Internationalization and marketing: factors of influence in decision on products customization

Author(s)

Ailton Conde Jussani

• Document type: Doctoral Thesis
• Press: São Paulo.
• Institution: Universidade de São Paulo (USP). Faculdade de Economia, Administração e Contabilidade (FEA/SBD)
• Defense date: 2014-02-11

Examining board members

Eduardo Pinheiro Gondim de Vasconcellos; Celso Claudio de Hildebrand e Grisi; Miriam Christi Midori Oishi Nemoto; James Terence Coulter Wright; Silvia Novaes Zilber

• Advisor: Eduardo Pinheiro Gondim de Vasconcellos

Abstract

Innovation in products and processes can be the difference between success and failure to sell products in other countries. Within this perspective, technology management is highlighted as an alternative, less expensive and faster, to customize products for new markets. The study on the decision to customize products in international markets is especially important for organizations that decide to open a subsidiary in another country by way of purchasing a business or building their own facilities. Whatever the decision, the company is exposed to international risks and high costs; which leads to reduce them on global basis. In this context, a company needs to decide which products to customize for the country in question and which products to standardize for sale other countries. The overall objective of this research is to identify, with respect to the marketing activities of an international company, the factors that influence decisions related to the customization of industrial products and of consumer products for a particular country. Thus, a literature review gathered information on the topics of: internationalization, international marketing, decision on product customization and product customization factors - the theoretical basis for the research. Regarding the methodological aspects, in the qualitative first phase, were conducted four exploratory case studies, at two American companies and two European companies. As a result, it was elaborated a ranking of factors considered essentials in deciding on customization of products: 1st Characteristics of the customer (B2B) / consumer (B2C); 2nd Sustainable Return On Investment; 3rd Sustainable income; 4th Legislative requirements; 5th Other products sales in the portfolio; 6th Differences in weather. Subsequently, the quantitative second phase, based on the empirical case studies, a survey was elaborated and applied online. As a result of the online survey, it was obtained 123 valid records of a willful non-probability sampling. The results have suggested differences in the factors of influence in decision on product customization ranking. Other findings have derived from research: factors related to the distribution logistics of tangible products should be considered in deciding customization; tangible products have great load of associated services, both B2B and B2C markets. It is expected from these results, a step forward in contributing to future studies about decision on product customization. (AU)

• FAPESP's process: 10/02129-2 - Internationalization and influencing factors for products customization decision: Industrial products versus consumer goods products.
• Grantee: Ailton Conde Jussani
• Support Opportunities: Scholarships in Brazil - Doctorate