A Model of Advertising Standardization in Multinational Corporations

Laroche, Michel; Kirpalani, V. H.; Pons, Frank; Ling, Zhou

doi:10.1057/palgrave.jibs.8490951

Cited by 102 publications

(115 citation statements)

References 29 publications

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“…Some questionnaire items were developed drawing on prior research (e.g., Laroche, Kirpalani, Pons, & Zhou, 2001;Samiee et al, 2003), while several scales were newly developed for this study. The scales were pretested on both academic researchers as well as business practitioners.…”

Section: Methodsmentioning

confidence: 99%

Market convergence and advertising standardization in the European Union

Okazaki

Taylor

Doh

2007

Journal of World Business

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In this study, we draw on industrial organization and institutional research to explore the relationship between market convergence and standardization of advertising programs. We argue that environmental isomorphism, which maintains that the external market environment is a principal driver of firms’ institutional structures, places pressure on firms to adapt their organizational structures and strategies to changing institutional conditions. We propose that the convergence associated with European market integration will lead firms to emphasize three advertising strategies: creating a uniform brand image, appealing to cross market segments, and increasing cost performance in advertising. Further, we hypothesize that these strategies will be associated with an overall tendency to standardize advertising strategy and execution. Results of a survey of managers of subsidiaries of Japanese and U.S. firms operating in the EU suggest that firms that believe the EU is converging are more likely to engage in these standardized advertising strategies. Additionally, our findings suggest that firms that seek to create a uniform brand image and appeal to cross market segments are more likely to standardize their overall advertising programs. Finally, we find that firms’ desire to create a uniform brand image is a function of their goal of building brand equity, regardless of the level to which markets converge. We draw implications for research and practice regarding firm responses to market convergenceThis research was funded by a grant from the Yoshida Hideo Memorial Foundation (Tokyo) to the first author

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Section: Methodsmentioning

confidence: 99%

Market convergence and advertising standardization in the European Union

Okazaki

Taylor

Doh

2007

Journal of World Business

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“…As Agrawal (1995) noted, the issue has been formally studied for over 50 years, and it is one of the most researched topics in international advertising. Despite this attention, only a few studies (e.g., Laroche et al 2001; Samiee et al 2003) have examined the factors that lead companies to standardize their advertising (Taylor 2002). Harris (1994) pointed out that there has been too much focus on whether firms should standardize and too little focus on how they should go about it.…”

Section: Advertising Standardization's Positive Impact On the Bottom mentioning

confidence: 99%

“…Examining managerial perceptions at the subsidiary level allows measurement to take place closer to the actual implementation of the advertising program. Although the viewpoints at both the headquarter and subsidiary level provide insight into the firm's advertising programs (Laroche et al 2001), the focus of the present study is at the subsidiary level.…”

mentioning

confidence: 99%

Advertising Standardization's Positive Impact on the Bottom Line: A Model of When and How Standardization Improves Financial and Strategic Performance

Okazaki

Taylor

Zou

2006

Journal of Advertising

102

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Esta es la versión de autor del artículo publicado en:This is an author produced version of a paper published in: El acceso a la versión del editor puede requerir la suscripción del recurso Access to the published version may require subscription ADVERTISING STANDARDIZATION'S POSITIVE IMPACT ON THE BOTTOM LINE: A Model of When and How Standardization Improves Financial and Strategic PerformanceAuthor: Okazaki, Shintaro; Taylor, Charles R; Zou, Shaoming ABSTRACT:Building on Zou and Cavusgil's (2002) global marketing strategy (GMS) framework, the authors propose a structural model of advertising standardization that explores (1) the factors that encourage firms to engage in standardized advertising; and (2) the impact of advertising standardization on advertising effectiveness, as well as on two measures of firm performance.Results from a survey of Japanese and U.S. subsidiaries operating in the European Union (EU) provide support for the model. They also suggest that standardized advertising does enhance a firm's financial and strategic performance, provided that the external environment and internal resources of the firm are conducive to standardization.During the last few decades, the topic of standardization of advertising has received considerable attention in the academic literature. As Agrawal (1995) noted, the issue has been formally studied for over 50 years, and it is one of the most researched topics in international advertising. Despite this attention, only a few studies (e.g., Laroche et al. 2001; Samiee et al. 2003) have examined the factors that lead companies to standardize their advertising (Taylor 2002). Harris (1994) pointed out that there has been too much focus on whether firms should standardize and too little focus on how they should go about it.

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“…Marketing standardization is directly related to a uniform image in global markets (Zou & Cavusgil, 2002). When customers buy global products rather than domestic ones, they expect superiority and high value (Inoue, 2013;Laroche, Kirpalani, Pons, & Zhou, 2001). Particularly, customers buying Japanese products may expect relatively high quality and price.…”

Section: Moderating Effect Of the Premium Product Strategy Of Japanesmentioning

confidence: 99%

An empirical study of the relationship between marketing standardization and performance of Japanese firms in international markets: the moderating role of product strategy

Jeong

Kim

Seo³

2018

International Journal of Marketing &Amp; Distribution

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This study examines the relationship between marketing standardization and performance of Japanese firms in international markets. Additionally, it explores the moderating role of product strategy. Particularly, it focuses on Japan's country image in foreign markets and suggests the best strategic fit for Japanese firms to enhance their performance in international markets. The research hypotheses are tested using regression analysis based on survey data from 118 Japanese manufacturing firms. The results show that marketing standardization is an effective strategy to enhance performance, especially when Japanese firms pursue a premium product strategy.

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A Model of Advertising Standardization in Multinational Corporations

Cited by 102 publications

References 29 publications

Market convergence and advertising standardization in the European Union

Market convergence and advertising standardization in the European Union

Advertising Standardization's Positive Impact on the Bottom Line: A Model of When and How Standardization Improves Financial and Strategic Performance

An empirical study of the relationship between marketing standardization and performance of Japanese firms in international markets: the moderating role of product strategy

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