Chapter 11: Product Management and Global Brands
TRUE/FALSE
1. Making a profit is the key to successful marketing.
2. The core of a firm’s international operations is pricing.
3. In order to differentiate a product, a marketer tries to highlight the similarities it has with products in
the same class so as to highlight the likenesses of each.
4. Adaptation decisions are made to enhance the exporter’s competitiveness in the marketplace.
5. The more exporters learn about local market characteristics in individual markets, the more they are
able to establish similarities and, as a result, customize their marketing approach, especially across
similar markets.
6. Nontariff barriers include product standards, testing or approval procedures, subsidies for local
products, and bureaucratic red tape.
7. The characteristics and behavior of intended customer groups are as important as governmental
influences on the product adaptation decision.
8. Positioning is the physical space a product assumes on a store shelf, and companies pay huge sums of
money to have their products first in line.
9. Reverse innovation is when a company produces a drastically simplified version of a product due to
lack of purchasing power or usage conditions.
10. Consumer nondurables, such as food products, generally show the highest amount of sensitivity
toward differences in national tastes and habits.
11. Industrial products tend to be more shielded from cultural influences than consumer durables.
12. The brand mark is the vocalizable part of the brand, the brand name the nonvocalizable part.
13. Color plays an important role in the way consumers perceive a product. They communicate in a subtle
way in developed societies; they have direct meaning in more traditional societies.
14. Product warranties can be effective promotional tools.
15. When the country of origin does matter to consumers, it is in the exporter’s best interest to monitor
consumers’ perceptions.
16. Most companies aim for consistency in their marketing efforts. An example of where consistency may
be easy to achieve in international markets is in the area of warranties.
17. The main goal of the product development process is to develop a standard product or product line.
18. The value of brands can be seen on balance sheets.
19. The practice of product counterfeiting has spread to high-technology products and services from the
traditionally counterfeited products: high-visibility, strong-brand-name consumer goods.
20. The Trademark Counterfeiting Act of 1984 made trading in goods and services using a counterfeit
trademark a civil rather than a criminal offense.
MULTIPLE CHOICE
1. Which of the following best describes the product or service a company offers for sale?
a.
A pertinent formation of space and time
b.
A complex combination of tangible and intangible elements
c.
A tangible benefit
d.
An intangible offering
2. Differentiation is a marketing method to:
a.
get different customers to try the product.
b.
create an image or a perception in the minds of competitors.
c.
dilate the market forces with excessive distribution.
d.
help consumers distinguish between competing brands.
3. When the core product is relatively or highly similar between competitors, marketers highlight what
type of features to achieve differentiation?
a.
Augmented
b.
Core
c.
Innate
d.
Fancy
4. A customer attaches value to a product in proportion to the:
a.
price in a competitive framework.
b.
cost incurred in the production of the product.
c.
product’s perceived ability to help solve problems.
d.
income level of the household.
5. After-sale services and warranties are the _____ elements of a product.
a.
intangible
b.
augmented
c.
core
d.
packaging
6. Which of the following is an intangible element of a product?
a.
Installation
b.
Aesthetics
c.
Positioning
d.
Packaging
7. Which of the following is one of the three facts a company should consider when marketing a product
abroad?
a.
The markets that have been targeted
b.
The domestic policy
c.
The natural resources available in the home country
d.
The domestic political system
8. What are the prevailing environmental factors over which the international marketer has no control?
a.
Price, product, and promotion decisions
b.
Message, money, and media
c.
Legal, economic, and climatic conditions
d.
Usage rate, buying patterns, and promotion
9. Which of the following is a regional, country, or local characteristic that affects product-adaptation
decisions?
a.
Country of origin
b.
Competitive offerings
c.
Market opportunity
d.
Quality
10. Which of the following is a product characteristic that affects product-adaptation decisions?
a.
Country of origin
b.
Market opportunity
c.
Purchase patterns
d.
Culture
11. Which of the following is a company consideration that affects product-adaptation decisions?
a.
Competitive offerings
b.
Method of operation
c.
Durability
d.
Market opportunity
12. Various factors determine the need for either mandatory or discretionary product adaptation. Which of
the following factors is a product characteristic?
a.
Nontariff barriers
b.
Brand
c.
Cost of adapting
d.
Profitability
13. What is probably the single most important factor contributing to product adaptation?
a.
Economic integration
b.
Situational analysis
c.
Government regulations
d.
Primary packaging
14. Which of the following is a nontariff barrier?
a.
Import duty
b.
Product standards
c.
