International Business Review 10 (2001) 263284

www.elsevier.com/locate/ibusrev

Crisis marketing: a comparison across economic

scenarios
Swee Hoon Ang

Department of Marketing, Faculty of Business Administration, National University of Singapore, 15

Law Link, Singapore 117591, Singapore

Abstract
During the Asian crisis, consumption was curtailed and businesses changed their marketing
strategies to remain viable. A survey was conducted to understand how the crisis has affected
consumers and businesses, and how in turn, they respond to it. Comparisons of the impacts
and adjustments from the Asian crisis were made across other crises, namely, the 1973 US
oil crisis, the 1990 Yugoslavian stagflation, the mid-1980s Filipino stagflation, and the 1989
economic democracy in Eastern Europe. Explanations based on moderating factors such as
nature of the crisis, socio-economic characteristics, trade dependencies, market sophistication,
and culture are discussed for managerial insights. 2001 Elsevier Science Ltd. All rights
reserved.
Keywords: Crisis; Consumer behaviour; Marketing strategy; Recession; Stagflation

1. Introduction
The economic crisis hit Asia in July 1997 with regional and global repercussions
(Asian Development Bank, 1998). During a recession, consumers tighten their belts,
while businesses, in contrast, engage in strategies to encourage demand and overcome consumer propensity to save (Cundiff, 1975). This contradiction in strategies
employed by consumers (belt tightening) and businesses (demand stimulation) provides an interesting examination of how a recession affects the economy.
In studying such impacts and responses, it is also worthy to explore moderating

* Tel.: +65-874-3173; fax: +65-779-5941.

E-mail address: fbaangsh@nus.edu.sg (S.H. Ang).
0969-5931/01/$ - see front matter 2001 Elsevier Science Ltd. All rights reserved.
PII: S 0 9 6 9 - 5 9 3 1 ( 0 1 ) 0 0 0 1 6 - 6

264

S.H. Ang / International Business Review 10 (2001) 263284

factors that may account for differential responses. There are at least three categories
of factors that can potentially moderate the impacts. First, the nature of the crisis.
An oil crisis, for example, has different impacts compared to one caused by an
inadequate financial infrastructure. The second category of moderating factors is
country specific. This includes the level of trade dependencies, the nature of business
operations, the socio-economic structure, and the level of marketing sophistication.
For instance, the more external trade a country has, the more exposed are its businesses to external vagaries. Therefore, responses to an external downturn would differ from those where domestic trade dominates. Finally, the third category concerns
moderating factors that are culture specific. For example, cultures that promote collectivism and harmony may result in consumers engaging in more family discussions
before making major purchases versus cultures that are more individualistic.
Examining how moderating factors may account for these variations is important
as it provides additional insights into crisis management. It has implications on how
businesses can effectively manage different crises with the appropriate strategies to
preserve, or even gain, market share. Thus, an understanding of consumer and business responses and the moderating factors is instructive.
The research objectives of this paper are thus three-fold. First, using a marketing
perspective, it studies how Asian consumers are affected by the crisis and what
adjustments they have made in their consumption behavior. Second, it studies the
impact on and marketing strategy responses of businesses to the crisis. Third, comparisons between the present findings and those from four other crises are made.
These four crises are: (1) the 1973 oil crisis in the US, (2) the 1990 stagflation in
Yugoslavia, (3) the 19831986 stagflation in the Philippines, and (4) the mid-1989
move to economic and political democracy in Eastern Europe. Comparisons across
crises will provide exploratory insights concerning the differential effects of various crises.
The setting for this research is Singapore, an island-state dependent on trade. Positioned as an open economy with a stable political environment, its infrastructure
has attracted numerous multinational companies (MNCs), making it vulnerable to
external conditions. While its Southeast Asian neighbors have clearly been more
adversely affected, Singapores extensive commercial links with them makes it vulnerable to the fortunes of its neighbors. Hence, Singapore is a worthy context in
analyzing how consumers and businesses have adapted to the Asian crisis. Further,
its stock and currency markets were severely affected. The SingaporeUS dollar
exchange depreciated from a pre-crisis high of 1.45 to a low of 1.77 during the
height of the crisis in mid-1998. Its stock market index was decimated from 2100
to 800, a more than 60% drop during the same period. GDP growth of pre-crisis
6.9% registered several consecutive quarters of decline.

2. Economic environment
The harsh economic conditions sweeping East Asia began in July 1997 when the
Thai baht was floated. Some 10 months after the crisis started, the Thai baht and

S.H. Ang / International Business Review 10 (2001) 263284

265

Korean won had depreciated by 4050%, while the Indonesian rupiah had fallen by
more than 80% against the US dollar. The Malaysian ringgit and the Philippine peso
had lost about 35% of their value over the same period, while the Singapore and
the Taiwan dollar, the two most resilient currencies, lost 20%. During the same
period, the stock markets in the Southeast Asian economies fell between 50 and 70%.
Several reasons accounted for the crisis (Asian Development Bank, 1998; Fischer,
1998). East Asias economic boom in the 1980s resulted in an influx of international
investors in joint ventures with local companies, and a surge of private capital
inflows. This enhanced domestic asset prices, prompting further capital inflows.
There were heavy US$ borrowings to start and expand businesses, and the financial
markets boomed. However, the financial and banking regulations were not able to
keep up with the growth in the financial markets, resulting in bank loans based not
on the feasibility of projects, but on personal relations. Numerous investments in nonproductive assets were made. In addition, weak corporate governance and implicit
government guarantee to rescue troubled businesses contributed to high-risk corporate borrowing and investment behavior. When the currency devalued, US$ borrowings became harder to repay and current account deficits rose. As a result, external debts for Asian economies as a percentage of GDP increased. Other consequences
of the crisis include rising unemployment and inflation (cf. Asian Development Bank,
1998). A recent report showed that despite some markets rebounding better than
others, overall unemployment and inflation remained higher than pre-crisis levels
(Asiaweek, 1999).

