Deck 16: Global Marketing and R-D

Question 1

According to Theodore Levitt,technology has resulted in the emergence of global markets for standardized consumer products on a previously unimagined scale of magnitude.

Answer 1

True

Question 2

In terms of factors influencing product attributes,the impact of tradition is particularly important in foodstuffs and beverages.

Answer 2

True

Question 3

A global marketing strategy that views the world's consumers as similar in their preferences is consistent with the mass production of a standardized output.

Answer 3

True

Question 4

The fact that tastes and preferences of consumers are not universal disproves Theodore Levitt's views on the globalization of markets.

Question 5

A concentrated retail system is one in which there are many retailers,none of which has a major share of the market.

Question 6

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

Question 7

A critical aspect of the marketing function is identifying gaps in the market so that a firm can develop new products to fill those gaps.

Question 8

Firms based in less developed nations tend to build a lot of extra performance attributes into their products.

Question 9

The expertise,competencies,and skills of established retailers in a nation,and their ability to sell and support the products of international business is referred to as channel exclusivity.

Question 10

For a market segment to transcend national borders,consumers in that segment must have some compelling similarities along important dimensions such as age,values,and lifestyle choices.

Question 11

The effectiveness of a firm's international communication can be jeopardized by cultural barriers only.

Question 12

Firms vary their marketing mix from country to country depending on differences in national culture

Question 13

In terms of channel length,the more fragmented the retail system,the less expensive it is for a firm to make contact with each individual retailer.

Question 14

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

Question 15

Market segmentation refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways.

Question 16

One benefit of a longer distribution channel is that it cuts selling costs when the degree of fragmentation of the retail sector is less.

Question 17

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

Question 18

There is generally a critical link between 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 19

When managers in an international business consider market segmentation in foreign countries,they need to be cognizant of the difference between countries in the structure of market segments.

Question 20

In terms of the differences between countries with respect to distribution systems,there is a tendency for lesser retail concentration in developed countries.

Question 21

Firms can reduce the failure of new-product development by insisting that research and development,marketing,and production functions work independently.

Question 22

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 23

A pull strategy refers to a marketing strategy that emphasizes personal selling rather than mass media advertising in the promotional mix.

Question 24

A firm's ability to use a pull marketing strategy is limited in some countries by media availability.

Question 25

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

Question 26

Which of the following is an element of a firm's marketing mix?

A) Product attributes
B) Employee management
C) Customer service
D) Population demographics
E) Domestic competition

Question 27

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 28

Predatory pricing exists whenever consumers in different countries are charged different prices for the same product,or for slightly different variations of the product.

Question 29

Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a push strategy.

Question 30

The elasticity of demand for a product in a given country is determined by a number of factors,of which income level and competitive conditions are the two most important.

Question 31

The shorter the distribution channel,the more intermediaries there are that must be persuaded to carry the product for it to reach the consumer.

Question 32

Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets?

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 33

Many international businesses try to counter negative source effects by deemphasizing their foreign origins.

Question 34

A technological innovation can make established products obsolete overnight.

Question 35

In terms of pricing decisions,full responsibility for pricing decisions should be delegated to the managers of various national subsidiaries,thereby reaping the benefits of decentralization.

Question 36

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 37

Which of the following is true of the marketing and research and development (R&D)departments in an international firm?

A) Marketing and R&D should always work independently.
B) R&D identifies gaps in a market so that marketing can work to fill those gaps.
C) R&D defines the market's needs for the marketing personnel.
D) Marketing fails to guide R&D whether to produce globally standardized or locally customized products.
E) A major contributor to the success of new-product introductions is a close relationship between marketing and R&D.

Question 38

Which of the following functions of an international business is required to create new products?

A) Supply chain
B) Logistics
C) Operations
D) Research and development
E) Customer service

Question 39

In international marketing,a message that means one thing in one country may mean something quite different in another due to cultural differences.

Question 40

The _____ refer(s)to choices about product attributes,distribution strategy,communication strategy,and pricing strategy that a firm offers its targeted markets.

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

Question 41

Firms based in _____ countries tend to build a lot of extra performance attributes into their products.

A) highly developed
B) least developed
C) highly-indebted
D) developing countries
E) agriculture-based

Question 42

Which of the following 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 43

Which of the following is a definition of market segmentation?

