Deck 9: Products and Services: Branding Decisions in International Markets

Question 1

In terms of branding, the country of origin could be where the product is manufactured or where the company headquarters are located.

Answer 1

True
Country of origin is defined as the country with which a particular product or service is associated, which could be the country of manufacture or the country where the headquarters of the company are located.

Question 2

Modular adaptation is the standardizing of the core product (or service), but allowing for easy modification from market to market.

Answer 2

False
A core product strategy is the standardizing of the core product (or service), but allowing for easy modification from market to market. Modular adaptation involves the offering of parts (i.e., modules) that can be assembled worldwide in different configurations.

Question 3

Ethnocentric consumers believe that consumers who purchase foreign products are worthy of contempt.

Answer 3

True
Ethnocentric consumers believe that purchasing imported products hurts the economy, causes loss of jobs, and is unpatriotic, and consumers purchasing foreign products are worthy of contempt.

Question 4

The country of manufacture could be where the product is manufactured or where the company headquarters are located.

Question 5

According to marketing experts, the idea of marketing a standardized product with a uniform marketing plan around the world remains purely theoretical.

Question 6

Consumers in developing, low-income countries typically evaluate their own-country products as inferior to products from developed, high-income countries.

Question 7

Philips' appliances are associated with the Netherlands even when they are manufactured in Asia.

Question 8

Ethnocentrism may exist at both the individual consumer level or the aggregate societal level.

Question 9

A global brand has the same logo, image and positioning everywhere in the world.

Question 10

Unlike British consumers, French consumers perceive most store brands to be inferior to national brands.

Question 11

In the United Kingdom, private labels are perceived to be of inferior quality.

Question 12

Although standardization is an important element of a global strategy, standardization is less important for product research and development due to the unique nature of R&D.

Question 13

Regional market integration such as MERCOSUR promote regional standardization strategies.

Question 14

International travel is an argument for globalization.

Question 15

Haagen Dazs' Japanese offering of Royal Milk Tea ice cream is an example of forced local mandatory adaptation.

Question 16

The lower the level of economic and market development, the less the product needs to be changed to serve the needs and demands of the market.

Question 17

The CPA exam is an example of a nontariff barrier to entry.

Question 18

In France, private labels are perceived to be of inferior quality.

Question 19

Global standardization reflects a polycentric orientation.

Question 20

United States consumers believe that Swiss chocolate is superior to other chocolate and Russian caviar is superior to other caviar. This is an example of consumer ethnocentrism.

Question 21

Studies have shown that a large proportion of consumers are likely to select a counterfeit apparel item over a genuine good when there is a price advantage.

Question 22

Japanese consumers expect special treatment in a medical environment, which is consistent with the Japanese preference for a greater degree of service personalization.

Question 23

Because counterfeiters evade taxes, local governments are swift to crack down on product pirates.

Question 24

European consumers tend to be very brand-name conscious, and are especially loyal to top brands.

Question 25

Because Kent cigarettes were viewed as a commodity before the fall of communism, it has been difficult for Kent cigarettes to maintain its market share in Romania.

Question 26

Unlike industrial products, in marketing of consumer products culture plays an important role.

Question 27

Copying designs or scents is quite common and risk free.

Question 28

Service barriers represent a manifestation of ethnocentrism.

Question 29

Quite frequently, not even the manufacturer can tell the difference between the original product and a counterfeit product.

Question 30

Demand for industrial products is derived from demand for consumer products and thus is much more volatile.

Question 31

Yiwu, a city five hours from Shanghai, China, is cracking down on counterfeit products and offers some home for Western firms operating in China.

Question 32

In international management, the decision to purchase industrial products rests with local management.

Question 33

Company or government policies that provide implicit or explicit preference for a domestic supplier make it difficult for international service providers to survive.

Question 34

Microsoft included holograms on its software boxes in an attempt to prevent software piracy.

Question 35

Businesses purchase land, buildings, and goods for resale.

Question 36

Consumers from more collectivist cultures, such as Latin American and Asian consumers, tend to prefer brand new Western brands and purchase them in the early introduction stage.

Question 37

Unlike products, which frequently must adapt to a foreign culture, services are not often affected by cultural factors.

Question 38

The world insurance centers are Hong Kong, Tokyo, and Paris.

Question 39

Multinational companies can do very little to combat counterfeiting.

Question 40

Brand-name counterfeiting is quite common and risk free.

Question 41

Mercedes-Benz is a brand that appears to follow a

A)globalization strategy.
B)regional standardization strategy.
C)global localization strategy.
D)private label strategy.

