Bill Merrilees

Direct Selling in the West and East: The Relative Roles of Product and Relationship (Guanxi) Drivers

Abstract Not a lot is known about direct selling and especially the newer forms of direct selling, such as multi-level selling and Internet selling. What drives the effectiveness of these systems? The current study takes up one specific aspect of this question by comparing the effectiveness drivers from an Eastern country (China) and a Western country (Australia). Are these drivers different or similar between countries? To operationalize this question, we use a study of direct selling in China by Luk, Fullgrabe, and Li (1996) as our benchmark. We replicate this study in Australia, making a few minor adaptations and some minor extensions, and we compare the effectiveness drivers in the two countries. The study concludes that in each country both product elements and relationship elements affect direct selling effectiveness, but in relative terms, relationship elements are relatively more important in China. This finding is consistent with other studies comparing Western and Eastern cultures. In China the elements of relationship marketing are more coherent and form a holistic configuration known as guanxi. In Australia there are several separate dimensions (reciprocity, trust, friendliness, and good personal relationship) of direct selling relationship marketing. Cultural differences seem to be the main reason for this contrast between the samples from the two countries.

Building generalizable SME international marketing models using case studies

Builds a relevant model(s) of SME international marketing given the lack of well‐accepted theories to date. Twelve case study firms were analysed using a semi‐structured survey protocol. Five of the cases are described in depth in the text and summaries are given of the other seven. Four features including niche market power and control over client and agent selection are used to define the two models that emerged from our study: a sales‐driven model and a relationship‐driven model. Four firms were attributed to the sales‐driven model, including firms that have been exporting for a long time. The paper breaks new ground by attempting to develop holistic models of SME international marketing, but importantly in a way that is firmly grounded in the operations, decisions and behaviour of real‐world SMEs.

Cultural values and personal selling: A comparison of Australian and Hong Kong retailers’ promotion preferences

This paper compares the promotional practices and perceptions between two countries of disparate cultural backgrounds, namely Australia and Hong Kong. The paper argues that the preference for a particular promotional tool is influenced by the degree of cultural orientation as measured by Hofstede’s collectivism index. The central hypothesis is that countries with a higher score on the collectivism index are likely to favour personal selling promotion tools than will countries with a lower score. This hypothesis is tested with two separate samples of clothing and shoe retailers from Australia and Hong Kong. The hypothesis is supported from the statistical results.

Business service market segmentation: the case of electrical and mechanical building maintenance services

Identifies market segments for a category of business services, namely building maintenance services. Hitherto there has been little research on business service segmentation. Data has been collected through written surveys and analysed by factor analysis and cluster analysis. Although only one type of business service is analysed, the method is applicable to other types. Four market segments were identified, with respective emphasis on customer focus, relationship seeking, price sensitivity and high expectations. The study indicates the value of segmentation analysis as a planning tool for business services, which is the newest and fastest growing sector in business‐to‐business marketing.

Exploring the relevance of strategic promotion management approach among small independent retailers

The purpose of this paper is to examine whether strategic promotion management approach is relevant to the small independent retailers. To address this question, we contrasted the promotion approaches of 397 small independent stores and 115 large retailers. The data were collected from clothing and shoe retailers across eight Australian capital cities. The key finding is that they do in fact adapt their promotion mix to suit their strategic needs. Thus although small independent retailers may lack the financial resources and managerial expertise of larger retailers, they have been found to possess some degree of sophistication in respect to their promotion mix management.

Entrepreneurial Internationalisation: The Role of Distributor/Client Relationships

This paper examines the nature of SME (Small to Medium Sized Enterprise) international marketing strategies, using a framework developed by Merrilees and Tiessen (1999). This framework highlights two main types of marketing strategies: relationship‐driven and sales‐driven. The original study was developed using case studies of Canadian SMEs exporting to Japan whilst this current paper employs a quantitative survey of 182 SMEs. The addition of this quantitative sample enables a more analytical approach to be employed to aid our understanding of the particular nature of SME relationship marketing in an international context. Two different methodologies, factor analysis and cluster analysis are used for this purpose. Finally, the paper investigates the link between relationship activities and export performance. The paper confirms the usefulness of the Merrilees‐Tiessen classification of SME international marketing strategies, develops a new classification of SME international relationship marketing, and establishes a link between superior relationship activities and superior export performance.

Strategic marketing by change agents in Poland: the case of domestic marketing consulting firms

Focuses on the marketing strategies used by Polish marketing firms and their role as change agents after the fall of communism and the transition to a market economy. A survey of 93 marketing consulting firms in four large Polish cities was conducted in 1996‐1997. The results suggest that this sector is thriving, and the two most important success factors are on‐time delivery and high service delivery.

What Capabilities Do Small Retailers Need to Compete Against Retail Giants

We argue that retail competition, both between small retailers and between small and large retailers is best analysed in the context of strategic groups. This means that the small retailer should ascertain who else is using a broadly similar marketing approach and focus on this group. The key contribution of the research include the identification of four strategic groups using cluster analysis and the identification of organizational capabilities used by small enterprises in each group in the apparel retail industry. Using this strategic group approach we find that small retailers in each of the four strategic groups are using very different strategies and are supporting these strategies with different capabilities. The peer provides the knowledge to enable small retailers compete more effectively in tomorrow’s very competitive retail environment

15.4 Issues in International Retailing: Contemporary Issues in Retailing

This paper reports on the empirical testing of a fundamental tenet of marketing theory, namely that different marketing strategies require different organizational capabilities. That nexus is explored using a study of apparel retailers in Eastern Australia. The key contributions of the research include the identification of four main components of retail marketing strategy using factor analysis and the identification of organizational capabilities used in the apparel industry. The final contribution is the exploration of managerial implications. The findings suggest that there is scope to test the same nexus in other industries and in other countries.

Retail Promotion Practices in New Zealand, Australia and Portugal - A Comparison

This paper investigates the detailed promotional attitudes of retailers across three countries. The key aim was to see whether the perceptions of owner-managers of nine commonly used promotion tools varied across country. Both perception and budget data was examined, as well as selected combinations of promotion tools.