International Marketing, 18e (Cateora)
Chapter 13 Products and Services for Consumers
1) Global competition has put more power in the hands of the seller.
2) The cost and quality of the product are among the most important criteria by which purchases
are made.
3) Consumer perceptions of a quality product often have more to do with market-perceived
quality than performance quality.
4) When there are alternative products in a market, all of which meet performance quality
standards, the product chosen is the one that meets market-perceived quality attributes.
5) The decision to standardize or adapt a product is less important in delivering quality than
price.
6) The term product homogenization is used to describe the changes mandated by local product
and service standards.
7) Green marketing is the term frequently used to identify a marketer’s efforts to reduce its
dependency on U.S. dollars as the standard for international exchange.
8) The European Commission (EC) mandate requires a product to be evaluated on all significant
environmental effects throughout its life cycle, from manufacturing to disposal.
9) An important first step in adapting a product to a foreign market is to determine the cost-
benefit as perceived by the intended market.
10) Adaptation of the nonphysical features of a product should be avoided when adapting the
product to a new culture.
11) From a sociological point of view, any idea perceived as new by a group of people is an
innovation.
12) According to Everett Rogers, the element of time differentiates elements in the diffusion of
new ideas from other types of communication research.
13) One of the three variables that affect the rate of diffusion of a product is the perceived
attributes of product innovation.
14) One variable that affects the rate of diffusion of a product is the actual attributes of the
innovation.
15) In general, the rate of diffusion of a product is negatively related to its relative advantage.
16) Product diffusion or acceptance is more rapid when product perceptions are similar to current
cultural values.
17) The packaging component of the Product Component Model consists of the physical
product—the platform that contains the essential technology—and all its design and functional
features.
18) One of the core components in the Product Component Model is the product platform.
19) According to the Product Component Model, the instructions for using the product and the
warranty of the product are included under the packaging component.
20) One of the consistencies that marketers can look forward to when marketing products abroad
is that almost all labeling laws worldwide are essentially the same.
21) In countries with low literacy rates, the pictures and symbols on products are taken literally
as instructions and information.
22) The support services component of the product component model contains such items as
repair and maintenance and availability of spare parts.
23) Services such as insurance and dry cleaning typically are classified as tangible.
24) Services are distinguished from products on the basis of their durability, homogeneity, and
separability.
25) The majority of services enter foreign markets by licensing, franchising, or direct investment.
26) Cultural barriers play a bigger role in services than in merchandise trade.
27) In the context of global marketing, a product’s country of origin does not affect its brand’s
image significantly.
28) Brand image is at the very core of business identity and strategy.
29) Products from developing countries have the highest quality image.
30) Effective advertising and proper positioning of products can help brands to improve a less-
than-positive country stereotype.
31) What impact has global competition had on business activities in the international
marketplace?
A) It has shifted the focus from a consumer’s market to a seller’s market.
B) It has increased product life cycles.
C) It has put more power in the hands of the customer.
D) It has reduced the competitive spirit of most businesses in a marketplace.
E) It has limited the choices of the consumers.
32) What is one of the top two criteria for global market consumers when making purchase
decisions?
A) appearance
B) size
C) technology
D) quality
E) service
33) What are the two dimensions that define the quality of a product or service?
A) consumer choice quality and process quality
B) market-perceived quality and performance quality
C) product quality and market quality
D) actual quality and assumed quality
E) absolute quality and relative quality
34) Product ________ is the term used to describe the changes mandated by local product and
service standards.
A) localization
B) protectionism
C) disapprobation
D) dilution
E) homologation
35) Exercise Away Products found out it needed to shorten the legs of its treadmills sold in
China owing to the height of the average Chinese person. By doing this, Exercise Away Products
has achieved
A) product homologation.
B) global product standardization.
C) product dilution.
D) product obsolescence.
E) product disapprobation.
36) A European chocolate manufacturer received several complaints from customers about the
quality of its products when it began selling them in a tropical country. The firm had to
repackage its chocolate bars with an extra plastic wrapper to protect it from the heat and dust.
Which factor in the local market is most likely to have dictated the company’s product adaptation
in this scenario?
