Deck 16: Global Marketing and RD

Question 1

A push strategy emphasizes the use of mass media rather than personal selling.

Answer 1

False

Question 2

Differences in government-mandated product standards can rule out mass production and marketing of a standardized product.

Answer 2

True

Question 3

Markets can be segmented by geography, demography, sociocultural factors, and psychological factors.

Answer 3

True

Question 4

Determining the data sources that address a specific research problem is often complicated in international business.

Question 5

A business might find it more cost effective to use a pull strategy when entering a market with a long distribution channel.

Question 6

Dispersing research and development activities to many locations around the world allows a firm to stay close to the center of leading-edge activity to gather scientific and competitive information and to draw on local scientific resources.

Question 7

Consumers in the most developed countries are often willing to sacrifice their preferred product attributes for lower priced products.

Question 8

Price discrimination occurs when one store sells a product at full price, but another chooses to put the product on sale.

Question 9

A business that sells directly to the consumer has a short channel length.

Question 10

In terms of pricing strategies, dumping occurs whenever an international firm sells a product for a price that is less than the price charged by domestic producers.

Question 11

There is generally a critical link among channel length, the final selling price, and the firm's profit margin because each intermediary in a channel adds its own markup to the products.

Question 12

Relatively simple statistical techniques that describe what is contained in a dataset are known as predictive analytics.

Question 13

The best way for a company to overcome cultural barriers to communication is by developing cross-cultural literacy.

Question 14

A company might vary its marketing mix based on differences in national culture.

Question 15

Predatory pricing occurs when companies use price as a competitive weapon to drive out weaker competition.

Question 16

Predatory pricing and experience curve pricing do not violate antidumping regulations.

Question 17

A fragmented retail system is one in which a few retailers supply most of the market.

Question 18

Differences in product and technical standards between nations would be a reason a business might vary aspects of its marketing mix.

Question 19

One drawback of a longer distribution channel is that it increases selling costs when the retail sector is very fragmented.

Question 20

A disadvantage of standardized advertising is that it increases the costs of value creation by spreading the fixed costs of developing the advertisements over many countries.

Question 21

Milly, the marketing manager for Nuance Cosmetics, believes that for the company to succeed in international markets, it has to address the choices surrounding product attributes, distribution strategy, communication strategy, and pricing strategy in its targeted markets. What is Milly specifically referring to?

A) market imperfections
B) marketing mix
C) marketing intermediaries
D) marketing objectives
E) marketing plan

Question 22

Jeremy created a simple bar graph to show the most popular times of day customers come into the store. Which application of business analytics does the bar graph represent?

A) predictive
B) descriptive
C) definitive
D) prescriptive
E) directive

Question 23

Many elderly travelers find it hard to climb stairs to motel rooms that are not on the first floor. The Stay-Right Inn has catered to this specific group of customers via its motels, all of which have one floor of rooms with no stairs to climb. What did Stay-Right Inn use to identify distinct groups of consumers whose needs, wants, and purchasing behavior differ from others in important ways?

A) market penetration
B) market development
C) market segmentation
D) product development
E) diversification

Question 24

Brettson Inc. is a major player in the U.S. consumer electronics markets. It sells radios, televisions, DVD players, and a number of similar products. Its CEO believes that the company can go into international markets with the same product line that it offers in the United States. What might limit Brettson Inc.'s ability to sell a standardized product to a global market using a standardized marketing strategy?

A) modern transportation
B) networked communications technologies
C) rise of the global media phenomenon
D) development of a global culture
E) differences in product and technical standards

Question 25

Wentworth Hair Care has identified four distinct consumer groups to market their products to: teens, young adults, adult women, and adult men. What process did the company use to identify these groups?

A) research and development
B) predictive analytics
C) purchasing parity
D) market segmentation
E) customer service

Question 26

The goal of market segmentation is to

A) optimize the fit between the purchasing behavior of consumers in a given segment and the marketing mix.
B) increase participation in shared global conversations by drawing upon shared symbols that include global brands.
C) reduce cultural and economic differences which act as a barrier to the emergence of global trends.
D) standardize products, manufacturing, and the institutes of trade and commerce.
E) increase the costs of value creation and add value by better serving customer needs.

