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InternationalMarketing,18e(Cateora)

Chapter13ProductsandServicesforConsumers

1)Globalcompetitionhasputmorepowerinthehandsoftheseller.

Answer:FALSE

Explanation:Globalcompetitionhasshiftedthepowerinthemarketplacefromasellers'toacustomers'market,andthelatterhavemorechoicesbecausemorecompaniesarecompetingfortheirattention.Morecompetitionandmorechoicesputmorepowerinthehandsofthecustomer,andthatofcoursedrivestheneedforquality.

Difficulty:1Easy

Topic:HowResourcesandCapabilitiesInfluenceCompetitiveDynamics

LearningObjective:13-01Theimportanceofofferingaproductsuitablefortheintendedmarket.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

2)Thecostandqualityoftheproductareamongthemostimportantcriteriabywhichpurchasesaremade.

Answer:TRUE

Explanation:Inmostglobalmarkets,thecostandqualityofaproductareamongthemostimportantcriteriabywhichpurchasesaremade.Forconsumerandindustrialproductsalike,thereasonoftengivenforpreferringonebrandoveranotherisbetterqualityatacompetitiveprice.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-01Theimportanceofofferingaproductsuitablefortheintendedmarket.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

3)Consumerperceptionsofaqualityproductoftenhavemoretodowithmarket-perceivedqualitythanperformancequality.

Answer:TRUE

Explanation:Qualitycanbedefinedontwodimensions:market-perceivedqualityandperformancequality.Bothareimportantconcepts,butconsumerperceptionsofaqualityproductoftenhavemoretodowithmarket-perceivedqualitythanperformancequality.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-02Theimportanceofqualityandhowqualityisdefined.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

4)Whentherearealternativeproductsinamarket,allofwhichmeetperformancequalitystandards,theproductchosenistheonethatmeetsmarket-perceivedqualityattributes.

Answer:TRUE

Explanation:Inacompetitivemarketplaceinwhichthemarketprovideschoices,mostconsumersexpectperformancequalitytobeagiven.Whentherearealternativeproducts,allofwhichmeetperformancequalitystandards,theproductchosenistheonethatmeetsmarket-perceivedqualityattributes.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-02Theimportanceofqualityandhowqualityisdefined.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

5)Thedecisiontostandardizeoradaptaproductislessimportantindeliveringqualitythanprice.

Answer:FALSE

Explanation:Qualityisnotjustdesirable,butessentialforsuccessintoday'scompetitiveglobalmarket,andthedecisiontostandardizeoradaptaproductiscrucialindeliveringquality.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-02Theimportanceofqualityandhowqualityisdefined.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

6)Thetermproducthomogenizationisusedtodescribethechangesmandatedbylocalproductandservicestandards.

Answer:FALSE

Explanation:Inmanycountries,thetermproducthomologationisusedtodescribethechangesmandatedbylocalproductandservicestandards.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

7)Greenmarketingisthetermfrequentlyusedtoidentifyamarketer'seffortstoreduceitsdependencyonU.S.dollarsasthestandardforinternationalexchange.

Answer:FALSE

Explanation:Greenmarketingisatermusedtoidentifyconcernwiththeenvironmentalconsequencesofavarietyofmarketingactivities.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

8)TheEuropeanCommission(EC)mandaterequiresaproducttobeevaluatedonallsignificantenvironmentaleffectsthroughoutitslifecycle,frommanufacturingtodisposal.

Answer:TRUE

Explanation:TheEuropeanCommissionissuedguidelinesforecolabelingthatbecameoperationalin1992.Underthedirective,aproductisevaluatedonallsignificantenvironmentaleffectsthroughoutitslifecycle,frommanufacturingtodisposal—acradle-to-graveapproach.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

9)Animportantfirststepinadaptingaproducttoaforeignmarketistodeterminethecost-benefitasperceivedbytheintendedmarket.

Answer:FALSE

Explanation:Animportantfirststepinadaptingaproducttoaforeignmarketistodeterminethedegreeofnewnessasperceivedbytheintendedmarket.Howpeoplereacttonewnessandhownewaproductistoamarketmustbeunderstood.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

10)Adaptationofthenonphysicalfeaturesofaproductshouldbeavoidedwhenadaptingtheproducttoanewculture.

Answer:FALSE

Explanation:Themeaningandvalueimputedtothepsychologicalattributesofaproductcanvaryamongculturesandareperceivedasnegativeorpositive.Tomaximizethebundleofsatisfactionsreceivedandtocreatepositiveproductattributesratherthannegativeones,adaptationofthenonphysicalfeaturesofaproductmaybenecessary.

