Japanese Car Perceptions of Japanese

Japanese Car

Perceptions of Japanese Cars

Considering Chapter 5's discussion of consumer ethnocentrism, do you believe that it is a positive or a negative for companies like Toyota and Honda that most of America views them as foreign brands of automobiles?

Ethnocentrism can be the foundation of an effective differentiation strategy when combined with quality or attributes of a home nation, such as Japan's reputation for exceptional accuracy and precision. Ethnocentric frames of references are often used as a means to streamline or simplify complex decisions by compartmentalizing companies, and most often people, into specific categories for ease of perception (Genestre, Herbig, Shao, 1995). Left unchecked ethnocentrism not managed within a marketing and product strategy context will create an ambivalent, difficult-to-understand brand message (Halfhill, 1980).

Toyota and Honda have made ethnocentrism work to their advantage however. They have done this by making their production strategies a core part of the messaging to the U.S. market. In reality both companies opened manufacturing plants in this country in anticipation of potential trade tariffs and increased government intervention. It was a decision that was driven by the need to continually have a production center in their largest and most lucrative markets. Yet, both Toyota and Honda have created a highly effective marketing campaigns to successfully position their "foreign brand" image as being more American than some of the traditional American auto manufacturers who produce vehicles offshore and import them into the country.

By making their marketing messages more about respect for the U.S. market and the commitment they have to serve customers while generating high-paying American jobs, Toyota and Honda have created an exceptional competitive advantage. Marketers can use ethnocentrism to their advantage, showing that they are listening to customers in foreign markets and striving to deliver valuable products aligned to their specific, highly unique needs (Halfhill, 1980).

In devising this strategy, Japanese auto manufacturers completed intensive analysis of not just the American consumer, but of the distribution channel and supply chain necessary to successfully manufacture in the U.S. market. Instead of purchasing millions of dollars in research, Japanese manufacturers will often send their engineering and development teams to a foreign nation to study not just market conditions, but also the nuances of a given customer base as well (Aldridge, 1990). This will allow for greater insights into unmet needs, including the need to see the foreign manufacturers as being a contributor, not detractor, to national welfare. Toyota and Honda did this exceptionally well, as does Panasonic and Samsung with Google Android smartphones today.

2. Do you feel that there is really any difference, in a consumer's mind, between a Toyota Camry manufactured in the United States and an identical Camry that was manufactured in Japan but sold in the United States?