Deck 13: Modifying Products for International Markets

Question 1

A product that is offered to different international markets but which is adapted to suit the specific needs of each individual market is classified as a ________ product.

A) multinational
B) local
C) global
D) international
E) transnational

Answer 1

A

Question 2

Bicycles are an example of a product that is in different stages of the life cycle in different countries.

Answer 2

True

Question 3

Asian markets typically have a longer maturity stage in the product life cycle due to the tendency towards collectivism.

Answer 3

False

Question 4

The five stages of the international product life cycle are:

A) local innovation, international innovation, maturity, worldwide imitation and reversal.
B) local innovation, early adoption, early majority, late majority and laggards.
C) early market, chasm, bowling alley, tornado, main street and decline.
D) early starter, late starter, maturity, lonely international and reversal.
E) early innovation, maturity, imitation, decline and reversal.

Question 5

Multinational products are products that have potential to be extended from the domestic market to a number of international markets.

Question 6

An international product strategy that encourages national units in the organisation to learn from each other is referred to as:

A) active.
B) exemplary.
C) passive.
D) pacemaking.
E) participative.

Question 7

According to Craig et al. (2000), which three categories of product are there in the internet environment?

A) Technological, physical and service
B) Service, selling and social
C) Core, basic and expected
D) Consumer, industrial and virtual
E) Physical, virtual and transaction-related

Question 8

Diffusion refers to the movement of new products to and within overseas markets so that they are available to customers in those markets.

Question 9

A strong value chain can help a firm deliver extra value to its customers. Which of the following elements is part of a firm's value chain?

A) The performance of intermediaries
B) Service and warranty offerings
C) Warehousing and transport capability
D) All of the above
E) Options A and B only

Question 10

In the reversal stage of the international product life cycle, growing demand in advanced nations provides the stimulus for firms to start local production of the imported product.

Question 11

When business firms take their products overseas, they are often required to reassess how the business is defined. Generally, firms can be defined in terms of:

A) the segments of the market they occupy.
B) the benefits they provide to the customer.
C) the stage in the life cycle of the product they sell.
D) all of the above.
E) options A and B only.

Question 12

The internet leads to greater customisation of products to customer needs.

Question 13

With transaction-related products, the information search is conducted physically, but actual consumption of the product or service is online.

Question 14

In Asian markets the product life cycle differs in that:

A) the maturity stage tends to be shorter.
B) the growth stage tends to be shorter.
C) the innovation stage tends to be longer.
D) all of the above.
E) options A and B only.

Question 15

The significance attributed to branding is most important in:

A) markets in advanced economies.
B) markets emerging from a subsistence level.
C) market changing from a command to market economy.
D) options B and C.
E) options A and C only.

Question 16

A product that has been successful in its domestic market is guaranteed to be successful when exported to other countries.

Question 17

The participative strategy for cross-fertilising innovation encourages various national units in the organisation to learn from each other. The international manager cross-fertilises the ideas but contributes nothing of his or her own.

Question 18

The same product can offer different benefits to people in different countries.

Question 19

A product that is designed to meet the needs of market segments that are the same throughout the world is classified as a ________ product.

A) local
B) multinational
C) transnational
D) global
E) international

Question 20

Which of the following statements is true?

A) Customers around the world have different needs and will perceive products as satisfying these needs to differing degrees.
B) Modifications to products may be driven by competitive or cultural reasons.
C) Modifications to products may be driven by external factors such as the legal and political climate.
D) Products may need to be modified at the core, basic, expected, augmented or potential product level for sale in international markets.
E) All of the above.

Question 21

Discuss the factors that might lead a company to modify its products for international markets. Illustrate with examples.

Question 22

Performance standards in the use of high-technology products will sometimes differ from country to country because:

A) there can be variation in the level of technical infrastructure between nations.
B) consumers will often prefer products that are simple to use.
C) products developed in advanced nations often exceed the needs of users in less-developed countries.
D) all of the above.
E) options B and C only.

Question 23

Outline the stages to be followed in developing a new product for an international market. Illustrate using an example.

Question 24

Designing ________ products is very much a concern of ________ companies.

A) global; international
B) global; transnational
C) technological; global
D) industrial; transnational
E) international; global

Question 25

After generating product ideas, the five stages that a firm has to go through in the development of a new product are:

A) idea screening, business evaluation, product development, test marketing and product introduction.
B) product definition, prototyping, product development, product testing and trial.
C) prototyping, product development, product testing, trial and product introduction.
D) prototyping, product development, product testing, market testing and product introduction.
E) none of the above.

Question 26

When modifying products for an overseas market to meet their regulations and needs, it is important to consider:

A) any problems with trademarks.
B) the units of measurements used in the export country.
C) performance standards.
D) technology issues.
E) all of the above.

Question 27

An important factor in a firm's decision to enter the international market is that of leveraging its capabilities, which includes:

A) shared physical assets.
B) shared information.
C) shared external relationships.
D) shared expertise.
E) all of the above.

Question 28

How might a firm redefine its business when entering international markets?

Question 29

The phrase 'born global' is increasingly being used to describe firms that commence operations with a focus on their domestic market rather than on the global market.

Question 30

Discuss how a firm might leverage it capabilities in an international market.

