Deck 10: Global Product Strategies

Question 1

Product warranty has to be decided on a country-by-country basis based on usage,maintenance,and level of sophistication.

Answer 1

True

Question 2

Motion pictures are reaching foreign markets later than they used to because of the decision by studios to translate them into many foreign languages.

Answer 2

False

Question 3

Mandatory adaptations are necessary for the product to be sold in the local market.

Answer 3

True

Question 4

The goal of a global product development team is to develop totally standardized products for all markets.

Question 5

The global core of a product allows firms to take advantage of economies of scale.

Question 6

The global core of a product never exceeds 50 percent.

Question 7

Incompatible national standards both help and hurt global competitors.

Question 8

Incompatible national standards aid in globalization of the product.

Question 9

Differences in the marketing environment,climatic conditions,and disposable income require special adaptations in product packaging.

Question 10

A modular approach to product design helps companies realize economies of scale in manufacturing.

Question 11

ISO 9000 ensures that an organization can consistently deliver a product or service that satisfies customers' requirements because the company follows a state-of-the-art environmental management system.

Question 12

Global products include a portion of the final design that is standardized and retain some flexibility to tailor the end product to the needs of individual markets.

Question 13

The lead markets for a given industry never change.

Question 14

French wine growers in the Bordeaux region abandoned tradition and reformulated their wines to adapt to global tastes.

Question 15

Even when other design features require no modification,product size and dimensions may need adaptation based on local preferences and laws.

Question 16

Internet firms are good examples of companies that do not need to adapt products to different cultures.

Question 17

Firms from outside the European Union may be eligible to use the EU Certification Symbol,CE.

Question 18

Standardizing products across markets helps realize economies of scale in manufacturing.

Question 19

Changing the color of a product to appeal to local tastes is a discretionary adaptation.

Question 20

Fragmentation of lead markets has led to a proliferation of product development centers.

Question 21

Changing the design of electrical gadgets so that they work with different voltages is an example of

A)discretionary adaptation.
B)mandatory adaptation.
C)mandatory standardization.
D)discretionary standardization.

Question 22

As a source for new products,Indian software companies have acquired software companies in the United States.

Question 23

You should always test market a product in the country where it will be launched.

Question 24

Unless they are in a lead market,foreign subsidiaries do not become involved in research and development.

Question 25

China now ranks number 5 in patent applications.

Question 26

China now ranks number 1 in patent applications.

Question 27

Multinational firms invest in research facilities abroad in order to access scientific talent in other countries and attain input from key markets.

Question 28

Products are sometimes standardized across markets

A)to achieve economies of scale in production.
B)because of short product life cycles.
C)due to high development costs.
D)All of the above.

Question 29

Licensing is beneficial for firms that have few funds for research and development.

Question 30

Japanese companies have often licensed technologies from lead markets.

Question 31

A contributor is a subsidiary that adapts some products in small but important markets.

Question 32

Concept testing is done only in domestic markets.

Question 33

Many top multinational companies stay away from lead markets due to excessive competition.

Question 34

Air conditioner manufacturers for the Saudi Arabian market are forced to adapt their product due to differences in

A)state laws.
B)infrastructure.
C)climate.
D)All of the above.

Question 35

Which is not a benefit of standardization of products?

A)Fast global roll-outs are possible.
B)Consumer perceptions of a global brand may be enhanced.
C)Product costs may be decreased by varying local inputs.
D)Lower input costs may be achieved through volume purchasing.

Question 36

At the concept-testing stage,products only need to be tested in the home market.

Question 37

In the future,foreign subsidiaries are less likely to be involved in new product development.

Question 38

China now ranks number 2 in patent applications.

Question 39

Launching a product in Belgium could serve as a test market for other European countries.

Question 40

Many Western firms have opened research and development facilities in China.

Question 41

The movie "How the Grinch Stole Christmas" is an example of a(n)____ product.

A)standardized
B)adapted
C)global
D)universal

Question 42

Which of the following qualifies as a generic management system standard?

A)ISO 9000
B)ISO 14000
C)Both a and b
D)None of the above

Question 43

Groups such as Canadian Standards Association formulate standards

A)to assure buyers of a stated level of product quality.
B)that do not assure buyers of any quality level.
C)to generate profits.
D)for military equipment.

