Deck 10: Global Product Policy Decisions I: Developing New Products for Global Markets

Question 1

One of the disadvantages that a global marketer may have is _____.This would occur when too much standardization stifles initiative and experimentation at the local level.

A)overcustomization
B)micro-managing
C)technocracy
D)group think
E)overstandardization

Answer 1

E

Question 2

When Kellogg Co.first marketed its flagship Corn Flakes brand in South Africa, the company encountered a major problem.Many South Africans, accustomed to hot porridge for breakfast, had no idea how to prepare corn flakes.What did Kellogg do?

A)Withdrew from the market
B)Ran ads on how to eat Corn Flakes
C)Reformulated Corn Flakes to hold up to milk longer
D)Rolled out Corn Flakes Instant Porridge
E)Purchased a local brand

Answer 2

D

Question 3

A uniform product policy capitalizes on the commonalities in customers' needs across countries.The goal is to:

A)minimize costs
B)reduce confusion
C)maintain brand integrity
D)maintain organizational structure

Answer 3

A

Question 4

One attempt to combine the strengths of standardization and customization of products is to deal with both issues as functions of product design.The _____ product design approach consists of developing a range of product parts that can be used worldwide.The parts can be assembled into numerous product configurations.

A)core-product
B)uniform commercial code
C)die-casting
D)modular
E)Nexus

Question 5

The adoption of new products is driven by factors including:

A)individual differences.
B)personal influences.
C)product characteristics.
D)all of the above.
E)none of the above.

Question 6

For many product categories, consumer needs are very similar across countries.In some categories (e.g., luggage, courier services, and tablet computers), consumers search for the same kind of functional benefits around the world.Which of the following factors that favor globalization of product, would most accurately be associated with this trend?

A)common customer needs.
B)global customers.
C)scale economies.
D)time-to-market.
E)Europe 1992 and other Regional Market Agreements.

Question 7

_____ are always eager to experiment with new ideas and products.

A)Early adopters.
B)Early majority.
C)Late majority.
D)Laggards.
E)Prior adopters.

Question 8

The formation of regional market agreements such as the Single European Market encourages companies to launch:

A)regional products
B)local products
C)global products
D)niche products

Question 9

The primary advantage to using a standardization approach to marketing a product in the international arena is:

A)minimization of costs (which can be passed on to customers).
B)more profit.
C)less service complaints.
D)less product returns.
E)standard budgets.

Question 10

_____ means offering a uniform product on a regional or worldwide basis (only minor alterations are made to meet local standards).

A)Customization
B)Standardization
C)Miniaturization
D)Assimilation
E)Marginalization

Question 11

One attempt to combine the strengths of standardization and customization of products is to deal with both issues as functions of product design.The _____ approach consists of developing a mostly uniform core-product/platform and then adding attachments that match local market needs.

A)core-product
B)uniform commercial code
C)die-casting
D)modular
E)PRIZM

Question 12

A _____ enables a company to reduce complexity and enjoy the benefits of economies of scale while still meeting local market requirements.

A)convergence approach
B)divergence
C)linear approach
D)forecasting approach
E)modular strategy

Question 13

Ikea, the Swedish furniture chain, insists that all its stores carry the basic product line with little room for adaptation to local tastes.If research of the U.S.market showed that Americans preferred larger beds than their Swedish counterparts, which of the following strategies would be advisable to Ikea?

A)standardization.
B)new product development.
C)adaptation.
D)withdraw from market.
E)lower prices to encourage attitude change.

Question 14

In the Australian market, rather than manufacturing disposable diapers, Procter & Gamble decided to import them since the size of the market did not warrant local manufacturing according to P&G.Unfortunately, by using packaging designed for the Asian region with non-English labeling, P&G alienated its customers in Australia.This is an example of improper:

A)global policy decisions.
B)pricing decisions.
C)brand policy decisions.
D)product policy decisions.
E)company policy decisions.

Question 15

Standardization of product has a _____ orientation (lower costs via mass production).

A)market-driven
B)service-driven
C)budget-driven
D)promotion-driven
E)product-driven

Question 16

One of the pitfalls that a global marketer can run into is _____.This would occur when too much adaptation to the local market occurs and the brand becomes vulnerable to losing its unique foreigness.

A)overcustomization
B)micro-managing
C)technocracy
D)group think
E)overstandardization

Question 17

_____ means shortening the time to bring new product projects to the market.

A)Delivery-to-market
B)Orientation-to-market
C)Time-to-market
D)Extension-to-market
E)Perfection-to-market

Question 18

In general, the rate of adoption of new products (in foreign markets) is driven by individual differences, personal influences, and:

A)fashion.
B)trends.
C)cash on hand.
D)product characteristics.
E)promotion characteristics.

Question 19

Which of the following would not be one of the five key product characteristics that contribute to its acceptance?

A)low service maintenance.
B)relative advantage.
C)compatibility.
D)complexity.
E)trialability.

Question 20

Although size often leads to lower unit costs, _____ should not be overlooked.Bureaucratic bloat and employee dissatisfaction in large-scale operations often create hidden costs.

