Brand-switching and tobacco taxation in Vietnam

BackgroundThe government of Vietnam is embarking on a radical tobacco excise tax reform, switching from the current pure ad valorem scheme to a mixed system by adding a specific component. There have been concerns raised by state-owned tobacco companies against this initiative that switching to a mixed scheme may shift consumption away from cheaper, domestic brands to more expensive, foreign brands (produced locally by joint ventures between multinational tobacco companies and domestic firms) and to illicit cigarettes, thus impairing the domestic industry, rather than reducing cigarette consumption effectively. Unfortunately, although this concern has been one of the biggest obstacles to the tobacco tax reform in the country, no study thus far has attempted to address it due mostly to the unavailability of relevant micro-market data with detailed information on brand choice.ObjectivesThis research attempts to study cigarette brand substitution patterns and quantify the potential effect of the proposed tax structure change on cigarette brand choice to inform tax policy discussions in Vietnam.MethodsA discrete choice experiment is conducted to collect data on smokers’ stated brand choice when cigarette prices change exogenously. Combined with data on their current cigarette consumption, random parameter logit models were estimated and then used to calculate brand-level price semielasticities as well as numerically simulate the impact of tax reforms on smoking.ResultsSmokers are more likely to substitute a low-priced domestic brand with another domestic brand than either with a foreign brand or with an illicit brand, both of which are more expensive. Furthermore, the opt-out is one of the closest substitutes to low-priced brands and also the most sensitive to a change in their prices, implying that smokers of low-priced brands are more likely to buy none of the studied brands when cigarette prices increase. This provides strong suggestive evidence that they appear more likely to stop smoking when faced with higher cigarette prices. Imposing a specific tax tends to reduce the market share for both low-priced and high-priced licit brands, although the estimated market share reduction is larger for the former. In response to specific tax increases, a large share of current smokers do not intend to switch to illegal cigarette brands, but rather choose none of the experimented brands, suggesting their intention to quit. Finally, the magnitude of substitution to illicit brands tends to be negatively related to change in their prices as a result of the specific excise tax hike.ConclusionContrary to the raised concern, smokers are more likely to substitute a domestic brand with another domestic brand than with a foreign brand. Moreover, the threat of illicit trade should not be exaggerated, and there are actions that the government of Vietnam can take to mitigate the threat effectively.

The UI Design of the Picture Logo of the Terminal Human-Computer Interaction Interface

With the advancement of the information society and the development of China’s economy, enterprises to digital, information, intelligent production requirements continue to improve, the application of industrial software gradually popularized in the production of enterprises. However, in the Internet era, the research on man-machine interface design is in full rage, but the man-machine interface design of domestic industrial software has not been paid attention to. The level of industrial software interface is seriously backward, disjointed with The Times, and completely contrary to, high technology, high efficiency and other industrial execution concepts. On the one hand, this phenomenon will affect the working efficiency of the staff in the operation of the software and the user experience, reduce manufacturing enterprises related to attract talent, on the other hand can also lead to the software under the same technical level, domestic industry software products to attract customers’ ability is insufficient, in the competition with foreign brand products in bad situation.

Consumer Response to Patriotic Ads for Domestic Versus Foreign Brands in Contexts of International Sporting Events: The Role of National Identity Activation and Group Emotion

An individual possesses multiple social identities, and different identities are temporarily salient at different points in time. A particular social identity, such as national identity (NI), may have little or no impact on consumer response unless that identity is activated. This study explores how NI activated through different contexts of international sporting events and associated group-based emotions (happiness vs. anger) would exert differential influence on consumers’ responses to patriotic ads. Further, this study proposes that this effect would vary depending on the corporate origin of the brand, which refers to whether the advertised brand is domestic or foreign. Findings show that (1) while both happiness and anger improve consumer responses to patriotic ads, such an effect is significantly stronger in the happiness-eliciting context, and (2) while NI activation in the happiness-eliciting context has an effect on increasing consumers’ responses to patriotic ads regardless of the corporate origin of the brands, the effect of activating NI is greater for a domestic (vs. foreign) brand in the anger-eliciting context. This study contributes to extending previous findings by applying two important variables—contexts of activating NI that elicit specific group-based emotions and a corporate origin of the brand—that influence consumer response to a patriotic ad.

