560- POST AND RESPONSES DB-4
INeal
MKT560-W4-Forresponses.docxAshley Fifield
DB 4
Top of Form
Overall Rating:
· 1
· 2
· 3
· 4
· 5
· 1
· 2
· 3
· 4
· 5
Chapter 13
3. Define the country-of-origin effect and give examples.
Country-of-origin effect (COE) is also known as made-in-image that describes the bias attitude towards one nation or country. It is a psychological effect that describes how a customer reacts towards the labeling of a product and it originating country. COE is used often by marketers in attracting the customers and making the sale of their good to take place. An example of COE would be cars that are made in Japan being highly preferred by people around the world compared to cars made in other countries due to the advanced technology used in cars made in Japan and the quality and price of the cars as well. Another example of a COE would be clothes that are made in Italy versus clothing that is made in Mexico.
5. Discuss product alternatives and the three marketing strategies: domestic market extension, multidomestic markets, and global market strategies.
Product alternatives stand for the substitute products that are existed in the market replacing one product for the other. An example of this would be when a price for a certain regular commodity increases, marketers starts marketing and selling substitute goods to the consumers so that the demand of the customers is satisfied plus the sale of the substitute goods could be increased.
Domestic market extension: This marketing strategy is stands for the practice of increasing the demand of a particular product or service in the market wherein the marketer keeps the product into maturity stage of the product life cycle and prevents it from getting towards declined stage. This way the domestic product is extended and stabilized for some more time in the market.
Multi-domestic markets: According the Casey Reader (2016), the term multi-domestic has been used to describe a set of strategies used by companies that operate in more than one country at a time. In this strategy that the marketer tries to achieve maximum response for its product or services by customizing the offerings to suit that taste and demand of various subgroups in a targeted population. The products offered to customers are amended and enhanced to attract the local customers and increase the selling of that product.
Global marketing strategies: A global marketing strategy is when the product or services offered by the firm are revitalized and are made appropriate to suit the global needs and demands by the population. The marketer undertakes such strategies that are capable of meeting the demands of global population and attracting them towards the offerings.
Chapter 14
14. What is the price-quality relationship? How does this relationship effect a U.S. firm’s comparative position in world markets.
Price-quality relationship is stands for the association that exists between prices of the goods and its quality. The goods that are highly priced are regarded as of good quality while the goods that are not highly priced are regarded as of compromised or low quality. Price-quality relationship affects a firm’s comparative position in the world market in a way that when a firm from a U.S.S. country introduces its high quality products with reasonable prices, the products are taken hands on by the customers around the world. The major factor in the price-quality relationship is that unless the firm is capable of obtaining and realizing the cost of production of the products it manufactures, it cannot afford to sell its products at low prices because for providing excellent quality products there is a need to spend good money in the production processes that results into quality goods at reasonable and low prices. This way a relationship between price-quality could affect the firm’s comparative position in the world market.
17. Discuss the importance of international business services to total U.S. export trade. How do most U.S service companies become international?
Foreign marketing stands for the marketing activities that are undertaken in foreign nations to market the superiority and uniqueness that the company offers to its customers in the foreign nations. The importance of international business services to total U.S. export trade could be described by stating that services, replacement parts, and standards of product sold at foreign nation plays a very crucial role in competing with foreign players in foreign countries. This is because entering into a foreign nation with providing a good quality product is not very difficult but being capable of stabilizing there for a long time is something that could be achieved only when the organizations selling goods at foreign nations also pay extreme focus towards after sale services, replacement of defective or ruined parts of the product and also the type of service standards that this company provides to its customers across borders. This is the major reason why U.S. export trade largely depends upon international business and related activities.
According to Gerard Burke (2005), the major reason that a company were to choose to go global is to improve their potential of expansion and growth. Most U.S. companies become international by creating organizations that undertakes business and marketing activities in foreign nations to come up with sufficient number of service centers facilitating replacement of defective and ruined products and parts of it with high quality standards of services to make a mark in the minds of the foreign population. This way it could be concluded that services, parts, and standards of products sold at foreign nations plays a very crucial role in competing with foreign countries making a country go international.
References:
Burke, G. (2005, December 05). How to Take Your Company Global. Retrieved July 30, 2020, from https://www.entrepreneur.com/article/66014
Cateora, Philip. (2020). International Marketing (p. 2-53). McGraw-Hill Higher Education.
