Exam 4: International Business (Ch 16)

Majestic Hats, based in Ontario, is determining how to deliver its product to consumers in England. What strategy is the company working on?

distribution

A business is experiencing _________ demand when a small change in price produces a large change in demand for a product.

elastic

A company would adopt a pull strategy when it wants to:

emphasize mass media advertising

A push strategy will be used by a company that wants to:

emphasize personal selling

The Hopper Leg Winery from California's Sonoma Valley is trying to enter the wine market in France. To the company's surprise, it found that the France wine distribution channel was difficult to access as an outsider. Based on this, the market must have a(n) _________ distribution channel.

exclusive

A channel that is difficult for outsiders to access is called a(n):

exclusive channel

In terms of the communication strategy of a company, which factor favors a pull strategy?

long distribution channels

What is the first step in the international marketing research process?

defining the research objectives

What is the most important determinant of channel length?

degree to which the retail system is fragmented

Kendrik was frustrated that his DVD player wouldn't play a DVD he purchased while on vacation in Great Britain. When he called the manufacturer to complain, he was told that European DVDs are formatted differently and won't play on all machines. This is evidence of how ________ can place a constraint on global markets.

differences in technical standards

True or False: Differences in government-mandated product standards can rule out mass production and marketing of a standardized product.

True

True or False: The best way for a company to overcome cultural barriers to communication is by developing cross-cultural literacy.

True

Immediately following World War II, what country ranked the highest in spending on R&D, had affluent customers and intense competition, and, as a result, was the center of new product development?

United States

One argument against standardized advertising is:

advertising regulations may block implementation of standardized advertising

_____ occurs when an individual or business capitalizes on a price differential for a firm's product between two countries by purchasing the product in the country where prices are lower and reselling it in the country where prices are higher.

arbitrage

The number of intermediaries between the product (or manufacturer) and the consumer is referred to as:

channel length

Other things being equal, the rate of new-product development seems to be greater in countries where:

competition between firms is intense

Kim will only buy cars from Japanese automakers because she thinks cars made in the United States are of inferior quality. She has this belief even though she has never studied the ratings of cars made in the United States. What type of communication barrier does this represent?

country of origin effect

Japan, with a high population density and a large number of urban centers that grew up before the automobile, has a retail system with many small stores serving local neighborhoods and to which people frequently walk. However, none of these stores has a major share of the market. According to this information, which kind of a system does Japan have?

fragmented retail system

The Indian retail market is very fragmented with many small independent stores. The distribution structure in India typically involves two levels of distributors (large regional wholesalers and smaller city-wide wholesalers). All of these lead to a long distribution channel. Homer Products is concerned about India's long distribution channel for its products. What is a drawback of longer distribution channels that could affect Homer Product's decision?

greater aggregate markups

One advantage of longer distribution channels is:

greater market access

Demand is labeled as _________ when a large change in price produces only a small change in demand.

inelastic

What is an important attribute for a product development team to function effectively and meet all of its development milestones?

it should be led by a "heavyweight" project manager who has high status within the organization

One consequence of tight cross-functional integration between research and development (R&D), production, and marketing is:

keeping development costs in check

Sleep-Sound Company sells its products in France through an import agent, which then sells to a wholesaler. In turn, the wholesaler sells to several retailers that ultimately sell to the consumer. In this example, the amount of intermediaries between the producer and the consumer suggests that the channel is:

long

The marketing team at Kaiser Electronics decided to use Facebook to reach its millennial buyers and traditional newspaper advertising to reach baby boomers. The company would use _____ to identify these two distinct buying groups.

market segmentation

_____ refers to the choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets.

marketing mix

Theodore Levitt's arguments concerning the globalization of world markets can be supported by which of these facts?

modern transportation is facilitating a convergence of tastes and preferences among consumers in advanced countries of the world

_____ refers to the fact that a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market.

multipoint pricing

Theodore Levitt advocates for a global culture characterized by standardized tastes and global markets. What is one factor that disproves his vision?

national differences in product and technological standards

A push strategy is favorable when a company:

needs to explain complex new products

What barrier to international communication refers to the number of other messages competing for a potential consumer's attention?

noise

Geronimo Organics has had the luxury of charging high prices in the United States because there weren't any competitors for its products. Now it plans to enter the foreign market and can use profits from U.S. sales to subsidize an aggressive lower pricing policy in Europe. What type of pricing is Geronimo Organics using?

predatory pricing

At Herbal Tea Inc., a team of IT workers uses applied math to help the company budget advertising dollars across its entire market. The formulas these employees use indicate the optimal ways to allocate spending so that the company achieves maximum potential. What form of business analytics is this company using?

prescriptive

A measure of the responsiveness of demand for a product to a change in price is known as:

price elasticity of demand

Companies that use a _________ marketing strategy rely on access to advertising media.

pull

Channel _____ refers to the expertise, competencies, and skills of established retailers in a nation and their ability to sell and support the products of international businesses.

quality

Charlotte's manager asks her to create a survey for the company, which will be sent to current customers. The survey includes yes/no questions regarding the company's all-natural cosmetics product line. This survey is a _____ method for collecting data.

quantitative

While watching television, Jillian saw a commercial for a product that was "made in Taiwan." She immediately dismissed the product being advertised because the last item she bought that was made there fell apart in just two weeks. What is affecting this advertising communication?

source effects