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WorksheetsChapter 13 : Products and Services for Consumers
Total questions: 100
Worksheet time: 2hrs 0mins
Global competition has put more power in the hands of the seller
TRUE
FALSE
The cost and quality of the product are among the most important criteria by which purchases are made.
TRUE
FALSE
Consumer perceptions of a quality product often have more to do with market-perceived quality than performance quality.
TRUE
FALSE
When there are alternative products in a market, all of which meet performance quality standards, the product chosen is the one that meets market-perceived quality attributes.
TRUE
FALSE
The decision to standardize or adapt a product is less important in delivering quality than price.
TRUE
FALSE
The term product homogenization is used to describe the changes mandated by local product and service standards.
TRUE
FALSE
Green marketing is the term frequently used to identify a marketer's efforts to reduce its dependency on U.S. dollars as the standard for international exchange.
TRUE
FALSE
The European Commission (EC) mandate requires a product to be evaluated on all significant environmental effects throughout its life cycle, from manufacturing to disposal.
TRUE
FALSE
An important first step in adapting a product to a foreign market is to determine the cost-benefit as perceived by the intended market.
TRUE
FALSE
Adaptation of the nonphysical features of a product should be avoided when adapting the product to a new culture.
TRUE
FALSE
From a sociological point of view, any idea perceived as new by a group of people is an innovation.
TRUE
FALSE
According to Everett Rogers, the element of time differentiates elements in the diffusion of new ideas from other types of communication research.
TRUE
FALSE
One of the three variables that affect the rate of diffusion of a product is the perceived attributes of product innovation.
TRUE
FALSE
One variable that affects the rate of diffusion of a product is the actual attributes of the innovation.
TRUE
FALSE
In general, the rate of diffusion of a product is negatively related to its relative advantage.
TRUE
FALSE
Product diffusion or acceptance is more rapid when product perceptions are similar to current cultural values.
TRUE
FALSE
The packaging component of the Product Component Model consists of the physical product—the platform that contains the essential technology—and all its design and functional features.
TRUE
FALSE
One of the core components in the Product Component Model is the product platform.
TRUE
FALSE
According to the Product Component Model, the instructions for using the product and the warranty of the product are included under the packaging component.
TRUE
FALSE
One of the consistencies that marketers can look forward to when marketing products abroad is that almost all labeling laws worldwide are essentially the same.
TRUE
FALSE
In countries with low literacy rates, the pictures and symbols on products are taken literally as instructions and information.
TRUE
FALSE
The support services component of the product component model contains such items as repair and maintenance and availability of spare parts.
TRUE
FALSE
Services such as insurance and dry cleaning typically are classified as tangible.
TRUE
FALSE
Services are distinguished from products on the basis of their durability, homogeneity, and separability.
TRUE
FALSE
The majority of services enter foreign markets by licensing, franchising, or direct investment
TRUE
FALSE
Cultural barriers play a bigger role in services than in merchandise trade.
TRUE
FALSE
In the context of global marketing, a product's country of origin does not affect its brand's image significantly.
TRUE
FALSE
Brand image is at the very core of business identity and strategy.
TRUE
FALSE
Products from developing countries have the highest quality image.
TRUE
FALSE
Effective advertising and proper positioning of products can help brands to improve a less-than-positive country stereotype.
TRUE
FALSE
What impact has global competition had on business activities in the international marketplace?
It has shifted the focus from a consumer's market to a seller's market.
It has increased product life cycles.
It has put more power in the hands of the customer.
It has reduced the competitive spirit of most businesses in a marketplace.
It has limited the choices of the consumers.
What is one of the top two criteria for global market consumers when making purchase decisions?
appearance
size
technology
quality
service
What are the two dimensions that define the quality of a product or service?
consumer choice quality and process quality
market-perceived quality and performance quality
product quality and market quality
actual quality and assumed quality
absolute quality and relative quality
Product ________ is the term used to describe the changes mandated by local product and service standards.
localization
protectionism
disapprobation
dilution
homologation
Exercise Away Products found out it needed to shorten the legs of its treadmills sold in China owing to the height of the average Chinese person. By doing this, Exercise Away Products has achieved
product homologation.
global product standardization.
product dilution.
product obsolescence.
product disapprobation.
