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Global Marketing, 10e (Green/Keegan)

Chapter 10 Brand and Product Decisions in Global Marketing

1) Which one of the following statements is not accurate regarding Alphabet Inc.?
A) The company's core search and ad-driven businesses are still called Google.
B) The company's semi-secret research division is known as the Moonshot Laboratory.
C) The company also owns Advanced Technology and Projects (ATAP), which focuses on
mobile applications.
D) Samsung and several other handset manufacturers use its Android smartphone operating
system.
E) Alphabet has also made a number of strategic acquisitions, including video-sharing site
YouTube and the Internet of Things thermostat brand Nest.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

2) Generally speaking, which of the following statements is true concerning product attributes?
A) Tangible product attributes are more important than intangible ones.
B) Intangible product attributes are more important than tangible ones.
C) Both tangible and intangible product attributes are important.
D) Neither tangible nor intangible product attributes are important.
E) A product has more attributes than tangible and intangible ones.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

3) Many American car buyers perceive Korean cars as:

A) durable.
B) cheap.
C) reliable.
D) of high quality.
E) a good investment.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

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4) An express warranty is a written guarantee that assures the buyer that he or she:
A) is getting what he or she desired.
B) will be able to get express response if any defects are found.
C) is getting what he or she has paid for.
D) will be able to contact the manufacturer whenever needed.
E) has limited time for filling out information required by the manufacturer.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

5) Packaging is an important consideration for products that are shipped to markets worldwide.
Which of the following statements related to packaging is not true?
A) Nestlé's worldwide network of packaging teams provide improvement suggestions on a
quarterly basis.
B) The Japanese prefer plain soft colors on their packages.
C) The Aquafresh Ultimate tube was designed to stand vertically.
D) Coca-Cola had contour bottles in both glass and plastic versions in many countries.
E) Nestlé asked suppliers to find a glue to make the clicking sound louder when a tube of
Smarties brand chocolate candies are unwrapped.
Answer: B
Difficulty: 3: Challenging
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

6) Packaging serves several important communication functions, which include all of the
following except:
A) packaging offer communication cues that can influence consumers when making a purchase
decision.
B) packaging engages the senses of a consumer.
C) packaging makes an emotional connection with the consumer.
D) packaging enhances a consumer's brand experience.
E) packaging enhances functional benefits of the product.
Answer: E
Difficulty: 3: Challenging
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

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7) Coca-Cola's distinctive contour bottle, which is sold in many countries, illustrates the point
that packaging:
A) strategies can vary by country and region.
B) helps in storing large sizes in refrigerators.
C) strategies do not change by country and region.
D) appeals only to Asian consumers.
E) helps in brand identification.
Answer: A
Difficulty: 2: Moderate
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

8) The marketers of Corona beer achieved great success in the U.S. market by:
A) retaining the bottle design originally used in Mexico.
B) hiring Hispanic movie stars as endorsers.
C) distributing Corona in returnable bottles.
D) changing the brewing recipe to conform to American palates.
E) having the label in Spanish.
Answer: A
Difficulty: 3: Challenging
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

9) All of the following statements related to packaging of Coca-Cola products are true except:
A) in North America, Coke offers Fridge Pack, which holds 12 cans, since there are large
refrigerators in use.
B) in Latin America, Coca-Cola offers Coke in different-sized bottles.
C) Coca-Cola's distinctive contour bottle comes in both glass and plastic versions.
D) Coke's packaging strategies are based on profitability in using different-sized bottles.
E) Coke sells 2-liter bottles in the United States, which can be stocked in chilled and unchilled
forms in stores.
Answer: D
Difficulty: 3: Challenging
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

