Zaghdoudi 1

Mouna Zaghdoudi

Dr. Marleen Harrison

FYW 102

14 July 2013

Annotated Bibliography

A Cross-Cultural Analysis of Consumers’ Conspicuous Consumption of Branded Fashion

Accessories

Souiden, N.,M’Saad, B., & Pons, F.(2011). A cross-cultural analysis of consumers’ conspicuous

consumption of branded fashion accessories. Journal of International Consumer

Marketing, 23:329-343. Retrieved from http://web.ebscohost.com

This study was conducted in order to test a number of hypotheses. Two of these

hypotheses are relevant to my research paper: the relationship between the consumption of

branded fashion accessories and the buyer’s social status and self-esteem, and the variation of

conspicuous consumption of luxury accessories across cultures. The author of this article based

his study on a comparison between two countries that are totally different from a cultural

standpoint: Tunisia and Canada. The results confirm that social status display is the common

incentive for individuals to consume conspicuously in both countries. Moreover, in both

countries, consumers depict a positive relationship between social status, self-image, and

conspicuous behavior. The author also confirmed my doubts about paradoxical trends in luxury

products consumption. In fact, an increasing number of unusual markets with limited financial

resources are demanding for such goods. As he states, “This global trend is particularly observed

in emerging countries (e.g., Brazil, India, China, etc.) where the luxury market growth rate

ranges from 20% to 35%, boosted by affluent customers and social status seekers who purchase

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luxury brands.” The Tunisian consumers follow their Brazilian, Indian and Chinese peers’

footsteps by adopting conspicuous behaviors especially among young buyers who increasingly

wear branded sunglasses, and own cellular phones. This statement concurs with my personal

ascertainments through observation of my circle of friends and family. Their demand for luxury

goods push them to engage in controversial spending behaviors; from traveling up to 4 times a

year to neighboring European countries in order to acquire these goods to buying products from

illegal sources (Facebook pages selling luxury goods imported illegally), indirectly spurring the

underground economy. Another interesting point discussed in this study is the democratization of

luxury goods. As a matter of fact, manufacturers of luxury brands are making efforts to make

their products affordable to a wider range of people by adding lower-priced items to the lines.

Finally, the author encourages marketers to credit more importance to potential segments in the

developing world as they show similar interest in branded fashion accessories.

It’s not Just the Arab Spring, It’s the Economy (Stupid)

Martin, Josh. (2012). It’s not just the Arab Spring, it’s the economy (stupid). Kennedy School

Review,12, 10-11. Retrieved from http://web.ebscohost.com

In this article, Josh Martin examines the impact of the Arab Spring on the American

economy, as well as their political policies. According to Martin, American companies are seeing

Tunisia as having a “bright investment future”. He gives the example of Fidelity Investments and

IBM which opened new regional headquarters in the capital city of Tunis despite of the

December 2011 election of an Islamist coalition government (Ennahda-Ettakatol-CPR). Also,

Martin presents practical ideas on how the United States can benefit from the Arab Revolution,

and at the same time reward these post-revolutionary economies. The first step would be to sign

free trade agreements (FTAs) similar to those with Morocco, Jordan, and Bahrain. Free exchange

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of goods, services and human resources between the United States and the MENA region

(Middle East and North Africa) will create investment, and subsequently job opportunities.

Finally, Martin stresses the necessity for a radical change in the American business mentality

when dealing with post-revolutionary countries. American investors should know that the new

business environment in the Middle East and North Africa will no longer allow suspicious

practices such as preferential treatment granted to some investors by the overthrown corrupted

leaders. From now on, fair competition and ethical practices are the unique rule of businesses in

these emerging markets.

The Silver Lining of Materialism: The Impact of Luxury Consumption on Subjective Well-

Being

Hudders, L., & Pandelaere, M. (2011).The silver lining of materialism: The impact of luxury

consumption on subjective well-being. J Happiness Stud, 13, 411-437. Retrieved from

http://web.ebscohost.com

In this research article, the authors analyze materialism and its relationship with luxury

goods consumption. Previous studies proved that materialism is usually associated with reduced

well-being. Paradoxically, the persistence of many people on materialistic lifestyle contradicts

this fact, and leads us to consider a mechanism that possibly contributes to the survival of such

behavior. The main hypothesis of this study suggests that luxury consumption may reinforce a

materialistic way of living. Materialistic consumers are trapped in a vicious circle that forces

them to consume more luxury goods than less materialistic consumers in order to maintain a

certain level of satisfaction and well-being. In fact, this study shows the existence of a positive

relationship between luxury consumption, materialism and well-being. Also, the authors confirm

that consumption of luxury goods and services has a positive impact on the consumer’s mood

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and perception of life; this ascertainment is particularly true for materialistic consumers who

tend to benefit more from such behavior, which reinforces their materialistic traits.