Difficulty:1Easy

Topic:EconomicandBusinessImplicationsofCulturalChange

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

11)Fromasociologicalpointofview,anyideaperceivedasnewbyagroupofpeopleisaninnovation.

Answer:TRUE

Explanation:Fromasociologicalviewpoint,anyideaperceivedasnewbyagroupofpeopleisaninnovation.Whetherornotagroupacceptsaninnovation,andthetimeittakestodoso,dependsontheproduct'scharacteristics.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

12)AccordingtoEverettRogers,theelementoftimedifferentiateselementsinthediffusionofnewideasfromothertypesofcommunicationresearch.

Answer:TRUE

Explanation:EverettRogersnotedthat"crucialelementsinthediffusionofnewideasareaninnovation,whichiscommunicatedthroughcertainchannels,overtime,amongthemembersofasocialsystem."Rogerscontinuedwiththestatementthatitistheelementoftimethatdifferentiatesdiffusionfromothertypesofcommunicationsresearch.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

13)Oneofthethreevariablesthataffecttherateofdiffusionofaproductistheperceivedattributesofproductinnovation.

Answer:TRUE

Explanation:Atleastthreeextraneousvariablesaffecttherateofdiffusionofanobject:thedegreeofperceivednewness,theperceivedattributesoftheinnovation,andthemethodusedtocommunicatetheidea.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

14)Onevariablethataffectstherateofdiffusionofaproductistheactualattributesoftheinnovation.

Answer:FALSE

Explanation:Atleastthreeextraneousvariablesaffecttherateofdiffusionofanobject:thedegreeofperceivednewness,theperceivedattributesoftheinnovation,andthemethodusedtocommunicatetheidea.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

15)Ingeneral,therateofdiffusionofaproductisnegativelyrelatedtoitsrelativeadvantage.

Answer:FALSE

Explanation:Therateofdiffusionofaproductcanbepostulatedaspositivelyrelatedtorelativeadvantage,compatibility,trialability,andobservabilitybutnegativelyrelatedtocomplexity.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

16)Productdiffusionoracceptanceismorerapidwhenproductperceptionsaresimilartocurrentculturalvalues.

Answer:TRUE

Explanation:Themorecongruentproductperceptionsarewithcurrentculturalvalues,thelessresistancetherewillbeandthemorerapidproductdiffusionoracceptancewillbe.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

17)ThepackagingcomponentoftheProductComponentModelconsistsofthephysicalproduct—theplatformthatcontainstheessentialtechnology—andallitsdesignandfunctionalfeatures.

Answer:FALSE

Explanation:Thecorecomponentconsistsofthephysicalproduct—theplatformthatcontainstheessentialtechnology—andallitsdesignandfunctionalfeatures.Thepackagingcomponentincludesstylefeatures,packaging,labeling,trademarks,brandname,quality,price,andallotheraspectsofaproduct'spackage.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

18)OneofthecorecomponentsintheProductComponentModelistheproductplatform.

Answer:TRUE

Explanation:ThecorecomponentoftheProductComponentModelincludestheproductplatformthatcontainstheessentialtechnologyandallitsdesignandfunctionalfeatures.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

19)AccordingtotheProductComponentModel,theinstructionsforusingtheproductandthewarrantyoftheproductareincludedunderthepackagingcomponent.

Answer:FALSE

Explanation:Thesupportservicescomponentincludesrepairandmaintenance,instructions,installation,warranties,deliveries,andtheavailabilityofspareparts.Thepackagingcomponentincludesstylefeatures,packaging,labeling,trademarks,brandname,quality,price,andallotheraspectsofaproduct'spackage.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

20)Oneoftheconsistenciesthatmarketerscanlookforwardtowhenmarketingproductsabroadisthatalmostalllabelinglawsworldwideareessentiallythesame.

Answer:FALSE

Explanation:Labelinglawsvaryfromcountrytocountryanddonotseemtofollowanypredictablepattern.Labelinglawscreateaspecialproblemforcompaniessellingproductsinvariousmarketswithdifferentlabelinglawsandsmallinitialdemandineach.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

21)Incountrieswithlowliteracyrates,thepicturesandsymbolsonproductsaretakenliterallyasinstructionsandinformation.

Answer:TRUE

Explanation:Itiseasytoforgetthatinlow-literacycountries,picturesandsymbolsaretakenliterallyasinstructionsandinformation.Caremustbetakentoensurethatcorporatetrademarksandotherpartsofthepackagingcomponentdonothaveunacceptablesymbolicmeanings.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

22)Thesupportservicescomponentoftheproductcomponentmodelcontainssuchitemsasrepairandmaintenanceandavailabilityofspareparts.

