Article Review_using Product V1 Dawit Final

8/3/2019 Article Review_using Product V1 Dawit Final

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Article Reviewon

Using Product and Retail Choice

Attributes for Cross-NationalSegmentation

Larry LockshinEhrenberg Bass Institute for Marketing Science, University of South Australia,

Adelaide, Australia, andEli Cohen

Guilford Glazer School of Business and Management,

Ben-Gurion University of the Negev, Beer Sheva, Israel and

School of Marketing, University of South Australia, Adelaide, Australia

PREPARED BY: -

Abdu Kedir GSE/0062/03

Daniel Altah GSE/0076/03

Dawit Kebede GSE/0079/03

Dereje H/Gabriel GSE/0080/03Elias Negash GSE/0081/03 1


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Agenda

Summary of article: Key points

Review of articleAssessment based on cited article review criteria

Evaluation of article Grading based on sated criteria

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Summary of Article

Paper type :- Research paper

This research adds to our knowledge about how to conductsegmentation studies across international markets. This paper

contributes to marketing knowledge by using retail choiceattributes including shelf information to segment wine consumersacross 11 very different countries

The use of product attributes and key retail communicationfeatures resulted in a clear and useful segmentation schemerevealing different decision making heuristics or styles in eachsegment.

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Contd

Purpose:

The purpose of this research was to look at consumerdecision-making styles or heuristics for wine product in

cross-national segmentation using choice attributes includingretail displays and communication methods.

This study aims to use product attributes and retail display

information for wine to develop cross-national segments forwine markets

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Contd

Design/Methodology:

The study used consumers choice in wine stores to developsegments of consumers, based on the relative importance of13 factors consumers use for the retail purchase of wine.

The 13 factors selected were : the origin of the wine, Grapevariety, Medal/award, Brand name, Matching food, Alcohollevel below 13%, Information on back label, I read about it,

Tasted the wine previously, An attractive front label,

Promotional display in-store, Someone recommended it,Information on the shelf

Data are collected from 11 countries using convenience

sampling method, seven languages on five continents. 5


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Contd The target for this research were wine drinkers in each

country. The Sampling was limited to those consuming wineat least once per month, so the data represented only winedrinkers

Best worst scaling (BWS) and latent class analysis (LCA) wereused to develop the clusters.

BWS is the cognitive process by which respondents

repeatedly choose two objects in varying sets of three ormore objects that they feel exhibit the largest perceptualdifference on an underlying continuum of interest

LCA extract several relatively homogeneous groups of

respondents from heterogeneous data. 6


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Contd Findings :

Three-cluster structure/segments provided a straightforwardand robust segmentation across the 11 countries(Australia,

Austria, Brazil, France, Germany,Israel, Italy, New Zealand,Taiwan, the UK, and the USA)

The three segments reveal different ways in which consumerschoose wines:

1.Cognitive-based segments : focuses on extrinsic factors which

indicate wine quality and taste based on the cognitive

understanding of how these factors relate to the actual wine. Theyconsider objective information on the label. The key attributes arethe grape variety, the origin of the wine, the brand , medals and

awards, which can be seen as objective measures of quality

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2. Assurance-basedsegments: consists of attributes indicatingprevious knowledge (tasted before) or recommendation by

someone else

3.In-store promotion-based segments: focuses on the package

and display and is named in-store cues. These people do notcognitively assess the information, nor use previous experiencein the purchase of wine products

Research limitations:-The samples that have been taken are convenience-based

and do not represent the population of wine drinkers in

each country. 8


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Contd Practical implications :

The three segments found in this study provide clear guidelines forwine marketers depending on whether they work for small or large

wine companies.

Wine marketers concerned with cognitive segments or decision-

makers should clearly show the attributes ( like grape, variety, origin,

brand name, and awards) on the label, as well as in their marketcommunications.

