Model
Digital Document
Publisher
Florida Atlantic University
Description
Foreign-market opportunity analysis is the most frequent objective of
international marketing research (Czinkota and Ronkainen 2007).
The importance of foreign market opportunity assessment has been well noticed
by both marketing managers and scholars. However, a foreign market opportunity
analysis model based on theory that goes beyond aggregate demand is still lacking. This
dissertation proposes a new model by combining marketing-based Overall Market
Opportunity Index (OMOI) scheme with the economic-based gravity model of
international trade. Hypotheses were tested as well as the usefulness of OMOI/Gravity
Hybrid Model through three separate models with empirical analyses structured as
follows.
The first model extends existing screening methods by combining both OMOI
and gravity models. Unlike previous studies using ad hoc or equal weights on variables,
this study employs Confirmatory Factor Analysis (CF A) and weight derived from
regression coefficient on each factor under study and thus gives a more realistic
estimation of the potential for aggregate exports. The second model goes beyond the previous work on aggregate exports by
examining data at the sector and category level. In this study, comparisons were drawn
between the OMOI/Gravity Hybrid Model in three sectors (manufacturing goods exports,
agricultural goods exports and service exports) and 1 0 1-digit SITC categories (SITC 0 to
SITC 9).
The third model moves from the OMOI/Gravity Hybrid Model to the Industry
Market Opportunity Index (IMOI)/Gravity Hybrid Model. This model develops a
framework that analyzes market potential for specific industries classified by 2- and 3-
digit SITC.
international marketing research (Czinkota and Ronkainen 2007).
The importance of foreign market opportunity assessment has been well noticed
by both marketing managers and scholars. However, a foreign market opportunity
analysis model based on theory that goes beyond aggregate demand is still lacking. This
dissertation proposes a new model by combining marketing-based Overall Market
Opportunity Index (OMOI) scheme with the economic-based gravity model of
international trade. Hypotheses were tested as well as the usefulness of OMOI/Gravity
Hybrid Model through three separate models with empirical analyses structured as
follows.
The first model extends existing screening methods by combining both OMOI
and gravity models. Unlike previous studies using ad hoc or equal weights on variables,
this study employs Confirmatory Factor Analysis (CF A) and weight derived from
regression coefficient on each factor under study and thus gives a more realistic
estimation of the potential for aggregate exports. The second model goes beyond the previous work on aggregate exports by
examining data at the sector and category level. In this study, comparisons were drawn
between the OMOI/Gravity Hybrid Model in three sectors (manufacturing goods exports,
agricultural goods exports and service exports) and 1 0 1-digit SITC categories (SITC 0 to
SITC 9).
The third model moves from the OMOI/Gravity Hybrid Model to the Industry
Market Opportunity Index (IMOI)/Gravity Hybrid Model. This model develops a
framework that analyzes market potential for specific industries classified by 2- and 3-
digit SITC.
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