Deck 14: Global Marketing and Randd

Question 1

A critical aspect of the ______________ function is identifying gaps in the market so that new products can be developed to fill those gaps.

A) materials management
B) finance
C) operations
D) marketing
E) R&D

Answer 1

D

Question 2

A(n)_____________ marketing strategy that views the world's consumers as similar in their tastes and preferences is consistent with the mass production of a standardized output.

A) domestic
B) multinational
C) indigenous
D) national
E) global

Answer 2

E

Question 3

In the opening case,Burberry was able to create a unified global brand by doing what?

A) acquiring partners
B) lowering prices
C) buying licensing rights back
D) none of the above are correct
E) acquiring partners and buying licensing rights back

Answer 3

E

Question 4

The four elements that constitute a firm's marketing mix include

A) product attributes, distribution strategy, communication strategy, and pricing strategy.
B) transportation strategy, warehousing strategy, availability of financing, and pricing strategy.
C) promotions strategy, pricing strategy, availability of financing, and distribution strategy.
D) product attributes, promotions strategy, communication strategy, and transportation strategy.
E) logistics mix, product and packaging mix, promotional mix, and sales and pricing mix.

Question 5

The ______________ is the set of choices the firm offers to its targeted market.

A) production mix
B) marketing mix
C) products and services mix
D) materials mix
E) promotional mix

Question 6

______________ refers to the process of identifying distinct groups of consumers whose purchasing behaviour differs from others in important ways.

A) Target marketing
B) Consumer differentiation
C) Demographic profiling
D) Customer analysis
E) Market segmentation

Question 7

Segments that transcend national borders exist in certain _____________ markets,but are rare in _____________ markets.

A) consumer; industrial
B) industrial; consumer
C) service; industrial
D) consumer; service
E) youth; adult

Question 8

According to the textbook,the most important aspect of a country's cultural differences is the impact of

A) language.
B) tradition.
C) geographic location.
D) the availability of natural resources.
E) religion.

Question 9

When markets are divided up by sex,age,income,race,or education,they are segmented by:

A) geography
B) economic factors
C) psychological factors
D) demography
E) socioeconomic

Question 10

Levitt has argued that,due to the advent of modern communications and transport technology,consumer tastes and preferences are becoming ______________,which is creating global markets for standardized consumer products.

A) individualistic
B) localized
C) cross-regional
D) global
E) uniform

Question 11

When managers in an international business consider market segmentation in foreign countries,they need to be aware of two main issues.These are:

A) the differences between countries in the structure of marketing segments, and the existence of segments that transcend national borders
B) the differences between countries in terms of tariff rates, and the differences between the countries in terms of exchange rates
C) the differences between countries in terms of barriers to entry, and the differences between countries in terms of economic stability
D) the differences between countries in terms of culture, and the differences between countries in terms of exchange rates
E) the difference between countries in terms of product standards, and the difference between countries in terms of consumer preferences

Question 12

If Sara decided the best way to divide her market is by lifestyle choices,she is using _____________ segmentation.

A) demographic
B) psychological
C) social-cultural
D) geographic
E) behavioural

Question 13

Automobile companies tend to use ________________ segmentation.

A) socioeconomic
B) geographic
C) personality
D) educational
E) demographic

Question 14

In his 1983 Harvard Business Review article,Theodore Levitt argued that due to the advent of modern communications and transport technology,consumer tastes and preferences are becoming more global,which is creating global markets for standardized consumer products.In regard to these arguments,the current consensus among academics seems to be that Levitt:

A) was exactly right
B) understated his case
C) was way off
D) overstated his case
E) has become outdated since the introduction of the Internet

Question 15

Consumer needs vary between countries due to cultural differences and

A) geographic location.
B) level of technological development.
C) demography.
D) level of economic development.
E) religious differences.

Question 16

A product can be viewed as a bundle of what?

A) attributes
B) wants
C) needs
D) profits
E) benefits

Question 17

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) operations and R&D
E) sales and R&D

Question 18

Only _____________ can tell R&D whether to produce globally standardized or locally customized products.

A) finance
B) materials management
C) marketing
D) operations
E) segmentation analysis

Question 19

________________ is a powerful force that drives the world toward a converging commonalty.

A) Technology
B) Production
C) Culture
D) Distribution
E) Globalization

Question 20

The continuing persistence of ________________ differences between nations acts as a major brake on any trend toward global consumer tastes and preferences.

A) technological and communication
B) product standard
C) cultural and economic
D) production and distribution
E) language and historical

Question 21

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
E) diverse

Question 22

A critical element of a firm's marketing mix is its _____________ strategy,which is the means it chooses for delivering the product to the consumer.

A) materials management
B) communications
C) logistics
D) distribution
E) retail

Question 23

Even with the forces that are creating some convergence of consumer tastes among industrialized nations,Levitt's vision of global markets can be a long way off due to what?

