Multiple

Which of the following is true regarding the impact of global competition on the business

Choice

activities in the marketplace?

QuestionsA. It has shifted the focus in the marketplace from a consumers market to a sellers
Chapter 13
1.

market.
B. It has improved the financial position of domestic industries.
C. It has put more power in the hands of the customer.
D. It has shifted the focus away from the performance quality of a product.
E. It has limited the choices of the consumers.

2.

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

3.

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

4.

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

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5. Vital Health Products found out that they had to reduce the length of the tread in their treadmills
sold in China owing to the shorter legs of the average Chinese person. By doing this, Vital has
achieved product _____.
A. homologation
B. standardization
C. dilution
D. flexibility
E. repositioning

6. A European chocolate manufacturer received several complaints from customers about the
quality of its product when it began selling them in a tropical country. The firm had to re-package
its chocolate bars in an extra plastic wrapper to protect it from the heat and dust. Which of the
following factors in the local market dictated product adaptation in the current scenario?
A. Legal requirements.
B. Economic requirements.
C. Political requirements.
D. Climatic requirements.
E. Technological requirements.

7. Booster bar is a popular brand of energy bars in Canada. The company sold these bars singly or
in packs of two in the South Asian markets, instead of their regular multiple-item packaging
containing 10 or 20 bars to make it more affordable for the consumers. Which of the following
requirements of the local market is influencing product adaptation in the above scenario?
A. Legal requirements.
B. Political requirement.
C. Economical requirements.
D. Technological requirements.
E. Cultural requirements.

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8. A wine company had to market its products with a different name in a foreign market as it was
mandatory to translate the name in the local language. The factor that is influencing product
adaptation in the above scenario is _____.
A. legal requirements
B. climatic requirements
C. technological requirements
D. cultural requirements
E. economic requirements

9. Adore cosmetics had to increase the SPF value of their sunscreen lotions marketed in the Middle
East to provide more protection against UV radiation. Which of the following factors is dictating
product adaptation in the above scenario?
A. Legal requirements.
B. Cultural requirements.
C. Economic requirements.
D. Climatic requirements.
E. Political requirements.

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

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11. A clothing company in Singapore which specialized in womens clothing, had to modify its clothes
before introducing them to Iranian markets, to suit the needs of women in that country. Women in
Iran are expected to cover themselves completely. The company mostly used opaque material
and provided accessories like scarves. Which of the following factors is dictating product
adaptation in the above scenario?
A. Legal requirements.
B. Cultural requirements.
C. Technological requirements.
D. Economic requirements.
E. Climatic requirements.

12. _____ is a term used to identify concern with the environmental consequences of a variety of
marketing activities.
A. Greenhouse business
B. Hybrid business
C. Greenfield business
D. Green marketing
E. Alternative marketing

13. HT motors is introducing a new technology in its cars to improve the mileage of the cars as well
as to reduce carbon emissions. The company is also taking measures to improve its production
facilities in order to reduce its carbon footprint. These measures employed by HT motors to meet
the guidelines issued by the government shows that the company is engaging in ________.
A. permission marketing
B. value-based marketing
C. green marketing
D. cause marketing
E. greenwashing

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

15. As part of the green movement, the European Commission has passed legislation to control all
kinds of packaging waste throughout the European Union. Two critical issues that affect product
development are the control of the packaging component of solid waste and _____.
A. variations in standards across different member countries
B. consumer demand for environmentally friendly products
C. government subsidies for greener technologies
D. availability of alternative energy resources for production
E. management of existing inventory of conventional energy products
16. Which of the following is a physical attribute of a product that is essential for its primary
function?
A. Colors
B. Prices
C. Components
D. Designs
E. Sizes
17. An important first step in adapting a product to a foreign market is to determine:
A. the degree of newness as perceived by the intended market.
B. the economic climate of the target market.
C. the advertising parallels with the domestic market.
D. the ability of a sales force to sell the product.
E. the compliancy to religious doctrine(s) in the foreign country.

