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How consumer mindset response and long-term marketing effectiveness differ in emerging versus mature markets

Research output: Contribution in Book/Report/Proceedings - With ISBN/ISSNChapter (peer-reviewed)peer-review

Publication date06/2014
Host publicationBrand management in emerging markets: theories and practices
EditorsCheng Lu Wang, Jiaxun He
Place of PublicationHershey, Pa.
PublisherIGI Global
ISBN (Electronic)9781466662438
ISBN (Print)9781466662421
<mark>Original language</mark>English


This chapter develops a conceptual framework based on different dynamics in consumer attitudes. Empirical analysis seeks to illustrate this framework with emerging and mature market data for the same brands over the same time period. The results generate important implications especially for brand management in emerging markets. First, the emotional brand connection, judged so important in mature markets, is substantially less important than securing the brand’s spot in the consumers’ consideration set. Second, emerging market consumers are more willing to seek out distribution channels for their brands, reducing the ‘compromised choice’ loss of less-than-perfect distribution coverage. Third, price is a double-edged sword in emerging markets: a high price benefits sales through consideration, but hurts sales through liking. The net impact of these influences shapes the long-run sales effects of marketing. In particular, long-run advertising and price elasticity is higher, while long-run distribution elasticity is lower in emerging markets compared to mature markets.