Chapter 10: Brand and Product Decisions in Global Marketing

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31) Generally speaking, which of the following statements is true concerning product attributes? A) Tangible product attributes are more important than intangible ones. B) Intangible product attributes are more important than tangible ones. C) Both tangible and intangible product attributes are important. D) Neither tangible nor intangible product attributes are important. E) A product has more attributes than tangible and intangible ones.
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C) Both tangible and intangible product attributes are important.
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32) Many American car buyers perceived Korean cars as: A) durable. B) cheap. C) reliable. D) of high quality. E) good investment.
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B) cheap.
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33) An express warranty is a written guarantee that assures the buyer: A) that he or she is getting what he or she desired. B) that he or she will be able to get express response if any defects are found. C) that he or she is getting what he or she has paid for. D) that he or she will be able to contact the manufacturer whenever needed. E) that he or she has limited time for filling out information required by the manufacturer.
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C) that he or she is getting what he or she has paid for.
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34) Packaging is an important consideration for products that are shipped to markets worldwide. Which of the following statements related to packaging is not true? A) NestlĂ©’s worldwide network of packaging teams gives improvement suggestions on a quarterly basis. B) Japanese prefer plain soft colors on their packages. C) The Aquafresh Ultimate tube was designed to stand vertically. D) Coca-Cola had contour bottles in both glass and plastic versions in many countries. E) NestlĂ© asked suppliers to find a glue to make the clicking sound louder when a tube of Smarties brand chocolate candies are unwrapped.
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B) Japanese prefer plain soft colors on their packages.
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35) Coca-Cola’s distinctive contour bottle, which is sold in many countries, illustrates the point that: A) the packaging strategies can vary by country and region. B) the packaging helps in storing large sizes in refrigerators. C) the packaging strategies do not change by country and region. D) the packaging appeals only to Asian consumers. E) the packaging helps in brand identification.
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A) the packaging strategies can vary by country and region.
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36) The marketers of Corona beer achieved great success in the U.S. market by: A) retaining the bottle design originally used in Mexico. B) hiring Hispanic movie stars as endorsers. C) distributing Corona in returnable bottles. D) changing the brewing recipe to conform to American palates. E) having the label in Spanish language.
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A) retaining the bottle design originally used in Mexico.
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37) Regulators in different countries have proposed various regulations for product labeling. All of the following statements pertaining to such regulations are true except: A) mandatory health warnings on tobacco products are required in most countries. B) the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point. C) in 2008, the United States enacted a country of origin labeling (COOL) law. D) the use of terms “light” and “natural” are allowed on labels only in the United States. E) McDonald’s is posting nutrition information on all food packaging and wrappers in selected markets.
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D) the use of terms “light” and “natural” are allowed on labels only in the United States.
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38) Global marketers must understand the importance of visual aesthetics embodied in the color or shape of a product, label, or package. Which of the following statements is not true regarding the use of color in selected countries? A) Yellow color on Caterpillar’s earthmoving equipment is acceptable worldwide. B) Packaging aesthetics are particularly important to the Japanese. C) White color is associated with death and bad luck in some Asian countries. D) The red Marlboro color had to be changed in some Asian countries. E) Chinese consider the red color to be lucky.
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D) The red Marlboro color had to be changed in some Asian countries.
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39) The American Automobile Labeling Act clarifies all of the following except: A) country of foreign. B) final assembly point. C) the percentages of the major sources of every car and truck. D) information about car dealer. E) aesthetic style.
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D) information about car dealer.
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40) As outlined by branding expert Kevin Keller, the benefits of strong brand equity include all of the following except: A) greater loyalty. B) more vulnerability to marketing actions. C) less vulnerability to marketing crises. D) more inelastic consumer response to price increases. E) more elastic consumer response to price decreases.
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B) more vulnerability to marketing actions.
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41) ________ represent(s) the cumulative added value of a company’s investment in the marketing of a brand over time. A) Brand extensions B) Co-branding C) Brand image D) Brand equity E) Brand loyalty
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D) Brand equity
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42) ________ can also be thought of as an asset representing the value created by the relationship between the brand and its customers over time. A) Brand extensions B) Co-branding C) Brand image D) Brand equity E) Brand loyalty
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D) Brand equity
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43) Which of the following statements is not an example of local products or brands? A) Coca-Cola developed several branded drink products for Japan. B) Coca-Cola markets Kinely brand bottled water in India. C) BMW uses “the ultimate driving machine” slogan in India. D) Diageo PLC markets Gordon’s Edge, a gin-based ready-to-drink beverage in the United Kingdom. E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.
