Describe the various reasons for product alteration.
Chapter 17 Global Marketing
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Daniels, 15edition, Global Marketing, Chapter 17
Answer:
ReplyDeletea. Legal reasons: Explicit legal requirements are the most obvious reasons for altering products for foreign markets. The exact requirements vary widely by country, but are usually meant to protect consumers. One of the more cumbersome product alterations for companies is adjusting to different laws on packaging that protect the environment. Marketing managers must also watch for the indirect legal requirements that may affect product content or demand.
b. Cultural reasons: Marketing managers find it difficult to determine in advance whether consumers in foreign markets will accept new or different products because of differences in consumer cultures.
c. Economic reasons: If foreign consumers lack sufficient income, they may not be able to buy the product the MNE sells domestically. The company therefore may have to design a cheaper model. Even if a market segment has sufficient income to purchase the same product the company sells at home, differences in infrastructure may require product alterations.