A) the segmentation of markets
B) highly localized markets
C) the continued development of markets
D) the changing nature of consumer demands
E) national differences in product and technological standards

Question 24

If the producer sells directly to the consumer,the channel is _______________.If the producer sells through an import agent,a wholesaler,and a retailer,a _______________ channel exists.

A) short; intermediate
B) long; very short
C) intermediate; long
D) short; long
E) direct; multi-level

Question 25

The degree to which a retail system is ________________ is the most important determinant of channel length.

A) concentrated
B) fragmented
C) decentralized
D) globalized
E) developed

Question 26

______________ may be a more important attribute in less developed nations for major purchases such as a car.

A) Product reliability
B) Extra features
C) Style
D) Customization
E) Price

Question 27

Most of the differences in the retail concentrations of different countries are rooted in

A) current events and trade status.
B) economic stature and religious beliefs.
C) history and tradition.
D) geographic location and language.
E) urban and rural divisions.

Question 28

Derik,a grocery store owner,has been dealing with Cheryl's Cheesecake Distributors for 20 years.Michael wants to create a contract with Derik so Derik will carry his cheesecakes.Michael will find this a difficult task because of the ________________ distribution channel Derik has with Cheryl's Cheesecakes.

A) fragmented
B) concentrated
C) short
D) exclusive
E) managed

Question 29

What can the differences in technical standards constrain?

A) The segmentation of markets
B) The localization of markets
C) The development of markets
D) The globalization of standards
E) The globalization of markets

Question 30

A(n)________________ distribution channel is one that is difficult for outsiders to access.

A) long
B) exclusive
C) short
D) inclusive
E) selective

Question 31

In terms of retail concentration,developed countries tend to have a higher degree of concentration than developing countries for all of the following reasons except:

A) increases in car ownership
B) a tradition of established local neighbourhoods in which people walk to stores
C) number of households with refrigerators
D) number of two-income households
E) number of households with freezers

Question 32

What mistake did RCA make when distributing its U.S.made televisions in Asia?

A) included too many product attributes and did not invest enough in product reliability
B) did not adapt its promotional mix to Asian preferences
C) used the same segmentation strategy as in the U.S.
D) priced their product too high to effectively compete with local manufacturers
E) did not take into account different technical standards

Question 33

In a(n)_______________ retail system,a few retailers supply most of the market.

A) fragmented
B) dispersed
C) focused
D) concentrated
E) selective

Question 34

Contrary to Levitt's suggestions,consumers in the most developed countries are often

A) willing to sacrifice their preferred attributes for lower prices.
B) willing to accept a global product if it is accepted by consumers in underdeveloped countries.
C) not willing to sacrifice their preferred attributes for lower prices.
D) willing to sacrifice their preferred attributes regardless of the impact on price.
E) willing to accept a multi domestic product if reliability is improved.

Question 35

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

A) channel length.
B) channel distance.
C) channel exclusivity.
D) channel reach.
E) channel levels.

Question 36

Mass production and marketing of a standardized product can be ruled out by differing ____________ product standards.

A) government-mandated
B) consumer-mandated
C) market and
D) distribution of
E) consumer driven

Question 37

In the last decade the global retail industry has become more ____________________.

A) fragmented because of diverse consumer tastes
B) multi-level because of the growth of the Internet
C) similar because of the influence of western cultural programming
D) diverse because of moves towards cultural autonomy
E) concentrated because of the growth of retailers like Walmart

Question 38

In terms of their distribution strategies,countries differ along three main dimensions.These are

A) end-user identification, channel integration, and transportation strategy.
B) customer concentration, channel breadth, and warehousing strategy.
C) wholesale concentration, channel depth, and transportation strategy.
D) retail concentration, channel length, and channel exclusivity.
E) retail levels, channel organization, and channel quality.

Question 39

Across the world,consumer tastes and preferences are becoming more:

A) ethnocentric
B) parochial
C) indigenous
D) cosmopolitan
E) egalitarian

Question 40

Which of the following countries is characterized by fragmented retail systems with long channels of distribution?

A) Japan
B) Germany
C) United States
D) France
E) Britain

Question 41

The effectiveness of a firm's international communication can be jeopardized by three potentially critical variables.These are

A) technological barriers, geographic barriers, and political barriers.
B) economic factors, political-legal barriers, and noise levels.
C) technological factors, source effects, and noise levels.
D) cultural barriers, source effects, and noise levels.
E) language barriers, noise levels, and religious beliefs.

