Explain the self-reference criterion. Find examples of product failures that might have been avoided through the application of the SRC.
The Correct Answer and Explanation is:
Correct Answer:
The Self-Reference Criterion (SRC) is the unconscious reference to one’s own cultural values, experiences, and knowledge when making decisions in a different cultural context. It often leads to misinterpretations and poor decisions in international marketing and business because managers fail to recognize cultural differences. Applying the SRC can help avoid product failures by encouraging businesses to understand and adapt to the cultural norms of the target market rather than relying solely on their own.
Explanation:
The Self-Reference Criterion (SRC) is a key concept in international marketing that refers to the tendency of individuals to use their own cultural norms and experiences as a baseline to evaluate and make decisions in foreign markets. This subconscious bias can lead to misunderstandings, ineffective marketing strategies, and ultimately, product failure. Companies that fail to recognize cultural differences often misinterpret consumer behavior, preferences, and communication styles.
A classic example of SRC leading to product failure is the launch of the Chevrolet Nova in Latin America. In Spanish, “No va” translates to “it doesn’t go,” an unfortunate implication for a car. Chevrolet assumed the product name would carry the same neutral meaning across cultures, neglecting linguistic and cultural sensitivity. Sales suffered until the car was rebranded.
Another example is the case of Procter & Gamble in Japan. P&G used a Western-style commercial showing a man entering the bathroom while his wife was bathing—a romantic gesture in Western culture but considered inappropriate in conservative Japanese culture. This marketing approach offended Japanese consumers and hurt brand image.
Had these companies applied the SRC correctly, they would have recognized their assumptions as culturally biased and sought local insights through research or collaboration. By doing so, they could have adjusted product names, advertising styles, and branding to suit the local culture.
Avoiding the SRC requires cultural empathy, local market research, and sometimes the hiring of culturally aware local staff. Multinational companies must strive to “think globally, act locally” to ensure their products and campaigns resonate with the target audience and avoid costly missteps.
