question

1. Ikea, the Swedish furniture chain, insists that all its stores carry the basic product line with little room for adaptation to local tastes. If research of the U.S. market showed that Americans preferred larger beds than their Swedish counterparts, which of the following strategies would be advisable to Ikea? a. standardization. b. new product development. c. adaptation. d. withdraw from market. e. lower prices to encourage attitude change.

answer

Adaptation

question

2. In the Australian market, rather than manufacturing disposable diapers, Procter & Gamble decided to import them since the size of the market did not warrant local manufacturing according to P&G. Unfortunately, by using packaging designed for the Asian region with non-English labeling, P&G alienated its customers in Australia. This is an example of improper: a. global policy decisions. b. pricing decisions. c. brand policy decisions. d. product policy decisions. e. company policy decisions.

answer

Product policy

question

3. Even though other combination alternatives can be devised, companies generally can pursue three global product strategies to penetrate foreign markets. These strategies are to extend the home-grown product/communication strategies, adapt their strategy to the local marketplace, and: a. invent new products for foreign customers. b. concentrate on services. c. apply for permission to copy domestic products. d. concentrate on image adjustment. e. focus on secondary issues (such as warranties).

answer

Invent new products for foreign customers

question

4. In the area of global product policy, companies can pursue three strategies to penetrate foreign markets. The strategies include: a. extension, adaptation, and invention. b. extension, adaptation, and prevention. c. extension, adaptation, and creation. d. extension, adaptation, and placement. e. extension, adaptation, and balancing.

answer

Extension,adaptation, and invention

question

5. Which of the following is NOT one of the strategic options available to the marketing planner, considering various product policies that could be devised for the international marketplace? a. product and communication extension--dual extension. b. communication extension--mono extension. c. product extension--communications adaptation. d. product adaptation--communications extension. e. product and communications adaptation--dual adaptation.

answer

Communication extension--mono extension

question

6. If a company were to follow a strategy of product and communication extension (dual extension) in a foreign market, an example of a product category that would fit this strategy would be _________________________. a. personal care items b. motorscooters c. gasoline d. clothing e. hand-powered washing machines

answer

Personal care items

question

7. If a company were to follow a strategy of product adaptation-communications extension in a foreign market, an example of a product category that would fit this strategy would be __________________. a. soft drinks b. motorscooters c. shampoo d. clothing e. hand-powered washing machines

answer

Shampoo

question

8. If a company were to follow a strategy of product extension-communications adaptation in a foreign market, an example of a product category that would fit this strategy would be __________________. a. soft drinks b. gum c. shampoo d. clothing e. hand-powered washing machines

answer

gum

question

9. If a company were to follow a strategy of product and communications adaptation (dual adaptation) in a foreign market, an example of a product category that would fit this strategy would be __________________. a. soft drinks b. motorscooters c. gasoline d. diet aids e. hand-powered washing machines

answer

diet aids

question

10. If a company is an early entrant in the global arena and possesses little in the way of resources, they will probably chose _____________________ as a method of entry. a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

answer

product and communication extension--dual extension

question

11. As a strategy, ____________________ will work when the company targets a "global" segment with similar needs. a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

answer

Product and communication extension--dual extension

question

12. The biggest advantage of a product and communication extension--dual extension policy is: a. it is easy for management to understand. b. it offers substantial savings because of economies of scale. c. it passes most legal tests. d. it is service oriented. e. it will usually not violate cultural taboos.

answer

it offers substantial savings because of economies of scale

question

13. Due to differences in the cultural or competitive environment, a company may choose the _______________________ strategy if it wishes to keep its product economies scale intact but customize its communications. a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

answer

product extension--communications adaptation

question

14. When the Wrigley chewing gum company markets its basic products abroad, it keeps its well-known brands but customizes promotional approaches in individual countries. Which of the following strategies best describes the strategy that Wrigley is following? a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

answer

product extension--communications adaptation

question

15. Many companies add brands to their portfolio via acquisitions of local companies. When the local brand is retained but incorporated into the existing communications strategy, the strategy can be described as being one of: a. product and communication extension--dual extension. b. product invention. c. product extension--communications adaptation. d. product adaptation--communications extension. e. product and communications adaptation--dual adaptation.

