Participation of portuguese manufacturing industry in global value chains

Portugal’s manufacturing sector has a significant importance both in national income and employment. As has been pointed out by several researchers, the traditional methods of analysis fail to grasp all the dimensions of economic competitiveness. This dissertation is then, at its core, an analysis of Portugal’s manufacturing industry in terms of the latter’s value added to production and impact to employment under the framework of global value chains. The current dissertation seeks to study in which way the Portuguese manufacturing industry, and its respective sectors, has a direct and indirect impact on the creation of value added and employment and how this impact can be measured. For development of this work the input-output approach for calculation of multipliers and the new framework proposed by Timmer et al. (2013) for calculation of GVC income and GVC jobs indicators were used, elaborated on the basis of the WIOD project dataset. Moreover, to illustrate the application of the provided methodology the Portuguese textile industry was used as an example. It was found that the changes in final demand of such sectors as Pulp, Paper, Printing and Publishing; Machinery, Nec and Textiles and Textile Products would have a larger impact on generated value added than other manufacturing sectors. At the same time, employment created by the changes in final demand would be more impacted by such sectors as Food, Beverages and Tobacco; Wood and Products of Wood and Cork and Textiles and Textile Products. In this regard, the number of low-skilled workers in Portugal seems to be more effected by changes in final demand, than those occupied by higher -skilled individuals. Moreover, it was found that the distribution of GVC income and GVC jobs for the Portuguese manufacturing industry shares a similar outlook. However, upon closer inspection of GVC labour distribution by skill levels there seems to exist a general progression in which low-skilled jobs requirements are met by local resources, while the need for higher skilled jobs require a greater “off-shoring” of work The results obtained through calculations of presented multipliers provide a powerful tool for policy makers in strategic planning of development of national economy. Using the provided methodology and obtained results, a government and supranational organizations could define which industry would have the greatest impact for an additional unit of output generated through the economy, and thus define the sectors for further investments.

The effects of celebrity endorsement on the consumers’ perceptions towards global brands

Brands are those lifestyles which consumers chose to buy in order to gain the value offered by the company, in order to be part of the community created through the brand equity elements and validated in the purchase of the products. Companies have understood how important it is to build a strong brand and many of them spend millions on aligning the brand with the design and style of the products, projecting the face and values of the company into the advertising campaigns. One of the most popular methods is through endorsement, placing a renounced celebrity and leveraging on the positive feedback of those customers that also follow the activities of the star whose face is on the cover of the marcom campaign. Celebrities have been used for a very long time to promote brands, sell products and services. Research has shown that those spokesmen of a brand who are more attractive can improve the statistics of recall and appeal more interest to the promotion campaign, as well as influence more on customer’s intention of buying the product (Kahle and Homer, 1985). The main purpose of this research is to investigate how celebrity endorsements influence the brand equity dimensions (brand loyalty, brand awareness, perceived quality and brand associations) as well as stimulate consumers’ word-of-mouth through brand identification, growth in interest and the advertising memorability. The hypotheses were tested with the aid of Structural Equation Modelling (SEM) in the PLS (Partial Least Squares) software. The survey is comprised of a target group of 589 respondents, from three countries – Brazil, Moldova and Portugal. Results evidence that the Attitude towards the Celebrity influences different Brand Equity dimensions and affects brand identification, growth in advertisement interest and advertising memorability, generating positive word of mouth (or negative, depending on the type of advertisement and reputation). Based on these findings we suggest further investigation in this area with the possibility to gain more data about the different fields of marcom and the different types of CE which are more appropriate for the given type of business.