Global Marketing Management, 8e (Keegan)
Chapter 10 Product Decisions
1) A product could be a tangible object or an intangible service.
2) Intangible product attributes do not play a significant role in global marketing.
3) A national product is offered in a single national market.
4) The term regional product is synonymous with local product in the United States.
5) International products are exclusively offered in global markets.
6) Some global products are designed to meet the needs of a national market.
7) A global product is considered as a global brand.
8) The marketing mix for a global brand can vary from country to country.
9) Global products cannot be converted into global brands.
10) Developing a global product design increases a company’s research and development costs.
11) Creating global brands requires a different kind of marketing effort than to create one or two
national brands.
12) Repositioning existing brands is simpler than creating a new brand in a global market.
13) Exploiting a particular feature, benefit, or attribute of a product is a frequently used
positioning strategy.
14) “Transformation advertising” describes advertising that seeks to change the experience of
buying and using a product.
15) Marketing of high-touch products requires more emphasis on specialized information and
less emphasis on image.
16) High-touch products may have a global appeal by virtue of their country of origin.
17) A product saturation level is the percentage of potential buyers who own a particular product.
18) Unit cost of a product is directly related to the production volume.
19) Compliance with the laws and regulations of a global market can lead to increases in costs.
20) Organizations must ensure that its products are compatible to the environment in which it is
being used.
21) Every country has a monopoly on a favorable foreign reputation for its products or a
universally inferior reputation.
22) Country stereotyping can present a considerable disadvantage to a competitor in a given
market.
23) For international companies, the dual extension strategy grows out of a geocentric
orientation.
24) Dual adaptation is essentially a combination of the product extension/communication
adaptation and product adaptation/communication extension approaches.
25) A global company adapts a dual extension strategy based on an assumption that every market
is alike.
26) For a multinational company, the product adaptation strategy grows out of a polycentric
orientation, as it assumes that all markets are different.
27) Dual extension is the best approach to international and multinational marketing.
28) 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.
29) If a product is successful in its home country, it is not necessary to test market in new
geographic markets.
30) 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
31) 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.
32) 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.
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
34) 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
35) 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
36) 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
37) 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
38) 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
39) 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
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
41) 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
42) 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
43) 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
44) 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
45) Explain the product positioning strategy based on a product’s attribute/benefits with an
example?
46) How do organizations identify new-product ideas?