Question 1

Black & Decker launched the Snake Light flexible flashlight.Created to address a global need for portable lighting,the product became a best seller in North America,Europe,Latin America,and Australia.This is an example of which type of global marketing product and promotion strategy?
A) product extension
B) product customization
C) product adaptation
D) product invention
E) product integration

Accepted Answer

The launch of the Snake Light flexible flashlight is an example of product invention, as it was a new product created to address a global need for portable lighting, rather than being an adaptation, extension or customization of an existing product.

Question 2

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.The distribution channels can be considered to have been successful when the product reaches the
A) seller.
B) channels between nations.
C) seller's international marketing headquarters.
D) final consumer.
E) channels within foreign nations.

Accepted Answer

The distribution channels are successful when the product reaches the final consumer in the destination country. All other channels listed are intermediate steps in the distribution process.

Question 3

Both Honda and Toyota have plants in the United States that use American labor.This illustrates Honda's and Toyota's use of
A) direct exporting.
B) direct investment.
C) joint venture.
D) licensing.
E) indirect exporting.

Accepted Answer

Direct investment refers to a company investing in and operating a facility or facilities in a foreign country. Honda and Toyota have established manufacturing plants in the United States, which indicates that they have made a direct investment in the country.

Question 4

Adding to the complexity of global distribution is the need for ________,in addition to the channels within a foreign nation.
A) parallel importing
B) channels between nations
C) communication adaptation
D) product adaptation
E) economic stability of the final consumer

Accepted Answer

The answer of Adding to the complexity of global distribution...

Question 5

Yum! Brands,the parent company of KFC,has pursued an aggressive growth strategy in China.There are now more than 3,700 restaurants in 650 Chinese cities,and KFC has a 40 percent market share of the entire fast-food industry there.Yum! Brands China owns and directly manages about 90 percent of its Chinese stores,so it appears that the company prefers __________ in this market.
A) licensing
B) local assembly
C) a joint venture
D) direct investment
E) local manufacturing

Accepted Answer

Yum! Brands China owns and directly manages about 90 percent of its Chinese stores, indicating that the company prefers direct investment in this market rather than licensing, local assembly, joint venture, or local manufacturing.

Question 6

One advantage of direct investment when entering a new global market is that
A) intermediaries have the potential to harm the brand.
B) the firm entering the foreign market does not have to pay royalties to the government.
C) the company forgoes control over its product.
D) the firm gains and uses a better understanding of local market conditions.
E) this method is likely to provide the fewest subsidies from the host country's government.

Accepted Answer

Direct investment allows the firm to have more control over its product and better understand local market conditions, giving it a competitive advantage in the new market.

Question 7

Global companies have five strategies for matching products and their promotion efforts to global markets.The strategy of selling virtually the same product in other countries is referred to as
A) product adaptation.
B) product invention.
C) brand adaptation.
D) product extension.
E) product integration.

Accepted Answer

The strategy of selling virtually the same product in other countries is known as product extension. This strategy involves minimal adaptation of the product to local market conditions, and the focus is on leveraging the strengths of the brand and the product in the global market. It is a cost-effective approach to global marketing and is suitable for products that have universal appeal and do not require significant customization.

Question 8

GlaxoSmithKline PLC of Great Britain makes Breathe-Right nasal strips.It sells the same product in many countries because customers all over the world will use them in the same way.This is an example of which type of global marketing product and promotion strategy?
A) product customization
B) product extension
C) product adaptation
D) product invention
E) product integration

Accepted Answer

This is an example of product extension, where a company offers the same product in different countries without any modifications or adaptations to cater to local preferences or needs.

Question 9

One disadvantage of direct investment when entering a new global market is
A) intermediaries have the potential to harm the brand.
B) the firm entering the foreign market must pay royalties to the government.
C) the company forgoes control over its product.
D) the financial commitments involved.
E) this method is likely to provide the fewest cost savings relative to the other global market entry options.

