Establishing Profitable Customer Loyalty for Multinational Companies in the Emerging Economies: a Conceptual Framework
A Review of the Article
Establishing Profitable Customer Loyalty for Multinational Companies in the Emerging Economies: A Conceptual Framework
By
Sagar D. Agrawal
Roll No.: 102
MMS – Marketing
K.J. Somaiya Institute of Management Studies & Research
Vidyanagar, Vidyavihar (E), Mumbai – 400 077
The authors capture our attention by asking why some companies succeed at going multinational while others continue to struggle inspite of making significant efforts to gain market share by investing time and human and financial resources. For example, despite its presence in India since 1993, Coca-Cola has yet to bypass the popularity of the local Indian drink, Thumps Up. Conversely, there are success stories: General Motors’ performance in Brazil, McDonald’s ability to create niches in China and India. This article has more than 20 concise findings (what to dos/what not to dos) for a company to do achieve “Profitable Customer Loyalty”. The study highlighted in this article was a qualitative study interviewing 42 managers of multinational companies from US, Canada, Asia, Europe and Australia to glean insights that identify possible factors that drive the creation of both a profitable and loyal customer base (termed “profitable loyalty” in the study) in emerging economies. The finding related to “innovation” was “Incremental and adaptive innovations are more likely to create PCL in emerging economies than radical innovations”. This article proposes a conceptual framework that can be used to establish profitable customer loyalty in emerging economies. It focuses on the key factors namely- Customer specific, Marketing Mix, Firm specific as well as Moderating variables that can help the MNCs to establish profitable customer loyalty in the long run.
The emerging economies continue to hold much promise to MNCs because of the:
(1) Presence of a significantly larger middle-class population with a higher per capita income
(2) Higher levels of disposable income
(3)
Establishing Profitable Customer Loyalty for Multinational Companies in the Emerging Economies: A Conceptual Framework
By
Sagar D. Agrawal
Roll No.: 102
MMS – Marketing
K.J. Somaiya Institute of Management Studies & Research
Vidyanagar, Vidyavihar (E), Mumbai – 400 077
The authors capture our attention by asking why some companies succeed at going multinational while others continue to struggle inspite of making significant efforts to gain market share by investing time and human and financial resources. For example, despite its presence in India since 1993, Coca-Cola has yet to bypass the popularity of the local Indian drink, Thumps Up. Conversely, there are success stories: General Motors’ performance in Brazil, McDonald’s ability to create niches in China and India. This article has more than 20 concise findings (what to dos/what not to dos) for a company to do achieve “Profitable Customer Loyalty”. The study highlighted in this article was a qualitative study interviewing 42 managers of multinational companies from US, Canada, Asia, Europe and Australia to glean insights that identify possible factors that drive the creation of both a profitable and loyal customer base (termed “profitable loyalty” in the study) in emerging economies. The finding related to “innovation” was “Incremental and adaptive innovations are more likely to create PCL in emerging economies than radical innovations”. This article proposes a conceptual framework that can be used to establish profitable customer loyalty in emerging economies. It focuses on the key factors namely- Customer specific, Marketing Mix, Firm specific as well as Moderating variables that can help the MNCs to establish profitable customer loyalty in the long run.
The emerging economies continue to hold much promise to MNCs because of the:
(1) Presence of a significantly larger middle-class population with a higher per capita income
(2) Higher levels of disposable income
(3)