Deck 13: Products and Services for Consumers

Question 1

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

Answer 1

False
Explanation: Global competition has shifted the power in the marketplace from a sellers' to a customers' market, and the latter have more choices because more companies are competing for their attention. More competition and more choices put more power in the hands of the customer, and that of course drives the need for quality.

Question 2

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

Answer 2

False
Explanation: The rate of diffusion of a product can be postulated as positively related to relative advantage, compatibility, trialability, and observability but negatively related to complexity.

Question 3

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

Answer 3

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

Question 4

The packaging component consists of the physical product-the platform that contains the essential technology-and all its design and functional features.

Question 5

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

Question 6

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

Question 7

The more congruent product perceptions are with current cultural values, the more rapid product diffusion or acceptance will be.

Question 8

One of the three variables that affect the rate of diffusion of a product is the perceived attributes of product innovation.

Question 9

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 10

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 11

When there are alternative products in a market, all of which meet performance quality standards, the product chosen is the one that meets market-perceived quality attributes.

Question 12

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 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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 19

Adaptation of the nonphysical features of a product can be avoided while trying to adapt the product to a new culture.

Question 20

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

Question 21

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 _____.

A) product homologation
B) global product standardization
C) product dilution
D) product obsolescence
E) product disapprobation

Question 22

In the context of global marketing, a product's country of origin cannot affect its brand's image significantly.

Question 23

Which of the following is true about 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 increased product life cycles.
C) It has put more power in the hands of the customer.
D) It has reduced the competitive spirit of most businesses in a marketplace.
E) It has limited the choices of the consumers.

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

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

Question 29

GreatW, a wine company, had to market its products with a different name in a foreign market as it was mandatory to translate the name into the local language. Which of the following factors has most likely influenced the compulsory change of GreatW's product name in the foreign market in this scenario?

A) Legal requirement
B) Climatic requirement
C) Technological requirement
D) Monetary requirement
E) Economic requirement

Question 30

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

Question 31

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

A) Product localization
B) Product protectionism
C) Product disapprobation
D) Product dilution
E) Product homologation

Question 32

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

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

Question 33

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

Question 34

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 dictated product adaptation in this scenario?

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

Question 35

Services are distinguished from products on the basis of their tangibility, durability, homogeneity, and separability.

Question 36

Grengens, 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 repackage 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 is most likely to have dictated Grengens' product adaptation in this scenario?

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

Question 37

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

A) Consumer choice quality and process quality
B) Market-perceived quality and performance quality
C) Product quality and market quality
D) Actual quality and assumed quality
E) Absolute quality and relative quality

Question 38

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

Question 39

Booster Bar, a popular brand of energy bars in Canada, sold its 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 has most likely influenced Booster Bar's product adaptation in the form of reduction of bar units per package in this scenario?

A) Legal requirements
B) Political requirements
C) Economic requirements
D) Technological requirements
E) Cultural requirements

Question 40

Products from developing countries have the highest quality image.

Question 41

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

A) Marketing efficiency
B) Communication channel
C) Time
D) Social system
E) Government system

Question 42

A product is said to be compatible if:

A) it provides greater value to the manufacturers than to the consumers.
B) the degree of social repercussions associated with it is high.
C) its benefits can be communicated easily.
D) it has a higher degree of complexity compared with its counterparts'.
E) it complies with the accepted norms, values, and culture of the local market.

Question 43

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

A) vincibility
B) partibility
C) complexity
D) trialability
E) observability

Question 44

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

A) the degree of newness of the product as perceived by the intended market.
B) the personal ethics of individuals in the target market.
C) the regional political parties present in the domestic market.
D) the language problem of the intended market.
E) the product's compliancy to irrational beliefs of its potential foreign consumers.

Question 45

Ingrid Cleaners develops promotional materials and product demonstrations to easily communicate the benefits of its cleaning products. In this scenario, Ingrid Cleaners tries to enhance the _____ of its products.

A) partibility
B) discordancy
C) vincibility
D) complexity
E) observability

Question 46

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

A) docibility
B) partibility
C) complexity
D) discordancy
E) observability

Question 47

As part of the "green movement," the European Commission has passed a 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) prevalence of similar environmental standards across different member countries
B) consumer demand for environmentally friendly products
C) higher government subsidies for greener technologies
D) continuous availability of alternative energy resources for production
E) proven efficient management of inventory of conventional energy products

Question 48

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

A) Color
B) Price
C) Mobility
D) Design
E) Popularity

Question 49

HT Motors introduces a new technology in its cars to improve its mileage as well as to reduce carbon emissions. It also takes measures to improve its production facilities in order to reduce its carbon footprint. Actual introduction of green measures to meet the government guidelines rather than just through advertising and marketing shows that HT Motors engages in ________.

A) permission marketing
B) traditional marketing
C) green marketing
D) black marketing
E) greenwashing

Question 50

Fiona's company wants to launch a new product in Madrid. Fiona requests her product manager to distribute some samples to potential customers there so that she can gauge the consumer preferences prevalent there before introducing the product. Here, Fiona tires to reduce the degree of economic and social risks, also known as _____, associated with product use.