I picked this article because one of my research paper’s goals is to approach luxury

consumption in Tunisia from a psychological standpoint. I need to examine the psychology of

the Tunisian consumer in order to confirm or deny the existence of materialistic traits that will

ensure the survival of this industry. Growing up in Tunisia, I know for a fact that most Tunisian

consumers, especially young people, are extremely materialistic and tend to spend huge amounts

of their income on luxury goods regardless of the economic class they belong to.

Tunisia’s Morning After

Maddy-Weitzman, Bruce.(2011). Tunisia’s morning after. Middle East Quarterly, Summer2011,

Vol. 18, Issue 3. Retrieved from http://web.ebscohost.com

This article assesses the economic and political Tunisian environment a few months after

the Jasmine Revolution in a comparison with the pre-revolution environment. Before the

revolution, the Tunisian economy was healthy macro-economically (low inflation rate, three

months of currency reserves, acceptable budget deficits, and an annual rate of growth of 5

percent or higher), but suffers from a number of critical problems such as “overreliance on

agriculture, the weakness of the private sector, an unfavorable international environment, and, as

a result, chronically high rates of unemployment, especially among the young.” However, these

problems can easily be fixed if the unique mix of assets that Tunisia solely enjoys is wisely

managed. In fact, Tunisia has always been known throughout the history as an open

Mediterranean trading country. Also, after the independence from the French protectorate in

1956, a modernization process took place generating a large educated middle class, literate

females who enjoy a high social status (Tunisia is the only Arab countries to ban polygamy),

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thanks to the efforts of a number of women’s rights advocates such as Habib Bourguiba and

Taher Haddad, a low rate of population growth (the lowest in the Arab World), an active civil

society formed of labor unions and the bar association, and a non-politicized military. All these

factors will play a pivotal role in the shaping of the post-revolutionary Tunisia. Nevertheless, we

need to consider some threats to the economic recovery in Tunisia such as the newly legalized

Islamist party currently in power. The help of outside investors to boost the economy is crucial in

order to limit the power of Islamists. Indeed, an economic and cultural growth will put Islamists’

Machiavellian plan in jeopardy. For these reasons, international contributions in the Tunisian

economic reform are highly encouraged. Some countries such as the United States have already

undertaken a series of projects in order to help Tunisia build a bridge towards a better future.

Hopefully, in the future, Tunisia will see more international initiatives such as economic

partnerships, productive investments and funding opportunities for young entrepreneurs.

Assessing the Entrepreneurial Ecosystem in Tunisia

Dziri, Mohammed Hedi.(2013). Assessing the Entrepreneurial Ecosystem in Tunisia.

(Unpublished masters dissertation). MIT Sloan School of Management, Boston.

This thesis is a not peer reviewed source; however, its contribution to my research will

certainly be monumental since it examines the economic ecosystem in the post-revolutionary

Tunisia in depth. This research paper was developed by one of my Tunisian friends who just got

his masters degree of science in management studies from MIT Sloan School of Management.

Hedi Dziri, the author of this paper, sees Tunisia as “a country leading change”, the Arab Spring

as an opportunity to “tackle the deeply rooted matters from which the Tunisian revolution

stems”, and entrepreneurship as “a substantial solution” to the regional economic disparity. The

major points that triggered my interest in this thesis as a possible source for my research are: the

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extensive analysis of the entrepreneurial environment (culture, government, funding, education,

infrastructure supporting invention, etc.), and the future directions in order to improve the

environment in question. In my research paper, I will prove the existence of a strong relationship

between local entrepreneurial efforts and outside investments. I will base my future predictions

for investment opportunities on Dziri’s analysis of the entrepreneurial ecosystem. My hypothesis

asserts that if a favorable environment for entrepreneurship exists, then a good environment for

investment in general and luxury brands in particular should also exist.

Is it an Arab Spring or Business as Usual? Recent Changes in The Arab World in

Historical Context

Bishku, Michael B. (2013). Is it an Arab Spring or Business as Usual? Recent Changes in The

Arab World in Historical Context. Journal of Third World Studies, Vol. XXX, No. 1, pp.

55-77. Retrieved from http://web.ebscohost.com

This article assesses the relationship between the West and the Arab World from a

historical standpoint, and tries to predict the future of this relationship after the Arab Spring. The

author starts by confirming that Tunisia, both under Habib Bourguiba and Zine AL-Abidine Ben

Ali regimes, maintained good diplomatic, political and economic relations with the United States

and France. In fact, even though American private investment in Tunisia was modest, the United

States’ financial contributions to the development of the country were significant (around $1

billion from 1956 to the 1980s).