3. Impact on and adjustments in consumption behavior

Research showed that consumers change their buying patterns under economic
hardship and stress (Ang, Leong, & Kotler, 2000; Shama, 1978). The impact seems
most severe on finance as consumers argued more over financial matters, and became
more insecure about their job and frustrated. Some of these changes were similarly
observed when the economy opened for Eastern Europe. Although there was more
variety of products available, consumers felt that inflation was higher than wage
increases. They sought a second employment to tide over the higher cost of living.
Other research showed that consumers bought less, looked for cheaper products such
as private labels, spent more time on comparative shopping, bought more through
wholesale outlets, and became more do-it-yourself individuals (cf. Shama, 1981).
There was also lower participation in leisurerecreation activities, more price substitution, more deferment of purchase of expensive durables, increase in do-it-yourself
activities, and greater emphasis on pricevalue over timeconvenience (Anon, 1975).
In Asia, Mastercard International found that the consumer confidence index more
than halved in Thailand, Indonesia, Malaysia, Singapore, and South Korea at mid1998. Singaporeans were found to be more careful in their spending (de Souza,
1998a; Song, 1998b). Indonesian housewives were observed to go for good quality
and affordable price and preferred buying at a low price without gifts rather than
with a gift at a higher price (MarkPlus International, 1998). Thai consumers indicated

266

S.H. Ang / International Business Review 10 (2001) 263284

that they preferred price-cutting promotions to free gifts (Business Asia, 1998).
Nationalistic sentiments also manifested during the crisis. Thais were encouraged to
buy Thai. The Malaysian government actively encouraged its citizens to switch
from buying imported to locally-produced products. Similarly, in South Korea, Malboro and Virginia Slims cigarettes were passed up for local brands (Business
Asia, 1998).

4. Impact on and adjustments in marketing strategies

Historical precedence (cf. Rosberg, 1979) and empirical evidence (Shama, 1978)
indicate that businesses trim expenses during a crisis to protect the bottom line.
Businesses may offer cheaper and more functional products with narrower lines,
especially those with high contribution (Schafter & Roper, 1985). Roxas and Huszagh (1996) found that businesses in the Philippines modified their product strategies
to reduce costs and maintain profitability when there are economic constraints. Price
discounts were given and credit loosened to stimulate demand. Distribution outlets
were expanded to ensure easy consumer access. In terms of advertising, Ostheimer
(1980) found that advertising expenditures tend to be in line with business cycles,
with advertising expenditures cut during a recession.
Research by Andersen Consulting showed that most businesses, in response to the
Asian crisis, became inward looking and responded by cutting costs, postponing
investments, adapting products, and emphasizing exports (Song, 1998b). Mandell
(1998) observed that during the Asian crisis, US manufacturers enhanced promotions
by offering discounts, hired more salespeople, cut manufacturing costs, bolstered
customer service, and emphasized faster delivery. Some companies such as Fila
Korea resorted to alternative local sourcing to cut costs (Business Asia, 1998).

5. Moderating factors
However, several factors in the environment may moderate the impact of and
adjustments to an economic crisis by consumers and businesses. These factors are
described below.
Nature of the Crisis. Differences in the economic background of a crisis may
moderate the impact. Stagflationstagnant economy with inflationwas experienced in the US during the 1973 oil crisis, and also in Yugoslavia, the Philippines,
and Eastern Europe in 1990, mid-1980s, and 1989 respectively. The Philippines had
fiscal and monetary problems, while Eastern Europe experienced stagflation when it
opened its economy. Although more products became available, they came with
a high price tag, resulting in inflation of as much as 50% in Hungary to 1200%
in Poland.
The Asian crisis, in contrast, arose in large part from massive bad loans for investments in non-productive assets. These underlying causes may generate different
impacts. The focus of the oil crisis was on oil prices and therefore, adjustments in

S.H. Ang / International Business Review 10 (2001) 263284

267

behavior towards energy conservation are more likely to be adopted than during the
Asian crisis where oil price was not the issue. Additionally, the rising cost of living
accompanying the oil shortage suggests that cost saving becomes more critical. For
the Eastern European market, the higher prices came about as new products were
introduced. To quote from two observers in Shamas (1992b) study:
Prices have been going up very fast, but I believe the future will be better.
Before the introduction of the market economy, we had money but we had nothing
to buy. Now, I can buy everything I desire, but I dont have enough money, so
I still have a problem but a different problem. (p. 51)

I have a good job and make a good salary. Yet, Im in a financial hole. Everything is very expensive and complicated.... My standard of living has gone down....
I spend most of my money on food, and I fear for the future. (p. 52)
In contrast, the Asian crisis saw the Singapore dollar appreciating relative to other
regional currencies, implying that Asian imports became cheaper. With cheaper
imports and relatively low and falling inflation rate compared to that during other
crises, we expect Singaporean consumers to be more moderated in their cost saving
than their US or Eastern European counterparts during their respective crises.
Country-specific Characteristics. The effects of a crisis also depend on countryspecific characteristics. The level of trade dependencies is likely to influence the
impact of and responses to the crisis for both businesses and consumers. Countries
with high trade dependencies, like Singapore, are likely to have businesses that are
vulnerable to the events in the region. Four of Singapores top five leading exporting
markets are Asian. Thus, when the regional currencies depreciated relative to the
Singapore dollar, exports became more expensive. Similarly, in Eastern Europe and
Yugoslavia, as economic democracy took place, they became open to market forces.
Given the transition from a government-controlled environment to a free economy,
the shocks to businesses and consumers were quite drastic. Hence, the impact on
consumers and businesses is expected to be great.
In contrast, exposure to such external vagaries is less pervasive in the US Its large
domestic market provides the benefits of a closed economy to local businesses.
They have some buffer to insulate themselves against the reversal of fortunes of its
neighbors. Based on the above discussion, we expect the Asian crisis to be more
severe on Singaporean businesses, like the stagflation on Eastern European businesses, compared to the oil crisis on US businesses.
The second country-specific characteristic is the nature of business operations.
The US has numerous homegrown MNCs such as AT and T and Boeing engaging
in R&D activities. In contrast, local businesses in Singapore tend to be small, engaging in trading rather than R&D activities. For instance, the total expenditure on R&
D as a percentage of GDP is 2.42 for the US and 1.37 for Singapore (Anon, 1998).
Therefore, the impact of a crisis on R&D activities will be less severe in Singapore
where such activities are limited. Correspondingly, adjustments in R&D activities

