Deck 10: Product Decisions

Question 1

The marketing mix for a global brand can vary from country to country.

Answer 1

True

Question 2

Developing a global product design increases a company's research and development costs.

Answer 2

False

Question 3

The term regional product is synonymous with local product in the United States.

Answer 3

True

Question 4

Some global products are designed to meet the needs of a national market.

Question 5

Global products cannot be converted into global brands.

Question 6

Exploiting a particular feature, benefit, or attribute of a product is a frequently used positioning strategy.

Question 7

Marketing of high-touch products requires more emphasis on specialized information and less emphasis on image.

Question 8

International products are exclusively offered in global markets.

Question 9

Intangible product attributes do not play a significant role in global marketing.

Question 10

A national product is offered in a single national market.

Question 11

Unit cost of a product is directly related to the production volume.

Question 12

A product saturation level is the percentage of potential buyers who own a particular product.

Question 13

Repositioning existing brands is simpler than creating a new brand in a global market.

Question 14

Creating global brands requires a different kind of marketing effort than to create one or two national brands.

Question 15

A global product is considered as a global brand.

Question 16

A product could be a tangible object or an intangible service.

Question 17

Organizations must ensure that its products are compatible to the environment in which it is being used.

Question 18

"Transformation advertising" describes advertising that seeks to change the experience of buying and using a product.

Question 19

Compliance with the laws and regulations of a global market can lead to increases in costs.

Question 20

High-touch products may have a global appeal by virtue of their country of origin.

Question 21

Dual adaptation is essentially a combination of the product extension/communication adaptation and product adaptation/communication extension approaches.

Question 22

Dual extension is the best approach to international and multinational marketing.

Question 23

Every country has a monopoly on a favorable foreign reputation for its products or a universally inferior reputation.

Question 24

Countries pursuing the ________ strategy sell the same product with the same promotional appeal as used in the home country, in world-market segments.

A) product adaptation/communication extension
B) product extension/communication adaptation
C) dual extension
D) dual adaptation

Question 25

A global company adapts a dual extension strategy based on an assumption that every market is alike.

Question 26

Country stereotyping can present a considerable disadvantage to a competitor in a given market.

Question 27

How is a global brand different from a global product?

A) A global brand can be made a global product, whereas a global product cannot become a global brand.
B) A global brand's market positioning is different when compared to that of a global product.
C) A global brand's strategic principles are fundamentally different from those of a global product.
D) A global brand carries the same name and image from country to country, whereas a global product does not.

Question 28

Which of the following actions should a global marketer consider to counter the country stereotyping problem in global markets?

A) export products without any modifications
B) restrict production to home country
C) develop an international image
D) sell products at below-market prices

Question 29

It is better for a company to have a centralized product development strategy as opposed to one which is dispersed in many countries around the world.

Question 30

Which of the following is true about global products?

A) They always carry the same name and image from country to country.
B) They are offered in every world region at every stage of development.
C) They are a symbol about which customers have beliefs and perceptions.
D) They are exclusively used as an umbrella for introducing new products in the market.

Question 31

For international companies, the dual extension strategy grows out of a geocentric orientation.

Question 32

How do national products cause substantial opportunity costs to companies?

A) by restricting companies from utilizing global leverage in marketing and production
B) by transferring the experience gained in one market to other markets
C) by utilizing the expertize acquired by managers in a single product in other markets
D) by allowing managers from outside markets to acquire product expertise

Question 33

Product ________ refers to the act of locating a brand in customers' minds over and against other products.

A) differentiation
B) sampling
C) positioning
D) extension

Question 34

If a product is successful in its home country, it is not necessary to test market in new geographic markets.

Question 35

Which of the following is the easiest product marketing strategy when pursuing opportunities outside the home market?

A) product adaptation/communication extension
B) dual extension
C) product extension/communication adaptation
D) dual adaptation

Question 36

Which of the following types of products requires a marketing approach that emphasizes less on specialized information and more on image?

A) high-tech products
B) high-touch products
C) agricultural products
D) unsought products

Question 37

Briners Cafe promotes their products as a "quick snack for a busy life" in the United States, and advertises the same products as "cheap and delicious" in the Asian countries. In this case, the product marketing strategy used by Briners is referred to as ________.

A) product adaptation/communication extension
B) product extension/communication adaptation
C) dual extension
D) dual adaptation

Question 38

Under which of the following circumstances would the saturation levels of a product most likely increase in a global market?

A) when the national income per capita of a country increases
B) when product supply does not meet product demand
C) when a product appeals to only a few segments of a targeted market
D) when the economic growth of a country stagnates

Question 39

For a multinational company, the product adaptation strategy grows out of a polycentric orientation, as it assumes that all markets are different.

Question 40

A global marketing strategy where companies use the basic home-market communications strategy while adapting the product to local use or preference conditions is referred to as ________.

A) product/communication extension
B) product extension/communication adaptation
C) product adaptation/communication extension
D) product/communication adaptation

Question 41

How do organizations identify new-product ideas?

Question 42

Rivera Inc., a leading mobile manufacturer in the United States, manufactures a new product similar to its existing line of high-end smart phones to meet the demands for a low-cost product in the developing countries. They also plan to use new ads that are more sensitive to those countries. In this case the product marketing strategy used by Rivera is referred to as ________.

A) mono adaption
B) product extension/ communication adaptation
C) dual extension
D) dual adaptation

Question 43

Which of the following types of companies will utilize the dual extension strategy based on the assumptions that all markets are alike?

A) global
B) international
C) transnational
D) domestic

Question 44

Explain the product positioning strategy based on a product's attribute/benefits with an example?

Question 45

In ________, the basic home-market communications strategy is retained while the product is changed to local use or preference conditions.

A) dual extension
B) mono adaption
C) product extension/communication adaptation
D) product adaptation/communication extension

Question 46

When the environmental conditions and consumer preferences of a global market differ from a domestic market, companies should use a ________ strategy.

A) dual extension
B) product extension/communication adaptation
C) product adaptation/communication extension
D) dual adaptation