Final Exam - International Marketing 480

Porter's 5 Forces

1. Number and power of company's competitive rivals 2. potential new market entrants 3. suppliers 4. customers 5. substitute products

ethnocentric pricing

Calls for the per-unit price of an item to be the same no matter the location

Setting a price for products that must be used along with a main product, such as blades for a razor and games for a video-game console.

Captive-Product Pricing

A new product that, when it is widely adopted creates new markets and new consumption patterns: a "game changer"

Discontinuous innovation

An intermediate category of newness that is somewhat disruptive and requires a moderate amount of learning on the part of consumers

Dynamically continuous innovation

Types of Pricing

Geocentric Ethnocentric (extension) Polycentric (adaptation)

Which company, according to a class discussion, used the internet as a channel for new product development, marketing strategy, and distribution?

OraBrush

Extending the home-market communications strategy while adapting the product for local use

Product Adaptation-Communication Extension

In India, consumers do not like to be locked in to long-term contracts, and Apple distributes its iPhone exclusively through stores operated by Airtel, an Indian carrier, and Vodaphone. This pricing is an example of:

Razors and blades

By using a line extension in one of its products that sounded (in Spanish) like the word for "louse/crabs," ____ sent confusing quality signals to its Wisconsin customers.

Taco Bell

A local firm typically has ___ marketing expertise, that is something a multi-national enterprise seeks in a foreign market.

country specific

The possibility of a _____ market occurs whenever price differences are greater than the cost of transportation between two markets.

gray parallel

According to the HBR article by Kelly (2015) on D2L titled "The Most Common Mistakes Companies Make With Global Marketing," One of the mistakes is: not letting ___ teams lead the way.

local

KFC's Rice Bowlz in India, KitKat Banana, and KitKat Zumba, a creamy soybean paste flavored candy by Nestle in Japan, are examples of

product adaptation

For years, Mercedes-Benz utilized a ________ pricing strategy; however, this created an opportunity for Toyota to introduce its luxury Lexus line and undercut Mercedes.

skimming

If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves, the company should use the ________ pricing strategy

skimming

The following is an example of __________ pricing strategy

skimming

In the case of razors and blades, in order to decide the optimal price in product tie-in pricing,

the profit from both razors and blades should be considered.

Mandatory adaptation can be compared to cultural imperatives, and non-mandatory adaptation can be compared to cultural electives.

true