Purpose -The purpose of this paper is to propose and test a longitudinal country-people image effect model involving a significant negative international incident between countries; study how such a model changes over time; and study the extent of image recovery in terms of how the offending country, people, and its products are perceived. Design/methodology/approach -Australian consumers were surveyed before, during, and a decade after the French nuclear testing in the Pacific in 1995. Model testing was conducted using confirmatory factor analysis (CFA) and structural equation modeling (SEM) techniques. Findings -The model was strongly supported in all three-time points. During the crisis, negative feelings toward France/French rose and consumers' response to French products dropped. Country-people competency has risen over country-people character in explaining product evaluations. In the final period, the Australian views on country-people character and product response had more than recovered. The country-people character beliefs now play a significant role in influencing product evaluations after the crisis than before, while the impacts of country-people competency on product evaluation and response have diminished dramatically. Product evaluation is fairly stable over time. Originality/value -Studies to date have focused on country image at a point in time in relatively stable environmental conditions. The proposed model is helpful in understanding the processes of country-product image effects through the study of all attitude components and through differentiation of beliefs about country and people production-related and non-production related characteristics. The cross-temporal validation of the model indicates its usefulness for general applicability in country image effects research.
The integration of FrenchandBritish subsidiariesintoU.S.-basedmultinationals is examined. A theorylinking the use of control andcoordination mechanismsto the need for predictability, flexibility, andthe cost of achieving themis investigatedbyrelatingorganizational structure, technology, foreigncommitment, financial performance, and nationality tothe use of coordination andcontrol. * For any large complex organization the problem of ensuring that its constituent parts act in accordance with overall policy is a central and continuing concern. The specialization of subunits which allows the organization to undertake complicated tasks requires an equally developed system of integration to bind them into an operational whole [Lawrence and Lorsch 1967, pp. 8-13; Blau and Schoenherr 1971, p. 8]. Inaddition to the differentiation stemming fromfunctional specialization, the organization is subject to divisive tendencies in the formof departmental interests, competing functional goals, and differentialdemands from the environment that lead subunits to pursue their own strategies [Karpik1978; Pfeffer 1978, pp. 6-7]. To overcome these centrifugal forces the leaders of the organization must maintaina system of integration that minimizes overlap and conflict among its varied subunits while allowing them the necessary flexibility to adapt to their particular environments. When the organization in question is a multinational corporation (MNC), the centrifugal forces tend to be more acute, increasing the problems of integration [Stopford and Wells 1972, pp. 18-19]. The foreign subsidiary is subject to the laws of the country in which it is located (the host country) as well as certain statutes of the nation in which the parent is domiciled (the home country). The foreignsubsidiaries must be differentiated enough to confront cultures, markets, and customs that contrast markedly with those of the home country, but this flexibility has to be accommodated within a structure that will provide the maximum contribution to corporate performance. Given these difficulties, the integration system of the multinational corporation has grown correspondingly complex [Wilkins 1974, p. 419]. The issue of integration of multinational corporations is of interest not only to managers withinthe firmbut to policy makers in home and host countries as well [United Nations 1978, pp. 19-28]. The degree to which control is retained by the center of the MNC, the supranational hierarchical levels above the foreign subsidiary, conditions the impact the host country may have on its foreign investors. The voluminous literatureon the multinational corporation contains a wide range of assumptions as to how closely foreign subsidiaries are controlled, but there is little empirical work to support any of these assertions [Goehle 1980, p. 8]. Inthis paper the results of an empiricalstudy of the integration processes in multinational corporations are reported. A number of factors that have been associated with the degree of integration are examined, and the relations...
Using 136 cases of strategic decision-making described by a number of variables drawn from the literature, three distinct types of decision-making processes are found. These are termed sporadic, fluid and constricted processes. They are parsimonious characterizations of decision-making processes which, given the variety of the 30 organizations from which the cases are drawn, should be generalizable to a wide range of contexts.
PurposeThe purpose of this paper is to examine the direct and interaction effects of brand name (BN) of wine and country‐of‐origin (COO) on perceptions of the personality image of the wine, expected price, and willingness to engage with the wine.Design/methodology/approachA field experiment in which label information for a fictitious wine was presented to wine consumers with a questionnaire on wine perceptions and response measures. The label information was manipulated across subjects using four BNs and three COOs.FindingsThe study confirms BN and COO effects on perceived wine personality and responses to the wine. Findings also indicate the effects of BN and COO as well as a BN‐COO interaction effect on price expectations.Research limitations/implicationsFindings link different personality dimensions to the two different cues, suggesting greater independence of the cues than originally expected. However, some BN‐COO incongruity effects are found particularly regarding price perceptions. A small set of wine BNs and COOs are tested and sample size/treatments are limited. With larger sample sizes, some weak effects might prove more significant. For more substantive support of these findings, the study could be repeated in different locations with different BN and COO examples.Practical implicationsThe results suggest consumers are open to some fluidity in brand name use across wine‐producing countries with appropriate pricing strategies. They also highlight the importance of understanding consumer perceptions of wine personality in assessing consumer responses and price expectations.Originality/valueThe research addresses BN and COO direct and interaction effects on many aspects of wine evaluation and the central role of personality dimensions in wine assessments. The paper provides evidence of value in a rapidly evolving marketplace for wine and insights into the ongoing strategic changes in the wine market. It also contributes to theory and research on information cue use and cue incongruity effects.
PurposeThe blogosphere is an active arena for the communication of topic‐area claims by marketer and non‐marketer sources. Determinants of influence in the blogosphere have not been well documented. The purpose of this paper is to investigate trust in bloggers, in a framework involving characteristics of bloggers and blogs and blog reading outcomes.Design/methodology/approachBlog‐reader perceptions of bloggers and blogs are derived and tested on a sample of blog readers for their effects on trust formation. Tests of mediation examine the role of perceived personal outcomes of blog reading in trust‐formation processes.FindingsTrust formation is predicted by engagement knowledge of the blogger, unique reading experiences, and belief that the blog improved the marketspace. Blogger authoritative knowledge negatively impacted trust intentions. Positive experiences from blog reading mediate relationships between blog and blogger characteristics and intentions to trust.Research limitations/implicationsBlog readers examined in this initial investigation may not be totally representative of the general population of blog readers. Replications with other populations are needed.Practical implicationsThe paper's findings suggest knowledge is an essential characteristic of a trustworthy blogger, but knowledge unrelated to everyday information needs holds little perceived value for readers. Firms operating blogs may wish to de‐emphasize their topic‐area authoritative knowledge and project a voice of topic‐area engagement.Originality/valueThe paper identifies salient trust‐related blogger and blog characteristics and provides an indication of a domain‐specific trust‐development process that is applicable to marketer and non‐marketer information sources.
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