Mind the standardization gap: an emerging market phenomenon

Abstract

This paper introduces the "standardization gap" as perceptual differences between consumers and managers regarding a global brand's standardization of its marketing mix. Studies utilizing triadic data from managers, consumers, and advertisements document that emerging market consumers perceive global brands as less standardized than they are. A perceived "standardization gap" exists in product characteristics and positioning. Positioning standardization gaps decrease consumers' brand equity, willingness to pay, and the brand's market share in the subsidiary market. Interestingly, consumers' product standardization perceptions trigger two opposing mechanisms, a positive mechanism via better tailoring to local needs and a negative mechanism through inferences of lower quality and inferior products. These opposing mechanisms cancel each other out in affecting consumer brand equity. Managers can enhance positioning standardization perceptions by standardizing advertising in emerging markets. However, standardized advertising is less effective in shaping product standardization perceptions.