Transcript Export Development Policy: The Marketing of U.S. Food

A Road to Meaningful Marketing Research
(or how communication, marketing and you can save the world)
Clifford J. Shultz, II, Ph.D.
President, International Society of Markets and Development
Editor, Journal of Macromarketing
Professor and Marley Foundation Chair
Arizona State University
http://agb.poly.asu.edu/cjs
[email protected]
480 727 1242
Thanks to Dr. Pierre McDonagh and the DCU CCS.
Scholarly Illustrations
Shultz, C. (1993), “Situational and Dispositional Predictors of
Performance: A Test of the Hypothesized Machiavellianism x Structure
Interaction Among Sales Persons,” Journal of Applied Social
Psychology, 23 (6), 478-498.
Shultz, C., Burkink, T. Grbac, B. & Renko, N. (2005), “When Policies and
Marketing Systems Explode: An Assessment of Food Marketing in the
War-Ravaged Balkans and Implications for Recovery, Sustainable
Peace, and Prosperity,” Journal of Public Policy & Marketing, 24 (1),
24-37.
Shultz, C., Hughner, R. & An Van Khanh (WIP), “Do Consumers Care
about Producers (and Should They)? Illuminations from the Global
Coffee Industry” (with An Van Khanh & Renee Hughner).
Shultz, C. & M. Holbrook (1999), “Marketing and the Tragedy of the
Commons: Synthesis, Commentary, and Analysis for Action,” JPP&M,
18 (2), 219-229.
Situational and Dispositional Predictors of Performance:
A Test of the Hypothesized Machiavellianism x Structure
Interaction Among Sales Persons
Machiavelli (1532)
Machiavellian: evil vs. pragmatic (necessary)
The Mach Scales (Christie and Geis 1970)
Measures one’s orientation toward Machiavellianism
Effects on Performance
Sample Items
Most men are more concerned about
making a good living than satisfying
their conscience
All men are ready to change masters in
the hope of bettering themselves
Subset of the Study
2 x 2 quasi experiment:
Mach X Organizational Structure
Sample: sales reps
DVs: Sales Commissions & Clients
Broad H: Mach facilitates performance in
unstructured organizations (cf. Hunt & Chonko 1984)
“Profound” Marketing Implications…
Sales Force Selection
Incentive Structures
Ultimately Wall Street Firm’s Performance
From Wall Street to War and Reconstruction…
40+ countries involved in ethno-political conflict
22+ million people are refugees or displaced persons
35,000 infants die each day from preventable causes
About half the world’s population lives in poverty
Over half the world’s population thrust into a new
economic model and many struggle to thrive in it
… Marketing as Realpolitik
Sources: UNDP, UNHCR, World Bank, UNICEF, CIA, Peace Pledge Union, Japan Platform, et al
Foundations for Explication of Transition Economies
(Shultz & Pecotich, Journal of Public Policy & Marketing, 1997)
Administration Systems
Political Forces
1. Pragmatism/ Ideology
2. Allocation
3. Intervention
Natural Forces
1. Resources
2. Condition
3. Capacity
Macroeconomic Forces
1. Ideology
2. Performance
3. Demand
Social Forces
1. Culture
2. Interaction
3. Character
Knowledge System
1. Documented
2. Independent
3. Applicable
Education System
1. Research
2. Teaching
3. Practice
Executive System
1. Knowledge
2. Motivation
3. Implementation
Marketing System
1. Consumers
2. Infrastructure
3. Performance
Welfare Outcomes
1. Consumers
2. Society
3. Nations
Balkans / Indochina
Complex and culturally diverse
History of foreign occupation and military conflict
Recovering from recent, brutal wars
Large economic contributions from agribusiness
Opportunity to discover “best cases”
Confluence: East & West, Cultures and Empires
Research Teams in the Field
Study Objectives
Assess the Agribusiness system
Invoke policy recommendations to enhance
socioeconomic stability through marketing and
enterprise development…
“Two nations trading bushels are less likely to
trade bullets” (Kohls & Uhl 1998; see also Lodge 2002)
Methods
Longitudinal interpretive study
Structured viz. food channels in Bosnia-Herzegovina,
Croatia, Kosovo(a), Macedonia (FYROM), from farm to
fork
Site observations (e.g., Dahringer 1983; Geertz 1973; Lincoln & Guba 1985; Belk,
Wallendorf, & Sherry 1993) and depth interviews (McCracken 1988)
Triangulation used to insure data trustworthiness
• Government, business, NGOs, scholars, consumers
Replication
Intensive microcycle site-immersion to glean “Emergent