268

S.H. Ang / International Business Review 10 (2001) 263284

will be negligible in Singapore compared to the adjustments experienced by US

businesses during the oil crisis. Similarly, compared to the Philippines and Eastern
Europe, the impact on R&D is not expected to be severe. Both economies are not
the bedrock of R&D activities.
The third country-specific characteristic pertains to the socio-economic structure.
Safety nets in the socio-economic structure such as welfarism are likely to buffer
the impact of a downturn on such issues as unemployment and savings. However,
welfarism prevails in the US but not in many Asian economies including Singapore
and the Philippines. The Asian downturn saw numerous lay offs and decreased asset
values. During the height of the crisis, Singapores unemployment rate doubled that
of pre-crisis level (Reuters English News Service, 1999). Likewise, in Eastern Europe, with the transition to an open economy, the security that comes with a planned
economy is taken away. As reflected in the following quote, Eastern Europeans were
not comfortable with the lack of a safety net:
I am not happy about this situation, and I think things will get worse. I worry
a lot, have no confidence in the government, and I am terrorized by the uncertainty. (p. 52)
Therefore, we expect Singaporeans to be similar to their counterparts in Eastern
Europe and the Philippines during their crises. However, compared to Americans,
they would feel more insecure about their job and argue more over financial matters
during a crisis.
Likewise, market sophistication also moderates the effects of a crisis. The more
sophisticated a market is, the lesser are the impact and adjustments thereof. A sophisticated market offers several substitutes, and hence, the possibility for brand switching is higher. Consumers can switch from a top- to a lower-grade brand to ease
financial hardship. Further, a sophisticated market also offers different types of retail
outlets ranging from mom-and-pop stores to large brand name stores. This provides
an opportunity for consumers to adapt where they shop. In contrast, a less sophisticated market does not offer a range of substitutes and therefore, adjustments in consumption behavior are limited. Further, the limited variety in the types of retail outlets available constrains the extent to which consumers can adjust their behavior.
The Singaporean retail landscape is less mature compared to the US. There are no
factory outlets and few wholesale centers because of land scarcity. Further, no-frills
products are not as available in Singapore as in the US. Therefore, changes in consumption behavior in such areas as buying at wholesale or discount stores and buying
no-frills products may be more limited for Singaporeans than US consumers during
a crisis.
Although Eastern Europe was opening up and more products became available,
the retail sophistication was far from that in the US. Consumers, bogged down with
inflation, would trade down wherever possible. However, the array of products available for substitution was relatively narrow, and hence, consumer choice was limited.
Therefore, the responses by Eastern Europeans are expected to be similar to that
of Singaporeans.

S.H. Ang / International Business Review 10 (2001) 263284

269

Another measure of market sophistication is the effectiveness of market-related

regulatory bodies such as consumer and advertising associations. The consumer
watchdog and the advertising regulatory body in the US are strong and active in
ensuring that advertisements are truthful and consumers are protected. In Singapore,
the watchdog industry is still in its infancy. Therefore, misleading ads are more likely
to appear in Singapore than in the US especially when times are hard. Given this
scenario, Singaporean consumers are likely to become more wary of ads compared
to their US counterparts where censorship of misleading ads is more stringent. Similarly, during the initial opening of the economy, Eastern European consumers witnessed a vast increase in print, billboard, and TV advertising as opposed to propaganda. However, watchdog activities take time to develop and as such vigilance over
the authenticity of product claims hardly exists. We therefore expect the East European market to be less sophisticated.
The government also plays a key role in how businesses are affected by and
respond to a crisis. In Singapore, the government actively provides the direction for
private enterprises. Hence, government-linked businesses take the initiative to
respond in a certain way to the crisis and serve as a cue for private businesses to
follow. In the US, the role of the government is less critical and private businesses
take on the leadership responsibility. In Eastern Europe and Yugoslavia, the sudden
transition from a closed to open economy may not have provided sufficient time and
resources for the government to lead or the private enterprises to take the initiative.
In the Philippines, the government does not play a key role as in Singapore. Therefore, we expect Eastern European and Filipino businesses to be more affected by
the crisis compared to those in Singapore and the US, where the government or
private businesses take on a leadership role in bringing the economy out of the crisis.
Country-specific Characteristics. Singapore is predominantly a Chinese society,
often characterized as collectivistic (Hofstede, 1980) where decisions are made consensually rather than independently. In contrast, the US has been described as having
an individualistic culture. Further, Hofstede (1980) observed that Singaporeans have
higher uncertainty avoidance than North Americans. Like many Asians, Singaporeans are also concerned with face savingto look good and be respected by others.
Given these cultural values, we expect that during a crisis when money is tight,
Singaporeans will engage in even more consultations with their friends and spouse
so that the right decisions are made and loss of face minimized. In contrast, such
adaptation towards consultative decision making is less likely to occur among US
consumers where decisions are made more independently.

6. Method
6.1. Sample
Two groupsconsumers and businesseswere surveyed during the first year of
the Asian crisis. The consumer sample comprised of 110 working adults aged 21
and above. They are individual members of a national marketing association. Ques-

270

S.H. Ang / International Business Review 10 (2001) 263284

tionnaires were distributed to them during seminars organized by the association. A

response rate of 90% was obtained. A second survey was conducted among the
associations corporate members. They were attending the annual general meeting
where the questionnaires were distributed and their cooperation sought. About half
of the corporate respondents took part, giving a sample size of 50. The profiles of
these two samples are given in Table 1.
6.2. Questionnaire
Consumer respondents were told that the survey was on their views about the
Asian crisis and how it has affected them. The self-administered English questionnaire consisted of items from Shama (1978, 1981, 1992). There were three parts to
the questionnaire. The first part concerned the impact of the crisis on their consumption behavior. There were seven six-point scale items [Strongly disagree (1)/Strongly
agree (6)]. The items included I have become more insecure about my job, and
As a consumer, I am more frustrated than I used to be (see Table 2). Following
this, respondents were asked regarding their general consumption behavioral adjustments as well as adjustments to each element of the marketing mix. These strongly
disagree (1)/strongly agree (6) questions were phrased in terms of changes in their
behavior given the crisis, thus accounting for differences in behaviors before and
after the crisis. They were given the heading Because of the current economic conditions,.... followed by the items such as I weigh purchase decisions with my spouse
more than I used to and I am now more careful with money. The higher the
score, the more they agreed that they made such adjustments. Finally, demographic
information was obtained. The comparison US consumer group was taken from
Shama (1978).
For the sample involving business respondents, they were informed that the questionnaire was to find out how the current economic conditions have affected their
companys practices. The questionnaire consisted of three sections. The first section
asked the type of business they were in, their target market, their current employment
size, country of origin, and the extent to which they have regional operations. Following this, the impact of the crisis on their business was asked using five-point scales
anchored 1 (No effect) and 5 (Very much). Table 4 shows the items. Sixteen
five-point items were used to measure the degree of adjustments that a business has
made in response to the crisis (see Table 5). The scales were labeled 1 (None) to
5 (Very much). The comparison group of US business respondents was taken from
Shamas (1978) study.