Answer:TRUE

Explanation:Thesupportservicescomponentincludesrepairandmaintenance,instructions,installation,warranties,deliveries,andtheavailabilityofspareparts.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

23)Servicessuchasinsuranceanddrycleaningtypicallyareclassifiedastangible.

Answer:FALSE

Explanation:Productsareoftenclassifiedastangible,whereasservicesareintangible.Automobiles,computers,andfurnitureareexamplesofproductsthathaveaphysicalpresence;insurance,drycleaning,hotelaccommodations,andairlinepassengerorfreightservice,incontrast,areintangible.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

24)Servicesaredistinguishedfromproductsonthebasisoftheirdurability,homogeneity,andseparability.

Answer:FALSE

Explanation:Servicesaredistinguishedfromproductsbyfourcharacteristics—intangibility,inseparability,heterogeneity,andperishability.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

25)Themajorityofservicesenterforeignmarketsbylicensing,franchising,ordirectinvestment.

Answer:TRUE

Explanation:Thevastmajorityofservices(some85percent)enterforeignmarketsbylicensing,franchising,ordirectinvestment.

Difficulty:1Easy

Topic:DifferentModesforEnteringForeignMarkets

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

26)Culturalbarriersplayabiggerroleinservicesthaninmerchandisetrade.

Answer:TRUE

Explanation:Becausetradeinservicesfrequentlyinvolvespeople-to-peoplecontact,cultureplaysamuchbiggerroleinservicesthaninmerchandisetrade.Managingaglobalservicesworkforceiscertainlynosimpletask.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Understand

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

27)Inthecontextofglobalmarketing,aproduct'scountryoforigindoesnotaffectitsbrand'simagesignificantly.

Answer:FALSE

Explanation:Acompanycompetinginglobalmarketstodaymanufacturesproductsworldwide;whenthecustomerbecomesawareofthecountryoforigin,thereisthepossibilitythattheplaceofmanufacturewillaffectproductorbrandimages.Thecountry,thetypeofproduct,andtheimageofthecompanyanditsbrandsallinfluencewhetherthecountryoforiginwillengenderapositiveornegativereaction.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

28)Brandimageisattheverycoreofbusinessidentityandstrategy.

Answer:TRUE

Explanation:Brandimageisattheverycoreofbusinessidentityandstrategy.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-04Theneedtoviewallattributesofaproducttoovercomeresistancetoacceptance.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

29)Productsfromdevelopingcountrieshavethehighestqualityimage.

Answer:FALSE

Explanation:Countriesarealsooftenstereotypedonthebasisofwhethertheyareindustrialized,intheprocessofindustrializing,ordeveloping.Industrializedcountrieshavethehighestqualityimage,andproductsfromdevelopingcountriesgenerallyencounterbias.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-05Country-of-origineffectsonproductimage.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

30)Effectiveadvertisingandproperpositioningofproductscanhelpbrandstoimprovealess-than-positivecountrystereotype.

Answer:TRUE

Explanation:Brandseffectivelyadvertisedandproductsproperlypositionedcanhelpamelioratealess-than-positivecountrystereotype.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-05Country-of-origineffectsonproductimage.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

31)Whatimpacthasglobalcompetitionhadonbusinessactivitiesintheinternationalmarketplace?

A)Ithasshiftedthefocusfromaconsumer'smarkettoaseller'smarket.

B)Ithasincreasedproductlifecycles.

C)Ithasputmorepowerinthehandsofthecustomer.

D)Ithasreducedthecompetitivespiritofmostbusinessesinamarketplace.

E)Ithaslimitedthechoicesoftheconsumers.

Answer:C

Explanation:Thepowerinthemarketplaceisshiftingfromasellers'toacustomers'market,andthelatterhavemorechoicesbecausemorecompaniesarecompetingfortheirattention.Morecompetitionandmorechoicesputmorepowerinthehandsofthecustomer,andthatofcoursedrivestheneedforquality.

Difficulty:2Medium

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-01Theimportanceofofferingaproductsuitablefortheintendedmarket.

Bloom's:Understand

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

32)Whatisoneofthetoptwocriteriaforglobalmarketconsumerswhenmakingpurchasedecisions?

A)appearance

B)size

C)technology

D)quality

E)service

Answer:D

Explanation:Inmostglobalmarkets,thecostandqualityofaproductareamongthemostimportantcriteriabywhichpurchasesaremade.Forconsumerandindustrialproductsalike,thereasonoftengivenforpreferringonebrandoveranotherisbetterqualityatacompetitiveprice.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-01Theimportanceofofferingaproductsuitablefortheintendedmarket.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

33)Whatarethetwodimensionsthatdefinethequalityofaproductorservice?

