Chapter 18
A firm that depends more on mass media advertising to communicate the marketing message to potential consumers is using a _____. A. pull strategy B. push strategy C. standardized strategy D. localized strategy
A
According to Levitt, which of the following statements is true? A. Technology drives the world toward a converging commonalty. B. There are accustomed differences in national preferences. C. The multinational corporation operates in a number of countries at low relative costs. D. The global corporation operates with resolute consistency at high relative costs.
A
Countries with _____ retail systems tend to have long channels of distribution. A. fragmented B. intermarket C. concentrated D. exclusive
A
Differences in _____ constrain the globalization of markets. A. technical standards B. measurement systems C. manufacturing processes D. government regulations
A
Dumping occurs whenever a firm sells a product: A. for a price that is less than the cost of producing it. B. without paying the necessary regulatory charges. C. for a price that is higher than the market rate. D. by including a premium for the R&D activities of the firm.
A
French wine, Italian clothes, and German luxury cars all benefit from _____. A. source effects B. noise levels C. cultural preferences D. cultural differences
A
If a _____ change in a price produces a _____ change in demand, then demand is said to be elastic. A. small; large B. small; small C. large; small D. large; large
A
If a producer sells through an import agent, a wholesaler, and a retailer, then: A. a long channel exists. B. the retail system must be concentrated. C. the internet probably plays a big role in the economy. D. there is no channel.
A
In the 1960s, the Swedish vacuum manufacturer Electrolux successfully marketed vacuums in the United Kingdom with the slogan "Nothing sucks like an Electrolux". The informal United States meaning of the word 'sucks' was already well known in the United Kingdom at the time, and the company hoped the slogan, with its possible double entendre, would gain attention. When this slogan was used in the American market, it was a catastrophe. This is an example of _____. A. cultural differences B. religious differences C. source effects D. noise levels
A
The _____ industry is often thought of as one in which global standardization of the marketing mix is the norm. A. financial services B. IT C. telecommunication D. manufacturing
A
The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as _____. A. market segmentation B. market penetration C. diversification strategy D. differentiation
A
The probability of effective communications is reduced by: A. noise. B. location effects. C. country of origin effects. D. source effects.
A
The set of choices the firm offers to its targeted market is known as the ____. A. marketing mix B. marketing concept C. marketing strategy D. market promotion
A
The way a product is delivered is determined by the _____. A. firm's entry strategy B. firm's product positioning C. target market D. market segments
A
This step in international market research often relates to the cost of collecting primary data that can address the research problem and objectives directly versus using available secondary data. A. Assessing the costs and benefits of the research B. Collecting the data C. Defining the research objectives D. Determining the data sources
A
What kind of retail systems do rural India and China have? A. Fragmented B. Direct C. Indirect D. Concentrated
A
Which of the following is an argument that supports global advertising? A. Standardized advertising lowers the costs of value creation by spreading the fixed costs of developing the advertisements over many countries. B. Because of concerns about the scarcity of creative talent, some feel that smaller efforts will produce better results than one large effort to develop a campaign. C. Even though there are cultural differences between nations, a single advertising theme that is effective worldwide can be easily developed. D. Standardized advertising may be implemented even in the face of advertising regulations.
A
Which of the following statements about retail systems is true? A. One factor contributing to greater retail concentration is an increase in car ownership. B. The number of households with refrigerators leads to lesser retail concentration in developed countries. C. There is a tendency for greater retail concentration in many developing countries. D. Retail systems are very fragmented in developed countries.
A
Which of the following statements about the choice of distribution strategy is true? A. The longer a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product. B. If price is an important competitive weapon and if the firm does not want to see its profit margins squeezed, other things being equal, the firm would prefer to use a longer channel. C. The shorter a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product. D. An international business must use shorter channels in countries where the retail sector is fragmented and longer channels in countries where the retail sector is concentrated.
A
_____ occurs when an individual or business capitalizes on a price differential for a firm's product between two countries by buying the product in the country where the price is low and reselling it in the country where prices are higher. A. Arbitrage B. Strategic pricing C. Price discrimination D. Market pricing
A
_____ 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. A. Multipoint pricing B. Experience curve pricing C. Predatory pricing D. Competitive pricing
A
_____ refers to the number of intermediaries between the producer (or manufacturer) and the consumer. A. Channel length B. Channel exclusivity C. Channel quality D. Channel speed
A
A(n) _____ is one that is difficult for outsiders to access. A. concentrated retail system B. exclusive distribution channel C. private distribution channel D. fragmented retail system
B
If a marketer asks "Is the demand for the product among customers in the international market segments targeted similar to domestic demands?," what element of the marketing mix is being addressed? A. Product strategy B. Pricing strategy C. Distribution strategy D. Communication strategy
B
If market segments transcend national borders: A. the company should develop unique products for each national market. B. the company can view the global market as a single entity and pursue a global strategy. C. a localization strategy would be appropriate. D. consumers will have differing purchasing behavior in different nations.
