International Business Ch 16

Refer to Table 16.1. Which element of the marketing mix addresses the question of the role of social media in getting in touch with customers? Values strategy Communication strategy Financial strategy Pricing strategy

Communication strategy

As the text relates, what three factors contribute to a greater retail concentration in developed countries?

The number of two-income households An increase in car ownership The number of households with refrigerators and freezers

True or false: For most consumer durable goods, product reliability may be a more important attribute in less developed nations.

True, Reason: Product reliability would be a more important attribute in less developed nations where fewer product choices would be available.

True or false: When creating a product development team, if possible, all members should be in the same physical location.

True. Reason: Having members in one location fosters camaraderie and facilitates communication.

True or false: A company would need to account for cultural differences in data collection when conducting international market research.

True. Reason: International market research differs from domestic research in that it would need to account for cultural differences.

Renata 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

It is ________ important to integrate R&D and marketing when dealing with international business.

more

During the management meeting, Randall explained that their recent radio advertising campaign had failed probably because consumers were hearing too many messages and theirs did not stand out. Randall is saying that _____ reduced the company's communication.

noise

Since the Industrial Revolution, product life cycles have shortened dramatically. lengthened somewhat. lengthened considerably. remained about the same.

shortened dramatically.

In developing countries, retail systems are ____ to grow.

slow

Following a month-long social media attack on German imports, German electronic manufacturers decided to implement an advertising campaign to negate the attack and reassure US consumers that German-made electronics were of the highest quality and relied on US parts to complete the product. Which international communication barrier did the German electronic manufacturers address?

source effects

The responsiveness of the quantity demanded of a good or service to a change in its price is its ______.

elasticity

The steps in the international market research process in order are

1. Defining the research objectives, including defining the research problem and setting objectives for the international market research. 2. Determining the data sources that will address specific problems and ultimately achieve the objectives. Two form of data can be used: primary and secondary data. 3. Assessing the Costs and the Benefits of the Research - often relates to the cost of collecting primary data that can address the research problem and objectives directly versus using available secondary data. 4. Collecting the Data - simply refers to gathering data via primary or secondary methods that address the research problem and objectives that the global company had established. The two mechanisms to collect data are quantitative and qualitative data collection. 5. Analyzing and Interpreting the Data- begins when the data have been collected. 6. Reporting the Research Findings - is a way to communicate the overall results of the international market research project. Such reports often include information about customers, competitors, countries, the industry, and the environment that affect how the global company develops an appropriate marketing mix for the targeted international market segment.

What are the four main differences between distribution systems? (Check all that apply.)

Channel exclusivity Retail concentration Channel length Channel quality

Understanding the scope of the research problem is a critical aspect in which step of the research process?

Defining the research objectives

Defining the research objectives in international market research includes which two steps? (Check all that apply.)

Defining the research problem Setting objectives for the research

High failure rates of new product development projects are linked to which two reasons? (Check all that apply.)

Development of technology for which demand is limited. Failure to adequately commercialize new technology.

In which type of distribution channel is it difficult for new firms to gain access to retail space?

Exclusive. Reason: This is difficult in an exclusive channel because retailers prefer to carry products of established manufacturers

True or false: Cultural differences enhance a firm's ability to use the same marketing message and selling approach worldwide.

False. Reason: Cultural differences make it more difficult to use the same marketing message and selling approach worldwide. What works well in one country may be offensive in another.

Why is it especially important to integrate R&D and marketing when involved in international business?

It may be necessary to create different versions of a product for various countries.

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

Refer to Table 16.1 Which element of the marketing mix addresses the question of whether customers have similar product needs across international markets segments?

Product strategy

What are three attributes of a bottle of shampoo? (Check all that apply.)

Scent Texture Bottle size

What are three arguments in support of global advertising? (Check all that apply.)

Significant economic advantages Many brand names are global One large advertising effort will produce better results

What is an argument in favor of standardized advertising?

Standardized advertising lowers the cost of value creation by spreading the costs of ad development over many countries.

