenge to their China export marketing strategy.
Some research supports the notion of a hierarchy of foreign countries which may exist in
terms of consumer response. Developed countries such as the United States, Germany and
Japan are associated with high quality products whereas newly developing countries such as
China, Korea, and Taiwan are associated with poorer quality products (Han, 1989). The
notion of a hierarchy of foreign countries impacts on export decision makers to the extent that
consumers are influenced by the import nation’s perceived status as a producer of quality
products (Kaynak and Kara, 2002).
CETSCALE
First developed by Shimp and Sharma, CETSCALE (Consumers’ Ethnocentric Tendencies
Scale) represents an accepted means of measuring consumer ethnocentric tendencies across
cultures/nations (Kaynak and Kara, 2002). This scale is comprised of 17 items. Consumer
ethnocentrism involves the tendency of consumers to exhibit a positive or favourable
predisposition towards products originating from their own country while rejecting imported
products (Kaynak and Kara, 2002).
CETSCALE was designed to measure consumer ethnocentrism to better understand, explain
and predict consumers’ behavioural tendencies towards foreign made products compared to
domestically produced products (Hult and Keillor, 1994). So far, the CETSCALE has been
validated through applications in multiple countries, using multiple products, and was found
to possess a high degree of validity and reliability (Good and Huddlestone, 1995;
Huddlestone, Good and Stoel, 20005). Further, scholars have established uni-dimensionality,
134
factor structure invariance, and discriminant validity (Netemeyer, Durvasala and
Lichtenstein, 1991)
Country of Origin (COO)
Country of origin (COO) is one of the most studied phenomena in international marketing
(Jossiasen and Harzing, 2008; Saimee, 2010, 2011; Samiee and Lenoidou, 2011; Usunier,
2006; Usunier and Cestre 2008). Such is the importance of COO, that Felzensztein, Hibbert,
and Vong (2004) question whether COO is now the fifth element of the marketing mix. The
central premise of COO is that to compete successfully in foreign markets, export decision
makers should consider attitudes towards products made in different countries. The decision
maker is usually concerned with whether the identification of a product with a particular
COO enhances or detracts from consumer attitudes towards that product and its brand. In
addition, major global events such as the opening of communist China to trade with the rest
of the world, the formation of the European Economic Union, and the re-unification of
Germany, have contributed to the increased awareness of an interest in the effects of (COO)
as an information cue used by consumers to make product evaluations (Pecotich and Ward,
2007; Webb and Po, 2000; Zhang, 1996). In an extensive review of the COO effects, Al-
Sulaiti and Baker (1998) suggest that COO should constitute the fifth elements of an
exporting organisation’s marketing mix.
Scholarly interest in the COO effect has resulted in a diverse range of studies in this
phenomenon. For instance Paswan and Sharma (2004) argue that consumer knowledge of a
brand’s country is crucial for the transfer of the COO image to the brand image, whilst
Grunert (2005) posits that the effects of a new product’s COO on consumers’ perceptions of
its quality is important to product strategy. In addition, scholars (Laroche, et al., 2005)
suggest that through familiarity with products from different countries, consumers develop
country images that have considerable impact on their evaluation of those products. Against
this backdrop, Martin, et al., (2011) suggest that COO effects among consumer occur
naturally and automatically. Thus, consumer may be unaware of any country association they
make.
135
Defining COO
In simple terms country of origin is defined as the country with which a particular product or
service is associated (Nakra, 2006). COO effect refers to the extent to which the place of
manufacture influences product evaluations (Gurhan-Canli and Maheswaran, 2000b). In
contrast to these explanations, Lampert and Jaffe (1998) define COO as ‘the impact which
generalisations and perceptions about a country have on a person’s evaluations of the
country’s products and/or brands.’
Several authors suggest definitions of COO including ‘the positive or negative influence that
a product’s country of manufacture may have on consumers’ decision process or subsequent
behaviour.’ (Watson and Wright, 2000, cf. Elliott and Cameron, 1994), whilst Samiee (1994,
p. 2) offers a simple definition of COO. He posits that COO denotes the country with which a
firm is associated. Typically, this is the home country for a company.’
How does COO operate? Several researchers have attempted to conceptualise and model
COO. In his ‘halo model’ Han (1989) posited that consumers might use country image as an
information cue to infer the quality of a brand when consumers are not familiar with products
of the source country, while Lascu and Giese (1995) looked at retailers’ COO (rather than
product COO) as a cue for determining product quality perceptions. Conceptually,
researchers have attempted to distinguish between quality as ‘physical superiority,
excellence, conformance to requirements or level of product performance’ and perceived
quality ‘defined as the consumers’ judgement about a product’s overall excellence or
superiority’ (Zeithaml, 1988, p.3). In contrast to Han’s (1989) ‘halo model’, the ‘construct
model’ states that consumers infer product information directly from country image instead
of indirectly through product attribute ratings (Skaggs, et al., 1996). These models suggest a
useful framework for export decision makers because they provide insight into how
consumers in an export market behave towards foreign made goods. For instance, country
image may behave like a ‘halo’ when consumers are totally unfamiliar with a particular
country’s foods. As they become acquainted with that country’s products, country image may
become a ‘construct’ that summarizes consumers’ beliefs about product attributes and
directly affects their attitudes towards the product (Chryssochidis, Krystallis, and Perreras,
2007).
136
The Influence of COO on Export Marketing Strategy
Consumer attitudes towards foreign made goods are important strategic considerations in
reaching managerial decisions (Kotler and Gertner, 2002). There is ample evidence to suggest
that consumers pay significant attention to country related product information (Kim, 1995;
Bilkey and Nes, 1982; Hong and Wyer, 1990). Consumers evaluate products on the basis of
information cues available (Wang and Lamb, 1983). Research findings suggest that COO is a
multidimensional construct (Almonte, et al., 1995; Pisharodi and Parameswaran 1992;
Parameswaran and Pisharodi, 1994). Studies on COO effects should not only incorporate
product specific evaluation but also general attitudes towards a particular country (Pecotich
and Ward, 2007). Since the product itself consists of complex physical and symbolic
attributes, researchers have long studied consumer attitudes towards different aspects of
products originating from different countries (Allen, Gupta and Monnier, 2008; Kotler and
Gertner, 2002). However, as Churchill and Gilbert (1979) suggest, varying definitions and
conceptualisations of the same phenomenon is considered as one of the main problems
impairing progress in this research field. Further, the research has failed to clearly distinguish
between various conceptualisations and interactions with other cues such as brand and quality
(Pecotich and Rosenthal, 2001), or brand and COO (Pecotich and Ward, 2007). Results from
multi-cue evaluations of COO may be of interest to packaged food exporters because of the
multi-sensory impacts of food products (Almonte, et al., 1995).
Despite numerous studies of research concerning COO effects, examinations of country
image effects as they pertain to food products are limited in number and scope (Almonte, et
al., 1995). With increasing trade of food products across international borders, country
images related to health, nutrition and safety become potential variables in the decision to
customise or standardise food exports.
A great amount of research has demonstrated that COO has influence on consumers’ product
evaluations (Liu and Johnson, 2005). There have been two main streams of COO research.
One stream is trying to clarify what antecedents affect COO effects, which includes COO
determinants such as processing motivation, goals, and type of information (Gurhan-Canli
137
and Maheswaran, 2000a) or other antecedents of the COO effect (Roth and Romeo, 1992).
The other stream is dedicated to understanding how consumers use COO in product
evaluations (Bloemer, Blijs, and Kasper, 2009). In addition, the measurement of consumers’
attitudes towards foreign made or branded products has attracted considerable scholarly
interest from the perspective of C/S of goods to suit COO perceptions (Kaynak,
Kucukemiroglu, and Hyder, 2000; Liu and Johnson, 2005; Martin, et al., 2011).
Many researchers have focused their attention on the relative influence of COO information
compared to other products cues for instance, brand name, price, and store location (Tse and
Gorn, 1993; Han and Terpstra, 1988). These scholars posit that certain products are
considered more ethnic, more typical of some countries than others, and manufacturers of
these goods attempt to benefit from these linkages by referring to their national origin in the
marketing of their products (Niss, 1996). Niss (1996) provides export decision makers with a
conceptual framework for considering COO. This framework is illustrated in Figure 4.1.
Figure 4.1: Country of Origin over the Product Life Cycle
Niss, H. (1996). Country of Origin Marketing Over the Product Life Cycle. European Journal of Marketing, 30 (3), p. 9
Country Image
Cognitive Components Affective Components
COO Image
Media Product
Image Product
Buyers’ personal Experiences & Product Knowledge
138
Tse and Gorn (1993) observed that COO effects weaken as the COO construct is decomposed
into multiple facets. ‘Country of assembly’ (COA) and ‘component COO’ also affects quality
evaluations. Further, a well-known brand name can override negative COA effects and that
product experience can reduce the effects of component COO.
An experimental study conducted by Hui and Zhou (2002) found that COO information had a
direct effect on overall product evaluation and an indirect effect (through product evaluation)
on perceived product value. This in turn determined purchase intention. Hui and Zhou (2002)
addressed conceptual relationships among three variables – consumer evaluations of product
quality, perceived product value, and purchase intention in the context of COO effects. Hui
and Zhou (2002) found that purchase intention was directly affected by brand name and price
factors, but not COO.
Supporting Hui and Zhou’s (2002) view of the effects of COO of consumer product choice is
Ettenson, Wagner and Gaeth (1988). Their analysis assessed consumer decision making
before and after the introduction of a ‘Made in the USA’ campaign. Their study revealed that
the impact of COO is rather small and concludes that retailers should be cautious in using
patriotic themes in promotions since their effectiveness has yet to be proven.
A framework that matches the importance of product category dimensions with the perceived
image of the COO along with the same dimensions is offered by Roth and Romeo (1992).
They conclude that such matches can be favourable or unfavourable. They suggest
international marketers can use product-country match information to assess consumers’
purchase intentions, and assist them in managing their product’s COO. Similarly, favourable
or unfavourable experience with products or brands from a specific country may colour
evaluations of other products or brands from that country (Teas and Argawal, 2000). Finally,
as Thakor and Kohli (1996) suggest, causal inspection reveals that the ‘made in’ label is
nowhere near as salient as brand, or price, or feature information. In contrast, academic
studies allow this cue a weight equal to other cues. Despite this, brand name and price are
still found to have considerable impact on consumer perceptions (Brucks, Zeithaml, and
Naylor, 2000).
139
The fact that a product’s origin matters to consumers has significant strategic implications for
organisations engaged in both domestic and international businesses.
There is substantial empirical and conceptual evidence that COO is a multidimensional
construct. Concepts of COO are summarised in Figure 4.2.
Figure 4.2 – Constructs of Country of Origin
Concepts of COO Author
Cultural Perspective Balabanis, Mueller, and Melewar (2002);
Kaynak and Cavusgil (1983); Upadhyay
and Singh (2006)
Product Attributes and Product Quality Dzever and Quester (1999); Hong and
Wyer (1990); Huber and McCann (1982);
Lin and Sternquist (1994); Landwehr,
Wentzel, and Herrman, 2012; Thode and
Maskulka (1998); Zeithaml (1988)
Purchase Intentions Parker, Haytko, and Hermans, (2011);
Verlegh and Steenkamp (1999)
Purchase Risk Tan and Leung (1999)
Industrialised versus Non-Industrialised
countries
Bhuian (1997); Johansson and Nebenzahl,
(1986); Nguyen, Nguyen, and Barrett,
(2008)
Purchase Intent versus Actual Purchase Peterson and Jolibert (1995); Zeithaml
(1988)
Country Image D’ Astous and Ahmed (1999); Hoffman
(2000); Knight and Calantone (2000);
Mossberg and Kleppe, (2005);
Papadopoulos (1993); Papadopoulos and
Heslop (1993); Roth and Romeo (1992)
Country Destination Compton (1979); MacKay and Fesenmaier,
(1997); Mossberg and Kleppe (2005)
Conspicuous Consumption Piron (2000)
140
Brand Image Chance and French, (1972); Fournier,
(1998); Manrai, Lascu, and Manrai, (1998);
Paswan and Sharma (2004)
Foreign Market Entry Strategy Mayrhofer, (2004)
Global Sourcing Cordell, (1992); Kim, (1995); Nagashima,
(1977)
High versus Low Involvement Products Ahmed, et al., (2004)
The Age of the Consumer Schooler (1971)
Regional Differences Felzenstein, Hibbert and Vong, (2004)
A nation’s level of technological expertise Agbonifoh and Elimimian (1999)
The difference between hybrid and non-
hybrid products
Chao (1993)
Industrial versus Consumer Goods Ahmed and D’ Astous, (1995); Essoussi
and Merunka, (2007)
National Pride Bruning (1997)
Product Cues Agrawal and Kamakura, (1999); Reirson,
(1966); Srinivasan, Jain, and Sikand,
(2004); Yoo and Donthu, (2005)
Japan versus the West Papadopoulos, Heslop, and Beracs (1990)
Japan versus China Cui, 1999; Klein, Ettenson and Morris,
(1999) Maheswaran, (1994)
Japan versus the United States Gurhan-Canli and Maheswaran (2000a)
Country of Design versus Country of
Manufacture
Essoussi and Merunka, (2007)
In an effort to provide some generalisable knowledge of COO research, Peterson and Jolibert
(1995) undertook a meta-analysis of the COO effect literature to quantitatively assess the
COO effect, and found that COO effects are only somewhat generalisable from one country
to another.
Oberneff and Spangenberg (1989) developed a framework useful for analysing the various
ways in which COO influences product evaluations. Their study attempted to account for
141
much of the diversity found in COO literature using an information processing perspective
based on the Extended Fishbein model (Fishbein and Ajzen, 1975). The framework
distinguishes between cognitive, affective, and normative processing of the COO cue. This
framework is illustrated in Figure 4.3.
Figure 4.3: A Framework for Evaluating COO Influences in Product Evaluations
Mechanism Description Major Findings Cognitive COO is a cue for product
quality
COO is used as a ‘signal’ for overall product quality
and quality attributes such as reliability and durability
Affective COO has symbolic and
emotional value to
consumers
COO is an image attribute that links the product to
symbolic and emotional benefits, including social
status and national pride
Normative Consumers hold social
and personal norms
related to COO
Purchasing domestic may be regarded as a ‘right way
of conduct’, because it supports the domestic
economy. By the same token, consumers may refrain
from buying goods from countries with objectionable
activities or regimes From: Obermiller, C., and Spangenberg, E. (1989). Exploring the effects of country of origin labels: An information processing
framework. Advances in Consumer Research, 16, 454-459.
Perhaps surprisingly, in one of the few studies to examine cognitive processes that mediate
the effects of COO on product evaluations, Hong and Wyer (1989) found little evidence that
a product’s COO influenced the way the other product information was interpreted. The
ability to evaluate product information is dependent on the ability to infer personally relevant
meanings about the product information (Del Rio, Vazquez, and Inglesias, 2001). Consumers
evaluate product information based on given information as well as inferred beliefs. The
managers in this study can be expected to have an interest in knowing what information to
provide China’s consumers regarding export food products, and in what manner to present
that information so that it creates a positive image of the product.
Country of Design (COD) and Country of Assembly (COA)
Assessing the real impact of COO on purchasing behaviour is an important issue facing
international marketers. However, when asked directly about the importance of COO in their
142
purchase decisions, buyers tend to minimise its impact (Yoo and Donthu, 2005). One
explanation for this apparent inconsistency is that it is difficult for consumers to judge by
themselves how important COO is in the context of a purchase decision (Ahmed and D’
Astous 1995). Specifically, Ahmed and D’ Astous (1995) found that, although country of
design (COD) and country of assembly (COA) affect the product evaluations of both
consumer and industrial purchasers, industrial buyers tend to place more importance on COD
than their household counterparts. Similarly, Chao (1993) showed that COD and price level
significantly affect the design and overall quality perceptions of United States consumers of
colour televisions, whereas COA influences the overall product evaluations only.
To illustrate the relationship between COO and COA, Al-Sulaiti and Baker (1998) provide a
basic framework for export decision makers to use when considering these interdependent
concepts.
Distinguishing COO from COA may be important for export decision makers who may use
the distinction to emphasize or de-emphasize an aspect of the foreign product’s marketing. In
the case of food products, the ingredients may have been produced in New Zealand,
assembled and formed into a branded product in Australia, and then exported to China for
retail sale. Export decision makers can determine whether they emphasize the New Zealand
produce, the Australian manufacturing and branding, neither or both. In addition, the
packaged food export decision maker can determine the extent to which they emphasize COO
or COA elements.
In their study into country of assembly and country of design cues, Acharya and Elliott
(2001) found that country of assembly is the most important factor in evaluating of product
quality and choice. The effects of country of design, brand, and price while significant, are
secondary consumer consideration in product evaluation.
Ronen and Shenkar (1985) reviewed eight empirical studies using attitudinal data to cluster
countries. Their findings suggest that export decision makers should cluster nations according
to similarities on certain cultural dimensions. These dimensions typically measure values,
norms, and needs. These dimensions influence whether a product needs to be customised for
successful export into the (clusters of) nations, and the extent to which a product might need
143
to be customised. Alba and Hutchison (1987, p. 413) suggest that consumer product
knowledge has two components: familiarity and expertise. Familiarity is defined as: the
number of product related experiences accumulated by a consumer. Similarly, Alba and
Hutchison (1987, p. 413) define expertise as: the ability to perform product related tasks
successfully.
Familiarity has proven to facilitate the acquisition of new information as well as the use of
existing information (Money and Crotts, 2003). Money and Crotts (2003) proposed
consumers from national cultures characterized by higher levels of uncertainty avoidance use
information sources that are related to the channels. However, subjects in the high familiarity
category considered brand information only one of the attributes to generate complex brand
evaluations (Van Rompay, Pryun, and Tieke, 2009).
Much of the product customisation/standardisation literature as it relates to COO assumes
that COO can act as a cue of product quality. Exporters must determine what constitutes
product quality within their chosen international market(s). Firms in globalising
environments may be more inclined to benchmark their quality standards against those of a
wider range of competitors (Calantone and Knight, 2000).
Research on the effects of COO on consumer purchase choice has used self-reports (e.g.
‘When you buy a product, how important is it for you to know where the product was
made?’). Such self–reports are subject to various biases and inaccuracies (D’ Astous and
Ahmed, 1999). This may explain why so much empirical research to date devalues the effect
of COO on consumers’ product choice. Furthermore, while COO effects have been studied
for the three decades, research has yet to advance beyond uni-national products that involve a
single COO, that is, purely domestic and purely foreign products (Han and Terpstra, 1988). In
particular, studies have not presented direct empirical indication with respect to the effects of
international branding and sourcing strategies such as local versus international branding and
local versus foreign product sourcing product evaluations (Han and Terpstra, 1988).
Likewise, single cue studies, that is, those that focused on one sensory cue to determine
COO, produced larger COO effects than did multiple cue studies.
144
Teas and Agrawal (2000) developed a conceptual model that suggests that quality and
sacrifice perceptions mediate linkages between (a) antecedents of consumers’ quality and
sacrifice perceptions (e.g. brand, store, and price) and (b) consumers’ perceptions of value.
COO is specified as an extrinsic quality cue and as a moderator variable thus as indicated in
Figure 4.4.
Figure 4.4: The Effects of Extrinsic Product Cues
Source: Teas and Agrawal (2000), The effects of extrinsic product cues consumers’ perceptions of quality, sacrifice, and value. Journal of the Academy of Marketing Science, Volume 28, No. 2, pp. 278-290.
This study indicates that COO cue was found to have a significant effect on the perceived
quality for the two products examined (wristwatches and calculators). However, the findings
do not support the hypothesis of COO as a moderating variable.
A similar study on product cues as a decision-making factor among international consumers
was conducted by Forsythe, Kim and Petee (1999). The study was a simultaneous
examination of three product cues frequently used in the decision process for the purchase of
female apparel products in Shanghai and Seoul. It sought, firstly, to examine how Chinese
and Korea use extrinsic and intrinsic product cues in apparel evaluations and purchase
decisions. Secondly, it sought to compare the impact of selected product cues on consumers’
Brand
name
Store name
Price
Perceived
quality
Perceived
value
Perceived
sacrifice
Country
name
145
evaluations of an apparel product and their purchase intentions toward the product across the
two countries. The study resulted in the development of a conceptual model illustrated in
Figure 4.5.
Figure 4.5: A Conceptual Model for Cue Usage in Product Evaluation and Purchase
Intention
Forsythe, S., Kim, J. O., and Petee, T. (1999). Product cue usage in two Asian markets: A cross-cultural comparison. Asia Pacific Journal of
Management, 16, 275-292.
The findings of the Forsythe, Kim, and Petee (1995) reveal that design is a product attribute
that impacts on consumer evaluations and purchase intentions for both Chinese and Korean
consumers. Brand name was not a strong cue in product evaluations for consumers in either
country, although it was significant predictor of value perceptions among Chinese consumers.
The study is of importance to this research for several reasons. Firstly, design is a product
attribute that export decision makers can adapt or customise to suit the local conditions in an
international market. Secondly, there have been numerous examples where multinational
companies have adapted the brand name of one or more of their offerings to suit the
conditions of the international market. Finally, the study suggests that Chinese consumers
Physical
quality
Design
appeals
Brand
name
Price
Perceptions of
physical quality
Perceptions of
design appeals
Perceptions of
price acceptability
Perceptions of a
brand name
Perceived overall
quality
Perceived value
Purchase intention
146
may perceive foreign labelled brand names in certain product categories as superior or
inferior to the domestically produced equivalent products.
Previous research on image variables has generally involved their influence on perceived
product quality or another evaluation.
Country of Origin Effects in China’s Markets
Little COO research has focused on Chinese consumers. Zhang’s (1996) study investigated
how Chinese consumers evaluate foreign made products. Zhang’s experiment examined the
influence of culture, product type, and presentation format on the COO effect in China,
finding that COO information influences Chinese consumers’ reactions to foreign products.
Chinese consumers are particularly sensitive to COO. The results of this study support
suggestions that consumers in an emerging market such as China are likely to rely on COO
information in their product evaluation and purchasing decision making. The challenge facing
export decision makers is how best to develop an offering for China that positively influences
the Chinese consumers’ reaction to that foreign offering.
COO and Branding
The globalisation of business enterprises has reached a point where it is sometimes difficult
to determine with certainty the COO of a brand and thus consumers’ ability to evaluate it.
For instance, a brand would be positively evaluated if its attributes certify pre-existing
evaluative criteria, and negatively evaluated if the attributes fail to meet the criteria. Brands
therefore, are judged as good or bad if a positive or negative country stereotype is activated
(Liu and Johnson, 2005). Further, brands can also serve a social purpose by reflecting social
ties such as one’s family, peer group, or community (Escalas and Bettman, 2003).
Despite this reality, most previous research into COO effects primarily addressed consumers’
reactions to brands that are foreign made and foreign branded compared to those that are
domestically produced and domestically branded. Branding could perhaps be treated as a
surrogate for COO where the brand is foreign, although the detailed nature of the branding -
147
COO relationship is still open to conjecture. Pecotich and Rosenthal (2001) assert that the
brand is the most visible extrinsic cue that provides identification and continuity in the
market place, whilst Ahmed, d’Astous and Zoutien (1993) found that the brand name
explained the largest proportion of variance in product quality rating among consumers. This
it enables product developers an opportunity to differentiate themselves through brand names
(Michell, King and Reast, 2001). From a psychological standpoint, Escalas and Bettman
(2003) assert that consumers value psychological brand benefits because these benefits can
assist consumers construct their self-identity and/or present themselves to others. In this
study, the customisation or standardisation for packaged food products exported to China
may well prove to be influenced by managerial perceptions of branding and COO effects in
focal markets.
Most previous research has assessed of COO effects by providing respondents with only a
single cue, the country in which the brand is produced, despite the knowledge that consumers
evaluate products using multiple cues. To address this, Okechuku (1994) conducted conjoint
analysis to investigate the relative importance of the COO of a product to the consumers in
the United States, Canada, Germany, and Netherlands. He found that in the four countries and
for the two product categories studied, the COO effect of a product is one of the two or three
most important attributes in product evaluations. COO was as important, or more so, than the
brand name and the price. Thakor and Lavack (2003) found that COO had a greater effect
when it was believed by consumers to be a strong indicator of brand quality.
In addressing the relationship between country image and brand evaluation, Leclerc, Schmitt,
and Dube (1994) conducted three experiments that examined the notion that foreign branding
triggers cultural stereotypes and influences product perceptions and attitudes. They define
foreign branding as ‘the strategy for spelling or pronouncing a brand name in a foreign
language’, and suggest that foreign branding seems to be targeted primarily toward
influencing the brand image dimension of brand equity. Building on Aaker’s (1991),
definition of brand equity, namely, the differential effect – the added value – that brand
knowledge has on consumers’ responses to the marketing of a brand, brand equity is
considered important in an international marketing context, where branding decisions are
more complex (Onkvisit and Shaw, 1989), and where consumers’ familiarity with global
brands if often not well understood (Merillees, Getz, and O’ Brien, 2005).
148
Similar research has been conducted by Hoeffler and Keller (2002). Hoeffler and Keller
(2002) posit that brand knowledge consists of two dimensions, namely, brand awareness (that
is, brand recall and recognition) and brand image (that is, perceptions of a brand that is
reflected by a network of brand associations and consumer memory). It is the latter of these
two concepts that Leclerc, Schmitt, and Dube (1994) focus their experiments on. Taking
Keller’s interpretation of brand image one step further Biel (1993) defines brand image as
‘that cluster of attributes and associations that consumers connect with a brand name’ and
suggests that brand image is a key determinant of brand equity.
A study by Yasin, Noor and Mohamad, (2007) found that a brand’s COO image positively
influenced dimensions of brand equity and that a brand’s COO influenced brand equity either
directly or indirectly through the mediating effects of brand distinctiveness, brand loyalty and
brand awareness. In a similar vein, the contributions to brand equity that flow from
associating a brand with a global consumer culture have been previously recognised (Guo,
Hao, and Shang, 2011; Kapferer, 1992; Yasin, Noor and Mohamad, 2007). Shocker,
Srivastava and Ruekert (1994) hypothesize that building a global image gives a brand more
power and value. In addition, globally positioned brands are likely to have a special
credibility and authority (Kapferer, 1992).
Pan and Schmitt (1995) hypothesised that the way a brand name is written should be a more
important predictor of brand name attitudes in Chinese than English. Since the ideographic
nature of Chinese characters (i.e. the Chinese alphabet), Pan and Schmitt also correctly
predicted that a Chinese word is more likely than an English word to be associated with
mental imagery. Further, Schmitt and Zhang (2012) found that managerial decision makers
intuitively use linguistic sound and meaning characteristics, that is, which sounds and
meanings best fit for the Chinese translation of the English names, given that English is a
letters based phonographic language, and Chinese which is a visual, character based
language.
The implications for the current research are that exporters looking to adapt their product for
China may find the brand name chosen for that product in China influences the likelihood of
149
that product being accepted by Chinese consumers. This is particularly important given the
time, resources, and effort that organisations spend when creating brand names (Helm, 2009).
Several authors have found that a product’s brand name and image may be a proxy for COO
cues. For example, brands like Ford, Nestle, and Samsung may automatically activate origin
cues among consumer segments, even though the name of the COO does not appear in the
brand name (Harris, et al., 1994). Other authors (e.g. Erickson, Johansson and Chao, 1984)
found the effect of image variables on attitude towards a foreign made product is indirect,
apparently a secondary influence operating through personal beliefs. Hennessey, Bell and
Kwortnik (2005) on the other hand, posit that a product’s brand name has implications for
word recognition and practical implications for strategic marketing. Pan and Schmitt (1995)
support this view. Hennessey, Bell, and Kwortnik’s (2005) research is supported by another
study that showed the phonetic properties of a brand name could influence consumer
judgement (Yorkston and Menon, 2004). Of importance to this study, is whether there it is
necessary to adapt a local brand name to an international market, or whether it is better to
give an existing or new product a new brand name for one or more international export
markets.
The few marketing studies that have been conducted on brand naming suggest that a brand
name should be short, distinctive, memorable, and indicative of the product’s functions, and
pronounceable in several languages (Francis, Lam, and Walls, 2002). Furthermore, despite its
theoretical and practical importance, the issue of cross-cultural difference in brand name
perceptions, and what constitutes a good (or bad) brand name in China has been largely
ignored (Pan and Schmitt, 1995). However, as noted by Dawar and Parker (1994), few
studies have considered whether product cues are used to the same degree by consumers in
all cultures. Dawar and Parker (1994) examined consumers’ use of cues in product
evaluations in an international setting and found that brand name, price, and physical
appearance of the product were the most important cues in judging product quality among the
international consumers sampled. These findings are congruent with those of Phillips, Chang,
and Buzzell (1983) who have empirically shown that product quality has a significant impact
on an organisation’s performance. Some studies found that Chinese consumers use high
profile brand names to provide security because of their limited experience with a modern
free market system, most notably Nisbett, et al., (2001). From a marketing mix perspective,
150
Teas and Argawal (2000) found that the greater the number of product cues that consumers
were exposed to, the less they rely on the product’s price as an indicator of product quality.
Against this backdrop, the challenge facing export marketers is to understand how word
recognition theory might influence their choice of band name in one or more international
markets, and how this decision in turn might influence the brand’s packaging and marketing
communication.
Globalisation and COO
A study by Tse and Gorn (1992) was designed to assess the salience of COO in the context of
global brands. The relative impact of, and possible interaction between, COO and brand name
in consumer product evaluation has managerial implications for international product
planning and decision-making. They found COO to be a more enduring factor in consumer
product evaluation than a global brand name. They suggest that evaluations after product
experience tend to be more valid and stable in predicting consumer response because effects
of both pre-experience treatments and product experiences were captured. Perhaps, the use of
COO as a proxy or surrogate for other information suggests that prior experience or
familiarity with a particular product class or brand may influence the impact of COO on
evaluations (Teas and Argawal, 2000).
Tse and Lee (1993) followed Tse and Gorn’s (1992) two part study into the ways in which
negative country images can be removed, with a view to enhancement of managerial product
decision-making, Tse and Lee (1993) found that subjects do not seem to differ either in
psychological mechanism they use or in their confidence in evaluating a product that is ‘made
in’ a country compared to a product that has its ‘components from’ and ‘is assembled in’ the
same country. This raises a paradox. Products from low production cost countries, that often
have unfavourable country images, have been well accepted by consumers. A possible reason
for this discrepancy is that developments in the marketplace seemed to have outpaced country
image studies. Products with multiple countries of origin are increasingly common (Tse and
Lee, 1993).
151
In summary, previous research on the effects of COO on foreign made and exported products
has examined:
how country images influence beliefs about product attributes (Cordell, 1991); how
beliefs affect evaluative attributes, (Ericksen, Johnson, Chao, 1984);
how information processing influences COO cues (Hong and Wyer, 1989); how
attitudes influence product choice (Wall and Heslop, 1986);
how COO interacts with environmental and others factors such as store image and
warranty (Wang and Lamb, 1983);
how experts versus novices use COO cues differently (Maheswaran, 1994), and
how demographics such as gender and education influence consumers’ preference
(Bilkey and Nes, 1982).
Some researchers have adopted a geocentric approach to the effects of COO on international
marketing (Ettenson, 1993), whilst others have focused on specific countries (Han and
Terpstra, 1988). The hypothesized relationships are generally consistent, but researchers have
not always been able to demonstrate statistical significance (Javagli, et al., 2005). Further,
previous studies have emphasised three types of explanatory variables.
1. Image of and preference for country of manufacture (Samiee, 1994) or branding;
2. Attributes of certain products of interest (e.g. quality, reliability, durability, price,
workmanship, brand name); and
3. Individual characteristics of the actual or simulated buyers, primarily demographics,
but also certain individual-oriented psychological constructs (e.g. cognition) (Jensen
and Hansen, 2007).
From a managerial perspective, if COO were a positive cognitive or affective cue, exporters
would benefit from emphasising this attribute to potential customers. Similarly, de-
emphasising a negatively associated COO cue would also be of value to manufacturers and
exporters of goods (Obermiller and Spangenberg, 1989). Of interest to this study is the
question of role these explanatory variables have in the decision to, and the extent to which,
exporters customise or standardise the products they market to foreign countries. Specifically,
this study is interested in how these variables affect the product customisation or
standardisation decision for packaged food export products to China.
152
The research on COO has resulted in the following conclusions (Pecotich and Ward, 2007):
an overall preference for domestic made goods and services exists;
foreign countries may be ordered by consumers in terms of their overall expected
competence in producing goods and services, and
the images of countries are multidimensional
Country of Origin, Food Products, and Food Labelling
Food labelling is a prime marketing tool for domestic and international marketers. Food
labels are a key source of information for the consumer. In addition, food labels serve as a
regulatory control vehicle in respect of consumer protection and fair trading (Senarath and
Karunagoda, 2012). Thus, food labels may need to be adapted to conform to each country’s
food labelling regulations. In this section, the current study considers the relationship
between food labelling and COO.
Studies have indicated that, in general, consumers establish connotations between certain
products and their origin (Skuras and Vakrou, 2002). Food products appear to embody strong
associations with place as they have, by their very nature, a land based geographic origin
(Tedone, et al, 2007). Another study (Tregear, Kuznezof, and Moxey, 1998), making use of
focus groups, identified that although there are not such clear indications on exact linkages
between consumer perceptions and places where the food is produced, origin relates to the
delivery of quality and authenticity. In a broad context, Grunert (2005) suggests that quality
has an objective and a subjective dimension. Objective quality refers to the physical
characteristics built into the product and is typically dealt with by engineers and food
technologists. Subjective quality is the quality as perceived by consumers. The relationship
between the two is at the core of the economic importance of quality: only when producers
can translate consumer wishes into physical product characteristics. To date, there is no
definition of food product quality that is linked to the product’s country of origin. Despite the
lack of a universal operational definition, the Galvez and Resurreccion (1992) provide a
useful definition of quality food products as:
153
The acceptance of the perceived characteristics of a product by consumers who are the
regular users of the product category or those who comprise the target market.
Implicit to this definition is the implication that quality in food products can be adapted for
the market that the product is trying to serve. Food export decision makers make food quality
decisions (and hence product customisation/standardisation decisions) for their various
international markets. Food producers will supply quality food if it profitable for them or if
they are required to do so (Caswell and Mojduszka 1996). Contributions to profitability may
stem from increased product differentiation, sales, or from avoidance of costly events such as
food poisoning.
Verbeke and Ward (2006) state that labels of quality are strongly needed for food products.
This is due to the possibility that consumers know less about how food products are produced
and controlled and that there is less consensus on what is good and bad to eat. This tends to
increase consumer uncertainty in the food product. Dimara and Skuras (2005) argue that
consumers use product labels as cues for product quality. They found that informational
labelling linking product to place ranks top among a wide set of information sought on labels.
Wansink, Sonka, and Hasler (2004) argue that too much information, or information
delivered in a complex format, will not be used by consumers. Korthals (2001) argues that
labels, besides their direct shopping aid impact, play a very important third party role in the
sense that they are related to a manufacturer’s strategic choices and to the operation of
regulatory and information policies. Therein lies another challenge for export food decision
makers. How much information is required by law to ensure that a food product’s packaging
and labelling conform to a nation’s food labelling regulations? Similarly, how much
information on a product’s packaging is expected by consumers, and presented in a manner
that is not too complex, yet conforms to a nation’s laws? These product related decisions are
customisable on a product by product, nation by nation basis and must be made by export
decision makers to ensure that an export product is suitable to an international market.
A field experiment (Taylor and Bower 2004) indicated that consumers’ intentions to comply
with product instructions is enhanced when consumers are told how compliance with the
instructions will lead to the desired outcomes in terms of product consumption. Prior research
investigating methods of inspiring accurate consumer use of product instructions has largely
154
been limited to heightening the effectiveness of product warnings, rather than simple
instructions (Roosen, Lusk, and Fox, 2003). The central tenet of the Taylor and Bower (2004)
research is the consideration of methods of improving consumer product instruction
compliance when non-compliance with a product instruction does not necessarily lead to a
hazardous situation. If customers fail to use products in a manner consistent with the product
instructions (often contained on the product’s packaging), marketer efforts to provide
customers with high quality products may come to nothing. Consumers’ misuse of product
because of failure to correctly follow product instructions may induce dissatisfactory product
performance or product failure, resulting in critical and possibly expensive task of instituting
a service recovery. Further, if a consumer fails to use a product properly, the consumer may
blame the marketer (and/or manufacturer) for the product’s failure (Laufer, et al., 2005).
An implication for packaged food exporters is that not only must they consider labelling their
packaging in different languages they may have to cross cultural borders in terms of labelling
their products with culturally linked cooking and/or food preparation instructions. Failure to
provide accurate (and adequate) cooking and consumption instructions could lessen the
marketability of the product in export markets. Kotler (1997) provides export decision
makers with a practical guide to the aims of labelling. He states that food products labelling
has four functions: To identify, grade, describe and promote the product. These functions
enhance the ability to differentiate products, enlarge product attractiveness and assure the
customer of a certain level of product quality (Northen, 2000).
As shopping aids, food packaging labels add to consumers’ information base and help guide
decisions. The label becomes an instrument of consumer sovereignty (Korthals, 2001).
However, food labels’ impact on purchase decisions is also circumscribed because labels are
only one element, and not the most prominent or easy to use one, in a broader set of
consumer product information (ibid).
Previous studies found that consumers who reported using nutrition label information
consumed less dietary fat than those who reported not using information (Kim, Nayga, and
Capps, 2001). Lin and Lee (2004) make a link between food label information and dietary
behaviour. They suggest that individuals who consume a higher percentage of calories from
fat, are less likely to report searching for fat information on food labels. Satia, Galanko, and
155
Neuhouser (2005) also reported that label users had lower intake of dietary fat than non-
users. These findings are important for food exporters. Since fat is a food content and often
used to enhance the taste and flavour of food, the level of fat used in foods is determined by
the manufacturer. This in turn has potentially important export marketing implications since
taste and flavour (derived partially from fat content) may be culture, nation, or segment
specific and thus adaptable to the needs of individual markets. Further, if consumers use
labelling as dietary information cues as Lin and Lee (2004) suggest that the negative
influence of fat intake on information search has important implications for the effectiveness
of food labels on consumer dietary behaviour and health status. Individuals who have less
healthy dietary habits may tend to ignore food label information that is objectively helpful to
improve their dietary quality but is subjectively considered irrelevant, unimportant, or
undesirable given consumption behaviour.
Region of Origin
One particular strategy to distinguish products and realise added value (Van Ittersum, Candel,
and Meulenberg, 2003) is to develop regional variants of products. Together with specific
product qualities, regional image factors create unique identity for the product and in this way
bring about added value (van Ittersum, Candel and Meulenberg, 2003).
A wide variety of sources can contribute to the construction of regional images. These may
include such things as television, popular music, magazines, and newspaper articles. Burgess
(1982, p. 3) defines place images as comprising:
An individual’s beliefs, impressions, ideas and evaluations of different parts of a
country.
Of specific interest to this study is the role that export products may play in defining the
region from which they originated. Specifically, the present study is interested in consumers’
perceptions (if any) of quality products, their perceptions of links between regional imagery
and quality, and factors that influence consumer behaviour in relation to the purchase of
regional food products. A particular difficulty in the case of small to medium sized food
156
exporters is that the development of effective images involves costs that are frequently
beyond the resources of these organisations (Henchion and McIntyre, 2000).
Studies (e.g. Skuras and Dimara, 2004; Skuras and Vakrou, 2002) have recorded great value
placed by consumers on products that are associated with particular places or geographic
regions, while other studies suggest that consumers do not value the quality signal provided
by designations of origin (Bonnet and Simioni, 2001). Schooler (1971) found that products
identical in every respect, except for their COO were evaluated differently by consumers.
Territorial linkages may be particularly appropriate for regions with already strongly
developed and unique images (e.g. Hunter Valley wines from New South Wales).
Van der Lans, et al., (2001) also posit that the region of origin cue has a direct effect on
regional product preference for some consumer segments. Region of origin refers to a region
within a nation (Van Ittersum, Candel, Muelenberg, 2003). For example, the wine growing
region of the Barossa Valley, in South Australia rather than a region of the world (e.g. South
East Asia). This is an important distinction since many regions within countries are noted for
their produce (e.g. Napa Valley wines, South Gippsland cheeses, Bordeaux wines, etc.). The
French philosophy is that wine (for example) is an expression of the geographic individuality
of places and that place name and production are therefore inseparable (Henchion and
McIntyre, 2000).
Such is the importance of region of origin to international marketing, that Van Ittersum,
Candel, and Meulenberg, (2003) developed a model that states that differences in product
preferences for regional products can be explained from variations in product attribute
perception as well as variations in consumer’s attitude towards the product’s region of origin.
The underlying premise in the model is that product preference is a function of product
attribute perception. Product perception in turn is significantly influenced by the perceived
product specific regional image.
Further, previous research has emphasised three types of explanatory variables:
1. country of manufacture or branding,
2. product attributes such as price, quality, durability and reliability (Ailawadi, Neslin
and Gedenk, 2001), and
157
3. individual characteristics of the buyer such as their cognitive state or their
demographic profile (Pullman and Gross, 2004).
In addition, a summary of the COO findings suggest several guidelines when attempting to
construct a national image strategy for exported products:
The symbolic attributes that are linked to brands and national images often
form consistent patterns in which attribute validates another (Hsieh, Pan and
Setiono, 2004)
The influence of COO stereotypes on product evaluations tends to be stronger
when the target consumer is unfamiliar with the product or manufacturing
company (Hsieh, Pan and Setiono, 2004)
Consumers do not use COO in isolation. They evaluate the product and its
extrinsic and intrinsic attributes within an overall purchasing context (Hsieh,
Pan and Setiono, 2004)
Consumers from developed nations have a general preference for domestic
products. However; foreign products that are sold through prestigious retailers
may be able to alter consumers’ preferences in favour of the imported product
(Hsieh, Pan and Setiono, 2004).
Conclusions on Ethnocentrism and Country of Origin
Both COO and consumer ethnocentrism has an effect of consumer choice of foreign made
and foreign branded goods. As such, these constructs become important variables in this
study. COO and consumer ethnocentrism are influenced by the type of product under
purchase, the competitive environment, and the location/nationality of the consumer. An
organisation’s strategic performance in food export markets may well hinge on how well
they’ve understood the level of consumer ethnocentricity found in specific markets and the
extent to which this plays a role in food product choice.
Single item attitudinal responses have been used in several studies on the COO effect. In
reality, the COO effect is too complex to understand using a single item response (Srinivasan,
Jain and Sikand, 2004). Since country of origin is a multidimensional construct that includes
158
constructs such as country of assembly, and country of design, this study uses a multiple
scale item to test the effects of country of origin on the decision of whether or not to
customise a packaged food product.
In the next chapter consideration is given to the role of managerial decision making in the
context of the packaged food products for export marketing and distribution in China. The
packaged food C/S product decision is an important one, since it affects departmental,
division and/or corporate performance. The way in which managers approach this decision
and the antecedent factors involved are of particular importance to this study as this study
tries to understand the particular variables that managers consider when making such a
decision.
159
Chapter 5
MANAGERIAL DECISION MAKING
Introduction
In the previous chapters this study has explored literature which proposes a number of
possible precedents and dynamics relating to export food product
customisation/standardisation (C/S) – the Chinese economic, cultural and regulatory context,
and the potential roles of phenomena such as ethnocentrism and COO related effects in
consumer decision making. Concern in the current research is to understand and attempt to
model actual decision influences operating as managers consider product C/S decisions
regarding exports of packaged foods to China. Previous chapters have provided an evidence
based set of potential influences, factors which export decision makers are likely to take into
account.
This chapter examines the antecedents and processes of managerial decision making,
individual and in group contexts, moving toward empirical work that attempts to model
aspects of this process. The chapter also explores two additional variables in export decision
making, these being the roles of market research and the role of intermediaries on the product
C/S decision. This last factor emerged both from the literature reviewed and from the
qualitative work undertaken and reported in chapter six. The literature suggested that export
decision makers based their product C/S decision on market research (Andersen, 2006;
Cavusgil, 1995; Styles and Ambler, 1994). This research considers who undertakes such
market research and where (home country or export destination country) the research is
undertaken.
Typical complex managerial decisions regarding product C/S include:
choice of export markets - Which ones? How many? (Leonidou, et al., 2007)
packaging and labelling (Ampuero, 2007; Ampuero and Vila, 2006)
160
product line extensions (Hamilton and Chernev, 2010) and branding (Theodosou and
Leonidiou, 2003)
a huge range of product variation possibilities, which have been discussed in previous
chapters.
How managers reach strategic decisions related to the development and marketing of
products into export markets, including crucial product C/S decisions, is little understood,
while seemingly endlessly speculated upon (Smith, Collins, and Clark, 2005). As this study
has previously suggested, research has focussed on establishing normative guidance
regarding various factors which are proposed as being relevant or even important in export
marketing success. The research has been seen to be at times contradictory or inconclusive
(Bisbe and Otley, 2004). In addition, actual decision makers may or may not even be aware
of such research, although it is expected they would be aware of many of the factors
explored. They may or may not have any kind of formalised model guiding them in their
work (Krantz and Kunreuther, 2007). This study seeks to uncover a ‘model (or models) in
use’, to move beyond speculation to an understanding of the extent to which different factors
actually influence these key product decisions, whether such models are followed in any
conscious way by practitioners or not.
Managerial Decision Making: An Introduction
Strategic decision making is argued to enhance performance because it allows decision
makers to develop greater insights into their environment and become more realistic and
effective in their assessments of the environment’s potential impact on the organisation.
Some scholars (Atuahene-Gima and Li, 2004) proposed the following broad categorisation of
factors influencing strategic managerial decision making: Managers’ individual
characteristics and group dynamics; internal organisational context, and environment factors.
This section addresses theories of managerial decision-making, framed within two contexts,
those of theories on individual decision-making, and on group decision-making processes.
Decision making should be considered within a cultural context. Some or all of the export
food C/S decision makers may be in a different country from the target market. Social and
161
cultural factors, including incentive systems binding individuals to work groups, authoritarian
management systems and employment policies, and high valuation on trust, cooperation,
reciprocity, and harmony are embedded in Chinese work culture (Buchan, Croson and
Dawes, 2002). Such dynamics may be very different in the context of non-Chinese export
decision makers.
Theory on General (Individual) Decision Making Behaviour
Ward Edwards is considered by many to be the father of behavioural decision-making, his
1954 paper marking the birth of research in this area. Edwards’ underlying assumption is the
existence of a rational agent, termed ‘economic man’. Underlying this normative view of
decision-making is an assumption that decisions ought to be made on rational grounds (Cox,
2002). Non-cognitive factors such as emotions, motivations, or moral considerations should
have no impact on the decision process unless they can be justified by rational means. Since
Edwards’ (1954) work was published, descriptive theories of behavioural decision-making
have emerged. These theories place greater emphasis on the emotional elements influencing
the decisions being made.
According to Keren (1996) a ‘reasonable’ decision is one that (i) can be justified and
supported by arguments, and (ii) will supposedly be endorsed by most people after sufficient
deliberations. This raises questions concerning what types of argument would provide
adequate ‘justification’. Numerous potential sources of such justification, such as exporter
organisational factors, target market structural and cultural factors, COO, and branding
effects are suggested in previous chapters.
Decision Quality and Choice
Vroom (2000) posits that the starting point for any decision-making is the ‘quality’ of the
decision. Well-reasoned, analytically sound decisions are consistent with organisational goals
and with potentially available information about the consequences of alternative means of
achieving them. In the same vein, Dutton (1993) and Cameron, Dutton and Quinn (2003)
162
argue that the way managers categorise a decision in the early stages of the decision making
process strongly influences the organisation’s subsequent response.
Vroom (2000) also suggests that decision implementation is second in importance to sound
decision-making, as many high quality decisions have been ineffective due to ineffective
implementation. Successful implementation depends on the extent to which people involved
in the decision are committed to its success. Vroom also believes that the costs of making a
decision may influence the quality of the decision made. For instance, increasing the amount
of participation will increase the time elapsed in making the decision, increasing the number
of hours consumed by the process. International marketers may be under time pressure to
embrace market opportunities in foreign countries, especially if making a quick decision and
acting on that decision gives the international marketer a competitive advantage in the foreign
market(s). Vroom’s logic suggests that such pressure may reduce the time taken to make the
decision, but also its quality. Nevertheless, it seems unlikely that simply spending more time
and resources on a decision guarantees its quality.
Managerial decision-making is often perceived as involving a choice between alternative
options. When making decisions, managers must weigh the potential losses and gains from
the decision being made. Accordingly, Turillo, et al., (2002) investigated the ways in which
concern for ‘fairness’ to group members influences decision-making. They found that
decision makers make self-sacrificing allocations, despite the absence of short or long-term
benefits for doing so. They also found circumstances under which the desire for virtuous
fairness, (e.g. achievement of group harmony) produces decisions that are not self-sacrificial
and do reward someone whose motives seemingly include a willingness to exploit others.
Honekopp (2003) also stated that most theories seeking to describe decision-making under
uncertainty assume the attractiveness of each option is closely related to the subjectively
expected utility. Possible outcomes and their subjective probabilities are combined
multiplicatively. Honekopp asked: 1) Does ambiguity indeed enhance the prominence of
options’ outcomes; and 2) If so, is the relationship between the degree of imprecision and the
strength of outcome prominence effect linear? Honekopp concluded that ambiguity was not
only the cornerstone of his simulation; it also proved to be the force with the strongest impact
on decision-making. Specifically, Honekopp posits that the more ambiguous a decision, the
163
more opinions are required to make that help make that decision. This is clearly a concern
and a danger for the those making export product C/S decisions, Given the multitude of
factors impacting on marketing success, ‘paralysis by analysis’ is an ever present possibility.
Cost-Benefit Trade Offs
A central tenet in decision-making theory is the implicit cost-benefit trade-off, that is,
something forsaken for something gained (Chu and Spires, 2003). In selecting among
decision strategies, a manager balances a strategy’s accuracy of the decision (benefits)
against its demand for mental effort (cost of execution). The strategy that maximises the net
gain of benefits over costs is selected. Chu and Spires (2003) found evidence of individuals’
perceptions of decision strategy accuracy and effort in order to test a basic underpinning of
the cost–benefit theories, that individuals are able to assess both accuracy and effort of
decision strategies.
Chu and Spires also found that decision strategies are frequently dichotomised into
compensatory strategies (those that require the decision maker to trade off values) and non-
compensatory strategies (those that require no trade off). This assisted the decision maker to
assess the potential net gains/losses of the decision being considered. This work suggests that
product C/S decisions may be categorised into those that require a trade-off between the cost
of product customisation for additional profit, and those that do not. Since virtually all
strategic decision initiatives require some form of resource commitment, a resource
perspective should be included on the determinants of export decisions (Bourgeois, 1981;
Lages and Montgomery, 2004). This is obviously so in the product C/S decision, as
customisation costs money, but may result in competitive advantage via the generation of
differentiation.
