Deck 11: Global Product Policy Decisions Ii: Marketing Products and Services

Question 1

In 2008, which of the following auto brands was ranked number one in the global auto industry?

A) BMW
B) Mercedes
C) GM
D) Ford
E) Toyota

Answer 1

E

Question 2

A desire to reflect its American roots motivated Disney to change the name for its Paris themepark from Euro Disney to __________________.

A) Disneyland Village
B) Disneyland Park
C) Disneyland Paris
D) Disneyland Europe
E) Disneyland France

Answer 2

C

Question 3

Brand equity for global brands varies greatly from country to country. All of the following factors contribute to the variation EXCEPT:

A) history.
B) competitive climate.
C) marketing support.
D) cultural receptivity to brands.
E) brand equity scale.

Answer 3

E

Question 4

The most obvious reason for having a global brand would be to take advantage of:

A) power promotions.
B) a large labor and selling force.
C) economies of scale.
D) coordinated logistics.
E) corporate vision.

Question 5

In international marketing, a firm's global brand structure is shaped by the following three types of factors:

A) firm-based drivers, product-market derivers, and the manufacturing dynamics.
B) firm-based drivers, hi-tech derivers, and Web dynamics.
C) firm-based drivers, product-market derivers, and market dynamics.
D) firm-based drivers, product-market derivers, Internet dynamics.
E) none of the above

Question 6

Brand-name awareness, perceived quality, and other associations invoked by the brand name in the customer's mind are all illustrations of the concept called
_______________.

A) brand color
B) brand equity
C) brand warranty
D) local brand value
E) brand mark

Question 7

The following four branding strategies are available to markets EXCEPT:

A) solo branding.
B) hallmark branding.
C) family(umbrella) branding.
D) Extension branding.
E) horizontal branding.

Question 8

A key strategic issue that appears on international marketers' agendas is whether there should be a ________________________.

A) national brand
B) country brand
C) regional brand
D) local brand
E) global brand

Question 9

In 2008, which of the following brands was ranked the number one brand in the world?

A) Disney
B) Coca-Cola
C) GE
D) Nokia
E) IBM

Question 10

____________________ often justify(ies) local branding instead of global branding.

A) Domestic barriers
B) Regulatory barriers
C) Cultural barriers
D) Social barriers
E) Religious barriers

Question 11

Linked to the brand name is a collection of assets and liabilities called ____________.

A) the trademark
B) the patent
C) knowledge
D) proprietary investments
E) brand equity

Question 12

Brand equity for global brands varies greatly from country to country. All of the following factors contribute to the variation EXCEPT:

A) competitive climate.
B) marketing support.
C) cultural receptivity to brands.
D) literacy.
E) product category penetration.

Question 13

All of the following are questions that must be asked when building up and managing brand equity in a multinational setting EXCEPT:

A) How do we strike a balance between a global brand that shuns cultural barriers and one that allows for local requirements?
B) What aspects of service are too expensive to be included in the brand warranty?
C) What aspects of brand policy can be adapted to global use?
D) Which brands are destined to become "global" mega-brands?
E) How do you execute the changeover from a local to a global brand?

Question 14

A truly ________________ is one that has a consistent identity with consumers across the world.

A) private brand
B) public brand
C) global brand
D) local brand
E) government brand

Question 15

In 2008, which of the following brands was ranked number one in the world among the high-tech companies?

A) Microsoft.
B) IBM.
C) Intel.
D) Hewlett Packard.
E) Dell.

Question 16

"How do we strike a balance between a global brand that shuns cultural barriers and one that allows for local requirements" is an illustration of a question that needs to be
Asked when building up and managing _________________ in a multinational setting.

A) proprietary investments
B) brand equity
C) brand warranty
D) local brand name
E) brand mark

Question 17

Mecca Cola is a new soft drink that was launched by a ____________________ entrepreneur to cash in on anti-America sentiments in Europe.

A) Irish
B) English
C) Dutch
D) German
E) French

Question 18

The German company Henkel is always customizing its brand portfolio, positioning, and product formulations. The two main challenges that the company faces are:

A) global brand and beta line management.
B) global brand and quality line management.
C) global brand and modular line management.
D) global brand and hybrid line management.
E) global brand and product line management.

