Deck 13: Products and Services for Consumers

Question 1

When there are alternative products in a market, all of which meet performance quality standards, the product chosen is the one that meets market-perceived quality attributes.

Answer 1

True

Question 2

Green marketing is the term frequently used to identify a marketer's efforts to reduce its dependency on U.S. dollars as the standard for international exchange.

Answer 2

False

Question 3

In general, the rate of diffusion of a product is negatively related to its relative advantage.

Answer 3

False

Question 4

According to Everett Rogers, the element of time differentiates elements in the diffusion of new ideas from other types of communication research.

Question 5

Adaptation of the nonphysical features of a product should be avoided when adapting the product to a new culture.

Question 6

An important first step in adapting a product to a foreign market is to determine the cost-benefit as perceived by the intended market.

Question 7

The decision to standardize or adapt a product is less important in delivering quality than price.

Question 8

One of the three variables that affect the rate of diffusion of a product is the perceived attributes of product innovation.

Question 9

Global competition has put more power in the hands of the seller.

Question 10

One of the core components in the Product Component Model is the product platform.

Question 11

According to the Product Component Model, the instructions for using the product and the warranty of the product are included under the packaging component.

Question 12

Consumer perceptions of a quality product often have more to do with market-perceived quality than performance quality.

Question 13

The packaging component of the Product Component Model consists of the physical product-the platform that contains the essential technology-and all its design and functional features.

Question 14

One variable that affects the rate of diffusion of a product is the actual attributes of the innovation.

Question 15

The term product homogenization is used to describe the changes mandated by local product and service standards.

Question 16

The cost and quality of the product are among the most important criteria by which purchases are made.

Question 17

The European Commission (EC) mandate requires a product to be evaluated on all significant environmental effects throughout its life cycle, from manufacturing to disposal.

Question 18

One of the consistencies that marketers can look forward to when marketing products abroad is that almost all labeling laws worldwide are essentially the same.

Question 19

Product diffusion or acceptance is more rapid when product perceptions are similar to current cultural values.

Question 20

From a sociological point of view, any idea perceived as new by a group of people is an innovation.

Question 21

The majority of services enter foreign markets by licensing, franchising, or direct investment.

Question 22

A U.S. cosmetics company had to increase the SPF value of its sunscreen lotions marketed in the Middle East to provide more protection against UV radiation. Which requirement dictated the product adaptation?

A) legal
B) cultural
C) economic
D) climatic
E) political

Question 23

In countries with low literacy rates, the pictures and symbols on products are taken literally as instructions and information.

Question 24

A European chocolate manufacturer received several complaints from customers about the quality of its products when it began selling them in a tropical country. The firm had to repackage its chocolate bars with an extra plastic wrapper to protect it from the heat and dust. Which factor in the local market is most likely to have dictated the company's product adaptation in this scenario?

A) legal requirements
B) economic requirements
C) political requirements
D) climatic requirements
E) technological requirements

Question 25

Services such as insurance and dry cleaning typically are classified as tangible.

Question 26

Exercise Away Products found out it needed to shorten the legs of its treadmills sold in China owing to the height of the average Chinese person. By doing this, Exercise Away Products has achieved

A) product homologation.
B) global product standardization.
C) product dilution.
D) product obsolescence.
E) product disapprobation.

Question 27

The support services component of the product component model contains such items as repair and maintenance and availability of spare parts.

Question 28

What are the two dimensions that define the quality of a product or service?

A) consumer choice quality and process quality
B) market-perceived quality and performance quality
C) product quality and market quality
D) actual quality and assumed quality
E) absolute quality and relative quality

Question 29

What is one of the top two criteria for global market consumers when making purchase decisions?

A) appearance
B) size
C) technology
D) quality
E) service

Question 30

What impact has global competition had on business activities in the international marketplace?

A) It has shifted the focus from a consumer's market to a seller's market.
B) It has increased product life cycles.
C) It has put more power in the hands of the customer.
D) It has reduced the competitive spirit of most businesses in a marketplace.
E) It has limited the choices of the consumers.