A) legal requirements
B) economic requirements
C) political requirements
D) climatic requirements
E) technological requirements
37) Bragster Bar, a brand of energy bars in Canada, sells its bars singly or in packs of two in
South Asian markets instead of their regular multiple-item packaging that contains 10 or 20 bars.
What requirement of the local market most likely influenced Bragster Bar’s packaging decision?
A) legal
B) political
C) economic
D) technological
E) cultural
38) Downward Dog Wines had to market its products with a different name in a foreign market
as it was mandatory to translate the name into the local language. Which factor has most likely
influenced the compulsory change of Downward Dog’s product name in the foreign market in
this scenario?
A) legal requirement
B) climatic requirement
C) technological requirement
D) monetary requirement
E) economic requirement
39) A U.S. cosmetics company had to increase the SPF value of its sunscreen lotions marketed in
the Middle East to provide more protection against UV radiation. Which requirement dictated the
product adaptation?
A) legal
B) cultural
C) economic
D) climatic
E) political
40) A television manufacturer in South Korea had to simplify its televisions before introducing
them to the Nigerian markets, as the country lacked the skills to repair the product in case of a
malfunction. The local salesforce also did not have the sufficient knowledge about the
installation of the product. The requirement that is influencing product adaptation in this scenario
is
A) legal
B) climatic
C) political
D) cultural
E) technological
41) A women’s clothing company based in Singapore had to modify its clothes before
introducing them in Iran, as it needed to meet the needs of the women who are generally
expected to cover themselves completely as per societal norms. To adapt its clothes to Iranian
markets, the company used opaque material and provided accessories like scarves. Which
requirement has dictated the product adaptation?
A) legal
B) cultural
C) technological
D) economic
E) climatic
42) What is the definition of green marketing?
A) It refers to word-of-mouth marketing, where a company develops customers who become
voluntary advocates of a product.
B) It refers to inbound marketing used on websites in the form of a banner, text, or graphic.
C) It refers to the type of marketing that takes place on the Internet, where all the marketing
resources and assets are transferred online.
D) It is used to identify concerns with the environmental consequences of a variety of marketing
activities.
E) It refers to nontraditional or stealth marketing campaigns.
43) PG Autos introduces a new technology in its cars to improve their mileage and reduce carbon
emissions. It also takes measures to improve its production facilities in order to reduce its carbon
footprint. Actual introduction of green measures to meet the government guidelines rather than
just through advertising and marketing shows that PG Autos engages in ________ marketing.
A) permission
B) recycle
C) green
D) black
E) greenwash
44) Which country or group of countries has been at the forefront of the “green movement”?
A) The United States
B) Japan
C) Europe
D) OPEC countries
E) NAFTA countries
45) As part of the “green movement,” the European Commission has passed legislation to control
all kinds of packaging waste throughout the European Union. Two critical issues that affect
product development are the control of the packaging component of solid waste and
A) the prevalence of similar environmental standards across different member countries.
B) consumer demand for environmentally friendly products.
C) higher government subsidies for greener technologies.
D) the continuous availability of alternative energy resources for production.
E) the proven efficient management of inventory of conventional energy products.
46) What is a physical attribute of a motorcycle that is essential for its primary function?
A) color
B) price
C) mobility
D) design
E) popularity
47) An important first step in adapting a product to a foreign market is to determine the
A) degree of newness of the product as perceived by the intended market.
B) personal ethics of individuals in the target market.
C) regional political parties present in the domestic market.
D) language problem of the intended market.
E) product’s compliancy to irrational beliefs of its potential foreign consumers.
48) From a sociological viewpoint, any idea perceived as new by a group of people is considered
as
A) a creation
B) an adaptation
C) a declension
D) a tradition
E) an innovation
49) Innovation spreads by the process of
A) diffusion.
B) filtering.
C) dissolution.
D) flighting.
E) liquidation.
50) According to Everett Rogers, the goals of the diffusion researcher and the marketer are to
shorten the time lag between
A) the dispatch of the product from the company and the time it takes to reach the customer.
B) the time that a budget is determined and the time needed for the funds to reach the
communication channels.
C) initial investment and the profits obtained from those investments.
D) introduction of an idea or product and its widespread adoption.
E) introduction of an idea or product and when revisions can be made.