Deck 10: Brand and Product Decisions in Global Marketing

Question 1

Nestlé asked suppliers to find a type of glue to make the clicking sound louder when consumers snap open a tube of Smarties brand chocolate candies.

Answer 1

True

Question 2

Many American car buyers perceive Korean cars as:

A) durable.
B) cheap.
C) reliable.
D) of high quality.
E) a good investment.

Answer 2

B

Question 3

In 2008, the United States enacted a country-of-origin labeling (COOL) law. The law requires supermarkets and other food retailers to display information that identifies the country that meat, poultry, and certain other food products come from.

Answer 3

True

Question 4

Packaging is an important consideration for products that are shipped to markets worldwide. Which of the following statements related to packaging is not true?

A) Nestlé's worldwide network of packaging teams provide improvement suggestions on a quarterly basis.
B) The Japanese prefer plain soft colors on their packages.
C) The Aquafresh Ultimate tube was designed to stand vertically.
D) Coca-Cola had contour bottles in both glass and plastic versions in many countries.
E) Nestlé asked suppliers to find a glue to make the clicking sound louder when a tube of Smarties brand chocolate candies are unwrapped.

Question 5

Coca-Cola's distinctive contour bottle, which is sold in many countries, illustrates the point that packaging:

A) strategies can vary by country and region.
B) helps in storing large sizes in refrigerators.
C) strategies do not change by country and region.
D) appeals only to Asian consumers.
E) helps in brand identification.

Question 6

For brands, it's important to speak the language of the target audience.

Question 7

Packaging serves several important communication functions, which include all of the following except:

A) packaging offer communication cues that can influence consumers when making a purchase decision.
B) packaging engages the senses of a consumer.
C) packaging makes an emotional connection with the consumer.
D) packaging enhances a consumer's brand experience.
E) packaging enhances functional benefits of the product.

Question 8

X (formerly Google X), the company's semi-secret research facility, is known as the Moonshot Laboratory. That's because staff members are working on "moonshot" projects that represent leading-edge technology leaps.

Question 9

All of the following statements related to packaging of Coca-Cola products are true except:

A) in North America, Coke offers Fridge Pack, which holds 12 cans, since there are large refrigerators in use.
B) in Latin America, Coca-Cola offers Coke in different-sized bottles.
C) Coca-Cola's distinctive contour bottle comes in both glass and plastic versions.
D) Coke's packaging strategies are based on profitability in using different-sized bottles.
E) Coke sells 2-liter bottles in the United States, which can be stocked in chilled and unchilled forms in stores.

Question 10

Which one of the following statements is not accurate regarding Alphabet Ltd.?

A) The company's core search and ad-driven businesses are still called Google.
B) The company's semi-secret research division is known as the Moonshot Laboratory.
C) The company also owns Advanced Technology and Projects (ATAP), which focuses on mobile applications.
D) Samsung and several other handset manufacturers use its Android smartphone operating system.
E) Alphabet has also made a number of strategic acquisitions, including video-sharing site YouTube and the Internet of Things thermostat brand Nest.

Question 11

Coca-Cola's packaging innovation includes a Fridge Pack, which is a long, slender carton that holds the equivalent of 12 cans of soda. This pack is popular since it fits into the refrigerator's lower shelf and is convenient for use by global consumers.

Question 12

Packaging aesthetics are particularly important to the ________ consumer.

A) Indian
B) Japanese
C) French
D) German
E) American

Question 13

An express warranty is a written guarantee that assures the buyer that he or she is getting what he or she has paid for or that provides recourse in case a product's performance falls short of expectations.

Question 14

Global marketers must understand the importance of visual aesthetics embodied in the color or shape of a product, label, or package. Which of the following statements is not true regarding the use of color in selected countries?

A) The yellow color on Caterpillar's earthmoving equipment is acceptable worldwide.
B) Packaging aesthetics are particularly important to the Japanese.
C) The color white is associated with death and bad luck in some Asian countries.
D) The red Marlboro color had to be changed in some Asian countries.
E) The Chinese consider the color red to be lucky.