7. Analyses
Analyses were conducted at two levels. At the first level, we determined whether
consumers and businesses have adapted to the crisis. One-sample t-tests were run
comparing such changes to the indifference scale point. At the second level of analysis, tests were run to determine whether these changes were different from the point

S.H. Ang / International Business Review 10 (2001) 263284

Table 1
Profile of respondents
Percentage
Consumer respondents (n=110)
Gender
Male
Female
Age
2124
2529
30 and above
Marital status
Single
Married, no kids
Married, with kids
Occupational level
Junior
Middle
Senior
Corporate respondents (n=50)
Business type
Communications/IT
Construction
Finance
Hotel and restaurants
Manufacturing
Public sector
Real estate and business
Service
Transport
Wholesale and retail trade
Others
Type of customer
Industrial
Consumer
Both
Current employment size
50 or less
51100
101200
201300
301500
5011000
Above 1000
Country of origin
Germany
Japan
Malaysia
Singapore
United Kingdom
United States
Others

60.9%
39.1%
23.6%
43.6%
32.7%
65.1%
18.3%
16.5%
16.4%
70%
13.6%

20.9%
6.3%
2.1%
16.7%
6.3%
2.1%
2.1%
19.4%
22.9%
10.4%
36%
14%
50%
28.6%
14.3%
18.4%
6.1%
16.3%
8.2%
8.2%
4%
10%
2%
54%
2%
24%
4%

271

272

S.H. Ang / International Business Review 10 (2001) 263284

Table 2
Impact on consumersSingapore Asian crisis vs other crises
Because of the current economic
conditions,....a

Singaporean consumers US consumers

(n=110)
(n=969)b

67.3%d
4.01
54.3%
3.67
67.3%
4.08
52.9%
I have become insecure about my job.e
3.51
I find it harder to make ends meet.
44.4%
3.41
I must work harder to be able to afford my 65.7%
present way of life.
4.12
As a consumer, I am more frustrated than I 41.8%
used to be.
3.33
I have changed my habits and preferences
as a consumer.
I judge products and services in a new
way.c
I argue more about financial matters.e

65.9%
3.86
77.8%
4.23
43.6%
3.02
36%
2.70
90.9%
4.87
64%
3.79
75.4%
4.23

Eastern Europe
(n=75)c
n.a.
n.a.
n.a.
n.a.
Yes
n.a.
n.a.

a
Six-point scales were used. These were labelled 1 (Strongly disagree), 2 (Disagree), 3 (Somewhat
disagree), 4 (Agree), 5 (Strongly disagree), and 6 (Strongly agree).
b
The comparison group from the US was obtained from Shama (1978).
c
The comparison group from Eastern Europe was obtained from Shama (1992b), where focus group
interviews were conducted.
d
Numbers on the first line (with percentages) indicate the percentage of respondents who agreed with
the statement. Mean values are indicated on the second line.
e
For this statement, there is a significant difference in average scores between Singaporeans and
Americans at P0.05.

averages observed among US respondents and businesses studied by Shama (1978)

during the oil crisis. If differences were observed, the moderating factors accounting
for them were discussed. Comparisons were also made against the data from Yugoslavia, Eastern Europe, and the Philippines. As these data were less comprehensive
than those from the US, only qualitative inferences are made. The Yugoslavian data
covered some areas in consumer and business responses. The Eastern European data
was based on focus group interviews, while the Philippines data was restricted to
business responses on product strategy.

8. Results
8.1. Impact on consumers
As shown in Table 2, some 67.3% of the respondents indicated that because of
the Asian crisis, they have changed their consumption habits and preferences
(x=4.01), and argued more about financial matters (x=4.08). Tests showed that the
average scores were significantly higher than the mid-scale indifference point of 3.5

S.H. Ang / International Business Review 10 (2001) 263284

273

(ts3.96, Ps0.01). Almost 66% said that they need to work harder to maintain
their present lifestyle (x=4.12; t=4.22, P0.01). Despite these setbacks, adjustments
in terms of how they judge products, perceive their job security, and make ends
meet were considerably less than the other types of adjustments. In fact, no significant changes in these behaviors were noted (ts1.19, Ps0.10). Indeed, less than
42% felt that they have become more frustrated as consumers.
8.1.1. Singaporeans vs US consumers
Compared to the available data on the impact of the 1973 oil crisis on US consumers, Singaporeans were generally no different in terms of the extent to which
their consumption habits and preferences have been affected (t=0.25, P0.10). However, three differential impacts were apparent. As shown in Table 2, US consumers
changed in the way they judged products more so than Singaporeans (x=4.23 vs
3.67; t=4.01, P0.01). In contrast, Singaporeans were more affected than US consumers in terms of arguing more over financial matters (x=4.08 vs 3.02; t=8.08,
P0.01), and becoming more insecure about their job (x=3.51 vs 2.70; t=5.65,
P0.01).
8.1.2. Singaporeans vs other consumers
Only qualitative findings from Eastern European consumers (Shama, 1992b) were
available on the impact on consumers. Like the Americans, Eastern Europeans found
it hard to make ends meet as galloping stagflation was experienced.
8.2. Adjustments in consumption behavior
As shown in Table 3, adjustments in consumption behavior relating to price were
the greatest particularly in terms of being more careful with money (x=4.62;
t=11.02, P0.01). Over 86% of respondents indicated that they were more cautious
in how they spend. The present study also showed that almost 76% became less
wasteful. Other significant changes included becoming more of a comparative shopper (69.2% or x=4.19; t=5.48, P0.01), and delaying purchase of durable goods
(76.2% or x=4.30; t=6.38, P0.01). Consumers also adjusted by buying less of
everything (x=3.97) and becoming more energy conscious (x=3.89; ts3.14,
Ps0.01). Decision making also became more deliberate as over 62% of the respondents indicated that the crisis made them weigh more their decisions with friends
and spouse (x=4.00; t=3.62, P0.01).
In terms of what they look for in a product, over 75% deemed product durability
to be more important given the crisis (x=4.18; t=6.07, P0.01). However, purchases
of no-frills and do-it-yourself products did not receive as favorable a reception with
53.7% and 42% of respondents indicating that they tended to look for such products.
No significant change in behavior pertaining to purchase of no-frills product was
observed (t=1.25, P0.10).
The Asian crisis also resulted in consumers believing less in advertising claims
and seeking more informative ads (x=3.90 and 4.01 respectively; ts3.11, Ps
0.01). Over 68% paid more attention to sales promotion. However, significant adjust-

274

S.H. Ang / International Business Review 10 (2001) 263284

Table 3
Consumer adjustmentsSingapore Asian crisis vs other crises
Because of the current economic
conditions,....a

General
I have become more of a comparative
shopper.
I have become less wasteful.e
I have become more energy conscious.e
I weigh purchase decisions with my
friends/spouse more than I used to.e
I now buy less of everything.
I have delayed the purchase of durable
goods.
Price
I am now more careful with money.

