The following are the factors that favour product adaptation/differentiation:

• Maximisation of profits is usually the primary motivation for going to the expense of modifying a product and is in direct contrast to the policy of cost reduction through standardisation.
  
• Differing consumer tastes affect food, fashion, and household products, in particular. However, they also have a strong influence on the design and manufacture of items such as motor cars. For example, the French normally show a strong preference for 4-door models whereas the Germans prefer 2-door models.
  
• Inadequate consumer purchasing power may necessitate a low price and a corresponding reduction in the quality (e.g. finish or grade) of a product. Packaging, in particular, would be affected in such a case.
  
• Variations in national conditions, such as different approaches to wearing and washing clothes may necessitate different kinds of washing machines, or soaps and detergents. In some European countries, boiling water is used for washing and, consequently, washing machines must have special built-in heaters. In developing countries, on the other hand, washing is done in streams or rivers and bar soap is much preferred to packaged soap powders which are ineffective if the water used for washing is not confined to a washing machine or other container
  
• Where the level of technical ability is generally low, a product may have to be simplified or provided with good back-up. Poor maintenance standards in developing countries may give rise to the need for improvements to product reliability or the simplification of the product.
  
• Tariff levels may dictate local manufacture or assembly, or local purchase of components, thus preventing standardisation.
  
• Government taxation policy may necessitate changes to the product in order to reduce the amount of tax payable, e.g. car tax related to engine size.
  
• Due to varying road and traffic conditions, cars, trucks and tyres may need to be modified depending on whether they are destined for industrialised or developing countries.
  
• Sometimes climatic conditions dictate that modifications be made to products that are sensitive to temperature or humidity, e.g. the composition of car tyres will vary from one market to another depending on the extremes of climate. Similarly, the inclusion of heaters or air conditioners in certain car models will depend on the climatic conditions of the markets concerned.
  
• When a product is perceived as new in a particular market, it may have to be adapted in order that consumer resistance and slow market growth may be overcome.
  
• Local labour costs may influence the extent of automation in the production process.

Our sister sites: