Marketing Renaissance_steve Burgess

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Marketing renaissance: How research in emerging markets advances

marketing science and practice

Steven Michael Burgess a , Jan-Benedict E.M. Steenkamp b,⁎

a Business Administration in Marketing, Graduate School of Business, University of Cape Town, South Africa b University of North Carolina at Chapel Hill, Campus Box 3490, McColl Building, Chapel Hill, NC 27599-3490, USA

Abstract

In the last decades, our discipline has made tremendous progress in addressing scientific and managerial marketing problems. However, our

knowledge of marketing phenomena derives almost exclusively from research conducted in high income, industrialized countries. We believe it is

paramount for the future of marketing science and practice that we conduct more research in so-called emerging markets (EMs). EMs present

significant departures from the assumptions of theories developed in the Western world that challenge our conventional wisdom. In this article, we

take the view that marketing science is built on the generalizability of our findings across studies, across cultures, across national boundaries. EMs

are natural laboratories in which theories and assumptions about their underlying mechanisms can be tested, generalizations derived and boundary

conditions identified. We propose a framework delineating four stages through which EM research contributes to the growth of marketing science.

The four stages are 1) theory development, 2) acquisition of meaningful data, 3) analysis of the data to test one's theories, and 4) learning.

Through the process of deductive logic, general theories are operationalized in specific settings while, through the process of inductive logic,

specific findings are used to arrive at more general conclusions. We discuss the unique issues and contributions of EM research for each of the four

stages of this framework. Subsequently, we elaborate on the implications of EM research for development and implementation of marketing

strategies. Our discussion reveals that some research has started to address these issues, but we have only begun to scratch the surface. In this

spirit, we present an agenda for future research in EMs.© 2006 Elsevier B.V. All rights reserved.

Keywords: Emerging markets; Emerging economies; Developing countries

1. Introduction

The globalization of the marketplace is one of the most

important challenges facing companies today. Globalization is

due to many factors including worldwide investment, produc-

tion and marketing, falling national boundaries, regional

unification (e.g., ASEAN, EU, NAFTA), advances in telecom-munication technologies and the internet, increases in world

travel, and the growth of global media (Yip, 2003). Firms cannot

ignore this trend toward globalization. Even when they decide to

opt out of the global marketplace, they will still face increased

competition in their home markets from (local and foreign)

companies reaping benefits of global strategies. Given the

importance of globalization for marketing, it is not surprising

that various marketing scholars and editors have urged us to

study marketing issues on an international basis, rather than

staying “in relative security of our own backyards” (Bolton,

2003; Dekimpe & Lehmann, 2004; Farley, 1997; Gatignon,

2000; Monroe, 1993; Steenkamp, 1998, 2005; Winer, 1998).

In response to these exhortations, marketing academics have

begun to devote more attention to international marketing. This

research has yielded a valuable stock of theoretical andempirical findings, of which an important portion has been

published in the International Journal of Research in Marketing

(see Alden, Steenkamp, & Batra, 2006; Bijmolt, Paas, &

Vermunt, 2004; Cano, Carrilat, & Jaramillo, 2004; Deshpandé

& Farley, 2004; Desiraju, Nair, & Chintagunta 2004; Farley,

Hayes, & Kopalle, 2004; Nunn & Sarvary, 2004; Ozsomer &

Simonin, 2004; Steenkamp & ter Hofstede, 2002; Stremersch &

Tellis, 2004; Van Everdingen, Aghina, & Fok, 2005; Verlegh,

Steenkamp, & Meulenberg, 2005 for some recent examples). It

is fair to say that international marketing has become an

important domain within marketing science.

Intern. J. of Research in Marketing 23 (2006) 337 – 356

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⁎ Corresponding author. Tel.: +1 919 962 9579; fax: +1 919 962 7186.

E-mail address: [email protected] (J.-B.E.M. Steenkamp).

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However, the existing body of research suffers from an im-

portant limitation, viz., most of it has been conducted in high

income, industrialized countries (HICs). Although it is under-

standable that researchers in our maturingdiscipline wouldinitially

focus on the world's most advanced economies, we believe it is

paramount for the future of marketing science and practice that we

conduct more research in so-called emerging markets (EMs).Although EMs vary in human development and national

income, we will focus on common characteristics that shape

their institutional context and the ultimate success of marketing

programs there. Institutions are “the most enduring features of

social life…giving ‘solidity’ [to social systems] across time and

space” (Giddens, 1984, p. 24). EM institutional contexts present

significant socioeconomic, demographic, cultural, and regula-

tive departures from the assumptions of theories developed in

the Western world and challenge our conventional understanding

of constructs and their relations (Wright, Filatotchev, Hoskisson,

& Peng,2005). Conceptually, this renders it less than obvious that

our established theories and empirical generalizations are applicable to these markets (Steenkamp, 2005). Practically, it im-

plies an urgent need for more research because success in EMs is

crucial to the future of many of our companies. As we will argue

in this article, we need to conduct more research in EMs, both to

further advance marketing as an academic discipline and maintain

its managerial relevance.

The remainder of this article is organized as follows. First,

we briefly discuss what constitutes emerging markets. Then, we

will propose a framework of marketing science as a process.

Next, we will discuss the unique issues and contribution of EM

research for each of the four stages of this framework. Sub-

sequently, we elaborate on the implications of EM research for

marketing practice. We will consider the content and imple-mentation of marketing strategies. Finally, we will draw con-

clusions and propose an agenda for future research in EMs. To

keep the discussion manageable, we focus on systematic differ-

ences between EMs and HICs and how this contributes to

marketing science and practice. It is outside the scope of this

article to discuss differences between EMs.

2. What are emerging markets?

There are a plethora of country classification schemes and

the use of the term “emerging markets” has been inconsistent in

the marketing literature and practice (e.g., Batra, 1999; Peng,

2000). Financial institutions such as ING and Morgan Stanley

distinguish between emerging markets and developed countries,using three criteria. To be categorized as a developed country, 1)

the country's income per capita has to exceed $10,000, 2) the

country has to follow a stable and responsible macroeconomic

policy, and 3) the market capitalization of publicly traded

companies and the volume of shares traded on the stock ex-

change have to “sufficient.” If one or more of these criteria is not

met, the country is considered an emerging market. Thus,

countries like Israel and South Korea would pass the income

criterion but nevertheless belong to emerging markets. The

political situation is not sufficiently stable to have confidence

that the macroeconomic development is irreversible. This ap-

proach makes no adjustment for purchasing power parity or currency fluctuations, as e.g., the World Bank (2006) does.

Moreover, an agreed operationalization of the second and third

conditions eludes us at present and firms would have difficulty

accessing and analyzing such information, even if it was.

The World Trade Organization (WTO) classifies its members

as either “developed” or “developing”, on the basis of self-

selection. There are no WTO definitions of “developed” or

“developing” countries. Two-thirds of the WTO's 149 member

countries are designated as developing countries, of which 50 are

designated as “least-developed” countries. Emerging markets are

for all practical purposes synonymous with developing countries.

Fig. 1 shows arguably the two most influential country

classifications, proposed by the United Nations and the WorldBank, respectively. The United Nations distinguish between four

categories of countries, based on their score on the human

development index. The human development index is a quan-

titative measure of the average achievements of a country on three

basic dimensions of human development, namely life expectancy

at birth, adult literacy rate and educational attainment, and gross

Fig. 1. Alternative country classifications, their number, and GDP per capita range.

338 S.M. Burgess, J.-B.E.M. Steenkamp / Intern. J. of Research in Marketing 23 (2006) 337 – 356



domestic product (GDP) per capita at purchasing power parity

(PPP). Countries low or medium on human development would

usually be considered as emerging countries, while high human

development countries might be considered as developed

countries. However, there are exceptions. For example, countries

like Panama and Mexico rate high on human development, but are

still considered emerging markets.1

The World Bank (2006) has developed a classification of

countries, based on gross national income per capita (GNI),

adjusted for currency fluctuations. This classification shows

considerable overlap with the classification scheme of the

United Nations, but is easier to use and because it focuses onavailable monetary resources in a country, it is more directly

relevant for marketing.

Our definition of emerging markets was influenced by the

desire to classify countries in a way that would allow others to

easily obtain data and classify countries of interest. We define

EMs broadly as countries in which PPP-adjusted GDP per

capita, converted to U.S. dollar and smoothed for three-year

currency fluctuations, is equal to or less than the highest ranked

country classified as “middle income” by the World Bank,

currently Equatorial Guinea ($19,780). Because the World

Bank classifies countries based on GNI, which is adjusted for

currency fluctuations but not purchasing power parity, Fig. 1shows some overlap in high income and middle income coun-

tries. We use GDP per capita, as opposed to gross national

income, because GDP excludes remittances from other coun-

tries. Remittances from abroad can be up to 30–40% of GNP

(Mahajan & Banga, 2006). Thus, GDP is a better measure of

domestic growth and economic performance. We use GDP after

adjustment for purchasing power parity and currency fluctua-

tions as these adjustments communicate development levels

better across countries for the purposes of most marketers.

Our group of 152 EMs includes all countries classified as

“middle income” or “low-income” by the World Bank (2006),

as “middle human development,” “low human development,” or

“developing” by the United Nations (2005), and as “developing

countries” by the WTO (2005). Geographically, EMs comprise

the “transition economies” of the former Soviet Union, the

Eastern Bloc, and Asia and the so-called “developing countries”

of Africa, Asia, the Middle East, and Latin America.

