560- Post And Responses 2
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560forresponses.docxLindsay Detzler
Lindsay Detzler DB4
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3. Define the country-of-origin effect and give examples.
The country-of-origin effect is that of perceptions of either marketers or consumers associating brand, product, or service quality regarding the country that is producing the output, thus making purchasing decisions based on the existing prejudice (Juneja, n.d.). When penetrating a certain area for market share, the researcher must consider local opinion of the country of origin and how it may impact the success of the company, brand, product, or service that is intended for sale.
Examples of brand recognition includes the slogan of Rolex and Swatch watches, stating “crafted to perfection in Switzerland (Juneja, n.d.). Not only does that correlate ultimate quality with a country, it also relates that quality with a luxury brand. An example of failure is that of British car producers of Rolls Royce and Jaguar. Though their reputations of upscale automobiles were known, the firms could not perform successfully in a global market, as overseas consumers associated these companies with old world products and preferred the new and promising vehicles from Japan and South Korea, which provide quality cars at affordable prices (Juneja, n.d.).
15. Give an example of how a foreign marketer can use knowledge of the characteristics of innovations in product adaptation decisions.
Marketers can successfully manage the success of new product diffusion by adequately conveying relevant product information and new product attributes in a meaningful way to a foreign market (Rao, 2010). An example of both a failure and success story to implement an innovative product to a new market is that of the United States boxed cake mix product to the British market. The first company offered a fancy iced cake mix that required dried eggs and milk, a stark opposite to the commonly used fresh ingredients. This challenged local value in the diligence and quality of baking a cake, thus the firm was unable to obtain any market share (Rao, 2010). The firm failed to understand the required adaptations needed for the British market to be intrigued by the innovation of boxed cake. Failing to understand the values of the target audience may lead to poor product offering.
A second firm introduced cake mix to the British market, but prior to entry, surveyed 500 British housewives regarding their preferred favorite cake. The firm discovered that the majority preferred to bake a simple, dry sponge cake, thus the firm introduced an adapted version of the dry cake mix to the foreign market which mirrored existing tastes, and was able to quickly gain approximately thirty-five percent of market share (Rao, 2010).
7. What roles do service, replacement parts, and standards play in competition in foreign marketing?
Quality as a means of driving consumer purchasing decision can impact foreign competition. Quality, on a global scale, can be impacted by post-purchase service offering, availability of replacement parts, as well as perceived differently according to established standards. British Standard Institutes (BSI) stated that established standards may decrease technical barriers of global trade by minimizing production costs by exploiting the opportunity to produce in economies of scale (2017). Creating a globalized standard allows continuing service and replacement needs to be easily replicated and implemented in multiple locations globally, as well as secure perceived quality by establishing a notable standard seal.
14. What is the price-quality relationship? How does this relationship affect a U.S. firm’s comparative position in world markets?
The price-quality relationship describes the consumer’s perception of the quality he or she is receiving given the pricing of the product or service. Further described, pricing has been proven to be a significant psychological component that impact’s purchasing decision; in theoretical practice, if a marketer elevates pricing, the customer will think that the quality will be elevated as well (Bhasin, 2020).
While the United States market’s expect higher quality as exemplified by elevated prices, this level of quality will more than likely not be demanded by developing markets, as more simplified, comparable units may be of more interest as well as more affordable (Cateora, Money, Gilly, and Graham, 2020, p. 430). In order to enter emerging economies, the U.S. should understand the values of the target audience and implement products that not only suit their basic wants and needs but match their expected quality and are within their financial means.
Bhasin, H. (2020, January 25). Price quality matrix - Relationship between price and quality. Retrieved from https://www.marketing91.com/price-quality/
The British Standard Institution. (2017, August 29). What role do standards play in supporting international trade? Retrieved from https://memberportal.bsigroup.com/public/2017/august/what-role-do-standards-play-in-supporting-international-trade/
Cateora, P. R., Money, R. B., Gilly, M. C., & Graham, J. L. (2020) International Marketing. (18th ed.) New York, NY: McGraw Hill.
Juneja, P. (n.d.). Country of Origin Effects on Marketing: How Brands from Certain Countries Score Over the Others. Retrieved from https://www.managementstudyguide.com/country-of-origin-effects-on-marketing.htm
Rao, S. R. (2010, August 3). Innovative Products and Adaptation. Retrieved from https://www.citeman.com/9842-innovative-products-and-adaptation.html
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Mercedes Mayhew
Discussion board week 7
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Chapter 13
Question # 3: Define the country-of-origin effect and give examples.
Country of origin effect (COE) “can be defined as an influence that the country of manufacture, assembly, or design has on a consumer’s positive or negative perception of a product.” (Cateora, Money, Gilly, Graham, 2020) In other words, how a product from ones country can affect the opinion of people. An example of this would be people not wanting to buy Toyota vehicals because they are a Japanase company. “Made in Germany”, for example, has been regarded for decades as a quality feature that communicates prestige and reputation in a great measure. (Haller, 2018)
Question # 15: Give an example of how a foreign marketer can use knowledge of the characteristics of innovations in product adaption dicisions.
A foreign marketer focus’s on three main components to lead to market acceptence. These components include, the core component, packaging component, and support services component. It is important for marketers to be fimiliar with the culture of their target market. “Greetings, images, humor and creativity have to match local customs.” (Markgraf, 2020) An example of this is Clinique wanting to market their product in Germany. They were unsuccessful because Clinique in German means clinic. So the makeup brand was unable to successfully convey what their product was.
Chapter 14
Question # 14: What is the price-quality relationship? How does this relationship affect a U.S. firm’s comparatice position in world markets?
Price-quality relationship is a tool which shows price in relation to quality. The higher the price, the higher the quality, and vise versa. It is an important factor to incorprate when entering markets of developing countries. Requirements of products sold in the United States may be different than that of developing countries. Therefore, leading to less cost in production for the products made for developing countries. Although this may seem that products are less important, that is not the case. It does however, mean the needs of developing countries need to be evaluated before a product is designed for that market.
Question # 17: Discuss the importance of international business services to total U.S. export trade. How do most U.S. service companies become international?
As stated in our book, “trade creates demand”. (Cateora, Money, Gilly, Graham, 2020) Most United States service companies become international is through licensing, franchising, strategic alliances, or directly. Products or services that are exported, are followed up with maintenance abroad, in the same way business is handled in the United States.
References
Cateora, M. G. (2020). International Marketing. McGraw Hill.
Haller, F. (2018, June). Ready for the Social Media Firestorm. Retrieved from Serviceplan.blog: https://serviceplan.blog/en/author/florian-haller/
Markgraf, B. (2020). Cultural Adaptation in the Global Marketplace . Retrieved from Smallbusiness.chron : https://smallbusiness.chron.com/cultural-adaptation-global-marketplace-68239.html
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