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10) Regulators in different countries have proposed various regulations for product labeling. All
of the following statements pertaining to such regulations are true except:
A) mandatory health warnings on tobacco products are required in most countries.
B) the American Automobile Labeling Act clarifies the country of origin as well as the final
assembly point.
C) in 2008, the United States enacted a country-of-origin labeling (COOL) law.
D) the use of terms "light" and "natural" are allowed on labels only in the United States.
E) McDonald's is posting nutrition information on all food packaging and wrappers in selected
markets.
Answer: D
Difficulty: 3: Challenging
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

11) Global marketers must understand the importance of visual aesthetics embodied in the color
or shape of a product, label, or package. Which of the following statements is not true regarding
the use of color in selected countries?
A) The yellow color on Caterpillar's earthmoving equipment is acceptable worldwide.
B) Packaging aesthetics are particularly important to the Japanese.
C) The color white is associated with death and bad luck in some Asian countries.
D) The red Marlboro color had to be changed in some Asian countries.
E) The Chinese consider the color red to be lucky.
Answer: D
Difficulty: 3: Challenging
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

12) Packaging aesthetics are particularly important to the ________ consumer.

A) Indian
B) Japanese
C) French
D) German
E) American
Answer: B
Difficulty: 1: Easy
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

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13) X (formerly Google X), the company's semi-secret research facility, is known as the
Moonshot Laboratory. That's because staff members are working on "moonshot" projects that
represent leading-edge technology leaps.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

14) Alphabet's myriad product development initiatives illustrate the point that products and
brands are arguably the least crucial element of a company's marketing program.
Answer: FALSE
Difficulty: 1: Easy
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

15) For brands, it's important to speak the language of the target audience.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

16) Tangible product attributes include the status associated with product ownership and a
brand's overall reputation.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

17) An express warranty is a written guarantee that assures the buyer that he or she is getting
what he or she has paid for or that provides recourse in case a product's performance falls short
of expectations.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

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18) Coca-Cola's packaging innovation includes a Fridge Pack, which is a long, slender carton
that holds the equivalent of 12 cans of soda. This pack is popular since it fits into the
refrigerator's lower shelf and is convenient for use by global consumers.
Answer: FALSE
Difficulty: 1: Easy
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

19) Nestlé asked suppliers to find a type of glue to make the clicking sound louder when
consumers snap open a tube of Smarties brand chocolate candies.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

20) In 2008, the United States enacted a country-of-origin labeling (COOL) law. The law
requires supermarkets and other food retailers to display information that identifies the country
that meat, poultry, and certain other food products come from.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

21) The term consumer packaged goods applies to a specific variety of products whose
packaging is designed to protect or contain the product during shipping, at retail locations, and at
the point of use or consumption.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

22) A product is a good, service, or idea with both tangible and intangible attributes that
collectively create value for a buyer or user.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Application of knowledge

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28) What is a brand image? How can it be used by competitors to differentiate themselves?
Answer: Brand image can be defined as perceptions about a brand as reflected by brand
associations that consumers hold in their memories. Customers integrate all their experiences of
observing, using, or consuming a product with everything they hear and read about it.
Information about products and brands comes from a variety of sources and cues, including
advertising, publicity, word of mouth, sales personnel, and packaging. Perceptions of service
after the sale, price, and distribution are also taken into account. Brand image is one way that
competitors in the same industry sector differentiate themselves. Take Apple and Samsung, for
example. Both companies market smartphones. The late Steve Jobs, Apple's legendary cofounder
and CEO, was a constant media presence and a master at generating buzz; the iPhone, iPad, and
other Apple products generally receive stellar reviews for their sleek designs, powerful
functionality, and user-friendly features. Apple's retail stores reinforce the brand's hip, cool
image. By contrast, Samsung's brand image is more heavily skewed toward technology; few
Samsung users are likely to know the name of the company's chief executive.
Difficulty: 2: Moderate
Chapter LO: 10.1: Review the basic product concepts that underlie a successful global
marketing product strategy.
AACSB: Analytical thinking