Excise duty
d.
Quotas
15. Which of the following affects the product decision of consumer products that also reflects the
marketers’ need to gain customers’ approval?
a.
Purchasing power
b.
Local behavior
c.
Boundaries
d.
Income levels
16. Which of the following is a question regarding cultural criteria that affects product adaptation?
a.
Does the symbolic content of the product or service differ from one country to another?
b.
Is there a stigma attached to the product or service?
c.
Do most consumers spend the same amount of time making the purchase?
d.
Is the psychic cost of purchasing or using the product or service the same, whatever the
country?
17. Which of the following is a question regarding psychosocial characteristics that affects products
adaptation?
a.
Does society restrict the purchase or use of the product or service to a particular group?
b.
Does the symbolic content of the product or service differ from one country to another?
c.
Is there a stigma attached to the product or service?
d.
Do most consumers expect a product to have the same appearance?
18. Which of the following refers to the mental image that a brand, or the company as a whole, evokes in
the minds of consumers?
a.
Innovation
b.
Social engineering
c.
Unique selling proposition
d.
Positioning
19. Which category of products generally show the highest amount of sensitivity toward differences in
national tastes and habits?
a.
Industrial goods
b.
Consumer nondurables
c.
Business products
d.
Consumer durables
20. The use of _____ in branding is strongest in culturally similar markets.
a.
standardization
b.
differentiation
c.
customization
d.
segmentation
21. Which of the following is true about brands?
a.
It allows customization of promotional items.
b.
It conveys the image of the product or service.
c.
It is always listed on balance sheets.
d.
It is used only by apparel companies.
22. _____ are one of the most easily standardized items in the product offering.
a.
Brands
b.
Services
c.
Values
d.
Prices
23. Which of the following terms refers to the legally protected part of the brand?
a.
Intellectual property
b.
Trademark
c.
Brand mark
d.
Copyright
24. Which of the following means using a foreign-language name for a brand?
a.
Transculture
b.
Transparency
c.
Transliteration
d.
Translation
25. _____ can be used to develop a new, essentially meaningless brand name to minimize trademark
complexities.
a.
Translation
b.
Transparency
c.
Transculture
d.
Transliteration
26. _____ requires the testing of an existing brand name for connotative meaning in the language of the
intended market.
a.
Translation
b.
Transliteration
c.
Transparency
d.
Transculture
27. _____ serves three major functions: protection, promotion, and user convenience.
a.
Labeling
b.
Packaging
c.
Branding
d.
Positioning
28. Which of the following is one of the major functions of packaging?
a.
Testing
b.
Segmentation
c.
Feedback
d.
User convenience
29. The promotional aspect of packaging relates mostly to _____.
a.
labeling
b.
color
c.
size
d.
weight
30. With regard to the packaging dimension, the four Rs comprise of redesign, reduce, recycle, and _____.
a.
redefine
b.
reinforce
c.
realign
d.
reuse
31. What is the first step in the product development process?
a.
Process development
b.
Feedback
c.
Idea generation
d.
Scale-up
32. In a typical global program management, the affected units have prime responsibility for achieving
_____.
a.
single-point worldwide technical development and design of a new product that conforms
to the global design standard
b.
all activities necessary to support the product in the affected unit, as well as direction and
support to managing units to ensure that concurrent introductions are achieved
c.
identification of unique requirements to be incorporated in the product goals and
specifications
d.
integration and coordination of all global program activities
33. Any good bearing an unauthorized representation of a trademark, patented invention, or copyrighted
work that is legally protected in the country where it is marketed is known as a _____.
a.
replica
b.
me-too product
c.
counterfeit
d.
hand-me-down
34. Which legislation amended Section 301 of the Trade Act of 1974 to clarify that the violation of
intellectual property rights is an unreasonable practice within the statute?
a.
The Fair Trade Act of 1984
b.
The Intellectual Property Protection Act of 1984
c.
The Trademark Counterfeiting Act of 1984
d.
The Omnibus Tariff and Trade Act of 1984
35. Which legislation requires the U.S. trade representative to set country-specific negotiating objectives
for reciprocity and consideration of retaliatory options to ensure intellectual property protection?
a.
The Fair Trade Act
b.
The Intellectual Property Rights Improvement Act
c.
The Trademark Counterfeiting Act
d.
The Omnibus Tariff and Trade Act
ESSAY
1. What are the factors affecting adaptation?
2. What are the reasons for making investment on R&D abroad?
3. Explain how counterfeiting has become a problem in foreign markets.