A) It refers to identifying distinct groups of customers whose purchasing behavior differs from others.
B) It refers to developing existing market segments and increasing market share within those segments.
C) It refers to identifying the need for new products in existing markets and developing products for those markets.
D) It refers to identifying new markets that can buy existing products.
E) It refers to identifying the needs of a new market and developing new products for that market.

Question 44

Which of the following is a sociocultural factor that is used to segment markets?

A) Personality
B) Race
C) Values
D) Income
E) Education level

Question 45

_____ refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways.

A) Market penetration
B) Market development
C) Market segmentation
D) Product development
E) Diversification

Question 46

In terms of the factors affecting product attributes,the impact of _____ is particularly important in foodstuffs and beverages.

A) language
B) nationality
C) religion
D) tradition
E) gender

Question 47

Which of the following is a statement made by Theodore Levitt about the globalization of world markets?

A) Capitalism is the force that drives the world toward a converging commonality.
B) Multinational corporations consider the world to consist of distinct and unique entities.
C) Accustomed differences in national or regional preferences are becoming more significant.
D) Multinational corporations are in danger of losing out to small businesses.
E) Global markets for standardized consumer products have emerged on a large scale of magnitude.

Question 48

In terms of the influence of cultural differences on product attributes,which of the following is evidence of the trends that Theodore Levitt described?

A) Differences in traditional eating habits
B) Cultural differences due to historical and idiosyncratic reasons
C) Market segments that remained confined to national borders
D) Tastes and preferences becoming cosmopolitan
E) Varying product and technical standards

Question 49

Which of the following is true of market segmentation?

A) An important market segment in a foreign country always has a parallel in a firm's home country.
B) Markets can be segmented only on the basis of geography and demography.
C) The structure of market segments is quite similar across various countries.
D) Since market segments are similar across various countries, firms can pursue a global marketing strategy without varying the marketing mix.
E) For a segment to transcend national borders, consumers in that segment must have some compelling similarities along important dimensions.

Question 50

Which of the following is true of Theodore Levitt's arguments concerning globalization of world markets?

A) Levitt's argument holds true for basic industrial products, such as steel, bulk chemicals, and semiconductor chips but not for consumer goods markets.
B) Levitt understates his case concerning global markets and the fall of multinational corporations.
C) Globalization, in the sense used by Levitt, is the rule rather than the exception in consumer goods markets.
D) Levitt's arguments have no implications for the marketing strategies pursued by an international business.
E) There is no evidence to suggest the convergence of preferences among consumers across advanced countries.

Question 51

Which of the following is a reason why firms need to adjust their marketing mix from segment to segment?

A) Different segments exhibit different patterns of purchasing behavior.
B) Each market segment is completely isolated from other market segments.
C) The technology required for standardized production is not yet available.
D) Changing the marketing mix prevents the phenomena of product cannibalization.
E) Consumers of one market segment are completely isolated from those of other segments.

Question 52

Which of the following factors constrain a firm's ability to sell a standardized product to a global market using a standardized marketing strategy?

A) Modern transportation
B) Modern communications technologies
C) Rise of the global media phenomenon
D) Development of a global culture
E) Differences in product and technical standards

Question 53

Which of the following factors constrains the globalization of markets?

A) Difference in technical standards
B) Uniform standard of living
C) Cosmopolitan tastes and preferences
D) Market segments that transcend national borders
E) Convergence of cultures

Question 54

Which of the following is a goal of market segmentation?

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

Question 55

Which of the following is true of the influence of cultural differences on product attributes?

A) Cultural differences have no implications for marketing strategies.
B) Tradition has the least impact on a firm's marketing strategies.
C) Tastes and preferences of consumers are becoming less cosmopolitan.
D) There is evidence of cultural convergence between the advanced industrial nations of Asia and North America.
E) The impact of tradition is important in foodstuffs and beverages.

Question 56

Which of the following is true of a product?

A) A product can be viewed as the focal point of a marketing mix.
B) A product can be viewed as the center of market segmentation.
C) A product can be viewed as a bundle of attributes.
D) A product can be viewed as a forced need or want.
E) A product can be viewed as an object that transcends customer behavior.

Question 57

Which of the following is true of the influence of economic development on consumer preferences?

A) The level of economic development does not impact consumer preferences as much as cultural difference does.
B) Firms based in highly developed countries do not build extra performance attributes into their products.
C) Consumers in less developed nations demand to have extra attributes built into products.
D) Consumers in developed countries are often willing to sacrifice their preferred attributes for lower prices.
E) Consumers in developed nations are willing to pay more for products that have additional features customized to their tastes.

