Deck 13: Products and Services for Consumers

Question 1

The European Commission (EC) mandate requires a product to be evaluated on all significant environmental effects throughout its life cycle, from manufacturing to disposal.

Answer 1

True
Explanation: The European Commission issued guidelines for ecolabeling that became operational in 1992. Under the directive, a product is evaluated on all significant environmental effects throughout its life cycle, from manufacturing to disposal-a cradle-to-grave approach.

Question 2

An important first step in adapting a product to a foreign market is to determine the degree of newness as perceived by the intended market.

Answer 2

True
Explanation: An important first step in adapting a product to a foreign market is to determine the degree of newness as perceived by the intended market.

Question 3

Though quality is always important in the consumer's mind, in general, do not expect it to be a given.

Answer 3

False
Explanation: Since the consumer expects performance quality to be a given, quality to the consumer is more than compliance.

Question 4

The newness of a product or brand introduced can be an important competitive advantage.

Question 5

One of the three variables, which affect the rate of diffusion of a product, is the product's degree of perceived newness.

Question 6

Adaptation of a product to a new culture requires changes in most of the physical attributes of the product.

Question 7

The packaging component of the product component model consists of the physical product and all its design and functional features.

Question 8

One of the core components in the product component model is the product platform.

Question 9

One of the consistencies that marketers can look forward to when marketing products abroad is that almost all labeling laws worldwide are essentially the same.

Question 10

Global competition has put more power in the hands of the seller.

Question 11

In many countries the term product homologation is used to describe the changes mandated by local product and service standards.

Question 12

Consumer perceptions of a quality product often have more to do with market-perceived quality than performance quality.

Question 13

From a sociological point of view, any idea perceived as new by a group of people is an innovation.

Question 14

In general, the rate of diffusion of a product is negatively related to its relative advantage.

Question 15

The decision to standardize or adapt a product is crucial in delivering quality.

Question 16

Green marketing is the term frequently used to identify a marketer's efforts to reduce its dependency on U.S. dollars as the standard for international exchange.

Question 17

The perceived attributes of an innovation is a variable that affects the rate of diffusion of a product.

Question 18

According to the product component model, the instructions for using the product and the warranty of the product are included under the packaging component.

Question 19

According to Everett Rogers, the element of time differentiates diffusion from other types of communication research.

Question 20

The cost and quality of the product are among the most important criteria by which purchases are made.

Question 21

Nuan, a television manufacturer in Korea, had to modify its televisions before introducing it to the Zimbabwean markets, as the country did not have the skills to repair the product in case of a malfunction. The local salesforce too, did not have the sufficient knowledge regarding the installation of the product. The factor that is influencing product adaptation in the above scenario is ________.

A) legal requirements
B) climatic requirements
C) political requirements
D) cultural requirements
E) technological requirements

Question 22

_____ is the term used to describe the changes mandated by local product and service standards.

A) Product localization
B) Product blending
C) Product standardization
D) Product dilution
E) Product homologation

Question 23

A wine company had to market its products with a different name in a foreign market as it was mandatory to translate the name in the local language. The factor that is influencing product adaptation in the above scenario is _____.

A) legal requirements
B) climatic requirements
C) technological requirements
D) cultural requirements
E) economic requirements

Question 24

In countries with low-literacy rates, the pictures and symbols on products are literally taken as instructions and information.

Question 25

Products from developing countries have the highest quality image.

Question 26

What are the two dimensions that help in defining the quality of a product of quality?

A) Product quality and process quality.
B) Market-perceived quality and performance quality.
C) Product quality and service quality.
D) Actual quality and assumed quality.
E) Absolute quality and relative quality.

Question 27

A single global approach is the best way to market a brand worldwide.

Question 28

Which of the following is the most important criterion for consumers while purchasing products?

A) Appearance
B) Size
C) Technology
D) Quality
E) Service

Question 29

Vital Health Products found out that they had to reduce the length of the tread in their treadmills sold in China owing to the shorter legs of the average Chinese person. By doing this, Vital has achieved product _____.

