1. Can we relate the case to consumer ethnocentrism? explain why 2. What can be done to change the attitudes of Japanese consumers in milk preferences. 3. How do you evaluate the practices of Japanese state policies to preserve the cultural characteristics of the Japanese?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.3: Simple Regression Models
Problem 9P
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Competition, Culture and Consumer Preference
Japan's cultural characteristics and government policies are the reasons why the efficiency of the Japanese food production industry is only 32% of the efficiency of food production in the United States. Cultural traits are evident in the Japanese keenness to consume the freshest food possible. In Japan, a milk package has three dates on it: the manufacture date, the date it reaches the supermarket, and the expiration date. Milk production in Japan starts one minute past midnight, so milk that arrives at the market in the morning can be labeled as today's milk. If the milk is bottled at 11:59 p.m., no Japanese consumer will buy it, because it is considered the previous day's milk. Result; As a result, a milk producer in northern Japan cannot compete with a producer in southern Japan because delays in shipping add another day to the date on the package, meaning that milk cannot be sold.
These local monopolies arising from Japanese cultural preferences are also supported by the Japanese state and prevent the competition of foreign producers by restricting artificial food imports, such as keeping them in quarantine for 10 days. Consider the reaction of the Japanese consumer, who is skeptical of even a day's milk, to a month's worth of quarantined food brought from overseas. Therefore, Japanese food producers are not competitive with each other or with foreign importers, do not try to save scale, and do not learn the best international food processing methods.
Similar organizational problems greatly undermine the productivity of the Japanese soap and beer industries—but the steel, metal, automobile, and electronics industries, which are more productive than their differently organized American counterparts, are given the envy they deserve in America. Have you ever wondered why the TV and car you own are made in Japan and the soap you use is not?
CASE-RELATED QUESTIONS
1. Can we relate the case to consumer ethnocentrism? explain why
2. What can be done to change the attitudes of Japanese consumers in milk preferences.
3. How do you evaluate the practices of Japanese state policies to preserve the cultural characteristics of the Japanese?

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