Lenovo Brand Strategy

Lenovo Brand Strategy Abstract Purpose This study aims to apply the reviewed literature of brand identity, brand strategy, and product positioning to analyze the lessons and improvements on how Lenovo, a No.1 PC manufacturer in China, implements brand integration as part of its global brand strategy to increase brand awareness and recognition. Approach This study introduces multiple methods to analyze the pros and cons of brand integration, and brand product positioning such as product segmentation and perceptual map as well as the companys revenue comparison. Findings Lenovos co-branding strategy in its first two phases of global brand strategy benefit its revenue growth dramatically but in limited level to its own brand awareness. And the global sales loss happened after Lenovo forgone co-branding with IBM brand on its ThinkPad/ ThinkCentre brand lines in its third phase of global branding strategy. Moreover, the unsatisfactory sales performance forced the company to trade-off the premium price of ThinkPad in attempt to cater to more consumers, gaining market share and revenue growth, but only result in the opposite situation due to the unclear repositioning of ThinkPad. Research limitations/implications The inaccessibility of the overall statistics on the sales of ThinkPad by Lenovo in overseas market over the past five years impacts the accuracy of the analysis result. Besides, the depth of the study is hindered due to the lack of Lenovos investment in branding and marketing promotions, as well as sales volume of its major competitors such as US, Europe, etc. Practical implications Leveraging a well-known ThinkPad brand can expedite Lenovos access to the cutting-edged technology and distribution channel setup, however, it will takes a long process to build and increase a strong brand of Lenovo globally. Apart from focus on quality and technology innovation, Lenovo should emphasize its value-added brand positioning, i.e. nurturing the brand in the dimensions of relationship, personality and culture. The separation of Lenovo and ThinkPad should be the best solution for the sake of maximizing each brand equity. Originality/Value This study is an attempt to discuss disconnection of distinctive brands like Lenovo and its sub-brands ideapad/ideacentre from ThinkPad / ThinkCentre to maximize each brand equity. Literature Review According to Arnold (1992), brand strategy is the process whereby the offer is positioned in the customers mind to produce a perception of advantage. And strategy implies the execution of the organizations vision, mission, and objectives. In another word, the essence of the brand needs to be reflected in everything the company does, especially those that impact the consumer. When making branding strategies, a company should first have an insight into their brand and brand equity. Brand equity is the differential effect that knowing the brand name has on customer response to the product or its marketing (Kotler, 2009). A successful brand has high brand equity and its image (B) can be thought of as the combination of three elements: a good product (P), a distinctive identity (D), and added values (AV), i.e. B=P*D*AV. Especially the brand preference depends on added values that give customers confidence that this product has qualities, status or associations not possessed by alternative choices (Doyle, 2008). It helps customers navigate the choice process by reducing risks and saving time of evaluation (Doyle, 2008). Brand management centres on creating perceived added value for the companys offer among customers, which can be achieved by shaping the brands identity. Brand Identity is everything the company wants is brand to be perceived by customer (Temporal, 2002). It has six dimensions, which is also called now as brand identity prism (Kapferer, 2007), namely , physical, reflection, relationship, personality, culture and relevance (Kapferer, 1997). The identity of strong brands reminds us that identity is not just a matter of functional attributes (Kapferer, 2007). With time, brand associations typically move up from tangible to intangible values -No brand should be without a strong intangible component became the top priority of 10 key principles of strategic brand management (Kapferer, 2007). Due to the increasing fierce competition and rapid imitation, the focus of keeping customers in marketing highlights the building lasting relationships on brand management, namely, classifying the different types of relationships consumers have with brands (Fournier, 1998), or the different types of interactions companies engage in with their clients (Rapp and Collins, 1994; Peppers and Rogers, 1993). Kapferer (2007) claims the establishment and recognition of brand identity is one of the key stages in the process of brand globalization. That is, the brand must have an identity that will serve as a medium for its globalisation, specifically for its brand positioning and brand strategy. Clearly, for existing brands, positioning derives from identity. But it exploits a specific, coherent and salient aspect of identity at a given point in time in a given market and against a precise set of competitors. At the level of global brands, the brand positioning emphasizing a unified identity should occupy a distinct place in the target markets mind (Kotler, 2000), ensure the distinctive position of the products of a company from its competitors offerings, maintain or increase market share by satisfying current or potential customers, and finally achieve higher revenue (Hassanien and Baum, 2002). Bingham and Raffield (1995) identified six positioning alternatives for firms: price, technology , product quality, distribution, image and service. Although repositioning is increasingly inevitable as the changing marketing environments that influence organisations (Trout and Rivkin, 1995; Kotler, 1997), any decisions companies need to make about repositioning will demand careful consideration of all of the brands attributes (Park et al., 2002). When brand managers decide brand strategy, the added-value lever on which a product is based should be taken into consideration as an important parameter in choosing different brand architectures. A single (corporate) brand umbrella or master brand strategy is often recommended when the added value in a particular market is linked to reputation and scale (Kapferer, 2007). However, the more segmented the market, with top-quality, personalised products, the more one has to favour either an endorsing brand strategy or a new portfolio of product brands. Besides, cost factors have to be considered. Doyle (2008) gave insightful explanation and said that the objective of adopting brand strategies is to increase long-run economic profits, which leads to an orientation to sharing brand names For companies in its initial phase of going global with limited resources, the simplified brand lines can reinforce each brands selling power and reduce marketing cost, provided that the company has complementary products. Another factor that can not be neglected in formulating brand strategy is the country background of a brand. COO (Country of Origin) refers to the impact that generalisations and perceptions about a country have on a persons evaluation of the countrys products and brands (Nebenzahl, Jaffe, and Lampert 1997; Lampert and Jaffe 1998; Dinnie 2004). COO helps or hampers the development of brand equity in the new market. Yet to some extent, acquired brands can produce a short-cut to overcome the negative effect of COO in brand globalization (Ying, 2008) and co-branding provides a buzz around the brand among opinion leaders to create an image (Kapferer, 2007) facilitating brand into global arena, but it is not a substitute or alternative for brand building in the long term. Co-branding can generate greater sales from the existing target market as well as open additional opportunities with new consumers and channels as it can increase cash flow through increased number of touch points betwee n brands (Srivastava et al., 1998). In addition, co-branding can reduce the cost of product introduction and help stage a brand into a new market by leveraging the existing brand with global awareness. This is reflected in the increasing number of cases of mergers and acquisition of such kind worldwide. Undeniably, it can boost the business of a company but does not necessarily mean the success of integrating brands (Swystun, 2001). It is difficult to change an established brand identity and a good fit between brands is essential to the successful marriage. For a company going global, a distinctive and consistent brand identity should be nurtured and matters most in distinguishing itself from other competitors despite of manufacturing the same high quality products. Clayton M. Christensen (2004) noted that most organizations can acquire resources, but it is the application of the process (how to solve problems) and values (past investments) that distinguish a company. And branding strategy is the process of such kind as one of the key factors which will ultimately determine a companys future success. About Lenovo and its internationalization and global brand strategy Founded in Beijing, China, Lenovo is No.1 PC manufacturer in China and the worlds fourth largest PC maker with its revenue in 2007-2008 reaching 16.4 billion US dollars and its market share in China stabilize at 29%-30%. In 2004, its acquisition of IBM PC business (Thinkpad brand) for 1.25 billion US dollars made the company the worlds No. 3 PC company after Dell and HP and signified the beginning of its steps into international market. Since then, Lenovo has established more than 200 branches in 66 countries (Lenovo official website: http://appserver.lenovo.com.cn/About/aboutus_overview.html, accessed Nov 23, 2009). Lenovos sports marketing, the Olympic marketing, and co-brand marketing strategy enhance the brand image and capture the market share. Its global branding strategy incorporates three phases. In the first phase focused on the continuity of the brand in overseas countries to strengthen the relationship between the Lenovo and Thinkpad; In the second phase to consolidate t he high-end business Thinkpad image. And in the third phase to accelerate Lenovo brand building (Gu, 2006). Methodology and descriptive analysis We can compare Lenovos branding strategy with its revenue over the past five years. Investment in the brand must come first to ensure revenue enhancement. (Jeff Swystun, 2001) From the comparison, the dramatic revenue growth in 2004-2006 seems to verify that the branding strategy of leveraging IBM brand and reinforcing ThinkPad benefit the corporate performance. Meanwhile, however, Lenovos global brand awareness got increased during the process? Since Lenovo had the right to use the IBM brand only for five years until 2010, the company decided to drop it two years ahead of schedule, such was its