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When marketing strategy meets culture: the role of culture in product evaluations

  • Original Empirical Research
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Abstract

This research investigates how national culture interacts with marketing strategy to influence consumers’ organic post-consumption satisfaction ratings of entertainment products rich in cultural content. Drawing upon a communication theory framework, we develop hypotheses concerning multiple interaction effects between culture and marketing strategies on consumers’ product evaluations. We test these hypotheses by analyzing consumer reviews of 260 movies in 25 country markets. In support of our hypotheses, we find that the cultural congruence between the product and the market improves consumer reviews, and that the effect is stronger in cultures characterized by collectivism, femininity, and uncertainty avoidance, as well as for products more heavily loaded with cultural content. In addition, we find that the negative effect of delay in product launch timing weakens for cultures characterized by long-term orientation, and that the positive effect of advertising spending on consumer evaluations is stronger in cultures characterized by high power distance belief. These results provide practical insights into how managers should make decisions concerning product design, launch timing, and advertising strategies in international markets.

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Notes

  1. Learning effect refers to the fact that if the product is successful in the lead country, then the risk associated with the innovation is reduced, thus contributing to an accelerated diffusion of the product in the lag countries.

  2. We do not include price, because the movie industry practices uniform pricing. In addition, theater ticket prices are rarely under the control of firms that produce movies.

  3. For each consumer review, IMDb provides the information about where the writer of the review comes from.

  4. A Wu-Hausman endogeneity test fails to reject the hypothesis that launch timing is exogenous (F = 1.141, p = 0.32).

  5. Significant interaction effects with insignificant main effects frequently happen. According to the hierarchy principle, the researcher should include the main effect to test an interaction effect even if the main effect is not significant. The interpretation of interaction term remains the same regardless of whether the main effect is significant or not (James et al. 2013).

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Correspondence to Reo Song.

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Constantine S. Katsikeas served as Area Editor for this article.

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Table 5

Table 5 List of countries, data sources for consumer evaluations*, and summary of consumer evaluation data

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Song, R., Moon, S., Chen, H.(. et al. When marketing strategy meets culture: the role of culture in product evaluations. J. of the Acad. Mark. Sci. 46, 384–402 (2018). https://doi.org/10.1007/s11747-017-0525-x

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