Deck 10: International Product and Service Strategies

Question 1

The Freeplay Energy with its windup radio is an example of a marketing-focused company.

Answer 1

False
The Freeplay Energy with its windup radio is an example of a product-focused company. The windup radio was created without discussing it with consumers. For this reason the product failed in Africa.

Question 2

The first step in the new product development process is to conduct a conjoint analysis.

Answer 2

False
The first step in the new product development process is idea generation. Realistically, a conjoint analysis can only be performed after idea generation.

Question 3

Most product and service firms are driven by the production concept.

Answer 3

False
Most product and service firms are driven by the marketing concept. The marketing concept focuses on consumers' needs, wants and desires. The production concept, leads to the creation of products that consumers may not want, need or desire.

Question 4

The growth stage of the IPLC is characterized by a leveling of profits and a slowdown in sales growth as the product is adopted by most target consumers.

Question 5

The initial International Product Life Cycle addressed four levels of country development.

Question 6

The growth stage is characterized by increasing competition and new product variants being offered to the market.

Question 7

The maturity stage of the IPLC is characterized by a decline in sales growth.

Question 8

The product portfolio of a firm is usually diversified into products that are in different stages of the product life cycle.

Question 9

In order to quickly recover the high costs of product development and launching, products are marketed to consumers in emerging markets.

Question 10

The product mix is the total number of product lines the company offers.

Question 11

In the growth stage of the IPLC, manufacturing moves abroad, and the product is imported to the home country and other industrialized countries.

Question 12

Production is moved to low-cost countries in the maturity stage of the product life cycle.

Question 13

At the end of the growth stage of the IPLC, the product is standardized.

Question 14

The product depth refers to the number of different offerings for a particular brand.

Question 15

During the introduction stage of the IPLC, products are developed in industrialized countries.

Question 16

The product width is the total number of brands in the product mix.

Question 17

One of the main benefits of going international and engaging in international marketing is the ability of a firm to extend the product life cycle.

Question 18

Products are usually developed in emerging markets, characterized by a high level of education and lower labor costs than industrialized countries.

Question 19

Having an international presence during the decline stage of the IPLC, particularly in developing countries, is important.

Question 20

Manufacturing moves to developing countries in the growth stage of the IPLC.

Question 21

Competition limits the ideas for new products or services.

Question 22

To be successful, a new product must be compatible with the needs of consumers.

Question 23

To be successful, a new product or service must offer a relative advantage compared with the other offerings available on the market.

Question 24

Continuous innovations cause a great deal of disruption for consumers and often involve new industries or new standards of management.

Question 25

A new product or service must be observable (or communicable to others) and have a high trialability.

Question 26

At the idea-generation stage, a checklist is usually developed to screen for product ideas that do not meet these criteria.

Question 27

Continuous innovations create new industries or new standards of management, manufacturing and servicing.

Question 28

Endoscopic surgery is an example of a radical innovation.

Question 29

The most important factor of an international product launch is often high service quality.

Question 30

Controlled test marketing is usually conducted by a research firm in an industrialized country.

Question 31

The later the product or service is introduced in a lag country, the faster the adoption rate.

Question 32

Multinational companies usually limit test marketing to their home countries.

Question 33

Most of the innovation taking place today is discontinuous.

Question 34

Generally, the diffusion rate tends to be faster in "lag" countries.

Question 35

New items in an existing product line for a company are likely to have the higher success rate than "new to the world" type products.

Question 36

Conjoint analysis is typically used in the business analysis stage of new product development.

Question 37

Simulated test marketing is open to competitive sabotage.

Question 38

Countries where the product or service is first introduced and adopted are referred to as lag countries, and countries where the product or service is adopted at a later stage are known as lead countries.

Question 39

In the process of screening new product ideas, it is best to consider both the extent to which the product fits with the target consumers, as well as with the overall mission of the organization.

Question 40

Nine out of ten new products fail.

Question 41

Which stage of the international product life cycle is usually the longest stage?

A)Introduction
B)Growth
C)Maturity
D)Decline

Question 42

Which of the following is not considered to be unfavorable in the new product screening process?

A)Targeting new customers
B)Using new channels
C)Meeting new service requirements
D)All of the above are unfavorable.

Question 43

Which stage of the product life cycle is characterized by a rapid increase in competition?

A)Introduction
B)Growth
C)Maturity
D)Decline

Question 44

In which stage of the product life cycle are products likely to be imported to the home country from the firm's foreign operations?

A)Introduction
B)Growth
C)Maturity
D)Decline

Question 45

The complete assortment of the products that a company offers to its target international consumers is the

A)product width.
B)product mix.
C)product depth.
D)product assortment.

Question 46

Which stage of the product life cycle is characterized by the introduction of new product variants?

A)Introduction
B)Growth
C)Maturity
D)Decline

Question 47

The total number of product lines that the company offers is the:

A)product length.
B)product width.
C)product depth.
D)product assortment.

Question 48

In which stage of the product life cycle are products most likely to be developed in industrialized countries?

A)Introduction
B)Growth
C)Maturity
D)Decline

Question 49

The total number of products in a product line is known as the

A)product length.
B)product width.
C)product depth.
D)product assortment.

