Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Review and Discussion Questions
Chapter 10: International Product Standardization and Adaptation
Review questions
1. Describe the three main legal systems: common law, civil law, and theocratic law.
a. Common law – The common law system relies on legal precedents and usage
traditions to form the basis of law. It can be found in the United Kingdom and in
former British colonies. The written law applies; however, the interpretation by
the judicial system coupled with the implementation of the law gives the written
law meaning.
2. Define intellectual property and name the treaty that seeks to protect intellectual
property.
a. Intellectual property consists of creations of the mind or the intangible property
that results from thought. Examples include a song by a popular singer, a new type
of electrical plug outlet, or a more efficient process for protecting an individual’s
identity.
3. Describe copyrights, trademarks, and patents.
a. Copyrights are granted to authors of creative works, such as songs and novels.
Instructor Resource
Baack et al., International Marketing, 2e
4. What is counterfeiting?
Counterfeiting is a close replication of existing products that are branded or protected
5. Describe corporate spying and reverse-engineering.
a. Corporate spying or espionage involves a company intentionally stealing the
designs or business processes of a competitor.
6. What is the relationship between intellectual property protection and economic
development?
This is a complicated relationship. Many of the world’s emerging markets are known
for lax intellectual property protections. Piracy has allowed some nations access to
unique assets and has driven innovation within them. On the other hand, a potential
7. Define jurisdiction and explain how it applies to legal actions.
Jurisdiction is the first step to dispute resolution. The establishment of jurisdiction
defines the power to apply the law or local statutes. The setting or location of the
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
8. Describe conciliation and arbitration.
a. Conciliation applies to the various forms of mediation or conflict resolution
companies can pursue before resorting to a more formal arbitration process. A
third-party typically mediates between the two companies involved in the dispute.
The third-party then collects information, meets with the two parties involved in
the dispute, and presents a possible solution. If the two parties agree, the conflict
is resolved and business resumes. Many companies prefer conciliation as the first
step in resolving a dispute. An important advantage of conciliation is that the
proceedings are confidential, which protects intellectual property and the privacy
of the parties involved. Instead of conflicts being played out in the business press,
little to no attention is paid. Conciliation can be an effective approach in emerging
markets where relationships are paramount and where loss of public face can be a
major concern.
9. What are the advantages and disadvantages of arbitration?
a. Advantages of arbitration – the decision is binding, the proceedings are
confidential, and it is cheaper than going to court.
b. Disadvantages of arbitration – The one difficulty with arbitration can be that, at its
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
10. What are the disadvantages of litigation?
The disadvantages of litigation include higher risks and costs. Often what becomes
and brand.
11. Define standardization and name the primary reasons for its use.
Standardization is the process of applying the same marketing mix to all markets. A
single production process, brand, and appeal are used. While this may seem less
responsive to consumer needs in a given country, the primary reasons for its use are
12. Describe economies of scale and economies of scope.
a. Economies of scale refer to a reduction in the cost per unit as the total volume
produced increases. A range of efficiencies emerge as a company produces more
of a single product. The efficiencies result from increased purchasing power,
spreading of fixed costs across a larger volume of units, the potential for managers
to be more efficient as they specialize, and the ability to use the same promotional
13. Define cultural convergence.
Cultural convergence is the growing similarities between consumers globally and may
be a result of standardization.
14. Define adaptation.
Adaptation is changing of any component of the marketing mix to better meet the
needs of a local market.
15. Explain how laws affect adaptation and the product areas affected by regulations.
a. Laws often govern marketing activities. Adaptations can be adjusting the
information about the product to meet local labeling requirements.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
b. Marketing communications – Many countries enforce legal restrictions on
advertising to children or for advertising of potentially unhealthy or addictive
substances. False advertising and medicines are also often regulated or prohibited.
c. Product attributes – These laws frequently focus on safety and children again are a
primary group to be protected. In some cases, product attributes are allowed but
claims about those attributes may be limited. In other cases, products that are
accepted in one country are forbidden in others. In strict Islamic countries, this
includes a prohibition on alcohol. Brazil has taken an aggressive approach to
tobacco regulation. The country has limited the tar, nicotine, and carbon monoxide
levels allowed in cigarettes, added more severe warning on packages, and became
the first country in the world to outlaw the use of “descriptors that may induce
complacency in consumers regarding the consumption of tobacco products.”
