Table of Contents Working Title 3 Introduction 3 Purpose of the Study 4 Aims and Objectives 4 Research Questions 5 Literature Review 6 Country of Origin and Country Image 6 Stereotyping on Country of Origin 6 Consumer Ethnocentrism on Country of Origin 7 Flexible Marketing Strategy: 8 Turquality 9 Research Methodology 9 Research Philosophy: 9 Descriptive Research 10 Research Methods 10 Respondents of the Study 11 Research Instrument 11 Sources of Data: 11 Primary Research: 11 Participants 12 Sample 12 Procedure 12 Secondary Source 12 Data Collection and Data Analysis 12 Questionnaire: 13 Timelines 14 References 14 Working Title How Country of Origin Affects Consumer Buying Intention? A Case of Turkish Lighting Fixture Retailers. Introduction The world now has taken a complete shift to globalization. The rise of the globalization has come about because of the acceptance of the free trade and the many regional associations which are promoting trade across the national boundaries. The shift has provided new growth opportunities for companies who can now make profits beyond imagination. One great example which has benefited from globalization is Coca Cola. The foreign markets can provide a great opportunity for the companies than the local markets. There are different levels of internationalization of the businesses. The internationalization of the business creates new complexities for the businesses and hence they
Moreover, the changing world order from communist, central-planned economies to open-free market economies has allowed looser government restriction to allow multinationals like Cadbury operate more freely. For instance, the Ghanaian government has liberalized the cocoa industry to allow Cadbury to operate more efficiently and effectively in the industry.
Conditions have changed. Global trade has rapidly increased in both volume and value, reaching nowadays more than $4 trillion in 1997 (Daniels J.D., Radebaugh, 1998, pg. 529). Competition is fierce from all corners of the world. Failure at the global level can backfire and may consume existing brands and business relationships. At the same time, global opportunities have emerged that offer possibilities for growth, profit, and an improvement in worldwide standards of living.
companies need to have a plan to create demand for their products. Consumer ethnocentrism can be moderated by aggressive marketing tactics. Western companies are trying to get into emerging markets and Russia, a former communist country, is a target for these companies. Consumer ethnocentrism in Russia has been a predominant barrier to success of foreign products in Russia and in Russia some distinguish between domestic products that are described as in-group products and foreign products that are described as out-group products (Puzakova, Kwak, & Andras, 2010). Research shows that the Russians view foreign products of superior quality, but remain ethnocentric in their consumer behavior (Puzakova, Kwak, & Andras, 2010). Using marketing communications the negative attitudes that are present with buying foreign products can be alleviated. The advertising efforts can be used to explore more moderate behavioral consequences of consumer ethnocentrism with initial contact being met with anxiety, but more subsequent positive contacts leading to comfort (Puzakova, Kwak, & Andras, 2010). The U.S. firm attempting to tap the large Russian consumer market needs to have a strategic marketing
Coca-Cola and PepsiCo compete at length with each other among an extensive list of other brands. A key concern for both of these companies in 2011 was their capability to market, produce, and distribute across national boundaries of a single nation. This concern has decreased as both companies were able to push though their limitations and were able to establish manufacturing plants in countries across the globe. (Coca Cola Company, 2011)
Moreover, Yip, Loewe, & Yoshino (1988) caution that before managers embark on globalizing all or part of their business they first need to determine if the business can or should be globalized. Factors within the companies industry such as economic, environmental, competitive, and market forces must be analyzed. For example, market forces determine if customers will be receptive to a company’s product; economic forces determine the profitability of the product; managers must be aware of the implications associated with environmental requirements such as taxes,
Conglomerate Coca-Cola is a company that prides itself on being the world’s largest beverage company, and one who embodies the cross borders concept of international business by being recognised by no less than 94% of the world’s population is an undoubted success story. However, the company is not immune to the various political, economic, social and technological factors (PEST) that can affect their international operations and, in turn, the future development of the firm.