3. The process of scientific marketing research applied to

emerging markets

Philosophers of science have long argued that science is a

process. The marketing science process involves development

of theoretical explanations of marketing phenomena, empirical

testing of these explanations, and extension and/or revisions of

generalized explanations (Bass & Wind, 1995). This process

consists of four stages (see Fig. 2; Bagozzi, 1980).

The process usually starts with theory development . At this

stage, it is important to carefully delineate one's theoretical

constructs and the mechanisms underlying the hypotheses. It

makes sense to draw on the large body of existing theoretical

and empirical research as the point of departure, as this is how

science progresses. However, previous research must be as-sessed critically for relevance to the institutional context in

which research is being conducted, taking special care to

explicate hidden assumptions, such as levels of human devel-

opment and culture. After all, the institutional context is

arguably the most important aspect on which EMs differ from

HICs. For example, in the marketing literature, advertising

plays a large role in the theory on the diffusion of innovations

(Gatignon & Robertson, 1985), but media penetration is much

lower in many EMs (Arnould, 1989).

The second stage concerns acquisition of meaningful data.

Through deductive logic – going from general assertions to

relatively more specific instances – the marketing scholar

moves from a theory to a specific operational research design.

1

See http://hdr.undp.org/ for more information on the measurement andclassification procedure used by the United Nations.

Fig. 2. Basic processes in scientific marketing research in emerging markets.

339S.M. Burgess, J.-B.E.M. Steenkamp / Intern. J. of Research in Marketing 23 (2006) 337 – 356

http://hdr.undp.org/

http://hdr.undp.org/



The researcher needs to specify (and justify) the choice of the EM

country(ies) in which data are collected, define the unit of

observation, choose appropriate data collection methods, develop

valid measurement instruments, and collect data. By imposing our

etic view on EMs, shaped by extensive data collection practice in

HICs, we run the danger of collecting wonderful, but invalid data.

The third stage concerns data analysis. Cross-national com- parability of data is clearly a key issue. The extreme within-

country heterogeneity which characterizes most EMs also has

ramifications for the statistical methods used to analyze one's

data. This stage will show that EMs not only provide a natural

laboratory for developing new theories and data collection

methods, but also a challenging setting, calling for cutting-edge

new analytical techniques.

Results are subsequently interpreted, leading to the fourth

stage in which learning takes place. The findings are critically

evaluated and new insights are generated. Through the process

of inductive logic, marketing science uses these specific

findings to arrive at more general conclusions concerning thevalidity of previous empirical generalizations and existence of

boundary conditions, if any. This leads to extension or revision

of generalized explanations, which subsequently can be tested

with new data. This last stage also holds the potential for, what

Brown and Hagel (2005) call, “innovation blowback.” Im-

proved theory, data collection, and data analysis techniques,

will also strengthen marketing science in HICs.

4. Theory development

4.1. Identification of constructs

4.1.1. Using existing constructs

Much EM research uses theoretically-grounded constructs

originally developed in HICs. Often this makes perfect sense as

there is no reason to assume that these constructs are not

applicable to EM settings. There is quite some evidence con-

cerning the universality of many consumer-related constructs.

Based on the universal human needs of individuals as biological

organisms, requisites of coordinated social conduct, and

requirements for the smooth functioning and survival of groups,

Schwartz (1992) has identified ten motivationally distinct types

of values that reflect a continuum of related motivations. This

continuum gives rise to a circular structure capturing the notion

that the pursuit of different value types can be compatible or inconflict, depending on how close the value types are. Nothing in

his theory suggests that this value structure is context specific.

On the contrary, being derived from universal human needs, it

should be equally applicable to EMs. Research in EMs has

indeed supported his claim (Burgess & Steenkamp, 1999;

Schwartz et al., 2001). Research in EMs also has supported the

validity of other constructs such as the Big Five personality

factors (McCrae & Terracciano, 2005) as well as consumer

constructs such as ethnocentrism (Batra, Ramaswamy, Alden,

Steenkamp, & Ramachandar, 2000).

In a programmatic series of studies dealing with organiza-

tional constructs, Deshpandé, Farley, and colleagues studied

organizational culture, organizational climate, market orienta-

tion, innovativeness, and firm performance, in HICs as well as

EMs (see Deshpandé & Farley, 2004 for an excellent overview).

These authors found that their organizational constructs are

relevant across a wide range of countries, attesting to the uni-

versality of the constructs. For example, everywhere, organiza-

tions turn out to be a mixture of four organizational cultures,

viz., externally-oriented competitive market and entrepreneurialad-hoc cultures, and internally-oriented bureaucratic hierarchy

and consensual clan cultures.

Theoretical equivalence is an issue when constructs are less

firmly grounded in theory. A point in case are lifestyles: “A life-

style is broadly defined as a mode of living that is identified by

how people spend their time (activities), what they consider

important in their environment (interests), and what they think

of themselves and the world around them (opinions)” (Assael,

1992, p. 294). Constructs so loosely defined and bereft of

rigorous theoretical grounding are unlikely to provide a basis

for further theoretical advances or meaningful cross-national

insights, due to the radically different contexts of HICs andEMs. When constructs are only informally defined, it becomes

very difficult to develop hypotheses to be tested in EMs based

on previous research, as we may be using apples to explain

oranges.

4.1.2. Identifying new constructs

EMs offer a fertile ground to develop new constructs that has

been overlooked in earlier research. For example, in Africa it is

important to understand the construct of ubuntu, a pervasive

spirit of caring and community, harmony and hospitality, humi-

lity, respect and responsiveness (Mangaliso, 2001). It stresses

group embeddedness, kinship ties, linking reward systems to

group performance, and consensus-based decision making. Inthe consumer context, ubuntu has relevance in the aspects of life

that interest marketers, such as family decision making and

reliance on word-of-mouth communication. In the organiza-

tional context, notwithstanding that senior managers typically

make final buying decisions when national cultures are high on

hierarchy and embeddedness, ubuntu suggests opportunities for

new research into intraorganizational networks of information

sharing and consensus building within buying centers. In the

sales management context, aligning organizational marketing

practices to ubuntu provides significant competitive advantages

related to intrinsic motivation, loyalty, and long-run effective-

ness. Including ubuntu in African intra- and inter-organizationalmodels will increase their validity and explanatory power.

Similarly, it is difficult, if not impossible, to understand

organizational relations in China without guanxi, a concept

“which carries expectations that, sometime, favors will be re-

turned” (Ambler, Styles, & Xiucun, 1999). An interesting

question is whether these and other constructs are purely indi-

genous constructs or can also be fruitfully employed in other

EMs and perhaps even in HICs. After all, ubuntu values are also

relevant in HICs (Schwartz, 1992) and inter-organizational

relations in Western markets also have certain guanxi

characteristics (Kumar, Scheer, & Steenkamp, 1995; Scheer,

Kumar, & Steenkamp, 2003). Moreover, substantial EM

populations have migrated to HIC markets, as birth rates have




declined there in recent decades. Interestingly, even Hofstede's

(2001) seminal cultural analysis was enriched by inclusion of

EM countries. Analyzing data from (mostly) HICs, he dis-

tinguished four cultural dimensions: power distance, individu-

alism/collectivism, uncertainty avoidance, and masculinity/

femininity. Subsequent work in Eastern Asia identified a fifth

dimension, long-term orientation (or Confucian dynamism),which turned out to be relevant for HICs as well.

4.2. Hypotheses development

Institutional context (viz., socioeconomic, cultural, legal) has

not been explicitly acknowledged when developing many of our

theories. Thus, we implicitly assume that our theories generalize

across nations. Generalizability may be strong or weak. Strong

cross-national generalizability means that the magnitude of the

relation between two constructs is the same across countries.

Weak cross-national generalizability implies that the direction

(positive or negative) of the relation between two constructs isthe same across countries, although the magnitude of the effect

may differ across countries.

There is some evidence that strong empirical generalizations

may not be unrealistic in HIC contexts (Bijmolt, Van Heerde, &

Pieters, 2005; Deshpandé & Farley, 2004; Gielens & Steen-

kamp, 2004; Steenkamp, Nijs, Hanssens, & Dekimpe, 2005). It

is questionable though whether strong cross-national general-

izability extends from findings obtained in HICs to EMs. For

instance, several studies have attested to the generalizability of

Bass' diffusion theory to EMs (Dekimpe, Parker, & Sarvary,

1998; Dekimpe, Parker, & Sarvary, 2000; Talukdar, Sudhir, &

Ainslie, 2002). The magnitude of key diffusion parameters

differs, though, between HICs and EMs. The average pene-tration potential in EMs is only one-third of that for HICs, and

the adoption rate is slower than might be expected based on

results in HICs (Talukdar et al., 2002). Higher ethnic diversity in

EMs inhibits the social communication processes by which con-

sumers belonging to different groups learn about an innovation

(Dekimpe et al., 2000).

As another example, Hult, Keillor, and Hightower (2000)

found that attribute importances differ considerably between

Malaysian and French consumers. Malaysian consumers place

more importance on tangible product attributes, such as product

price, functionality, and safety, which is predictable given the

differences in product knowledge, disposable income, usageoccasions, and social influences on consumer decision making.

Even when consumers express similar wants and needs,

economic realities ultimately may be more influential on actual

behavior. Microeconomic theory predicts that the price

elasticity of demand should be higher in EMs, due to tighter

budgetary constraints. For most products, EMs have a con-

siderable pool of consumers who have never consumed the

product before. Generic advertising may draw some of them

into the marketplace, suggesting higher generic advertising

elasticities than typically found in HICs. Hanssens, Parsons, and

Schultz (2001, p. 329) propose, as empirical generalizations, an

average short-run (long-run) elasticity of brand advertising of

.1 (.2). We expect that brand advertising elasticities are higher in

EMs. Many consumers have only limited first-hand experience

with the brand, which increases the information function of

advertising. Thus, weak cross-national generalizability may be a

more realistic assumption in EMs.