The second biggest segment Assurance-basedsegments focuses onrisk-reducing strategies, such as recommendations and previousexperience. Marketers aiming at this group need to provide sampling

and other means for potential wine buyers to have a taste of the wine,

such as by-the-glass promotions in restaurants.

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Contd The third segment that is the In-store promotion-based segments

suggests marketers use displays, attractive front labels, and back

labels to help them make their wine choice decisions

Originality: This research demonstrates that product attributes and retail

communication devices like labels and displays can be used for

cross-national segmentation.

Key words:

Retail trade, Marketing, Market segmentation

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Review of the article

Title of the article:A title ought to be well studied, a definite and concise indication

of what is to comeThe title of this article is:

Using product and retail choice attributes for cross-nationalsegmentation

The reviewers believe that the title given for this article is better ifit would have been

Using product and retail choice attributes for cross-nationalsegmentation in the case of wine market


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Abstract

An abstract is a mini report within the whole article report. Itcontains all the relevant and important point in a clearly andconcisely manner. It is not simply a brief part of the entirereport but it is a refinement of the research project outlining

the methodology, major findings, and conclusions. In this article the researchers presented the purpose of theirstudy, the methodology they used to undertake their research,the main findings of the research, limitations, practicalimplications of the findings, originality of the study, the key

words included in the study, and the paper type in the abstractpart of the research. Hence the researchers sufficiently presented the main contents

of their article in the abstract part of the paper


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Objective of the article

The objective of a research project summarize what is to beachieved by the study

To become a good research the research objective should besimple, specific and measurable

The objectives of a research delineate the ends or aim whichthe inquirer seeks to bring about as a result of completing theresearch undertaken.

To this end the researchers clearly and exhaustively presented

the objective in the abstract part of the research.


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Contd

The objective of the study is : To use product attributes and retail display information to

develop cross-national segments.

The reviewers believe that some amendments need on the

objective if it would have been To use product attributes andretail display information to develop cross-national segments for

wine marketers.

The entire article tuned according to these objectives and the

flow of the article is very interesting .

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Research Question

With respect to research questions, though the researchersdid not clearly outline the research question distinctively inthe article.

Statement of the Problem As part of the introduction part in the article , the statement of

the problem is clearly stated as:

In an increasingly globalised world, cross-national comparisonsare necessary for good marketing, but are often difficult to applyin practice.Previous research has focused more on brand andproduct usage and demographics as segmentation variables,

which often resulted in hard to characterize segments that werenot easy to implement across different countries


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Literature review A study should mention different theoretical ideas from contributing

to further exploration or explanation of the study problem statement .

It also analyze and compare previous study in light of the studymethodology

The literature review part of the article is clearly written as one distinctsection. The authors have tried to include relevant studies in the areacited along in the various section of the article.

Some literatures were discussed on the area of the researchtopics

Literature on the following area were reviewed:

Consumer decision-making heuristics

Cross-national segmentation

Factors in wine choice


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Cont

Hence, the researchers summarized previousstudy made in line with their study

They also analyze and compare previous studyand they put their arguments clearly.

Their literature contribute additional knowledgefor cross-national segmentation .

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Methodology

The researchers made Descriptive type of research. The Data collection was made by a self

administrated survey usingBest worse scaling

Best-worst scaling is a measurement method basedon a theory of how humans choose the two mostextreme items in a set of three or more items.

BWS assumes that a person examines the options ina set, and chooses the pair of options that exhibitsthe largest differences on the underlying subjectivescale of interest".

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Cont.

Respondents were asked to indicate the mostand least important of 13 factors used in

choosing wine from a retail store.

Population definitionThe target populationwas wine drinkers in the

11 countries (Australia, Austria, Brazil, France,

Germany, Israel, Italy, New Zealand, Taiwan,the UK, and the USA)

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ContSampling techniques

Sampling is limited to those consuming wine at least oncein a month

The sampling technique to select the retail store is made by

the researchers conveniencethree stores were selectedfrom the largest metropolitan area of the countries.

