Deck 18: Global Marketing and RD

Question 1

A channel is considered to be long if the producer sells directly to the consumer.

Answer 1

False

Question 2

The number of intermediaries between the producer and the consumer is known as the channel length.

Answer 2

True

Question 3

An increase in car ownership,the number of two-income households,and the number of households with a refrigerator have all contributed to the more fragmented retail system found in developed countries.

Answer 3

False

Question 4

There is a tendency for greater retail concentration in developing countries.

Question 5

Markets can be segmented in only one way: by socio-cultural factors.

Question 6

The process of identifying distinct groups of consumers whose purchasing behavior differs from others in important ways is known as consumer behavior analysis.

Question 7

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

Question 8

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

Question 9

The set of choices the firm offers to its targeted markets is known as the marketing mix.

Question 10

The structure of market segments may differ significantly from country to country.

Question 11

If a firm manufactures its product in a particular country,it can sell directly to the consumer,to the retailer,or to the wholesaler.The same options are not available to a firm that manufactures outside the country.

Question 12

The marketing mix is comprised of product attributes,distribution strategy,communication strategy,and pricing strategy.

Question 13

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

Question 14

Differences in technical standards constrain the globalization of markets.

Question 15

In a concentrated retail system,there are many retailers but none of them have a significant share of the market.

Question 16

Products sell well when their attributes match consumer needs.

Question 17

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

Question 18

Countries with fragmented retail systems tend to have long channels of distribution.

Question 19

The four main differences between distribution systems are retail concentration,channel length,channel exclusivity,and channel quality.

Question 20

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

Question 21

A company that depends on mass media advertising to communicate its marketing message to potential consumers is using a push strategy.

Question 22

Pricing decisions around the world must be delegated to the managers of various national subsidiaries.

Question 23

A push strategy makes sense when distribution channels are short.

Question 24

The entry of large discount superstores such as Tesco and Carrefour have shortened channel length in some countries.

Question 25

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

Question 26

The use of price as a competitive weapon to drive weaker competitors out of a national market is known as predatory pricing.

Question 27

To design the product so that it can be manufactured in a cost-effective manner,the firm needs to build close links between R&D,marketing,and manufacturing.

Question 28

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

Question 29

Source effects occur when the receiver of the message evaluates the message based on the status or image of the sender.

Question 30

The best way for a firm to overcome cultural barriers is to develop cross-cultural literacy.

Question 31

The increasing pace of technological change has resulted in a dramatic shortening of product life cycles.

Question 32

The rate of new-product development seems to be lesser in countries where more money is spent on basic and applied research and development.

Question 33

When a small change in price produces a large change in demand,demand is said to be inelastic.

Question 34

Import agents are typically limited to independent trading houses.

Question 35

Source effects and country of origin effects are always negative.

Question 36

In a competitive market,prices have to be higher than in a market where the firm has a monopoly.

Question 37

A firm may be prevented from using standardized advertising because of advertising regulations.

Question 38

When a company emphasizes personal selling,the company is probably using a push strategy.

Question 39

An exclusive distribution channel is one that is difficult for outsiders to access.

Question 40

New-product development has a high failure rate.

Question 41

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

Question 42

The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as ____.

A) market segmentation
B) market penetration
C) diversification strategy
D) differentiation

Question 43

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

A) willing to sacrifice their preferred attributes for lower prices.
B) not willing to pay more for products that have additional features customized to their tastes.
C) not willing to sacrifice their preferred attributes for lower prices.
D) willing to accept globally standardized products that have been developed with the lowest common denominator in mind.

Question 44

A country with high car ownership,a large number of households with refrigerators,and a large number of two-income families tend to have:

A) retail division.
B) retail dispersion.
C) retail concentration.
D) retail fragmentation.

Question 45

The most important aspect of a country's cultural differences,particularly important in foodstuffs and beverages,is the impact of ____.

A) values
B) traditions
C) norms
D) attitudes

Question 46

Which of the following statements about retail systems is true?

A) One factor contributing to greater retail concentration is an increase in car ownership.
B) The number of households with refrigerators leads to lesser retail concentration in developed countries.
C) There is a tendency for greater retail concentration in many developing countries.
D) Retail systems are very fragmented in developed countries.

Question 47

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

A) technological and industrial
B) institutional and political
C) cultural and economic
D) GNP level and growth rate

Question 48

The way a product is delivered is determined by:

A) the firm's entry strategy.
B) the firm's product positioning.
C) the target market.
D) the market segments.

Question 49

For a product development team to function effectively and meet all its development milestones,the team should be composed of at least one member from each key function.

Question 50

If market segments transcend national borders:

A) the company should develop unique products for each national market.
B) the company can view the global market as a single entity and pursue a global strategy.
C) a localization strategy would be appropriate.
D) consumers will have differing purchasing behavior in different nations.

Question 51

The set of choices the firm offers to its targeted market is known as the ____.

A) marketing mix
B) marketing concept
C) marketing strategy
D) market promotion

Question 52

Which of the following is one of the four elements that constitute a firm's marketing mix?