Another interesting point draws my interest in this article. As a matter of fact, the author

presents favorable facts as arguments in order to encourage the foreign investment in the Arab

World and especially in Tunisia. Among these facts: Tunisia’s annual rate of inflation is 3.7%;

only 3.8% of Tunisia's population is below the international poverty level; the Tunisian

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population is more literate and less impoverished than other Arab countries; the ethnic and

religious composition is quite homogenous; since the 1960s, the government has spurred private

foreign investment in industry despite the socialist nature of its economic policies; The new

elected government, even though leaded by an Islamist party, the Nahda, opposes the institution

of the shari’a in the constitution, as well as the ban of alcohol and payment of interests,

reassuring Tunisian secularists, potential foreign investors and tourists. For all these reasons,

Tunisia seems to be the most promising country among all the post-revolutionary countries.

However, financial help and technical expertise of Western countries are needed in order to

boost the economy and refresh the tourism, a major sector in Tunisia.

Tunisia: Trading Freedom for Stability May Not Last – An International Security

Perspective

Sanchez, Alejandro. (2009). Tunisia: trading, Freedom for Stability May Not Last – An

International Security Perspective. Defence Studies, Vol. 9, No. 1, pp. 85–92. Retrieved

from http://web.ebscohost.com

This article is in consonance with the previous article, as it enumerates a number of

promising factors that characterize Tunisia. In fact, the author confirms that Tunisia has

significant economic resources, an educated workforce, and a religiously tolerant government.

Also, the majority of the population (80%) belongs to the middle-class reducing wealth disparity.

Moreover, Tunisia’s patrimonial heritage and geographic location attracts six and a half million

tourists annually. According to Mohamed Sahbi Basly, the Tunisian ambassador in China

“Tunisia is one of the countries that can advance faster than others in Africa; it can be a nice

bridge between China and other African nations.” Likewise, the World Economic Forum in its

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Global Competitiveness Report of 2006-2007 described the Tunisian economy as the most

competitive in Africa and in the Arab world.

The Arab “Youth Quake”: Implications on Democratization and Stability

Al-Momani, Mohammad. (2011). The Arab “Youth Quake”: Implications on Democratization

and Stability. Middle East Law and Governance 3 pp. 159–170. Retrieved from

http://web.ebscohost.com

This article examines the causes of the Arab Spring, the post-revolutionary challenges

facing these countries, and the new opportunities offered to them. Among the causes of the

Jasmine Revolution in Tunisia, probably the provocative corruption of the overthrown regime

was one of the least bearable by the Tunisian population. The family of Ben Ali and the family

of his wife, the Trabelsis knew that Tunisians were aware of their corrupted behavior, but

apparently nothing was enough to satisfy their craving for money, jewelry, real states, cars,

yachts, etc. Their extravagant lifestyle made them hated by the majority of Tunisians who did not

think twice before they headed to the streets forcing Ben Ali to step down. Finally, the author

concludes that despite the numerous threats to stability, the Arab World is embracing a new era

of economic, political and social development.

Analysis of the Marketing Strategy of a Luxury Brand and its Success in Selected Asian

Countries

Soyoung, O., & Jongeun, K. (2011). Analysis of the Marketing Strategy of a Luxury Brand and

its Success in Selected Asian Countries. The International Journal of Interdisciplinary

Social Sciences, Volume 6, Issue 1, pp. 239-257. Retrieved from

http://web.ebscohost.com

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Soyoung and Jongeun introduced the Chadha and Husband’s five stages model of “Asian

countries’ luxury evolution”: The first stage is “Subjugation,” characterized by dictatorship and

deprivation. The second stage is “Start of money,” when the economy is at the growth stage, and

an affluent high class consumers start to consume luxury goods imported from the West. The

third stage called “Show off” takes place when a country acquires symbols of economic

prosperity, and less wealthy consumers start using luxury brands as status markers. At the fourth

stage of “Fit in,” a greater number of consumers express the need to conform and start adopting

luxury culture. Finally, “Way of life,” is the fifth stage where consumers find themselves locked

into the vicious circle of purchasing and using luxury goods. It will be of a great interest in this

research to determine in what stage of luxury evolution stands Tunisia in order to determine the

next course of actions to adopt.

One of the factors that determined the success of luxury goods businesses in Asia was the

political and economic changes that occurred in most Asian countries. The example of South

Korea, Japan and China are probably the most pertinent in this context. As a matter of fact, South

Korea’s economy and luxury industry in particular flourished after the Asian financial crisis in

1998. South Korea is currently in the “fit in” stage of luxury evolution and is moving to the final

stage of “way of life”. Eight years later (2006), the same phenomenon occurred in today’s one of

the top markets for luxury items in the world: Japan. After the 1900’s economic recession, the

Japanese luxury market had a promising potential as the economy had successfully recovered

from its severe collapse. The above examples demonstrate that in humanity’s history economic

prosperity usually followed long period of economic slump. Therefore, there is an imminent

need to assess the Tunisian economic health after the Arab Spring in order to take the best steps

for a successful economic recovery.