Decision Making Outcomes and Processes
Since all decisions managers make are among options or courses of action with some degree
of outcome uncertainty or ignorance, it has been claimed that the essence of all decision-
making is estimating the likelihood of each possible outcome, determining the personal value
164
of that outcome, and choosing the course of action that maximises the subjective expected
utility (Hastie, 2001). In that regard, Svenson (1996) proposed that decision-making is a kind
of conflict resolution in which contradictory goals have to be negotiated and reconciled. In a
commercial context, this goes beyond deciding whether or not to enter a foreign market. It
involves decisions on choice of markets, the timing of the foreign market entry, and product,
the focal element of the marketing mix in this research.
Most decision-making studies focus on pre-decision information gathering and processing
patterns – not unlike the gathering and processing of marketing research. Svenson (1992)
advocates that decision-making research should also cover post-decision processes as an
important phase for understanding human decision-making, echoing the comments of Vroom
(2000) on the importance of implementation. Svenson posits that the goal of a decision
process is not just to fulfil one or several decision rules, but to create an alternative that is
sufficiently superior in comparison to its competitors. To this end, Svenson proposes the
differentiation and consolidation theory.
Conflict Resolution and the Managerial Decision – China Meets West
In light of the importance of managing conflict resolution resulting from and subsequent to
managerial decisions, it is important for exporters of product to China, how conflict is
resolved among the Chinese and more importantly between the Chinese and western decision
makers. Such understanding enhances mutual understanding and minimises the risk of
misunderstanding about the goals and purpose of the decisions being made (Bond, 1986).
Chinese culture is strongly influenced by traditional values that have endured over time and
which continue to affect the collective psychology of Chinese people (Bond and Hwang,
1986). These values influence the way the Chinese resolve conflict (Kikbride, Tang, and
Westwood, 1991). There are a number of factors that influence the way in which the Chinese
prefer to handle conflict. One such factor is a preference for compromise rather than a zero
sum game approach often favoured by western business people (Graham and Herberger,
1983). Another element of the preferred Chinese conflict resolution approach is that the
Chinese appear less assertive than their foreign counterparts (Kirkbride, Tang and Westwood,
1991). This lower assertiveness results in preferring to engage in less aggressive posturing
during negotiations and decision making. Finally, Pye (1986) posits that in their decision
165
making, the Chinese fluctuate between obstinacy and flexibility, depending on the
importance and implications of the decision make. A rudimentary and understanding on the
manner in which managerial decisions are made by Chinese business people and the
antecedent factors associated with the decision making approaches among the Chinese, is a
critical factor for foreign decision makers when dealing with the Chinese.
Differentiation and the Managerial Decision
Where the purpose of a decision process is to select one of two or more decision alternatives,
the differentiation and consolidation theory emphasizes that this is achieved in a
differentiation process that over time separates the alternatives until one alternative reaches a
‘sufficient’ degree of differentiation from other. ‘Sufficient’ differentiation (which may be
highly subjective) protects the decision maker from external and internal threats to the
preference of a chosen alternative. In conceptualising decision-making for this research
study, the alternative differentiation process proposed can be seen as analogous to the process
of product differentiation within a marketer’s overall marketing mix. Decision alternatives in
the context of this study are the various possible product variations and combinations thereof,
whether regarding flavour, packaging, labelling or other element(s), in various combinations.
Organizational Size Effects on Managerial Decision Making
Organisational size is considered to be of importance in the context of strategic decision
making (Baldauf, Cravens and Wagner, 2000; Sousa, 2004). Size has been measured as the
size of foreign operations, total company size (Ford and Gioia, 2002), and management’s
strategy motivations (Baldauf, Cravens and Wagner, 2000). However, the evidence is far
from generalisable (Papadakis, Lioukas, and Chambers, 1998). For instance, Khatri and Ng
(2000) suggest that organisational size affects the framework of organisational decision
making. Similarly, Hendry (2000) found that larger sized organisations are associated with
comprehensiveness in strategic decision making, whilst Miller (2008) linked decision
comprehensiveness to organisational performance. Decision making comprehensiveness
describes the degree to which the decision making team is exhaustive as it considers multiple
approaches, courses of action, and decision criteria in its decision making (Simons, Pelled,
166
and Smith, 1999). Despite the positive links between decision comprehensiveness and
organisational size, Hickson, et al., (1986) found no difference in strategic decision making
process that could be attributed to organisational size. The direct link between product
strategy (customisation or standardisation) and organisational size has not been previously
adequately researched (Zou and Cavusgil, 1996). Several scholars (Moen, 2000; Moen and
Servais, 2002) reported that organisational size had an impact on export performance. These
effects have been shown to be inconsistent, with contradictory findings in different studies
(Diamantopoulos and Kakkos, 2007).
The current study measures both size of foreign operations and total company size using
measures of profit, sales turnover and number of employees to determine whether there is any
correlation between organisational size and the degree to which international marketing
organisations customised or standardised packaged foods to China.
Humphrey, et al., (2004) argue that managerial priorities are fluid, and that this explains how
progress related decision-making leads people and organisations to systematically change
allocation preferences at different points in time. Their two longitudinal studies were devoted
to the examination and testing of temporal decision-making in organisations. They measured
how people and organisations systematically change their emphasis on completion of a
project, profitability and on safety in the project as a function of the stage of completion.
Specifically, they tested whether other goals (e.g. economic goals) change in importance in
response to change in the project completion goal. They found that attention to completion
increases in importance and attention to profitability decreases in importance as a project
nears completion. The implication is that goal weightings may vary as marketers make
product standardisation/customisation decisions for export markets, especially inexperienced
exporters who are making international product decisions for the first time.
Routine Managerial Decision Making
Managers appear to possess a large repertoire of decision routines. The strategy a decision
maker uses is highly contingent on task and context factors, such as the number of
alternatives available, information format, response mode, and correlations among attributes
167
(Payne, Bettman, and Johnson, 1993). Routines are behavioural solutions to reoccurring
decision problems or opportunities. Betsch, et al., (2004) examined the effects of non-
automatic routines on choice in decision making. Past behaviour has a powerful impact on
decision-making choice. For example, they demonstrate that under time pressure, decision
implementation intentions failed to guide behaviour. The implication for decisions on entry
into foreign markets is seen in the way first time exporters do not have previous experience to
draw upon. Exporters contemplating entering foreign markets that are economically or
culturally dissimilar to those that have previously been accessed do not have previous
experience to draw upon.
Time Related Factors in Managerial Decision Making
Time related factors in decision making have been of interest to scholars. For instance Payne,
Bettman, and Luce (1996) posit that decision making errors may result from deciding too
soon, or from delaying decisions too long. Delays can result in lost market opportunities or
reductions in payoffs from the most accurate decision. The study subjects were generally
adaptive to opportunity cost time pressure. However failures in customisation were identified
when choice environment properties with conflicting implications for customisation were
present simultaneously. In particular, the Payne, Bettman, and Luce (1996) study found that
under opportunity cost time pressure, subjects received a lower expected payoff when the
goal was to emphasize choice accuracy than when the goal was to emphasize savings in costs.
Payne, Bettman and Luce (1996) posit that the longer the delays in making the decision, the
lower the expected return (value) from even the most accurate decision. An implication for
export decision makers may be that if a packaged food exporter delays the introduction of a
product into a foreign market to conduct test marketing, competitors may become aware of
the test marketing, develop their own offer for the same market, and introduce their offer
before the test marketing has been completed. This matter is discussed further in the context
of group decision making below.
Research suggests three major ways in which people respond to decision problems under
time pressure:
168
1. Processing tends to be more selective under time pressure, focusing more on the
important and/or negative information (Maule, Hockey, and Bdzola, 2000)
2. Decision strategies may shift as a function of increased time pressure (Kocher and
Sutter, 2006) and
3. People accelerate their processing, that is, they spend less time processing each item
of information, under time pressure (Maule, Hockey, and Bdzola, 2000).
These findings alert export decision makers to the possible compromises associated with their
decision making process. They suggest executives need to plan decisions such as which
international markets to sell product into, or how best to customise an export product for an
international market, in such a way as to reduce the amount of time pressure.
As noted, decision makers tend to speed up the execution of their decision strategies or
switch to simpler decisions under time pressure (Lin, at al., 2008). When faced with high
levels of time constraint, decision makers tend to rely most heavily on negative information
(Greitmeyer, et al., 2006). Under time constraint, decision makers either filter information
that is used, or omit certain information from consideration altogether (Farhoomand and
Drury, 2002). Export decision makers are often charged with making timely decisions so as
to embrace a particular marketing opportunity overseas, and such opportunities are usually
time bound.
Conceptualization of Time: A China Context
In a China business context, time is a concept that takes on different dimensions than in other,
especially western, cultures. In broad business terms, there are two significant differences of
the conceptualisation of time in China, namely time to build trust and time to make
managerial decisions.
Time to Build Trust
Building trust with Chinese buyers is of vital importance to the conduct of business (Lee and
Dawes, 2005). Given that China’s markets were closed to international trade for centuries, the
Chinese have an inherent distrust of foreigner business people, and the Chinese will not
169
conduct business they distrust. “How can I do business with you, if I don’t know you” is a
common expression in China. Even though trust is an element of guanxi (Tong and Kee,
1998), time in developing trust with Chinese business (from a non-Chinese perspective) has
seen as an important construct in understanding how the Chinese conceive the effects of time
to develop trust in business building (Mavondo and Rodrigo, 2001).
Trust has its foundations in Confucian thinking, and this thinking influences the Chinese at
home and in many Asian countries. Trust is regarded as a norm in interpersonal relations, and
has been identified as one of the key foundations on which relationships in China are based
(Osland, 1990). Thorelli (1990) recognized that trust in Asian cultures often negated the need
for formalized contracts. He also acknowledged that development of trust was a time-
consuming activity many Western managers were unwilling to invest in.
The Role of Ethics in Managerial Decision Making
Another consideration is the ability of managers to make commercial decisions within an
ethical framework. This poses potential difficulties for international marketers who make
marketing decisions that are executed in foreign countries where ethical considerations and
boundaries differ from those in the home market. To assist decision makers consider ethics as
part of their decisions, Street, et al., (2001) developed the Cognitive Elaboration Model of
Ethical Decision-making. This model indicates that both ability and motivational factors are
expected to influence the manager’s level of ‘cognitive expenditure’. When group decision-
making is involved, different motivations and cognitive expenditures among group members
complicate the decision-making process, a matter addressed in the next section.
Most managerial decisions carry with them a certain degree of outcome uncertainty.
Uncertainty might stem from the fact that many product related decisions are made for a
foreign market and therefore for a foreign culture context (Abele, Bless, and Ehrhart, 2004;
Nakata and Sivakumar, 2001). When making decisions under uncertainty, a manager has to
consider both the desirability of potential outcomes and their probability (Abele, Bless and
Ehrhart (2004). There is no reason to suspect that export product customisation or
170
standardisation decisions would not often exhibit uncertainly. They will require a manager to
consider both outcome desirability and probability.
Uncertainty and the Managerial Decision
Lafferty and Higbee (1974) found differences between subjects with regard to the minimum
acceptable probability of a gambling win, as a function of whether or not real money was at
stake. Respondents to the research project who were provided with an opportunity to win
money were more conservative in their probability preferences than those who were not.
Exporting can certainly present as a ‘gamble’ (risk) that involves some expenditure of the
organisation’s financial resources. How these financial resources are expended is determined
by the level of risk-reward associated with the decision, but the Lafferty and Higbee (1974)
study suggests export managers will tend towards the ‘conservative’ decision, whatever that
may perceived to be.
Many of the empirical findings in the managerial decision-making literature were reached
with laboratory experimentation (Kuhberger, Schulte, and Perner, 2002). Basing the current
study on actual, real world decisions by practitioners makes a contribution towards
overcoming this potential weakness in the decision making literature.
Uncertainty in decision-making was also the central theme of a study undertaken by Lipshitz
and Strauss (1997), who asked: 1) How do decision makers conceptualise uncertainty? 2)
How do decision makers cope with uncertainty? 3) Are there any systematic relationships
between different conceptualisations of uncertainty and different methods of coping? The
results showed that decision makers distinguished three types of uncertainty: inadequate
understanding, incomplete information and undifferentiated alternatives. Inadequate
understanding was primarily managed by reduction of uncertainty, incomplete information
was primarily managed by assumption-based reasoning, and undifferentiated alternatives
were primarily managed by weighing pros and cons. Reducing uncertainty by collecting
additional information may be problematic in an international context where primary research
data collection is by ‘remote control’. Nevertheless the present study has found no evidence
to suggest that this framework would not apply within international product decisions.
171
Several scholars, most notably Sieck and Yates (1997) and Sieck and Arkes (2005), in
experimental studies, found that decision makers who committed their decisions to writing
felt more deeply about them, and were more likely to take ownership in the decision to ensure
that it led to a successful outcome. While export managers would be expected to routinely do
this, the finding does raise the notion of a manager championing or advocating for the
decision. This phenomenon is however beyond the scope of this study, occurring after the
focal decision(s) have been made.
The research into individual managerial decision-making poses questions such as: how do
different decision specific characteristics such as level of knowledge about consumers’
preferences or national culture, lead to different treatment of the product
customisation/standardisation decision? Does past performance play any role, as suggested
by Albaum and Tse (2001)?
Summarising then, product C/S decision making may vary in terms of:
Assumptions made by different areas of theory brought to bear e.g. re the importance
of rational or other elements in decision making
Who makes the decision (e.g. individual or group)
What product related decision(s) is/are being made
Where the decision is being made (including inside or outside of a target market)
A presence of trade-offs, including between accuracy and costliness
The overall level of uncertainly in the decision
The relative risks and rewards
Relative time pressures for decisions, which may alter the relative weightings of
different decision goals over time
The different types of uncertainty which maybe present
Subject to a repertoire of decision routines, related to the types of uncertainty.
Theory on Group Decision-Making
The literature on managerial decision-making discussed above either focuses on decision
characteristics and their influence on aspects of the decision-making process in either an
172
individual or unspecified context. In the context of product decisions for international
markets, individual decision making will often not be the way a decision is made. Export
decision makers must decide which of their products to market to international markets, to
which specific countries, and in what form (that is, standardised or customised) in terms of a
large number of characteristics, such as flavour, branding, packaging and the like. Given the
complexity of such a decision / set of decisions, and its possible effect on organisational
performance, these decisions in many organisations are reached by groups.
Organisations increasingly rely on various types of groups to make decisions that are critical
to their viability and effectiveness. How such groups’ members interact during the decision
making process is expected to have an important effect not only on the quality of their
decisions, but also on how well and how quickly those decisions are implemented (Dooley,
Fryxell, and Judge, 2000). When work groups are encouraged to think in new ways,
previously undetected patterns among market phenomena are recognised and perceived
market opportunities increase (Senge, 1990). Groups are expected to produce decisions of
higher quality with greater acceptance by their members (Vroom, 1969) while finding
resolution to the differences of opinions that occur among their members. Literature on group
decision-making in a commercial setting is extensive and varied.
As noted, most decision tasks are not discrete choice tasks. Choices and decisions made are
also likely to depend heavily on the decision maker’s background (Karlsson, 1988, cf.
Teigan, 1996). Building on Hofstede’s (1984, 1993) work on cultural dimensions, Ng and
van Dyne (2000) hypothesise that individualism and collectivism influence (a) responses to
minority influence on decisions being made; and (b) effectiveness of minority influence on
the decision maker and the decision being made. Triandis (1995, p. 81) offers a definition of
individualism as:
One who views the self as independent of others, focuses on personal goals, acts upon
beliefs and values, emphasises task outcomes.
He defines a collectivist (p. 81) as someone who:
173
Construes the self as an independent entity, adopts group goals, acts according to
social norms, and stresses good interpersonal relationships.
Individualism, Collectivism, and Cultural Differences in Group Decision
Making
Ng and van Dyne (2001) believe that individualists and collectivists will differ in their
decision-making approach. International marketers see the workforce becoming more
culturally diverse due to globalisation and changing demographics in many world markets. At
the same time organisations are acknowledging the potential benefits of divergent
perspectives for improving decision quality and enhancing competitive advantage. Further,
many international marketing decisions are made away from the home market, where the
decision makers exhibit different values, attitudes, norms, and beliefs upon which they rely to
make their decisions.
Ng and van Dyne (2001, p. 217) define a minority influence agent as:
A person who publicly advocates beliefs, attitudes and ideas that challenge the
perspective assumed by the majority.
Ng and van Dyne (2001) proposed that improvement in decision quality would be influenced
by both individual level and group level variables. They found that individuals (both targets
and agents) differ in their responses to minority influence based on their individualism and
collectivist values. Overall, Ng and van Dyne demonstrate that the individualist-collectivist
orientation of the target manager influenced their responses to the presence of a minority
influence agent, even though the minority influence agent proposed a superior alternative.
International marketers will often make decisions influenced and also executed by people
from foreign national cultures.
A study conducted by Poon, Evangelista and Albaum (2005) into the differences in the
management style of marketing in Australia and the People’s Republic of China (PRC) found
that an understanding of how cultural differences affected decision making is important to an
174
organisation’s international operation. It can be used to predict strategic moves and responses
of competitors and therefore to develop effective competitive strategies. Similarly, Tse, et al.,
(1988) compared PRC, Hong Kong and Canadian managers in terms of choice decisiveness
and risk adjustment in simulated international marketing situations. They found that
differences in decision making styles were more pronounced between Canadian managers
adopting a western orientation (individual initiative and utilitarian values), and the group
from the PRC that was influenced by the Confucian perspective of societal wellbeing and
committee submission to leaders.
Chinese people, with their collectivist values, are thought to be particularly sensitive to how
conflict is dealt with in interpersonal and team settings (Tjosvold, Law and Sun, 2006), and
indeed to avoid conflict because it disrupts relationship harmony (Leung, Koch, and Lu
2002). The performance value of ‘positive’ conflict as portrayed in management literature,
cannot be assumed to apply to a collectivist nation like China (Hofstede, 1993; Liu, Friedman
and Chi, 2005; Tjosvold, Law and Sun, 2006). A competitive approach favoured in Western
cultures may be communicating aggressiveness and disrespect in Chinese culture.
To assist the export decision maker manage cross cultural team conflict Triandis (1995) notes
that attitudes are sound predictors of team behaviour in individualist cultures while social
norms are better predictors of behaviour in collectivist cultures. Similarly, American
managers have been found to focus on the task, while Chinese managers focus on the social
and relational aspects of the conflict (Tjosvold and Sun, 2000). A comparative study
conducted by Poon, Evangelista and Albaum (2005) found that group decision making is
practiced more often by managers in China than in Australia, and that Chinese managers have
a higher degree of risk acceptance than their Australian counterparts. All this research
suggests that in risky customised/adapted product decisions, both who makes the decision,
and where it is made (geographically) may influence decisions which emerge.
Cognitive Consensus and Team in Group Decision Making
Larson and LaFasto (1989) developed an instrument to measure teamwork, based on in-depth
interviews with nationally recognised leaders from varying organisation types and industries.
175
The items are clustered into a set of factors which could be expected as characteristics of high
performing teams making export product decisions. Clear export goals, from which clear
product goals can be derived is an expectation that most team members would have of an
export decision making group and its leaders. Having a result driven structure implies that
exporting organisations would be expected to establish an organisational structure that
supports the manufacture and marketing of products internationally. If the export product
requires customisation, this may require significant changes to an organisation’s
manufacturing processes. Unified commitment and collaborative climate suggest that export
practitioners will require commitment not only from the organisation’s senior management,
but also commitment from other business units within the corporation. For instance the
marketing department may require the research and development department to assist in
appropriately customising the product for foreign markets. Clear and appropriate standards of
excellence and competent team members are crucial, as is a carefully considered composition
of the decision making group. Finally, external support and recognition and principled
leadership suggest the key roles of leadership in the export decision making team.
Groups are frequently employed to provide different types of expertise and to ensure
cognitive quality (having properly thought the issue through) and also the acceptability of
decisions within the organisation. The quality of strategic decisions by top management
influences organisational performance (Miles, et al., 1978). The cognitive quality of the
decisions reached has long been of interest to researchers for example, Mohammed and
Ringseis (2001) investigated antecedents and correlates of cognitive consensus, finding that
unanimity decision rule groups achieved more cognitive consensus than majority rule groups.
The notion of cognitive consensus is also central to a study by Mohammed and Ringseis
(2001). Further, they define cognitive consensus as the similarity among group members
regarding how key decision issues are defined and conceptualised. Therefore, cognitive
consensus assists the group in operating as a unified structure. Mohammed and Ringseis
sought an understanding of factors that facilitate groups in achieving consensus, processes
related to shared assumptions, and consequences of arriving at more of a group representation
of the issues.
The findings suggested that cognitive consensus was positively influenced by expectations
regarding decision implementation and satisfaction. Achieving greater cognitive consensus
176
may be necessary for the medium and long-term productivity of the group. There is no reason
to expect that international marketers making product related decisions would not reap these
benefits from the use of consensus based team approaches. The findings may have
implications for consideration of where (home country or foreign market) export product
decisions are made. For instance, O’Donnell and Jeong (2000) suggest that a marketing
program that emphasizes customisation to the local markets should give local (that is, host
nation) decision makers a great deal of autonomy in decision making authority. At minimum,
they should be involved through an effective team process.
Because consensus among team members facilitates the implementation of those decisions,
consensus influences organisational performance (Austin, 2003). Bantel and Jackson (1989,
p. 109) for instance, argue that ‘when solving complex, non-routine problems’ (such as those
relating to whether an organisation should export adapted or standardised packaged food
products to China), ‘groups are more effective when composed of individuals having a
variety of skills, knowledge, abilities and perspectives’ To that end, Xie, Song and
Stringfellow (2003) posit that cross functional integration of team members is a key factor in
implementing decisions for new product success.
Van Kippenberg and Schippers (2007) support the view that top management teams with
diverse capabilities made more innovative, higher quality decisions than teams with less
diverse capabilities. Does the size and resource base of an export organisation influence the
quality of the export decisions? That is, this study assumes smaller organisations that do not
have (or need) diverse management teams will make lesser quality decisions? What, if
anything, do smaller sized exporters use as a surrogate for diversity?
The effective implementation of a strategic decision requires the active cooperation of the
group members (West, 2002) and of top management (Chen, Liu, and Tjosvold, 2005). Such
active cooperation is important because strategic decisions are rarely articulated in full detail
(Love, Priem, and Lumpkin, 2002). Group members need confidence in the group’s
procedures and decisions, rather mere grudging acceptance. Group members who merely
comply with decisions may begin to distance themselves from the group during the decision
implementation phase (Verzberger, 1994).
177
Compromise and Group Decision Making
A key ingredient in in-group decision-making is the degree of compromise associated with
the decision being made. Differences have already been noted in the context of individual
decision making between decisions involving variations, rather than discrete choices. Hinsz
(1999) proposes that group decision processes related to quantities involve compromise, and
are characteristically different from the consensus processes that occur for discrete choices.
The decision process associated with group outcomes varies as a function of the context in
which the decision is made. Hinsz also demonstrated that decision processes for qualitative
responses differ from those of discrete responses. Essentially, discrete responses involve
choices, whereas quantitative responses involve judgements.
Hinsz (1999) posits that the consensus processes that have been used to describe group
decision processes with categorical responses may be inadequate or inappropriate for
predicting group decision processes of a quantitative nature – such as is often the case in
deciding degrees of customisation/standardisation. Since quantitative judgements will rarely
have more than one member favouring a single value, majority and plurality decision process
are not as likely to exist for quantities as they are for nominal decision categories.
Expertise and Familiarity
The expertise of the group members is obviously a major resource available to the group.
‘Expertise’ in a group decision-making context means to ‘demonstrable ability’. Simply put,
the expert is the group member who had the highest performance on the task during previous
performances (Bonner, Baumann and Dalal 2002). Experimentally, these researchers found
that, (1) groups gave more weight to the input of their highest performing members and (2)
groups performed at the level of the best of an equivalent number of individuals. Hence the
identification of expertise within the group is the first step in utilising that resource within the
group. However, some scholars argue that too much sharing of information can be
dysfunctional, due to information overload (Carver and Turoff, 2002). This suggests that
organisations that make group decisions for the international product strategies must locate
expertise in the group, whether this person or persons be an export manager, product research
178
and development technician, marketing manager, or simply a member of the group who
controls the resources for the international marketing activities.
Familiarity may affect group decision process under different information distribution
conditions (Gruenfeld, et al., 1996). These researchers found that groups whose members are
familiar may be more effective at pooling information and integrating alternate perspectives
than groups whose members are unfamiliar with each other. This implies that international
marketers should not just carefully consider the composition of the groups they establish to
make product decisions, but should facilitate the group to become fully acquainted.
A study conducted by Phillips (1999) focused on hierarchical decision-making teams with
‘distributed expertise’. Distributed expertise refers to the characteristic that team members
differ in the amount of knowledge and information each brings to the decision problem
(Hollenbeck, et al., 1995). In such hierarchical teams, the decision problem becomes divided
into a number of sub-problems, and each sub-problem is the responsibility of an expert within
the team.
The findings reveal that in an environment in which differentially weighting staff judgements
leads to greater decision accuracy, the provision of cumulative staff member past judgement
accuracy to leaders is related to greater weighting variability and weighting accuracy than
when this information is not available.
Group Efficacy and Managerial Decision Making
Groups are embedded within organisations and societies. Group processes are likely to be
influenced by perceptions, values, and codes of conduct that are predominant in these larger
cultural contexts (Postmes, Spears, and Cihangir, 2001). Similarly, the cultural background of
team members has been suggested as a further factor influencing group decision making
outcomes (Kirkman, Gibson, and Shapiro, 2001).
A relationship exists between group efficacy and the level of uncertainty associated with the
decision making task (Gibson, 1999). Lindsley, Brass and Thomas (1995, p. 649) define
179
group efficacy as: a group’s belief in its ability to perform effectively. Group efficacy is often
related to how much effort the group expends, and it has been found to be a determinant of
group decision making effectiveness (Dooley and Fryxell, 1999). There is evidence that task
characteristics have potential to moderate efficacy beliefs, as can the relevant knowledge that
group members possess and the degree to which members are able to combine and integrate
their knowledge (Kozlowski and Bell, 2003).
Uncertainty, Motivation and the Group Decision
Gibson (1999) found that when task uncertainty was high, team members worked
independently and collectivism was low. In contrast, when task uncertainty was low, team
members worked interdependently, and collectivism was high. Hence, export decision
makers must decide and communicate to the decision making teams the nature of the decision
being made. For instance, does the product C/S decision for packaged food targeted to China
come with high or low uncertainty? Much may depend on whether the decision maker is
making this decision for the first time in relation to China. What is the formation of the
decision making group? Are they made up of people from collectivist or individualist
cultures? Will such cultural values encourage or discourage risk taking, which could mean
either low customisation (with low investment implications) or high customisation (with
increased investment implications). Research has not provided convincing answers to these
questions.
Evidence exists however, that work teams that are highly motivated and productive are likely
to make better (more accurate) decisions, and that in general, Chinese work groups formed
through voluntary mutual selection procedures have been found to be more productive and
motivated than those teams selected by supervisors or managers (Kelly, 2008) The new
product development (NPD) team, whether temporary or permanent, based in the home or
foreign market, is the epicentre of product innovation work (Sethi, Smith and Park, 2001).
Hence, export product C/S decisions are impacted by the abilities of the group that is
responsible for conceptualisation, formulation, development, and market orientation (Carlile,
2002; Sethi, Smith and Park, 2001). The success of a new product is at least partly contingent
upon the formation of the decision team (Spanjol, et al., 2011).
180
The Role of Communication in Group Decision Making
A change in the way organisations structure themselves and their communication
technologies provides us with an alternate approach to looking at group decision-making. A
study undertaken by Hedlund, Ilgen and Hollenbeck (1998) compared face to face with
computer mediated roles of decision-making in hierarchical teams. The study was based on
their belief that decisions are increasingly made by teams that have a hierarchical structure
and whose members have different areas of expertise. More importantly, they believe that
many decisions are no longer made via strictly face to face interaction.
Hedlund, Ilgen and Hollenbeck, (1998) found that communication mode was positively
related to team uniformity and negatively correlated to hierarchical sensitivity. Specifically,
face to face teams had higher levels of uniformity, while computer moderated teams had
higher hierarchical sensitivity. A significant positive correlation between the communication
mode and decision accuracy was also found. Hierarchical structures are typically found and
preferred in nations with Confucian values and culture, such as China and Japan. Product
customisation/customisation decisions made in nations with hierarchical decision structures
may reach different conclusions than decisions made outside these nations. This may in turn
influence the quality of the product decision being made.
Face to Face versus Computer Aided Decisions
Comparisons between computer moderated and face-to-face group decision-making is also of
interest to Straus and McGrath (1994). They posit that group decision-making involved three
discrete tasks irrespective of the decision medium used. These tasks are idea generation,
judgement tasks, and intellective tasks. For idea generation tasks, the outcome is a number of
unique ideas produced (to make a decision or solve a problem). In judgement tasks, the
outcome is consensus. In intellective tasks, the goal was selection of the ‘correct’ solution
from several alternatives. The results showed few differences between computer-mediated
and face-to-face groups in the quality of the work completed but large differences in
181
productivity favouring face-to-face groups. Further, Straus and McGrath found that face to
face groups were more productive than computer moderated groups on all three tasks, but the
quality of the group’s outcome via face to face means was only better on the judgement task.
Groupthink and the Managerial Decision
Building on some of the research in group decision-making is the work of Moorhead, Neck
and West (1998) who examined the variables that will impact the occurrence of groupthink
within self-managing teams. They define groupthink (cf. Janis, 1972, p. 9) as
‘a mode of thinking that people engage in when they are deeply involved in a
cohesive in-group, when members’ strivings for unanimity override their motivation
to realistically appraise alternative courses of action… a deterioration of mental
efficiency, reality testing and moral judgement that results from in-group pressure.’
The purpose of the Moorhead, Neck, and West’s (1998) research is to demonstrate the
relationships among characteristics of self-managing teams and the antecedents of
groupthink. They argued that self-managing teams as decision-making groups are highly
susceptible to groupthink. They found that while self-managing teams possess characteristics
that are conducive to groupthink, this relationship is not predetermined. It is conceivable that
an organisation involved in international marketing may have a self-managed decision-
making team spread across two or more countries, and may comprise members from different
nations. Not only does this influence the possibility of groupthink, it influences the degree to
which the team members are interdependent. This in turn influences the type and quality of
decision being made.
Risk and Information
As noted, most international marketing decisions carry a degree of risk. When a commercial
decision carries a high degree of risk (as one assumes international product decisions do),
group leadership in the decision is important to the decision outcome. Van Knippenberg, Van
Knippenberg and Van Dijk (2000) conducted experimental studies to address the important
question of which group members are more likely to take the lead in decision-making
182
involving a large degree of risk. The results suggest that group members that hold relatively
high risk seeking positions in the organisation are more likely to take the lead in decision-
making than group members with less risk seeking positions. This is because risk seeking is
(at least in Western society) valued positively.
Schulz-Hardt, Jochims and Frey (2002) researched the extent to which information search is
biased in the direction of the alternative preferred within the group, that is, the extent to
which the group requests more information supporting their preferred alternative than
information conflicting with their preference. Their results found that heterogeneity within
group membership was more effective in preventing confirmatory information seeking bias
than was use of ‘Devil’s advocacy’ – the floating of deliberately counter views during
discussion.
Living in the information age has made information about markets, competitors, customers,
and products easier and faster to obtain for decision makers. Evidence exists that the amount
of such information made available to group decision teams before the making of group
decisions can impact the decisions made. Moon, et al., (2003) tested the assertion that
decisions made by groups whose members had given prior individual consideration to a
problem are more susceptible to decision biases, that is, having a pre-conceived idea of what
the decision outcome should be, than are groups whose members had not considered the
problem prior to meeting as a group. Ongoing decision-making is referred to as progress
decision making. Adoption decision-making is referred to in the study as resource utilisation
decision making. Moon, et al., (2003) found that groups who make decisions after each
individual group member has staked an initial position tended to continue failing projects,
whereas groups who consider project information only as a group tended to abandon the same
projects.
‘Prior consideration’ groups tended to change their risk allocation level due to performance
information, whereas groups without prior individual consideration are unaffected by
performance information when viewing risk allocation levels. Product customisation or
standardisation decisions may be incremental, that is, starting with a totally standardised
product for an international market and then gradually customizing it for segments within the
183
market. According to the Moon study, such incremental strategies are more likely to occur in
the group decision-making process when members engage in prior individual consideration.
Hollingshead (1995) posits that influences on group decision-making may include the ability
and proclivity of each individual to share their unique information in-group decision-making
discussions, the use of different decision approaches, and the means of ‘meeting’ (face to face
and computer mediated) which is brought to bear. Using an experimental research design
Hollingshead found that use of a rank order decision procedure improved decision quality for
groups that interacted face to face - but not for groups that interacted via computer.
Differences in the content of discussion can account for the improved performance of the
groups in the face-to-face rank order conditions. That is, aspects of group discussion
mediated the effects of communication technology and decision procedure. In an era where
the use of telecommunication (e.g. teleconferencing) to have business discussions and make
business decisions with foreign strategic alliance partners is widespread, perhaps the
important international marketing decisions (for example, product decisions) need to be made
in face-to-face meetings?
The Role of Gender in Group Decision Making
Another potential factor influencing export product decision making in teams is that of
gender. The role and status of women in society and in the workforce differs from one nation
to the next. LePine, et al., (2002) studied the relationship between gender composition and
group performance in a traditionally male task, under varying levels of relative importance of
the decision being made. Previous research in this area suggested that male dominated teams
are superior on tasks that favour males’ interests and abilities (Gardiner and Tiggeman,
1999).
Controversially, the Le Pine, et al., (2002) study found that male dominated teams, in some
contexts, constitute the worst gender composition. In a series of experiments, the study found
that decision accuracy was generally high for teams that were composed of all women,
composed of a female majority, or balanced in gender composition. Interestingly, teams
184
where men constituted the majority performed poorly and teams composed of all men
performed worse than any other configuration.
The LePine (2002) study is not without its limitations. For example, using a convenience
sample of undergraduate students makes it difficult to replicate the results in a
commercial/workplace setting. Secondly, the laboratory nature of the study may limit its
generalisability not only in an international context, but also in a ‘real world’ context. These
limitations notwithstanding, we know that in some nations women are excluded from
executive/decision-making roles in the workplace. How does this impact on export product
related decisions made in that nation?
Virtual Decision Making Teams
Virtual teams, in which members use technology to interact with one another across
geographic, organisational, and other boundaries, are becoming common in organisations
(Gibson and Cohen, 2003). Contrasted with face to face teams, members of virtual teams are
not constrained to one physical location and can be located throughout the world (Montoya-
Weiss, Massey and Song, 2001). These teams are conceptualised as having a more fluid
membership such that specific expertise can be added or removed as tasks change (Alge,
Wiethoff and Klein, 2003). Additionally, researchers have noted the tendency for virtual
teams to possess a shorter lifecycle as compared to face-to-face teams (Jarvenpaa and
Leidner, 1999). A proposed benefit of virtual teams is that they can bring together individuals
with the needed key success factors regardless of their location (Blackburn, Furst, and Rosen,
2003).
To date, the foundation for the majority of definitions of virtual teams centres around the idea
that virtual teams are functioning teams that rely on technology-mediated communication
while crossing several different boundaries (Lipnack and Stamps, 1999, p. 808). Martins,
Gilson, and Maynard (2004) offer the following definition of virtual teams: teams whose
members use technology to varying degrees in working across locational, temporal, and
relational boundaries to accomplish an interdependent task.
185
The locational boundary refers to any physical dispersion of team members, such as different
geographic locations or different workplaces at the same geographic location. The temporal
boundary encompasses lifestyle and synchronicity, whilst relational boundary refers to the
differences in relational networks of virtual team members, that is, their affiliations with
other teams, departments, organisations, and cultural sub-groups.
A key aspect of the Martins, Gilson and Maynard (2004) definition focuses on ‘teamness’ in
conjunction with ‘virtualness’ and moves away from simply describing input factors. As
exporters increase the number of international markets they access, virtual teams may assist
the export decision maker to improve the quality of the decisions they make by drawing on
knowledge and experience from team members located in the nations in which the export
products are manufactured, and the nations in which they are sold.
On the basis of this brief overview of the notion of virtual teams, it is expected that many of
the product decisions which are important to this study will be made within contexts which
are virtual.
Summary
In summary, aspects of group based decision making theory suggest the following is likely to
apply to this focal product C/S decisions at these relates to package food exports to China:
While decision makers intuitively know the decision making variables in the export
product C/S decision, these decision variables have yet to be empirically modelled.
Early decision making theory was based on normative grounds and was rationally
based. Later descriptive theories on behavioural decision making emerged.
Managerial decision-making is often considered in the literature as a trade-off
between perceived benefits and potential (or actual) cost. Hence, the greater the
perceived benefit and cost, the greater the likelihood of multiple decision makers.
Greater amounts of information are sought in aiding the managerial decision as the
perceived risk in the decision increases.
186
There are mixed findings in the literature on organisational size as a factor in decision
making.
Managerial decision-making was found in the literature to be influenced by:
o Outcome (un)certainty
o Ethical considerations (which in an export context are culture specific)
o Time (constraints)
Group decision-making is culture specific, i.e. collectivist decision-making teams
make managerial decisions (i.e. reach consensus) in a manner that differs from
individualistic cultures.
The degree of consensus among decision group members influences the outcome of
the decision. Similarly, the degree of compromise within the decision making group
influences the decision making outcome.
Gender composition of group decision-making teams may influence the decision
outcome.
The use of various communication technologies influences the decision outcome.
Managerial Decision Making and New Product Development
The high failure rate of new products has resulted in decisions related to the
conceptualisation, design, development, and marketing of new products posing a significant
organisational challenge (Yahaya and Abu-Bakar, 2007). The failure rates of new products
vary from 33 per cent to 60 per cent (Cooper, 2005) and even up to 90 per cent
(Balanchandra and Friar, 1997). Such risk creates uncertainty in the new product
development process. Managerial decision makers may be less willing to commit research
and development funds to product ideas that may never reach the commercialisation (launch)
stage, and if they do, there is a relatively high risk of failure (Martin and Scott, 2000).
Considering the level of organisational resource commitment required to develop new
products and new product failure rates especially in export markets (Lages and Montgomery,
2004), it is imperative that managerial decision making for new product development be
given additional attention and frameworks be developed to assist in such decision making.
187
Specifically, the factors affecting the decision to commit to full scale product development
for export markets are of interest in this study.
Traditional Product Development Decision Making
Traditional product decision making focused on stage-gate models (Krishnan and Ulrich,
2001; Steffens, Martinsuo, and Artto, 2007). These product development decisions focus on
various criteria associated with new product development projects, such as project selection
and start decisions (Bhattacharya, Krishnan, and Mahajan, 2003), product launch decisions
(Calantone, Di Benedetto, and Song, 2011; Gultinan, 1999) and product termination
decisions (Calantone, Garcia, and Droge, 2003; Schmidt, Montoya-Weiss, and Massey,
2001). These studies identify criteria to address different product development issues such as
organisational performance factors, technology potential, long term market based
opportunities and resource allocation (Steffens, Matinsuo, and Artto, 2007).
Knowledge Based Decision Systems for New Product Development
Since the invention of computers, managerial decision makers have relied on knowledge
based systems to assist them with their new product development decisions (Marin and Scott,
2000). Typically, this involves the use of artificial intelligence in decision making processes.
Knowledge based systems incorporate a database of expert knowledge, often gained through
market based research, and are designed to facilitate its retrieval in response to specific
queries.
Given the importance of making accurate new product managerial decisions, research on
such decisions has attracted much scholarly interest. For instance, Wilkinson (1991)
suggested a three stage system for new product evaluation. The first stage relates to normal or
probable time of completion. This notion is linked to the marketing idea of a having a new
product ready for timely entry into a chosen export product market. Second, corporate
urgency to have the project completed relates to having initial and ongoing corporate
commitment to the new product develop. Finally, Wilkinson (1991) suggests the ongoing
188
need for technological innovation (such as knowledge based decision systems) to assist with
the managerial decision making.
In contrast to Wilkinson’s (1991) approach, Balachandra (2000) proposes an inductive
approach to new product decision making. This requires collecting a set of market based
example cases, with a view of adopting similar case situations when developing an
organisation’s own specific product. Finally, Ram and Ram, (1988, 1989) developed a
product screening approach called INNOVATOR which recommends a ‘go/re-evaluate/no
go’ decision based on market based inputs selected by the managerial decision maker.
The Role of Strategic Alliances in the New Product Development Decision
Research in managerial decision making related to new product development highlights the
need for decision makers to develop alliances with important stakeholders when making new
product development decisions (Gerwin and Ferris, 2004). Specifically, research has focused
on the role each strategic alliance partner plays in the new product development decision
(Doz and Hamel, 1998) and how alliances organise themselves for the purpose of making
new product development decisions (Rothaermel and Deeds, 2004). For example, Doz and
Hamel (1998) suggest that a new product development alliance is either contractual or
institutional. A contractual alliance involves a non-equity relationship among otherwise
independent alliance members, whereas an institutional alliance involves an operating entity
such as a joint venture. From an export marketing viewpoint, such alliances may be located in
different countries. The key benefit of an alliance approach to decision making affecting new
product development is that alliance partners can learn from each other as opposed to simply
gaining decision making skills (Doz, 1996).
Contribution of Marketing Research to the Export Product C/S Decision
Belief in the value of information for enhancing commercial decisions by reducing
uncertainty has increasingly led to growing consensus that the health of organisations
depends substantially on their strategies for accessing, handing, and processing relevant
189
information gathered from the marketplace (Hart and Tzokas, 1999; Julian and Ramagalahy,
2003).
Despite the argument that marketing research is central to business success in both domestic
and international markets, there have been surprisingly few empirical studies that specifically
examine the link between marketing research and organisational performance in the
international domain (Hart and Tzokas, 1999). However, it has been argued that the increased
uncertainty posed by marketing into a less or un-familiar market intensifies the need for
marketing research (Douglas and Craig, 1983).
Whilst studies support the link between the conduct of marketing research and organisational
export success (e.g. Hooley and Lynch, 1985), there is evidence suggesting that marketing
decision makers at least in the past held a cynical view of the potential contribution to
performance of investing in marketing research (Francis and Collins-Dodd, 2007; Mansfield,
Wheeler and Young, 1987; Piercy 1983, 1985). Julien and Ramagalahy (1993) argued that
the use of market information and its role in organisational performance is confounded by
organisational factors. Diamantopoulos, Schlegelmilch and Allpress (1990) found no
difference between users and non-users of marketing research for export markets, whilst
Toften and Olsen (2003) found a positive relationship between export performance and the
use of marketing research information.
A review of the sparse literature on the specific relationship between marketing research and
product decision making suggests the emergence of two themes: 1) The nature and the type
of marketing research carried out by exporters; and 2) studies of factors influencing the
collection of export market information. The incidence of export marketing research also
varied with the stage of an organisation’s position in the internationalisation process
(Andersen and Buvik, 2002).
The selection of appropriate research strategies in international marketing research is usually
determined by the level of existing information and knowledge in the field (Churchill, 1995).
As businesses expand further in international markets, the role of timely and accurate
marketing research to guide decision making becomes increasingly critical (Craig and
Douglas, 2001). As a result, there is a growing need for international marketers to conduct
190
research spanning country boundaries, to identify regional or global market segments, or to
examine opportunities for integrating and better coordinating strategies across national
boundaries.
Summary
This chapter has examined research evidence concerning how managerial decision making
relevant to this focal product decisions, both individual and group based, occurs. The focus of
the current study is a particular area of managerial decision making. This study has attempted
to delineate factors in both individual and group decision making which seem likely to impact
export product C/S decisions. Further, it has examined literature concerning two issues which
emerged during the qualitative work with exporters, as reported in chapter 5: the possible
roles of market research, and of intermediaries/local partners in product C/S decision making.
As stated at the outset, managerial product C/S decisions are complex and dynamic. Given
the cost of developing new products and the relatively high risk of new product failure in
export markets, group decision making is the norm in the product C/S decision. Product C/S
decision makers may all be in the same country, or they may be in different countries (e.g.
some in the home country and some in one or more of the export markets). The literature
suggests that the use of groups in the product C/S decision is preferred, essentially because
each of the decision group members brings their own expertise to the decision, thus reducing
the risk of product failure.
In chapter six, a conceptual framework embracing the findings of the review of the literature
concerning the Chinese marketing context (chapter two), the phenomena of COO effects and
ethnocentrism (in chapter three), and the likely impact for both individual and group
cognitive and social processes in commercial decision making is proposed. Specific
hypotheses are also derived for testing.
191
Chapter 6
QUALITATIVE STUDY AND CONCEPTUALISATION
Introduction
In previous chapters discussion of evidence for a range of factors proposed for managerial
consideration in C/S decision making, concerning packaged food products targeting the
emerging Chinese mega market(s) was considered. This study also considered the nature of
managerial decision making, possible contextual variations, and additional factors which may
be influential on how product C/S decisions occur. In this chapter, an integration of all the
previous conceptualisations are modelled for empirical testing. In so doing, managers will be
empowered to better understand how they currently do, or may in future choose to do, their
jobs, taking into account the peer based benchmark which the model provides. Testing of this
decision influence model is also a prerequisite for subsequent research linking decision
making antecedents with consequent export performance assessments.
First, this study reports on the conduct and findings of a substantial qualitative study, the
objective of which was to ‘reality test’ the literature based conclusions reported in chapters
two, three, four, and five on various possible influences on the focal managerial decision
making process. All data collected was in accordance with the ethics standards of Swinburne
University of Technology for which appropriate approval was sought and granted. The ethics
approval is listed in the appendix of this thesis. The task at the conclusion of this chapter will
be to further distil the constructs and dynamics suggested by both the literature and the
qualitative work into an integrated conceptual model, and to deduce a set of hypotheses for
testing.
Export Food Product Customisation/Standardisation Decision Making: A
Qualitative Study
This section reports the conduct and findings of an interview based study conducted early in
the research to test the face validity of a set of literature derived influences on export food
192
product C/S decision making. The study was undertaken with Australian export managers
who targeted China as an export market.
Qualitative research involves the use of unstructured or semi-structured exploratory
techniques such as group discussions and in-depth interviews (Sinkovics, Penz, and Ghauri,
2005; Witz et al., 2001). A qualitative study usually aims to explore a central research
question rather than prove or disprove a preconceived idea (Broom, 2005). The interview
based study sought to establish an in-depth understanding of the experiences of the
respondents in their handling of a recent product C/S decision regarding packaged food
export to China.
While each of these are relevant, the qualitative phase of the research was structured
specifically to gain insights into the context, actions, and processes that non China based
export decision makers experience when making product customisation or standardisation
decisions, as only Australian exporters were interviewed in the study. The purpose of the
qualitative study was to attempt a validation of the relevance of each of the independent
variables in the model. The end result is specification of a proposed model of influences
within managerial product C/S decision making, for subsequent empirical testing.
Design and Methodology
Qualitative research methods usually involve the systematic collection, organisation and
interpretation of textual material derived from interview or observation, in this case, from
interview (Malterud, 2001). Interviewing is one of the most common methods for collecting
data in qualitative research (Byrne, 2001). Minichello, et al., (1990, p. 19) defines in-depth
interviews as:
… face to face encounters between the researcher and informants directed toward
understanding informants’ perspectives on their lives, experiences, or situations as
expressed in their own words.
193
The ‘key informant’ technique was used. This is a method for collecting information on
organisations and their behaviour (Marshall, 1996). Informants are chosen on the basis of
particular specialised knowledge and/or position in an organisation (Bagozzi, Yi, and
Phillips, 1991). The respondents consisted of export marketing executives or managing
directors of Australian based food and beverage exporters, recruited from a database
purchased from list broker Dunn and Bradstreet. Respondents’ titles ranged from ‘managing
director’ to ‘export manager’. However, each was a key decision maker concerning the extent
to which the food product(s) of their respective organisation would be customised or
standardised. Grbich (1999) discusses the substantial complexities associated with gaining
access to people in elite positions, such as senior export managers. This study conformed to
the Murphy, Cockburn, and Murphy (1992) approach to overcoming these problems by
sending individual letters, followed by telephone calls to prompt and confirm participation.
‘Purposive’ sampling was used in this study. This offered researchers a degree of control,
rather than being at the mercy of any selection bias inherent in pre-existing groups (Barbour,
1999). The selection of respondents is made by human choice rather than at random.
Purposive sampling of this type is neither random, nor on a convenience basis.
In accordance with an approach developed by Byrne (2001), the interviews incorporated
three stages. The words of an interview constitute raw data, somewhat like the numbers
resulting from a test, and must be interpreted.
Interview transcripts were coded such that the respondents could not be identified. Each
interview was then transcribed verbatim. Using Griffee’s (2005) approach, themes were
identified by a short word or phrase. These words or phrases were then matched against
similar words or phrases used across all interviews.
The process of analysing ‘as you go’ (i.e. following each interview) invariably shapes the
ongoing data collection. This is actually a crucial element of the production of high quality
qualitative data (Ezzy, 2002). This approach, known as sequential analysis, involves analysis
of data as it is collected, and allows the researcher to go back and refine questions, and
pursue emerging avenues of inquiry in further depth (Broom, 2005). In this regard, Fielding’s
(1993, p. 163) four-step approach to ethnographic data analysis was adopted. This is not to
194
suggest that this study conforms to true full ethnographic method. The approach is illustrated
here:
Field notes Search for categories Dissect the Construct questions
Transcripts and patterns (themes) data (re-sequence)
Qualitative Study: Findings
This study reviews the profile of respondents and their organisations, before considering
support for each of the variables suggested in the literature in turn. Regarding the
respondents, they clearly are experienced, active export managers. Their organisations vary in
the level and longevity of export involvement. Profiles of the 14 respondents and their level
of export experience, defined by Cavusgil and Zou (1994) as ‘the number of export markets
in which the exporting organisation has regular exporting activities’, are summarized in Table
6.1 whilst the respondents’ organisational size is summarised in Table 6.2.
195
Table 6.1: Qualitative Study: The Respondents and Their Export Experience
Title No. of years
in current
position
No. of years
company has
been exporting
(all markets)
Food product
Category
Export to
China?
