Deck 10: Brand and Product Decisions in Global Marketing

Question 1

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

Answer 1

True

Question 2

Coca-Cola, McDonald's, Singapore Airlines, Mercedes-Benz, and Sony are a few of the companies that have transformed local products and brands into global ones.

Answer 2

True

Question 3

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.

Answer 3

True

Question 4

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, in an express manner.

Question 5

A global brand has the same name and, in some instances, a similar image and positioning throughout the world.

Question 6

Many industry experts agree that packaging must engage the senses, make an emotional connection, and enhance a consumer's brand experience.

Question 7

Brand equity is an example of a tangible product attribute.

Question 8

Global brand is synonymous with global product and is often used interchangeably.

Question 9

India's Suzlon Energy has become a major player in the wind-turbine industry due to an inefficient and inconsistent power distribution system.

Question 10

Intangible product attributes includes a brand's overall reputation or mystique.

Question 11

Sony introduced Walkman first as "Soundabout." Two months later it went on sale in the United Kingdom as "Stowaway" and then came out as "Walkman." Thus, Sony managers found themselves losing sales because they had three different names for the same item.

Question 12

The "Intel Inside" campaign is an example of co-branding.

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 refrigerator's lower shelf and is convenient for use by global consumers.

Question 14

A brand is a complex bundle of images and experiences in the customer's mind.It is a promise by a particular company about a particular product.

Question 15

The basic human need to consume food and drink is not the same thing as wanting or preferring a Big Mac or a Coke.

Question 16

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

Question 17

Global brands are symbols of cultural ideals, and as such, marketers can use global consumer culture positioning (GCCP)to communicate a brand's global identity.

Question 18

Nestle 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 19

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

Question 20

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

Question 21

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

Question 22

Due to the European Commission's regulation, McDonald's cannot give away soft plastic toys with its Happy Meals in Europe.

Question 23

A company that has developed a successful local product or brand can implement an adaption strategy.

Question 24

Recent research has suggested that in Asia, the highest level needs in Maslow's hierarchy pertain to status.

Question 25

Sony created a new market when it introduced VCRs, which can be considered as an example of discontinuous innovations.

Question 26

For a country like Slovenia to enhance its image abroad is a very different matter than for China.

Question 27

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 28

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

Question 29

Due to the trend toward convergence, many product standards that remain on the books have been harmonized.

Question 30

In some product categories, foreign products have a substantial advantage over their domestic counterparts simply because of their "foreign-ness."

Question 31

Scotland's top export category is information technology.

Question 32

Before executives at Ben & Jerry's Homemade launched their ice cream in the United Kingdom, the company conducted extensive research to determine whether the package design effectively communicated the brand's "super premium" position.This is an example of dual-extension strategy.

Question 33

Recent research has confirmed that the levels in Maslow's hierarchy are the same in the United States and Asia.

Question 34

Studies conducted during the 1970s and 1980s indicated that the "made in the USA" image lost ground to the "made in Japan" image.

Question 35

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 was my idea." This is an example of the dual-extension strategy.

Question 36

Whenever a new product interacts with human, mechanical, or chemical elements, there is the potential for a surprising and unexpected incompatibility.

Question 37

When Kraft Foods launched Oreo brand cookies in China in 1996, they found that Oreo was too sweet for the Chinese palate, and the price was too high.Oreo reformulated a less-sweet chocolate-covered wafer and reduced its price.This strategy is referred to as product extension approach.

Question 38

Products that fall under the dynamically continuous innovation category require more R & D expenditures.

Question 39

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 40

Many consumers consider products with labels such as "Made in Bangladesh" and "Made in Brazil" to be of inferior quality and value

Question 41

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 42

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 statement is not true regarding the use of color in selected countries:

A)Yellow color on Caterpillar's earthmoving equipment is acceptable worldwide.
B)Packaging aesthetics are particularly important to the Japanese.
C)White color 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)Chinese consider the red color to be lucky.

Question 43

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 44

Which of the following is not in the top five of the world's most valuable brands according to a 2010 rankings?

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

Question 45

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.

Question 46

Packaging is an important consideration for products that are shipped to markets worldwide.Which of the following statement related to packaging is not true?

A)Nestle's worldwide network of packaging teams contributes packaging improvement suggestions on a quarterly basis.
B)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)Nestle asked suppliers to find a glue to make the clicking sound louder when a tube of Smarties brand chocolate candies are unwrapped.