Buy domestic or foreign brands? The moderating roles of decision focus and product quality

PurposeThis article sought to explore the effect of brand origin on consumer preference and examine the moderating effects of decision focus (buying for self vs buying for others) and product quality.Design/methodology/approachThe authors conducted two studies to test our hypotheses. In Study 1, the authors explored consumers' general preferences for domestic and foreign brands. Based on the evidence, Study 2 further explored the moderating roles of decision focus and product quality.FindingsIn general, consumers in developing countries prefer foreign brands. The effect can be moderated by the decision focus that this preference will be more obvious when consumers buy for others than when they buy for themselves. Product quality can also moderate the role of decision focus; in other words, consumers' preference for foreign brand when buying for others will be stronger when the product quality is low than when the product quality is high.Practical implicationsForeign brands have a natural appeal to local consumers in developing countries. Moreover, foreign brands can also invoke consumers' awareness of buying for others (such as giving gifts) to boost sales. Domestic brands are at a disadvantage comparing to foreign brands, but they can increase their attractiveness by invoking consumers' awareness of rewarding themselves. In addition, domestic brands need to improve product quality to fundamentally improve their competitiveness.Originality/valueThe research contributed to literature by combining decision focus and product quality in studying consumer preference for domestic and foreign brands from the perspective of construal level theory, which provides valuable insights in the field of international marketing and consumer behavior.

Niat Beli Sepatu Merek Lokal oleh Generasi Muda: Pengaruh Consumer Ethnocentrism, Perceived Quality, Perceived Price, dan Perceived Brand Image

Indonesia is one of the top 4 world footwear producers. On the other hand, there are many well-known foreign brand shoes in Indonesia. Ventela is one of a famous shoes local brand in Indonesia. The local consumers have preferences concerning the shoe producer country of origin. Local people prefer to buy local brand shoes if they have an ethnocentric taste and good perceptions about the local brand. Therefore, this study aims to determine the effect of consumer ethnocentrism, perceived quality, perceived price, and perceived brand image toward a willingness to buy Ventela shoes. The survey was conducted using an online questionnaire and collected data from 205 young generations. Multiple linear regression in SPSS software was used to analyze the collected data. This study shows that consumer ethnocentrism, perceived quality, and perceived price significantly affected willingness to buy. Meanwhile, the perceived brand image had no significant effect on willingness to buy. Further research is suggested to compare several local fashion brands with different positioning. The results of this study can be used as input for Ventela shoes in facing business competition and business development by paying attention to the variables used.

Determinants of choosing a foreign brand in emerging economy: lessons and implication for the local entrepreneurs

Purpose It is evident that the local small and medium enterprises of Bangladesh suffered in the competition because of the strong presence of foreign brands in the market. The purpose of this study is to figure out the factors influencing consumers to purchase a foreign brand predominantly among young consumers. Design/methodology/approach It is a quantitative study considering 257 young demographics as respondents. They are drawn randomly. Confirmatory factor analysis, regression analysis and a path model of structural equation model using AMOS graphics software are used in this study to analyze the data. Findings This study finds two out of three identified variables are influencing the foreign product purchase for the young Bangladeshi consumers. Brand value and product features of the given foreign product are the most dominant factors behind this adoption. However, a significant relationship between product quality and brand choice is not evident in this study. Research limitations/implications It will give a clue to the small or medium startup of the country that normally target the young customer but face challenges to understand their mind and sometimes lagging because of the strong presence of the international brands. Originality/value A comprehensive review of the literature suggests that not so many studies took place that determines the respective factors behind the purchase of foreign brands particularly among young demographics of a lower middle income developing nation.

Construction and Validation of Indian Consumer Ethnocentrism Scale: The Ice-Scale

Globalization has unlocked and exposed domestic and overseas marketers to superior market opportunities. Additionally, it presents consumers worldwide with a vast number of local and foreign brand choices. Indian consumers, also now, have a broader choice of merchandise at their disposal as economic liberalization and privatization along with globalization have reduced the barriers to trade. In such a setting, the concept of consumer ethnocentrism can deliver deep insights about the preference of consumers toward domestic merchandise. The study aims to develop the Indian Consumer Ethnocentrism Scale (ICE-Scale) and validate the same. Data are collected using a structured questionnaire from urban and rural regions. The study constructed the Indian Consumer Ethnocentrism Scale (ICE-Scale), explored its dimensionality on a sample of 450 respondents, and validated the scale with another sample of 450 using exploratory factor analysis. It was established that the ICE-Scale encompasses two dimensions, namely, protective ethnocentrism and patriotic ethnocentrism. Additionally, the validity testing for the proposed scale and both the constructs were conducted through confirmatory factor analysis. The study advances the existing pool of information in the field of international economics, consumer psychology and global marketing. It also assists domestic producers to get an improved understanding of consumers’ ethnocentric tendencies which in turn would assist them in choosing superior marketing strategies and boosting their sales. The study will not only deliver certain social and policymaking insights to the domestic firms and government but also to the foreign firms functioning or planning to operate in India.