We believe that the most realistic assumption is partial weak

generalizability, in that some previously-established proposi-

tions/hypotheses are supported in direction albeit not in mag-nitude, while some hypotheses are not supported. This, actually,

offers the potential to further marketing science as the EM

context can lead to richer theoretical and empirical insights. An

excellent example of such work is Arnould's (1989) research on

diffusion of innovations in Niger. Arnould collected ethno-

graphic data over a number of years, examining different as-

pects of the diffusion process. He subsequently compared his

findings with Gatignon and Robertson's (1985) seminal pro-

positional inventory for diffusion research. He concluded that a

number of the original Gatignon and Robertson propositions are

supported, while others need to be reformulated to render them

applicable to vastly different contexts, such as Niger. Combin-ing previous HIC insights with his work in Niger, Arnould came

up with a broadened theory of preference formation and the

diffusion of innovations that might be tested in other (EM or

HIC) markets. An important strength of Arnould's study is that

he explicitly evaluated his findings in the light of earlier work.

This avoids reinventing the wheel, a tendency not uncommon in

EM research. Another strength is that his work was among the

first to explicitly consider the institutional context in which

market-mediated behavior took place.

4.3. Structuring the institutional context

In principle, the institutional context is an important con-sideration in any study, especially when it differs significantly

from that of previous research. EMs are natural laboratories that

allow us to assess the generalizability of marketing theories and

the extent to which they are bounded by the institutional context

of HICs, most notably the U.S. Consequently, we learn more

about underlying mechanisms and develop true contingency

theories of marketing.

In this section, we identify some institutional characteristics

that typify EMs, although some EMs may not share every

characteristic we mention due to idiosyncratic influences on

their developmental trajectory. Expanding on work by the so-

ciologist Scott (2001) and the institutional economist North(1990), we distinguish three distinct but interrelated “ pillars of

institutions” that provide structure to society, albeit in different

ways — the socioeconomic, cultural, and regulative systems.

Social theorists have identified each of these systems as a vital

ingredient of a country's institutional context (Etzioni &

Lawrence, 1991; Scott, 2001) (Table 1).

The socioeconomic system comprises macroeconomic and

demographic characteristics, levels of within-country diversity,

and dynamics caused by rapid social, political, and economic

change. The cultural system represents culturally supported

beliefs, attitudes, habits, norms, and behaviors. It maintains that

external cultural frameworks shape internal interpretive pro-

cesses and shared understanding. The regulative system involves




retail outlets near mass transit hubs. Culture, low product

knowledge, and demographic characteristics (e.g., constrained

incomes, large family size, low formal education) promote group

decision making about purchases of relatively small nominal

value. Products not normally considered luxuries, such as

shampoo or a visit to McDonald's, may take on luxury con-

notations and be reserved for special occasions such as amarriage or birthday or otherwise impart special meaning.

4.3.2. Cultural system

Attempts to understand the cultural system traditionally

focus on values. Cultural value priorities underlie most aspects

of everyday life and relate to generalized beliefs people hold

about themselves, their social and physical environment, and

the spiritual world (Bond et al., 2004). There have been many

approaches to national culture (Leung, Bhagat, Buchan, Erez, &

Gibson, 2005), the cultural framework developed by the Israeli

psychologist Schwartz (e.g., Sagiv & Schwartz, 2000;

Schwartz, 2004) being the one most firmly grounded in theory.His theory identifies three bipolar dimensions of cultural values

that derive from three universal societal problems: the nature of

the relations of the individual to the group (autonomy versus

embeddedness), guaranteeing responsible behavior that pre-

serves the social fabric (hierarchy versus egalitarianism), and

managing the relations of people to society and the environment

(mastery versus harmony). EMs may be distinguished from

HICs on two of these dimensions.

HICs tend to emphasize cultural autonomy and egalitarianism.

Autonomy cultures view people as independent, bounded entities

that are expected to cultivate and express their own preferences,

feelings, ideas, and abilities, and find meaning in their own

uniqueness. Egalitarianism in HICs fosters cooperation and con-cernfor the welfareof others by encouraging recognition of others

as moral equals and pursuit of equality, social justice, re-

sponsibility, help, and honesty. Egalitarian cultures emphasize

voluntary cooperation between people and organizations. Orga-

nizations are often flatter with lesscentralized authority structures,

and are likely to express egalitarianism by acknowledging the

legitimacy of cooperative negotiation.

In contrast, EMs emphasize cultural embeddedness and

hierarchy (Schwartz, 2004). Cultures that emphasize embedded-

ness view people as entities rooted in collective groups and expect

them to derive meaning in life largely from social relations, group

identification, pursuit of group goals, and participation in a sharedway of life. Embedded cultures emphasize maintenance of the

status quo and discourage behaviors that disrupt in-group soli-

darity. Cultural hierarchy emphasizes responsible behavior by

legitimizing the unequal distribution of power, roles, and

resources according to hierarchical systems of ascribed roles

within a society.

Cultural value priorities affect behaviors that interest

marketers by shaping and justifying individual, group, and

organizational beliefs and goals. As embedded cultures, EMs

emphasize social order, respect for tradition, security, obedi-

ence, and wisdom. Emphasis on hierarchy socializes people to

take a hierarchical distribution of roles for granted and comply

with the obligations and rules attached to their roles and status.

Social power, authority, humility, and wealth are very important

values in hierarchical cultures. Companies are more likely to

have a centralized structure, to emphasize the chain of authority

and assign well-defined roles in a hierarchical structure, and

demand compliance in the service of goals set from the top.

Decision making is more autocratic and there is less willingness

to share decision making. These differences in the overallendorsement of cultural values in society also shape institutional

arrangements and policies, laws, customs, and social norms.

4.3.3. Regulative system

The structures, processes, and legal rules that comprise the

regulative system reflect socioeconomic and cultural systems

that are prevalent in a society by affecting transaction costs and

providing a source of motivation and justification for alternative

formal regulative institutions (Licht, Goldschmidt, & Schwartz,

2005). We focus on two regulative system aspects that relate to

corporate governance and investor rights: rule of law and

stakeholder influence on corporate governance. Rule of law refers to the enshrinement of legal rights in

formal laws and codes that regulate individual and group

behavior and provide formal institutions for their enforcement.

Attempts to understand rule of law traditionally have focused on

variation in laws and their enforcement across countries. The 23

EMs (e.g., Argentina, Brazil, Russia, Hungary, Poland, India,

China, Indonesia, Thailand, South Africa, Zimbabwe) among

the 49 countries studied by La Porta, Lopez-de-Silanes,

Shleifer, and Vishny (1998) generally had moderate scores for

shareholder rights, creditor rights, judicial system efficiency,

enforcement of laws, risk of appropriation or contract repu-

diation, and accounting standards. La Porta et al. attributed

much of what they observed to the shared influence of commonlegal families (e.g., common law, civil law, French family

origin). Licht et al. (2005) argued that formal legal institutions

are insufficient to explain variation in rule of law. Instead, they

advance a new rigorous way of addressing informal social

institutions, using Schwartz' cultural values. According to their

theory, cultural embeddedness in EMs discourages head-on

confrontation (viz., the embodiment of economic interests in

strict legal form) and enforcement in courts of law, while

cultural hierarchy promotes giving power to authorities who are

charged with controlling uncertainty.

A final element of rule of law concerns corruption, which

Transparency International (2006) defines as the abuse of publicofficials for private gain. Corruption deters economic growth by

creating inefficiencies. Most EMs show moderate levels of

corruption, as measured by Transparency International's (2006)

corruption perception index. Recent conceptual work suggests

that, although common EM institutional characteristics (e.g.,

oligopolistic industries, manager's seeking to gain access to

external resources in resource-constrained firms) relate posi-

tively to levels of corruption, corruption can be resisted by

carefully planning organizational structures, corporate cultures,

and compliance systems (Luo, 2005).

Stakeholder influence on corporate governance concerns

formal and informal influence that individuals and groups exert

on the firm with the purpose of shaping its corporate governance




structures and processes. In EMs, the low human development of

the majority of the population, uneven infrastructure develop-

ment, and competition for scarce resources compel governments

to rely on civic society and commercial organizations to assist in

achieving social and economic development goals. In turn,

business often needs the cooperation of government, civil so-

ciety, donor funding agencies, and other value-chain stake-holders in order to serve the needs of the mass market segment,

who lack the financial resources and authority to build the roads,

schools, and hospitals that they need. Hoskisson, Eden, Lau and

Wright (2000) observed that government and other stakeholders

exert greater influence in EMs than in HICs. They contend that

this makes institutional analysis preeminent in helping to explain

influences on enterprise strategies and performance, especially

in the early stages of market emergence.

4.4. Moderating role of a country's institutional context

A society's institutional priorities reflect the basic issues and problems that it must confront, and social and economic reward

contingencies it uses, to regulate human activity and facilitate

the smooth and effective functioning of society (Steenkamp &

Geyskens, 2006; Triandis, 1989). This presents individual and

organizational members of institutional systems with the need

to identify and respond to conflicts and compatibilities between

their own evaluative structures and the priorities of the in-

stitutional system. In this way, institutional priorities encourage

beliefs and behaviors that are aligned with shared priorities and

conducive to their maintenance, while discouraging those that

are not (Scott, 2001). Thus, as standards, these priorities in-

fluence how individual and organizational beliefs and behaviors

are evaluated and what kinds of expressions are encouraged or discouraged. These positive or negative institutional reinforce-

ment mechanisms give rise to interactions between society-level

and micro-level variables.

