Deck 10: Brand and Product Decisions in Global Marketing

Question 1

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.

Answer 1

C

Question 2

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.

Answer 2

D

Question 3

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.

Answer 3

C

Question 4

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

Question 5

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 6

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 7

Many American car buyers perceive Korean cars as:

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

Question 8

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

Question 9

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 10

Coca-Cola's contour bottle version helps consumers seek out the "real thing" is intended to differentiate Coke from other soft drinks.

Question 11

The American Automobile Labeling Act clarifies all of the following except:

A)country of origin.
B)final assembly point.
C)the percentages of the major sources of every car and truck.
D)information about car dealer.
E)aesthetic style.

Question 12

Packaging aesthetics are particularly important to the ________ consumer.

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

Question 13

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

Question 14

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.

Question 15

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 16

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.

Question 17

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 18

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 19

Intangible product attributes, include the status associated with product ownership, a manufacturer's service commitment, and a brand's overall reputation or mystique

Question 20

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 21

________ 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 22

As outlined by branding expert Kevin 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 23

U.S. executives working on the importance of aesthetics learnt that in Japan "a book is judged by its content."

Question 24

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

Question 25

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)"self-actualization" is the highest-order need in Japan as well as Western nations.
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 26

"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 27

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 28

A logo can be all of the following except:

A)Word Mark
B)Non-word Mark
C)Brand symbol
D)Brand equity
E)Trade Mark

Question 29

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 30

A global product meets the wants and needs of a global market, including the Triad which includes the following countries:

A)Brazil, Russia, and China.
B)Japan, Western Europe, and the United States.
C)China, the United States, and Europe.
D)China, India, and Brazil.
E)Japan, China, and Western Europe.

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

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 33

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 34

Example of a "brand symbol" includes 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 35

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-actualization

Question 36

Which of the following is not in the top five of the world's most valuable brands according to 2012 rankings?

A)Sony
B)Microsoft
C)Coca-Cola
D)GE
E)Nokia

Question 37

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-actualization

Question 38

________ 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 39

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 40

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 41

Robust economic growth and rising incomes mean that consumers in China, India, and other emerging markets can buy cell phones as status symbols.

Question 42

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.

Question 43

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

Question 44

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

Question 45

The decision to offer 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 46

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

Question 47

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

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

Question 48

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 49

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, combination branding, communication-branding, and brand extensions.

Question 50

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

Question 51

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

Question 52

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 53

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

Question 54

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 55

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

Question 56

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

Question 57

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

Question 58

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

Question 59

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

Question 60

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

Question 61

American Apparel is building a global brand on the positioning "Made in Downtown LA."

Question 62

To promote its Centrino wireless chip, Intel launched a global ad campaign that features different combinations of celebrities. These celebrities were chosen because they are widely recognized in the key world markets. This type of strategy is referred to as:

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

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

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 65

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

Question 66

Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using?

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

Question 67

Scotland's top export category is information technology.

Question 68

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 69

Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese consumers were not receptive to ads featuring the Campbell Kids and the "M'm M'm Good" slogan. This compelled Campbell's to develop ads featuring a talking soup can known as "Mr. Campbell." Campbell's also developed soup varieties for Japan with fish as the main protein source and spices that reflect local preferences. As described here, which of the following strategies has Campbell's used in Japan?

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

Question 70

A company that has developed a successful local product or brand cannot implement an adaptation strategy.

Question 71

Due to the European Commission's regulation, McDonald's can only give away soft plastic toys with its Happy Meals in Europe.

Question 72

Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the United States. This is an example of the ________ strategy.

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

Question 73

The extension strategy where the product remains virtually unchanged but extending it in markets outside the home country is known as "adaptation strategy."

Question 74

In Chinese markets, Nike had a problem using the "Just Do It" attitude which was found not to be appropriate. Finally, Nike decided to use Chinese athletes in their promotion. This type of adaptation was needed due to:

A)the Chinese do not wear running shoes.
B)ingrained Chinese values which respect authority.
C)Chinese athletes use Nike shoes.
D)"Just do it" in Chinese has a negative connotation.
E)parents do not want their children to see such ads.

Question 75

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 76

Which of the following consumer products companies experienced a major product failure in Europe due to inadequate test marketing?

A)Procter & Gamble
B)Colgate
C)Kao
D)Unilever
E)Seagram

Question 77

Hindustan Lever recently developed a hard candy flavored with natural fruit juice that it sells profitably in India for the equivalent of 1 cent per piece. This is Hindustan Lever's first-ever candy product. What strategy is evident here?

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

Question 78

Colgate's Total is a new toothpaste brand whose formulation, imagery, and consumer appeal were designed from the beginning to translate across national boundaries. Which strategy did Colgate use with Total?

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

Question 79

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

Question 80

Microsoft's Windows 7 operating system was launched in 2009 with the user-centric global advertising campaign keyed to the theme "I'm a PC, and Windows 7 was my idea." This is an example of the dual-extension strategy.