Chapter 9: Products and Services: Branding Decisions in International Markets
TRUE/FALSE
1. Global standardization reflects a polycentric orientation.
2. International travel is an argument for globalization.
3. A global brand has the same logo, image and positioning everywhere in the world.
4. Although standardization is an important element of a global strategy, standardization is less important
for product research and development due to the unique nature of R&D.
5. Regional market integration such as MERCOSUR promote regional standardization strategies.
6. The lower the level of economic and market development, the less the product needs to be changed to
serve the needs and demands of the market.
7. According to marketing experts, the idea of marketing a standardized product with a uniform
marketing plan around the world remains purely theoretical.
8. Modular adaptation is the standardizing of the core product (or service), but allowing for easy
modification from market to market.
9. Haagen Dazs’ Japanese offering of Royal Milk Tea ice cream is an example of forced local mandatory
adaptation.
10. In the United Kingdom, private labels are perceived to be of inferior quality.
11. In France, private labels are perceived to be of inferior quality.
12. Unlike British consumers, French consumers perceive most store brands to be inferior to national
brands.
13. In terms of branding, the country of origin could be where the product is manufactured or where the
company headquarters are located.
14. The country of manufacture could be where the product is manufactured or where the company
headquarters are located.
15. Philips’ appliances are associated with the Netherlands even when they are manufactured in Asia.
16. Consumers in developing, low-income countries typically evaluate their own-country products as
inferior to products from developed, high-income countries.
17. United States consumers believe that Swiss chocolate is superior to other chocolate and Russian caviar
is superior to other caviar. This is an example of consumer ethnocentrism.
18. Ethnocentric consumers believe that consumers who purchase foreign products are worthy of
contempt.
19. Ethnocentrism may exist at both the individual consumer level or the aggregate societal level.
20. The CPA exam is an example of a nontariff barrier to entry.
21. Service barriers represent a manifestation of ethnocentrism.
22. Company or government policies that provide implicit or explicit preference for a domestic supplier
make it difficult for international service providers to survive.
23. Unlike products, which frequently must adapt to a foreign culture, services are not often affected by
cultural factors.
24. Japanese consumers expect special treatment in a medical environment, which is consistent with the
Japanese preference for a greater degree of service personalization.
25. Because Kent cigarettes were viewed as a commodity before the fall of communism, it has been
difficult for Kent cigarettes to maintain its market share in Romania.
26. Consumers from more collectivist cultures, such as Latin American and Asian consumers, tend to
prefer brand new Western brands and purchase them in the early introduction stage.
27. European consumers tend to be very brand-name conscious, and are especially loyal to top brands.
28. Yiwu, a city five hours from Shanghai, China, is cracking down on counterfeit products and offers
some home for Western firms operating in China.
29. Copying designs or scents is quite common and risk free.
30. Brand-name counterfeiting is quite common and risk free.
31. Studies have shown that a large proportion of consumers are likely to select a counterfeit apparel item
over a genuine good when there is a price advantage.
32. Quite frequently, not even the manufacturer can tell the difference between the original product and a
counterfeit product.
33. Because counterfeiters evade taxes, local governments are swift to crack down on product pirates.
34. Multinational companies can do very little to combat counterfeiting.
35. Microsoft included holograms on its software boxes in an attempt to prevent software piracy.
36. Unlike industrial products, in marketing of consumer products culture plays an important role.
37. In international management, the decision to purchase industrial products rests with local management.
38. Businesses purchase land, buildings, and goods for resale.
39. Demand for industrial products is derived from demand for consumer products and thus is much more
volatile.
40. The world insurance centers are Hong Kong, Tokyo, and Paris.
MULTIPLE CHOICE
1. Global standardization reflects a
a.
geocentric orientation.
c.
local adaptation orientation.
b.
regiocentric orientation.
d.
polycentric orientation
2. Which of the following is not a factor encouraging global standardization?
a.
Global consumers
b.
International travel
c.
Consumer preference for higher quality and lower price
d.
Modular adaptation
3. Consumers’ interests and product/service-related needs are becoming
a.
more homogenous.
c.
less price sensitive.
b.
more heterogeneous.
d.
more ethnocentric.
4. Which of the following is true regarding a global brand?
a.
A global brand uses the same name throughout the world.
b.
A global brand uses the same logo worldwide.
c.
A global brand uses the same positioning everywhere in the world.
d.
All of the above are true statements.
5. Which of the following is not true regarding a global brand?
a.
A global brand uses the same name throughout the world.
b.
A global brand has different logos in different markets.
c.
A global brand uses the same positioning everywhere in the world.
d.
All of the above are true statements.
6. Which of the following is not true regarding standardization of research and development?
a.
Standardization of research and development leads to economies of scale.
b.
Research & development coordination gives a firm flexibility.
c.
Coordination of research and development is inexpensive.
d.
All of the above are true.
7. Nike, which has traditionally utilized local warehousing to supply retailers, is currently attempting to
replace more than 20 national warehouses in Europe with one single distribution center located in
Belgium. This is an example of
a.
global standardization
c.
global localization
b.
regional standardization
d.
glocalization
8. Mercedes-Benz is a brand that appears to follow a
a.
globalization strategy.
c.
global localization strategy.
b.
regional standardization strategy.
d.
private label strategy.
9. What is the main reason that Mercedes-Benz pursues a different strategy in the U.S. compared to the
other markets in which it operates?
a.
The U.S. culture appeared to need a non-mandatory adaptation.
b.
Mercedes had to fight gray marketing channels.
c.
Coordination of research and development proved to be too expensive in the U.S. market.
d.
The product-country stereotype worked against Mercedes in the U.S. market.
10. Which statement regarding product adaptation is true?
a.
The lower the level of economic development, the more the product needs to be changed.
b.
The higher the level of economic development, the more the product needs to be changed.
c.
Designing NTSC VCRs in the U.S. is an example of non-mandatory adaptation.
d.
McDonald’s offering of beer and wine in Europe is an example of mandatory adaptation.
11. ____ is frequently used to describe the practice of global branding and localized marketing adaptation.
a.
Modular adaptation
c.
Glocalization
b.
Regional Standardization
d.
Global modification
12. According to the text, which strategy does McDonald’s employ?
a.
Global standardization
c.
Global localization
b.
Regional standardization
d.
Ethnocentric modification
13. Volvo uses a
a.
global standardization strategy.
c.
modular adaptation strategy.
b.
regional standardization strategy.
d.
core product strategy.
14. Which of the following is an example of mandatory adaptation?
a.
McDonald’s offering mutton burgers in India.
b.
GE offering hairdryers that use 220 volts in Great Britain.
c.
Haagen Dazs offering Royal Milk Tea ice cream in Japan.
d.
All of the above are examples of mandatory adaptation.
15. Which of the following is an example of mandatory adaptation?
a.
Nestle offering drinkable fruit yogurt in the United Kingdom.
b.
Weight Watchers offering consumers in France Mousse Legeres in two different four-pack
combinations.
c.
Haagen Dazs adding green ice tea to its product line in Japan.
d.
Hershey’s eliminated alcohol in its chocolates in Saudi Arabia.
16. Regarding private label brands, retailers compete primarily through
a.
price
c.
image
b.
quality
d.
promotion
17. Which statement regarding country-of-origin information is false?
a.
The country-of origin-may be the country in which the headquarters is located even if the
product is manufactured in another country.
b.
Consumers from low-income countries tend to evaluate own-country products more
favorably that products from other countries.
c.
Country-of-origin information acts as a surrogate for product quality.
d.
Country-of-origin information constitutes a product trait that is external to the product
itself.