Question 19

A ____________ is a name, term, sign, symbol, or combination of them which is intended to identify the goods and services of one seller or group of sellers and to
Differentiate them from those of competitors.

A) trademark
B) patent
C) signature
D) figure
E) brand

Question 20

Marlboro quickly became the leading cigarette brand in Hong Kong when it positioned itself as being the leading brand in the United States. This strategy is
Attributed to Marlboro as being a:

A) global brand.
B) geo brand.
C) regional brand.
D) country brand.
E) local brand.

Question 21

The ______________ of the product assortment refers to the number of items that the company sells within a given product line.

A) length
B) width
C) horizontal scale
D) vertical scale
E) consistency

Question 22

Global product line mix options could be:

A) an extension of the home country product line
B) a subset of the home country product line
C) a mix of local and home country
D) localized only
E) all of the above

Question 23

Small firms with narrow product assortment will normally choose which of the following strategies when attempting to enter an international market?

A) an extension of the domestic line.
B) an extension of a joint venture or strategic alliance.
C) a subset of the home market's product line.
D) a mixture of local and nonlocal product lines.
E) a completely localized product line.

Question 24

Most companies sell a wide assortment of products. The assortment is usually described on the dimensions of ______________________ of the product mix.

A) width and scale
B) width and timing
C) width and ingredients
D) width and length
E) scale and length

Question 25

With respect to a brand name changeover strategy, the __________________ strategy where the company simply drops the old brand name and immediately replaces it
With the global name.

A) transparent forewarning
B) summary axing
C) fade-in/fade-out
D) pyramid focusing
E) parallel dimension

Question 26

_________________ is a system where a single banner brand is used worldwide, often with a sub-brand name, for almost the entire product mix of the company.

A) Domestic branding
B) National branding
C) Manufacturer's branding
D) Store branding or private labeling
E) Umbrella (corporate) branding

Question 27

With respect to a brand name changeover strategy, the _________________ strategy alerts customers about the brand name change (via communications such as in-store
Displays).

A) transparent forewarning
B) summary axing
C) fade-in/fade-out
D) pyramid focusing
E) parallel dimension

Question 28

When Mars candy company took over Raider candy products and used the theme line "Now Raider becomes Twix, for it is Twix everywhere in the world," the
Company used the ________________________ strategy for changing brand names.

A) transparent forewarning
B) summary axing
C) fade-in/fade-out
D) pyramid focusing
E) parallel dimension

Question 29

The __________________ procedure uses a product line as a listening post for the new foreign market to see what product items work best.

A) drop/add matrix
B) ship and shop approach
C) probing and learning approach
D) seal and deal approach
E) push down approach

Question 30

Brand architecture guides the dynamics of the firm's brand __________________:

A) portfolio.
B) color.
C) basket.
D) Web
E) none of the above.

Question 31

According to Nestle's Branding Tree, the company has four types of brands in its global operations EXCEPT:

A) plain brands.
B) local brands.
C) regional brands.
D) worldwide strategic brands.
E) worldwide corporate brands.

Question 32

Euro Disney eventually becoming Disneyland is an example:

A) transparent forewarning.
B) summary axing.
C) fade-in/fade-out.
D) pyramid focusing.
E) parallel dimension.

Question 33

All of the following are brand areas that might need protection EXCEPT:

A) the name itself.
B) the slogan.
C) the jingle.
D) visual imagery.
E) the size of the logo.

Question 34

The ______________ of the product assortment refers to the collection of different product lines marketed by the firm.

A) length
B) width
C) horizontal scale
D) vertical scale
E) consistency

Question 35

McDonald's golden arches are part of the famous brand. Which of the following elements best describes that element of the brand that should be protected (according
To the example provided)?

A) the name itself.
B) the slogan.
C) the jingle.
D) visual imagery.
E) the size of the logo.

Question 36

With respect to a brand name changeover strategy, the _________________ strategy ties the new global brand name to the existing local brand name. After a transition
Period, the old name is dropped.

