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1 – 7 of 7Kerry Chipp, Marcus Carter and Manoj Chiba
Many markets are conceptualized as a stratified low- and middle-income “pyramid” of consumers. Emerging markets are sites of rapid consumer mobility, and thus the middle class…
Abstract
Purpose
Many markets are conceptualized as a stratified low- and middle-income “pyramid” of consumers. Emerging markets are sites of rapid consumer mobility, and thus the middle class there is connected to, and often supports, low-income relatives and employees. Therefore, this paper aims to establish that African income groups are not insular, but rather interrelated and have strong social ties reinforced with longstanding communal values, such as ubuntu.
Design/methodology/approach
Using a between-subjects experimental vignette design, the propensity of the middle class to cover low-income individuals on an insurance product was assessed.
Findings
Income strata are interrelated and can inform value propositions, which is demonstrated in this paper with insurance, where the middle class are willing to include others, depending on their social proximity, on their insurance cover.
Research limitations/implications
The context for this study was personal home insurance; hence, the generalisability of the results is circumscribed. Other more tangible forms of cover, such as medical, funeral or educational insurance, may engender far stronger effects.
Practical implications
Marketers tend to view low- and middle-income consumers as independent. A view of their interrelation will change the design of many products and services, such as a service catered to the poor but targeted at their support networks. An example of such a service is insurance, which is traditionally hard to sell to the poor. A less atomistic approach to income strata could have implications for vicarious consumption, as well as a reconsideration of the disposable income of both groups.
Originality/value
The pyramid is an interconnected network of social and economic ties.
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Kerry Chipp, Albert Wocke, Carola Strandberg and Manoj Chiba
Literature on modes of entry has focussed on firm-level strategies. The predominant theories used are institutional theory and the resource-based view. Using an alternate approach…
Abstract
Purpose
Literature on modes of entry has focussed on firm-level strategies. The predominant theories used are institutional theory and the resource-based view. Using an alternate approach – network theory – this paper aims to demonstrate an additional mode of entry: multiple firms entering together as an extension of an existing loose network, known as a bridging network. The extension of an external network across borders is an appropriate mode of entry in emerging markets, with no pre-existing networks or existing networks within a market that are weak, immature or missing.
Design/methodology/approach
A conceptual review, which develops four propositions, demonstrating that market entry with bridging networks may be the preferred mode of entry in the presence of institutional voids. Alternative modes may not be viable because of costs and risks associated with overcoming such voids.
Findings
Existing theory and case examples support the contention that market conditions facilitate firms to enter as networks rather than as singular entities. These conditions are found in markets with institutional voids and explain the dominant form of business groups in many countries and the operation of loose strategic alliances in emerging markets. Network entry facilitates market access speed may allow for local ties to remain undeveloped or be a first step in building in-country networks.
Originality/value
This paper heeds to the call for a network ecosystem approach to market entry, arguing that firms may enter as a collective in subsistence and emerging markets, which would explain the preponderance of business groups and loose alliances found.
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Kerry Chipp and Jabu Maphalala
An understanding of the competitive landscape and consumer dynamics of an emerging market, especially how a small local company learns to take on and deal with global players…
Abstract
Learning outcomes
An understanding of the competitive landscape and consumer dynamics of an emerging market, especially how a small local company learns to take on and deal with global players. Similarly, embeddedness within a market leads to increasing the competitiveness of local brands as they understand local consumers better than international ones. Local brands are also more likely to use home-based and innovative marketing strategies.
Case overview/synopsis
Bliss Chemicals, through their flagship brand, MAQ washing powder, captured market share from global multinationals during a price war. Nevertheless, their competitive landscape and their customer base are dynamic; the company cannot afford to rest on its laurels for long. The case provides insight into the marketing activities of both large and medium enterprises in an emerging market. It also demonstrates the type of marketing activation that engenders strong consumers’ response.