29) As outlined by branding expert Kevin Lane Keller, the benefits of strong brand equity
include all of the following except:
A) greater loyalty.
B) more vulnerability to marketing actions.
C) less vulnerability to marketing crises.
D) more inelastic consumer response to price increases.
E) more elastic consumer response to price decreases.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

30) ________ represents the cumulative added value of a company's investment in the marketing
of a brand over time.
A) A brand extension
B) Co-branding
C) Brand image
D) Brand equity
E) Brand loyalty
Answer: D
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

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31) ________ can also be thought of as an asset representing the value created by the
relationship between the brand and its customers over time.
A) Brand extensions
B) Co-branding
C) Brand image
D) Brand equity
E) Brand loyalty
Answer: D
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

32) Which one of the following statements describing brand equity is not accurate?
A) It is an asset representing the value created by the relationship between the brand and its
customers over time.
B) The stronger the relationship with the consumer, the greater is the brand equity.
C) It represents the total value that accrues to a product as a result of a company's cumulative
investments in the marketing of the brand.
D) It can be thought of as an asset representing the value created by the relationship between the
brand and its customers over time.
E) It is a perception about a brand as reflected by brand associations that consumers hold in their
memories.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

33) Which of the following statements is not an example of local products or brands?
A) Coca-Cola developed several branded drink products for Japan.
B) Coca-Cola markets Kinely brand bottled water in India.
C) BMW uses "the ultimate driving machine" slogan in India.
D) Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United
Kingdom.
E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

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34) Examples of a "brand symbol" include all of the following except:

A) date of manufacture on Coca-Cola cans.
B) the wave that appears on red Coke cans and bottle labels.
C) non-word marks such as the Nike swoosh.
D) three-pronged Mercedes star.
E) McDonald's golden arches.
Answer: A
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

35) Around the world, various brands of personal computers are sold with Pentium processors.
This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which
branding concept does such advertising reflect?
A) brand equity
B) co-branding
C) brand image
D) brand extension
E) tiered branding
Answer: B
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

36) British entrepreneur Richard Branson has built a global business empire by:
A) relying on brand extension.
B) being the first to use smart cards in major markets.
C) developing local brands.
D) avoiding consumer businesses with established leaders.
E) restricting the "Virgin" name only to airlines.
Answer: A
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

10
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37) A logo can be all of the following except:

A) word mark.
B) nonword mark.
C) brand symbol.
D) brand equity.
E) trademark.
Answer: D
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

38) Which of the following is not in the top five of the world's most valuable brands according to
2017 rankings?
A) Apple
B) Microsoft
C) Coca-Cola
D) Amazon
E) Samsung
Answer: E
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

39) Maslow's hierarchy is applicable to global marketing because it can help explain how:
A) basic human needs can drive the development of global products.
B) the top of the Asian hierarchy is self-respect.
C) status needs in different countries can only be fulfilled with localized products.
D) "luxury badging" is irrelevant to companies marketing in Asia.
E) Asians differ from Westerners in their basic physiological needs.
Answer: A
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Analytical thinking

11
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40) Alfred Zeien, former chairman of Gillette, once noted that his company's Parker Pen unit
does not have to develop a special model for Malaysia and Singapore because shoppers
worldwide seek the same things when buying a gift that will serve the recipient as a status
symbol. This insight relates to which level of Maslow's hierarchy of needs?
A) physiological
B) safety
C) social
D) esteem
E) self-respect
Answer: D
Difficulty: 3: Challenging
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Analytical thinking

41) In some developing countries, refrigerators have an important secondary purpose related to
higher-order needs, which relates to:
A) competition
B) safety
C) physiology
D) prestige
E) self-respect
Answer: D
Difficulty: 3: Challenging
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Analytical thinking