Question 58

Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?

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 rather 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, in global markets, firms do not tailor their products to suit different countries.

Question 59

Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?

A) The rise of global media phenomenon seems to support Levitt's argument.
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, in real-world global markets, firms do not tailor their products to suit different countries.

Question 60

Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets?

A) Multinational corporations consider the world to consist of distinct and unique entities.
B) Multinational corporations operate at low relative costs.
C) Multinational corporations operate from a single country.
D) Multinational corporations do not adjust their products and practices to suit each country.
E) Multinational corporations are in danger of losing out to small businesses.

Question 61

_____ 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 62

A(n)_____ retail system is one in which there are many retailers,no one of which has a major share of the market.

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

Question 63

When the retail sector is very concentrated:

A) it is more expensive for the firm to make contact with each individual retailer.
B) it makes sense for a firm to deal with wholesalers instead of retailers.
C) a relatively large sales force is required to deal with the retail sector.
D) there are long channels of distribution.
E) the orders generated from each sales call can be large.

Question 64

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 65

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 66

Which of the following factors helps a firm shorten channel length?

A) The entry of large discount superstores
B) A firm's insistence on dealing with wholesalers instead of retailers
C) Fragmentation of a retail system
D) A small sales force
E) Smaller sales orders generated from sales calls

Question 67

Which of the following is the most important determinant of channel length?

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

Question 68

Which of the following is true about fragmented retail systems?

A) The more fragmented the retail system, the more economical it is for a firm to make contact with each individual retailer.
B) Countries with fragmented retail systems tend to have short channels of distribution.
C) A relatively small sales force is required to deal with a fragmented retail sector.
D) It makes economic sense for the firm to sell to the wholesalers and the wholesalers to deal with the retailers.
E) The sales orders generated from each sales call is more than that in a concentrated retail system.

Question 69

Which of the following is true of distribution channel exclusivity?

A) In Japan, relationships among manufacturers, wholesalers, and retailers often go back decade.
B) Japan's distribution system is often held up as one of the least exclusive systems.
C) An exclusive distribution channel refers to a channel that outsiders find convenient to access.
D) Retailers tend to prefer to carry the products of emerging firms rather than established firms.
E) The exclusivity of a distribution system is similar across most countries of the world.

Question 70

Which of the following is a basis for the differences in retail concentration in various countries?

A) Tradition
B) Idiosyncracies
C) Prejudices
D) Demographics
E) Geography

Question 71

Which of the following is a factor that has contributed to greater retail concentration in developed countries?

A) A tradition of established local neighborhood stores
B) An increase in car ownership
C) A decrease in the number of freezers and refrigerators
D) An increase in the number of single-income households
E) An increase in the population density

Question 72

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

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

Question 73

Which of the following is true about channel quality?

A) The quality of retailers is variable in developed nations.
B) The quality of retailers is variable in emerging markets and less developed nations.
C) Chanel 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 74

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

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

Question 75

Which of the following is a factor that determines the optimal distribution strategy?

A) Communication strategy
B) Country of origin effects
C) Channel quality
D) Noise levels
E) Source effects

Question 76

Which of the following is a factor that 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 value of the currency of the country
D) Number of households with refrigerators and freezers
E) Decrease in per capita income

Question 77

_____ 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 quality
C) Channel length
D) Channel dominance
E) Channel concentration

Question 78

Which of the following is true of choosing a distribution strategy?

A) The optimal distribution strategy is determined by the relative costs and benefits of each alternative, which vary from country to country.
B) A choice of distribution strategy does not determine which channel the firm will use to reach potential consumers.
C) The channel length, the final selling price, and the firm's profit margin are completely independent of each other.
D) The longer a distribution channel, the lower the aggregate markup.
E) The longer a distribution channel, the lower the price that consumers are charged for the final product.

Question 79

Which of the following is a characteristic of fragmented retail systems?

A) Long channels of distribution
B) Single-layer distribution systems
C) Lower sales call to sales order ratio
D) Relatively smaller sales force compared to concentrated retail systems
E) Promotion of direct interaction between retailers and firms

Question 80

A _____ refers to the means that a firm chooses for delivering a product to its consumer.

A) pull strategy
B) distribution strategy
C) push strategy
D) communication strategy
E) pricing strategy