A systematic random samplingmethod was used to selectindividual respondentsevery third customer exiting the

store.

Sampling technique and the sampling frame has beenclearly stated in the article

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Cont

Sample size 2,744 individuals from the 11 countries

The sample taken was not representative

enough to the research objective for thefollowing reasons :

o The samples are convenience based

o In some countries only three retail storeswere selected

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Cont

Data collection method The questionnaire was a self administered

survey

The data collection was collected by trained datacollectorssent with data collection guide.

The survey was translated by a different native

academic speakers from English into each of thelanguages for the 11 countries. It was then backtranslated and corrected for any errors before

the final version was used. 23


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ContThe data was analyzed using a latent class

analysis to develop the segments

Since this study used Best Worst measures ofhow consumers choose wines, the premise is

that the population consists of a finite andidentifiable number of groups or segments, eachcharacterized by homogeneous importance

weights for wine choice attributes. Segmentation is then based on how well each

cluster predicts the choices made based on the

importance weights. 24


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Cont.

In general ,Applying BWS and LCA enabledthe researchers to achieve segmentingconsumers cross-nationally based on choice

criteria.

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Results and Findings

The target for this research was wine drinkers in each country.Those consuming wine at least once per month.

To collect the data the survey was translated by a different nativeacademic speaker from English into each of the language for 11countries.

In each country at least 3 stores were used to collect data in thelargest metropolitan area.

Respondents self-completed the questionnaires under thesupervision of trained staff in each location.


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Contd

Tasting the wine previously is most important for 8 of the 11countries, with Austria, Brazil, and France each having different mostimportant factors.

Cluster 1is labeled as cognitive cues and focuses on extrinsicfactors which indicate wine quality and taste based on the cognitiveunderstanding of how these factors relate to the actual wine. Thesepeople choose their wines by considering objective information on thelabel.

The key attributes are the grape variety, the origin of the wine, thebrand, and medals and awards, which can be seen as objectivemeasures of quality.


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Contd

Cluster 2 is labeled assurance cues and consists of

attributes indicating previous knowledge (tasted before) orrecommendation by someone else. These wine purchaserschoose based on previous experience or recommendation andseem to be avoiding the risk of choosing an unknown wine.

Cluster 3 focuses on the package and display and is namedin-store cues. These people do not cognitively assess theinformation, nor use previous experience. They use shelf-basedpromotions and the packaging to make their decision.

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Contd

The biggest segment in every country except Taiwan and the US(and tied for largest in Israel) is that of cognitive-based buyers.

These buyers read the label and make decisions based on grapevariety, origin, brand name, and awards. Interestingly, the grapevariety is normally used on wines from the New World, but notwines from traditional wine producing countries, such as Franceand Italy.

Wine marketers concerned with cognitive decision-makersshould clearly show these attributes on the label, as well as intheir market communications.


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Contd

The second biggest segment focuses on risk-reducing strategies,such as recommendations and previous experience.

Marketers aiming at this group need to provide sampling (whereit is legal) and other means for potential wine buyers to have ataste of the wine, such as by-the-glass promotions in restaurants.

The third segment is the smallest, but represents a substantialgroup of buyers in Austria, Germany, Brazil, the UK, and the US.

These buyers use displays, attractive front labels, and back labelsto help them make their wine choice decisions.

More research needs to be conducted in order to provide winecompanies with clear ideas of label designs for specific segmentsof consumers.


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Contd

Generally the researchers collects the data whichhelp them to attain the purpose of the study.

The collected data analyzed based on variety oftechniques, and each technique is described inthe relevant section.

The reliability of the data also checked and it

shows good internal reliability.

But we have a reservation on the number ofrespondents and retail shops.

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Managerial implications A different interpretation of the results would suggest wine

marketers could develop a range of packaging and promotions toreach each of the segments simultaneously.

