Brand and Page

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Chapter 11

Multiple Choice

1. Ikea, the Swedish furniture chain, insists that all its stores carry the basic product line with little room for adaptation to local tastes. If research of the U.S. market showed that Americans preferred larger beds than their Swedish counterparts, which of the following strategies would be advisable to Ikea?

a. standardization.
b. new product development.
c. adaptation.
d. withdraw from market.
e. lower prices to encourage attitude change.

Answer: (c) Difficulty: (1) Knowledge: (A) Page: 349

2.In the Australian market, rather than manufacturing disposable diapers, Proctor & Gamble decided to import them since the size of the market did not warrant local manufacturing according to P&G. Unfortunately, by using packaging designed for the Asian region with non-English labeling, P&G alienated its customers in Australia. This is an example of improper:

a. global policy decisions.
b. pricing decisions.
c. brand policy decisions.
d. product policy decisions.
e. company policy decisions.

Answer: (d) Difficulty: (3) Knowledge: (F) Page: 350

3. Even though other combination alternatives can be devised, companies generally can pursue three global product strategies to penetrate foreign markets. These strategies are to extend the home-grown product/communication strategies, adapt their strategy to the local marketplace, and:

a. invent new products for foreign customers.
b. concentrate on services.
c. apply for permission to copy domestic products.
d. concentrate on image adjustment.
e. focus on secondary issues (such as warranties).

Answer: (a) Difficulty: (2) Knowledge: (F) Page: 351

4. In the area of global product policy, companies can pursue three strategies to penetrate foreign markets. The strategies include:

a. extension, adaptation, and invention.
b. extension, adaptation, and prevention.
c. extension, adaptation, and creation.
d. extension, adaptation, and placement.
e. extension, adaptation, and balancing.

Answer: (a) Difficulty: (2) Knowledge: (F) Page: 351

5. Which of the following is NOT one of the strategic options available to the marketing planner, considering various product policies that could be devised for the international marketplace?

a. product and communication extension--dual extension. b. communication extension--mono extension.
c. product extension--communications adaptation.
d. product adaptation--communications extension.
e. product and communications adaptation--dual adaptation.

Answer: (b) Difficulty: (3) Knowledge: (F) Page: 351-353

6. If a company were to follow a strategy of product and communication extension (dual extension) in a foreign market, an example of a product category that would fit this strategy would be _________________________.

a. soft drinks
b. motorscooters
c. gasoline
d. clothing
e. hand-powered washing machines

Answer: (a) Difficulty: (2) Knowledge: (A) Page: 352, Exhibit 11-1

7. If a company were to follow a strategy of product adaptation-communications extension in a foreign market, an example of a product category that would fit this strategy would be __________________.

a. soft drinks
b. motorscooters
c. gasoline
d. clothing
e. hand-powered washing machines

Answer: (c) Difficulty: (3) Knowledge: (A) Page: 351, Exhibit 11-1

8. If a company were to follow a strategy of product extension-communications adaptation in a foreign market, an example of a product category that would fit this strategy would be __________________.

a. soft drinks
b. motorscooters
c. gasoline
d. clothing...
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