Question 44

The ISO is responsible for coordinating the setting of global standards for

A)film speed codes.
B)banking codes.
C)freight containers.
D)All of the above.

Question 45

The global core of a product is the

A)triad markets.
B)major markets where the product is sold.
C)markets involved in a global roll-out.
D)percent of the product that is standardized worldwide.

Question 46

EU standards are generally considered to be ____ than U.S.standards

A)stricter
B)more lenient
C)on-par
D)None of the above

Question 47

When discount shoe retailer Payless entered the Middle East market,it

A)decreased its line of women's high heels by 50 percent.
B)increased its line of men's sandals by 100 percent.
C)introduced baby shoes for the first time in a foreign market.
D)All of the above.

Question 48

Which adaptation was NOT made to an Arabized version of The Simpsons?

A)Homer didn't frequent bars
B)Homer didn't eat bacon
C)Homer drank soft drinks
D)Bart became a more respectful son

Question 49

BMW had to modify its cars for the Japanese consumer to meet

A)higher quality requirements of Japanese consumers.
B)lower quality requirements of Japanese consumers.
C)higher quality requirements of the Japanese government.
D)lower quality requirements of the Japanese government.

Question 50

Typically,appliances designed for the Japanese market are ____ compared to those designed for the U.S.market.

A)larger
B)smaller
C)more colorful
D)less colorful

Question 51

Global products are those

A)whose design is fully adapted for each market.
B)whose design is fully standardized.
C)that have a portion of their design standardized and the rest is adapted.
D)None of the above.

Question 52

Which of the following may have to be altered as a discretionary adaptation?

A)Color
B)Scent
C)Sound
D)All of the above

Question 53

Most companies prefer to locate their research and development centers in their domestic markets because of

A)integration of R&D with marketing strategies.
B)proximity to their head office.
C)their experience in the home markets.
D)All of the above.

Question 54

A market whose level of development exceeds that of other countries and sets a pattern for other countries is called a(n)____ market.

A)lead
B)standard
C)must-win
D)home

Question 55

Products that contain standard modules that can be easily connected with other standard modules are said to have a(n)____ design.

A)insular
B)modular
C)variable
D)standardized

Question 56

A global product is one in which

A)all aspects of the product are standardized.
B)almost all aspects of the product are standardized with some (but very few)adaptations made for local markets.
C)a portion of the final design is standardized.
D)the branding is standardized across markets.

Question 57

Product sizes and dimensions are sometimes adapted based on

A)the sizes of houses.
B)physical characteristics of consumers.
C)disposable incomes.
D)All of the above.

Question 58

Warranties for a product may vary country to country due to

A)local competition.
B)the stress the product is subjected to.
C)the technical sophistication of the market.
D)All of the above.

Question 59

ISO 14000 is a generic management system standard concerned with

A)quality assurance.
B)military management.
C)transportation management.
D)environmental management.

Question 60

A modularized approach for products is widely used in which of the following industries?

A)Cosmetics
B)Automobile
C)Fishing
D)Tourism

Question 61

Henkel,a German consumer packaged goods company,decides to produce laundry detergents whose brands and formulations are custom-tailored to each market in which it operates.Which of the following is a benefit of this decision to adapt this product line?

A)Product costs may be decreased by varying local inputs.
B)Modified products may perform better under different use conditions.
C)Product costs may be decreased by eliminating unnecessary product features.
D)All of the above.

Question 62

For a new product launch in the United States,test marketing should be done in

A)only the United States.
B)the United States or Canada.
C)all major markets where the product will eventually be sold.
D)Brazil.

Question 63

A French court required Yahoo! to block French users from accessing Nazi memorabilia on its U.S.-based website.This is an example of a(n)____ product adaptation.

A)discretionary
B)heterogeneous
C)mandatory
D)modular

Question 64

Licensing of foreign technology is a good option for companies

A)in a lead market.
B)that have limited funds for R&D.
C)in markets with high inflation rates.
D)in markets with exchange rate fluctuations.

