Research Paper Critique and Summaries - Essay Example

Introduction Fam and Merrilees (1998) examine an issue which has tremendously important implications for marketing practitioners. This issue is thepossible influence which culture exerts on consumer preferences of marketing tools. If a relationship is established, this means that marketers would have to align marketing strategies to culture and the associate consumer preferences. More importantly, it means that marketers would be in a position where they can identify the marketing approaches to which a specific culture/group of consumers is most vulnerable to and, accordingly, maximize the effect of their campaigns. It is within the context of the stated that Fam and Merrilees' (1998) study assumes unique importance. Research Design The research study proceeds from the assumption that "countries with a higher score on the collectivism index are more likely to favour the personal selling promotion tool than will countries with a lower score" (248). While this assumption is solidly grounded in the study's literature review, the authors subject it to further empirical examination. Utilizing an experimental design, Fam and Merrilees (1998) distributed a survey questionnaire amongst retail managers in both Australia and Hong Kong. Receiving a 40.2% in Australia and a 16% response in Hong Kong, Fam and Merrillees' (1998) seven-point Likert-scale questionnaire focused on the correlation between collectivist and non-collectivist cultures' marketing approach preferences. The data results validated the assumption, indicating that collectivist cultures betrayed a market preference for personal promotion selling tools. Research Variables The research exploited both dependant and independent variables. Within the context of this research the independent variable was culture. Due to the comparative nature of the study (comparing collectivist to individual/non collectivist culture), culture is the changeable factor in this experiment as, while the questions remain the same, the answers vary in direct correlation to the independent variable - changing cultural context. The dependant variables in this experiment are the marketing approaches. These are direct selling and personable promotion. Preferences for marketing strategy, in other words, are the dependant variables and they are immediately influenced by the cultural context, the independent variable. Validity and Reliability Irrespective of the importance of the issue which a research sets out to investigate, the study would be worthless were its unreliable and its validity suspect. A study is valid if it actually investigates and studies the phenomenon which it identified and defined at the outset and reliable if it is replicable. With regards to this study, it does investigate that which it defined and while no mention is made of its being replicated by other researchers, Fam and Merrilees (1998) attempted to establish validity through the re-examination of their data and the replication of the results using a different method. Added to that, the researchers establish a chain of evidence throughout the study, verify the information collected and, accordingly establish construct validity. The study emerged as reliable and valid from that perspective. Evaluation When evaluated in terms of the criterion of utility, this article emerges as highly valuable because, in an era of globalisation and the internationalisation of business, this article provides marketers with the information they need to effectively address cultures. They identify the marketing tools and techniques which specific cultures are most responsive and susceptible to. In terns of the criteria of replication, the article is only partially satisfactory. In brief, even though the researchers make an effort to replicate their study for the purposes of validating their results, they do so to a very limited degree. They re-analyse the data using an alternate method and this does not fully satisfy the criterion of replication. Lastly, with regards to the criterion of generalization, the results of this study are generalisable within the marketing context because of its cross-cultural nature. Introduction Erramilli and Rao's (1993) article is highly relevant and pertinent to the current global business environment. Globalisation is characterised by the internationalisation of firms through entry into foreign markets and this is precisely the question which the article looks at. In more specific terms, it examines the question of mode of entry, critiquing the traditional transaction-cost model which firms popularly employ for the determination of the aforementioned. The authors find that the transaction-cost model does not adequately address all the factors which must be taken into account when deciding on mode of entry and, accordingly, propose a set of adjustments. Consequent to its subject matter and provision of a guideline decision-making pertaining to mode of entry, Erramilli and Rao's (1993) article is unquestionably important. Research Design As the researchers clarify, the purpose of their study is to "investigate how service firms choose between full-control and shared-control entry modes" (Erramilli and Rao, 1993: 20). In order to satisfy this purpose, the researchers adopted a survey approach, following from which they subjected the primary data to a quantitative analysis. The survey instrument was comprised of 381 factors which govern, or have the potential to influence, entry mode decision. The researchers contend that their survey questionnaire, which they subsequently mailed to a total of 463 service sector companies, covered every possible aspect of foreign market entry mode. The initial response rate was 44.3%, with most of those who refused to participate stating that they were not involved in international business and hence, had no means of answering the survey. Of those who agreed to participate, only 114 completed the survey. Those who withdrew did so because they believed that the survey instrument was too lengthy or because much of it did not represent their entry-mode decision-making framework. The results of the survey indicated that the authors were correct in their initial assumption as the traditional cost-transaction model was not a satisfactory entry-mode decision-making tool. Research Variables Erramilli and Rao's (1993) study employed both dependant and independent variables. The dependant variable in this study was entry-mode choice, as in whether firms select a full or shared-control entry mode into foreign markets. The independent variables are capital intensity, firm size, cultural distance and country risk. While the authors explain that they employed a long list of independent variables, the mention the aforementioned ones as the most important. Validity and Reliability While, as indicated in the introductory section to this critique, the issue investigated in this article is important and within the context of business internationalisation and globalisation assumes immeasurable importance, its worth is ultimately dependant on its reliability and validity. In other words, irrespective of the importance of the issue, the study itself is only valuable if its findings are valid and the data in question reliable. The authors established both through by repeating their calculations for determination of reliability and by manually and electronically checking completed surveys for assessment of validity of data. Evaluation From the perspective of the criterion of utility, this study is quite important because of its practical and theoretical implications. As regards the first, the article contributes to a more informed managerial decision regarding mode of entry and in relation to the second, expands upon current theory pertaining to the same, and especially to transaction-cost models. In relation to the criterion of replication, the article is not satisfactory as the researchers do not devote the attention necessary to replication. They double-check their results but they make no effort to replicate the study. Lastly, and as pertains to generalisation, the researchers admit that this is one of the study's limitation. The sample size is hardly sufficient for the generalisation of findings across the service industry in the United States. Read More