confidence in its own brand (http://www.economist.com, 2008). Despite of the right move, the result is the decrease in the corporate revenue: Lenovos sales volume was down by 5 percent in the third quarter 2008, sales revenue dropped by 20 percent, and market share declined from 7.5 percent to 7.3 percent (Ming, 2009), especially, the sales in America and Europe fell by 17% in the 3rd quarter compared with the same period last year due to the sluggish demand in those markets and notably, its domestic sale grew and accounted for 48% of its total sales(http://www.economist.com, 2009). Actually, the unsatisfactory result can be attributed in a sense to the abrupt brand shift from IBM ThinkPad to Lenovo ThinkPad. Whereas, the point is that it is not the inappropriate timing to forgo co-branding with IBM brand, but it is during the initial phase of implementing global branding strategies when Lenovo did not handle well the relations between leveraging IBM brand and, more importantly, enhancement of Lenovo brands identity and differentiated advantage in its new market outside Asia where the brand name was little known, especially in US and Europe, the focus of Lenovo business outside China. To gain an insight on the brands strategy, we can look at Lenovo brand architecture transition below for the major product lines and brand integration in the early 2008. After the brand integration, under the corporate umbrella brand of Lenovo, the streamlined product brands resulting in global marketing cost-effectiveness can be categorized into ideaPad and ideacentre sub-brands for consumers and ThinkPad sub-brand for consumers and commercial segment and ThinkCentre sub-brand for companies. Notably, there is a change in customer positioning for ThinkPad by serving companies only switching to companies primarily and consumers secondly served with individual models of ThinkPad products. This is to meet the increasing needs for consumer PC. Besides, ThinkPad is expanding its position from high-end only to both middle and high-end in light of Lenovos pricing system. And a question comes to arise: Is Lenovo ThinkPad is as good quality as IBM ThinkPad? Lenovos reaction to the sceptical v oices is the price cut of ThinkPad is to cater to those customers feeling pinch in the current situation. But the transition risk should be foreseen that the customers who know ThinkPad very well may not have that sense of advantage that the original brand identity confers, and eventually the transformation may harm the brand equity. Lets look at the brand positioning of Lenovo and its competitors. Over time, PCs has become ubiquitous and play a growing role in many important aspects of daily life. Consumers are therefore looking for more innovation (Quelch and Knoop, 2006) with appropriate pricing. Capping the product features of each company in terms of innovation and pricing, we can see that HP, Dell and Acer-the strong competitors of Lenovo in US and European market -are all positioned as economy brand whereas Lenovo as bargain brand positioned as overall high level of innovation and IBM as premium brand. Highly recognized by its customers, ThinkPad brand, with high innovation and high price of a differentiate advantage, best represent the culture of IBM brand. The branding strategy should first take into consideration the environment and customers (Doyle, 2008). Although Thinkpad brand has nothing to do with IBM after the acquisition, the customers perception of high level of innovation and pricing of Thinkp ad brand is deep-rooted, thus, it is not necessary and even harmful to its original image in its customers mind for any attempt to lower its pricing arrange. As for Lenovo brand, on one hand, competitive pricing is the core value that the company embraces to contest its key competitors internationally, and on the other hand, like many other Chinese company going global, it still take time for Lenovo to get away from Made in China image interpreted as manufacturing cheap products. Thus, the implementation of its bargaining pricing system in its another brand line ideapad and ideacentre can embody its differentiating advantages lower price but good quality and higher level of innovation and lower the entry barrier to the consumers in the new market(Doyle, 2008). Of course, this is what Lenovo is doing, promoting its idea brand line in US, Europe and other major overseas market (Lenovo official website: http://appserver.lenovo.com.cn/About/aboutus_overview.html, accessed Nov 23, 2009 ). It can be concluded that there is distinctively different brand identity between ThinkPad/ ThinkCentre and Lenovo and its sub-brands ideapad/ideacentre. Discussion on improvement In developing a global brand, Chinese companies could choose between a traditional and modern approach (Ewing, Napoli, and Pitt, 2001). And Lenovo has adopted the modern (although more risky) approach that accelerates internationalization via joint ventures and acquisition of foreign brands, enabling them to leapfrog to the advanced stage in the process. Product differentiation and brands management separation Lenovo should resume the high-end brand identity of ThinkPad targeting companies and high-end consumers to gain premium price and high margins. And this branding strategy can not waver surrendering to the current economic conditions. And for the medium and lower-end market, idea brand line can play its flexible role catering to different subdivision market. In addition, the ideapad/ideacentre identity should be enriched to increase its value-added specifically in its relationship and personality prospective to differentiate with other competitors brands. Apart from product pro motion, creating customers product experience should be the remedy to have them gain better knowledge of the new entry brands and enhance the recognition of Lenovo. Most important, ThinkPad/ThinkCentre brand should be separated from Lenovo and its sub-brands. The case of the separation of product brand Lexus and company brand Toyota means the success of the both brands even though few know Lexus brand is under Toyota.(Jean-Pierre and David, 2002) . Conclusion This study emphasizes on the analysis and discussion on the brand integration of Lenovo, idea brand line, and IBMs ThinkPad brand, which features an indispensible process of implementation of global brand strategy by Lenovo. The strategy of co-branding of Lenovo and IBM in ThinkPad products in the initial phase impelled the process of Lenovo brand into international arena. At the same time, however, Lenovo should have engaged in its own brand identity and equity, which will alleviate the loss arising from the disconnection of IBM and Lenovo. An effective positioning/repositioning brand strategy should highlight the consistent process of enhancing brand awareness. At this point, Lenovo took a either slower or inappropriate action which entail improvement and transformation. As for the established ThinkPad brand, the dimensions of its brand identity should be taken into full consideration otherwise any branding initiatives will damage its brand value through confusing or depriving the sense of status and pride from its customers. To avoid the collision of two distinctive brand identities ThinkPad and Lenovo with its sub-brands ideapad/ideacentre, disconnection is the best solution to maximize brand equity.

Shakespeares Rosalind Essay -- English Literature Essays

Shakespeare's Rosalind The main themes of "As You Like It" are the pastoral ideal and the ideal of romantic love. Forest of Aden is the primary setting where these themes develop. Nature serves as a refuge from society where we can find solutions to injustice and unhappiness. This play is a comedy and thus has a happy ending but it is not a fairy tail. Shakespeare highlights the difference between reality and illusion. Rosalind embodies the sensibility, the humor and the kind of love that leads to a happy, harmonious living. She brings the plot to a resolution when four contrasting romances end in marriage. The focus of the play is her romance with Orlando. Rosalind wants to find a lover without losing her sense of self in the process. Rosalind answers the questions about love, which arise during the play. She is a lovesick maiden and yet she remains an intelligent, witty, and strong character. Rosalind is also a good judge of character. She sees through Jaque's seemingly deep thoughts and recognizes the wisdom of clown Touchstone. Furthermore, she cleverly uses her disguise to get to know Orlando and educate him about love. The meeting of Orlando and Rosalind is the most important event in Act 1 of the play; it is love at first sight. Celia and her cousin talk about falling in love just before the wrestling match. From henceforth I will, coz, and devise sports. Let me see, what think you of falling in love? Her words indicate that Rosalind is ready to face the danger of falling in love. She infers that her father would approve of Orlando because her father approved of his father Sir Rowland. Their meeting reveals a vulnerable side of the Rosalind as she gives him a chain, says, "Gentleman, wear this for me" and waits for him to continue the conversation. In Act Shakespeare draws parallels between Rosalind's relationship with Celia and Orlando's relationship with Adam. When Duke Fredrick banishes his niece from the court, Celia makes a quick decision to go to the Forest of Aden with her cousin and to look for her uncle. This illustrates the degree if love and loyalty between them. Orlando's elder brother Oliver denies him education. When Orlando is leaving for the forest Adam wants to go with him to serve and protect him. Master, go on, and I will follow thee To the last gasp with truth and loyalty†¦ Yet fortune cannot recompens... ...er than thou art ware of." Touchstone tells her a story about being in love with a girl. He gave the girl something and said "wear these for my sake", which are almost the same words that Rosalind said to Orlando in the beginning of the play. The love between Orlando and Rosalind is portrayed as superior to other romances, which are more earthy. Touchstone and Audrey's romance represents physical passion. He wants to marry her out of church so that the marriage would be invalid. Silvius who is hopelessly in love with Pheobe, represents pastoral love The diversity of characters' romantic sentiment creates a balance in the play and makes one appreciate their silliness, spirituality and extremities. Compared to Silvius' silly infatuation, Orlando's is more of a courtly lovesickness. Rosalind outshines everyone else in the play with her intelligence, wit and depth of feeling. Her humanity and sense of fun make her the ideal romantic heroine. She seems to be centuries ahead of her time. She is a woman who is absolutely the master of her own destiny and she remains in control most of the time. Shakespeare has created an almost ideal heroine who brings the play to its conclusion.