Question 65

Multinational companies set up research and development facilities in many markets to

A)utilize the scientific talent in that country.
B)observe developments and estimate demand.
C)manage political risk.
D)Both a and b

Question 66

A highly competent subsidiary in a market of strategic importance that is responsible for developing a new range of products to be used by the entire company is a(n)

A)lead marketer.
B)contributor.
C)strategic leader.
D)implementer.

Question 67

Companies often acquire other companies to

A)gain access to new technologies.
B)hide their losses.
C)hide their profits.
D)None of the above.

Question 68

Proctor and Gamble's Cheer laundry detergent is typically promoted in international markets as an all-temperature detergent.But when Proctor and Gamble entered into the Japanese market,they discovered that Japanese consumers wash their clothes in cold tap water and they add fabric softeners to decrease the suds produced by detergents.Proctor and Gamble reformulated Cheer to work more effectively in cold water with fabric softeners added and changed its positioning to superior cleaning in cold water.Which of the following is a benefit of this decision to adapt the Cheer product?

A)Products may perform better under different use conditions
B)Lower costs of manufacturing due to economies of scale
C)Fast global product roll outs
D)All of the above

Question 69

Firms should not pursue importing as a source of new products if the product is a(n)____ product.

A)consumer
B)core
C)industrial
D)standardized

Question 70

Increasingly,multinational corporations test market a single new product in

A)the home market only.
B)one or two countries.
C)between 20 and 30 countries.
D)more than one hundred countries.

Question 71

Kodak's Pocket Camera is an example of a

A)modularized product.
B)global roll-out.
C)product launched in a foreign subsidiary before the firm's home market.
D)strategic leader.

Question 72

Ford decides to make several product adaptations to its Fiesta model before producing it for sale in the Indian market.One of these changes includes making shock absorbers tougher so that they could withstand India's potholed streets.Which of the following is a benefit of this decision to adapt the Fiesta product line?

A)Lower costs of manufacturing due to economies of scale
B)Fast global product rollouts
C)Greater performance of the product due to infrastructure differences
D)All of the above

Question 73

Wal-Mart decides to sell the same jeans in all its retail locations throughout the world.Which of the following is a benefit of this decision to standardize this product line?

A)Lower costs of manufacturing due to economies of scale
B)Decreased product costs due to varying local inputs
C)Greater sales revenues attained by responding to local cultural preferences
D)All of the above

Question 74

When Ford brought its Fiesta model into the Indian market,the product design team made several product adaptations.Since many women wear saris,or long flowing dresses,in India they made the doors open wider to make it easier for them to get in and out of the car.This is an example of a(n)____ product adaptation.

A)discretionary
B)heterogeneous
C)mandatory
D)modular

Question 75

China now ranks number ____ in patent applications.

A)1
B)2
C)5
D)12

Question 76

The European Union (EU)requires that all clothing entering into the EU should include a care label informing consumer how to wash the garment.Lesotho,a small country in Southern Africa,produces basic clothing products;most of the Lesotho exporters do not include care labels in their clothing.A Lesotho clothing exporter would have to make a(n)____ product adaptation if they want to export their garments to the EU.

A)discretionary
B)heterogeneous
C)mandatory
D)modular

Question 77

To share the huge cost of developing new products,some companies have established or joined ____ where member firms join in a working relationship without forming a new entity.

A)acquisitions
B)mergers
C)joint ventures
D)consortiums

Question 78

Before exporting into a new country,GlobalNOW!,a Canadian consumer packaged goods company,always consults first with the ____,a federation of national standards organizations from 140 countries.

A)Global Standards Consortium
B)International Standards Organization
C)World Standards Union
D)Homogeneous Earth Conglomerate

Question 79

Subjecting a new creation to a series of tests in actual use conditions in order to determine commercial feasibility is known as

A)test marketing.
B)market testing.
C)concept testing.
D)quality assurance.

Question 80

Estée Lauder,a global cosmetics and skin care company,decides to standardize its cosmetics throughout the world.Which of the following is a benefit of this decision to standardize these product lines?

A)Decreased product costs due to varying local inputs
B)Fast global product rollouts
C)Greater sales revenues attained by responding to local cultural preferences
D)All of the above