Question 27

After receiving all of the data on customer purchases and supplier inventories, Sasha's job is to build a statistical model to help identify trends in sales and product demand. Which level of business analytics does this require?

A) predictive analytics
B) directive analytics
C) definitive analytics
D) prescriptive analytics
E) descriptive analytics

Question 28

Algonquin Cosmetics noticed that while India had a population of more than 1.2 billion people, the retail market was such that more than 95 percent of retail was through stand-alone stores that were not part of a chain. In other words, if Algonquin were to enter India, they would have to sell through thousands of independent retail stores. What kind of a retail system does India have for the products that Algonquin Cosmetics is trying to sell?

A) fragmented
B) dispersed
C) isolated
D) concentrated
E) exclusive

Question 29

Viceroy Pharmaceutical decides to conduct a clinical trial on its tattoo removal cream. This trial is a ________ method for collecting data.

A) qualitative
B) prescriptive
C) descriptive
D) predictive
E) quantitative

Question 30

White Pearl Cosmetics markets skin care products for teenage girls between 16 and 19. In approaching its international markets, White Pearl believes that its target segment spans multiple countries, transcending national borders. White Pearl Cosmetics' target segment is called a(n) ________ segment.

A) intermarket
B) uniform
C) cosmopolitan
D) divergence
E) global

Question 31

Manuel included statistical information he found on the Nielsen research company website in his report. These statistics are a type of

A) primary data.
B) qualitative information.
C) secondary data.
D) descriptive analysis.
E) prescriptive analysis.

Question 32

The United States has a very concentrated retail market with a few large national chains dominating the market. What factor has contributed to greater retail concentration in a developed country like the United States?

A) local neighborhood stores
B) increased car ownership
C) retail system that encourages long channel length
D) increase in single-income households
E) increase in population density

Question 33

When analyzing the Central American market, Hudson Supply Inc. noticed that a few retailers supplied most of the market with all-cotton clothing. What kind of a retail system does this market have?

A) fragmented
B) dispersed
C) isolated
D) concentrated
E) exclusive

Question 34

Theodore Levitt's arguments concerning the globalization of world markets can be supported by which of these facts?

A) Modern transportation is facilitating a convergence of tastes and preferences among consumers in advanced countries of the world.
B) Academics feel that Levitt understates his case concerning global markets and the fall of multinational corporations.
C) Globalization, in the sense used by Levitt, is the rule in consumer goods markets and industrial markets.
D) Levitt's arguments hold true with respect to consumer goods markets but not for basic industrial products.
E) As observed by Levitt, multinational corporations do not tailor their products to suit different countries.

Question 35

While cultural differences should always be considered, which industry should be especially aware of traditions when trying to enter a foreign market?

A) clothing
B) agriculture
C) furniture
D) food
E) paper

Question 36

A nation with thousands of retail stores and only one national chain store has a ________ retail system.

A) concentrated
B) fragmented
C) focused
D) consolidated
E) exclusive

Question 37

Majestic Hats, based in Ontario, is determining how to deliver its product to consumers in England. What strategy is the company working on?

A) marketing
B) distribution
C) analytics
D) communication
E) pricing

Question 38

What trend contradicts Theodore Levitt's arguments for the globalization of world markets?

A) Consumers in most developed countries do not sacrifice preferred attributes for lower prices.
B) Tastes and preferences are becoming more cosmopolitan due to cultural convergence.
C) Similar product and technical standards across countries help a firm sell the same product worldwide.
D) The emergence of the global youth segment is evidence of market segments that transcend national borders.
E) The structure of market segments is extremely similar in various countries.

Question 39

Kendrik was frustrated that his DVD player wouldn't play a DVD he purchased while on vacation in Great Britain. When he called the manufacturer to complain, he was told that European DVDs are formatted differently and won't play on all machines. This is evidence of how ________ can place a constraint on global markets.