Question 50

Lipton tea comes in at least three variants: Lipton Yellow Label, Lipton Ice Tea, and Lipton Brisk. This is an example of:

A)product length
B)product width
C)product depth
D)product variety

Question 51

Which stage of the international product life cycle is characterized by a leveling of profits and a slowdown in sales growth?

A)Introduction
B)Growth
C)Maturity
D)Decline

Question 52

In which stage of the product life cycle are standards likely to be established?

A)Introduction
B)Growth
C)Maturity
D)Decline

Question 53

Which of the following is not an example of a bridge offering?

A)Escada
B)Ann Klein II
C)DKNY
D)Emporio Armani

Question 54

The extent to which the different product lines are related, use the same distribution channels, and have the same final consumers is known as

A)product length.
B)product consistency.
C)product depth.
D)product assortment.

Question 55

During which stage of the international product life cycle do international sales become crucial for the firm?

A)Introduction
B)Growth
C)Maturity
D)Decline

Question 56

The first step in the new product development process is:

A)competitive analysis.
B)idea generation.
C)screening new product ideas.
D)business analysis.

Question 57

At which stage of the international product life cycle does manufacturing typically move to developing countries?

A)Introduction
B)Growth
C)Maturity
D)Decline

Question 58

Haagen Dazs' idea to introduce its Dulce de Leche ice cream in the United states came from which source?

A)Consumers
B)Competition
C)Channel members
D)Consultants

Question 59

Toward the end of which stage of the product life cycle does the firm focus on developing economies of scale?

A)Introduction
B)Growth
C)Maturity
D)Decline

Question 60

Which of the following is not a level of country development in international product life cycle theory?

A)Developing or middle-income
B)Less-developed or low-income
C)Advanced, developed, or high-income
D)Each of the above is part of the IPLC theory.

Question 61

In which stage of product development does the company have a good indication of how the product will be received?

A)Product screening
B)Concept development
C)Product design
D)Test marketing

Question 62

Which type of innovation is known to create new industries?

A)Continuous innovation
B)Discontinuous innovation
C)Dynamically continuous innovation
D)Congruous innovation

Question 63

In which stage of product development are prototypes developed?

A)Product screening
B)Concept development
C)Product design
D)Test marketing

Question 64

What form of innovation is the most prominent for of innovation today?

A)Continuous innovation
B)Discontinuous innovation
C)Dynamically continuous innovation
D)Congruent innovation

Question 65

Which of the following takes place in the product design and development stage?

A)Product acquires a name
B)Product acquires a brand identity
C)The marketing mix is developed
D)All of the above occur during the product design and development stage

Question 66

Which form of test marketing recruits a sample of consumers to participate in a research study in a central facility?

A)Controlled test marketing
B)Full test marketing
C)Simulated test marketing
D)All of the above

Question 67

Which type of "new" product has the highest success rate?

A)New to existing market
B)New line
C)New item in an existing product line
D)New product to the world

Question 68

Which type of innovation is best represented by the development of cellular telephones?

A)Radical innovation
B)Continuous innovation
C)Dynamically continuous innovation
D)Congruent innovation

Question 69

Which type of country is most likely to be a "lead" country in terms of product diffusion?

A)An industrialized, high-income country.
B)A middle-income country.
C)A low-income country.
D)An underdeveloped country.

Question 70

In which stage of product development companies need to consider both the extent to which the product fits with the target consumers, as well as with the overall mission of the organization?

A)Product screening
B)Concept development
C)Product design
D)Test marketing

Question 71

Which type of innovation has no disruption on consumption patterns?

A)Continuous innovations
B)Discontinuous innovations
C)Dynamically continuous innovations
D)Radical innovations

Question 72

Which form of test marketing is likely to reveal the least amount of information to potential competitors?

A)Controlled test marketing
B)Full test marketing
C)Simulated test marketing
D)Quasi test marketing

Question 73

Which type of innovation does not significantly alter consumer behavior, but does represent a change in the consumption pattern?

A)Continuous innovation
B)Radical innovation
C)Dynamically continuous innovation
D)Congruent innovation

Question 74

Which of the following is likely to slow the rate of product diffusion?

A)A relative advantage
B)Compatibility with consumer needs
C)Trialability
D)Complexity

Question 75

In which stage of product development does the product typically acquire a name?

A)Competitive analysis
B)Concept Development
C)Product Design
D)Test Marketing

Question 76

Regarding goodness of launch, which is the correct order of impact?

A)High service quality, quality sales force, on-time shipment, and quality of promotion.
B)Quality of promotion, adequate product availability, on-time shipment, and high service quality.
C)Product availability, promotional effort, on-time shipment, and quality sales force.
D)High service quality, on-time shipment, adequate product availability, and quality of promotion.

Question 77

Which form of test marketing is likely to reveal the most amount of information to potential competitors?

A)Controlled test marketing
B)Full test marketing
C)Simulated test marketing
D)Quasi test marketing

Question 78

Which of the following is not a test marketing system mentioned in the text?

A)LITMUS
B)ASSESSOR
C)BASES
D)CYPHER

Question 79

In which type of country does the diffusion rate tend to be faster?

A)Lead countries
B)Lag countries
C)Asian countries
D)Western countries

Question 80

In which stage of product development does the product acquire a brand identity?

A)Product screening
B)Concept development
C)Product design
D)Test marketing