Question 1

The challenges in bringing the Smart across the Atlantic include all of the following except:

Accepted Answer

The answer of The challenges in bringing the Smart across...

Question 2

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

Accepted Answer

The answer of Explain the differences between "product adaptation-communication extension"...

Question 3

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 4

The Advanced Photo System (APS)created by Kodak and its partners combines traditional chemical photo processing with digital technology. One benefit of the system is that shutterbugs can choose three different print sizes. The APS would best be described as a:

Accepted Answer

The Advanced Photo System (APS) combines traditional chemical photo processing with digital technology which makes it different from traditional photography. However, it still falls under the category of a dynamically continuous innovation as it offers new features like three different print sizes but the basic concept of chemical photo processing remains the same. It does not entirely disrupt the existing market but rather enhances it. Therefore, option B is the correct answer.

Question 5

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

Colgate's Total brand toothpaste represents continuous innovation, which involves small changes to existing products that continue to satisfy consumer needs. The brand's formulation, imagery, and consumer appeal were designed to translate across national boundaries, suggesting that they were not creating a completely new or radically different product.

Question 6

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

Accepted Answer

Creating a process template specifically for international consumers is not typically a guideline for establishing global brand leadership. The focus is usually on internal processes and responsibilities, such as creating value propositions, selecting brand elements, and managing branding issues.

Question 7

Procter & Gamble recently introduced Pampers Rash Guard. Rash Guard does not represent a new product per se; rather, the diapers are being marketed as an alternative to regular Pampers. What type of innovation do Pampers Rash Guard diapers represent?

Accepted Answer

Pampers Rash Guard represents a continuous innovation because it is an incremental improvement or variation of an existing product (regular Pampers diapers) rather than a completely new product or a significant change in consumer behavior.

Question 8

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 9

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

The answer of Laws and regulations in different countries frequently...

Question 10

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 11

By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns.

Accepted Answer

A discontinuous innovation is a type of innovation that requires a significant amount of learning and creates new markets and consumption patterns. This type of innovation is often characterized by a high degree of novelty and a fundamental departure from existing products or services. In contrast, a continuous innovation is a minor improvement to an existing product or service, and dynamically continuous innovation is a moderate improvement that requires some learning but not as much as a discontinuous innovation. Platform-based innovation refers to the development of a new platform or technology that enables the creation of new products or services. "New and improved" innovation is not a defined category of innovation.

Question 12

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

The answer of If a label on a product states...

Question 13

Products that belong to the category of "game changers" are considered as ________ innovations.

Accepted Answer

Discontinuous innovations completely change the way things are done or used and create new markets or industries. Products that belong to the category of game changers are considered as discontinuous innovations because they fundamentally alter the competitive landscape and customer behavior.

Question 14

After four years of product development, Procter & Gamble recently introduced a new, improved disposable diaper. Pampers Rash Guard diapers are designed to prevent diaper rash and represent the first time a company has made a medical claim for its diapers. What kind of innovation do the new diapers represent?

Accepted Answer

The answer of After four years of product development, Procter...

Question 15

Motorola's failed Iridium venture was a global satellite telephone network designed to allow users to make or receive calls anywhere on the globe using handsets that are somewhat bigger than typical cellular phones. What type of innovation did Iridium represent?

Accepted Answer

The answer of Motorola's failed Iridium venture was a global...

Question 16

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

Accepted Answer

The answer of What are the differences between "product-communication extension"...

Question 17

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

Accepted Answer

The product extension-communication adaption strategy involves making minimal changes to the product and communication strategy to appeal to a new market, which typically results in lower implementation costs compared to developing a completely new product or communication strategy.

Question 18

The corporate development team at Virgin evaluates more than a dozen proposals each day from outside and within the company. When assessing new-product ideas, they look for all of the following except:

Accepted Answer

The corporate development team at Virgin does not evaluate the aesthetic attributes of competitors' products when assessing new-product ideas.

Question 19

The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home electronic entertainment. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. The VCR's popularity also gave rise to an entirely new retailing concept, the video rental store. What type of innovation did the consumer VCR represent?

Accepted Answer

The consumer VCR represented a discontinuous innovation as it introduced a new technology that had not existed before, completely changing the way people consumed entertainment at home.

Question 20

In the summer of 2006, it was announced that the company's Smart car would be offered for sale in the United States. Which global company was responsible for bringing the Smart car to market?

Accepted Answer

DaimlerChrysler was responsible for bringing the Smart car to market, as they were the parent company of Smart GmbH at the time of the announcement in 2006.

Quiz 10: Brand and Product Decisions in Global Marketing