In international markets, the success of a product depends on how it satisfies the market demand. The acceptability of a product depends on the fulfillment of its purpose in the market. The firm must make a decision on the product aspects which need adapting and those that need standardization. Standardization refers the uniformity of a product in a foreign market while adaptation refers to the alteration of a product to suit the consumers to specific tastes, preference or needs. Adaptation addresses all the product characteristics. However, the standardization or adaptation decision of a product depends on the international market’s preferences or needs.
An internationally traded product can only succeed when it satisfies the customer needs. However, the company or country dealing with the product requires intensive market research to determine the needs and preferences of the product country. The following are the characteristics of products sold in foreign countries.
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Price
Foreign customers will accept a product if they believe it offers them a product/service of higher value and lower price than the competitors (local country). This is known as the low-cost strategy whereby the source country/company determines if the value chain reduces costs and increases profitability.
Prestige
International companies such as Rolex or Mercedes cater for the luxury or designer label markets where consumers are only concerned with prestige or what is known as the ‘snob appeal.’ In such markets, the exporter has to maintain an aura of exclusivity about the product.
Features
This is a broad characteristic which depends on the products’ specifics. An example of a specific feature product in the foreign market is mobile phones. Today’s phones have distinct features such as screen size, physical memory and video playability to attract international consumers.
Reliability
The product must work the same as advertised or be durability. Reliability is also interpreted as the product performing as expected or being available as the customers expect it to be.
References
Calantone, R. J., Kim, D., Schmidt, J. B., & Cavusgil, S. T. (2006). The influence of internal and
External firm factors on international product adaptation strategy and export performance: A three-country comparison. Journal of Business Research , 59 (2), 176-185.
McGuinness, N. W., & Little, B. (1981). The influence of product characteristics on the export
Performance of new industrial products. The Journal of Marketing , 110-122.
