Conspicuous consumption symbolizes ostentatious and material consumption through the purchase of products and services with a higher economic value and that allows their consumers to excel socially. However, conspicuous consumption often does not represent social and environmental values, because their products are often not characterized by being made through sustainable processes. United Nations, through its sustainable development agenda, invited companies to be aware of the social and environmental problems of the world and to be able to generate strategies that can be sustainable over time and allow the growth of both the company and society in general. This study analyses the case of Starbucks as a global and sustainable brand, which also generates conspicuous consumption in emerging markets. In this way, we explain how this brand generates a social status in emerging markets, which allow their consumers to excel socially. On the other hand, we explain how Starbucks contributes positively to sustainability in these types of markets, generating greater well-being for both the environment and society in general. In this way, this brand manages to transmit messages with symbolic values of social status, as well as social and environmental awareness. This research allows us to see how Starbucks is able to generate conspicuous consumption in Colombia, which is the third largest exporter of coffee in the world but is also capable of generating sustainable processes that help Colombian coffee growers and the environment. This research used a quantitative methodology based on a structured questionnaire made for conspicuous consumers of the Starbucks brand in Colombia, whose data were processed through the statistical program PLS 3.2.7. This research details the sustainable processes carried out by this brand in this developing country and the reasons why its consumption in this emerging market is considered conspicuous. For this research, family allocentrism, ethnocentrism, and patriotism are considered antecedents of conspicuous consumption, and brand image and brand loyalty are considered their results.
Numerous studies have identified that ethnocentric consumers prefer buying products produced nationally rather than products from overseas. Nevertheless, this study has been focused on big economies, that’s why its application in developing countries is still scarce, especially if we want to know their relationship with a global and foreign brand that operates in these developing countries. On the other hand, this study has been centralized in products, and that is the reason why the studies in hedonic services are also scarce. The objective of this study is to identify the antecedents and consequences of ethnocentrism in hedonic services by applying the variable to a developing country such as Colombia. Considering the cultural and economic importance of Colombian coffee and, regarding a global brand, foreign and hedonic services like Starbucks. This allows the presentation of a theoretical model that forms the basis of an empirical study with a sample of 305 consumers of Starbucks in Bogotá. Via data analysis with Smart PLS 3.0, it was observed that although the Colombian consumer is ethnocentric, they do possess loyalty towards the cited global brand. These results provide us with implications for the management of international businesses as well as with future research pathways.
Consumer animosity is often studied in the large economies of the world, in order to explain the negative feelings generated by an individual towards another country and its products, due to various political, economic and social conflicts. This study presents three specific developments in this field. First, to demonstrate how companies in the retail sector have been able to develop innovations in their business models through their shops and virtual channels, which generate a positive positioning in the mind of the consumer, capable of minimizing animosity towards them. In this way it is shown that a consumer can have strong feelings of patriotism, animosity and ethnocentrism, and yet a positive image towards a brand or product of the country with which the conflict takes place. Second, a contribution to literature regarding the scant research on consumer animosity in developing countries, and specifically in Latin America. Third, an analysis of animosity under a current context of conflict between countries, and not of studies carried out taking situations or facts from the past. In this way, a contribution is generated that allows to understand more the behavior of the consumer and his animosity in societies with emerging economies and as the innovations in business models allow to improve both the economic profitability of a company, as its brand image.
Subject area Entrepreneurship and family business. Study level/applicability The case is suitable for BA and MBA levels and for courses focusing on family businesses, entrepreneurship, or small and medium-sized enterprises. Case overview The Gomez family is the owner of Colchones Eldorado, a Colombian mattress company, in business for more than 50 years. Its founder and CEO Gumercindo Gomez, 75 years old, had no succession plan but he wanted to ensure the future of his business. Given the urgency of this situation and the complexity of the family structure, Martha Gomez, General Manager, hired a consultant to design the succession plan. To prepare this plan, the consultant must take into account: the preservation of stock ownership within the family, the company's sustainability under the new CEO family member, and the assurance of the family harmony. Expected learning outcomes These include: understanding the characteristics of a family business in the Latin American context; recognizing the stages of the family ownership; and identifying personal characteristics and roles of family members in order to design the basis of the succession plan. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
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