Question 42

Volvo uses a

A)global standardization strategy.
B)regional standardization strategy.
C)modular adaptation strategy.
D)core product strategy.

Question 43

Which of the following is an example of mandatory adaptation?

A)Nestle offering drinkable fruit yogurt in the United Kingdom.
B)Weight Watchers offering consumers in France Mousse Legeres in two different four-pack combinations.
C)Haagen Dazs adding green ice tea to its product line in Japan.
D)Hershey's eliminated alcohol in its chocolates in Saudi Arabia.

Question 44

Which statement regarding country-of-origin information is false?

A)The country-of origin-may be the country in which the headquarters is located even if the product is manufactured in another country.
B)Consumers from low-income countries tend to evaluate own-country products more favorably that products from other countries.
C)Country-of-origin information acts as a surrogate for product quality.
D)Country-of-origin information constitutes a product trait that is external to the product itself.

Question 45

Which of the following is a recognized product-country stereotype?

A)Swiss chocolate
B)Russian caviar
C)Israeli oranges
D)All of the above are product-country stereotypes.

Question 46

____ is frequently used to describe the practice of global branding and localized marketing adaptation.

A)Modular adaptation
B)Regional Standardization
C)Glocalization
D)Global modification

Question 47

Which statement regarding product adaptation is true?

A)The lower the level of economic development, the more the product needs to be changed.
B)The higher the level of economic development, the more the product needs to be changed.
C)Designing NTSC VCRs in the U.S. is an example of non-mandatory adaptation.
D)McDonald's offering of beer and wine in Europe is an example of mandatory adaptation.

Question 48

Which of the following is not a factor encouraging global standardization?

A)Global consumers
B)International travel
C)Consumer preference for higher quality and lower price
D)Modular adaptation

Question 49

Consumers' interests and product/service-related needs are becoming

A)more homogenous.
B)more heterogeneous.
C)less price sensitive.
D)more ethnocentric.

Question 50

Which of the following is an example of mandatory adaptation?

A)McDonald's offering mutton burgers in India.
B)GE offering hairdryers that use 220 volts in Great Britain.
C)Haagen Dazs offering Royal Milk Tea ice cream in Japan.
D)All of the above are examples of mandatory adaptation.

Question 51

Which of the following is not true regarding standardization of research and development?

A)Standardization of research and development leads to economies of scale.
B)Research & development coordination gives a firm flexibility.
C)Coordination of research and development is inexpensive.
D)All of the above are true.

Question 52

Regarding private label brands, retailers compete primarily through

A)price
B)quality
C)image
D)promotion

Question 53

What is the main reason that Mercedes-Benz pursues a different strategy in the U.S. compared to the other markets in which it operates?

A)The U.S. culture appeared to need a non-mandatory adaptation.
B)Mercedes had to fight gray marketing channels.
C)Coordination of research and development proved to be too expensive in the U.S. market.
D)The product-country stereotype worked against Mercedes in the U.S. market.

Question 54

Which of the following is true regarding a global brand?

A)A global brand uses the same name throughout the world.
B)A global brand uses the same logo worldwide.
C)A global brand uses the same positioning everywhere in the world.
D)All of the above are true statements.

Question 55

Which of the following is an example of a non-tariff entry barrier?

A)Non-mandatory adaptation
B)Country stereotypes
C)The CPA exam
D)Glocalization

Question 56

Nike, which has traditionally utilized local warehousing to supply retailers, is currently attempting to replace more than 20 national warehouses in Europe with one single distribution center located in Belgium. This is an example of

A)global standardization
B)regional standardization
C)global localization
D)glocalization

Question 57

Ethnocentric consumers believe that purchasing imported goods

A)is morally wrong.
B)causes loss of jobs
C)is unpatriotic
D)All of the above are true.

Question 58

Global standardization reflects a

A)geocentric orientation.
B)regiocentric orientation.
C)local adaptation orientation.
D)polycentric orientation

Question 59

Which of the following is not true regarding a global brand?

A)A global brand uses the same name throughout the world.
B)A global brand has different logos in different markets.
C)A global brand uses the same positioning everywhere in the world.
D)All of the above are true statements.

Question 60

According to the text, which strategy does McDonald's employ?

A)Global standardization
B)Regional standardization
C)Global localization
D)Ethnocentric modification

Question 61

National governments

A)Can restrict the company, requiring it to only employ local service suppliers
B)Can require that service providers have local licenses
C)Can prevent the company from using the most cost-effective approach to service
D)All of the above are true

Question 62

What is usually the first step for a firm trying to combat counterfeiting?