answer

product adaptation--communications extension

question

16. Differences in both the cultural and physical environment across countries call for a _________________________ strategy. a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

answer

product and communications adaptation--dual adaptation

question

17. Because of differences in preferences in flavors and government regulations regarding the marketing of diet products, Slim-Fast normally uses which of the following strategies? a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

answer

product and communications adaptation--dual adaptation

question

18. Genuinely global marketers try to figure out how to create products with a global scope rather than just for a single country. The mindset is to zero in on global opportunities. The strategy that best describes this approach is called: a. product and communication extension--dual extension. b. product invention. c. product extension--communications adaptation. d. product adaptation--communications extension. e. product and communications adaptation--dual adaptation.

answer

product invention.

question

19. Black & Decker is a good example of a company that adopts the _______________ approach to global expansion. The company aims to bring out new products that cater to common needs and opportunities around the world. a. product and communication extension--dual extension b. product invention c. product extension--communications adaptation d. product adaptation--communications extension e. product and communications adaptation--dual adaptation

answer

product invention

question

20. __________________ means offering a uniform product on a regional or worldwide basis (only minor alterations are made to meet local standards). a. Customization b. Standardization c. Miniaturization d. Assimilation e. Marginalization

answer

Standardization

question

21. The primary advantage to using a standardization approach to marketing a product in the international arena is: a. minimization of costs (which can be passed on to customers). b. more profit. c. less service complaints. d. less product returns. e. standard budgets.

answer

minimization of costs (which can be passed on to customers)

question

22. Standardization of product has a __________________ orientation (lower costs via mass production). a. market-driven b. service-driven c. budget-driven d. promotion-driven e. product-driven

answer

product-driven

question

23. ____________________ is leveraging cross-border differences in needs and wants of the firm's target customers. a. Customization b. Standardization c. Proliferation d. Expansion e. Synthesizing

answer

Customization

question

24. Customization of product has a ______________________ orientation (increase customer satisfaction by adapting products to the local needs). a. market-driven b. service-driven c. budget-driven d. promotion-driven e. product-driven

answer

market-driven

question

25. All of the following are factors that favor a globalized product strategy EXCEPT: a. common customer needs. b. global customers. c. scale economies. d. time-to-market. e. rising strength of the Latin American markets.

answer

rising strength of the Latin American markets

question

26. Many product categories show a gradual but steady ____________________ in consumer preferences. a. slowdown. b. difficulties c. convergence. d. divergence. e. rising strength of the Latin American markets.

answer

convergence

question

27. During the last decade, car buyers in the Triad markets (Japan, the United States, and Europe) have increasingly begun to have the same outlook and preferences in cars. Which of the following factors that favor globalization of product, would most accurately be associated with this trend? a. common customer needs. b. global customers. c. scale economies. d. time-to-market. e. Europe 1992 and other Regional Market Agreements.

answer

common customer needs

question

28. _____________________ means shortening the time to bring new product projects to the market. a. Delivery-to-market b. Orientation-to-market c. Time-to-market d. Extension-to-market e. Perfection-to-market

answer

Time-to-market

question

29. One attempt to combine the strengths of standardization and customization of products is to deal with both issues as functions of product design. The _______________ approach consists of developing a range of product parts that can be used worldwide. The parts can be assembled into numerous product configurations. a. core-product b. uniform commercial code c. die-casting d. modular e. Nexus

answer

modular

question

30. In a ______________________, scale economies flow from the mass production of more-or-less standard product components at a few manufacturing sites. a. convergence approach b. divergence c. linear approach d. forecasting approach e. modular approach

answer

modular approach

question

31. One attempt to combine the strengths of standardization and customization of products is to deal with both issues as functions of product design. The _______________ approach consists of developing a mostly uniform core- product/platform and then adding attachments that match local market needs. a. core-product b. uniform commercial code c. die-casting d. modular e. PRIZM

answer

core-product

question

32. With respect to product design strategies, the ___________________ approach is very popular with the French carmaker Renault. They use common core-products but customize them in each market (such as making stronger heaters for the Nordic market). a. core-product b. uniform commercial code c. die-casting d. modular e. PRIZM