Women in the Apology of Socrates Essay -- essays research papers

Women in the Apology of Socrates The most striking thing about women in the Apology of Socrates is their absence from where we might expect them. Only two specific women are mentioned: 1) the Pythia, the priestess of Apollo, who answers Chaerephon's question that no one is wiser than Socrates (21a); and 2) Thetis, the mother of Achilles (who himself is not mentioned by name but only referred to as the "son of Thetis"), who warns him that he will die if he kills the Trojan hero Hector (28c). Only two other times does Socrates even mention women: 1) a disparaging reference that those who embarrass the city by coming into court, weeping and carrying on to win the sympathy of the jury, "are in no way better than women" (35c); and 2) a remark that Socrates would enjoy questioning people in the hereafter, "both men and women" (41c), although everyone he actually names is male. Socrates does not mention questioning women in his investigations. Nor do women occur either as spectators to his que stions or in relation to all his talk about educating the "youth." The "youth" are obviously all young men. And again, Socrates mentions his family and his sons without mentioning his wife. Plato relates some relationships Socrates had with women (especially with Diotima in the Symposium), but those may be fictional. The only episode of Socrates questioning a woman that is clearly historical is related by Xenophon in his Recollections of Socrates: Socrates questions the courtesan Theodotà ª, who is famous for her beauty and poses for artists. Socrates lives in a world where the spheres of life of men and women were radically separate. In Plato's Symposium, which is a drinking party, both men and women are drinking and partying, but they do so in separate parts of the house. The musicans and dancers go back and forth between the men's party and the women's party. Political life was regarded by the Greeks as part of the male sphere of things, and so there were certainly no women in Socrates's jury; but it is hard to know whether there were any in the audience. There has been some dispute about whether women attended Greek plays, the comedies and tragedies, when they were staged -- though there are references by Plato to women in theater audiences. We have this difficulty in part because it was not considered proper for strange... ...ly male and all early nude art shows males, an ideal of female beauty rapidly gained ground in the century around Plato. In the three phases we can distinguish in the decoration of the Parthenon, the female figures are shown with progressively more diaphanous and revealing clothing. One of the earliest complete female nudes was a statue of Aphrodità ª that the great sculptor Praxiteles did for the island of Cos. He used as a model a famous courtesan named Phrynà ª (the scene of Phrynà ª posing at right is by the National Geographic painter H.M. Herget in Everyday Life in Ancient Times [National Geographic Society, 1961]). This was all rather shocking for the good people of Cos, who asked Praxiteles to do a more modest statue. He did, but the original went to the island of Cnidos, where it became a major local attraction. In Vamps and Tramps, Camille Paglia mentions that male visitors were so excited by the statue that they sometimes embarrassed themselves after the fashion of Pee Wee Herman. Eventually, the goddess herself was quoted as saying, "Alas, where did Praxiteles see me naked?" By the Hellenistic Age, female nudes were as common as male nudes. Thanks to friesian.com

Hemp :: essays research papers

Hemp In the entire world, there has never been a plant quite as amazing as Cannabis Sativa. Being the world’s only renewable resource capable of solving many of it’s environmental, psychological, and economic problems, it is of no surprise that the plant has made quite an impact in the discovery of the New World. Cannabis Sativa, also known as; Hemp, cannabis hemp, Indian (India) hemp, true hemp, muggles, weed, pot, marijuana, reefer, grass, ganja, bhang, "the kind," dagga, and herb became an ideal plant to cultivate because of its many fine attributes. Depending on the culture, It’s leaves and flower tops were the first, second, or third most important and most used medicines for at least two thirds of the world’s people for at least 3,000 years. Cannabis hemp is by far, the strongest, most durable, longest lasting natural soft fiber, and the worlds most advanced plant family on the planet. Because it is Dioecious, having male, female and sometimes hermaphroditic qualities, it is easy to grow and cultivate. This tall, woody, herbaceous annual, reaching anywhere from 12 to 20 feet in one short growing season uses the sun more efficiently that any other plant on earth. It can be grown in any climate or soil condition on Earth, and is a premier renewable natural resource. Many countries found the plant appealing because of it’s abilities to flourish in extreme heat. The Arabs discovered that the sticky goo, or Hashish, that covered the flowers and leaves was a natural protectant against the sun, holding in moisture and repelling damaging heat. It’s ability to survive in temperatures of 100 degrees Fahrenheit made it ideal for mass production in the New World. Not to mention that it needs no chemicals to grow and has very few natural enemies. The Hemp plant was initially cultivated for it’s main two attributes, it’s hardiness and it’s useful fibers. Until the 1820’s in America, 80 percent of all textiles and fabrics used for clothing, tents, bed sheets, and linens were made principally from the fibers of Cannabis. Until 1883, from 75-90% of all paper in the world was made with cannabis hemp fiber including that for books, Bibles, maps, paper money, stocks and bonds, newspapers, etc. Everything from rugs, diapers, drapes, quilts, towels, rags, and even our nation’s flag were made possible by Hemp. The rest of the world used it’s fibers well into the 20th century and most countries still rely on it for the bulk of their paper and textile industries.

Hock

Hock Studies Set 2 Study #1 Reading 14: Just How are you intelligent? Garder, H. (1983) Frames of mind: The theory of multiple intelligences. Main focus or purpose: Howard Garder introduced to the world this new view of multiple intelligences. â€Å"Just how are you intelligent? † is unrelated to amount of overall intelligence and asks instead about the nature of your particular type of intelligence. Primary Research Methods: Gardner developed a set of either indicators or â€Å"signs† that define intelligence.Any intellectual ability, or set of abilities, must map onto most of these criteria, if it is to be considered a separate, autonomous intelligence. Main Results Reported: Each different type of intelligence varied in results. The following were tested Linguistic intelligence- able to use words that are more skillful. Musical Intelligence- gifted abilities involving sound, especially pitch, timbre and rhythm. Logical-mathematical intelligence- analyzes and computes various relationships among abstract objects, concepts, and ideas.Spatial intelligence- skilled in creating, visualizing, and manipulating mental images. Intrapersonal intelligence- able to understand who you are. Weaknesses or Critique: Some concerns based on learning disabilities—how they would test differently. Some argue that not all intelligence was properly tested by Garder—â€Å"sexual intelligence, digital intelligence† Importance/Value: As human beings its important for us to understand which part of our brain is strongest. It can help one find a well fitting job later on. People want to practice what they are naturally good at—so testing this is important.Study #2 Reading 25- Are you the master of your fate? Rotter, J. B. (1966) Generalized expectancies for internal versus external control of reinforcement. Psychological Monographs, 80, 1-28 Main focus or purpose: Are the consequences of your behavior under your personal control or are they det ermined by forces outside of yourself? Rotter wanted to study differences among people on this dimension and, rather then simply asking them, e developed a test that measured a person’s locus of control. Primary Research Methods: Rotter designed a scale containing a series of many pairs of statements.Each pair consisted of on statement reflecting an internal locus of control and one reflecting an external locus of control. Those taking the test were told to select the one statement of each pair, which you more strongly believe to be the case. This is a measure of personal belief. Rotter called his test to I-E scale. Main Results Reported: Gambling- individuals identified as internals by the I-E scale tended to prefer betting on sure things. Persuasion- internals were found to be more successful than externals in altering the attitudes of others.Achievement motivation-plans to attend college, amt of time spent on hw—more likely to be found in those students who demonstr ated an internal locus of control. Rotter hypothesized that those with an internal locus of control are more likely then externals to gain information from situations, take the initiative to make change, place greater value on inner skill and achievement goals, and are more able to resisted manipulation by others. Weaknesses or Critique: There are not any right or wrong answers in this study. Everything is just based on one individual, which is time consuming for the ones doing the studies.Importance/Value: After being tested—easier to be placed in a fitting environment. It’s important for us to know control. Study #3 Reading 30; You’re getting defensive again Freud, A. (1946). The ego and the mechanisms of defense. New York: International Universities Press. Main focus or purpose: Sigmund Freuds discovery of ego defense mechanisms occurred gradually over 30 or more years as his experiences in dealing with psychological problems grew. Primary Research Methods: F reud claimed to have discovered the defense mechanisms gradually over many years of clinical interactions with his patients.Main Results Reported: Anna Freud identified 10 defense mechanisms that had been described by her father. Five of the original mechanisms that are commonly used and widely recognized today are