Abstract
Drawing from social science literatures, this paper proffers and examines a theory that firms should adapt their marketing strategies in cross-cultural settings in order to reflect the dissimilar significance of their brand’s functional and experiential elements in disparate cultures. Employing American and Chinese respondents, the paper tests hypotheses that empirically examine whether there is support for the discussed theory. It presents the findings, some which were unexpected, and offers new insight into the ongoing standardized vs. localized marketing strategy debate, with respect to marketing brand(s) in cross-cultural settings. The paper also provides a future research program to further our understanding of which marketing strategies are more apposite in cross-cultural settings.
Highlights
October, 2009 purchase behavior might differ (Sinha and DeSarbo, 1998; Keller, 2000; Barnes, 2003)
In drawing from social science literatures, we theorize that the dissimilar cognitive processes, values, evaluative criteria, and purchase decision processes that exist in disparate cultures (e.g. Nisbett, Peng, Choi and Norenzayan, 2001; Briley and Wyer, 2001) likely lead to a brand’s functional and experiential elements having dissimilar influence on consumers’ purchase behavior
Some (e.g. Katsikea and Skarmeas, 2003) suggest that firms tend to struggle in international markets when they do not adapt their marketing strategies to reflect dissimilarities that exist between customers in their domestic and foreign markets
Summary
As domestic markets mature and competitive pressures increase, firms frequently turn to foreign markets in quest of growth opportunities for their brands. Nisbett, Peng, Choi and Norenzayan, 2001; Briley and Wyer, 2001) likely lead to a brand’s functional and experiential elements having dissimilar influence on consumers’ purchase behavior If supported, this difference would suggest that firms will most likely need to adapt their marketing strategies to place disparate weights on the functional versus the experiential elements of their brands in cross-cultural transactions. Using individuals in a Western culture, such as exists in the U.S, and in a traditional Eastern culture, such as exists in mainland China, the present study was conducted to test the proposed theory These cultures were chosen for a comparative study based on social science literatures suggesting that the cognitive processes, values, and evaluative and decision processes of individuals typically found in these two cultures are so dissimilar that they are essentially opposite (Nisbett et al, 2001). It closes by discussing implications of the study’s findings, after which it puts forth a future research agenda to provide further insight into the standardized vs. localized marketing strategy debate, followed by a discussion of this study’s limitations
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