IBUS CH 18 SB
The text presents three arguments in support of global advertising. What are those three arguments?
-One large advertising effort will produce better results -Significant economic advantages -Many brand names are global
Defining the research objectives includes which two tasks?
-Setting objectives for the research -Defining the research problem
When considering market segmentation in a foreign country, what two things should managers be aware of?
-The differences between countries in the structure of market segments. -The existence of segments that transcend national borders.
Which type of distribution channels are most likely in place when it is difficult for new firms to gain access to retail space?
Exclusive
True or false: A push strategy relies on access to advertising media.
False
Which scenario demonstrates a long distribution channel?
In Japan, it is common for a product to go through several wholesalers before arriving at a retail outlet.
segmentation refers to forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.
Intermarket
What are two benefits associated with a longer distribution channel?
It cuts selling costs when the retail sector is very fragmented. It can make it easier to access an exclusive channel.
Which two organizations are prominent in the field of international market research?
Kantar Nielsen
In which type of distribution channel is it more likely for the consumer to end up paying a higher price for the final product?
Long
Karen's boss told the marketing department that a pull strategy should be implemented to sell the new line of footwear. Which communication strategy should the department use?
Mass media advertising
Which element of the marketing mix addresses the question of whether customers have similar product
Product strategy
When viewed as a product, what are three attributes of a bottle of shampoo?
Scent Bottle size Texture
In which two situations would a company want to emphasize a push strategy?
Short distribution channels Limited amount of media
What is an accurate depiction of standardized advertising?
Standardized advertising spreads the costs of ad development over many countries thereby lowering the costs of value creation.
Which advertising campaign allows a company to capture the benefits of standardization, but still respond to local differences?
The campaign uses actors from each region where the ad is run to reflect the local population, but the actors say the same lines.
True or false: Nokia's use of a standardized slogan spoken in local languages is an example of how to capture the benefits of global standardization, yet at the same time respond to local cultures.
True
True or false: Price discrimination often occurs between different countries because it makes economic sense for a company to charge different prices.
True
A pull strategy would be emphasized in which two situations?
When distribution channels are long When selling consumer goods
Darren knows he can buy denim products in the US at a low cost and then resell them at a higher cost in Germany to make a profit. Darren is practicing ______.
arbitrage
When a business takes advantage of a price differential for a product between two countries by purchasing the product in the country where the price is lower and then selling it in the country where the prices are higher, it demonstrates the concept of ______.
arbitrage
At Clark HealthCare Systems, the amount of data the company must store has become so large that it must be stored on the Cloud and cannot be processed using traditional software. This type of data is known as ______ data.
big
Heidi's company works through an import agent to get their products to retailers throughout Europe. In this situation, there are two intermediaries between the manufacturer and the consumer. This refers to the Blank______.
channel length
Direct selling, sales promotion, direct marketing, social media, and advertising are all examples of a company's Blank______ channels.
communication
A company relies on a ______ to advise prospective customers about the attributes of a product.
communication strategy
When a few retailers supply the majority of the market, it is called a ______ retail system.
concentrated
What is required for a segment to transcend national borders?
consumers in the segment must have compelling similarities
During her shopping trip, Linda found a shirt she liked. However, she decided NOT to buy it because the tag said it was made in India, and the last time she purchased a shirt made there, it fell apart after she washed it. This demonstrates the idea of ______.
country of origin effects
Many US consumers prefer to purchase French wine because it is admired around the world. This demonstrates the idea of ______.
country of origin effects
The frozen food division of Nestle markets fish cakes and fish fingers in Great Britain but focuses on marketing boeuf bourguignon and coq au vin in France. This reflects how Nestle is taking ______ differences into account when selling products.
cultural
The first step in the international research process is to ______.
define the research objectives
Which application of business analytics refers to the use of relatively simple statistical techniques to describe what is contained in a dataset? Multiple choice question.
descriptive
After defining the research objectives, the next step in the research process is to ______.
determine the data sources
Price ______ exists when customers in different countries are charged different prices for the same product.
discrimination
The method a company chooses for delivering a product to the consumer is called the ______ strategy.
distribution
When a small change in price produces a large change in demand, then demand is said to be ______.
elastic
The price ______ of demand is a measure of the responsiveness of demand for a product to change in price.
elasticity
Jonah's company is trying to gain access to shelf space in supermarkets for its new line of crackers. However, it is very difficult to get the stores to carry the product because so many stores prefer to carry crackers from established manufacturers. Jonah's company's efforts are being hampered by a(n) ______ distribution channel.
exclusive
In a concentrated retail system, most of the market is supplied by (few or many?) retailers.
few
A proliferation of retailers in a given market would be found in a ______ retail system.
fragmented
Channel length is directly associated with the degree to which retail systems are ______.
fragmented
Sooyoung reported to the management team that since there were so many retailers supplying the product, none of them held a major share of the market. She is describing an example of a(n) Blank______ retail system.
fragmented
In highly-developed countries, the noise level related to communication is typically ______ compared to less-developed countries.
high
Critics of Levitt note that his implications apply more to basic ______ products.