42) Comparing the traditional formulation of Maslow's hierarchy with the results of current
research on the consumer needs and motivation in Asia, which of the following is correct?
A) The lowest two levels of the hierarchy are the same in the traditional and Asian versions.
B) The lowest three levels of the hierarchy are the same in the traditional and Asian versions.
C) The lowest four levels of the hierarchy are the same in the traditional and Asian versions.
D) The five levels in the traditional formulation apply equally in the West and in Asia.
E) The highest levels of the hierarchy are the same in the traditional and Asian versions.
Answer: A
Difficulty: 3: Challenging
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Analytical thinking

12
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43) Which of the following is not one of the levels in the Asian version of Maslow's hierarchy?
A) physiological
B) safety
C) affiliation
D) admiration
E) self-respect
Answer: E
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Analytical thinking

44) The benefits of strong brands include all of the following except:
A) greater loyalty.
B) less vulnerability to marketing actions.
C) less inelastic consumer response to price increases.
D) more elastic consumer response to price decreases.
E) larger margins.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Analytical thinking

45) The Intel Inside campaign promoting both the Intel Corporation and its Pentium-brand
processors in conjunction with advertising for various brands of personal computers is an
example of:
A) brand equity.
B) brand symbol.
C) co-branding.
D) brand extension.
E) brand loyalty.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

13
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46) When a corporate name such as Sony is combined with a product brand name such as
Walkman, the brand category is referred to as:
A) brand equity.
B) brand symbol.
C) tiered brand.
D) co-brand.
E) brand loyalty.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

47) The Sony Walkman is an example of combination or tiered branding, whereby a corporate
name is combined with the name of the product.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

48) The world's 10 most valuable brands (2017) includes McDonald's restaurants.
Answer: FALSE
Difficulty: 1: Easy
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

49) The Virgin brand is a global brand with several brand extensions.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

50) Apple's retail stores reinforce the brand's hip, cool image.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

14
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51) The equity value of global megabrands such as Coca-Cola and Marlboro runs in the tens of
billions of dollars.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

52) One of the benefits of strong brand equity is more elastic consumer response to price
increases.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

53) As quoted in the text, "People love the Uber product. They do not necessarily love the
brand."
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

54) The "wave" that appears on red Coke cans and bottle labels is an example of a brand symbol.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

55) In India, Vietnam, and other emerging markets, many people cannot afford flush toilets but
buy cell phones as status symbols.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

56) According to the top brand rankings, 2017, Microsoft is the world's most valuable brand.
Answer: FALSE
Difficulty: 1: Easy
Chapter LO: 10.2: Compare and contrast local products and brands, international products and
brands, and global products and brands.
AACSB: Application of knowledge

15
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63) Marketers in Gillette's Parker Pen subsidiary focused on upscale shoppers in Malaysia and
Singapore. This is an example which coincides with Maslow's hierarchy related to:
A) self-esteem.
B) physiological needs.
C) security.
D) self actualization.
E) social needs.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.3: Explain how Maslow's needs hierarchy helps global marketers understand the
benefits sought by buyers in different parts of the world.
AACSB: Analytical thinking

64) Marketers in Gillette's Parker Pen subsidiary are confident that consumers in Malaysia and
Singapore shopping for an upscale gift will buy the same Parker Pen as Americans shopping at
Neiman Marcus.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.3: Explain how Maslow's needs hierarchy helps global marketers understand the
benefits sought by buyers in different parts of the world.
AACSB: Application of knowledge

65) When consumers flaunt their wealth by buying expensive products and brands so that others
will notice is referred to as "luxury badging" behavior.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.3: Explain how Maslow's needs hierarchy helps global marketers understand the
benefits sought by buyers in different parts of the world.
AACSB: Application of knowledge

66) In countries like India and Vietnam, and other emerging markets, amenities such as
refrigerators, flush toilets, and cell phones are considered status symbols.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.3: Explain how Maslow's needs hierarchy helps global marketers understand the
benefits sought by buyers in different parts of the world.
AACSB: Application of knowledge