While Connor's company had been selling die-cutting machinery in the United States for many years, the company decided to create a personal sales force in Italy when it began selling to that country so the sales force could educate potential buyers about the products. The sales force demonstrates the idea of _____. When introducing a complex product in a developing nation, most companies would use a ______ in order to educate consumers on the attributes of the product. In many advanced nations outside the US, 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.

a push strategy

What are four examples of communication channels a company can use?

advertising sales promotion social media direct selling

Lisbeth's company has grown quickly internationally and she needs to hire someone who can help her assess all the data of the current business operation and use it to create strategies to help the company continue to grow in the future. Lisbeth needs to hire an individual who has experience in _____.

business analytics

The knowledge, skills, and technology that allow for the exploration of a company's international business strategies to gain insight and affect future strategies is called _____. The extension of this definition is that ________ has become the preferred terminology when we talk about understanding data and help companies develop and maintain a particular customer strategy.

business analytics

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

channel length

Natalie is happy to work with the retailers that she has relationships with in London. They are able to sell and support her product line and are experts in the field. Natalie is basing her opinions on which of the following?

channel quality

The expertise, competencies, and skills of established retailers in a nation refers to ______.

channel quality

A company relies on a ______ to advise prospective customers about the attributes of a product.

communication strategy

Scientific research, demand conditions and ______ conditions all contribute to stimulating ideas for new products.

competitive

When a few retailers supply the majority of the market, it reflects a ______ retail system. In a _____ retail system, most of the market is supplied by a few retailers.

concentrated retail system.

A subset of source effects is referred to as ____________, or the extent to which the place of manufacturing influences product evaluations. Many US consumers prefer to purchase French wine because it is admired around the world. This demonstrates the idea of

country of origin effects

During her shopping trip, Raquel found a shirt she liked. 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. What is affecting Raquel's purchase decision?

country of origin effects

The replacement of the transistor by the microprocessor is an example of ______.

creative destruction

Since it was the first time his company would be selling its line of snack products in Japan, it was Mahut's job to work with a Japanese-based advertising company to make sure the company's US advertisements would be suitable for the Japanese consumer. Which variable of international communication is Mahut's company taking into account?

cultural barriers

The frozen food division of Nestlé markets fish cakes and fish fingers in Great Britain, but focuses on marketing beef bourguignon and coq au vin in France. This reflects how Nestlé is taking ______ into account when selling products in each country.

cultural differences

A(n) ______ strategy, created by the management of a manufacturing business, specifies how the firm intends to transfer its products to intermediaries, retailers and end consumers.

distribution strategy

Marshall Marine delivers its products to retail stores which then sells the products to consumers. In this scenario, delivering products to the retail stores represents the company's _____ strategy.

distribution strategy

When Margo learned that the inventory levels were still at 90%, she instructed the sales team to sell the product 35% lower than production costs to bring the inventory down to acceptable levels. This demonstrates the idea of _____. Occurs when a firm sells a product for a price that is less than the cost of producing it. When a firm sells a product for less than production cost, the company is implementing the practice known as ______.

dumping

Members of a product development team should be comprised of individuals from

each key function in the company.

Shiver Refrigerators Inc. manufacturers a line of refrigerators with no extra features like an ice-maker or a deli drawer. These units are sold in less developed nations where a consumer has less income to spend on a high-end appliance.This scenario demonstrates how _____ can influence consumer behavior.

economic development

When a small change in price produces a large change in demand for a product, then demand is said to be ______. Jessica's company recently lowered the cost of their footwear line and suddenly the demand for products increased dramatically. In this situation, demand would be considered

elastic

Morah's company is trying to gain access to shelf space in several upscale department stores for its new line of skin care products. However, it is very difficult to get the stores to carry the skin care line because they prefer to carry products from established manufacturers. What type of distribution channel is preventing the company from gaining access to shelf space?

exclusive distribution channel

A proliferation of retailers in a given market would be found in a ______ retail system.

fragmented retail system

Corinne 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. This is an example of a ______ retail system.

fragmented retail system

Levitt promoted the idea that the success of companies like McDonald's and Coca-Cola that sell essentially the same products everywhere reflects the

globalization of markets and brands.