Accepted Answer

Direct investment requires significant financial commitments from the firm, including investment in production facilities, employee training, and marketing efforts. These costs can be substantial and may pose a significant risk for the firm if the market entry is unsuccessful.

Question 10

Which form of entry into a foreign market requires the greatest commitment?
A) direct exporting
B) direct investment
C) joint venture
D) licensing
E) indirect exporting

Accepted Answer

Direct investment requires the greatest commitment as it involves setting up a wholly-owned subsidiary or acquiring an existing local company in the foreign market. This option involves the highest level of financial investment, risk, and long-term commitment to the foreign market. The other options involve less commitment and risk, such as licensing which only requires granting the rights to use a company's product or process to a foreign company.

Question 11

As a general rule,a product __________ strategy seems to work best when the consumer target market for the product is alike across countries and cultures-that is,consumers share the same desires,needs,and use for the product.
A) adaptation
B) extension
C) integration
D) invention
E) customization

Accepted Answer

An extension strategy involves introducing the same product in the international market without making any changes to the original product. This works best when the consumer target market is alike across countries and cultures. Hence, option B is the best choice. Option A (adaptation) involves making changes to the product to suit the local market, which would not work in a scenario where the consumer target market is alike across countries and cultures. Option C (integration) and D (invention) are not relevant to this context. Option E (customization) involves tailoring the product to the individual needs of consumers, which may not be necessary if the consumer target market is alike.

Question 12

KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes.This is an example of which type of global marketing product and promotion strategy?
A) product extension
B) product adaptation
C) product customization
D) product invention
E) product integration

Accepted Answer

KFC adapted their product to appeal to the Japanese market. They did not invent a new product, customize it for an individual, or extend their existing product line. Product integration is not a recognized marketing strategy.

Question 13

Global companies have five strategies for matching products and their promotion efforts to global markets.Changing a product in some way to make it more appropriate for a country's climate or preferences is an example of which type of global marketing product and promotion strategy?
A) product extension
B) product customization
C) product adaptation
D) product invention
E) product integration

Accepted Answer

Product adaptation involves changing a product in some way to make it more appropriate for a country's climate or preferences. This strategy recognizes that consumers' preferences and needs vary across different countries and regions, and adapts the product accordingly to better suit their needs. Product extension refers to introducing an existing product to a new market without making any changes to it, while product customization involves tailoring a product to meet the specific needs or preferences of individual customers. Product invention refers to the creation of a completely new product, while product integration involves bundling two or more products or services together to create a new offering.

Question 14

Frito-Lay produces and markets potato chips in Russia that have seafood flavor.This is an example of which type of global marketing product and promotion strategy?
A) product adaptation
B) product integration
C) product invention
D) product customization
E) product extension

Accepted Answer

Frito-Lay has adapted their product by creating a new flavor specifically for the Russian market that incorporates local tastes and preferences for seafood.

Question 15

Global companies have five strategies for matching products and their promotion efforts to global markets.Designing a product to serve the unmet needs of a foreign nation is which type of global marketing product and promotion strategy?
A) product extension
B) product customization
C) product adaptation
D) product invention
E) product integration

Accepted Answer

The answer of Global companies have five strategies for matching...

Question 16

Even though Exxon adapts its gasoline blends for different countries based on climate,the promotion message is unchanged: "Put a Tiger in Your Tank." This type of global promotional strategy is known an
A) product extension.
B) product customization.
C) product adaptation.
D) dual adaptation.
E) dual integration.

Accepted Answer

The answer of Even though Exxon adapts its gasoline blends...

Question 17

Harley-Davidson motorcycles,Gillette razors,and Nike apparel and shoes are being sold in the same form in many countries.This is an example of which type of global marketing product and promotion strategy?
A) product customization
B) product adaptation
C) product extension
D) product integration
E) product invention

Accepted Answer

This is an example of product extension strategy, where the same product is offered in multiple countries without any significant modifications or adaptations. The promotion strategy is also standardized, using the same brand and messaging globally.