Respondent 1 Export sales
manager
5 11 Condiments Yes
Respondent 2 Export manager 3 15 Snacks &
beverages
Yes
Respondent 3 International
marketing manager
11 12+ Snacks Yes
Respondent 4 Sales Manager 7 12 Confectionary Yes
Respondent 5 Export Manager 2 20 Snack Yes
Respondent 6 International Sales
Manager
2.5 17 Beverages Yes
Respondent 7 Owner 6 15 Additives Yes
Respondent 8 Owner 3 14 Beverages Yes
Respondent 9 Owner 3.5 10 approx Condiments Yes
Respondent 10 Sales Manager 4 12 Additives Yes
Respondent 11 Owner 5 6 Condiments and
Snacks
Yes
Respondent 12 Sales Director 5 8 Confectionary Yes
196
Table 6.2: Qualitative Study: The Respondents and Their Organisations
Respondent (R) Product Type Company Size Gender
A Confectionary & beverages Large*** Male
B Biscuits and snack foods Small* Female
C Food additives Large Male
D Condiments Large Male
E Condiments and food additives Medium** Male
F Snack foods Large Female
G Fruit juices Large Male
H Jams and conserves Small Male
I Dairy products Large Male
J Chocolates and general sweets Medium Male
K
L
Snack foods
Condiments
Small
Medium
Male
Male * - organisations with a sales turnover of less than $ AUD9.99 million
** - organisations with a sales turnover of between AUD $10 million and $49.99 million
*** - organisations with a sales turnover of more than $AUD 50 million
Of the independent variables explored, cultural differences between the exporter’s nation and
the export destination appeared to be the most significant to respondents. All respondents
reported that an understanding of the cultural differences of the export destination were
critical to the success of the export venture. Specifically, an understanding of foreign
consumers’ diets, consumption patterns, and differences in their pallet were found to be of the
greatest significance. For example, one respondent mentioned the term bitter in terms of
customising products for the Japanese and Chinese palate. Another respondent mentioned
added sweetness for the same foreign markets, while a further respondent mentioned the
addition of citrus to exemplify how food products were customised for Asian palettes:
I think particularly in Asia, people have been using botanicals for thousands of years
and are very aware of the different properties of different botanicals. (R A)
It is very minor flavour changes and it is really down to when you go to Singapore
and they say that it’s salty for the Singapore palates. (R B)
In instances where respondents mentioned consumer behaviour, it sometimes necessitated a
change in product, such as pack size or change in ingredients (for cultural/dietary reasons).
197
This is consistent with the view of Keller and Moorthi (2003). Consumption patterns were
mentioned as being an important consumer behaviour variable, as was demand for a certain
imported food product. The perception of quality was cited by several respondents as being a
consumer behaviour related issue. This suggests that Chinese consumers perceive western
food products as being of a superior quality to local or other imported food product (Curtis,
McCluskey, and Wahl, 2007).
To some countries it (product customisation) depends on the customer. For example
in Japan we send premium products, but in China, in Malaysia or Vietnam we send a
mix, half premium, half concentrate. (R G)
So to get to the price point, we often have to downsize the offer and … consumption
patterns in Asia are lower (than) that of typical westernised nations. (R H)
People in Asia and China in general see Australian foods as being of a superior
standard due to the advanced manufacturing systems and rigid quality control. They
(the Chinese consumer) know they are buying a quality product. (R A)
Several respondents found that exporting food products specifically from Australia had
benefits, a fact they take into account in their decision making. The primary reasons cited was
Australia’s ‘green’ reputation, as well as the quality of the ingredients used, noted above.
Those respondents who conducted basic research into their foreign (international) markets
said that Australia had a reputation abroad for growing naturally and for manufacturing
quality foodstuffs. ‘Freshness’ of foods was also cited as being important for the image of
Australian food exports. Those respondents who referred to country of origin (COO) stated
that COO influence for Australian food exporters was positive, i.e. Australia had a positive
image.
… (being from Australia) opens new doors. (R C)
I think Australia has got a superb reputation with regards to being a clean
environment and perceptually, if not actually, our food and produce is generally at the
highest quality or highest perceived quality. (R A)
198
The use of technology in either accessing international markets or preparing customised food
and beverage products for those markets were not found to be significant. Only one
respondent reported that technology was important in the product customisation decision for
international markets.
Several respondents reported understanding of a foreign country’s national laws as being
significant. Specifically, laws related to food packaging and labelling were seen as critical to
successful export by most respondents. Similarly, a thorough understanding of a foreign
nation’s food safety/food handling laws was also seen as important because food and
beverage products may have to be customised to adhere to the national standards:
That would … be an example where you would have to comply with legal aspects of
the national laws of a particular foreign market in Asia. (R G)
A nation’s economic conditions were found to be significant in terms of selection as a target
for export marketing. Specifically, a nation’s economic growth rate was found to be a key
selection criterion for export destination. Several respondents reported that industry growth
rate was of major importance. That is, the growth rate of the industry (e.g. packaged foods)
was as important as the national economic growth rate (e.g. China’s gross domestic product).
If the size of the market were large enough then we would do that (i.e. customise
products for that market). Market metrics in terms of sales volume and profit are
particularly import in our market choice selection. (R H)
Respondents reported the rationale for going international with their food products as either
to increase dollar and unit sales, and/or to increase overall profit or profit margin. These were
seen as organisation performance measures and determinants. Only one respondent suggested
desired market share as an influence on decision making. Profit margins were mentioned by
several respondents as being critical. In all cases where margin was mentioned, the degree of
customisation was seen as dependent on the margin available on the sale of a product to an
international buyer. One respondent cited increased production capacity as mandatory for
exporting product abroad. This means resources had to be allocated to manufacturing to
199
increase productive output. Two respondents alluded to greater production capacity
utilisation also being the organisational intent.
We did really run into a lot of markets … with(out) a great understanding of what
they were really looking for. Our first offerings were really what we developed here
for our local market. We simply tried to sell any excess capacity from our Australian
market overseas as cheaply as possible. (R F)
Is it economical for us to look at it (product customisation) or do we walk away? So
we try to export as much product in a standardised way because it’s cheaper. We
therefore look to markets such as New Zealand where we can sell our products with
little if any change. (R G)
Several respondents cited the international competition as a reason for targeting selected
nations. Essentially, exporter decision makers who cited competition in foreign markets
reported that they either selected markets where no product customisation was required (that
is, they marketed standardised products), or selected nations where the degree of product
customisation (and the investment required to do this) was minimal.
Two respondents mentioned that Australian organisations had a competitive advantage in
international markets because of the timing of their market entry or the lack of existing
competition in these markets. However three respondents referred to competition as being
important.
Of course we want some sort of growth opportunities in those areas and I guess we
should go back one step and ask why we should decide to export in the first place.
Our domestic market is mature and there are known growth opportunities in offshore
markets. (R B)
Legal constraints were cited as a reason for some product customisation. For example:
That would … be an example were you would have to comply with legal aspects of
the national laws of a particular (Asian) market. (R G)
200
A target nation’s growth rates were found to be significant in terms of selection as a target for
export marketing. Specifically, a nation’s economic growth rate was found to be key
selection criteria for export destination. Several respondents reported that industry growth
rate was of major importance. That is, the growth rate of the industry (e.g. packaged foods)
was as important as the national economic growth rate (e.g. China’s gross domestic product).
Opportunities for growth were also cited as being important. China in particular was seen as
being a growing market (opportunity), for further export expansion.
If the size of the market were large enough then we would do that (i.e. customise
products for that market. (R H)
In terms of who makes the export product customisation or standardisation decision, there
was a significant variation, depending upon the size of the organisation. Smaller to medium
sized food exporters relied on the Managing Director (MD) or Chief Executive (CE) to make
the final product decision. In larger organisations, teams made the decision. Teams typically
consisted of marketing, research and development, export and administration staff depending
on the organisational structure.
An unanticipated finding in the interviews was significant belief amongst respondents in the
importance of the role of intermediaries in product customisation or standardisation decisions
for international markets. Respondents reported that intermediaries were located locally, that
is, within Australia. However, in some cases the intermediaries also had foreign-based
operations. Further, respondents reported that intermediaries assisted the decision in three
main ways:
1. Selecting appropriate nations for the product (based on the intermediaries’ knowledge
of those countries)
2. Selecting appropriate products within a given product line for export, and
3. Providing valuable market data on how best to customise a product (if applicable) for
one or more international markets.
For example, the respondents indicated:
201
We’ve actually appointed agencies and have agency agreements with some big
companies in each market. (R F)
We use trade agents such as Austrade. (R G)
Without agents, we would have no market in China. Our import agent helps us to
compete successfully in a growing market with much competition. (R B)
We could access the China market without an importers and wholesaler. That would
be time consuming and dangerous because our wholesaler knows the market needs
and our product. (R A)
Those exporters who relied on intermediaries (mainly small to medium sized organisations)
defined the role of an international trade (import or export) agent, as the facilitation of
matching between buyer (such as a wholesaler) and seller (the exporter). Intermediaries of
this type are usually based in the country of origin (that is, Australia) but have an
understanding of and connections in the export destination.
Qualitative Study: Discussion and Conclusions
The product customisation or standardisation debate has tended to imply that these constructs
are dichotomous and mutually exclusive. Kragh (2002) suggests that exporters should not
look at these strategic alternatives as dichotomous, but rather as a number of different, inter-
related scenarios. This is the position which seems to best fit the views of the practitioner
respondents. Managers will undertake some product customisation, but this will vary widely
depending on the product, country and other variables.
Further, the literature reviewed in earlier chapters on international product
customisation/standardisation decisions yielded evidence for a number of relevant
independent variables (IVs) impacting the dependent variable (DV) of ‘degree of export
packaged food product C/S’. The present study concludes that the practitioners interviewed
have bolstered the face validity of all the literature based variables.
202
The relevant variables are summarised in Figure 6.1.
Respondents also suggested that export intermediaries moderate the relationship between the
dependent and independent variables. Those exporter decision makers who relied on
intermediaries defined the role of an international trade (import or export) agent as the
facilitation of matching between buyer (such as a wholesaler) and seller (the exporter).
Intermediaries of this type are usually based in the country of origin (that is, Australia) but
have an understanding of and connections in, the export destination. This is somewhat
analogous to the role of financial intermediaries who match financial instruments (of varying
structures and duration, for example) to customer financial needs.
Exporters who espoused this kind of important role for international trade agents were mainly
small to medium sized organisations, although no firm conclusion is possible on this from the
small sample accessed for this qualitative research. Smaller to medium sized food exporters
relied on the Managing Director (MD) or Chief Executive (CE) to make the final product
decision seemingly independently. In larger organisations, teams appeared to make the
decision. Such teams consisted of marketing, research and development, export and
administration staff depending on the organisational structure.
We have a weekly meeting to decide our international marketing issues, especially
sales. (R G)
Generally, the management team. We have basically three (decisions makers). There
is the Managing Director, myself (as) the General Manager, and our Export Manager.
(R F)
Key questions springing from these findings are 1) ‘does the context of decision making
(group or individual) influence the extent of the food C/S decision made?’, ‘does the
involvement of intermediaries influence the extent of the food product C/S decision made?’
and finally, does the composition of the decision making team influence the outcome of the
product c/S decision made? By including variables capturing group or individual context for
decision making, and any role played by intermediaries, it is hoped to establish through
203
quantitative research whether these factors lead to any definite difference in the extent of
product C/S decided upon.
The qualitative study also suggested that smaller organisations tended to have one single
decision maker responsible for the product decisions in international markets. Larger
exporters appeared to make the same decision in groups.
This study finds the strongest support was evident for the influence of consumer behaviour
and cultural difference. Nine out the eleven practitioners interviewed reported that cultural
differences and consumers’ behaviour towards imported products influenced their (the
managers’) product customisation/standardisation decisions. In short, as noted, the qualitative
work undertaken enhances the face validity of the literature derived variables in this decision,
but additionally suggests a significant role for international trade agents - an unanticipated
outcome.
The respondents have provided support for each of the variables to the model now proposed
for testing. The model of decision making developed here assumes that export decision
makers have some knowledge of the characteristics of their export markets and the issues
likely to influence product standardisation or customisation. However, the current study does
not assume that they are familiar with any or all of the literature and theory the researcher has
reviewed concerning these matters. Rather, it believes it is reasonable to expect that export
managers will take at least some of the following variables into account in their
standardisation/customisation decisions.
On the basis of both the literature reviewed in earlier chapters and of practitioner
confirmation of this evidence in the qualitative study reported in this chapter, this study
suggests that each of the independent variables (IVs) described in Figure 6.1 may influence a
manager’s decision on the degree of product standardisation required for export to world
markets. This study proposes the following modified model of influences on managerial
decision making concerning levels of export product C/S.
204
Figure 6.1: Initial Proposed Model: Factors in Managerial Export Food Product C/S
Decision Making re for China
Dependent Variable
Independent Variables
Based on the data collected from the depth interviews with Australian based food and
beverage exporters, the conceptual model illustrated in Figure 6.1 is proposed for further
empirical testing.
In the following chapter the current study further develops this proposed model of influences
on export managerial decision making, derive specific hypotheses for testing, and outline
methodology for the empirical study designed to test these hypotheses.
Degree of export product standardisation or
customisation
Org. Strategic Intent and Related Variables
Country of Origin (COO) Effect
Consumer Behaviour and Cultural Issues
Competitive Factors
Target Market Economic Conditions and Stage
of Development
The managerial decision making process
205
Chapter 7
QUANITATIVE METHODOLOGY FOR EMPIRICAL STUDY
Introduction
This study has now accessed a range of concepts for which research evidence exists in
support of their having a likely role in the optimisation of commercial export product C/S
decision making. Further, it has obtained face validity for a tentative model of the structure of
influences in export manager decision making in these matters by asking practitioners from
based in Australia whether in fact, they take such concepts into account. In this chapter, the
study derives a set of key hypotheses for testing of this proposed model, and set out
methodology for a major study, this time using quantitative methods.
Research methodologies directly impact the validity and generalisability of a study and play a
vital role in knowledge development of international business (Kogut, 2001). Business
research is characterised by a number of different theoretical perspectives and philosophies
(Stiles, 2003) and can vary significantly in substantive interest (Knorr-Cetina, 1981). Overall,
the current research study used a mixed method approach, embodying both qualitative and
quantitative approaches. An initial qualitative study using depth interviews with Australian
based export decision makers was reported in the previous chapter. A self-administered
questionnaire survey was then employed to empirically test the model generated. In
accordance with the recommendations of Frohlich (2002), the survey was pre-tested in
Australia among ten food and beverage exporters prior to its international deployment.
Respondents to the questionnaire were practitioners predominantly from North America,
Asia, and Europe.
Cross Cultural Research
This study concerns the analysis of product C/S decision making by export managers in
countries other than the target market country (i.e. China), and is therefore cross cultural in
206
terms of the decision making location and the target country location. The conceptualization
is illustrated in Figure 7.1.
Figure 7.1: Managerial Differences Across Cultures: Export Decision Makers and
Chinese Markets
Cultural boundaries are indicated by broken line
Further, the study explores such decision making by managers from various regions of the
world. The study allows examination of similarities and differences between product C/S
decisions making across these regions, which is conceptualized in Figure 7.2. Figure 7.2
divides the world into distinct regions suggesting that managerial decision makers from a
given region make similar packaged food product C/S decisions for China.
North
America
United
Kingdom
Continental
Europe
Asia
Other
regions
China
207
Figure 7.2: Managerial Differences Across Cultures: Export Decision Makers in
Different Countries
Cultural boundaries are indicated by broken line ( )
North
America
United
Kingdom
Continental
Europe
Asia
Other
regions
China
208
Figure 7.3 summarizes the cross cultural perspectives within this research.
Figure 7.3: Cross Cultural Differences: Export Decision Making Between Individual
Regions and China
Cultural boundaries are indicated by broken line ( )
The rise of cultural diversity in society has had an impact on many aspects of our life (Gitner,
1998). In the scientific world, one impact has been the need at times to translate research
instruments for use with people speaking different languages. As Caro and Stiles (1997, p.
233) suggest:
Translating is not a simple mechanical matter of changing words from one language
to another, but a subtle and personal task, an act of recreation, of reconstruction.
North
America
United
Kingdom
Continental
Europe
Asia
Other
regions
China
209
To be considered valid, cross cultural translation of instruments must establish the relevance
of the instrument in the new culture by taking into consideration the emic (e.g. ideas,
behaviours, and concepts that are culture specific) and etic (e.g. ideas, behaviours, and
concepts that are general and universal) (Banville, Desrosiers, and Genet-Volet, 2000). This
study sought to minimise such difficulties by purposively accessing only active, experienced
export practitioners, who were all proficient in English language, although based in different
parts of the world. In fact, the respondents came largely from developed economies sharing
much in terms of dominant modes of approaches to business. The surveys were conducted at
food and beverage trade exhibitions in Beijing, Hong Kong and Kualar Lumpur, which are
international cities where English is widely spoken. Further, the trade exposition in which the
respondents attended was globally promoted (via the Internet and pamphlets) in English.
The purposive sampling method used ensured that respondents met all the criteria: active
exporters, fluent in English etc. However, analysis is possible for any differences which
exhibit in the relevant decision making across the US, UK, continental Europe, Asia and
‘other regions.’ As direct data gathering from Chinese consumers was not part of the study,
the issue of translation of questions between English and Chinese languages was avoided.
This matter could arise however in the context of the role of intermediaries, who may well be
based in China. As Pye (1986, p. 20) posits:
Unquestionably, the largest and possibly the most intractable problems in Sino-
America business negotiations can be traced to cultural differences between the two
countries.
Sinkovics, Penz, and Ghauri, (2005) posit that in international marketing research and
particularly research at the marketing and entrepreneurship interface, the use of an open and
flexible research design is required. To ensure validity, Mays and Pope (2000) suggest
procedures and principles such as triangulation and respondent validation. Triangulation
refers to the use of multiple research methods to reduce the incidence of bias. This study uses
triangulation between literature based conceptualisation, and both qualitative (see previous
chapter) and quantitative (this and subsequent chapters) data gathering methods. Respondent
validation refers (in the case of this study) to ensuring that the respondent who participates in
the study is actually involved in the export decision-making process related to product
210
standardisation or customisation decisions for international markets. The current study allows
for strong respondent validation in this empirical study via the capture of information on
nationality, age, experience and gender, and of considerable information on respondents’
organisations.
Empirical Study: Methodology
The steps in this study were first, to develop and test measures of the constructs suggested by
the literature and the qualitative study within the proposed model, and then to empirically test
the proposed overall model and the relationships between the constituent variables. The aim
was to refine the model, reflective of real world practitioner views, using structural equation
modelling techniques. Data was gathered by way of a largely self-administered questionnaire.
Manion (1994, p. 743) defines survey research as the
Systematic data collection in a natural setting for the purpose of answering questions
about a specific population.
The respondents consisted of executives from packaged food manufacturing organisations.
The organisations were predominantly but not exclusively from North America, Europe and
Asia. The executives were present at three separate and unaligned food and beverage
exhibitions based in Asia. The purpose for their attendance was to discuss potential export
trade with wholesalers, retailers, agents and distributors from other nations. Their age,
gender, and experience in exporting packaged food and beverage products varied greatly.
Each potential respondent was asked a filter question to ascertain whether they were involved
in the export decision making process for their organisation, specifically the decision related
to the choice of products that were exported. The respondents were informed that their
participation was voluntary and would take approximately 30 minutes.
Empirical Study: Operationalization of Constructs
Operationalisation specifies the transition from theory into measurement (Bhalla and Lin,
1987). According to Churchill and Gilbert, (1979, p. 65), the process of measurement
211
involves ‘rules for assigning numbers to objects to represent quantities of attributes.’ The
Churchill and Gilbert (1979) definition involves two key notions. First, it is the attributes of
objects that are measured and not the objects themselves. Second, the definition does not
specify the rules by which the numbers are assigned. However, the rigor with which the rules
are specified and the skills with which they are applied determine whether the construct has
been captured by the measure. The present study now offers concise summaries of the
variables in the proposed model. Detailed reviews of the literature evidence basis for these
variables and their relevance were provided in chapters two, three and four. The variables
also form the basis of the survey instrument found in Appendix 2. Abbreviations used are
noted in brackets.
Cultural Issues/Buyer Behaviour (CBB)
Exporters will need to understand the international consumers to whom a particular product is
targeted. Consumer perceptions of quality and value in a product (and hence the need to
customise that product to meet the consumers’ expectations) appear to be functions of
extrinsic cues such as brand name and perceptions of product country of origin (Bredahl,
2004; Magunsson, Westjohn, and Zdravkovic, 2011; Teas and Agarwal 2000). Stronger COO
effects may exist for products from a country with a dissimilar belief system and socio-
cultural climate from products of a similar country (Zhang, 1996).
Cultural differences between domestic target market consumers and export target market
consumers, defined broadly to include shared values, beliefs, attitudes, and language,
influence the product customisation or standardisation decision. For example, cultural
dimensions of power-distance and uncertainty avoidance may hinder acceptance of new
products (Yeniyurt and Townsend 2003). Characteristics of products such as labelling,
packaging, and a product’s contents all carry cultural connotations and must fulfil local (host
nation) requirements (Hill and Still 1984).
Consumers may exhibit significantly different perceptions of product attributes for products
that came from countries of different levels of socio-economic and technological
development (Kaynak and Kara, 2002).
212
Use of a standardised global brand name in all foreign markets assists in brand recognition,
quicker adoption of the product and a means of gaining global competitive advantage
(Bardacki and Whitelock 2000). Ethnocentric tendencies may affect consumer behaviour, a
factor to be figured into the overall challenge of product origin bias (Herche 1994). Hence, a
managerial perception of target market attitudes to ethnocentrism and ‘country of origin’
becomes an input into the product standardisation/customisation issue.
Organisational Strategic Intent (OSI)
Export marketing strategy, the firm’s international competence (experience), and managerial
commitment (for example, to adapt or standardise) were all relevant as determinants of export
performance (Cavusgil and Zou 1994).
Research suggests that market coverage and capacity utilisation are important considerations
for companies emphasising global standardisation (Samiee and Roth 1992), Kleinschmidt and
Cooper (1988) found the corporate success, future growth and prosperity of many
manufacturing firms depended on their ability to first select the appropriate international
target market, and secondly on the extent of the product design and development effort for
domestic compared to international consumers. This study posits that managers can be
expected to hold some belief on these matters, perhaps exhibiting as a specific strategy.
The construct organisation strategic intent captures the notions of ‘management stance’,
‘export marketing strategy’, and ‘extent of the product development and design effort’ as per
the above authors. The suggested factors of ‘experience’, ‘market coverage’, ‘capacity
utilisation’ and ‘ability to select appropriate international target markets’ also referred to
above, appear to be related to organisational strategic intent. The literature suggests that for
export decision makers, there is likely to be an important link between an organisation’s
strategic intent and international product C/S decisions.
213
Competitive Factors (CF)
Competition in foreign markets may influence the degree to which exporters adapt products
to those markets. Johnson and Aruthanes (1995) posited that each country has different levels
of competitive intensity based on, inter alia, different levels of economic development and
end-user differences. These competitive differences affect the extent to which product
customisation takes place.
International product strategy decisions will be influenced heavily by the competitive
advantage that they provide in the foreign nation. Delene, Meloche, and Hodskins (1997)
argue that competitive advantage is gained from increases in customer delivered value.
Export decision makers are faced with the challenge of developing an international product
that not only meets the needs of specific international markets, but also provides a
competitive advantage in those markets to the exporting organisation.
Target Market Economic Conditions and Stage of Development (ECSD)
Macro-environmental issues found in each country, such as economic conditions and overall
stage of economic development influence international product strategy in a variety of ways.
Nebenzahl and Jaffe (1996) argue that consumer evaluation of international products is
influenced by the (producing) country’s stage of economic development. That is, consumers
hold more negative perceptions of products made in developing countries (Wang and Lamb
1983).
National Legal & Regulatory Context (NLRC)
Understanding of laws related to food packaging, labelling, nutritional content, safety and
handling may be critical to successful export. Food and beverage products may have to be
customised to adhere to national standards.
Organisational Function/Position of the Decision Maker
214
Managerial decisions within an organisational context are often dependent on organisational
structure (Zheng, Yang, and McLean, 2010). Indeed, Fredrickson (1986) posits that an
organisation’s decision process is a function of that organisation’s structure. Within any well-
defined organisational structure, there are clearly defined job roles (positions) (Morrison,
1994). Some of those positions come with a delegated authority to make certain managerial
decisions (Baker, Gibbons, and Murphy, 1999). Positions with delegated authority in
organisations are varied (Carpenter, Geletkanycz, and Sanders, 2004) and include Chief
Executive Officer, Sales Manager, Marketing Manager, and Export (Sales/Marketing)
Manager.
Operationalized Model: Group and Individual Influences on Managerial
Export Food Product C/S Decision Making
From the review of the literature and the reported qualitative study undertaken with active
export practitioners, the current study proposes the following operationalized model for
testing. In particular, the moderating role of export channel intermediaries is highlighted. The
relationship between the exporter and their channel intermediaries can significantly impact
performance in export markets (Matear, Gray, and Irving, 2000). Indeed channel members
can moderate the relationship between the manufacturer/exporter and the international buyer
by assisting in the building of trust (Shin and Ma, 2008) which was found to be in an
important transaction relationship (Morgan and Hunt, 2004). Further, by providing strategic
advice such as product information, promotional advice, and educational programs about new
products in international markets, channel intermediaries influence the relationship between
the manufacturer/exporter and the international buyer (Teas and Sibley, 1980), often by
actively commercialising knowledge (Lichtenthaler, and Ernst, 2008). As with other models,
the purpose of this framework is to propose a logical structure and likely dynamics amongst
the important variables described above, from which testable hypotheses may be derived.
215
Figure 7.4: Proposed Model: Group and Individual Influences on Managerial Export
Food Product C/S Decision Making
Dependent variable
Moderating variable
Independent variables
Country of Origin (COO)
Competitive Factors (CF)
Target Market Economic
Conditions & Stage of
Development (ECSD)
National Legal & Regulatory
Context (NLRC)
Extent of export product
customisation /standardisation
for China market(s) (C/S)
The role of import/export
intermediaries in the product C/S
decision
Organisational Strategic Intent
(OSI)
Sales growth Profit growth
Culture/Buyer Behaviour (CBB)
216
Table 7.5 Empirical Study: Summary of Constructs and Their Measures
Construct Items Used Abbreviation Variable
Type
Questions in
Survey
Culture/Buyer
behaviour
Diet
Consumption patterns
Demand for imported goods
Pack size
C/BB Independent 23, 28-31, 33,
34, 42-46
Legal & Economic
Environment
Packaging and labelling laws
National economic growth
Product quality laws
Regional economic growth
Food Safety Standards
LEE Independent 13, 14, 17, 25,
26, 32, 53-62
Competitive
Assessment
Number of competitors
Size and strength of
competitors
COMPASS Independent 47-52
Organisational
Strategic Intent
Profit margins
Sales growth
Market share
Brand name and brand
management
OSI Independent 17-19, 35-40,
76
Country of Origin
Effects
A nation’s reputation for fresh,
clean food
COE Independent 20-22, 41
Organisational
Decision Making
Context
Individual decision making
Group decision making
ODMC Independent 6-9, 15, 16,
63-74, 77-87
Use of Export
Intermediary
The role intermediaries play in
the product
customisation/standardisation
decision
UEI Moderating
or
Intervening
10-12
Extent of product C/S
for packaged food
products for export to
China
EP Dependent
Variable
24, 27, 75
217
Empirical Study: Hypotheses for Testing
The following hypotheses were derived for empirical testing.
H1: Level of congruity between home and target market consumer behaviour and culture is positively
related to degree of product standardisation. In line with the findings of Cavusgil and Zou (1994), we
expect a positive correlation between product customisation and level of cultural difference between
the exporting market and China.
H2: The greater perceived reliance on export markets for organisational performance results the greater
will be the need to customise products for export. We expect a positive correlation between
customisation and dependence on exports for organisational performance in line with the findings of
Johnson and Arutahnes (1995).
H3: A high regard within an export market for the country of origin of an imported product as
perceived by the decision-maker is positively related to degree of product standardisation. In other
words, we expect a higher degree of product customisation with a more favourable consumer
perception of the country of origin of the imported product, in line with the findings of Kaynak and
Kara (2002). ‘
H4: The level of competition perceived by an export decision maker within the export target market is
positively related to degree of product customisation. We expect a positive correlation between
customisation and the level of competition in China in line with Bernhardt, Liu, and Serfes (2007)
assertion that higher levels of product customisation can ward off competitors.
H5: Favourable economic conditions such as a high level of economic development within the target
country are positively related to degree of product customisation. This is in line with Nebenzahl and
Jaffe’s (1996) assertion that consumer evaluation of international products is influenced by the
country’s stage of economic development, where the higher the level of economic development, the
greater the level of product C/S.
H6: Export decision makers who make product customisation/standardisation decisions in groups are
likely to make greater changes to export products than those who make the same decision individually,
i.e. we expect a positive correlation between product customisation and the number of decision makers
in the decision making team. This is consistent with the decision making approach proposed by
Michaelsen, Watson, and Black (1989).
218
H7: We expect a positive correlation between product customisation and intermediary involvement in
the product C/S decision Export decision makers who make product customisation/standardisation
decisions are likely to be strongly influenced by the advice that import/export intermediaries provide
the export decision maker (Angelmar and Pras 1984). Therefore, we expect that the greater the
intermediary involvement in the export product C/S decision, the higher the level of export product
customisation.
The empirical testing of these hypotheses will have important managerial implications for
export decision makers. The findings should assist exporters who are charged with the
responsibility of ensuring their product meets the needs of the international target market(s)
while balancing the attainment of the improvement of organisational performance. This is
because export decision makers can reflect upon their habitual decision processes and that of
their peers. Such meta-cognition may suggest factors to be given greater or lesser emphasis in
the attainment of the decision and ultimately of export outcomes
The measures this study has developed are in each case multi item. Table 6.5 (above) lists the
names of constructs, summarizes the items used in the measurement, designates an
abbreviation and variable type (independent, dependant, moderating or intervening), and lists
the relevant question numbers in the questionnaire.
Questionnaire Design
As noted, the survey instrument in this study was administered in English. Scholars have
supported the use of alternative questionnaire formats in international marketing research
(Douglas and Craig, 2005). Their reasons for doing so centre on the notion that, different
cultures respond differently to different scale measures in quantitative based questionnaires,
such that the same scales may have different reliabilities in different cultures. In this study the
one English language questionnaire was administered to all respondents, the only practical
solution when respondents originated from numerous countries across several continents, but
all speaking English.
In designing the scale or response format, respondents’ educational or literacy levels should
be taken into account (Malhotra, Argawal, and Peterson, 1996). One approach is to develop
scales that are pan-cultural, or free from cultural biases. Of the scaling techniques commonly
219
used, the semantic differential scale is said to be pan-cultural and is used widely in survey
instrument in this study. When using Likert scales or semantic differential scales,
international marketing researchers need to test the significance and appropriateness of
anchors (Malhotra, Agarwal, and Peterson, 1996).
The end points of the scale are particularly prone to different interpretations (Malhotra,
Agarwal, and Peterson, 1996). In some cultures ‘1’ may be interpreted as best, while in others
it may be interpreted as worst, regardless of how it is scaled. This study conforms to the
notion that the lower the number, the lower the effect, preference or ranking of the variable.
All variables are measured on a horizontal 7 point semantic differential scales, Likert scales
or Staples scales in accordance with the recommendations provided by Dawes (2008) and
Miller (1956). Whilst some authors argue that there is no one best scale (Gleason, Devlin and
Brown, 1994), this number of response alternatives has been suggested by Cox (1980), after a
thorough literature review, and by Peter (1979). Alternative scale types were chosen in this
study to reduce monotony and any resulting response bias. This study adopts Cox’s (1980)
suggestion and used 7 point scales where necessary throughout the questionnaire.
Sampling
A purposive sample of 210 respondents was selected among export decision makers who
were present at the Hong Kong Food Expo in 2005, and at similar events in Kuala Lumpur
and Beijing in 2005 and 2006. Respondents were asked to complete a questionnaire, and were
informed that doing so would take approximately thirty minutes. Participation was voluntary.
Respondents were primarily from Europe, South East Asia, and North America (including
Canada).
The respondents were approached by the researcher during the trade exhibitions, each of
which lasted for several days, and asked if they were interested in participating in a voluntary
questionnaire based survey. The researcher explained the purpose of the study, the
approximate time it would take to complete, and the confidentiality of the data collected.
220
Summary
1. The design of this study combines mixed mode methods of qualitative and
quantitative approaches in a way appropriate to the international research context.
2. The qualitative study suggests support and face validity for the proposed literature
based model.
3. The quantitative elements of the design allow testing of the influence of salient
variables and theorised dynamics between them.
In the following chapter, discussion of the key findings of the empirical study is considered.
221
Chapter 8
FINDINGS: EMPIRICAL STUDY
Introduction
Findings from this empirical study are reported in the following manner. First, the nature of
the respondent sample is examined in terms of both the individual respondents and their
organisations. This study uses exploratory and confirmatory factor analyses to develop
measurement scales, assessing the reliability of these scales using Cronbach’s Alpha statistic.
Discriminant validity is checked, and the relationships between the scales are examined using
correlation analysis. Following examination of the data in descriptive terms, a test of the
hypotheses developed in chapter six will be conducted. Finally, this study uses structural
equation modelling (SEM), to revise and refine a model of influences on managerial decision
making regarding export product C/S within the focal Chinese context.
The Respondents
210 respondents completed the questionnaire over the three separate food and beverage
expositions held in Hong Kong (August 2005), Kuala Lumpur (September 2005) and Beijing
(June 2006), as noted previously. These major industry events attracted participants with a
commercial interest in food export from around the world.
The respondents can be characterised as middle level to senior level export managers. All are
in decision making roles. Table 8.1 shows the characteristics of the respondents’
organisations in terms of size, measured using the number of employees. The sample has
captured the views of these key informants within a wide size range of exporting
organisations. About a third of respondents represented organisations employing in excess of
250 people.
222
Table 8.1: Number of Staff Employed Worldwide
Frequency Percentage
Cumulative Percentage
1-250 employees 143 68.1 68.1 251-500 employees
55 26.2 94.3 501-1,000 employees 10 4.8 99.0 >1,001 employees 1 .5
Total
1 .5 99.5
Missing value Total
210 100.0
100.0
The majority of respondents (84 per cent) were male (Table 8.2). There may be several
reasons for this uneven gender distribution. It is known that buyers from Confucian cultures
(for example, some Asian cultures) prefer to have business dealings with males (Kang, 2004).
This could be a factor in the gender of the respondents from non-western nations. An
interviewer effect artefact, e.g. ‘shyness’ of females towards a male interviewer, is an
alternate interpretation. The gender breakdown may also simply reflect gender distribution in
the event attendances. Gender is not central to the hypotheses this study is testing, but does
provide an additional basis for analysis.
223
Table 8.2: Gender of Respondents
Typically, the export decision makers interviewed have a significant level of experience
making the type of decisions focal to this study. 78 per cent of respondents were between the
ages of 26-55 years (Table 8.3), with around 40 per cent aged between 36-45 years. This is
not surprising given the level of responsibility and risk associated with making export
product related decisions (Cavusgil, Zhou, and Naidu, 1993).
Table 8.3: Age of Respondents
Percent Cumulative
Percentage
18-25 years 4 1.9 1.9
26-35 years
34
16.3
18.1
36-45 years
81
38.8
56.9
46-55 years
49
23.1
80
>55 years
42
20
100
Total
210
100
Over a third of respondents have been making export related product decisions (either with
their current or previous employer) for many years - around 36 per cent for between six and
10 years, and a further 35 per cent for more than 10 years (see Table 8.4). This represents
significant, long-term experience.
Frequency Percentage
Male 177
84.3
Female
33
15.7
Total
210
100.0
224
Table 8.4: Years of Respondent Export Product Related Decision Experience
Frequency Percentage Cumulative Percentage
1-5 years
60
28.8 28.8
6-10 years 75 35.6 64.4 11-15 years 38 18.1 82.5 16-20 years 33 15.6 98.1 >20 years 4 1.9 100 Total 210 100
79 per cent of respondents are employed by organisations that have a sales turnover of one
million dollars or more, and about 53 per cent by organisations with turnovers of 5 million
dollars or more (Table 8.5). Exporting, as a foreign market entry mode, tends to be the
preference of small to medium sized enterprises. There is evidence that larger, better-
resourced organisations prefer higher risk/higher reward market entry modes such as joint
ventures, (Muller and Schnitzer, 2005), ‘greenfield’ operations, Elango (2005), and contract
manufacturing (Elango and Sambharya, 2004). This is consistent with the small number of
respondents (around 16 per cent) who represent the largest food manufacturing companies.
225
Table 8.5: Gross Annual Sales Turnover of Respondents’ Organisations
Frequency Percentage Cumulative
Percentage
<US$0.25m 1 0.6 0.6
16 7.5 8.2 US$0.250k-$.5m
25 11.9 20.3 US$0.5m-1m
56 26.9 47.5 US$1m-$5m
76 36.3 84.2 US$5m-$10m
33 15.6 100 >US$10m
207 98.8 Total
Missing value 3 1.3
Total 210 100
Table 8.6 shows a range of responses concerning the percentage contribution of export
income to total organisational gross annual sales income, from around 10 to 60 per cent.
About a third of respondents reported that the export income of their company was less than
10 per cent of their total organisational revenue. These respondents may represent
organisations that were relatively new to exporting. Around 36 per cent of respondents gave
the export percentage contribution to income of between 30 and 60 per cent.
226
Table 8.6: Export Revenue Contribution to Gross Annual Sales Turnover
Frequency
Percentage Cumulative Percentage
<10 per cent 65 31.3 31.6
10-20 per cent 38 18.1 50
20-30 per cent 29 13.8 63.9
30-40 per cent 45 21.3 85.4
40-50 per cent 22 10.6 96.2
50-60 per cent 8 3.8 100
Total 207 98.8
Missing values 3 1.3
Total 210 100
In terms of the geographic operational base of the exporters, 20 per cent of respondents
nominated this as being within continental Europe. Combined with respondents from the
United Kingdom (17 per cent); ‘greater Europe’ represents around 37 per cent of
respondents’ organisations (Table 8.7a). The regions of South America and Africa had the
least number of respondents, while there were significant minorities of Asian and Oceanic
based exporters represented.
227
Table 8.7a - Geographic Operational Bases of Respondent Exporters
Frequency Percentage
Continental Europe
32 15.2
North America
24 11.4
South (Latin)
America
5 2.4
Oceania
26 12.4
UK/Great Britain
28 13.3
North Asia
24 11.4
South East Asia
24 11.4
Total
210 100.0
In summary, the data collected has been provided by experienced senior managers in
significant export enterprises. These enterprises are located outside of China in a variety of
geographic locations covering most of the globe (Table 8.7a). In addition, around 81 per cent
of decisions regarding product related factors for China are reportedly made in head offices
within the home country of the export decision maker’s organisation (Table 8.7b). This may
suggest a centralised approach to decision making.
Table 8.7b – Location Where Respondents’ Organisations Make Their Export Decisions
Frequency Percentage Cumulative Percentage
China 33 15.7 15.7
Company HQ 170 81.0 96.7
Other 7 3.3 100
Total 210 100
228
Findings on the ‘Buying Centre’ and Research Input Context to Export
Decision Making
The decision to export has considerable associated risk (Bonaccorsi, 1992). The respondents
suggested that while they, as key export decision makers, held senior positions in the
exporting organisation, other executives were often involved as well. The organisation’s chief
executive officer (CEO) was often involved in the export decision (35 per cent of cases).
Others often involved included the export manager (25 per cent), general manager (20 per
cent), sales manager (28 per cent), and marketing manager (24 per cent)
As noted, this study found that the organisations’ export decision makers made their
decisions within their home country in 81 per cent of cases. Only 14 per cent of respondents
reported that export decisions were made in the target destination country.
Marketing research has often been considered the cornerstone of marketing decision making
(McMurray, Pace, and Scott, 2004). In this study, 95 per cent of respondents reported that
their organisation conducted some Chinese market research prior to making their key export
decisions. 34 per cent of respondents conducted their own research on China, 16 per cent
used a marketing research consultant/specialist in China to conduct the research, while 30 per
cent of respondents reported that they used a marketing research specialist/consultancy based
in the company’s home country (refer to Table 8.8).
229
Table 8.8 – Initial Marketing Research Responsibilities
The export product C/S decision overwhelmingly occurs within the context of at least some
market research. Almost all respondents (97 per cent) considered product related matters such
as labelling, packaging and package size in their research, while 73 per cent included research
on segmentation. Nearly 60 per cent of respondents reported that they researched Chinese
consumers’ dietary habits, while over 50 per cent included research on food consumption
patterns (Tables 8.9a and 8.9b).
Frequency Percentage Cumulative Percentage Your organisation 72 34.4 34.4 Mktg research specialist based 35 16.3 50.7 In China Marketing research specialist based in 63 30 80.7 home Country International mktg research specialist 18 8.8 89.5 Worldwide Don’t know 12 5.6 95.1 Other 1 0.6 95.7 Not applicable 8 3.8 99.4 Missing value 1 0.6 100.0 Total 210 100.0
230
Table 8.9a: Consumption Patterns Selected for Initial Market/ing Research
Table 8.9 b – Dietary Habits Selected for Initial Market/ing Research
Frequency Percentage Cumulative
Percentage Yes 123 58.8 58.8 No 29 13.8 72.5 Not applicable 58 27.5 100.0 Total 210 100
An important factor in successful exporting suggested by this qualitative study was having a
buyer (importer) in the destination country that was able to assist the exporter to achieve their
strategic foreign market goals (Aulakh and Kotabe, 1997; Klein, Frazier and Roth, 1990).
The empirical finding was that nearly 52 per cent of respondents sold packaged food and
beverages to an import wholesaler, the rest (represented by ‘No’ in Table 8.10) chose other
means by which to distribute the packaged food export product to China. The Chinese
government has a relatively high level of involvement in business (Boisot and Child 1996).
Nearly 36 per cent of respondents said they sold products to a government authority (e.g.
state owned enterprise, national government authority, provincial government authority- see
Table 8.10). However, a further 27 per cent reportedly sold product to private enterprise in
China. This finding is consistent with private enterprise playing a more important role in
China’s economy than at earlier times (Rask, Chu, and Gottschang, 1998).
Frequency Percentage
Cumulative Percentage
Yes 108 51.3 51.3 No 45 21.3 72.6 Not applicable 57 27.5 100.0 Total 210 100
231
Table 8.10: Primary Buyer/Distributor of Packaged Food
Importer Private State Local State
National
Enterprise Govt. Govt. Enterprise Govt.
Freq % Freq % Freq % Freq % Freq % Freq %
Yes 109 51.9 57 26.9 18 8.8 28 13.1 25 11.9 4 1.9
No 101 48.1 153 73.1 192 91.2 182 86.9 185 88.1 206 98.1
Total 210 100 210 100 210 100 210 100 210 100 210 100
In nearly 64 per cent of cases, the primary buyer (importer) was involved in the development
of the product being purchased (Table 8.11), suggesting that export decision makers usually
consult their primary buyer prior to export product C/S decisions and manufacture, and that
there is sufficient salience in this segment to believe that buyers were part of the product C/S
decision.
Table 8.11: Primary Buyer/Distributor Involved in New Product Development
The emerging picture is of significant research input into export C/S product decisions. Such
research is likely to at least include investigation into labelling, packaging and segmentation.
Frequency Percent Cumulative
Percent
Yes 102 63.8 63.8 No 58 36.3 100 Total 160 100
232
More often than not such research will occur within China, rather than from a desk back in
the exporter’s home country. This substantial research commitment reflects the high risk
involved in a market development strategy.
Scale Development
In order to test the hypotheses presented in chapter 7 it was necessary that aggregate
measures for the research constructs be developed. In particular, importance measures were
developed for all the factors that influence the product C/S decision.
Factor analysis is an exploratory process used to examine multiple solutions in a search for
meaningful conceptual structure(s) (Briggs and Cheek, 1986). Different solutions may imply
different interpretations of the nature of the factors, and their pattern of influences on the
measured variables (MacCallum, et al., 1993). Exploratory factor analysis (EFA) is to arrive
at a parsimonious conceptual understanding of a set of measured variables, by determining
the number and nature of common factors needed to account for the pattern of correlations
among those measured variables (Fabrigar, et al, 1999).Factor analytical procedures were
used to refine and test the latent (underlying) variables in the data. In so doing, redundant
variables were reduced, enabling us to identify what the set of remaining variables had in
common.
EFA procedures provide more accurate results when each common factor is represented by
multiple measured variables (Velicer and Fava, 1998). The present study uses multiple
regressions to test the strength of the relationships between the dependent variable (DV) and
independent variables (IVs). AMOS software was then used to develop a structural equation
model (SEM) representing the interplay of relationships among the variables. This enables us
to understand which latent variables are the most influential in the managerial export product
C/S decision.
EFA of the 45 questionnaire items relating to export product C/S decision making was
conducted using the Statistical Package for the Social Science (SPSS) software. When the
Kaiser Criterion was used to determine the number of factors, twelve factors were found.
However, when these factors were extracted using principal axis factoring and rotated with an
233
obliminal rotation, the pattern matrix showed that some items loaded weakly (below 0.3) on
all factors, while other items loaded strongly on more than one factor. The removal of five
items solved these problems, as shown below in Table 8.12, resulting in ten factors
representing the underlying constructs influencing product C/S decision making, and
explaining 69 per cent of the variation in the responses. The obliminal rotation resulted in
correlations between the factors ranging for zero to 0.444.
234
Table 8.12(a) – Exploratory Factor Analysis (EFA)
Patte rn Matrixa
.832
.825
.729
.670
.663
.656
.581
.490
.457
.433 .809 .793 .541 .496 .459 .424 .797 .757 -.940 -.737 -.536 .788 .753 .692 -.301 .339 -.801 -.764 -.703 .305 -.616 .310 -.561 .764 .738 .727 .424 -.328 .423 .327 .940 .508 .898 .522
Q70c om procustmQ68a ltncus tmQ67unc ertc us tmQ72c om ps tnc ustmQ71deg rcustmQ69c on fidc us tmQ65resc on fcustmQ64c stbencus tmQ66qua linfocustmQ63o rgdmc us tmQ55incc us tmQ54emp lcustmQ25pac kcustmQ26s zecus tmQ24p rodcustmQ27c on tcustmQ38p rofcus tmQ39ro ic ustmQ48repc om numc us tmQ49repc om sz ecustmQ53econcustmQ31nutrncustmQ29c onspa tcustmQ30d ietcus tmQ35s tra tcustmQ59econgrwcustmQ58regecongrwcustmQ60s tgeconcustmQ57g loeconcustmQ56regeconcustmQ44reps afecustmQ42repp rodcustmQ43repi nnocustmQ45repexpcus tmQ47repc om fac tcustmQ41c ounorgnc us tmQ36m ktshrcus tmQ37unitcus tmQ73ti mepc ustmQ74c om pli nfocus tm
1 2 3 4 5 6 7 8 9 10Facto r
Ex tracti on Me thod: Princ ipal Ax is Fac toring . Ro tat ion M ethod: Ob lim in with Kais er Norma liza tion.
Ro tat ion conv erged in 16 iterati ons .a.
235
Table 8.12(b) – Exploratory Factor Analysis (EFA)
Extraction Method: Principal Axis Factoring Rotation Method: Oblim with Kaiser Normalization
Question Variable 1 2 3 4 5 6 7 8 9
Decision context
70 Level of compromise in C/S decision 0.832
68 Ability to differentiate between alternatives 0.828
67 Level of uncertainty in the C/S decision 0.732
72 Composition of decision making group 0.673
71 Face to face or computer made decisions 0.663
69 Confidence to make a decision 0.658
65 Ability to resolve conflict between orgn goals 0.584
64 Cost/benefit trade offs in C/S decision 0.491
66 Quality of information in C/S decision 0.463
63 Organisation decision making process 0.439
55 Chinese economic conditions – income 0.816
Economic prosperity
54 Chinese economic conditions – employment 0.787
25 Amount of packaging/labelling customisation 0.543
Product Customisation/ Standardisaiton (DV)
26 Amount of pack size customization 0.496
24 Amount of product customization 0.461
27 Amount of content customization 0.422
38 Organisational goals – profit 0.79 Profit intent
39 Organisational goals - return on investment 0.767
48 Perception - No. of competitors in China -0.94
Competition
49 Perception - size of competitors in China -0.737
53 Economic conditions in China -0.537
31 Chinese consumers - nutrition patterns 0.787
Chinese buyer behaviour /Culture
29 Chinese consumers - consumption patterns 0.753
30 Chinese consumers - dietary habits 0.691
35 Organization’s overall strategic intent -.301 0.34
59 Chinese economic conditions - economic growth -0.8
Economic development
58 Chinese economic conditions - regional growth -0.766
60 Chinese economic conditions - stage of growth -0.701
57 Chinese economic conditions - global integration 0.308 -0.619
56 Chinese economic conditions – regional integration 0.310 -0.562
44 Reputation for product safety -0.765 Country of origin
42 Reputation for product quality-freshness -0.738
43 Reputation for innovative food -0.726
45 Reputation for manufacturing expertise -0.424
47 Competitive factors in China -0.327 -0.422
41 Consumer perception brand's COO -0.327
73 Time pressure in C/S decision -0.931 Decision constraints
74 Availability of complete info in C/S decision -0.51
36 Organisational goals - market share 1.006
Organisational strategic intent
37 Organisational goals - unit sales 0.474
236
The following names were assigned to the factors which emerged.
Table 8.13 - Factor Names and of Constructs
Factor
Number
No. of Items Encompassing
Constructs
Explanation
1
10
Mangt. Decision
Process
Managerial
Decision Process
2
2
Economic
Prosperity
Target Market
Legal &
Economic
Environment
3 4 Customisation Extent of Product
Customisation
(DV)
4 2 Profit Intent Organisational
Strategic Intent
5 3 Competition Competitive
Assessment
6 4 Buyer
Behaviour
Consumer
Culture &
Cultural
Differences
7 5 Economic
Development
Target Market
Legal &
Economic
Environment
8 6 Country of
Origin
Country of Origin
Perception
9 2 Sales Intent Organisational
Strategic Intent
10 2 Decision
Constraints
Organisation
decision
constraints
Each of the factors with four or more items was validated using confirmatory factor analysis
(CFA). Implied correlations for all the factors were checked for discriminant validity. After
removal of several items, all these models had reasonable goodness of fit: CMIN/DF<3,
GFI>.90, RMSEA<.10 (Byrne (2001). (RMSEA refers to the root mean square error
approximation, GFI to the goodness of fit index, while CMIN/DF refers to the minimum
sample discrepancy divided by the degrees of freedom).
237
Table 8.14(a) - Confirmatory Factor Analysis (CFA) Goodness of Fit Statistics
Factor
No. of
Items
Factor
RMSEA
CMIN/DF
GFI
Number
Items
Removed
Questions
1 Q63 9 Decision
Context
.098 2.99 .921
2
2 Economic
Prosperity
0.000 0.00 1.000
3 Q35 3 Customisation 0.000 0.00 1.000
4 2 Profit Intent 0.000 0.00 1.000
5 3 Competition 0.000 0.00 1.000
6 3 Buyer
Behaviour
0.000 0.00 1.000
7 Q56&Q57 3 Economic
Development
0.000 0.00 1.000
8 6 Country of
Origin
.098 3.00 .959
9 2 Sales Intent 0.000 0.00 1.000
10 2 Decision
Constraints
0.000 0.00 1.000
Factor 1 measures the influence of managerial decision process. It contains nine items:
The overall decision making process
The level of uncertainty in the decision making process
The quality of information in the decision making process
The ability to resolve conflict between different organisational goals
The level of compromise experienced within organisational decision making
The level of confidence to make a decision
The ability to differentiate between alternatives within organisational decision making
The cost-benefit trade-offs in the organisational decision making process
The degree to which decisions are made to face to face or by computer
238
Factor 2 measures the influence of economic prosperity for customisation decision making. A
nation’s economic prosperity (‘economic prosperity’) was found to have an effect on a
decision maker’s choice of markets to target with their food product. A nation’s economic
prosperity manifests itself down at the consumer level in terms of levels of (un)employment
and personal income levels. Thus the two items relating to a nation’s economic prosperity
were employment and income levels. These two factors determine the extent to which
China’s consumers were able to afford an imported packaged food product.