4.4.1. Consumer studies

Several studies have theorized and empirically tested the

moderating role of aspects of a country's institutional context on

consumer-level relations, using data on HICs and EMs. Lee and

Green (1991) found that the effects of personal and group-

oriented attitudes on purchase intentions are moderated by

national culture. In the embedded EM country (Korea), the

opinions of relevant others mattered more than the person's ownattitude. In the autonomous HIC (U.S.), only the person's own

attitude significantly influenced purchase intentions. Alden,

Hoyer, and Lee (1993) reported that ads in EMs (Korea, Thailand)

show individuals of unequal status and people in groups

significantly more often than ads in HICs (Germany, U.S.). This

is consistent with EMs's emphasis of hierarchy and embedded-

ness, respectively.

Steenkamp and Geyskens (2006) examined the antecedents

of the perceived value consumers derive from visiting a brand

manufacturer's Website in an internationalcontext, involving data

collected from individuals from 23 HICs and EMs on three

continents. They found that individuals living in more in-

dividualistic, autonomous cultures gave more weight to pleasure,

to privacy/security protection, and to website customization than

people from collectivistic, embedded cultures. People from

countries that are high on national identity gave more weight to

whether there was cultural congruity between the site and

themselves, while the effect of perceived privacy/security pro-

tection on perceived value is stronger for people from countries

with a weak rule of law.Steenkamp and Burgess (2002) found that in South Africa,

household income has a much stronger effect on innovative

behavior than consumer dispositions. Previous research in HICs

had not suggested this result (e.g., Steenkamp, ter Hofstede, and

Wedel, 1999). However, it can be explained by the classic

budget constraint in economics.

4.4.2. Organization studies

Deshpandé and Farley (2004) reported that customer

orientation and innovativeness had a consistent pattern of

positive effects on performance in HICs and EMs. However,

innovativeness appeared to be more important in the HICs whilemarket orientation was more important in EMs. Deshpandé and

Farley explained this difference by pointing out that in EMs,

marketing is less developed and investments in marketing may

have higher pay-offs. Recent research in EMs suggests a com-

plementary institutional rationale. In cultures that emphasize

embeddedness and hierarchy, managers prefer to rely on vertical

sources of guidance (superiors, formal rules) and widely-held

cultural beliefs (Smith, Peterson, & Schwartz, 2002). Thus,

market orientation in EMs may help overcome the inertia of

vertical information sources and traditional practices so that

firms can understand and respond to customer preferences.

The emphasis of social connectedness in EM institutions also

increases the importance of stakeholder relations. Luk, Yau, Tse,Sin, andChow(2005) found that customer orientation,competitor

orientation, and employee orientation have robust interaction

effects on financial and market performance in China. Peng and

Luo (2000) found that Chinese managers' personal ties with

government officials have a stronger effect on performance than

advertising, pricing, payment terms, or delivery. Ties with other

managers also affect performance by increasing product quality.

Thus, a stakeholder approach to market orientation (Greenley,

Hooley, Broderick, & Rudd, 2004), emphasizing strong relational

networks with donors, supply chain members, and beneficiaries,

may be an effective way to pursue appropriate product and

process innovations and keep prices low by leveraging internaland external resources to run efficient operations.

Even for an established and “rational” theory like transaction

cost economics, there is evidence for the moderating role of

country characteristics. Using meta-analysis, Geyskens, Steen-

kamp, and Kumar (2006) found that the institutional environ-

ment of the company systematically and predictably affects the

role transaction cost considerations play in governance

decisions. The ability of transaction cost theory to explain

departure from market governance is lower in countries char-

acterized by a strong rule of law, high societal cynicism, and

high cultural mastery. If the firm opts for non-market

governance, the transaction dimensions are more diagnostic

for predicting relational governance in countries lower on




societal cynicism. Further, the explanatory power of transaction

cost theory is higher for hierarchical (relational) governance in

countries that are characterized by high (low) cultural

hierarchy.

Collectively, the consumer and organization studies reviewed

in this section underline the need to test even our most

established theories in EMs. To achieve this, we need to collect meaningful data.

5. Acquisition of meaningful data

5.1. Choice of the countries

In EM research, the choice of the country or countries for

theory testing often is guided by resources, previous collabo-

rative relationships, or even convenience. Given the vital role

that institutional context plays in shaping one's results, a more

systematic approach is needed, depending on the goal of the

study. We distinguish between generalizability studies andcontingency studies (cf. Van de Vijver and Leung, 1997).

Generalizability studies examine the (weak or strong) general-

izability of research findings obtained in previous, typically

industrialized, countries to EM countries. In this case, country

choice is largely a matter of convenience, as institutional factors

are neither part of one's conceptual framework nor are they

explicitly considered (Van de Vijver & Leung, 1997). Evidence

for generalizability is of course stronger the more the

institutional context of the EM country differs from industri-

alized countries. An example of a generalizability study is

Steenkamp and Burgess (2002) who examined the cross-

cultural generalizability of optimum stimulation level theory

(Steenkamp & Baumgartner, 1992) to an EM context. Meaning-ful and theoretically predictable nomological relations were

obtained with values, sociodemographics, and exploratory con-

sumer behaviors, providing evidence on the generalizability of

this consumer theory to EMs. This type of study has a

disadvantage. If generalizability is not established, it usually is

not clear why this is the case.

In contingency studies, institutional factors are explicitly

incorporated in the theoretical framework. A priori hypotheses

are developed as to the moderating role of specific institutional

factors on the effect of micro variables. Countries are sampled

to maximize the variation on the focal institutional factors.

Some contingency studies involve two countries, which createsthe challenge of ruling out alternative explanations (Van de

Vijver & Leung, 1997). A stronger test of contingency studies

involves inclusion of a larger number of countries, allowing for

a multi-level framework, in which the variation of the effects

(intercepts or slopes) is explained by country characteristics. An

example is Steenkamp and Geyskens (2006) who showed that

evaluation of brand manufacturer websites is systematically and

predictably moderated by a country's rule of law, cultural

individualism, and national identity. Given the large number of

23 countries, alternative explanations are not obvious. Parsi-

mony suggests that the variation in these effects across countries

are indeed due to the institutional factors considered rather than

to other, unobserved constructs.

5.2. Unit of observation

The primary unit of decision making in individualistic,

Western countries is typically the individual consumer or

manager. Consequently, academic research in marketing has

largely focused on individual decision making. However, group

decision making is relatively more important in EMs, which areoften characterized by high cultural embeddedness and by

complex webs of personal and business obligations. Moreover,

due to the influence of socioeconomic and cultural institutions,

family decision making units are larger in EMs. It is not

uncommon that countries will have an average household size of

six or more people, spanning three generations. We need more

theorizing and better marketing research tools 1) to conceptu-

alize, measure, and analyze these social networks, 2) to un-

derstand their role in group decision making, and 3) to examine

the reciprocal and dynamic relations between individual and

group norms, attitudes, and behavior. Such research will also

benefit marketing research in HICs, since blogs, buzz, and other social network phenomena are rapidly gaining importance.

5.3. Data collection

It is well-known that obtaining data from EMs is more

challenging than collecting data in HICs. The choice of data

collection method thus requires more careful consideration in

EMs, and may change as a particular research project proceeds,

due to within-country diversity of EMs. In this section, we

briefly explore some of these issues in respect of secondary and

primary data. Detailed secondary data on EMs are freely avail-

able from government and international trade organizations

such as the World Bank and the United Nations. These data can be very helpful when trying to get an overall view of a country

and when planning data collection. However, it is important to

consult the technical reports for EM data in these standardized

data sources, as data may vary in recency and accuracy across

countries in a report or even be estimated, and to ascertain how

representative the data are for the total population. For instance,

although consumer credit bureaus can provide marketing data

for many EMs, data typically is limited to the minority of

consumers with accounts at financial service providers or

commercial/retail credit firms.

Primary data collection is hampered by the absence of

sampling frames, lack of reliable and fast transportation in partsof EMs, unreliable mail delivery, and low penetration of the

Internet. The extreme heterogeneity of EM populations in-

creases the importance of considering possibly hidden institu-

tional context effects that are masked in primary data, even

when multi-nation data is provided in standardized formats by

global multinationals across countries and does not appear to

differ meaningfully in content or quality. For instance, super-

market scanner data collected in EMs typically reflects sub-

stantial differences in shopper profiles, not only across countries

but within and across stores in a country. If shopper profiles are

related to systematic differences in potentially confounding

institutional context variables, then it becomes necessary to

collect shopper and purchase data concurrently or, at the very




least, in a way that allows confounding variables to be con-

trolled in the analysis. In this vein, approaches such as the

flexible hierarchical Bayes variance components approach

recently proposed by Steenburgh, Ainslie, and Engebretson

(2003) to take full advantage of masked information (e.g., in

postal codes) hold considerable promise.

On the positive side, collecting quantitative, primary data inEMs may be less daunting than one might think. Market re-

search tends to be much cheaper. For example, while business-

to-business interviews cost about $200–400 in France or Japan,

the cost per interview in Thailand or Vietnam EMs is about $40,

a reduction of 50–90%.2 The marketing research infrastructure

in EMs is also rapidly improving. Local research firms are

available in virtually all EMs and global market research

companies increasingly have agencies in EMs as well. Gallup

International has member agencies in most Eastern European

countries, India, China, Indonesia, and Vietnam, South Africa,

Kenya, Nigeria, Zimbabwe, Argentina, Mexico, among others.