discussed repression, regression, projection, reaction, formation, and sublimation. Weaknesses or Critique: researchers question some of Anna freuds theories. Do defense mechanisms really exist? Do they actually function unconsciously? Importance/Value: People now have a much better understanding of mechanisms. Study #4 Reading 31: Learning to be depressed Seigman, M. E. P. , &maier, S. F (1967). Failure to escape traumatic shock.Main focus or purpose: Martin Seligman (psychologist), proposed that our perceptions of power and control are learned from experience. Martin believes that a persons efforts at controlling certain life events fail repeatedly, the person may stop attempting to exercise control all together. Primary Research Methods: Subjects for this experiment were 24 â€Å"mongrel dogs†, 15 to 19 inches high at the shoulder and weighing between 25-29 pounds. The dogs were divided into 2 groups of 8. One group was the escape group and the other was the non-escape group. They were individually harnessed and but not completely unable to move.A series of shocks were given to the dogs to see which ones tried to escape. Main Results Reported: In the escape group the time it took for the dogs to press the shock panel quickly decreased over the 64 shocks. In the no escape group, panel pressing completely stopped after 30 tries. Weaknesses or Critique: It’s hard for some to read about animals being used for testing. It’s important for researchers to use them for answers but no abuse should ever take place. Importance/Value: We understand that individuals are more likely to become depressed if they lack control of of situational experience.Study #5 Reading 35: Projections of who you are Rorschach, H. (1942) Psychodiagnostics: A diagnostic test based on perception. New York: Grune & Stratton Main focus or purpose: Roschach’s showed that in the course of interpreting random inkblot, attention would be drawn away from the persons so that his or her usual psychological defenses would be weakened. Primary Research Methods: Roschach form of interpretation test is administered simply by handing a person each figure, one at a time and asking, â€Å"What might this be? Participants were free to turn the card in ant direction and hold it as close to or as far from their eyes as they wish. Main Results Reported: He found that subjects generally gave a total of 5 to 30 totally responses to the 10 figures. Depressed individuals gave less answers, those that were happy gave more, and among the mentally ill answers varied. Weaknesses or Critique: Weather or not what Rorschach claimed to measure was accurate. Othe r researches suggest that there are better ways to test this. Importance/Value: Rorschach’s research will help studies that are done on the same concepts.Study #6 It’s Not Just About Salivating Dogs! Pavlov, I. P. (1927). Conditioned Reflexes. London: Oxford University Press. Main Focus or Purpose: In this study, Pavlov wanted to use physiological research involving the use of dogs as subjects to test the role of salvation on digestion. Test how, when, and why an animal would salivate, what could cause it†¦Unconditional reflex or conditioned reflexes? Primary Research Methods To test this, they would introduce various types of food or nonfood substances into a dogs mouth and observe the rate and amount of salvation.Then they would associate a sound or smell that would occur before that dog gets introduced to the food. Then after noticing that the bell leads to food the dog would therefore begin to salivate by just hearing the noise. Main Results Reported Pavlov th eorized that the dogs had learned from experience in the lab to expect food following certain signals. Although these certain signals do not naturally produce salivation, the dogs came to associate them with the food and salivating with the expectancy of the foods arrival. Weaknesses or CritiqueThere were no true weaknesses or critiques to this research and work. Importance/Value: This experiment and intense observation was very important because it is now universally accepted and has remained virtually unchanged since its conception. His theories of classical conditioning explain a major proportion of human behavior and helped launch psychology as a true science. Study #7 Little Emotional Albert Watson, J. B. , & Rayner, R. (1920). Conditoned emotional Responses. Journal of Expiermental Pyschology, 3, 1-14. Main Focus or Purpose:The main purpose of this study was to test if our human behavior is based on that idea that we are motivated by unconscious instincts and repressed conflic ts from early childhood. Primary Research Methods: The methods for this particular study were simple; they took 9 month old Albert from a hospital where he had been raised as an orphan since birth. They then wanted to see if Albert was naturally afraid of certain stimuli, they placed a white rat, a rabbit, a monkey, a dog and masks in front of him, and he naturally grabbed for most of the objects since they didn’t produce any fear (neutral stimuli).They then paired a loud frightening noise (unconditioned stimuli) with the presentation of each animal and he then cried every time, even just with the sight of the animal because he associated it with that same fear. Main Results Reported Albert was not originally afraid of the rats prior to the conditioning, but then after the conditioning he instantly feared the rat and even the Santa Clause mask that had a similar white appearance. Weaknesses or Critique: Study like this would not be acceptable now days.It is very questionable to ethical reasoning; to take a child at an early age and purposely frighten it is just not right. Importance/Value: This study succeeded to a large extent in convincing many in the psychological community that the emotional behavior could be conditioned through simple stimulus response techniques. Also proved that human behavior is based on that idea that we are motivated by unconscious instincts and repressed conflicts from early childhood. Study #8 Knock Wood! Skinner, B. F. (1948). Superstition in the pigeon. Journal of Expiermental Psychology, 38, 168-172Main Focus or Purpose: Skinnier wanted to test if the reason people do superstitious acts (like knocking on wood for example), do this because they believe or presume a connection exists between the superstitious behavior in a certain setting and a reinforcing consequence exists. Primary Research Methods: The researchers used a empty cage or box that only had an empty dish or tray in which food is dispensed. This allows the res earchers to have control over when the animal receives reinforcement, such as pellets of food. The early conditioning had a lever, which if pushed, would cause food to be dispensed.They then put pigeons into experimental cage for a few minutes each day, and then food reinforcement was delivered automatically every 15 seconds. Main Results Reported: In 6 out of 8 cases the resulting response were so clearly defined that two observers could agree perfectly in counting instances. Eventually, the pigeons behaved as if a certain behavior would produce the food, they became superstitious. Weaknesses or Critique: On the specific issue of superstitions, however, there appears to be less controversy and a rather wide acceptance of the learning process involved in their formation.Importance/Value: This was important because none of these behaviors had been observed in the birds prior to the condition procedure. Study #9 See Aggression†¦ Do Aggression! Bandura, A. , Ross, D. , & Ross, S. A. (1961). Transmission of aggression through imitation of aggressive models. Journal of Abnormal and Social Psychology, 63, 575-582. Main Focus or Purpose: The purpose of this study was to determine how children may learn to be aggressive. If they learn by observation and imitation or any other influential factors. Primary Research Methods:The researchers exposed children to adult models who behave either aggressively or non-aggressively. The children would then be tested in a new situation without the model present to determine to what extent they would imitate the acts of aggression they had observed in the adult. Main Results Reported: The children who were exposed to the violent models tended to imitate the exact violent behaviors they observed. Weaknesses or Critique: The results were so inconsistent in relation to the aggression-inhibiting effect of nonaggressive models that they were inconclusive. Importance/Value:This research formed the foundation for hundreds of studies o ver the past 45 years on the effects on children of viewing violence in person or in the media. Study #10 Just How Are You Intelligent? Gardner, H. (1938) Frames of Mind: The theory of multiple intelligences. New Yorkk: Basic Books. Main Focus or Purpose: In this study, Garden wanted to test if there were multiple different types of intelligences rather than just one general intelligence that can be tested by an IQ test. He also wanted to further extend the theory of brain specialization, to see if different parts of the brain are responsible for different intelligences.Primary Research Methods: Gardner developed a set of eight indicators or â€Å"signs† that define an intelligence. Any intellectual ability, or set of abilities, will then be mapped onto these criterias. He separated the intelligences into 9 main ones: linguistic, musical, logical-mathematical, spatial, bodily-kinesthetic, interpersonal, intrapersonal, naturalist, and existential and then performed test to det ermine what category or categories one might fall under. Main Results Reported: This study showed and proved that people are intelligent in many more ways than just â€Å"book smart†.It gave us proof that a student can still be very bright even if that student is struggling in math or English. Weaknesses or Critique: Many question, what about the children or adults with learning disabilities? But after these tests, Gardner then changed that into learning differences. Importance/Value: Hundreds of scientific articles and books now rest on Gardner’s theory. His theory has remained unchanged and survived for over two decades now and shows no sign of fading. He changed forever how the world looks at learning, teaching and intelligence.

How Important Are Ethics and Social Responsibility?

