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Cross-National "Laws" and Differences in Market Response

Author

Listed:
  • John U. Farley

    (The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104)

  • Donald R. Lehmann

    (Columbia Business School, New York, New York 10027)

Abstract

International differences in general, and cultural differences in particular, exert profound influence on what people buy. In modeling market response, highly visible international differences in purchase behavior seem to lead to an assumption by management scientists that there are large parallel international differences in market response to such things as price and advertising. In an interpretive review of market response models, we do find international differences in response parameters, but we also find that parameter differences due to cross-national factors tend to be smaller than differences related to technical characteristics of the model or to product/market specifics. We suggest two new intermediate categories of generalizability between the extremes of "everything is the same" and "everything is different." We also argue that one promising approach to international generalization is through appropriate statistical adjustment of parameters from existing models.

Suggested Citation

  • John U. Farley & Donald R. Lehmann, 1994. "Cross-National "Laws" and Differences in Market Response," Management Science, INFORMS, vol. 40(1), pages 111-122, January.
    • Handle: RePEc:inm:ormnsc:v:40:y:1994:i:1:p:111-122
    DOI: 10.1287/mnsc.40.1.111
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    Citations

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    Cited by:

    1. Bstieler, Ludwig & Hemmert, Martin, 2008. "Developing trust in vertical product development partnerships: A comparison of South Korea and Austria," Journal of World Business, Elsevier, vol. 43(1), pages 35-46, January.
    2. Jan-Benedict E. M. Steenkamp & Inge Geyskens, 2014. "Manufacturer and Retailer Strategies to Impact Store Brand Share: Global Integration, Local Adaptation, and Worldwide Learning," Marketing Science, INFORMS, vol. 33(1), pages 6-26, January.
    3. Omar Vila & Sundar Bharadwaj & S. Bahadir, 2015. "Exploration- and Exploitation-Oriented Marketing Strategies and Sales Growth in Emerging Markets," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(4), pages 277-289, December.
    4. Birgelen, M. van & Ruyter, K. de & Jong, de A. & Wetzels, M., 2001. "Customer evaluations of after-sales service contact modes: An empirical analysis of national culture�s consequences," Working Papers 01.17, Eindhoven Center for Innovation Studies.
    5. Smith, Rachel & Deitz, George & Royne, Marla B. & Hansen, John D. & Grünhagen, Marko & Witte, Carl, 2013. "Cross-cultural examination of online shopping behavior: A comparison of Norway, Germany, and the United States," Journal of Business Research, Elsevier, vol. 66(3), pages 328-335.
    6. Shweta Pandey & Deepak Chawla, 2016. "Impact of changing consumer lifestyles and website quality on online satisfaction and loyalty - an emerging market framework," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 12(1), pages 50-71.
    7. Abhishek & Sahay, Arvind, 2013. "Role of culture in celebrity endorsement: Brand endorsement by celebrities in Indian context," IIMA Working Papers WP2013-07-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Regmi, Sabina & Kim, Ayoung & Mills, Devon P. & Green, John, 2023. "Meta-analysis of Consumer's willingness to pay for broadband," 2023 Annual Meeting, July 23-25, Washington D.C. 335602, Agricultural and Applied Economics Association.
    9. . Abhishek & Arvind Sahay, 2013. "Role of Culture in Celebrity Endorsement: Brand Endorsement by Celebrities in Indian Context-A Review, Synthesis and Research Propositions," Working Papers id:5432, eSocialSciences.
    10. John W. Boudreau, 2004. "50th Anniversary Article: Organizational Behavior, Strategy, Performance, and Design in Management Science," Management Science, INFORMS, vol. 50(11), pages 1463-1476, November.
    11. Bahadir, S. Cem & Bharadwaj, Sundar & Parzen, Michael, 2009. "A meta-analysis of the determinants of organic sales growth," International Journal of Research in Marketing, Elsevier, vol. 26(4), pages 263-275.
    12. Verlegh, Peeter W. J. & Steenkamp, Jan-Benedict E. M., 1999. "A review and meta-analysis of country-of-origin research," Journal of Economic Psychology, Elsevier, vol. 20(5), pages 521-546, October.
    13. Ernst R. Berndt & Patricia M. Danzon & Gregory B. Kruse, 2007. "Dynamic competition in pharmaceuticals: cross-national evidence from new drug diffusion," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(4-5), pages 231-250.
    14. Peters, Kay & Albers, Sönke & Kumar, V., 2008. "Is there more to international Diffusion than Culture? An investigation on the Role of Marketing and Industry Variables," EconStor Preprints 27678, ZBW - Leibniz Information Centre for Economics.
    15. García-Meca, Emma & Sánchez-Ballesta, Juan Pedro, 2006. "Influences on financial analyst forecast errors: A meta-analysis," International Business Review, Elsevier, vol. 15(1), pages 29-52, February.
    16. Zhu, Ying & Freeman, Susan & Cavusgil, S. Tamer, 2018. "Service quality delivery in a cross-national context," International Business Review, Elsevier, vol. 27(5), pages 1022-1032.

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