answer

core-product

question

33. One of the disadvantages that a global marketer may have is ___________________. This would occur when too much standardization stifles initiative and experimentation at the local level. a. overcustomization b. micro-managing c. technocracy d. group think e. overstandardization

answer

overstandardization

question

34. One of the pitfalls that a global marketer can run into is _____________. This would occur when too much adaptation to the local market occurs and the brand becomes vulnerable to losing its unique foreigness. a. overcustomization b. micro-managing c. technocracy d. group think e. overstandardization

answer

overcustomization

question

35. Adoption rates of new products are affected by: a. population homogeneity b. proportion of women in the labor force c. cosmopolitanism d. mobility e. all of the above

answer

all of the above

question

36. In general, the rate of adoption of new products (in foreign markets) is driven by individual differences, personal influences, and: a. fashion. b. trends. c. cash on hand. d. product characteristics. e. promotion characteristics.

answer

product characteristics

question

37. In general, the adoption of new products is driven by factors such as: a. individual differences. b. personal influences. c. product characteristics. d. all of the above. e. none of the above.

answer

all of the above

question

38. ___________________ are always eager to experiment with new ideas and products. a. Early adopters. b. Early majority. c. Late majority. d. Laggards.

answer

Early adopters

question

39. Which of the following would NOT be one of the five key product characteristics that contribute to its acceptance? a. low service maintenance. b. relative advantage. c. compatibility. d. complexity. e. trialability.

answer

low service maintenance

question

40. To what extent does the new product offer more perceived value to potential adopters than exiting alternatives, would be a question that best fits with which of the following key product characteristics acceptance categories? a. observability. b. relative advantage. c. compatibility. d. complexity. e. trialability.

answer

relative advantage

question

41. Is the product consistent with exiting values and attitudes of the individuals in the social system, would be a question that best fits with which of the following key product characteristics acceptance categories? a. observability. b. relative advantage. c. compatibility. d. complexity. e. trialability.

answer

compatibility

question

42. Is the product easy to understand or use, would be a question that best fits with which of the following key product characteristics acceptance categories? a. observability. b. relative advantage. c. compatibility. d. complexity. e. trialability.

answer

complexity

question

43. The adoption rate for new products in countries with a ________________ population is usually faster than in countries with a highly diverse culture. a. heterogeneous b. complex c. diverse d. homogeneous e. polycentric

answer

homogeneous

question

44. The adoption rate for a new product in countries with a homogeneous population is usually faster than in countries with a highly diverse culture. Which of the following countries would probably have the fastest adoption based on the information provided above? a. Ireland. b. United States. c. Japan. d. United Kingdom. e. France.

answer

Japan

question

45. With respect to adoption rates in the international marketplace, it appears to be generally true that adoption rates are higher in ______________ countries than in ____________ countries. a. lead/lag b. lag/lead c. lead/middle adopters d. lag/middle adopters e. lead/opinion-lead

answer

lag/lead

question

46. A _________________ country is where a product is first introduced. a. lag b. low-profile c. lead d. high-profile e. fast

answer

lead

question

47. A _________________ country is where a product is entered after initial introduction has taken place. a. lag b. low-profile c. lead d. high-profile e. fast

answer

lag

question

48. _______________________ are people who look beyond their immediate social surroundings and are not local in their opinions. a. Domestics b. Introverts c. Negotiators d. Cosmopolitans e. Regionalists

answer

Cosmopolitans

question

49. All of the following are factors that affect product penetration in the European market (according to a recent survey), EXCEPT: a. cosmopolitanism. b. number of locals in the market. c. mobility. d. percentage of children in the labor force. e. percentage of women in the labor force.

answer

percentage of children in the labor force

question

50. A recent study examined the difference of six products in 31 developing and developed countries across the world. A key finding was that ___________________ tend to experience a far slower adoption rate than developed countries. a. European countries b. global countries c. advanced countries d. developed countries e. emerging market countries

answer

emerging market countries

question

51. All of the following are steps in the new product development process EXCEPT: a. identification of new product ideas. b. budget development. c. screening. d. concept testing. e. test marketing.

