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Abstract
Japanese product strategies are reviewed in terms of their social-ultural 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
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 USA had nearly a $74bn trade deficit with Japan in 1999.(1) Foreign businesses may be missing important information about how to market goods and services successfully in Japan. Specifically, foreign firms need to understand better what product strategies work in Japan. The evidence suggests that companies which understand Japan's social-cultural underpinnings are more successful at selling their products. Coca-Cola has taken this approach and has learned that market growth is possible even when economic growth is stagnant.2,3
This paper provides some descriptions of how Japan's social-cultural underpinnings affect product marketing strategies in Japan. As can be seen, a number of deep-rooted social-cultural values held by the Japanese affect strategy development. In particular, product and promotional decisions need to incorporate these social-cultural underpinnings to compete in the Japanese market-place.
PRODUCT CONCERNS
The Japanese view products holistically - they see the total product as consisting of both tangible and intangible components. Kansei...