Int'l Ch. 13

The success achieved by firms when they take their inventions to market is referred to as

A. conversion-ability

An important first step in adapting a product to a foreign market is to determine:

A. the degree of newness as perceived by the intended market.

From a sociological point of view, any idea perceived as new by a group of people is an innovation.

True

In countries with low-literacy rates, the pictures and symbols on products are literally taken as instructions and information.

True

One of the core components in the product component model is the product platform.

True

The European Commission (EC) mandate requires a product to be evaluated on all significant environmental effects throughout its life cycle, from manufacturing to disposal.

True

The cost and quality of the product are among the most important criteria by which purchases are made.

True

The decision to standardize or adapt a product is crucial in delivering quality.

True

Omega appliances, a Korean company that manufactures kitchen appliances had to alter the design of its chimneys to suit the needs of the consumers in its Japanese market. The Japanese preferred compact and efficient appliances to fit their small kitchens. The component of the product that had to be altered in the above scenario is the _____.

C. Core Component

A shoe manufacturer in Puerto Ria shipped his entire production to San Francisco and brought it back to his home country to market it as "Made in the U.S." He knew that people would prefer buying products made in the U.S. rather than those that are domestically produced. The factor that is influencing the perception of the customers in the above scenario is called _____.

C. Country of origin effect

Booster bar is a popular brand of energy bars in Canada. The company sold these bars singly or in packs of two in the South Asian markets, instead of their regular multiple-item packaging containing 10 or 20 bars to make it more affordable for the consumers. Which of the following requirements of the local market is influencing product adaptation in the above scenario?

C. Economical requirements.

Which of the following has been at the forefront of the "green movement"?

C. Europe

A name, term, sign, symbol, design, or combination used worldwide to identify goods or services of one seller and to differentiate them from those of competitors is called a(n) _____.

C. Global Brand

Which of the following is true regarding the impact of global competition on the business activities in the marketplace?

C. It has put more power in the hands of the customer.

How do the vast majority of services enter a foreign market?

C. Licensing, franchising, or direct investment.

Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product?

C. Market analyst's self-reference criterion.

Adore cosmetics had to increase the SPF value of their sunscreen lotions marketed in the Middle East to provide more protection against UV radiation. Which of the following factors is dictating product adaptation in the above scenario?

D. Climatic requirements.

In general, the rate of diffusion can be postulated as negatively related to _____.

D. Complexity

The packaging component of the product component model consists of the physical product and all its design and functional features.

False

Though quality is always important in the consumer's mind, in general, do not expect it to be a given.

False

The product platform, design features, and functional features are all found in the _____ component of the product, according to the product component model.

A. Core

_____ is the process by which innovation spreads

A. Diffusion

In Russia, products are divided into two categories— "ours" and "imported." This is an example of:

B. Ethnocentrism

A single global approach is the best way to market a brand worldwide.

False

Global competition has put more power in the hands of the seller.

False

A product's _____, refers to the ease with which its benefits can be communicated to the customers

Observability

Insurance, dry cleaning, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which of the following characteristics of services best matches to the above?

A. Intangibility

Marketers of consumer services face four kinds of barriers in the global marketplace. Which of the following of these barriers is in force when a foreign market requires that services (such as banking or insurance) originate within the country itself and not from outside sources?

A. Protectionism

Vital Health Products found out that they had to reduce the length of the tread in their treadmills sold in China owing to the shorter legs of the average Chinese person. By doing this, Vital has achieved product _____.

A. homologation

A wine company had to market its products with a different name in a foreign market as it was mandatory to translate the name in the local language. The factor that is influencing product adaptation in the above scenario is _____.

A. legal requirements

Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best." Which of the following would not fit in the "best" stereotype scheme?

B. American chocolate

Carolyn is interested in marketing her company's diet products in Asia. She is studying the acceptable behavior, norms, and values in Asian markets. Carolyn is studying _____.

B. Compatibility

Maxcare, an insurance firm based in California had difficulties expanding their operations to Asian markets, as most of their target countries had strict regulations on transferring the details of the customers among the different branches of the firm. The company had to obtain an approval from its customers before sharing their personal information with their branches in other countries. Which of the following barriers is affecting the services of the insurance firm in the above scenario?

