IBUS 310 - Ch 16 SmartBook

When a large discount retailer enters a country, they cut out wholesalers. How does this impact the channel length?

Channel length is shortened.

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

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 U.S. 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

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 U.S. advertisements would be suitable for the Japanese consumer. Which variable of international communication is Mahut's company taking into account?

Cultural barriers

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.

Which global segment is currently becoming increasingly attractive to international marketers?

Teenagers

Which of these advertising campaigns 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.

Which situation is using 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.

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

Tradition

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

True

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

True

True or false: Nokia's use of a standardized slogan spoken in local languages in an example of how to capture the benefits of global standardization, yet at the same time responding to local cultures.

True

True or false: When conducting international research, it is advisable to include at least one native of the country being researched.

True

Which scenario demonstrates the concept of source effects in relation to international communication?

U.S. customers refuse to buy products sold out of Indonesia after that country takes two U.S. reporters hostage.

The 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.

Forecasts anticipate that intermarket segments will become ____ (less or more?) common in developed and emerging country markets.

more

It makes the most sense for an international business to use a ______ distribution channel in countries where the retail sector is concentrated.

shorter

In developing countries, retail systems are ____ (slow or quick?) to grow.

slow

Nigel works at a British advertising agency and has advised his client that it's not worth the company's money to advertise its products in China because he knows there is a strong bias against foreign firms for this particular product. This bias demonstrates how ______ can impact international marketing.

source effects

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

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

What are the four main differences between distribution systems?

-Channel quality -Retail concentration -Channel exclusivity Channel length

A company collecting information to make marketing mix decisions would collect data on what three things?

-Communication -Distribution -Pricing

What are the two main arguments against using standardized advertising?

-Cultural differences -Advertising regulations

What two main issues should a manager be aware of when considering market segmentation in a foreign country?

-Differences between countries in the structure of market segments -Existence of segments that transcend national borders

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

-Direct selling -Advertising -Social media -Sales promotion

If a product is considered a bundle of attributes, what would be two attributes of a tube of toothpaste?

-Flavor of toothpaste -Size of container

What are two benefits associated with a longer distribution channel?

-It can make it easier to access an exclusive channel. -It cuts selling costs when the retail sector is very fragmented.

What are three arguments in support of global advertising?

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

What are the four elements that make up a firm's marketing mix?

-Product attributes -Communication strategy -Pricing strategy -Distribution strategy

In which two situations would a company want to emphasize a pull strategy instead of a push strategy?

-Selling consumer goods -Extensive media available

Defining the research objectives in international market research includes which two steps?

-Setting objectives for the research -Defining the research problem

What are three critical variables that can impact a company's international communications?

-Source effects -Cultural barriers -Noise levels

A company must take into account three factors when determining whether to use a push or pull strategy, including:

-channel length. -media availability. -product type relative to consumer sophistication.

A company identifying potential market segments would collect data on what three things?

-demography -sociocultural factors -geography

The two mechanisms used to collect data are:

-qualitative. -quantitative.

Programs such as LISREL, SPSS, and SAS are used in which step of the market research process?

Analyzing and interpreting the data

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

Defining the research objectives

What is the most important determinant of channel length?

Degree of fragmentation

What is NOT a method of quantitative data collection?

Document reviews

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

Exclusive

Moriah'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

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

False

True or false: When considering international market segmentation, the structure of market segments is typically similar from country to country.

False

What is an example of a long distribution channel?

In Japan, it is common for a product to go through several wholesalers before arriving at a retail outlet.

______ demand occurs when a major price change results in only a small change in demand for a product.

Inelastic

______ segmentation refers to forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.

Intermarket

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

What term is defined as the best possible combination of product, distribution, communication, and price that a firm offers to its target markets?

Marketing mix

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

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

A U.S. company decides that the best way to sell its product line in Argentina is to create a sales force within the country since there are few trade publications to advertise in. What aspect of international business is the company determining?

Push and pull strategies

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

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 U.S. consumers that German-made electronics were of the highest quality and relied on U.S. parts to complete the product. Which international communication barrier did the German electronic manufacturers address?

Source effects

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 _____.

a push strategy

In order for a company to use a pull strategy, ______ must be available in the location the company is targeting.

advertising media

Sanjay knows he can buy denim products in the United States at a low cost and then resell them at a higher cost in Germany to make a profit. Sanjay 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 is participating in

arbitrage.

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.

As noted in the text, although American Express may sell the same basic charge card service worldwide, differences in national regulations require it to vary aspects of its ______ strategy from country to country.

communication

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

communication strategy

In a _____ retail system, most of the market is supplied by a few retailers.

concentrated

When a few retailers supply the majority of the market, it reflects a ______ retail system.

concentrated

Many U.S. 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 Nestlé sells 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

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.

The first step in the international research process is to

define the research objectives.

After defining the research objectives, the next step in the research process is to

determine the data sources.

The best way for a firm to overcome cultural barriers when marketing internationally is to

develop cross-cultural literacy and embrace local input.

When consumers in Belgium are charged lower prices for Wilson tennis shoes for no particular reason than consumers in Italy, price ______ exists.

discrimination

When customers in different locales are charged different amounts for the same product, it is called price

discrimination.

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

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

Shiver Refrigerators Inc. manufactures 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 ______.

elastic

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

fragmented

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

It will cost a company more money to make contact with each individual retailer in a _____ retail system.

fragmented

Price elasticity tends to be _____ in countries where income levels are low.

greater

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

high

When there are many companies making the same product, it results in _____ elasticity of demand.

high

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

A(n) ______ segment refers to a market segment that spans multiple countries, transcending national borders.

intermarket

Kevin's company decides to market its products in Europe. To do this, the company implements an advertising campaign that focuses on print advertisements in popular European newspapers and magazines. These advertisements help the company engage in

international communication.

A fragmented retail system tends to promote the growth of wholesalers, which is more likely to ______ channels.

lengthen

Collecting secondary data is a ____ (more or less?) costly alternative to collecting primary data.

less

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

market research

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

Rasheed's report outlined that consumers living on the West Coast had purchased 80 percent 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

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

Consumer demand for a craft beer increases after the manufacturer lowers the cost of the beer. This is an example of _____.

price elasticity

After the company lowered the cost of its men's suits, sales increased by 30 percent. This demonstrates the concept of

price elasticity of demand.

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

A(n) _____ can be viewed as a bundle of attributes.

product

For most companies, there is a critical 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. 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.

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. 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.

pull

Gabriel knows there is a wide array of television stations, magazines, and newspapers in central Europe, so it will be easy for him to advertise his company's product. Gabriel plans to use a ______ strategy for his communication strategy.

pull

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

When a company sells consumer goods, such as shampoo and lotion, it would be common for the company to use a ____ (push or pull?) strategy.

pull

In many advanced nations outside the United Stations, 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 a company sells industrial products that require a salesperson to educate potential buyers about the product, it is engaging in a ____ (push or pull?) strategy.

push

When a company uses a ____ (push or pull?) strategy, it emphasizes personal selling rather than mass media advertising.

push

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 ______ data.

secondary

Market ______ is a tool companies use when trying to identify distinct groups of consumers whose purchasing behaviors differ from that of other consumers.

segmentation

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

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

source effects.

Despite minor variations in its menu from country to country, McDonald's is usually described as a company that follows a ______ strategy in international markets.

standardized

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 against ______ advertising.

standardized

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

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

technical standards