Environmental Sensitivity

Environmental Sensitivity: – Environmental sensitivity is the extent to which products must be adapted to the culture-specific needs of different needs of different national markets. Environmental sensitivity can be measured by viewing product on an environmental sensitivity continuum. At one end of the continuum are environmentally insensitive products that do not require significant adaptation to the environments of local markets in the world. At the other end of the continuum are products that are highly sensitive to different environmental factors. A firm with environmental insensitive products will spend less time determining the specific conditions of local markets as the product in question is universal in nature. In case of environmentally sensitive products, managers need to address country-specific economic, regulations, technological, social and cultural environmental conditions.

The sensitivity of products can be represented on a two dimensional scare wherein the horizontal axis shows environmental sensitivity and the vertical axis shows the extent of need for product adaptation. Products showing low levels of environmental sensitivity such as technical products belong to the lower left of the figure. As we move to the right or the horizontal axis, the environmental sensitivity increases along with the need for adaptation. Computers have low levels of environmental sensitivity but variations in country voltage requirements require some adaptation. At the top right of the figures we have products with high environmental sensitivity. For example, food is highly sensitive to climate and culture.