In highly-developed countries, the noise level is typically ______ compared to less-developed countries.

high

Problems with cost-effectively manufacturing a new product is one reason for the ______ rate of new product development failure.

high

______ demand occurs when a major price change results in only a small change in demand for a product. Fine Point Inc. lowered the price of their pens drastically, but only saw a small increase in sales. This is an example of ______ demand.

inelastic

When all other factors are equal, what two conditions foster a greater rate of new-product development in a country? intense competition weak demand less money spent on R&D affluent consumers

intense competition affluent consumers

The systematic collection, recording, analysis, and interpretation of data to provide knowledge for decision-making in a company is the definition of _______.

international market research

A tool companies use when trying to identify distinct groups of consumers whose purchasing behaviors differ from that of other consumers.

market segmentation

Rasheed's report outlined that consumers living on the West Coast had purchased 80% more of the company's line of "green" products as compared to consumers living in the southeastern part of the country. His report identifying specific groups is an example of

market segmentation.

Ryan's department is responsible for assessing the distribution and pricing strategies for the company's main product lines. This department is responsible for two elements of the ______.

marketing mix

The set of choices the firm offers to its targeted markets

marketing mix

Jose's company decided to implement a push strategy for its new line of health care products. Based on this, what strategy will the company most likely use?

personal selling

John's Mattresses is now selling its products in Spain. It has priced its line of mattresses very low in the hopes that it will drive away weaker competitors. This is an example of _______. The use of price as a competitive weapon to drive weaker competitors out of a national market or create barriers to entry for potential new competitors.. Once the competitors have left the market, the firm can raise prices and enjoy high profits.

predatory pricing

After the company lowered the cost of its men's suits, sales increased by 30%. This demonstrates the concept of Demand is said to be elastic when a small change in price produces a large change in demand; it is said to be inelastic when a large change in price produces only a small change in demand.

price elasticity of demand.

In many countries, you would find advertisements for tobacco and alcohol only in ______ due to federal laws.

print media

According to the text, a(n) ______ can be viewed as a cluster of attributes.

product

The four elements that constitute a firm's marketing mix

product attributes (product) distribution strategy (place) communication strategy (promotion) pricing strategy (price)

For most companies, there is a critical link among channel length, the final selling price, and the company's

profit margin

What is the most important aspect of cultural differences that companies need to recognize when marketing to another country?

tradition

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. The company believes that once consumers in London start demanding the product, intermediaries will want to carry the product. This is an example of a ______ strategy. 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

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. He knows it would be impossible to reach every consumer with a personal sales call. He recognizes that his company should use a ______ communication strategy. When a company sells consumer goods, such as shampoo and lotion, it would be common for the company to use a

pull communication strategy

depends more on mass media advertising to communicate the marketing message to potential consumers

pull strategy

emphasizes personal selling rather than mass media advertising in the promotional mix. Although effective as a promotional tool, it requires intensive use of a sales force and is relatively costly

push strategy

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

Data that has been previously collected by organizations, people, or agencies for purposes other than specifically addressing the research problem and objectives at hand is called

secondary data

FairWay Fitness Inc. does not have the budget to research the European market it would like to sell to so it relies on data it receives from online reports and government documents. What type of data is this company using for information?

secondary data

Jim's shoe company manufactures shoes and sells them directly to the consumer. In this situation, the channel length can be described as

short

When a consumer reads an advertisement and evaluates the content of the ad on the basis of the image of the company that placed the ad, he or she is being influenced by ________. ______ occur when the receiver of the message (the potential consumer in this case) evaluates the message on the basis of status or image of the sender.

source effects.

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 standards

While no longer an area of concern now that most people stream music, originally DVD equipment made in the US would not play DVDs recorded on equipment made in Germany. This shows how _____ can influence consumer behavior.

technical standards

Theodore Levitt believed that _____ was driving the world toward a converging commonalty.

technology