Chapter 13

**59. The product platform, design features, and functional features are all found in which of the following components of the product component model used in the text? A. Core component B. Support services component C. Packaging component D. Functional component E. Global component

A. Core component

**60. 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 shown in the text, in which of the following component categories would Simone's talents most likely be used? A. Core component B. Support services component C. Packaging component D. Functional component E. Global component

A. Core component

**43. _____ is the process by which innovation spreads. A. Diffusion B. Filtering C. Dissolution D. Trickle-down E. Cascading

A. Diffusion

**36. _____ is a term used to identify concern with the environmental consequences of a variety of marketing activities. A. Green marketing B. Hybrid business C. Greenfield business D. Greenhouse business E. Alternative marketing

A. Green marketing

65. 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 B. Inseparability C. Profitability D. Heterogeneity E. Perishability

A. Intangibility

70. Four kinds of barriers face consumer services marketers 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 foreign market itself and not from outside sources? A. Protectionism B. Controls on transborder data flows C. Protection of intellectual property D. Cultural requirements for adaptation E. Language translation barriers

A. Protectionism

57. The success of a firm taking inventions to market is referred to as ____. A. conversion ability B. product penetration C. diffusion D. marketization E. mass customization

A. conversion ability

61. 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 component that would be in consideration. A. core component B. support services component C. packaging component D. functional component E. global component

A. core component

35. 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 B. standardization C. dilution D. flexibility E. repositioning

A. homologation

31. Global competition is placing new emphasis on some basic tenets of business. All of the following represent the major trends EXCEPT: A. longer product life cycles. B. importance of quality. C. competitive prices. D. innovative products. E. shift of power from sellers' to customers' market.

A. longer product life cycles.

49. 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. B. the cost of the adapted product in the foreign market. C. the advertising parallels with the domestic market. D. the ability of a sales force to sell the product. E. the match to religious doctrine(s) in the foreign country.

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

74. 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? A. English tea B. American chocolate C. French perfume D. Chinese silk E. Jamaican rum

B. American chocolate

29. Which of the following represents the shift of power in the marketplace? A. From a producers' to a sellers' market B. From a sellers' to a customers' market C. From a buyers' to a users' market D. From a producers' to a outsourcers' market E. From a producers' market to a third-party vendors' market

B. From a sellers' to a customers' market

68. Which of the following is the largest services export of the United States? A. Media and entertainment B. International tourism C. Healthcare D. Research and development E. Education services

B. International tourism

**32. Which are the two dimensions of quality? A. Product quality and process quality B. Market-perceived quality and performance quality C. Product quality and service quality D. Actual quality and assumed quality E. Absolute quality and relative quality

B. Market-perceived quality and performance quality

33. Apart from market-perceived quality and performance quality, which is other form of quality testing is popular? A. Quality perceived by internal panels B. Quality measured by objective third parties C. Quality assurance from internal vendors D. Quality measured by NGO activist groupsE. Quality certified by quality circles

B. Quality measured by objective third parties

58. Installation, repair and maintenance, deliveries, and warranties are all found in which of the following components of the product component model used in the text? A. Core component B. Support services component C. Packaging component D. Functional component E. Global component

B. Support services component

63. 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 management need to make improvement if problems such as the one above are going to be solved? A. Core component B. Support services component C. Packaging component D. Functional component E. Global component

B. Support services component

40. Which of the following countries or organizations requires that packaging material through all levels of distribution, from manufacturer to consumer, be recycled or reused? A. The United States B. The European Commission (EC) C. NAFTA D. Australia/New Zealand E. WTO

B. The European Commission (EC)

51. Carolyn is interested in marketing her company's diet products in Asia. She is studying what acceptable behavior, norms, and values in Asian markets. Carolyn is studying ____. A. relative advantage B. compatibility C. complexity D. trialability E. observability

B. compatibility

39. As part of the "green marketing" 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 ____. A. variations in standards across different member countries B. consumer demand for environmentally friendly products C. government subsidies for greener technologies D. availability of alternative energy resources for production E. management of existing inventory of conventional energy products

