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Explaining cross-country differences in price and distribution effectiveness

Author: Gatignon, Hubert ; Vanden Abeele, P.INSEAD Area: Marketing Series: Working Paper ; 95/40/MKT Publisher: Fontainebleau : INSEAD, 1995.Language: EnglishDescription: 43 p.Type of document: INSEAD Working Paper Online Access: Click here Note: Previous version 95/31/MKTAbstract: We test whether, and explain why, the effectiveness of marketing instruments such as price and distribution coverage varies across countries. The issue is important when marketing a product in multiple countries. Despite much normative discussion about the globalization of markets and the desirability of international marketing program standardization, little analytical (compared to descriptive) empirical research to date addresses the issue. The case for standardization of allocation of marketing budgets to marketing mix variables rests on the validity of the assertion that variations in marketing mix effectiveness across countries are small. We provide evidence about the degree of similarity in market response function coefficients among European countries in one established consumer convenience good market and analyze potential reasons for such differences. Notably, we find indication of substantial variations in marketing mix effectiveness in a manner related to level of economic maturity
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Previous version 95/31/MKT

We test whether, and explain why, the effectiveness of marketing instruments such as price and distribution coverage varies across countries. The issue is important when marketing a product in multiple countries. Despite much normative discussion about the globalization of markets and the desirability of international marketing program standardization, little analytical (compared to descriptive) empirical research to date addresses the issue. The case for standardization of allocation of marketing budgets to marketing mix variables rests on the validity of the assertion that variations in marketing mix effectiveness across countries are small. We provide evidence about the degree of similarity in market response function coefficients among European countries in one established consumer convenience good market and analyze potential reasons for such differences. Notably, we find indication of substantial variations in marketing mix effectiveness in a manner related to level of economic maturity

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