Factor 3 relates to the dependent variable, amount of product customisation. It contains four
items:
The amount (if any) of the total product customisation required for China
The amount of packaging/labelling customisation required for China
The amount of package size customisation required for China
The amount of product content customisation required for China
Factor 4 captures the influence of profit intent within the level of customisation decision
makers to support the organisation’s export initiatives. The relevant items were profit goals
or objectives, and the organisation’s return on investment goals regarding potential exports.
Factor 5 concerns the influence of the level of competition (‘competition’) an exporting
organisation faces when considering new international markets in determining whether and to
what degree they customise their product or sell a standardised product in those international
markets. This variable has three elements: the number of competitors in China both domestic
and from foreign markets; the size of the competitors in China; and the economic conditions
in China, in terms of the size and growth rate of the economy.
Factor 6 captures the influence of Chinese food buying behaviour, capturing three elements:
consumption patterns, dietary habits, and nutrition habits. In any country, consumers exhibit
consumption patterns regarding a certain food item or food group. Certain foods may be a
staple part of a country’s diet (e.g. rice in China) whereas the same product is served as a side
dish in other countries. Further, different consumers have different views of which foods
constitute nutritional value. These consumer views are often influenced by a government’s
239
promotion of the consumption of certain food groups, often to specific target groups (e.g.
school aged children) in an effort to promote healthier eating.
Factor 7 captures the influence of level of economic development in China. The three relevant
elements from the literature were the rates of regional and national economic growth, and
China’s overall stage of economic development and global and regional integration. China’s
economy is not only becoming more integrated within the Asian region, but also within the
rest of the global economy. This influences not only China’s ability to grow her economy but
also her ability to create wealth for the population. This in turn will influence the types and
amount of (e.g. foreign made) goods that consumers purchase.
Factor 8 captures the influence of country of origin. This is comprised of customer
perceptions of six elements. These are end user consumer perception of: a product/brand’s
country of origin; that country of origin’s reputation for product/quality/freshness; its
reputation for innovation in food product offerings; its reputation for product safety; and its
reputation for food manufacturing expertise.
As her economy industrialises and consumers are becoming confident in the use of
information technology, China’s consumers are increasingly aware of product quality
standards relative to their (country of) origin. Hence exporters from countries for whom
consumers have a favourable perception in food product quality standards have a temporary
competitive advantage in China, whilst those exporters from countries with a less favourable
perception have to work to overcome such perceptions through their marketing
communications and other marketing efforts.
Factor 9 captures the influence of sales intentions, comprised of unit sales goals and market
share goals as set by exporters for each product or product line. These objectives form the
basis on which exporters assess their product (customisation/standardisation) performance in
the market.
Factor 10 captures the influence of decision constraints. Exporters are faced with various
constraints when making export product decisions. Two significant constraints exporters face
in the product customisation/standardisation decision are time pressure and completeness of
(market) information.
240
These decision constraints represent a series of possible decision making dilemmas. For
instance, the product decision can be time consuming. However the opportunity to enter a
foreign market is usually time-bound. A decision that is too hasty may result in costly
(product related) mistakes. A decision that is too thorough but has taken too long to reach
may have resulted in competitors getting a foothold in the market and establishing a
strong(er) market presence. Here, we again defer to the comments of Moini (1995) regarding
the role of time in implementing managerial decisions in export marketing.
A summary of the factors and their related questions in the survey instrument is provided
below.
Table 8.14 (b) – Summary of Factor Items
Factor
Number
Factor Item Description Question(s)
1 Managerial Decision Process Q2-5
2 Economic Properity Q13, Q14
3 Amount of Product Customisation Q24-74
4 Profit Intent Q38
5 Level of Competition Q6, Q19,
Q47-52
6 Food Buying Behaviour Q23,
Q29-31
7 Level of Economic Development Q13, Q14,
Q53-62
8 Country of Origin Q20-22, Q41-46
9 Sales Intentions Q36, Q37
10 Decision Constraints Q73, Q74
241
Validity
Face Validity
Face validity examines whether the items on measurement scales measure what they are
supposed to measure (Nevo, 1985). In this study, face validity is provided for all scales
developed by the reported qualitative studies reported in chapter five. The 11 in-depth
interviews conducted with packaged food and beverage export decision makers enabled us to
refine the variables in the conceptual model presented in chapters five and six.
Discriminant Validity
Discriminant validity is established when two variables are theorised to be uncorrelated, and
the scores obtained by measuring them are empirically found to be so (Cavana, Delahaye, and
Sekaran, 2001). Checks of the implied correlations in this study showed that the correlations
for each item were stronger within the factor to which it was assigned than to any other
factor. This means that there is discriminant validity in that the factors do not overlap.
Reliability
According to Pallant (2005, p. 90) the Cronbach’s alpha coefficient of a scale should be
greater than 0.7. Eight of the aggregate measures achieved an alpha score higher than 0.7.
(Table 8.15), with product C/S decision constraints marginally below this at = .68, and
sales intent also slightly below this at = .66.
With the validity and reliability of these scales assured it was appropriate for scales to be
constructed by averaging the responses to all the items represented in each scale. The
resulting descriptive statistics for these summated scales are also shown in Table 8.15.
242
Table 8.15 - Summary of Independent and Moderating Variables: Descriptive Statistics
and Reliability (Cronbach’s Alpha) for Summated Scales
N
Minimum Maximum
Mean Std. Dev
Cronbach’s Alpha
Number items
Level of customization
210 2.25 6.5 5.436 0.63541
0.78
4 /standardisation Decision Context 210 1.22 6.44 5.045 0.80808
0.92
9 Economic development of China 210 1 7 5.137 1.13069
0.84
3 Food related buyer behaviour 209 2 7 5.354 0.86547
0.84
3 Level of competition in China 209 1.67 7 4.439 1.00829
0.8
3 Product C/S Decision Constraints 210 1 6.5 4.595 1.11449
0.68
2 Profit Intent 210 2.5 7 5.748 0.8821
0.75
2 Economic prosperity in Chinese economy 210 1 6 2.474 1.122
0.79
2 Sales Intent 210 1 6.5 4.236 1.2151
0.66
2
Country of origin effect (COO) 210 1.33 6.83 5.208 0.77723
0.82
6 Valid N (listwise) 208
In the next section these scales are used to consider the C/S decision-making process relative
to different characteristics of respondents and of their companies.
The Impact of Respondent and Company Characteristics
In this section, determination is given to whether the aggregate measures constructed above
have an association with the following:
243
Company characteristics:
Q76: Exporting duration
Q77: Exporting duration to China
Q78: Location of headquarters
Q79: Conduct of export activity from home country/head office?
Q81: Gross annual turnover
Q82: Contribution to revenue from export sales
Q83: Number of employees
Respondent characteristics:
Q84: Gender
Q85: Age
Q86: Years of experience in export decision making
The distributions of the above scales are characterized by some skewness, indicating that it is
not appropriate to make an assumption of normality. As a result, a nonparametric Kruskal-
Wallis test was used to test hypothesized associations. Table 8.16 shows the p-values
associated with each chi-square test. In view of the large number of tests performed only p-
values of below .01 are regarded as significant.
244
Table 8.16: P-Values for Krukal-Wallis Tests (Chi-Square Statistics)
Only five significant relationships were found between the scales and company
characteristics. These are: profitability intent, buyer behaviour, level of experience exporting
to China, China’s level of economic development, and company size.
Influence on product C/S decision: Factors as per Table 8.13
Question Number Degree of Custo
m
Decision Context
Economic Develop
Buyer
Behaviour
Comp
Decision
Constraints
Profit
Intent
Economic Prosperity
Sales Intent
COO
76. Export duration df=3
.440 .959 .530 .322 .13
5
.037 .645 .395 .31
9
.224*
77. China export duration df=4
.986 .434. .008
*
.543 .01
4
.008* .319 .151 .94
3
.586
78.Location of co. HQ df=6
.742 .271 .748 .765 .58
8
.448 .020 .103 .08
4
.215
79. China export from HQ? df=1
.018 .660 .596 .420 .56
2
.933 .356 .595 .78
0
.624
80. Where else is export conducted
from? df=4
.376 .910 .845 .676 .55
4
.061 .971 .114 .42
6
.874
81.Co. gross annual T/O df=4
.088 .881 .531 .186 .05
9
.574 .714 .053 .52
8
.414
82. Co. revenue contribution from export: % df=4
.971 .246 .507 .350 .03
1
.681 .477 .440 .38
6
.108
83.Co. no. of employees df=2
.927 .656 .870 .007
*
.65
2
.020 .258 .112 .95
5
.252
84. Respondent gender
df=1
.151 .184 .688 .228 .02
8
.238 .022 .027 .33
6
.098
85. Respondent age
df=2
.183 .264 .041 .150 .03
2
.796 .005
*
.056 .11
8
.147
86. Respondent
experience df=3
.568 .355 .019 .080 .06
5
.741 .430 .308 .39
2
.263
245
Table 8.17: The Relationship Between Age and the Importance of Profitability Intent
(PI) (on scale of 1 = ‘ ‘ and 7 = ‘ ‘)
Table 8.17 (above) suggests that profitability intent is more important for younger and older
people in the customisation decision, less important for middle aged people. Specifically, the
current study finds that the importance of an exporting organisation’s profitability is
dependent on the respondent’s age. In particular, people in the 36-45 age range seem to
regard profitability less important than other strategic intent factors. A review of the literature
failed to provide a plausible reason for this finding.
Table 8.18: The Relationship between Company Size and the Importance of Buyer
Behaviour
(Q95)staff Mean N Std. Deviation
1-250 employees
5.3592
142
.83847
251-500 employees 5.2121 55 .94578
501+ employees 5.9697 11 .54680
Total
5.3526 208 .86728
Table 8.18 suggests that buyer behavior is most important in the product C/S decision for
very large companies – those with more than 500 employees. Larger export organisations
regard food related buyer behaviour as more important than smaller organisations (chi-square
= 9.95, df = 2, p = .007, see Table 7.15 above). These organisations have larger product
research and development budgets that they allocate to better understanding of end user
consumers. Smaller organisations with limited resources seem likely to focus their research
Age Mean N Std. Deviation
18-35 years
5.8676
34
.83764
36-45 years 5.5361 83 .88270
46-55 years 5.8925 93 .86869
Total
5.7476
210
.88210
246
further back within the international distribution channel, that is, to research retailers,
wholesalers, agents or food brokers. Smaller export marketers would appear to rely on their
intermediaries to conduct research into end use buying behaviour on their behalf (Hart and
Tzokas, 1999).
This study also measured for the age of the decision maker. Table 8.19 suggests that the
majority (83.8 per cent) of export food product C/S decision makers are aged between 36 and
55 years of age.
Table 8.19: Age of the Decision Maker
(Q85)Age Mean N Std. Deviation
18-35
5.8676
34
.
83764
36-45 5.5361 83 .99270
46-55 5.8925 93 .86869
Total
5.7476
210
.88210
In addition it seems that the importance of decision constraints is low for companies that
have just started exporting to China and for companies that have been exporting to China for
more than 15 years. It seems from Table 8.16 above, that China’s current level of economic
development (chi-square = 13.904, df = 4, p = .008) is more influential for organisations that
have been exporting packaged food longer. However, decision consequence (chi-square =
13.880, df = 4, p = .008) is more influential for organisations that have been exporting
packaged food for between 5 and 15 years.
247
Table 8.20: Experience with Export to China, influence of China’s Economic
Development, and Decision Constraints
A possible conclusion from these results is that as organisations gain experience in China
markets, they shift their attention from simply recovering their economic costs to building
sustainable long-term profits in their foreign markets. A nation’s rate of economic growth
provides impetus for this shift in organisational intent. This finding is consistent with the
work of Humphrey, et al., (2004) and Betsch, et al., (2004).
Table 8.20 suggests that constraints will be most important for companies that have just
started exporting and for those who have been exporting for a long time (e.g. more than 15
years). It is easily seen that newly exporting countries may operate under significant
constraint due to lack of previous experience, cash flow and capitalisation problems, and
Economic Decision Development Constraints (Q86) Duration of export experience to China < 2 years Mean 4.8276 4.1379 Std. Deviation 1.4299 1.05133 N 29 29 3-5 years Mean 4.9716 4.3617 Std. Deviation 0.96517 1.20552 N 47 47 6-10 years Mean 5.1013 4.8418 Std. Deviation 1.102164 0.91828 N 79 79 11-15 years Mean 5.375 4.8125 Std. Deviation 1.27475 1.13616 N 40 40 15 + years Mean 5.9231 4.2692 Std. Deviation 0.75955 1.46651 N 13 13 Total Mean 5.1378 4.5938 Std. Deviation 1.13417 1.11299 N 208 208
248
other constraints. Why such constraints should apply for long time exporters is less easy to
understand, and may require further research.
Another important finding of this study is the number of years of product C/S decision
making among the sample of export decision makers. The results presented in Table 8.21
reveal the majority of export decision makers had between 11-15 years’ experience.
Table 8.21: Decision Constraints and Years of Export Product C/S Decision Making
Experience
Decision making
experience Decision constraints
Mean N Std. Deviation 0-5 years 4.9231 13 0.99697
6-10 years
4.1250 52 1.26752 11-15 years 4.6098 82 1.01539 15 + years 4.8917 60 1.00882 Total 4.5894 207 1.11389
Hypothesis Testing
In chapter six, following an extensive review of the literature and the conduct of a qualitative
study, this study delineated independent variables thought to be related to the dependent
variable of level of product customisation, and proposed an initial explanatory model. A test
of the hypotheses H1 – H7 (listed again here) derived from that model is conducted, and
present the findings in Table 7.22 and 7.23 below. Two of these hypotheses (H2 and H4)
relate to Strategic Intent (sales and profit) and Assessments (e.g. competition and
constraints), while three hypotheses (H1, H3 and H6) relate to contextual variables such as
the decision context, country of origin effects and buying behaviour. The fifth hypothesis
relates to the underlying prosperity and development of the Chinese economy, while the
seventh relates to the impacts of primary buyers/distributors.
249
H1: Level of congruity between home and target market consumer behaviour and culture is positively
related to degree of product standardisation. (We expect a positive correlation between product
customisation and level of cultural difference between the exporting market and China)
H2: The greater perceived reliance on export markets for organisational performance results the greater
will be the need to customise products for export. We expect a positive correlation between
customisation and dependence on exports for organisational performance
H3: A high regard within an export market for the country of origin of an imported product as
perceived by the manager is positively related to degree of product standardisation. In other words, we
expect a positive correlation between customisation and the manager’s perception of the export
market’s regard for country of origin ‘
H4: The level of competition perceived by an export decision maker within the export target market
(i.e. China) is positively related to degree of product customisation.
H5: Favourable economic conditions such as a high level of economic development within the target
country are positively related to degree of product customisation
H6: Export decision makers who make product customisation/standardisation decisions in groups are
likely to make greater changes to export products than those who make the same decision individually
i.e. we expect a positive correlation between product customisation and the number of decision makers
in the decision making team
H7: We expect a positive correlation between product customisation and intermediary involvement in
the product C/S decision. Export decision makers who make product customisation/standardisation
decisions are likely to be strongly influenced by the advice that import/export intermediaries provide
the export decision maker. We also expect that intermediaries will favour customisation strategies.
250
Table 8.22: Pearson Correlations for Summative Scales
Corre la tions
1 .453 ** .325 ** .441 ** .375 ** .381** .242 ** .219 ** .330 ** .562 **.000 .000 .000 .000 .000 .000 .001 .000 .000
210 210 210 209 209 210 210 210 210 210.453 ** 1 .437 ** .417 ** .396 ** .348** .331 ** .136 * .353 ** .586 **.000 .000 .000 .000 .000 .000 .049 .000 .000210 210 210 209 209 210 210 210 210 210
.325 ** .437 ** 1 .231 ** .328 ** .254** .305 ** .193 ** .295 ** .386 **
.000 .000 .001 .000 .000 .000 .005 .000 .000
210 210 210 209 209 210 210 210 210 210
.441 ** .417 ** .231 ** 1 .296 ** .212** .213 ** .115 .168 * .490 **
.000 .000 .001 .000 .002 .002 .097 .015 .000209 209 209 209 208 209 209 209 209 209
.375 ** .396 ** .328 ** .296 ** 1 .240** .149 * .197 ** .318 ** .440 **
.000 .000 .000 .000 .000 .032 .004 .000 .000209 209 209 208 209 209 209 209 209 209
.381 ** .348 ** .254 ** .212 ** .240 ** 1 .073 .231 ** .256 ** .299 **
.000 .000 .000 .002 .000 .291 .001 .000 .000210 210 210 209 209 210 210 210 210 210
.242 ** .331 ** .305 ** .213 ** .149 * .073 1 .073 .033 .303 **
.000 .000 .000 .002 .032 .291 .292 .630 .000210 210 210 209 209 210 210 210 210 210
.219 ** .136 * .193 ** .115 .197 ** .231** .073 1 .262 ** .120
.001 .049 .005 .097 .004 .001 .292 .000 .084210 210 210 209 209 210 210 210 210 210
.330 ** .353 ** .295 ** .168 * .318 ** .256** .033 .262 ** 1 .305 **
.000 .000 .000 .015 .000 .000 .630 .000 .000210 210 210 209 209 210 210 210 210 210
.562 ** .586 ** .386 ** .490 ** .440 ** .299** .303 ** .120 .305 ** 1
.000 .000 .000 .000 .000 .000 .000 .084 .000210 210 210 209 209 210 210 210 210 210
Pears on Corre la t ionSig . (2 -ta i l ed )NPears on Corre la t ionSig . (2 -ta i l ed )NPears on Corre la t ionSig . (2 -ta i l ed )N
Pears on Corre la t ionSig . (2 -ta i l ed )NPears on Corre la t ionSig . (2 -ta i l ed )NPears on Corre la t ionSig . (2 -ta i l ed )NPears on Corre la t ionSig . (2 -ta i l ed )NPears on Corre la t ionSig . (2 -ta i l ed )NPears on Corre la t ionSig . (2 -ta i l ed )NPears on Corre la t ionSig . (2 -ta i l ed )N
Lev e l o fc us tom is a t ion /s tanda rd is a t ion
In t ri ns ic d if fi c u lty o fdec is i on m ak ing
Ec onom i cdev e lopm en t o f Ch ina
Food re la ted buy e rbehav iou r
Ec onom i c c om pe ti ti on
Dec is i on Cons tra i n ts
Pro f itab i l i ty In ten t
Ec onom i c p ros pe ri ty o fCh ines e ec onom y
Sa les In ten t
Coun try o f o rig i n e f fec t
Lev e l o fc us tom is ati on /s tanda rd i s a ti on
In t ri ns icd if fi c u lty o f
dec is i onm ak i ng
Ec onom i cdev e lopm en t
o f Ch ina
Food re la tedbuy e r
behav iou rEc onom i c
c om pe t it ionDec is i on
Cons tra in tsPro f itab i l i ty
In ten t
Ec onom i cp ros pe rityo f Ch ines eec onom y Sa les In ten t
Coun try o fo ri g in e ffec t
Co rre la t ion is s ign i fi c an t a t the 0 .01 lev e l (2 -ta i l ed ).**.
Co rre la t ion is s ign i fi c an t a t the 0 .05 lev e l (2 -ta i l ed ).*.
The Pearson Correlations shown in Table 8.21 can be used to provide an initial test of the
above hypotheses. There is in fact weak to moderate support for all these hypotheses in that
all the scales have a significant positive correlation with level of customisation.
When regression analysis was conducted it was found that 43.5 per cent of the variation in
product C/S can be explained by the nine variables. However, when two outliers were deleted
the R-Square dropped to 37.8%. A residual analysis suggested that the regression
assumptions were reasonably valid after the deletion of these two outliers. As shown in Table
8.22, some of the scales do not have a significant relationship with product C/S when the
other scales are included in the model. This means that these variables do not have a direct
influence on export product C/S decisions.
251
Table 8.23: Regression Analysis
Table 8.22 reports regression of the nine IVs against the DV, level of product customisation.
The regressions show that Country of Origin has the strongest impact on product
customisation in that it has the highest beta value. Buyer Behaviour and Decision Constraints
also have a significant but smaller impact on product customisation. All the other scales are
correlated with one or more of these three factors, explaining why they have a significant
correlation with customisation. However there is no direct relationship between these six
scales and customisation.
Coefficientsa
Model Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
Correlations Collinearity Statistics
B
Std.
Error Beta
Zero-
order Partial Part Tolerance VIF
1 (Constant) 2.250 .320 7.034 .000
Decision Context .006 .059 .007 .094 .925 .400 .007 .005 .552 1.813
Economic development of
China
.006 .035 .012 .184 .854 .297 .013 .010 .725 1.379
Food related buyer
behaviour
.110 .046 .156 2.399 .017 .397 .169 .135 .750 1.333
Economic competition .051 .039 .084 1.303 .194 .339 .093 .073 .766 1.305
Decision Constraints .111 .034 .206 3.305 .001 .385 .230 .186 .815 1.228
Profitability Intent .054 .042 .080 1.284 .201 .247 .091 .072 .818 1.223
Economic prosperity of
Chinese economy
.040 .032 .076 1.276 .204 .223 .091 .072 .887 1.128
Sales Intent .049 .032 .098 1.547 .124 .291 .110 .087 .785 1.274
Country of origin effect .229 .064 .272 3.583 .000 .503 .248 .202 .551 1.816
a. Dependent Variable: Level of customisation/standardisation
252
The above regression was then rerun as a hierarchical regression with the scales relating to
the Chinese economy (H5) entered at stage 1, the scales relating to strategic assessment and
intent (H2 and H4) entered at stage 2 and the variables relating to decision context, buyer
behaviour and country of origin (H1, H3 and H6) entered at stage 3. The two scales relating
to the Chinese economy explained 13% of the variation in the degree of product
customisation, the four scales relating to strategic assessment and intent explained an
additional 17.5% of the variation in the degree of product customisation and the remaining
three scales explained an additional 13% of the variation in the degree of product
customisation. Although the Chinese economy variables were significant at stage 1 they were
no longer significant at stage 2, and, although the strategic assessment and intent variables
were significant at stage 2 they were no longer significant at stage 3.
The structural model presented in Figure 8.1 clarifies these relationships further.
Interpretation of Findings
Model Summary
Model
R R Square
Adjusted R
Square
Std. Error of
the Estimate
Change Statistics
R Square
Change F Change df1 df2 Sig. F Change
d
i
m
e
n
s
i
o
n
0
1 .360a .130 .121 .59644 .130 15.301 2 205 .000
2 .553b .305 .285 .53821 .175 12.688 4 201 .000
3 .660c .435 .410 .48892 .130 15.192 3 198 .000
a. Predictors: (Constant), Economic prosperity of Chinese economy, Economic development of China
b. Predictors: (Constant), Economic prosperity of Chinese economy, Economic development of China, Profitability Intent, Decision Constraints, Economic competition, Sales Intent
c. Predictors: (Constant), Economic prosperity of Chinese economy, Economic development of China, Profitability Intent, Decision Constraints, Economic competition, Sales Intent,
Food related buyer behaviour, Intrinsic difficulty of decision making, Country of origin effect
253
The correlation analysis in Table 8.21 and the regression analyses in Table 8.22 show
significant relationships between product customisation and the other variables, supporting
the first six hypotheses. However, for several of the variables there were mediation effects.
This is confirmed in the regression analysis shown in Table 8.22 above. The multi-colinearity
statistics in this table suggest that no predictor variables are redundant, although some do not
have a direct relationship with Customisation. In fact a hierarchical regression analysis
suggested that the effect of the Chinese economy variables were mediated by the strategic
assessment and intent variables, which in turn were mediated by the country of origin, buying
behaviour and decision context scales.
Country of Origin had the strongest impact on the degree of product customisation in Table
8.22. That country of origin (COO) is the strongest predictive variable is not surprising given
the vast amount of attention given by scholars to this variable in the literature. Whilst Chinese
economic conditions and buying behaviour and organisational intent do not have as high a
beta value, they too are important predictors of export product customisation.
The following structural model extends the view of how all the variables relate to each other.
Structural Equation Model (SEM)
Based on the above regression analysis, a SEM was constructed for the data as illustrated in
Figure 8.1 below. This model describes the data well (CMIN/DF = 1.966, CFI = .939,
RMSEA = .068), providing considerable refinement of the model postulated in Chapters 6
and 7. This SEM also explains 32 per cent of the variation in the dependent variable (the
degree of product customisation). The current study illustrates the more important links (with
standardised weights of above 0.3) using thicker lines. This model depicts the influences on
actual product customisation decisions for the export of packaged food products to China.
Figure 8.1: Influences on the Export Product Customisation/Standardisation Decision
for Packaged Food Products to China.
254
Table 8.24 quantifies the effect of each variable on every other variable. Of particular
importance is the bottom line which quantifies the effects on Customisation.
Table 8.24: Total Standardised Effects for Structural Model
Economic
Development
Profit
Intent Competition
Decision
Context
Economic
Prosperity
Buying
Behaviour
Sales
Intent
Country
Of
Origin
Decision
Constraints
Profit Intent .300 .000 .000 .000 .000 .000 .000 .000 .000
Competition .310 .000 .000 .000 .000 .000 .000 .000 .000
Decision Context .416 .212 .249 .000 .000 .000 .000 .000 .000
Economic
Prosperity .197 .000 .000 .000 .000 .000 .000 .000 .000
Buying
Behaviour .177 .066 .231 .311 .000 .000 .000 .000 .000
Sales
Intent .289 .000 .191 .000 .179 .000 .000 .000 .000
Country
Of Origin .267 .102 .333 .484 .000 .279 .000 .000 .000
Decision
Constraints .170 .069 .104 .325 .021 .000 .120 .000 .000
Degree
Product
Customisation
.166 .064 .182 .304 .005 .277 .030 .343 .251
Economic Development
of China
Degree of Customisation
Decision Context
Country of Origin Effects
Buying Behaviour
Decision Difficulty
Competitive Assessment
Sales Intent
Profit Intent
Economic Prosperity in China
0.20
0.27
0.19
0.21
0.25
0.31 0.18
0.34
0.28
0.30
0.18
Perceptions of the Chinese
Economy
Strategic Assessment
and Intent
Buying Behaviour COO Perception
Decision Context
0.19
Degree of Custom- isation
0.31 0.40
0.15
0.32 0.17
0.12
0.25
255
The above table suggests that the effect of Country of Origin on Customization decisions is
indeed very large. However, when indirect effects are taken into account, Decision Context is
also very important, followed by Food Buyer Behaviour, Decision Constraints, Level of
Competition and Chinese Economic Development. The least important factors are the Level
of Economic Prosperity in China, Profit Intent and Sales Intent.
Viewed from left to right, the headings at the bottom of Figure 8.1 appear to reflect an
ascending order of importance of the respective variables in terms of their evident influence
upon the amount of product customisation undertaken (the DV on the right of the figure).
From left to right, the two variables relating to perception of the Chinese economy are less
influential than variables pictured to the right. Similarly, the various company strategic
assessments and intent related variables (with the exception of ‘decision difficulty’) are of
less importance than variables further to the right.
Two of these three most influential variables (in order of importance: COO effects, and
consumer culture) are essentially what marketers would understand as elements of ‘consumer
behaviour’- essentially product related beliefs and behaviours – which relate to packaged
food consumption in China. It would be no surprise to find that customers - not the (often
distant) perceptions or strategic assessments and intent of marketing ‘suits’ in their offices -
which exert the strongest influence on how much these export products are actually
customised.
In conceptual terms this merely underscores an ongoing relevance of the ‘marketing concept’,
which suggests that customers and the satisfaction of their needs are central to success in the
marketing enterprise. It is also conceptually reasonable that the ‘decision constraint’ variable
would exert its strongest influence on the COO effects variable, while also contributing to
decision making process and consumer culture, the second and third most influential
variables on customisation. This is entirely consistent with the decision making literature
reviewed, in that in the context of high decision difficulty, decision makers are likely to fall
back on ‘safe’ knowledge they may rely upon (such as well-established COO related effects),
probably erring on the side of conservatism.
256
Further research may establish whether ‘conservatism’ in this context translates into greater
or lesser amounts of customisation, but with the evident strength of COO effects (and with
consumer culture also being a direct influence), it is suggested that a conservative instinct
may be to customise more, rather than less.
Test of Invariance Based on Nature of Primary Buyer or Distributor
(Hypothesis 7)
This study tested whether the presence or absence of intermediaries in the buying process was
important in determining the amount of product customisation. This was the seventh
hypothesis. The qualitative work had suggested that the presence or absence of these
intermediaries could be salient in the CSD decision, in the direction of greater intermediary
involvement encouraging greater customisation. Given the high involvement of the Chinese
government in food importation, it appears that the intermediary most likely to be involved is
some form of government agent. Hence this analysis uses Chinese government presence as
primary buyer or distributor as a cue to significant intermediary involvement.
Based on Question 10 in our questionnaire, the variable ‘nature of primary buyer or
distributor’ has been constructed, where a value of one means that there is some sort of
government involvement in the product customisation decision. For example:
Primary buyer/distributor of packaged food - Federal/National government authority
Primary buyer/distributor of packaged food - State/Provincial government authority
Primary buyer/distributor of packaged food - Local government authority
Primary buyer/distributor of packaged food - State owned enterprise
Using scales, an attempt to test whether the relationships shown in Figure 8.1 are moderated
by this variable A Model Invariance test using Q16a (Participation of buyer//distributor in
development) shows a significant difference in the model weights when the primary
Buyer/Distributor is involved in the development (Chi-square = 33.1, df = 19, p = .0234).
This means that Intermediary Advice moderates the model shown above.
257
Table 8.23: A Model of Invariance Using Standardised Coefficients
Standardised Coefficients Primary Buyer/ Distributor
Involved in Development
Primary Buyer/ Distributor
Not Involved in Development
(*** p<.001)
Estimate
p-value Estimate p-value
Profit Intent <--- Economic Development China .273 *** .359 .001
Competition <--- Economic Development China .197 .019 (a).560 ***
Economic Prosperity in
China <---
Economic Development China .267 .001 .063 .597
Decision Context <--- Economic Development China .209 .009 (b).492 ***
Decision Context <--- Competition (d).313 *** .070 .512
Decision Context <--- Profit Intent .156 .046 .262 .006
Sales Intent <--- Economic Prosperity in China .203 .014 .183 .085
Buyer Behaviour <--- Decision Context .282 *** .428 ***
Buyer Behaviour <--- Competition .175 .040 .113 .322
Sales Intent <--- Economic Development China .194 .020 .129 .313
Sales Intent <--- Competition .142 .080 .328 .010
Decision Constraints <--- Sales Intent .180 .027 .077 .498
CountryOrigin <--- Decision Context .366 *** .415 ***
CountryOrigin <--- Buyer Behaviour .264 *** .251 .009
DecConstraints <--- Decision Context .249 .002 .353 .002
CountryOrigin <--- Competition .187 .011 .239 .010
customisation <--- Decision Constraints .241 .001 .170 .045
customisation <--- CountryOrigin .252 .003 (c).554 ***
customisation <--- Buyer Behaviour .208 .013 .183 .056
Of particular note, are the following observations:
a) The link from economic development to competition is stronger when the Primary Buyer/
Distributor is not involved in the development.
b) The link from economic development to decision context is stronger when the Primary
Buyer/ Distributor is not involved in the development.
c) The link from country of origin to customisation is stronger when the Primary Buyer/
Distributor is involved in the development.
258
d) The link from competition to decision context is stronger when the Primary Buyer/
Distributor is involved in the development.
Collectively, our findings can be summarised in Table 8.24.
Table 8.24 – Summary of Findings
Hypothesis Finding H1: Level of congruity between home and target market consumer behaviour and
culture is positively related to degree of product standardisation. Supported
H2: The greater perceived reliance on export markets for organisational
performance results the greater will be the need to customise products for export. Supported
H3: A high regard within an export market for the country of origin of an imported
product as perceived by the manager is positively related to degree of product
standardisation.
Supported
H4: The level of competition perceived by an export decision maker within the
export target market (i.e. China) is positively related to degree of product
customisation.
Supported
H5: Favourable economic conditions such as a high level of economic
development within the target country are positively related to degree of product
customisation
Supported
H6: Export decision makers who make product customisation/standardisation
decisions in groups are likely to make greater changes to export products than
those who make the same decision individually i.e. we expect a positive
correlation between product customisation and the number of decision makers in
the decision making team
Supported
H7: We expect a positive correlation between product customisation and
intermediary involvement in the product C/S decision. Supported
While these findings suggest further directions for research – for example, exploring the
nature and dynamics of the relationships evident between intermediary involvement, stage of
economic development, decision context, COO and extend of customisation, this study
asserts the results confirm the seventh hypothesis.
259
Conclusion
In this chapter the present study conducted analysis of the primary data collected. It began by
profiling the respondents to this study. It provided simple descriptive statistics of the key
variables before conducting a two stage factor analysis to validate and measure the variables.
The regression analysis showed the strength of the relationships between variables, and a
hierarchical regression showed that the Chinese economy scales were mediated by the
strategic assessment and intent scale, which were in turn mediated by country of origin
effects, buying behaviour and decision context. It also found a moderating role for
intermediaries. This led to the development of a structural equation model.
The analysis had one major limitation. The size of the sample did not allow the exploratory
and confirmatory factor analyses to be performed on separate data sets. This means that
future research is required in order to further validate the scales used in the analysis.
In chapter nine the effect of the findings of this study in both conceptual and managerial
terms, as well as limitations of the study, and recommendations for future research are
discussed.
260
Chapter 9
DISCUSSION AND FUTURE RESEARCH DIRECTIONS
Introduction
In this final chapter a review of the research in terms of its aims, and the contribution to
knowledge achieved through the attainment of those aims. Further discussion of the empirical
findings, with particular attention to their limitations, and consideration of methodological,
theoretical and managerial implications of these findings is considered. The study offers
theoretical implications and action oriented implications for managers, as well as
recommendations for further research.
The aim of this research has been to model and understand the managerial product
customisation/standardisation (C/S) decision for packaged food products exported to China.
The study has attempted to gain understanding of such decision making, the relevant
influences upon managers in making such decisions, and the relative impact of, and dynamics
amongst, these influences.
In chapter one, this study looked at the export imperative and the importance of exporting to
many organizations of varying sizes. It defined product customisation and standardisation and
settled on a definition that the researcher felt was appropriate. In addition, the study explained
why such managerial decision making is important, namely because such decision making
led to a refined product offering, that was suitable for export to China. In chapter two, the
researcher introduced China, her markets, segmentation, consumers, cultural values and the
importance of these factors in the context of food product marketing to China. This study
examined the distinctive meaning that food consumption and nutrition plays as a cultural
factor in Chinese society, as well as the role of the Chinese regulatory context. The key
variables for consideration which emerged from this review of evidence termed ‘culture and
buyer behaviour’.
261
Contribution
Following close examination of relevant literature, a qualitative study was undertaken which
began a process of engagement with export practitioners. The evidence from the literature,
with findings from the qualitative work, allowed us to propose of an initial simple model of
influences upon managerial product C/S decision making. Then through a major empirical
study an SEM was developed. This is essentially an integrated portrayal of the various
independent variables isolated during earlier stages of analysis, relative to the dependent
variable - the degree of export product customisation actually undertaken - and to each other,
as perceived by practitioners focussed on recent, specific such decisions.
Hence, the primary contribution of this thesis has been to provide export decision makers
with an integrated, evidence based modelling which not only identifies the relevant variables
that their peers say affect export packaged food product C/S decisions (insofar as they are
targeted towards China markets), but also the relative strength of these variables on decision
making. Critically, the model represents a benchmark which can facilitate reflection, not just
upon how an individual manager currently makes such decisions relative to peers, but how
managers may choose to make them in the future. A conceptual model has been proposed,
refined, extended and empirically tested, describing how export managers report they actually
make product C/S decisions, during the development of packaged food products for export to
China.
An additional contribution of this study is that it is the first study of its kind to use structural
equation modelling for adapting packaged foods for export into China. In addition, the use of
exploratory factor analysis revealed that the combination of variables that was used to
develop the questionnaire have not been previously grouped this way before. A further
contribution is the questionnaire itself. The questionnaire used to collect data for this research
study can easily be adapted for either a different product in the same export markets, or the
same products in a different export market.
At a time when the research and development costs for newly developed consumer goods are
increasing (DiMasi, Hansen and Grabowski, 2003), and given a high rate of new product
failure (Dunphy and Herbig, 1995; Motameni and Shahrokhi, 1998), consumer goods
262
manufacturers are looking for avenues to increase the likelihood of new export product
success. When those products are manufactured to serve both domestic and/or international
markets, the pressure on decision makers to develop and market a product or product line that
meets the markets’ needs intensifies (Leonidou, Katsikeas, and Samiee, 2002).
Evidence concerning consumer ethnocentrism and the country of origin effects (COO) on
consumers’ choice of foreign made or foreign branded goods was reviewed in chapter three,
while research into managerial decision making was considered in chapter four. Specifically,
distinctive aspects of both individual and group decision-making were considered. Chapter
four also focused on the possible role that export intermediaries may play in the food product
C/S decision.
In chapter five a report was presented on the findings from a preliminary qualitative study
with practitioners, a critical step in establishing face validity for the ideas generated from the
review of literature the researcher had undertaken. This study’s initial, very simple
conceptual model was then based on evidence from the literature reviewed, as well as on
findings from the qualitative work. Chapter six presented the research design and
methodologies for the major empirical study undertaken. Chapter seven presented an analysis
of the empirical findings.
It should be noted that strength of the study is its specificity. By limiting the focus to that of
packaged food products targeted at Chinese markets, a range of variables concerning types of
products and characteristics of target markets have been effectively controlled for.
Methodological and Theoretical Implications
The study provides a methodological step forward in research in the area of export new
product development decision making. To move such theory forward it is essential that
research moves past speculation on how such decisions are made, to actual measurement of
relevant decision variables and the dynamics between them. This study has attempted such
work, basing rigorous empirical modelling on rich qualitative data obtained from practicing
professional managers. Therefore, the main theoretical contribution of this study is the
development and empirical validation of a framework upon which to understand the
263
important role that product C/S plays in NPD. The framework combines commercial and
cultural related activities with conventional NPD activities to understand the relative impact
that the product C/S decision has on export marketing performance. This is significant
because there are only a few empirically based studies that investigate product C/S and its
performance. Thus, this study contributes to a better understanding of the underlying
dimensions of product C/S in NPD decisions and export performance.
The present study acknowledges that there are limitations (see below) and that much more
needs to be done. It does provide a methodological precedent for major mixed mode research
work in the area. Of particular significance is the capacity of SEM modelling as demonstrated
here to integrate proposed variables together into a comprehensive empirical model, allowing
consideration of relationships and dynamics between the variables.
Overall, the results of this study supported the first six of the hypotheses developed, while
leaving a puzzle for subsequent research to address concerning the seventh hypothesis.
A major implication of this study is its confirmation of the influence of the key theorised
variables within the very specific context of packaged food product customisation for China,
The mixed findings concerning the role of (government) intermediaries – strongly advocated
by practitioners in qualitative research, but not supported in the empirical study - remains for
resolution by further research. The study found that use of intermediaries is indeed common,
but not that this influences levels of customisation.
Close examination of the SEM developed suggests further theoretical implications. Key
amongst these is the mediating role of COO on other variables such as Buyer Behaviour,
Decision Difficulty and Competitive Assessment. The literature suggests Buyer Behaviour,
for example, would likely have a significant direct effect on the degree of customisation, yet
in the model this effect is completely moderated by COO. Although the directionality of the
effect can be debated, the literature would also indicate a likely direct effect of Decision
Difficulty on degree of customisation/standardisation, this being related to conservatism in
decision making. Yet this factor is completely moderated by COO as well. It is not at present
apparent how COO functions in this moderating role, but the research clearly indicates that it
does moderate these factors in decision making, in this specific context. Similar theoretical
264
issues emerge in considering the moderating role of Decision Context on any effect of Sales
Effect.
Future theory of export NPD needs to come to terms with the absence of any direct or even
moderated influence, from variables which figure quite prominently in the literature of export
NPD/CS, such as variables relating to managerial perceptions of the target (Chinese)
economy - perceived Economic Prosperity and perceived Level of Economic Development.
These have no direct influence on decision making in our model, but are often cited in the
literature as factors for managers to take into account in deciding on appropriate levels of
customisation.
Managerial Implications
There is some agreement between recommendations in the literature concerning factors
which should influence export product C/S decision making, and the empirically supported
picture of actual practitioner usage of various inputs to their decision making.
The data suggests that while packaged food exporters targeting China face particular
challenges regarding Chinese culture, buying and consuming behaviour, COO related and
ethnocentrism type effects, distribution channels, and government regulation, these are not
necessarily different broad categories factors faced by exporters targeting other markets, even
with very different product categories. An alternative view prior to this study would have
been that a different set of factors operated in China than elsewhere in the world where most
of the extant literature base has been developed. The current study has not found support for
this notion. However, the question (addressed below under ‘Recommendations for Further
Research’) still remains concerning the relative weightings and dynamics of the influential
factors on decision making, even if the factors themselves do appear to be similar across
many different international markets.
The study steps towards bridging of the gap between academic theory and actual practices in
export packaged food product decision making, by seeking out and modelling the ‘model in
practise’ actually used by practitioners. The bridging of this gap is seen as important in other
265
areas of business research, including within: the theory of the firm (Bartlett and Ghoshal,
1993); marketing strategy implementation (Noble and Mokwa, 1999); management practices
(Sturdy, 2004); international marketing and foreign direct investment (Rosenzweig, 1994);
leadership (Espedal, 2004); offshore outsourcing (Doh, 2005); and total quality management
(TQM) (Gill and Whittle, 1992).
In general, the above studies suggest that theories developed by business scholars and actual
business practices are often incongruent with each other. What the theory in a given local
area suggests and what business practitioners do, are not always aligned. Correspondingly,
studies have emerged exploring why ideas (theories) and practices are adopted by businesses
and the effect these adoptions have on business performance. Specifically, in management
studies considerable attention has been paid to whether specific theoretical notions are
implemented or whether organisations are simply engaging in ‘rhetoric’ (Applebaum and
Gatt, 1994). Conspicuously absent from the literature however, is an attempt to reconcile
theory related to product development with actual product development management practice
(Zirger and Hartley, 1994). This study contributes a substantial evidence base for such
discussion in the area of packaged food product development for export to China.
The study can also assist decision makers to be deliberate in considering both the extent to
which they customise or standardise their export food products for China, and in weighting
the various factors that influence the decision. This assists export decision makers to allocate
organisational their resources to the aspects of product C/S that need the most attention. The
study should encourage marketers exporting to China to consider the method of decision
making of their peers, as has been benchmarked here. It should also allow consideration of
alternatives in the way these factors are weighted.
Managerial Implications of COO
Given the significant effect that our findings reveal regarding the effect of COO on the
packaged food product C/S decision, and the vast literature on the COO effects in
international consumer goods marketing, the managerial implications of COO on the
packaged foods product C/S warrants further consideration. One possible implication of COO
on product C/S for managerial consideration is the effect that COO has on a product’s brand
266
equity in overseas markets. Brand equity is considered a key indicator of the state of health of
a brand, and its monitoring is believed to be an essential step in effective brand management
(Aaker, 1991). In light of this, Pappu, Quester, and Cooksey (2006) found that the impact of
COO on brand equity occurred where consumers perceived substantive differences between
countries in terms of their product category-country associations. Thus, different brand equity
challenges face managerial decision makers depending on the COO effect of their product in
each foreign country. Similarly, Ahmed, et al, (2004) found that COO matters when
consumers evaluate low-involvement products but, in the presence of other extrinsic cues
(price and brand), the impact of COO is weak and brand becomes the determinant factor. The
challenge here for managerial decision makers stems from the issue of consumers’ level of
involvement in a product purchase. A product that is considered a low involvement purchase
in a (let’s assume) economically developed country, may be a high involvement purchase in a
lesser developed country. What, if any, are the implications of this on a product’s C/S?
Yasin, Noor, and Mohamad (2007) studied the effects of brand's country-of-origin image on
the formation of brand equity. Their findings show that brand's country-of-origin image
influences brand equity, either directly or indirectly, through the mediating effects of brand
distinctiveness, brand loyalty and brand awareness/associations. In doing so, the findings of
the Yasin, Noor, and Mohamad (2007) study have implications for the COO effect on an
export manager’s ability to develop brand loyalty in a foreign country. Without brand loyalty,
there is no brand equity.
Research by Huddleston, Good, and Stoel (2001), found that perceived quality of products
differs with respect to country of origin, product necessity, and consumer ethnocentric
tendency. These findings pose another challenge for export managers regarding their product
C/S decision. In some countries, certain food products are a considered by consumers as a
necessity (e.g. rice in China), whereas different food products in the same country (e.g.
biscuits in China) are considered non-essential. How do managerial decision makers
reconcile the effect of COO and ethnocentrism on the necessity of a product in a given
foreign market? How does this affect their choice of marketing communication strategy?
Because of the growing competition from international firms, consumers’ sensitivity to COO
has become a relevant issue for export product decision makers (Agrawal and Kamakura,
1999). Integrative reviews of previous studies on consumers’ reactions to COO of brands
267
show that consumers tend to infer brand quality from COO as a cue (Peterson and Jolibert,
1995; Verlegh and Steenkamp, 1999). The one question facing managerial decision makers
regarding their product C/S still remains: is COO a valid indicator of objective quality? If so,
in what circumstances and under what conditions?
Limitations of this Research
This empirical study has several limitations. Firstly, the strength of being highly specific in
terms of product category and target market has the obvious downside that findings cannot
automatically be generalised to other target markets or product categories.
Little attention was given within the analysis to a possible cross-cultural dimension in the
local decision making, even though data was collected from respondents covering all
continents. Respondents from South America and Africa were under-represented, making
cross-cultural analysis difficult. Subsequent analysis and research may pursue this matter.
Another limitation concerns the chosen market entry mode, namely export. Whilst the study
explained adoption of this choice of foreign market entry in chapter one, in some cases
packaged food products sold into China arrive there through other entry modes, such as
manufacturing. Would the managerial decision regarding product C/S be different if the
international marketer made the products, say, under licence in China, rather than exporting
them to China from the home country? Given the greater level of organisational resources
required in manufacturing a product in a foreign country compared to exporting it from the
home country base, would this fact influence the managerial decision regarding product C/S,
and if so, how?
The present study used data collected from a convenience sample of food and beverage
exporters attending trade exhibitions at three different locations on three separate occasions.
It is nevertheless possible that the sample may not be representative of the population of food
exporters internationally (Tong and Taylor, 2004). The representativeness aspect of the study
is only as strong as that of the attendance at these exhibitions. These were very large
268
however, and the data suggests diverse, in terms of the originating country of the
attendee/respondents.
As noted, the analysis undertaken had one major limitation. The size of the sample did not
allow the exploratory and confirmatory factor analyses to be performed on separate data sets.
This means that future research is required in order to further validate the scales used in the
analysis.
Despite these limitations, this study asserts that the key findings concerning the factors
influencing the degree of packaged food C/S for export to China provide important insights
into contemporary managerial decision making. This study’s empirical model assists
managers to consider more consciously their managerial decision making behaviour. It is
hoped that the study will enable the development of new packaged food products for export
to China which better reflect the specific needs of the market(s).
Recommendations for Further Research
This research can usefully be extended in terms of the dimensions of location, product
category differences/similarities, including services and industrial products, and in terms of
re-integrating product C/S related decision making into overall export marketing planning
decision making. The present study now considers each of these recommendations in turn.
Location
Future studies could expand the current work by testing the empirical decision model relative
to export planning targeting nations other than China. On a ‘purchasing power of parity’
(PPP) basis, emerging markets such as China now total 44 per cent of the world’s economy.
Indeed, the five largest emerging economies (China, India, Brazil, Indonesia, and Mexico)
already have a combined purchasing power half that of the Group of Eight nations (Kwok,
2007; Samuelson, 2008). Hence, this study asks: would the findings be replicated if the
beliefs of packaged food export managers targeting other emerging economies were studied?
For instance, do the same conditions for customising packaged food for export to China apply
269
for Brazil, India or Turkey? There would be variation in terms, for example, of culture. For
example, none are predominantly Confucian in outlook. But are the same variables taken into
account by these managers, and with the same relative levels of impact? Is there something
about China which makes product customisation either more or less likely than would occur
for export to other emerging economies?
Another reasonable question to ask is ‘does the decision making of exporters in these matters
vary in terms of the factors taken into account, or weightings of influence of these factors,
where export is planned for markets which are more or less developed than China?’ For
example, does the decision making made differ when targeting a highly developed Islamic
economy such as the UAE, or poorer African countries? In the latter case, the answer may
seem obvious (e.g. economic conditions would prohibit cost recovery of expensively
customised offerings in the example of a poor African country. However, the model
presented in this study allows such a ‘hunch’ to be empirically tested, exploring the actual
influences and dynamics at play in the decision. This study can move from speculation to real
measurement to seek answers to questions such as these.
Product Categories
Scholars may consider decision making regarding product categories other than packaged
food in future studies. Packaged food was chosen as the focal product in this study because of
its significance to Chinese culture. Whilst the review of the literature revealed extant studies
in some food product categories, many remain unexplored, both in China and in other
economies around the globe. Replication studies can focus on C/S decision regarding
packaged foods, including beverages (e.g. alcohol - level of alcohol content), or soft drinks -
amount of sugar, syrup, variety of flavours in export market vis-a-vis the domestic market),
or condiments (e.g. flavours, intensity of spiciness).
Other extensions could consider C/S decision making regarding consumer goods such as
clothing, personal health care products, and fashion accessories, all of which appear to lend
themselves to product customisation, and which appear to be influenced by many of the
independent variables relevant to this study (e.g. culture, economics).
270
Services
Whilst this study focussed on the customisation or standardisation of tangible food goods,
future studies may consider the extent to which intangible services may be customised. Many
first world economies such as Australia increasingly rely, or need to rely, on services for a
major contribution towards their Gross Domestic Product (GDP). Much Australian
manufacturing has moved offshore, where labour costs, capital and raw materials are cheaper.
Questions for future research then include: what service elements within particular (service)
industries lend themselves to customisation, and which service elements should be
standardised? Do the views of export service managers on these matters, and the processes
they use for resolving them, concur with the findings of this packaged food products study,
within its very specific and different context?
These questions do of course have both domestic marketing and export marketing relevance.
Research on decision making regarding the customisation of services offerings in say, the
banking or airline industries could prove worthwhile, as evidenced by interest on specifically
Islamic banking services (Ahmad and Haron, 2002; Naser, Jamal, and Al-Khatib, 1999).
