BUS 280 CH 17&18 Quiz

_________ involves issues such as (1) translation of questionnaires and reports into appropriate foreign languages and (2) accounting for cultural and environmental differences in data collection.

International market research

When a company's product has a low value-to-weight ratio, the company should

produce the product in multiple locations close to major markets

A _________ strategy is generally favored by consumer goods firms that are trying to sell to a large segment of the market.

pull

Which of the following products will have low value-to-weight ratios?

refined sugar

Which of the following statements is true of the country factors that govern international business?

relative factor costs should be considered when selecting a country for production.

If a ________ change in a price produces a ______ change in demand, then demand is said to be elastic.

small; large

A firm may be prevented from using _______ because of advertising regulations.

standardized advertising

Which of the following is an argument that supports global advertising?

standardized advertising lowers the costs of value creation by spreading the fixed costs of developing the advertisements over many countries.

According to Levitt, which of the following statements is true?

technology drives the world toward a converging commonalty.

Packaging is intended to achieve a set of multilayered functions, which can be grouped into (1) perform, (2) protect, and (3) inform. Which of the following is one of the functions of the "perform" group?

the ability of the product in the package to handle being transported between nodes in the global supply chain

Concentration of production is appropriate when

the product serves universal needs

Decentralization of production is appropriate when

volatility in important exchange rates is expected.

Make-or-buy decisions are decisions about

whether or not to outsource value creation activities

Which of the following countries has a concentrated retail system?

United States

Designing for manufacturing

can increase product quality

The number of intermediaries between the producer and the consumer is known as the

channel length

________ refers to the number of intermediaries between the producer (or manufacturer) and the consumer.

channel length

A channel is considered to be very short if the producer sells

directly to consumer

just-in-time inventory system

economize on inventory holding costs

The _______ industry is often thought of as one in which global standardization of the marketing mix is the norm.

financial services

The typical ________ is dedicated to the production of a family of parts or products through the use of four to six machines capable of performing various operations.

flexible machine cell

A _______ retail system is one in which there are many retailers, none of which has a major share of the market.

fragmented

Which of the following is one of the important factors in determining the elasticity of demand for a product in a given country?

income level

An advantage of engaging in in-house production of products and components is that

it enables a firm to protect the proprietary technologies that it has

Which of the following statements is true of Six Sigma?

it is a statistically based philosophy to reduce defects and boost productivity.

This is where cutting-edge production should take place, or at least be tested for implementation in other parts of the firm's production network.

lead factory

There are five strategic levels for global purchasing that can be undertaken by a global company. At which level do companies engage in global purchasing activities that are integrated across worldwide locations and functional groups?

level V

Deming argued that to keep pace with changes in the workplace

management should train employees in new skills

The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as

market segmentation

The term ______ has been coined to describe the ability of companies to use flexible manufacturing technology to reconcile the goals of low cost and product personalization.

mass customization

________ implies that a firm may be able to customize its product range to suit the needs of different customer groups without bearing a significant cost penalty.

mass customization

In order for price discrimination to be successful,

national markets must be kept separate.

Tight cross-functional integration between R&D, production, and marketing can help a company to ensure that which of the following takes place?

new products are designed for ease of manufacture.

Which of the following statements about barriers to international communication is true?

noise is extremely high in highly developed countries such as the United States.

Consumers in the most developed countries are

often not willing to sacrifice their preferred attributes for lower prices

________ is often placed near a competitor's headquarters or main operations, near the most demanding customers, or near key suppliers of unique and critically important parts.

outpost factory

Which of the following products will most likely have high value-to-weight ratios?

pharmaceuticals

Drober Consulting is a large software service provider. The company has the largest market share in the industry. In order to restrain the smaller competitors in the market, the company sells some of its products at very low prices. This is an example of _____ pricing.

predatory

Packaging, which comes in all shapes, sizes, forms, and uses, can be divided into three different types

primary, secondary, and transit

With ________ system, suppliers, shippers, and the purchasing firm can communicate with each other with no time delay.

EDI