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18. From a sociological viewpoint, any idea perceived as new by a group of people is considered as
a(n) _____.
A. creation
B. adaptation
C. ideation
D. homologation
E. innovation
19. _____ is the process by which innovation spreads.
A. Diffusion
B. Filtering
C. Dissolution
D. Fighting
E. Cascading
20. According to Everett Rogers, the goals of the diffusion researcher and the marketer are to
shorten the time lag between:
A. the dispatch of the product from the company and the time it takes to reach the customer.
B. the time that a budget is constructed and the time needed for the funds to reach the
communication channels.
C. initial investment and the profits obtained from those investments.
D. introduction of an idea or product and its widespread adoption.
E. introduction of an idea or product and when revisions can be made.
21. According to Everett Rogers, what is the element that differentiates diffusion from other types of
communications research?
A. Breakthrough innovation
B. Communications channels
C. Time
D. Social system
E. Government system
22. Which of the following is considered to be one of the extraneous variables that affects the rate of
diffusion of an object?
A. The use of the internet in the diffusion process.
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B. The age appearance of the innovation.

C. The number of marketing personnel dedicated to diffusion.
D. The method used to communicate the idea.
E. The shelf life of the diffusion object.
23. Martin is comparing the characteristics of his companys water filters with those that are already
being marketed in the local market. He realizes that there is lot of scope for his filters as they are
functionally more advanced, have longer life, and also can be marketed at a competitive price in
these markets. The characteristic of his product that will help in wide acceptance of his product is
its _____.
A. trial ability
B. compatibility
C. observability
D. relative advantage
E. complexity
24. A product is said to be compatible if:
A. it provides greater value to the consumers compared to competitors products.
B. the risk associated with using the product is low.
C. it is user friendly.
D. it offer clear functional benefits over other products.
E. it complies with the accepted norms, values, and culture of the local market.
25. Carolyn is interested in marketing her companys diet products in Asia. She is studying the
acceptable behavior, norms, and values in Asian markets. Carolyn is studying _____.
A. relative advantage
B. compatibility
C. complexity
D. trialability
E. observability
26. A company focusing its efforts on making its new innovation more user-friendly is working on the
_____ of the product.
A. relative advantage
B. compatibility
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C. complexity
D. trialability
E. observability
27. Mark Harmon has found that using his new digital camera is a snap. He did not even have to read
the instruction manual to determine how to turn the camera on, snap a digital picture, and export
the picture to his computer. The signs (symbols) on the camera body made it very clear what he
was to do to achieve digital photography success. Which of the following characteristics of Marks
new product made it easy for him to begin his digital experience?
A. relative advantage
B. compatibility
C. complexity
D. trialability
E. observability

28. Fiona asked her product manager for samples to give to potential consumers in Madrid, her new
European market. Fiona is trying to reduce the degree of economic and/or social risk, or _____
associated with product use.
A. relative advantage
B. compatibility
C. complexity
D. trialability
E. observability

29. A products _____, refers to the ease with which its benefits can be communicated to the
customers.
A. relative advantage
B. compatibility
C. complexity
D. trialability
E. observability

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30. Ingrid is developing promotional materials and product demonstrations to easily communicate the
benefits of her cleaning products. Ingrid is trying to enhance the _____ of her products.
A. relative advantage
B. compatibility
C. complexity
D. complexity
E. observability

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

32. Which of the following factors is mainly responsible for a perceptual bias when interpreting the
characteristics of a product?
A. Poor product knowledge.
B. Noise in the communication channel.
C. Market analysts self-reference criterion.
D. Multitude of competing products.
E. Market analysts intelligence quotient.