B
In order for price discrimination to be successful: A. there must be a strong case for arbitrage. B. national markets must be kept separate. C. demand must be very elastic. D. a large change in demand must be triggered by a small change in price.
B
Many firms pursuing a(n) _____ pricing strategy on an international scale will price low worldwide in attempting to build global sales volume as rapidly as possible, even if this means taking large losses initially. A. multipoint B. experience curve C. predatory D. competitive
B
New-product development: A. rarely results in high returns. B. has a high failure rate. C. always earns enormous returns. D. has a low failure rate.
B
Other things being equal, the rate of new-product development seems to be greater in countries where: A. less money is spent on basic and applied R&D. B. consumers are affluent. C. underlying demand is weak. D. competition is mild.
B
Research has long maintained that a major factor of success for new products is the closeness of the relationship between: A. finance and marketing. B. marketing and R&D. C. finance and materials management. D. finance and R&D.
B
The "Swiss Made" label has leveraged several watch-making companies (for example, TAG Heuer) for decades now. This is an example of a ____ effect. A. linguistic B. country of origin C. noise D. cultural
B
The extent to which the place of manufacturing influences product evaluations is known as _____. A. source effects B. country of origin effects C. noise effects D. location effects
B
The most important aspect of a country's cultural differences, particularly important in foodstuffs and beverages, is the impact of _____. A. values B. traditions C. norms D. attitudes
B
The most important determinant of channel length is the degree to which a retail system is _____. A. concentrated B. fragmented C. decentralized D. globalized
B
The process of identifying distinct groups of consumers whose purchasing behavior differs from others in important ways is known as _____. A. demographic analysis B. market segmentation C. product mix D. consumer behavior analysis
B
The use of price as a competitive weapon to drive weaker competitors out of a national market is known as _____. A. Experience curve pricing B. Predatory pricing C. Competitive pricing D. Multipoint pricing
B
There is a tendency for greater retail concentration in _____. A. rural areas B. developed countries C. urban areas D. developing countries
B
When a company charges whatever the market will bear, the company is using _____. A. strategic pricing B. price discrimination C. a push strategy D. a pull strategy
B
When a company emphasizes personal selling, the company is probably using a _____. A. standardized strategy B. push strategy C. localized strategy D. pull strategy
B
Which of the following countries has a concentrated retail system? A. China B. United States C. Japan D. India
B
Which of the following statements about price discrimination is true? A. It exists whenever consumers in a country are charged different prices for the same product. B. A necessary condition for profitable price discrimination is different price elasticities of demand in different countries. C. It is the use of price as a competitive weapon to drive weaker competitors out of a national market. D. It makes economic sense to charge the same prices across countries.
B
With a concentrated retail sector: A. a relatively large sales force is required. B. the orders generated from each sales call can be large. C. there are long channels of distribution. D. it is expensive for the firm to make contact with each individual retailer.
B
A _____ is generally favored by consumer goods firms that are trying to sell to a large segment of the market. A. push strategy B. globalization strategy C. pull strategy D. localization strategy
C
A country with high car ownership, a large number of households with refrigerators, and a large number of two-income families tend to have _____. A. retail division B. retail dispersion C. retail concentration D. retail fragmentation
C
A measure of the responsiveness of demand for a product to change in price is referred to as: A. arbitrage demand. B. predatory pricing. C. price elasticity of demand. D. experience curve pricing.
C
A pull strategy should be used when: A. the firm is selling industrial products. B. the distribution channels are short. C. the distribution channels are long. D. few print or electronic media are available.
C
A(n) _____ distribution channel is one that is difficult for outsiders to access. A. selective B. intensive C. exclusive D. multi-channel
C
Consumers in highly developed countries value _____ as compared to their counterparts in less developed nations. A. product price B. product reliability C. product attributes D. product value
C
Contrary to Levitt's suggestions, consumers in the most developed countries are often: A. willing to sacrifice their preferred attributes for lower prices. B. not willing to pay more for products that have additional features customized to their tastes. C. not willing to sacrifice their preferred attributes for lower prices. D. willing to accept globally standardized products that have been developed with the lowest common denominator in mind.
C
Designing for manufacturing: A. decreases product quality. B. increases costs. C. can increase product quality. D. not only increases costs, but also lowers product quality.
C
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. A. penetration B. multipoint C. predatory D. experience curve
C
In a country where competition is limited: A. prices will be low. B. there will be low elasticity of demand. C. prices will be high. D. consumers' bargaining power rises.
C
The continuing persistence of _____ differences between nations acts as a major brake on any trend toward global consumer tastes and preferences. A. technological and industrial B. institutional and political C. cultural and economic D. GNP level and growth rate
C
The number of intermediaries between the producer and the consumer is known as the _____. A. channel quality B. marketing mix C. channel length D. experience curve
C
Tight cross-functional integration between R&D, production, and marketing can help a company to ensure that which of the following take place? A. Time to market is maximized. B. Development costs are not a consideration in developing the best product. C. New products are designed for ease of manufacture. D. Product development projects are driven by internal needs.
