Who Standardizes Advertising More Frequently, and Why Do They Do So? A Comparison of U.S. and Japanese Subsidiaries' Advertising Practices in the European Union

Abstract

This study reports the results of a survey of executives of subsidiaries of Japanese and U.S. firms operating in the European Union (EU). The fundamental issues addressed are the degree to which firms perceive EU national markets as similar, the degree to which firms use standardized advertising across the EU, and firms' reasons for standardizing advertising. Global marketing strategy theory contends that firms are more likely to follow a strategy if the environment is conducive to that strategy, suggesting that greater convergence of EU markets would lead to greater standardization of advertising. The findings of this study indicate that both Japanese and U.S. managers still note obstacles to the standardization of advertising in the EU. Consistent with global marketing strategy theory, overall levels of standardization of advertising are somewhat moderate. Firms in the United States are slightly more likely than Japanese firms to use a standardized advertising strategy in the EU. In addition, U.S. firms tend to put greater emphasis on the creation of a uniform brand image, whereas managers from both countries value cost savings. Japanese firms value the higher level of central control that can emanate from standardization.