Question

2) Explain two reasons why culture may play a role in a company repositioning its brand when entering a foreign market 3) Explain how and why the two different thinking styles (analytic vs. holistic) can be applied differently to explain country-of-origin effects.

Answer 1

There is no doubt in the fact that culture plays an important role and the companies should reposition the brand before entering the foreign market for many reasons such as:

• Every foreign place has its own religious beliefs, example: McDonalds started selling beef burgers in India but it is unethical and religiously not allowed to eat beef and because of this difference in culture for US and India, McDonald faced a lot of backlash and finally beef burger was stopped in India by McDonalds.
• Also, different nations have different sensitivity towards health so sugar free product might do good in one country and might not sell in another country so based on this difference in cultural beliefs also the company should ensure that customization based on nations are done.

Country of origin effect is nothing but a concept in which the customers start relating the culture followed in the nation in which the product has started and is manufactured din the beginning and they form perceptions about the product.

Analytics thinking means when the thinking levels are on smaller terms and smaller issues which together constitutes the bigger part and it can be related to country of origin effect as similar products can be seen and perceptions regarding it can be formed, the thinking might go in the micro level as well in which the customers start thinking and relating the product with a similar product.

In holistic thinking the complete system is considered and the customers start relating and forming perceptions regarding the product based on the culture that prevails in the original nation of the product.