Deck 15: Global Marketing and RD

Question 1

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.

Answer 1

True
Explanation: When managers in an international business consider market segmentation in foreign countries,they need to be cognizant of two main issues: the differences between countries in the structure of market segments and the existence of segments that transcend national borders.

Question 2

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

Answer 2

False
Explanation: In a concentrated retail system,a few retailers supply most of the market.

Question 3

The fact that tastes and preferences are becoming more cosmopolitan disproves Levitt's views on the globalization of markets.

Answer 3

False
Explanation: The fact that tastes and preferences are becoming more cosmopolitan is evidence of the trends Levitt talked about.

Question 4

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

Question 5

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

Question 6

Theodore Levitt argued that the emergence of a global market calls for standardized consumer products.

Question 7

Cultural barriers are solely responsible for jeopardizing the effectiveness of a firm's international communication.

Question 8

Channel exclusivity refers to the expertise,competencies,and skills of established retailers in a nation,and their ability to sell and support the products of international business.

Question 9

Market segments that transcend national borders clearly exist in certain consumer markets,but are somewhat rarer in industrial markets.

Question 10

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

Question 11

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

Question 12

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

Question 13

Developed countries tend to have less retail concentration than developing countries.

Question 14

The more fragmented the retail system,the less expensive it is for a firm to make contact with each individual retailer.

Question 15

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

Question 16

Firms based in highly developed countries such as the United States tend to build a lot of extra performance attributes into their products.

Question 17

Religion is an example of a sociocultural factor used for market segmentation.

Question 18

One benefit of a longer channel is that it cuts selling costs when the retail sector is very concentrated.

Question 19

The most important aspect of cultural differences is probably the impact of tradition.

Question 20

Many firms vary their marketing mix from country to country,depending on differences in national culture,economic development,product standards,distribution channels,and so on.

Question 21

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

Question 22

According to Levitt,a powerful force drives the world toward a converging commonalty,and that force is:

A)technology.
B)culture.
C)politics.
D)religion.

Question 23

The "creative destruction" unleashed by technological change makes it critical that a firm stay on the leading edge of technology.

Question 24

To avoid failures and to ensure maximum functionality,each core function of new-product development needs to work separately.

Question 25

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

Question 26

Spreading the fixed costs of developing the advertisements over many countries increases the costs of value creation in standardized advertising.

Question 27

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 28

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

A)finance
B)materials management
C)marketing
D)operations

Question 29

In order to eliminate duplication,the argument to centralize R&D is gaining more support.

Question 30

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

Question 31

Income level and competitive conditions determine the elasticity of demand for a product in a given country.

Question 32

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

Question 33

A push strategy is generally favored by firms in consumer goods industries that are trying to sell to a large segment of the market.

Question 34

A pull strategy emphasizes personal selling rather than mass media advertising in the promotional mix.

Question 35

A pull strategy relies on access to advertising media.

Question 36

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 37

Due to cultural uniformity,messages always mean the same in international marketing.

Question 38

Strategic pricing has three aspects: predatory pricing,multipoint pricing,and segment curve pricing.

Question 39

Research has long maintained that a major contributor to the success of new-product introductions is a close relationship between

A)marketing and R&D
B)marketing and human resources.
C)human resources and R&D
D)operations and advertising.

Question 40

Dumping occurs whenever an international firm sells a product for a price that is less than the price charged by domestic producers.

Question 41

Cultural convergence has been strongest between:

A)North America and AsiA.
B)North America and Western Europe.
C)Asia and the Middle East.
D)the Middle East and Eastern Europe.

Question 42

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

A)Market segmentation
B)Differentiation
C)Market penetration
D)Diversification

Question 43

According to Levitt,the commonalty of preference leads inescapably to the standardization of all of the following EXCEPT:

A)products.
B)manufacturing.
C)customer support.
D)institutions of trade and commerce.

Question 44

When managers in an international business consider market segmentation in foreign countries,they need to be cognizant of the differences between countries in the structure of market segments and the existence of market segments that:

A)are in the home country.
B)transcend national borders.
C)are divided by gender.
D)are based on home-market models.

Question 45

Which country is most likely to demand products with extra performance attributes?

A)The United States
B)China
C)Bulgaria
D)Mexico

Question 46

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)segmentation
B)distribution
C)logistics
D)communication

Question 47

Which of the following is evidence for the trends Levitt talked about?

A)Markets are getting increasingly segmented.
B)Firms are focusing more on localization.
C)Regionalization of consumer groups is becoming stronger.
D)Tastes and preferences are becoming more cosmopolitan.

Question 48

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.

Question 49

The global corporation

A)considers the world to consist of distinct and unique entities.
B)operates at low relative costs.
C)operates from any one country.
D)adjusts its products and practices to each country.