A) differences in technical standards
B) purchasing parity
C) cosmopolitan tastes and preferences
D) market segments that transcend national borders
E) a convergence of cultures

Question 40

Based on his article in the Harvard Business Review, Theodore Levitt would agree that

A) accustomed differences in national or regional preferences are significant in world markets.
B) the global corporation operates consistently at high relative cost.
C) technology has led to the emergence of global markets for standardized consumer products.
D) the global corporation sells different things in different ways.
E) ancient differences in national tastes or modes of doing business are reinforced.

Question 41

What is a drawback of longer distribution channels?

A) diminished product production
B) inability to enter exclusive distribution channels
C) lower selling costs in a concentrated retail sector
D) higher prices charged to consumers
E) lower aggregate markups

Question 42

What is a characteristic of channel quality?

A) The quality of retailers is variable in developed nations.
B) The quality of retailers is more variable in emerging markets and less developed nations.
C) Channel quality refers to a measure of the number of intermediaries between the manufacturer and the consumer.
D) An international business cannot establish its own distribution channel when the existing channel quality is poor.
E) The lack of a high-quality channel does not impede market entry.

Question 43

Which kind of retail systems tend to promote the growth of wholesalers to serve retailers, which lengthens distribution channels?

A) centralized
B) focused
C) concentrated
D) fragmented
E) exclusive

Question 44

One advantage of longer distribution channels is

A) decreased profit margins.
B) lower mark-ups.
C) lower product prices.
D) reduced selling costs in concentrated retail sectors.
E) greater market access.

Question 45

When determining her company's distribution strategy in the United Kingdom, Caroline of Peterson Products found that the country's retail sector was very concentrated. How should her company respond to this?

A) They should focus on contacting wholesalers.
B) They should deal directly with retailers, cutting out wholesalers.
C) They should hire a relatively large sales force to deal with the retail sector.
D) They should lengthen the channels of distribution.
E) They should promote the growth of wholesalers.

Question 46

While wines from the United States have won prizes in international blind taste tests, the perception of American wines is generally low in continental Europe, particularly France. ________ refers to the extent to which the place of manufacturing influences product evaluations.

A) Noise levels
B) Country of origin effects
C) Cultural barriers
D) Push strategies
E) Pull strategies

Question 47

What results when the retail sector is very concentrated?

A) It is more expensive for a firm to make contact with each individual retailer.
B) It makes sense for a firm to deal directly with retailers, cutting out wholesalers.
C) A relatively large sales force is required to deal with the retail sector.
D) The channels of distribution tend to be long.
E) The growth of wholesalers is promoted.

Question 48

Source effects are damaging for an international business when

A) promotional messages are used to stress the positive performance attributes of its product.
B) fewer firms compete for the attention of prospective customers in developing countries.
C) the firm's marketing strategy emphasizes personal selling rather than mass media advertising.
D) potential consumers in a target country have a bias against foreign firms.
E) international businesses deemphasize their foreign origins.

Question 49

The Indian retail market is very fragmented with many small independent stores. The distribution structure in India typically involves two levels of distributors (large regional wholesalers and smaller city-wide wholesalers). All of these lead to a long distribution channel. Homer Products is concerned about India's long distribution channel for its products. What is a drawback of longer distribution channels that could affect Homer Product's decision?

A) higher profit margins
B) inability to enter exclusive distribution channels
C) lower selling costs in a concentrated retail sector
D) lower product prices
E) greater aggregate markups

Question 50

What factor contributes to greater retail concentration in developed countries?

A) number of households owning televisions
B) number of families with two or more children
C) increase in the currency value of the country
D) number of households with refrigerators and freezers
E) decrease in per capita income

Question 51

What is the most important determinant of channel length?

A) degree to which the retail system is fragmented
B) increase in car ownership and two-income households
C) level of consolidation in the global retail industry
D) amount of difference between product or technical standards
E) level of economic development of a country

Question 52

Kim will only buy cars from Japanese automakers because she thinks cars made in the United States are of inferior quality. She has this belief even though she has never studied the ratings of cars made in the United States. What type of communication barrier does this represent?