Question 18

KFC has created many offerings for its menus in China to appeal to local tastes,including the "Dragon Twister," which is a chicken wrap with Peking-duck sauce.This is an example of which type of global marketing product and promotion strategy?
A) product extension
B) product customization
C) product adaptation
D) product invention
E) product integration

Accepted Answer

The answer of KFC has created many offerings for its...

Question 19

Nescafé coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries.For example,Nescafé generally emphasizes the taste,aroma,and warmth of shared moments in its advertising around the world.However,in Thailand,Nescafé is advertised as a way to relax from the pressures of daily life.This is an example of which type of global marketing product and promotion strategy?
A) product extension
B) product customization
C) product adaptation
D) dual adaptation
E) dual integration

Accepted Answer

The answer of Nescafé coffee is marketed using different coffee...

Question 20

When Nestlé actually owns a subsidiary or division in a foreign country,such as its own ice cream manufacturing operation in China,this global market entry strategy is known as __________ and represents the greatest commitment a company can make to international sales.
A) licensing
B) local assembly
C) a joint venture
D) direct investment
E) local manufacturing

Accepted Answer

Direct investment is the global market entry strategy where Nestlé owns a subsidiary or division in a foreign country, such as its own ice cream manufacturing operation in China. This represents the greatest commitment a company can make to international sales, as it involves a significant investment in resources and operations in the foreign market.

Quiz 6: Understanding and Reaching Global Consumers and Markets

Black & Decker launched the Snake Light flexible flashlight.Created to address a global need for portable lighting,the product became a best seller in North America,Europe,Latin America,and Australia.This is an example of which type of global marketing product and promotion strategy?

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country.The distribution channels can be considered to have been successful when the product reaches the

Both Honda and Toyota have plants in the United States that use American labor.This illustrates Honda's and Toyota's use of

Adding to the complexity of global distribution is the need for ________,in addition to the channels within a foreign nation.

One advantage of direct investment when entering a new global market is that

Global companies have five strategies for matching products and their promotion efforts to global markets.The strategy of selling virtually the same product in other countries is referred to as

GlaxoSmithKline PLC of Great Britain makes Breathe-Right nasal strips.It sells the same product in many countries because customers all over the world will use them in the same way.This is an example of which type of global marketing product and promotion strategy?

One disadvantage of direct investment when entering a new global market is

Which form of entry into a foreign market requires the greatest commitment?

As a general rule,a product __________ strategy seems to work best when the consumer target market for the product is alike across countries and cultures-that is,consumers share the same desires,needs,and use for the product.

KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes.This is an example of which type of global marketing product and promotion strategy?

Global companies have five strategies for matching products and their promotion efforts to global markets.Changing a product in some way to make it more appropriate for a country's climate or preferences is an example of which type of global marketing product and promotion strategy?

Frito-Lay produces and markets potato chips in Russia that have seafood flavor.This is an example of which type of global marketing product and promotion strategy?

Global companies have five strategies for matching products and their promotion efforts to global markets.Designing a product to serve the unmet needs of a foreign nation is which type of global marketing product and promotion strategy?

Even though Exxon adapts its gasoline blends for different countries based on climate,the promotion message is unchanged: "Put a Tiger in Your Tank." This type of global promotional strategy is known an

Harley-Davidson motorcycles,Gillette razors,and Nike apparel and shoes are being sold in the same form in many countries.This is an example of which type of global marketing product and promotion strategy?

KFC has created many offerings for its menus in China to appeal to local tastes,including the "Dragon Twister," which is a chicken wrap with Peking-duck sauce.This is an example of which type of global marketing product and promotion strategy?

When Nestlé actually owns a subsidiary or division in a foreign country,such as its own ice cream manufacturing operation in China,this global market entry strategy is known as __________ and represents the greatest commitment a company can make to international sales.