Reader, C. (2016, October 26). The Definition of a Multidomestic Company. Retrieved July 30, 2020, from https://smallbusiness.chron.com/definition-multidomestic-company-22154.html
Bottom of Form
Andrew Harrell
DB 4 - Andrew Harrell
Top of Form
Overall Rating:
· 1
· 2
· 3
· 4
· 5
· 1
· 2
· 3
· 4
· 5
Chapter 13, Question three: Define the country-of-origin effect and give examples:
The country of origin is where raw materials or a product comes from. A car may be assembled in the United States, and the country of origin of the tires are from China. The country of origin effects is based on how the consumer's perception is impacted by where the product originates from. Consumers can form stereotypes and are related between the country of origin and the products. (Cateora, Money, Gilly, Graham, 2020 pg 412) Company’s brand images can positively or negatively be impacted by country of origin effects.
An example of a country of origin's effects would be a consumer who positively perceives a designer clothing brand because it was produced in Italy. Italy is a country of origin that is known to produce designer clothing and handbags. A consumer might not purchase a designer bag or clothing if produced in an underdeveloped country such as Bangladesh or Vietnam.
Another example of a country of origin effect would be a consumer that perceives a car brand (Honda) positively because it came from Japan. Japan is an origin that is known to produce safe and reliable cars because of the internal processes and quality measurement standards they have. Consumers may not buy a car because they have a bias about a car being made in Germany (Audi) because of high upkeep in maintenance. Germany is getting a reputation for producing cars that require high maintenance.
Chapter 13, Question 13: How can a company with a per capita GNP of $100 be a potential market for consumer goods? What kind of goods would probably be in demand? Discuss.
Countries with the gross national product per capita of $100 would still be a potential market for consumer goods. Gross national product is the measurement of yearly production and output that a country has. (Chapplow, 2020) The consumers in a low gross national product country will still have a demand for essential consumer goods. Household goods, clothing, food, and personal hygiene items are some items that a consumer would still need within these markets. Countries with low gross national product are candidates to import more of the essential consumer goods from other countries with production capabilities and resources.
International marketers will need to focus on physical or mandatory requirements and adaptations when selling in low- gross national product per capita countries. Ninety percent of the products currently being marketed elsewhere will need to be modified to accommodate low gross national product per capita countries. (Cateora, Money, Gilly, Graham, 2020 pg 382) Quantity sizes of products will need to be reduced to accommodate affordability and consumption patterns. (Cateora, Money, Gilly, Graham, 2020 pg 382) Additional features of a product that are attractive in broader markets may need to be eliminated and adapted to accommodate affordability, functionality, and aftermarket serviceability.
Chapter 14, Question Seven: What roles do service, replacement parts, and standards play in competition in foreign marketing? Illustrate.
Companies that sell their product overseas must provide after-sales services to remain competitive in the global marketplace. Foreign consumer's and businesses ' buying criteria include after-sales services such as installation, support, training, and warranty repair programs. International marketing managers must develop after-sales service programs to be considered a global option to foreign consumers. The company's reputation can be damaged if it does not have adaquate after-sale services and may not be considered an option for the foreign consumer. After-sale service programs also help build customer loyalty.
International marketing managers must understand that the lack of universal standards can impact foreign consumers from purchasing their products. The system of measurement is an example of a company choosing one product over another because it uses lb/inch versus kg/metric systems within their test methods. Marketing managers must be aware that countries have different standards, and the product must be adjusted to meet them. Global businesses are making a purchasing decision based on standards that companies are putting in place to measure quality, such as ISO 9000.
IBM post support services help them with being one of the industry's leaders by providing cloud, mobile, and big data solutions. IBM provides a global infrastructure that supports the business to business or business to consumer during the initial build, implementation, and post-implementation. IBM has certified technician professionals that can provide support and training in 130 countries and speak in 27 languages. (IBM, 2020) IBM has a global distribution network to respond to customer demands quicker when a part is needed for a repair. IMB offers post-sales service and repair contracts to their clients. They provide training guides and videos for consumers to help overcome technical gaps that employees have in different global markets.
Chapter 14, Question 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 is interconnected with how well the product performs versus how it is priced in the market. Consumer’s perception of value and quality is connected to price. Consumer's perception of quality and value is correlated to the price. The higher the price is compared to other competitors, consumer perception with quality and value increases. The lower the price is compared to other competitors; consumer perception decreases.