Question 31

Cultural barriers play a bigger role in services than in merchandise trade.

Question 32

Effective advertising and proper positioning of products can help brands to improve a less-than-positive country stereotype.

Question 33

Brand image is at the very core of business identity and strategy.

Question 34

A television manufacturer in South Korea had to simplify its televisions before introducing them to the Nigerian markets, as the country lacked the skills to repair the product in case of a malfunction. The local salesforce also did not have the sufficient knowledge about the installation of the product. The requirement that is influencing product adaptation in this scenario is

A) legal
B) climatic
C) political
D) cultural
E) technological

Question 35

Downward Dog Wines had to market its products with a different name in a foreign market as it was mandatory to translate the name into the local language. Which factor has most likely influenced the compulsory change of Downward Dog's product name in the foreign market in this scenario?

A) legal requirement
B) climatic requirement
C) technological requirement
D) monetary requirement
E) economic requirement

Question 36

In the context of global marketing, a product's country of origin does not affect its brand's image significantly.

Question 37

Services are distinguished from products on the basis of their durability, homogeneity, and separability.

Question 38

Products from developing countries have the highest quality image.

Question 39

Bragster Bar, a brand of energy bars in Canada, sells its bars singly or in packs of two in South Asian markets instead of their regular multiple-item packaging that contains 10 or 20 bars. What requirement of the local market most likely influenced Bragster Bar's packaging decision?

A) legal
B) political
C) economic
D) technological
E) cultural

Question 40

Product ________ is the term used to describe the changes mandated by local product and service standards.

A) localization
B) protectionism
C) disapprobation
D) dilution
E) homologation

Question 41

What is a physical attribute of a motorcycle that is essential for its primary function?

A) color
B) price
C) mobility
D) design
E) popularity

Question 42

Karyn, who is interested in marketing her company's diet products in Asia, studies the acceptable behavior, norms, and values in Asian markets as they relate to her product. In other words, Karyn is studying her product's ________ in the Asian markets.

A) observability
B) compatibility
C) dissidence
D) trialability
E) complexity

Question 43

Maya was happy that she did not have to read the instruction manual to determine how to turn on her new camera, snap a digital picture, and export the picture to her computer. The signs (symbols) on the camera body made it very clear what she was to do to achieve digital photography success. What characteristic of Maya's "new product" makes it easy for her to begin her digital experience?

A) high partibility
B) low susceptibility
C) low complexity
D) high trialability
E) low compatibility

Question 44

In terms of innovation characteristics, a product is said to be compatible if

A) it provides greater value to the manufacturers than to the consumers.
B) the degree of social repercussions associated with it is high.
C) its benefits can be communicated easily.
D) it has a higher degree of complexity compared with its counterparts'.
E) it complies with the accepted behavior, values, and norms of the local market.

Question 45

A company focusing its efforts on making its new innovation more user-friendly than before is working on the _______ of the product.

A) compatibility
B) trialability
C) complexity
D) discordancy
E) observability

Question 46

Innovation spreads by the process of

A) diffusion.
B) filtering.
C) dissolution.
D) flighting.
E) liquidation.

Question 47

AllClean develops promotional materials and product demonstrations to clearly and easily communicate the benefits of its cleaning products. In this scenario, AllClean is attempting to enhance the ________ of its products.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability

Question 48

According to Everett Rogers, the goals of the diffusion researcher and the marketer are to shorten the time lag between

A) the dispatch of the product from the company and the time it takes to reach the customer.
B) the time that a budget is determined and the time needed for the funds to reach the communication channels.
C) initial investment and the profits obtained from those investments.
D) introduction of an idea or product and its widespread adoption.
E) introduction of an idea or product and when revisions can be made.

Question 49

From a sociological viewpoint, any idea perceived as new by a group of people is considered as

A) a creation
B) an adaptation
C) a declension
D) a tradition
E) an innovation

Question 50

What is the definition of green marketing?

