Firms must decide if it is preferable to use a Standardization versus Localization-Adaptation approach. Considerations supporting a Standardization approach are:
A) Customer segments in many countries still have differing preferences.
B) Some products are cheap to develop, produce and do not have learning curve issues.
C) Companies using a standardized approach can gain economies of scale in both production and marketing when customer segments have converging preferences.
D) Customers always will pay a premium price for the most luxurious brand in a product class.
E) Even with a standardized product, often other marketing mix variables should be localized.

Question

Quizplus · Accepted Answer

The Answer of Firms must decide if it is preferable to use a Standardization versus Localization-Adaptation approach. Considerations supporting a Standardization approach are:
A) Customer segments in many countries still have differing preferences.
B) Some products are cheap to develop, produce and do not have learning curve issues.
C) Companies using a standardized approach can gain economies of scale in both production and marketing when customer segments have converging preferences.
D) Customers always will pay a premium price for the most luxurious brand in a product class.
E) Even with a standardized product, often other marketing mix variables should be localized.

Firms Must Decide If It Is Preferable to Use a Standardization