CH 13 mkt 4468

T or F In the context of global marketing, a product's country of origin cannot affect its brand's image significantly.

F

T or F The more congruent product perceptions are with current cultural values, the more rapid product diffusion or acceptance will be.

T

90. In Russia, products are divided into two categories—"ours" and "imported." This is an example of: A. an autarky. B. ethnocentrism. C. theocentrism. D. feudalism. E. a closed economy.

b

51. According to Everett Rogers, what is the element that differentiates diffusion from other types of communications research? A. Marketing efficiency B. Communication channel C. Time D. Social system E. Government system

c

56. A company focusing its efforts on making its new innovation more user-friendly than before is working on the _____ of the product. A. docibility B. partibility C. complexity D. discordancy E. observability

c

62. Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product? A. Too much product information B. A shorter distribution channel C. Market analyst's self-reference criterion D. Low number of product competitors E. Authoritative product information of the market analyst

c

81. How do the vast majority of services enter a foreign market? A. Exporting B. Smuggling C. Licensing, franchising, or direct investment D. Through brokers E. Through diaspora population

c

85. 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 _____. A. copier B. copymark C. global brand D. brand's equity position E. brand jingle

c

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

F

T or F Adaptation of the nonphysical features of a product can be avoided while trying to adapt the product to a new culture.

F

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

T

48. From a sociological viewpoint, any idea perceived as new by a group of people is considered as a(n) _____. A. creation B. adaptation C. declension D. tradition E. innovation

e

31. Which of the following is true about the impact of global competition on the business activities in the marketplace? A. It has shifted the focus in the marketplace from a consumer's market to a seller's market. B. It has increased product life cycles. C. It has put more power in the hands of the customer. D. It has reduced the competitive spirit of most businesses in a marketplace. E. It has limited the choices of the consumers.

C

32. Which of the following is the most important criterion for global market consumers while purchasing products? A. Appearance B. Size C. Technology D. Quality E. Service

D

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

F

T or F 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.

F

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

F

T or F 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.

F

T or F Products from developing countries have the highest quality image.

F

T or F Services are distinguished from products on the basis of their tangibility, durability, homogeneity, and separability.

F

T or F Services such as insurance and dry cleaning are classified as tangible.

F

T or F The actual attributes of an innovation is a variable that affects the rate of diffusion of a product.

F

T or F The packaging component consists of the physical product—the platform that contains the essential technology—and all its design and functional features.

F

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

T

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

T

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

c

T or F 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.

T

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

T

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

T

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

T

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

T

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

T

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

T

T or F One of the three variables that affect the rate of diffusion of a product is the perceived attributes of product innovation.

T

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

T

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

T

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

T

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

T

T or F The term product homologation is used to describe the changes mandated by local product and service standards.

T

T or F When there are alternative products in a market, all of which meet performance quality standards, the product chosen is the one that meets market-perceived quality attributes.

T

47. An important first step in adapting a product to a foreign market is to determine: A. the degree of newness of the product as perceived by the intended market. B. the personal ethics of individuals in the target market. C. the regional political parties present in the domestic market. D. the language problem of the intended market. E. the product's compliancy to irrational beliefs of its potential foreign consumers.

a

49. _____ is the process by which innovation spreads. A. Diffusion B. Filtering C. Dissolution D. Flighting E. Liquidation

a

63. The success achieved by firms when they take their inventions to market is referred to as _____. A. conversion-ability B. liquidation C. formation-ability D. homologation E. consultation

a

64. The product platform, design features, and functional features are all found in the _____ component of the physical product according to the product component model. A. core B. support C. packaging D. supplementary E. auxiliary

a

65. Simone, a specialist in product design, is responsible for a product's functional design. With respect to the product component model, in which of the following component categories would Simone's talents most likely be used? A. Core B. Support services C. Packaging D. Invisible E. Auxiliary

a

75. 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 is being referred to here? A. Intangibility B. Separability C. Liquidity D. Homogeneity E. Durability

a

82. Which of the following barriers faced by consumer service marketers is in force when a foreign market strictly requires that services (such as banking or insurance) originate within the country itself and not from outside? A. Protectionism B. Lack of transborder data flows restrictions C. Protection of intellectual property D. Religious requirements for adaptation E. Language translation barriers

a

33. What are the two dimensions that help in defining the quality of a product of quality? A. Consumer choice quality and process quality B. Market-perceived quality and performance quality C. Product quality and market quality D. Actual quality and assumed quality E. Absolute quality and relative quality

b

45. As part of the "green movement," the European Commission has passed a 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. prevalence of similar environmental standards across different member countries B. consumer demand for environmentally friendly products C. higher government subsidies for greener technologies D. continuous availability of alternative energy resources for production E. proven efficient management of inventory of conventional energy products

b

55. Carolyn, who is interested in marketing her company's diet products in Asia, studies the acceptable behavior, norms, and values in Asian markets. In this scenario, Carolyn studies her product's _____ in the Asian markets. A. partibility B. compatibility C. dissidence D. billability E. docibility

b

71. According to the product component model, installation, repair and maintenance, deliveries, and warranties are most likely to be part of the _____ component of the product. A. core B. support services C. packaging D. functional E. styling

b

80. Which is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted? A. Automobile services B. International tourism C. Banking services D. Research and development E. Education services

b

89. 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. Indian cars C. French perfume D. Chinese silk E. Jamaican rum