The price-quality relationship impacts the United States in several ways. Companies in the United States will need to adapt products to meet foreign consumer specific needs. Different attributes and utilities of the products may need to be altered because the foreign consumer does not need them. Adapting the product to meet the specific needs of a consumer or meet specific standards and regulations of foreign countries will impact the production costs. Companies will need to invest in new production processes and product designs to mass-produce in a country. The firms located in the United States will need to adapt their products to foreign country standards, or they will not be able to compete globally.
Thank you,
Andrew Harrell
Reference:
Cateora, P., Money, B., Gilly, M., & Graham, J. (2020). International Marketing (18th ed.). New
York: McGraw Hill.
Chappelow, J. (2020, March). Gross National Product (GNP), Retrieved from:
https://www.investopedia.com/terms/g/gnp.asp
IBM. (2020). Post-Sales Technology Support Services from IBM, Retrieved from:
https://www.ibm.com/downloads/cas/WEMBKJRD
Bottom of Form
Tyler Kring
Week 7 Discussion
Top of Form
Overall Rating:
· 1
· 2
· 3
· 4
· 5
· 1
· 2
· 3
· 4
· 5
Chapter 13
3. Define the country-of-origin effect and give examples.
The country-of-origin effect is the effect on a brand’s image, either positive or negative, in the eye of the consumer due to the country in which the product is manufactured, assembled, or designed (Cateora, Money, Gilly, & Graham, Products and Services for Consumers, 2020). Commonly held opinions among consumers are that products from Japan, the United States, and China are the most innovative, Italy leads in product design, products from Germany are well constructed, and French products carry a prestige about them (Aiello, et al., 2009). For example, a consumer who is looking for the latest and greatest in smart phone technology would look for a product develop in the United States, Japan, or China as opposed to a country in South America. In the fashion world, Italian designers are viewed as the best and fashion forward thinkers would look towards designs from world-renowned Italian designers, rather than say little know Canadian designers. Despite being well regarded in a sector, like China is in innovation, country-of-origin effect can also be negative and reinforced by nationalistic thinking, like some Americans’ propensity to only buy goods “Made in America” and to purposefully avoid Chinese or Russian made goods because of political beliefs.
15. Give an example of how a foreign marketer can use knowledge of the characteristics of innovations in product adaptation decisions.
Innovation is an idea that is perceived as new by a group of people (Cateora, Money, Gilly, & Graham, Products and Services for Consumers, 2020). While the idea itself may not be new in another part of the world, so long as the idea is new to the group of people it is being introduced to, it can be considered an innovation. Consider the cell phone market in the United States. The market is very saturated and mature, with most people owning a highly advanced features that make the device act like a mini-computer. The idea of the cell phone is not an innovation in the United States anymore. However, in developing parts of the world with limited communication infrastructure, the idea of a cell phone is an innovation. An international marketer can take this fact and adapt the American cell phone product to meet the needs of the developing world. Those consumers do not need a cell phone with internet service that can stream movies and take high resolution photos. Rather, the simple ability to place calls or send text messages, connecting them to the digital world, would be a life altering innovation. The international marketer would then find great success overseas that would be simply and cost-effective to produce in the United States, leading to great margins and profits.
Chapter 14
7. What roles do service, replacement parts, and standards play in competition in foreign marketing? Illustrate.
After-sale service, replacement parts, and standards can be significant differentiating factors in competition in foreign marketing. Not only are these parts and services highly profitable, sometimes more so than the initial product sold, but the can be key factors in the purchasing decision made by a consumer. If a company has superior customer service for its products, can quickly get its customers replacement parts when problems arise, and exceed the industry standards, then the company has a greater chance of making a sale over its competitor, even if the competitor is cheaper. While the cheap competition may represent less of an upfront cost, their lack of customer service, delay in replacement part delivery, and not meeting industry standards could cost the consumer more money in the long run. When customers, both business and end consumer, experience an issue with a company’s product, they want quick communication and the issue to be resolved quickly. Being able to provide such services can be a marketing advantage and can be a feature that consumers are willing to pay a premium for, boosting profits in the long run.