67) In Hellmut Schutte's modified hierarchy to explain the needs and wants of Asian consumers,
the last three levels are affiliation, admiration, and self-actualization.
Answer: FALSE
Difficulty: 3: Challenging
Chapter LO: 10.3: Explain how Maslow's needs hierarchy helps global marketers understand the
benefits sought by buyers in different parts of the world.
AACSB: Application of knowledge

18
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70) Which of the following could hinder the success of products labeled "Made in Bangladesh"
or "Made in Thailand" in export markets?
A) negative country-of-origin bias
B) no possible quality/price positioning
C) low acceptance of private brands
D) lack of promotion in global markets
E) high product saturation levels in global markets
Answer: A
Difficulty: 2: Moderate
Chapter LO: 10.4: Outline the importance of "country of origin" as a brand element.
AACSB: Analytical thinking

71) Perceptions and attitudes about a product's origins can be positive or negative. On the
positive side, "German" is synonymous with style.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 10.4: Outline the importance of "country of origin" as a brand element.
AACSB: Application of knowledge

72) Many consumers consider products with labels such as "Made in Bangladesh" and "Made in
Brazil" to be of inferior quality and value.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.4: Outline the importance of "country of origin" as a brand element.
AACSB: Application of knowledge

73) China and India take great pride in their manufacturing capabilities but, generally speaking,
consumer perception lags behind the reality.
Answer: TRUE
Difficulty: 1: Easy
Chapter LO: 10.4: Outline the importance of "country of origin" as a brand element.
AACSB: Application of knowledge

74) Scotland's top export category is information technology.

Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.4: Outline the importance of "country of origin" as a brand element.
AACSB: Application of knowledge

75) The European Commission sets product standards that force many non-EU companies to
adapt their product or service offerings to satisfy domestic market regulations.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.4: Outline the importance of "country of origin" as a brand element.
AACSB: Application of knowledge

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76) Industrial products tend to be less deeply rooted in culture than are consumer goods.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.4: Outline the importance of "country of origin" as a brand element.
AACSB: Application of knowledge

77) Generally speaking, which of the following product categories represents the best potential
for extension into international markets without adaptation?
A) companion products
B) food products
C) industrial products
D) intangible products
E) non-alcoholic drinks
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Application of knowledge

78) Ben & Jerry's ice cream package design was changed in the United Kingdom since British
consumers perceived the colors differently than U.S. consumers. This is an example of:
A) product-communications extension.
B) product extension-communications adaptation.
C) product adaptation-communications extension.
D) dual adaptation.
E) product invention.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Application of knowledge

79) Targeting the 300 million farmers in India who still use plows harnessed to oxen, John Deere
engineers created a line of relatively inexpensive, no-frills tractors. The Deere team then realized
that the same equipment could be marketed to hobby farmers and acreage owners in the United
States, a segment that they had previously overlooked. This is an example of ________ strategy.
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product invention
Answer: B
Difficulty: 3: Challenging
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Analytical thinking

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80) Before Ben & Jerry's launched their ice cream in the United Kingdom, the company
conducted extensive research to determine whether the package design was appropriate. The
research indicated that British consumers perceived the colors differently than U.S. consumers.
The package design was changed accordingly. This type of strategy can be defined as:
A) product-communications extension.
B) product extension-communications adaptation.
C) product adaptation-communications extension.
D) product-communication adaptation.
E) product invention.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Analytical thinking

81) Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese
consumers were not receptive to ads featuring the Campbell Kids and the "M'm M'm Good"
slogan. This compelled Campbell's to develop ads featuring a talking soup can known as "Mr.
Campbell." Campbell's also developed soup varieties for Japan with fish as the main protein
source and spices that reflect local preferences. As described here, which of the following
strategies has Campbell's used in Japan?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) product-communication adaptation
E) product invention
Answer: D
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Analytical thinking