b

46. Which of the following is a physical attribute of a motorbike that is essential for its primary function? A. Color B. Price C. Mobility D. Design E. Popularity

c

88. Sole Tales, a shoe manufacturer in Puerto Rico, shipped its entire production to San Francisco and brought it back to its home country to market it as "Made in the U.S." The manufacturer knew for a fact that people would prefer buying products made in the U.S. rather than those domestically produced. The factor that is influencing the perception of the customers in the given scenario is called the _____. A. Doppler effect B. comparative advantage effect C. country-of-origin effect D. mass effect E. placebo effect

c

42. Which of the following best defines green marketing? A. It refers to word-of-mouth marketing, where a company develops customers who become voluntary advocates of a product. B. It refers to inbound marketing used on websites in the form of a banner, text, or graphic. C. It refers to the type of marketing that takes place on the internet, where all the marketing resources and assets are transferred online. D. It is used to identify concerns with the environmental consequences of a variety of marketing activities. E. It refers to nontraditional or stealth marketing campaigns.

d

50. According to Everett Rogers, the goals of the diffusion researcher and the marketer are to shorten the time lag between: A. the dispatch of the product from the company and the time it takes to reach the customer. B. the time that a budget is constructed and the time needed for the funds to reach the communication channels. C. initial investment and the profits obtained from those investments. 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

52. Which of the following is considered to be one of the extraneous variables that affect the rate of diffusion of an object? A. The absolute marginal value of the innovation relative to the old B. The actual attributes of the innovation C. The climatic conditions of the region in which the market is located D. The method used to communicate the idea E. The degree of actual novelty of the innovation

d

58. Fiona's company wants to launch a new product in Madrid. Fiona requests her product manager to distribute some samples to potential customers there so that she can gauge the consumer preferences prevalent there before introducing the product. Here, Fiona tires to reduce the degree of economic and social risks, also known as _____, associated with product use. A. billability B. docibility C. invincibility D. trialability E. partibility

d

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

d

72. In some countries, maintenance of automobiles is not the norm, and they are not repaired until they break down. Since the consumer is automatically angry with the manufacturer when something goes wrong with the vehicle, 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? A. The core component B. The functional component C. The packaging component D. The support services component E. The price component

d

76. Because a service is individually produced and is virtually unique, the service is said to have _____. A. liquidity B. coherence C. equivalence D. heterogeneity E. placability

d

79. 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 ______. A. tangibility B. separability C. durability D. heterogeneity E. divisibility

d

83. The Red Lobster, a restaurant, considers opening branches in China. However, the restaurant's labor union feels that since accepting tips by wait-staff is considered in bad taste in China, they will face considerable loss. Therefore, they demand to know how employees would be compensated for this since a great portion of a typical wait-staff person's compensation comes in the form of tips. Which of the following barriers a consumer services marketer faces in a foreign market is illustrated in this scenario? A. Protectionism B. Controls on transborder data flows C. Protection of intellectual property D. Cultural requirements for adaptation E. Language translation barriers

d

86. The Norton group, a manufacturer of toiletries and cleaning products, uses the name SparkleX, for most its products in all of their international markets. The name has created a universal appeal for its products as customers identify their products with the name. Hence, SparkleX can be regarded as a _____. A. retailer's brand B. shelf brand C. store brand D. global brand E. dual brand

d

. A Korean electronics company had to add detailed instructions about 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 most likely being altered in the given scenario? A. The support services component B. The design component C. The core component D. The packaging component E. The functional component

e

34. _____ is the term used to describe the changes mandated by local product and service standards. A. Product localization B. Product protectionism C. Product disapprobation D. Product dilution E. Product homologation

e

40. Nuan, a television manufacturer in Korea, had to simplify its televisions before introducing it to the Zimbabwean markets, as the country lacked the skills to repair the product in case of a malfunction. The local salesforce too did not have the sufficient knowledge about the installation of the product. The factor that is influencing product adaptation in this scenario is ________. A. legal requirements B. climatic requirements C. political requirements D. cultural requirements E. technological requirements

e

54. A product is said to be compatible if: A. it provides greater value to the manufacturers than to the consumers. B. the degree of social repercussions associated with it is high. C. its benefits can be communicated easily. D. it has a higher degree of complexity compared with its counterparts'. E. it complies with the accepted norms, values, and culture of the local market.

e

59. A product's _____ refers to the ease with which its benefits can be communicated to the customers. A. vincibility B. partibility C. complexity D. trialability E. observability

e

60. Ingrid Cleaners develops promotional materials and product demonstrations to easily communicate the benefits of its cleaning products. In this scenario, Ingrid Cleaners tries to enhance the _____ of its products. A. partibility B. discordancy C. vincibility D. complexity E. observability

e

66. 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 component of the product component model that is most likely to be under consideration is: A. support services. B. packaging. C. delivery. D. ancillary. E. core.

e

68. If a company is altering the price of its product to compete with the local companies in the international market, it is most likely focusing on the _____ component of the product, according to the product component model. A. core B. support C. design D. maintenance E. packaging

e

78. A characteristic of a service is that it is _____, since it cannot be stored and must be consumed simultaneously with its creation. A. durable B. separable C. indelible D. tangible E. perishable

e

87. The _____ effect refers to the possibility that the place of manufacture may affect product or brand image. A. Doppler B. polar C. transfer D. misinformation E. country-of-origin

e