Question 1

Research and development centers are highly desirable investments by host governments.

Accepted Answer

Research and development centers are viewed as a way to attract and retain high-tech jobs, increase competitiveness, and promote innovation in the host country, which is why they are highly desirable investments by host governments.

Question 2

Most multinational corporations locate most of their product development operations by contracting outsourcing agencies.

Accepted Answer

Most multinational corporations tend to keep core product development operations in-house to maintain control over intellectual property and quality, although they may outsource certain aspects to specialized firms.

Question 3

Branding is one of the major benefits of a well-conducted portfolio analysis.

Accepted Answer

Through portfolio analysis, a company can identify its strengths and weaknesses in different areas and use this information to develop a strong brand image that effectively communicates its values to its target audience. By leveraging the strengths of its portfolio and addressing weaknesses, a company can create a consistent and recognizable brand that resonates with its customers.

Question 4

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

Accepted Answer

It is common for users to come up with new product ideas or prototypes, especially in industries such as technology and consumer goods where user feedback is valuable. Companies may then adopt these ideas and refine them for commercialization.

Question 5

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

During the early stages of the product development process, it is important to identify and evaluate requirements from all relevant units and stakeholders, including the managing unit and affected units, and incorporate them into the product development plan. This helps to ensure that the product meets the needs and expectations of all stakeholders and increases the likelihood of success in the market.

Question 6

A facilitating agent would be an organization like an advertising agency or market research firm.

Accepted Answer

A facilitating agent refers to an organization that helps to facilitate business transactions between different parties, such as an advertising agency or market research firm. These organizations provide services that help to bridge the gap between buyers and sellers and facilitate trade.

Question 7

Members of the marketing team, engineering department, and finance operations team do not need to be involved in the product development process

Accepted Answer

All three departments should be involved in the product development process to ensure a successful and profitable product launch. Marketing can provide insights into market trends and consumer preferences, engineering can determine technical feasibility and potential design limitations, and finance can provide input on cost and pricing considerations.

Question 8

Product development is best left to independent units as opposed to trying to establish an overall global strategy.

Accepted Answer

Establishing an overall global strategy for product development allows for consistency and coordination across multiple units and markets. It also ensures that the company's vision, values, and goals are aligned in the development of new products. While independent units may have more flexibility in their development process, without a global strategy, there may be inconsistencies or overlap in product offerings, which can lead to confusion and inefficiencies.

Question 9

Global brands may cater to needs to feel cosmopolitan, something that local brands cannot deliver.

Accepted Answer

Global brands are often associated with a cosmopolitan image and lifestyle, which can appeal to consumers who want to feel connected to a larger, more global community. Local brands, while they may offer unique products and experiences, may not be perceived as being as cosmopolitan or cutting-edge as global brands.

Question 10

When test marketing a product, a limited launch of the product is introduced to a select group of consumers whose reaction to the product will dictate the possible release of the product on a wider scale.

Accepted Answer

Test marketing involves introducing a product to a limited group of consumers to gauge their reactions and determine if the product is ready for a wider release.

Question 11

A private brand is one that an international marketer sells only to customers through an elite system of household purchases, similar to network marketing.

Accepted Answer

A private brand is a product that is owned and sold by a retailer or distributor rather than by the manufacturer or producer. It is not sold exclusively through an elite system of household purchases.

Question 12

International competitive behavior always follows the same rule as domestic competitive behavior.

Accepted Answer

International competitive behavior differs from domestic competitive behavior due to factors such as cultural differences, legal regulations, and trade barriers.

Question 13

A successful marketer will have a balanced product and market portfolio of exclusively mature products to provide a sustainable competitive advantage.

Accepted Answer

A successful marketer will not only have mature products in their portfolio but also newer products to cater to changing market needs and preferences. A balanced portfolio with a mix of mature and new products can provide a sustainable competitive advantage.

Question 14

The product development process begins with idea generation.

Accepted Answer

Idea generation is the first step in the product development process where potential new product ideas are generated and screened.

Question 15

A global product launch means introducing a product into two countries over a period of five years.

Accepted Answer

A global product launch means introducing a product into multiple countries at the same time or gradually over a shorter period than five years.

Question 16

Developing and managing a product portfolio in the global marketplace is both a great challenge and an attractive opportunity for multinational marketers.

Accepted Answer

Developing and managing a product portfolio in the global marketplace is a challenge because it requires an understanding of different cultures, regulations, and market trends. However, it is also an attractive opportunity because it allows companies to expand their reach and increase their revenue streams. Therefore, the statement is true.

Question 17

In 1875, the United States passed the National Cooperative Research Act to aid in the development of industrialization in the United States.

Accepted Answer

The National Cooperative Research Act was not passed until 1984, long after industrialization had already occurred in the United States. The Act was designed to encourage collaboration between companies in order to promote innovation and technological progress.

Question 18

One of the advantages of the product portfolio approach is that it provides a convenient visual communication goal, achieved by integrating a substantial amount of information in an appealing, simple format including assessment of interlink between units and products.

Accepted Answer

The statement accurately describes one of the advantages of the product portfolio approach.

Question 19

All products that a company is suggested to produce are manufactured.

Accepted Answer

This statement is false. Companies may not produce all suggested products for a variety of reasons such as lack of resources, low demand, or lack of profitability. Companies may also choose to focus on specific products or services that align with their overall strategy and goals.

Question 20

A lead user is an individual who uses the product after the bulk of the market segment has proved the product's worthiness.

Accepted Answer

A lead user is an individual who uses a product or service before it becomes widely popular or mainstream, often providing valuable feedback for improvements.

Quiz 14: Global Product Management and Branding