A) transparent forewarning
B) summary axing
C) fade-in/fade-out
D) pyramid focusing
E) parallel dimension

Question 37

Product lines can be categorized as:

A) Core product, niche items, seasonal products, and filler products
B) Core product, niche items, seasonal products, and filter products
C) Core product, niche items, seasonal products, and final products
D) Core product, niche items, seasonal products, and flimsy products
E) None of the above

Question 38

Blistex, a tiny U.S. company that makes primarily lip-care products, has a very limited range of product lines that are marketed to foreign markets. Blistex would
Probably choose which of the following strategies for entering foreign markets?

A) an extension of the domestic line.
B) an extension of a joint venture or strategic alliance.
C) a subset of the home market's product line.
D) a mixture of local and nonlocal product lines.
E) a completely localized product line.

Question 39

All of the following are drivers that impact the composition of a firm's international product line EXCEPT:

A) customer service and warranty requirements.
B) customer preferences.
C) competitive climate.
D) organizational structure.
E) history.

Question 40

When comparing the product mix in the company's host and home markets, all of the following are possible scenarios EXCEPT:

A) an extension of the domestic line.
B) an extension of a joint venture or strategic alliance.
C) a subset of the home market's product line.
D) a mixture of local and nonlocal product lines.
E) a completely localized product line.

Question 41

Trying to obtain sanctions against countries that tolerate product piracy would be an example of which of the following strategic options available to international
Marketers trying to stop product piracy?

A) joint ventures.
B) lobbying activities.
C) legal action.
D) product policy options.
E) communication options.

Question 42

Brand piracy might cause which outcomes?

A) revenue losses to the company
B) price increases by the MNC to identify the goods as genuine
C) better diffusion of the brand
D) consumer danger from poor quality fakes
E) both A and D

Question 43

With respect to product categories analyzed on the basis of sales turnover, a _____________ product is one where the item represents the bulk of the subsidiary's
Sales volume.

A) core product
B) cultural product
C) niche item
D) seasonal product
E) filler product

Question 44

Intellectual property rights violations have been a major problem in China. Which of the following strategic options could be available to international marketers
In the area of product piracy?

A) customs.
B) lobbying activities.
C) legal action.
D) product policy options.
E) all of the above.

Question 45

Holding cultural stereotypes about countries as an important source in assessing the value of a product is an example of:

A) the country of origin (COO) effect.
B) nationalism.
C) racial bias.
D) social sensitivity.
E) xenophobia.

Question 46

With respect to product categories analyzed on the basis of sales turnover, a _____________ product is one where the product appeals to a small segment of the
Population (which might grow in time).

A) core product
B) cultural product
C) niche item
D) seasonal product
E) filler product

Question 47

One of the major challenges faced by international marketers of services is:

A) protectionism.
B) high costs.
C) patent infringement.
D) piracy.
E) low profits.

Question 48

With respect to product categories analyzed on the basis of sales turnover, a _____________ product is one where the product is only a small portion of the
Subsidiary's overall sales. These even might be "dead-weight" items.

A) core product
B) cultural product
C) niche item
D) seasonal product
E) filler product

Question 49

All of the following are strategic options available to international marketers to stop product piracy EXCEPT:

A) joint ventures.
B) lobbying activities.
C) legal action.
D) product policy options.
E) communication options.

Question 50

Find the general statement about the country of origin (COO) effect listed below that is NOT true.

A) COO effects are not flexible.
B) consumers prefer domestic products over imports.
C) the critical factor appears to be the place of manufacture rather than the location of the company's headquarters.
D) COO effects do not change very much over time.
E) demographics make a difference.

Question 51

The need for direct customer interface in providing services means that service providers must often have ____________________.

A) a warranty
B) a command of the local language
C) a local presence
D) low profit expectation
E) an inside government contact

Question 52

When international marketers warn consumers about the ramifications of accepting or buying counterfeit merchandise, this would be an example of which of the following
Strategic options available to international marketers trying to stop product piracy?

A) joint ventures.
B) lobbying activities.
C) legal action.
D) product policy options.
E) communication options.

