Deck 16: International Marketing

Question 1

Which element of the marketing mix includes devising ways to enhance the desirability of the product or service to potential buyers?

A) product
B) pricing
C) promotion
D) place

Answer 1

C

Question 2

Which approach to international marketing is the easiest for a firm to adopt?

A) ethnocentric approach
B) polycentric approach
C) geocentric approach
D) transnational approach

Answer 2

A

Question 3

When adopting a(n) ________ approach, a firm applies the domestic marketing mix abroad.

A) ethnocentric
B) polycentric
C) geocentric
D) multidomestic

Answer 3

A

Question 4

Organix Foods, a U.S. firm, is expanding its operations overseas. Executives at the firm plan to take a polycentric approach to international marketing. Which of the following actions will Organix most likely take?

A) using the same marketing mix in domestic and foreign markets
B) customizing the marketing mix for each foreign market
C) standardizing the marketing mix and product
D) developing a bilingual marketing mix

Question 5

Marketers at Divine Design assume that customers will pay a higher price for a product that exactly meets their needs than a product that does not. Which approach to international marketing is most likely used by Divine Design?

A) ethnocentric
B) polycentric
C) geocentric
D) transnational

Question 6

________ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

A) Strategy
B) Marketing
C) Production
D) Management

Question 7

Which approach to international marketing is the most expensive to adopt?

A) ethnocentric approach
B) polycentric approach
C) geocentric approach
D) multidomestic approach

Question 8

What is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges across national boundaries that satisfy individual and organizational objectives?

A) globalization
B) international marketing
C) organizational design
D) international management

Question 9

Which element of the marketing mix includes the development of policies that bring in revenue and strategically shape the competitive environment?

A) product
B) pricing
C) promotion
D) place

Question 10

What is the function of pricing in the marketing mix?

A) assessing customer needs and values
B) developing policies that generate revenue
C) increasing the desirability of the product to buyers
D) transporting products to customers quickly and inexpensively

Question 11

In the international marketing mix, the place element focuses on ________.

A) revenue policies
B) advertising and product image
C) transportation and distribution
D) location of manufacturing operations

Question 12

Promotion primarily involves ________.

A) developing tangible and intangible features that meet customer needs in diverse markets
B) developing policies that generate revenue and strategically shape the competitive environment
C) devising ways to enhance the desirability of the product to potential buyers
D) getting products to customers via transportation and merchandising

Question 13

Maddox Home Goods is based in Illinois but has plans to target the housewares market in Europe. Maddox executives believe that the firm's successful U.S. marketing strategy will work equally well in the European market. Maddox most likely has a(n) ________ approach to international marketing.

A) ethnocentric
B) polycentric
C) geocentric
D) multidomestic

Question 14

SMH directs its marketing efforts on selling an inexpensive line of watches to young, fashion-oriented customers. What business strategy is SMH pursuing?

A) focus
B) cost leadership
C) differentiation
D) related diversification

Question 15

Which of the following is one the key issues facing international marketing managers?

A) how to finance the firm's product
B) how to design the firm's product
C) how to select the firm's employees
D) how to sell the firm's product

Question 16

Product ________.

A) involves the development of tangible and intangible features that meet customer needs in diverse markets
B) involves the development of policies that bring in revenue and strategically shape the competitive environment
C) involves devising ways to enhance the desirability of the product to potential buyers
D) gets products and services into the hands of customers via transportation and merchandising

Question 17

Marketing managers at Computex concentrate their promotional efforts on advertising the low price of their computer components. What business strategy is Computex supporting?

A) focus
B) cost leadership
C) differentiation
D) related diversification

Question 18

Which element of the marketing mix includes the development of the tangible and intangible features that meet customer needs in diverse markets?

A) product
B) pricing
C) promotion
D) place

Question 19

Marketing managers at Unique Home Furnishings strive to develop products, pricing strategies, promotional strategies, and distribution tactics that set the firm's products apart from those of competitors in the eyes of customers. Unique Home Furnishings has cultivated an image of perceived quality and fashion that allows the firm to charge prices higher than most furniture businesses. What is the overall business strategy of Unique Home Furnishings?