Comparative Study on the Characteristics of Sporting Goods Consumption Behavior of Chinese College Students

College students are the main group of sports consumption in the future. Therefore, it is very important to understand the motivation of college students' sporting goods consumption and evaluate the importance and satisfaction of college students' purchase behavior of sporting goods. Currently, there are mainly three evaluation methods based on satisfaction, such as SERVQUAL model (service quality) proposed by Parasuraman A in 1985, the SERVPERF model (service performance) proposed by Cronin and Taylor in 1992, and the IPA (Important Performance Analysis) proposed by Martilla and James (1977). The IPA method used matrix coordinates to identify the important factors considered by consumers and the degree of consumer satisfaction with these factors, forming four quadrants of superiority, maintenance, improvement, and disadvantaged areas, thereby judging the elements that should be concentrated and prioritized for improvement. IPA analysis is widely used in many fields such as in tourism (Duke & Persia, 1996; Deng, 2007; Hudson et al., 2004; Oh, 2001; Wade & Eagles, 2003), in education (Alberty & Mihalik, 1989; Ortinau et al., 1989), in sports services (Kwon & Chung, 2018; Antonio Rial et al., 2008; Erjuan & Bingshu, 2016; Meng, 2018). Therefore, this article used the IPA analysis method to study 386 Chinese college students who participated in the consumption of sporting goods. The data were analyzed by frequency analysis, exploratory factor analysis, reliability analysis and Importance-Performance Analysis using SPSS. The results of this study were as follows. First, the motivation of college students' sports goods consumption is divided into three dimensions such as conspicuousness, practicality, and individuality. Among them, the conspicuous factor is related to student age, grade, monthly allowance, and brand awareness. Second, the pre-consumption importance and post-consumption satisfaction are divided into six dimensions such as environment, function, price, after-sales, design, and brand. Among the important dimensions considered before consumption, female believe that the consumption environment and product functions are more important than male. Compared with non-sports students, sports majors think brand is more important than normal brand. In terms of domestic and foreign brand recognition, LiNing and Nike are considered the most wanted brands. In the post-consumption satisfaction dimension, students are more satisfied with the environment, function, and brand. Third, pre-consumption importance and post-consumption satisfaction are statistically significant difference (p = 0.000). The IPA analysis showed that marketers should continue to maintain their product design advantages and focus on improving the convenience of after-sales service and consumer environmental sanitation conditions to better meet the needs of different college students.

Keeping It Real or Bridging the Gap? Brand Positioning of U.S. Sport Teams in Germany and China

Professional team sport brands are increasingly striving to conquer markets abroad. However, little is known about promising brand positioning strategies in international markets. In the context of U.S. team sport brands’ efforts to attract satellite fans in two different target markets (i.e., Germany and China), this research uses three experimental online studies to test the relative effects of two foreign brand positioning strategies (purely foreign vs. locally integrated foreign) on satellite fans’ attitudes toward the strategy and brand interaction intentions. Findings suggest that fans’ responses depend on the target market. While German fans respond more favorably to purely foreign brand positioning, Chinese fans prefer local adaptations of the U.S. brands to Chinese customs. These diverse effects can be explained by different underlying mechanisms: purely foreign brand positioning increases perceptions of authenticity among German fans, while locally integrated foreign brand positioning increases perceived customer orientation and pride among Chinese fans.

The impact of the metacognitive and behavioral factors of cultural intelligence on foreign brand acceptance

The aim of the paper is to show the influence of cultural intelligence in the acceptance of foreign brands and how these insights can help multinational companies in shaping and presenting their brands so that they are better accepted in different cultural environments. Cultural intelligence consists of four factors, two of which have been analyzed for the purposes of this paper - the metacognitive and behavioral factors. The metacognitive cultural dimensions are useful for the individual uses to obtain certain knowledge about a culture. Behavioral cultural intelligence represents the ability to adapt an individual to verbal and non-verbal behaviors according to the situation in culturally diverse environments. The results of the empirical research proved a statistically significant positive impact of the behavioral element of cultural intelligence on the acceptance of foreign brands by consumers, while the influence of the metacognitive factor on the acceptance of foreign brands is not statistically significant, which is different from most of the empirical studies conducted so far.