International Marketing: Product Standardization
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Questions and Answers

Conducting preliminary screening for market and product identification is not necessary through market research.

False

A single standardized product is always produced for all international markets.

False

A poorly conceived product always leads to market success.

False

Different approaches are not adopted by international marketers for developing products.

<p>False</p> Signup and view all the answers

Ethnocentric approach involves producing separate products for each different market.

<p>False</p> Signup and view all the answers

Standardization of a product involves making significant changes to the product to meet the needs of target markets.

<p>False</p> Signup and view all the answers

Product adaptation involves making no changes to the product to meet the needs of target markets.

<p>False</p> Signup and view all the answers

In polycentric approach, the firm produces separate products for each different market.

<p>True</p> Signup and view all the answers

Region-centric approach involves finding similarities exhibited by consumers in their purchase behavior.

<p>False</p> Signup and view all the answers

High technology content products like computers are always adapted to meet the needs of local markets.

<p>False</p> Signup and view all the answers

Government regulations are a voluntary factor that influences product adaptation.

<p>False</p> Signup and view all the answers

Most companies customize their products completely for each target market.

<p>False</p> Signup and view all the answers

Differences in operation systems of electronic goods are a reason for product standardization.

<p>False</p> Signup and view all the answers

Standardization of a product helps to meet the needs of local customers and provides cost savings due to economies of scale in production.

<p>True</p> Signup and view all the answers

Study Notes

International Product Development Approaches

  • International marketers must decide between producing a single standardized product or customized products for different markets.
  • Conducting preliminary market research is crucial for identifying markets and products.

Ethnocentric Approach

  • Assumes consumer needs and market conditions are similar across markets.
  • Modifies home market products for international markets with minor changes.
  • Fails to achieve maximum market share and profit.

Polycentric Approach

  • Produces separate products for each market.
  • Also fails to achieve maximum market share and profit.

Region-Centric Approach

  • Considers product similarity within market clusters.
  • Attempts to standardize products within regions.

Geocentric Approach

  • Seeks similarities in consumer purchase behavior across markets.
  • Develops a standard product for all global markets.

Product Customization

  • Most companies customize product components (features, packaging, labeling) to suit target markets.
  • Retains brand name while adapting products to meet local needs.

Product Standardization

  • Offers products in foreign markets with minor changes (packaging, labeling).
  • Meets global customer needs and achieves cost savings through economies of scale.

Product Adaptation

  • Makes changes to products to meet target market needs.
  • Reasons for adaptation include government regulations, technical differences, and cultural factors.
  • Voluntary factors like consumer demographics, culture, and local customs also influence adaptation.

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Description

Learn about the importance of deciding on standardized or customized products for different markets in international marketing. Understand the role of market research in identifying potential markets and products.

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