Analysis of Marketing Standardization Strategies

Abstract

This study uses the experience of sixty-three service international firms, operating in a number of cities in China, to achieve its research objectives. This study has three key features, which are different from the approaches adopted in previous studies. It expands the existing home-host standardization framework from the "country" to the "city" market perspective and focuses on the standardization/adaptation strategy used by service firms. This is a research theme which is still under development. This study has successfully uncovered a significant relationship between marketing standardization strategy and strategic objectives, in the service sector. Based on the findings of its statistical analysis, a "city" market standardization/adaptation-performance framework is proposed. In the framework, the factors affecting service firms' choice of standardization/adaptation strategy and their subsequent influence on performance are identified. The findings from this study offer some new insights into research concerning marketing standardization/ adaptation strategy. Its results have implications for marketing managers, researchers and those who are interested in conducting business in China.

The influence of distributor support and price adaptation on the export performance of small and medium-sized enterprises

“…Theodosiou and Katsikeas, 2001). It is generally acknowledged that the macroenvironment (e.g., economic environment) and the micro-environment (e.g., competition intensity) in the foreign market will have a significant influence on the firms' strategies (Chung and Wang, 2007;Myers and Harvey, 2001). Two environmental market factors, namely competitive intensity and environmental characteristics, have been identified as significant influences on strategic decisions (Cavusgil and Zou, 1994).…”

“…Waheeduzzaman and Dube, 2003), whilst others found it to have a negative influence (e.g. Chung and Wang, 2007;Lages and Montgomery, 2005), and a third group of researchers found price adaptation to be positively related to export performance (e.g. Lee and Griffith, 2004;Shoham, 1996).…”

Market orientation, guanxi, and business performance

“…Besides financial performance, strategic performance has been recognised as an important aspect of a firm's business operations in its industry of operatation (Zou & Cavusgil, 2002). The importance of strategic performance has also been highlighted by the research regarding firms operating in Chinese society (Chung & Wang, 2006). The inclusion of strategic performance is important for research focusing on exploring the functions of guanxi, as one primary benefit of guanxi is to assist firms to create competitive advantages over their key competitors (Yeung & Tung, 1996;Luo & Chen, 1997;Tsang, 1998;Park & Luo, 2001).…”

“…The inclusion of the strategic performance will significantly broaden the research scope (e.g., Park & Luo, 2001;Lee et al, 2001). Due to these reasons, it is essential to include both types of performance measurement in the research with regards to MO, guanxi, and performance (Chung & Wang, 2006). The primary aim of this study is, therefore, to fill these two key gaps.…”

“…Strategic performance denotes a firm's competitive position in relation to its main competitors (e.g., increasing awareness and responding to competitive pressure) (Zou & Cavusgil, 2002;Chung & Wang, 2006). Strategic performance has been classified as an important financial aspect for firms operating in Chinese societies (Chung & Wang, 2006), as this can assist firms in establishing a competitive advantage and achieving their financial objectives.…”