Question 1

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.

Accepted Answer

This is an example of a product adaptation strategy, focusing on adjusting a product (in this case, packaging) to better fit a new market's expectations, not a dual-extension strategy which involves extending both product and brand into new markets without significant changes.

Question 2

If a label on a product states "Made in Thailand," and a similar product has a label "Made in Germany," why do consumers consider the latter to be better than the former? What difference does a label make in consumer perceptions?

Accepted Answer

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Question 3

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?

Accepted Answer

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Question 4

Give an example of how innovation can be applied to meet the needs of low-income populations.

Accepted Answer

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Question 5

Guidelines which can assist managers in their effort to establish global brand leadership include all of the following except:

Accepted Answer

E is incorrect because making a process template specifically for international consumers does not directly assist in establishing global brand leadership. The focus should be on creating a universally appealing brand strategy rather than segmenting processes by consumer location. The other options (A, B, C, D) are all strategies that can help in building a strong global brand by ensuring consistency, relevance, and effective management of the brand across different markets.

Question 6

The extension strategy where the product remains virtually unchanged but extending it in markets outside the home country is known as "adaptation strategy."

Accepted Answer

The correct term for this strategy is "standardization strategy," where the product remains unchanged as it enters new markets. "Adaptation strategy" involves modifying the product to meet local tastes or requirements.

Question 7

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

Accepted Answer

The dual-extension strategy involves using the same advertising campaign and product positioning in multiple markets, which is what Microsoft did with the global campaign for Windows 7.

Question 8

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 low.Oreo reformulated a less-sweet chocolate-covered wafer and increased its price.This strategy is referred to as product extension approach.

Accepted Answer

The strategy described is more accurately referred to as product adaptation. Kraft Foods adapted the Oreo to better fit the local tastes and preferences in China, which is a hallmark of product adaptation, rather than simply extending the existing product as is to new markets.

Question 9

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:

Accepted Answer

The strategy is referred to as product extension-communications adaptation because Intel is extending its product (the Centrino wireless chip) globally without changing it, but adapting its promotional communications to fit different markets by using globally recognized celebrities.

Question 10

Explain the differences between "product adaptation-communication extension" and "product-communication adaptation" strategies.

Accepted Answer

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Question 11

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?

Accepted Answer

The VCR represented a discontinuous innovation because it introduced a fundamentally new way for consumers to interact with television content, allowing for the recording and later viewing of programs. The DVD, while also innovative, was more of a dynamically continuous innovation as it improved upon existing digital media formats (like the CD) with better quality and capacity but did not fundamentally change how consumers interacted with video content as the VCR did.

Question 12

What are the differences between "product-communication extension" and "product extension-communication adaptation" as strategies?

Accepted Answer

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Question 13

Which of the following consumer products companies experienced a major product failure in Europe due to inadequate test marketing?

Accepted Answer

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Question 14

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

Accepted Answer

The "Just Do It" slogan by Nike emphasizes individualism and rebellion, which may clash with Chinese cultural values that prioritize respect for authority and collectivism. Thus, adapting their marketing strategy to align with local values was necessary.

Question 15

Laws and regulations in different countries frequently lead to obligatory design.Giving examples,show how this can have an impact in global marketing.

Accepted Answer

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Question 16

Because of the consumer safety regulations,McDonald's can only give away soft plastic toys with its Happy Meals in Europe.

Accepted Answer

In Europe, specifically in the UK and EU countries, McDonald's has moved away from plastic toys in response to environmental concerns and consumer demand for sustainable practices, not solely because of consumer safety regulations.

Question 17

A company that has developed a successful local product or brand cannot implement an adaptation strategy.

Accepted Answer

A company with a successful local product or brand can implement an adaptation strategy to modify its product or marketing approach to suit different markets or countries, enhancing its global appeal and effectiveness.

Question 18

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?

Accepted Answer

Campbell's adapted both its product (by developing soup varieties with fish and local spices) and its communication strategy (by creating ads with "Mr. Campbell" instead of the Campbell Kids and the original slogan) to better suit the Japanese market.

Question 19

The appeal of the product extension-communication adaption strategy is its relatively low cost of implementation.

Accepted Answer

The product extension-communication adaptation strategy involves selling the same product in foreign markets but with changes in advertising and promotional materials to suit local cultures and preferences, which is generally less costly than modifying the product itself for different markets.

Question 20

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?

Accepted Answer

Continuous innovation refers to a product that is improved or updated but does not require consumers to change their behavior significantly. Colgate's Total brand toothpaste, designed to appeal globally, represents an incremental improvement in formulation and marketing without altering the fundamental way consumers use toothpaste.

Quiz 10: Brand and Product Decisions in Global Marketing