Question 1

French wine growers in the Bordeaux region abandoned tradition and reformulated their wines to adapt to global tastes.

Accepted Answer

A) True 
 B)False

Question 2

Fragmentation of lead markets has led to a proliferation of product development centers.

Accepted Answer

A) True 
 B)False

Question 3

BMW had to modify its cars for the Japanese consumer to meet

Accepted Answer

A) higher quality requirements of Japanese consumers. 
B) lower quality requirements of Japanese consumers. 
C) higher quality requirements of the Japanese government. 
D) lower quality requirements of the Japanese government.

Question 4

Subjecting a new creation to a series of tests in actual use conditions in order to determine commercial feasibility is known as

Accepted Answer

A) test marketing. 
B) market testing. 
C) concept testing. 
D) quality assurance.

Question 5

Global products include a portion of the final design that is standardized and retain some flexibility to tailor the end product to the needs of individual markets.

Accepted Answer

A) True 
 B)False

Question 6

The global core of a product never exceeds 50 percent.

Accepted Answer

A) True 
 B)False

Question 7

After Proctor & Gamble introduced the detergent,Vizir,in France,the company's Spanish subsidiary employed the same strategy the company used in the French launch in the Spanish market.Proctor & Gamble's Spanish subsidiary is playing the ____ role in the company's product development process.

Accepted Answer

A) implementer 
B) contributor 
C) strategic 
D) hub and spoke

Question 8

Warranties for a product may vary country to country due to

Accepted Answer

A) local competition. 
B) the stress the product is subjected to. 
C) the technical sophistication of the market. 
D) All of the above.

Question 9

Air conditioner manufacturers for the Saudi Arabian market are forced to adapt their product due to differences in

Accepted Answer

A) state laws. 
B) infrastructure. 
C) climate. 
D) All of the above.

Question 10

A highly competent subsidiary in a market of strategic importance that is responsible for developing a new range of products to be used by the entire company is a(n)

Accepted Answer

A) lead marketer. 
B) contributor. 
C) strategic leader. 
D) implementer.

Question 11

Licensing is beneficial for firms that have few funds for research and development.

Accepted Answer

A) True 
 B)False

Question 12

Henkel,a German consumer packaged goods company,decides to produce laundry detergents whose brands and formulations are custom-tailored to each market in which it operates.Which of the following is a benefit of this decision to adapt this product line?

Accepted Answer

A) Product costs may be decreased by varying local inputs. 
B) Modified products may perform better under different use conditions. 
C) Product costs may be decreased by eliminating unnecessary product features. 
D) All of the above.

Question 13

When Ford brought its Fiesta model into the Indian market,the product design team made several product adaptations.Since many women wear saris,or long flowing dresses,in India they made the doors open wider to make it easier for them to get in and out of the car.This is an example of a(n)____ product adaptation.

Accepted Answer

A) discretionary 
B) heterogeneous 
C) mandatory 
D) modular

Question 14

Internet firms are good examples of companies that do not need to adapt products to different cultures.

Accepted Answer

A) True 
 B)False

Question 15

Changing the design of electrical gadgets so that they work with different voltages is an example of

Accepted Answer

A) discretionary adaptation. 
B) mandatory adaptation. 
C) mandatory standardization. 
D) discretionary standardization.

Question 16

The goal of a global product development team is to develop totally standardized products for all markets.

Accepted Answer

A) True 
 B)False

Question 17

The American company,Eli Lilly,spends the largest portion of its R&D monies at its US research and development facilities.From this description,it is clear that Eli Lilly pursues a(n)____ approach to research and development.

Accepted Answer

A) global 
B) traditional 
C) untraditional 
D) multidomestic

Question 18

The European Union (EU)requires that all clothing entering into the EU should include a care label informing consumer how to wash the garment.Lesotho,a small country in Southern Africa,produces basic clothing products;most of the Lesotho exporters do not include care labels in their clothing.A Lesotho clothing exporter would have to make a(n)____ product adaptation if they want to export their garments to the EU.

Accepted Answer

A) discretionary 
B) heterogeneous 
C) mandatory 
D) modular

Question 19

Proctor and Gamble's Cheer laundry detergent is typically promoted in international markets as an all-temperature detergent.But when Proctor and Gamble entered into the Japanese market,they discovered that Japanese consumers wash their clothes in cold tap water and they add fabric softeners to decrease the suds produced by detergents.Proctor and Gamble reformulated Cheer to work more effectively in cold water with fabric softeners added and changed its positioning to superior cleaning in cold water.Which of the following is a benefit of this decision to adapt the Cheer product?

Accepted Answer

A) Products may perform better under different use conditions 
B) Lower costs of manufacturing due to economies of scale 
C) Fast global product roll outs 
D) All of the above

Question 20

Many Western firms have opened research and development facilities in China.

Accepted Answer

A) True 
 B)False

Exam 10: Global Product Strategies

French wine growers in the Bordeaux region abandoned tradition and reformulated their wines to adapt to global tastes.

Fragmentation of lead markets has led to a proliferation of product development centers.

BMW had to modify its cars for the Japanese consumer to meet

Subjecting a new creation to a series of tests in actual use conditions in order to determine commercial feasibility is known as

Global products include a portion of the final design that is standardized and retain some flexibility to tailor the end product to the needs of individual markets.

The global core of a product never exceeds 50 percent.

After Proctor & Gamble introduced the detergent,Vizir,in France,the company's Spanish subsidiary employed the same strategy the company used in the French launch in the Spanish market.Proctor & Gamble's Spanish subsidiary is playing the ____ role in the company's product development process.

Warranties for a product may vary country to country due to

Air conditioner manufacturers for the Saudi Arabian market are forced to adapt their product due to differences in

A highly competent subsidiary in a market of strategic importance that is responsible for developing a new range of products to be used by the entire company is a(n)

Licensing is beneficial for firms that have few funds for research and development.

Henkel,a German consumer packaged goods company,decides to produce laundry detergents whose brands and formulations are custom-tailored to each market in which it operates.Which of the following is a benefit of this decision to adapt this product line?

Internet firms are good examples of companies that do not need to adapt products to different cultures.

Changing the design of electrical gadgets so that they work with different voltages is an example of

The goal of a global product development team is to develop totally standardized products for all markets.

The American company,Eli Lilly,spends the largest portion of its R&D monies at its US research and development facilities.From this description,it is clear that Eli Lilly pursues a(n) ____ approach to research and development.

Many Western firms have opened research and development facilities in China.