A) cultural barrier
B) country of origin effect
C) predictive analytics
D) prescriptive analytics
E) noise levels

Question 53

The Hopper Leg Winery from California's Sonoma Valley is trying to enter the wine market in France. To the company's surprise, it found that the France wine distribution channel was difficult to access as an outsider. Based on this, the market must have a(n) ________ distribution channel.

A) exclusive
B) intensive
C) formal
D) concentrated
E) fragmented

Question 54

Cassidy, the international sales manager for Knoll Home Products, is trying to determine the channel length for Brazil, a market the company hopes to enter. What is the most important consideration she should take into account?

A) degree to which the retail system is fragmented
B) increase in car ownership and two-income households
C) level of consolidation in the global retail industry
D) amount of difference between product or technical standards
E) level of economic development of a country

Question 55

Anson Apparel's marketing message in the United States is one of apparel for the rugged man who spends most of his time outdoors. While this marketing message has worked very well for the company, it is concerned about using the same marketing message in its new market in China. What factor limits Anson Apparel's ability to use the same marketing message in both the United States and China?

A) channel exclusivity
B) channel quality
C) cultural differences
D) concentrated retail systems
E) fragmented retail systems

Question 56

The number of intermediaries between the product (or manufacturer) and the consumer is referred to as

A) channel length.
B) channel quality.
C) channel exclusivity.
D) channel fragmentation.
E) channel concentration.

Question 57

What is a critical variable that can affect a company's international communication?

A) channel length
B) market segmentation
C) import effects
D) noise levels
E) channel quality

Question 58

The sales manager for Jensen Exports is deciding on the firm's distribution strategy in several markets. He wants to find an area with a shorter channel length. Which factor is the best indicator of this?

A) entry of large discount superstores
B) firm's insistence on dealing with wholesalers instead of manufacturers
C) increased fragmentation of retail system
D) large sales force of competitor
E) smaller sales orders generated from sales calls

Question 59

While watching television, Jillian saw a commercial for a product that was "made in Taiwan." She immediately dismissed the product being advertised because the last item she bought that was made there fell apart in just two weeks. What is affecting this advertising communication?

A) source effects
B) noise levels
C) predictive analytics
D) pull strategy
E) push strategy

Question 60

Lots-of-Light Lanterns manufactures emergency lighting systems and markets them in underdeveloped countries that often lack easy access to electrical power. As the owner, LaTisha Reynolds knows that to successfully enter a foreign market, the retailers will have to be educated on how these products work. What factor is she considering?

A) channel exclusivity
B) channel quality
C) channel length
D) channel dominance
E) channel concentration

Question 61

What is an argument against standardized advertising?

A) One large effort to develop a campaign fails to produce better results than 40 or 50 smaller efforts.
B) It fails to make use of local talent available in other cultures.
C) Advertising regulations may block implementation of standardized advertising.
D) Royalties make it the most expensive form of advertising.
E) It increases the costs of value creation.

Question 62

A ________ strategy relies primarily on mass media advertising as opposed to personal selling.

A) telemarketing
B) pull
C) push
D) customized
E) point-of-purchase

Question 63

If a firm favors a push strategy, using direct selling to educate potential consumers, which of these products would it most likely sell?

A) professional services
B) food grains
C) consumer products
D) industrial products
E) standardized products

Question 64

One argument in favor of standardized advertising is that

A) consumer tastes and preferences are universal.
B) a message that works in one nation will invariably work in every other country.
C) advertising regulations always support standardized advertising.
D) many brand names are global.
E) the costs of value creation may be increased by standardized advertising.

Question 65

________ allows a firm to educate potential consumers about the features of a product.

A) Direct selling
B) Mass media advertising
C) Pull strategy
D) Standardized advertising
E) Lag strategy

Question 66

Pull strategies tend to be emphasized

A) for complex new products.
B) for consumer goods.
C) for industrial goods.
D) when distribution channels are short.
E) when few print or electronic media are available.

