Chapter 16 Questions

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

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

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

What are the four elements that make up a firm's marketing mix? (Check all that apply.)

Pricing strategy Product attributes Communication strategy Distribution strategy

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 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

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.

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

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

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

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

Since the Industrial Revolution, product life cycles have

shortened dramatically.

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

True

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 _____.

business analytics

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

each key function in the company.

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

elasticity

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

fragmented

Predatory pricing exists where a product or service is set at a very _____ (high or low?) price, intending to drive competitors out of the market, or create barriers to entry for potential new competitors.

low

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

creative destruction

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?

Communication strategy

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

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 is _____ (less or more?) important to integrate R&D and marketing when dealing with international business.

more

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

price elasticity of demand.

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

Bottle size Texture Scent

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

When all other factors are equal, what two conditions foster a greater rate of new-product development in a country?

affluent consumers intense competition

Problems with cost-effectively manufacturing a new product is one reason for the _____ (low or high?) rate of new product development

high

In order for predatory pricing to work, a firm should be

in a profitable position in another national market.

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

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

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

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

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

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

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 _____.

a push strategy

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

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 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

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

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

direct selling sales promotion social media advertising

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

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

dumping

When a firm sells a product for less than production cost, the company is implementing the practice known as ______.

dumping

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

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.

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.

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

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

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

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 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