Question 53

A good place to start is to analyze each individual country's product portfolio on the basis of a sales turnover basis. Product lines can be categorized by all the following
Ways EXCEPT:

A) core products.
B) cultural products.
C) niche items.
D) seasonal products.
E) filler products.

Question 54

With respect to product categories analyzed on the basis of sales turnover, a _____________ product is one where the product has most of its sales during limited
Times during the year.

A) core product
B) cultural product
C) niche item
D) seasonal product
E) filler product

Question 55

All of the following statements about the country of origin effect (COO) are true EXCEPT:

A) COO effects are restricted to Europe.
B) Asian consumers prefer domestic products over imports.
C) the critical factor appears to be the place of manufacture rather than the location of the company's headquarters.
D) COO effects do not change very much over time.
E) psychographics make a difference.

Question 56

The "Made In" label as an important source of assessing the value of a product is an example of:

A) regionalism
B) nationalism.
C) materialism
D) social sensitivity.
E) the country of origin (COO) effect.

Question 57

LVMH, the owner of wide variety of upscale liquor brands, redesigned its bottles to make it more difficult for copycatters to reuse LVMH bottles for their own brews.
This would be an example of which of the following strategic options in product
Piracy:

A) product policy options.
B) lobbying activities.
C) legal action.
D) hybrid options.
E) communication options.

Question 58

Regarding opportunities in the global service industries, some of the _________ rules have been extended to the international services trade under the new WTO regime.

A) World Bank
B) International Monetary Fund
C) United Nations
D) GATT (General Agreements on Tariffs and Trade)
E) none of the above

Question 59

Yamaha decided to combat China's counterfeiters by launching new motorcycle models at a similar price as fake products. This would be an example of which of the
Following strategic options in product piracy:

A) joint ventures.
B) lobbying activities.
C) legal action.
D) product policy options.
E) communication options.

Question 60

Pirated products tend to be of ______________ quality.

A) good
B) poor
C) high
D) special
E) none of the above

Question 61

Interbrand's most valuable brands list is dominated by American brands.

Question 62

In solo branding, each brand stands on its own with a product or brand manager
running it.

Question 63

The number one brand in the world in market value is IBM.

Question 64

Global service firms often benefits from:

A) scale economies.
B) weight economies.
C) hybrid economies.
D) perfect economies.
E) visible economies.

Question 65

If a company simply drops the old brand name and immediately replaces it with the
global name, it is called summary axing.

Question 66

A good example of a global brand name is Microsoft.

Question 67

Brand equity is usually consistent from country to country.

Question 68

To bridge cultural gaps between the home and host market, service companies often customize the product to the local market. This can be done by spotting
_________________________.

A) environmental opportunities
B) funding opportunities
C) regional opportunities
D) cultural opportunities
E) political opportunities

Question 69

One of the chief reasons for having a global brand is economies of scale.

Question 70

Pirated products tend to be of high quality.

Question 71

Euro Disney changed its name to Disneyland Europe.

Question 72

Family (umbrella) branding is a not hierarchy of brands that may use the company's
corporate brand.

Question 73

Companies should monitor the marketplace's response to the brand-name change
with marketing research.

Question 74

A ______________ is a name, term, sign, symbol, or combination of them which is
intended to identify the goods and services of one seller or group of sellers and to
differentiate them from those of competitors.

Question 75

One of the reasons for pursuing a global brand as part of product policy is what might be called a prestige factor.

Question 76

Country of origin (COO) effects have been shown to be unstable over time.

Question 77

With respect to brand name changeover strategies, a ________________ strategy
consists of alerting the consumer about an impending brand name change and then
changing the brand name to the global brand name.

Question 78

With respect to brand name changeover strategies, a ____________ strategy consists
of somehow tying the global brand name to the local name. Eventually, the local
brand is phased out.

Question 79

A major strength of global service firms is that their _________________.

A) local know-how
B) global know-how
C) regional know-how
D) high-tech know-how
E) political know-how

Question 80

Brand name awareness, perceived quality, and other associations invoked by the
brand name in the customer's mind can be described as being part of brand
equity.