The research register for this journal is available at http://www. mcbup. com/research_registers The current issue and full text archive of this journal is available at http://www. emerald-library. com/ft How important are ethics and social responsibility? A multinational study of marketing professionals Anusorn Singhapakdi and Kiran Karande College of Business and Public Administration, Old Dominion University, Virginia, USA How important are ethics? 133 Received September 1998 Revised March 1999 June 1999 September 1999 College of Administrative Sciences, Kuwait University, Safat, Kuwait, and School of Business Administration, University of Mississippi, USA Keywords International marketing, Ethics, Social responsibility, National cultures, Consumer behaviour Abstract States that in the present era of global marketing, as more companies enter international markets, ethical problems are likely to increase. As companies and their managers deal with their counterparts in different countries, there is a need to understand the latter's ethical decision-making processes. Divergence in ethical behavior and attitudes of marketing professionals across cultures can be explained by, among other variables, differences in perceptions regarding the importance of ethics and social responsibility in achieving organizational effectiveness. This study investigates the variation in those perceptions among marketing professionals from Australia, Malaysia, South Africa, and the USA. The variation is explained by country differences (cultural differences, differences in the economic environment, and differences in legal/political environment), organizational ethical climate, and selected demographic characteristics of the marketer (gender and age). C. P. Rao Scott J. Vitell Introduction The study of ethics has become increasingly important with global business expansion, because of an increase in ethical and social responsibility  ± concerns that businesses face in different country environments. There exists, however, a wide divergence in the level of importance attached to these two issues in different countries (Czinkota and Ronkainen, 1998). Moreover, vast differences exist from country to country in the economic development, cultural standards, legal/political systems, and expectations regarding business conduct (Wotruba, 1997). In addition, there is great divergence in the enforcement of policies (Mittelstaedt and Mittelstaedt, 1997). The authors would like to thank Mohd. Rashid Ahmed, Universiti Pertanian Malaysia, Malaysia; Nicola Higgs-Kleyn, University of the Witwatersrand, South Africa; and Muris Cicic, University of Wollongong, NSW, Australia for their assistance in the data collection for this study. The authors would also like to thank Janet Marta for her comments on the earlier versions of the manuscript. European Journal of Marketing, Vol. 35 No. 1/2, 2001, pp. 133-152. # MCB University Press, 0309-0566 European Journal of Marketing 35,1/2 134 In the business ethics literature, ethical variations among marketers/ managers from different nations are documented in many empirical studies on various types of ethical issues (e. g. Armstrong et al. , 1990; Graham, 1985; Becker and Fritzsche, 1987). Variation in ethics across cultures was evidenced in a cross-national study of industrial salespeople by Dubinsky et al. (1991) where some significant differences in ethical perceptions were found among marketing managers from Japan, Korea, and the USA. A study by Singhapakdi et al. 1994) also revealed that American and Thai marketers differ on various components of their ethical decision-making process. However, international researchers have not investigated differences in the extent to which marketers from different countries believe that ethics and social responsibility are important for organizational effectiveness. An individual's perception about whether ethics and social responsibility contribute to organizational effectivenes s is likely to be a critical antecedent of whether he/she even perceives an ethical problem in a given situation (Singhapakdi et al. 1995). This is a pragmatic view based on an argument that managers must first perceive ethics and social responsibility to be vital to organizational effectiveness before their behaviors will become more ethical and reflect greater social responsibility. This view is consistent with Hunt and Vitell's (1986) depiction of ethical judgment as including a teleological evaluation, when an individual evaluates alternative actions by weighing the perceived probability and desirability of consequences. Essentially, a manager's choice of behavior in a situation that has problematic ethical content will be based on his/her perception of the likelihood that the actions will bring about a desired outcome. This view is also consistent with Jones' (1991) issue-contingent model where it is postulated that the â€Å"probability of effect† which is defined as â€Å"the probability that the act in question will actually take place and the act in question will actually cause the harm (benefit)† (Jones, 1991, p. 75) will affect an individual's ethical decision making. Intuitively, ethics and social responsibility should have a positive impact on the success of an organization, because consumers make ethical judgments that are likely to influence their purchases. As Laczniak and Murphy (1993, p. 5) put it: Consumers over time will normally recognize the organizations that attempt to be responsive to various ethical and social factors in the marketplace. Accordingly, it is vital for marketers to incorporate ethical and social considerations in their work. Thus, the aim of this study is to investigate whether marketers from Australia, Malaysia, South Africa, and the USA differ in the extent to which they believe that ethical and socially responsible practices are important in relation to various aspects of organizational effectiveness such as quality, communication, profits, competitiveness, survival, efficiency, and stakeholder satisfaction. Based on past literature that emphasizes cultural factors, corporate culture, and individual characteristics (e. g. Hunt and Vitell, 1986; Ferrell and Gresham, 1985), the cross-cultural variation in marketers' perceived importance of ethics and social responsibility in achieving organizational effectiveness is explained by country differences (including cultural differences and differences in the economic environment), organizational ethical climate, and selected demographic characteristics of individual marketers. The four countries included were judged appropriate because they are geographically separated and exhibit differences in terms of Hofstede's (1980) five cultural dimensions and the level of economic development, which are used to support the hypothesis about country differences. Theoretical foundation and hypotheses In this section it is proposed that the variations in the perceived importance of ethics and social responsibility as determinants of organizational effectiveness is explained by country differences (including cultural differences and differences in the economic environment), organizational ethical climate, and individual characteristics of gender and age. Figure 1 summarizes the proposed framework. Country differences Cultural differences. Hofstede (1980) and Hofstede and Bond (1988) proposed a typology for classifying cultures based on five dimensions: (1) individualism; (2) uncertainty avoidance; How important are ethics? 135 Figure 1. Theoretical framework European Journal of Marketing 35,1/2 136 (3) power distance; (4) masculinity; and (5) Confucian dynamism. It is hypothesized that these cultural dimensions contribute to differences in the perceived importance of ethics and social responsibility. For example, marketers in collectivistic countries (such as Malaysia) would be expected to be more loyal to their organizations because of greater dependence (Hofstede, 1983), and therefore, concerned for their organization's well-being when making decisions that enhance organizational effectiveness. Consequently, collectivistic cultures would attach more importance to achieving superior organizational performance than to ethics and socially responsibility. Masculine societies encourage individuals to be ambitious and competitive, and to strive for material success (Hofstede, 1980), which may tempt marketers from countries ranking high on masculinity to achieve greater efficiency, at all costs. Therefore, they would attach less importance to ethics and social responsibility than to efficiency, competitiveness, and long-term survival. Individuals from cultures with high power distance (such as Malaysia) usually accept the inequality of power, perceive differences between superiors and subordinates, are reluctant to disagree with superiors and believe that superiors are entitled to privileges (Hofstede, 1983). Consequently, marketers from high power distance countries are likely to perceive a need to minimize disagreement with superiors and satisfy superiors through improved performance. In other words, organizational performance is likely to be relatively more important to them relative to the extent to which a decision is ethical and socially responsible. The risk-taking orientation of marketers from low uncertainty avoiding countries would lead them to believe that it might be worth taking the risk of unethical actions in order to improve efficiency and competitiveness. Therefore, marketers from low uncertainty avoidance countries are likely to attach less importance to ethics and social responsibility in achieving organizational effectiveness. Individuals in countries ranking high on Confucian dynamism tend to adhere to the more future-oriented teachings of Confucius; those from countries ranking low on Confucian dynamism tend to be more present- and past-oriented (Hofstede and Bond, 1988). From the perspective of this study, marketers from cultures ranking high on Confucian dynamism have a strong sense of shame and are likely to be wary of actions that are improper or disgraceful. Marketers from high Confucian dynamism countries (such as Hong Kong, Taiwan, Japan, and Korea) would, therefore, believe that any actions bringing disrepute and shame to the company would be detrimental to organizational performance. This is also consistent with the greater future-orientation of individuals from these countries. Alternatively, it is also possible that marketers from high Confucian dynamism countries might be sensitive to the shame arising out of inferior performance and might therefore believe that greater efficiency and profits are important at the cost of ethics and social responsibility. In other words, the effects of Confucian dynamism might be expected in both directions. Table I summarizes Hofstede's ranking of the four countries on five dimensions of culture (Hofstede, 1980; Hofstede and Bond, 1988). It is apparent that, in general, Australians, Americans, and South Africans are higher on individualism and masculinity and lower on uncertainty avoidance and power distance than Malaysians. On Confucian dynamism, the USA and Australia rank very close. Although there is no ranking available for South Africa and Malaysia, Malaysians can be expected to rank higher because of a strong Chinese influence, especially in the business sector (Hong Kong and Taiwan rank first and second on Confucian dynamism). Based on individualism, power distance, and uncertainty avoidance, Malaysian marketers would be expected to have lower perceived importance of ethics and social responsibility than marketers from Australia, South Africa, and the USA. Based on masculinity, it would be expected that Malaysian managers will have greater perceived importance of ethics and social responsibility in achieving organizational effectiveness than those from the other three countries, whereas based on Confucian dynamism it is only possible to hypothesize differences. Therefore, based on the cultural differences outlined above, we would expect Australian, Malaysian, US, and South African marketers to attach different levels of importance to ethics and social responsibility in achieving organizational effectiveness. Economic environment differences. Countries also have different economic and business environments, including the legal environment and societal expectations about business ethics in a given country. In developed countries (such as the USA and Australia), the business environment is typically characterized by powerful business enterprises, a legal environment aimed at eliciting ethical behaviors on the part of businesses, and societal expectations that businesses should be more ethical and socially responsible. These environmental forces may make the marketers in developed countries attach greater importance to the ethical and social responsibilities of their respective businesses. In developing countries, on the other hand (e. . Malaysia and South Africa), the business and economic environmental forces are still evolving and hence the marketers' perceived importance of business ethics and social responsibility may be lower relative to their counterparts in developed Country Australia Malaysia South Africa USA Power distance Individualism 36 104 49 40 (41) (1) (36-37) (38) 90 26 65 91 (2) (36) (16) (1) Masculinity 61 50 63 62 (16) (25-26) (13-14) (15) Uncertainty avoidance 51 36 49 46 (37) (46) (39-40) (43) Confucian dynamism 31 (11-12) n/a n/a 29 (14) How important are ethics? 