A European chocolate manufacturer received several complaints from customers about the quality of its products when it began selling them in a tropical country. The firm had to repackage its chocolate bars with an extra plastic wrapper to protect it from the heat and dust. Which factor in the local market is most likely to have dictated the company's product adaptation in this scenario?
legal requirements
economic requirements
political requirements
climatic requirements
technological requirements
Bragster Bar, a brand of energy bars in Canada, sells its bars singly or in packs of two in South Asian markets instead of their regular multiple-item packaging that contains 10 or 20 bars. What requirement of the local market most likely influenced Bragster Bar's packaging decision?
legal
political
economic
technological
cultural
Downward Dog Wines had to market its products with a different name in a foreign market as it was mandatory to translate the name into the local language. Which factor has most likely influenced the compulsory change of Downward Dog's product name in the foreign market in this scenario?
legal requirement
climatic requirement
technological requirement
monetary requirement
economic requirement
A U.S. cosmetics company had to increase the SPF value of its sunscreen lotions marketed in the Middle East to provide more protection against UV radiation. Which requirement dictated the product adaptation?
legal
cultural
economic
climatic
political
A television manufacturer in South Korea had to simplify its televisions before introducing them to the Nigerian markets, as the country lacked the skills to repair the product in case of a malfunction. The local salesforce also did not have the sufficient knowledge about the installation of the product. The requirement that is influencing product adaptation in this scenario is
legal
climatic
political
cultural
technological
) A women's clothing company based in Singapore had to modify its clothes before introducing them in Iran, as it needed to meet the needs of the women who are generally expected to cover themselves completely as per societal norms. To adapt its clothes to Iranian markets, the company used opaque material and provided accessories like scarves. Which requirement has dictated the product adaptation?
legal
cultural
technological
economic
climatic
What is the definition of green marketing?
It refers to word-of-mouth marketing, where a company develops customers who become voluntary advocates of a product.
It refers to inbound marketing used on websites in the form of a banner, text, or graphic.
It refers to the type of marketing that takes place on the Internet, where all the marketing resources and assets are transferred online.
It is used to identify concerns with the environmental consequences of a variety of marketing activities.
It refers to nontraditional or stealth marketing campaigns.
PG Autos introduces a new technology in its cars to improve their mileage and reduce carbon emissions. It also takes measures to improve its production facilities in order to reduce its carbon footprint. Actual introduction of green measures to meet the government guidelines rather than just through advertising and marketing shows that PG Autos engages in ________ marketing.
permission
recycle
green
black
greenwash
Which country or group of countries has been at the forefront of the "green movement"?
The United States
Japan
Europe
OPEC countries
NAFTA countries
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
the prevalence of similar environmental standards across different member countries.
consumer demand for environmentally friendly products.
higher government subsidies for greener technologies
the continuous availability of alternative energy resources for production.
the proven efficient management of inventory of conventional energy products.
What is a physical attribute of a motorcycle that is essential for its primary function?
color
price
mobility
design
popularity
An important first step in adapting a product to a foreign market is to determine the
degree of newness of the product as perceived by the intended market.
personal ethics of individuals in the target market.
regional political parties present in the domestic market.
language problem of the intended market.
product's compliancy to irrational beliefs of its potential foreign consumers
From a sociological viewpoint, any idea perceived as new by a group of people is considered as
a creation
an adaptation
a declension
a tradition
an innovation
Innovation spreads by the process of
diffusion
filtering
dissolution
flighting
liquidation
According to Everett Rogers, the goals of the diffusion researcher and the marketer are to shorten the time lag between
the dispatch of the product from the company and the time it takes to reach the customer.
the time that a budget is determined and the time needed for the funds to reach the communication channels.
initial investment and the profits obtained from those investments.
introduction of an idea or product and its widespread adoption.
introduction of an idea or product and when revisions can be made.
What is one of the extraneous variables that affects the rate of diffusion of an object?
the absolute marginal value of the innovation relative to the old
the actual attributes of the innovation
the climatic conditions in which the market is located
the method used to communicate the idea
the degree of actual novelty of the innovation
Phineas is comparing the innovation characteristics of his company's water filters with those that are already being marketed in the local market. He believes there is lot of potential for his filters as they are functionally more advanced, have a longer life, and can also be marketed at a more competitive price than those of other sellers in the local market. The innovation characteristic of Phineas's product that will help in wide acceptance of his product in the local market is its
compatibility
complexity
trialability
relative advantage
observability
In terms of innovation characteristics, a product is said to be compatible if
it provides greater value to the manufacturers than to the consumers.
the degree of social repercussions associated with it is high.
its benefits can be communicated easily.
it has a higher degree of complexity compared with its counterparts'.
it complies with the accepted behavior, values, and norms of the local market.