Complexity academic level
The case can be used in undergraduate, MBA and executive education courses on marketing, consumer behaviour, bottom of the pyramid or international marketing courses. It could also be used in business strategy courses on market entry, dealing with stronger competitors, price wars and doing business in Africa.
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.
Subject code
CSS 8: Marketing
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Kerry Chipp, E. Patricia Williams and Adam Lindgreen
By combining consumer culture theory and service dominant logic, this study proposes that value might be understood as value-in-acquisition, such that value outcomes result from…
Abstract
Purpose
By combining consumer culture theory and service dominant logic, this study proposes that value might be understood as value-in-acquisition, such that value outcomes result from the acquisition process in which broader social forces shape the exchange process.
Design/methodology/approach
This study addresses low-income consumers, for whom societal arrangements strongly determine service interactions. Qualitative interviews reveal service value processes and outcomes for low-income consumers during acquisition processes.
Findings
For low-income consumers, inclusion, status, resource access and emotional relief represent key value outcomes. Important value processes shape those value outcomes, reflecting broader societal arrangements at macro, meso and micro levels. Marketing constitutes an institutional arrangement that establishes an empowered “consumer” role. Value processes are hindered if consumers sense that their agency in this role is diminished, because marketing interactions give precedence to other social roles.
Research limitations/implications
Marketing should be studied as an institutional arrangement that shapes value creation processes during acquisition. Micro-level value processes have important implications for service quality and service value. Value outcomes thus might be designed in the acquisition process, not just for the offering.
Practical implications
The acquisition process for any good or service should be designed with its own value proposition, separate to the core product or service. Careful design of value processes during acquisition could mitigate conflict between social roles and those of consumption.
Originality/value
There is value in the acquisition process, independent of the value embedded in the goods and services.
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Kerry Fiona Chipp and Devarpan Chakravorty
This study aims to explore if, with increasing consumer empowerment, consumers are actively pulling content through a multitude of platforms rather than relying on media owners to…
Abstract
Purpose
This study aims to explore if, with increasing consumer empowerment, consumers are actively pulling content through a multitude of platforms rather than relying on media owners to dictate their product choices. How do media owners and content producers move toward a more reciprocal and interactive business strategy to deal with the change?
Design/methodology/approach
The study was qualitative and exploratory in nature and utilized in-depth and semi-structured interviews of media consumers and experts.
Findings
Consumer behavior has changed due to increased product control, in terms of type and occasion, across all income levels. The value of curatorship has increased and social media has fundamentally changed consumption patterns. Using the Berthon et al. model of response functions, we found that, content producers often suffer from inertia and operate with an Isolate strategy. The second most common approach is that of Follow or customer orientation. There is limited engagement with the innovation orientations of Shape and Interact. It is best for the industry to move toward an Interact model, accepting that consumers sometimes wish to create and at other times wish content to be effortlessly provided to them.
Research limitations/implications
This study adopted a qualitative approach of industry experts and consumers within a single context. The further implications would be to develop the Interact strategy in more detail, especially toward the end of how to get media providers to change their current orientations.
Practical implications
Business models of product producers in the new business environment seek to be more consumer-centric. This must not be done at the expense of an innovation orientation.
Originality/value
There has been a lot of discussion on the need to change business models in the wake of changed consumer behavior. The current paper provides guidance on how to respond to the new media world.
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Kerry Chipp, Raeesah Chohan, Caitlin Ferreira and Astrid Ringas
– The purpose of this paper is to reflect on the impact of editorial policy towards being both inclusive and international on the quantitative metrics of the journal.
Abstract
Purpose
The purpose of this paper is to reflect on the impact of editorial policy towards being both inclusive and international on the quantitative metrics of the journal.
Design/methodology/approach
A bibliometric analysis was performed.
Findings
The chief areas of impact, along with trends in methodologies and international contribution and collaboration are discussed.
Originality/value
A review of the British Food Journal over the past ten years.
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