WHAT IS STANDARDISATION VS CUSTOMISATION?
should aim for a standardised or country tailored strategy -
standardisation: offering a uniform product regionally or worldwide -
this type of policy capitalises on the commonalties in customer’s needs across countries. -
Goals= minimize costs
5 forces for standardised approach;
Common customer needs
Economies of scale
Time to market
Regional market agreements
Customisation: a country- tailored product strategy. It helps to meet local needs. -
Eg. Pepsi has 13 different formulas for different areas.
Overcustomisation: where nthere has been so much adaptation that the product looses differentiation from local brands. -
Need to regulate degree of the two conceptS
Product Extension, Communication and Adaptation
WHAT IS MEANT BY UNCERTAINTY AVOIDANCE?
How much people in a culture feel threatened by uncertainty and rely on mechanisms to reduce it. -
High UAI areas are Greece and Japan
Risk aversion leads to different rates of diffusion.
Have to customise your product to help ease the uncertainty. (Brand Equity: collection of assets and accountabilities that a brand name invokes in consumers’ minds e.g. Slogans)
WHAT IS A COUNTRY OF ORIGIN STEREOTYPE?
Means when people have an association of products with countries, e.g. France with wine. -
Effects are complex and require considerations examples are;
Country of origin effects not stable, different perceptions over time. o
In general, consumers prefer domestic products over imports. o
Research both country of design and manufacturing play a role. o
Demographics make a difference e.g. stronger in older groups. o
Consumer’s likely to use country of origin as a cue when unfamiliar with brand name. o
Country of origin effects depends on the product strategy. -
Strategies to cope...
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