Chapter 13 – Products and Services for Consumers
Discussion Questions
1. Define the following terms and show their significance to international marketing:
2. Debate the issue of global versus adapted products for the international market.
A recurring debate exists relative to product planning and focuses on the question of standardized
products marketed worldwide versus differentiated products adapted or even redesigned for each
3. Define the country-of-origin effect and give examples.
Country of Origin Effect (COE) can be defined as any influence that country-of-manufacturer has on
4. The text discusses stereotypes, ethnocentrism, degree of economic development, and fads as the
basis for generalizations about country-of-origin effect on product perception. Explain each and give
an example.
The country, the type of product, and the image of the company and its brands all influence whether
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Chapter 13 – Products and Services for Consumers
Ethnocentrism can also have country of origin effect; feelings of national pride, the “buy American”
effect among members, for example, can influence attitudes toward foreign products. Honda, which
manufactures one of their models almost entirely in the United States, recognizes this phenomenon
Countries are also stereotyped on the basis of whether they are industrialized, in the process of
industrializing or less-developed. These stereotypes are less country-product specific; they are more a
perception of the quality of goods in general produced within the country. Industrialized countries
have the highest quality image, and there is generally a bias against products from developing
One final generalization about COE involves fads that often surround products from particular
countries or regions in the world. These fads are more often product specific and generally involve
goods that are themselves faddish in nature. European consumers are apparently enamored with a
5. Discuss product alternatives and the three marketing strategies: domestic market extension,
multidomestic market, and global market strategies.
6. Discuss the different promotional/product strategies available to an international marketer.
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Chapter 13 – Products and Services for Consumers
The marketer has at least three viable alternatives when entering a new market: he can (1) sell the
same product he presently sells elsewhere, (2) individualize existing products to the tastes and
specific needs of the new country, or (3) develop a totally new product. These three basic alternatives,
7. Assume you are deciding to “go international” and outline the steps you would take to help you
decide on a product line.
Library research project.
8. Products can be adapted physically and culturally for foreign markets. Discuss.
Products can be adapted to a new culture in a variety of ways ranging from simple package changes
to total redesign in the physical product. Some need for change becomes obvious with relatively little
Environmental Factor Design Change
Level of technical skills Product simplification
Level of labor cost Automation or manualization of product
Level of literacy Remarking and simplification of product
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use.
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duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 13 – Products and Services for Consumers
9. What are the three major components of a product? Discuss their importance to product
adaptation.
The three major components of a product are: (1) its core, the physical product and all its functional
features; (2) the packaging component that includes the physical package in which the product is
presented, as well as the brand name, trademark, styling and design features, price and quality levels;
10. How can the knowledge of the diffusion of innovations help a product manager plan his
international investments?
Knowledge of the diffusion of innovation provides the international marketer with several important
11. Old products (that is, old to the U.S. market) may be innovations in a foreign market. Discuss fully.
It is important for the marketer to appreciate that a product which has gained acceptance and is now at
12. “. . . If the product sells in Dallas, it will sell in Tokyo or Berlin.” Comment.
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use.
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duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 13 – Products and Services for Consumers
Basically, the needs and hence the demand for a product are the same in all markets. Similarities in
wants are universal and, as income increases, practically everyone desires the “good life.” The
13. Discuss the characteristics of an innovation which can account for differential diffusion rates.
15. Give an example of how a foreign marketer can use knowledge of the characteristics of innovations in
product adaptation decisions.
16. Discuss “environmentally friendly” products and product development.
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duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 13 – Products and Services for Consumers
Germany has a strict Eco-labeling program to identify, for the concerned consumer, products that
have a lesser negative impact on the environment than similar products. Under German law, a
manufacturer is permitted to display a logo, called the “Blue Angel,” on all products that comply with
certain criteria that make it environmentally friendly. More than 3,200 products in 58 product
categories have been examined and given the Blue Angel logo. While it is difficult to judge the
commercial value of a Blue Angel designation, manufacturers are seeking the eco-label for their
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use.
Not authorized for sale or distribution in any manner. This document may not be copied, scanned,
duplicated, forwarded, distributed, or posted on a website, in whole or part.