82) To promote its Centrino wireless chip, Intel launched a global ad campaign that features
different combinations of celebrities. These celebrities were chosen because they are widely
recognized in the key world markets. This type of strategy is referred to as:
A) product-communications extension.
B) product extension-communications adaptation.
C) product adaptation-communications extension.
D) product-communication adaptation.
E) product invention.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Analytical thinking

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83) Colgate's Total is a new toothpaste brand whose formulation, imagery, and consumer appeal
were designed from the beginning to translate across national boundaries. Which strategy did
Colgate use with Total?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product innovation
Answer: E
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Analytical thinking

84) In Chinese markets, Nike had a problem using the "Just Do It" attitude which was found not
to be appropriate. Finally, Nike decided to use Chinese athletes in their promotion. This type of
adaptation was needed due to:
A) the Chinese do not wear running shoes.
B) ingrained Chinese values which respect authority.
C) Chinese athletes use Nike shoes.
D) "Just do it" in Chinese has a negative connotation.
E) parents do not want their children to see such ads.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Analytical thinking

85) Which of the following consumer products companies experienced a major product failure in
Europe due to inadequate test marketing?
A) Procter & Gamble
B) Colgate
C) Kao
D) Unilever
E) Seagram
Answer: D
Difficulty: 1: Easy
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Analytical thinking

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86) Give an example of how innovation can be applied to meet the needs of low-income
populations.
Answer: As an example of how innovation can be applied to meet the needs of low-income
populations, consider two entrepreneurs, working independently, who recognized that millions of
people around the globe need low-cost eyeglasses. Robert J. Morrison, an American optometrist,
created Instant Eyeglasses. These glasses utilize conventional lenses, can be assembled in
minutes, and sell for approximately $20 per pair. Joshua Silva, a physics professor at Oxford
University, took a more high-tech approach and came up with glasses with transparent
membrane lenses filled with clear silicone fluid. Using two manual adjusters, users can increase
or decrease the power of the lenses by regulating the amount of fluid in them. Professor Silva is
currently CEO of the Centre for Vision in the Developing World, whose mission is to sell low-
cost, self-adjusting glasses in developing countries.
Difficulty: 2: Moderate
Chapter LO: 10.3: Explain how Maslow's needs hierarchy helps global marketers understand the
benefits sought by buyers in different parts of the world.
AACSB: Analytical thinking

87) A company that has developed a successful local product or brand cannot implement an
adaptation strategy.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Application of knowledge

88) The extension strategy where the product remains virtually unchanged but extending it in
markets outside the home country is known as "adaptation strategy."
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Application of knowledge

89) Because of the consumer safety regulations, McDonald's can only give away soft plastic toys
with its Happy Meals in Europe.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Application of knowledge

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90) Microsoft's Windows 7 operating system was launched in 2009 with the user-centric global
advertising campaign keyed to the theme "I'm a PC, and Windows 7 was my idea." This is an
example of the dual-extension strategy.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Application of knowledge

91) The appeal of the product extension-communication adaption strategy is its relatively low
cost of implementation.
Answer: TRUE
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Application of knowledge

92) Before executives at Ben & Jerry's Homemade launched their ice cream in the United
Kingdom, the company conducted extensive research to determine whether the package design
effectively communicated the brand's "super premium" position. This is an example of dual-
extension strategy.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Application of knowledge

93) When Kraft Foods launched Oreo brand cookies in China in 1996, they found that Oreo was
too sweet for the Chinese palate, and the price was too low. Oreo reformulated a less-sweet
chocolate-covered wafer and increased its price. This strategy is referred to as product extension
approach.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Application of knowledge

