An econometric analysis of international tourism demand in Hong Kong : a cointegration and error correction approach

The purpose of this study is to develop econometric models to better understand the economic factors affecting inbound tourist flows from each of six origin countries that contribute to Hong Kong’s international tourism demand. To this end, we test alternative cointegration and error correction approaches to examine the economic determinants of tourist flows to Hong Kong, and to produce accurate econometric forecasts of inbound tourism demand. Our empirical findings show that permanent income is the most significant determinant of tourism demand in all models. The variables of own price, weighted substitute prices, trade volume, the share price index (as an indicator of changes in wealth in origin countries), and a dummy variable representing the Beijing incident (1989) are also found to be important determinants for some origin countries. The average long-run income and own price elasticity was measured at 2.66 and – 1.02, respectively. It was hypothesised that permanent income is a better explanatory variable of long-haul tourism demand than current income. A novel approach (grid search process) has been used to empirically derive the weights to be attached to the lagged income variable for estimating permanent income. The results indicate that permanent income, estimated with empirically determined relatively small weighting factors, was capable of producing better results than the current income variable in explaining long-haul tourism demand. This finding suggests that the use of current income in previous empirical tourism demand studies may have produced inaccurate results. The share price index, as a measure of wealth, was also found to be significant in two models. Studies of tourism demand rarely include wealth as an explanatory forecasting long-haul tourism demand. However, finding a satisfactory proxy for wealth common to different countries is problematic. This study indicates with the ECM (Error Correction Models) based on the Engle-Granger (1987) approach produce more accurate forecasts than ECM based on Pesaran and Shin (1998) and Johansen (1988, 1991, 1995) approaches for all of the long-haul markets and Japan. Overall, ECM produce better forecasts than the OLS, ARIMA and NAÏVE models, indicating the superiority of the application of a cointegration approach for tourism demand forecasting. The results show that permanent income is the most important explanatory variable for tourism demand from all countries but there are substantial variations between countries with the long-run elasticity ranging between 1.1 for the U.S. and 5.3 for U.K. Price is the next most important variable with the long-run elasticities ranging between -0.8 for Japan and -1.3 for Germany and short-run elasticities ranging between – 0.14 for Germany and -0.7 for Taiwan. The fastest growing market is Mainland China. The findings have implications for policies and strategies on investment, marketing promotion and pricing.

Antecedents and consequences of new product development and international new product rollout timeliness:an examination of mediating and moderating influences

The study examined the relationships between antecedents, timeliness in NPD and INPR, and consequences. A conceptual framework was tested using 232 new products from South Korean firms. The hypothesized relationships among the constructs in the model were evaluated by multiple regression and hierarchal regression analyses using SPSS 12 as well as by structural equation modelling (SEM) using SIMPLIS LISREL. In addition, confirmatory factor analysis (CFA) was carried out using SIMPLIS LISREL. In the direct relationships, cross-functional linkages and marketing synergy exhibited a statistically significant effect on NPD timeliness. The results also supported the influences of the HQ-subsidiary/agent relationship and NPD timeliness on INPR timeliness as well as INPR timeliness on performance. In the mediating effect tests, marketing proficiency significantly accounts for the relationships between cross-functional linkages and NPD timeliness, between marketing synergy and NPD timeliness, and between the HQ-subsidiary/agent relationship and INPR timeliness. Technical proficiency also mediates the effect of the HQ-subsidiary/agent relationship on INPR timeliness. The influence of NPD timeliness on new product performance in target markets is attributed to INPR timeliness. As for the results of the external environmentals and standardization influences, competitive intensity moderates the relationship between NPD timeliness and new product performance. Technology change also moderates the relationship between cross-functional linkages and NPD timeliness and between timeliness in NPD and INPR and performance. Standardization has a moderating role on the relationship between NPD timeliness and INPR timeliness. This study presents the answers to research questions which concern what factors are predictors of criterion variables, how antecedents influence timeliness in NPD and INPR and when the direct relationships in the INPR process are strengthened.