A)disparate customer needs.
B)increased energy costs
C)diseconomies of scale
D)desire for growth for its own sake

Question 21

A(n) _____ is essentially a field experiment where the new product is marketed in a select set of cities to assess its sales potential and scores of other performance measures.

A)attitude screen
B)product model
C)product concept
D)test market
E)focus concept

Question 22

A _____ country is where a product is entered after initial introduction has taken place.

A)lag
B)low-profile
C)lead
D)high-profile
E)fast

Question 23

Testing objectives, testing marketing mixes, making projections of sales volume, and analyzing potential competitive marketing mixes are all reasons to conduct:

A)attitude screens.
B)product models.
C)product concepts.
D)test markets.
E)focus concepts.

Question 24

A common technique to avoid a global test market is to make global sales projections based on product performance in a _____ market.

A)lag
B)middle adopter
C)lead
D)opinionated
E)innovative

Question 25

The adoption rate for new products in countries with a _____ population is usually faster than in countries with a highly diverse culture.

A)heterogeneous
B)complex
C)diverse
D)homogeneous
E)polycentric

Question 26

The adoption rate for a new product in countries with a homogeneous population is usually faster than in countries with a highly diverse culture.Which of the following countries would probably have the fastest adoption based on the information provided above?

A)Ireland.
B)United States.
C)Japan.
D)United Kingdom.
E)France.

Question 27

One alternative to the test market is the _____.

A)thought panel
B)laboratory test market
C)internet exposure technique
D)preferred patron experiment
E)use of break-even analysis

Question 28

Once new product ideas have been identified, the next logical step is to _____ the ideas.

A)budget
B)fund
C)screen
D)market
E)trademark

Question 29

Which of the following are among the best sources for finding new product ideas?

A)company, customers, competition, and collaborators.
B)trade magazines, television, and the internet.
C)government statistics, demographic charts, and psychological profiles.
D)reverse engineering, industrial spying, and out-of-date patents.
E)rumors, stories, and intuition.

Question 30

_____ are people who look beyond their immediate social surroundings and are not local in their opinions.

A)Domestics
B)Introverts
C)Negotiators
D)Cosmopolitans
E)Regionalists

Question 31

The Nielsen Global New Product Innovation Survey taps into the reasons why consumers bought their last new product.Globally, on average, the top drivers included all of these except for which one?

A)Affordability
B)Convenience and ease
C)Brand power 

D)Novelty and visibility
E)Environmentally friendly

Question 32

All of the following are steps in the new product development process except:

A)identification of new product ideas.
B)budget development.
C)screening.
D)concept testing.
E)test marketing.

Question 33

All of the following are factors that affect product penetration except:

A)cosmopolitanism.
B)number of locals in the market.
C)mobility.
D)seasonal weather patterns.
E)percentage of women in the labor force.

Question 34

Is the product consistent with exiting values and attitudes of the individuals in the social system, would be a question that best fits with which of the following key product characteristics acceptance categories?

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

Question 35

If prospective customers are contacted and shown commercials for the new product and existing brands (then asked to state attitudes and preferences of what they have seen), then the marketing research entity will probably have conducted a(n) _____ instead of a full test market.

A)thought panel
B)laboratory test market
C)internet exposure technique
D)preferred patron experiment
E)break-even analysis

Question 36

A _____ country is where a product is first introduced.

A)lag
B)low-profile
C)lead
D)high-profile
E)fast

Question 37

Is the product easy to understand or use, would be a question that best fits with which of the following key product characteristics acceptance categories?

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

Question 38

To what extent does the new product offer more perceived value to potential adopters than exiting alternatives, would be a question that best fits with which of the following key product characteristics acceptance categories?

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

Question 39

With respect to adoption rates in the international marketplace, it appears to be generally true that adoption rates are higher in _____ countries than in _____ countries.

A)lead/lag
B)lag/lead
C)lead/middle adopters
D)lag/middle adopters
E)lead/opinion-lead

Question 40

Adoption rates of new products are affected by:

A)population homogeneity
B)proportion of women in the labor force
C)cosmopolitanism
D)mobility
E)all of the above

Question 41

Timing is a very important element in any new product launch.One of the strategies is described as being the _____.This method often involves introducing the new product in the company's home market and then moving to other advanced markets.Finally, less advanced markets are exposed to the product.

A)sprinkler method
B)shotgun method
C)rifle method
D)dribble method
E)waterfall method

Question 42

Truly global innovators are called:

A)metanational innovators.
B)delta innovators.
C)beta innovators.
D)gamma innovators.
E)none of the above.

Question 43

Via the _____, there is a simultaneous introduction of products in other markets of the world.

A)sprinkler strategy
B)shotgun method
C)rifle method
D)dribble method
E)waterfall method

Question 44

The sprinkler strategy of one to two entries (globally) is preferable over the waterfall model when all of the following conditions exist except:

A)the lifecycle of the product is relatively short.
B)there are low costs of entry into the market.
C)there are many competitors.
D)very weak local competitors.
E)anticipation of fast growth.