Question 15

Generally speaking, which of the following statements is true concerning product attributes?

A) Tangible product attributes are more important than intangible ones.
B) Intangible product attributes are more important than tangible ones.
C) Both tangible and intangible product attributes are important.
D) Neither tangible nor intangible product attributes are important.
E) A product has more attributes than tangible and intangible ones.

Question 16

Regulators in different countries have proposed various regulations for product labeling. All of the following statements pertaining to such regulations are true except:

A) mandatory health warnings on tobacco products are required in most countries.
B) the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point.
C) in 2008, the United States enacted a country-of-origin labeling (COOL) law.
D) the use of terms "light" and "natural" are allowed on labels only in the United States.
E) McDonald's is posting nutrition information on all food packaging and wrappers in selected markets.

Question 17

Alphabet's myriad product development initiatives illustrate the point that products and brands are arguably the least crucial element of a company's marketing program.

Question 18

Tangible product attributes include the status associated with product ownership and a brand's overall reputation.

Question 19

The marketers of Corona beer achieved great success in the U.S. market by:

A) retaining the bottle design originally used in Mexico.
B) hiring Hispanic movie stars as endorsers.
C) distributing Corona in returnable bottles.
D) changing the brewing recipe to conform to American palates.
E) having the label in Spanish.

Question 20

An express warranty is a written guarantee that assures the buyer that he or she:

A) is getting what he or she desired.
B) will be able to get express response if any defects are found.
C) is getting what he or she has paid for.
D) will be able to contact the manufacturer whenever needed.
E) has limited time for filling out information required by the manufacturer.

Question 21

Which one of the following statements describing brand equity is not accurate?

A) It is an asset representing the value created by the relationship between the brand and its customers over time.
B) The stronger the relationship with the consumer, the greater is the brand equity.
C) It represents the total value that accrues to a product as a result of a company's cumulative investments in the marketing of the brand.
D) It can be thought of as an asset representing the value created by the relationship between the brand and its customers over time.
E) It is a perception about a brand as reflected by brand associations that consumers hold in their memories.

Question 22

People have local tastes based on their unique cultures and traditions-a good candy bar in Brazil is not the same as a good candy bar in China.

Question 23

Maslow's hierarchy is applicable to global marketing because it can help explain how:

A) basic human needs can drive the development of global products.
B) the top of the Asian hierarchy is self-respect.
C) status needs in different countries can only be fulfilled with localized products.
D) "luxury badging" is irrelevant to companies marketing in Asia.
E) Asians differ from Westerners in their basic physiological needs.

Question 24

A logo can be all of the following except:

A) word mark.
B) nonword mark.
C) brand symbol.
D) brand equity.
E) trademark.

Question 25

German wines would be more appealing in export markets if the labels were simplified.

Question 26

Coca-Cola's distinctive contour bottle comes in both glass and plastic versions.

Question 27

As outlined by branding expert Kevin Lane Keller, the benefits of strong brand equity include all of the following except:

A) greater loyalty.
B) more vulnerability to marketing actions.
C) less vulnerability to marketing crises.
D) more inelastic consumer response to price increases.
E) more elastic consumer response to price decreases.

Question 28

What is a brand image? How can it be used by competitors to differentiate themselves?

Question 29

________ can also be thought of as an asset representing the value created by the relationship between the brand and its customers over time.

A) Brand extensions
B) Co-branding
C) Brand image
D) Brand equity
E) Brand loyalty

Question 30

Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect?

A) brand equity
B) co-branding
C) brand image
D) brand extension
E) tiered branding

Question 31

Which of the following statements is not an example of local products or brands?

A) Coca-Cola developed several branded drink products for Japan.
B) Coca-Cola markets Kinely brand bottled water in India.
C) BMW uses "the ultimate driving machine" slogan in India.
D) Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United Kingdom.
E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.

Question 32

A product is a good, service, or idea with both tangible and intangible attributes that collectively create value for a buyer or user.

Question 33

Why are packaging aesthetics an important consideration in global product marketing?

Question 34

Which of the following is not in the top five of the world's most valuable brands according to 2017 rankings?