Scholars may consider the changing face of customer service standards with a view to
customising elements of service such as to levels of customer involvement, or how service
C/S decision making differs between ‘high touch’ and ‘low touch’ service offerings. Decision
making concerning the customisation or standardisation of on-line services, are also entirely
relevant to international services marketers.
In conceptualising a model for export service C/S in an international context, it is expected
similarities and differences to the model the current study has developed. For instance, some
of the laws governing labelling and packaging for a tangible product may not apply to
services. Country of origin effects on consumers’ perceptions of service offerings has been
little explored (Ferguson, Dadzie, and Johnston, 2008). Since services are usually marketed
with fewer intermediaries (Kotler and Keller, 2012) a conceptual model in the international
service C/S decision seems less likely to include any moderating influence.
Industrial Goods
271
A similar rationale can apply to decision making regarding industrial goods. Whilst industrial
goods tend to be more standardised (Crawford, 2003), for instance, customisation or
standardisation of raw materials, installations, or component (spare) parts are all possible
areas for study. Many industrial products are complex in nature, already relatively highly
customised, engineering intensive and overall, high cost to develop (Hobday, 1998). When
further customisation is necessary it may be very expensive indeed – a spur to the extension
of the research into this sector (Spring and Dalrymple, 2000).
Application of Model to Multiple Marketing Mix Elements
In general, research on export C/S and C/S decision making has dealt with each marketing
mix element independently. Managerial decision makers probably consider export marketing
mix strategies in a more integrated manner, each element (pricing, distribution etc.) being
somewhat dependent on each other. Again, this needs to be established by research, but
future work could attempt to model product and price C/S, or product and promotion C/S
decision making, or indeed all aspects of the mix, for a given export consumer or industrial
product or service, in a more unified way. Such work could take the current conceptual model
and give it a more multidimensional face by application to additional marketing mix factors,
in an integrated way. This is however, a significant research challenge.
NPD Sustainability
Our study has not addressed the issue of NPD sustainability, nor the sustainability of the
product C/S decisions within NPD. Sustainable NPD has recently become an emerging
paradigm in the marketing literature (Pujari, 2006). In light of this, Albino, Balice, and
Dangelico (2009) propose a taxonomy of environmental NPD strategies and define
measurable proxies for sustainable NPD. Indeed, Dangelico and Pujari (2010) show evidence
that environmentally sustainable NPD is an important factor driving organisational growth.
Future research in this area could consider environmentally sustainable NPD and/or product
C/S from the theoretical lens of energy minimisation, materials reduction, and pollution
prevention as identified in the life cycle phases of products
272
Policy Implications for Governments
As noted in chapter 1, national governments support organisations’ export ventures in a
number of different ways, such as government export subsidies, export marketing
consultation services, and international business matching services. The role of marketing
assistance is three-fold. First, it aims to inform exporters of the risk associated with export
marketing and to put that risk into as commercial perspective. Second, it seeks to stimulate
and maintain an organisation’s interest in exporting. Finally, it acts as an external resource to
build knowledge and experience vital for successful export market involvement.
Politicians see government export promotion policy as having a major impact on an
organisation competitive position abroad. Thus, export promotion services should be
considered a resource to an exporting organisation. Further, as many nations face large and
increasing external trade deficits, their governments are looking towards private enterprise to
become more actively involved in export marketing. State, provincial, and national
governments are the largest producers of external information, and therefore these
governments have an important role to perform in providing local organisations with relevant
information necessary to enhance an organisation’s export competitiveness. Where the
present research study becomes relevant beyond its importance to export decision makers, is
that the findings may form the basis of specific consulting advice that governments provide to
export decision makers to increase their likelihood of export success. Government export
marketing assistance is mostly provided in the form of information, and such information can
(ironically) either be standardized or customized. Standardised information is general in
nature, and widely available for secondary sources, whereas customised information is more
specialized, and refers to information gathered through direct customer/market contact, such
as through primary research. This study falls in the latter category.
273
References
Aaby, N.-E., and Slater, S. F. (1989). Management Influences on Export Performance: A
Review of Empirical Literature 1978-1988. International Marketing Review, 6 (4), 7-23.
Aaker, D. (1991). Managing Brand Equity. New York: The Free Press.
Abbott, R. (1997). Food and Nutrition Information: A Study of Sources, Uses, and
Understanding. British Food Journal, 99 (2), 43-49.
Abernethy, M. A., Lillis, A. M., Brownell, P., and Carter, P. (2001). Product Diversity
and Costing System Design Choice: Field Study Evidence. Management Accounting
Research, 12 (3), 261-267.
Abele, S., Bless, H., and Erhardt, K-M. (2004). Social information processing in
strategic decision-making: Why timing matters. Organizational Behavior and Human
Decision Process, 93, 28-46.
Acharya, C., and Elliot, G. (2001). An examination of the Effects of 'Country-of-Design' and
'Country-of-Assembly on quality Perceptions and Purchase Intentions. Australasian
Marketing Journal, 9 (1), 61-75.
Adler, N.J. (1984). Understanding the ways of understanding: cross cultural management
methodology reviewed. Advances in International Company Management, 1, 31-67.
Adler, N. J., Brahm, R., and Graham, J. (1992). Strategy implementation: A comparison of
face-to-face negotiations in the People's Republic of China and the United States. Strategic
Management Journal, 13, 449-466.
Afuah, A. (2000). How Much Do Your Competitors' Capabilities Matter in the Face of
Technological Change? Strategic Management Journal, 21, 387-404.
274
Agbonifoh, B. A., and Elimimian, J. U. (1999). Attitudes of Developing Counties Towards
"Country-of-Origin" Products in an Era of Multiple Brands. Journal of International
Consumer Marketing, 11 (4), 97-116.
Agrawal, J., and Kamakura, W.A. (1999). "Country of origin: A competitive
advantage?" International Journal of Research in Marketing, 16, 255-267.
Ahmad, N., and Haron, S. (2002). Perceptions of Malaysian Corporate Customers
Towards Islamic Banking Products and Services. International Journal of Islamic
Financial Services, 3(4), 13-29.
Ahmed, S.A., and D'Astous, A. (1995). Comparison of country-of-origin effects on
household and organizational buyers' product perceptions. European Journal of Marketing,
29 (3), 35-51.
Ahmed, S. A., D' Astous, A., and Zoutien, S. (1993). Personality Variables and the "Made In"
Concept. In Papadopoulos, N. and L. Heslop (Ed.), Product-Country Images, Impact and
Role in International Marketing. Binghampton: The Hawthorne Press, Inc.
Ahmed, Z. U., Johnson, J. P., Yang, X., Chen, K. F., Han, S. T., and Lim, C. B. (2004). Does
country of origin matter for low involvement products? International Marketing Review, 21
(1), 102-120.
Ailawadi, K. L., Neslin, S. A., and Gedenk, K. (2001). Pursuing the value-conscious
consumer: store brands versus national brand promotions. The Journal of Marketing, 71-89.
Alashban, A. A., Hayes, L. A., Zinkhan, G. A., and Balazs, A. L. (2002). International Brand-
Name Standardization/Adaptation: Antecedents and Consequences. Journal of International
Marketing, 10 (3), 22-48.
Alba, J. W., and Hutchison, W. J. (1987). Dimensions of consumer expertise. Journal of
Consumer Research, 13, 411-454.
Albaum, G., and Tse, D. K. (2001). Adaptation of international Marketing Strategy
275
Components, Competitive Advantage and Firm Performance: A Study of Hong Kong
Exporters. Journal of International Marketing, 9 (4), 59-81.
Albino, V., Balice, A., and Dangelico, R. M. (2009). Environmental strategies and
green product development: an overview on sustainability‐driven companies. Business
Strategy and the Environment. 18 (2). 83-96.
Alden, D. L., Steenkamp, J.-B. E. M., and Batra, R. (1999). Brand positioning through
advertising in Asia, North America, and Europe: The role of global consumer culture.
Journal of Marketing, 63 (January), 75-87.
Alge, B. J., Wiethoff, C., and Klein, H.J. (2003). When does the medium matter?
Knowledge building experiences and opportunities in decision-making teams.
Organizational Behavior and Human Decision Process, 9, 26-37.
Allen, M. W., Gupta, R. and Monnier, A. (2008). The Interactive Effect of Cultural
Symbols and Human Values on Taste Evaluation. Journal of Consumer Research 35,
(2) 294-308.
Almonte, J., Falk, C., Skaggs, R., and Cardenas, M. (1995). Country of Origin Bias Among
High Income Consumers in Mexico: An Empirical Study. Journal of International Consumer
Marketing, 8 (2), 27-44.
Al-Sulaiti, K., and Baker, M. J. (1998). Country of Origin Effects: A Literature Review.
Marketing Intelligence and Planning. 16 (3). 150-199.
Amato, L. H., and Wilder, R. P. (2004). Global Competition and Global Markets:
Some Empirical Results. International Business Review, 13, 401416.
Ambler, T. (1994). Marketing's Third Paradigm: Guanxi. Business Strategy Review,
5 (4), 69-80.
Ambler, T. (2000). Marketing and the Bottom Line: The New Metrics of Corporate
Wealth. London, UK: Prentice Hall/Financial Times.
276
Ambler, T., Kokkinaki, F., and Puntoni, S. (2004). Assessing Marketing Performance:
Reasons for Metrics Selection. Journal of Marketing Management, 20 (3/4), 475-498.
Ambler, T., Styles, C., and Wang, X. (1999). The Effect of Channel Relationships and
Guanxi on the Performance of Inter-Province Export Ventures in the People's Republic of
China. International Journal of Research in Marketing, 16, 75-87.
Ampuero, O. (2007). The Role of Packaging in Positioning an Orange Juice. Journal of
Food Products Marketing, 13 (3), 21-48.
Ampuero, O., and Vila, N. (2006). Consumer perceptions of product packaging. Journal
of Consumer Marketing, 23 (2), 100-112.
Andersen, O. (1997). Internationalization and Market Entry Mode: A Review of Theories and
Conceptual Frameworks. Management International Review, 37 (2), 7-42.
Anderson, A. S. (2007). Changing Unhealthy Food Choices. In L. Frewer and H. V.
Trijp (Eds.), Understanding Consumers of Food Products. Cambridge, UK: Woodheath
Publishing.
Andersen, P. H. (2006). Listening to the Global Grapevine: SME Export Managers’
Personal Contacts as a Vehicle for Export Information Generation. Journal of World
Business, 41 (1), 81–96.
Anderson, E., and Gatignon, H. (1986). Modes of foreign entry: A transaction cost analysis
and propositions. Journal of International Business Studies, 17 (3), 1-26.
Anderson, K., and Peng, C. Y. (1998). Feeding and Fueling China in the 21st Century. World
Development, 26 (8), 1413-1429.
Anderson, O., and Buvik, A. (2002). Firms’ Internationalization and Alternative Approaches
to the International Customer/Market Selection. International Business Review, 11 (3), 347–
363.
277
Andersson, S., Gabrielsson, J., and Wictor, I. (2004). International activities in small firms:
examining factors influencing the internationalization and export growth of small
firms. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de
l'Administration. 21 (1). 22-34.
Angelmar, R., and Pras, B. (1984). Product Acceptance by Middlemen in Export Channels.
Journal of Business Research, 12, 227-240.
Anonymous. (2012, 16th April, 2012). China Growth Slows: First Quarter Data and
Other Downbeat Figures Recently Point to Weak Outlook, The Star, p. 12.
Appiah-Adu, K. (1999). The Impact of Marketing Mix Decisions on Performance: A Study of
Foreign and Domestic Firms in a Liberalized Economy. Journal of Global Marketing 13 (2):
7-30.
Applebaum, E., and Gatt, R. (1994). The New American Workplace. Ithica, New York: ILR
Press.
Argote, L. (2012). Organizational Learning: Creating, Retaining and Transferring
Knowledge. New York, NY: Springer Science+ Business Media.
Arnould, E. J., and Thompson, C. J. (2005). Consumer culture theory (CCT): Twenty years of
research. Journal of Consumer Research, 31 (4), 868-882.
Arias, J. T. G. (1998). A Relational Marketing Approach to Guanxi. European Journal of
Marketing, 32 (1/2), 145-156.
Atuahene-Gima, K. (2003) The Effects of Centrifugal and Centripetal Forces on Product
Development Speed and Quality: How Does Problem Solving Matter? Academy of
Management Journal 46 (3): 359-373.
278
Atuahene-Gima, K. and Evangelista, F. U. (2000) Cross-Functional Influence in New Product
Development: An Exploratory Study of Marketing and R&D Perspectives. Management
Science 46 (10): 1269-1284.
Atuahene-Gima, K. and Li, H. (2004) Strategic Decision Comprehensiveness and New
Product Development in New Technology Ventures. Academy of Management Journal 47
(4): 583-597.
Audretsch, D. B. (1995). Firm Profitability, Growth and Innovation. Review of Industrial
Organzation, 10 (5), 579-588.
Austin, J. R. (2003). Transactive memory in organizational groups: the effects of content,
consensus, specialization, and accuracy on group performance. Journal of Applied
Psychology. 88(5). 866.
Aulakh, P. S., and Kotabe, M. (1997). Antecedents and Performance Implications of
Channel Integration in Foreign Markets. Journal of International Business Studies, 28
(1), 145-175.
Bagozzi, R. P., Yi, Y., and Phillips, L. M. (1991). Assessing Construct Validity in
Organizational Research. Administrative Science Quarterly, 36, 421-458.
Baker, M. J., and Abou-Zeid, E. D. (1982). Successful exporting: a survey of marketing
practice in winners of the Queen's award for export achievement. Westfield, Glasgow.
Baker, G., Gibbons, R., and Murphy, K. J. (1999). Informal authority in organizations.
Journal of Law, Economics, and Organization, 15 (1), 56-73.
Balabanis, G., Mueller, R., and Melewar, T. C. (2002). The human values' lenses of country
of origin images. International Marketing Review, 19 (6), 582-610.
Balachandra, R. (2000). An expert system for new product development projects. Industrial
Management & Data Systems. 100 (7). 317-324.
279
Balachandra, R., and Friar, J. H. (1997). Factors for Success in R&D Projects and New
Product Innovation: A Conceptual Framework. IEEE Transactions on Engineering
Management, 44 (3), 267-287.
Baldauf, A., Cravens, D. W., and Wagner, U. (2000). Examining Determinants of Export
Performance in Small Open Economies. Journal of World Business, 35 (1), 61-79.
Bantel, K. A., and Jackson, S. E. (1989). Top management and innovations in banking: Does
the composition of the top team make a difference? Strategic Management Journal, 10, 107-
102.
Banville, D., Desrosiers, P., and Genet-Volet, Y. (2000). Translating questionnaires and
Inventories using a cross-cultural translation technique. Journal of Teaching in Physical
Education, 19, 374-387.
Barbour, R. S. (1999). The case for combining qualitative and quantitative approaches in
health services research. Journal of Health Services Research Policy, 4, 39-43.
Bardacki, A., and Whitelock, J. (2000). The Standardization of marketing: Towards a meta-
analysis of empirical studies. Paper presented at the Marketing in a Global Economy
Conference, Argentina.
Bardacki, A., and Whitelock, J. (2003). Mass customisation in marketing: The consumer
perspective. Journal of Consumer Marketing, 20 (5), 463-479.
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of
Management, 17 (1), 99-120.
Bartlett, C. A., and Ghoshal, S. (1993). Beyond the M-Form: Toward a Managerial Theory of
the Firm. Strategic Management Journal, 14 (Special Issue), 23-46.
Bass, V. F. (1991). Food Labeling and Consumer Satisfaction. Journal of Home Economics,
83 (Spring), 2-5.
280
Bates, C. (1998). The many China markets. The China Business Review, 25 (5), 26-32.
Bates, C. J., Prentice, A., and Finch, S. (1999). Gender Differences in Food and
Nutrient Intakes and Status Indices from the National Diet and Nutrition Survey of
People Aged 65 Years and Over. European Journal of Clinical Nutrition, 53 (9), 694-
699.
Batra, R. (1997). Executive insights: marketing issues and challenges in transitional
economies. Journal of International Marketing, 5 (4), 95-114.
Beghin, J. C. (2006). Evolving dairy markets in Asia: Recent findings and implications. Food
Policy, 3 (1), 1-7.
Belenky, A. S. (2002). Cooperative games of choosing partners and forming coalitions in the
marketplace. Mathematical and Computer Modeling, 36, 1279-1291.
Belliveau, P., Griffin, A., and Somermeyer, S. (2002). The PDMA Toolbook for New
Product Development, Product Development and Management Association, New York, NY.
Bello, D. C., Chelariu, C., and Zhang, L. (2003). The Antecedents and Performance
Consequences of Relationalism in Export Distribution Channels. Journal of Business
Research, 56 (1), 1-16.
Bello, D. C., Lohtia, R., and Sangtani, V. (2004). An institutional analysis of supply chain
innovations in global marketing channels. Industrial Marketing Management, 33, 57-64.
Bello, D., and Williamson, N. (1985). Contractual arrangement and marketing practices in the
indirect export channel. Journal of International Business Studies, 16 (2), 65-82.
Bender, M. M. and B. M. Derby (1992). "Prevalence of Reading Nutrition and Ingredient
Information on Food Labels Among Adult Americans: 1982-1988." Journal of Nutritional
Education. 24 (6): 292.
281
Benito, G. R. G., Pedersen, T., and Petersen, B. (2005). Export Channel Dynamics: An
Empirical Investigation. Managerial and Decision Economics, 26, 159-173.
Bernhardt, D., Liu, Q., and Serfes, K. (2007). Product Customization. European Economic
Review, 51 (6), 1396–1422.
Bernues, A., Olaizola, A., and Corcoran, K. (2003). Labelling Information Demanded
by European Consumers and Relationships with Purchasing Motives, Quality and
Safety of Meat. Meat Science, 65, 1095-1106.
Betsch, T., Haberstroh, S., Molter., and Glockner, A. (2004). Oops, I did it again - relapse
errors in routinised decision-making. Organizational Behavior and Human Decision Process,
93, 62-74.
Bhalla, G., and Lin, L. (1987). Cross-cultural marketing research: a discussion of equivalence
issues and measurement strategies. Psychology and Marketing, 4 (4), 275-285.
Bhandari, R., and Smith, F. J. (2000). Education and food consumption patterns in China:
Household analysis and policy implications. Journal of Nutritional Education, 32 (4), 214-
224.
Bhargava, H. K., and Choudhary, V. (2004). Economics of an information intermediary with
aggregation benefits. Information Systems Research. 15 (1). 22-36.
Bhattacharya, S., Krishnan, V., and Mahajan, V. (2003). Operationalizing
Technology Improvements in Product Development Decison Making. European
Journal of Operational Research, 149, 102-130.
Bhuian, S.N. (1997). Saudi consumers' attitudes towards European, US, and Japanese
products and marketing practices. European Journal of Marketing, 31 (7), 467-486.
Biel, A. L. (1993). Converting Image into Equity. In D. A. Aaker & A. L. Biel (Eds.), Brand
Equity and Advertising. Hillsdale, NJ: Laurence Erlbaum and Associates.
282
Bilkey, W.J., and Nes, E. (1982). Country of origin effects on product evaluations. Journal of
International Business Studies, 8 (Spring/Summer), 89-99.
Bisbe, J., and Otley, D. (2004). The Effects of the Interactive Use of Management
Control Systems on Product Innovation. Accounting, Organizations and Society, 29,
709–737.
Bittner, M. J. (1992). Servicescapes: The Impact of Physical Surroundings on
Customers and Employees. Journal of Marketing 56, (April), 57-71.
Black, S. E., and Lynch, L. M. (1996). Human Capital Investments and Productivity.
American Economic Review, 86 (2), 263-267.
Blackburn, R., Furst, S. A., and Rosen, B. (2003). Building a winning virtual team: KSA's,
selections, training, and evaluation. In C.B. Gibson and S.G. Cohen (Eds.), Virtual teams that
work: Creating conditions for virtual team effectiveness. San Francisco: Jossey-Bass.
Bloemer, J., Brijs, K., and Kasper, H. (2009). The COO-ELM model: A Theoretical
Framework for the Cognitive Processes Underlying Country of Origin-Effects. European
Journal of Marketing. 43(1/2). 62-89.
Bock, G.-W., Zmud, R. W., Kim, Y.-G., and Lee, J.-N. (2005). Behavioral Intention
Formation in Knowledge Sharing: Examining the Roles of Extrinsic Motivators, Social-
Psychological Forces, and Organizational Climate. MIS Quarterly, 29 (1), 87-111.
Boddewyn, J.J., Soehl, R, and Piccard, J. (1986). Standardization in international marketing:
is Theodore Levitt in fact right? Business Horizons (November-December), 69-75.
Boisot, M., and Child, J. (1996). From fiefs to clans and network capitalism: The Chinese
experience. Administrative Science Quarterly, 41(4), 600-628.
Bonaccorsi, A. (1992). On the relationship between firm size and export intensity. Journal of
International Business Studies, 23 (4), 605-635.
283
Bonaccorsi, A. (1993). What do we know about exporting by small Italian manufacturing
firms? Journal of International Marketing, 1 (3), 49-75.
Bond, M.H. (1986). The Psychology of Chinese People. Oxford University Press,
U.K.
Bond, M.H., and Hwang, K.K. (1986). The Social Psychology of Chinese People. In
The Psychology of Chinese People. M.H. Bond (ed.), 213-226. Oxford University Press,
U.K.
Bond, C. A., Thilmany, D., and Bond, K. (2008). Understanding Consumer Interest in
Product and Process-Based Attributes for Fresh Produce. Agribusiness, 24 (2), 231-252.
Bonner, B. L., Baumann, M.R., and Dalal, R.S. (2002). The effects of member expertise
on group decision-making. Organizational Behavior and Human Decision Process, 88,
719-736.
Bonnet, C., and Simioni, M. (2001). Assessing consumer response to protected designation of
origin labeling: a mixed multinomial logit approach. European Review of Agricultural
Economics, 28 (4), 433-449.
Booth, S. L., Sallis, J. F., Ritenbaugh, C., Hill, J. O., Birch, L. L., Frank, L. D., . . .
Hays, N. P. (2001). Environmental and Societal Factors Affect Food Choice and
Physical Activity: Rationale, Influences, and Leverage Points. Nutritional Reviews, 59
(3), 521-536.
Bourgeois, L. J. III. (1981). On measurement of organisational slack. Academic Management
Review, 6, 29-39.
Brass, D. J., Galaskiewicz, J., Greve, H. R., and Tsai, W. (2004). Taking stock of networks
and organizations: A multilevel perspective. Academy of Management Journal. 47 (6). 795-
817.
284
Bredahl, L. (2004). Cue Utilisation and Quality Perception with Regard to Branded Beef.
Food Quality and Preference. 15 (1). 65-75.
Briggs, S. R., and Cheek, J. M. (1986). The role of factor analysis in the development and
evaluation of personality scales. Journal of Personality, 54(1), 106-148.
Brodowsky, G. H., Tan, J., and Meilich, O. (2004). Managing Country of Origin Choices:
Competitive Advantages and Opportunities. International Business Review, 13, 729-748.
Brom, F. W. A. (2000). Food, Consumer Concerns, and Trust: Food Ethics for a
Globalizing Market. Journal of Aricultural and Environmental Ethics, 12 (2), 127-139.
Broom, A. (2005). Using qualitative interviews in CAM research: A guide to study design,
data collection, and data analysis. Contemporary Therapies in Medicine, 13, 65-73.
Brouthers, K. D. (2002). Institutional, cultural and transaction cost influences on entry mode
choice and performance. Journal of International Business Studies. 33 (2). 203-221.
Brouthers, K. D., Brouthers, L. E., and Wilkinson, T. J. (1995). Strategic alliances: choose
your partners. Long range planning, 28 (3), 2-25.
Brouthers, K. D., and Nakos, G. (2004). Why Service and Manufacturing Entry Mode
Choices Differ: The Influence of Transaction Cost Factors, Risk, and Trust. Journal of
Management Studies, 40, 1179-1204.
Brown, L., and Perry, C. (1998/1999). Export Marketing Strategies of Small to Medium
Australian Firms. Asian Journal of Marketing, 7 (1), 1-17.
Brown, S. L., and Eisenhardt, K. M. (1995). Product development: past research, present
findings, and future directions. Academy of Management Review, 20 (2), 343-378.
Brucks, M., Zeithaml, V. A., and Naylor, G. (2000). Price and brand name as indicators of
quality dimensions for consumer durables. Journal of the Academy of Marketing Science. 28
(3). 359-374.
285
Bruning, E.R. (1997). Country of origin, national loyalty and product choice. The case
of international air travel. International Marketing Review, 14 (1), 59-68.
Brunner, J. A., Chen, J., Sun, C., and Zhou, N. (1990). The Role of Guanxi in Negotiations in
the Pacific Basin. Journal of Global Marketing, 3 (2), 7-24.
Buatsi, S. N. (1986). Organisational Adaptation in International Marketing. International
Marketing Review, 3 (Winter), 17-26.
Buchan, N. R., Croson, R. T., and Dawes, R. M. (2002). Swift Neighbors and Persistent
Strangers: A Cross‐Cultural Investigation of Trust and Reciprocity in Social Exchange1.
American Journal of Sociology. 108 (1). 168-206.
Buckley, P. J., and Ghauri, P. N. (1999). The Internationalization of the Firm. London:
Thomson Business Press.
Buckley, R. (2003). Environmental Inputs and Outputs in Ecotourism: Geotourism with a
Positive Triple Bottom Line? Journal of Ecotourism, 2 (1), 76-82.
Burgess, J. (1982). Selling Places: Environmental Images for the Executive. Regional Studies
16 (1): 1-17.
Burt, S., Johansson, U., and Thelander, A. (2010). Standardized Marketing Strategies in
Retailing? IKEA's Marketing Strategies in Sweden, the UK and China. Journal of Retailing
and Consumer Services, Stockholm (Norrtälje).
Burton, F. N., and Schlegemilch, B. B. (1987). Profile Analysis on Non-Exporters Versus
Exporters Grouped by Export Involvement. International Management Review, 27 (1), 38-49.
Bush, V. D., Rose, G. M., Gilbert, F., and Ingram, T. (2001). Managing Culturally Diverse
Buyer-Seller Relationships: The Role of Intercultural Disposition and Adaptive Selling in
Developing Intercultural Communication Competence. Journal of the Academy of Marketing
Science, 29 (4), 391-404.
286
Buttery, A., and Leung, T.P.K. (1998). The difference between Chinese and Western
negotiations. European Journal of Marketing, 32 (3/4), 374-395
Buzzell, R. (1968). Can you standardize multinational marketing? Harvard Business Review,
49 (November-December), 102-113.
Byrne, B. (2001). Interviewing as a data collection method. Association of Operating Room
Nurses Journal, 74 (2), 233-235.
Byrne, P. J., Gempeshaw, C. M., and Toensmeyer, U. C. (1991). An evaluation of consumer
pesticide residue concerns and risk information sources. Southern Journal of Agricultural
Economics, 23, 167-174.
Calantone, R. J., Di Benedetto, A., and Song, M. (2011). Expecting Marketing
Activities and New Product Launch Execution to Be Different in the U.S. and China:
An Empirical Study. International Journal of China Marketing, 2 (1), 14-44.
Calantone, R. J., Garcia, R., and Droge, C. (2003). The Effects of Environmental
Turbulence on New Product Development Strategy Planning. Journal of Product
Innovation Management, 20, 90-103.
Calantone, R. J., Kim, D., Schmidt, J. B., and Cavusgil, S. T. (2006). The Influence of
Internal and External Firm Factors on Product Adaptation Strategy on Export Performance: A
Three-Country Comparison. Journal of Business Research, 59, 176-195.
Calantone, R. J., and Knight, G. (2000). The critical role of product quality in the
international performance of industrial firms. Industrial Marketing Management, 29 (493-
506).
Calantone, R. J., Morris, M. D., and Johar, J. (1985). A cross cultural benefit segmentation
analysis to evaluate the traditional assimilation model. International Journal of Research in
Marketing, 2 (3), 207-217.
287
Calvin, L., Gale, F., Hu, D. and Lohmar, B. (2006) Food Safety Improvements Underway in
China. Amber Waves, 4 (5), 16-21.
Cameron, K. S., Dutton, J. E., and Quinn, R. E. (2003). Positive Organizational
Scholarship. San Francisco, CA: Berrett-Koehler Publishers.
Carlile, P. R. (2002). A Pragmatic View of Knowledge and Boundaries: Boundary Objects in
New Product Development. Organization Science 13 (4): 442-455.
Carlisle, E., and Flynn, D. (2005). Small Business Survival in China: Guangxi,
Legitimacy, and Social Capital. Journal of Developmental Entrepreneurship, 10 (1),
79-96.
Carneiro, A. (2000). How Does Knowledge Management Influence Innovation
and Competitiveness? Journal of Knowledge Management, 4 (2), 87-98.
Caro, I., and Stiles, W. B. (1997). Linguistic and cultural inferences drawn from translating a
verbal coding system from English to Spanish. Psychiatry, 60, 233-247.
Carpenter, M. A., Geletkanycz, M. A., and Sanders, W. G. (2004). Upper echelons research
revisited: Antecedents, elements, and consequences of top management team composition.
Journal of Management, 30 (6), 749-778.
Carter, C., and Zhong, F. (1991). China's past and future role in the grain trade. Economic
Development and Cultural Change, 39, 791-814.
Carver, L., and Turoff, M. (2007). Human-computer interaction: the human and computer as
a team in emergency management information systems. Communications of the ACM. 50 (3).
33-38.
Caswell, J. A., and Mojduszka, E. M. (1996). Using informational labeling to influence the
market for quality in food products. American Journal of Agricultural Economics, 78
(December), 1248-1253.
288
Cateora, P., and Hess, J. M. (1975). International Marketing (3rd ed.). Homewood, Ill:
Richard D. Irwin.
Cavana, R. Y., Delahaye, B. L., and Sekaran, U. (2001). Applied Business Research:
Qualitative and Quantitative Methods. Milton, QLD: John Wiley and Sons Australia.
Caves, R. E. (1971). International Corporation: The Industrial Economics of Foreign
Investment. Economica, 38 (February), 1-27.
Caves, R. E. (1982). Multinational Enterprise and Economic Analysis. Cambridge, Mass:
Cambridge University Press.
Cavusgil, S.T. (1984a). Organisational characteristics associated with export activity. Journal
of Management Studies, 21 (1), 3-22.
Cavusgil, T. S. (1984b). Differences among exporting firms based on their degree of
internationalization. Journal of Business Research, 12, 195-208.
Cavusgil, T. S. (1985). The evolution of marketing in small firms. Business Horizons
(November-December), 27-29.
Cavusgil, T. S. (1985). Guidelines for Export Market Research. Business Horizons,
28 (6), 27-33.
Cavusgil, T. S, and Kaynak, E. (1982). Success Factors in Export Marketing: An Empirical
Analysis. In B. J. Walker, William O Bearden, William R. Darden, Patrick E. Murphy, John
R. Nevin, Jerry C. Olson and Barton A. Weisz (Ed.), An Assessment of Marketing Thought
and Practice. Chicago.
Cavusgil, T. S., and Zou, S. (1994). Marketing-Strategy performance relationship: an
investigation into the empirical link in export market ventures. Journal of Marketing, 58 (1),
1-21.
289
Cavusgil, T. S., Zou, S. and Naidu, GM. (1993). Product and promotion adaptation in export
ventures: An empirical investigation. Journal of International Business Studies, 24 (3), 479-
501.
Cedergren, S., Wall, A. and Norstrom, C. (2010). Evaluation of Performance in a Product
Development Context. Business Horizons 53, 359-369.
Chadee, D. D., Qiu, F., and Rose, E. (2003). FDI Location at the Sub-National Level: A
Study of EJVs in China. Journal of Business Research, 56 (10), 835-845.
Chan, L. K. C., Lakonishok, J., and Sougiannis, T. (2001). The Stock Market Valuation of
Research and Development Expenditures. Journal of Finance, 56, 2431-2456.
Chance, W. A., and French, N. D. (1972). An Exploratory Investigation into Brand
Switching. Journal of Marketing Research, 9 (May), 226-229.
Chaney, D. (1996). Lifestyles. London: Routledge.
Chang, S., and Singh, H. (2000). Corporate and Industry Effects on Business Unit
Competitive Position. Strategic Management Journal, 21, 739-752.
Chao, P. (1993). Partitioning Country of Origin Effects: Consumer Evaluations of a
Hybrid Product. Journal of International Business Studies, 24 (2), 291-306.
Chao, P. (1998). Impact of Country-Of-Origin Dimensions of Product Quality and
Design Quality Perceptions. Journal of Business Research, 42, 1-6.
Chao, R. O., and Kavadias, S. (2008). A Theoretical Framework for Managing the
New Product Development Portfolio: When and How to Use Strategic buckets.
Management Science, 54 (5), 907-921.
Chattalas, M., Kramer, T., and Takada, H. (2008). The impact of national stereotypes on the
country of origin effect: a conceptual framework. International Marketing Review. 25 (1). 54-
74.
290
Chen, X.P. and Chen, C.C. (2004). On the Intricacies of the Chinese Guanxi: A Process
Model of Guanxi Development. Asia Pacific Journal of Management, 21, 305-324
Chen, Y. S., and Chang, K. C. (2010). Analyzing Non-Linear Effects of Firm Size,
Profitability, and Employee Productivity on Patent Citations of the US Pharmaceutical
Companies by Using Artificial Neural Network. Scientometrics, 82(1), 75-82.
Chen, G., Liu, C., and Tjosvold, D. (2005). Conflict management for effective top
management teams and innovation in China. Journal of Management Studies. 42 (2). 277-
300.
Christensen, P. R., and Jacobsen, L. (1996). The Role of Export in New Business Formation.
Paper presented at the RENT X Conference on Entrepreneurship and SMEs, Brussels,
Belgium.
Christie, L., Hine, R. J., Parker, J. G., & Burks, W. (2002). Food Allergies in Children
Affect Nutrient Intake and Growth. Journal of the American Dietetic Association,
102 (11), 1648-1651.
Chryssochoidis, G., Krystallis, A., and Perreas, P. (2007). Ethnocentric beliefs and country-
of-origin (COO) effect: Impact of country, product and product attributes on Greek
consumers' evaluation of food products. European Journal of Marketing. 41 (11/12). 1518-
1544.
Chryssochoidis, G. and V. Wong (1998). Rolling Out New Products Across Country
Markets: An Empirical Study of Causes and Delays. Journal of Product Innovation
Management, 15 (1): 16-41.
Chu, P. C., and Spires, E.E. (2003). Perceptions of accuracy and effort of decision
strategies. Organizational Behavior and Human Decision Process, 91, 203-214.
Chung, H. F. L. (2005). An Investigation of Crossmarket Standardization Strategies:
Experiences in the European Union. European Journal of Marketing, 39 (11/12), 1345-
291
1371.
Chung, H. F. L. (2009). Structure of International Decision Making and International
Marketing Strandardization Strategy. European Journal of Marketing, 43 (5), 794-825.
Churchill Jnr, G. A., and Gilbert, A. (1979). A paradigm for developing better measures of
marketing constructs. Journal of Marketing Research, 16 (February), 64-73.
Churchill Jnr, G. A. (1995). Marketing Research: Methodological Foundations (7th ed.). Fort
Worth, TX: The Dryden Press.
Clark, B. H. (1999). Marketing Performance Measures: History and Interrelationships.
Journal of Marketing Management, 15, 711-732.
Clark, J. E. (1998) Taste and Flavor: Their Importance in Food Choice and Acceptance.
Proceedings of the Nutrition Society 57, 639-643.
Clarkson, K. W. (1977). Intangible Capital and Rates of Return: Effects of Research and
Promotion on Profitability. Washington, DC: American Enterprise Institute for Public Policy.
Claver, E., Molina, J., and Tari, J. (2002). Firm and Industry Effects on Firm Profitability: A
Spanish Empirical Analysis. European Management Journal, 20 (3), 321-328.
Coeurderoy, R., and Durand, R. (2004). Leveraging the advantage of early entry: proprietary
technologies versus cost leadership. Journal of Business Research, 57 (6). 583-590.
Compton, J. (1979). An assessment of the image of Mexico as a vacation destination and the
influence of geographical location upon that image. Journal of Travel Research, 17 (Spring),
18-23.
Conner, K. R., and Prahalad, C. K. (1996). A resource-based theory of the firm: Knowledge
versus opportunism. Organization Science, 7 (5), 477-501.
292
Connor, J. M. (1994). North America As a Precursor of Changes in Western European Food
Purchasing Patterns. European Review of Agricultural Economics 21 (2): 155-173.
Cooper, R. G. (1994). New products: factors that drive success. International Marketing
Review, 11 (1), 60-76.
Cooper, R. G. (2005). Product Leadership: Pathways to Profitable innovation. New
York, NY: Basic Books.
Cooper, R. G. (2008). The Stage-Gate Idea to Launch Process Update: What’s New and
NexGen Systems. Journal of Product Innovation Management, 25 (3), 213-232.
Cooper, R. G., and Kleinschmidt, E.J. (1987). New Products: what separates winners from
losers. Journal of Product Innovation Management, 4, 169-184.
Cooper, R. G., and Kleinschmidt, E.J. (1994). Determinants of timeliness in product
development. Journal of Product Innovation Management, 11 (5), 381-396.
Cooper, R. G., and Kleinschmidt, E. J. (1985). The impact of export strategy on export sales
performance. Journal of International Business Studies, (Spring), 37-55.
Cordell, V. V. (1991). Competitive Context and Price as Moderators of Country of Origin
Preferences. Journal of Academy of Marketing Science, 19 (Spring), 123-148.
Cordell, V.V. (1992). Effects of consumer preferences for foreign sourced products. Journal
of International Business Studies, 23 (2), 251-270.
Cottrell, Y. Y. (1986). A traditional approach to eating: The Chinese kitchen. London:
Weidenfield and Nicolson.
Cox, J. C. (2002). Trust, reciprocity, and other-regarding preferences: Groups vs. individuals
and males vs. females. In Experimental Business Research (pp. 331-350). Springer US.
293
Cox III, E. P. (1980). The optimal number of response alternatives for a scale: A review.
Journal of Marketing Research, 17 (November), 407-422.
Craig, C. S., and Douglas, S. P. (2001). Conducting international marketing research in the
twenty first century. International Marketing Review, 18 (1), 80-90.
Crawford, C. M. (2003). New Products Management (7th edition ed.). New York, NY,
McGraw Hill Publishing.
Crilly, N., Moultrie, J., and Clarkson, P.J. (2004). Seeing Things: Consumer Response to the
Visual Domain in Product Design. Design Studies. 25 (6). 547-577
Cronin, F. J. (1998). Reflections on food guides and food guidance systems. Nutrition Today,
33 (5), 186-188.
Cuddy, A. J., Fiske, S. T., Kwan, V. S., Glick, P., Demoulin, S., Leyens, J. P., ... and Ziegler,
R. (2009). Stereotype content model across cultures: Towards universal similarities and some
differences. British Journal of Social Psychology. 48 (1). 1-33.
Cui, G. (1997). Marketing Strategies in a Multi Ethnic Environment. Journal of Marketing
Theory and Practice, 5 (1), 122-134.
Cui, G. (1999). Segmenting China's Consumer Market: A Hybrid Approach. Journal of
International Consumer Marketing 11 (1): 55-77.
Cui, G., and Liu, Q. (2000). Regional market segments of China: Opportunities and barriers
in a big emerging market. Journal of Consumer Marketing, 17 (1), 55-72.
Cui, G., and Liu, Q. (2001). Emerging marketing segmentation in a transitional economy: A
study of urban consumers in China. Journal of International Marketing, 8 (1), 84-106.
Curtis, K. R., McCluskey, J. J., and Wahl, T. I. (2007). Consumer preferences for western-
style convenience foods in China. China Economic Review, 18 (1), 1-14.
294
Czinkota, M. R., Ronkainen, I. A., & Moffett, M. H. (2000). International Business (6th
ed.). Orlando, FL: Harcourt College Publishers.
D’ Astous, A., and Ahmed, S.A. (1999). The importance of country images in the formation
of consumer product perceptions. International Marketing Review, 16 (2), 108-125.
Dai, Y., and Luo, X. (1996). Functional food in China. Nutritional Reviews, 54 (11), S21-
S23.
Dakhli, M., and De Clercq, D. (2004). Human Capital, Social Capital, and Innovation: A
Multi Country Study. Entrepreneurship and Regional Development, 16 (2), 107-112.
Dangelico, R. M., and Pujari, D. (2010). Mainstreaming green product innovation: why and
how companies integrate environmental sustainability. Journal of Business Ethics. 95 (3).
471-486.
Danneels, E. (2002). The Dynamics of Product Innovation and Firm Competences. Strategic
Management Journal. 23 (12). 1095-1121
Darroch, J. (2005). Knowledge Management, Innovation and Firm Performance. Journal of
Knowledge Management, 9 (3), 101-115.
Das, T. K., and Teng, B. S. (2000). A resource-based theory of strategic alliances. Journal of
Management. 26 (1). 31-61.
Davies, H., Leung, T. K. P., Luk, S. T. K., and Wong, Y. (1995). The Benefits of Guanxi.
Industrial Marketing Management, 24, 207-214.
Davies, K. (1994). Foreign investment in the retail sector of the People's Republic of China.
Journal of World Business, 29 (2), 59-69.
Davis, D. S. (2000). China's consumer revolution. Current History, 99 (638), 248-254.
295
Davis, D., Landry, P., Peng, Y., and Xiao, J. (2007). Gendered Pathways to Rural Schooling:
The Interplay of Wealth and Local Institutions. The China Quarterly, 189, 60-82.
Dawar, N., and Parker, P. (1994). Marketing universals: Consumers' use of brand name,
price, physical appearance, and retail reputation as signals of product quality. Journal of
Marketing, 58 (4), 81-95.
Dawes, J. G. (2008). Do Data Characteristics Change According to the Number of Scale
Points Used? An Experiment Using 5 Point, 7 Point, and 10 Point Scales. International
Journal of Market research, 50 (1), 61-77.
Day, G. S., and Wensley, R. (1988). Assessing Advantage: A Framework for Diagnosing
Competitive Superiority. Journal of Marketing, 52(April), 1-20.
De Almeida, M., Graca, P., Lappalainen, R., Giachetti, I., Kafatos, A., Remaut de Winter, A.,
and Kearney, J. M. (1997). Sources used and trusted by nationally-representative adults in the
European Union for information on healthy eating. European Journal of Clinical Nutrition,
51 (2), S16-S22.
De Brentani, U., and Kleinschmidt, E. J. (2004). Corporate Culture and Commitment: Impact
on Performance of International New Product Development Programs. Journal of Product
Innovation Management, 21 (5), 309-333.
De Chernatony, L. (1993). Categorizing brands: evolutionary processes underpinned by two
key dimensions. Journal of Marketing Management, 19 (2), 173-188.
De Chernatony, L., Halliburton, C., and Bernath, R. (1995). International branding: demand
or supply driven opportunity? International Marketing Review, 12 (2), 9-21.
De Clerq, D., Thongpapanl, N., and Dimov, D. (2011). A Closer Look at Cross-functional
Collaboration and Product Innovativeness: Contingency Effects of Structural and Regional
Context. Journal of Product Innovation Management, 28, 680-697.
De Graaf, C. (2007). Sensory Influences on Food Choice and Food Intake. In L. Frewer
296
and H. V. Tijp (Eds.), Understanding Consumers of Food Products. Cambridge, UK.:
Woodhead Publishing Limited.
De Jong, A., de Ruyter, K., and Wetzels, M. (2006). Linking Employee Confidence to
Performance: A Study of Self-Managing Service Teams. Journal of the Academy of
Marketing Science, 34 (4), 576-587.
De Jong, J., Van Kleef, E., Frewer, L., and Renn, O. (2007). Perception of Risk, Benefit
and Trust Associated with Consumer Food Choice. In L. Frewer & H. V. Trijp (Eds.),
Understanding Consumers of Food Products. Cambridge, UK: Woodhead Publishing.
Delene, L.M., Meloche, M.S., and Hodskins, J.S. (1997). International product strategy:
Building the standardization modification decisions. Irish Marketing Review, 10 (1), 47-54.
Delwiche, J. (2004). The Impact of Perceptual Interactions on Perceived Flavor.
Food and Quality Preference 15, 137-146.
Del Rio, A. B., Vazquez, R., and Iglesias, V. (2001). The effects of brand associations on
consumer response. Journal of Consumer Marketing. 18 (5). 410-425.
Denton, L. T. and X. Kaixuan (1995). Food Selection and Consumption in Chinese Markets:
An Overview. Journal of International Food and Agribusiness Marketing, 7 (1), 55-77.
DeSarbo, W.S. and Grewal, R. (2008). Hybrid Strategic Groups. Strategic Management
Journal. 29 (3). 293-317
Deshpande, R. & Farley, J. (2000) Market-Focused Organisational Transformation in China.
Journal of Global Marketing 14(1-2): 7-35.
Dhar, R., Valenzuela, A., and Zettemeyer, F. (2004). The Effects of Customization
Procedures on Consumer Preferences and Satisfaction. Advances in Consumer Research, 31,
685-688.
297
Diamantopoulos, A., and Kakkos, N. (2007). Managerial Assessments of Export
Performance: Conceptual Framework and Empirical Illustration. Journal of International
Marketing, 15 (3), 1-31.
Diamantopoulos, A., Schlegemilch, B. B., and Allpress, C. (1990). Export marketing
research: An empirical investigation of users and non-users. Working article EBMS/1989/25.
Dickson, P. R. and J. L. Ginter (1987). Market Segmentation, Product Differentiation, and
Marketing Strategy. Journal of Marketing 51 (2): 1-10.
Dickson, M. A., Lennon, S. J., Montalto, C. P., Shen, D., and Zhang, L. (2004). Chinese
consumer market segments for foreign apparel products. Journal of Consumer Marketing, 21
(5), 301-317.
Dimara, E., and Skuras, D. (2005). Consumer demand for informative labeling of quality
food and drink products: A European case study. Journal of Consumer Marketing, 22 (2), 90-
100.
DiMasi, J. A., Hansen, R. W., and Grabowski, H. G. (2003). The price of innovation: New
estimates of drug development costs. Journal of Health Economics, 22(2), 151-185.
Dobrev, S. D. and Carroll, G. R. (2003). Size (and Competition) Among Organizations:
Modeling Scale Based Selection Among Automobile Producers in Four Major Countries.
Strategic Management Journal 24 (6), 541-558.
Doh, J. P. (2005). Offshore Outsourcing: Implications for International Business and
Strategic Management Theory and Practice. Journal of Management Studies, 42 (3), 695-704.
Dolton, D. R., Todor, W. T., Spendolini, M. J., Fielding, G. I., and Porter, L. W. (1980).
Organisational Structure and Performance: A Critical Review. Academy of Management
Review, 5 (1), 49-64.
298
Dong, F. (2005). The outlook for Asian dairy markets: The role of demographics, income,
and prices http://www.card.iastate.edu/publications/DBS/PDFFiles/05wp399.pdf. Iowa State
University. Retrieved 28 April, 2006, from the World Wide Web:
Dong, L., and Glaister, K. W. (2006). Motives and partner selection criteria in international
strategic alliances: Perspectives of Chinese firms. International Business Review, 15 (6), 577-
600.
Dooley, R. S., and Fryxell, G. E. (1999). Attaining decision quality and commitment from
dissent: The moderating effects of loyalty and competence in strategic decision-making
teams. Academy of Management journal, 42 (4), 389-402.
Dooley, R. S., Fryxell, G. E., and Judge, W. Q. (2000). Belaboring the Not-So-Obvious:
Consensus, Commitment, and Strategy Implementation Speed and Success. Journal of
Management, 26 (6), 1237-1257
Doran, K. B. (1994). Exploring cultural differences in consumer decision making: Chinese
consumers in Montreal. Advances in Consumer Research, 21, 318-322.
Douglas, S. P., and Craig, C. S. (1983). International Marketing Research. New York, NY:
Prentice Hall.
Douglas, S. P., and Craig, C. S. (2005). International Marketing Research. Chichester,
UK.: Wiley & Sons.
Douglas, S. P. and Y. Wind (1987). "The Myth of Globalization." Columbia Journal of
World Business, 22 (4): 19-29.
Doz, Y. L. (1996). The Evolution of Cooperation in Strategic Alliances: Initial
Conditions or Learning Processes. Strategic Management Journal, 17 (1), 55-
83.
Doz, Y. L., and Hamel, G. (1998). Alliance Advantage: The Art of Creating
Value Through Partnering. Boston, MA: Harvard Business School Press.
299
Dunne, M. J. (1995). Scaling the Wall of China. Management Review, 84 (8), 13-19.
Dunphy, S., and Herbig, P. A. (1995). Acceptance of innovations: The customer is the key!
Journal of High Technology Management Research, 6 (2), 193-209.
Duray, R., Ward, P. T., Milligan, G. W., and Berry, C. H. (2000). Approaches to Mass
Customisation: Configurations and Empirical Validation. Journal of Operations
Management, 18, 605-625.
Durmuşoğlu, S. S., Calantone, R. J., and McNally, R. C. (2013). Ordered to Innovate: A
Longitudinal Examination of the Early Periods of a New Product Development Process
Implementation in a Manufacturing Firm. Journal of Product Innovation Management. 30
(4). 712-731.
Dutton, J. E. (1993). Interpretations on automatic: A different view of strategic issue
diagnosis. Journal of Management Studies, 30 (3), 339-357.
Dzever, S., and Quester, P. (1999). Country-of-origin Effects on Purchasing Agents' Product
Perceptions: An Australian Perspective. Industrial Marketing Management, 28, 165-195.
Eberhart, A. C., Maxwell, M. F., and Siddique, A. R. (2004). An Examination of Long Term
Stock Returns and Operating Performance Following R&D Increases. Journal of Finance, 59,
623-649.
Edwards, W. (1954). The Theory of Decision Making. Psychological Bulletin 51 (4): 380-
417.
Eertmans, A., Baeyens, F., and van den Bergh, O. (2001). Food likes and their relative
importance in human eating behaviour: Review and preliminary suggestions for health
promotion. Health Education Research, 16 (4), 443-456.
Elango, B. (2005). The influence of plant characteristics on the entry mode choice of
overseas firms. Journal of Operations Management (23), 65-79.
300
Elango, B., and Sambharya, R. B. (2004). The influence of industry structure on the entry
mode choice of overseas entrants in manufacturing industries. Journal of International
Management, 10 (1), 107-124.
Elliott, G., and Cameron, R. (1994). Consumer perception of product quality and the country
of origin effect. Journal of International Marketing, 2 (2), 49-62.
Eon, Y. S. (1992). Consumer respond to information about pesticide residues. Food Review,
15, 6-9.
Erickson, G. M., Johnson, J. L., and Chao, P. (1984). Image variables in multi-attribute
product evaluations: Country of origin effects. Journal of Consumer Research, 11 (2), 694-
699.
Eriksen, B., and Knudsen, T. (2003). Industry and Firm Level Interaction: Implications for
Profitability. Journal of Business Research, 56, 191-199.
