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The optimal internal marketing strategy in services under open economy

Wann-Yih Wu and Cheng-Feng Cheng

Applied Economics Letters, 2009, vol. 16, issue 8, 841-845

Abstract: This article attempts to develop a conceptual model to evaluate the optimal internal marketing strategy in services under open economy, and then verifies the effect of this marketing strategy on the satisfaction of marketing channel members. For its conceptual model, this study employs the concept of natural logarithm and Lagrange function to optimize an internal marketing strategy for international service that can maximize satisfaction of marketing channel members. The results suggest that service providers should increase the proportion of their portfolio's standardization strategy in their overall international marketing strategy if the positive association between their standardization strategy and strategic performance is relatively strong. We also provide optimal guideline for determining the allocation of resources. Furthermore, the results of structural equation modelling also ascertain the fitness of structure of the model.

Date: 2009
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