industrial
Market segments that transcend national borders are more common in ______ markets.
industrial
Proto's lowered the price of their pens drastically, but only saw a small increase in sales. This is an example of (elastic or inelastic?) demand.
inelastic
A(n) ______ segment refers to a market segment that spans multiple countries, transcending national borders.
intermarket
Kevin's US-based company has decided to market its products in Europe. To do this, the company plans to implement an advertising campaign that focuses on print advertisements in popular European newspapers and magazines. Kevin's company is engaging in ______.
international communication
A fragmented retail system tends to promote the growth of wholesalers, which is more likely to ______ channels.
lengthen
In the United States, owning a computer has almost become a necessity. Based on this, it can be said that the price elasticity for computers in the United States is
low
Prescriptive analytics is defined as the use of ______.
management science methodologies to guide a company in its endeavors to best use allocable resources
Hillary is in the process of determining who buys the company product line based on the consumer's age, income, and education level. Hillary is defining the product's ______.
market segmentation
Jason's report outlined that consumers living on the west coast had purchased 80% more of the company's line of "green" products compared to consumers living in the southeastern part of the country. His report demonstrates the concept of ______.
market segmentation
Grayson's department is responsible for assessing the distribution and pricing strategies for the company's main product lines. This department is responsible for two of the elements that comprise the Blank______.
marketing mix
Grayson's department is responsible for assessing the distribution and pricing strategies for the company's main product lines. This department is responsible for two of the elements that comprise the ______.
marketing mix
A company must take into account several factors when determining whether to use a push or pull strategy. Which three factors does the text list as important considerations?
media availability product type relative to consumer sophistication channel length
Forecasts anticipate that intermarket segments will become more __ (less or more?) common in developed and emerging country markets.
more
The amount of other messages competing for a potential customer's attention is referred to as ______.
noise
Manuel's company decided to implement a push strategy for its new line of health care products. That means the company will use ______ to promote the products.
personal selling
In which aspect of strategic pricing would a company use price as a competitive weapon in order to chase weaker competition out of the market?
predatory pricing
At her job, Mallory uses advanced statistical techniques to identify and build business models that can help alert her to trends and relationships that are not readily observed by the use of descriptive analysis. Which aspect of business analytics is Mallory using in her work?
predictive analytics
What are the three core applications of business analytics?
prescriptive predictive descriptive
When consumers in Belgium are charged lower prices for no particular reason for Nike shoes than consumers in Italy, it is an example of ______.
price discrimination
In order to maintain profitable price discrimination, a company must meet two conditions: first, the company must be able to keep its national markets separate and second, it must deal with countries' different ______.
price elasticities of demand
After the company lowered the cost of the shoes, sales increased by 30%. This demonstrates the concept of ______.
price elasticity of demand
Tomas is not able to find any data on the number of households using an electric stove so he devises a survey to obtain the information. His survey results are an example of ______ data.
primary
The costs of collecting ______ data is typically higher than the cost of collecting ______ data.
primary; secondary
In many countries, you would find advertisements for tobacco and alcohol only in ______ due to federal laws.
print media
According to the text, a ______ can be viewed as a cluster of attributes.
product
For most companies, each intermediary in a channel adds its own markup to products, which creates a link among channel length, the final selling price, and the company's ______.
profit margin
Charles works for a company that makes toothpaste. He realizes that the best way to advertise the product line to the international market is through mass media advertising because it will reach more consumers and it would be impossible to reach every consumer with a personal sales call. He recognizes that his company should use a ______ communication strategy.
pull
Consumer goods industries, such as Procter & Gamble, that are trying to sell to a large segment of the market are more inclined to use a (push or pull?) strategy.
pull
Dave's Ohio-based company plans to use an advertising campaign including print ads, television ads, and billboards to promote their new product in London. Once consumers in London start demanding the product, intermediaries will want to carry the product. This is an example of a ______ strategy.
pull
What two mechanisms are used to collect data for international market research?
qualitative quantitative
Natalie is happy to work with the retailers that she has relationships with in London. They are able to sell and support her US-made product line and are experts in the field. Natalie is basing her opinions on channel ______.
quality
The expertise, competencies, and skills of established retailers in a nation and their resulting ability to sell and support products of international business refers to channel ______.
quality
Monica conducted an online survey for her company to see how many of its customers purchased their products at a brick-and-mortar store. She was using a ______ form of data collection.
quantitative
When determining how it will distribute products, a company must recognize the main differences between distribution systems: channel length, channel exclusivity, channel quality, and ______
retail concentration
What are the two types of data that can be used in market research -- both domestic and international?
secondary primary
Jim's shoe company manufactures shoes and sells them directly to the consumer. In this situation, the channel length can be described as _____
short
Channel length is typically ______ in countries where large discount superstores are introduced.
shortened
It makes the most sense for an international business to use a ______ distribution channel in countries where the retail sector is concentrated.
shorter
When a consumer reads an advertisement and evaluates the content of the ad on the basis of the image they have of the company that placed the ad, he or she is being influenced by ______.
source effects
Predatory pricing, multipoint pricing, and experience curve pricing are all aspects of ______ pricing.