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Another factor that influenced the success story of luxury businesses in Asia was the

consumer behavior influenced mainly by the culture. Indeed, consumers’ behavior when dealing

with genuine brands that involve a huge financial commitment is mainly influenced by the

culture values inculpated by the surrounding environment. Asian consumers, for example,

choose the products and services they want to consume based on the level of social status and

sense of conformity that these status-markers can offer. Furthermore, Asians evaluate the

products and services available in the market based on conspicuous, illogical, no-sense criteria

such as the conformity of the product with the social hierarchy they want to belong to. For these

kinds of consumers brands are the most reliable predictor of quality – which is not always true

unfortunately-, and branded items play a pivotal role in locating the individuals within a certain

societal positions. Tunisian consumers seem to have a comparable attitude towards luxury

brands. From my personal ascertainments, Tunisians purchase and use luxury-brand products

either to display their wealth and their societal status, or to conform with others. The main goal

in this research is to compare the Asian and the Tunisian models with the aim of finding

similarities in the economic context as well as the culture of consumption. If such resemblances

are present, then we can extrapolate the luxury evolution of Asia to the Tunisian example at

hand.

American and European Responses to the Arab Spring: What’s the Big Idea?

Dadush, U., & Dunne, M. (2011). American and European Responses to the Arab Spring:

What’s the Big Idea? The Washington Quarterly, 34:4 pp. 131-145. Retrieved from

http://web.ebscohost.com

European- American coordination to ensure that the Arab Spring succeeds will be at the

heart of any initiative. But how can Europe and the United States support democratic transitions

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in a way that is affordable, acceptable to the Arab countries, and effective in inducing a radical

change? The best instruments available are enhanced trade agreements. As the case of Eastern

Europe, well-structured trade agreements can help create a climate that encourages developing

countries to undertake appropriate reforms. New trade agreements should be far deeper and more

comprehensive than those currently in force with Bahrain, Israel, Palestine, Jordan, Morocco,

and Oman. In fact, the region’s central challenge is to remedy the absence of a vibrant private

sector, “one that can compete internationally, create sustainable jobs for the four million young

people entering the labor force each year in the Middle East and North Africa, and no longer

depend on monopoly or regulatory rents and political connections”. Trade agreements can help

catalyze this process in at least seven ways:

Expanding access to international markets

Fostering a division of labor that enhances efficiency

Increasing competition in domestic markets and spurring productivity

Opening the door to increased foreign direct investment

Improving trade logistics and facilitate trade more generally

Incorporating trade-related financing and assistance

Spurring domestic reforms and investments

U.S. exports can benefit from the post-revolutionary Arab countries adopting the much

lower EU external tariff. Such agreements offer the prospect of turning Arab countries in North

Africa and the Mediterranean into trade hubs between North America, Europe, Asia, and Africa.

According to this article, a 2005 research showed that the volume of trade between the European

Union and the MENA region could be 3.5 to four times larger if both regions were to reach the

EU’s level of integration.

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Finally, “The Arab countries with the best prospects for democratic transitions are

middle-income economies with per-capita incomes two to three times the International

Development Association low-income threshold”, which qualifies Egypt and Tunisia.

Deceptive Status Seeking Strategies in France and Tunisia

Bekir, I., El Harbi, S., & Grolleau, G. (2011). Journal of Economic Issues, Vol. 45 Issue 3, p.

717. Retrieved from http://web.ebscohost.com

This research identifies the determinants of purchase intention of genuine products and

assess whether the purchase of fakes increases this intent. Using survey data in Tunisia and

France, this study shows that Tunisian students are more likely to adopt deceptive status signals

by consuming fakes compared to French students. As a matter of fact, among Tunisian students,

52% have already purchased a fake sunglass whereas only 19.6% of French students have

engaged in this deceptive status signaling. On the other hand, 81.4% of Tunisians expressed their

intention to buy original sunglasses but only 17.5% of French students intend to do so.

Several studies documented the fact that some individuals in the third world countries can

deprive themselves and their families from very basic needs to satisfy status aspirations. In fact,

according to this article “the interaction of the gap between the Joneses and the desire to enjoy

western status makers can lead poorer people to experience frustrations and devote

proportionally more resources to status markers”. This phenomenon was called by Caplowitz

“compensatory consumption”.

Interestingly, this article shows that genuine producers can use fakes to increase their

future profits by promoting the brand favoring the emergence of a new class of consumers;

inducing faster obsolescence; or inspiring luxury designers. Moreover, when developed countries

forgo luxury for environmental friendly products, people in the developing countries seek luxury

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brands to as status makers. An immediate implication is that developing countries can offer

emerging markets for luxury branded products. Having this in mind, I will argue that Western

countries are no longer a winning bet, and luxury investors should rather shift their attention

towards new emerging markets.