Question 50

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

A)ethnocentric.
B)parochial.
C)indigenous.
D)cosmopolitan.

Question 51

The goal of market segmentation is to optimize the fit between the purchasing behavior of consumers in a given segment and the _____,thereby maximizing sales to that segment.

A)marketing mix
B)promotion mix
C)product mix
D)distribution mix

Question 52

Which of the following is a sociocultural factor?

A)Personality
B)Race
C)Values
D)Income

Question 53

The most important aspect of cultural differences is probably the:

A)language.
B)family values.
C)religion.
D)impact of tradition.

Question 54

At present,the continuing persistence of _____ and _____ differences between nations acts as a brake on any trend toward the standardization of consumer tastes and preferences across nations.

A)cultural;economic
B)religious;technological
C)intellectual;technological
D)generational;political

Question 55

Levitt's vision of global markets may still be a long way off because of national differences in:

A)operational and managerial standards.
B)research and personnel standards.
C)product and technological standards.
D)marketing and product standards.

Question 56

The multinational corporation

A)considers the entire world a single entity.
B)operates at low relative costs.
C)operates in a number of countries at high relative costs.
D)sells the same thing in the same way everywhere.

Question 57

If Theodore Levitt is correct,his arguments have major implications for the _____ strategies pursued by international business.

A)legal
B)marketing
C)financial
D)employment

Question 58

The _____ that make up a car include power,design,quality,performance,fuel consumption,and comfort.

A)qualifications
B)products
C)attributes
D)commodities

Question 59

Levitt is probably correct to assert that _____ are facilitating a convergence of certain tastes and preferences among consumers in the more advanced countries of the world.

A)information outlets
B)global powerhouses
C)cultural overlaps
D)modern transportation and communications technologies

Question 60

For segments to transcend national borders,consumers in that segment must have some compelling similarities along important dimensions.This includes all of the following EXCEPT:

A)age.
B)values.
C)race.
D)lifestyle choices.

Question 61

Which of the following is a drawback of having a shorter channel length?

A)In terms of the Internet creating shorter channel lengths,the firm may lose significant sales due to the lack of point-of-sale service.
B)In terms of the Internet creating shorter channel lengths,it requires the need for a retail presence on the ground.
C)The shorter the channel,the greater is the aggregate markup.
D)The shorter the channel,the higher the price that consumers are charged for the final product.

Question 62

Japan,with a much greater population density and a large number of urban centers that grew up before the automobile,has a more _____ retail system,with many small stores serving local neighborhoods and to which people frequently walk.

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

Question 63

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.

Question 64

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 the firm to deal directly with retailers,cutting out wholesalers.
C)a relatively large sales force is required to deal with retail the sector.
D)there are long channels of distribution.

Question 65

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

A)Japan
B)Germany
C)The United States
D)France

Question 66

Which of the following is the most notable trend in the global retail industry in the last decade?

A)Segmentation
B)Fragmentation
C)Shrinkage
D)Consolidation

Question 67

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

A)distribution
B)transportation
C)communication
D)operations

Question 68

_____ retail systems tend to promote the growth of wholesalers to serve retailers,which lengthens channels.

A)Centralized
B)Focused
C)Concentrated
D)Fragmented

Question 69

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)a tradition of established local neighborhoods in which people walk to stores.
B)an increase in car ownership.
C)an increase in the number of households with refrigerators and freezers.
D)an increase in the number of two-income households that accompany development.

Question 70

The rapid development of the Internet in recent years has helped to:

A)shorten channel length.
B)temporize channel length.
C)concentrate the retail system.
D)fragment the retail system.

Question 71

Depending on which of the following factors do the relative costs and benefits of each alternative in a distribution strategy vary from country to country?

A)Wholesale concentration
B)Channel commonness
C)Channel quality
D)Noise levels

Question 72

In countries such as Great Britain,Germany,and the United States:

A)channel lengths are short and the retail system is fragmented.
B)channel lengths are short and the retail system is concentrated.
C)channel lengths are long and the retail system is fragmented.
D)channel lengths are long and the retail system is concentrateD.

Question 73

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

A)general
B)exclusive
C)complete
D)comprehensive

Question 74

Which of the following is true about channel quality?

A)The quality of retailers is good invariably in all developing nations.
B)The quality of retailers is variable at best in emerging markets.
C)It refers to the types of intermediaries between the manufacturer and the consumer.
D)It is difficult for outsiders to achieve.

Question 75

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

A)fragmented.
B)concentrated.
C)focused.
D)consolidateD.

Question 76

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)They 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.

Question 77

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)fragmented
C)focused
D)consolidated

Question 78

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

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

Question 79

Which of the following is a main difference between distribution systems?

A)Wholesale concentration
B)Channel breadth
C)Media availability
D)Channel exclusivity

Question 80

_____ 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