Themes” (Shultz, Pecotich, & Le, 1994)
Emergent Themes
Market-driven renaissance, from farm to fork
Food Marketing is a conduit to peace & stability
Tycoons & entrepreneurs emerging as
innovators, channel captains
Agribusiness is a major strategic initiative
Resettlement, Employment, Sustainable development,
Global Integration…
An International Business Education and Export Development Project:
"Peace and Prosperity through Food and Agribusiness Marketing"
www.poly.asu.edu/balkans ; Balkans Symposium Recap
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Agencies, departments and institutions that have provided or currently provide support for various
aspects of this project, include, the United States Department of Education, The Croatian Ministry of
Science and Technology, The US State Department, Arizona State University's Morrison School of
Agribusiness and Resource Management (MSABR), the American Farm School, the Desert Wheat
Growers Cooperative, the Arizona Grain Research and Promotions Council, the STAR Center, the
University of Zagreb Faculty of Economics, the University of Rijeka, University of Sarajevo, University
of Ljubljana, University of Tuzla, University of Innsbruck, and the University of Split
You are visitor number
Onward, to Vietnam…
… Dak Lak and
the coffee fields
Vietnam’s Coffee Industry
Metaphor for systemic analysis
& change
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map of the areas
planted coffee in vietnam
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land reform
Market pricing
“What they want, as much as
they want, where they want…”
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After doi moi, Vietnam’s coffee
industry developed rapidly:
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Amazing “success”
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Arabica
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Robusta
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Phó Quèc
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Vietnam’s Coffee Industry
Initial Market Appraisal
Poor infrastructure
Too much focus on shortterm profit making
Commodity; no
“brand/image” building
Lack of marketing
expertise
The Coffee Purchase Consumer Model
(© Shultz, Hoang Thuy Bang & Pecotich 2002)
Basic Type
Arabica versus
Robusta
Quality
Price
Value
Intention
Processed Type
Roasted, Soluble &
Decaffeinated
Brand
Global, Domestic,
Private
Country-of-Origin
Domestic, Foreign
The Coffee
Product
The
Consumer
Consumer
Judgments
Quality
Price
Language
Associations
Cultural
Language
Ethnocentrism
Knowledge
Choice
Have begun experiments to examine relationships in
model (e.g., Hong, Pecotich, Shultz 2002; Schmitt et al 1994; Troutman & Shanteau 1976)
Methods: 2 Quasi-experiments
Quasi-experiment 1 (2 x 3)
Language/labeling effects
n = 60: 30 Vietnamese & 30 Americans
Nested variable: nationality
IV: language labeling: Vietnamese, English-Vietnamese,
and English
DV: attitudes toward product; intention to buy
Some Results- Quasi-experiment 1
Means: attitudes toward quality
Means: intention to buy coffee
5
5
3.8
4
3
4.2
4
3.9
4
3.6
3.6
3
2.7
3.3
2.6
2.6
2.6
2
2
2
Vietnamese subjects
American subjects
1
0
Vietnamese subjects
American subjects
1
0
English
EnglishVietnamese
Vietnamese
English
EnglishVietnamese
Vietnamese
Methods
Quasi-experiment 2 (2 x 2)
Investigate the effect of country-of-origin on
consumer perceptions of quality
n = 40 subjects: 20 VN and 20 Americans
Nested variable: nationality
IV = “country of origin” (taste test): VN vs. US
DV = perceptions of quality; intentions to buy
Some Results- Quasi-experiment 2
Means: attitudes toward quality
5
4
3.35
3
Means: intention to buy coffee
3.5
3.3
4
2.75
3
3.65
3.2
3.4
3.15
2
1
Vietnamese subjects
American subjects
2
1
0
American coffee
Vietnamese coffee
Vietnamese subjects
American subjects
0
American coffee
Vietnamese coffee
Brand Management
Implications
Consumer-based export development
Segment and target
Develop meaningful brand(s)
Partner with key
players in supply chain
National Strategic
Implications:
Must attract FDI
Must invoke more
progressive policies
Must improve marketing
skills
Must re-frame concept of
“strategic”
From War to Reconstruction: Marketing as Realpolitik
Level of Destruction
Degree of Despotism
Transition – how far?