) Karyn, who is interested in marketing her company's diet products in Asia, studies the acceptable behavior, norms, and values in Asian markets as they relate to her product. In other words, Karyn is studying her product's ________ in the Asian markets.
observability
compatibility
dissidence
trialability
complexity
A company focusing its efforts on making its new innovation more user-friendly than before is working on the _______ of the product.
compatibility
trialability
complexity
discordancy
observability
Maya was happy that she did not have to read the instruction manual to determine how to turn on her new camera, snap a digital picture, and export the picture to her computer. The signs (symbols) on the camera body made it very clear what she was to do to achieve digital photography success. What characteristic of Maya's "new product" makes it easy for her to begin her digital experience?
high partibility
low susceptibility
low complexity
high trialability
low compatibility
An American company wants to launch a new product in Madrid. Freda asks her product manager to distribute some samples to potential customers there so that she can gauge the consumer preferences there before introducing the product. Freda is attempting to reduce the degree of economic and/or social risk, also known as ________, associated with product use.
compatibility
relative advantage
complexity
trialability
observability
A product's ________ refers to the ease with which its benefits can be communicated to the customers.
relative advantage
compatibility
complexity
trialability
observability
AllClean develops promotional materials and product demonstrations to clearly and easily communicate the benefits of its cleaning products. In this scenario, AllClean is attempting to enhance the ________ of its products.
relative advantage
compatibility
complexity
trialability
observability
In general, the rate of acceptance or resistance of the market to a product is negatively related to
relative advantage.
compatibility
trialability
complexity
observability
What factor is mainly responsible for a perceptual bias when interpreting the characteristics of a product?
too much product information
a shorter distribution channel
a market analyst's self-reference criterion
a low number of product competitors
authoritative product information of the market analyst
The success achieved by firms when they take their inventions to market is referred to as
conversion-ability.
liquidation
formation-ability.
homologation
consultation
The product platform, design features, and functional features are all found in the ________ component of the physical product according to the Product Component Model.
core
support
packaging
supplementary
auxiliary
Sarj, a specialist in product design, is responsible for a product's functional design. With respect to the Product Component Model, in which component category would Sarj's talents most likely be used?
core
support services
packaging
invisible
auxiliary
If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms to meet local differences in five different foreign markets, the component of the Product Component Model that is most likely to be under consideration is
support services.
packaging
delivery
ancillary
core
Appliances-a-Rama, an Indian company that manufactures kitchen appliances, alters the design of its ranges to suit the needs of its Japanese consumers. The Japanese prefer compact and efficient appliances to fit their small kitchens. According to the Product Component Model, which product component is being addressed?
packaging
invisible
core
ancillary
support services
When a company alters the price of its product to compete with local companies in the international market, it is focusing on the ________ component of the product, according to the Product Component Model.
core
support
design
maintenance
packaging
A Canadian computer company had difficulties when it first entered the Japanese market. Some of its computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be an insignificant problem in Canada, it was certainly a cause of concern in quality-conscious Japan. Which component of the Product Component Model should the company concentrate on to fix this problem?
core
support services
packaging
functional
design
A Brazilian food company had to change the labeling on its products to meet the specifications regarding vegetarian and nonvegetarian foods set by the government in the Taiwan market. It also had to mention the ingredients in Taiwanese to provide clarity to local customers. The component of the product that is affected is the ________ component.
support services
packaging
functionaldesign
core
Eugene bought a new watch in January, and by March it stopped keeping time accurately. The warranty was still valid, so he sent it back to the manufacturer for repair. According to the Product Component Model, this demonstrates the ________ component of the product
core
support services
packaging
functional
styling
Since the consumer is automatically angry with the manufacturer when something goes wrong with the vehicle, repair and maintenance has become a concern of the various automobile manufacturers. In which component of the Product Component Model would the management need to make improvements if problems such as this are to be solved?
core
functional
packaging
support services
price
A South Korean electronics company had to add detailed instructions about the repair and replacement of its product to make it easier for the local consumers to maintain it. Which element of the Product Component Model relates to this issue?
