International Business & Economics Research Journal – May 2009 Volume 8, Number 5 45 International Advertising Strategy In ‗New‘ Asia: A Country-Of-Origin Approach On Standardization Vs. Customization Meng, Juan (Gloria), Ph.D., Minnesota State University, Mankato, USA Venkatapparao Mummalaneni, Ph.D., Virginia State University, USA ABSTRACT This study revisited the debate concerning standardization vs. customization of the international advertising strategy from a Country-of-Origin (COO) approach. The objective here is to compare the perceptions of the exporting country and its products from the vantage point of different host countries, and to compare exporting country’s self-image with the perceived images prevailing in the host countries. Further, the study also examines the images of search products and experience products across different countries. Through analyzing survey data collected from 189 Americans, 238 Chinese, and 236 Japanese consumers, we found that different host countries have significantly different perceptions of the same exporting country. Moreover, exporting country’s self-image also largely varies from the host country’s perception of the exporting country. Finally, differences in product image were found both for search and experience products. Therefore, customized advertising strategy is suggested in the “New” Asia, especially in the countries studied. Keywords: international advertising; country-of-origin; self-image/perceived image INTRODUCTION sia is a region characterized by multiple languages, religions and ethnicities, resulting in variegated values and lifestyles. However, marketing research and marketing knowledge of the complex Asian market and its diverse consumers are sorely lacking. Moreover, Asia has been going through dramatic changes since the middle of the last century and without doubt became the ―New‖ Asia. For instance, Japan experienced the miracle of economic development and became the second largest economy in the world after World War II. Additionally, China maintained a torrid pace of economic development, with more than 10% annual GDP growth rate during the last several years. In fact, recent population and economic projections by the McKinsey group conservatively estimate that China will be at least the third largest consumer market by 2025. Other think-tanks are even more sanguine in their projections. They estimate that China will overtake Japan as the second largest consumer market as early as 2015 (Boston Consulting Group, 2007; Garner, 2005). The urban middle class of Chinese consumers is predicted to grow 76% to 612 million by 2025 (McKinsey Group, 2006). This rising middle class will be comprised of younger consumers, age 25 to 44 years old, and, in size, will be much larger than other affluent consumer segments in China (Farrell et al., 2006). Unlike the last generation, the new generation in Asia, especially the ―newly empowered middle class‖ in China, is less frugal and eager to engage in the consumption of branded and luxury products. This ―New‖ Asia phenomenon speeds up the worldwide market competition and provides limitless opportunities for numerous businesses. It is obvious that Asia, especially ―new‖ Asia, deserves more attentions from both researchers‘ and practitioner‘s standpoints. Therefore, this study focuses on advertising and promotion strategies in the ―New‖ Asia and revisits the debate of standardization vs. customization of advertising message from a Country-of-Origin (COO) approach. A