Factors Influencing the Product Customization Decision Process of Foreign Industrial Product Manufacturers

Abstract

This study explores the product adaptation decision process of “successful” foreign industrial product manufacturers with operations in the United States. A “successful” foreign firm is operationally defined as one utilizing at least 75 percent of its U.S. production capacity. Such firms are accorded the status of “experts” and an attempt is made to study their decision making process regarding the introduction of locally designed products in the U.S. An induced rule based expert system outlines the sequential roles played by the nationality of parent firm, level of decentralization in marketing decision making, mode of entry into the U.S., length of time with manufacturing operations in the U.S., size of the U.S. subsidiary, and extent of R & D undertaken in the U.S. by the subsidiary. Such a formal system would serve senior management of the developing organization as a permanent and ever expanding repository of expertise and as an effective management training tool. The study also illustrates the use and relevance of expert system technology in an international marketing application.

Key Words:

• Product adaptation
• expert system
• European and Japanese multinationals