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 is “the balance between a product’s price and how well the product performs. Often the price-quality of a product is ideal if it meets basic expectations and no more, allowing it to be priced competitively” (Cateora, Money, Gilly, & Graham, International Marketing Eighteenth Edition, 2020). This relationship can have a negative effect on U.S. firm’s comparative position in world markets as American consumers often have much higher basic expectations than other global consumers. Take cell phones, for example. In today’s market, American consumers expect cell phones to make calls, send texts, stream video, access the internet, take pictures, etc. As a result, cell phones in the United States cost hundreds of dollars, if not thousands, in order to produce such a product. In overseas markets, the basic expectations of a cell phone is to make calls, and maybe be able to send text messages. As a result, the American cell phone far exceeds the basic expectations of the overseas consumer and the hefty price is not justifiable based on what the consumer is looking for from the product. As a result, the U.S. firm is at a comparative disadvantage to its competitors that make cheap, readily accessible phones that simply make calls. The U.S. firm, in this scenario, either needs to lower the price (likely making the product unprofitable), cut out features of the phone, or introduce a cheap, new product line altogether to better compete in world markets.
References
Aiello, G., Donvito, R., Godey, B., Pederzoli, D., Wiedmann, K.-p., Hennings, N., . . . Singh, R. (2009). An international perspectiveon luxury brand and country-of-origin effect. Journal of Brand Management, 323-337.
Cateora, P. R., Money, R., Gilly, M. C., & Graham, J. L. (2020). International Marketing Eighteenth Edition. New York: McGraw-Hill Education.
Cateora, P. R., Money, R., Gilly, M. C., & Graham, J. L. (2020). Products and Services for Consumers. In P. R. Cateora, R. B. Money, M. C. Gilly, & J. L. Graham, International Marketing, Eighteenth Edition (pp. 376-417). New York: McGraw-Hill Education.
Kelsey Leja
Discussion Board #4
Top of Form
Overall Rating:
· 1
· 2
· 3
· 4
· 5
· 1
· 2
· 3
· 4
· 5
Chapter 13
3. Define the country-of-origin effect and give examples.
The country-of-origin effect is defined as the influence a country has, whether it be positive or negative, on the product they produce as it enters international markets. This can be influenced by past products that originated from a country or stereotypes. For example, in the United States, a product with a "made in China" sticker is often assumed as low quality and cheap compared to stickers with other countries on it. China actually assembles and makes a lot of different high-quality products, such as items that go into Apple products. Foxconn is Apple's longest partner in building their iPhones, "It currently assembles the majority of Apple's iPhones in its Shenzen, China, location" (Costello, 2020). Apple products are perceived as high quality, however, many of the parts that go into the products are sourced from China, which proves that the country-of-origin effect, just like stereotypes, is not always true.
15. Give an example of how a foreign marketer can use knowledge of the characteristics of innovations in product adaptation decisions.
The most important first step in entering a foreign market is to determine the degree of perceived "newness" of the product to be introduced. Some of the products that may be in the mature or declining stage of the product life cycle may be brand new to foreign markets, thus creating an opportunity for growth. The elements of diffusion will help a marketer understand how their new product will perform once it hits the market. These elements include Innovation, Communication, Time, and the Members of a Social System. They need to understand that they need to create a product that will be useful to those within a social class and allow time for it to potentially become widespread through their own and external communications. The general rule is that the more innovative a product may be, the longer it takes for it to become widespread. An example of this is the Internet. The internet has been very popular in the United States, with us having computers, smartphones, and TVs connected to it as well. If someone visits Africa, the internet is still in its beginning stages, in which some areas may not have even gained service yet. This is because the internet was introduced in the United States well before, and the level of innovation is much higher in Africa than it was in the United States and similar countries.
Chapter 14
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 is how well a product fits the needs of a consumer in regards to its price and quality. A product can be of poor quality but also come with a price that is higher than other products of similar quality. Many countries set a standard for products entering their markets depending on their individual needs. Cars in the United States may need to be suitable for all weather conditions, while places that are mainly mild may have lower standards as they do not have the same needs as a U.S. Consumer. This can affect a firm in the United States depending on the country they are attempting to sell to. Markets that require higher standards will accept products from fewer countries, and vice versa. Since the U.S. tends to have higher standards, their products will be of higher quality on average. This can be helpful when selling to countries that also have similar standards but can hurt the firm if people do not need this amount of quality and would rather purchase a cheaper version.
17. Discuss the importance of international business services to total U.S. export trade. How do most U.S. service companies become international?
Trade increases the need for international business services. As one company adopts a client, it is likely that they will become part of a client following, in which many other local companies will adopt this client as well. Most U.S. service companies become international as a result of this phenomenon. NAFTA, as well as GATT, has helped many service companies regulate their services, which helps them travel to new countries as they do not have to change many of their rules or business processes.