A) It refers to word-of-mouth marketing, where a company develops customers who become voluntary advocates of a product.
B) It refers to inbound marketing used on websites in the form of a banner, text, or graphic.
C) It refers to the type of marketing that takes place on the Internet, where all the marketing resources and assets are transferred online.
D) It is used to identify concerns with the environmental consequences of a variety of marketing activities.
E) It refers to nontraditional or stealth marketing campaigns.

Question 51

An important first step in adapting a product to a foreign market is to determine the

A) degree of newness of the product as perceived by the intended market.
B) personal ethics of individuals in the target market.
C) regional political parties present in the domestic market.
D) language problem of the intended market.
E) product's compliancy to irrational beliefs of its potential foreign consumers.

Question 52

An American company wants to launch a new product in Madrid. Freda asks her product manager to distribute some samples to potential customers there so that she can gauge the consumer preferences there before introducing the product. Freda is attempting to reduce the degree of economic and/or social risk, also known as ________, associated with product use.

A) compatibility
B) relative advantage
C) complexity
D) trialability
E) observability

Question 53

Which country or group of countries has been at the forefront of the "green movement"?

A) The United States
B) Japan
C) Europe
D) OPEC countries
E) NAFTA countries

Question 54

A product's ________ refers to the ease with which its benefits can be communicated to the customers.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability

Question 55

PG Autos introduces a new technology in its cars to improve their mileage and reduce carbon emissions. It also takes measures to improve its production facilities in order to reduce its carbon footprint. Actual introduction of green measures to meet the government guidelines rather than just through advertising and marketing shows that PG Autos engages in ________ marketing.

A) permission
B) recycle
C) green
D) black
E) greenwash

Question 56

Phineas is comparing the innovation characteristics of his company's water filters with those that are already being marketed in the local market. He believes there is lot of potential for his filters as they are functionally more advanced, have a longer life, and can also be marketed at a more competitive price than those of other sellers in the local market. The innovation characteristic of Phineas's product that will help in wide acceptance of his product in the local market is its

A) compatibility.
B) complexity.
C) trialability.
D) relative advantage
E) observability.

Question 57

What is one of the extraneous variables that affects the rate of diffusion of an object?

A) the absolute marginal value of the innovation relative to the old
B) the actual attributes of the innovation
C) the climatic conditions in which the market is located
D) the method used to communicate the idea
E) the degree of actual novelty of the innovation

Question 58

A women's clothing company based in Singapore had to modify its clothes before introducing them in Iran, as it needed to meet the needs of the women who are generally expected to cover themselves completely as per societal norms. To adapt its clothes to Iranian markets, the company used opaque material and provided accessories like scarves. Which requirement has dictated the product adaptation?

A) legal
B) cultural
C) technological
D) economic
E) climatic

Question 59

As part of the "green movement," the European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect product development are the control of the packaging component of solid waste and

A) the prevalence of similar environmental standards across different member countries.
B) consumer demand for environmentally friendly products.
C) higher government subsidies for greener technologies.
D) the continuous availability of alternative energy resources for production.
E) the proven efficient management of inventory of conventional energy products.

Question 60

In general, the rate of acceptance or resistance of the market to a product is negatively related to

A) relative advantage.
B) compatibility.
C) trialability.
D) complexity.
E) observability.

Question 61

The success achieved by firms when they take their inventions to market is referred to as

A) conversion-ability.
B) liquidation.
C) formation-ability.
D) homologation.
E) consultation.

Question 62

If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms to meet local differences in five different foreign markets, the component of the Product Component Model that is most likely to be under consideration is

A) support services.
B) packaging.
C) delivery.
D) ancillary.
E) core.

Question 63

What factor is mainly responsible for a perceptual bias when interpreting the characteristics of a product?

A) too much product information
B) a shorter distribution channel
C) a market analyst's self-reference criterion
D) a low number of product competitors
E) authoritative product information of the market analyst

Question 64

Sarj, a specialist in product design, is responsible for a product's functional design. With respect to the Product Component Model, in which component category would Sarj's talents most likely be used?