B. consumer demand for environmentally friendly products

75. In Russia products are placed into two categories—"ours" and "imported." This is an example of: A. cultural revisionism B. ethnocentrism C. conversion to capitalism D. communist mentality E. structural marketing orientation

B. ethnocentrism

54. 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? A. Relative advantage B. Compatibility C. Complexity D. Trialability E. Observability

C. Complexity

37. Which of the following has been at the forefront of the "green movement?" A. The United States B. Japan C. Europe D. OPEC countries E. NAFTA countries

C. Europe

69. How do the vast majority of services enter a foreign market? A. Exporting B. Importing C. Licensing, franchising, or direct investment D. Through brokers E. Through agent intermediaries

C. Licensing, franchising, or direct investment

56. Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product? A. Poor product knowledge B. Noise in the communication channel C. Market analyst's self-reference criteria D. Multitude of competing products E. Market analyst's intelligence quotient

C. Market analyst's self-reference criteria

62. 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? A. Core component B. Support services component C. Packaging component D. Functional component E. Global component

C. Packaging component

47. According to Everett Rogers, which is the element that differentiates diffusion from other types of communications research? A. Breakthrough innovation B. Communications channels C. Time D. Social system E. Government support

C. Time

72. The worldwide use of a name, term, sign, symbol, design, or combination thereof intended to identify goods or services of one seller and to differentiate them from those of competitors is called a/an: A. trademark. B. copymark. C. global brand. D. brand's equity position. E. owner's mark.

C. global brand.

55. In general, the rate of diffusion can be postulated as negatively related to ____. A. relative advantage B. compatibility C. trialability D. complexity E. observability

C. trialability

71. 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, service providers would find it 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? A. Protectionism B. Controls on transborder data flows C. Protection of intellectual property D. Cultural requirements for adaptation E. Language translation barriers

D. Cultural requirements for adaptation

**38. McDonald's has just required that all of its paper packages that are used to contain its food products be biodegradable, contain no harmful inks, and be recyclable whenever possible. This would be an example of which of the following marketing strategies? A. Envo-marketing B. Planet marketing C. Socialist marketing D. Green marketing E. Political marketing

D. Green marketing

48. Which of the following is considered to be one of the extraneous variables that affects the rate of diffusion of an object? A. The use of the Internet in the diffusion process B. The age appearance of the innovation C. The number of marketing personnel dedicated to diffusion D. The method used to communicate the idea E. The shelf live of the diffusion object

D. The method used to communicate the idea

66. Because a service is individually produced and is virtually unique, the service is said to have: A. intangibility B. inseparability C. profitability D. heterogeneity E. perishability

D. heterogeneity

45. According to Everett Rogers, the goal of the diffusion researcher and the marketer are to shorten the time lag between: A. the time that a product is made and the time that retailers place the product in inventory. B. the time that a budget is constructed and the time needed funds reach communication channels. C. the time that an investment is made and the time that a profit is turned. D. introduction of an idea or product and its widespread adoption. E. introduction of an idea or product and when revisions can be made.

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

30. More and more companies are offering a mix of products and services to their customers. This leads to a blurring of the distinction between products and services leading to new terms like: A. market applications. B. market solutions. C. product portfolio. D. market offerings. E. product basket.

D. market offerings.

53. 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. A. relative advantage B. compatibility C. complexity D. trialability E. observability

D. trialability

50. Which of the following is not one of the Everett Rogers crucial elements in the diffusion of new ideas? A. An innovation B. Communication through certain channels C. New ideas are communicated over time D. New ideas are sent to members of a social system E. New ideas are automatically placed in an incubation zone

E. New ideas are automatically placed in an incubation zone

67. Mark Townes is a dentist in Denver. During a four-day stretch in March, the snows in Denver were so bad that not one single patient was able to come for appointments with Dr. Townes. Since all of the appointments were missed, he made absolutely no money for the four days even though all of his normal expenses were still there. Which of the following best explains the particular difficulty Mark is facing? A. Intangibility B. Inseparability C. Profitability D. Heterogeneity E. Perishability

E. Perishability

46. Innovative product ideas reach markets with varying rates of diffusion based on the time variable. All of the following are actual examples of this phenomenon EXCEPT: A. microwave ovens took 20 years to catch on in the United States. B. the contraceptive pill took only a few years to be accepted in the United States. C. modern math took only about five years to be diffused through the U.S. school systems. D. the idea of kindergartens took nearly 50 years to gain total acceptance in the United States. E. color televisions were available in 1949 but not widely accepted in the market until 1985.