These include the words “light,” “ultra-light,” and “mild.”
Instructor Resource
Baack et al., International Marketing, 2e
16. How is packaging adapted?
Packaging is often adapted to meet legal requirements regarding product size,
materials used, and other components. Products are consumed differently in other
17. How are labels adapted?
Labels are adapted to meet legal stipulations. Each country enacts its own labeling
requirements. Often these can be complicated and require significant adaptation.
18. Describe the contingency approach with regard to standardization and adaptation.
The contingency approach suggests that marketers should do what is appropriate for
each market, which typically leads to a combination of both standardized and adapted
components. The default will be standardization because it offers cost savings;
19. What are the four different approaches to the product and communication adaptation
or extension model?
a. Product and communication extension, or a dual extension, is the strategy in
which the same product and communications are extended into the new market.
Standardization of everything possible becomes the marketing goal.
b. Product extension-communication adaptation – When marketers keep the same
product but make changes to the communication, a product extension-
communication adaptation approach has been utilized. The product remains the
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
same, other than possibly locally-sourced ingredients, but the communication
changes.
20. Define new product development and name the different types.
a. New product development is the process of creating a new product.
b. New-to-the-world products are the inventions or discoveries most strongly
associated with the term new product development. The light bulb, the computer,
and the digital music player are all types of new-to-the-world products.
c. New category products are new products for an existing product category.
Microsoft’s introduction of the Xbox 360 was a new category product, it was a
new product in the existing category of personal gaming devices.
21. How can adopters of new products be categorized?
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
a. Innovators
b. Early adopters
22. Define diffusion and explain the factors influence the speed of diffusion.
a. Diffusion is process by which an innovation slowly spreads through a culture or
group.
b. The innovation itself. The marketing team identifies how similar it is to existing
products or processes. The larger the disconnect with existing consumer
behaviors, the slower the rate of diffusion.
Discussion questions
1. Explain the differences between the three primary legal systems—common law, civil
law, and theocratic law. Is one of these systems more conducive to marketing activity
than another? Explain your answer.
The common law system relies on legal precedents and usage traditions to form
the basis of law. It can be found in the United Kingdom and in former British
colonies. The written law applies; however, the interpretation by the judicial
system coupled with the implementation of the law gives the written law meaning.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
The advantages of common law are that you can find previous examples of court
cases that support your marketing activities, it is hard to overturn precedents. The
disadvantages are that courts interpret the laws, thus giving them room to rule
against you no matter what the written law states.
2. Many individuals in both developed and developing countries have violated
intellectual property protections. Choose a side and make a case as to whether
violating intellectual property is either wrong or right.
Violating intellectual property is wrong. These individuals know they are using
intellectual property that they haven’t paid for. If everyone did this then there
3. Litigation is often the least attractive of the conflict resolution choices. Create a table
listing the advantages and disadvantages of conciliation, arbitration, and litigation,
then pick the best possible resolution option for a business seeking to protect a patent.
Defend your choice.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
Conciliation
Proceedings are confidential
No business press
Maintains face
Cheap
The companies may not
be able to come to an
agreement
There is no binding
decision
This would depend on what country the company was trying to protect the patent in.
If it is a developed country they might have more success. There is a lot of unknown
information in this question. But if costs are a concern, start with conciliation. If you
need a legal binding decision and it is very important to protect this patent go to
litigation.
4. Whether to standardize or adapt a product will be one of the central decisions an
international marketer makes. Consider a global product that you recently purchased.
What was standardized or adapted? Why did the marketing team make these choices?
What was legally required?
I recently purchased Nutella. I believe that the product is standardized across
countries, but the packaging and labeling is modified for the United States. The
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
5. New products fail at an increasingly high rate. How can the graph of new product
adaptation be applied to ensure higher acceptance of a new product?
A company needs to market a new innovation clearly and efficiently. They need to
tell consumers about the new benefits and why they should adopt this new product.
The more similar the product is to existing product, the quicker it is usually adopted.
6. Think of a new product you recently purchased. What factors influenced your
decision to purchase the product? Does the product seem to be one that diffuses
quickly or slowly across a target market?
I recently purchased an Apple iPhone. Their marketing campaign, being able to