Marketing implications of Japan's social-cultural underpinnings

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DREW MARTIN (PhD) is an assistant professor of marketing at North Dakota State University. He has published articles on issues relating to trade with East Asia. He has published papers in several academic journals including Journal of Global Marketing, Journal of Professional Services Marketing and American Business Review. His research interests include areas of comparative advertising, cross-cultural negotiations, overseas business assistance programmes and international service marketing.

PAUL HERBIG is dean of the School of Business and professor of marketing for Tri-State University in Angola, Indiana. He has a degree from Rose Hulman Institute of Technology, his MBA from the University of Notre Dame, and did his doctoral work at Indiana University. He has written five books on international marketing and over 200 articles on marketing and international business have been either published in peer-reviewed academic journals or presented at academic conferences. Before he joined academia, he worked in product and marketing management for AT&T, Honeywell and Datapoint. His research interests include trade shows, market signalling, cross-cultural negotiations and culture’s impact on innovation.

Abstract Japanese product strategies are reviewed in terms of their social-cultural underpinnings. When making a purchase decision, Japanese consumers take a holistic approach to the product and its presentation. Also, they are concerned how the purchase will affect their individual and group identities. Finally, the Japanese want to feel secure about their purchase and seek to minimise uncertainty if after-sales support is needed. An understanding of the social-cultural underpinnings of these strategies will help foreign firms compete in Japan. Those firms that are able to embrace the highest standards will probably find their products and services to be among the more accepted.

INTRODUCTION

Drew Martin Assistant Professor, College of Business Administration, North Dakota State University, Putnam Hall, P.O. Box 5137, Fargo, North Dakota 58105-5137, USA Tel: 701 231 8351 E-mail: [email protected] Paul Herbig Dean, Department of Business, 202 Shambaugh Hall, Tri-State University, 1 University Avenue, Angola, Indiana 46703-1764, USA Tel: 219 665 4186 E-mail: [email protected]

International trade has expanded to unprecedented levels due in part to transnational organisations, such as the World Trade Organisation, that have improved the climate for global trade. In particular, the increase in trade has had a tremendous impact on Japanese society. Greater affluence has allowed many Japanese to travel abroad and be exposed to a wider array of foreign products. One artefact of increased international exposure is that Japanese

people seem to be more interested than ever before in foreign ideas, products and services. Lower trade barriers and greater exposure to foreign goods have not had the desired effect on the balance of imports and exports between Japan and some of its largest trading partners. For example, the