A) homologation
B) standardization
C) dilution
D) flexibility
E) repositioning

Question 30

A majority of services enter foreign markets by licensing, franchising, or direct investment.

Question 31

Cultural barriers play a bigger role in services than in merchandise trade.

Question 32

Services such as insurance and dry cleaning are classified as tangible.

Question 33

Brand image is at the very core of business identity and strategy.

Question 34

Booster bar is a popular brand of energy bars in Canada. The company sold these bars singly or in packs of two in the South Asian markets, instead of their regular multiple-item packaging containing 10 or 20 bars to make it more affordable for the consumers. Which of the following requirements of the local market is influencing product adaptation in the above scenario?

A) Legal requirements.
B) Political requirement.
C) Economical requirements.
D) Technological requirements.
E) Cultural requirements.

Question 35

Effective advertising and proper positioning of products can help brands to ameliorate a less-than-positive country stereotype.

Question 36

Adore cosmetics had to increase the SPF value of their sunscreen lotions marketed in the Middle East to provide more protection against UV radiation. Which of the following factors is dictating product adaptation in the above scenario?

A) Legal requirements.
B) Cultural requirements.
C) Economic requirements.
D) Climatic requirements.
E) Political requirements.

Question 37

A European chocolate manufacturer received several complaints from customers about the quality of its product when it began selling them in a tropical country. The firm had to re-package its chocolate bars in an extra plastic wrapper to protect it from the heat and dust. Which of the following factors in the local market dictated product adaptation in the current scenario?

A) Legal requirements.
B) Economic requirements.
C) Political requirements.
D) Climatic requirements.
E) Technological requirements.

Question 38

Which of the following is true regarding the impact of global competition on the business activities in the marketplace?

A) It has shifted the focus in the marketplace from a consumer's market to a seller's market.
B) It has improved the financial position of domestic industries.
C) It has put more power in the hands of the customer.
D) It has shifted the focus away from the performance quality of a product.
E) It has limited the choices of the consumers.

Question 39

Financial and legal services can not be regarded as a business service as they only provide services to the consumers.

Question 40

The support services component of the product component model contains such items as repair and maintenance and availability of spare parts.

Question 41

An important first step in adapting a product to a foreign market is to determine:

A) the degree of newness as perceived by the intended market.
B) the economic climate of the target market.
C) the advertising parallels with the domestic market.
D) the ability of a sales force to sell the product.
E) the compliancy to religious doctrine(s) in the foreign country.

Question 42

_____ is a term used to identify concern with the environmental consequences of a variety of marketing activities.

A) Greenhouse business
B) Hybrid business
C) Greenfield business
D) Green marketing
E) Alternative marketing

Question 43

Carolyn is interested in marketing her company's diet products in Asia. She is studying the acceptable behavior, norms, and values in Asian markets. Carolyn is studying _____.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability

Question 44

Mark Harmon has found that using his new digital camera is a snap. He did not even have to read the instruction manual to determine how to turn the camera on, snap a digital picture, and export the picture to his computer. The signs (symbols) on the camera body made it very clear what he was to do to achieve digital photography success. Which of the following characteristics of Mark's "new product" made it easy for him to begin his digital experience?

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability

Question 45

Fiona asked her product manager for samples to give to potential consumers in Madrid, her new European market. Fiona is trying to reduce the degree of economic and/or social risk, or _____ associated with product use.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability

Question 46

A product's _____, refers to the ease with which its benefits can be communicated to the customers.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability

Question 47

According to Everett Rogers, the goals of the diffusion researcher and the marketer are to shorten the time lag between:

A) the dispatch of the product from the company and the time it takes to reach the customer.
B) the time that a budget is constructed and the time needed for the funds to reach the communication channels.
C) initial investment and the profits obtained from those investments.
D) introduction of an idea or product and its widespread adoption.
E) introduction of an idea or product and when revisions can be made.

Question 48

According to Everett Rogers, what is the element that differentiates diffusion from other types of communications research?

A) Breakthrough innovation
B) Communications channels
C) Time
D) Social system
E) Government system

Question 49

Which of the following is considered to be one of the extraneous variables that affects the rate of diffusion of an object?