Question 67

In the context of barriers to international communication, ________ refers to the amount of other messages competing for a potential consumer's attention.

A) logistics
B) source effects
C) noise
D) standardized advertising
E) country of origin effects

Question 68

________ exists whenever consumers in different countries are charged different prices for the same product.

A) Penetration pricing
B) Premium pricing
C) Predatory pricing
D) Price discrimination
E) Price skimming

Question 69

Companies that use a ________ marketing strategy rely on access to advertising media.

A) personal selling
B) direct selling
C) push
D) pull
E) prescriptive

Question 70

When Happy Foods decided to enter the highly developed Italian market, it found that it competed with hundreds of brands. In terms of communication strategy, Happy Foods should remember that in a highly developed market,

A) noise is extremely high.
B) source effects are always positive.
C) country of origin effects are not applicable.
D) cultural barriers do not exist.
E) pull strategies are more important than push strategies.

Question 71

What is a drawback of a push strategy?

A) It can be expensive when the distribution channel is long.
B) It decreases interaction with consumers.
C) It does not allow consumers to be educated on the benefits of a complex product.
D) It is useful only in advanced nations where consumers are sophisticated and highly educated.
E) It can only be used to sell industrial products.

Question 72

Which communication strategy relies primarily on personal selling rather than mass media advertising?

A) prescriptive analytics
B) pull strategy
C) push strategy
D) predictive analytics
E) standardized advertising

Question 73

Marina is on vacation in Jamaica and buys a bottle of rum for about half the price she would pay for the same bottle at home. The rum isn't on sale in Jamaica but is priced lower because that's the price the market will bear. What is this an example of?

A) price discrimination
B) price skimming
C) predatory pricing
D) premium pricing
E) price fixing

Question 74

A measure of the responsiveness of demand for a product to a change in price is known as

A) the demand to price ratio.
B) purchasing power parity.
C) predatory pricing.
D) demand function of pricing.
E) price elasticity of demand.

Question 75

Arbitrage occurs when a firm

A) offers a product at low prices through discount coupons and promotions.
B) sells a product at higher prices to make a profit from relatively fewer sales.
C) imports products from a manufacturer and distributes them directly through retail outlets.
D) purchases products in a country where prices are lower and resells them in a country where prices are higher.
E) prices its products at the least cost, risking losses, in order to grab market share.

Question 76

When considering barriers to international communication, companies should be aware that

A) noise tends to increase the probability of effective communication.
B) source effects can be beneficial for an international business when potential consumers in a target country have a bias against foreign firms.
C) many international businesses try to promote positive source effects by deemphasizing their foreign origins.
D) fewer firms vie for the attention of prospective customers in developing countries, thus the noise level is lower.
E) research suggests consumers use country of origin when evaluating a product, when they have detailed knowledge of the product.

Question 77

A company would be likely to use a push strategy when

A) distribution channels are short.
B) sufficient print and electronic media are available.
C) consumers have a low level of literacy.
D) the products being sold are consumer goods.
E) professional services are being offered.

Question 78

Lisette owns a shoe store on the border of France. Due to price discrimination, she can buy Louboutin leather boots in Italy at a lower cost than purchasing them from her local French supplier, so once a month she drives to Italy and buys boots to resell at her store. What is this an example of?

A) speculation
B) arbitrage
C) dumping
D) predatory pricing
E) modeling

Question 79

What must occur for a firm to ensure profitable price discrimination?

A) The firm must sell a standardized product.
B) The firm must be able to keep its national markets separate.
C) The firm must encourage other firms and competitors to engage in arbitration.
D) Products sold by the firm must have same price elasticities of demand in different countries.
E) Products must be sold in countries where a small change in prices produces a large change in demand.

Question 80

Super Chill Ice Cream Company has a new flavor and wants to promote it to as many people as they can as quickly as possible. What kind of strategy should the company use?

A) push
B) lean
C) lag
D) pull
E) exclusive