Question 31

To develop an appropriate test market, it is necessary to select a wide market to ensure that the product is suitable for introduction.

Question 32

Identify the key elements of a firm's value chain, and explain why a strong value chain might be important to an international trading firm.

Question 33

Modification of a product may be necessary in order to cater for different product usage patterns in an overseas market. Usage patterns can be a reflection of:

A) the environment in which the product is used.
B) product affordability.
C) particular social customs.
D) all of the above.
E) none of the above.

Question 34

Performance standards, climate and warranty issues all need to be considered when developing a product for the international market.

Question 35

Which of the following statements about new product development in Japan is true?

A) Manufacturing only begins after the cost ceiling is agreed upon.
B) After market research, a targeted cost ceiling is determined.
C) Market research is the first step.
D) Negotiations take place with value-chain members to agree on the cost ceiling.
E) All of the above

Question 36

The extent to which a product will need to be modified for an overseas market will depend on:

A) the level of government regulation in the overseas market.
B) whether it is a consumer good or an industrial product.
C) the extent of relevant trademarks or patents in the overseas market.
D) all of the above.
E) options B and C only.

Question 37

When considering the direction in which the firm should proceed in an overseas market, there is a need to understand the extent to which the new capabilities acquired as a result of exposure to one overseas market can be leveraged so as to provide the firm with competitive advantage in another market.

Question 38

Discuss the basic stages in the international product life cycle.

Question 39

As an alternative to designing a new product for an overseas market from scratch, it may be possible to take existing technology and apply it to the needs of the overseas market.

Question 40

Although the modification of products involves extra costs, the costs can be more than offset by enhancing the appeal of the product to a wider market in the target overseas country.

Question 41

Building a global brand usually involves:

A) determining what brand image to project.
B) creating economies of scale in advertising.
C) the convergence of consumer tastes internationally.
D) creating a standardised product.
E) all of the above.

Question 42

In international markets, industrial marketing is distinguished from consumer marketing by unique features that include:

A) the demand for an industrial product is usually derived from the demand for the consumer product.
B) industrial goods are usually purchased for reuse in creating other products.
C) demand for industrial goods usually comes from a large number of buyers.
D) all of the above.
E) options A and B only.

Question 43

Which factors might lead to a firm using a different brand name in international markets than that used in the domestic market?

Question 44

Government regulations on packaging mostly relate to cultural differences such as the use of colour, size and shape.

Question 45

Where a firm buys business/industrial products on an ongoing basis, its buying activity is regarded as:

A) routine purchase behavior.
B) extensive problem solving.
C) ongoing contractual purchase behavior.
D) post-purchase behavior.
E) limited problem solving.

Question 46

Discuss the unique differences a firm may face when marketing industrial products internationally.

Question 47

One of the benefits of global branding is brand equity, the value attributed to the firm because of the brands it owns.

Question 48

In the buying of business products, the buying decision will often be influenced by the type of purchase being made. The three possible purchase types are:

A) domestic, international and global.
B) extensive, limited and routine.
C) standardised, modified and global.
D) initiator, influencer and gatekeeper.
E) none of the above.

Question 49

When entering the overseas market with a particular product it is necessary, at times, to change the brand name. Which of the following is a reason a company may decide on this change?

A) Transparency
B) Transculture
C) Translation
D) Transliteration
E) All of the above

Question 50

A brand may be judged global by all of the following measures EXCEPT it:

A) focuses on the product category.
B) is disassociated from country of origin effects.
C) reflects a consist positioning worldwide.
D) demonstrates a balanced country-market coverage.
E) meets a universal consumer need.

Question 51

Gatekeepers are the individuals within a buying group that negotiate the terms of the sales.

Question 52

Which of the following statements can be applied to the purpose of packaging?

A) Provide a useful method of promotion.
B) Ensure protection of the product.
C) Provide convenience in the ease of handling.
D) Ensure that it gets to the recipient safely.
E) All of the above.

Question 53

As individual countries have specific requirements for packaging, this is likely to lead to:

A) increased costs for exporters.
B) exporters avoiding the countries with these requirements.
C) regulations acting as a form of protection.
D) all of the above.
E) options A and C only.

Question 54

Discuss the functions packaging fulfills and issues each presents for international marketers.

Question 55

Demand for industrial products is derived from consumer demand for a particular product.

Question 56

Which of the following terms of sale for industrial products in international markets are often include in contracts?

A) Outsourcing
B) Credit terms
C) Price
D) All of the above
E) Options A and B only

Question 57

Discuss how products can be defined in relation to the different marketplaces, the elements of a product and why each of these elements may need to be modified. Illustrate your answer with examples.

Question 58

Firms operating in a number of markets can choose which of the following brand name strategies?

A) Use the company name as a brand name.
B) Modify the brand name in each market.
C) Use the same brand name worldwide.
D) Use different brand names in different markets.
E) All of the above.

Question 59

In decision making or influencing related to the purchasing of industrial products, those who agree to the purchase and negotiate the terms of trade are the:

A) initiators.
B) users.
C) purchasers.
D) influencers.
E) deciders.

Question 60

Brand names do NOT always travel well in international markets. This is particularly true if the language is ideographic. In which of the following countries is this likely to occur?

A) China
B) Iran
C) Israel
D) Japan
E) Options A and D only