Marketing has major benefits for entrepreneurs in emerging markets, study shows
(Press-News.org) Their field may not be top of mind among those that contribute to the greater good, yet new research from the University of Notre Dame shows marketers can help entrepreneurs in emerging markets grow their businesses, which in turn helps them to improve lives, sustain livelihoods, enhance overall living standards and strengthen societies.
"Do Marketers Matter for Entrepreneurs? Evidence from a Field Experiment in Uganda" is forthcoming in the Journal of Marketing from Frank Germann, an associate professor of marketing at Notre Dame's Mendoza College of Business who teaches core marketing courses in the Notre Dame MBA program.
Germann, along with Stephen Anderson from the University of Texas at Austin, Pradeep Chintagunta from the University of Chicago and Naufel Vilcassim from the London School of Economics, conducted a randomized, controlled field experiment with 930 Ugandan businesses that were aided by international business support volunteers including marketers from more than 60 countries.
"Volunteer marketers helped entrepreneurs grow sales, profits, assets and employees," Germann said. "Specifically, compared to control firms, the supported entrepreneurs grew monthly sales by 52 percent on average, while their monthly profits improved by 36 percent, total assets rose by 31 percent and the number of paid employees increased by 24 percent."
Entrepreneurs are ubiquitous in emerging markets. In 2010, more than 31 percent of the adult population in Uganda was either starting a business or running a business less than four years old. "However," Germann pointed out, "many emerging market entrepreneurs struggle to make ends meet, and their firms' growth rates are low, stifling the positive impact they could have on society."
Prior studies have shown the low growth rates appear to result from most businesses being too similar and failing to attract customer interest. "Marketing helps firms to differentiate by focusing on the question, 'Why should the customer buy from the firm and not elsewhere?'" Germann said.
"A bake shop owner in our marketer treatment group began selling high-quality doughnuts to a local supermarket," he said. "She placed a display unit in the market, which helped differentiate her firm as a quality bake shop and attracted additional business opportunities. Also, a beauty salon owner in the sample trained herself to offer new and sought-after hairstyles. She now also sells and applies hair extensions in various colors and styles, allowing her to stand out from competitors offering only basic services."
An analysis of interactions between volunteers and entrepreneurs revealed that the marketers spent more time on product-related topics than other volunteers and helped put the focus on premium products to differentiate businesses in the marketplace. Firms with greater market knowledge or resource availability benefited significantly more than their peers when matched with volunteer marketers.
"Small-scale businesses form the commercial backbone of most emerging markets, so their performance and development are critically important," Germann added. "Research indicates entrepreneurship is one of the most effective means to alleviate poverty in developing countries."
The team hopes its study will motivate marketing practitioners to work with entrepreneurs and early-stage ventures in emerging markets and encourage business schools to incorporate versions of their "remote coaching" intervention into emerging market programs, with a focus on matching entrepreneurs with their marketing students.
Germann says organizations actively serving emerging markets should also benefit from their findings when designing and implementing future business support services delivered in emerging markets.
ELSE PRESS RELEASES FROM THIS DATE:
Cell phone data that is routinely collected by telecommunications providers can reveal changes of behavior in people who are diagnosed with a flu-like illness, while also protecting their anonymity, a new study finds. The Proceedings of the National Academy of Sciences (PNAS) published the research, led by computer scientists at Emory University and based on data drawn from a 2009 outbreak of H1N1 flu in Iceland.
"To our knowledge, our project is the first major, rigorous study to individually link passively-collected cell phone metadata with actual public health data," says Ymir Vigfusson, assistant professor in Emory University's Department of Computer Science and a first author of the study. "We've shown ...
WASHINGTON -- A multi-institutional group of researchers has developed new metamaterial tiles that will help improve the sensitivity of telescopes being built at the preeminent Simons Observatory in Chile. The tiles have been incorporated into receivers that will be deployed at the observatory by 2022.
The Simons Observatory is the center of an ambitious effort to measure the cosmic microwave background -- electromagnetic radiation left over from an early stage of the universe -- using some of the world's largest and most sophisticated ground-based telescopes. ...
Providing economic relief to struggling families can lead to another positive effect -- fewer cases of child neglect, according to new research by the University of Washington.
A 10% increase in a common benefit for low- to moderate-income working families, the Earned Income Tax Credit, led to a 9% decrease in the annual number of reports of child neglect made to child welfare agencies over a 14-year study period. That's a significant impact, researchers say, and can inform future social policies.
