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Consumer Behavior Differences in Various Regions

Understanding consumer behavior on how brands are perceived is critical to a successful market.
As such, please address the following:

As an employee of a multi-national corporation, you have successfully test marketed a new product in the US. Within the next few months you will test market the product in the South American market as well as in Japan.

1. What changes will you have to make to your marketing plan for South America?

2. What about Japan?

3. What are some cultural differences you need to consider for your test market to be successful in these foreign markets?

Please cite all references used.

Solution Preview

1. What changes will you have to make to your marketing plan for South America?
South America is a dynamic region with emerging economies and rising personal incomes that create a business environment that offers many growth opportunities. However, South America has 13 separate markets, each with its own unique regulatory currency and logistical complexity. With logistical issues and political instability, unforeseeable risks can create volatility in product demand. Another factor is the cultural differences that can complicate operation for business. For one thing, South American customers demand more services, shorter lead times, warranty and defective guarantees, credit, delivery and maintenance. For many businesses, South America presents many risks and challenges. Approval requirements and processes for businesses vary greatly from country to country in South America. While some countries like Bolivia have no formal approval regime, others like Argentina, Brazil, and Chile have much more formalized approval regimes, including different national standards and requirements for in country testing for almost all product types. Several initiatives have been developed to harmonize approval processes in South America. Although progress has been made, there remains a lot of work to be done before the goal of mutual recognition of test reports can be achieved to provide manufacturers with a one-stop approval route to the market of South America.

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Solution Summary

The solution assists in understanding consumer behavior differences in various regions.