Deck 9: Product policy and adaptation in international markets

Question 1

Google was forced by the Chinese government to establish a new site, Google.cn.

Answer 1

True

Question 2

An unauthorised representation of a copyrighted work, a patented invention or a trademark is called an imitated good.

Answer 2

False

Question 3

Studies on product adaptation show that a minority of products have to be modified for the international marketplace in one way or another.

Answer 3

False

Question 4

The colour white is gaining popularity in industrialised countries because name brands want to be confused with generic products.

Question 5

The core product may be highly similar to those of its competitors, meaning the marketer must use augmented features of the product in order to achieve differentiation.

Question 6

The ISO 9000 and 14000 international standards have not been widely accepted by many organisations across all industrial sectors in China.

Question 7

A customer attaches value to a product in proportion to its perceived ability to help solve problems or meet needs.

Question 8

Economic integration is a driving force in making markets more unified and therefore making product standardisation more likely.

Question 9

While Chinese customers may view Japanese products quite positively regarding their quality, historical animosity towards Japan may prevent them from buying Japanese goods or cause them to prefer goods from other sources.

Question 10

The more exporters learn about local market characteristics in individual markets, the more they are able to establish similarities and, as a result, customise their marketing approach.

Question 11

Government regulations often present the most stringent requirements.

Question 12

The characteristics and behaviour of intended customer groups are as important as governmental influences on the product adaptation decision.

Question 13

Backward innovation is when a company produces a drastically simplified version of a product due to lack of purchasing power or usage conditions.

Question 14

For the Australian market, video poker screens are built to take a beating because Australian gamblers take losing more personally than anywhere else.

Question 15

Economic integration usually reduces discriminatory governmental regulation.

Question 16

Often, no concrete product changes are needed, only a change in the product's positioning.

Question 17

Non-tariff barriers include testing or approval procedures.

Question 18

Products can be differentiated by their composition, by their country of origin, by their tangible features such as packaging or quality, or by their core features such as warranty.

Question 19

Government regulations are probably the single most important factor contributing to product adaptation and, because of bureaucratic red tape, often the most cumbersome and frustrating factor to deal with.

Question 20

In some cases, the situation in a developing market may require backward innovation; that is, the market may require a drastically simplified version of the firm's product due to lack of purchasing power or usage conditions.

Question 21

Companies are attempting to develop global products by incorporating differences regionally or worldwide into one basic design:

A)but this is not pure standardisation.
B)but is not pure adaptation.
C)that is not so different from obtaining inputs from the intended markets.
D)that is an example of adaptability built into the standardised core.

Question 22

Which of the following is not a factor in encouraging adaptation?

A)Global competition
B)Differing use conditions
C)Differing consumer behaviour patterns
D)True to marketing concept

Question 23

Which of the following term refers to the mental image that a brand, or the company as a whole, evokes?

A)Positioning
B)Advertising
C)Promotion
D)Placement

Question 24

If a firm markets a drastically simplified version of a product:

A)it is probably operating in a developing market.
B)this is probably in response to a lack of purchasing power or usage conditions.
C)this is known as backwards innovation.
D)All of these choices

Question 25

Which is not one of the alternatives in approaching international markets?

A)Selling the product as is in the product marketplace
B)Designing new products for the domestic market
C)Modifying products of new countries or regions
D)Incorporating all the differences into the one product and introducing a global product

Question 26

Customers are no longer satisfied with simply having a product: they want it to precisely meet their needs and preferences.____________ requires working with existing product technology, often in modular form, to create specific product bundles for a particular customer.

A)Mass customisation
B)Economies of scale
C)Mass standardisation
D)Mass variations

Question 27

All of the following are factors in encouraging adaptation except:

A)differing consumer behaviour patterns.
B)local competition.
C)global competition.
D)differing use conditions.

Question 28

What is not an example of non-tariff barriers?

A)France requires the use of the French language in any offer, presentation or advertisement, whether written or spoken.
B)Product testing and certification requirements have made the entry of many foreign companies into Japanese markets quite difficult.
C)Since the EU chose ISO 9000 as a basis to harmonise varying technical norms of its member states, some of its trading partners have accused it of erecting a new trade barrier against outsiders.
D)All of the alternatives are incorrect.

Question 29

Three groups of factors that determine cultural and psychological specificity in relation to products and services are:

A)economic performance, usage patterns and cultural adaptability.
B)economic changes, consumption patterns and cultural acceptability.
C)consumption patterns, psychosocial characteristics and general cultural criteria.
D)social norms, cultural patterns and psychological acceptability.

Question 30

What are the three conditions that generally require product adaptation in consumer goods?

A)R&D time, falling revenue and target market expectations
B)Falling profit, market share and economic conditions
C)Cultural grounding, economic conditions and target markets
D)Falling revenue, target markets and layout

Question 31

Which of the following statements is incorrect?

A)Worldwide, more than 40 per cent of all software is illegally copied.
B)Some companies, such as Disney, have tried to legitimise offenders by converting them into authorised licensees.
C)Product counterfeiting has not yet spread to high-technology products and services.
D)All the alternatives are incorrect.

Question 32

Which of the following is not a factor in encouraging standardisation?

A)Economies of scale in production
B)Economies in product R&D
C)Local competition
D)Economies in marketing

Question 33

The product adaptation decision is as influenced by _______ as by governmental influences.