Escalas, J. E., and Bettman, J. R. (2003). You Are What They Eat: The Influence of
Reference Groups on Consumers' Connections to Brands. Journal of Consumer Psychology,
13 (3), 339-348.
Espedal, B. (2004). Management and Leadership Development in Norway: Discrepancies
Between Talk and Action. Advances in Developing Human Resources, 6 (November), 470-
485.
Essoussi, L. H., and Merunka, D. (2007). Consumers' Product Evaluations in Emerging
Markets. International Marketing Review, 24 (4), 409-426.
Ettenson, R. (1993). Brand name and country of origin effects in the emerging market
economies of Russia, Poland and Hungary. International Marketing Review. 10 (5). 23-45.
Ettenson, R., Wagner, J., and Gaeth, G. (1988). Evaluating the effect of country of origin and
the "Made in the USA" campaign: A conjoint approach. Journal of Retailing.
301
Euromonitor. (2010). Packaged food in China. Retrieved June 1st, 2010, from
http://www.euromonitor.com/Packaged_Food_in_China
Eves, A., and Cheng, L. (2007). Cross Cultural Evaluation of Factors Driving Intention to
Purchase New Food Products: Beijing, China, and South-East England. International Journal
of Consumer Studies, 31 (1), 1-8.
Ewing, M. T., Napoli, J., Pitt, L. F. and Watts, A. (2002). On the Renaissance of Chinese
Brands. Journal of Advertising 21 (2): 197-216.
Ezzy, D. (2002). Qualitative analysis: Practice and innovation. Crows Nest, NSW: Allen and
Unwin.
Fabrigar, L. R., MacCullum, R. C., Wegener, D. T., and Strahan, E. J. (1999). Evaluating the
use of exploratory factor analysis in psychological research. Psychological Bulletin, 4 (3),
272-299.
Fan, Y. (2002). Questioning Guanxi: definition, classification and implications. International
Business Review, 11, 543-561.
Fang, T., Worm, V., and Tung, R. L. (2008). Changing Success and Failure Factors in
Business Negotiations with the PRC. International Business Review, 17 (2), 159-169.
Farhoomand, A. F., and Drury, D. H. (2002). Overload. Communications of the ACM, 45
(10). 127.
Felzenstein, C., Hibbert, S., and Vong, G. (2004). Is country of origin the fifth element in the
marketing mix? A critical review of the literature. Journal of Food Products Marketing, 10
(4), 73-84.
Ferguson, J. L., Dadzie, K. Q., and Johnston, W. J. (2008). Country of origin effects in
service evaluation in emerging markets: some insights from five West African counties.
Journal of Business and Industrial Marketing, 23(6), 429-437.
302
Fieldhouse, P. (1995) Food and Nutrition: Customs and Culture, 2nd ed., Chapman &
Hall, London.
Fielding, N. (1996). Qualitative interviewing. In Gilbert, N. editor, Researching social life.
London: Sage Publications.
Fishbein, M., and Azjen, I. (1975). Belief, Attitude, Intention and Behavior: An Introduction
to Theory and Research. Reading, MA: Addison-Wesley.
Fisher, R., and Ury, W. (1986). Getting to Yes: Negotiating Agreement Without Giving in.
Boston, MA. Mifflin.
Food Australia Report. (2008). Canberra: Australian Government.
Ford, C. M., and Gioia, D. A. (2000). Factors influencing creativity in the domain of
managerial decision making. Journal of Management. 26 (4). 705-732.
Forsythe, S., Kim, J. O., and Petee, T. (1999). Product cue usage in two Asian markets: A
cross-cultural comparison. Asia Pacific Journal of Management, 16, 275-292.
Fournier, S. (1998). Consumers and their Brands: Developing Relationship Theory in
Consumer Research. Journal of Consumer Research, 24(4), 343-373.
Frambach, R. T., Prabhu, J., and Verhallen, T.M.M. (2003). The influence of business
strategy on new product activity: The role of marketing orientation. International
Journal of Research in Marketing, 20, 377-397.
Francis, J., and Collins-Dodd, C. (2007). Impact of Export Promotion Programs on Firm
Competencies, Strategies and Performance: The Case of Canadian High-Technology
SMEs. International Marketing Review, 21 (4/5), 474 - 495.
Francis, J. N., Lam, J. P., and Walls, J. (2002). The impact of linguistic differences on
international brand name standardization: A comparison of English and Chinese brand
names of Fortune-500 companies. Journal of International Marketing. 10 (1). 98-116.
303
Fraser, C., and Hite, R. E. (1988). An Adaptive Utility Approach for Improving
Use of Marketing Models. Journal of Marketing, 52 (4), 96-103.
Fredrickson, J. W. (1986). The strategic decision process and organizational structure.
Academy of management review, 11 (2), 280-297.
Frewer, L. J., Howard, C., Hedderley, D., and Shepherd, R. (1998). Methodological
Approaches to Assessing Risk Perceptions Associated with Food-Related Hazards. Risk
Analysis: An International Journal, 18 (1), 95-102.
Frohlich, M. T. (2002). Techniques for Improving Response Rates in OM Survey Research.
Journal of Operations Management, 20, 53-62.
Fry, L. W., and Slocum Jnr., J. W. (2008). Maximizing the Triple Bottom Line Through
Spiritual Leadership. Organisational Dynamics, 37 (1), 86-96.
Furst, T., Connors, M., Bisogni, C. A., Sobal, J., and Falk, L. W. (1996). Food Choice:
A Conceptual Model of the Process. Appetite, 26 (3), 247–266.
Gale, F. (2002a). Betting the farm: Will China's food imports rise? The China Business
Review, (March-April), 6-11.
Gale, F. (2002b). China’s Food and Agriculture: Issues for the 21st Century. U.S. Department
of Agriculture.
Gale, F. (2003). China's Growing Affluence. Amber Waves 1 (3), 8-21.
Gale, F. and Huang, K. (2007). Demand for Food Quantity Quality in China (No. 32).
Galvez, F.C.F., and Resurreccion, A. V. (1992). Reliability of the focus group technique in
determining the quality characteristics of mungbean noodles. Journal of Sensory Studies, 7
(4), 315-326.
304
Ganesh, J., and Oakenfull, G. (1999). International Product Position: An Illustration Using
Perceptual Mapping Techniques. Journal of Global Marketing, 13 (2), 85-111.
Garber, L. L., Hyatt, E. M., and Starr, R. G. (2000). The effects of food colour on perceived
flavour. Journal of Marketing Theory and Practice, 8 (4), 59-72.
Gardiner, M., and Tiggeman, M. (1999). Gender Differences in Leadership Style, Job
Stress and Mental Health in Male and Female Dominated Industries. Journal of
Occupational and Organizational Psychology, 72, 301-315.
Garrott, J. R. (1995). Chinese Cultural Values: New Angles, Added Insights.
International Journal of Intercultural Relations, 19 (2), 211-225.
Gemünden, H. G. (2012). Success factors of export marketing. Perspectives on International
Marketing-Re-issued, 33.
Gedrich, K. (2003). Determinants of nutritional behaviour: A multitude of levers for
successful intervention? Appetite (41), 231-238.
Gertner, R. K., Gertner, D., and Guthrey, D. (2006). The Implications of Export Performance
Management Measurement for the Significance of the Determinants of Export Performance:
An Empirical Investigation of Brazilian Firms. Journal of Global Marketing, 20 (1), 21-38.
Gerwin, D., and Ferris, J. S. (2004). Organizing New Product Development Projects in
Strategic Alliances. Organization Science, 15 (1), 22-37.
Gibson, C. B. (1999). Do They Do What They Believe They Can? Group Efficacy and Group
Effectiveness Across Tasks and Cultures. Academy of Management Journal, 42 (2), 138-152.
Gibson, C. B., and Cohen, S. G. (2003). Virtual teams that work: Creating conditions for
virtual team effectiveness. San Fransisco: Jossey-Bass.
Gibson, C. B. (1999). Do They Do What They Believe They Can? Group Efficacy and
Group Effectiveness Across Tasks and Cultures. Academy of Management Journal,
305
42 (2), 138-152.
Gibson, E. L. (2006). Emotional Influences on Food Choice: Sensory, Physiological and
Psychological Pathways Physiology & Behavior, 89 (1), 53-61.
Gil, J. M., Gracia, A., and Pérez, L. P. Y. (1995). Food consumption and economic
development in the European Union. European Review of Agricultural Economics, 22 (3),
385-399.
Gill, J., and Whittle, S. (1992). Management By Panacea: Accounting for Transience.
Journal of Management Studies, 30 (2), 282-295.
Gilmore, J. H., and Pine, B. J. (1997). The Four Faces of Customization. Harvard
Business Review, 75 (1), 91-101.
Gitner, F. J. (1998). The new American program - twenty one years of successful
partnerships serving diverse and changing communities. References & User Services
Quarterly, 38, 143-145.
Gleason, T. C., Devlin, S. J., and Brown, M. (1994). In search of the optimum scale.
Marketing Research, 6 (4), 28-33.
Goddard, J., Tavakoli, M., and Wilson, J. O. S. (2009). Sources of Variation n Firm
Profitability and Growth. Journal of Business Research, 62 (4), 495-508.
Gomes, L., and Ramaswamy, K. (1999). An Empirical Investigation of the Form of
Relationship between Multinationality and Performance. Journal of International Business
Studies, 30 (1), 173-187.
Gong, W. (2009). National Culture and Global Diffusion of Business-to-Consumer E-
Commerce. Cross Cultural Management: An International Journal, 16 (1), 83-101.
306
Good, L. K., and Huddlestone, P. (1995). Ethnocentrism and the Eastern European
Consumer: Are Feelings and Intentions Related? International Management Review, 12 (15),
35-48.
Goodman, N. (1992). Introduction to sociology. New York, NY: Harper Perennial.
Gossner, C. M. E., Schlundt, J., Embarek, P. B., Hird, S., Lo-Fo-Wong, D., Beltran, J. J. O.,
... & Tritscher, A. (2009). The melamine incident: implications for international food and
feed safety. Environmental Health Perspectives, 117 (12), 1803.
Gotteland, D., and Boule, J.-M. (2006). The market orientation-new product performance
relationship: Redefining the moderating role of environmental conditions. International
Journal of Research in Marketing, 23, 171-185.
Gould, B. W. (2002). Household Composition and Food Expenditures in China.
Agribusiness, 18 (3), 387-407.
Graham, J.L. and Hergberger, R.A. (1983). Negotiators Abroad – Don’t Shoot From the Hip.
Harvard Business Review, July-August, 160-186.
Graham, J. and Lin, C. Y. (1987). A Comparison of MArketing Negotiations in the ROC
(Taiwan) and the US. In: Advances in International Marketing, ed. S. T. Cavusgil, JAI Press.
Grbich, C. (1999). Qualitative research in health: An introduction. St. Leonards, New South
Wales: Allen and Unwin.
Green, P. E. and Krieger, A. M. (1991) Segmenting Markets with Conjoint Analysis. Journal
of Marketing 55 (4): 20-31.
Greenaway, D., Guariglia, A., and Kneller, R. (2007). Financial factors and exporting
decisions. Journal of International Economics. 73 (2). 377-395.
Greitemeyer, T., Schulz-Hardt, S., Brodbeck, F. C., and Frey, D. (2006). Information
Sampling and Group Decision Making: The Effects of an Advocacy Decision Procedure
307
and Task Experience. Journal of Experimental Psychology: Applied, 12 (1), 31-42.
Grewal, R., and Dharwadkar, R. (2002). The Role Of the Institutional Environment in
Marketing Channels. Journal of Marketing, 66 (July), 82-97.
Grieve, K. W. (1991). Traditional Beliefs and Colour Perception. Perceptual and Motor
Skills, 72 (4), 1319-1323.
Griffee, D. T. (2005). Research Tips: Interview Data Collection. Journal of Developmental
Education, 28 (3), 36-37.
Grossman, G. M., and Helpman, E. (1991). Innovation and Growth in a Global Economy.
Cambridge, Mass: MIT Press.
Grover, R. and Srinivasan, V. (1987) A Simultaneous Approach to Market Segmentation and
Market Structuring. Journal of Marketing Research 24 (May): 139-153.
Grow, R. F. (1986). Japanese and American firms in China: Lessons of a new market.
Columbia Journal of World Business (Spring), 49-56.
Gruca, T. S., and Rego, L. L. (2005). Customer Satisfaction, Cash Flow, and
Shareholder Value. Journal of Marketing, 69 (3), 115-130.
Gruenfeld, D. H., Mannix, E. A., Williams, K. Y., and Neale, M. A. (1996). Group
composition and decision making: How member familiarity and information distribution
affect process and performance. Organizational behavior and human decision processes, 67
(1), 1-15.
Grunert, K. G. (2005). Food quality and safety: consumer perception and demand. European
Review of Agricultural Economics. 32 (3). 369-391.
Grunert, K. G., Lähteenmäki, L., Nielsen, N. A., Poulsen, J. B., Ueland, O., and Åström,
(2001). Consumer Perceptions of Food Products Involving Gnetic Modification:
308
Results from a Qualitative Study in Four Nordic Countries. Food Quality and Preference, 12
(8), 527-542.
Grunert, K. G. (2007). How Consumers Perceive Food Quality. In L. Frewer and H. V.
Trijp (Eds.), Understanding Consumers of Food Products. Cambridge, UK: Woodhhead
Publishing.
Guiltinan, J. P. (1999). Launch Strategy, Launch Tactics, and Demand Outcomes.
Journal of Product Innovation Management, 16, 509-529.
Guo, C., and Giacobbe-Miller, J. (2010). Guanxi Dynamics and Entrepreneurial Firm
Creation and Development in China. Management and Organization Review, 6 (2), 267-
291.
Guo, X., Hao, W., and Shang, X. (2011). Consumer Perceptions of Brand Functions: An
Empirical Study in China. Journal of Consumer Marketing, 28 (4), 269-279.
Guo, X., Mroz, T. A., Popkin, B. M. and Zhai, F. (2000) Structural Change in the Impact of
Income on Food Consumption in China, 1989-1993. Economic Development and Cultural
Change 48 (4): 737-760.
Gurhan-Canli, Z., and Maheswaran, D. (2000a). Cultural Variation in Country of Origin
Effects. Journal of Marketing Research, 37 (3), 309-317.
Gurhan-Canli, Z., and Maheswaran, D. (2000b). Determinants of Country of Origin
Evaluation. Journal of Consumer Research, 27 (1), 96-108.
Hamilton, R., and Chernev, A. (2010). The Impact of Product Line Extensions and
Consumer Goals on the Formation of Price Image. Journal of Marketing Research,
47 (1), 51-62.
Han, C.M. (1989). Country image: a halo or summary construct? Journal of marketing
Research, 24 (6), 222-229.
309
Han, C.M. (1990). Testing the role of country of image in consumer choice behaviour.
European Journal of Marketing, 24 (6), 24-40.
Han, C.M., and Terpstra, V. (1988). Country of origin effects for uni-national and bi-national
products. Journal of International Business Studies, 19 (2), 235-255.
Hannertz, U. (1990). Cosmopolitans and Locals in World Culture, Sage, Thousand Oaks,
CA.
Harris, R. J., Garner‐Earl, B., Sprick, S. J., and Carroll, C. (1994). Effects of foreign product
names and country‐of‐origin attributions on advertisement evaluations. Psychology &
Marketing, 11 (2), 129-144.
Hart, H., and Tzokas, N. (1999). The impact of marketing research activity on SME export
performance: Evidence from the UK. Journal of Small Business Management, (April), 63-75.
Hassler, M. (2003). Crisis, Coincidences and Strategic Market Behavior: The
Internationalization of Indonesian Clothing Manufacturers. Area - Royal Geographical
Society, 35 (3), 241-250.
Hastie, R. (2001). Problems for Judgement and Decision Making. Annual Review of
Psychology, 52 653–683.
Hauser, J. R. and Katz, G. (1998). Metrics: You Are What You Measure! European
Management Journal 16 (5): 517-528.
Hauser, J. R., Tellis, G. J., and Griffin, A. (2006). Research on Innovation: A Review and
Agenda for Marketing Science. Marketing Science, 25, 687-717.
Haveman, H. A. (1993). Organizational Size and Change: Diversification in the Savings and
Loan Industry After Deregulation. Administrative Science Quarterly 18 (5): 20-50.
310
Hawawini, G., Subramanian, V., and Verdin, P. (2004). The Home Country in the Age of
Globalization: How Much Does it Matter for Firm Performance? Journal of World Business,
39, 121-135.
Hedlund, J., Ilgen, D. R., and Hollenbeck, J.R. (1998). Decision accuracy in computer-
mediated versus face-to-face decision-making teams. Organizational Behavior and Human
Decision Process, 76 (1), 30-47.
Heilig, G. K., Fischer, G., and Van Velthuizen, H. (2000). Can China feed itself? An analysis
of China's food prospects with special reference to water resources. The International Journal
of Sustainable Development & World Ecology, 7 (3), 153-172.
Helm, B. (2009, 15 June). The Dubbing of 'Bing'. Business Week.
Henchion, M., and McIntrye, B. (2000). Regional imagery and quality products: The Irish
experience. British Food Journal, 102 (8), 630-644.
Hendry, J. (2000). Strategic Decision Making, Discourse, And Strategy As Social
Practice. Journal of Management Studies, 37 (7), 955–978.
Hennessey, J. E., Bell, T. S., and Kwortnik, R. J. (2005). Lexical references in semantic
processing of simple words: Implications for brand names. Psychology and Marketing, 22
(1), 51-69.
Henson, S., Cranfield, J., and Herath, D. (2010). Understanding Consumer Receptivity
Towards Foods and Non-Prescription Pills Containing Phytosterols as a Means to Offset the
Risk of CardioVascular Disease: An Application of Protection Motivation Theory.
International Journal of Consumer Studies, 14 (1), 28-37.
Herche, J. (1994). Ethnocentric tendencies, marketing strategy and import purchase
behaviour. International Marketing Review, 11 (3), 4-16.
311
Herrmann, R. and Roder, C. (1995). Does Food Consumption Converge Internationally?
Measurement, Empirical Tests and Determinants. European Review of Agricultural
Economics 22 (3), 400-414.
Herz, M.F. and Diamantopoulos, A. (2013). Activation of Country Stereotypes:
Automaticity, Consonance and Impact. Journal of the Academy of Marketing Science. 41 (4).
400-417
Hessels, J., and Terjesen, S. (2010). Resource dependency and institutional theory
perspectives on direct and indirect export choices. Small Business Economics. 34 (2). 203-
220.
Hickson, D. J., Wilson, D. C., Cray, D., and Mallory, G. R. (1986). Top decisions: Strategic
decision making in organisations. San Fransisco, CA: Jossey-Bass.
Hill, C. W. L., Hwand, P., and Kim, W. C. (1990). An Eclectic Theory of the Choice on
International Entry Mode. Strategic Management Journal, 2, 117-128.
Hill, J. S., and Still, R.R. (1984). Adapting products to lesser developed country tastes.
Harvard Business Review, (March-April), 92-101.
Hiltrop, J-M., and Udall, S. (1995). The Essence of Negotiation. Hemel Hempstead: Prentice
Hall.
Hinsz, V. B. (1999). Group decision-making with responses of a quantitative nature:
The theory of social decisions schemes for quantities. Organizational Behavior and
Human Decision Process, 80 (1), 28-49.
Hitt, M. A., Hoskisson, R. E., and Kim, H. (1997). International Diversification
and Firm Performance in Product Diversified Firms. Academy of Management
Journal, 40 (4), 767-798.
Hitt, M. A., Dacin, M. T., Levitas, E., Arregle, J. L., and Borza, A. (2000). Partner
selection in emerging and developed market contexts: Resource-based and
312
organizational learning perspectives. Academy of Management Journal. 43 (3).
449-467.
Hobbs, J. E., Fearne, A., and Spriggs, J. (2002). Incentive structures for food safety and
quality assurance: an international comparison. Food Control, 13 (2), 77-81.
Hobday, M. (1998). Product complexity, innovation and industrial organisation. Research
Policy, 26 (6), 689-710.
Hoeffler, S,. and Keller, K.L. (2002). Buisling Brand Through Corporate Social
Marketing. Journal of Public Policy and Marketing. 21 (1), 78-89
Hoegg, J. and Alba, J. W. (2007). Taste Perception: More than Meets the Tongue.
Journal of Consumer Research 33, (2) 490-498.
Hoffman, R. (2000). Country of Origin: A Consumer Perception Perspective of Fresh
Meat. British Food Journal. 102 (3), 211-229.
Hofstede, G. (1983). National Cultures Revisited. Behavior Science Research, 18 (4),
308-330.
Hofstede, G. (1984). Culture's Consequences: International Differences in Work-Related
Values. Beverly Hills, CA.: Sage.
Hofstede, G. (1993). Cultural Constraints in Management Theories. Academy of Management
Executive, 7 (1), 81-94.
Hofstede, G. (1997). Cultures and Organizations: Software of the Mind, McGraw Hill,
London.
Hollenbeck, J. R., Ilgen, D.R., Sego, D.J., Hedlund, J., Major, D.A., and Phillips, J.
(1995). Multilevel theory of team decision-making: Decision performance in teams
incorporating distributed expertise. Journal of Applied Psychology, 80, 292-316.
313
Hollingshead, A. (1995). The rank-order effect in-group decision-making.
Organizational Behavior and Human Decision Process, 68 (3), 1996.
Holzmuller, H. H., and Kasper, H. (1990). The Decision Maker and Export Activity:
A Cross National Comparison of the Foreign Orientation of Austrian Managers.
Management International Review, 3 (30), 217-230.
Holzmuller, H. H., and Kasper, H. (1991). On a Theory of Export Performance:
Personal and Organisational Determinants of Export Trade Activities Observed
in Small and Medium Sized Firms. Management International Review,
31 (Special Issue), 45-70.
Honekopp, J. (2003). Precision of probability information and prominence outcomes: A
description and evaluation of decisions under uncertainty. Organizational Behavior and
Human Decision Process, 90, 124-138.
Hong, S-T. and Wyer, R.S. (1989), Effects of country of origin and product attribute
information and product evaluation: An information processing perspective. Journal of
Consumer Research, 16 (2), 175-187.
Hong, S-T. and Wyer, R. S. (1990). Determinants of product evaluation: Effects of the
time interval between knowledge of a product's country of origin and information about
its specific attributes. Journal of Consumer Research, 17 (3), 277-288.
Hooley, G. J., and Lynch, J. E. (1985). Marketing lessons from UL's high flying companies.
Journal of Marketing Management, 1 (1), 43-49.
Hooper, B. (2000). Globalisation and resistance in post-Mao China: The case of foreign
consumer goods. Asian Studies Review, 24 (4), 439-470.
Horton, L. R. (1998). Food from Developing Countries: steps to improve compliance. Food
& Drug LJ, 53, 139.
314
Houston, M. J., and Eckhardt, G. M. (2000/2001). Culture's consequences on consumer
behaviour toward food in Asia. Asian Journal of Marketing, 8 (2), 3-24.
Hrboticky, N., and Krondl, M. (1985). Dietary acculturation process of Chinese adolescent
immigrants. Nutritional Resource, 5, 1185-1197.
Hsieh, M. H., Pan, S. L., and Setiono, R. (2004). Product-, corporate-, and country-image
dimensions and purchase behavior: a multi-country analysis. Journal of the Academy of
Marketing Science. 32 (3). 251-270.
Hsu, H., Chern, W. S. and Gale, F. (2002) How Will Rising Income Affect the Structure for
Food Demand? In: China's Food and Agriculture: Issues for the 21st Century, ed.. F. Gale.
Hu, D., Reardon, T., Rozelle, S., Timmer, P. and Wang, H. (2004). The Emergence of
Supermarkets with Chinese Characteristics: Challenges and Opportunities for China's
Agricultural Development. Development Policy Review 22 (5): 557-586.
Huang, J., and Rozelle, S. (1998). Market Development and Food Demand in Rural China.
China Economic Review, 9 (1), 25-45.
Huang, J., Rozelle, S., and Rosengrant, M. W. (1999). China's food economy to the twenty-
first century: Supply, demand and trade. Economic Development and Cultural Change, 47
(4), 737-766.
Huang, J., and Rozelle, S. (2003). The impact on trade liberalisation on China's agricultural
and rural economy. SAIS Review, 23 (1), 115-131.
Huber, J., and McCann, J. (1982). The impact of inferential beliefs on product evaluations.
Journal of Marketing Research, 19 (August), 324-333.
Huddleston, P., Good, L. K., and Stoel, L. (2001). Consumer ethnocentrism, product
necessity and Polish consumers' perceptions of quality. International Journal of Retail and
Distribution Management, 29 (5), 236-246.
315
Hughes, P., and Morgan, R. E. (2007). A Resource-Advantage Perspective of Product-
Market-strategy Performance and Strategic Capital in High Technology Firms.
Industrial Marketing Management, 36 (4), 503-517.
Hui, M. K., and Zhou, L. (2002). Linking product evaluations and purchase intention
for country-of-origin effects. Journal of Global Marketing, 15 (3,4), 95-105.
Hult, G. T. M., and Keillor, B.D. (1994). The impact of social desirability bias on consumer
ethnocentrism research: a cross national perspective. Journal of Marketing Management, 4
(2), 48-55.
Hultman, M., Robson, M. J., and Katsikeas, C. S. (2009). Export Product Strategy Fit
and Performance: An Empirical Investigation Journal of International Marketing, 17
(4), 1-23.
Humphrey, S. E., Moon, H., Conlon., and Hofmann, D.A. (2004). Decision-making and
behaviour fluidity: How focus on project completion and emphasis on safety changes
over the course of projects. Organizational Behavior and Human Decision Process, 93,
14-27.
Hung, F.C. (2004). Cultural Influence on Relationship Cultivation Strategies: Multinational
Companies in China. Journal of Communication Management, 8 (3), 264-281.
Hung, M. (2001). Accounting Standards and Value Relevance of Financial Statements: An
International Analysis. Journal of Accounting Economics, 30, 401-420.
Hvan, L., Mortensen, N. H., and Riis, J. (2008). Product Customization. Heidelberg,
Germany: Springer-Verlag.
Ianchovichina, E., and Martin, W. (2004). Impacts of China's accession to the World Trade
Organisation. The World Bank Economic Review, 18 (1), 3-27.
Ingelfinger, J. R. (2008). Melamine and the global implications of food contamination. New
England Journal of Medicine, 359 (26), 2745-2748.
316
Inkpen, A. C., and Beamish, P. W. (1997). Knowledge, Bargaining Power, and the Instability
of International Joint Ventures. Academic Management Review, 22, 177-202.
Insch, G. S., and McBride, J. B. (2004). The impact of country-of-origin cues on consumer
perceptions of product quality: a binational test of the decomposed country-of-origin
construct. Journal of Business Research. 57 (3). 256-265.
Jacobs, L., Gao, G., and Herbig, P. (1996). A guide to marketing in China. Review of
Business, 18 (1), 3-6.
Jacoby, J., Chestnut, R. W., and Silberman, W. (1977). Consumer Use and Comprehension of
Nutrition Information. Journal of Consumer Research, 4 (2), 119-128.
Jain, S.C. (1989). Standardization of international marketing strategy: Some research
hypotheses. Journal of Marketing. 53 (January), 70-79.
Janis, I. L. (1972). Victims of Groupthink. Boston, Mass.: Houghton Miffin.
Jarvenpaa, S. L., and Leidner, D. E. (1999). Communication and trust in global teams.
Organization Science, 10, 791-815.
Javagli, R. J., Khare, V. P., Gross, A. C., and Scherer, R. F. (2005). An application of the
consumer ethnocentrism model to French consumers. International Business Review, 14,
325-344.
Jensen, Ø., and Hansen, K. V. (2007). Consumer values among restaurant
customers. International Journal of Hospitality Management. 26 (3). 603-622.
Johanson, J. K., and Vahlne, J. E. (1990). The Mechanism for Internationalization.
International Marketing Review, 7 (4), 11-24.
317
Johanson, J., and Vahlne, J. E. (2009). The Uppsala internationalization process model
revisited: From liability of foreignness to liability of outsidership. Journal of International
Business Studies, 40 (9), 1411-1431.
Johansson, J. K., and Nebenzahl, I. D. (1986). Multinational Production: Effect on Brand
Value. Journal of International Business Studies, 17 (Fall), 101-126.
Johnson, J. L., and Aruthanes, W. (1995). Ideal and actual product adaptation in US
exporting firms. International Marketing Review, 12 (3), 31-46.
Johnson, W. H. A., and Filippini, R. (2013). Integration Capabilities As Mediator of
Product Development Practices–Performance. Journal of Engineering and Technology
Management, 30 (1), 95-111.
Josiassen, A., and Harzing, A. W. (2008). Descending from the Ivory Tower: Reflections on
the Relevance and Future of Country‐of‐Origin Research. European Management Review. 5
(4). 264-270.
Julien, P. A., and Ramangalahy, C. (2003). Competitive strategy and performance of
exporting SMEs: an empirical investigation of the impact of their export information search
and competencies. Entrepreneurship Theory and Practice. 27 (3). 227-245.
Jussaume, R. A. (2001). Factors Associated with Modern Urban Chinese Food
Consumption Patterns. Journal of Contemporary China. 10 (27), 219-232.
Jussaume, R. A. and Judson, D. H. (1992). Public perception about food safety in the
United States and Japan. Rural Sociology, 57, 163-176.
Kahn, B. (1998). Dynamic relationships with customers: High-variety strategies.
Journal of the Academy of Marketing Science, 26 (1), 45-53.
Kan, X. (1996). Legal aspects of functional foods: The China situation. Nutritional
News, 54 (11), S162-S166.
318
Kang, N.-S. (2004). Confucian familism and its social/religious embodiment in
Christianity: Reconsidering the family discourse from a feminist perspective.
Asia Journal of Theology, 18 (1), 168-189.
Kapferer, J. N. (1992). How global are global brands? Paper presented at the ESOMAR
Seminar; The challenge of branding today and in the future.
Kaplan, R. S., and Norton, D. P. (1992). The Balanced Scorecard: Measures
that Drive Performance. Harvard Business Review, 70 (1), 71-79.
Karjalainen, P. (2008). R&D Investments: The Effects of Different Financial
Environments on Firm Profitability. Journal of Multinational Financial
Investment, 18 (2), 79-83.
Karlsson, G. (1988). A phenomenological psychological study of decision and choice.
Acta Psychologica, 68, 7-25.
Katsikeas, C. S., Leonidiou, L., and Morgan, N. A. (2000). Firm Level Export Performance
Assessment: Review, Evaluation, and Development. Journal of Academy of Marketing
Science, 28 (4), 493-511.
Katsikeas, C. S., and Morgan, R. E. (1994). Differences in Perceptions of Exporting
Problems Based on Firm Size and Export Market Experience. European Journal of
Marketing, 28 (5), 17-35.
Katsikeas, C. S., Piercy, N. F., and Ioannidis, C. (1996). Determinants of Export Performance
in a European Context. European Journal of Marketing, 3 (6), 6-35.
Katsikeas, C. S., Samiee, S., and Theodosiou, M. (2006). Strategy Fit and Performance
Consequences of International Marketing Standardization. Strategic Management Journal,
27, 867-890.
Kaynak, E., and Cavusgil, S.T. (1983). Consumer attitudes towards products of foreign
origin: Do they vary across product classes? International Journal of Advertising, 2, 147-157.
319
Kaynak, E., and Kara, A. (2002). Consumer perceptions of foreign products. An analysis of
product-country images and ethnocentrism. European Journal of Marketing, 36 (7/8), 928-
949.
Kaynak, E., Kucukemiroglu, O., and Hyder, A. S. (2000). Consumers’ country-of-origin
(COO) perceptions of imported products in a homogenous less-developed country. European
Journal of Marketing. 34 (9/10). 1221-1241.
Kearney, M., Kearney, M.J., and Gibney, M. J. (1997). Methods used to conduct the survey
on consumer attitudes to food, nutrition, and health on nationally represented samples of
adults from each member state of the European Union. European Journal of Clinical
Nutrition, 51 (2), S3-S7.
Keegan, W.J. and Green, M.C. (2000). Global Marketing, Prentice-Hall, Upper Saddle River,
NJ.
Keller, K. L. and Moorthi, Y. L. R. (2003). Branding in Developing Markets. Business
Horizons 46 (3), 49-59.
Keller, K. L., Parameswaran, M. G., and Jacob, I. (2011). Strategic brand management:
Building, measuring, and managing brand equity. Pearson Education India.
Kelly, P. (2008). Achieving desirable group-work outcomes through the group allocation
process. Team Performance Management. 14 (1-2). 1-2.
Ken, T. (1985). Japan's Matrix of Nature, Culture, and Technology. Management Review 14
(5), 42-47.
Keren, G. (1996). Perspectives of behavioural decision-making: Some critical notes.
Organizational Behavior and Human Decision Process, 65 (3), 169-178.
Kester, L., Griffith, A., Hultink, E. J., and Lauche, K. (2011). Expolring Portfolio
Decion-Making Process. Journal of Product Innovation Management, 28, 641-661.
320
Khatri, N., and Ng, H. A. (2000). The role of intuition in strategic decision making. Human
Relations. 53 (1). 57-86.
Khatri, N., Tsang, E. W. K., and Begley, T. M. (2006). Cronyism: a cross cultural analysis.
Journal of International Business Studies 37 (1), 61-75.
Kim, C. K. (1995). Brand Popularity and Country Image in Global Competition: Managerial
Implications. Journal of Product and Brand Management, 4 (5), 21-33.
Kim, J., Forsythe, S., Gu, Q., and Moon, S.J. (2002). Cross-cultural consumer values, needs
and purchase behaviour. Journal of Consumer Marketing, 19 (6), 481-502.
Kim, S.-Y., Nayga, R. M., and Capps, O. (2001). Food label use, self selectivity, and diet
quality. Journal of Consumer Affairs (35), 346-363.
Kim, W. C., Hwang, P., and Burgers, W. P. (1989). Global Diversification Strategy and
Corporate Profit Performance. Strategic Management Journal, 10, 45-57.
Kim, W. C., Hwang, P., and Burgers, W. P. (1993). Multinationals' Diversification and the
Risk-Return Trade-Off. Strategic Management Journal, 14, 275-286.
Kirkbride, P. S., Tang, S. F., and Westwood, R. I. (1991). Chinese conflict preferences and
negotiating behaviour: Cultural and psychological influences. Organization studies, 12 (3),
365-386.
Kirkman, B. L., Gibson, C. B., and Shapiro, D. L. (2001). Enhancing the Implementation and
Effectiveness of Work Teams in Global Affiliates. Organisational Dynamics, 30 (1), 12-29.
Kirpalani, V. H., and Macintosh, N. B. (1980). International Marketing Effectiveness of
Technology Oriented Small Firms. Journal of International Business Studies, 10 (Winter),
81-90.
Kjaernes, U., and Holm, L. (2007). Social Factors and Food Choice: Consumption As
321
Practice. In L. Frewer & H. V. Trijp (Eds.), Understanding Consumers of Food
Products. Cambridge, UK: Woodheath Publishing.
Klein, J. G., Ettenson, R., and Morris, M. D. (1999). Consumer animosity and consumer
ethnocentrism: An analysis of unique antecedents. Journal of International Consumer
Marketing, 11 (4), 5-24.
Klein, S., Frazier, G. L., and Roth, V. J. (1990). A Transaction Cost Model of Channel
Integration in International Markets. Journal of Marketing Research, 27 (2), 196-208.
Kleinschmidt, E.J., and Cooper, R.G. (1988). The performance impact of an international
orientation on product innovation. European Journal of Marketing, 22 (10), 56-71.
Knight, G. A., and Calantone, R. J. (2000). A flexible model of consumer country-of-origin
perceptions: A cross-cultural investigation. International Marketing Review, 17 (2), 127-145.
Knorr-Cetina, K. (1981). The micro-sociological challenge of macro-sociology: Towards a
reconstruction of social theory and methodology. In K. Knorr-Cetina and K. Cicourel (Eds.),
Advances In Social Theory and Methodology. London, UK: Routledge and Keegan Paul.
Knudsen, T., and Madsen, T. K. (2002). Export Strategy: A Dynamic Capabilities
Perspective. Scandinavian Journal of Management (18), 475-502.
Kocher, M. G., and Sutter, M. (2006). Time is Money—Time Pressure, Incentives, and the
Quality of Decision-Making. Journal of Economic Behavior and Organization, 61 (3), 375–
392.
KoÈster, E. P., and Mojet, J. (2007). Theories of Food Choice Development. In L.
Frewer and H. V. Trijp (Eds.), Understanding Consumers of Food Products.
Cambridge, UK: Woodheath Publishing.
Kogut, B. (1985). Designing Global Strategies: Profiting from Operational Efficiency. Sloan
Management Review, 26 (Fall), 27-38.
322
Kogut, B. (2001). Methodological Contributions in International Business and the Direction
of Academic Research Activity. In A. Rugman & T. Brewer (Eds.), The Oxford Handbook of
International Business (pp. 785-817). Oxford, UK: Oxford University Press.
Kotha, S. (1995). Mass Customization: Implementing The Emerging Paradigm For
Competitive Advantage, Strategic Management Journal, 16, 21-42.
Korthals, M. (2001). Taking consumers seriously: Two concepts of consumer
sovereignty. Journal of Agricultural and Environmental Ethics. 14 (2). 201-215.
Korthals, D. (2007). The Ethics of Food Production and Consumption. In L. Frewer and
H. V. Trijp (Eds.), Understanding Consumers of Food Products. Cambridge, UK:
Woodheath Publishing.
Kotabe, M. (1990). Corporate Product Policy and Innovative Behaviour of European and
Japanese Multi-Nationals: An Empirical Investigation. Journal of Marketing, 54 (April), 19-
33.
Kotler, P. (1986). Global Standardization: Courting Danger. Journal of Consumer Marketing,
3 (Spring), 13–15
Kotler, P. (1997). Marketing Management: Analysis, Planning, Implementation, and Control.
Englewood Cliffs: Prentice-Hall International.
Kotler, P. (2010). The Importance of China Marketing. International Journal of China
Marketing, 1 (1), 14-16.
Kotler, P., and Gertner, D. (2002). Country as brand, product, and beyond: A place
marketing and brand management perspective. The Journal of Brand Management. 9
(4). 249-261.
Kotler, P., and Keller, K. L. (2012). Marketing Management (14 ed.). Upper Saddle River,
NJ: Prentice Hall.
323
Kozlowski, S. W., and Bell, B. S. (2003). Work groups and teams in organizations.
Handbook of Psychology, Second Edition.
Kragh, S. (2002). From Dichotomy to Overlapping Scenarios: A re-definition of the
strategies of local adaptation and global standardisation. Unpublished manuscript., Source:
http://www.cbs.dk/departments/ikl/publications/workpapers/WP52.doc.
Krantz, D. H., and Kunreuther, H. C. (2007). Goals and Plans in Decision Making. Judgment
and Decision Making, 2 (3), 137-168.
Krause, J. H., Wilson, W. W. and Dooley, F. J. (1995). Global Market Segmentation.
Agribusiness 11 (3), 195-206.
Krishnan, V. and Ulrich, K. T. (2001). Product Development Decisions: A Review of the
Literature. Management Science 47 (1), 1-21.
Kroeber, A. L., and Kluckhohn, C. (1952). A Critical Review of Concepts and Definitions,
Random House, New York, NY.
Kuhberger, A., Schulte-Mecklenbech, M., and Perner, J. (2002). Framing Decisions:
Hypothetical and real. Organizational Behavior and Human Decision Process, 89,
1162-1175.
Kumar, V. and A. Nagpal (2001). "Segmenting Global Markets: Look Before You Leap."
Marketing Research 13 (1): 8-13.
Kurtz, R. B., and Rhoades, S. A. (1992). A Note on the Market Share - Profitability
Relationship. Review of Industrial Organzation, 7, 39-50.
Kwok, V. W. Y. (2007, 27 March). Asian Growth Forecast to Moderate. Forbes, 21-22.
Laajimi, A., Garcia, A. and Albisu, L. M. (1997). The Demand for Food in Spain: Economic
and Demographic Effects. Journal of International Food & Agribusiness Marketing 9 (2), 1-
17.
324
LaÈhteenmaÈki, L., Lyly, M., and Urala, N. (2007). Consumer Attitudes Towards
Functional Foods. In L. Frewer and H. V. Trijp (Eds.), Understanding Consumers of
Food Products. Cambridge, UK: Woodheath Publishing.
Lafferty, T., and Higbee, K. L. (1974). Realism and risk taking. Psychological Reports, 34
(3), 827-829.
Lages, L. F., Jap, S., and Griffiths, D. A. (2008). The Role of Past Performance on
Export Ventures: A Short-Term Reactive Approach. Journal of International Business
Studies, 39 (2), 304-325.
Lages L.F. (2000). A conceptual framework of the determinants of export performance:
reorganizing key variables and shifting contingencies in export marketing. Journal of Global
Marketing, 13 (3), 29–51.
Lages, L. F., and Montgomery, D. B. (2001). The effects of prior export performance on
firms' commitment to exporting and marketing strategy adaptation to the foreign market:
Evidence from small and medium exporters. Stanford University, Stanford.
Lages, L. F., and Montgomery, D. B. (2004). Export performance as an antecedent of export
commitment and marketing strategy adaptation. European Journal of Marketing, 38 (9/10),
1186-1214.
Lai, C. S., Chen, C. S., Chiu, C. J., and Pai, D. C. (2011). The Impact of Trust on the
Relationship Between Inter-Organisational Collaboration and Product Innovation
Performance. Technology Analysis & Strategic Management, 23 (1), 65-74.
Lai, T. Y. W. (2004). Combating Deceptive advertisements and Labelling on Food Products:
An Exploratory Study on the Perceptions of Teachers. International Journal of Consumer
Studies, 28 (2), 117-126.
Lampert, S. I., and Jaffe, E.D. (1998). A dynamic approach to country of origin effect.
European Journal of Marketing, 32 (1/2), 61-15.
325
Langerak, F., Hultink, E. J., and Robben, H. S. (2004). The impact of market orientation,
product advantage, and launch proficiency on new product performance and organizational
performance. Journal of Product Innovation Management, 21(2), 79-94.
Landwehr, J. R., Wentzel, D., and Herrmann, A. (2012). The Tipping Point of Design:
How Product Design and Brands Interact to Affect Consumers' Preferences. Psychology
and Marketing, 29 (6), 422-433.
Lappalainen, R., Kearney, J. M., and Gibney, M. J. (1998). A Pan EU Survey of Consumer
Attitudes to Food, Nutrition and Health: An Overview. Food and Quality Preference, 9 (6),
467-478.
Laroche, M., Bergeron, J., and Barbaro-Forleo, G. (2001). Targeting consumers who are
willing to pay more for environmentally friendly products. Journal of Consumer Marketing,
18 (6), 503-520.
Laroche, M., Papadopoulos, N., Heslop, L. A., and Mourali, M. (2005). The influence of
country image structure on consumer evaluations of foreign products. International
Marketing Review, 22 (1), 96-115.
Larson, C., and LaFasto, F. (1989). Teamwork: What must go right/What can go wrong.
Newberry Park: Sage.
Lascu, D.N., and Giese, T. (1995). Exploring country bias in a retailing environment:
Implications of retailer country of origin. Journal of Global Marketing, 9 (1,2), 41-58.
Lau, H.Y. and Ngo, C.M. (2005). The HR System, Organizational Culture, and Product
Innovation. International Business Review. 13 (6). 685-703
Laufer, D., Gillespie, K., McBride, B., and Gonzalez, S. (2005). The role of severity in
consumer attributions of blame: Defensive attributions in product-harm crises in
Mexico. Journal of International Consumer Marketing. 17 (2-3), 33-50.
326
Leclerc, F., Schmitt, B.H., and Dube, L. (1994). Foreign branding and its effects on product
perceptions and attitudes. Journal of Marketing Research., 31 (2), 263-270.
Lee, C., and Griffith, D. A. (2004). The marketing strategy-performance relationship in an
export-driven developing economy: A Korean illustration. International Marketing Review.
21 (3). 321-334.
Lee, J., Roehl, T. W., and Choe, S. (2000). What makes Management Style
Similar and Distinct Across Borders? Growth, Experience, and Culture in Korean and
Japanese Firms. Journal of International Business Studies, 31(4), 631-652.
Lee, J.-W., and Tai, S. W. (2009). Determinants of Product Quality Perceptions
and their Application to Marketing Standardization: The Case of the Automobile
in Kazakhstan. International Journal of Emerging Markets, 4 (2), 119-136.
Lee, D. Y., and Dawes, P. L. (2005). Guanxi, trust, and long-term orientation in Chinese
business markets. Journal of International Marketing, 13 (2), 28-56.
Lemak, D. J., and Aruthanes, W. (1997). Global Business Strategy: A Contingency
Approach. Multinational Business Review, 5 (1), 26-38.
Lenartowicz, T., Johnson, J. P., and White, C. T. (2003). The neglect of intra-country cultural
variation in international management research. Journal of Business Research, 56, 999-1008.
Lenartowicz, T., and Roth, K. (1999). A framework for cultural assessment. Journal of
International Business Studies, 30 (4), 781-798.
Lenartowicz, T., and Roth, K. (2001). Does sub-culture within a country matter? A cross
cultural study of motivational domains and business performance in Brazil. Journal of
International Business Studies, 32 (2), 305-325.
Leonidou, L.C. (1996). Product standardization or adaptation: the Japanese approach. Journal
of Marketing Practice, 2 (4), 53-71.
327
Leonidou, L.C. (1998). Organisational determinants of exporting: Conceptual,
methodological, and empirical insights. Management International Review, 38 (1), 7-52.
Leonidou, L. C. (2004). An analysis of the barriers hindering small business export
development. Journal of Small Business Management. 42 (3). 279-302.
Leonidou, L.C., and Katsikeas, C.S. (1996). The export development process: An integrated
review of empirical models. Journal of International Business Studies, 27 (Third Quarter),
517-551.
Leonidou, L. C., Katsikeas, C. S., Palihawadana, D., and Spyropoulou, S. (2007). An
Analytical Review of the Factors Stimulating Smaller Firms to Export: Implications for
Policy-Makers. International Marketing Review, 24 (6), 735 - 770.
Leonidou, L.C., Katsikeas, C.S., and Samiee, S. (2002). Marketing strategy determinants of
export performance: A meta-analysis. Journal of Business Research, (55), 51-67.
LePine, J. A., Hollenbeck, J.R., Ilgen, D.R., Colquitt, J.A., and Ellis, A. (2002). Gender
composition, situational strength, and team decision-making accuracy: A criterion
decomposition approach. Organizational Behavior and Human Decision Process, 88
(1), 445-475.
Leung, K., Koch, P. T., and Lu, L. (2002). A dualistic model of harmony and its implications
for conflict management in Asia. Asia Pacific Journal of Management. 19 (2-3). 201-220.
Leung, T., and Wong, Y. H. (1993). Hong Kong Businessesmen's Perceptions of guanxi
in the People's Republic of China. Paper presented at The Academy of International
Business Conference, Hong Kong.
Leung, T. P. K., and Chan, R. Y-L. (2003). Face, favour and positioning - A Chinese
power game. European Journal of Marketing, 37 (1/2), 1575-1598.
Leuz, C., Nanda, D., and Wysocki, P.D. (2003). Earnings Management and Investor
Protection: An International Comparison. Journal of Financial Economics. 69 (3). 505-527
328
Levitt, T. (1983). The globalization of markets. Harvard Business Review, 61 (May-June),
92-102.
Li, H., and Atuahene-Gima, K. (2001). Product Innovation Strategy and Performance of New
Technology Ventures in China. Academy of Management Journal, 44 (6), 1123-1134.
Li, D., Eden, L., Hitt, M. A., and Ireland, R. D. (2008). Friends, acquaintances, or strangers?
Partner selection in R&D alliances. Academy of Management Journal. 51 (2). 315-334.
Li, L., and Ogunmokun, G. (2003). Effective Marketing Control on Export Venture
Performance: The Moderating Role of Relationship Intensity and Market Dynamism. Journal
of Global Marketing, 16 (3), 5-29.
Li, L., Yong, H.-H., Borland, R., Fong, G. T., Thompson, M. E., Jiang, Y., Yang, Y.,
Sirirassame, B., Hastings, G., and Harris, F. (2009). Reported Awareness of Tobacco
Advertising and Promotion in China Compared to Thailand, Australia and the USA. Tobacco
Control, 18, 222-227.
Li, M. (2010). Determinants of Export Channel Integration: An Interaction Approach.
Management & Marketing, 5 (1), 19-38.
Li, S. M., and Shum, Y. M. (2001). Impacts of the national trunk highway system on
accessibility in China. Journal of Transport Geography, 9 (1), 39-48.
Lichtenstein, P. M. (2000). Competing perspectives on the liberalisation of China's foreign
trade and investment regime. Journal of Economic Issues, 34 (4), 873-889.
Lichtenthaler, U., and Ernst, H. (2008). Intermediary Services in the Markets for
Technology: Organizational Antecedents and Performance Consequences. Organization
Studies, 29 (7), 1003-1035.
Lim, J. S., Sharkey, T. W., and Henrichs, J. H. (2006). Strategic Impact of New Product
development on Export Involvement. European Journal of Marketing, 40 (1/2), 44-60.
329
Lim, L. K. S., Acito, F., and Rusetski, A. (2006). Development of Archetypes of International
Marketing Strategy. Journal of International Business Studies, 37 (4), 499-524.
Lin, C.-T., and Lee, J.-Y. (2004). Who uses food label information? A case study of dietary
fat. Journal of Food Products Marketing, 10 (4), 17-37.
Lin, L.-W., and Sternquist, B. (1994). Taiwanese consumers' perceptions of product
information cues. European Journal of Marketing, 28 (1), 5-19.
Lindmark, L., Christensen, P. R., Eskelinen, H., Forsstrom, B., Sorenson, O. J., and Vatn, E.
(1994). Smaforetgagens Internationalisering: En Jamforende Studie. Paper presented at the
Nord REFO, Stockholm, Sweden.
Lindsley, D. H., Brass, D. J., and Thomas, J. B. (1995). Efficacy-Performance Spirals: A
Multilevel Perspective. Academy of Management Review, 20 (3), 645-678.
Ling-Yee, L. (2004). An examination of the foreign market knowledge of exporting firms
based in the People's Republic of China: Its determinants and effect on export intensity.
Industrial Marketing Management. 33 (7). 561-572.
Lipnack, J., and Stamps, J. (1999). Virtual teams: The new way to work. Strategy &
Leadership, 27, 14-18.
Lipshitz, R., and Strauss, O. (1997). Coping with uncertainty: A naturalistic decision-
making analysis. Organizational Behavior and Human Decision Process, 69 (2), 149-
163.
Liu, L. A., Friedman, R. A., and Chi, S. C. (2005). “Ren Qing" versus "Big Five": The Role
of culturally Sensitive Measures of Individual Difference in Distributive Negotiations.
Management and Organization Review, 1 (2), 225-247.
Liu, S. S., and Johnson, K. F. (2005). The Automatic Country-of-Origin Effects on Brand
Judgments. Journal of Advertising. 34 (1). 87-99.