137 Note: a Ranks range from 1-53 for all dimensions except Confucian dynamism 1-20 Source: Hofstede (1980) and Hofstede and Bond (1988) Table I. Scores (and ranks) for the four countries on Hofstede's dimensionsa European Journal of Marketing 35,1/2 138 countries. From another perspective, in developed countries the markets are likely to be more competitive, and therefore, issues of customer service and satisfaction might be relatively more important. Therefore, in making decisions, marketers from developed countries are less likely to take actions that are detrimental to the reputation of the company, fearing regulation as well as consumer dissatisfaction. In the context of this study, marketers from the USA and Australia should place greater importance on ethics and social responsibility as determinants of organizational effectiveness than marketers from South Africa and Malaysia. Differences in legal/political environment. In the Hunt and Vitell (1993) model, legal/political environment is depicted as a variable influencing ethical decision making. The relationship between the legal environment and ethics has been recognized by many business ethics scholars. For example, Beauchamp and Bowie (1993, p. 4) noted that: Law is the public's agency for translating morality into explicit social guidelines and practices and stipulating offenses. DeGeorge (1990, p. 14) noted that: Business is a social enterprise. Its mandate and limits are set by society. The limits are often moral, but they are also frequently written into law. Dunfee (1996, p. 18) stated that the legal system is sometimes required to nurture or implement the moral preferences of society, particularly with reference to universal moral prohibitions against physical harm. He also argued that where moral views have not converged toward a sufficiently broad consensus, the law may help to bring about a change in attitude. In the context of our study, these discussions imply that the legal/political framework within a country can be expected to impact a manager's perceptions about ethics and social responsibility. Business ethics scholars have also noted that the legal/political systems vary across countries (e. g. Vogel, 1992). In his analysis of the USA, Western Europe, and Japan, Vogel (1992) noted that in spite of globalization, the norms of business (as well as business and academic interest) in ethics were substantially higher in the USA than in other advanced capitalist countries. He attributed this to the distinctive institutional, legal, social, and cultural environment in the USA. In the context of this study, differences can be expected in the legal/political environments in the USA, Australia, Malaysia, and South Africa. While in the USA the legal/political systems are relatively well developed (and in Australia to a certain degree), the regulatory environments in Malaysia and South Africa are evolving, and therefore, the existence as well as the specificity of laws may vary across the four countries. The importance of ethics is also influenced by the degree of law enforcement, where we also can expect differences across the four countries. While elaborate legal/political systems prevail for enforcement in the USA, they are relatively less prevalent (and to varying degrees) in Australia, Malaysia, and South Africa. Vogel (1992, p. 32) pointed out that even compared to other advanced countries, the enforcement of law in the USA is more stringent, and gave the following example, In America each new disclosure of business misconduct prompts a new wave of public indignation, accompanied by numerous articles n the business and popular press which bemoan the general decline in the ethical conduct of managers and seek to explain â€Å"what went wrong† in the most recent case. This is frequently followed by Congressional hearings featuring politicians demanding more vigilant prosecution of white-collar criminals; shortly thereafter, regulatory standards are tightened, penalties are increased, and enforcement efforts are strengthened. How important are ethics? 139 It should be recognized that the potential influences of the legal/political environment are more complex than discussed here, because of the range of issues involved as well as the aspects of environment that cannot be measured directly, such as the enforcement of regulatory systems. However, differences exist between the four countries in the legal/political environment, which can be expected to influence managers' perceived importance of ethics and social responsibility relative to organizational effectiveness. In the preceding paragraphs, country differences were analyzed based on three aspects: (1) culture; (2) economic development; and (3) legal/political environment. Overall, based on cultural differences, we expect Australian, Malaysian, US, and South African marketers to attach different levels of importance to ethics and social responsibility in achieving organizational effectiveness. Based on economic environment differences, we expect that marketers from the USA and Australia will place greater importance on ethics and social responsibility than marketers from South Africa and Malaysia. Given that legal and political environments tend to vary between the four countries, we also expect the managers from these four diverse countries to attach different levels of importance to ethics and social responsibility in achieving organizational effectiveness. Thus, the following hypothesis was formulated: H1: Due to differences in culture, economic development, and legal/political environment, there are differences in the perceived importance of ethics and social responsibility among marketers in Malaysia, Australia, South Africa, and the USA. In analyzing country differences, it is evident that multiple aspects of country differences influence marketers' perceived importance of ethics and social responsibility, at times in conflicting ways (as in the effects of masculinity and individualism). Also, since this is the first attempt at investigating crosscultural variation in the perceived importance of ethics and social responsibility as determinants of organizational effectiveness, there is a lack of knowledge regarding the relative importance of differences in cultural European Journal of Marketing 35,1/2 140 dimensions. Consequently, it is not possible to hypothesize the direction of differences, only their existence. Organizational ethical climate In the Hunt and Vitell (1986; 1993) models, organizational ethical climate is included as a background variable that affects a marketer's ethical decision making. Organizational ethical climate refers to the shared understanding regarding what is correct behavior and how ethical issues will be handled (DeConinck, 1992). It helps establish and maintain the standards that delineate the â€Å"right† things to do and the things â€Å"worth doing† (Jansen and Von Glinow, 1985). The ethical climate in an organization affects ethical attitudes and standards of individuals. An organization that seeks to foster an ethical environment will not only have a code of ethics, but also the willingness and commitment to enforce it. Managers consider modifying the morality of their actions not just because of stated organizational concern, but only when specific sanctions are attached for misconduct (e. g. Laczniak and Inderrieden, 1987). The contention that organizational pressures, and not individual moral deficiencies, account for unethical standards is held by several authors (e. . Ford and Richardson, 1994). Weeks and Nantel (1992) found that wellcommunicated codes of ethics led to higher ethical standards and superior job performance of salespeople in the USA. Consequently, marketers in companies with an ethical climate that encourages ethical and socially responsible behavior and that punishes unethical behavior would perceive ethics to be more important for orga nizational effectiveness. Research has shown that when ethical standards of an organization are widely shared, organizational success will be enhanced (Hunt et al. 1989). Relevant to this study, in a recent study of US marketers, Singhapakdi et al. (1995) revealed that marketers in organizations with high levels of corporate ethical values tended to assign a higher level of importance to certain elements of corporate ethics and social responsibility. Therefore, we hypothesize that H2: Irrespective of country, organizational ethical climate is positively related to managers' perceived importance of ethics and social responsibility relative to different aspects of organizational effectiveness. Gender Gender is generally recognized as an important personal characteristic influencing an individual's ethical decisions. For example, Gilligan (1982) argued that men and women differ in their moral reasoning. In particular, men are more likely to adhere to the â€Å"ethic of justice† by emphasizing rules and individual rights. Women, however, are more likely to adhere to the â€Å"ethic of care† by emphasizing relationships and compassion. In a recent meta-analysis, Franke et al. (1997) used data from more than 20,000 respondents in 66 samples nd revealed that women are more likely than men to perceive business practices as unethical. Although there has been no research directly investigating the effects of gender on perceived important of ethics and social responsibility, it has been incorporated in numerous marketing ethics studies. Based on the work of Gilligan (1982) and Franke et al. (1997), it can be argued that â€Å"the ethic of caring† exhibited by w omen would lead them to believe that taking actions in the interest of the customer would enhance company performance and would contribute to a perception of greater importance of ethics in organizational effectiveness. Thus, we would expect women to attach greater importance to ethics and social responsibility as determinants of organizational effectiveness. H3: Irrespective of country, women perceive ethics and social responsibility to be more important relative to different aspects of organizational effectiveness than men. Age Marketing ethics theories generally recognize personal characteristics as determinants of various aspects of a marketer's ethical decision-making process (e. g. Ferrell and Gresham, 1985; Hunt and Vitell, 1986). Age could also directly influence an individual's ethical decision. According to Kohlberg's (1981) cognitive moral development theory, an individual's cognition, emotion, and judgment may change as he/she moves through stages of moral development. Given that an individual moves through stages of moral development and the changes are essentially due to life experiences, intuitively one would expect a positive relationship between age and ethical behavior. In fact, Terpstra et al. (1993) have argued that people tend to become more ethical as they grow older. A good explanation is that as people age they tend to become less concerned with wealth and advancement and more interested in personal growth (Hall, 1976). In other words, older marketers are likely to appreciate the long-term benefits (to organizational performance) of acting in an ethical and socially responsible manner. Accordingly, we would generally expect a positive relationship between a marketer's age and his or her perception about the importance of ethics and social responsibility. H4: Irrespective of country, a marketer's age is positively related to his/her perception of the importance of ethics and social responsibility relative to different aspects of organizational effectiveness. Methodology Sample A self-administered questionnaire was used as the data collection technique for all four groups of marketing practitioners. For the US and South African groups, national mailing lists of professional members of the American Marketing Association (AMA) and the South African Institute of Marketing How important are ethics? 