In a sense this is mass marketing, but with a varied assortment ofcues being focused on the shelf in order to attract buyers, whouse different purchasing strategies. The segments seem to differ

in size between countries. Smaller wineries, which do not have the resources to follow this

strategy, could decide to target only specific countries with asingle marketing program. In contrast larger wineries wouldlikely have a brand portfolio across multiple countries with

different wines aimed at the different segments. There are also implications for channel strategy, where wines

aimed for supermarket or discount shelves would be packageddifferently to other brands sold through independent retailers.

At the moment this does not seem to be the case.


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Contd

The major purpose of the research is to providepractical recommendation to managers.

Hence, we believe that the researchers givesbrief recommendations to managements basedon their findings, even the results limited in their

generalizability to the condition tested.

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Conclusion and Recommendation

As clearly stated in the Abstract, the purpose of this study isto use product attributes and retail display information todevelop cross-national segments.

So in this article customers are segmented in to three;

cognitive-based, assurance-based, and in-store promotion-based. The researchers recommended the following pointsto the managers which will help them to develop cross-national segmentation.These are:

Wine marketers concerned with cognitive decision-makers shouldclearly show the attributes on the label, as well as in their marketcommunications.

Marketers aiming at assurance-based group need to providesampling and other means for potential wine buyers to have a tasteof the wine.


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Contd

In contrast larger wineries would likely have a brand portfolioacross multiple countries with different wines aimed at thedifferent segments.

Marketers must still work to understand their buyers in each

country and decide whether the segment exists for theirparticular product or not.

These conclusions and recommendations are directly relatedwith the findings they got. In this case the researchers provide

adequate conclusion and gave good recommendations regardingcross-national segmentation for wine markets.

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Limitation

The researchers used convenience-based sampling techniqueand do not represent the population of wine drinkers in eachcountry.

The researchers did not use price as a choice attribute, but other

wine research found price to be very important in wine choice

BWS is not applicable to all cross-national research problems.The method cannot replace intention measures, Multi-itemscales, or direct evaluations as tools to use for other research

problems, but it does make a useful additional tool for cross-national researchers to consider. Over all the researchers clearlystated the limitation of the research.

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Further Area of investigation

There is very little information on what makes a wine labelattractive to different segments of consumers. More researchneeds to be conducted in order to provide wine companies with

clear ideas of label designs for specific segments of consumers. An extensive literature review showed that few papers in

consumer decision-making focus on heuristics; most buildmodels using cognitive-based strategies, However evidenceshows that many consumers everyday purchase decisions aremost likely heuristic in nature.

Therefore further research should be made in the area ofheuristic purchase decision.


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The Best Worst methodology employed here is not able todirectly measure decision-making styles. Further research is

therefore necessary to substantiate the actual decision-makingheuristics revealed in the analysis.

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Contd


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Reference The total secondary data collection is being made from 53

different materials, The types of references materials used include:

Journals - 33 Books - 13

Other publications - 7Among these 19 (35.8%) of them are outdated by the

conventional way of using reference materials whichhave been published ten and more years back.

Using journals is advisable for a research probably beingmore important than books. This is because the most up todate research and debates will be found in journals.


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Contd

The reference citation in this article was made usingHarvard style (authors name)

All of the references which have been used and cited in thebody of the article are included in the referencepresentation parts of the paper

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Evaluating the Article

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Seq No Article Review Criteria Weight Result


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Thank you

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Article Review Criteria(%)

1 Research topic match with the content of the article 10 8

2 Abstract contains all ingredients of the research 10 9

3 The objective of the study clearly defined 10 9

4 Methodology of the review versus the nature of the article 15 13

5 Literature review properly addressed 15 13

6 Results and findings are properly addressed 15 14

7 Conclusion and Recommendation 10 10

8 Limitation of the study is stated 5 5

9 Further area of investigation clearly highlighted 5 5

10 References usage and citation 5 4

Total 100 90


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Article Review_using Product V1 Dawit Final

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