An Analytical Review of Standardization of International Advertising
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Transcript of An Analytical Review of Standardization of International Advertising
IRJMSH Volume 5 Issue 5 [Year 2014] online ISSN 2277 – 9809
International Research Journal of Management Sociology & Humanity ( IRJMSH ) Page 74
www.irjmsh.com
An Analytical Review of Standardization of International Advertising
Dr. Sudhanshu Singh,
Head- Department of Business Administration,
United College of Engineering and Management, Allahabad
Email id: [email protected]
Amit Kumar Pandey,
Ph. D. Research Scholar (Management),
Teerthanker Mahaveer University, Moradabad
Email id: [email protected]
Abstract:
The present content analysis of the literature on cross-national advertising tries to make sense of
what seems a priori isolated, and therefore non conclusive findings by bringing them together in an
analytic review of 210 research papers from the early 1960s to 2006. Our findings show that the
cross-national advertising literature leans toward adaptation over the whole period, however with
increasing standardization over time. Taboos, customs, and social mores still require local
adaptation. Advertising execution should be customized while there is no clear recommendation for
ad strategy. In fact, ad standardization is shown to be contingent on product category.
Keywords: advertising, content analysis, cross-cultural
Introduction
The debate about the way in which cross-national meaning transfer can be realized most
effectively has been going on for at least 45 years (Elinder, 1961) - if not longer (e.g. Brown, 1923).
It is embedded in the more general issue of standardization of marketing programmes and processes
(i.e. Levitt, 1983; Jain, 1989; Solberg, 2002; Theodosiou and Leonidou, 2003). More than 200
research articles dealing with cross-national advertising have been published over 40 years. Three
schools of thought regarding cross-national advertising can be distinguished: standardization,
adaptation, and compromise. Proponents of the standardization approach argue that because of a
converging international environment, standardized advertising can provide the desired meaning to
people of different cultures. According to the adaptation school, cultural, linguistic, religious, and
IRJMSH Volume 5 Issue 5 [Year 2014] online ISSN 2277 – 9809
International Research Journal of Management Sociology & Humanity ( IRJMSH ) Page 75
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legal barriers subsist and make customized advertising inevitable for being successful in local
markets. Between these two opposing views, proponents of a compromise approach caution against
too far-reaching standardization while advocating for some advertising uniformity. This paper is
inspired by the compromise perspective. Its project is to make sense of the wide body of research on
cross-national advertising to investigate key aspects of the advertising adaptation/standardization
decision. This research uses content analysis to assess the influence of different variables on the
degree of standardization of cross-cultural advertising. The first section of the paper presents the
review of literature and hypotheses development. The second section deals with the methodology
(database, categories, coding, and reliability). The third section presents data analysis and empirical
findings. The last section briefly discusses the findings and concludes.
Literature review and hypotheses development:
Adaptation as a general tendency of the cross-national advertising
literature
The feasibility of ad standardization depends on variables related to the economic,
technological, legal, social, and cultural environment. Within a homogeneous environment,
advertising standardization is recommendable. If, on the contrary, environmental variables across
markets are heterogeneous, customized advertising should be favoured. Reviews of cross-national
advertising studies, either regional (e.g. Ha, 1997; Snyder, 1991) or global (e.g. Onkvisit and Shaw,
1987; Harvey, 1993; Han and Shavitt, 1994), generally conclude in favour of adaptation.
Standardized advertising is hindered if the use of certain media or executional elements is restricted,
for instance in countries such as Malaysia which prohibits the use of foreign models in advertising
(Wee et al., 1995). In a similar way, a heterogeneous economic environment across countries makes
advertising standardization more difficult. Advertising execution has to take into account the
education, literacy, and income levels of target groups. For instance, while advertising messages in
Sweden mostly try to inform the audience, the main purpose of Canadian advertising is to remind,
while in Turkey advertising typically strives to persuade the target (Kaynak and Ghauri, 1986). The
competitive environment as well as the actual life cycle stage of a product are further factors in
favor of adaptation. The cultural environment is seen as the highest barrier against standardized
advertising. Differing needs, traditions, consumption habits, religion etc. make the use of an
identical advertising approach across markets difficult (De Mooij, 2000). Therefore, we expect that:
H1: On average, the cross-national advertising literature leans towards adaptation rather
IRJMSH Volume 5 Issue 5 [Year 2014] online ISSN 2277 – 9809
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than standardization of advertising worldwide.