141 European Journal of Marketing 35,1/2 142 Management were used as sampling frames. For the Australian sample, a mailing list of recipients of the Australian Marketing Institute magazine was used. For the Malaysian group, the sampling frame consisted of managers responsible for making marketing decisions for companies listed on the Kuala Lumpur Stock Exchange. The questionnaire was administered in English for all four samples. Because Malaysia and South Africa are members of the British Commonwealth, English is a well-understood language, particularly in the business setting. The numbers of respondents were: 500 from Australia, 446 from the USA, 256 from South Africa, and 159 from Malaysia[1]. The response rates were 22. 7 percent (USA), 13 percent (South Africa), and 45 percent (Malaysia). Since questionnaires were not directly mailed to the sample in Australia, the response rate could not be assessed. The non-response bias for the USA and South African samples was assessed with an analysis of variance between the early and late respondent groups (Armstrong and Overton, 1977). There were no statistical differences among the two groups for either country[2]. The profiles of the respondents are summarized in Table II. They represent a range of age groups, gender, job titles, industry, and years of experience, with minor differences between the four sets of respondents. Age and gender were included in the analyses. Other variables (such as job title, education, and industry) were not included as control variables because educational systems, industry classifications, and job titles and functions vary from country to country. Measures Singhapakdi et al. (1995) developed a scale for measuring managers' perceptions about the importance of ethics and social responsibility (PRESOR) in organizational effectiveness. Seven of the 14 items from that scale were used, relating to specific aspects of organizational effectiveness such as output quality, efficiency, profitability, communication, long-term survival, competitiveness, and stakeholder satisfaction. Excluded items were statements such as â€Å"Good ethics is good business† and â€Å"Corporate strategy should include ethics and social responsibility†, which do not address specific aspects of organizational effectiveness. The scale items used in the analyses are shown in Table III. The factor structures were found to be similar across the four countries and the reliabilities were generally high[3]. It may be noted that the PRESOR scale has previously performed satisfactorily in terms of reliability, as well as content and predictive validity (Singhapakdi et al. , 1995, 1996). Organizational ethical climate, gender and age. The corporate ethical values (CEV) scale developed by Hunt et al. (1989) was used in this study to measure organizational ethical climate. The scale was designed to reflect â€Å"a composite of the individual ethical values of managers and both the formal and informal policies on ethics of the organization† (Hunt et al. , 1989). The five-item CEV scale[4] was developed to three broad-based perceptions: Characteristics of respondents Gender Male Female Age group Under 30 30 to 39 40 to 49 50 and over 50 Education High school or less Some college Bachelor's degree Master's degree Doctorate Othera Job title CEO/president/MD/director Marketing managers Others Industry USA Wholesale or retail Manufacturer or construction Services Communications Advertising or public relations Marketing consulting Other Malaysiab Consumer products Diversified Construction Trading services Finance Properties Plantation Mining and primary resources Notes: sample; a b Australia (%) Malaysia (%) South Africa (%) USA (%) How important are ethics? 73. 0 27. 0 20. 0 35. 0 29. 0 17. 0 11. 0 15. 0 58. 0 15. 0 1. 0  ± 37. 0 52. 0 11. 0 84. 0 16. 0 11. 0 39. 0 40. 0 10. 0 6. 0 10. 0 43. 0 24. 0 1. 0 16. 0 39. 0 30. 0 31. 0 80. 0 20. 0 4. 0 29. 0 40. 0 27. 0 6. 0 15. 0 30. 0 30. 0 19. 0 2. 0 44. 0 37. 0 19. 0 51. 0 49. 0 17. 0 37. 0 29. 0 17. 0 1. 0 6. 0 43. 0 43. 0 6. 0  ± 47. 0 43. 0 10. 0 143 3. 0 10. 0 20. 0 33. 0 7. 0 17. 0 6. 0  ±  ±  ±  ±  ±  ±  ±  ±  ±  ±  ±  ±  ±  ±  ± 37. 0 4. 0 3. 0 28. 0 11. 0 13. 0 3. 0 1. 0 7. 0 20. 0 25. 0 7. 0 1. 0 5. 0 35. 0  ±  ±  ±  ±  ±  ±  ±  ± 12. 0 17. 0 35. 0 9. 0 7. 0 18. 0 2. 0  ±  ±  ±  ±  ±  ±  ±  ± Other educational qualifications include professional education in the Malaysian This categorization of industries was appropriate in the Malaysian context Table II. Profiles of respondents in Australia, Malaysia, South Africa and USA 144 European Journal of Marketing 35,1/2 Organizational effectiveness dimension Univariate tests Quality: while output quality is essential for corporate success, ethics and social responsibility are not NS Communication: communication is more important to the overall effectiveness of an organization than whether or not it is concerned with ethics and social responsibility 5. 1 0. 0001 Profits: The most important concern for a firm is making profits, even if it means bending or breaking rules 5. 45 0. 0001 Competitiveness: To remain competitive in a global environment, business firms will have to disregard ethics and social responsibility NS Survival: If survival of a business enterprise is at stake, then you must forget about ethics and social responsi bility 21. 25 0. 0001 Efficiency: Efficiency is much more important to the firm than whether or not the firm is seen as ethical or socially responsible 14. 1 0. 0001 Stakeholder satisfaction: If stakeholders are unhappy, nothing else matters 11. 19 0. 0001 Multivariate tests  ± F based on Wilk's lambda (21, 3,673 df) 5. 38 0. 0001 66. 43 28. 62 74. 24 49. 95 39. 79 29. 46 27. 17 0. 0001 0. 0001 0. 0001 0. 0001 0. 0001 0. 0001 0. 0001 Table III. Multivariate and univariate results Country Organizational culture Gender Age 17. 88 0. 0001 3. 68 0. 0552 8. 97 0. 0028 6. 46 0. 0112 17. 63 0. 00001 NS NS 2. 56 NS 0. 0535 NS NS NS NS NS 1) the extent to which employees perceive their managers are acting ethically in their organization (item 1); (2) the extent to which employees perceive that managers are concerned about the issues of ethics in their organization (item 3); and (3) the extent to which employees perceive that ethical (unethical) behavior is rewarded (punished) in their orga nization (items 2, 4, and 5) (Hunt et al. , 1989). The CEV was measured using a nine-point Likert scale with 1= â€Å"completely disagree†and 9= â€Å"completely agree†. For each respondent, the CEV score was obtained by summing all CEV items (with items 1 and 2 reverse-coded). A high CEV score means that the manager works in an organization with higher corporate ethical values. The similarity of factor structures of the CEV scale between the four countries was assessed to be moderate and the reliabilities of the scale were high[5]. The CEV measure has been used in the past (e. g. Hunt et al. , 1989; Singhapakdi et al. , 1995). Gender was measured as a dichotomous variable and age was measured in four categories. Results Multivariate analysis of variance (MANOVA) was performed using the seven PRESOR items as dependent variables, and the country of residence, organizational ethical climate, gender, and age as independent variables[6]. MANOVA results show that overall country of residence, organizational ethical climate, gender, and age significantly explain differences between marketers from the four countries in their perception of the importance of ethics and social responsibility in achieving organizational effectiveness (F = 5. 38 based on Wilks' Lambda, p < 0. 001). H1 states that there are country differences in the perceived importance of ethics and social responsibility in achieving organizational effectiveness. Univariate analysis of variance (ANOVA) identified significant cross-country differences between marketers on all PRESOR items except output quality and competitiveness. For example, there are differences in the extent to which marketers from the four countries believe that â⠂¬Å"the most important concern for a firm is making profits, even if it means bending or breaking rules† (F = 5. 45, p < . 001). Also, there are differences in the extent to which they agree with statements such as â€Å"if survival of a business enterprise is at stake, then you must forget about ethics and social responsibility† (F = 21. 25, p < 0. 0001), â€Å"efficiency is much more important to the firm than whether or not the firm is seen as ethical or socially responsible† (F = 14. 91, p < . 0001), and â€Å"communication is much more important to the overall effectiveness of an organization than whether or not it is concerned with ethics and social responsibility† (F = 5. 1, p < 0. 0001). Therefore, there is support for H1 (average scores for marketers from the four countries on each of the seven items are given in Table IV). How important are ethics? 145 European Journal of Marketing 35,1/2 146 H2 states that the organizational ethical climate posi tively influences managers' perceived importance of ethics and social responsibility. In fact, results indicate it has a strong influence on all seven dimensions of PRESOR with F statistics ranging from 27. 17 to 74. 24 (with all p ; 0. 0001). Therefore, H2 is supported. Results also indicate gender differences in managers' perceived importance of ethics and social responsibility in achieving organizational effectiveness on the quality, communication, profits, competitiveness, and survival dimensions, but not on the efficiency and stakeholder satisfaction dimensions (F statistics ranging from 3. 68 to 17. 88). Therefore, H3 is generally supported. Also, results related to H4 indicate that, in general, there are no age differences in the perceived importance of ethics and social responsibility in achieving organizational effectiveness. Therefore, H4 is not supported. The lack of significance of age in influencing PRESOR is probably a reflection of the greater impact of environmental factors such as greater societal expectations and awareness about ethical issues. Discussion and implications The current investigation into cross-country variation in perceptions of marketing professionals regarding the importance of ethics and social responsibility as determinants of business success has potential implications for international companies. In the international marketing context, cultural, economic, and other gaps between international buyers and sellers create the potential for conflicts of values, which in turn hinder smooth business interactions between the parties. Whether a marketing organization engages in exporting, importing, joint ventures, licensing agreements or fully owns an overseas operation, the scope exists for conflict of values, especially in the areas of marketing ethics and social responsibility. For example, in recent years, companies in the USA have faced public disapproval of the unethical practices of their overseas suppliers. As businesses all over the world progressively globalize their operations, it becomes necessary that they understand whether there are significant gaps between their ethical and social responsibility perceptions and their overseas partners. Such perceptual gaps need to be systematically investigated and measures taken to reduce or, preferably, eliminate them in the interest of establishing enduring international business Organizational effectiveness dimension Australia 7. 67 6. 16 6. 93 7. 56 7. 22 6. 44 6. 82 Malaysia 7. 61 5. 27 6. 61 7. 27 5. 76 5. 12 5. 79 South Africa 7. 96 6. 40 7. 01 7. 71 7. 05 6. 26 6. 6 USA 7. 82 6. 23 7. 46 7. 69 7. 64 6. 72 7. 08 Table IV. Output quality Mean perceived Communication importance of ethics Profits and social responsibility scores on Competitiveness different dimensions of Survival Efficiency organizational Stakeholder satisfaction effectiveness relationships. This study identified three sources of gaps that can exist between marketers from d ifferent countries in terms of the perceived importance of ethics and social responsibility as determinants of organizational effectiveness. They are: (1) Country differences in culture, economic development, and legal/ political environment. 