A) focus
B) cost leadership
C) differentiation
D) related diversification

Question 20

Firms that view themselves as multidomestic are more likely to adopt a(n) ________ approach to international marketing.

A) ethnocentric
B) polycentric
C) geocentric
D) transnational

Question 21

Which of the following is asserted by advocates of standardization?

A) customizing products is essential for high profits
B) customers in developed countries are similar
C) emerging economies are competitive
D) differentiation indicates bias

Question 22

A firm that follows an ethnocentric approach to marketing standardizes the marketing mix based on the ________.

A) needs of customers around the world
B) ability of the firm to transport goods
C) needs of home country customers
D) ability of the firm to customize

Question 23

Digitex, an MNE, customizes its marketing mix in each market that the firm enters to meet the idiosyncratic needs of customers in different foreign markets. Which approach does Digitex most likely use?

A) ethnocentric
B) geocentric
C) polycentric
D) neocentric

Question 24

Standardization implies that power and control should be centralized.

Question 25

It is important for a firm to adopt an international marketing strategy that supports the firm's overall business strategy.

Question 26

Most firms avoid both complete standardization and complete customization.

Question 27

Which approach to marketing allows the firm to provide essentially the same product or service in different markets and to use essentially the same marketing approach globally?

A) polycentric
B) geocentric
C) multidomestic
D) transnational

Question 28

What organizational characteristic is suggested by the standardization approach to international marketing?

A) centralized
B) decentralized
C) global product design
D) global area design

Question 29

Timex and Rolex both follow a differentiation strategy.

Question 30

Which of the following is a disadvantage of customized international marketing?

A) creates inefficiencies in R&D
B) ignores different conditions of product use
C) inhibits local marketing initiatives
D) ignores differences in buyer behavior patterns

Question 31

Which of the following is an advantage of standardized international marketing?

A) reduces marketing costs
B) reflects different conditions of product use
C) facilitates decentralized control of marketing
D) prevents economies of scale in production

Question 32

A decentralized firm can more easily standardize its marketing mix than a centralized one.

Question 33

The geocentric approach calls for customization of the international marketing mix.

Question 34

The ethnocentric approach to standardization versus customization is the most difficult to achieve.

Question 35

Both the ethnocentric and geocentric approaches to international marketing advocate the concept of ________.

A) codetermination
B) standardization
C) customization
D) differentiation

Question 36

What advantage does a firm that standardizes its international marketing mix achieve?

A) market share
B) niche revenues
C) economies of scale
D) economies of scope

Question 37

Standardization allows the firm to develop cost efficiencies in manufacturing, distribution, and promotion while customization allows a firm to tailor the marketing mix to meet customer needs.

Question 38

The marketing mix involves a firm's product, price, promotion, and place.

Question 39

International marketing activities should not integrate with the firm's functional strategies.

Question 40

Customized international marketing creates efficiencies in research and development and production.

Question 41

Sometimes legal or cultural factors force a firm to alter the brand names under which it sells its products.

Question 42

Which of the following is a tangible component of a product?

A) image
B) installation
C) warranty
D) packaging

Question 43

Industrialized products are more likely to be customized than consumer products.

Question 44

In a brief essay, discuss how differentiation strategies and cost leadership strategies affect international marketing decisions. Provide examples of firms that use both strategies.

Question 45

What are the three pricing policies used by international firms? What international marketing approaches are typically associated with each pricing policy?

Question 46

What are the three basic approaches in deciding whether to standardize or customize the firm's marketing mix?

Question 47

Why is the polycentric approach more costly for the firm?

Question 48

Economic factors can affect how a firm sells it product.

Question 49

Carver Foods is an MNE that sells baby food around the world. What product component will most likely be standardized by Carver in all foreign markets?