330
Lobstein, T., and Davies, S. (2008). Defining and Labelling ‘Healthy’ and ‘Unhealthy’
Food. Public Health Nutrition, 12 (3), 331–340.
Louter, P. J., Ouwerkerk, C., and Bakker, B. A. (1991). An Inquiry into Successful
Exporting. European Journal of Marketing, 25 (6), 7-23.
Love, L. G., Priem, R. L., and Lumpkin, G. T. (2002). Explicitly articulated strategy and firm
performance under alternative levels of centralization. Journal of Management. 28 (5). 611-
627.
Lovett, S., Simmons, L. J., and Kali, R. (1999). Guanxi versus the market: Ethics and
efficiency. Journal of International Business Studies, 30 (2), 231-248.
Lowe, A. C.-T. and Corkindale, D. A. (1998) Differences in "Cultural Values" and their
Effects on Responses to Marketing Stimuli. European Journal of Marketing 32 (9/10), 843-
867.
Loyka, J. J., and Powers, T.L. (2003). A model of factors that influence global product
standardization. Journal of Leadership and Organizational Studies, 10 (2), 64-72.
Lu, J. W., and Beamish, P. W. (2001). The Internationalization and Performance
of SMEs. Strategic Management Journal, 22, (6/7). 565-586.
Luo, Y. (1997). Guanxi: Principles, Philosophies, and Implications. Human Systems
Management., 16(1), 43-51.
Luo, Y. (1997). Performance Implications of International Strategy. Group and
Organisational Management, 22(1), 87-116.
Luo, Y. (2002). Partnering with Foreign Businesses: Perspectives from Chinese Firms.
Journal of Business Research, 55, 481-493.
Luo, Y. (2007). From Foreign Investors to Strategic Insiders: Shifting Parameters,
331
Prescriptions and Paradigms for MNCs in China. Journal of World Business, 42 (1),
14-34.
Luo, Y., and Park, S. H. (2001). Strategic Alignment and Performance of Market
Seeking MNCs in China. Strategic Management Journal, 22 (2), 141-155.
Luo, Y., and Peng, M. W. (1999). Learning to Compete in a Transition Economy:
Experience, Environment, and Performance. Journal of International Management, 8, 141-
162.
Lv, R., and Wang, J. (2011). Research on Channels Managerial Tactics Based on
Product Life Cycle Theory. Innovative Computing and Information (232), 211-
217.
Ma, G. (1998). Nutrition Knowledge, Attitude, Food Practices and Changes in China.
Australian Journal of Nutrition and Dietetics, 55 (1), S9-S11.
MacCallum RC, Wegener DT, Uchino BN, Fabrigar LR. (1993). The problem of equivalent
models in applications of covariance structure analysis. Psychological Bulletin, 114 (1), 185–
99
MacKay, K. J., and Fesenmaier, D. R. (1997). Pictorial element of destination in image
formation. Annals of Tourism research, 24 (3), 537-565.
Macpherson-Sanchez, A. E. (1998). A Food Guide Pyramid for Puerto Rico. Nutrition Today,
33 (5), 198-209.
Madden, T. J., Hewett, K., and Roth, M. S. (2000). Managing Images in Different Cultures:
A Cross-National study of Color Meanings and Preferences. Journal of International
Marketing, 8 (4), 90-107.
Maddux, R. (1988). Successful Negotiation. London: Kogan Page.
332
Madsen, T. K. (1989). Successful Export Marketing Management: Some Empirical Evidence.
International Marketing Review, 6(4), 41-57.
Maggat, W. A., and Viscusi, W. K. (1992). Informational approaches to regulation.
Cambridge, MA.: MIT Press.
Magnusson, P., Westjohn, S. A., and Zdravkovic, S. (2011). What? I Thought Samsung was
Japanese: Accurate or Not, Perceived Country of Origin Matters. International Marketing
Review. 28 (5). 454-472.
Maheswaran, D. (1994). COO as a stereotype: Effects of consumer expertise and attribute
strength on product evaluations. Journal of Consumer Research, 21 (2), 354-365.
Maidique, M. A., and Zirger, B.J. (1984). A study of success and failure in product
innovation: The case of U.S. electronics industry. IEEE Transactions on Engineering
Management, EM-31 (4), 192-203.
Maldonado, R. and Tansuhaj, P.S. (1998). Transition Challenges in Consumer Acculturation:
Role Destabilization and Changes in Symbolic Consumption. Advances in Consumer
Research, 26, 134-140.
Malhotra, N. K., Agarwal, J., and Peterson, M. (1996). Methodological issues in cross-
cultural marketing research: A state of the art review. International Marketing Review, 13 (5),
7-43.
Malterud, C. (2001). Qualitative research: standards, challenges, and guidelines. The Lancet,
358 (August 11), 483-488.
Manion, M. (1994). Survey research in the study of contemporary China: Learning from local
samples. The China Quarterly, 139 (September), 741-765.
Manrai, L. A., Lascu, D. N., and Manrai, A. K. (1998). Interactive effects of country of origin
and product category on product evaluations. International Business Review, 7 (6), 591-615.
333
Marshall, M. N. (1996). The key informant technique. Family Practice, 13 (1), 92-97.
Mansfield, N., Wheeler, C., and Young, S. (1987). The use of information for exporting construction services. Unpublished report for the Scottish Development Agency. Martin, S., and Scott, J. T. (2000). The nature of innovation market failure and the design of
public support for private innovation. Research Policy. 29 (4). 437-447.
Martin, B. A., Lee, M. S. W., and Lacey, C. (2011). Countering Negative Country of Origin
Effects Using Imagery Processing. Journal of Consumer Behaviour. 10 (2). 80-92.
Martins, L. L., Gilson, L. L., and Maynard, M. T. (2004). Virtual teams: Where do we go
from here? Journal of Management, 30 (6), 805-835.
Maskell, P., Pedersen, T., Pedersen, B. and Nielsen, J.D. (2007). Learning Paths to Offshore
Outsourcing: From Cost Reduction to Knowledge Seeking. Industry and Innovation. 14 (3).
239-257
Matear, S., Gray, B. J., and Irving, G. P. (2000). What Makes a Good Channel Relationship?
Asia Pacific Journal of Management, 17 (3), 539-556.
Matthews, A. (1994). Trade Reform and the Prospects for Processed Food Exports from
Developing Countries. Journal of Agricultural Economics 45 (2), 177-188.
Maule, A. J., Hockey, G. R. J., and Bdzola, L. (2000). Effects of time-Pressure on Decision-
Making Under Uncertainty: Changes in Affective State and Information Processing Strategy.
Acta Pshychologica, 104 (3), 283–301.
Mavondo, F. T., and Rodrigo, E. M. (2001). The effect of relationship dimensions on
interpersonal and inter-organizational commitment in organizations conducting business
between Australia and China. Journal of Business Research, 52 (2), 111-121.
Mayrhofer, U. (2004). The influence of national origin and uncertainty on the choice
between cooperation and merger-acquisition: An analysis of French and German firms.
International Business Review, 13, 83-99.
334
Mays, N., and Pope, C. (2000). Quality in qualitative health research. In CP Pope and N
Mays, eds. Qualitative research in health care, 2nd edition. London. BMJ Books. 89-101.
Mazis, M. B., and Raymond, M. A. (1997). Consumer Perceptions of Health Claims in
Advertisements and on Food Labels. Journal of Consumer Affairs, 31 (1), 10-26.
McCraken, G. (1986). Culture and Consumption: A Theoretical Account of the
Structure and Movement of Cultural Meaning of Consumer Goods. Journal of
Consumer Research 13, (June), 71-84.
McDonough, E. F. (2000). Investigation of Factors Contributing to the Success of Cross
Functional Teams. Journal of Product Innovation Management, 17 (3), 221-235.
McGuiness, N., Campbell, N., and Leontiades, J. (1991). Selling machinery to China:
Chinese perceptions of strategies and relationships. Journal of International Business Studies,
22 (2), 187-207.
McMurray, A. J., Pace, R. W., and Scott, D. (2004). Research: A commonsense approach.
Southbank, Victoria: Thomson Social Sciences Press.
Meade, B. and Rosen, S. (1996). Income and Diet Differences Greatly Affect Food Spending
Around the Globe. Food Review 19 (3), 39-44.
Medina, J. F., and Duffy, M. F. (1998). Standardization versus globalization: a new
perspective of brand strategies. Journal of Product and Brand Management., 7 (3), 223-243.
Meiselman, H. (2007). The Impact of Context and Environment on Consumer Food
Choice. In L. Frewer and H. v. Trijp (Eds.), Understanding Consumers of Food
Products. Cambridge, UK: Woodheath Publishing
Meng, X. (2004). Economic Restructuring and Income Inequality in Urban China. Review of
Income and Wealth, 50 (3), 357-379.
335
Merrilles, B., Getz, D., and O'Brien, D. (2005). Marketing Stakeholder Analysis:
Branding the Brisbane Goodwill Games. European Journal of Marketing, 39 (9), 1060-
1077.
Miles, R. E., Snow, C. C., Meyer, A. D., and Coleman, H. J. (1978). Organizational strategy,
structure, and process. Academy of Management Review, 3 (3), 546-562.
Miller, C. C. (2008) Decisional Comprehensiveness and Firm Performance: Towards a More
Complete Understanding. Journal of Behavioral Decision Making 21: 598-620.
Miller, G. A. (1956). The Magical Number Seven Plus or Minus Two: Some Limits on
Our Capacity for Processing Information. Psychological Review, 63, 81-97.
Milne, M. J., Tregidga, H., and Walton, S. (2003). The Triple-Bottom Line: Benchmarking
New Zealand's Early Reporters. Unpublished manuscript, Dunedin, New Zealand.
Minichello, V., Aroni, R., Timewell, E., and Alexander, L. (1990). In depth
Interviewing: Researching people. Melbourne, Australia: Longman Chesire.
Mintzberg, H. (1988). Generic strategies: toward a comprehensive framework. Advances in
Strategic Management 5, 1–67.
Mintzberg, H., Lampel, J., Quinn, J. B., and Ghoshal, S. (2003). The Strategy Process:
Concepts, Contexts, Cases (4 ed.). Upper Saddle River, N.J.: Prentice Hall/Pearson
Education, Inc.
Michell, P., King, J., and Reast, J. (2001). Brand values related to industrial products.
Industrial marketing management, 30 (5), 415-425.
Mitchell, W., Shaver, J. M., and Yeung, B. (1994). Foreign entrant survival and foreign
market share: Canadian companies' experience in United States medical sector markets.
Strategic Management Journal, 15 (7), 555-567.
Mittal, V., Ross Jnr, W. T., and Tsiros, M. (2002). The Role of Issue Valence and
336
Issue Capability in Determining Effort Investment. Journal of Marketing Research, 39
(4), 455-468.
Moen, O. (2000). SMEs and International Marketing: Investigating the Differences in
Export strategy Between Firms of Different Size. Journal of Global Marketing, 13 (4),
7-28.
Moen, O., and Servais, P. (2002). Born Global or Gradual Global? Examining
the Export Behavior of Small and Medium sized enterprises. Journal of
International Marketing, 10 (3), 49-72.
Mohammed, S., and Ringseis, E. (2001). Cognitive diversity and consensus in group
decision making: The role of inputs, processes and outcomes. Organizational Behavior
and Human Decision Process, 85 (2), 310-335.
Moini, A. H. (1995). An Inquiry Into Successful Exporting: An Empirical Investigation
Using a Three-Stage Model. Journal of Small Business Management, 33 (3), 9-18.
Money, R. B., and Crotts, J. C. (2003). The effect of uncertainty avoidance on
information search, planning, and purchases of international travel vacations. Tourism
Management. 24 (2), 191-202.
Montoya-Weiss, M., Massey, A., and Song, M. (2001). Getting it together: Temporal
coordination and conflict management in global virtual teams. Academy of Management
Journal, 40, 1251-1262.
Moon, B. J., and Jain, S. C. (2002). Consumer Processing of Foreign Advertisements: Roles
of Country of Origin, Consumer Ethnocentrism, and Country Attitude. International Business
Review, 11, 117-138.
Moon, H., Conlon, D.E., Humphrey, S.E., Quigley, N. Devers, C.E., and Nowakowski,
J.M. (2003). Group decision process and incrementalism in organizational decision-
making. Organizational Behavior and Human Decision Process, 92, 67-79.
337
Moorhead, G., Neck, C.P, and West, M.S. (1998). The tendency toward defective
decision making within self-managing teams: The relevance of groupthink for the 21st
century. Organizational Behavior and Human Decision Process, 73 (2/3), 327-351.
Moorman, C. (1990). The Effects of Stimulus and Consumer Characteristics on the
Utilization of Nutritional Information. Journal of Consumer Research, 17 (December),
362-374.
Moorman, C., and Miner, A. S. (1997). The Impact of Organizational Memory on
New Product Performance and Creativity. Journal of Marketing Research, 34
(February), 91-106.
Morgan, N. A. (2012). Marketing and Business Performance. Journal of the Academy of
Marketing Science, 40, 102-119.
Morgan, N. A., Kaleka, A. A., and Katsikeas, C. S. (2004). Antecedents of Export
Venture Performance: A Theoretical Model and Empirical Assessment. Journal of
Marketing, 68 (January), 90-108.
Morgan, R. M., and Hunt, S. D. (2004). The Commitment-Trust Theory of Relationship
Marketing. Journal of Marketing, 58, 20-38.
Morrison, E. W. (1994). Role definitions and organizational citizenship behavior: The
importance of the employee's perspective. Academy of management journal, 37 (6), 1543-
1567.
Mossberg, L., and Kleppe, I. A. (2005). Country and destination image - Different or similar
concepts? The Service Industries Journal, 25 (4), 493-503.
Motameni, R., and Shahrokhi, M. (1998). Brand equity valuation: a global perspective.
Journal of Product & Brand Management, 7(4), 275-290.
338
Mothe, C., and Quelin, B. V. (1998). How Firms can Benefit from Collaborating within R&D
Consortia. In M. A. Hitt & R. D. Nixon (Eds.), Managing Strategically in an Interconnected
World. London: John Wiley & Sons.
Moustakerski, P. (2002). The effect of trade liberalisation on China's retail sector.
Agricultural Exporter, 14 (3), 4-7.
Muller, B. (1987). Reflections of Culture: An Analysis of Japanese and American
Advertising Appeals. Journal of Advertising Research, 27, 51-59.
Muller, T., and Schnitzer, M. (2005). Technology transfer and spillovers in international joint
ventures. Journal of International Economics (68), 456-468.
Munro, H., and Beamish, P. W. (1987). Distribution Methods and Export Performance. In P.
Rosson & S. Reid (Eds.), Managing Exporting Marketing and Expansion (pp. 316-331). New
York: Praeger.
Murad, D. S. (2004). Doing business in China. Adhesives and Sealants Industry, 11 (10), 61-
62.
Murphy, B., Cockburn, J., and Murphy, M. (1992). Focus groups in health research. Health
Promotion Journal of Australia, 2 (2), 37-40.
Nagashima, A. (1977). A Comparative 'Made In' Product Image Survey among Japanese
Businessmen. Journal of Marketing, 41 (3), 95-100.
Nakra, P. (2006). Should you care About Country of Origin Impact? www.i-b-t.net
Nakata, C., and Sivakumar, K. (2001). Instituting the marketing concept in a multinational
setting: The role of national culture. Journal of Academy of Marketing Science, 29 (3), 255-
275.
339
Nantachai, K., Petty, M.F, and Scriven, F.M.. (1992). An application of contextual evaluation
to allow simultaneous food product development for domestic and export markets. Food and
Quality Preference, 3 (1): 13-22.
Narver, J. C., and Slater, S. F. (1990). The effect of a market orientation on business
profitability. The Journal of Marketing, 54 (4), 20-35.
Naser, K., Jamal, A., and Al-Khatib, A. (1999). Islamic Banking: A Study in Customer
Satisfaction and Preference in Jordan. International Journal of Bank Marketing, 17 (3), 135-
151.
Navarro, B., Acedo, F.J., Robson, M.J., Ruzo, E., and Losada, F. (2010) Antecedents and
Consequences of Firms' Export Commitment: An Empirical Study. Journal of International
Marketing. 18, (3). 41-61.
Nayga, R. M. (1996). Determinants of Consumers' Use of Nutrition Information on Food
Packages. Journal of Agricultural and Applied Economics, 28, 303-312.
Nayga, R. M. (1997). The Impact of Socio-demographic Factors on Perceived Importance of
Nutrition in Food Shopping. Journal of Consumer Affairs, 31(1), 1-9.
Nayga, R. M. (2000). Nutrition Knowledge, Gender, and Food Label Use. Journal of
Consumer Affairs, 24 (1), 97-112.
Nayga, R. M., Lipinski, D., and Savur, N. (1998). Consumers' Use of Nutritional Labels
While Food Shopping and at Home. Journal of Consumer Affairs, 32(1), 106-120.
Ndlela, L.T. and du Toit, A.S.A. (2001). Establishing a Knowledge Management Programme
for Competitive Advantage in an Enterprise. International Journal of Information
Management. 21 (2). 151-165
Nebenzahl, I. D., and Jaffe, E.D. (1996). Measuring the joint effect of brand and country
image in consumer evaluation of global products. International Marketing Review, 13 (4), 5-
22.
340
Neff, S. A. and Malanoski, M. A. (1996). Trade Reforms Increase Likelihood of Challenges
to Food Standards. Food Review 19 (2), 18-22.
Netemeyer, R. G., Durvasala, S., and Lichtenstein, D.R. (1991). A Cross-National
Assessment of the Reliability and Validity of the CETSCALE. Journal of Marketing
Research 28 (August): 320-327.
Nevid, J. S. (1981). Effects of Brand Labeling on Ratings of Product Quality.
Perceptual and Motor Skills. 53, 407-410.
Nevo, B. (1985). Face validity revisited. Journal of Educational Measurement, 22 (4), 287-
293.
Ng, K.Y., and Van Dyne, L. (2001). Individualism-Collectivism as a boundary
condition for effectiveness of minority influence in decision-making. Organizational
Behavior and Human Decision Process, 84 (2), 198-225.
Nebenzahl, I. D., and Jaffe, E. D. (1996). Measuring the joint effect of brand and country
image in consumer evaluation of global products. International Marketing Review, 13 (4), 5-
22.
Neff, S. A., and Malanoski, M. A. (1996). Trade reforms increase likelihood of challenges to
food standards. FoodReview, 19. (2), 18-22.
Nevins, J. L., and Money, R. B. (2008). Performance implications of distributor
effectiveness, trust, and culture in import channels of distribution. Industrial Marketing
Management. 37 (1). 46-58.
Nguyen, T. D., Nguyen, T. T. M. and Barrett, N. J. (2008). Consumer Ethnocentrism,
Cultural Sensitivity, and Intention to Purchase Local Products - Evidence From Vietnam.
Journal of Consumer Behaviour. 7 (1), 88-100.
341
Nisbett, R. E., Peng, K. P., Choi, I., and Norenzayan, A. (2001). Cultural and Systems of
Thought: Holistic Versus Analytic Cognition. Psychological Review, 108 (2), 291-310.
Niss, H. (1996). Country of origin marketing over the product life cycle: a Danish case study.
European Journal of Marketing, 30 (3), 6-22.
Noble, C. H., and Mokwa, M. P. (1999). Implementing Marketing Strategies: Developing and
Testing a Managerial Theory. Journal of Marketing, 63 (4), 57-73.
Norman, W., and MacDonald, C. (2004). Getting to the Bottom Line of Triple Bottom Line.
Business Ethics Quarterly, 14 (2), 243-262.
Northen, J. R. (2000). Quality attributes and quality cues Effective communication in the UK
meat supply chain. British Food Journal. 102 (3). 230-245.
Norton, J., Parry, M. E., and Song, M. (1994). Integrating R&D and Marketing: A
Comparison of Practices in the Japanese and American Chemical Industries. IEEE
Transactions on Engineering Management., 41 (1), 5-20.
Nussbaum, B. (1993). Hot Products, Business Week (June 7), pp 54-57.
Obermiller, C., and Spangenberg, E. (1989). Exploring the effects of country of origin labels:
An information processing framework. Advances in Consumer Research, 16, 454-459.
O'Cass, A., and Julian, C. (2003). Modeling the Effects of Firm specific and Environmental
Characteristics on Export Marketing Performance. Journal of Global Marketing, 16 ( 3), 53-
74.
O'Cass, A., and McEwan, H. (2004). Exploring consumer status and conspicuous
consumption. Journal of Consumer Behaviour, 4 (1), 25-39.
O'Donnell, S., and Jeong, I. (2000). Marketing Standardization within Global Industries.
International Management Review, 17 (1), 19-33.
342
Ohmae, K. (1985). Triad Power: The Coming Shape of Global Competition, The Free Press,
New York, NY.
Okechuku, C. (1994). The Importance of Product Country of Origin:: A Conjoint Analysis of
the United States, Canada, Germany and The Netherlands. European Journal of Marketing,
28 (4), 5-19.
Oliver, R.L. (2010). Satisfaction: A Behavioral Perspective on the Consumer. M.E. Sharpe
Publications. London, UK.
Onkvisit, S. and Shaw, J. (1989) The International Dimension of Branding: Strategic
Considerations and Decisions. International Marketing Review 6 (3), 23-33.
Orbeta, S. S. (1998). The Filippino Pyramid Food Guide. Nutrition Today, 33 (5), 210-216.
Osland, G. (1990). Doing business in China: A framework for cross cultural
understanding. Marketing Intelligence and Planning, 8 (4), 4-14.
Ottman, J.A., Stafford, E.R., and Hartman, C.L. (2006). Avoiding Green Marketing Myopia:
Ways to Improve Consumer Appeal for Environmentally Preferable Products. Environment:
Science and Policy for Sustainable Development. 48 (5). 22-36.
Oum, T. H., Park, J. H., Kim, K., and Yu, C. (2004). The Effect of Horizontal
Alliances on Global Firm Productivity and Profitability: Evidence from the Global
Airline Industry. Journal of Business Research, 57, 844-853.
Oviatt, B. M., and McDougall, P. P. (2005). Defining international entrepreneurship and
modeling the speed of internationalization. Entrepreneurship theory and
practice, 29 (5), 537-554.
Ozsomer, A., Bodur, M., and Cavusgil, S. T. (1991). Marketing standardisation by
multinationals in an emerging market. European Journal of Marketing, 25 (12), 50-64.
Paarlberg, R. L. (1997). Feeding China: A confident view. Food Policy, 22 (3), 262-279.
343
Padmanabhan, K. H. (1988). Is it time for international marketing to turn to subcultures? in
Littlefield, J. and Csath, M. (eds). Paper presented at the Proceedings of 2nd International
Conference on Marketing and Development, Budapest, Hungary.
Painter, J., Rah, J.-H., and Lee, Y.-K. (2002). Comparison of international food guide
pictorial representations. Journal of the American Dietetic Association, 102 (4), 483-489.
Pallant, J. (2005). SPSS Survival Manual (2nd ed.). Crows Nest, NSW: Allen and Unwin.
Pan, Y-L., Dixon, Z., Himburg, S., and Huffman, F. (1999). Asian students change their
eating patterns after living in the United States. Journal of the American Dietetic Association,
99 (1), 54-57.
Pan, Y-L., and Schmitt, B. H. (1995). What’s in a name? An empirical comparison of
Chinese and Western brand names. Asian Journal of Marketing, 4 (1), 7-16.
Papadakis, V. M., Lioukas, S., and Chambers, D. (1998). Strategic decision-making process:
The role of management and context. Strategic Management Journal, 19, 115-147.
Papadopoulos, N. (1993). What product and country images are and are not, in
Papadopoulos, N. and Heslop, L.A. (Eds), Product-Country Images. New York, NY.
Papadopoulos, N., Heslop, L.A. and Beracs, J. (1990). National stereotypes and product
evaluations in a socialist country. International Marketing Review, 7 (1), 32-47.
Pappu, R., Quester, P. G., and Cooksey, R. W. (2006). Consumer-based brand equity and
country-of-origin relationships: some empirical evidence. European Journal of Marketing, 40
(5/6), 696-717.
Parameswaran, R., and Pisharodi, R. M. (1994). Facets of country of origin image: an
empirical assessment. Journal of Advertising, 23 (1), 43-56.
Park, J., L. (2001). Supermarket Product Selection Uncovered: Manufacturer
344
Promotions and the Channel Intermediary. International Food and Agribusiness
Management Review, 4 (2), 119-131.
Parker, R. S., Haytko, D. and Hermans, C. M. (2011) Ethnocentrism and Its Effect on the
Chinese Consumer: A Threat to Foreign Goods? Journal of Global Marketing 24: 4-17.
Parkhe, A. (1991). Inter-firm Diversity, Organizational Learning and Longevity in Global
Strategic Alliances. Journal of International Business Studies, 22, 579-601.
Paswan, A. K., and Sharma, D. (2004). Brand-Country of Origin (COO) Knowledge and
COO Image: Investigation in an Emerging Franchise Market. Journal of Product and Brand
Management, 13 (3), 144-155.
Pava, M. L. (2007). A Response to "Getting to the Bottom Line of 'Triple bottom Line'".
Journal of Business Ethics, 17 (1), 105-111.
Payne, J.W., Bettman, J.R., and Luce, M.F. (1996). When time is money: Decision
behaviour under opportunity-cost time pressure. Organizational Behavior and Human
Decision Process, 66 (2), 131-153.
Payne, J. W., Bettman, J. R., and Johnson, L. E. (1993). The adaptive decision maker.
Cambridge, England: Cambridge University Press.
Payne, A., and Frow, P. (2005). A Strategic Framework for Customer Relationship
Management. Journal of Marketing. 69 (4). 167-176.
Pecotich, A., and Rosenthal, M., J. (2001). Country of Origin, Quality, Brand and Consumer
Ethnocentrism. Journal of Global Marketing, 15 (2), 31-60.
Pecotich, A., and Ward, S. (2007). Global Branding, Country of Origin and Expertise.
International Marketing Review, 24 (3), 271-296.
Pedersen, T., and Petersen, B. (2004). Learning About Foreign Markets: Are Entrants Firms
Exposed to a "Shock Effect"? Journal of International Marketing, 12 (1), 103-123.
345
Pelham, A.M. and Wilson, D. T. (1995). A Longitudinal Study of the Impact of Market
Structure, Firm Structure, Strategy, and Market Orientation Culture on Dimensions of Small-
Firm Performance. Journal of the Academy of Marketing Science. 24 (1), 27-43
Pennings, J. M., and Wansink, B. (2004). Channel contract behavior: The role of risk
attitudes, risk perceptions, and channel members' market structures. The Journal of
Business, 77 (4). 697-724.
Peres, R., Muller, E., and Mahajan, V. (2010). Innovation Diffusion and New Product
Growth Models: A Critical Review and Research Directions. International Journal of
Research in Marketing, 27 (2), 91-106.
Peter, J.P. (1979). Reliability: A review of the psychometric basics and recent marketing
practices. Journal of Marketing Research, 16 (February), 6-17.
Peters, T. (2002). Tom Peters Revisited: What Gets Measured Gets Done. Office Solutions 19
(9): 32-33.
Peterson, R. A., and Jolibert, A.J.P. (1995). A meta-analysis of country-of-origin
effects. Journal of International Business Studies, 26 (4), 883-900.
Phillips, J. M. (1999). Antecedents of leader utilization of staff input in decision-making
teams. Organizational Behavior and Human Decision Process, 77 (3), 215-242.
Phillips, L. W., Chang, D. R., and Buzzell, R. D. (1983). Product quality, cost position and
business performance: a test of some key hypotheses. The Journal of Marketing, 47 (Spring),
26-43.
Picard, J., Boddewyn, J. J., and Grosse, R. (1998). Centralization and Autonomy in
International Marketing Decision Making: A Longitudinal Study (1973-1993) of U.S. MNEs
in the European Union. Journal of Global Marketing, 12 (2), 5-24.
346
Picken, S. D. B. (1987). Value and Value Related Strategies in Japanese Corporate Culture.
Journal of Business Ethics, 6 (2), 137-143.
Piercy, N. (1983). A social psychology of marketing information. Journal of the Market
Research Society, 25 (2), 103-119.
Piercy, N. (1985). Marketing organization: Analysis and information processing, power and
politics. London: Allen and Unwin.
Pingali, P. (2007). "Westernization of Asian diets and the transformation of food systems:
Implications for research and policy." Food Policy 32 (3): 281-298.
Pisharodi, R. M., and Parameswaran, R. (1992). Confirmatory factor analysis of a country of
origin scale: initial results. In Sherry, J. and Sternthal, B. (eds). Advances in Consumer
Research, Ann Arbor, MI. 706-714.
Piron, F. (2000). Consumers’ perceptions of the country-of-origin effect on purchasing
intentions of (in) conspicuous products. Journal of consumer marketing, 17 (4), 308-321.
Pitta, D. (2005). From Market Entry to New Product Development in China: Environmental
Systems Control. Journal of Product and Brand Management, 14 (2), 119-122.
Poon, P. S., Evangelista, F. U., and Albaum, G. (2005). A comparative study of the
management styles of marketing managers in Australia and the People's Republic of China.
International Marketing Review, 22 (1), 34-47.
Popkin, B. M. (1994). Social change and its nutritional impact: The China health and
nutrition survey. China Exchange News, 22 (2), 9-11.
Popkin, B. M., and Du, S. (2003). Dynamics of the Nutrition Transition towards Animal
Foods Sectors in China and its implications: A Worried Perspective. The Journal Of
Nutrition, 133, 11S-II.
347
Popkin, B. M., Horton, S., Kim, S., Mahal, A., and Shuigao, J. (2001). Trends in diet,
nutritional status, and diet related non-communicable diseases in China and India: The
economic costs of the nutrition transition. Nutritional Reviews, 59 (12), 379-390.
Porter, M. E. (1976). Interbrand Choice, Strategy and Bilaterial Market Power. Boston,
Mass: Harvard University Press.
Porter, M. E. (1979). The Structure within Industries and Companies' Performance. Review of
Economics and Statistics (May), 214-227.
Porter, M. E. (1980). Competitive Strategy. New York: NY: The Free Press.
Postmes, T., Spears, R., and Cihangir, S. (2001). Quality of decision making and group
norms. Journal of Personality and Social Psychology. 80 (6). 918.
Prahalad, C. K. (1990). The Changing Nature of Worldwide Competition. Vital Speeches of
the Day, 56, 354-357.
Prahalad, C. K., and Lieberthal, K. (1998). The end of corporate imperialism. Harvard
Business Review, 76 (4), 68-79.
Preece, S. B., Miles, G., and Baetz, M. C. (1999). Explaining the International Intensity and
Global diversity of Early stage Technology Based Firms. Journal of Business Venturing, 14
(3), 259-281.
Prescott, J., Young, O., O'Neill, L., Yau, N. J. N., and Stevens, R. (2002). Motives for
Food Choice: A Comparison of Consumers from Japan, Taiwan, Malaysia and New
Zealand. Food Quality and Preference, 13 (7-8), 489–495.
Pullman, M. E., and Gross, M. A. (2004). Ability of experience design elements to elicit
emotions and loyalty behaviors. Decision Sciences, 35 (3), 551-578.
Pujari, D. (2006). Eco-innovation and new product development: understanding the
influences on market performance. Technovation, 26 (1). 76-85.
348
Pye, L. (1982). Chinese commercial negotiating style. Rand Corporation.
Pye, L. (1986). The China Trade: Making the Deal. Harvard Business Review, (July-August),
74-80.
Qian, G. (1997). Assessing Product-Market Diversification in US Firms. Management
International Review, 27 (2), 127-149.
Qian, G. (2002). Multinationality, Product Diversification, and Profitability of Emerging US
Small and Medium Sized Enterprises. Journal of Business Venturing, 17, 611-633.
Qiu, B. (2010). Tainted Dairy Imports Cause Concern. China Daily, p. 4.
Quelch, J.A., and Hoff, E. J. (1986). Customizing global marketing. Harvard Business
Review, 64 (May-June), 59-69.
Racela, O. C., Chaikittisilpa, C., and Thoumrungroje, A. (2007). Market Orientation,
International Business Relationships, and Perceived Export Performance. International
Marketing Review, 24 (2), 144-163.
Radnor, Z. J. and Noke, H. (2006) Development of an Audit Tool for Product Innovation:
The Innovation Compass. International Journal of Innovation Management 10 (1): 1-18.
Raghunathan, R., Naylor, R. N., and Hoyer, W. D. (2006). The Unhealthy = Tasty
Intuition and Its Effects on Taste Inferences, Enjoyment, and Choice of Food Products.
Journal of Marketing, 70 (4), 170-184.
Ram, S., and Ram, S. (1988). INNOVATOR: An Expery System for New Product
Launch Decisions. Applied Artificial Intelligence, 2, 129-148.
Ram, S., and Ram, S. (1989). Expert Systems: An Emerging Technology for
Selecting New Product Winners. Journal of Product Innovation Management, 6,
89-98.
349
Randall, T., and Ulrich, K. (2001). Product Variety, Supply Chain Structure, and Firm
Performance: Analysis of the U.S. Bicycle Industry. Management Science, 47 (12), 1588-
1604.
Rask, K. J., Chu, D. K. W., and Gottschang, T. R. (1998). Institutional change in transition
economies: The case of accounting in China. Comparative Economic Studies, 40 (4), 76-100.
Ravallion, M., and Chen, S. (2007). China’s (uneven) progress against poverty. Journal of
Development Economics, 82, 1-42.
Raymond, M. A., Kim, J., and Shao, A. T. (2001). Export Strategy and Performance: A
Comparison of Exporters in a Developed Market and an emerging Market. Journal of Global
Marketing, 15 (2), 5-29.
Razzaque, M. A., and Boon, T. G. (2003). Effects of dependence and trust on channel
satisfaction, commitment and cooperation. Journal of Business to Business Marketing, 10 (4),
23-48.
Regmi, A. and Gehlhar, M. (2005). New Directions in Global Food Markets, USDA.
Reirson, C. C. (1966). Attitude changes toward foreign products. Journal of Marketing
Research (4), 385-387.
Riefler, P., Diamantopoulos, A., and Siguaw, J. A. (2012). Cosmopolitan Consumers as
a Target Group for Segmentation. Journal of International Business Studies, 43, 285-
305.
Risvik, E., Rùdbotten, M., and Veflen Olsen, N. (2007). Cross-Cultural Dimensions in
Food Choice: Europe. In L. Brewer and H. V. Trijp (Eds.), Understanding Consumers
of Food Products. Cambridge, UK: Woodheath Publishing.
Robertson, R. (1987). Globalization and Societal Modernization: A Note on Japan and
Japanese Religion. Sociological Analysis, 47, 35-42.
350
Robertson, C., and Chetty, S. K. (2000). A contingency-based approach to understanding
export performance. International Business Review, 9 (2), 211-235.
Rogers, H., Ghauri, P., and Pawar, K. S. (2005). Measuring International NPD Projects: An
Evaluation Process. Journal of Business and Industrial Marketing, 20 (2), 79-87.
Ronen, S., and Shenkar, O. (1985). Clustering countries on attitudinal dimensions: A review
and synthesis. Academy of Management Review., 10 (3), 435-454.
Ronteltap, A., Van Trijp, J. C. M., Renes, R. J., and Frewer, L. J. (2007). Consumer
Acceptance of Technology-Based Food Innovations: Lessons for the Future of
Nutrigenomics. Appetite, 49 (1), 1-17.
Roosen, J., Lusk, J. L., and Fox, J. A. (2003). Consumer demand for and attitudes toward
alternative beef labeling strategies in France, Germany, and the UK. Agribusiness, 19 (1), 77-
90.
Root, F. R. (1994) Entry Strategies for International Markets, Lexington Books.
Rosenzweig, P. M. (1994). Management Practices in U.S. Affiliates of Foreign Owned Firms:
Are 'They' Just like 'Us'? The International Executive, 36 (4), 393-410.
Roth, M.S., and Romeo, J.B. (1992). Matching product category and country image
perceptions: a framework for managing country-of origin effects. Journal of International
Business Studies, 23 (3), 477-496.
Roth, M. S. (1995). Effects of Global Market Conditions on Brand Image Customisation and
Brand Performance. Journal of Advertising, 24 (4), 55-75.
Roth, A. V., Tsay, A. A., Pullman, M. E., and Gray, J. V. (2008). Unravelling the Food
Supply Chain. Strategic Insights from China. Journal of Supply Chain Management. 44 (1).
22-39.
351
Rothaermel, F. T., and Deeds, D. L. (2004). Exploration and exploitation alliances in
biotechnology: A system of new product development. Strategic Management Journal. 25
(3). 201-221.
Rozin, P. (1990). Development in the Food Domain. Developmental Psychology, 26, 555-
562.
Rozin, P. (1996) Towards a Psychology of Food and Eating: Motivation to Module to
Model o Marketer, Morality, Meaning and Metaphor. Current Directions in
Psychological Science 5, 18-24.
Rubin, P. A., and Carter, J. R. (1990). Joint Optimalityin Buyer-Supplier Negotiations.
Journal of Purchasing and Materials Management., 26 (2), 20-26.
Rugman, A., and Verbeke, A. (2004). A Perspective on Regional on Regional and Global
Strategies of Multinational Enterprises. Journal of International Business Studies, 35, 3-18.
Rumelt, R. P. (1982). Diversification Strategy and Profitability. Strategic Management
Journal, 3 (4), 359-369.
Rundh, B. (2007). International Marketing Behaviour Amongst Exporting Firms. European
Journal of Marketing, 41 (1/2), 181-198.
Rust, R.T., Moorman, C., and Dickson, P.R. (2002). Getting Return on Quality: Revenue
Expansion, Cost Reduction, or Both? Journal of Marketing. 66 (4). 7-24
Ryans, A. B. (1988). Strategic market entry factors and market share achievement in Japan.
Journal of International Business Studies, Fall, 389-409.
Ryans, J.K., Griffith, D.A., and White, D.S. (2003). Standardization/adaptation of
international marketing strategy. International Marketing Review, 20 (6), 588-603.
Sajilata, S. G., Savitha, K., Singhal, R. S. and Kanetkar, V. R. (2007) Scalping of Flavors in
Packaged Foods. Comprehensive Reviews in Food Science and Food Safety 6 (1): 17-35.
352
Sakarya, S., Eckman, M., and Hyllegard, K. H. (2007). Market Selection for International
Expansion: Assessing Opportunities in Emerging Markets. International Marketing Review,
24 (2), 208-238.
Samiee, S. (1994). Customer evaluation of products in a global market. Journal of
International Business Studies, 25 (3), 1-25.
Samiee, S. (2010). Advancing the Country Image Construct—A Commentary Essay. Journal
of Business Research. 63 (4). 442-445.
Samiee, S. (2011). Resolving the Impasse Regarding Research on the Origins of Products and
Brands. International Marketing Review. 28 (5). 473-485.
Samiee, S., and Leonidou, L. C. (2011). Relevance and rigor in international marketing
research: developments in product and brand origin line of inquiry. Handbook of Research in
International Marketing. 68-87.
Samiee, S., and Roth, K. (1992). The influence of global marketing standardization on
performance. The Journal of Marketing, 56 (April), 1-17.
Samuelson, R. J. (2008, 20 August). The Real China Threat. Forbes, 18-20.
Satia, J. A., Galanko, J. A., and Neuhouser, M. L. (2005). Food nutrition label use is
associated with demographic, behavioral, and psychosocial factors and dietary intake among
African Americans in North Carolina. Journal of the American Dietetic Association. 105 (3).
392-402.
Sawheny, M., and Zabin, J. (2002). Managing and Measuring Relational Equity in the
Network Economy. Journal of the Academy of Marketing Science, 30 (4), 313-332.
Scherer, F. M., and Ross, D. (1990). Industrial Market Structure and Economic Performance.
Boston, Mass: Harvard Business School Press.
353
Schilke, O., Reimann, M., and Thomas, J. S. (2009). When Does International
Marketing Standardization Matter? Journal of International Marketing, 17 (4), 24-46.
Schillewaert, N., Ahearne, M. J., Frambach, R. T., and Moenaert, R. K. (2005). The
Adoption of Information Technology in the Sales Force. Industrial Marketing
Management, 34 (4), 323–336.
Schmid, S., and Kotulla, T. (2011). 50 Years of Research on International
Standardization and Adaptation: From Systematic Literature Analysis to a Theoretical
Framework. International Business Review, 20 (5), 491-507.
Schmidt, J. B., Montoya-Weiss, M. M., and Massey, A. P. (2001). New Product
Development Decision Making Effectiveness: Comparing Individuals, Face to Face
Teams, and Virtual Teams. Decision Science, 32 (4), 575-600.
Schmitt, B., and Zhang, S. (2012). Selecting the Right Brand Name: An Examination of
Tacit and Explicit Linguistic Knowledge in Name Ttranslations. Journal of Brand
Management, 19, 655 – 665.
Schmitt, B. H., and Pan, Y. (1994). Managing Corporate and Branding Identities in the Asia-
Pacific Region. California Management Review, 36 (Summer), 32-48.
Schooler, R. D. (1971). Bias phenomena attendant to the marketing of foreign goods in the
US. Journal of International Business Studies, 2(1), 71-81.
Schuh, A. (2000). Global standardization as a success formula for marketing in Central
Eastern Europe. Journal of World Business, 35(2), 133-148.
Schultz, D. E. (2000). Understanding and Measuring Brand Equity. Marketing Management,
Spring, 8-9.
Schulz-Hardt, S., Jochims, M., and Frey, D. (2002). Productive conflict in group decision-
making and contrived dissent as strategies to counteract biased information seeking.
Organizational Behavior and Human Decision Process, 88, 563-586.
354
Scottish Food Strategy Group. (1993). Scotland Means Quality. Edinburgh: SFSG.
Seggie, S. H., Cavusgil, E., and Phelan, S. E. (2007). Measurement of Return on Marketing
Investment: A Conceptual Framework and Future Marketing Metrics. Industrial Marketing
Management, 36, 834-841.
Senarath, S. N., and Karunagoda, R. P. (2012). Consumer Attitude towards Labeling of
Genetically Modified Foods in Sri Lanka. Tropical Agricultural Research, 23 (3). 283-288.
Senge, P. (1990). The fifth discipline: The art and practice of the learning organisation. New
York, NY: Doubleday.
Sethi, R., Smith, D. C. and Park, C. W. (2001) Cross-Functional Product Development
Teams, Creativity, and the Innovativeness of New Consumer Products. Journal of Marketing
Research 38 (1): 73-85.
Shane, S. (1988) The Role of Obligation in the Japanese Marketing System. Business
Quarterly, 53 (1), 92-95.
Sheremata, W. A. (2000) Centrifugal and Centripetal Forcess in Radical New Product
Development Under Time Pressure. Academy Management Review 25 (2): 389-408.
Shimp, T. A., and Sharma, S. (1987). Consumer Ethnocentrism: Construction and Validation
of the CETSCALE. Journal of Marketing Research., 24 (August), 280-289.
Shin, G. S., and Ma, Y. (2008). Factors Affecting Trust Between Korean IT Firms and
their Chinese Counterparts. Journal of Chinese Economic and Business Studies, 6 (3),
321-334.
Shipman, A. (2004). Lauding the Leisure Class: Symbolic Content and Conspicuous
Consumption. Review of Social Economy, 62 (3), 277-289.
355
Shocker, A. D., Srivastava, R. K., and Ruekert, R. W. (1994). Challenges and opportunities
facing brand management: An introduction to the special issue. Journal of Marketing
Research, 31 (May), 149-158.
Shoham, A. (1995). Global Marketing Standardization. Journal of Global Marketing, 9, 91-
119.
Shoham, A. (1996). Marketing-Mix Standardisation: Determinants of Export Performance.
Journal of Global Marketing, 10 (2), 53-73.
Shoham, A. (2003). Standardization of International Strategy and Export Performance:
A Meta Analysis. Global Marketing, 16 (1/2), 97-120.
Shoham, A., Brencic, M. M., Virant, V., and Ruvio, A. (2008). International
Standardization of Channel Management and Its Behavioral and Performance
Outcomes. Journal of International Marketing, 16 (2), 120-151.
Shoham, A., and Kropp, F. (1998). Explaining International Performance: Marketing Mix,
Planning, and their Interaction. Marketing Intelligence and Planning, 16 (2), 114-123.
Sieck, W., and Yates, J.F. (1997). Exposition effects on decision-making: Choice and
confidence in choice. Organizational Behavior and Human Decision Process, 70 (3),
207-219.
Sieck, W., and Arkes, H. A. (2005). The Recalcitrance of Overconfidence and its
Contribution to Decision Aid Neglect. Journal of Behavioral Decision Making, 18, 29-
35.
Siegrist, M. (2007). Consumer Attitudes to Food Innovation and Technology. In L.
Brewer and H. V. Trijp (Eds.), Understanding Consumers of Food Products.
Cambridge, UK: Woodheath Publishing.
Simmonds, K. (1985). Global Strategy: Achieving the Geocentric Ideal.
International Marketing Review, 2 (Spring), 8-17.
356
Simmons, L. C., and Munch, J. M. (1996). Is Relationship Marketing Culturally
Bound? A Look at Guanxi in China. Advances in Consumer Research, 23,
92-96.
Simon, C. J., and Sullivan, M. W. (1993). The Measurement and Determinants of
Brand Equity: A Financial Approach. Marketing Science, 12 (1), 28-52.
Simons, T., Pelled, L. H. and Smith, K. A. (1999) Making Use of Difference: Diversity,
Debate, and Decision Comprehensiveness in Top Management Teams. Academic
Management Review 25 (2): 389-408.
Simopoulos, A. P. (1995). The Mediterranean Food Guide. Nutrition Today, 30 (2), 186-188.
Sinkovics, R., and Holzmuller, H. (1994). Ethnocentrism - a key determinant in international
corporate strategy formulation. Paper presented at the EIBA International Conference,
Warsaw, Poland.
Sinkovics, R. R., Penz, E., and Ghauri, P. N. (2005). Analysing textual data in international
marketing research. Qualitative Market Research: An International Journal, 8 (1), 9-38.
Siraliova, J., and Angelis, J. J. (2006). Marketing Strategy in the Baltics: Standardise or
Adapt? Baltic Journal of Management, 1 (2), 169-187.
Skaggs, R., Falk, C., Almonte, J., and Cardenas, M. (1996). Product Country Images and
International Food Marketing: Relationships and Research Needs. Agribusiness, 12 (6), 593-
600.
Skrepnek, G. H. (2004). Accounting versus Economic Based Rates of Return: Implications
for Profitability Measures in the Pharmaceutical Industry. Central Therapeutics, 26 (1), 155-
174.
Skuras, D., and Vakrou, A. (2002). Consumers' willingness to pay for origin labeled wine: A
Greek case study. British Food Journal, 104 (11), 898-912.
357
Slade, M. E. (2004). Competing Models of Firm Profitability. International Journal of
Industrial Organization, 22, 289-308.
Slater, S. F., and Olson, E. M. (2001). Marketing's Contribution to the Implementation
of Business Strategy: An Empirical Analysis. Strategic Management Journal, 27 (12),
1221-1231.
Slotegraaf, R. J. and Atuahene-Gima, K. (2011) Product Development Team Stability and
New Product Advantage: The Role of Decision-Making Processes. Journal of Marketing 75
(January): 96-108.
Small Business Exporters Network. (2010). Are You Export Ready? Retrieved May 15, 2010
from http://www.exporters.sbdc.com.au/01_05_ready.asp
Smil, V. (1981). China's food: Availability, requirements, composition, prospects. Food
Policy (May), 67-77.
Smil, V. (2003). Feeding China: From wanting to wasting. Current History, 102 (665), 270-
273.
Smith, D. (2006). A Cross-Cultural Classification of Service Export Performance Using
Artificial Neural Networks: Japan, Germany and the United States. Journal of Global
Marketing, 20 (1), 5-19.
Smith, K. G., Collins, C. J., and Clark, K. D. (2005). Existing knowledge, knowledge
creation capability, and the rate of new product introduction in high-technology firms.
Academy of Management Journal. 48 (2). 346-357.
Smith, D., and Riethmuller, P. (1999). Consumer concerns about food safety in Australia and
Japan. International Journal of Social Economics, 26 (6), 724-742.
Smith, A. M., and Reynolds, N. L. (2002). Measuring cross-cultural service quality: a
framework for assessment. International Marketing Review. 19 (5). 450-481.
358
Solomon, M. R. (1983). The Role of Products as Social Stimuli: A Symbolic
Interactionist Perspective. Journal of Consumer Marketing 10, (December),
319-329.
Song, F., Cadsby, C. B., and Bi, Y. (2011). Trust, Reciprosity, and Guanxi in China: An
Experimental Investigation. Management and Organization Review, 8 (2), 397-421.
Song, M., Kawakami, T., and Stringfellow, A. (2010). A Cross National Comparative Study
of Senior Management Policy, Marketing-Manufacturing Involvement and Innovation
Performance. Journal of Product Innovation Management, 27, 179-200.
Song, M., and Parry, M. E. (1996). What Separates Japanese New Product Winners
From Losers. Journal of Product Innovation Management, 34 (1), 64-76.
Song, X. M., and Parry, M.E. (1994). The dimension of industrial new product success and
failure in state enterprises in the People's Republic of China. Journal of Product Innovation
Management, 11(2), 105-118.
Song, X. M., and Parry, M.E. (1997). The determinants of Japanese new product success.
Journal of marketing Research, 34 (February), 64-76.
Souiden, N. (2002). Segmenting the Arab markets on the basis of marketing stimuli.
International Marketing Review, 19 (6), 611-636.
Sousa, C. M. P. (2004). Export Performance Measurement: An Evaluation of the
Empirical Research in the Literature. Academy of Marketing Science Review, 9, 1-22.
Sousa, C. M. P., and Lengler, J. (2009). Psychic Distance, Marketing Strategy and
Performance in Export Ventures of Brazilian Firms. Journal of Marketing Management,
25 (5), 591-610.
359
Spanjol, J., Tam, L., Qualls, W. J., and Bohlmann, J. D. (2011). New Product Team Decision
Making: Regulatory Focus Effects on Number, Type, and Timing Decisions. Journal of
Product Innovation Management, 28, 623-640.
Spender, J. C., and Grant, R. M. (1996). Knowledge and the Firm: Overview. Strategic
Management Journal, 17 (Winter), 5-10.
Spring, M. and Dalrymple, J. F. (2000) Product Customisation and Manufacturing Strategy.
International Journal of Operations and Production Management 20 (3-4): 441-467.
Srinivasan, N., Jain, S. C., and Sikand, K. (2004). An Experimental Study of Two
Dimensions of Country of Origin (Manufacturing Country and Branding Country) Using
Intrinsic and Extrinsic Cues. International Business Review, 13, 65-82.
Srivastava, R. K., and Shocker, A. D. (1991). Brand Equity: A Perspective on its Meaning
and Measurement (Report No. 91-124): Marketing Science Institute.
Steffens, W., Martinsuo, M., and Artto, K. (2007). Change Decisions in Product
Development Projects. International Journal of Project Management, 25, 702-713.