Marketing resources of actively involved exporters

The purpose of this dissertation is to examine the impact of the market orientation and market based resources of actively involved exporters and their distributors on export venture performance. Previous literature in marketing channels has examined the effect of the market orientation of suppliers and their distributors on supplier-distributor relationships, mainly in a domestic context, as well as the impact of the quality of their relationship on business performance in domestic and international contexts. Little or no research focuses on the interplay between the relevant marketing resources, such as market orientation, proactive market orientation, selling, pricing reputation, and market innovation, of an export venture and their distributor, and consequently on export venture performance. This dissertation is mainly a quantitative study using a mail survey among Greek exporting firms in various industries. The final sample comprised 190 exporting ventures. The survey was enhanced through open interviews with export venture managers and their respective distributors and was pre-tested with a small-scale dyadic survey. Survey data were analysed using structural equation modelling. The main research objective was to assess the impact of marketing support resources, namely market orientation and proactive market orientation, and market-based resources of an export venture and its distributor on export performance. In addition, the relationship of marketing support resources of the export venture and those of the distributor was examined. Some of the relationships examined are a migration of traditional domestic theory (Hooley et al. 2005), to an exporting context, testing whether there are differences in the relationships in a different context. This study contributes to the resource-based view, marketing, and export business literature, as findings indicate that high levels of export venture proactive market orientation lead to distributors with high levels of market orientation. In line with findings of domestic context research, the proactive market orientation of the venture renders its market orientation statistically not significant.

Moving towards premium e-grocery management:multi-products sourcing capacity logistic and geodemographic marketing in emerging markets

CD

Changing consumer markets and marketing in China

China's enormous population and rapidly increasing consumer spending are attractive to many multinational corporations (MNCs) to supply products to the Chinese markets. Yet MNCs continue to struggle to find ways to serve this diverse and culturally unique market. This article reviews and integrates existing knowledge on Chinese consumers' responses to marketing efforts, and specifies and empirically tests several propositions. Chinese consumers are found to have higher brand consciousness, brand loyalty, lower price sensitivity for visible goods, and to be less responsive to sales promotions compared to Western consumers. We also find indications that the influence of face considerations (i.e., prestige earned in a social network) cause Chinese consumers to have higher emphasis on prestige in their channel choices and advertisement evaluations than Western consumers. By outlining these implications, our study can help MNCs better understand how Chinese consumers behave and that understanding can help MNCs adapt their marketing efforts.

Paving the way for "distinguished marketing"

Over the last six decades, marketing concepts, tools, and knowledge have gone through tremendous developments. A general trend toward formalization has affected orientation and decision making and has clarified the relationship between marketing efforts and performance measures. This evolution has received strong support from concurrent revolutions in data collection and research techniques. This article outlines the formalization of the marketing discipline and proposes steps that will pave the way for future developments in marketing, toward what I call “distinguished marketing”.

Creating lift versus building the base:current trends in marketing dynamics

Markets are dynamic by nature, and marketing efforts can be directed to stimulate, reduce, or to utilize these dynamics. The field of marketing dynamics aims at modeling the effects of marketing actions and policies on short-term performance (“lift”) and on long-term performance (“base”). One of the core questions within this field is: “How do marketing efforts affect outcome metrics such as revenues, profits, or shareholder value over time?” Developments in statistical modeling and new data sources allow marketing scientists to provide increasingly comprehensive answers to this question. We present an outlook on developments in modeling marketing dynamics and specify research directions.

Does competitive entry structurally change key marketing metrics?

