Question 1

Apple has been the most valuable global brand since 2011.

Accepted Answer

While Apple has been a leading brand, it has not consistently held the title of the most valuable global brand every year since 2011. Other brands like Google and Amazon have also held the top position in various years.

Question 2

In truly global companies, the R&D location is determined by the existence of specific skills.

Accepted Answer

In truly global companies, the R&D location is often determined by the existence of specific skills. This allows these companies to access specialized knowledge and expertise, regardless of where it is located in the world.

Question 3

Many new commercially important products are initially thought of and even prototyped by users rather than manufacturers.

Accepted Answer

Many innovative products are created by individuals who are seeking a solution to a problem they have encountered, rather than by companies deliberately developing new products. This is often referred to as user innovation or user-centered design. Once a prototype is created and shows commercial potential, manufacturers may then become involved in further development and production of the product.

Question 4

During the latter stages of the product development process, the emphasis is on the efficient development and design of a global product with a minimum of configuration differences and on the developing of supporting systems capabilities in each of the participating units.

Accepted Answer

This statement is correct. In the latter stages of the product development process, the focus is on creating a global product with minimal configuration differences across different markets. Additionally, supporting systems capabilities need to be developed in order to ensure that the product can be effectively marketed and sold in each of the participating units.

Question 5

The main goal of the product development process is to develop a standard product or product line.

Accepted Answer

The main goal of the product development process is to develop a unique product or product line that stands out from competitors and meets the needs of the target market segment. The development process involves research, design, testing, and refinement to create a high-quality and marketable product.

Question 6

A global presence is justified by the increasing similarity consumers display in consumption habits and preferences.

Accepted Answer

With globalization and the spread of Western culture, consumers around the world are exhibiting increasing similarities in their consumption habits and preferences. This makes it worthwhile for companies to establish a global presence in order to tap into these markets and benefit from economies of scale.

Question 7

The managing unit of a typical global product development program has prime responsibility for accomplishing worldwide technical development and design of a new product.

Accepted Answer

The managing unit of a global product development program is typically responsible for coordinating and managing the technical development and design of a new product across multiple global locations.

Question 8

With the increased diffusion of the internet, chat rooms about products and features will become an important source of information about product development and adjustment.

Accepted Answer

With the increased use of the internet, chat rooms and online forums have become increasingly popular for discussing products and features. This has led to an increase in the availability of information about product development and adjustment. Customers can share their opinions and feedback about products with each other and companies can use this information to improve their products and services. Therefore, chat rooms about products and features will become an important source of information.

Question 9

The application of the product portfolio approach has only two limitations.

Accepted Answer

The application of the product portfolio approach has more than two limitations. Some of these limitations include difficulty in defining the boundaries of a product category, the subjective nature of resource allocation decisions, and the potential for overlooking emerging market trends and opportunities.

Question 10

The final stages of the product development process will involve testing the product in terms of both its performance and its projected market acceptance.

Accepted Answer

The final stages of the product development process often involve testing the product's performance and market acceptance through various methods such as focus groups or beta testing.

Question 11

Original product designs can be adapted easily and inexpensively later on through the use of computer-aided design (CAD).

Accepted Answer

Computer-aided design (CAD) allows for easy and inexpensive modifications of original product designs, making it a cost-effective solution for adapting and changing designs.

Question 12

A firm that leaves product development to independent units will incur greater difficulties in transferring its experience and technology.

Accepted Answer

When product development is carried out by independent units, there may be differences in technology and knowledge across these units, making it harder to transfer experience and technology between them. This can lead to inefficiencies and inconsistency in the quality of products developed by different units. Therefore, a firm may face greater difficulties in transferring its experience and technology when it leaves product development to independent units.

Question 13

An advantage of the product portfolio approach is a global view of the competitive structure, especially when longer-term considerations are included.

Accepted Answer

The product portfolio approach allows companies to view their entire product line and how it performs in the market. This can provide a global view of the competitive structure and help identify areas where the company may need to focus its resources. Additionally, a longer-term perspective can be included in the analysis to consider future opportunities and threats.

Question 14

During the early stages of the product development process, the global emphasis is on identifying and evaluating the requirements of both the managing unit and the affected units and incorporating them into the plan.

Accepted Answer

This statement is true. During the early stages of product development, it is important to gather and evaluate the requirements of all stakeholders, including the managing unit and the affected units, in order to incorporate them into the plan.

Question 15

The Japanese have the lowest degree of internationalisation in their R&D efforts compared with their European and North American counterparts.

Accepted Answer

This statement is true. According to the Global Innovation Index 2020, Japan ranks lower than the United States and many European countries in terms of internationalisation of R&D activities.

Question 16

On the average, brand was responsible for almost 80 per cent of total purchase decisions, and the majority of studies revealed a brand-loyal segment of individuals for whom the brand was the major influencing factor.

Accepted Answer

The statement is not universally true as brand influence on purchase decisions can vary significantly across different markets, products, and consumer segments.

Question 17

R&D centres are only seen as desirable investments by host governments of developing nations.

Accepted Answer

R&D centres are seen as desirable investments not only by host governments of developing nations, but also by governments of developed nations and multinational corporations. These centres help to drive innovation, improve competitiveness, and create jobs.

Question 18

In the last few years, the global/local controversy has been most evident in branded consumer products.

Accepted Answer

The controversy over global vs. local products has been particularly visible in the consumer products industry in recent years, with many consumers expressing a preference for locally-made or sourced goods over those produced or sourced globally. This has led to a variety of marketing and branding strategies, such as emphasizing a product's local origins or highlighting its global reach and popularity.

Question 19

'Lame duck' dilemma means having old models available in some markets when customers know of the existence of the new product.

Accepted Answer

The statement accurately describes the 'lame duck' dilemma.

Question 20

Global brands carry a weak quality signal, as suggested by their involvement in negative publicity in the majority of the countries

Accepted Answer

Global brands often carry a strong quality signal due to their international presence and reputation, despite occasional involvement in negative publicity, which does not necessarily reflect the majority of their operations or perceptions across countries.

Quiz 10: Product and brand management in international markets