Question 45

A sophisticated method (sometimes called trade-off analysis) for measuring consumer preferences for product concepts is called:

A)chi-square.
B)correlation analysis.
C)focus groups.
D)regression analysis.
E)conjoint analysis.

Question 46

Starbucks expects China to become its biggest market.

Question 47

If a consumer considered four attributes to be important in the purchase of a TV, by using _____ the researcher might be able to determine the trade-offs between the different product attributes (such as purchase price or number of channels that could be received) when the consumer evaluated the alternatives for eventual purchase.

A)chi-square
B)correlation analysis
C)focus groups
D)regression analysis
E)conjoint analysis

Question 48

Historically, U.S.car sales in Japan have been fairly well.

Question 49

The waterfall strategy of sequential entry is preferable over the sprinkler model when:

A)the lifecycle of the product is relatively short.
B)there are low costs of entry into the market.
C)there are many competitors.
D)there are weak local competitors.
E)fast growth is anticipated.

Question 50

To harvest the benefits of metanational innovators, a company must pursue three things:

A)Prospecting, assessing, and mobilizing.
B)Prospecting, assessing, and delivering.
C)Prospecting, assessing, and running.
D)Prospecting, assessing, and planning.
E)none of the above.

Question 51

The sprinkler strategy of one to two entries (globally) is preferable over the waterfall model when:

A)the lifecycle of the product is relatively long.
B)high costs of entry are present.
C)very weak local competitors exist.
D)fast growth is anticipated.
E)no real competitors exist.

Question 52

The chief reason for a company choosing the sprinkler method of new product introduction is to off-set:

A)rising costs.
B)unstable labor.
C)competitive preemption.
D)government control.
E)shoddy promotions.

Question 53

The waterfall strategy of sequential entry is preferable over the sprinkler model when all of the following conditions exist except:

A)the lifecycle of the product is relatively long.
B)high costs of entry are present.
C)very weak local competitors.
D)anticipation of fast growth.
E)no real competitors.

Question 54

Countries exhibiting a slow takeoff and limited influence on other countries, but susceptible to foreign influences are ideal for later entry.In Asia, a country that does not meet this profile is:

A)Singapore
B)India
C)Pakistan
D)Japan
E)China meet this profile.

Question 55

The starting premise of _____ is that people make trade-offs between the different product attributes when they evaluate alternatives (or brands) from which they pick a choice.

A)chi-square
B)correlation analysis
C)focus groups
D)regression analysis
E)conjoint analysis

Question 56

Conjoint analysis is also referred to as _____.

A)geometric analysis
B)trade-off analysis
C)meta analysis
D)longitudinal analysis
E)metric analysis

Question 57

If a company wishes to test market the product in a small, highly innovative country, the best choices would not be:

A)Sweden
B)Switzerland
C)the Netherlands
D)South Korea
E)The U.S.

Question 58

_____ are not always desirable; in many industries, consumers don't want to be left behind.

A)Sprinkler rollouts
B)Shotgun rollouts
C)Staggered rollouts
D)Dribble rollouts
E)Waterfall rollouts

Question 59

With the approach known as _____, there is a phased rollout.

A)sprinkler method
B)shotgun method
C)rifle method
D)dribble method
E)waterfall method

Question 60

A prime motive for the waterfall model (in introducing new products on a global scale) is that adaptation of the marketing strategy for the host market is:

A)impractical.
B)very expensive.
C)time consuming.
D)promotionally limited.
E)not supported by top management.

Question 61

Overstandardization is a risk of the core-product approach to introducing new products in the world market.

Question 62

The lead country is where the product is introduced first.

Question 63

It is relatively uncommon for consumer taste and preferences to vary substantially across countries.

Question 64

Local market circumstances do not favor the case of product adaptation.

Question 65

Mobility is the ease with which members of one class can move around and interact with other classes.

Question 66

In some categories, consumers search for the same kind of functional benefits around the world.

Question 67

Due to low wages from local businesses, it is usually fairly easy for multinationals to keep highly talented local managers.

Question 68

Cosmopolitans are oriented more toward their immediate social system.

Question 69

For many product categories, consumer needs are very similar across countries.

Question 70

A modular product design strategy is a strategy that allows firms to modify their product while keeping many of the benefits flowing from a uniform product policy.

Question 71

In markets with strong local players, the pressure to copy the local players is usually intense.

Question 72

Standardization means offering a uniform product on a regional or worldwide basis.

Question 73

The goal of standardization is to minimize competition.

Question 74

In many industries, being innovative is not enough to be competitive.

Question 75

By sticking with its first-world version, a firm does a better job of satisfying its local customers.

Question 76

In general, the adoption of new products is driven by individual differences, personal influences, and product characteristics.

Question 77

Lowering marketing and distribution costs are in many cases the key drivers behind standardization moves.

Question 78

The process of changing the product in those areas where the firm has no discretion (the "musts") is known as adapting.

Question 79

In some markets, to enable three or more people to ride on one bike, Piaggio lengthened the seats of its scooters.

Question 80

It is not uncommon for new products that were phenomenally successful in one country or region turn out to be flops in other markets.