strategic
After his company introduced a new line of hair dryers, Jeremy realized that the dryers could not be sold in Europe because the electrical adapters would not fit into the existing design. Jeremy's company failed to take into account ______ standards that limited globalization.
technical
DVD equipment manufactured in the US will not play DVDs recorded on equipment manufactured in Great Britain. This limits the market for selling DVDs from Great Britain in the US and shows how ______ can influence consumer behavior.
technical standards
The set of choices a firm offers to its target markets, such as the products available and the pricing of those products, is known as ______.
the marketing mix
The most important aspect of cultural differences that companies need to recognize when marketing to another country is the impact of ______.
tradition
What would be a component of international market research that is not found in domestic market research?
translation costs
If a company manufactures in the United States and only wants to sell products in the US, then which three resources can the firm sell to directly? (check all that apply)
wholesaler consumer retailer
What are the two main arguments against using standardized advertising?
Advertising regulations Cultural differences
What is the effect on channel length when a large discount superstore, such as Walmart, enters a country?
Channel length is shortened.
What are the four main differences between distribution systems?
Channel quality Retail concentration Channel exclusivity Channel length
Jan's company is reviewing how various media reach customers in Finland. Which element of the marketing mix is the company concerned with?
Communication strategy
______ may be influenced by the level of economic development of a country, resulting in different features of a product being sold to less developed nations than to developed nations, such as basic model cars sold in less developed nations.
Consumer behavior
An advertisement that ran in a French magazine showed a picture of a black woman breast-feeding a white baby. When that same ad ran in a US magazine, civil rights groups were immediately on the attack and claimed the ad promoted white racial domination. Which variable to international communication did the advertiser fail to take into account?
Cultural barriers
In today's market, international marketers of consumer goods are increasingly attracted to the global ______ segment.
teenage
Which situation incorporates market segmentation?
The marketing report detailed that more women than men were buying the company's products and most of these women had an income over $50,000.
As the text relates, the tendency for greater retail concentration in developed countries has occurred because of three factors. What are these three factors?
The number of two income households The number of households with refrigerators and freezers An increase in car ownership
The knowledge, skills, and technology that allow for the exploration and deeper investigation of a company's international business strategies and activities to gain insight and drive future strategy development and implementation is known as ______.
business analytics
What are the three variables that can jeopardize a company's international communication?
cultural barriers noise levels source effects
Which scenario demonstrates the concept of market segmentation?
At the computer company Selena works at, both low-end and high-end computers are sold to meet the different economic needs of customers.
Since it was the first time her company would be selling its line of snack products in Japan, it was Allyson's job to work with a Japan-based advertising company to make sure the company's US advertisements would be suitable for the Japanese consumer. Which variable of international communication is Allyson's company taking into account?
Cultural barriers
Understanding the scope of the research problem is a critical aspect of which step in the research process?
Defining the research objectives
True or false: It will cost a company more money to make contact with each individual retailer in a concentrated retail system.
False
True or false: When considering international market segmentation, the structure of market segments is typically similar from country to country.
False
A US company decided that the best way to sell its product line in Argentina was to create a sales force within the country since there were few trade publications to advertise in. What aspect of international business is the company working on?
Push and pull strategies
Following a month-long social media attack o
Source effects
When a company uses a (push or pull?) strategy, it emphasizes personal selling rather than mass media advertising.
push
In developing countries, retail systems are typically (quick or slow?) to grow.
slow
Programs such as LISREL, SPSS, and SAS are used in which step of the market research process?
Analyzing and interpreting the data
True or false: When conducting international research, it is advisable to include at least one native of the country being researched.
True
True or false: Consumers buying a car in a less-developed nation are more likely to be concerned with product reliability over extra features.
True
If a company chooses to use mass media advertising rather than personal selling as a communication strategy, it is engaging in a (push or pull?) strategy.
pull
In order to sell its product line in Japan, a company will need to work its way through many intermediaries before reaching the consumer. When a channel length is long like this, a company is better off using a ______ strategy for its communication.
pull
Jessica knows there is a wide array of television, magazines, and newspapers in central Europe so it will be easy for her to advertise her company's product. In other words, Jessica plans to use a (push or pull?) strategy for her communication strategy.
pull
A farm implement company that uses a sales force to educate potential buyers about its products is engaging in a (push or pull?) strategy
push
In many advanced nations, it is illegal to advertise pharmaceutical products directly to the consumer. As a result, companies must rely on direct sales efforts to doctors to educate them on a product. These companies are using a ______ strategy.
push
Paul's company sells complex products to hospitals and medical facilities. It would be best for his company to use a ______ strategy as a communications tool.
push
When introducing a complex product in a developing nation, most companies would use a ______ in order to educate consumers on the features of the product.
push strategy
Colleen's boss asked her to find data on how many households use fabric softener when washing towels. He told her he needed the information quickly and she should use the least expensive way possible to find it. Which type of data should Colleen rely on to do this task?
secondary
Since French law prohibits the use of children in product endorsements, a company would need to edit any commercials using children if it wanted to air those commercials in France. This demonstrates one of the arguments associated with ______ advertising.
standardized