Global marketing management 8th edition keegan test bank

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Global Marketing Management, 8e (Keegan) Chapter 10 Product Decisions 1) A product could be a tangible object or an intangible service.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 2) Intangible product attributes do not play a significant role in global marketing.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy 3) A national product is offered in a single national market.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 4) The term regional product is synonymous with local product in the United States.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 5) International products are exclusively offered in global markets.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy 6) Some global products are designed to meet the needs of a national market.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 7) A global product is considered as a global brand.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy 8) The marketing mix for a global brand can vary from country to country.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 9) Global products cannot be converted into global brands.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy 1 Copyright © 2014 Pearson Education, Inc.

10) Developing a global product design increases a company's research and development costs.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy 11) Creating global brands requires a different kind of marketing effort than to create one or two national brands.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 12) Repositioning existing brands is simpler than creating a new brand in a global market.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy 13) Exploiting a particular feature, benefit, or attribute of a product is a frequently used positioning strategy.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 14) "Transformation advertising" describes advertising that seeks to change the experience of buying and using a product.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 15) Marketing of high-touch products requires more emphasis on specialized information and less emphasis on image.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy 16) High-touch products may have a global appeal by virtue of their country of origin.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 17) A product saturation level is the percentage of potential buyers who own a particular product.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy

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18) Unit cost of a product is directly related to the production volume.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy 19) Compliance with the laws and regulations of a global market can lead to increases in costs.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 20) Organizations must ensure that its products are compatible to the environment in which it is being used.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 21) Every country has a monopoly on a favorable foreign reputation for its products or a universally inferior reputation.

Answer: FALSE AACSB: Analytical thinking Difficulty: Moderate 22) Country stereotyping can present a considerable disadvantage to a competitor in a given market.

Answer: TRUE AACSB: Analytical thinking Difficulty: Moderate 23) For international companies, the dual extension strategy grows out of a geocentric orientation.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy 24) Dual adaptation is essentially a combination of the product extension/communication adaptation and product adaptation/communication extension approaches.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 25) A global company adapts a dual extension strategy based on an assumption that every market is alike.

Answer: FALSE AACSB: Analytical thinking Difficulty: Moderate

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26) For a multinational company, the product adaptation strategy grows out of a polycentric orientation, as it assumes that all markets are different.

Answer: TRUE AACSB: Analytical thinking Difficulty: Easy 27) Dual extension is the best approach to international and multinational marketing.

Answer: FALSE AACSB: Analytical thinking Difficulty: Easy 28) It is better for a company to have a centralized product development strategy as opposed to one which is dispersed in many countries around the world.

Answer: FALSE AACSB: Analytical thinking Difficulty: Moderate 29) If a product is successful in its home country, it is not necessary to test market in new geographic markets.

Answer: FALSE AACSB: Analytical thinking Difficulty: Moderate 30) How do national products cause substantial opportunity costs to companies?

A) by restricting companies from utilizing global leverage in marketing and production B) by transferring the experience gained in one market to other markets C) by utilizing the expertize acquired by managers in a single product in other markets D) by allowing managers from outside markets to acquire product expertise Answer: A AACSB: Analytical thinking Difficulty: Moderate 31) Which of the following is true about global products?

A) They always carry the same name and image from country to country.

B) They are offered in every world region at every stage of development.

C) They are a symbol about which customers have beliefs and perceptions.

D) They are exclusively used as an umbrella for introducing new products in the market.

Answer: B AACSB: Analytical thinking Difficulty: Moderate

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32) How is a global brand different from a global product?

A) A global brand can be made a global product, whereas a global product cannot become a global brand.

B) A global brand's market positioning is different when compared to that of a global product.

C) A global brand's strategic principles are fundamentally different from those of a global product.

D) A global brand carries the same name and image from country to country, whereas a global product does not.

Answer: D AACSB: Analytical thinking Difficulty: Moderate 33) Product ________ refers to the act of locating a brand in customers' minds over and against other products.