Singaporean consumers US consumers

(n=110)
(n=969)b

East European
consumers
(n=75)c

69.2%d
4.19
75.9%
4.31
67.4%
3.89
62.3%
4.00
63.9%
3.97
76.2%
4.30

Yes

86.1%
4.62
60.5%
I shop for sales more than I used to.e
3.89
I bargain for lower prices more than I used 48%
to.
3.53
45.8%
I find that I save less than I used to.e
3.23
Product
Product durability is now more important
75.5%
4.18
to me.e
I tend to look for no-frills products.
53.7%
3.65
I have become a more do-it-yourself
42%
3.25
person.e
Promotion
I tend not to believe in advertising claims.e 62%
3.90
I now look for ads that give me
64.2%
information about what the product can do 4.01
for me.
I pay more attention to promotions.
68.6%
3.97
I ask salesperson more questions now
59.4%
before I make a purchase.
3.71

88.9%
4.78
86.7%
4.66
79.9%
4.40
47.6%
2.76
n.a.

Yes
n.a.f
n.a.
Yes

n.a.

n.a.

88.4%
4.75
83%
4.53
n.a.

n.a.
n.a.
n.a.

72.5%
4.24

Yes

87%
4.65
60.9%
3.73
63.9%
3.78

Yes

25.6%
2.68
n.a.

n.a.
n.a.

n.a.

n.a.

n.a.

n.a.

n.a.
n.a.

(continued on next page)

S.H. Ang / International Business Review 10 (2001) 263284

275

Table 3 (continued)
Because of the current economic
conditions,....a

Singaporean consumers US consumers

(n=110)
(n=969)b

Place
I shop at neighborhood stores more often
37.7%
than I used to.
3.33
I shop at downtown stores less often than I 50%
used to.
3.73
I shop at wholesale or discount outlets
45.1%
3.42
more than before.e
I now prefer to shop at small, personal
29.7%
stores over gigantic, department stores.
3.10

East European
consumers
(n=75)c

n.a.

n.a.

n.a.

n.a.

79.7%
4.53
n.a.

n.a.
n.a.

a
Six-point scales were used. These were labelled 1 (Strongly disagree), 2 (Disagree), 3 (Somewhat
disagree), 4 (Agree), 5 (Strongly disagree), and 6 (Strongly agree).
b
The comparison group from the US was obtained from Shama (1978).
c
The comparison group from Eastern Europe was obtained from Shama (1992b), where focus group
interviews were conducted.
d
Numbers with percentages indicate the percentage of respondents who agreed with the statement.
Mean values are provided for the Singapore and US data.
e
For this statement, there is a significant difference in average scores between Singaporeans and
Americans at P0.05.
f
n.a. means not available.

ments in terms of asking salespeople more questions and where they shop were not
observed (ts1.63, Ps0.10).
8.2.1. Singaporeans vs US consumers
As shown in Table 3, Singaporeans adjusted more in terms of weighing purchase
decisions with friends/spouse compared to US consumers during the 1973 recession
(x=4.00 vs 2.76; t=8.99, P0.01). However, Singaporeans adjusted significantly less
than US consumers in terms of comparative shopping, becoming less wasteful, and
becoming more energy conscious (ts2.71, Ps0.05).
Singaporeans also adjusted less in terms of shopping for sales (x=3.89 vs 4.53)
and did not find that they save significantly less than US consumers did during the
oil crisis (x=3.23 vs 4.24; ts4.43, Ps0.01). They also tended not to believe in
advertising claims compared to US consumers (x=3.90 vs 2.68; t=9.51, P0.01).
Adjustments in looking for product durability and do-it-yourself products were also
less pronounced compared to their US counterparts (ts4.20, Ps0.01). Further,
Singaporeans shopped less at wholesale centers than US consumers (x=3.42 vs 4.53;
t=9.16, P0.01).
8.2.2. Singaporeans vs other consumers
The results among Eastern European consumers showed that they behaved similarly to Singaporeans in that they became more of a comparative shopper, became
less wasteful, bought less of everything, and looked for product durability. However,

276

S.H. Ang / International Business Review 10 (2001) 263284

unlike Singaporeans, the galloping inflation resulted in them saving less than they
used to.
8.3. Impact on businesses
Table 4 shows the impact of the economic crunch on business marketing mix.
Overall, businesses felt a significant impact of the crisis (x=3.18). Tests showed that
all impacts were significantly higher than the score of 2 (little impact) except for
product elimination and R&D. The areas most affected were pricing policy, customer
credit, and customer selection.
8.3.1. Singaporean vs US businesses
Comparisons were made against the impact of the oil crisis on US businesses. As
shown in Table 4, the impacts on promotion and distribution were the same for US
and Singaporean businesses in the two crises (ts1.29, Ps0.10). However,
impacts on the remaining elements of the marketing mix were significantly different.
US businesses were more affected than Singaporean businesses in terms of pricing
policy (x=4.11 vs 3.42; t=4.33, P0.01) but significantly less on customer credit
(x=2.86 vs 3.24; t=2.04, P0.05). Product-wise, Singapore businesses were less
affected compared to their US counterparts (ts4.62, Ps0.10). Finally, Singapore
businesses were more affected than US businesses in the services they provide to
their customers (x=2.82 vs 2.32; t=3.02, P0.01) and their customer selection
(x=3.00 vs 2.70; t=2.02, P0.05).
8.3.2. Singaporean vs other businesses
Partial data from Yugoslavia (Shama, 1992a) and the Philippines (Roxas & Huszagh, 1996) were available for comparison. Filipino businesses were the least hit in
terms of pricing policies (57.7%), although Yugoslavian businesses saw prices affected severely (95%). Like Singapore, the Philippines also saw consumer credit being
affected (73.9 vs 72% respectively). Both Yugoslavian and Filipino businesses
adjusted their product line more so than Singaporean businesses (71 and 64% respectively vs 42.9%). However, Filipino businesses did not eliminate any product. Only
7.7% indicated that product elimination was undertaken. Like Singapore where there
are not many R&D activities, these were less affected in the Philippines (35.2%).
With the opening of the economy, Yugoslavian businesses experienced more
changes in promotion. Compared to Singaporean businesses, more changes were
made in media selection (73%), personal selling (82%), and public relations (74%).
Distribution choices were also more affected (64%).
8.4. Adjustments in marketing strategies
In terms of strategy adjustments that Singaporean businesses had to make, Table
5 shows that they responded most by providing better services to long-time customers
(83.4% or x=3.71), being stricter on credit terms (79.6% or x=3.57), offering competitive prices (77.5% or x=3.49), and exploring new markets (75.5% or x=3.46). All