answer

budget development

question

52. Which of the following are among the best sources for finding new product ideas? a. company, customers, competition, and collaborators. b. trade magazines, television, and the internet. c. government statistics, demographic charts, and psychological profiles. d. reverse engineering, industrial spying, and out-of-date patents. e. rumors, stories, and intuition.

answer

company, customers, competition, and collaborators

question

3. Once new product ideas have been identified, the next logical step is to have the ideas _______________. a. modeled b. budgeted c. screened d. concept tested e. test marketed

answer

screened

question

54. ______________ is part of a formal scoring model in screening new products. a. New Prod b. ExProd c. YProd d. ZProd e. none of the above

answer

New Prod

question

55. Conjoint analysis is also referred to as _____________________. a. geometric analysis b. trade-off analysis c. meta analysis d. longitudinal analysis e. metric analysis

answer

trade-off analysis

question

56. A sophisticated method (sometimes called trade-off analysis) for measuring consumer preferences for product concepts is called: a. chi-square. b. correlation analysis. c. focus groups. d. regression analysis. e. conjoint analysis.

answer

conjoint analysis

question

57. The starting premise of _______________ is that people make trade-offs between the different product attributes when they evaluate alternatives (or brands) from which they pick a choice. a. chi-square b. correlation analysis c. focus groups d. regression analysis e. conjoint analysis

answer

conjoint analysis

question

58. If a consumer considered four attributes to be important in the purchase of a TV, by using ________________ the researcher might be able to determine the trade-offs between the different product attributes (such as purchase price or number of channels that could be received) when the consumer evaluated the alternatives for eventual purchase. a. chi-square b. correlation analysis c. focus groups d. regression analysis e. conjoint analysis

answer

conjoint analysis

question

59. A(n) ________________ is essentially a field experiment where the new product is marketed in a select set of cities to assess its sales potential and scores of other performance measures. a. attitude screen b. product model c. product concept d. test market e. focus concept

answer

test market

question

60. Testing objectives, testing marketing mixes, making projections of sales volume, and analyzing potential competitive marketing mixes are all reasons to conduct: a. attitude screens. b. product models. c. product concepts. d. test markets. e. focus concepts.

answer

test markets

question

61. One alternative to the test market is the _____________________. a. thought panel b. laboratory test market c. internet exposure technique d. preferred patron experiment e. use of break-even analysis

answer

laboratory test market

question

62. If prospective customers are contacted and shown commercials for the new product and existing brands (then asked to state attitudes and preferences of what they have seen), then the marketing research entity will probably have conducted a(n) __________________ instead of a full test market. a. thought panel b. laboratory test market c. internet exposure technique d. preferred patron experiment e. break-even analysis

answer

laboratory test market

question

63. A common technique to avoid a global test market is to make global sales projections based on product performance in a ________________ market. a. lag b. middle adopter c. lead d. opinionated e. innovative

answer

lead

question

64. Timing is a very important element in any new product launch. One of the strategies is described as being the ________________ where there is a phased rollout. In this approach the product uses a trickle down approach. a. sprinkler method b. shotgun method c. rifle method d. dribble method e. waterfall method

answer

waterfall method

question

65. Timing is a very important element in any new product launch. One of the strategies is described as being the ________________. This method often involves introducing the new product in the company's home market and then moving to other advanced markets. Finally, less advanced markets are exposed to the product. a. sprinkler method b. shotgun method c. rifle method d. dribble method e. waterfall method

answer

waterfall method

question

66. The prime motive for the waterfall model (in introducing new products on a global scale) is that the customization of the product for the foreign market is: a. impractical. b. very expensive. c. time consuming. d. promotionally limited. e. not supported by top management.

