Back to Topic 1.6 — Multinational companies (MNCs)

1.6.3BM SL30 flashcards

Marketing products versus services globally

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Card 1 of 301.6.3

Question

Why are products usually easier to standardise globally than services?

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All 30 Flashcards — Marketing products versus services globally

Card 1example

Question

Why are products usually easier to standardise globally than services?

Answer

Products are tangible and can be produced centrally and shipped worldwide with more consistent quality.

💡 Hint

Goods travel; services happen locally.

Card 2example

Question

Give one example of a service that must adapt to local laws.

Answer

Banking/insurance services must comply with local regulations and consumer protection rules.

💡 Hint

Services are regulation-heavy.

Card 3definition

Question

Define standardisation in global marketing.

Answer

Using the same product and marketing strategy across all countries.

💡 Hint

Same everywhere.

Card 4example

Question

Give one real-world example of glocalisation.

Answer

A fast-food chain keeps the same logo and core menu globally but adapts some items to local tastes (e.g. vegetarian options).

💡 Hint

Core same, details local.

Card 5example

Question

Standardisation is usually ______ and keeps a consistent global brand image.

Answer

Cheaper.

💡 Hint

One campaign costs less.

Card 6example

Question

Products are easier to standardise; services often need more ______.

Answer

Local adaptation.

💡 Hint

Services are local.

Card 7example

Question

Adaptation improves local fit but is usually more ______.

Answer

Expensive.

💡 Hint

More versions = higher cost.

Card 8example

Question

Standardisation usually improves economies of scale and brand ______.

Answer

Consistency.

💡 Hint

Same brand worldwide.

Card 9example

Question

Why are services harder to standardise across countries?

Answer

Service delivery depends on people, processes, and local culture/laws, so quality and expectations vary by market.

💡 Hint

People + culture matter.

Card 10example

Question

Give one advantage of standardisation.

Answer

Lower costs because one product design and one marketing campaign can be used globally.

💡 Hint

Economies of scale.

Card 11example

Question

Give one factor that pushes a firm toward adaptation.

Answer

Legal requirements such as labels, ingredients rules, or safety standards that vary by country.

💡 Hint

Law forces change.

Card 12example

Question

Why do “people” matter more for services than products?

Answer

Service quality depends on staff behaviour and skills, so training and culture shape customer experience.

💡 Hint

People deliver the service.

Card 13example

Question

How can local purchasing power affect global marketing strategy?

Answer

Prices and product versions may need adaptation to match what customers can afford in each market.

💡 Hint

Income levels change pricing.

Card 14example

Question

Most MNCs use ______: standardise the core, adapt the details.

Answer

Glocalisation.

💡 Hint

Mix strategy.

Card 15example

Question

Give one reason services often must be delivered locally.

Answer

You cannot store or ship most services (e.g. haircuts, hotel rooms), so they are produced and consumed in the same place.

💡 Hint

Inseparable delivery.

Card 16definition

Question

Define adaptation in global marketing.

Answer

Modifying the product and/or marketing to suit each local market.

💡 Hint

Change for local needs.

Card 17definition

Question

What is “physical evidence” in services marketing?

Answer

The tangible cues that signal quality (e.g. store design, uniforms, cleanliness, website/app design).

💡 Hint

Signals build trust.

Card 18example

Question

Adaptation helps with cultural fit and legal ______.

Answer

Compliance.

💡 Hint

Fit the rules.

Card 19example

Question

Why might strong local competitors push a firm toward adaptation?

Answer

Local rivals may already match customer preferences, so the MNC must adapt to compete effectively.

💡 Hint

Competition drives localisation.

Card 20example

Question

Why is “process” critical for global service consistency?

Answer

Standardised processes reduce variability and help deliver the same experience across locations.

💡 Hint

Process = consistency.

Card 21example

Question

Give one advantage of adaptation.

Answer

Better fit with local tastes, culture, and legal requirements, increasing acceptance and sales.

💡 Hint

Local fit increases demand.

Card 22example

Question

Glocalisation is best described as a ______ strategy.

Answer

Hybrid.

💡 Hint

Mix of both.

Card 23example

Question

Services rely heavily on the extended marketing mix, especially people, process and ______.

Answer

Physical evidence.

💡 Hint

Tangible cues build trust.

Card 24example

Question

Which marketing mix is especially important for services and why?

Answer

The extended marketing mix (7Ps) because people, process and physical evidence strongly affect service quality and trust.

💡 Hint

Services rely on 7Ps.

Card 25example

Question

Exam rule: Global marketing answers should mention legal, cultural, economic and ______ factors.

Answer

Competitive.

💡 Hint

Competition shapes strategy.

Card 26definition

Question

What is glocalisation?

Answer

Standardising the core brand/product while adapting specific elements for local markets.

💡 Hint

Mix of both.

Card 27example

Question

Exam tip: What is a common mistake in global services answers?

Answer

Only discussing product standardisation and ignoring people/process/physical evidence and local delivery constraints.

💡 Hint

Do not treat services like products.

Card 28example

Question

What’s the fastest way to structure an evaluation of standardisation vs adaptation?

Answer

Compare pros/cons, then choose one with a justification linked to the market conditions in the case.

💡 Hint

Pros/cons + case link.

Card 29example

Question

Exam skill: How do you evaluate standardisation vs adaptation?

Answer

Compare costs and brand consistency (standardisation) against local fit and compliance (adaptation), then justify the best choice for the case.

💡 Hint

Trade-off + case context.

Card 30example

Question

Exam skill: What should you consider first in a global marketing answer?

Answer

Whether the firm sells products, services, or both, because it changes standardisation, delivery and marketing decisions.

💡 Hint

Start with product vs service.

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Topic 1.6 hub

Multinational companies (MNCs)

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