Customer Centricity as a New Trend in the Development of International Trade Theory
Purpose: International trade theory has evolved over the centuries, with considerations ranging from the macro level to the meso level and finally to the micro level. At each stage of the discussion on international flows of goods, authors addressed issues related to costs, and later stages paid increasing attention to efficiency, production equipment, and, finally, innovation. However, given the development of the economic environment in the 21st century, it is important to recognise the growing importance of a clear understanding of customer needs in trade. It is customers and their specific circumstances that influence interest in products/goods, which can determine the development of international trade. Therefore, could a thorough understanding of customer needs constitute a new research trend in the development of international trade theory? This aspect has not been widely addressed in the literature on international trade, but has been more a subject of marketing research. It is therefore crucial to understand consumer needs as a key factor shaping international trade and to determine which individual customer factors can be considered when adapting products to specific consumers in foreign markets, often with diverse cultural conditions. The aim of this article is therefore to answer these questions and explore the practical aspects of effectively adapting products to target markets. Design/Methodology/Approach: The author initially used a literature review-based research methodology, followed by observations of a group of Polish entities cooperating with him in the internationalisation of business. In the former case, the authors analyzed aspects of product adaptation to target markets, as well as the contemporary approach to creating value that is interesting to customers. The author has applied this knowledge to international trade through his scientific and business experience, as well as his market observations from close daily cooperation with entities engaged in international activities. Based on these analyses, the author developed a research scope for entities considering or developing international operations. Findings: The author identified groups of demographic, psychographic, cultural, marketing and sales, economic, and geopolitical characteristics/factors, the analysis of which is important for understanding the behaviour and needs of customers in foreign target markets. For each of these groups, the author identified aspects whose understanding could help present goods to the target market that meet consumers' needs and expectations, thereby stimulating growth in foreign sales. Practical Implications: Companies developing their foreign sales can, based on the indicated groups of characteristics, conduct marketing research in potential target markets before launching sales in a given market. Implementing such activities may reduce the risk of failure in this expansion, thereby reducing financial, time, and image losses. Originality/Value: The literature on international trade has so far addressed issues related to product adaptation to target markets. However, beyond general considerations in this area, no studies have been identified that specify which aspects should be examined. This article addresses this research gap, and the author has attempted to identify the characteristics/conditions of consumer behaviour in foreign markets, which should serve as a prelude to conducting analytical research before commencing foreign sales.