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C) BMW uses “the ultimate driving machine” slogan in India.
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44) Example of a “brand symbol” includes all of the following except: A) date of manufacture on Coca-Cola cans. B) the wave that appears on red Coke cans and bottle labels. C) non-word marks such as the Nike swoosh. D) three-pronged Mercedes star. E) McDonald’s golden arches.
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A) date of manufacture on Coca-Cola cans.
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45) Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims “Intel Inside.” Which branding concept does such advertising reflect? A) brand equity B) co-branding C) brand image D) brand extension E) tiered branding
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B) co-branding
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46) British entrepreneur Richard Branson has built a global business empire by: A) relying on brand extension. B) being the first to use smart cards in major markets. C) developing local brands. D) avoiding consumer businesses with established leaders. E) restricting the “Virgin” name only to airlines.
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A) relying on brand extension.
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47) Which of the following is not in the top five of the world’s most valuable brands according to 2012 rankings? A) Sony B) Microsoft C) Coca-Cola D) GE E) Nokia
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E) Nokia
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48) Maslow’s hierarchy is applicable to global marketing because it can help explain how: A) basic human needs can drive the development of global products. B) “self-actualization” is the highest-order need in Japan as well as Western nations. C) status needs in different countries can only be fulfilled with localized products. D) “luxury badging” is irrelevant to companies marketing in Asia. E) Asians differ from Westerners in their basic physiological needs.
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A) basic human needs can drive the development of global products.
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49) Alfred Zeien, former chairman of Gillette, once noted that his company’s Parker Pen unit does not have to develop a special model for Malaysia and Singapore because shoppers worldwide seek the same things when buying a gift that will serve the recipient as a status symbol. This insight relates to which level of Maslow’s hierarchy of needs? A) physiological B) safety C) social D) esteem E) self-actualization
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D) esteem
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50) Comparing the traditional formulation of Maslow’s hierarchy with the results of current research on the consumer needs and motivation in Asia, which of the following is correct? A) The lowest 2 levels of the hierarchy are the same in the traditional and Asian versions. B) The lowest 3 levels of the hierarchy are the same in the traditional and Asian versions. C) The lowest 4 levels of the hierarchy are the same in the traditional and Asian versions. D) The five levels in the traditional formulation apply equally in the West and in Asia. E) The highest levels of the hierarchy are the same in the traditional and Asian versions.
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A) The lowest 2 levels of the hierarchy are the same in the traditional and Asian versions.
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51) Which of the following is not one of the levels in the Asian version of Maslow’s hierarchy? A) physiological B) safety C) affiliation D) admiration E) self-actualization
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E) self-actualization
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52) Packaging aesthetics are particularly important to the: A) Indian. B) Chinese. C) Japanese. D) American. E) Russian.
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C) Japanese.
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53) The benefits of strong brands include all of the following except: A) greater loyalty. B) less vulnerability to marketing actions. C) less inelastic consumer response to price increases. D) more elastic consumer response to price decreases. E) larger margins.
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C) less inelastic consumer response to price increases.
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54) A global product meets the wants and needs of a global market, including the Triad which includes the following countries: A) Brazil, Russia, and China. B) Japan, Western Europe, and the United States. C) China, the United States, and Europe. D) China, India and Brazil. E) Japan, China, and Western Europe.
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B) Japan, Western Europe, and the United States.
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55) Which of the following could hinder the success of products labeled “Made in Bangladesh” or “Made in Thailand” in export markets? A) negative country-of-origin bias B) no possible quality/price positioning C) low acceptance of private brands D) lack of promotion in global markets E) high product saturation levels in global markets
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A) negative country-of-origin bias
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56) Intel inside campaign promoting both the Intel Corporation and its Pentium-brand processors in conjunction with advertising for various brands of personal computers is an example of: A) brand equity. B) brand symbol. C) co-branding. D) brand extension. E) brand loyalty.
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C) co-branding.