A) Apple
B) Microsoft
C) Coca-Cola
D) Amazon
E) Samsung

Question 35

British entrepreneur Richard Branson has built a global business empire by:

A) relying on brand extension.
B) being the first to use smart cards in major markets.
C) developing local brands.
D) avoiding consumer businesses with established leaders.
E) restricting the "Virgin" name only to airlines.

Question 36

The term consumer packaged goods applies to a specific variety of products whose packaging is designed to protect or contain the product during shipping, at retail locations, and at the point of use or consumption.

Question 37

________ represents the cumulative added value of a company's investment in the marketing of a brand over time.

A) A brand extension
B) Co-branding
C) Brand image
D) Brand equity
E) Brand loyalty

Question 38

Alfred Zeien, former chairman of Gillette, once noted that his company's Parker Pen unit does not have to develop a special model for Malaysia and Singapore because shoppers worldwide seek the same things when buying a gift that will serve the recipient as a status symbol. This insight relates to which level of Maslow's hierarchy of needs?

A) physiological
B) safety
C) social
D) esteem
E) self-respect

Question 39

U.S. executives of an electronic device manufacturer understood that in Japan, "a book is judged by its content." As a result, they revamped packaging aesthetics.

Question 40

Examples of a "brand symbol" include all of the following except:

A) date of manufacture on Coca-Cola cans.
B) the wave that appears on red Coke cans and bottle labels.
C) non-word marks such as the Nike swoosh.
D) three-pronged Mercedes star.
E) McDonald's golden arches.

Question 41

When a corporate name such as Sony is combined with a product brand name such as Walkman, the brand category is referred to as:

A) brand equity.
B) brand symbol.
C) tiered brand.
D) co-brand.
E) brand loyalty.

Question 42

Some consumers flaunt their wealth by buying expensive products and brands that others will notice-a behavior referred to as conspicuous consumption.

Question 43

In some developing countries, refrigerators have an important secondary purpose related to higher-order needs, which relates to:

A) competition
B) safety
C) physiology
D) prestige
E) self-respect

Question 44

The world's 10 most valuable brands (2017) includes McDonald's restaurants.

Question 45

As quoted in the text, "People love the Uber product. They do not necessarily love the brand."

Question 46

The Intel Inside campaign promoting both the Intel Corporation and its Pentium-brand processors in conjunction with advertising for various brands of personal computers is an example of:

A) brand equity.
B) brand symbol.
C) co-branding.
D) brand extension.
E) brand loyalty.

Question 47

The benefits of strong brands include all of the following except:

A) greater loyalty.
B) less vulnerability to marketing actions.
C) less inelastic consumer response to price increases.
D) more elastic consumer response to price decreases.
E) larger margins.

Question 48

One of the benefits of strong brand equity is more elastic consumer response to price increases.

Question 49

Which of the following is not one of the levels in the Asian version of Maslow's hierarchy?

A) physiological
B) safety
C) affiliation
D) admiration
E) self-respect

Question 50

The "wave" that appears on red Coke cans and bottle labels is an example of a brand symbol.

Question 51

The equity value of global megabrands such as Coca-Cola and Marlboro runs in the tens of billions of dollars.

Question 52

The decision to transform a global product into a global brand is risky. For example, in the United Kingdom, Snickers may get confused with Knickers, the British slang for a woman's undergarment.

Question 53

The Virgin brand is a global brand with several brand extensions.

Question 54

In India, Vietnam, and other emerging markets, many people cannot afford flush toilets but buy cell phones as status symbols.

Question 55

What are brands, and what are their functions in global marketing? How do brands develop their image, identity, and equity? Are global products and global brands the same?

Question 56

According to the top brand rankings, 2017, Microsoft is the world's most valuable brand.

Question 57

Apple's retail stores reinforce the brand's hip, cool image.

Question 58

Comparing the traditional formulation of Maslow's hierarchy with the results of current research on the consumer needs and motivation in Asia, which of the following is correct?