S.H. Ang / International Business Review 10 (2001) 263284

277

Table 4
Impact on marketing strategySingapore Asian crisis vs other crises
To what extent has Singaporean
the recent
businesses
economic
(n=50)
conditions affected
your companys..a
Overall marketing
strategy
Price
Pricing policyf
Consumer creditf
Product
Product linef
Product
eliminationf
R&Df
Promotion
Promotion budget
Media selection
Promotion appeal
Personal selling
Public relations

Yugoslavian
businesses
(n=75)c

Filipino businesses
(n=142)d

72%e
3.18

n.a.g

78%
3.42
72%
3.24

94.2%
4.11
61.5%
2.86

95%
n.a.
77%
n.a.

57.7%
n.a
73.9%
n.a.

42.9%
2.31
30%
2.02
20%
1.92

65.4%
2.97
69.2%
3.04
49%
2.62

71%
n.a.
47%
n.a.
72%
n.a.

64%
n.a.
7.7%
n.a.
35.2%
n.a.

72%
2.88
54%
2.54
55.1%
2.55
64%
2.90
64.6%
2.71

70.2%
3.00
55.7%
2.60
54.8%
2.56
61.5%
2.77
49%
2.51

77%
n.a.
73%
n.a.
62%
n.a.
82%
n.a.
74%
n.a.

n.a.

31.7%
2.44

64%
n.a.

n.a.

58.6%
2.70
41.3%
2.32

69%
n.a.
56%
n.a.

n.a.

Place
Channels of
50%
distribution
2.62
Consumer
Consumer selection 70%
3.00
Consumer servicesf 58%
2.82
a

US businesses
(n=104)b

n.a.

n.a.

n.a.
n.a.
n.a.
n.a.

n.a.

Five-point scales were used. These were labelled 1 (None), 2 (Very little), 3 (Somewhat), 4
(Much), and 5 (Very much).
b
The comparison group from the US was obtained from Shama (1978).
c
The comparison group from Yugoslavia was obtained from Shama (1992a). No mean values were
available.
d
The comparison group from the Philippines was obtained from Roxas and Huszagh (1996). No mean
values were available.
e
Numbers with percentages indicate the percentage of respondents who agreed with the statement.
Mean values are provided for the Singapore and US data.
f
For this statement, there is a significant difference in average scores between Singaporean and US
businesses at P0.05.
g
n.a. means not available.

278

S.H. Ang / International Business Review 10 (2001) 263284

Table 5
Marketing strategy adjustmentsSingapore Asian crisis vs other crises
To what extent has Singaporean
your company
businesses
made the following (n=50)
adjustments in
response to current
economic
conditions?a
Price
Frequent price
adjustmentsf
Stronger emphasis
on profit marginf
Competitive
pricingf
Stricter credit
Extra services to
justify higher
pricesf
Product
Reduce product
linef
Increase research to
improve long term
strategies
Develop alternative
raw materials
Introduce substitute
products
Promotion
Discount slowmoving productsf
Increase use of
couponsf
Increase promotion
budgetf

US businesses
(n=104)b

Yugoslavian
businesses
(n=75)c

Eastern European
businessesd

69.4%e
3.04
66.7%
3.19
77.5%
3.49
79.6%
3.57
81.2%
3.29

88.5%
3.87
81.7%
3.61
62.5%
2.93
84.6%
3.52
40.4%
2.27

62%
61%
n.a.
53%
n.a.
44%
n.a.
26%
n.a.

n.a.
n.a.g
n.a.

43.7%
2.35
61.2%
2.83

76%
3.20
65.3%
3.00

43%
n.a.
77%
n.a.

34.7%
2.61
44.9%
2.68

63.4%
2.97
n.a.

47%
n.a.
25%
n.a.

n.a.

55.1%
2.67
10.4%
1.64
36.7%
2.06

78.9%
3.46
70.2%
3.20
48%
1.55

15%
n.a.
n.a.

n.a.
n.a.

n.a.

Yes

No
n.a.
n.a.

No
n.a.

n.a.

(continued on next page)

adjustments were significantly higher than the little adjustment scale point of 2,
except for customer research, reducing product line, developing alternative raw
materials, introducing substitute products, discounting slow products, and increasing
promoting budget (ts1.41, Ps0.10).

S.H. Ang / International Business Review 10 (2001) 263284

279

Table 5 (continued)
To what extent has Singaporean
your company
businesses
made the following (n=50)
adjustments in
response to current
economic
conditions?a

US businesses
(n=104)b

Yugoslavian
businesses
(n=75)c

Eastern European
businessesd

Broaden sales force

responsibilities
Place
Reexamine
distribution
channels
More receptive to
selling wholesale to
consumers
Reduce operating
hours
Consumers
Avoid marginal
accounts
Provide better
services to longtime customersf
More customer
research
Carry marginally
profitable products
to satisfy customers
Capitalize on new
marketsf

66.7%
3.04

64.5%
2.70

80%
n.a.

n.a.

51%
2.84

66.3%
2.97

63%
n.a.

n.a.

35.4%
2.00

17.3%
1.57

n.a.

n.a.

4.2%
1.29

n.a.

n.a.

n.a.

73.5%
3.10
83.4%
3.71

78.8%
3.36
77.9%
3.26

22%
n.a.
78%
n.a.

n.a.

40.8%
2.39
58.4%
2.82

41.4%
2.37
49%
2.53

55%
n.a.
67%
n.a.

n.a.

75.5%
3.46

42.4%
2.25

46%
n.a.

n.a.

n.a.

n.a.

Five-point scales were used. These were labelled 1 (None), 2 (Very little), 3 (Somewhat), 4
(Much), and 5 (Very much).
b
The comparison group from the US was obtained from Shama (1978).
c
The comparison group from Yugoslavia was obtained from Shama (1992a). No mean values were
available.
d
The comparison group from Eastern Europe was obtained from Shama (1992b). No mean values
were available.
e
Numbers with percentages indicate the percentage of respondents who agreed with the statement.
f
For this statement, there is a significant difference in average scores between Singaporean and US
businesses at P0.05.
g
n.a. means not available.