It claims to have fieldwork capacity in most other countries. Theresearch network of other leading agencies such as AC Nielsen,

GfK, Research International, and Taylor Nelson Sofres also

spans dozens of EM countries. However, operations in EMs

often do not offer a multinational research firm's full range of

services. For example, although GfK is active in over 60 EMs,

its vaunted consumer tracking service is only available in about

a dozen Eastern European countries.

Primary data collection should not necessarily involve

structured surveys or scanner data. Qualitative techniques ap-

pear more suitable than quantitative techniques to uncover new

constructs. Simply testing one's existing theories in a vastly

different context may lead to an imposed-etic view — i.e.,

committing the fallacy of assuming that constructs and theoriesdeveloped in HICs are automatically valid in EMs too. EMs

typically have evolved differently than HICs and have more

recent experiences with institutional forces such as colonization,

widespread poverty, and frontier expansion.

Historical analysis and content analysis are examples of

qualitative approaches that can be employed to explore the

effects of institutions on consumers and organizations at the

individual and group level. For instance, Zhou and Belk (2004)

used content analysis to understand how consumer perceptions

of advertising content were affected by the competing goals of

global cosmopolitanism, which drives consumption of status

goods for the sake of mianzi (prestige face), and the desire toinvoke more traditional Chinese values. Arnould (1989, 2001),

Arnould and Mohr, (2005) used ethnographic data collection

methods to study consumer and market behavior in Niger. Joy

(2001) used depth interview techniques to identify four types of

social ties that have distinctive influences on gift giving

behavior in Chinese culture.

A word of caution is in order. Imposed-etic, standardized

data collection methods are problematic and we can learn a lot

about marketing phenomena by studying EMs with an open

mind. However, the opposite view – extreme emic – which

holds that everything is different in EMs, is equally problematic.

In our experience, the extreme emic philosophy is more com-

mon than the imposed-etic view, especially among qualitative

researchers. Marketing science progresses by building on

previous work. Assuming that everything is different in EMs

fails to recognize the social, cultural, and economic universals

that are also part of human civilization. It leads to reinventing

the wheel and proliferation of new constructs, simply because of origin elsewhere.

Qualitative procedures may be fruitfully employed 1) if used

prudently as to avoid statements regarding the generalizability

of a phenomenon, and 2) in conjunction with follow-up quan-

titative data collection. Rigorous, quantitative construct valida-

tion is critical in the development of new constructs and

theories. Econometric and psychometric modeling techniques

should be used 1) to assess discriminant validity with existing

scales, 2) to evaluate the power of the new constructs over and

above existing constructs in explaining key criterion variables,

and 3) to test rival models in nomological nets (Steenkamp &

Baumgartner, 2000).

5.4. Measurement

We have seen that EM populations on average are char-

acterized by lower levels of formal education. Unfortunately,

many established measurement instruments (see Bearden &

Netemeyer, 1999 for an excellent overview) require a fairly high

degree of respondent sophistication. They often are too long and

too difficult for use in EMs. Consider the important construct of

values. Values are among the most central determinants of

consumer behavior. They underlie a large and important part of

human cognition and behavior, and have been found to be

valuable in explaining a variety of attitudes and behaviors in theconsumer context (Burgess, 1992).

The Schwartz Value Survey (SVS; Schwartz, 1992) is the

most rigorous instrument to measure consumer values. Respon-

dents rate the importance of 57 values as “a guiding principle in

my life,” on a 9-point scale, ranging from −1=opposed to my

values, 0=not important, 3=important, 6=very important, and

7=of supreme importance; the other categories are unlabeled.

This judgment task requires one to think about and evaluate

abstract value concepts without providing specific life context

references within which to weigh one's application of them.

However, although people combine, apply, and choose among

guiding principles in life on an almost constant basis, theyusually are only loosely aware that they are doing so and seldom

are so precise and self-conscious (Schwartz, 1994). Accordingly,

respondents find this task novel and intellectually demanding

and take 25 min to complete it, on average.

There are serious problems with completing the SVS in EMs,

especially among the less educated and the elderly, and in rural

areas (Schwartz, Lehmann, & Roccas, 1999). In response to

these limitations, Schwartz et al. (1999) developed a new

instrument, called the Portraits Values Questionnaire (PVQ).

The PVQ includes short, textual portraits of 29 different people.

Value importances are measured indirectly, as they are inferred

from the self-reported similarity to a person of the respondent's

gender holding a particular value to be important. Each portrait 2 We thank an anonymous reviewer for providing this information.




describes a person to whom certain goals, aspirations, and

wishes – all expressive of the same single value type – are

important. For example, “Being very successful is important to

her. She likes to stand out and to impress other people”, describes

a person who considers achievement values important. For each

portrait, respondents answer: “how much like you is this

person?” They check one of the six boxes labeled: very muchlike me, like me, somewhat like me, a little like me, not like me,

and not like me at all. The PVQ takes less time to complete

(usually less than 10 min) than the SVS, is less demanding

cognitively, and has been used successfully in EM contexts

(Schwartz et al., 1999, 2001; Steenkamp & Burgess, 2002).

Steenkamp and Baumgartner (1995) developed and validat-

ed a 7-item short-form of a 95-item scale to measure optimum

stimulation level, which has subsequently been used in South

Africa (Steenkamp & Burgess, 2002). A short-form of the Big

Five personality questionnaire also has been developed (Benet-

Martinez & John, 1998). Researchers have sometimes con-

structed their own short-form of existing consumer behavior scales on an ad-hoc basis, by including only the highest loading

items in their EM study (e.g., Alden et al., 2006; Batra et al.,

2000).

Shorter, simpler scales are also needed in organizational

research, as otherwise the response rate among time-harassed

managers will drop to unacceptably low levels. Take market

orientation, one of the most widely used organizational constructs

in marketing. Based on a pool of 44 items drawn from three

established market orientation scales, Deshpandé and Farley

(1996) developed a short-form 10-item scale that exhibited high

loadings on the first factor, good reliability, and low nonresponse.

This scale might be fruitfully employed in EMs.

Existing, Western, scales may not only be too long andcomplex, they also may contain items that are inappropriate in

EM contexts. Consider this item from the well-known Paulhus

(1991) social desirability scale: “I never read sexy books or

magazines.” It is potentially offensive and assumes easy

availability of such materials. An item like “I am not a safe

driver when I exceed the speed limit ” may not be offensive, but

is inappropriate because it assumes that everybody has a car,

which simply is not the case in EMs.

It also appears that the direction of the items can cause

problems in EMs. Several studies (Steenkamp & Burgess, 2002;

Wong, Rindfleisch, & Burroughs, 2003) have found that

negatively worded items cause problems in EMs. The reasonfor this phenomenon is not clear, but it is worrisome as item

reversal is an effective way to neutralize acquiescence bias

(Baumgartner & Steenkamp, 2001).

In sum, some work has started to address the validity and

usefulness of measurement instruments for EMs. Existing

scales may require at least partial adaptation to the EM context.

Typically, adaptation has been approached informally, selecting

items that appear cross-culturally appropriate and exhibit high

factor loadings in previous (Western) studies. De Jong,

Steenkamp, and Veldkamp (2006) recently proposed a more

systematic approach. They integrate a hierarchical item

response theory (IRT) model with optimal test design to con-

struct country-specific, short-form measurement instruments

based on a common pool of items. Items are selected subject to

researcher-specified constraints, such as the length of the scale

or the minimum amount of information retained in the short-

form. Despite the fact that the items can differ between coun-

tries, construct scores can still be compared across countries and

across different studies, due to calibration of the model on a

common scale, and the sample-invariant characteristics of IRT parameters.

6. Data analysis

6.1. Heterogeneity

Compared to HICs, EMs exhibit a much greater degree of

within-country heterogeneity on key aspects of human

development such as income and educational attainment, as

well as on other aspects, varying from marketing infrastructure

to lifestyle. In such a context, “fixed-effects” models and

techniques are problematic. The established method for as-sessing scale reliability is Cronbach's alpha, which ignores

heterogeneity. This may be one of the reasons why scale re-

liability in EMs often is lower than in HICs (Alden et al., 2006;

Batra et al., 2000; Deshpandé & Farley, 2004). Factor analysis

and OLS regression are arguably the most frequently employed

multivariate techniques in marketing research to uncover

relations between items and constructs. In their standard form,

both assume fixed-effects. When there is considerable hetero-

geneity in the sample, these techniques will yield biased results.

Heterogeneity can be discrete or continuous (Wedel,

Kamakura, & Böckenholt, 2000). Discrete heterogeneity implies

that there is a limited number of more or less homogeneous

groups in a country. If the source of heterogeneity can beidentified a priori, analyses should be conducted on each group

separately. Results can be compared across groups if the

measurement scales exhibit invariance across groups (Steen-

kamp & Baumgartner, 1998). For example, Steenkamp and

Burgess (2002) studied the nomological relations involving

optimum stimulation level and exploratory behavior in South

Africa, a country characterized by extreme within-country di-

versity. They argued that cultural–ethnic groups are a systematic

source of heterogeneity. They first established measurement

invariance across these groups, and subsequently estimated and

compared nomological relations for each group separately.

