Deck 10: Product Strategies: Basic Decisions and Product Planning

Question 1

A product, whether domestic or international, should be defined as a bundle of utilities

Answer 1

True

Question 2

In order to play it safe, a company should do test marketing in each foreign country

Answer 2

False

Question 3

Test marketing is irrelevant in countries where major media are more national than local

Answer 3

True

Question 4

Test marketing can be impractical in many countries

Question 5

The success of Japanese products in the United States can be explained in part by the Japanese firms' explicit attempt to segment the market

Question 6

If countries exhibit the lack of vertical homogeneity within their borders, it is then impossible for them to have an equivalent segment across countries

Question 7

The relationship between product adoption and divisibility is negative

Question 8

The international product life cycle theory states that a developed country that has created a certain product/technology may eventually become a net importer of that product

Question 9

The international product life cycle theory states that a developed country that has created a certain technology will first export the product and finally import it

Question 10

The theory of IPLC describes how an advanced nation becomes a victim of its own creation

Question 11

There is no evidence to support the validity of the international product life cycle

Question 12

One implication of the theory of international product life cycle is that the innovating firm should promote its product as a premium product with a high-quality image

Question 13

Outsourcing is the practice of buying parts or whole products from other manufacturers while allowing a buying firm to maintain its own brand name

Question 14

According to the international product life cycle theory, an inventor should discourage imitation by keeping its technology proprietary and not licensing it to competitors

Question 15

The innovating marketer must plan for a nonprice promotional policy at the outset of a product diffusion

Question 16

Cost minimization is often confused with profit maximization

Question 17

Cost minimization is the same thing as profit maximization

Question 18

Product standardization, while reducing production costs, may not necessarily maximize profit

Question 19

The United States has successfully adopted the metric system

Question 20

The imperial system of measurement is superior to the metric system

Question 21

The United States does not use the metric system because the metric system is inferior to the one currently used

Question 22

The International Convention on the Harmonized Commodity Description and Coding System uses the metric system for measurement

Question 23

Many international marketers intentionally modify their products in individual markets in order to discourage product movement across national borders

Question 24

A world product and a standardized product are the same thing

Question 25

Unlike a standardized product, a world product is adaptation-ready

Question 26

A product becomes a global product when it is standardized for multiple countries/markets

Question 27

A world product, in spite of its flexibility and multipurpose parts, is not necessarily more expensive than a national product

Question 28

Similar to standardized and localized products, global or world products have some inherent problems

Question 29

McDonald's, Coca-Cola, and American Express are global products because their products were originally designed with the global market in mind

Question 30

McDonald's, Coca-Cola, and American Express should be considered to be standardized products rather than global products because they are products with US origin that happen to have an international appeal by accident rather than by design

Question 31

The United States is the world's most service-oriented society

Question 32

The United States has performed poorly in the area of exports of services

Question 33

The United States has been running a trade deficit in the area of services

Question 34

Unlike their tangible products, services do not have to face trade barriers

Question 35

Unlike products, services do not require adaptation

Question 36

Unlike product that may have to be adapted for overseas markets, services are standardized and do not render themselves to adaptation

Question 37

Unlike marketers of tangible products that can choose from all foreign market entry strategies, service firms, due to the unique characteristics of services, have fewer entry options

Question 38

Foreign market entry strategies are applicable to products but not to services

Question 39

Unlike a product, a service cannot be licensed internationally

Question 40

A review of studies centering around strategy standardization/adaptation shows that these studies have yielded contradictory results