Geographic luck
Involvement of Diaspora
Access to capital (influence)
Entrepreneurial ethos
Target “Global” Consumers
Seek Anchors in Global Systems…Transparency
Knowledge / Marketing Skills
Broader pro-social issues & contributions: Buying into the
greater good; integrating and managing systems, over time, for
the best outcomes for the largest number…Macromarketing
Must frame thinking in terms of social
traps, or commons dilemmas
Marketing and the Tragedy of the
Commons: Synthesis, Commentary, and
Analysis for Action
JPP&M (1999), 18 (2), pp. 219-229
Clifford J. Shultz II
Arizona State University
&
Morris B. Holbrook
Columbia University
JPP&M Special Session: Award Winning & Influential Articles
AMA Summer Educators’ Conference, August 2003
Tragedy of the Commons / Social Traps
The most eternal, omnipresent and
insidious of problems…
Phenomenon whereby “rational” selfish
decisions or rewards produce undesirable
long-term consequences for the group as a
whole.
Marketing and the Tragedy of the Commons
Marketing and the Tragedy of the Commons
Contemporary Examples
Weapons Sales / War
Air Pollution
Deforestation
Black Outs
Etc.
Marketing and the Tragedy of the Commons
Philosophers & Ethicists
Behavioral & Biological Scientists
Governments & Consumers / Stakeholders
Marketers & Marketing Institutions
S&H: Review, Synthesize & Suggest*
Synthesis of Solutions
Regulation: fiat / taxation / user fees
Organization
Social responsibility
Communication
Figure 1. Stakeholder Negotiation and Compliance Model for
Commons Management
Impact on other commons,
e.g., air, watersheds, soil, etc.
Stakeholders
Redwood
Commons
Regulators
Activists
Consumers
Lumber Co.
Monitoring/
Verification
Negotiated agreement
for commons management
Staying Power / Impact
Social dilemmas are the most eternal,
omnipresent and insidious of problems.
Affect all policy & marketing decisions (?)
Interdisciplinary, integrative & inclusive
Solutions-oriented
Provides testable propositions
Research Opportunities/Challenges
Empirical Tests of Propositions
Weapons Markets
Developing Economies: FDI vs. Aid vs. No
Engagement
Farm & Industry Subsidies* (“Moral Hazards”)
Supporting Corrupt Governments / Oil Regimes
Poverty & Wellness
Crime (e.g., Enron)
Trade agreements*
IPR*
Pollution & Resource Management
Career Management: Meaningful Research
Final thoughts
What’s the question, why is it
important, what’s your contribution to a
solution.
Extend others vs. Create a niche/area.
Pursue your passions and you will never
work a day in your life.
Research Opportunities/Challenges
Empirical Tests of Propositions
Weapons Markets
Developing Economies: FDI vs. Aid vs. No
Engagement
Farm & Industry Subsidies* (“Moral Hazards”)
Supporting Corrupt Governments / Oil Regimes
Poverty & Wellness
Crime (e.g., Enron)
Trade agreements*
IPR*
Pollution & Resource Management
Career Management: Meaningful Research