Question 47

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 48

________ represent(s)the cumulative added value of a company's investment in the marketing of a brand over time.

A)Brand extensions
B)Co-branding
C)Brand image
D)Brand equity
E)Brand loyalty

Question 49

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 2 levels of the hierarchy are the same in the traditional and Asian versions.
B)The lowest 3 levels of the hierarchy are the same in the traditional and Asian versions.
C)The lowest 4 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 50

Coca-Cola's distinctive contour bottle, which is sold in many countries, illustrates the point that:

A)the packaging strategies can vary by country and region.
B)the packaging helps in storing large sizes in refrigerators.
C)the packaging strategies do not change by country and region.
D)the packaging appeals only to Asian consumers.
E)the packaging helps in brand identification.

Question 51

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 52

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 53

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 language.

Question 54

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 55

Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the U.S.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 56

An express warranty is a written guarantee that assures the buyer:

A)that he or she is getting what he or she desired.
B)that he or she will be able to get express response if any defects are found.
C)that he or she is getting what he or she has paid for.
D)that he or she will be able to contact the manufacturer whenever needed.
E)that he or she has limited time for filling out information required by the manufacturer.

Question 57

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 58

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 59

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 60

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 61

The formulation, imagery, and consumer appeal of Colgate's Total brand toothpaste were designed to translate across national boundaries.This new global brand represents which type of product innovation?

A)discontinuous innovation
B)dynamically continuous innovation
C)continuous innovation
D)comparative innovation
E)dynamically discontinuous innovation

Question 62

The Advanced Photo System (APS)created by Kodak and its partners combines traditional chemical photo processing with digital technology.One benefit of the system is that shutterbugs can choose 3 different print sizes.The APS would best be described as a:

A)continuous innovation.
B)dynamically continuous innovation.
C)discontinuous innovation.
D)platform-based innovation.
E)new and improved innovation.

Question 63

The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home electronic entertainment.For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time.The VCR's popularity also gave rise to an entirely new retailing concept, the video rental store.What type of innovation did the consumer VCR represent?

A)a continuous innovation
B)a dynamically continuous innovation
C)a discontinuous innovation
D)a comparative innovation
E)none of the above

Question 64

Motorola's failed Iridium venture was a global satellite telephone network designed to allow users to make or receive calls anywhere on the globe using handsets that are somewhat bigger than typical cellular phones.What type of innovation did Iridium represent?

A)a continuous innovation
B)a dynamically continuous innovation
C)a discontinuous innovation
D)a platform-based innovation
E)none of the above

Question 65

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 66

The corporate development team at Virgin evaluates more than a dozen proposals each day from outside and within the company.When assessing new-product ideas, they look for all of the following except:

A)synergy with existing Virgin products.
B)pricing and return on investment.
C)marketing opportunities.
D)if the idea "uses or abuses" the Virgin brand.
E)aesthetic attributes of competitors products.

Question 67

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 68

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 69

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 70

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

A)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 71

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 72

After four years of product development, Procter & Gamble recently introduced a new, improved disposable diaper.Pampers Rash Guard diapers are designed to prevent diaper rash and represent the first time a company has made a medical claim for its diapers.What kind of innovation do the new diapers represent?

A)platform-based innovation
B)dynamically continuous innovation
C)discontinuous innovation
D)continuous innovation
E)none of the above

Question 73

Procter & Gamble recently introduced Pampers Rash Guard.Rash Guard does not represent a new product per se; rather, the diapers are being marketed as an alternative to regular Pampers.What type of innovation do Pampers Rash Guard diapers represent?

A)a continuous innovation
B)a dynamically continuous innovation
C)a discontinuous innovation
D)a platform-based innovation
E)none of the above

Question 74

Product problems initially made headlines in 2008 regarding a turbine blade manufactured by Suzlon and financed by John Deere.All of the following problems were encountered by Suzlon except:

A)wind energy cracked a turbine blade and broke off a tower in Illinois.
B)cracks were found on more than 60 blades on turbines run by Deere.
C)Suzlon was battling product reliability and durability problems.
D)Suzlon faced a cash crunch.
E)policymakers in many parts of the world supported Suzlon.

Question 75

When introduced in the late 1970s, the VCR created new patterns of consumer behavior.For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time.DVD, a playback only video system, was introduced in the late 1990s.DVD discs contain full-length movies with digital sound in a format that resembles conventional music compact discs.Which of the following most accurately describes the respective degree of newness of these two global products?

A)The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation.
B)The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation.
C)The VCR and DVD are both dynamically continuous innovations.
D)The VCR and DVD are both discontinuous innovations.
E)The VCR and DVD are both continuous innovations.

Question 76

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 77

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 78

In the summer of 2006, it was announced that the company's Smart car would be offered for sale in the United States.Which global company was responsible for bringing the Smart car to market?

A)Swatch
B)Volkswagen
C)Nissan
D)Ford
E)DaimlerChrysler

Question 79

By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns.

A)continuous innovation
B)dynamically continuous innovation
C)discontinuous innovation
D)platform-based innovation
E)new and improved innovation

Question 80

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.