8.4.1. Singaporean vs US businesses

There were some similarities in the marketing strategy adjustments undertaken by
Singaporean businesses during the Asian crisis versus US businesses during the oilcrisis recession. In both crises, businesses tightened credit, engaged in research to
improve long-term strategies, developed alternative raw materials, reexamined distri-

280

S.H. Ang / International Business Review 10 (2001) 263284

bution channels, avoided marginal accounts, and conducted more customer research
(ts1.41, Ps0.10).
However, there were differences in the extent to which some marketing strategies
were adopted. During the oil crisis, US businesses adjusted by frequently changing
prices, emphasizing profit margin, reducing the product line, discounting slow-moving products, and increasing the use of coupons. These adjustments were significantly
more than those observed among businesses during the Asian crisis (ts2.41,
Ps0.05). However, businesses in Singapore reacted more strongly in terms of
pricing competitively (x=3.49 vs 2.93; t=3.19, P0.01), offering extra services to
justify their prices (x=3.29 vs 2.27; t=6.27, P0.01), increasing the promotion budget
(x=2.06 vs 1.55; t=3.57, P0.05), selling wholesale to customers (2.00 vs 1.57;
t=2.21, P0.05), providing better services to long-time customers (x=3.71 vs 3.26;
t=2.66, P0.05), and capitalizing on new markets (x=3.46 vs 2.25; t=6.96, P
0.01).
8.4.2. Singaporean and other businesses
Data from Yugoslavia (Shama, 1992a) and qualitative results from Eastern Europe
(Shama, 1992b) were used for comparison. No data were available from the Philippines. Indeed, because of rising prices, frequent price changes were observed among
Yugoslavian businesses (62%). However, because the prices were climbing, they
remained not competitive. Thus, compared to Singaporean businesses, only 53% of
Yugoslavian businesses felt that their pricing was competitive. This view was also
echoed in the focus group results involving Eastern European businesses. Similarly,
slow-moving products could not be discounted because of the galloping prices.
Further, Yugoslavian businesses could not tighten credit either because customers
would otherwise not be able to afford the purchases. Therefore, only 22% would
avoid marginal accounts.
Like Singaporean businesses, product line was not reduced. This is because as the
economy opened, more product choices became available. Product line increased
instead of being shortened. Interestingly, as the economy is a new open market,
Yugoslavian businesses were relatively more cognizant of the need to do market
research (55 vs 40.8% in Singapore). However, unlike Singapore, they were hesitant
of venturing into new markets (46 vs 75.5%).

9. Discussion
The present findings showed that the greatest adjustments in a crisis were price
related. Consumers were found to be less wasteful, buy less of everything, delay
purchases of durable products, and bargained for lower prices more often than they
used to. More shopping in cheaper outlets such as discount and neighborhood stores
was also observed. These findings are consistent with Cravens (1974) observation
that during economic hard times, consumers become more attentive to their purchases.
Despite these consistent findings, additional analyses conducted between con-

S.H. Ang / International Business Review 10 (2001) 263284

281

sumers responses during the Asian crisis versus other crises demonstrated some
differences, thus indicating that the magnitude and importance of these adjustments
vary. The moderating factors identified in the literature offer potential explanations.
In general, the oil crisis appeared to affect North Americans more as consumers while
the Asian crisis affected Singaporeans more as working individuals. Specifically, US
consumers were more affected in their product judgments than Singaporeans, while
the latter argued more over finances and became less secure about their job. This
may be due to differences in the economies highlighted earlier. Singapores low precrisis unemployment suggests that most Singaporeans have never experienced the
harsh realities of unemployment. Hence, concerns about job security and finances
featured more strongly among Singaporeans who are less accustomed to such economic setbacks. Further, the welfare system, present in the US but not Singapore,
may have contributed to more anxiety among the latter than the former.
The moderating influence of individual-specific characteristics such as culture was
also observed. Consistent with Asians collectivistic culture, purchase decisions
became more deliberate and accounted for the views of others compared to the less
consensual decision making observed among US consumers during the 1973 oil
crisis. The need for face saving and not be embarrassed by a poor purchase may
have prompted Singaporeans to adopt a more consultative decision making stance
than their US counterparts. Such consultations reduce risk of making a wrong purchase. Support for the moderating effect of uncertainty avoidance is evidenced by
the high inclination reported towards seeking advertisements on product information.
That informative advertising is valued during a crisis is consistent with Shamas
(1992b) observation that Eastern European consumers similarly valued informative
advertising because it lets consumers know more about the product benefits, and
hence reduce uncertainty.
Market sophistication also moderated the adjustments. The lack of a strong consumer and advertising watchdog to ensure that ads are truthful contributed to greater
skepticism among Singaporeans than US consumers to advertising claims. This is
supported by the high adjustment towards informative ads reported by Singaporeans.
Presumably, such ads are less deceptive compared to imagery ads. That US consumers engaged in more comparative shopping than Singaporeans demonstrates that
the level of consumer savviness may have contributed to this difference. Also, the
cultural tendency for conformity may have discouraged Singaporeans from directly
comparing between brands.
The nature of the crisis also affected consumer responses. The oil crisis affected
behavior towards energy conservation more so than the Asian crisis as evidenced
by the greater adjustments towards energy consciousness among US consumers relative to Singaporeans during their respective crisis. Moreover, the inflationary pressures of the oil crisis resulted in less wastefulness and shopping for more sales
compared to the less inflationary pressures experienced during the Asian economic
crisis.
Although the oil crisis prompted US consumers to purchase no-frills products, this
was not observed among Singaporeans during the Asian crisis. The moderating factor
of lower market sophistication lacking in no-frills products partially accounts for