Change over time
Many studies point to the persistent need of ad adaptation (e.g. Tansey et al., 1990). For
instance, an analysis of U.S. companies operating in Europe showed that, between 1963 and 1983,
advertising was more resistant to standardization than product or brand policies (Boddewyn et al.,
1986). Similarly, a trend toward advertising based on more national cues could be observed in
Europe (Snyder et al., 1991). However, there are many arguments in favour of a trend towards
advertising standardization, especially due to strong globalization over the last 20 years. A number
of developing countries have been accessing the status of advertising intensive countries. China is a
case in point for a dramatic change in the place of advertising in the overall business and consumer
scene (see for instance the striking contrast between Ho and Sin (1986), Swanson (1996) and Zhou
et al. 2002). Agencies have similar practices worldwide and tend to adopt organizational structures
that fit with their multinational clients (De Mooij, 2003). Authors coming from the corporate world,
either advertisers or agencies, have consistently argued in favour of ad standardization (Peebles,
1988) and the possibility of putting up a global message with localized communication
(McCullough, 1996). Furthermore, rapidly changing communication technologies (Internet ads,
satellite TV) influence global advertising: media overlaps push companies to more standardized
advertising approach. Therefore we expect that:
H2: Advertising standardization is increasing over time due the globalization trend.
Adaptation to local contexts still needed
Mores and religion act as filters of advertising messages, transforming factual information
into culturally interpreted meaning. A lot of evidence in this area is anecdotal, However,
quite convergent (e.g. Luqmani et al., 1988; Deng et al., 1994; Al-Mossawi and Michell, 1992;
Ford et al., 1997). Therefore, we expect:
H3: Culture and local customs are positively related to adaptation recommendation
Advertising strategy versus advertising execution
Advertising content consists of two major elements: strategy and execution. Although there
is obviously some overlap between both categories, advertising strategy comprises 'what is said' and
execution concerns more 'how it is said'. Van Raaij (1997) adopts the view that the globalization of
marketing communications is less pervasive than it seems at first sight; therefore the necessary
degree of adaptation should increase over a continuum of four levels: mission (long term, identity
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and vision of the communicator), proposition (campaign themes), creative concepts (how themes
are translated in the language and cultures of the target groups) and execution. While mission and
proposition can rather easily be globalized, execution will need much local tailoring. We expect
therefore that:
H4: Advertising strategy is more standardization prone than ad execution.
Influence of product category on the degree of standardization of international advertising
Product type may have an influence on advertising standardization. Products satisfying
fairly universal needs whose ad messages mostly carry rather context-free information cues are
easier to standardize. Ads for certain product categories may be easier to standardize because they
correspond to global (airlines, tobacco, banks, …) rather than multi domestic industries (food, motor
insurance, …). About two thirds of the studies we reviewed do not take into account product
category, although it might be an essential covariate of ad standardization. Most studies that
conclude to an absence of product effect on ad standardization use highly aggregated product
categories, opposing for instance durables to non-durables or personal to non-personal products.
The key to the understanding of product influence may lie in the interaction between product effects
and cultural effects. Both products and advertising are embedded in a cultural context. Products
advertised, ad appeals, benefits, and existential themes reflect a particular cultural context (Tse et
al., 1989). Overall advertising differences across countries tend to become weaker when product
influence is not considered (Pasadeos and Chi, 1992; Cheng and Schweitzer, 1996). Product
influence appears as a weak covariate when cross-cultural differences are large. Conversely, when
culturally similar countries are compared, product influence may be strong enough to override
cultural influence (e.g. Gregory and Munch, 1997; Han and Shavitt, 1994). Therefore, we expect:
H5: The level of advertising standardization is contingent on product category
Methodology
Specifically, we study relationships between variables by means of regression analyses on the basis
of coincidence (events being simultaneous) with the basic inference that they are connected. For
instance, if research articles that study the presence of elderly people in ads across countries
conclude in favour of ad adaptation, we infer that older audiences need more localized ads that
those featuring young people. It is important to note that we do not claim for causation. A meta-
analysis could not be performed because this literature does not have a set of identical variables
consistently operationalized across research studies. A content-analytic approach was therefore
IRJMSH Volume 5 Issue 5 [Year 2014] online ISSN 2277 – 9809
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chosen to construct indicators of the overall degree of adaptation/standardization which were used
as dependent variables in the analyses.
Constitution of the data base / Selection of studies
A multistage process was used to obtain an inclusive article base about cross-national/cross-
cultural advertising. An extensive literature review was first undertaken, based on 26 leading
marketing and international business journals where relevant research studies were searched from
the early 1960s to 2006. Proceedings of several peer-reviewed conferences on cross-cultural
consumer behavior, international marketing, as well as advertising research were used to
complement the review and reach a near-to-exhaustive list. When the same study was both
conference and journal published, only the journal publication was retained. Additional studies were
obtained by systematically reviewing relevant references in the reference lists of the studies
previously found. Searches on several bibliographic databases (e.g. ABI/Inform, LEXIS/NEXIS,
EBSCO) and personal queries from scholars in the field complemented the process.