answer

time consuming

question

67. Timing is a very important element in any new product launch. One of the strategies is described as being the ________________ where there is a simultaneous introduction of products in other markets of the world. a. sprinkler method b. shotgun method c. rifle method d. dribble method e. waterfall method

answer

sprinkler method

question

68. A phased rollout is less demanding on the company resources whereas ____________________ are not always acceptable. a. sprinkler rollouts b. shotgun rollouts c. staggered rollouts d. dribble rollouts e. waterfall rollouts

answer

staggered rollouts

question

69. The chief reason for a company choosing the sprinkler method of new product introduction is to off-set: a. rising costs. b. unstable labor. c. competitive preemption. d. government control. e. shoddy promotions.

answer

competitive preemption

question

70. The waterfall strategy of sequential entry is preferable over the sprinkler model when all of the following conditions exist EXCEPT: a. the lifecycle of the product is relatively long. b. high costs of entry are present. c. very weak local competitors. d. anticipation of fast growth. e. no real competitors.

answer

anticipation of fast growth

question

71. The waterfall strategy of sequential entry is preferable over the sprinkler model when: a. the lifecycle of the product is relatively short. b. there are low costs of entry into the market. c. there are many competitors. d. there are weak local competitors. e. fast growth is anticipated.

answer

there are weak local competitors

question

72. The sprinkler strategy of one to two entries (globally) is preferable over the waterfall model when all of the following conditions exist EXCEPT: a. the lifecycle of the product is relatively short. b. there are low costs of entry into the market. c. there are many competitors. d. very weak local competitors. e. anticipation of fast growth.

answer

very weak local competitors

question

73. The sprinkler strategy of one to two entries (globally) is preferable over the waterfall model when: a. the lifecycle of the product is relatively long. b. high costs of entry are present. c. very weak local competitors exist. d. fast growth is anticipated. e. no real competitors exist.

answer

fast growth is anticipated

question

74. Truly global innovators are called: a. metanational innovators. b. delta innovators. c. beta innovators. d. gamma innovators. e. none of the above.

answer

metanational innovators

question

75. To harvest the benefits of metanational innovators, a company must pursue three things: a. Prospecting, assessing, and mobilizing. b. Prospecting, assessing, and delivering. c. Prospecting, assessing, and running. d. Prospecting, assessing, and planning. e. none of the above.

answer

Prospecting, assessing, and mobilizing

question

76. Companies can pursue three global strategies to penetrate foreign markets. The strategies are: extension, adaptation, and___________________.

answer

(invention)

question

77. Early market entrants often choose dual extension (product and communication extension) as a strategy to enter markets with new products.

answer

True

question

78. The biggest savings to the company when following a strategy of dual extension is in economies of scale.

answer

True

question

79. Because of their universally known products, the Wrigley chewing gum company can use product adaptation-communications extension strategies effectively.

answer

False

question

80. Local market circumstances do not favor the case of product adaptation.

answer

False

question

81. Many companies add brands to their product portfolio via acquisitions of local brands.

answer

True

question

82. Differences in both the cultural and physical environment across countries call for a ________________________ strategy.

answer

(dual adaptation)

question

83. _________________ means offering a uniform product on a regional or worldwide basis.

answer

(Standardization)

question

84. The goal of standardization is to minimize competition.

answer

False

question

85. ____________________ leverages cross-border differences in needs and wants of the firm's target customers.

answer

(Customization)

question

86. Five forces favor a globalized product strategy. These include: common customer needs, global customers, scale economies, time to market, and__________________.

answer

(Regional market segments)

question

87. Over standardization is a risk of the core-product approach to introducing new products in the world market.

answer

True

question

88. In general, the adoption of new products is driven by individual differences, personal influences, and product characteristics.

answer

True

question

89. With respect to categories of consumers that adopt new products, the __________ category is eager to experiment with new ideas or products.

answer

(Early adopters)

question

90. The lead country is where the product is introduced first.

answer

True

question

91. In marketing, new product ideas do not come from the company, customers, competition, and collaborators.

answer

False

question

92. In these days, many MNCs create organizational structures to foster global product development.

answer

False

question

93. Conjoint analysis is also called tradeoff analysis.

answer

True

question

94. In the area of a global product launch strategy, two strategic options available are: waterfall strategy and _________________________.

answer

(sprinkler model)

question

95. The waterfall model is also called staggered roll-out.

answer

False

question

96. A truly global innovators are called meta-national innovators.

answer

True

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