282

S.H. Ang / International Business Review 10 (2001) 263284

this. Since the Asian shopping scenario is usually not abundant with generic products,
it is difficult for Singaporeans to buy more of such products even during a crisis.
Similarly, the retail sophistication in terms of having wholesale and discount centers
is low in Singapore. Therefore, it offers little opportunity for Singaporeans to shop
more often at such places, resulting in less change in this behavior compared to US
consumers during the oil crisis.
Among the Eastern European consumers, stagflation made life harder for them.
The rising prices at inflation rates of 1000-plus% saw them becoming more of a
comparative shopper, less wasteful, and becoming more deliberate in their decision
makingsomewhat similar to Singaporeans during the Asian crisis.
Overall, the differential observations between American, Eastern European, and
Singaporean consumers suggest that not all crises have similar impacts and draw
similar adjustments in consumption behavior. Knowing this is important to businesses as it implies that contingency plans in marketing strategies have to be
developed to cater for different crises. Further, it attests to the importance of marketing intelligence during a recession to understand better consumer attitudes and
behavior (Anon, 1975) and to find innovative marketing strategies around recessions
and competition.
In studying the effects of a crisis on businesses, it was found that the nature
of business operations moderated the impact of a crisis. The findings showed that
Singaporean businesses were less affected by the Asian crisis on their product line
and R&D strategies than their US counterparts during the oil crisis. This is due in
part to local Singaporean businesses being too small to engage in R&D activities.
For MNCs in Singapore, like in the Philippines, such activities are usually conducted
at the head and not local office level. Therefore, impacts on product strategy among
businesses in Singapore were limited.
Comparison among US, Yugoslavian, and Singaporean businesses showed that the
former during the oil crisis tended to use strategies that directly affect sales and
bottom linemore frequent price changes and discounts to move sales. In contrast,
the Asian crisis saw strategies that were less price focused. Instead, product augmentation such as providing additional services and carrying marginal products was
used. This implies that these businesses did not want a price war and would rather
maintain sales through providing more services. In part, this may be due to Asians
mindset of collectivism where harmony is favored over outward display of
aggression. Relationship building or guanxi through providing additional services
rather than price cutting is what businesses in Asia feel more comfortable with as
a strategy during an economic crisis. In contrast, among Yugoslavian businesses
where galloping stagflation was experienced, pricing was constantly affected.
The Asian crisis also saw businesses seeking new markets compared to US and
Yugoslavian businesses during their respective crises. The small Singapore market
and the regional nature of the crisis probably contributed to these businesses entering
markets not affected by the crisis. In contrast, the US market is sufficiently large so
that its local businesses are buffered and need not seek geographically new markets.
For Yugoslavia, its newly opened economy with inherently massive problems may
not have encouraged businesses to venture into new markets.

S.H. Ang / International Business Review 10 (2001) 263284

283

Relatedly, the regional mix of customers targeted by Singaporean businesses was

hit by the depreciating currencies and tighter credit. Thus, it is not surprising that
customer selection was more affected for Singaporean businesses during the Asian
crisis compared to US businesses during the oil crisis. However, for the Yugoslavians, tightening customer credit may see a loss in business as customers already find
the increasing prices hard to cope. Hence, Yugoslavian businesses may have no
option but to offer customer credit.
The findings also indicate that Singaporean businesses adapted more by increasing
their promotion budget compared to US businesses during the oil crisis. They may
have benefited from the lessons learnt during the oil crisis where enhancement of
the advertising budget resulted in more benefits when the upturn occurred (cf. Rosberg, 1979). Managerially, such increased advertising should be accompanied by a
change in advertising style towards rational instead of imagery appeal as consumers
indicated that they rely more on information during a crisis.
The current exploratory study compared Singaporeans versus Americans, Yugoslavians, Eastern Europeans, and the Filipinos in different crises by delineating three
categories of moderating factors. To the extent that Singaporeans share similar
characteristics as other Southeast and East Asian consumers, the findings offer some
reasonable level of generalization. For consumers and businesses from more severely
hit Asian countries, adjustments will be of a greater magnitude.

Acknowledgements
This research project was funded by the Marketing Institute of Singapore and the
National University of Singapore. The author thanks Siew Meng Leong for his comments on earlier versions of this paper.

References
Anon (1975). Marketing in a recession: comments from our readers. Journal of Marketing, 7879.
Anon (1998). World competitiveness yearbook. Lausanne, Switzerland: IMD.
Ang, S. H., Leong, S. M., & Kotler, P. (2000). The Asian apocalypse: crisis marketing for consumers
and businesses. Long Range Planning, 33, 97119.
Asian Development Bank (1998). Asian development outlook. Oxford: Oxford University Press.
Asiaweek (1999). Midyear business outlook: whats ahead for Asian economies, July 9.
Business Asia (1998). The collapse of consumerism, April 6, pp. 34.
Cravens, D. W. (1974). Marketing management in an era of shortages. Business Horizons, February,
7985.
Cundiff, E. W. (1975). What is the role of marketing in a recession? Journal of Marketing, 39 (2), 1.
Fischer, S. (1998). The Asian crisis: a view from the IMF. Journal of International Financial Management
and Accounting, 9 (2), 167176.
Hofstede, G. (1980). Cultural consequences: international difference sin work-related values. Beverly
Hills, CA: Sage Publications.
Mandell, M. (1998). Asia: converting crisis to opportunity. World Trade, April, 3639.
MarkPlus International (1998). Indonesian housewives in the crisis era. Indonesia.

284

S.H. Ang / International Business Review 10 (2001) 263284

Ostheimer, R. H. (1980). Magazine advertising during recessions. Journal of Advertising Research, 20

(6), 1116.
Reuters English News Service (1999). Singapore Q2 unemployment rate eases to 3.3 pct, August 9.
Rosberg, J. W. (1979). Is a recession on the way? Its no time to cut ad budgets. Industrial Marketing,
64 (April), 6470.
Roxas, J., & Huszagh, S. M. (1996). Adjusting to economic change in developing countries: Philippine
firms cope with stagflation. Journal of Global Marketing, 9 (4), 534.
Schafter, U., & Roper, M. T. (1985). Aspects of price policy, product policy and costs in a recession.
European Journal of Marketing, 19 (1), 1219.
Shama, A. (1978). Management and consumers in an era of stagflation. Journal of Marketing, 42 (July),
4352.
Shama, A. (1981). Coping with stagflation: voluntary simplicity. Journal of Marketing, 45 (Summer),
120134.
Shama, A. (1992a). Managing marketing during stagflation in Yugoslavia. International Marketing
Review, 9 (1), 4456.
Shama, A. (1992b). Transforming the consumer in Russia and Eastern Europe. International Marketing
Review, 9 (5), 4359.
de Souza, A. (1998a). More careful, yes, but not drastic moves. The Straits Times, April 6, p. 26.
Koh Buck Song (1998b). Singapore dream now limited to cash. The Straits Times, April 7, p. 30.
Swee Hoon Ang is an Associate Professor at the Faculty of Business Administration, National University of
Singapore. She graduated with a PhD from the University of British Columbia. She co-authored with Philip
Kotler in Marketing Management: An Asian Perspective. She has published in Journal of Advertising, Long
Range Planning, Psychology and Marketing, and Journal of World Business.