ProductsandServicesforConsumersChapter12GlobalPerspectiveDisney’sexperiencesinternationallyTokyoDisneyEuroDisneyHongKongDisney(2006)QualityQualityDefined:Definedin2ways:•1.“Market-perceived”quality–Howdoesthemarket(consumer)perceivethequalityoftheproductorservice•2.“Performance”quality–Whatistheoverall“performance”oftheproductorservice(firm’sperspective)–Tendstobefocusedonattributesorfeaturesormeetingcertain“performance”criteriaQualityPhysicalorMandatoryRequirementsandAdaptationManycountriesrequire“homologation”•RequireschangestobemadetoproductsbasedonlocalproductandservicestandardsMandatoryadaptationvs.culturaladaptation•Manybelieveadaptationoccursmostoftenbaseduponlocallaws,orpoliciesthatareeconomic,politicalorenvironmentalGreenMarketingandProductDevelopmentQualityofProductsHowcultureplaysanimportantroleinidentifyingqualityAproductismorethanaphysicalitem;itcanbecharacterizedas:•“abundleofsatisfaction(orutilities)thatthebuyerreceives”–Manytimesthisrequiresadaptingnamesofproducts,appealofproducts,etc…InnovativeProductsandAdaptationProductDiffusion1.Defined:•“processbywhichinnovationspreads”2.“Crucialelements”ofdiffusionofnewideasare(EverettRogers):•1)aninnovation;2)whichiscommunicatedthrucertainchannels3)overtime4)amongmembersofasocialsystemQualityofProductsDiffusionofproducts3.Importantvariablethataffecttherateofdiffusion:•A.Thedegreeofperceivednewness•B.Theperceivedattributesofinnovation•C.ThemethodsusedtocommunicatetheideaQualityofProductsDiffusionofproducts4.The5characteristicsthataffectthe“rateofacceptance”•1.RelativeAdvantage(marginalvalueofnewvs.old)•2.Compatibility(tovalues,norms)•3.Complexity(morecomplex,moretime)•4.Trialability(riskassociatedwithproductuse)•5.Observability(howeasilybenefitsarecommunicated)CrossingBorders12.3pg.352–“SothisisWhatisCalledanInnovation-ButdoesitFlush?QualityofProductsAnalyzingProductsthru:TheProductComponentModelex.12.1pg.354•1.CoreComponent–Physicalproduct•2.PackagingComponent–Styleofproduct(labeling,trademarks)•3.SupportServicesComponent–Repair,maintenance,instructions,installationMarketingServicesGloballyMarketingServicesGloballyAdaptationforservicesismuchlikeadaptationforproductsServicesareintangiblewheretheyare:•Inseparable•Heterogeneous•PerishableServiceOpportunitiesinGlobalMarketsTopserviceexports:•1.Tourism•2.Transportation•3.Financialservices•4.Education•5.Telecommunications•6.Entertainment•7.Information•8.Healthcare–CrossingBorders12.6pg.361“HomecareIsn’tHomeDecorating”MarketingServicesGloballyBarrierstoServicesinenteringGlobalMarkets:1.Protectionism2.Restrictionsontrans-borderdataflows•Transferringpersonaldataonconsumersoverborders(income,spendingpreferences)conflictwithrightstoprivacy.3.Protectionofintellectualproperty4.CulturalBarriersandAdaptation•Foreigncompaniespoliciesor“waysofconductingbusiness”maybeconflictingwithhostcountryvaluesMarketingServicesGloballyBrandingMethods:1.GlobalBrands•Uniformworldwide2.NationalBrands•Countryspecific3.PrivateBrands•Note:Country-of-origineffectcancreatepositiveornegativeimpactonconsumers’perceptions