A second approach to account for discrete heterogeneity is by estimating relations on groups that are formed post-hoc,

using finite mixture modeling techniques. Jedidi, Jagpal, and

DeSarbo (1997) have developed a finite mixture structural

equation model to account for unobserved heterogeneity in

measurement and structural relations. Ter Hofstede, Steenkamp,

and Wedel (1999) proposed a finite mixture model to estimate

the psychological associations between product attributes,

benefits of consumption, and value priorities, incorporating

within- and between-country heterogeneity.

Allenby and Rossi (1999), among others, have argued that

the assumption of discrete heterogeneity is overly restrictive.

They advocate the use of continuous heterogeneity distribu-

tions, allowing the effect of a parameter to vary across entities.




The standard assumptions are that the distribution of the

parameters is unimodal and normal. Procedures like random

coefficients regression analysis and hierarchical Bayes can be

used to estimate the modus and variance of the normal dis-

tribution. To the best of our knowledge, neither finite mixture

models nor continuous heterogeneity models have been used to

deal with heterogeneity within EM countries. This is remarkableas the advantages of these complex models are likely to be much

more compelling in the EM setting than in the HIC context in

which they were developed and tested.

6.2. Measurement invariance

Measurement invariance refers to whether the observed

scores are comparable across groups (Steenkamp & Baumgart-

ner, 1998). Marketing scholars recognize that this is an

important issue in cross-national comparisons but, in fact, it is

equally relevant when comparing disparate groups within one

country. Measurement invariance is especially pertinent in EMresearch, given within-country heterogeneity and the vast dif-

ferences in institutional context with HICs in which most

previous research has been conducted. Lack of measurement

invariance can be due to cross-group (national) differences in

responses to 1) individual items and/or to 2) complete sets of

measures (Baumgartner & Steenkamp, 2001, 2006; Steenkamp

& Baumgartner, 1998).

Steenkamp and Baumgartner (1998) outlined a procedure to

test for measurement invariance at the level of individual items,

using multi-group confirmatory factor analysis. If specific

invariance constraints are met, this procedure yields construct

scores corrected for lack of measurement invariance. These scores

can be used in subsequent analyses, such as means comparisonsand estimation of structural relations. Baumgartner and Steen-

kamp (1998) extended this approach to combined emic–etic

scales. They showed how the multi-group confirmatory factor

analysis model can be modified to yield cross-nationally

comparable scores on scales consisting of a combination of

country-specific and cross-nationally standardized measures.

Lack of measurement invariance can also be due to cross-

national differences in response styles (Baumgartner & Steen-

kamp, 2001). Response style refers to a person's tendency to

systematically respond to questionnaire items on some other

criterion than what the items were supposed to measure (Paulhus,

1991). Stylistic responding tends to affect all items and as such isnot easily detected by the procedure outlined by Steenkamp and

Baumgartner (1998), which is based on differential item

functioning. The most prevalent response styles are acquiescence

bias, extreme responding, and social desirability responding

(Paulhus, 1991). There is evidence that countries may differ

systematically on these response styles. Steenkamp, De Jong, and

Baumgartner (2006) found that leading EM countries such as

China, Argentina, Poland, and Brazil are among the highest in

socially desirable responding. Countries like China also are high

on acquiescence bias. These systematic results can be explained

by a country's culture (Chen, Lee, & Stevenson, 1995; Steenkamp

et al., 2006), which provides yet more evidence that marketing

research results are affected by a country's institutional context.

Baumgartner and Steenkamp (2001), Rossi, Gilula, and

Allenby (2001), and Ter Hofstede et al. (1999) have described

procedures to purge observed scores from stylistic responding.

More recently, De Jong, Steenkamp, and Fox (2007) proposed a

model that corrects for cross-national differences in responses to

individual items and sets of items. This procedure no longer

requires cross-national invariance. The model also takes intoaccount that rating scales often lack interval-scale properties.

They applied this procedure to data from 11 countries, including

EM countries like Brazil, China, Russia, and Thailand and

showed that failing to account for response styles leads to

erroneous conclusions.

The foregoing discussion may suggest that measurement

invariance is only an issue for survey data. Unfortunately though,

that is not the case. It is our experience that scanner data are

difficult to compare across HIC countries, let alone between HICs

and EMs or among EMs. One reason is that definitions of

categories (e.g., what are softdrinks?) and store types (e.g., whatis

considered a discounter?) are not standardized across countries.Further, the coverage of scanner data may systematically vary

across countries. In EMs, retail scanner data (if available) will only

cover a small part of the total market, as few stores have this

technology. But even in HICs, this yields problems. Powerful

discounters like Wal-Mart in the U.S. and Aldi in Germany are not

included in retail scanner data. Obviously, this threatens the

within-country usefulness of retail scanner data, and reduces the

comparabilitywith countries where retail coverage is much higher.

Measurement invariance concerns also apply to secondary

data. Employment data are sometimes manipulated for political

purposes and the wealth of countries is difficult to compare due

to different tax morals, (although these concerns are not limited

to EMs only).3 The very fact that the data have been collected by a reputable organization does not assuage the need for

evaluating metric invariance, e.g., by comparing estimates from

different sources and by constructing composite indices. Multi-

group confirmatory factor analysis can also be used to examine

the measurement invariance of secondary data, provided the

number of observations is sufficiently large and multiple

indicators/estimates per construct are available.

7. Learning from results

7.1. Direct interpretation

Learning can occur at several levels. At the most basic level,

we learn something about the phenomenon at hand in the

country in question. In our discipline, there is a strong focus on

statistical significance. Findings that are significant at pb .05 are

considered important while findings with a significance level

above .05 – or, more liberally, above .10 – are not. Similarly,

scales are considered to demonstrate internal reliability when

coefficient alpha exceeds .70. Generally, these are reasonable

3 For example, an article in the Wall Street Journal Europe (1999) stated that

“The government and international institutions explicitly recognize that a large

part of the Italian economy goes unreported, and add a certain percentage to

GDP to make up for these leakages when measuring its size.”

Needless to say,such adjustments are estimates, suffering from reliability problems.




conventions in well-researched, Western contexts. In fact, one

could argue that traditional significance testing against a null

result makes little sense if previous research has established that

the effect is different from zero (Farley & Lehmann, 1994).

However, there are several reasons why traditional signifi-

cance levels are of more doubtful value in EMs. First, since we

do not know much about marketing phenomena in an EMcontext, in a Bayesian spirit, any information lifts marketing

science above relative ignorance. Traditional significance

testing minimizes the probability of erroneously concluding

that there is an effect. This ignores the scientific and managerial

“costs” of overlooking effects that are in reality present (Type-II

error). Second, the power to detect effects generally (although

not invariably) is affected adversely by lower reliability and

within-country heterogeneity, both of which are especially

pertinent in EMs. Hence, it is reasonable to accept more liberal

significance criteria when conducting research in EMs (e.g.,

pb .20). After all, conventions are just that and our goal must

be to advance science. This recommendation is similar in spirit to Lodish et al.'s (1995) use of pb .20 for managerially relevant

decisions and to Nunnally's (1978) suggestion to accept lower

reliabilities in the early stages of research than in later research

stages. Perhaps it was also in this spirit that Deshpandé and

Farley (1999, p. 10) defended the low reliability of their

measures in a Vietnamese study “… reliabilities of the scale

measurement in Vietnam, while directionally correct, were

weaker than in Japan.”

7.2. Marketing relevance of theoretical explanations

A second level of learning takes place by examining the

marketing relevance of our theoretical explanations. An effect may be significant but does it really matter? We can assess this

by evaluating the effect size, for which the correlation

coefficient r is the most common metric. It is relatively simple

to convert t -values and other significance statistics associated

with multivariate analyses into r (Lipsey & Wilson, 2001).

Researchers often more or less blindly adopt Cohen's (1988)

interpretation of effect sizes: small: r =.1; medium: r =.3; large:

r =.5, where small is often equated with irrelevant.4

We believe that this interpretation does not accurately reflect

the marketing relevance of our theoretical explanations. First,

small r 's actually can represent a substantial effect. For

example, Rosenthal (1991) showed that a correlation of .10corresponds to an increase of the hit rate by 10%. Second, in

EMs, scale reliabilities are often lower and this will generally

(although not always) decrease effect sizes. Third, marketing

costs are not taken into account. We will illustrate this with a

simplified example, based on real company experience. Con-

sider a large consumer packaged goods company that regularly

introduces new products in the Brazilian market and typically

spends annually $20 million on new product development and

introductions. It conducts a study into drivers of new product

success and finds an effect size of r = .11 for income. A

segmented approach, based on income, translates into a

predicted increase in new product success of 11%, generating

expected savings of $2.2 million. Thus, even if an effect size

of .11 may not seem large, the marketing savings can be

substantial.

7.3. Empirical generalizations

The most abstract level of learning is when the researcher

attempts to integrate the findings obtained in the specific EM

study with previous research to arrive at, or update (weak or

strong) empirical generalizations. Bass and Wind (1995, p. G1)

eloquently outlined the role of empirical generalizations in the

evolution of marketing science: “Science is a process in which

data and theory interact leading to generalized explanations of

disparate types of phenomena. Thus, empirical generalizations

are the building blocks of science.” Perhaps this more than

anything else underlines the importance of EM research. To be a

true science, marketing must establish generalizability and boundary conditions in disparate settings. EMs offer research

contexts which are widely disparate to the ‘traditional’ research

context of the HICs. We believe that examining empirical

generalizations to EMs is necessary to arrive at, what Farley and

Lehmann (1994) call, “cross-national laws” of marketing.