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57) Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation? A) companion products B) food products C) industrial products D) intangible products E) non-alcoholic drinks
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C) industrial products
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58) Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the United States. This is an example of the ________ strategy. A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
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B) product extension-communications adaptation
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59) Targeting the 300 million farmers in India who still use plows harnessed to oxen, John Deere engineers created a line of relatively inexpensive, no-frills tractors. The Deere team then realized that the same equipment could be marketed to hobby farmers and acreage owners in the United States, a segment that they had previously overlooked. This is an example of ________ strategy. A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
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B) product extension-communications adaptation
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60) Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) product-communication adaptation E) product invention
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D) product-communication adaptation
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61) 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: A) product-communications extension. B) product extension-communications adaptation. C) product adaptation-communications extension. D) product-communication adaptation. E) product invention.
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B) product extension-communications adaptation.
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62) 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? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) product-communication adaptation E) product invention
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D) product-communication adaptation
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63) 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: A) product-communications extension. B) product extension-communications adaptation. C) product adaptation-communications extension. D) product-communication adaptation. E) product invention.
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B) product extension-communications adaptation.
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64) 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? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product innovation
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E) product innovation
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65) 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? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
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E) product invention
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66) Guidelines which can assist managers in their effort to establish global brand leadership include all of the following except: A) create a compelling value proposition for customers. B) before taking brand overseas, select name, marks and symbols. C) make a process template available to all managers. D) assign specific responsibility for managing branding issues. E) make a process template for international consumers.
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E) make a process template for international consumers.
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67) 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? A) discontinuous innovation B) dynamically continuous innovation C) continuous innovation D) comparative innovation E) dynamically discontinuous innovation
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C) continuous innovation
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68) 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? A) The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation. B) The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation. C) The VCR and DVD are both dynamically continuous innovations. D) The VCR and DVD are both discontinuous innovations. E) The VCR and DVD are both continuous innovations.
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A) The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation.
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69) 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? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a comparative innovation E) none of the above
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C) a discontinuous innovation
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70) 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: A) continuous innovation. B) dynamically continuous innovation. C) discontinuous innovation. D) platform-based innovation. E) new and improved innovation.
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B) dynamically continuous innovation.
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71) 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? A) platform-based innovation B) dynamically continuous innovation C) discontinuous innovation D) continuous innovation E) none of the above
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D) continuous innovation
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72) 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? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a platform-based innovation E) none of the above
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A) a continuous innovation
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73) 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? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a platform-based innovation E) none of the above
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B) a dynamically continuous innovation
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74) By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns. A) continuous innovation B) dynamically continuous innovation C) discontinuous innovation D) platform-based innovation E) new and improved innovation
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C) discontinuous innovation
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75) 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: A) Chinese do not wear running shoes. B) ingrained Chinese values which respect authority. C) Chinese athletes use Nike shoes. D) “Just do it” in Chinese has a negative connotation. E) parents do not want their children to see such ads.
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B) ingrained Chinese values which respect authority.
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76) The challenges in bringing the Smart across Atlantic include all of the following except: A) the euro’s strength relative to dollar. B) DaimlerChrysler merger ended. C) Smart was under the ownership of DaimlerChrysler. D) Smart was under the ownership of Daimler AG. E) distribution and promotion critical to a successful U.S. launch.
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C) Smart was under the ownership of DaimlerChrysler.
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77) Which of the following consumer products companies experienced a major product failure in Europe due to inadequate test marketing? A) Procter & Gamble B) Colgate C) Kao D) Unilever E) Seagram
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D) Unilever
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78) 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: A) synergy with existing Virgin products. B) pricing and return on investment. C) marketing opportunities. D) if the idea “uses or abuses” the Virgin brand. E) aesthetic attributes of competitors products.
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E) aesthetic attributes of competitors products.
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79) 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? A) Swatch B) Volkswagen C) Nissan D) Ford E) DaimlerChrysler
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E) DaimlerChrysler
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80) 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: A) wind energy cracked a turbine blade and broke off a tower in Illinois. B) cracks were found on more than 60 blades on turbines run by Deere. C) Suzlon was battling product reliability and durability problems. D) Suzlon faced a cash crunch. E) policymakers in many parts of the world supported Suzlon.
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E) policymakers in many parts of the world supported Suzlon.

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