Spoils from the Spoiled: Strategies for Entering Stigmatized Markets

Shantz, Angelique Slade; Fischer, Eileen; Liu, Aurora; Lévesque, Moren

doi:10.1111/joms.12339

Cited by 32 publications

(54 citation statements)

References 87 publications

(202 reference statements)

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“…The paper by Slade Shantz et al () argues that stigmatized markets are those where either the products/services, or the consumers, or both, have been collectively, negatively stereotyped and devalued by one or more stakeholder audiences in ways that discredit the overall market. Many stigmatized markets exist, and many flourish, yet little systematic attention has focused on entry into such markets.…”

Section: Summary Of Papers In This Special Issuementioning

confidence: 99%

The Who, Where, What, How and When of Market Entry

Markman

Gianiodis

Payne³

et al. 2019

J Management Studies

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This introductory, along with the eight articles contained within this Special Issue, highlights and brings greater clarity to entrant‐incumbent interactions and to firm movement – when entrants traverse market territories for the creation and/or delivery of offerings, where ‘markets’ include service or product categories, technology or resource spaces, industries, sectors and/or geographies. Collectively, this Special Issues explains that firm movement across market boundaries is highly consequential, influencing resource‐capability mixes inside firms, interfirm relations, market logic and industry value chains, and of course, people, communities and even nations. Specifically, we develop a field‐wide perspective of market entry by expanding on the framework of market entry that Zachary and his colleagues developed (Zachary et al., 2015) – i.e., the who (players such as incumbents, entrants, suppliers, etc.), when (the timing and sequence of entry), how (the strategy, resources, capabilities, etc.), where (the space of entry) and what (product, service, business model, etc.) – to include two additional categories: complements (networks, platforms, ecosystems) and non‐market elements (government, political, social and cultural arrangements). We also summarize the eight highly diverse and insightful articles that make this Special Issue, and conclude with a discussion to highlight foundational questions that point to new directions in future research in this field. In sum, we hope to inspire scholars to go beyond counting outcomes (e.g., entry/exit rates, or profiling successful versus unsuccessful entrants), to consider contexts, processes and contingencies (e.g., cost, time, collaboration, competition, interfirm relations, etc.) and to discover boundary conditions that inform a theory of market entry.

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Section: Summary Of Papers In This Special Issuementioning

confidence: 99%

The Who, Where, What, How and When of Market Entry

Markman

Gianiodis

Payne³

et al. 2019

J Management Studies

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“…Wineries in nontraditional wine regions could also actively engage in avoiding or removing stigma. In the short term, a reasonable approach from a firm perspective is to focus on quality, build brand recognition, and avoid stigma by pursuing a decoupling strategy (Slade Shantz et al, 2018). Based on regulations from the Alcohol and Tobacco Tax and Trade Bureau (TTB), 12 an appellation of origin can be the name of a country, a state, a county, or an official American Viticultural Area, so there is no binding obligation to display state identifiers on a label.…”

Section: Discussion and Policy Recommendationsmentioning

confidence: 99%

“…One problem is that quality control alone may be insufficient. If negative attitudes have a stigma or stereotype-like traits, and wines of similar tasting quality are deemed inferior only because of their origin, changing perceptions will require strategic and concerted effort (see Slade Shantz et al, 2018). When purchasing outside of a tasting room, consumers can only rely on extrinsic quality cues (Steenkamp, 1990), which makes regional information much more salient, especially to high-involvement consumers (Lockshin et al, 2006).…”

Section: Introductionmentioning

confidence: 99%

Consumer Stigma and the Reputation Trap Hypothesis: An In-Store Experiment with Colorado Wines

Costanigro

Jablonski

2021

J Wine Econ

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We conducted an in-store experiment to test the hypothesis that Colorado wines may suffer from reputational stigma. The context relates to marketing challenges faced by novel wine regions entering the competitive retail environment, even in a local context, and the possibility of being stuck in a “bad reputation trap.” Adopting a 2×2 design where we varied region of production (Colorado vs. California) and grape variety (familiar vs. unfamiliar), we administered a between-subject information treatment that revealed the origin of production to only half of the participants. We measured taste perceptions using Likert scales, and we elicited valuation via a multiple price listing. Our results are consistent with the presence of stigma against wines produced in Colorado. In the discussion, we draw from the literature on stigmatized markets to suggest plausible strategies to remove or avoid stigma. (JEL Classifications: L1, L15, Q1, Q13)

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“…Pierce [30] focused on ecosystem niches, considering the big losses driven by core firm decisions. Slade et al [31] considered stigmatized markets as the environment to be entered. Stremersch et al [32] discussed the indirect network effect on market entry.Regional logic was said to be an influencing factor in Vedula and Corbett's [33] study.…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainable Market Entry Strategy under a Supply Chain Environment

Wang

2021

Sustainability

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Firms routinely face the challenging decision of whether and how to enter a new market. Inspired by the practice of Chinese household appliance firms sustainably entering the rural market from the urban market, Tesla and Topshop entered the Chinese market from their own. We model a supply chain system composed of a manufacturer and a retailer to investigate entry strategies for facing a new market. These sustainable entry processes can help enterprises better achieve their own promotion and increase profits. The equilibrium solutions indicate that (1) the manufacturer’s exclusive entry mode is “market development” entry, while the retailer’s exclusive entry or joint entry mode can achieve “dual benefit” entry under certain conditions; and (2) both the manufacturer and the retailer prefer the joint entry mode. It is the only Nash equilibrium. Monopoly firms dominating the new market may not be profitable all the time. Appropriate competition can bring about a win-win situation. These results provide theoretical proof for the preference and rationality of the rural market entry mode in the Chinese household appliance industry and of the overseas market entry mode for international enterprises.

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Spoils from the Spoiled: Strategies for Entering Stigmatized Markets

Cited by 32 publications

References 87 publications

The Who, Where, What, How and When of Market Entry

The Who, Where, What, How and When of Market Entry

Consumer Stigma and the Reputation Trap Hypothesis: An In-Store Experiment with Colorado Wines

Sustainable Market Entry Strategy under a Supply Chain Environment

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