Sources:
Cateora, Philip. International Marketing (p. 413). McGraw-Hill Higher Education. Kindle Edition
Costello, S. (2020, March 31). Where Is the iPhone Made? (Hint: Not Just China). Retrieved August 03, 2020, from https://www.lifewire.com/where-is-the-iphone-made-1999503
Delanie Braun
Week 7: Ch. 13 & 14
Top of Form
Overall Rating:
· 1
· 2
· 3
· 4
· 5
· 1
· 2
· 3
· 4
· 5
Chapter 13: Page 417 – Questions # 3, 5, 13, & 15
3. Define the country-of-origin effect and give examples.
The country-of-origin effect, also known as COE, is a phenomenon that relates products being made in a country to the perception that consumer has on said product. This relates to a variety of factors associated with the country that is producing the products, and this knowledge will affect a consumers perception on the products being created. This state of mind is often based on stereotypes of the country being analyzed, and what the consumer knows about the country and their experience with products being produced there.
A perfect example with the country-of-origin effect is with purchasing whiskey. A whiskey enthusiast understands that the “best” whiskey comes from Ireland, so they often seek out brands that label themselves as an Irish producer. Why? Because of the stereotype that the Irish produce the best whiskey because they are known for their drinking and strong tastes. Would a normal consumer know the difference between Irish whiskey and an American-made whiskey? Probably not. But the Irish country-of-origin spin indicates that the whiskey being produced is the best there is.
15. Give an example of how a foreigner marketer can use knowledge of the characteristics of innovations in product adaptation decisions.
Innovations give away a lot of details of the origin market and what is valuable to its consumers. Products are very complicated, and often are created to fix issues that the origin country is facing, giving details to what consumers are struggling with and attempting to fix. A foreign marketer attempting to understand and market better towards another country should look at what innovations are being created and what details are in the product adaptation decisions.
An example of marketers utilizing product adaptation decisions and forming that knowledge to benefit themselves can be seen with Starbucks and their expansion to China. Starbucks has been focusing on expanding to China and using a sort of trial-and-error method in finding out what products will perform best in that area. Starbucks noted the issues that China is facing in their beverage industry and noticed a trend of not so much coffee consumption, but more tea consumption- and its recent innovations of caffeinated tea. Starbucks utilized this knowledge of China’s tea product adaptation and created their own line of tea beverages to be rolled out in China, and they are confident that this change will help them better market to China and their tea-lover consumers. (Devault, 2018)
Chapter 14: Page 447 – Questions # 7, 14, & 17
7. What roles do service, replacement parts, and standards play in competition in foreign marketing? Illustrate.
Service, replacement parts, and standards play a huge role in foreign marketing. When dealing with foreign markets the company must consider what is valuable to the consumers, and what the foreign market may not be providing their customers. In order to bring value to purchase from outside the country, the marketer must make it apparent that their company serves the public better, and this can be done through their quality of service, availability of replacement parts, and their defined standards. Great service is a necessity when dealing with foreign markets, because those consumers may have more difficulty understanding other markets, so ensuring that their service is top notch will invite more foreign business. Replacement parts are also essential, especially with costly products. If the consumer is already invested in a foreign market, they want to know that they will be taken care of, and since those products may not be available where they live, they want to trust that the other company will serve them. Having high standards and flawless communication is important because, as I stated, consumers deciding to purchase from outside their country may need a little more help, and they will rely on communication to assist them in their buying.
14. What is the price-quality relationship? How does this relationship affect a US firm’s comparative position in world markets?
The price-quality relationship can be defined as the quality the consumer perceives from a product's price and the actual quality of the product after use. This scenario is often put to the test when purchasing products, and the company must understand what is valuable to the consumer and what actually affects what they perceive as quality improvements.
In world markets, the US must work exceptionally in the price-quality relationship in order to succeed. There are many stereotypes associated with the US and how we do business, which often puts us behind in the quality perception, so the US must not only meet global expectations but exceed them, and the US also must understand what is important in world markets not just their own origin market.
Devault, G. (2018, October 29). How Starbucks Brought Coffee to China. In the balance small business. Retrieved from https://www.thebalancesmb.com/market-research-case-study-starbucks-entry-into-china-2296877
Bottom of Form
Bottom of Form
Bottom of Form