A) The use of the internet in the diffusion process.
B) The age appearance of the innovation.
C) The number of marketing personnel dedicated to diffusion.
D) The method used to communicate the idea.
E) The shelf life of the diffusion object.

Question 50

Which of the following is a physical attribute of a product that is essential for its primary function?

A) Colors
B) Prices
C) Components
D) Designs
E) Sizes

Question 51

HT motors is introducing a new technology in its cars to improve the mileage of the cars as well as to reduce carbon emissions. The company is also taking measures to improve its production facilities in order to reduce its carbon footprint. These measures employed by HT motors to meet the guidelines issued by the government shows that the company is engaging in ________.

A) permission marketing
B) value-based marketing
C) green marketing
D) cause marketing
E) greenwashing

Question 52

A clothing company in Singapore which specialized in women's clothing, had to modify its clothes before introducing them to Iranian markets, to suit the needs of women in that country. Women in Iran are expected to cover themselves completely. The company mostly used opaque material and provided accessories like scarves. Which of the following factors is dictating product adaptation in the above scenario?

A) Legal requirements.
B) Cultural requirements.
C) Technological requirements.
D) Economic requirements.
E) Climatic requirements.

Question 53

_____ is the process by which innovation spreads.

A) Diffusion
B) Filtering
C) Dissolution
D) Flighting
E) Cascading

Question 54

Ingrid is developing promotional materials and product demonstrations to easily communicate the benefits of her cleaning products. Ingrid is trying to enhance the _____ of her products.

A) relative advantage
B) compatibility
C) complexity
D) complexity
E) observability

Question 55

As part of the "green movement", the European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect product development are the control of the packaging component of solid waste and _____.

A) variations in standards across different member countries
B) consumer demand for environmentally friendly products
C) government subsidies for greener technologies
D) availability of alternative energy resources for production
E) management of existing inventory of conventional energy products

Question 56

Which of the following has been at the forefront of the "green movement"?

A) The United States
B) Japan
C) Europe
D) OPEC countries
E) NAFTA countries

Question 57

Martin is comparing the characteristics of his company's water filters with those that are already being marketed in the local market. He realizes that there is lot of scope for his filters as they are functionally more advanced, have longer life, and also can be marketed at a competitive price in these markets. The characteristic of his product that will help in wide acceptance of his product is its _____.

A) trialability
B) compatibility
C) observability
D) relative advantage
E) complexity

Question 58

A product is said to be compatible if:

A) it provides greater value to the consumers compared to competitors' products.
B) the risk associated with using the product is low.
C) it is user friendly.
D) it offer clear functional benefits over other products.
E) it complies with the accepted norms, values, and culture of the local market.

Question 59

A company focusing its efforts on making its new innovation more user-friendly is working on the _____ of the product.

A) relative advantage
B) compatibility
C) complexity
D) trialability
E) observability

Question 60

From a sociological viewpoint, any idea perceived as new by a group of people is considered as a(n) _____.

A) creation
B) adaptation
C) ideation
D) homologation
E) innovation

Question 61

Dr. Mark Townes is a dentist practicing in Denver. During a four-day stretch in March, it snowed so heavily that not a single patient was able to visit him. Since all the appointments were missed, he did not make any money for those four days, even though his normal expenses remained. Which of the following characteristics of services is affecting Dr. Townes' business?

A) Indivisibility
B) Inseparability
C) Profitability
D) Heterogeneity
E) Perishability

Question 62

Which is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted?

A) Media and entertainment.
B) International tourism.
C) Healthcare.
D) Research and development.
E) Education services.

Question 63

Insurance, dry cleaning, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which of the following characteristics of services best matches to the above?

A) Intangibility.
B) Inseparability.
C) Profitability.
D) Heterogeneity.
E) Perishability.

Question 64

The success achieved by firms when they take their inventions to market is referred to as _____.

A) conversion-ability
B) product penetration
C) diffusion
D) marketization
E) mass customization

Question 65

Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product?