support services
design
core
packaging
functional
The washing machines marketed by Talcho failed in Asian markets as those countries lacked the skills necessary to repair and maintain Talcho's products. Also, the washing machine parts available in local markets were not compatible with these machines. This product failure is most likely to be a result of lack of attention by the company to the ________ component of the product.
marketing
price
packaging
support services
style
Dry cleaning, hair styling, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which characteristic of services is being referred to here?
intangibility
separability
liquidity
homogeneity
durability
Because a service is individually produced and is virtually unique, the service is said to have
liquidity
coherence.
inseparability.
heterogeneity
tangibility
Dr. Thomas is a dentist practicing in Chicago. During a four-day stretch in March, it snowed so heavily that not a single patient was able to visit him. Since none of the appointments took place, he did not make any money in those four days, even though his normal expenses remained. In this scenario, which characteristic of services most likely affected Dr. Thomas' business?
tangibility
feasibility
durability
homogeneity
perishability
A characteristic of a service is that it is ________, since it cannot be stored and must be consumed simultaneously with its creation.
durable
feasible
indelible
tangible
perishable
Levon, a hairstylist at a salon in Portland, 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
tangibility
separability
durability
heterogeneity
divisibility
What is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted?
automobile services
international tourism
banking services
research and development
education services
How do the vast majority of services enter a foreign market?
importing and exporting
smuggling and pirating
licensing, franchising, or direct investment
through brokers
through diaspora population
Which barrier faced by consumer service marketers is in force when a foreign market applies a tariff on the service that is operating there?
trade protectionism
lack of transborder data flows restrictions
protection of intellectual property
religious requirements for adaptation
language translation barriers
Blue Lobster considered opening restaurants in China. However, the restaurant's labor union felt that since accepting tips by wait staff is considered in bad taste in China, they would face considerable income loss. Therefore, they demanded to know how employees would be compensated for this since a great portion of a typical wait staff person's compensation comes in the form of tips. Which barrier does a consumer services marketer face in this illustration?
protectionism
controls on transborder data flows
protection of intellectual property
cultural requirements for adaptation
language translation barriers
An insurance firm based in California had difficulty expanding its operations to Asian markets as most of the target countries had strict regulations on sharing details about their customers with the home office. The company had to obtain approval from its customers before sharing their personal information with its U.S. office. Which barrier is most likely to have affected the services of the insurance firm?
protectionism
control on transborder data flows
protection of intellectual property
cultural requirements for adaptation
language translation barriers
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
copyright.
product mark
global brand.
brand's equity position
trademark.
A manufacturer of toiletries and cleaning products uses the name Home Helper, for most products in their international markets. The name has created a universal appeal for its products as customers identify their products with the name; hence, Home Helper can be regarded as a ________ brand.
retailer's
shelf
store
global
dual
The ________ effect refers to the possibility that the place of manufacture may affect product or brand image.
doppler
polar
transfer
misinformation
country-of-origin
A shoe manufacturer in the Philippines shipped its entire production to San Francisco and then brought it back to the Philippines to market it as "Made in the U.S." The manufacturer believed that people would prefer buying products made in the U.S. rather than those domestically produced. The factor that is influencing the perception of the customers in the given scenario is called the ________ effect.
doppler
comparative advantage
country-of-origin
mass
placebo
Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best." Which item would most likely not fit in the "best" stereotype scheme?
English tea
Indian cars
French perfume
Chinese silk
Chinese silk
In Russia, products are divided into two categories—"ours" and "imported." This is an example of
an autarky.
ethnocentrism.
theocentrism
feudalism
a closed economy.
Kroger grocery stores stock many food items that are sold under the brand name Simple Truth®, which is sold exclusively in Kroger stores. This is an example of a ________ brand.
global
private
specialty
market
retail
How has the increased presence of global competition changed business strategies in the marketplace?
Compare and contrast the two ways consumers determine a product's quality
In the context of product adaptation, what is product homologation?
In the context of product adaptation, what is product homologation?
What is green marketing? How does it affect product development?
Everett Rogers noted that four crucial elements affect the diffusion of new ideas. What are those elements?
Describe the five characteristics of an innovation that assist in determining the rate of acceptance or resistance of the market to a product.
What are the four barriers faced by consumer services marketers when they enter the global market?
Define the term global brand. How are global brands important?
Define country-of-origin effect. How can a company overcome this effect?