C
When a firm emphasizes personal selling rather than mass media advertising in the promotional mix, the firm is using a _____. A. standardized strategy B. pull strategy C. push strategy D. localized strategy
C
When the receiver of a message evaluates a message based on the status or image of the sender, _____ are said to have occurred. A. sender effects B. noise effects C. source effects D. communication effects
C
Which of the following is an example of a positive source effect? A. A 3M Post-it note B. A Dell laptop C. An Audi R8 D. An Apple iPod
C
Which of the following statements about fragmented retail systems is true? A. Countries with fragmented retail systems tend to have short channels of distribution. B. The more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer. C. Fragmented retail systems tend to promote the growth of wholesalers to serve retailers. D. When the retail sector is very fragmented, it makes sense for the firm to deal directly with retailers.
C
Which of the following statements is true? A. Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a push strategy. B. Mass communication has cost advantages for firms in consumer goods industries that are trying to sell to a large segment of the market. C. Direct selling may be the only way to reach consumers in poor nations with low literacy levels. D. Firms that sell industrial products or other complex products favor a pull strategy.
C
_____ 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. A. Product research B. Communication strategy C. International market research D. Product strategy
C
_____ 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. A. Channel exclusivity B. Channel knowledge C. Channel quality D. Channel skill
C
A _____ retail system is one in which there are many retailers, no one of which has a major share of the market. A. concentrated B. consolidated C. focused D. fragmented
D
A channel is considered to be short if the producer sells: A. through an import agent. B. through a wholesaler. C. through a retailer. D. directly to the consumer.
D
A firm may be prevented from using _____ because of advertising regulations. A. corporate advertising B. culturally significant advertising C. marketing strategies D. standardized advertising
D
A push strategy is appropriate when: A. there are many choices of electronic media. B. the firm is selling consumer goods. C. distribution channels are long. D. the firm is selling complex new products.
D
Consumers in the most developed countries are: A. typically most interested in products that have been developed with the lowest common denominator in mind. B. typically willing to sacrifice their preferred product attributes for lower prices. C. often shun prefer globally standardized products. D. often not willing to sacrifice their preferred attributes for lower prices.
D
In a concentrated retail system: A. there are many retailers who have a major share of the market. B. there are many retailers, no one of which has a major share of the market. C. a few retailers supply a small segment of the market. D. a few retailers supply most of the market.
D
The increasing pace of _____ has resulted in a dramatic shortening of product life cycles. A. manufacturing B. distribution C. market research D. technological change
D
The means a firm chooses for delivering the product to the consumer is its _____. A. communication strategy B. segmentation strategy C. product attributes D. distribution strategy
D
The need to integrate R&D and marketing to adequately commercialize new technologies poses special problems in the international business because: A. firms typically have all of their R&D centers in the home country. B. commercialization means that the same version of a new product needs to be produced for all countries. C. firms typically do not have their R&D centers in the same country as their production facilities. D. commercialization may require different versions of a new product to be produced for various countries. v
D
To overcome cultural barriers, companies should: A. develop products specifically for each market. B. focus on universal needs. C. focus only on international market segments. D. develop cross-cultural literacy.
D
When a channel is exclusive: A. the firm sells and distributes only high-end products. B. it is controlled by market leaders or by firms who have a niche market. C. the firm's products are focused only on the elite, upper class customers. D. it is often difficult for a new firm to get access to shelf space in supermarkets.
D
Which of the following is an advantage of establishing cross-functional product development teams? A. It reduces the need for collaboration within the development team. B. It helps firms reduce the status differences between employees. C. It facilitates integration between different functions in a firm. D. It helps teams reduce the conflicts within product development teams.
D
Which of the following is one of the four elements that constitute a firm's marketing mix? A. Inventory accounting B. Product reengineering C. Reverse engineering D. Distribution strategy
D
Which of the following is one of the important factors in determining the elasticity of demand for a product in a given country? A. Personal selling B. Logistics C. Operating revenue D. Income level
D
Which of the following statements about barriers to international communication is true? A. Source effects occur when the receiver of the message evaluates the message on the basis of the location of the sender. B. The best way for a firm to overcome cultural barriers is to use local input. C. Source effects and country of origin effects are always negative. D. Noise is extremely high in highly developed countries such as the United States.
D
_____ is an international market research company based in London that works with more than half of the Fortune 500 companies. A. Ipsos B. Nielsen C. NPD Group D. Kantar
D
_____ occurs whenever a firm sells a product for a price that is less than the cost of producing it. A. Resale B. Plunging C. Bootlegging D. Dumping
D
_____ pricing is the use of price as a competitive weapon to drive weaker competitors out of a national market. A. Multipoint B. Value-based C. Experience curve D. Predatory
D