A) Poor product knowledge.
B) Noise in the communication channel.
C) Market analyst's self-reference criterion.
D) Multitude of competing products.
E) Market analyst's intelligence quotient.

Question 66

If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms, to meet local differences in five different foreign markets, the _____ of the product component model would be in consideration.

A) support services component
B) packaging component
C) functional component
D) global component
E) core component

Question 67

Because a service is individually produced and is virtually unique, the service is said to have _____.

A) intangibility
B) inseparability
C) profitability
D) heterogeneity
E) perishability

Question 68

A Korean electronics company had to add detailed instructions regarding the repair and replacement of its product to make it easy for the local consumers to maintain it. Which of the following components of the product is being altered in the given scenario?

A) Support services component.
B) Design component.
C) Core component.
D) Packaging component.
E) Functional component.

Question 69

In general, the rate of diffusion can be postulated as negatively related to _____.

A) relative advantage
B) compatibility
C) trialability
D) complexity
E) observability

Question 70

Adam, a hairstylist at a salon in Seattle, styles his customers in various ways. His work looks different on different people even though he has styled all of them. This unique character of a service that is unique for every customer as it is individually produced is referred to as ______.

A) intangibility
B) inseparability
C) profitability
D) heterogeneity
E) perishability

Question 71

Apple Computer had difficulties when it first entered the Japanese market with its Macintosh computers. Some of the computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be no big deal in the U.S., it was certainly a cause for concern in quality-conscious Japan. To fix the problem, Apple needed to concentrate on which of the following components of the product component model?

A) Core component.
B) Support services component.
C) Packaging component.
D) Functional component.
E) Global component.

Question 72

Bagel's foods had to change the labeling on their products to meet the specifications regarding vegetarian and non-vegetarian foods, set by the government in the Japanese market. They also had to mention the ingredients in Japanese to make it clear for the local customers. The component of the product that is in focus in the above scenario is the _____.

A) support services component
B) packaging component
C) functional component
D) design component
E) core component

Question 73

A characteristic of a service is that it is _____, since it cannot be stored and must be consumed simultaneously with its creation.

A) definite
B) separable
C) heterogeneous
D) tangible
E) perishable

Question 74

Simone Francis is a specialist in product design. She is responsible for a product's aesthetic as well as functional appearance. With respect to the product component model, in which of the following component categories would Simone's talents most likely be used?

A) Core component.
B) Support services component.
C) Packaging component.
D) Functional component.
E) Global component.

Question 75

The product platform, design features, and functional features are all found in the _____ component of the product, according to the product component model.

A) core
B) support
C) packaging
D) functional
E) global

Question 76

Omega appliances, a Korean company that manufactures kitchen appliances had to alter the design of its chimneys to suit the needs of the consumers in its Japanese market. The Japanese preferred compact and efficient appliances to fit their small kitchens. The component of the product that had to be altered in the above scenario is the _____.

A) packaging component
B) functional component
C) core component
D) technical component
E) support services component

Question 77

If a company is altering the price of its product to compete with the local companies in the international market, it is focusing on the _____ component of the product, according to the product component model.

A) core
B) support
C) design
D) maintenance
E) packaging

Question 78

According to the product component model, installation, repair and maintenance, deliveries, and warranties are all part of the _____ component of the product.

A) core
B) support services
C) packaging
D) functional
E) global

Question 79

In some countries, maintenance of automobiles is not the norm. Cars are not repaired until they break down. Since the consumer is automatically angry with the manufacturer when something goes wrong with the car, repair and maintenance has become a concern of the various automobile manufacturers in this market. In which of the following components of the product component model would the management need to make improvements if problems such as the one above are to be solved?

A) Core component.
B) Functional component.
C) Packaging component.
D) Support services component.
E) Design component.

Question 80

The washing machines marketed by Taichi failed in Asian markets as those countries lacked the skills necessary to repair and maintain their products. Also, the washing machines spares available in local markets were not compatible with these machines. This product failure was a result of lack of attention by the company to the _____ component of the product.

A) core
B) design
C) packaging
D) support services
E) global