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Slide 9.1
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Chapter 9Product policy 1:
Physical, service and symbolic attributes
Marketing
AcrossCultures
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Slide 9.2
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Product policy: adapt or standardize
Levitts (1983) thesis on the globalization of markets
Standardize as much as feasible a lot can be done
Customize when needed around a standard core product Coca Cola or McDonald's
In global industries (more standardization opportunities),firms which standardize show superior performance
Within an industry (similar world markets & opportunities),firms which customize perform better (Samiee & Roth, 1992)
A down-to-earth approach based on product attributes
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Slide 9.3
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Standardization: Product element
78% product quality
72% brand name
71% image
67% performance
54% size & colour 52% packaging & style
48% design & features
45% pre-sales service
43% after sales
service & warrantees
42% delivery & install
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Slide 9.4
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Physical
Attribute
ServiceAttributes
Symbolic
Attributes
Levels of product attributes
A car :
Steel+plastics+length+weight, etc.
Number of persons, gas mileage, levelof comfort
Luxury, economy, dynamism, sporty,
A Perfume :
Physical base: scents based onflowers, fruits, woods, spices, animals
scents Deodorize, cover odours, etc.
Feminine/Masculine, Old/young, etc.
Service
Attributes
Physical
Attributes
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Slide 9.5
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Product attributes Physical attributes (size, weight, colour, etc.)
The greatest potential for economies of scale
Service attributes are difficult to standardize:
Delivery differs widely Performed in direct relation to local customers
More dependent on culture
Symbolic attributes (interpretive attributes, brand, origin) Ambiguous: consumers have confused attitudes
A liking for domestic goods based on nationalism A penchant and even fascination for foreign cultures and goods
National identity symbols intermingle with symbols of exoticism
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Slide 9.6
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Table 9.1 Factors influencing adaptation or standardization of product attributes
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Slide 9.8
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Service Attributes
Elements
Repair & maintenance
Installation Instructions
Waiting time
Guarantees
Spare parts availability
Return of goods
Environmental factors
Technical expertise
Labour costs Literacy
Climate
Remoteness
Performance
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Slide 9.9
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Service attributes
Difficult to standardize
Differences in delivery
Limited potential for pure economies of scale Some potential for economies related to learning
international transfer of knowledge is a key issue
Delivery processes vary cross-culturally
Level of performance Style of personnel in contact and attitudes in customer
interactions
Culture and waiting time: pre-, in- and post-process
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Slide 9.10
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
What does 99% quality mean?
How many hours of safe drinking water permonth? 7 of 720 hours...
How many unsafe plane landings per month?
How many babies dropped at birth per year?
How many cheques taken from the wrongaccounts every hour?
How many parts missing from every new car?
How many times your heart fails to beat eachyear? 32,000 times...
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Slide 9.11
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Service QualityExpected
servicePerceived
service
Image
Technical
Quality
Functional
Quality
What is done How it is done
Gronrooss Service Quality Model
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Slide 9.12
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Dimensions of Service Quality
Tangibles Physical appearance of business, personnel, andsales literature.
Reliability Performing the promised service dependably andaccurately over time.
Responsive-
ness
The willingness to help customers and provide
needed services promptly. Resolving problemsquickly and answering questions intelligently andhonestly; keeping commitments.
Assurance Service employees use knowledge and courtesy toconvey sense of trust and confidence; treat
customers with respect.
Empathy Service employees convey to customers that thecustomers are important; that they care about thecustomers' problems.
Adapted from Zeithaml, Parasuraman, and Berry (1990), Delivering Quality Service: Balancing
Customer Perceptions and Expectations.
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Slide 9.13
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Cultural dimensions and automated
service
High Being High Doing
Affectivity Strong preference
for personnel in
contact
Like the machine but
would like personnel
also
Neutrality Do not like themachine but do not
like people either
Strongest preferencefor purely automated
service
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Slide 9.14
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Categories of symbolic attributes
Symbolic associations related to physical attributes colour of a product, its shape,...
Meanings related to the brand name product/corporate
Connotative meaning of product-design and aesthetics Functional? Easy-to-use? Modern? Luxurious?
Consumer perceptions of product origin if they are searching for this information,
it is available, and they take origins into account
manufacturing origin (made-in)
country of design
country suggested by the brand name
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Slide 9.15
Usunier & Lee, Marketing Across Cultures, 4E Pearson Education Limited, 2005
Source: Copeland and Griggs, 1986, p. 63
Symbolism: In every culture, things,
numbers, even smells have meanings Black is not universal for mourning
in many Asian countries it is white
Brazil it is purple
Mexico yellow
Ivory Coast dark red
Red suggests good fortune in China
Death in Turkey
Blue is the most masculine in USA
Red is in the United Kingdom or France
Pink is the most feminine in USA Yellow is more feminine in many other
parts of the world
A candy wrapped in blue or green is
probably a mint in the USA
In Africa it would be wrapped in red,
our colour for cinnamon...
Lemon scent suggests freshness in
the USA
it is associated with illness in the
Philippines
4 in Japan is like our 13 West
7 is unlucky in Ghana, Kenya and
Singapore.
An owl is bad luck in India, like our
black cat.
In Japan a fox is associated with
witches.