Procter & Gamble's Introduction of All-Temperature Cheer Laundry Detergent in Japan

question 64

Multiple Choice

Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first.The problem was that Japanese women wash clothes in cold water-either tap water or leftover bath water-so they don't care about all-temperature washing (which is a big selling point in the United States) .Also,Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding.However,when Japanese housewives added lots of fabric softener to the water,Cheer didn't produce many suds (Americans don't use as much fabric softener) .P&G reformulated the product so it wouldn't be affected by fabric softeners,and ads for Cheer in Japan pledged superior cleaning in cold water,not all temperatures.Which of the following might have helped P&G avoid the initial problems with Cheer?

• A)Maslow's hierarchy
• B)high vs.low context culture
• C)diffusion of innovation
• D)self-reference criterion
• E)polycentric orientation

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Definitions:

Real GDP

Measures the value of all goods and services produced by an economy, adjusted for inflation, to reflect the actual economic output.

National Income

The total value of all goods and services produced by a country's economy over a specific period, after adjustments for income from foreign investments and payments to other countries.

Corporate Profits

The excess of revenues over expenses for corporations, indicating the financial health and performance of companies.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.