Question 42

Country of origin effects are:

A) always negative
B) the same as source effects
C) a subset of source effects
D) affected by predatory pricing
E) affected by channel length

Question 43

In the context of communications strategy,push strategies tend to be emphasized:

A) for industrial products and/or complex new products, when distribution channels are short, and when few print or electronic media are available
B) for commodities, when distribution channels are short, and when international markets are attractive for the product
C) for consumer goods, when distribution channels are long, and when sufficient print and electronic media are available to carry the marketing message
D) for services, when distribution channels are long, and when international markets are attractive for the product
E) for consumer products, when distribution channels are exclusive and there is a high level of literacy

Question 44

__________ communications occurs whenever a firm uses a marketing message to sell its products in another country.

A) Diversified
B) International
C) Multi-domestic
D) Functional
E) Cross-cultural

Question 45

In regard to communication strategy,a ______________ strategy emphasizes personal selling rather than mass media advertising in the promotional mix.

A) reverse
B) push
C) forward
D) pull
E) direct

Question 46

In the context to barriers to international communication,_____________ refer(s)to the number of other messages competing for a potential consumer's attention.

A) alternative signals
B) source effects
C) noise
D) channels effects
E) ad effects

Question 47

If a firm chooses to use direct selling,instead of advertising to communicate its message,it should develop a(n)________________ sales force whenever possible.

A) global
B) international
C) national
D) local
E) multicultural

Question 48

Direct selling,sales promotion,direct marketing,and advertising are all _______________ channels.

A) communications
B) distribution
C) product
D) operations
E) mass media

Question 49

A pull strategy is generally favoured by

A) firms in durable goods industries that are trying to sell to a small segment of the markets.
B) firms in consumer goods industries that are typing to sell to a large segment of the market.
C) firms in commodities industries that are trying to sell to foreign governments.
D) firms in service industries that are typing to sell to a large segment of the market.
E) firms using E-commerce to sell to niche markets.

Question 50

______________ occur when the receiver of the message (i.e.the potential customer)evaluates the message based on the status or image of the sender.

A) Synergistic effects
B) Temporal effects
C) Source effects
D) Direct effects
E) Noise effects

Question 51

The three main factors that determine the relative attractiveness of push and pull strategies include:

A) advertising cost, product type relative to consumer sophistication, and channel exclusivity
B) geographic dispersion of buyers, channel length, and channel exclusivity
C) product type relative to consumer sophistication, channel length, and media availability
D) channel exclusivity, advertising cost, and cultural diversity of buyers
E) industrial or consumer products, concentrated or fragmented retail systems, noise levels

Question 52

The main decision with regard to communications strategy is the choice between a(n)

A) external strategy and an internal strategy.
B) aggressive strategy and a conservative strategy.
C) noisy strategy and a quiet strategy.
D) push strategy and a pull strategy.
E) direct strategy or indirect strategy.

Question 53

In highly developed countries like Canada,noise from firms competing for the attention of target consumers is

A) extremely high.
B) extremely low.
C) moderate.
D) not a factor in communication.
E) reasonable.

Question 54

A choice of _______________ strategy determines which channel the firm will use to reach potential consumers.

A) logistics
B) transportation
C) communications
D) operations
E) distribution

Question 55

The best way for a firm to overcome cultural barriers is to do what?

A) increase the advertising budget
B) adjust the product mix
C) build a communications strategy
D) adjust prices
E) develop cross-cultural literacy

Question 56

Which of the following communications strategies relies primarily on mass media advertising rather than personal selling?

A) forward
B) pull
C) push
D) reverse
E) indirect

Question 57

A push strategy is favoured by firms that sell:

A) services
B) commodities
C) consumer products or other standardized products
D) industrial products or other complex products
E) through distributors

Question 58

In the context of communications strategy,pull strategies tend to be emphasized:

A) for commodities, when distribution channels are short, and when international markets are available for the product.
B) for consumer goods, when distribution channels are long, and when sufficient print and electronic media are available to carry the marketing message.
C) for services, when distribution channels are long, and when international markets are available for the product.
D) for industrial products and/or complex new products, when distribution channels are short, and when few print or electronic media are available.
E) for industrial services, when distribution channels are direct and when there is a low degree of literacy.

Question 59

______________ refer to the extent to which the place of manufacturing influences product evaluations.

A) Home country effects
B) Country of origin effects
C) Social effects
D) Host country effects
E) Export country effects

Question 60

Push strategies tend to be emphasized for industrial products and/or complex new products,when distribution channels are short,and when _______________.

A) few print or electronic media are available
B) international markets are available for the product
C) sufficient print and electronic media are available
D) distribution channels are difficult to access
E) cultural differences and source effects diminish the effectiveness of advertising

Question 61

A country is allowed to bring antidumping actions against an importer under Article 6 of GATT as long as two criteria are met.These are

A) sales are made at less than fair market value; and when material injury is done to a domestic industry.
B) the importer is not participant in the GATT Agreement; and when no advance notice of the dumping action was provided.
C) when material injury is done to a domestic industry; and the alleged dumping has taken place for more then six months.
D) sales are made at less than fair market value; and the importer is a participant in the GATT Agreement.
E) sales are made at less than fair market value; and when the two countries are members of a regional economic agreement.

