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PurposeStudies on cross-culture marketing often focus on either localization or globalization strategies. Based on data from pre-communist China (1912–1949), product hybridization – defined as a process or strategy that generates symbols, designs, behaviors and cultural identities that blend local and global elements – emerges as a popular intermediate strategy worthy of further inquiry. After examining the mechanisms and processes underlying this strategy, a schema for classifying product hybridization strategies is developed and illustrated. The paper aims to discuss these issues.Design/methodology/approachCritical historical research method is applied to historical data and historical "traces" from pre-communist China's corporate documents, memoirs, posters, advertisements, newspapers and secondhand sources.FindingsStrategic interactions between domestic and foreign companies in pre-communist China fostered products and a city (Shanghai) containing Chinese and non-Chinese elements. Informed by historical traces and data from pre-communist China (1912-1949), a 2 × 2 classification schema relating company type (i.e. foreign or domestic) to values spectrum endpoint (i.e. domestic vs foreign) was formulated. This schema reflects the value of communication, negotiation and cultural (inter)penetration that accompanies cross-culture product flows.Research limitations/implicationsCross-culture marketing strategies meant to help companies satisfy diverse marketplace interests can induce a mélange of product design elements. Because product hybridization reflects reciprocity between domestic and foreign companies that embodies multiple interests and contrasting interpretations of product meanings, researchers should examine globalization and localization synergistically.Practical implicationsStrategies adopted by domestic and foreign companies in pre-communist China (1912–1949) can help contemporary companies design effective cross-culture marketing strategies in a global marketplace infused with competing meanings and interests.Originality/valueExamining historical strategies adopted in pre-communist China (1912–1949) can inform contemporary marketers' intuitions. Understanding product hybridization in global marketplaces can improve marketing efficiency.

Purpose
The purpose of this paper is to explore the means for enhancing the image and business legitimacy of a socially discredited industry – pawnbroking in pre-1949 China – are explored. Previous studies suggest companies operating within such industries cannot solely rely on hard marketing strategies "to maximize sales and profits as they do with soaps and shoes" (Davidson, 2003, p. 7). Instead, they must find soft strategies for improving company and industry image and legitimacy.


Design/methodology/approach
This research relies on qualitative analysis of historical data and documents.


Findings
Soft strategies deployed by Chinese pawnbrokers – such as interpretations, moral value advocacies and institutionalized arrangements – contributed substantially to improving pawnbroking's image and business legitimacy.


Research limitations/implications
Interconnections among ethical values, image, business legitimacy and select marketing strategies are clarified. The efficacy of historically analyzing previously implemented business strategies and their embedding contexts is discussed.


Practical implications
Strategies Chinese pawnbrokers used to mitigate their previously negative image and boost their business legitimacy suggest strategies current socially disapproved companies can use to improve their image and business legitimacy.


Originality/value
A historical analysis of pre-1949 Chinese pawnbroking can suggest soft marketing strategies for overcoming consumers' negative company and industry impressions.