Marketing internationalization: influence factors on product customization decision

Abstract

Purpose: Studies about product customization decision are especially relevant for organizations that decide opening a subsidiary overseas. This scenario requires the company to decide which products should be customized and which products should be standardized when selling products in international markets. The main purpose of this paper is to identify which factors influence the decisions on the customization of industrial products and consumer products to a particular country in the marketing function of a global company. Design/methodology/approach: To do so, a literature review was conducted addressing the following topics: internationalization, international marketing and product customization factors. With regard to methodological aspects, an initial qualitative phase was conducted with four exploratory case studies. In the quantitative phase, an online survey was developed, obtaining 123 records of an intentional non-probabilistic sample. Findings: As a result, six factors were deemed essential to the product customization decision: customers’ characteristics, sustainable return on investment, sustainable profit, legal requirements, sales of other products in the portfolio and weather differences. Originality/value: The authors expect that the results of this research contribute academically for the management knowledge about the meanings that product customization can assume in internationalized companies, and, additionally, in a business way, the authors expect that they help companies make strategic decisions on the appropriate measure to take regarding product customization in international markets, whether industrial products or consumer products. With these findings, the authors expect to make a valid contribution about product customization decision and suggesting future studies from other perspectives.