At the same time, such core resource as brand, company prefers to keep standard. Realising those facts, that the company conducts operations in developing markets where the environment is unstable, complex and unpredictable, Coca Cola understands the necessity of detailed studying and analysis of an external environment with the purpose to define factors which in a greater degree can affect operations of the company. In UK, people should note such external environmental factor as economy, legislation and culture, which have influenced on international business marketing strategy of Coca Cola. It is important for company to understand costumers, their habits, traditions and conductions of living to develop good relationships with them and offer correct and necessary product which will satisfy customers’ needs and expectations. Today multinational companies are realising they must develop long-term, mutually beneficial relationships throughout the company and beyond. In short, multinational companies are developing orientations that focus on building collaborative relationships to promote long-term alliances, and they are seeking continuous, mutually beneficial exchanges instead of one-time sales or event. Based on this relationship perspective marketing process and innovative marketing strategy can be viewed from the institutional network approach. In this way the Coca Cola’ innovative marketing strategy is integrating with the network perspective, which facilities the adaptations of the international business marketing strategy to the needs of each specific
Coca- Cola Company is US multinational beverage corporation, with 129 years of history. Coca Cola was recognized as 4th world’s most valuable brands and most valuable brand in beverage industry in 2014 according to Forbes magazine. Coca-Cola’s international market strategies are the classic example of successful Global Marketing Mix, which uses both standardization-adaptation strategic combinations to achieve bigger market shares all over the world. However in a big game there are always big players, and Coca Cola’s most fierce rivalry is Pepsi. Both of them control around 60% of global nonalcoholic beverages industry as well as they are present in more that 200 countries around the world. Coca Cola as long-term leader in the beverage market owns huge portfolio of 500 brands. So
Globalization is something that has been occurring since early in the history of entrepreneurs, and something that will not be going away anytime soon. Businesses can enjoy many benefits from globalization that include an increased audience to market their products to, and quicker sharing of innovative ideas. The advantages of globalization are just as much a disadvantage. The increase in competition between domestic and foreign business has lead to a decrease in employment and an increase in outsourcing. Businesses need
University of Cincinnati To date, considerable research effort has been made to determine whether country of origin affects consumers ' product evaluations. Previous studies in industrial (for example White, 1977; White and Cundiff, 1978) and consumer buying (see for example, Andersen and Cunningham, 1972; Lillis and Narayana, 1974; Gaedeke, 1973; Han and Terpstra, 1988) have shown the country of origin to be a salient cue in buyers ' evaluations of
What is globalization? Globalization is the integration of systems worldwide (Bateman & Snell, 2008). For an organization to maintain competitive in the evolution of the business environment, the organization must constantly look out for the opportunities to grow. As a major factor in most business functions, globalization has allowed businessmen all over to explore a much wider group of customers eliminating the dependency of local and limited clientele. There is also a much broader environment for international networking that allows business to gain insight on worldwide interest that could assist in the expansion and development of an up and coming or already established company (Recklies, 2001). When a business ultimately decides to enter into a globalize mind set there are a few things to consider. They must first be certain that this is a risk that they are willing to take simply because it is not guaranteed that all business that take their products and services worldwide will be successful in doing so.
Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become
Or as Good and Huddleston, Sharma et al (1995 cited Paswan, Shama 2004; p.144-155) said education is one of the most important factors. Higher educated consumers has increased, the preferable on being acknowledge has been risen. As well as the differences in tolerant make them become more complex and more favorable on making opinion against the imported goods. Likewise, Gühan-Canli and Maheswaran 2000b; Hong and Wyer 1989, 1990; Maheswaran 1994 (1989 cited Mahewaran, 2006; p.2) said “favorable or unfavorable evaluations of a country associated with product leads to a corresponding favorable or unfavorable evaluations of the product.”
Up to now the literature review has given an insight into the concept of globalization, and the understanding of several academics in the light of how this phenomenon developed over the years. It is then essential to cover what the economic benefits of globalization are, and how these may impact a sector or company. Most of the literature study’s that have been written on the economic benefits of globalization have been after 2006. The reason is because the studies used the globalization index which was created by Dreher (2006) then further developed by Dreher (2008) again. Many of the empirical studies used this index as indicator as a base to form their findings.
The concept of globalization has become a prevalent phenomenon in the past two decades because of the changes it has brought and the adoption of its strategies by multinational corporations or companies. The economic changes of globalization include the strengthening of economic inter-dependence, internationalization of production, and enhanced mobility of transnational corporations. On the other hand, trade liberalization, privatization, and deregulation are the ideological changes emanating from this concept.