International Brand-Name Standardization/Adaptation: Antecedents and Consequences

Abstract

Using the structure-conduct-performance paradigm along with Porter's international factor conditions, the authors propose and empirically test a conceptual framework to explain the antecedents and consequences of a firm's brand-name standardization/adaptation strategy. Survey research and structural equation modeling results show that firms adapt (vary) their brand names when market structure factors measured by competitive, buyer, and distribution intensity increase. Furthermore, the authors find that the more standardized the brand name worldwide, the higher are the firm's cost savings and the higher is the product's sales volume as perceived by marketing executives.The issue of standardization versus adaptation in marketing activities has been prominent in the international literature since the publication of Levitt's (1983) article on the globalization of markets. Levitt proposes that the global corporation can serve the world more economically through large-scale production if it views the world as a small number of standardized markets rather than a large number of customized markets. Winram (1984) suggests that successful marketers are those that treat market segments as global entities, not local ones. Winram claims that cultural convergence will proceed at an accelerated rate, because the development of television satellites and increased cable penetration will enable viewers access to multiple international perspectives and cultures.Contrary to this view, Wind (1986) argues that no powerful empirical evidence exists to show that the world is becoming more homogeneous or consumers universally more price conscious. He offers examples of global products that are fairly expensive and questions the desirability of focusing on a low-price strategy, because customers who base their purchases on price tend to be brand switchers, ever seeking lower-priced brands. Brands targeting multiple market segments may increase revenue by adapting to the specific needs of each segment while maintaining or increasing price. This debate on standardization/adaptation has triggered several recent marketing studies (Aaker 1991; Barwise and

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The Anatomy of Brand Name Translation Under Skopos Theory: A Model of Customer Satisfaction, Awareness of Translation Strategy Use and Purchase Intention

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