Deck 10: Developing Global Products and Brands

Question 1

As noted in your text,Nivea skin and beauty care products ________________________________.

A) occupy the growth phase of the product life cycle in Western Europe
B) are not targeted to emerging markets
C) occupy the maturity stage of the product life cycle worldwide
D) occupy the maturity stage of the product life cycle in Western Europe and the introductory or growth phases in emerging markets

Answer 1

D
Explanation: According to your text, Nivea occupies the maturity stage of the life cycle in Western Europe.

Question 2

Harmony is working on a prototype of a new resin chair to be marketed to the hospitality industry in the Middle East.Her chair is in the ______________ phase of the product life cycle.

A) maturity
B) growth
C) introduction
D) research and development

Answer 2

D
Explanation: Since Harmony is still working on the prototype, it can be deduced that the product has not entered the market yet.

Question 3

The level of product knowledge that consumers in a particular market exhibit is an important criterion in defining marketing strategy.

Answer 3

True

Question 4

Starbucks' strategy in China involves _______________________________.

A) changing the market's view of the product
B) adapting Starbucks' offerings to accommodate Chinese tastes
C) changing the market's view of the product as well as accommodating Chinese tastes
D) offering a purely Chinese food and beverage assortment targeted toward 'Chuppies'

Question 5

The shape of the PLC curve in foreign markets is determined by ______________________________________.

A) the starting point, the take-off point and the rate at which acceptance occurs
B) the shape of the curve in the domestic market
C) whether the product is targeted to a consumer or business audience
D) the slope of the diffusion pattern before the starting point

Question 6

Benefits from economies of scale in R&D,lower supply costs and experience economies accrue to the global strategy of ____________________.

A) niche marketing
B) micro-marketing
C) adaptation
D) standardization

Question 7

When Coca-Cola realized that consumers in Spain did not have large enough refrigerators to accommodate their two-liter bottle,they uncovered a problem with ____________________________.

A) product use conditions
B) product use function
C) product utilization level
D) use situation

Question 8

The product life cycle describes _______________________________.

A) the product, price, place and promotion elements of marketing
B) the course a product's sales and profits takes over its lifetime, from its introduction to its final withdrawal from the market
C) a particular product's shelf life
D) the evaluation, trial and adoption of a particular product

Question 9

The costs of manufacturing are high in the case of standardization and decrease when a company begins to adapt its products to local needs.

Question 10

Consumers in Venezuela are familiar with the American brand of Natchez potato snacks due to initial marketing messages creating brand awareness for the product.Recently several local snack producers have launched alternatives to Natchez,and the company has shifted its promotional message to one with an emotional appeal suggesting that families who snack together stay together.In Venezuela,Natchez potato snacks are in the _________ phase of the product life cycle

A) maturity
B) growth
C) introduction
D) decline

Question 11

When marketers of wallpaper discovered that customers in North America used the product purely for decorating purposes,and customers in eastern Europe purchased the product primarily to cover flaws in the structure of aging housing stocks,they identified a difference in all of the following except _____________________________.

A) product use conditions
B) product use function
C) product utilization level
D) product use situation

Question 12

If standardization is applied,development costs are often difficult to reabsorb due to the number of adaptations of the product's commercialization and promotion on an international level.

Question 13

All of the following are true of a standardization strategy except __________________________________________.

A) it assumes the existence of a global or regional market
B) it is known to provide high levels of customer satisfaction across markets
C) it creates cost savings derived from standardized production and marketing activities
D) it calls for the development of similar marketing activities across national boundaries

Question 14

The optimal level of standardization / adaptation is found __________________________________.

A) when customer satisfaction is at its lowest level
B) when customer satisfaction is at its zenith
C) when lost sales are minimized
D) when the combined costs of manufacturing and lost sales are at a minimum

Question 15

Crawford Plumbing Products markets toilets to such diverse countries as Canada,Japan and Syria.For each market,the toilets are designed to accommodate differing levels of water pressure,technical installation capability and local customs and traditions that dictate design.Crawford's global strategy is one of __________________.

A) standardization
B) adaptation
C) mass customization
D) nationalization

Question 16

Raquel is not having a good day.She has a meeting with her boss in two hours,and has to tell him that her new product's sales have not yet covered the high development costs required to properly engineer it.Raquel's product is most likely in the __________________ phase of the product life cycle.

A) growth
B) maturity
C) introduction
D) decline

Question 17

The taste of confectioner Ferrero's Nutella spread is modified to meet local food cultures.

Question 18

The product life cycle stage characterized by a swift increase in sales and growth in profit is the __________ phase.

A) introduction
B) growth
C) maturity
D) profitability

Question 19

The increase of the adoption rate after the take off point is mainly due to the interpersonal communication development (word-of-mouth)among the members of the foreign target segment.

Question 20

During the introduction stage of the product life cycle,the company begins to offer a wider selection to stimulate demand for the specific brand.

Question 21

When a global company's brand-value is greater than its revenue,______________________________.

