The Lexus or the Olive Tree? Trading Off Between Global Convergence and Local Divergence

International Journal of Research in Marketing, Forthcoming

42 Pages Posted: 1 Feb 2010 Last revised: 17 Feb 2010

See all articles by Koert van Ittersum

Koert van Ittersum

University of Groningen

Nancy Y. Wong

affiliation not provided to SSRN

Date Written: February 1, 2010

Abstract

To operate effectively in global markets, marketing managers need to understand that consumer response to globalization may be more complex than is commonly assumed. We examine a proposed conceptual framework to describe consumers' responses to globalization through a cross-national survey on consumer support for a pan-European government policy aimed at countering global convergence by preserving local cultural divergence. We find that consumer support for the policy increases with beliefs about the policy’s efficacy in preserving the authenticity of cultural products and protecting their local economic production structures, while it decreases with beliefs about policy-induced price increases. The national cultural values of individualism and masculinity influence this tradeoff between cultural and economic considerations. These findings are further corroborated by secondary data on 22 EU countries.

Keywords: Consumer Behavior, Cross-cultural and International Marketing, Globalization, Public Policy, Focus groups, Survey research, Secondary data, Regression

JEL Classification: C3, C4, D4, D11, D12, F, J18, M3

Suggested Citation

van Ittersum, Koert and Wong, Nancy Y., The Lexus or the Olive Tree? Trading Off Between Global Convergence and Local Divergence (February 1, 2010). International Journal of Research in Marketing, Forthcoming . Available at SSRN: https://ssrn.com/abstract=1545903

Koert Van Ittersum (Contact Author)

University of Groningen ( email )

Postbus 72
9700 AB Groningen
Netherlands

Nancy Y. Wong

affiliation not provided to SSRN ( email )

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