A) differentiation B) sampling C) positioning D) extension Answer: C Difficulty: Easy 34) Which of the following types of products requires a marketing approach that emphasizes less on specialized information and more on image?

A) high-tech products B) high-touch products C) agricultural products D) unsought products Answer: B Difficulty: Easy 35) Under which of the following circumstances would the saturation levels of a product most likely increase in a global market?

A) when the national income per capita of a country increases B) when product supply does not meet product demand C) when a product appeals to only a few segments of a targeted market D) when the economic growth of a country stagnates Answer: A AACSB: Analytical thinking Difficulty: Moderate

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36) Which of the following actions should a global marketer consider to counter the country stereotyping problem in global markets?

A) export products without any modifications B) restrict production to home country C) develop an international image D) sell products at below-market prices Answer: C AACSB: Analytical thinking Difficulty: Moderate 37) Which of the following is the easiest product marketing strategy when pursuing opportunities outside the home market?

A) product adaptation/communication extension B) dual extension C) product extension/communication adaptation D) dual adaptation Answer: B Difficulty: Easy 38) Countries pursuing the ________ strategy sell the same product with the same promotional appeal as used in the home country, in world-market segments.

A) product adaptation/communication extension B) product extension/communication adaptation C) dual extension D) dual adaptation Answer: C Difficulty: Easy 39) Briners Cafe promotes their products as a "quick snack for a busy life" in the United States, and advertises the same products as "cheap and delicious" in the Asian countries. In this case, the product marketing strategy used by Briners is referred to as ________.

A) product adaptation/communication extension B) product extension/communication adaptation C) dual extension D) dual adaptation Answer: B AACSB: Analytical thinking Difficulty: Hard

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40) A global marketing strategy where companies use the basic home-market communications strategy while adapting the product to local use or preference conditions is referred to as ________.

A) product/communication extension B) product extension/communication adaptation C) product adaptation/communication extension D) product/communication adaptation Answer: C Difficulty: Easy 41) Which of the following types of companies will utilize the dual extension strategy based on the assumptions that all markets are alike?

A) global B) international C) transnational D) domestic Answer: B Difficulty: Moderate 42) In ________, the basic home-market communications strategy is retained while the product is changed to local use or preference conditions.

A) dual extension B) mono adaption C) product extension/communication adaptation D) product adaptation/communication extension Answer: D Difficulty: Easy 43) When the environmental conditions and consumer preferences of a global market differ from a domestic market, companies should use a ________ strategy.

A) dual extension B) product extension/communication adaptation C) product adaptation/communication extension D) dual adaptation Answer: D Difficulty: Easy

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44) Rivera Inc., a leading mobile manufacturer in the United States, manufactures a new product similar to its existing line of high-end smart phones to meet the demands for a low-cost product in the developing countries. They also plan to use new ads that are more sensitive to those countries. In this case the product marketing strategy used by Rivera is referred to as ________.

A) mono adaption B) product extension/ communication adaptation C) dual extension D) dual adaptation Answer: D AACSB: Analytical thinking Difficulty: Hard 45) Explain the product positioning strategy based on a product's attribute/benefits with an example?

Answer: A frequently used positioning strategy exploits a particular product attribute, benefit, or feature. In global marketing, the fact that a product is imported can itself represent a benefit positioning. Economy, reliability, and durability are other frequently used attribute/benefit positions. Volvo automobiles are known for solid construction that offer safety in the event of a crash. In the ongoing credit card wars, VISA's advertising focuses on the benefit of worldwide merchant acceptance.

AACSB: Analytical thinking Difficulty: Moderate 46) How do organizations identify new-product ideas?

Answer: The starting point for an effective worldwide new-product program is an information system that seeks new-product ideas from all potentially useful sources and channels. Those ideas relevant to the company undergo screening at decision centers within the organization.

There are many sources of new-product ideas, including customers, suppliers, competitors, company salespeople, distributors and agents, subsidiary executives, headquarters executives, documentary sources (for example, information service reports and publications), and, finally, actual firsthand observation of the market environment.

AACSB: Analytical thinking Difficulty: Moderate

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