If at least weak generalizability holds for both HICs and

EMs, we can start to have confidence in the universality of a

theory. If on the other hand, the results do not hold, we can

establish boundary conditions. In both cases, marketing as a

science progresses. Let us illustrate this with two EM studies.

Steenkamp and Burgess (2002) found that consumers' optimum

stimulation level significantly affect the extent to which they

engage in exploratory behavior. This result was found acrossthree cultural–ethnic groups and replicated previous research in

HICs. Given the vastly different contexts in which this effect is

found, we may start to formulate this relationship as a cross-

national law, subject to further confirmation in other EMs.

On the other hand, the study by Burgess and Nyajeka (2006)

suggests boundary conditions on drivers of a company's market

orientation. Research in Western countries has supported the

adverse effects of formalization and centralization on market

orientation. Burgess and Nyajeka showed that this does not

apply to countries characterized by cultural hierarchy and

embeddedness and lower formal education of employees. In

such countries, formalization and centralization are consistent with cultural expectations and moderate levels of market orien-

tation may stimulate information acquisition and dissemination

by informing employees with less formal education about

market orientation and clarifying their role in its delivery. The

emphasis on cultural hierarchy also suggests that employees

may prefer relatively higher levels of formalization and

centralization, because they will rely on rules to proscribe their

roles and behaviors within the hierarchical structures they value.

8. Implications for marketing practice

Marketing research in EMs not only plays a considerable role

in the evolution of marketing science, it is also of great 4 Note that Cohen (1988) himself does not suggest this.




relevance to marketing practice. In this section, we will consider

a number of issues specific to the development and implemen-

tation of marketing strategies in EMs.

8.1. Development of marketing strategies for EMs

8.1.1. Focusing on the affluent segment To compete in EMs, global companies should develop two

distinct strategies. Firstly, for the elite segment typically con-

centrated in urban areas, companies can build profitable posi-

tions by rolling out their global marketing strategies. These

consumers tend to prefer global brands over local brands, due to

the associations of global brands with higher quality and

prestige (Batra et al., 2000; Steenkamp et al., 2003). Global

brands also communicate cosmopolitan sophistication and

modernity. Although these qualities are sought after in most

countries, they are appreciated by the elite who often admire

HIC lifestyles and the products that symbolize them. This

generalized status preference for global/foreign brands has beenreported in a wide range of EM countries such as China, India,

Korea, Vietnam, Congo, Ethiopia, Nigeria, Zimbabwe, Roma-

nia, Turkey, and Peru (Batra et al., 2000). Distribution channels

in large cities often are advanced and price sensitivity among the

elite segment typically will be modest. In fact, purchasing brands

that cannot be purchased by the majority of the population caters

to the elite's typical desire for social distinction.

Note that catering to the elite segment and building global

brands is not the prerogative of companies based in HICs. EM

firms can build equally compelling international brand images.

Consider the fast-food chain Nando's. Starting from South

Africa, it has rapidly expanded to over 30 countries on five

continents, challenging one of the perennial symbols of globalculture, McDonald's. Some EM companies underline their

credentials by emphasizing their emergence on the global stage.

For example, for its Chinese-language home page, computer

maker Lenovo selected a map of the world with pictures of its

PC towering over globally recognized landmarks as the Eiffel

Tower, the Statue of Liberty, and the Sydney Opera House. Its

global ambitions were expressed in the slogan: “in step with

global technology” (Lane, St-Maurice, & Dyckerhoff, 2006).

Nevertheless, the traditional business focus on relatively

expensive, large unit, over-engineered global brands is unlikely

to be successful in EMs beyond the elite segment, at least for the

foreseeable future.

8.1.2. Innovation blowback: focusing on the base of the pyramid

A second way to compete in EMs focuses on serving the

needs of the mass market segment with a radically different

strategy. This entails the challenge of developing (disruptive)

strategies to serve the extremely price sensitive and resource-

constrained mass market segment while maintaining profitabil-

ity. Although this can be daunting, it can be done.

The lower-income segment of EMs is an ideal market for

disruptive innovations for at least two reasons (Hart &

Christensen, 2002). First, if a firm has developed a profitable

business model to cater to this segment in one EM, its business

model can be expected to travel well to other places. After all, it

has built up the skills necessary to offer a product profitably at

very low prices and the proposition is likely to be attractive in

other EMs. Also, the proposition may be attractive to the

significant low price/value-focused segment in HICs. For

example, the Dacia Logan is a no-frills car priced at about

5,000 that Renault developed for Eastern Europe but later

introduced into Western Europe too.Second, disruptive innovations also compete against non-

consumption. In EMs, nonconsumption is a realistic option for

the vast majority of the mass market segment. Disruptive

innovations potentially expand the market by offering a product

to consumers who would otherwise be left out of the market.

Many Eastern Europeans purchasing the Dacia Logan would

not be able to buy a car otherwise. They are quite happy to own

a simpler, more modest version of cars marketed in HICs. In less

affluent EMs, penetration of even basic consumer products,

such as toothbrushes, remains low. This challenges global

manufacturers to develop basic, low cost products that satisfy

the needs of the mass market segment without jeopardizingendorsements in HICs. For example, marketing affordable

toothbrushes at affordable prices may require “transitional”

designs without modern design elements that improve perfor-

mance (e.g., angled necks and bristles, end-rounded bristles) but

also increase production costs beyond affordable levels.

As existing products from high-end markets are out of reach for

all but a small segment of the EM market, disruptive innovations

will encounter limited competition from established products.

Consequently, they can incubate their businesses in the relative

safety of low-income segments (Hart & Christensen, 2002). As

such, EMs provide an invaluable ground to develop a low cost,

efficient business model that can be transferred to the low-income

segment of other EMs. In the longer run, these business modelseven can be moved upward, in EMs as well as in HICs, by

successively attacking market tiers that are the least attractive to

established high-end products. It is in this vein that Brown and

Hagel (2005) introduced the term “innovation blowback ” in that

they expect that EMs will become important catalysts for dis-

ruptive innovations. Companies that are able to develop the new

innovation skills to be successful in these markets are likelyto gain

competitive advantage in the global marketplace.

Although Western companies are active in EMs, EM-based

companies may be benefiting optimally from the disruptive

potential of their huge ‘ base of the pyramid’ potential. For these

companies, it is either survive or go bankrupt. Companiesranging from India's Mahindra and Mahindra (tractors) and

Ranbaxy (generic pharmaceuticals) to Egypt's Orascom

(telecom) and Brazil's Embraer (aerospace) have learned to

make a profit at prices unheard of the HICs. Orascom earns a

margin of 49% selling cellular services for 2–3 cents a minute,

while Ranbaxy profitably sells generic ciprofloxacin (to treat

bacterial infections) for $0.69 for 10 tablets compared to the

going price of $51 in the U.S. (Engardio, 2006).

8.2. Implementation of marketing strategies

The best-crafted and most appropriate strategy will not lead

to superior performance if it cannot be implemented in the




operational context. EM contexts are marked by institutional

turbulence, complexity, and within-country diversity that can

attenuate and even disrupt implementation (Wright et al., 2005).

Hence, performance is likely to be superior when organizational

structures and processes encourage strategic flexibility, innova-

tion, and entrepreneurship and implementation stresses continual

market-oriented intelligence gathering, dissemination, sense-making, and responsiveness (Liu, Luo, & Shi, 2002; Luo &

Peng, 1999). We distinguish four key factors that critically affect

the implementation of marketing strategies in EMs: leadership,

organizational systems, intraorganizational relations, and learning.

Leadership concerns top management attitudes and behav-

ior. Top management emphasis and commitment is important to

the implementation of marketing strategy in any organization,

but even more so in EMs, due to socioeconomics (low formal

education, high unemployment) and culture (high embedded-

ness and hierarchy). Accordingly, it is important for top man-

agement to understand how institutional, normative, and

organizational elements of context animate implicit, cultural-ly-endorsed beliefs affecting leadership acceptance and effec-

tiveness (House, Hanges, Javidan, Dorfman, & Gupta, 2004).

Top management may need to be more explicitly involved in

management and policy setting than in HICs, in order to

encourage effective implementation. Cultural preferences for

risk avoidance may make this especially true when strategies

emphasize entrepreneurship and risk-taking (Hofstede, 2001).

Top management also needs to clearly understand corporate

governance issues and the governance effects of domestication

and internationalization strategies (Wright et al., 2005).

Organizational systems concern organizational structure,

reward, and training systems. Cultural preferences for order and

hierarchical coordination in working relations suggest that higher levels of centralization and formalization may be appropriate in

EM organizational structures and processes (Burgess & Nyajeka,

2006). Consequently, employees may prefer to work in small

groups and teams when implementing strategies and to be

evaluated and rewarded, at least partially, on group performance

(Ping Ping Fu et al., 2004; Wei, Chen, & Zhang, 2004). Training

can play an important role in addressing competency deficits in

functional skill areas and helping overcome difficulties in

intraorganizational relations that derive from within-country

diversity (Cadogan, Sundqvist, Salminen, & Puumalainen,2005).

Intraorganizational relations comprise process-related choices

about internal connectedness, coordination, and conflict manage-ment. When these choices are appropriate to the institutional

context, they improve implementation by facilitating social capi-

tal formation, trust building, and endorsement of shared goals and

organizational culture (Inkpen & Tsang, 2005; Kirca, Jayachan-

dran, & Bearden, 2005). Hierarchy and embeddedness naturally

encourage market orientation by facilitating information dissem-

ination and use and encouraging cooperation during implemen-

tation ( Nakata & Sivakumar, 2001), but it remains necessary to

promote this natural tendency by designing processes that will

encourage cooperative relations.