Studies dealing with the degree of cross-cultural advertising standardization and/or
analyzing variables influencing this process were included in the database. Although most studies
are quantitative in nature, this was not a condition for their inclusion in the data base. Several
qualitative studies (e.g. Deng et al., 1994; Di Benedetto et al., 1992) were also retained. Conversely,
purely normative, conceptual (e.g. Harvey, 1993; Levitt, 1983), or primarily anecdotal contributions
(e.g. Colvin et al., 1980; Kashani, 1989) were not integrated into the database. A total number of
210 studies about cross-national advertising were retained, reviewed, and coded.
Description of the cross-national advertising research database
The coding process first deals with a description of the cross-national research studies: full
reference, family names of the authors, publication year, journal, countries surveyed, number of
authors, authors countries, nature of samples (TV, print, other media, advertisers, agencies,
viewers), and size of samples. Contributions were written by 2 authors on average (94.8 % percent
of all articles were written by 3 or less). Most authors had positions in U.S. universities (59.7 %). 4
countries on average were analyzed. Overall, 60 different countries were surveyed in at least one
article. Seven countries (i.e. United States, United Kingdom, Japan, France, Germany, China, and
Taiwan) accounted for 52 % of the country samples. Most research studies were based on content
analysis of ads (magazine ads: 29.9 %, television ads: 20.5 %). Subject samples were used in 24.6
% of the articles for experimental designs. The remainder was based on surveys of advertisers (12.1
IRJMSH Volume 5 Issue 5 [Year 2014] online ISSN 2277 – 9809
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%), advertising agencies (6.3 %), reviews of research articles (4.5 %) and miscellaneous (2.1 %).
The average sample size is 617.
Coding procedure and assessment of intercoder / intracoder reliability
Coding of research studies was performed independently by two coders at least and three
coders for the first half of the articles reviewed (this for team learning purposes). At least one of the
authors of this study was involved in coding each article. Disagreements among coders were
resolved among each team of coders after discussion and on the basis of a majority decision with a
third coder in case of persistent disagreement. Intercoder reliability was assessed by using a per-
item-agreement method (Kassarjian (1977). In each case, the percentage of final agreement for all
descriptive categories cited above was between 95 and 100 %. Intercoder reliability (IR) for
dependent and independent variables is reported below Intracoder reliability was calculated for each
coder on a sub-sample of twenty articles within a one-month interval. Average internal consistency
levels were above .9.
Dependent variables
Two dependent variables were created. The first indicator was created to test hypotheses one
to three. The main rationale behind this first indicator is that the standardization debate has shifted
from an either/or question to a contingency approach, carefully considering available marketing
options within specific contexts. Hence, research articles present nuanced recommendations, in
between adaptation and standardization. In order to keep track of subtle differences in degree, we
created a variable based on the ‘findings’, ‘discussion’, and ‘conclusion’ sections. The degree of
standardization recommended by a particular article was rated on a five-point scale ranging from +2
("strong standardization") to –2 ("strong adaptation"). The ‘standardization score’ is based on
averaging the different scores given by coders for the same article.
To test hypothesis 4, a second dependent variable was created. For each research article, the
number of confirmed / disconfirmed hypotheses stating cross-cultural advertising divergence (i.e.
Country or Culture A ads are different from Country or Culture B ads) was counted (IR = .85). The
main objective of cross-cultural studies being to investigate differences or similarities between
countries, the number of confirmed divergence hypotheses is an appropriate proxy for the necessity
of adapting ads across countries/cultures.
Independent variables
Eight independent variables were coded as either studied (1) or not (0). They were labelled:
IRJMSH Volume 5 Issue 5 [Year 2014] online ISSN 2277 – 9809
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‘Temporal Evolution’ (IR = .97): A diachronic research design with at least two years between data
collections; ‘Hofstede’ (IR = .96): At least two, generally four, Hofstede's cultural dimensions (i.e.
Power Distance, Individualism-Collectivism, Uncertainty Avoidance, Masculinity-Femininity) are
explicitly considered as likely explanations for cross-national differences; ‘Taboos’(IR = .95): The
influence of social mores, religion, and/or taboos on local ads are taken into account; ‘Execution
Style’ (IR = .83): That is, authors studied the kind of execution styles used in ads; ‘Media’ (IR =
.88): When cross-national differences were assessed across different media samples (e.g. print,
television, and or radio ads); ‘Visual/Textual’ (IR = .92): When visual or textual elements of ads
were considered; ‘Appeals’ (IR = .89): cross-national differences in ad appeals were systematically
studied by the authors; ‘Creative Strategies’ (IR = .85): creative strategies were content-analyzed
following categories by e.g. Frazer (1983), Laskey et al. (1989), or Muller (1987). Product influence
on advertising standardization was coded "significant product influence" when acknowledged by
authors and "no significant product influence" when no such influence was found (IR = .81).