E. color televisions were available in 1949 but not widely accepted in the market until 1985.

73. Any influence that the company of manufacture, assembly, or design has on a consumer's positive or negative perception of a product is called the: A. plus or minus effect. B. polar effect. C. transfer effect. D. alteration effect. E. country-of-origin effect.

E. country-of-origin effect.

**44. Everett Rogers notes that crucial elements in the diffusion of new ideas are all of the following EXCEPT: A. innovation. B. communication channels. C. time. D. members of a social system. E. government support.

E. government support.

34. In many countries, the term used to describe the changes mandated by local product and service standards is product ____. A. localization B. blending C. standardization D. dilution E. homologation

E. homologation

**42. From a sociological viewpoint, any idea perceived as new by a group of people is a(n) ____. A. creation B. adaptation C. ideation D. homologation E. innovation

E. innovation

52. 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. A. relative advantage B. compatibility C. complexity D. trialability E. observability

E. observability

64. Services are distinguished by all of the following unique characteristics EXCEPT: A. intangibility. B. inseparability. C. heterogeneity. D. perishability. E. repeatability.

E. repeatability.

41. All of the following illustrate how products (product concepts) have been rejected by cultures because they did not meet the norms, values, or behavior patterns of the culture EXCEPT: A. many financial services in Muslim countries. B. body jewelry in Japan. C. pork and pork products in Scotland. D. filter cigarettes in Asia. E. whiskey and beer in Ireland.

E. whiskey and beer in Ireland.

14. If a new product has the trait of relative advantage, it has guaranteed success in the marketplace. True False

False

16. Most of the new ideas associated with the Internet are being produced in Europe because of the number of Internet users on the continent. True False

False

17. The packaging component of the product component model contains the physical product and all its design and functional features. True False

False

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

False

21. Literacy rates and educational levels in our increasingly technological world have reached a point where manufacturers of international products can generally put out standardized product instructions. True False

False

22. One of the consistencies that marketers can look forward to when marketing products abroad is that (in general) almost all labeling laws worldwide are essentially the same. True False

False

25. Consumer services are distinguished by four unique characteristics--intangibility, inseparability, homogeneity, and longevity. True False

False

3. Even though most companies claim high performance quality when a product leaves the factory, the factory is still the place where most products are damaged in global marketing. True False

False

6. 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. True False

False

8. Strictly speaking from a marketing point of view as well as from a definitional view, a product is a physical item. True False

False

**1. Quality can be defined on two dimensions: market-perceived quality and performance quality. True False

True

**9. From a sociological viewpoint, any idea perceived as new by a group of people is an innovation. True False

True

10. The element of time is what differentiates diffusion (i.e., diffusion of innovations) from other types of communication research. True False

True

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

True

12. The method used to communicate the idea is one of the three variables which affect the rate of diffusion of a product. True False

True

13. The perceived attributes of the innovation is a variable which affect the rate of diffusion of a product. True False

True

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

True

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

True

19. If you were looking for information and strategies on a product's brand name, you would find it under the packaging component of the product component model. True False

True

20. A well-known baby-food producer that introduced small jars of baby food in Africa complete with labels featuring a picture of a baby experienced the classic example of misinterpreted symbols--consumers thought it was ground-up babies in a jar. This would be an example of a problem with the packaging component in the product component model. True False

True

23. The support services component of the product component model contains such items as repair and maintenance and warranties. True False

True

24. Increasingly complementary products must be considered in the marketing of a variety of high-tech products. True False

True

26. The vast majority of services enter foreign markets by licensing, franchising, or direct investment. True False

True

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

True

28. According to the text it has been reported that consumers in "Eastern" cultures are more likely to understand and appreciate brand extensions because of their more holistic thinking than consumers in "Western" cultures with their more analytical thinking patterns. True False

True

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

True

5. 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 False

True

7. The European Commission (EC) mandate requires a product to be evaluated from manufacturing to disposal. True False

True