A)Lobbying the government involved.
B)Changing the product's appearance.
C)Raiding counterfeit operations.
D)Educating the public on counterfeits.

Question 63

Which of the following is true about the ISO 14000 certification?

A)It discourages multinationals from engaging in hazardous environmental practices.
B)It ensures that quality products are delivered to customers.
C)It ensures that the products or services satisfy customer requirements.
D)All of the above are true about ISO 14000 certification.

Question 64

In Cairo, one can purchase simple, cotton shirts with the name Christian Dior on the label for about a dollar. This is an example of

A)design counterfeiting.
B)brand-name counterfeiting.
C)piracy.
D)diversion.

Question 65

Culture plays an important role in services. Which statement regarding medical services is inaccurate?

A)Japanese consumers expect special treatment in a medical environment.
B)Medicine is perceived as a public good in Japan.
C)Japanese patients expect doctors to be rude.
D)U.S. consumers prefer a greater degree of service personalization.

Question 66

Unlike the marketing of consumer products, industrial products

A)Have geographic concentrations.
B)Have derived demand.
C)Decision to purchase products rests with management.
D)All of the above.

Question 67

Which world region has most of the ISO 9000 certificates?

A)Africa and West Asia
B)The Far East
C)North America
D)Europe

Question 68

Which of the following statements regarding cultural effects on brands is true?

A)Consumers from more collectivist cultures, such as Asian consumers, tend to prefer new, innovative brands in the introductory stage.
B)European consumers tend to be price sensitive and not brand sensitive.
C)In European urban areas, high-priced designers such as Prada And Diesel jeans are common among middle and upper-middle class consumers.
D)All of the above are true.

Question 69

How did Budwieser beer combat counterfeiting?

A)It increased control of its distribution channel.
B)It successfully lobbied the WTO.
C)It worked with the Chinese government to conduct raids in Yiwu.
D)It altered its package, making it difficult to copy.

Question 70

Unknown perfume manufacturers suggest that their brand is similar in scent to a particular brand of perfume, which they name in there communication. This is an example of

A)design counterfeiting.
B)brand-name counterfeiting.
C)piracy.
D)diversion.

Question 71

Unlike the marketing of industrial products, for the marketing of consumer products

A)Culture plays a role.
B)Firms must be aware of norms, values and traditions in the target countries.
C)Decision to purchase products rests with management.
D)a and b only.

Question 72

Which of the following are not factors that influence counterfeiters' success?

A)Consumer factors
B)Technology factors
C)Managerial Factors
D)Distribution Factors

Question 73

Which of the following are not products that businesses typically purchase?

A)Nondurables
B)Land
C)Major equipment
D)Fabricated and component parts

Question 74

Which of the following is not an example of a cultural influence on a product?

A)Kent cigarettes hold a high market share in Romania because of its prestigious image before communism fell.
B)Fanta Citron is a preferred mixer for most hard liquor in Rwanda.
C)Jello is sold in a semi-gelled, instead of a powder format, in the U.K.
D)The U.S. limits the amount of sugar that may be imported.

Question 75

Which of the following certifications discourages multinationals from engaging in hazardous environmental practices?

A)ISO 9000
B)ISO 12000
C)ISO 14000
D)All of the above discourage hazardous environmental practices

Question 76

The world insurance centers are, among others,

A)New York, London, and Tokyo
B)Geneva, London and Munich
C)Hong Kong, Brussels and Paris
D)London, Paris, and Brasilia

Question 77

Which of the following is true about the ISO 9000 certification?

A)It discourages multinationals from engaging in hazardous environmental practices.
B)It ensures that corporate policies are efficiency oriented.
C)It ensures that the products or services satisfy customer requirements.
D)All of the above are true about ISO 9000 certification.

Question 78

What is the prevailing reason that counterfeit products are widely available in industrialized countries?

A)Industrialized governments are not motivated to crack down on piracy.
B)Customs officers only inspect the contents of a small fraction of the goods that go through customs.
C)Joint ventures in industrialized countries often lead to piracy.
D)All of the above are true.

Question 79

What has proven to be the most successful way to combat counterfeiting?

A)Lobbying the U.S. government as well as the governments involved.
B)Appealing to the World Trade Organization.
C)Altering the product or packaging to make copying difficult.
D)Launching raids with the cooperation of local governments.

Question 80

Which of the following is NOT true with regard to the international marketing of industrial products?

A)Cultural differences are not readily relevant
B)Firms must be especially aware of norms, values and traditions in the target countries
C)Decision to purchase products rests with management
D)The purchase process takes several months