Global Mktg Quiz Part 1

Private branding is when a large distribution channel member (usually a retailer), buys from a manufacturer in bulk and puts its own name on the product. This strategy is only practical when the retailer does very high levels of volume. The advantages to the retailer are: more freedom and flexibility in pricing more control over product attributes and quality higher margins (or lower selling price) eliminates much of the manufacturer's promotional costs The advantages to the manufacturer are: reduced promotional costs stability of sales volume (at least while the contract is operative)

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 for Ikea? a. b. c. d. e.

standardization. new product development. adaptation. withdraw from market. lower prices to encourage attitude change.

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. b. c. d. e.

global policy decisions. pricing decisions. brand policy decisions. product policy decisions. company policy decisions.

What could have been done to prevent the problem. What would you do?

The primary advantage to using a standardization approach to marketing a product in the international arena is: a. minimization of costs (which can be passed on to customers). b. more profit. c. less service complaints. d. less product returns. e. standard budgets.

Which of the following would NOT be one of the five key product characteristics that contribute to its acceptance? a. b. c. d. e.

low service maintenance relative advantage compatibility complexity trialability .