The key to successful international marketing is adaptation to the environmental differences from one market to another. But in the process of environmental adaptation SRC (The Self-Reference Criterion) and Ethnocentrism act as major obstacles.
The Self-Reference Criterion (SRC): SRC is an unconscious reference to One’s own cultural values, experiences, and knowledge as a basis for decisions.
Example: The two examples are real mistakes made by major companies stemming from their reliance on their SRC in making a decision.
Pet Incorporation is an American company and it has been producing different canned milk for several decades. It had launched a brand named “Pet Milk”. It was an international company. The name has been used for decades in the USA. Yet in France, the word pet means “flatulence” (Accumulation of Gas). It did not create the desired image for canned milk. They had used their SRC in decision making.
Similarly, Esso the brand name of a gasoline was a successful name in the United States and would seem harmless enough for foreign countries. However, in Japan, the name phonetically means “stalled car,” an undesirable image for gasoline. Because the company used SRC when it has taken had taken decision.
When marketers take the time to look beyond their own self-reference criteria, the results are more positive. When they give preferences on SRC the results will not positive.
Dangers of the SRC
– Failing to recognize the need to take action
– Discounting the cultural differences that exist among countries
– Reacting to a situation in an offensive to your hosts
Ethnocentrism: Ethnocentrism is a notion that one’s own culture or company knows best.
Ethnocentrism and the SRC can influence an evaluation of the appropriateness of a domestically designed marketing mix for a foreign market .The most effective way to control the influence of ethnocentrism and the SRC is to recognize their effects on our behavior