33. The success achieved by firms when they take their inventions to market is referred to as _____.
A. conversion-ability
B. product penetration
C. diffusion
D. marketization
E. mass customization

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34. The product platform, design features, and functional features are all found in the _____
component of the product, according to the product component model.
A. core
B. support
C. packaging
D. functional
E. global
35. Simone Francis is a specialist in product design. She is responsible for a products aesthetic as
well as functional appearance. With respect to the product component model, in which of the
following component categories would Simones talents most likely be used?
A. Core component.
B. Support services component.
C. Packaging component.
D. Functional component.
E. Global component.
36. If a company wished to alter a products platform so that the product could be manufactured in a
variety of forms, to meet local differences in five different foreign markets, the _____ of the
product component model would be in consideration.
A. support services component
B. packaging component
C. functional component
D. global component
E. core component
37. Omega appliances, a Korean company that manufactures kitchen appliances had to alter the
design of its chimneys to suit the needs of the consumers in its Japanese market. The Japanese
preferred compact and efficient appliances to fit their small kitchens. The component of the
product that had to be altered in the above scenario is the _____.
A. packaging component
B. functional component
C. core component
D. technical component

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E. support services component

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

39. Apple Computer had difficulties when it first entered the Japanese market with its Macintosh
computers. Some of the computers were returned unused after customers found the wrapping on
the instruction manual damaged. Though this would probably be no big deal in the U.S., it was
certainly a cause for concern in quality-conscious Japan. To fix the problem, Apple needed to
concentrate on which of the following components of the product component model?
A. Core component.
B. Support services component.
C. Packaging component.
D. Functional component.
E. Global component.

40. Bagels foods had to change the labeling on their products to meet the specifications regarding
vegetarian and non-vegetarian foods, set by the government in the Japanese market. They also
had to mention the ingredients in Japanese to make it clear for the local customers. The
component of the product that is in focus in the above scenario is the _____.
A. support services component
B. packaging component
C. functional component
D. design component
E. core component

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41. According to the product component model, installation, repair and maintenance, deliveries, and
warranties are all part of the _____ component of the product.
A. core
B. support services
C. packaging
D. functional
E. global

42. In some countries, maintenance of automobiles is not the norm. Cars are not repaired until they
break down. Since the consumer is automatically angry with the manufacturer when something
goes wrong with the car, repair and maintenance has become a concern of the various
automobile manufacturers in this market. In which of the following components of the product
component model would the management need to make improvements if problems such as the
one above are to be solved?
A. Core component.
B. Functional component.
C. Packaging component.
D. Support services component.
E. Design component.

43. A Korean electronics company had to add detailed instructions regarding the repair and
replacement of its product to make it easy for the local consumers to maintain it. Which of the
following components of the product is being altered in the given scenario?
A. Support services component.
B. Design component.
C. Core component.
D. Packaging component.
E. Functional component.

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44. The washing machines marketed by Taichi failed in Asian markets as those countries lacked the
skills necessary to repair and maintain their products. Also, the washing machines spares
available in local markets were not compatible with these machines. This product failure was a
result of lack of attention by the company to the _____ component of the product.
A. core
B. design
C. packaging
D. support services
E. global
45. Insurance, dry cleaning, and hotel accommodations have intrinsic value resulting from a process,
a performance, or an occurrence that only exists while it is being created. Which of the following
characteristics of services best matches to the above?
A. Intangibility.
B. Inseparability.
C. Profitability.
D. Heterogeneity.
E. Perishability.
46. Because a service is individually produced and is virtually unique, the service is said to have
_____.
A. intangibility
B. inseparability
C. profitability
D. heterogeneity
E. perishability
47. Dr. Mark Townes is a dentist practicing in Denver. During a four-day stretch in March, it snowed
so heavily that not a single patient was able to visit him. Since all the appointments were missed,
he did not make any money for those four days, even though his normal expenses remained.
Which of the following characteristics of services is affecting Dr. Townes business?
A. Indivisibility
B. Inseparability
C. Profitability

