How Country of Origin Image Can Affect International Business Success and Further Internatinal Expansion.

International marketing or business is uniquely different from the local market because the product price, place and promotion is vastly different from what is been offered to local customers (Johansson, 2000) With the emergence of the information technology, cross border marketing has never been a distant dream. However, it has never been easier even for giant multinational companies to face challenges that come in international business. The biggest challenge comes from the culture which varies from country to country.

De Mooij and Hofstede (2002) define culture by eight dimensions. Asian cultures are associated with higher levels of uncertainty avoidance (UA) (see Appendix 1) compared to individualistic cultures, therefore these Asian cultures are more attracted to products with a lower risk (Moss & Vinten, 2001; Samli, 1995; Shannon, 2005). Furthermore, there is a strong belief that Asian consumers have a strong preference for NBs over PLs (Ahuvia & Wong, 1998; Brady et al., 2003; De Mooij & Hofstede, 2002). According to Batra and Sinha (2000) consumers who relate higher prices with higher quality are less attracted by PLs. According to De Mooij and Hofstede (2002) PLs are more frequent in individualistic cultures such as the Netherlands, than collectivist cultures such as in China. They presented two specific reasons for collectivist (Asian) nations to choose NBs over PLs, namely that NBs lead to more status, and the preference for long-term relationships and so for well-known NBs. Therefore, collectivistic cultures are more risk averse and tend to value brand names. They also value the perceived link between price and quality, which negatively affects the image of PLs in such countries. On the other hand, individualistic cultures are supposed

Let us consider China for our example. China is the largest market in Asia and as such, it is an object of great interest for expanding companies. Many companies have already taken advantage of the opportunities afforded by dealing with China and many more will surely

Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place

The marketing strategies of these two countries and their comparison with Western-based consumption marketers include, advertising in these two countries can be made via social media, and pricing can be cheaper because of low incomes in these two countries as compared to the incomes in the US. The products can also be available in stores such as supermarkets because internet connectivity in these two countries is low as compared to internet connectivity in the US where marketers can sell their products via the internet. Producers can also set up production facilities in any of the two countries because of cheap labor offered by both the Chinese as well as the Indian workforce; this will help in reducing their production costs as well as the final prices of their products. (Christoff & Eckersley, 2013)

In some aspects, Luxury goods definition might be different among countries. For example, a Calvin Klein man’s T-shirt just sells about $40 in US, but it will be sold about $90 or even more in China; a Tommy Hilfiger women dress only sells $120 in US, but it will be sold about $260 or even more in China. Therefore, Chinese customer regards Calvin Klein and Tommy Hilfiger as light luxury goods, which is still being expensive but compared with Prada and Louis Vuitton, Calvin Klein and Tommy Hilfiger, is less expensive. However, American customer does not treat Calvin Klein and Tommy Hilfiger to light luxury goods, which is just as normal brand like Abercrombie & Fitch. So we can clearly notice that same brand has different price positioning in different countries. The same situation also happens to skin care product. An Estee Lauder advanced night repair serum just sells $62, about 390 RMB; but it can be sold in 1050RMB, which means this product price in China is three times in US. Price. For this reason, more and more Chinese customer likes buying luxury goods overseas, especially in Hong Kong and Macau or other travel

Cultural difference between countries raises many issues for firms entering foreign markets. Understanding the local culture is the initial step in helping firms better understand the

For the successful business, it is must to be aware of the culture of international country with we are doing business or trading. Cultural difference in business can aid in building international competencies as well as enabling to get a competitive benefit. It is difficult to be aware of every aspect of the other country’s organisational culture.

Company has to make the marketing strategies for making the product success in the market. And those general strategies would be effecting in different context throughout the company. To enter into the global market company has to use different signs, symbols, shape, slogans, by which is easily understandable to that country because if the product is not easily memorable to customers then they will easily move to the substitute product and then the product will have a chance for failure in that market. So before entering into the global market company has to research all the taste and preference of that country because to enter in to the new market it wants a very huge expense.

Living or doing a business in different country does not only mean knowing their food, music or clothing, but mainly to understand their beliefs and values, as these are usually hidden deeply beneath the surface, even though we may find some habits or beliefs in the different country 's culture to be same or very similar to ours.

The above answers indicated that consumers enhanced the importance of brand and design instead of the manufactured country. Interviewee M9 supports this by sharing “I had only used label to judge product’s country previously, but now, I will use other information to help me.”

Effects of Individual and Product-specific Variables on Utilising Country of Origin as a Product Quality Cue

Sometimes product localization is not enough to break into the foreign markets because their cultural differences or ethical values are so marked that the regular product would not be acceptable. A company needs to be prepared to introduce new and radical products that cater and adjust to the local culture. Conducting market research analysis before embarking in business in a new area is one way to know and understand the needs of the potential customers. A successful international business must respect the cultural, religious, and other beliefs of other countries when deciding on new product lines.

For the international business, the connection between culture and competitive advantage is important for two reasons. First, the connection suggests which countries are likely to produce the most viable competitors. Second, the connection between culture and competitive advantage has important implications for the choice of countries in which to locate production facilities and do business.

The nationally based business will start with cautious testing of new markets, often selected with a similar culture, having a focus that is culturally and managerially ‘ethnocentric ' or centered around the home market. A multinational business will have a ‘polycentric ' orientation, i.e. a focus based on the understanding and appreciation of different operating contexts. (Cohen 195)