Effects of US‐based franchising in the developing world: a middle‐eastern consumer perspective

Abstract

This paper investigates the impact of US-based franchising in the Middle Eastern context of Egypt. In a review of the franchise literature, micro-and macro-level effects are identified and categorized across social, economic, cultural, political, and marketplace dimensions. A qualitative analysis using focus groups of Middle Eastern consumers was conducted. Clear evidence of ''consumer agency'' as a transformative force in the globalization process is revealed. In addition to confirming consumer agency findings from previous research, this study also indicates a sequential progression of product adoption over time along Eckhardt and Mahi's (2004) consumer agency categories. Managerial and theoretical implications are discussed.

Cultural Convergence in Emerging Markets: The Case of McDonald's in China and India

“…Consumers' great demand toward such democratized services has now led many entrepreneurs in Russia to start their own franchise systems that even try to adapt parts of their organizational identities based on foreign franchise systems. Thus, global brands need to acknowledge the influence of organizational structure, culture, and values when entering into emerging markets (e.g., Grünhagen, Witte, and Pryor ; Johnson and Tellis ; Lau ). Also, small businesses and entrepreneurial enterprises in the local market should respond to changes of market demands that are influenced by global organizations.…”

Latin American franchise internationalization: The impact of institutional environment

“…In the current decade, due to growth in emerging markets, a second wave of internationalization of North American chains in these markets has been present (Aliouche & Schlentrich, ; Baena, ; Dant & Grünhagen, ;). The inverse path has also occurred; that is, franchise chains from emerging countries have sought to expand into international markets (Alon, ; Castrogiovanni & Vozikis, ; Dant, Perrigot, & Cliquet, ; Grünhagen, Dant, & Zhu, ; Grünhagen, Witte, & Pryor, ; Wang, Zhu, & Terry, ; Welsh, Alon, & Falbe, ). As a result of this late internationalization and, in particular, country of origin, the study of these chains is seen as worthy research (Dant & Grünhagen, ).…”

Emerging Consumer Perspectives on American Franchise Offerings: Variety Seeking Behavior in China*

“…Conceivably, other elements that could have also mediated or moderated the discovered effects include constructs like level of involvement with the eating‐out ritual, their satisfaction with the eating experience(s) at McDonald's, and the extent to which McDonald's fare is seen as culturally compatible with Chinese culture. In particular, we would be remiss in diligence if we did not acknowledge the additional insights that can be contributed by mounting empirical investigations utilizing emergent frameworks like the Consumer Agency model (cf., Eckhardt and Mahi 2004; Grünhagen, Witte, and Pryor 2010), that adopt an evolutionary perspective to the consumer assimilation of Western goods and services in emerging economies. We commend these tasks to future scholars.…”

“…Thus, the development and maintenance of the organization–customer relationship is a dynamic process, necessitating continual learning and adaptation of the value offering in order for effective transformation (coproduction) by the customer to occur. Hence, consumers play an important role in the interpretation, assimilation, and acceptance of foreign product offerings in emerging markets as well (Eckhardt and Mahi 2004; Grünhagen, Witte, and Pryor 2010). However, as with developed markets, the BEM consumers cannot be viewed as one homogenous cultural group as individuals' behavior is influenced by numerous internal and external factors.…”

“…2000). Paired with recent support for the “consumer agency” explanations of product and service adoption in global markets (Eckhardt and Mahi 2004; Grünhagen, Witte, and Pryor 2010), this study investigates the impact of Western fast‐food concepts upon Chinese consumers' variety seeking behavior and the latter's influence on consumer sentiments of ethnocentrism, traditionalism, democratization and the desire to find unique products. The findings are based on consumer survey data recently collected in Beijing which investigated, among other issues, the attitudes and behaviors of consumers in their patronage of McDonald's restaurants, one of the two largest Western fast‐food franchise systems currently operating in China.…”