Question 62

Which of the following is not an aspect of strategic pricing?

A) experience curve pricing
B) predatory pricing
C) skim pricing
D) multipoint pricing
E) none of these answers is correct

Question 63

As a firm builds,it increases production volume over time,unit costs fall due to what?

A) experience effects
B) decrease in demand
C) lower price of raw materials
D) predatory pricing
E) learning effects

Question 64

In the context of strategic pricing,______________ occurs whenever a firm sells a product for a price that is less than the cost of producing it.

A) insourcing
B) dumping
C) price reengineering
D) outsourcing
E) predatory pricing

Question 65

According to the text,one of the most successful standardized campaigns in history was the promotion of

A) Joy dish detergent.
B) Marlboro cigarettes.
C) Levi Jeans.
D) Coca-Cola.
E) Toyota.

Question 66

If a consumer in Italy paid $45,000 for a BMW and a consumer in Great Britain paid $60,000 for the identical vehicle that would be an example of what?

A) standardized pricing
B) price discrimination
C) global pricing
D) predatory pricing
E) country specific pricing

Question 67

Which of the following is not a justification for global advertising?

A) It has significant economic advantages
B) Because creative talent is scarce, one large effort to develop a campaign will produce better results than 40 or 50 smaller efforts
C) Many brands are global
D) Cultural differences among nations are such that a message that works in one nation can fail in another
E) None of these answers is correct

Question 68

There are two main arguments against global advertising.These are:

A) many brands are global; country differences in advertising regulations may block implementation of global messages
B) because creative talent is scarce, one large effort to develop a campaign will produce better results than 40 or 50 smaller efforts; it has significant economic advantages
C) cultural differences among nations are such that a message that works in one nation can fail in another; country differences in advertising regulations may block implementation of global messages
D) many brands are global
E) it has significant economic advantages

Question 69

Demand is said to be ______________ when a small change in price produces a large change in demand,while it is said to be ______________ when a large change in price produces only a small change in demand.

A) inelastic; elastic
B) small; large
C) large; small
D) elastic; inelastic
E) changeable; resistant

Question 70

To maximize profits,the firm must produce at the output where:

A) D_j = MR.
B) MR = MC.
C) D_j = MC.
D) D_u = MR.
E) D_u = MC

Question 71

Pull strategies tend to be emphasized for ______________.

A) commodities
B) consumer goods
C) industrial goods
D) services
E) cultural goods

Question 72

Two conditions are necessary for profitable price discrimination.These are

A) the firm must sell a standardized product; and the firm must be able to keep its national markets separate.
B) the firm must be able to keep its national markets separate; and the existence of different price elasticities of demand in different countries must exist.
C) the firm must rely upon substantial economies of scale; and the firm cannot be a member of a major trade block.
D) the firm must sell highly differentiated products; and the existence of different prices elasticities of demand in different countries must exist.
E) there must be no tariff differences between the countries and there must be a fragmented retail system.

Question 73

Many competitors cause ______________ elasticity of demand.

A) low
B) neutral
C) mid
D) high
E) controlled

Question 74

The fact a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market refers to:

A) dumping
B) predatory pricing
C) experience pricing
D) multipoint pricing
E) transfer pricing

Question 75

In an international context,______________ exists whenever consumers in different countries are charged different prices for the same product.

A) price discrimination
B) global pricing
C) predatory pricing
D) standardized pricing
E) country specific pricing

Question 76

When Kleenex cuts its prices in Germany,it caused Puffs to lose profits there.In return,Puffs cut prices in Canada,causing Kleenex to lose profits.This is an example of what?

A) dumping
B) multipoint pricing
C) predatory pricing
D) competitive pricing
E) war pricing

Question 77

According to the textbook,the elasticity of demand for a product in a given country is determined at least in part by the following two important factors:

A) geographic location and economic stability
B) currency rates and interest rates
C) income level and competitive conditions
D) tax rates and standard of living
E) perception of what is a luxury and what is a necessity

Question 78

Which of the following is not an aspect of international pricing strategy?

A) competitive advertising
B) price discrimination
C) strategic pricing
D) regulatory factors
E) antidumping regulations

Question 79

The use of price as a competitive weapon to drive weaker competitors out of a national market is called:

A) pillage pricing
B) predatory pricing
C) forward pricing
D) competitive pricing
E) war pricing

Question 80

Carol wants to decide what she should customize and what she should standardize.What should she carefully examine to make this decision?

A) The features and benefits of her products
B) The cost and benefits of each element in the marketing mix
C) The supply and demand of the products
D) The government regulations on advertising and economic conditions of the country
E) The consumer preferences and the cultural differences