A) it would avoid global branding in order to protect its domestic market position
B) it would be unlikely to exploit the situation by implementing global branding
C) it is prone to exploit the situation by implementing global branding
D) it will have greater difficulties implementing global branding

Question 22

When Snak-Rite Foods entered the Chinese market with its U.S.tagline,"Thirty-Three Flavors to Tempt Your Taste Buds," it received a lukewarm reception from consumers at best.Where did Snak-Rite go wrong?

A) Snak-Rite did not consider the functional use of its products.
B) American products are not in demand in China.
C) Snak-Rite did not offer enough flavors to satisfy the Chinese demand for variety.
D) China is a collectivist culture not necessarily appreciative of great variety.

Question 23

What is KleenKut Razors' best packaging option for razor blades sold in Sri Lanka?

A) Blades sold in open, bulk containers.
B) Blades sold as part of a disposable razor.
C) Blades sold in packets of one each to accommodate limited disposable income.
D) Blades sold in packages of ten to reduce the price of each blade.

Question 24

Brand recognition can often be facilitated by the use of a common global logo.

Question 25

Imported products with a global luxury image are often best-served by adapting _________________ to a new foreign market.

A) a brand customized for each target market
B) a logo without a brand name
C) their original brand name
D) a different brand name

Question 26

Style and design,color,product quality and country of origin are considered ______________________.

A) service attributes
B) product attributes
C) branding
D) adaptation attributes

Question 27

The creation of ISO 9000 is one attempt to create ____________.

A) local product standards
B) global legislation of product performance
C) non-tariff barriers
D) global standards harmonization

Question 28

Companies are often successful in standardizing their products' packaging on an international level.

Question 29

Product changes that need to be made in order to adapt to another country's laws can result in a poor competitive position when exported abroad.

Question 30

Renata is global marketing manager for True Heart jeans.Her attempt to market the same designs in Malaysia as those sold in the U.K.was unsuccessful,as the fabric proved too heavy and the colors too bland.Renata failed to take ____________ factors into consideration.

A) physical/environmental
B) demographic
C) legal/regulatory
D) technological

Question 31

Industrial products typically satisfy specific needs that don't vary too much from country to country.

Question 32

Lauren Ashford,a producer and marketer of home furnishings,authorized Peachtree Mills to produce and market a line of sheets under the Lauren Ashford name; they receive a percent of the sales revenue in exchange.This arrangement is an example of _________________.

A) brand licensing
B) brand extension
C) co-branding
D) brand trade marking

Question 33

When country markets exhibit different legal and/or technical standards,___________________________.

A) customization of the product is required
B) adaptation is rendered ineffective
C) the markets must be eliminated from consideration as target markets
D) standardization is needed

Question 34

When Hiram-Walker and Sara Lee partnered to product a Kahlua White Russian Brownie,they implemented a ________________________ strategy.

A) brand licensing
B) co-branding
C) brand extension
D) private label branding

Question 35

The homogeneous nature of the African nations allows for standardization of product branding and packaging there.

Question 36

The optimal solution for a company's market entry strategy is found in a careful equilibrium between standardization and adaptation.

Question 37

Global differences in product utilization level are evident in which of the following examples?

A) Rich Chinese families often have two kitchens in their houses, one "to be shown" to friends and guests and one "for cooking."
B) Vicks Vapor Rub is used to fight mosquitoes in some markets, to relieve coughs in others.
C) Western marketers have difficulty selling their refrigerators in Japan due to noisy motors and thin walls.
D) Consumers in Mediterranean markets use dryers only occasionally for fear that laundry can get ruined.

Question 38

Outback Steakhouse is a restaurant chain owned and operated in the United States.Yet its brand,incorporating the Australian reference to the 'outback' country there,and its spokesperson's distinct Australian accent,connote that they originate in the land down under.This is owner OSI Restaurant Partners' attempt to capitalize on __________________________________.

A) brand licensing
B) ethnocentrism
C) actual country of origin
D) an implied country of origin

Question 39

Which of these company or market scenarios would serve to discourage the adaptation of a standardized global market entry strategy?

A) If the country's legal and technical standards are similar to domestic markets.
B) If creativity and innovation are especially critical in the management of local branches.
C) If the company has a global brand.
D) If a company participates in the business-to-business market.

Question 40

For high technology products,the brand can convey complex functional and performance information.

Question 41

If a company operates in the business to business sector,the evaluation of services offered to customers is more complex and needs to be considered together with the level of standardization and the type of warranties offered in the country of origin and abroad.

Question 42

Post sale service is not relevant in all countries.

Question 43

McDonald's is a company that often employs ______________________________.

A) dual extension
B) product extension-communication adaptation
C) product adaptation-communication extension
D) product-communication adaptation

Question 44

Market follower companies,whose image hasn't been established yet on a global level,typically fend off purchaser-perceived risk by _________________________________________.

A) offering better warranties and the best post sale service
B) applying a premium price to connote value
C) applying a made in USA label to their products
D) positioning their products to early-adapters only

Question 45

In the majority of cases,products manufactured in a foreign country have perceived risk.