A)consumerchoicequalityandprocessquality

B)market-perceivedqualityandperformancequality

C)productqualityandmarketquality

D)actualqualityandassumedquality

E)absolutequalityandrelativequality

Answer:B

Explanation:Qualitycanbedefinedontwodimensions:market-perceivedqualityandperformancequality.Consumerperceptionofaproduct'squalityoftenhasmoretodowithmarket-perceivedqualitythanperformancequality.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-02Theimportanceofqualityandhowqualityisdefined.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

34)Product________isthetermusedtodescribethechangesmandatedbylocalproductandservicestandards.

A)localization

B)protectionism

C)disapprobation

D)dilution

E)homologation

Answer:E

Explanation:Aproductmayhavetochangeinanumberofwaystomeetthephysicalormandatoryrequirementsofanewmarket,rangingfromsimplepackagechangestototalredesignofthephysicalcoreproduct.Thetermusedtodescribethechangesmandatedbylocalproductandservicestandardsisproducthomologation.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

35)ExerciseAwayProductsfoundoutitneededtoshortenthelegsofitstreadmillssoldinChinaowingtotheheightoftheaverageChineseperson.Bydoingthis,ExerciseAwayProductshasachieved

A)producthomologation.

B)globalproductstandardization.

C)productdilution.

D)productobsolescence.

E)productdisapprobation.

Answer:A

Explanation:ByshorteningthelegsofitstreadmillsmanufacturedforChineseconsumers,ExerciseAwayProductshasachievedproducthomologation.Aproductmayhavetochangeinanumberofwaystomeetthephysicalormandatoryrequirementsofanewmarket,rangingfromsimplepackagechangestototalredesignofthephysicalcoreproduct;thisisknownasproducthomologation.

Difficulty:3Hard

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Apply

AACSB:KnowledgeApplication

Accessibility:KeyboardNavigation

36)AEuropeanchocolatemanufacturerreceivedseveralcomplaintsfromcustomersaboutthequalityofitsproductswhenitbegansellingtheminatropicalcountry.Thefirmhadtorepackageitschocolatebarswithanextraplasticwrappertoprotectitfromtheheatanddust.Whichfactorinthelocalmarketismostlikelytohavedictatedthecompany'sproductadaptationinthisscenario?

A)legalrequirements

B)economicrequirements

C)politicalrequirements

D)climaticrequirements

E)technologicalrequirements

Answer:D

Explanation:Byadaptingthepackagingofitsproductstoprotectthemfromextremeheatanddust,thecompanyhasbeeninfluencedbytheclimaticrequirementsofthetropicalcountry.Legal,economic,political,technological,andclimaticrequirementsofthelocalmarketplaceoftendictateproductadaptation.

Difficulty:2Medium

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Apply

AACSB:KnowledgeApplication

Accessibility:KeyboardNavigation

37)BragsterBar,abrandofenergybarsinCanada,sellsitsbarssinglyorinpacksoftwoinSouthAsianmarketsinsteadoftheirregularmultiple-itempackagingthatcontains10or20bars.WhatrequirementofthelocalmarketmostlikelyinfluencedBragsterBar'spackagingdecision?

A)legal

B)political

C)economic

D)technological

E)cultural

Answer:C

Explanation:Byreducingthenumberofunitsperpackage,BragsterBarhasadapteditsproductbasedontheeconomicrequirementsofitsSouthAsianmarket.Thelesseconomicallydevelopedamarketis,thegreaterdegreeofchangeaproductmayneedforacceptance.Tomakeapurchasemoreaffordableinlow-incomecountries,thenumberofunitsperpackagemayhavetobereducedfromthetypicalquantitiesofferedinhigh-incomecountries.

Difficulty:3Hard

Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies

LearningObjective:13-03Physical,mandatory,andculturalrequirementsforproductadaptation.

Bloom's:Apply

AACSB:KnowledgeApplication

Accessibility:KeyboardNavigation

38)DownwardDogWineshadtomarketitsproductswithadifferentnameinaforeignmarketasitwasmandatorytotranslatethenameintothelocallanguage.WhichfactorhasmostlikelyinfluencedthecompulsorychangeofDownwardDog'sproductnameintheforeignmarketinthisscenario?

A)legalrequirement

B)climaticrequirement

C)technologicalrequirement

D)monetaryrequirement

E)economicrequirement

Answer:A

Explanation:ThemandatorylawsoftheforeignmarketledDownwardDogWinestochangeitsnamethere.Legal,economic,political,technological,andclimaticrequirementsofthelocalmarketplaceoftendictateproductadaptation.

Difficulty:3Hard

T

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