Question 1

A cell phone maker customized its cell phones for the Asian market by raising the ring volume so that phones could be heard on crowded streets. This is an example of product invention.

Accepted Answer

The answer of A cell phone maker customized its cell...

Question 2

Why is a company unlikely to set a uniform price all around the world?

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Question 3

________ are the first link between the seller and the final buyer. They move company products from points of production to the borders of countries within which they are sold.
A) Channels between nations
B) Channels within nations
C) Retail channels
D) Large-scale channels
E) Value chain channels

Accepted Answer

The answer of ________ are the first link between the...

Question 4

To overcome price escalation when selling to less-affluent consumers in developing countries, companies offer their same products at lower prices.

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Question 5

In Chinese, the KFC slogan "finger-lickin' good" came out as "eat your fingers off." And Motorola's Hello-moto ringtone sounded like "Hello, Fatty" in India. Which of the following strategies can be used to avoid such mistakes?
A) communication adaptation
B) standardized global marketing
C) straight product extension
D) product adaptation
E) communication extension

Accepted Answer

Communication adaptation involves modifying the company's communication strategy to suit the local market's language, culture, and other unique factors. This can help prevent translation errors and cultural misunderstandings. Standardized global marketing and straight product extension do not account for local differences, while product adaptation only deals with product modifications, not communication. Communication extension simply translates the message without considering cultural nuances. Therefore, the best choice is communication adaptation.

Question 6

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty, Selman & Saks would be using the market entry strategy of ________.
A) exporting
B) franchising
C) licensing
D) contract manufacturing
E) joint ownership

Accepted Answer

If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty, it would be using the market entry strategy of licensing.

Question 7

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-Selman & Saks offered the same razors and trimmers in France as in the United States. Selman & Saks is an example of a ________.
A) product adaptation
B) communication adaptation
C) product invention
D) straight product extension
E) standardized global marketing plan

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 8

Oreos are less sweet or less bitter in certain countries. This is an example of straight product extension.

Accepted Answer

The answer of Oreos are less sweet or less bitter...

Question 9

The whole-channel view recognizes that to compete internationally a company must effectively design and manage a standardized global marketing plan.

Accepted Answer

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Question 10

Changing promotions to suit local markets is known as ________.
A) straight product extension
B) ambush marketing
C) communication adaptation
D) product adaptation
E) standardized global marketing

Accepted Answer

The answer of Changing promotions to suit local markets is...

Question 11

Assume that a Gucci handbag sells for $60 in Italy and $240 in the United States because Gucci must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its factory price. This information indicates that Gucci faces a ________ problem.
A) dumping
B) tariff
C) licensing
D) product adaptation
E) price escalation

Accepted Answer

The price of the Gucci handbag escalates from $60 to $240 due to the costs of transportation, tariffs, importer margin, wholesaler margin, and retailer margin. This is an example of price escalation, where the price of a product increases as it moves through the distribution channels of different countries.

Question 12

If Audi develops a new low-priced model for entry-level consumers in Europe, it would be an example of straight product extension.

Accepted Answer

Straight product extension refers to introducing an existing product to a new market without any modifications. Developing a new low-priced model would be an example of product adaptation, as the company is making changes to an existing product to better suit a new market and consumer segment.

Question 13

Kellogg ads in the United States promote the taste and nutrition of Kellogg's cereals versus competitors' brands. In France, where consumers drink little milk and eat little for breakfast, Kellogg's ads must convince consumers that cereals are a tasty and healthful breakfast. Which marketing strategy is being followed by Kellogg?
A) straight product extension
B) product adaptation
C) product invention
D) communication adaptation
E) straight communication extension

Accepted Answer

The answer of Kellogg ads in the United States promote...

Question 14

Designing international channels that take into account the entire global supply chain and marketing channel, thus forging an effective global value delivery network, recognizes a company must have a ________.
A) whole-channel view
B) direct-distribution channel
C) large-scale channel
D) transportation network
E) retail channel

Accepted Answer

A whole-channel view means considering the entire supply chain and marketing channel for effective global value delivery network design. Direct-distribution, large-scale, transportation, and retail channels are all components of the whole-channel view, but none of them alone is sufficient for designing an effective global value delivery network.

Question 15

GigaTalk, a U.S. based computer manufacturing company, found that Japanese commuters had difficulty using standard laptops on crowded rush-hour trains because while standing, commuters cannot use their laptops. So GigaTalk created a standing computer. This computer includes a touch screen and small keyboard that can be used while standing or on the move. This is an example of ________.
A) straight product extension
B) standardized global marketing
C) product adaptation
D) dual adaptation
E) communication adaptation

Accepted Answer

GigaTalk's creation of a standing computer for Japanese commuters shows product adaptation, as they modified their existing product to better fit the needs of their target market.

Question 16

Dove body soaps are sold successfully in essentially the same form around the globe. This is an example of straight product extension.

Accepted Answer

Straight product extension means introducing the same product to a new market without making any changes to the product itself. In this case, Dove body soaps are sold successfully in the same form around the world, indicating that a straight product extension strategy has been used.

Question 17

________ consists of creating something new to meet the needs of consumers in a given country.
A) Communication adaptation
B) Joint venturing
C) Product invention
D) Straight product extension
E) Product adaptation

Accepted Answer

Product invention involves creating something new to meet the needs of consumers in a given country.

Question 18

Explain why a global company would need to make adjustments to a highly standardized promotion campaign for different markets.

Accepted Answer

The answer of Explain why a global company would need...

Question 19

The Internet is making global price differences more obvious, forcing companies toward more standardized international pricing.

Accepted Answer

With the rise of e-commerce and online shopping, consumers can easily compare prices across borders and demand more equality in pricing. This has led companies to move towards more standardized pricing instead of having large discrepancies in different markets.

Question 20

What types of products would be successful with standardized global marketing?

Accepted Answer

The answer of What types of products would be successful...

Quiz 19: The Global Marketplace

A cell phone maker customized its cell phones for the Asian market by raising the ring volume so that phones could be heard on crowded streets. This is an example of product invention.

Why is a company unlikely to set a uniform price all around the world?

________ are the first link between the seller and the final buyer. They move company products from points of production to the borders of countries within which they are sold.

To overcome price escalation when selling to less-affluent consumers in developing countries, companies offer their same products at lower prices.

In Chinese, the KFC slogan "finger-lickin' good" came out as "eat your fingers off." And Motorola's Hello-moto ringtone sounded like "Hello, Fatty" in India. Which of the following strategies can be used to avoid such mistakes?

Oreos are less sweet or less bitter in certain countries. This is an example of straight product extension.

The whole-channel view recognizes that to compete internationally a company must effectively design and manage a standardized global marketing plan.

Changing promotions to suit local markets is known as ________.

Assume that a Gucci handbag sells for $60 in Italy and $240 in the United States because Gucci must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its factory price. This information indicates that Gucci faces a ________ problem.

If Audi develops a new low-priced model for entry-level consumers in Europe, it would be an example of straight product extension.

Designing international channels that take into account the entire global supply chain and marketing channel, thus forging an effective global value delivery network, recognizes a company must have a ________.

Dove body soaps are sold successfully in essentially the same form around the globe. This is an example of straight product extension.

________ consists of creating something new to meet the needs of consumers in a given country.

Explain why a global company would need to make adjustments to a highly standardized promotion campaign for different markets.

The Internet is making global price differences more obvious, forcing companies toward more standardized international pricing.

What types of products would be successful with standardized global marketing?