A) core
B) support services
C) packaging
D) invisible
E) auxiliary

Question 65

A Brazilian food company had to change the labeling on its products to meet the specifications regarding vegetarian and nonvegetarian foods set by the government in the Taiwan market. It also had to mention the ingredients in Taiwanese to provide clarity to local customers. The component of the product that is affected is the ________ component.

A) support services
B) packaging
C) functional
D) design
E) core

Question 66

Dr. Thomas is a dentist practicing in Chicago. During a four-day stretch in March, it snowed so heavily that not a single patient was able to visit him. Since none of the appointments took place, he did not make any money in those four days, even though his normal expenses remained. In this scenario, which characteristic of services most likely affected Dr. Thomas' business?

A) tangibility
B) feasibility
C) durability
D) homogeneity
E) perishability

Question 67

A South Korean electronics company had to add detailed instructions about the repair and replacement of its product to make it easier for the local consumers to maintain it. Which element of the Product Component Model relates to this issue?

A) support services
B) design
C) core
D) packaging
E) functional

Question 68

When a company alters the price of its product to compete with local companies in the international market, it is focusing on the ________ component of the product, according to the Product Component Model.

A) core
B) support
C) design
D) maintenance
E) packaging

Question 69

Eugene bought a new watch in January, and by March it stopped keeping time accurately. The warranty was still valid, so he sent it back to the manufacturer for repair. According to the Product Component Model, this demonstrates the ________ component of the product.

A) core
B) support services
C) packaging
D) functional
E) styling

Question 70

The product platform, design features, and functional features are all found in the ________ component of the physical product according to the Product Component Model.

A) core
B) support
C) packaging
D) supplementary
E) auxiliary

Question 71

How do the vast majority of services enter a foreign market?

A) importing and exporting
B) smuggling and pirating
C) licensing, franchising, or direct investment
D) through brokers
E) through diaspora population

Question 72

Dry cleaning, hair styling, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which characteristic of services is being referred to here?

A) intangibility
B) separability
C) liquidity
D) homogeneity
E) durability

Question 73

A Canadian computer company had difficulties when it first entered the Japanese market. Some of its computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be an insignificant problem in Canada, it was certainly a cause of concern in quality-conscious Japan. Which component of the Product Component Model should the company concentrate on to fix this problem?

A) core
B) support services
C) packaging
D) functional
E) design

Question 74

The washing machines marketed by Talcho failed in Asian markets as those countries lacked the skills necessary to repair and maintain Talcho's products. Also, the washing machine parts available in local markets were not compatible with these machines. This product failure is most likely to be a result of lack of attention by the company to the ________ component of the product.

A) marketing
B) price
C) packaging
D) support services
E) style

Question 75

Appliances-a-Rama, an Indian company that manufactures kitchen appliances, alters the design of its ranges to suit the needs of its Japanese consumers. The Japanese prefer compact and efficient appliances to fit their small kitchens. According to the Product Component Model, which product component is being addressed?

A) packaging
B) invisible
C) core
D) ancillary
E) support services

Question 76

Since the consumer is automatically angry with the manufacturer when something goes wrong with the vehicle, repair and maintenance has become a concern of the various automobile manufacturers. In which component of the Product Component Model would the management need to make improvements if problems such as this are to be solved?

A) core
B) functional
C) packaging
D) support services
E) price

Question 77

A characteristic of a service is that it is ________, since it cannot be stored and must be consumed simultaneously with its creation.

A) durable
B) feasible
C) indelible
D) tangible
E) perishable

Question 78

What is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted?

A) automobile services
B) international tourism
C) banking services
D) research and development
E) education services

Question 79

Levon, a hairstylist at a salon in Portland, styles his customers in various ways. His work looks different on different people even though he has styled all of them. This unique character of a service that is unique for every customer as it is individually produced is referred to as

A) tangibility.
B) separability.
C) durability.
D) heterogeneity.
E) divisibility.

Question 80

Because a service is individually produced and is virtually unique, the service is said to have

A) liquidity.
B) coherence.
C) inseparability.
D) heterogeneity.
E) tangibility.