The way that individuals define themselves affects their

thoughts and interactions with others. The characteristics of EM

societies accentuate social and relational identities, which often

are expressed in an individual's connectedness within social

networks (Brewer & Brown, 1998). In the organizational

context, connectedness communicates important identity infor-

mation about status and roles, which helps confirm identities,

define appropriate others with whom to interact and the nature

of those interactions, increase well-being and self-esteem, and

enhance cooperation, implementation, and performance (Gel-fand, Major, Raver, Nishii, & O'Brien, 2006; Milton &

Westphal, 2005). Equally, inability to develop and affirm con-

nections can be a source of distress and negative feelings that

frustrate implementation. (Cross, Gore, & Morris, 2003).

The EM context also requires adaptation in day-to-day

interactions with subordinates who must implement strategies.

Consistency in behavior and transparency are considered to be

good managerial characteristics in Western contexts. Diploma-

cy and tact, even evasiveness, and avoidance of negative public

evaluations, may be preferable in EMs if it means saving face

for an important colleague or subordinate (House et al., 2004).

Thus, although top management is required to be moreavailable, physically or symbolically, to act as vertical sources

for guidance, facilitate internal connectedness across the

organization, and encourage middle managers to take appro-

priate risks, they must also ensure that their interactions are

appropriately designed so as to enhance implementation.

Learning systems focus on facilitating learning in the firm.

Complexity and dynamism in EMs increase the importance of

knowledge-producing behaviors and knowledge-questioning

values (Sinkula, Baker, & Noordewier, 1997). The positive

effects of learning on performance in EMs increase with

experience intensity and diversity (Luo & Peng, 1999), hence it

is important to leverage experience within the firm and its

supply chain using formal and informal learning and knowledgemanagement systems.

9. Conclusions

9.1. Summary

In this article, we argued that marketing scientists need to

conduct more research in EMs, both to further the advance of

marketing as an academic discipline as well as to maintain the

managerial relevance of our discipline. We viewed marketing

science as a process, and proposed a framework delineating four

stages through which EM research contributes to the growth of marketing science. The four stages are 1) theory development,

2) acquisition of meaningful data, 3) analysis of the data to test

one's theories, and 4) learning. Through the process of

deductive logic, general theories are operationalized in specific

settings, while through the process of inductive logic, specific

findings are used to arrive at more general conclusions. We

discussed the unique issues and contributions of EM research

for each of the four stages of this framework. Subsequently, we

elaborate on the implications of EM research for development

and implementation of marketing strategies. Our discussion has

revealed that some research has started to address these issues,

but we have only begun to scratch the surface. In this spirit, we

present an agenda for future research in EMs.




9.2. Research agenda

9.2.1. Theory development

In order to move forward, we need to systematically explore

the EM institutional context and its effects on marketing phe-

nomena. Although we should be open to constructs and theories

developed in EMs, it is natural that the large existing body of work be a primary point of departure. Only in this way can we arrive at

contingency theories of marketing thatmay possibly be applicable

across a wide range of countries and environments.

Our journey will challenge us to become more truly global in

our theory development. The overwhelming body of current

marketing research considers consumers as highly independent

persons, making their own decisions. Marketing theories that

consider group dynamics and social influences are underdevel-

oped. This limits their applicability in embedded EM contexts,

as does lack of clarity about whether constructs developed in

HICs are theoretically equivalent in EMs. Theoretical equiva-

lence is difficult to establish but a wide range of procedures,ranging from qualitative techniques to structural equation

modeling can be used for this purpose.

9.2.2. Acquisition of meaningful data

The appropriate unit of observation in EMs may sometimes, if

not often, be the group rather than the individual. But how do we

measure group influences and group dynamics? Can we measure

them at the individual level using constructs like Fishbein's

subjective norm (Assael, 1992) or Bearden, Netemeyer and Teel's

(1989) susceptibility to normative influence? In that case, it is

worrisome that only 5 out of nearly 200 scales included in

Bearden and Netemeyer (1999) deal with social influences. If

those effects should be measured at the group level, how shouldwe do that?

The choice of the countries typically is driven by con-

venience rather than by design. A more deliberate approach

where countries are purposefully selected to provide maximum

variation on relevant institutional factors will increase the

generalizability of our findings.

One of the great success stories in marketing is that we have

developed an impressive body of rigorously validated market-

ing scales (Bearden & Netemeyer, 1999). However, few of

these validation efforts have taken place in EMs. We hope that

future editions of the well-known Handbook of Marketing

Scales (Bearden & Netemeyer, 1999) will contain more in-formation on the validity of marketing scales in EMs. This will

be a major step in opening up EMs to advanced marketing

research, and allows EM researchers to build on previous

efforts and insights.

Notwithstanding the importance of previous work, we expect

that scales often will have to be adapted to render them

cognitively less demanding. Much work remains to be done to

construct shorter, simpler versions of existing scales, using

different wording and response formats, as well as new scales

for concepts that are particularly relevant in EMs (e.g., guanxi,

ubuntu). We except that marketing research in the U.S. and

other Western countries will also profit from the development of

scales that are cognitively less demanding.

9.2.3. Data analysis

Data collected in EM research have a tendency to have

higher noise levels. This has four important implications. First,

Western standards of reliability (e.g., alpha greater than .7) often

are not met in EMs. These standards were developed, based on

research among relatively more homogeneous, higher educated

groups.5 To what extent is this cutoff criterion realistic for EMresearch, where so little is known about the context and with

considerable within-country heterogeneity? What are the

substantive effects of lower reliabilities?

Second, measurement invariance is an issue in EM research.

In research contexts characterized by higher levels of noise, the

multi-group confirmatory factor analysis framework is likely to

indicate that even partial measurement equivalence is not

achieved. Some research is under way to relax the measurement

equivalence constraint altogether (De Jong et al., 2007). Their

method is applicable to data measured on 5-point agree–

disagree scales. More research is needed, e.g., for other

response scales. In addition, although measurement invarianceis generally recognized to be an issue for survey data, it is

usually ignored for other types of data such as scanner data and

secondary data. Future research should investigate the effect of

lack of measurement invariance on substantive results for

various types of data.

Third, higher noise levels in EM research adversely affect

model fit and significance tests. We need models that are better

able to correct for these influences, and statistical rules-of-

thumb that can be used fruitfully and validly with EM data.

Fourth, within-country heterogeneity is an important prob-

lem in EM contexts. In principle, finite mixture models, random

coefficients regression analysis, and hierarchical Bayesian

analysis can deal with this. However, do the theoretical ad-vantages of these advanced techniques show up in practice,

given that EM data contain more error? Perhaps the simpler but

more robust fixed-effects models work better in practice, just

like metric conjoint analysis and maximum likelihood structural

equation modeling usually outperform their nonmetric alter-

natives although theoretically, the latter should perform better?

9.2.4. Learning

The practice of relying almost exclusively on achieving .05

significance levels in null-hypothesis statistical tests has limited

value in EM research. Instead, we need to use all of the

information at hand, focusing attention also on effect sizes,statistical power, and the cost of “false negatives” in our re-

search. Where our knowledge of marketing phenomena in EMs

is most limited, it seems reasonable to suggest that more liberal

significance and reliability criteria may be appropriate. In a

similar vein, researchers must not disregard effect sizes that

seem small by traditional expectations, but rather seek to

understand the relevance of effects in the context of EMs, which

often include the largest markets in the world. All these efforts

5 In fact, the standard of .7 may also be problematic for research in HICs.

Baumgartner and Steenkamp (2006) show that scale reliability using

conventional procedures such as Cronbach's alpha is substantially over-estimated, once the error term is properly decomposed.




should contribute to the Holy Grail of marketing science —

empirical generalizations.

However, a word of caution is needed here. International

marketing has gained much of its current respect among

marketing academics since researchers started to apply rigorous

data collection and analytical techniques to address substantive

international issues. The EM context should not be used as anexcuse for sloppy research. Rather, given the complexities of

the EM research context, we expect a great future for rigorous

techniques that extract the maximum information with the

minimum data collection burden for the respondent. Surveys in

which questions are adapted based on an individual's previous

responses (Balasubramanian & Kamakura, 1989) and data

collection tasks that use respondents' own vocabulary (e.g.,

Steenkamp, Van Trijp, & Ten Berge, 1994; Steenkamp & van

Trijp, 1996) seem especially useful in EMs. Again, marketing

research in HICs may benefit from this too.

Science is built on the generalizability of our findings across

studies, across cultures, across national boundaries. EMs should be used as a natural laboratory in which theories and as-

sumptions about their underlying mechanisms can be tested.

Confidence in the universality of our findings is greatly

enhanced when strong generalizability is supported, while we

can be encouraged in this respect when (partial) weak gene-

ralizability is established. Where generalizability does not exist,

we learn about the boundary conditions of our theories.

9.3. Conclusion

The hard sciences derive much of their greater respect from

their ability to comeup with generalizations or “laws.” Apart from

using the scientific method, marketing's claim to be a science isgrounded in its ability to develop scientific generalizations

(Hanssens et al., 2001). In this article, we have detailed how

marketing research in EM contributes to marketing science. Just

as contact between European and Islamic societies once resulted

in the great Renaissance which has shaped today's world, we

believe that extending our research and collaborations to these

regions in which the majority of humankind reside will lead to a

renaissance in marketing theory, marketing research, and

marketing practice.

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