Findings
Multiple regression was performed to test hypotheses H1 to H3 with the ‘standardization
score’ as the dependent variable (see Table 1). The overall equation was significant, indicating that
the model with the independent variables (temporal evolution, Hofstede, taboos) performed better
than the null model (F=5.876; p < .01). All three variables as well as the constant term were
significant at the .05 level.
The constant term (intercept) has a significant, negative beta value (β= -.424, p < .01),
showing that the findings of the research articles favour adaptation over standardization. The scale
being defined over the range [–2 (adaptation); +2 (standardization)], the literature on cross-national
advertising leans toward adaptation, confirming H1. ‘Temporal evolution’ has a positive impact on
the ‘standardization score’ (β = .141; p < .05). As argued by H2, research articles investigating
cross-national advertising over time recommend standardization more than adaptation.
The ‘Hofstede’ variable is negatively related to the standardization score (β= -.168; p < .05),
indicating that research articles based on Hofstede's cultural dimensions conclude in favour of ad
adaptation. A similar pattern appears for ‘social mores or taboos’ which is negatively related to the
standardization of international advertising (‘Taboos’: β = -.177; p < .01). Culture and local
customs favor adaptation over standardization in international advertising as stated by H3.
Hypothesis 4 states that advertising strategy is easier to standardize across countries than ad
execution. Two independent variables represent advertising strategy (‘Creative strategies’ and
IRJMSH Volume 5 Issue 5 [Year 2014] online ISSN 2277 – 9809
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‘Advertising appeals’). Three independent variables represent advertising execution (‘Execution
style’, ‘Visual/Textual’, ‘Media’). A regression was performed (see Table 2) with the number of
confirmed divergence hypotheses as dependent variable The overall equation is significant (F =
6.044; p < .01). Two of the three advertising execution variables are significant at the .01 level
(execution style: β = .361; p < .01; visual/textual: β = .315; p < .01). The last variable (media) is
near to significance at the .05 level (β = .206; p = .053). Coefficients of ad execution variables are
positive, indicating that articles comparing cross-national ad execution favour adaptation.
Regression coefficients for advertising strategy variables are not significant (appeals: β = .098; p =
.159; creative strategies: β = -.154; p = .345). This provides partial support for H4. When there are
significant differences across contexts, advertising execution should be adapted while it is unclear
whether advertising strategy should be adapted or standardized.
A binomial test was used for validating H5. Frequencies are compared for the two categories
(influence of product category on advertising standardization vs. no influence). 86% of the articles
(67 out of 78 studying product category influences) conclude in favour of an influence of product
category on ad standardization; a proportion significantly different from a 50/50 split (χ2
= 40.21,
p< .000). H5 is confirmed: ad standardization is contingent on product category.
Discussion and conclusion
Recent criticism of content analysis in cross-cultural advertising research questions whether
comparative analyses of advertisements across countries lead to insightful or superficial findings
(Lerman and Callow, 2004). The present content analysis of the literature on cross-national
advertising tries to make sense of what seems a priori isolated, and therefore non conclusive
findings by bringing them together in an analytic review, a true meta-analysis being impossible
given the dispersed nature of the data. Our findings suggest that the debate over ad standardization
should be considered from a pragmatic rather than a dogmatic perspective, taking into account the
product category and its degree of cultural embeddedness. Increasing standardization is inevitable
as markets globalize and advertisers as well as agencies become themselves global players.
However, consumers are still local with different cultures, languages, and religious norms. While it
seems possible to standardize advertising strategy, execution will still require much customization.
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Table 1: test of hypotheses H1 to H3
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .281(a) .079 .065 .88568
Unstandardized
Coefficients
Standardized
Coefficients t Sig.
B Std. Error Beta
(Constant) -.424 .074 -5.755 .000
Taboos -.699 .265 -.177 -2.635 .009
Hofstede -.428 .173 -.168 -2.470 .014
Temporal evolution .399 .191 .141 2.081 .039
a Dependent Variable: Standardization Score
Table 2: test of hypothesis H4
R R Square Adjusted R Square Std. Error of the Estimate
.538(a) .290 .242 3.14571
a Predictors: (Constant), Creative strategies, Appeals, Visual/Textual, Execution Style, Media
Unstandardized
Coefficients
Standardized
Coefficients t Sig.
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B Std. Error Beta
(Constant) 1.468 .517 2.839 .006
Execution Style 3.537 1.023 .361 3.457 .001
Visual/Textual 3.087 1.004 .315 3.074 .003
Media 1.774 .902 .206 1.966 .053
Creative strategies -1.306 .917 -.154 -1.423 .159
Appeals .792 .834 .098 .949 .345
a Dependent Variable: Divergence Hypotheses confirmed