B. Controls on transborder data flows.

A clothing company in Singapore which specialized in women's clothing, had to modify its clothes before introducing them to Iranian markets, to suit the needs of women in that country. Women in Iran are expected to cover themselves completely. The company mostly used opaque material and provided accessories like scarves. Which of the following factors is dictating product adaptation in the above scenario?

B. Cultural requirements.

A Korean electronics company had to add detailed instructions regarding the repair and replacement of its product to make it easy for the local consumers to maintain it. Which of the following components of the product is being altered in the given scenario?

B. Design Component

Which is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted?

B. International Tourism

What are the two dimensions that help in defining the quality of a product of quality?

B. Market-perceived quality and performance quality.

Bagel's foods had to change the labeling on their products to meet the specifications regarding vegetarian and non-vegetarian foods, set by the government in the Japanese market. They also had to mention the ingredients in Japanese to make it clear for the local customers. The component of the product that is in focus in the above scenario is the _____.

B. Packaging Component

According to the product component model, installation, repair and maintenance, deliveries, and warranties are all part of the _____ component of the product.

B. Support Services

As part of the "green movement", the European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect product development are the control of the packaging component of solid waste and _____.

B. consumer demand for environmentally friendly products

A company focusing its efforts on making its new innovation more user-friendly is working on the _____ of the product.

C. Complexity

Mark Harmon has found that using his new digital camera is a snap. He did not even have to read the instruction manual to determine how to turn the camera on, snap a digital picture, and export the picture to his computer. The signs (symbols) on the camera body made it very clear what he was to do to achieve digital photography success. Which of the following characteristics of Mark's "new product" made it easy for him to begin his digital experience?

C. Complexity

Which of the following is a physical attribute of a product that is essential for its primary function?

C. Components

HT motors is introducing a new technology in its cars to improve the mileage of the cars as well as to reduce carbon emissions. The company is also taking measures to improve its production facilities in order to reduce its carbon footprint. These measures employed by HT motors to meet the guidelines issued by the government shows that the company is engaging in ________.

C. Green Marketing

According to Everett Rogers, what is the element that differentiates diffusion from other types of communications research?

C. Time

A European chocolate manufacturer received several complaints from customers about the quality of its product when it began selling them in a tropical country. The firm had to re-package its chocolate bars in an extra plastic wrapper to protect it from the heat and dust. Which of the following factors in the local market dictated product adaptation in the current scenario?

D. Climatic requirements.

The Red Lobster seafood restaurant is considering opening branch operations in China. However, the restaurant chain's labor union has already pointed out a potential problem with this expansion. In China, it is considered to be in bad taste to allow employees to collect tips for service. Since a great portion of a typical wait-staff person's compensation comes in the form of tips, the union would like to know how employees would be compensated for this loss. The above example illustrates which of the following barriers a consumer services marketer faces in a foreign market?

D. Cultural requirements for adaptation

Simone Francis is a specialist in product design. She is responsible for a product's aesthetic as well as functional appearance. With respect to the product component model, in which of the following component categories would Simone's talents most likely be used?

D. Functional Component

The Norton group, a manufacturer of toiletries and cleaning products uses the name Cleanex, for most its products in all of their international markets. The name has created a universal appeal for their products as customers identify their products with the name. Hence, Cleanex can be regarded as a _____.

D. Global Brand

_____ is a term used to identify concern with the environmental consequences of a variety of marketing activities.

D. Green Marketing

Adam, a hairstylist at a salon in Seattle, styles his customers in various ways. His work looks different on different people even though he has styled all of them. This unique character of a service that is unique for every customer as it is individually produced is referred to as ______.

D. Heterogeneity

Because a service is individually produced and is virtually unique, the service is said to have _____.

D. Heterogeneity

Which of the following is the most important criterion for consumers while purchasing products?

D. Quality

Martin is comparing the characteristics of his company's water filters with those that are already being marketed in the local market. He realizes that there is lot of scope for his filters as they are functionally more advanced, have longer life, and also can be marketed at a competitive price in these markets. The characteristic of his product that will help in wide acceptance of his product is its _____.

D. Relative Advantage

The washing machines marketed by Taichi failed in Asian markets as those countries lacked the skills necessary to repair and maintain their products. Also, the washing machines spares available in local markets were not compatible with these machines. This product failure was a result of lack of attention by the company to the _____ component of the product.