To what extent does competitive entry create a structural change in key marketing metrics? New players may just be a temporal nuisance to incumbents, but could also fundamentally change the latter's performance evolution, or induce them to permanently alter their spending levels and/or pricing decisions. Similarly, the addition of a new marketing channel could permanently shift shopping preferences, or could just create a short-lived migration from existing channels. The steady-state impact of a given entry or channel addition on various marketing metrics is intrinsically an empirical issue for which we need an appropriate testing procedure. In this study, we introduce a testing sequence that allows for the endogenous determination of potential change (break) locations, thereby accounting for lead and/or lagged effects of the introduction of interest. By not restricting the number of potential breaks to one (as is commonly done in the marketing literature), we quantify the impact of the new entrant(s) while controlling for other events that may have taken place in the market. We illustrate the methodology in the context of the Dutch television advertising market, which was characterized by the entry of several late movers. We find that the steady-state growth of private incumbents' revenues was slowed by the quasi-simultaneous entry of three new players. Contrary to industry observers' expectations, such a slowdown was not experienced in the related markets of print and radio advertising.

Manoeuvring towards research decline:the RAE and the decline of Britain's international research standing

Purpose: This research paper aims to examine the global trends in publishing in the leading marketing journals between 1964 and 2008, focusing on how public policy intervention in the assessment and funding of academic research has influenced Britain's relative productivity in the world's leading marketing journals. Design/methodology/approach: The method was an audit of contributions to the leading journals based on the authors' affiliation, country of origin and country in which they obtained their doctoral training. Findings: The results show that the proportion of leading marketing publications by authors affiliated to British universities have held steady at about 2 per cent, while the productivity of several other countries has accelerated past Britain. However, to retain that share, Britain has increasingly depended upon importing people whose PhD is not British. This contrasts with some other European countries that are now more productive than Britain, but mainly recruit locals with local PhDs. The pattern of decline in the UK is related to the impact of Britain's research assessment exercise and the continuation of relatively weak social science research training. Research limitations/implications: The analysis is limited by only looking at one academic discipline and only the top few academic journals in the field. Practical implications: The findings have implications at several levels. At a national policy level it questions the value of the research assessment exercises that appear to have presided over a decline in research productivity. For institutions, it questions the value in investing in developing local talent when success has come to those who buy talent internationally. Perhaps, the major implication arises from Britain's academic productivity declining while neighbouring countries have grown in international excellence. Originality/value: At a time when the continuation of expensive university research assessments is being questioned the research findings add value to the current debate in showing how that very process has accompanied academic decline. © Emerald Group Publishing Limited.

An empirical study of international private label branding in the food sector in Hungary

Private label branding strategies differ to that of the manufacturer. The study aims to identify optimal private label branding strategies for (a) utilitarian products and (b) hedonistic products, considering the special factors reflected in consumer behavior related to private labels in Hungary. The issue of House of Brands and Branded House strategies are discussed and evaluated in the light of retail business models. Focus group interviews and factor analysis of the survey found differences in branding strategies preferred by consumers for the two product categories. The study also outlines a strong trend in possible private label development based on consumer’s changing attitude in favor of national products.

A hatalmi átalakulás globális megatrendje és a nemzetközi marketing

A nemzetközi marketing művelése a világgazdasági változások következtében gyors növekedésben van, és ebből következően jelentősége az elméletben, a kutatásban és az oktatásban is egyre nő. A tanulmány a nemzetközi kereskedelem jelenlegi és várható adatainak felhasználásával bizonyítja ezt a trendet. A nemzetközi kereskedelem, gyorsabban nő, mint a GDP előállítása, ehhez társul még az a tény, hogy egyre bővülnek az árumozgással nem járó piacralépési módok, amelyek szintén a nemzetközi marketing gyakorlatát teszik egyre fontosabbá. A nemzetközi marketing kulturális oldala kiemelt jelentőségre tesz majd szert. Ennek bizonyítására a tanulmány a hatalmi átalakulás globális megatrendjét elemzi. A gazdasági hatalom gyors ütemben vándorol a világgazdaságot eddig meghatározó régiókból keletre, elsősorban Kínába és Indiába. A magasabb gazdasági növekedés következtében ezen ország lakosságának egyre nagyobb hányada kerül a középosztályba és jelent egyre nagyobb piacokat az ottani és a nyugati vállalatok számára. Ezen növekvő piacok megdolgozása kulturális érzékenységet, a nemzetközi marketing egyre kifinomultabb eszközeinek alkalmazását követeli.