Stenholm, C. W., and Waggonner, D. B. (1992). Public Policy in Animal Biotechnology in
the 1990s: Challenges and Opportunities. In J. F. MacDonald (Ed.), Animal Biotechnology:
Opportunities and Challenges (pp. 25-35). Ithaca, NY: National Agricultural
Biotechnological Council.
Stewart, S. (1989). Talking with the dragon: Negotiating in the People's Republic of China.
Columbia Journal of World Business, 24 (3), 68-72.
Stewart, S. (1993). The Stern Stewart Performance 1000 Database Package: Introduction
and Documentation. New York: Stern Stewart Management Services.
Stiles, J. (2003). A philosophical justification for a realistic approach to strategic alliance
research. Qualitative Market Research: An International Journal, 6 (4), 263-271.
360
Stottinger, B., and Holzmuller, H. H. (2001). Cross-National Stability of An Export
Performance Model - A Comparative Study of Australia and the US. Management
International Review, 41, 7-28.
Straus, S. G., and McGrath, J.E. (1994). Does the medium matter? The interaction of
task type and technology on group performance and member reactions. Journal of
Applied Psychology, 79 (1), 87-97.
Street, M. D., Douglas, S.C., Geiger, S.W., and Martinko, M.J. (2001). The impact of
cognitive expenditure on the ethical decision-making process: The cognitive elaboration
model. Organizational Behavior and Human Decision Process, 86(2), 256-277.
Sturdy, A. (2004). The Adoption of Management Ideas and Practices. Management Learning,
35 (2), 155-179.
Styles, C. (1998). Export Performance Measures in Australia and the United Kingdom.
Journal of International Marketing, 6 (3), 12-36.
Styles, C., and Ambler, T. (1994). Successful export practice: The UK experience.
International Marketing Review, 11 (6), 23-47.
Styles, C., and Ambler, T. (2003). The Coexistence of Transaction and Relational Marketing:
Insights from the Chinese Business Context. Industrial Marketing Management, 32, 633-642.
Styles, C., Patterson, P.G., and Ahmed, F. (2008). A Relational Model of Export
Performance. Journal of International Business Studies, 39 (5). 880-900.
Subramanian, R., and Gopalakrishna, P. (2001). The market orientation–performance
relationship in the context of a developing economy: an empirical analysis. Journal of
Business Research, 53 (1), 1-13.
Subramaniam, M., and Venkatraman, N. (2001). Determinants of transnational new product
development capability: testing the influence of transferring and deploying tacit overseas
knowledge. Strategic Management Journal, 22 (4), 359-378.
361
Sumner, G. A. (1906). Folkways. New York City: Ginn Custom Publishing.
Svenson, O. (1992). Differentiation and Consolidation Theory of human decision-
making: A frame of reference for the study of post-decision processes. Acta
Psychologica, 13, 1-13.
Svenson, O. (1996). Decision-making and the search for fundamental psychological
regularities: What can be learned from process perspective? Organizational Behavior and
Human Decision Process, 65(3), 252-267.
Swanson, L.A. (1996). 1.19850+ billion mouths to feed: food linguistics and cross-cultural,
cross-"national" food consumption habits in China. British Food Journal, 98 (6), 33-44.
Swierczek, F. W. (1991). Culture and Negotiation in the Asian Context: Key Issues in the
Marketing of Technology. Journal of Managerial Psychology 5 (5), 17-24.
Szymanski, D. M., Kroff, M. W., and Troy, L. C. (2002). Does product innovativeness really
enhance performance? Paper presented at the American Marketing Association.
Tai, L. S. T. (1988). Doing business with the People's Republic of China: Some Keys to
Success. Management International Review, 28 (1), 5-9.
Tan, S. J., and Leong, W. Y. (1999). Warranty strategy: a solution to hybrid product woes?
International Marketing Review, 16 (1), 40-64.
Tanzer, A. (1995). China's ravenous appetite. Forbes, 156 (14), 10-18.
Taylor, V. A. and A. B. Bower (2004). "Improving product instruction compliance: "If you
tell me why, I might comply." Psychology and Marketing 21 (3): 229-245.
Teas, K.R., and Agarwal, S. (2000). The effects of extrinsic product cues and consumers'
perceptions of quality, sacrifice and value. Journal of Academy of Marketing Science, 28 (2),
278-290.
362
Teas, K. R., and Sibley, S. D. (1980). An Examination of the Moderating Effect of
Channel Member Firm Size on Perceptions of Preferred Channel Linkages. Journal of
Academy of Marketing Science, 8 (3), 277-293.
Teece, D. J. (1998). Capturing Value from Knowledge Assets: The New Economy, Markets,
Know-How and Intangible Assets. California Management Review, 40 (3), 55-79.
Tedone, L., Palchetti, E., Manzelli, M., Benedettelli, S., Romagnoli, S., Traversi, D., ... &
Marzi, V. (2007). Environmental and genotypic influence on sensorial and typical potato
characteristics. In Proceedings from the Potato Russia International Conference, Moscow,
Russia, August 2007. (pp. 27-43). Wageningen Academic Publishers.
Teigen, K. H. (1996). Decision-Making in two worlds. Organizational Behavior and
Human Decision Process, 65 (3), 249-251.
Terpsrta, V. (1987). International Marketing. Hinsdale, Illinois: Dryden Press.
Tesar, G. (1975). Empirical Study of Export Operations Among small and
Medium-Sized Manufacturing Firms. Madison, Wisconsin: University of
Wisconsin.
Thakor, M. V., and Lavack, A. M. (2003). Effect of perceived brand origin associations on
consumer perceptions of quality. Journal of Product & Brand Management. 12 (6). 394-407.
Thakor, M. V., and Kohli, C. S. (1996). Brand Origin: Conceptualisation and Review.
Journal of Consumer Marketing, 13 (3), 27-38.
Theodosiou, M., and Leonidiou, L. (2003). Standardization versus adaptation of international
marketing strategy: an integrative assessment of the empirical research. International
Business Review, 12, 141-171.
Thirkell, P. C. and Dau, R. (1998) Export Performance: Success Determinants for New
Zealand Manufacturing Exporters. European Journal of Marketing 32(9/10): 813-829.
363
Thode, S. F., and Maskulka, J. M. (1998). Pace based marketing strategies, brand equity and
vineyard valuation. Journal of Product and Brand Management, 7 (5), 379-399.
Thorelli, H. B. (1982). China: Consumer Voice and Exit. In: International Fare in Consumer
Satisfaction and Complaining, eds. R. L. D. and. H. K. Hunt, University of Tennessee.
Thorelli H. B. (1990). The gay nineties in international marketing. In: Thorelli H,
Cavusgil S, editors. International Marketing Strategy. Oxford: Pergamon..
Tjosvold, D., and Sun, H. (2000). Social face in conflict: Effects of affronts to person and
position in China. Group Dynamics: Theory, Research, and Practice. 4 (3). 259.
Tjosvold, D., Law, K. S., and Sun, H. (2006). Effectiveness of Chinese Teams: The Role of
Conflict Types and Conflict Management Approaches. Management and Organization
Review, 2 (2), 231-252.
Toften, K., and Olsen, S. O. (2003). Export market information use, organizational
knowledge, and firm performance: a conceptual framework. International Marketing Review,
20 (1), 95-110.
Tong, C.K. and Kee, Y.P. (1998). Guanxi Bases, Xinyong and Chinese Business Networks,
British Journal of Sociology, 19 (March), 75–96.
Tong, L., and D. Taylor. Understanding Marketing Research. Frenchs Forest, NSW: Pearson
Prentice Hall, 2004.
Traill, B. (1997). Globalisation in the food industries? European Review of Agricultural
Economics 24, 390-410.
Tregear, A., Kuznesof, S. and Moxey, A. (1998). Policy initiatives for regional foods: some
insights from consumer research. Food Policy, 23 (5): 383-394.
Triandis, H.C. (1995). Individualism and Collectivism. Boulder, Co.: Westview Press.
364
Tsang, W. K. (1998). Can Guanxi be a Source of Sustained Competitive Advantage for
Doing Business in China? The Academy of Management Executive, 12 (2), 64-73.
Tse, A. (1999). Factors affecting consumer perceptions of product safety. European Journal
of Marketing, 33 (9/10), 911-925.
Tse, D.K., and Gorn, G.J. (1993). An experiment on the salience of country-of-origin in an
era of global brands. Journal of International Marketing, 1(1), 57-76.
Tse, D.K., and Lee, W. (1993). Removing negative country images: Effects of
decomposition, branding and product experience. Journal of International Marketing,
1 (4), 25-48.
Tse, D. K., Lee, K. H., Vertinsky, I., and Wehrung, D. A. (1988). Does culture matter? A
cross-cultural study of executives' choice, decisiveness, and risk adjustment in international
marketing. The Journal of Marketing, 52 (4), 81-95.
Tsui, A. S., and Fahr, J. L. (1997). Where Guanxi Matters: Relational Demography and
Guanxi in the Chinese Context. Work and Occupations, 24 (1), 56-79.
Tung, R. L. (1984). How To Negotiate with Japanese. California Management Review 26 (4),
62-77.
Turillo, C.J., Folger, R., Lavelle, J.J., Umphress, E.E., and Gee, J.O. (2002). Is virtue its own
reward? Self-sacrificial decisions for the sake of fairness. Organizational Behavior and
Human Decision Process, 89, 839-865.
Ueland, O. (2007). Gender Differences in Food Choice. In L. Brewer and H. V. Trijp
(Eds.), Understanding Consumers of Food Products. Cambridge, UK: Woodheath
Publishing.
Ulrich, K. (1995). The Role of Product Architecture in the Manufacturing Firm. Research
Policy, 24, 419-440.
365
Upadhyay, Y. and Singh, S. K. (2006). Preference for Domestic Goods: A Study of
Consumer Ethnocentrism. The Journal of Business Perspective 10 (3): 59-68.
Usunier, J. C., and Cestre, G. (2007). Product Ethnicity: Revisiting the Match Between
Products and Countries. Journal of International Marketing, 15 (3), 32-72.
Usunier, J. C., and Cestre, G. (2008). Comment: Further Considerations on the Relevance of
Country‐of‐Origin Research. European Management Review. 5 (4). 271-274.
Valenzuela, A., and Dhar, R. (2004). Effects of preference elicitation task on consumer
reactions to product customization. Advances in Consumer Research, 31, 685-688.
Van Dam, Y. K., and Van Trijp, H. (2007). Branding and Labelling of Food Products.
In L. Frewer and H. V. Trijp (Eds.), Understanding Consumers of Food Products.
Cambridge, UK: Woodhead Publishing.
Van der Lans, I. A., Van Ittersum, K., De Cicco, A., and Loseby, M. (2001). The role of the
region of origin and EU certificates of origin in consumer evaluation of food products.
European Review of Agricultural Economics, 28 (4), 451-477.
Van der Merwe, D., Kempen, E. L., Breedt, S., and de Beer, H. (2010). Food Choice: Student
Consumers' Decision-Making Process Regarding Food Products with Limited Label
Information. International Journal of Consumer Studies, 14 (1), 11-18.
Van Ittersum, K., Candel, M. J. J. M., and Meulenberg, M. (2003). The influence of image of
a product's region of origin on product evaluation. Journal of Business Research, 56, 215-
226.
Van Knippenberg, D., and Schippers, M. C. (2007). Work group diversity. Annual Review of
Psychology. 58. 515-541.
366
Van Knippenberg, D., van Knippenberg, B., and van Dijk, E. (2000). Who takes the lead in
risky decision making? Effects of group members' risk preferences and prototypicality.
Organizational Behavior and Human Decision Process, 83 (2), 213-234.
Van Mesdag, M. (2000). Culture-Sensitive Adaptation or Global Standardization - The
Duration-of-Usage Hypothesis. International Marketing Review, 17 (1), 74-84.
Van Putten, M., Schenk, M. F., Gremmen, B., and Frewer, L. J. (2007). Consumers,
Communication and Food Allergy. In L. Frewer and H. V. Trijp (Eds.). Cambridge,
UKCambridge, UK: Woodheath Publishing.
Van Rompay, T. J. L., Pryun, A. T. H., and Tieke, P. (2009). Symbolic Meaning
Integration in Design and Its Influence on Product and Brand Evaluation. International
Journal of Design, 3 (2), 19-26.
Veeck, A. (2000). The Revitalization of the Marketplace: Food Markets of Nanjing. In:
Consumer Revolution in Urban China, ed.. D. S. Davis, University of California Press.
Veeck, A. (2003). Consumer Response to Changing Food Systems in Urban China. Advances
in Consumer Research, 30, 142.
Veeck, A. and Burns, A. C. (2005) Changing Tastes: The Adoption of New Food Choices in
Post-Reform China. Journal of Business Research 5 (4): 644-652.
Velicer, W. F., and Fava, J. L. (1998). Effects of variable and subject sampling on factor
pattern recovery. Psychological Methods (3), 231-251.
Venkatraman, N. (1989). The Concept of Fit in Strategy Research: Toward Verbal and
Statistical Correspondence. Academic Management Review, 14 (3), 423-444.
Venkatraman, N., and Prescott, J. E. (1990). Environment-Strategy Co-alignment: An
Empirical Tests of its Performance Implications. Strategic Management Journal, 11 (1), 1-
23.
367
Verbeke, W. (2006). Functional Foods: Consumer Willingness to Compromise on Taste
for Health? Food Quality and Preference, 17 (1-2), 126–131.
Verbeke, W., and Viaene, J. (1999). Consumer attitude to beef quality labeling and
associations with beef quality labels. Journal of International Food & Agribusiness
Marketing, 10 (3), 45-65.
Verbeke, W., and Ward, R. W. (2006). Consumer interest in information cues denoting
quality, traceability and origin: An application of ordered probit models to beef labels. Food
Quality and Preference. 17 (6). 453-467.
Verlegh, P. W. J., and Steenkamp, J-B.E.M. (1999). A review and meta analysis of country of
origin research. Journal of Economic Psychology, 20, 521-546.
Verlegh, P. W. (2007). Home country bias in product evaluation: the complementary roles of
economic and socio-psychological motives. Journal of International Business Studies. 38 (3).
361-373.
Verzberger, Y. Y. I. (1994). Collective risk taking: The decision making group and
organisation. Paper presented at the 35th Annual Convention of the International
Studies Association, Washington D.C.
Viswanathan, N. K., and Dickson, P. R. (2007). The Fundamentals of Standardizing
Global Marketing Strategy. International Marketing Review, 24 (1), 46-63.
Voss, G. B. and Voss, Z. G. (2000). Strategic Orientation and Firm Performance in an
Artistic Environment. Journal of Marketing, 64 (January), 67-83.
Vrontis, D., Thrassou, A., and Lamprianou, I. (2009). International Marketing
Adaptation Versus Standardization of Multinational Companies. International
Marketing Review, 26 (4/5), 477-500.
Vroom, V. H. (1969). Industrial Social Psychology. In G. Lindzey and E. Aronson
(Eds.) Handbook of Social Psychology (2nd ed. Vol. 5).
368
Vroom, V. H. (2000). Leadership and the decision-making process. Organizational
Behavior and Human Decision Process, 28 (4), 82-94.
Wall, M., and Heslop, L. A. (1986). Consumer Attitudes Towards Canadian Made Versus
Imported Products. Journal of Academy of Marketing Science, 14 (Summer), 27-36.
Walters, P. G. P. (1986). International marketing policy: a discussion of the standardization
construct and its relevance for corporate policy. Journal of International Business Studies,
17(2), 55-69.
Walters, P. G. P., and Toyne, B. (1989). Product Modification and standardization in
international markets: strategic options and facilitating policies. Columbia Journal of World
Business, 24(4), 37-44.
Wan, G. H. (2004). Accounting for Income Inequality in Rural China: A Regression-Based
Approach. Journal of Comparative Economics, 32 (2), 348-363.
Wan, G. H. (2005). Convergence of food consumption in Rural China: Evidence from
household survey data. China Economic Review, 16, 90-102.
Wan, W., and Hoskisson, R. E. (2003). Home Country Environment, Corporate
Diversification Strategies and Firm Performance. Academy of Management Journal, 46, 27-
45.
Wang, C.-K., and Lamb, C,W. (1983). The impact of selected environmental forces upon
consumers' willingness to buy foreign products. Journal of the Academy of Marketing
Science, 11 (2) (Winter), 71-84.
Wang, C. L. (2007). Guanxi vs. Relationship Marketing: Exploring Underlying Differences.
Industrial Marketing Management, 36, 81-86.
369
Wang, C. L., and Chen, Z. X. (2004). Consumer ethnocentrism and willingness to buy
domestic products in a developing country setting: testing moderating effects. Journal of
Consumer Marketing, 21 (6), 391-400.
Wang, Z., Bovik, A. C., Sheikh, H. R., and Simoncelli, E. P. (2004). Image quality
assessment: From error visibility to structural similarity. Image Processing. 13 (4). 600-612.
Wang, G., Fletcher, S. M., and Carley, D. H. (1995). Consumer Utilization of Food Labeling
as a Source of Nutrition Information. Journal of Consumer Affairs, 29 (2), 368-380.
Wang, G., and Olsen, J. E. (2002). Knowledge, Performance, and Exporter Satisfaction: An
Exploratory Study. Journal of Global Marketing, 15 (3/4), 39-64.
Wang, Y., Bentley, M. E., Zhai, F., and Popkin, B. M. (2002). Tracking of Dietary Intake
Patterns of Chinese from Childhood to Adolescence over a Six Year Follow Up Period. The
Journal of Nutrition, 132 (3), 430-438.
Wansink, B., Sonka, S. T., and Hasler, C. M. (2004). Front-label health claims: when less is
more. Food Policy. 29 (6). 659-667.
Watson, J. J., and Wright, K. (2000). Consumer ethnocentrism and attitudes towards
domestic and foreign products. European Journal of Marketing, 34 (9/10), 1149-1166.
West, M. A. (2002). Sparkling fountains or stagnant ponds: An integrative model of
creativity and innovation implementation in work groups. Applied Psychology, 51 (3), 355-
387.
Westhead, P., and Howorth, C. (2006). Ownership and management issues associated with
family firm performance and company objectives. Family Business Review. 19 (4). 301-316.
Webb, K. L., and Hogan, J. E. (2002). Hybrid channel conflict: causes and effects on channel
performance. Journal of Business & Industrial Marketing, 17 (5), 338-356.
Webb, D., and Po, K. (2000). Country of Origin and Brands Effects in a University
370
Setting, from
http://216.239.59.104/search?q=cache:14LzT6pxDtAJ.130.195.95.71:808/www.anzmac
2000/CD2000
Webster Jnr, F. E., Malter, A. J., and Ganesan, S. (2003). Can Marketing
Regain its Seat at the Table? Unpublished manuscript.
Wei, Y. D., and Leung, C. K. (2005). Development Zones, Foreign Investment, and
Global City Formation in Shanghai. Growth and Change: A Journal of Urban and
Regional Policy, 36 (1), 16-40.
Wiig, K. M. (1997). Knowledge Management: An Introduction and Perspective. Journal of
Management, 1 (1), 6-14.
Wilkinson, A. (1991). Developing an Expert System on Project Evaluation. R&D
Management, 21, 19-29.
Wills, I. R., and Harris, J. (1994). Government versus private quality assurance for
Australian food exports. Australian Journal of Agricultural and Resource
Economics, 38 (1), 77-92.
Wind, Y., and Perlmutter, H. (1977). On the identification of frontier issues in international
marketing. Columbia Journal of World Business, 12 (4), 131-139.
Witz, K. G., Goodwin, D. R., Hart, R. S., and Thomas, S. (2001). An essential methodology
in education related research using in-depth interviews. Journal of Curriculum Studies, 33
(2), 195-227.
Wolff, J. A., and Pett, T. L. (2000). Internationalisation of small firms: An extension of
export competitive patterns, firm size, and export performance. Journal of Small Business
Management, 38 (2), 34-47.
Wong, Y. H. (1999). Can relationships be segmented? The Chinese guanxi approach. Journal
of Segmentation in Marketing, 3 (2), 23-41.
371
Woodall, P. (2004). The dragon and the eagle. The Economist, 373 (8395), 3-5.
Wright, L. T., Nancarrow, C., and Kwok, P. M. (2001). Food taste preferences and cultural
influences on consumption. British Food Journal, 103 (5), 348-357.
Wu, Y.-M. (1995). Food and health: The impact of Chinese traditional philosophy of food on
the young generation in the modern world. Nutrition and Food Science, 95 (1), 23-27.
Xie, J., Song, M., and Stringfellow, A. (2003). Antecedents and Consequences of Goal
Incongruity on New Product Development in Five Countries: A Marketing View. Journal
Product Innovation Management, 20, 233-250.
Xin, K. R., and Pearce, J. L. (1996). Guanxi: Connections as substitutes for formal
institutional support. Academy of Management Journal, 39 (6), 1641-1658.
Xin, H., and Stone, R. (2008). Chinese probe unmasks high-tech adulteration with
melamine. Science, 322 (5906), 1310-1311.
Xu, J., Ma, E. T., Tashi, D., Fu, Y., Lu, Z., and Melick, D. (2005). Integrating sacred
knowledge for conservation: cultures and landscapes in southwest China. Ecology and
Society, 10 (2), 7.
Xu, Z., Xu, J., Deng, X., Huang, J., Echuda, E., and Rozelle, S. (2006). Grain for Green
versus Grain: Conflict between Food Security and Conservation Set-Aside in China. World
Development, 34 (1), 130-148.
Yahaya, S. Y., and Abu-Bakar, N. (2007). New Product Development Management
Issues and Decision Making Approaches. Management Decision., 45 (7), 1123-1142.
Yang, C.F. (2001). A Critical Review of the conceptualizations of Guanxi and Renqing. In
C.F. Yang (Ed.), The Interpersonal Relationship, Affection and Trust of the Chinese From an
Interaction Perspective (pp. 337-370). Taipei: Yuan Liou Publishing Co. (in Chinese).
372
Yang, C. (1986). Playing the China card. Forbes, 177, 107.
Yang, M. M. (1994). Gifts, favors, and banquets: The art of social relationships in China.
Cornell University Press.
Yarborough, L., Morgan, N. A., and Vorhies, D. W. (2011). The Impact of Product
Marketing Strategy-Organizational Culture Fit on Business Performance. Journal of the
Academy of Marketing Science, 39 (4), 555-573.
Yasin, N. M., Noor, M. N., and Mohamad, O. (2007). Does Image of Country of Origin
Matter to Brand Equity? Journal of Product and Brand Management, 16 (1), 38-48.
Yau, O. H. M. (1988). Chinese Cultural Values: Their Dimensions and Marketing
Implications. European Journal of Marketing 22 (5), 44-57.
Yeniyurt, S., and Townsend, J.D. (2003). Does culture explain acceptance of new products in
a country? International Marketing Review, 20(4), 377-396.
Yeung, I. Y. M., and Tung, R. L. (1996). Achieving Business Success in Confucian Societies.
The Importance of Guanxi. Organisational Dynamics, 25 (2), 54-65.
Yifu, L. (2007, 8th January). Looking at the Negative Side of China's Progress. China Daily,
p. 4.
Yip, G. S. (2003). Total Global Strategy, Prentice Hall, Englewood Cliffs, NJ.
Yoo, B., and Donthu, N. (2005). The effect of personal cultural orientation on consumer
ethnocentrism: evaluations and behaviors of US consumers toward Japanese
products. Journal of International Consumer Marketing. 18 (1-2). 7-44.
Yorkston, E., and Menon, G. (2004). A Sound Idea: Phonetic Effects of Brand Names in
Consumer Judgments. Journal of Consumer Research 31 (1), 43-52.
373
Zeithaml, V. (1988). Consumer Perceptions of Price, Quality and Value: A Means-End
Model and Synthesis of Evidence. Journal of Marketing, 52 (2), 2-22.
Zeng, X. (2002). Trading rights after China's WTO entry. The China Business Review, 29 (1),
16-20.
Zhang, K. H. (2001). What attracts foreign multinational corporations to China?
Contemporary Economic Policy, 19 (3), 336-346.
Zhang, Y. (1996) Chinese Consumers' Evaluation of Foreign Products: The Influence of
Culture, Product Types and Product Presentation Format. European Journal of Marketing 30
(12), 50-68.
Zhao, J. (1991). Doing Business with China: Cultural Aspects. East Asian Executive Reports,
(January), 10-11.
Zhao, J. J. (2000). The Chinese Approach to International Business Negotiation.
Journal of Business Communication. (July), 209-243.
Zheng, W., Yang, B., and McLean, G. N. (2010). Linking organizational culture, structure,
strategy, and organizational effectiveness: Mediating role of knowledge management.
Journal of Business Research, 63 (7), 763-771.
Zhou, L. and Hui, M. K. (2003) Symbolic Value of Foreign Products in the People's Republic
of China. Journal of International Marketing 11 (2), 36-58.
Zhou, L., Wu, W. P., and Luo, X. (2007). Internationalization and the performance of born-
global SMEs: the mediating role of social networks. Journal of International Business
Studies, 38 (4), 673-690.
Zhou, Y. H., Lu, L. X., and Geng, X. H. (2003). The Change of Fresh Food Purchasing
Channels and Its Trend - An Investigation on Why Consumers in Nanjing Select
Supermarkets. Journal of Chinese Distribution Economics, 4, 14-17.
374
Zhou, J. X., Arnold, M. J., Pereira, A., and Yu, J. (2010). Chinese Consumer Decision-
Making Styles: A Comparison Between the Coastal and Inland Regions. Journal of
Business Research, 63 (1), 45-51.
Zirger, B. J., and Hartley, J. L. (1994). A Conceptual Model of Product Development
Cycle Time. Journal of Engineering and Technology Management, 11, 229-251.
Zou, S., and Cavusgil, S.T. (1996). Global Strategy: a review and integrated conceptual
framework. European Journal of Marketing, 30 (1), 52-69.
Zou, S., Taylor, C. R., and Osland, G. E. (1998). The EXPERF scale: a cross-national
generalized export performance measure. Journal of International Marketing, 6 (3), 37-58.
Zucker, L. (1986). Production of trust: Institutional sources of economic structure. In B. M.
Staw and L.L. Cummings (Eds). Research in Organisational Behaviour, 8, 53-101.
Zunft, H., Friebe, D., Seppelt, B., De Graaf, C., Margetts, B., Schmitt, A., and Gibney, M. J.
(1997). Perceived benefits of healthy eating among a nationally-representative sample of
adults in the European Union. European Journal of Clinical Nutrition, 51 (2), S41-S46.
375
List of Appendices
Appendix 1: Qualitative Interviews: Question Guide
Q1. What products or categories of products do you export?
Q2. What countries do you export to?
Q3. Why those countries as export destinations?
Q4. How long have you been exporting to Asia or throughout Asia from the time you first started?
Q5. How different are the products that you sell domestically in any facet, to the ones that you export?
What are some of the differences that you make, if any at all, to the products that find their ways into
Asian markets?
Q6. Are there products that you manufacture here or in any of your offshore manufacturing facilities that
are unique to offshore markets? In other words, products that you might make here for export only and
that aren’t sold into any Australian market?
Q7. Do you undertake research into factors that are beyond product and industry? For example, in
deciding to export to China, did you look at a nation’s economy and people’s ability to afford your product
as part of your research?
Q8. Who buys your product? Do you sell direct to retailers? Or is there an export buyer who then
wholesales to the retail train. How does your product end up into the hands of whoever the final consumer
is, in your offshore markets?
Q9. Do you look at national culture as an influence in modifying your product for specific Asian markets?
Does China’s culture in a broad sense, or even in a narrower dietary sense, influence the type of product
that you export or the way you modify the product you export?
Q10. Is there an investment in technology in this organisation to adapt product(s) for export? Do you have
to change manufacturing processes? Do you have to change packaging and labelling, to make the product
in all its parts, the core product, , the packaging, the labelling, suitable to say national laws in the overseas
market? Is there a lot of investment that you have to make to do this?
Q11. In thinking about the decision to export,, what company related factors influenced the decision to
source export markets, irrespective of where they are in the world?
Q12. In your export marketing, do you find that the fact that Australia is perceived internationally as a
very clean and green reputation for food manufacturer or food additives exporter?, If so, does this assist
your export marketing, in terms of attracting overseas buyers to your products?
Q13. In terms of decision making for export markets and specifically product related export decisions, ,
who makes the decision in this organization?
Q14. What proportion (per centage) of the total turnover of your business, is export(to all parts of the
world)?.
Q15. Can you see further export expansion, into other parts of Asia, in the not too distant future? What
about additional expansion to or within China?
Q16. Do you pre-test your products before launching them overseas? If so, how and where? What is the
duration of time of the pre-launch?
Q17. What role, if any, do intermediaries play in the export decision making process?
376
Q18. What role, if any, do intermediaries play in the export product development process?
Q19. If you use them, where are the intermediaries located (Locally? Overseas?)
Q20. Are intermediaries involved in market(ing) research in the export market?
377
Appendix 2: Questionnaire
A STUDY OF THE EXPORT FOOD PRODUCT
CUSTOMISATION OR STANDARDISATION DECISION FOR
THE PEOPLE’S REPUBLIC OF CHINA
HOW TO COMPLETE THIS QUESTIONNAIRE
The purpose of this survey is to explore customisation/customisation decisions regarding
their food products in preparation for sale in the People’s Republic of China. This is part of
an academic study for a Ph.D. at Swinburne University, Australia) and has no commercial
purpose whatsoever.
Most questions refer to decisions that exporters make regarding food products they export to
the People’s Republic of China. A small number of questions relate to the organisation
making these decisions.
In most cases I would like you to circle a number or tick a box which best reflects your
opinion. In a small number of instances, you are asked to supply a short written answer.
There are no right or wrong answers.
Thank you for agreeing to participate in this survey.
378
Background
In this section, I am interested in some background information regarding your organisation’s exporting of packaged food products to the People’s Republic of China.
Q1. Does your organisation currently export packaged food products to the People’s Republic
of China?
1 Yes 2 No (please tick √ one response only)
If you ticked no, thank you for participating in this research study.
Decision Making
In this section, we are interested in knowing how decisions are made regarding the packaged food products exported to the People’s Republic of China
Q2. Are you responsible for export product decisions for China in your organisation?
1 Yes 2 No (please tick √ one response only)
Q3. Does anyone else contribute significantly to the export packaged food product decisions
for China in your organisation?
1 Yes 2 No (please tick √ one response only)
If yes, please go to next question
Q4. (a) Please identify who else contributes to the export food product decisions for China in
your organisation? (tick √ as many responses as appropriate)
1 Export Manager 4 R&D Manager 7 Administration Manager
2 CEO 5 Sales Manager 8 Finance Manager
379
3 General Manager 6 Marketing Manager 9 Other
Q4. (b) If you ticked √ other as a response for the previous question, please specify the title of
the export decision maker(s). ________________________________________________
Q5. In your company, where are decisions made regarding the type, size, and amount of
packaged food product to be exported to the People’s Republic of China made?
1 China
2 Home country/Organisational headquarters
3 Other (please specify) ____________________________________________
The People’s Republic of China
In this section, I explore your interest in the People’s Republic of China as an export destination for your packaged food products.
Q6. What factors contributed to your organisation selecting the People’s Republic of China as
an export destination for packaged food products? (Please number your responses from 1 to 10, where 1 is
the most important reason and 10 is the least important reason).
1 Size of the China market
2 Level of competition in China
3 Similarities to the home market
4 Minimal product change requirements for China
5 Dietary needs of the China market
380
6 China’s entry into the WTO
7 Advice from domestic (your home country) government trade agency
8 Advice from Chinese government trade agency
9 Advice from import/export intermediary (middleman)
10 Other (please specify) ______________________________________
Q7. (a) Market/ing research was conducted on the competitive environment for packaged
foods in the People’s Republic of China prior to entering the market
1 Yes 2 No
If your answered Yes to the previous question go to Q7 (b). If you answered No, go to Q8.
Q7. (b) Who conducted the initial market/ing research to assess the competitive environment
for packaged food products in the People’s Republic of China?
1 Your organisation
2 Market/ing research specialist based in China
3 Market/ing research specialist based in your home country
4 International market/ing research specialist with many offices
worldwide (i.e. not based in either your home country nor in China)
5 Don’t know
6 Other (please specify) ______________________________________
381
Q8. Did your organisation consider product related factors (e.g. flavours, package size,
labelling) as part of the initial market/ing research to assess the competitive environment for
packaged food products to the People’s Republic of China?
1 Yes 2 No 3 Don’t know
Q9 (a). Did your organisation segment within People’s Republic of China as part of the initial
market/ing research to assess the competitive environment for packaged food products? (i.e.
did you choose particular market segments within china to research)
1 Yes 2 No 3 Don’t know
If you answered Yes to this question, please go to Q9 (b). If you answered No, please go to Q10.
Q9 (b) Which of the following factors, if any, did your organisation consider when
segmenting the People’s Republic of China for the export of packaged food products to that
nation? (Please tick as many responses as appropriate)
1 Consumption patterns
2 Geography
3 Topography
4 Linguistic diversity
5 Dietary habits
6 Availability of suitable ‘middlemen’ or distribution channel intermediaries
7 Available infrastructure
8 Psychographic factors (e.g. life style)
9 Other (please specify) ___________________
382
Your Customer(s) in China
In this section, I explore the type of organisation(s) in the People’s Republic of China that you export your packaged food products through.
Q10. Which type of organisation is the primarybuyer/distributor of your packaged food
product in the People’s Republic of China? (you may tick √ more than one response)
1 Subsidiary of your company
2 Import retailer
3 Import wholesaler
4 Federal/National government authority
5 State/Provincial government authority
6 Local government authority
7 Private enterprise
8 State owned enterprise
9 Other (please specify) ______________________________________
383
Q11. What factors influenced your choice of distributor (from the previous question) in the
People’s Republic of China? (Please rank your responses 1 = ‘most important’ to 5 = ‘least important’)
The distributors’:
1 Knowledge of Chinese industry/market
2 Knowledge/expertise of packaged food products
3 Knowledge/expertise concerning end userC/S onsumers
4 Sales and marketing knowledge
5 Knowledge of China import/export procedures
6 Other (please describe) _____________________________________
Q12. When negotiating a trade deal to market packaged food within the People’s Republic of
China, how important was guanxi (personal connections/relationships) to the trade
negotiation? (Please circle one response only).
Not important 1 2 3 4 5 6 7 Critical
China’s Economy
In this section, I am interested in the role that economic conditions played in product related decisions concerning packaged food goods exported to the People’s Republic of China.
Q13. To what extent did the performance and/or size of China’s economy influence your
decision to market packaged food products there? (Please circle one response only).
Not important 1 2 3 4 5 6 7 Critical
384
Q14. To what extent was China’s stage of economic development a factor in selecting this
market as an export destination for your organisation’s packaged food products? (Please circle
one response only).
Not important 1 2 3 4 5 6 7 Critical
New Product Development for China
In this section, I am interested in your organisation’s decision-making processes concerning the export of packaged food products to the People’s Republic of China.
Q15. Where does your organisation conduct its new product development for packaged food
products exported to the People’s Republic of China?
1 Home country 2 China 3 Both
Q16 (a). Is your primary buyer/distributor in the People’s Republic of China (from the
previous section) involved in your development of new packaged food product?
1 Yes 2 No
If you ticked Yes, go to Q16 (b), if No go to Q17.
Q16 (b). What specific type of involvement does the primary buyer/distributor of packaged
food products have in the new product development process? (tick √ as many responses as appropriate)
1 Idea generation
2 Market(ing) research
3 Business analysis (determining financial objectives for the product)
4 Sourcing of raw materials
385
5 Pilot testing of product prototype
6 Product launch
7 Determining product technical specifications (e.g. content)
8 Packaging and labelling decisions
9 Branding decisions
10 Determining pack size(s)
11 Determining product/brand extensions
Branding
Q17 (a). Does your organisation use the same brand name of packaged food product in the
People’s Republic of China as it does in its domestic (home country) market?
1 Yes 2 No
If you answered Yes to this question, please go to Q18. If you answered No, please go to Q17(b).
Q17 (b). Provide reasons why your organisation changed the brand name of the food
products it exports to the People’s Republic of China?
1 Competitive reasons
2 Legal reasons
3 Organisation strategic reasons
4 Other (please specify) __________________________________________
386
Q18 (a). Does your organisation use the same corporate logo (i.e. corporate identification) of
packaged food product in the People’s Republic of China as it does in its domestic (home
country) market?
1 Yes 2 No
If you answered Yes to this question go to Q19. If you answered No, go to Q18(b).
Q18 (b). Provide reasons why your organisation changed the corporate logo of the food
products it exports to the People’s Republic of China?
1 Competitive reasons
2 Legal reasons
3 Organisation strategic reasons
4 Other (please specify) ___________________________________
Q19 (a). Does your organisation try to maintain the same brand image of packaged food
product in the People’s Republic of China as it does in its domestic (home country) market?
1 Yes 2 No
If you answered Yes to this question, go to Q20. If you answered No, go to 19(b).
387
Q19 (b) Provide reasons why your organisation changed the brand image of the food
products it exports to the People’s Republic of China?
1 Competitive reasons (i.e. current or future levels of competition)
2 Legal reasons
3 Organisation strategic reasons (i.e. to create a different corporate image in China
4 Other (please specify) ___________________________________________
Country of Origin
In this section, I am interested in learning about the effect, if any, that the home (exporting)
country’s image has on the marketing of packaged food products to the People’s Republic of
China.
Q20. I believe that the image of the country in which my packaged food products are
manufactured either positively or negatively influences the primary buyer’s/distributor’s
decision in the People’s Republic of China.
1 2 3 4 5 6 7 disagree agree
Q21 Do you believe that the region of origin (i.e. the region where my packaged food
products are made, e.g. South America) is an important factor in your primary buyer’s choice
of selecting your product to purchase?
1 Yes 2 No
Q22. To what extent do you believe that Chinese end user/consumers perceive foreign made
brands of packaged food products as being of superior quality than locally produced brands?
388
1 2 3 4 5 6 7 don’t critically
believe important
Chinese Culture/End User-Consumer Behaviour
Q23. What aspects of culture/end user consumer behaviour in the People’s Republic of China
influenced your organisation’s product related decisions for packaged food products exported
to China? (Please number your responses from 1 to 6, where 1 is the most important reason and 6 is the least important
reason).
1 Chinese consumption patterns (e.g. frequency of consumption)
2 Chinese dietary habits (e.g. flavour preferences)
3 Chinese nutrition patterns (e.g. a preference for low fat foods)
4 Chinese food safety standards (e.g. specified minimum shelf life)
5 Other (specify)_________________________________
Packaged Food Product Customisation/Standardisation Decisions
for the People’s Republic of China
Reflect on a recent product customisation/standardisation decision regarding a package food
product you now export to the People’s Republic of China.
389
Q24. In my recent packaged food product customisation/standardisation decision regarding
export to China, the amount of product customisation (if any) decided upon was: (Please circle
one response only).
1 2 3 4 5 6 7 nil total
customisation customisation
Q25. In my recent packaged food product customisation/standardisation decision regarding
export to China, the amount of packaging and labelling customisation is: (Please circle one response
only).
1 2 3 4 5 6 7 nil total
customisation customisation
Q26. In my recent packaged food product customisation/standardisation decision regarding
export to China, the amount of pack size customisation is: (Please circle one response only).
1 2 3 4 5 6 7 nil total
customisation customisation
Q27. In my recent packaged food product customisation/standardisation decision regarding
export to China, the amount of product content customisation is: (Please circle one response only).
1 2 3 4 5 6 7 nil total
customisation customisation
Considering the same recent customisation/standardisation decision, please rate the
importance of the following factors as possible influences in the export packaged food
product customisation/standardisation decision. (Please circle one response per question only).
390
Q28. Chinese end user/consumer behaviour and cultural issues were:
1 2 3 4 5 6 7 not critically
important important
Q29. Chinese end user/consumer consumption patterns (e.g. frequency of consumption of
food category) were
1 2 3 4 5 6 7 not critically
important important
Q30. Chinese end user/consumer dietary habits (e.g. flavour preferences) were
1 2 3 4 5 6 7 not critically
important
Q31. Chinese end user/consumer nutrition patterns (e.g. preference for low fat foods) were
1 2 3 4 5 6 7 not critically
important
Q32. Chinese end user/consumer food safety standards (e.g. specified minimum shelf life)
were
1 2 3 4 5 6 7 not critically
important
391
Q33 Is there an important consumer behaviour/cultural issue that has not been mentioned
above? (If you ticked Yes to this question, go to question 34. If you ticked No, go to question 35).
1 Yes 2 No No
Q34. Chinese end user/consumer other end user/consumer behaviour and cultural issues
were
1 2 3 4 5 6 7 not critically
important
(Please specify which consumer behaviour or cultural issue you are referring to)
______________________________________________________________________
Considering the same recent customisation/standardisation decision, please rate the
importance of the following factors as possible influences in the export packaged food
product customisation/standardisation decision. (Please circle one response per question only).
Q35. Our organisation’s overall strategic intent was
1 2 3 4 5 6 7 not critically
important important
Q36. Our organisation’s goals regarding market share for packaged food product sales in
China was
1 2 3 4 5 6 7 not critically
important important
392
Q37. Our organisation’s goals regarding unit sales for packaged food product sales in China
was
1 2 3 4 5 6 7 not critically
important important
Q38. Our organisation’s goals regarding profit for packaged food product sales in China was
1 2 3 4 5 6 7 not critically
important important
Q39. Our organisation’s goals regarding return on investment for packaged food product
sales in China was
1 2 3 4 5 6 7 not critically
important important
Considering the same recent customisation/standardisation decision, please rate the
importance of the following factors as possible influences in the export packaged food
product customisation/standardisation decision. (Please circle one response per question only).
(If you believe an important organisational strategic intent factor has not been mentioned
above, please complete this question.)
393
Q40. Our organisation’s goal regarding _______________________________ for packaged
food product sales in China was (please insert the goal you believe is missing)
1 2 3 4 5 6 7 not critically
important important
Q41. The Chinese end user consumers’ perception of my product/brand’s country of origin
was
1 2 3 4 5 6 7 not critically
important important
Q42. The Chinese end user/consumer’s perception of country of origin’s reputation for
product/quality/freshness was
1 2 3 4 5 6 7 not critically
important important
Q43. The Chinese end user/consumer’s perception of country of origin’s reputation for
offering innovative food products was
1 2 3 4 5 6 7 not critically
important important
394
Q44. The Chinese end user/consumer’s perception of country of origin’s reputation for
product safety was
1 2 3 4 5 6 7 not critically
important important
Q45. The Chinese end user/consumer’s perception of country of origin’s reputation for food
manufacturing expertise (e.g. ISO 9001 accreditation) was
1 2 3 4 5 6 7 not critically
important important
Considering the same recent customisation/standardisation decision, please rate the
importance of the following factors as possible influences in the export packaged food
product customisation/standardisation decision. (Please circle one response per question only).
Q46. The Chinese end user/consumer’s perception of country of origin’s reputation for
customising packaged food product to suit the needs of the China market was
1 2 3 4 5 6 7 not critically
important important
Q47. The competitive factors (e.g. size of competitors, number of competitors, basis of
competition) in China was
1 2 3 4 5 6 7 not critically
important important
395
Q48. My organisation’s perception of the number of the competitors in the China market was
1 2 3 4 5 6 7 not critically
important important
Q49. My organisation’s perception of the size of the competitors in the China market was
1 2 3 4 5 6 7 not critically
important important
Q50. My organisation’s perception of the basis of competition (e.g. price, product quality) in
the China market was
1 2 3 4 5 6 7 not critically
important important
Q51. My organisation’s perception of competitors’ brand strength in the China market was
1 2 3 4 5 6 7 not critically
important important
Considering the same recent customisation/standardisation decision, please rate the
importance of the following factors as possible influences in the export packaged food
product customisation/standardisation decision. (Please circle one response per question only).
Q52. (If you believe an important competitive strength factor has not been mentioned above,
please complete this question.)
396
My organisation’s perception of other competitor strengths in the China market was
1 2 3 4 5 6 7 not critically
important important
(please nominate the competitor strengthI have missed ____________________________)
Q53. The economic conditions in then People’s Republic of China (e.g. stage of China’s
economic development, China’s level of regional/global economic integration) were:
1 2 3 4 5 6 7 not critically
important important
Q54. Chinese economic conditions concerning employment levels were
1 2 3 4 5 6 7 not critically
important important
Q55. Chinese economic conditions concerning income levels were
1 2 3 4 5 6 7 not critically
important important
Q56. Chinese economic conditions concerning regional economic integration were
1 2 3 4 5 6 7 not critically
important important
397
Q57. Chinese economic conditions concerning global economic integration were
1 2 3 4 5 6 7 not critically
important important
Q58. Chinese economic conditions concerning regional economic integration were
1 2 3 4 5 6 7 not critically
important important
Q59. Chinese economic conditions concerning economic growth rates were
1 2 3 4 5 6 7 not critically
important important
Considering the same recent customisation/standardisation decision, please rate the
importance of the following factors as possible influences in the export packaged food
product customisation/standardisation decision. (Please circle one response per question only).
Q60. Chinese economic conditions concerning stage of economic growth (i.e. moving from
an agricultural economy to an industrial economy) were
1 2 3 4 5 6 7 not critically
important important
398
Q61. Is there an important economic factor that has not been mentioned above? (If you ticked Yes to this question, go to question 62. If you ticked No, go to question 63).
1 Yes 2 No
Q62. Chinese economic condition concerning ____________________________________
(please specify) was
1 2 3 4 5 6 7 not critically
important important
Q63. The organisational decision making process regarding packaged food products for
export to China (i.e. how product related decisions are made by individuals and/or groups)
was
1 2 3 4 5 6 7 not critically
important important
Q64. Cost/benefit trade offs within the organisational decision making process regarding
packaged food product to China were
1 2 3 4 5 6 7 not critically
important important
399
Q65. The ability to resolve conflict between different goals within the organisational decision
making process regarding packaged food product to China was
1 2 3 4 5 6 7 not critically
important important
Q66. The quality of information within the organisational decision making process regarding
packaged food product to China was
1 2 3 4 5 6 7 not critically
important important
Considering the same recent customisation/standardisation decision, please rate the
importance of the following factors as possible influences in the export packaged food
product customisation/standardisation decision. (Please circle one response per question only).
Q67. The level of uncertainty within the organisational decision making process regarding
packaged food product to China was
1 2 3 4 5 6 7 not critically
important important
Q68. The ability to differentiate between alternatives within the organisational decision
making process regarding packaged food product to China was
1 2 3 4 5 6 7 not critically
important important
400
Q69. The confidence to make a decision experienced within the organisational decision
making process regarding packaged food product to China was
1 2 3 4 5 6 7 not critically
important important
Q70. The level of compromise experienced within the organisational decision making process
regarding packaged food product to China was
1 2 3 4 5 6 7 not critically
important important
Q71. The degree to which decisions are made either face to face or by computer within the
organisational decision making process regarding packaged food product to China was
1 2 3 4 5 6 7 not critically
important important
Q72. The composition of the decision making group within the organisational decision
making process regarding packaged food product to China was
1 2 3 4 5 6 7 not critically
important important
401
Q73. The time pressure within the organisational decision making process regarding
packaged food product to China was
1 2 3 4 5 6 7 not critically
important important
Q74. The availability of complete information within the organisational decision making
process regarding packaged food product to China was
1 2 3 4 5 6 7 not critically
important important
Q75. Rank the importance of the following factors as possible influences in your product
standardisation/customisation decision for exporting package foods to the People’s Republic
of China. (Please place a number from 1 to 6 in each of the boxes below to reflect your ranking preference, where 1 = the
most important factor and 6 = the least important factor.)
Consumer behaviour (e.g. buying habits) & cultural issues (e.g. dietary habits) 1
My organisation’s strategic intent 2
Country of origin effect 3
Competitive factors in China 4
China’s economic conditions & stage of economic development 5
The way in which my organisation make export product related decisions 6
402
About your organisation
Q76. How long has your organisation been exporting packaged food products? (please tick √ one response only)
1 < 2 years 3 6-10 years 5 more than 15 years
2 3-5 years 4 11-15 years
Q77. How long has your organisation been exporting packaged food products to the People’s
Republic of China? (please tick √ one response only)
1 < 2 years 3 6-10 years 5 more than 15 years
2 3-5 years 4 11-15 years
Q78. Where are your organisation’s headquarters located?
1 Continental Europe 5 Oceania (Australia, New Zealand)
2 North America 6 UK/Great Brittain (including Canada)
7 North Asia (Japan/Korea)
3 South (Latin) America
8 South East Asia (Indonesia, Singapore)
4 Africa
Q79. Does your organisation export packaged food product to the People’s Republic of China
from its national headquarter base?
1 Yes 2 No
403
Q80. If you ticked No for the previous question, please nominate the region from which your
organisation exports packaged food product to the People’s Republic of China. We export to
China from:
1 Continental Europe 5 Oceania (Australia, New Zealand)
2 North America 6 UK/Great Brittain (including Canada)
7 North Asia (Japan/Korea)
3 South (Latin) America
8 South East Asia (Indonesia, Singapore)
4 Africa
Q81. What is the gross annual sales turnover of your organisation?
1 < US$250,000 5 US$5,000,001 to $10,000,000
2 US $250,001 to $500,000 6 over US$10,000,000
3 US$500,001 to $1,000,000
4 US$1,000,001 to $5,000,000
Q82. What per centage does export revenue (not just to China) contribute to the
organisation’s gross annual sales turnover (from the question previous question)?
1 <10% 4 31%-40% 7 61%-70%
2 11%-20% 5 41%-50% 8 71%-80%
3 21%-30% 6 51%-60% 9 over 80%
404
Q83. How many staff does your organisation employ world wide?
1 1-250 employee(s)
2 251-500 employees
3 501-1000 employees
4 1001 or more employees
Q84. What is your gender?
1 Male 2 Female
Q85. What is your age?
1 18-25 years 4 46-55 years
2 26-35 years 5 56 years or older
3 36-45 years
Q86. How many years of experience have you had in making export product related decisions
(either with your current or previous employer)?
1 1-5 years 4 16-20 years
2 6-10 years 5 21 years or more
3 11-15 years
Thank you for your participation.
405
Appendix 3: Ethics Approval
Ethics Approval
19 December 2004
Dr Railton Hill
Faculty of Business and Enterprise
Swinburne University of Technology
Dear Railton
The Faculty of Business and Enterprise Ethics Sub-Committee has now approved your
amended Ethics Application 2004/045.
We wish you well with your research project.
Yours sincerely
Dr Michela Betta
Chair
Faculty of Business and Enterprise
Ethics Sub-Committee
The completed Application for Ethics Approval of a Research Protocol was considered by the
Faculty of Business and Enterprise Ethics Sub-Committee at the 13 December 2004 meeting.
406
The approval for:
Degree: PhD
RHD Candidate: Nick Grigoriou
Co-ordinating Supervisor: Railton Hill
Template Version: Aug 2004.
Sighted by:
Dr Toby Harfield, MLIS
Faculty of Business and Enterprise
Ethics Advisor and Research Facilitator
1 July 2009
TRIM: CIN/016282 #6: original application and meeting minutes