1.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;
o Common customer needs
oEconomies of scale
oTime to market
oRegional 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
ADAPTATEDProduct Extension, Communication and AdaptationDual Adaptation
2.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)
3.WHAT IS A COUNTRY OF ORIGIN STEREOTYPE?
-Means when people have an association of products with countries, e.g. France with wine. -Powerful effect
-Effects are complex and require considerations examples are; oCountry of origin effects not stable, different perceptions over time. oIn general, consumers prefer domestic products over imports. oResearch both country of design and manufacturing play a role. oDemographics make a difference e.g. stronger in older groups. oConsumer’s likely to use country of origin as a cue when unfamiliar with brand name. oCountry of origin effects depends on the product strategy. -Strategies to cope...