A)the company's policy and profit model
B)economic social and climactic conditions
C)the characteristics and behaviour of intended customer groups
D)All of these choices

Question 34

Consumption patterns affecting product adaptation include:

A)pattern of purchase and pattern of usage.
B)pattern of usage and social acceptability pattern.
C)pattern elements and social acceptability pattern.
D)pattern of purchase and element pattern.

Question 35

All of the following are examples of augmented products, except:

A)brand name.
B)installation.
C)delivery and credit.
D)after-sales service.

Question 36

Which of the following is not a non-tariff barrier?

A)Product standards
B)Advertising standards
C)Testing or approval procedures
D)Bureaucratic red tape

Question 37

In deciding the form in which the product is to be marketed abroad, the firm should consider a few sets of factors.Which of the following is not a set of factors for consideration?

A)The market(s)that have been targeted
B)The product and its characteristics
C)Company characteristics
D)Competitive characteristics

Question 38

Which of the following is not a factor to be considered when deciding the form in which a product is to be marketed abroad?

A)The markets
B)The amount of profit
C)The product and its characteristics
D)Company resources and policy

Question 39

Climate and geography will usually have an effect on the total product offering.Which of the following is not expected to have such an effect?

A)Positioning
B)The core product
C)Tangible elements, mainly packaging
D)Augmented features

Question 40

Which of the following is correct?

A)The country of origin of a product, typically communicated by the phrase 'Made in (country)', does not have a considerable influence on the quality perceptions of a product.
B)In some markets consumers prefer imports of all kinds over domestic items.
C)Country-of-origin effects tend to be stronger as consumers become more informed.
D)All of these choices.

Question 41

Non-tariff barriers:

A)are usually in place to keep foreign products out of a market.
B)are usually designed to protect domestic producers.
C)are usually designed to make domestic producers more efficient.
D)are usually in place to keep foreign products out of a market and are usually designed to protect domestic producers.

Question 42

Which of the following is not an action against counterfeiting?

A)Legislative action
B)Bilateral and multilateral negotiations
C)Joint private sector action
D)Industry efforts

Question 43

To avoid problems with brand names, several approaches have been suggested.Which of the following is not an approach?

A)Translation
B)Transliteration
C)Transculture.
D)Transcendence

Question 44

The name, term, symbol, sign or design used by a firm to differentiate its offerings from those of its competitors is called the:

A)trademark.
B)market position.
C)brand.
D)image.

Question 45

Which of the following is not part of company considerations in factors affecting product-adaptation decisions?

A)Market opportunity
B)Cost of adapting
C)Customer characteristics, expectations and preferences
D)Resources

Question 46

Warranties can be uniform in the international market if:

A)use conditions do not vary dramatically.
B)if the company is actually capable of delivering on its promise everywhere.
C)market conditions demand uniform warranties.
D)use conditions do not vary dramatically and if the company is actually capable of delivering on its promise everywhere.

Question 47

Which category of product experiences the most homogenous demand from all international markets?

A)Food
B)Consumer non-durables
C)Industrial products
D)Technology-intensive products

Question 48

Counterfeit goods are:

A)any goods bearing an unauthorised representation of a trademark.
B)any goods bearing an unauthorised representation of a copyrighted work.
C)any goods bearing an unauthorised representation of a patented invention.
D)All of these choices

Question 49

Explain how international marketers can fight against intellectual property violation.

Question 50

In international marketing, the brand:

A)is made up of vocalisable and non-vocalisable parts.
B)is difficult to establish worldwide even though brand names travel well.
C)is a generic term referring to a product feature but this term is often confused with the electronic 'brand' identification system used in many countries.
D)is made up of vocalisable and tangible parts.

Question 51

Which of the following statements is incorrect?

A)Adaptations in product styling, colour, size and other appearance features are more common in industrial marketing than consumer marketing.
B)Products that rely heavily on written or spoken language have to be adapted for better penetration of the market.
C)When a product sold overseas requires repairs, parts or service, the problem of obtaining, training and holding onto sophisticated engineering or repair staff is not easy.
D)All the alternatives are incorrect.

Question 52

Country of origin effects:

A)lessen as customers become more informed.
B)include non-stereotypical views of product quality.
C)increase as customers become more informed.
D)include price increases due to local taxes and tariffs.

Question 53

Three approaches are suggested for developing brand names for the international market are:

A)transcultural, transliteration and transparency.
B)transliteration, transparency and translation.
C)transparency, translation and transformation.
D)None of the above

Question 54

Packaging serves which three major functions?

A)Protection, promotion and user convenience
B)Promotion, user information and branding
C)Convenience, brand promotion and adherence to government regulations
D)Brand promotion, user convenience and labelling

Question 55

What is not a factor that affects decision related to product adaptation?

A)Regional, country or local characteristics
B)National characteristics
C)Product characteristics
D)Company considerations

Question 56

What are some questions that the management should when deciding whether they should or should not adapt a product to an international market?

Question 57

The _________ product - for example, the component of a personal computer or the recipe for a soup - may indeed be the same as or highly similar to those of competitors, leaving the marketer with the other tangible and__________ features of the product with which to achieve differentiation.

A)core; augmented
B)potential; augmented
C)core; potential
D)augmented, potential

Question 58

What are some of the cautions an international marketer should be aware of when making a decision to enter a foreign market in regards to standardisation and adaptation?