The study is relevant to current policy actions, as President Joe Biden has recently proposed an expansion ...
RESEARCH TRIANGLE PARK, N.C. -- Kombucha tea, a trendy fermented beverage, inspired researchers to develop a new way to generate tough, functional materials using a mixture of bacteria and yeast similar to the kombucha mother used to ferment tea.
With Army funding, using this mixture, also called a SCOBY, or symbiotic culture of bacteria and yeast, engineers at MIT and Imperial College London produced cellulose embedded with enzymes that can perform a variety of functions, such as sensing environmental pollutants and self-healing materials.
The team also showed that they could incorporate yeast directly into the cellulose, creating living materials that could be used to purify water for Soldiers in the field or make smart packaging materials that can detect damage.
COLUMBIA, Mo. - In 2016, the World Health Organization called the Zika virus epidemic a "public health emergency of international concern" due to the virus causing birth defects for pregnant women in addition to neurological problems. Since then, researchers have wrestled with different strategies for controlling the spread of Zika virus, which gets transmitted to humans from female mosquito bites.
One approach, which was approved by the Environmental Protection Agency in May, will release more than 750 million genetically modified mosquitos into the Florida Keys in 2021 and 2022. These "suicide mosquitos" are genetically-altered to produce offspring that die before emerging into adults and therefore cannot ...
An international research collaboration, involving scientists from the UK, US and Spain, has shed new light on the usefulness of digital contact tracing (DCT) to control the spread of Covid-19.
The study, published today in Nature Communications, assessed the effectiveness of the Spanish DCT app, Radar COVID, following a 4-week experiment conducted in the Canary Islands, Spain between June-July 2020.
For the experiment, funded by the Secretary of State of Digitalisation and Artificial Intelligence (SEDIA), the researchers simulated a series of Covid infections in the capital of La Gomera, San Sebastián de la Gomera, to understand whether the Radar COVID app technology could ...
Individual variations in how the immune system responds to SARS-CoV-2 appear to impact the severity of disease. Researchers at Karolinska Institutet in Sweden have now been able to show that patients with severe COVID-19 have significantly elevated levels of a certain type of immune cells in their blood, called myeloid-derived suppressor cells. The study published in the Journal of Clinical Investigation may bring an increased understanding of how early immune responses impact disease severity.
Most individuals with COVID-19 develop mild to moderate symptoms and recover without needing hospital treatment. In severe cases, however, COVID-19 can lead to respiratory failure or even death. It is not yet known ...
Materials scientists of Far Eastern Federal University (FEFU), in collaboration with an international research team, have advanced the design of composite ceramic materials (Ce3+:YAG-Al2O3), i.e. solid-state light converters (phosphors) that can be applied in-ground and aerospace technologies. The LED systems based on the developed materials to save 20-30 percent more energy compared to commercial analogues. A related article was published in Materials Characterization.
Over 15% of the total global electricity production or about $ 450 billion annually spent on lighting. According to the photonics development roadmap run in Russia, the development of LED technology with an efficiency of more than 150 ...
Canada could be sitting on a significant untapped resource, as the number of PhD holders in this country rises, but persistent barriers make it hard for them to put their skills to work. According to a new expert panel report from the Council of Canadian Academies (CCA), PhD graduates play a critical role in the Canadian economy, but many are missing out on important opportunities to contribute their expertise and bolster growth and innovation.
"The growing number of PhD graduates in Canada could represent a significant opportunity to drive innovation and increase our competitiveness in a global economy," said M. Elizabeth Cannon, O.C., PhD, FRSC, FCAE, Chair of the Expert Panel. "The difficulties graduates face raise important questions about the nature of PhD ...
"74 percent of the respondents consider the national vaccination strategy to be appropriate," says BfR-President Professor Dr. Dr. Andreas Hensel. "This indicates that the strategy is accepted."
While some regulations, such as the cancellation of events or the quarantine measures, have always been met with approval in recent months, other measures are now less accepted. Whereas shortly before Christmas, 84 percent of the respondents considered the contact restrictions to be appropriate, 74 percent say so in the current survey. Over the same period, approval of the closure of shops fell by ten percentage points to 56 percent.
In the previous ...
LAST 30 PRESS RELEASES:
[Press-News.org] Marketing has major benefits for entrepreneurs in emerging markets, study shows