A) The lowest two levels of the hierarchy are the same in the traditional and Asian versions.
B) The lowest three levels of the hierarchy are the same in the traditional and Asian versions.
C) The lowest four levels of the hierarchy are the same in the traditional and Asian versions.
D) The five levels in the traditional formulation apply equally in the West and in Asia.
E) The highest levels of the hierarchy are the same in the traditional and Asian versions.

Question 59

The Sony Walkman is an example of combination or tiered branding, whereby a corporate name is combined with the name of the product.

Question 60

In the United States, the average Buick buyer is 61 years old, which stands in marked contrast to Volvo, whose average buyer is only 50.

Question 61

Is it possible for the manufacturing reputation of a particular country to change over time? Justify using examples.

Question 62

Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation?

A) companion products
B) food products
C) industrial products
D) intangible products
E) non-alcoholic drinks

Question 63

Many consumers consider products with labels such as "Made in Bangladesh" and "Made in Brazil" to be of inferior quality and value.

Question 64

Ben & Jerry's ice cream package design was changed in the United Kingdom since British consumers perceived the colors differently than U.S. consumers. This is an example of:

A) product-communications extension.
B) product extension-communications adaptation.
C) product adaptation-communications extension.
D) dual adaptation.
E) product invention.

Question 65

Targeting the 300 million farmers in India who still use plows harnessed to oxen, John Deere engineers created a line of relatively inexpensive, no-frills tractors. The Deere team then realized that the same equipment could be marketed to hobby farmers and acreage owners in the United States, a segment that they had previously overlooked. This is an example of ________ strategy.

A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product invention

Question 66

Describe the guidelines that can assist marketing managers in their efforts to establish global brand leadership.

Question 67

Scotland's top export category is information technology.

Question 68

China and India take great pride in their manufacturing capabilities but, generally speaking, consumer perception lags behind the reality.

Question 69

Industrial products tend to be less deeply rooted in culture than are consumer goods.

Question 70

Which of the following could hinder the success of products labeled "Made in Bangladesh" or "Made in Thailand" in export markets?

A) negative country-of-origin bias
B) no possible quality/price positioning
C) low acceptance of private brands
D) lack of promotion in global markets
E) high product saturation levels in global markets

Question 71

The European Commission sets product standards that force many non-EU companies to adapt their product or service offerings to satisfy domestic market regulations.

Question 72

When consumers flaunt their wealth by buying expensive products and brands so that others will notice is referred to as "luxury badging" behavior.

Question 73

Perceptions and attitudes about a product's origins can be positive or negative. On the positive side, "German" is synonymous with style.

Question 74

In countries like India and Vietnam, and other emerging markets, amenities such as refrigerators, flush toilets, and cell phones are considered status symbols.

Question 75

Marketers in Gillette's Parker Pen subsidiary are confident that consumers in Malaysia and Singapore shopping for an upscale gift will buy the same Parker Pen as Americans shopping at Neiman Marcus.

Question 76

Before Ben & Jerry's launched their ice cream in the United Kingdom, the company conducted extensive research to determine whether the package design was appropriate. The research indicated that British consumers perceived the colors differently than U.S. consumers. The package design was changed accordingly. This type of strategy can be defined as:

A) product-communications extension.
B) product extension-communications adaptation.
C) product adaptation-communications extension.
D) product-communication adaptation.
E) product invention.

Question 77

Coca-Cola has developed several branded drink products for sale only in Japan, including a noncarbonated ginseng-flavored beverage. Using this as an example, outline the differences between a local brand and a global brand.

Question 78

Marketers in Gillette's Parker Pen subsidiary focused on upscale shoppers in Malaysia and Singapore. This is an example which coincides with Maslow's hierarchy related to:

A) self-esteem.
B) physiological needs.
C) security.
D) self actualization.
E) social needs.

Question 79

Maslow's hierarchy of needs provide a useful framework for understanding how and why local products and brands can be extended beyond home-country borders. How can Maslow's needs hierarchy be used in global marketing?

Question 80

In Hellmut Schutte's modified hierarchy to explain the needs and wants of Asian consumers, the last three levels are affiliation, admiration, and self-actualization.