A) labeling
B) ingredients
C) brand name
D) container size

Question 50

What is marketing? What factors are unique to international marketing?

Question 51

Many firms have adopted a strategy of "think locally, act globally."

Question 52

Origin Outfitters uses a geocentric approach to international marketing. Which pricing policy does Origin Outfitters most likely use?

A) standard
B) two-tiered
C) market
D) global

Question 53

How are the ethnocentric approach and the geocentric approach alike and different in regards to the marketing mix? Why do most international firms following a geocentric approach use a standard price policy?

Question 54

What are the four basic marketing issues managers must address?

Question 55

How does culture affect an international firm's product policy? How can hiring local sales representatives help international firms overcome many cultural barriers in marketing?

Question 56

Why are synergies and coordination important in international marketing?

Question 57

What are the advantages and disadvantages of customized international marketing?

Question 58

What factors affect the degree of standardization or customization a firm adopts?

Question 59

What are some of the advantages of personal selling for an international firm?

Question 60

What are the advantages and disadvantages of standardized international marketing?

Question 61

Selling a firm's products in a foreign market for a price lower than that charged in the firm's domestic market makes the firm vulnerable to an allegation of ________.

A) predatory pricing
B) dumping
C) parallel importing
D) gray marketing

Question 62

Which product category listed below lends itself to a standard price policy?

A) commodities
B) luxury goods
C) consumer packaged goods
D) services

Question 63

A Taiwanese discount store is able to purchase and import Coke made in the United States for 27 percent less than the price of Coke made in Taiwan. This is a example of a ________.

A) black market
B) gray market
C) controlled market
D) free market

Question 64

What is the difference between standard pricing and two-tiered pricing? What are the common characteristics of firms that use each type?

Question 65

Executives at Dawson Manufacturing, an MNE, are considering the implementation of a market pricing policy. Which of the following represents the most potential risk to Dawson of this type of policy?

A) inability to assess marginal costs
B) damage to the firm's brand name
C) development of a market
D) complaints from competitors

Question 66

What is a gray market? What products are commonly influenced by gray markets? How do gray-market sales affect international firms and their distribution channels?

Question 67

Under a ________ price policy, the firm customizes its prices on a market-by-market basis to maximize its profits in each market.

A) standard
B) two-tiered
C) market
D) global

Question 68

Under the ________ price policy, firms can set higher prices where markets will tolerate them and lower prices where necessary to remain competitive.

A) standard
B) two-tiered
C) market
D) global

Question 69

Which of the following occurs when products are imported into a country legally but outside the normal channels of distribution authorized by the manufacturer?

A) gray market
B) parallel exporting
C) black market
D) price gouging

Question 70

Exchange rate fluctuations contribute to challenges in pricing.

Question 71

Why is it especially difficult for MNCs to develop pricing strategies? What factors contribute to these difficulties?

Question 72

Under a ________ price policy, the firm sets one price for all its domestic sales and a second price for all its international sales.

A) standard
B) two-tiered
C) market
D) global

Question 73

Under a ________ price policy, the firm charges the same price for its products and services regardless of where they are sold or the nationality of the customer.

A) standard
B) two-tiered
C) market
D) global

Question 74

Firms that use two-tiered pricing are vulnerable to charges of dumping.

Question 75

Which of the following would most likely trigger a gray market?

A) a firm has large price differences among different markets
B) a firm prices its products almost equally in all markets
C) products are illegal in one market but legal in another
D) products are closely regulated by the government

Question 76

Which term best describes the market pricing policy?

A) simple
B) integrated
C) complex
D) standardized

Question 77

Because of the complexities involved with two-tiered pricing, most firms that are just beginning to internationalize avoid it.

Question 78

Market pricing is the least complex pricing strategy because products are simply priced according to local market conditions.

Question 79

A firm following a geocentric approach will use a two-tiered pricing policy.

Question 80

Mazda was charged with dumping minivans in the U.S. market. What pricing policy was Mazda most likely using?

A) standard
B) two-tiered
C) market
D) global