Question 1

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 significant learning and creates new markets and consumption patterns. It is a new and unique innovation that disrupts the existing market or creates a new one. Examples of discontinuous innovations include the internet, smartphones, and the personal computer.

Question 2

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 3

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 (now Daimler AG) was responsible for bringing the Smart car to market, as they were the parent company of Smart.

Question 4

Product problems initially made headlines in 2008 regarding a turbine blade manufactured by Suzlon and financed by John Deere.All of the following problems were encountered by Suzlon except:

Accepted Answer

The answer of Product problems initially made headlines in 2008...

Question 5

Hindustan Lever recently developed a hard candy flavored with natural fruit juice that it sells profitably in India for the equivalent of 1 cent per piece.This is Hindustan Lever's first-ever candy product.What strategy is evident here?

Accepted Answer

This scenario describes product invention as Hindustan Lever has developed a new hard candy flavored with natural fruit juice, which is the company's first-ever candy product. It is a unique product and not an adaptation or extension of an existing product line. The fact that they are selling it profitably at a low price point suggests that the company may be trying to capture market share with a novel product.

Question 6

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

The answer of Campbell's has been marketing soup in Japan...

Question 7

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 8

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 statement mentions that the corporate development team evaluates proposals based on factors like synergy with existing products, pricing and return on investment, marketing opportunities, and whether the idea uses or abuses the Virgin brand. However, there is no mention of evaluating the aesthetic attributes of competitors' products. Therefore, option E is the correct answer as it is the only option that is not mentioned in the statement.

Question 9

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 3 different print sizes.The APS would best be described as a:

Accepted Answer

The APS represents a dynamically continuous innovation because it involves a significant change in the technology and features of traditional chemical photo processing, but it also builds upon previous knowledge and understanding of photography. It offers new features and benefits, like the ability to choose different print sizes, but doesn't completely disrupt the existing market.

Question 10

Before Ben & Jerry's launched their ice cream in the United Kingdom,the company conducted extensive research to determine whether the package design was appropriate.The research indicated that British consumers perceived the colors differently than U.S.consumers.The package design was changed accordingly.This type of strategy can be defined as:

Accepted Answer

This strategy is known as product extension-communications adaptation because the product (ice cream) remained the same while the communications (in this case, the package design) were adapted to fit the local market's perceptions and preferences.

Question 11

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 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

Unilever experienced a major product failure in Europe due to inadequate test marketing of their reformulated laundry detergent, which caused skin rashes and other negative reactions in consumers.

Question 14

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

The answer of Procter & Gamble recently introduced Pampers Rash...

Question 15

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 completely changed the way people consumed and accessed electronic entertainment through the introduction of recording and playback features. It created a new market for home entertainment and gave rise to the video rental industry.

Question 16

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

The answer of Colgate's Total is a new toothpaste brand...

Question 17

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 18

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

Accepted Answer

The answer of Guidelines which can assist managers in their...

Question 19

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 was designed to translate across national boundaries, meaning it is not a new or disruptive technology or design, but rather a product that improves on existing toothpaste options. This falls under the category of continuous innovation, which refers to small improvements or enhancements to existing products.

Question 20

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

Accepted Answer

The ingrained Chinese values which respect authority make the "Just do it" attitude inappropriate in Chinese markets. Therefore, Nike had to adapt and use Chinese athletes in their promotion.

Quiz 10: Brand and Product Decisions in Global Marketing