The other type of competition in global marketplace is pressure for local responsiveness

- means that a firm require or need to adapt the product to meet local demand in each market that is why there is a
raise in cost.

Pressures for local responsiveness arise from:

Differences in consumer taste and preferences

Example: Automobile companies formed an idea about selling basic cars in North America ang Europe. Later on, they
found out that consumers in different automobile market seem to have different tastes and preferences. North
American consumers show a strong demand for pickup trucks. This is particularly true in the South and West, where
many families have a pickup truck as second or third car. But in European countries, pickup trucks are seen purely as
utility vehicles and are purchased primarily by firms rather than locals.

As a consequence, the product mix and marketing message needs to be tailored to consider the different nature of
demand in North America and Europe.

Differences in traditional practices and infrastructure

For an example, consider that North America consumer electrical systems are based on 110 volts, whereas in most
European countries, 240 volt-systems are standard. Thus, domestic electric appliances have to be customized for this
infrastructure. Plus, plugs and socket types for electrical outlets differe around the world.