A) billability
B) docibility
C) invincibility
D) trialability
E) partibility

Question 51

_____ is the process by which innovation spreads.

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

Question 52

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 53

Carolyn, who is interested in marketing her company's diet products in Asia, studies the acceptable behavior, norms, and values in Asian markets. In this scenario, Carolyn studies her product's _____ in the Asian markets.

A) partibility
B) compatibility
C) dissidence
D) billability
E) docibility

Question 54

Mark finds that his new digital camera is easy to handle, as he did not 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 make it very clear what he was to do to achieve digital photography success. Which of the following characteristics of Mark's "new product" makes it easy for him to begin his digital experience?

A) Partibility
B) Susceptibility
C) Low complexity
D) High trialability
E) Low billability

Question 55

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

A) creation
B) adaptation
C) declension
D) tradition
E) innovation

Question 56

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

A) The absolute marginal value of the innovation relative to the old
B) The actual attributes of the innovation
C) The climatic conditions of the region in which the market is located
D) The method used to communicate the idea
E) The degree of actual novelty of the innovation

Question 57

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

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

Question 58

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 a longer life, and can also be marketed at a competitive price than those of other sellers in the local market. The innovation characteristic of Martin's product that will help in wide acceptance of his product in the local market is its _____.

A) partibility
B) defectibility
C) docibility
D) relative advantage
E) vincibility

Question 59

Which of the following best defines green marketing?

A) It refers to word-of-mouth marketing, where a company develops customers who become voluntary advocates of a product.
B) It refers to inbound marketing used on websites in the form of a banner, text, or graphic.
C) It refers to the type of marketing that takes place on the internet, where all the marketing resources and assets are transferred online.
D) It is used to identify concerns with the environmental consequences of a variety of marketing activities.
E) It refers to nontraditional or stealth marketing campaigns.

Question 60

She Tales, a women's clothing company based in Singapore, had to modify its clothes before introducing them in markets in Iran to suit the needs of the women in that country who are generally expected to cover themselves completely as per societal norms. To adapt its clothes to Iranian markets, She Tales had to mostly use opaque material and provided accessories like scarves. Which of the following factors has dictated She Tales' product adaptation in this scenario?

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

Question 61

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

A) core
B) price
C) packaging
D) support services
E) style

Question 62

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

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

Question 63

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

A) Too much product information
B) A shorter distribution channel
C) Market analyst's self-reference criterion
D) Low number of product competitors
E) Authoritative product information of the market analyst

Question 64

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 is being referred to here?

A) Intangibility
B) Separability
C) Liquidity
D) Homogeneity
E) Durability

Question 65

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 66

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) tangibility
B) separability
C) durability
D) heterogeneity
E) divisibility

Question 67

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

A) Core
B) Support services
C) Packaging
D) Invisible
E) Auxiliary

Question 68

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

A) durable
B) separable
C) indelible
D) tangible
E) perishable

Question 69

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

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

Question 70

Omigar Appliances, a Korean company that manufactures kitchen appliances, alters the design of its chimneys to suit the needs of its Japanese consumers. The Japanese prefer compact and efficient appliances to fit their small kitchens. The component of Omigar's chimneys that is most likely altered in this scenario is the _____.

A) packaging component
B) invisible component
C) core component
D) ancillary component
E) support services component

Question 71

Dr. 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 none of the appointments took place, he did not make any money in those four days, even though his normal expenses remained. In this scenario, which of the following characteristics of services is most likely affecting Dr. Townes' business?

A) Tangibility
B) Separability
C) Profitability
D) Homogeneity
E) Perishability

Question 72

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 component of the product component model that is most likely to be under consideration is:

A) support services.
B) packaging.
C) delivery.
D) ancillary.
E) core.

Question 73

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

A) core
B) support
C) packaging
D) supplementary
E) auxiliary

Question 74

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

A) conversion-ability
B) liquidation
C) formation-ability
D) homologation
E) consultation

Question 75

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

A) Automobile services
B) International tourism
C) Banking services
D) Research and development
E) Education services

Question 76

A Korean electronics company had to add detailed instructions about 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 most likely being altered in the given scenario?

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

Question 77

Cherry Computers had difficulties when it first entered the Japanese market with its CheriTec computers. Some of its computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be an insignificant problem in the U.S., it was certainly a cause of concern in quality-conscious Japan. Which of the following components of the product component model should Cherry Computers concentrate on to fix this problem?

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

Question 78

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

A) liquidity
B) coherence
C) equivalence
D) heterogeneity
E) placability

Question 79

In some countries, maintenance of automobiles is not the norm, and they are not repaired until they break down. Since the consumer is automatically angry with the manufacturer when something goes wrong with the vehicle, 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) The core component
B) The functional component
C) The packaging component
D) The support services component
E) The price component

Question 80

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 provide clarity to its local customers. The component of the product that is in focus in the given scenario is the _____.

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