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D. Heterogeneity
E. Perishability
48. A characteristic of a service is that it is _____, since it cannot be stored and must be consumed
simultaneously with its creation.
A. definite
B. separable
C. heterogeneous
D. tangible
E. perishable
49. Adam, a hairstylist at a salon in Seattle, styles his customers in various ways. His work looks
different on different people even though he has styled all of them. This unique character of a
service that is unique for every customer as it is individually produced is referred to as ______.
A. intangibility
B. inseparability
C. profitability
D. heterogeneity
E. perishability
50. Which is the largest services export of the United States, ranking behind only capital goods and
industrial supplies when all exports are counted?
A. Media and entertainment.
B. International tourism.
C. Healthcare.
D. Research and development.
E. Education services.
51. How do the vast majority of services enter a foreign market?
A. Exporting.
B. Importing.
C. Licensing, franchising, or direct investment.
D. Through brokers.
E. Through agent intermediaries.
52. Marketers of consumer services face four kinds of barriers in the global marketplace. Which of
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the following of these barriers is in force when a foreign market requires that services (such as
banking or insurance) originate within the country itself and not from outside sources?
A. Protectionism.
B. Controls on transborder data flows.
C. Protection of intellectual property.
D. Cultural requirements for adaptation.
E. Language translation barriers.
53. The Red Lobster seafood restaurant is considering opening branch operations in China.
However, the restaurant chains labor union has already pointed out a potential problem with this
expansion. In China, it is considered to be in bad taste to allow employees to collect tips for
service. Since a great portion of a typical wait-staff persons compensation comes in the form of
tips, the union would like to know how employees would be compensated for this loss. The above
example illustrates which of the following barriers a consumer services marketer faces in a
foreign market?
A. Protectionism.
B. Controls on transborder data flows.
C. Protection of intellectual property.
D. Cultural requirements for adaptation.
E. Language translation barriers.
54. Maxcare, an insurance firm based in California had difficulties expanding their operations to Asian
markets, as most of their target countries had strict regulations on transferring the details of the
customers among the different branches of the firm. The company had to obtain an approval from
its customers before sharing their personal information with their branches in other countries.
Which of the following barriers is affecting the services of the insurance firm in the above
scenario?
A. Protectionism.
B. Controls on transborder data flows.
C. Protection of intellectual property.
D. Cultural requirements for adaptation.
E. Language translation barriers.

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55. A name, term, sign, symbol, design, or combination used worldwide to identify goods or services
of one seller and to differentiate them from those of competitors is called a(n) _____.
A. trademark
B. copymark
C. global brand
D. brands equity position
E. owners mark
56. The Norton group, a manufacturer of toiletries and cleaning products uses the name Cleanex, for
most its products in all of their international markets. The name has created a universal appeal for
their products as customers identify their products with the name. Hence, Cleanex can be
regarded as a _____.
A. retailers brand
B. shelf brand
C. store brand
D. global brand
E. national brand
57. The _____ effect refers to the possibility that the place of manufacture may affect product or brand
image.
A. plus or minus
B. polar
C. transfer
D. alteration
E. country-of-origin
58. A shoe manufacturer in Puerto Ria shipped his entire production to San Francisco and brought it
back to his home country to market it as Made in the U.S. He knew that people would prefer
buying products made in the U.S. rather than those that are domestically produced. The factor
that is influencing the perception of the customers in the above scenario is called _____.
A. host country effect
B. first-mover advantage
C. country-of-origin effect
D. copycat aversion

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E. product homologation
59. Consumers have broad but somewhat vague stereotypes about specific countries and specific
product categories that they judge best. Which of the following would not fit in the best
stereotype scheme?
A. English tea
B. American chocolate
C. French perfume
D. Chinese silk
E. Jamaican rum
60. In Russia, products are divided into two categories ours and imported. This is an example
of:
A. cultural revisionism
B. ethnocentrism
C. conversion to capitalism
D. communist mentality
E. structural marketing orientation

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