2) Differences in organizational ethical climate. (3) Gender differences. Similarities and differences were found between countries in terms of the extent to which they find ethics and social responsibility to be important relative to some dimensions of organizational effectiveness. On two dimensions, output quality and competitiveness, there were no significant inter-country differences. It seems that output quality and competitiveness are universal business orientations exhibited by marketing executives, which is consistent with globalization of markets and the accompanying intensification of competition. International companies, therefore, may assume that their counterparts in different parts of the world will be as concerned with output quality and competitiveness (relative to ethical and social responsibility concerns). Hence, these two core business values can provide common bases for successful international negotiations and establishing long-term relationships, which are critical for success in the international business arena. While there are inter-country similarities on these two dimensions, significant inter-country differences were found with regard to other organizational effectiveness dimensions: communications, efficiency, profits, survival, and stakeholder satisfaction. Based on the findings of our study, multi-national companies who transfer employees between these four countries can help them anticipate differences in perceptions about the importance of ethics and social responsibility relative to different aspects of organizational effectiveness. For example, Malaysian companies posting managers in Australia (or South Africa or the USA) might want to educate them about the environmental differences that lead to Australian managers placing greater importance on ethics and social responsibility relative to profitability, efficiency, communication, survival, and stakeholder satisfaction. These perceptual differences can impact ethical attitudes and actions, and therefore, managerial expectations about overseas employees should be altered accordingly. Corporate managers should also give a thought to what can be done to overcome these differences in perceived importance of ethics and social responsibility. The content of ethics training programs can incorporate the findings of this study by developing scenarios and cases highlighting the tradeoffs between ethics and social responsibility, and specific aspects of organizational effectiveness, such as efficiency and stakeholder satisfaction. These scenarios can be extended by including cross-national differences in How important are ethics? 47 European Journal of Marketing 35,1/2 148 culture, economic development, and legal/political environment, as well as differences in perceptions about ethics and social responsibility across countries. Organizational ethical climate positively influenced the perceived importance of ethics and social responsibility across all four countries. Irrespective of the country, organizational ethical climate had a strong influence on all seven dimensions of organizational effectiveness vis-a-vis ethics A and social responsibility. Therefore, we can conclude that organizations from different countries with similar organizational ethical climates can find common ground on issues of ethics and social responsibility. Hence, international companies, when scouting for suitable partners in foreign markets, may look for overseas partners with similar organizational ethical values. This would ensure smoother business relations and interactions especially in the areas of ethics and social responsibility. Also, it is useful for international marketers to know that, in general, women perceive ethics and social responsibility to be more important in achieving organizational effectiveness than men, though there are no differences across age groups. This is particularly relevant given the increase in employment of women in the workplace. Limitations This study has some potential limitations. One concerns the limited number of factors investigated in our study. Ethical decision making is a very complex phenomenon, and exploring cross-cultural differences is even more difficult. For example, in addition to the variables we studied, marketing ethics theories have also specified moral philosophies, personal values, religion, professional environment, and organizational and industrial characteristics as important background factors underlying the ethical decision making of managers (e. g. Ferrell and Gresham, 1985; Hunt and Vitell, 1986). However, the scope of this study is limited to cultural dimensions, economic environment, organizational ethical climate, and selected demographic variables as explanatory factors. It should be pointed out that in this study, some important demographic variables, such as education, were not included because of a lack of conceptual equivalence, as explained in the next section. Another limitation concerns the samples analyzed in this study. Although four relatively diverse countries were studied, the findings can not be generalized to other countries with different cultural characteristics and levels of economic development. Future research avenues This research can be extended in many ways. As a first step, a non-directional hypothesis for country differences was presented. This was necessitated by the fact that this was the first study dealing with the investigation of cross-cultural variation in the perceived importance of ethics and social responsibility as determinants of organizational effectiveness. Future research should investigate the direction of expected differences. A comprehensive framework modeling antecedents and consequences of the perceived importance of ethics and social responsibility can be developed and tested. This will add another dimension to our understanding of ethical decision making. As pointed out earlier, one limitation of this study concerns its limited samples and, consequently, its limited generalizability. Therefore, there is a need to replicate this study using managerial samples from other countries with different cultural characteristics and/or levels of economic development. Given the complexity of the phenomenon under study, future research should investigate other determinants specified in marketing ethics models, such as moral philosophies, personal values, religion, professional environment, and organizational and industrial characteristics. Among demographic variables, education could be an important determinant but was not included because of a lack of conceptual equivalence. In cross-cultural research, conceptual equivalence in terms of the meaning of research concepts, stimuli, and materials must first be established before any meaningful comparisons are made (Malhotra et al. , 1996). In our study, the US sample is predominantly business-educated, which might not be the case with the other three samples. In addition to differences in the educational background of the managers, the lack of conceptual equivalence can also be attributed to: . The educational systems and curricula in the four countries being different. . Differences in the extent to which ethics is required to be emphasized in the curriculum content across different countries (for example, accredited business schools in the USA are required to incorporate business ethics into their curricula, and such requirements might exist to a greater or lesser degree in other countries). . Variation in the extent to which ethics is actually incorporated and emphasized in the curricula. Thus, it is not education per se, but the incorporation of ethics into educational curricula, the actual implementation, and its impact on the managers that is likely to influence their perceived importance of ethics and social responsibility. In the future, the cross-country differences in educational background of the respondents as well as the extent to which ethics is emphasized in education should be measured, and analyzed as a potential factor influencing a manager's perceived importance of ethics and social responsibility. Conclusion To summarize, this research investigated whether marketers from Australia, Malaysia, South Africa, and the USA differ in their beliefs regarding the importance of ethics and social responsibility as determinants of organizational effectiveness. The study was based on an alternative approach to studying perceptions about ethical issues and problems in business. Traditionally cross- How important are ethics? 149 European Journal of Marketing 35,1/2 150 cultural researchers have evaluated ethical perceptions, attitudes, and intentions with regard to specific business/marketing practices involving ethical problems. Here, we investigate differences in the perceived importance of ethics and social responsibility in relation to various aspects of organizational effectiveness such as quality, communication, profits, competitiveness, survival, efficiency, and stakeholder satisfaction. The results of this study are important because perceived importance of ethics and social responsibility has been shown to influence ethical intention, when managers are faced with an ethical situation (Singhapakdi, 1999). Results indicate that differences in the perceived importance of ethics and social responsibility among marketers from the four countries exist because of: . ountry differences in culture, economic development, and legal/political environment; . differences in organizational ethical climate; and . gender differences. There are not any differences due to age. Overall similarities and differences among the four countries emerged on specific dimensions of business effectiveness. On the dimensions of out put quality and competitiveness, there were no differences among the four countries. Inter-country differences were found on the dimensions of communication, efficiency, profits, survival, and stakeholder satisfaction. These findings regarding cross-cultural similarities and differences are useful in furthering our understanding and management of ethics and social responsibility in the international context. Notes 1. For subsequent analysis using LISREL, a sample size of 159 was judged adequate because it is close to the recommended level of ten observations for every parameter estimated (Haire et al. , 1998). 2. For the Australian and Malaysian sample, the non-response bias based on early and late respondents could not be assessed as this information (i. e. dates when the questionnaires were received) was not recorded at the time of data collection. . The similarity of factor structures of the seven-item scale for individual countries was assessed with confirmatory factor analysis. Fit measures for individual countries, including chi-square per degree of freedom (range 1. 87-3. 32), GFI (0. 94-0. 97), AGFI (0. 890. 95), and CFI (range 0. 91-0. 96), for the four countries were high. The reliability of the seven-item scale ranged from 0. 73-0. 76 for the four countries. 4. The five items in the corporate ethical values scale were: . Managers in my company often engage in behavior that I consider to be unethical. . In order to succeed in my company, if is often necessary to compromise one's ethics. Top management in my company has let it be known in no uncertain terms that unethical behaviors will not be tolerated. If a manager in my company is discovered to have engaged in unethical behavior that results in personal gain (rather than corporate gain), he/she will be promptly reprimanded. . If a manager in my company is discovered to have engaged in unethical behavior that results in corporate gain (rather than personal gain), he/she will be promptly reprimanded. 5. The similarity of factor structures of the five-item CEV scale for individual countries was assessed with confirmatory factor analysis. Fit measures for individual countries, including chi-square per degree of freedom (range 2. 00-35. 23), GFI (0. 88-0. 99), AGFI (0. 63-0. 99), and CFI (range 0. 74-0. 99), for the four countries were moderate. The reliability of the five-item scale ranged from 0. 69-0. 87 for the four countries. 6. Since a requirement of MANOVA is that the dependent variables be correlated, the appropriateness of the multivariate technique was tested by Bartlett's test of sphericity (Hair et al. 1998). The test (Bartlett's chi-square = 123. 7 with six degrees of freedom, p = 0. 001) indicated that MANOVA is appropriate for analyzing the data. . 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