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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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