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97) Laws and regulations in different countries frequently lead to obligatory design. Giving
examples, show how this can have an impact in global marketing.
Answer: It is true that laws and regulations in different countries frequently lead to obligatory
product design adaptations. Corporations have to develop or modify products to meet the
requirement. This may be seen most clearly in Europe, where one impetus for the creation of the
single market was the desire to dismantle regulatory and legal barriers that prevented pan-
European sales of standardized products. These were particularly prevalent in the areas of
technical standards and health and safety standards. In the food industry, for example, there were
200 legal and regulatory barriers to cross-border trade within the EU in 10 food categories.
Among these were prohibitions or taxes on products with certain ingredients and different
packaging and labeling laws. As these barriers are dismantled, there will be less need to adapt
product designs, and many companies will be able to create standardized "Euro-products."
Difficulty: 2: Moderate
Chapter LO: 10.5: List the five strategic alternatives that marketers can utilize during the global
product planning process.
AACSB: Analytical thinking

98) Guidelines which can assist managers in their effort to establish global brand leadership
include all of the following except:
A) create a compelling value proposition for customers.
B) before taking a brand overseas, select name, marks and symbols.
C) make a process template available to all managers.
D) assign specific responsibility for managing branding issues.
E) make a process template for international consumers.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 10.6: Explain the new-product continuum and compare and contrast the different
types of innovation.
AACSB: Analytical thinking

99) The formulation, imagery, and consumer appeal of Colgate's Total brand toothpaste were
designed to translate across national boundaries. This new global brand represents which type of
product innovation?
A) discontinuous innovation
B) dynamically continuous innovation
C) continuous innovation
D) comparative innovation
E) dynamically discontinuous innovation
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.6: Explain the new-product continuum and compare and contrast the different
types of innovation.
AACSB: Analytical thinking

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100) When introduced in the late 1970s, the VCR created new patterns of consumer behavior.
For example, assuming the user could learn to set the timer, he or she could tape programs to
watch at a later time. DVD, a playback only video system, was introduced in the late 1990s.
DVD discs contain full-length movies with digital sound in a format that resembles conventional
music compact discs. Which of the following most accurately describes the respective degree of
newness of these two global products?
A) The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation.
B) The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation.
C) The VCR and DVD are both dynamically continuous innovations.
D) The VCR and DVD are both discontinuous innovations.
E) The VCR and DVD are both continuous innovations.
Answer: A
Difficulty: 2: Moderate
Chapter LO: 10.6: Explain the new-product continuum and compare and contrast the different
types of innovation.
AACSB: Analytical thinking

101) The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home
electronic entertainment. For example, assuming the user could learn to set the timer, he or she
could tape programs to watch at a later time. The VCR's popularity also gave rise to an entirely
new retailing concept, the video rental store. What type of innovation did the consumer VCR
represent?
A) a continuous innovation
B) a dynamically continuous innovation
C) a discontinuous innovation
D) a comparative innovation
E) none of the above
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.6: Explain the new-product continuum and compare and contrast the different
types of innovation.
AACSB: Analytical thinking

102) Most new products fall into the category described as:
A) added-value innovation.
B) dynamically continuous innovation.
C) discontinuous innovation.
D) platform-based innovation.
E) continuous innovation.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 10.6: Explain the new-product continuum and compare and contrast the different
types of innovation.
AACSB: Analytical thinking

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103) By definition, a ________ requires a large amount of learning on the part of users and
typically creates new markets and consumption patterns.
A) continuous innovation
B) dynamically continuous innovation
C) discontinuous innovation
D) platform-based innovation
E) new and improved innovation
Answer: C
Difficulty: 2: Moderate
Chapter LO: 10.6: Explain the new-product continuum and compare and contrast the different
types of innovation.
AACSB: Analytical thinking

104) The corporate development team at Virgin evaluates more than a dozen proposals each day
from outside and within the company. When assessing new-product ideas, they look for all of the
following except:
A) synergy with existing Virgin products.
B) pricing and return on investment.
C) marketing opportunities.
D) if the idea "uses or abuses" the Virgin brand.
E) aesthetic attributes of competitors' products.
Answer: E
Difficulty: 2: Moderate
Chapter LO: 10.6: Explain the new-product continuum and compare and contrast the different
types of innovation.
AACSB: Analytical thinking

30
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