African Journal of Hospitality, Tourism and Leisure (Jan 2019)
Psychic distance and international marketing effectiveness of fast-moving consumer goods of multinational companies in Nigeria.
Abstract
The Hospitality and Tourism industry contribute tremendously to a nation's GDP. When individuals are encouraged to conduct business internationally, this helps in boosting the industry hence impacting seriously on the country's income. The Hospitality and Tourism industry should always be prepared to receive travelers since doing business abroad is ineluctable. The benefits and opportunities for the industry are numerous. They should be better prepared and develop service marketing strategies to attract visitors, develop and keep them as life time customers. The research on psychic distance and international marketing effectiveness of fast moving consumer goods multinational companies in Nigeria was conducted to investigate the effect of psychic distance on international marketing effectiveness of fast moving consumer goods multinational companies in Nigeria. Such a study has important lessons for Hospitality and Tourism per se. The study population used in this research comprised 21 registered and functional fast moving consumer goods multinational companies in Nigeria. The study adopted correlational design. Furthermore, one hundred and twenty six (126) structured copies of questionnaire were administered to managers. After data cleaning, 84 copies of the questionnaire were used for data analysis. The spearman’s Rank order correlations were used in testing the various hypotheses in other to ascertain the relationship between the predictor variable (psychic distance) and the criterion variable (international marketing effectiveness). The result of the analysis revealed that psychic distance significantly influenced international marketing effectiveness. The study further revealed that the dimensions of psychic distance used in this study (cultural, political and economic distances) significantly impact on international marketing effectiveness of FMCG multinational companies in Nigeria. Therefore, the researchers concluded that psychic distance affect international marketing effectiveness of FMCG multinational companies in Nigeria. The researcher therefore recommended that FMCG multinational companies venturing international should study and understands the cultural, political and economic contiguities of the foreign markets in other to improve their level of marketing effectiveness.