D. Support Services

In some countries, maintenance of automobiles is not the norm. Cars are not repaired until they break down. Since the consumer is automatically angry with the manufacturer when something goes wrong with the car, repair and maintenance has become a concern of the various automobile manufacturers in this market. In which of the following components of the product component model would the management need to make improvements if problems such as the one above are to be solved?

D. Support services component.

Which of the following is considered to be one of the extraneous variables that affects the rate of diffusion of an object?

D. The method used to communicate the idea.

According to Everett Rogers, the goals of the diffusion researcher and the marketer are to shorten the time lag between:

D. introduction of an idea or product and its widespread adoption.

If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms, to meet local differences in five different foreign markets, the _____ of the product component model would be in consideration.

E. Core Component

The _____ effect refers to the possibility that the place of manufacture may affect product or brand image.

E. Country of Origin

From a sociological viewpoint, any idea perceived as new by a group of people is considered as a(n) _____.

E. Innovation

If a company is altering the price of its product to compete with the local companies in the international market, it is focusing on the _____ component of the product, according to the product component model.

E. Packaging

Dr. Mark Townes is a dentist practicing in Denver. During a four-day stretch in March, it snowed so heavily that not a single patient was able to visit him. Since all the appointments were missed, he did not make any money for those four days, even though his normal expenses remained. Which of the following characteristics of services is affecting Dr. Townes' business?

E. Perishability

A characteristic of a service is that it is _____, since it cannot be stored and must be consumed simultaneously with its creation.

E. Perishable

_____ is the term used to describe the changes mandated by local product and service standards.

E. Product homologation

A product is said to be compatible if:

E. it complies with the accepted norms, values, and culture of the local market.

Nuan, a television manufacturer in Korea, had to modify its televisions before introducing it to the Zimbabwean markets, as the country did not have the skills to repair the product in case of a malfunction. The local salesforce too, did not have the sufficient knowledge regarding the installation of the product. The factor that is influencing product adaptation in the above scenario is ________.

E. technological requirements

According to the product component model, the instructions for using the product and the warranty of the product are included under the packaging component.

False

Adaptation of a product to a new culture requires changes in most of the physical attributes of the product.

False

Financial and legal services can not be regarded as a business service as they only provide services to the consumers.

False

Green marketing is the term frequently used to identify a marketer's efforts to reduce its dependency on U.S. dollars as the standard for international exchange.

False

In general, the rate of diffusion of a product is negatively related to its relative advantage.

False

One of the consistencies that marketers can look forward to when marketing products abroad is that almost all labeling laws worldwide are essentially the same.

False

Products from developing countries have the highest quality image.

False

Services such as insurance and dry cleaning are classified as tangible.

False

Ingrid is developing promotional materials and product demonstrations to easily communicate the benefits of her cleaning products. Ingrid is trying to enhance the _____ of her products.

Observability

Apple Computer had difficulties when it first entered the Japanese market with its Macintosh computers. Some of the computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be no big deal in the U.S., it was certainly a cause for concern in quality-conscious Japan. To fix the problem, Apple needed to concentrate on which of the following components of the product component model?

Packaging Component

Fiona asked her product manager for samples to give to potential consumers in Madrid, her new European market. Fiona is trying to reduce the degree of economic and/or social risk, or _____ associated with product use.

Trialability

A majority of services enter foreign markets by licensing, franchising, or direct investment.

True

According to Everett Rogers, the element of time differentiates diffusion from other types of communication research.

True

An important first step in adapting a product to a foreign market is to determine the degree of newness as perceived by the intended market.

True

Brand image is at the very core of business identity and strategy.

True

Consumer perceptions of a quality product often have more to do with market-perceived quality than performance quality.

True

Cultural barriers play a bigger role in services than in merchandise trade.

True

Effective advertising and proper positioning of products can help brands to ameliorate a less-than-positive country stereotype.

True

In many countries the term product homologation is used to describe the changes mandated by local product and service standards.

True

One of the three variables, which affect the rate of diffusion of a product, is the product's degree of perceived newness.

True

The newness of a product or brand introduced can be an important competitive advantage.

True

The perceived attributes of an innovation is a variable that affects the rate of diffusion of a product.

True

The support services component of the product component model contains such items as repair and maintenance and availability of spare parts.

True