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Strategic Entry Modes and Country of Origin Effect

In: International Marketing Strategy

Author

Listed:
  • Giovanna Pegan

    (University of Trieste)

  • Donata Vianelli

    (University of Trieste)

  • Patrizia de Luca

    (University of Trieste)

Abstract

The role the COO can play in the international entry strategy depends heavily on how the distribution channel is structured, especially in relation to the choice of entry mode. The entry method must be chosen with great care as a long channel can lead to the paradox of selling a product abroad at a much higher price than in the domestic market while encountering many difficulties in enhancing the product’s brand and the COO to justify the premium price. In fact, indirect and long marketing channels with many intermediaries between the company and the final customer often make it difficult to enhance the typicality of the product, its brand and its origins. However, if the company is directly present and works closely with foreign customers, the valorization of its origins as an element of differentiation is more effective. Moreover, the length of the channel has impacts on price escalation, due to the presence of intermediaries, transport costs, taxes, insurance costs, and other factors. This chapter describes the different entry modes, i.e., export modes, intermediate entry modes (contractual and equity based), and hierarchical modes, with the aim to identify in which cases management of the COO is especially critical and relevant.

Suggested Citation

  • Giovanna Pegan & Donata Vianelli & Patrizia de Luca, 2020. "Strategic Entry Modes and Country of Origin Effect," International Series in Advanced Management Studies, in: International Marketing Strategy, chapter 0, pages 23-38, Springer.
  • Handle: RePEc:spr:isichp:978-3-030-33588-5_2
    DOI: 10.1007/978-3-030-33588-5_2
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    Cited by:

    1. Pyper, Keith & Doherty, Anne Marie, 2022. "Employing brand governance mechanisms with export channel partners: What are the performance consequences and contingent effects?," International Business Review, Elsevier, vol. 31(5).
    2. Hiroko Oe & Yasuyuki Yamaoka, 2023. "How to Support Expanding Sales Channels of Agri-Food Products in New Markets: Healthiness and New Experiences of Tunisian Olive Oil," Businesses, MDPI, vol. 3(3), pages 1-20, June.

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