Deck 10: Global Product Policy Decisions I: Developing New Products for Global Markets

Question 1

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 1

C

Question 2

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 2

C

Question 3

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 3

A

Question 4

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).

Question 5

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

Question 6

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.

Question 7

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.

Question 8

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

Question 9

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

Question 10

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.

Question 11

__________________ 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

Question 12

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

Question 13

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.

Question 14

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

Question 15

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

Question 16

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.

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

____________________ 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

Question 23

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

Question 24

_____________________ 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

Question 25

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.

Question 26

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

Question 27

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

Question 28

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.

Question 29

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.

Question 30

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

Question 31

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.

Question 32

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

Question 33

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.

Question 34

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.

Question 35

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.

Question 36

___________________ are always eager to experiment with new ideas and products.

A) Early adopters.
B) Early majority.
C) Late majority.
D) Laggards.
E) Prior adopters.

Question 37

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

Question 38

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.

Question 39

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

Question 40

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

Question 41

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.

Question 42

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

Question 43

Conjoint analysis is also referred to as _____________________.

A) geometric analysis
B) trade-off analysis
C) meta analysis
D) longitudinal analysis
E) metric analysis

Question 44

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

Question 45

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

Question 46

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

Question 47

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.

Question 48

______________ 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

Question 49

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.

Question 50

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

Question 51

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.

Question 52

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.

Question 53

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.

Question 54

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

Question 55

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

Question 56

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.

Question 57

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

Question 58

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.

Question 59

_______________________ 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

Question 60

A _________________ country is where a product is first introduced.

A) lag
B) low-profile
C) lead
D) high-profile
E) fast

Question 61

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

Question 62

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.

Question 63

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.

Question 64

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

Question 65

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

Question 66

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.

Question 67

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

Question 68

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.

Question 69

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.

Question 70

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

Question 71

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

Question 72

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

Question 73

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

Question 74

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

Question 75

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

Question 76

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.

Question 77

Truly global innovators are called:

A) metanational innovators.
B) delta innovators.
C) beta innovators.
D) gamma innovators.
E) none of the above.

Question 78

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.

Question 79

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

Question 80

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