A) Inventory accounting
B) Product reengineering
C) Reverse engineering
D) Distribution strategy

Question 53

The means a firm chooses for delivering the product to the consumer is its ____.

A) communication strategy
B) segmentation strategy
C) product attributes
D) distribution strategy

Question 54

Consumers in highly developed countries value ____ as compared to their counterparts in less developed nations.

A) product price
B) product reliability
C) product attributes
D) product value

Question 55

According to Levitt,which of the following statements is true?

A) Technology drives the world toward a converging commonalty.
B) There are accustomed differences in national preferences.
C) The multinational corporation operates in a number of countries at low relative costs.
D) The global corporation operates with resolute consistency at high relative costs.

Question 56

The need to integrate R&D and marketing to adequately commercialize new technologies poses special problems in the international business because commercialization may require different versions of a new product to be produced for various countries.

Question 57

In a concentrated retail system:

A) there are many retailers who have a major share of the market.
B) there are many retailers,no one of which has a major share of the market.
C) a few retailers supply a small segment of the market.
D) a few retailers supply most of the market.

Question 58

Tight cross-functional integration between R&D,production,and marketing maximizes the time to market.

Question 59

Designing for manufacturing increases not only product quality,but also costs involved.

Question 60

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) finance and R&D.

Question 61

Which of the following statements about fragmented retail systems is true?

A) Countries with fragmented retail systems tend to have short channels of distribution.
B) The more fragmented the retail system,the less expensive it is for a firm to make contact with each individual retailer.
C) Fragmented retail systems tend to promote the growth of wholesalers to serve retailers.
D) When the retail sector is very fragmented,it makes sense for the firm to deal directly with retailers.

Question 62

____ 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 knowledge
C) Channel quality
D) Channel skill

Question 63

When a firm emphasizes personal selling rather than mass media advertising in the promotional mix,the firm is using a:

A) standardized strategy.
B) pull strategy.
C) push strategy.
D) localized strategy.

Question 64

In the 1960s,the Swedish vacuum manufacturer Electrolux successfully marketed vacuums in the United Kingdom with the slogan "Nothing sucks like an Electrolux". The informal US meaning of the word 'sucks' was already well known in the UK at the time,and the company hoped the slogan,with its possible double entendre,would gain attention.When this slogan was used in the American market,it was a catastrophe.This is an example of:

A) cultural differences.
B) religious differences.
C) source effects.
D) noise levels.

Question 65

When a channel is exclusive:

A) the firm sells and distributes only high-end products.
B) it is controlled by market leaders or by firms who have a niche market.
C) the firm's products are focused only on the elite,upper class customers.
D) it is often difficult for a new firm to get access to shelf space in supermarkets.

Question 66

Which of the following statements about the choice of distribution strategy is true?

A) The longer a channel,the greater the aggregate markup,and the higher the price that consumers are charged for the final product.
B) If price is an important competitive weapon and if the firm does not want to see its profit margins squeezed,other things being equal,the firm would prefer to use a longer channel.
C) The shorter a channel,the greater the aggregate markup,and the higher the price that consumers are charged for the final product.
D) An international business must use shorter channels in countries where the retail sector is fragmented and longer channels in countries where the retail sector is concentrated.

Question 67

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

A) selective
B) intensive
C) exclusive
D) multi-channel

Question 68

To overcome cultural barriers,companies should:

A) develop products specifically for each market.
B) focus on universal needs.
C) focus only on international market segments.
D) develop cross-cultural literacy.

Question 69

____ refers to the number of intermediaries between the producer (or manufacturer)and the consumer.

A) Channel length
B) Channel exclusivity
C) Channel quality
D) Channel speed

Question 70

If a producer sells through an import agent,a wholesaler,and a retailer,then:

A) a long channel exists.
B) the retail system must be concentrated.
C) the internet probably plays a big role in the economy.
D) there is no channel.

Question 71

Which of the following is an example of a positive source effect?

A) A 3M Post-it note
B) A Dell laptop
C) An Audi R8
D) An Apple iPod

Question 72

The probability of effective communications is reduced by:

A) noise.
B) location effects.
C) country of origin effects.
D) source effects.

Question 73

The extent to which the place of manufacturing influences product evaluations is known as ____.

A) source effects.
B) country of origin effects.
C) noise effects.
D) location effects.

Question 74

Which of the following countries has a concentrated retail system?

A) China
B) USA
C) Japan
D) India

Question 75

The "Swiss Made" label has leveraged several watch-making companies (for example,TAG Heuer)for decades now.This is an example of a ____ effect.

A) linguistic
B) country of origin
C) noise
D) cultural

Question 76

What kind of retail systems do rural India and China have?

A) Fragmented
B) Direct
C) Indirect
D) Concentrated

Question 77

When the receiver of a message evaluates a message based on the status or image of the sender,____ are said to have occurred.

A) sender effects
B) noise effects
C) source effects
D) communication effects

Question 78

Which of the following statements about barrier to international communication is true?

A) Source effects occur when the receiver of the message evaluates the message on the basis of the location of the sender.
B) The best way for a firm to overcome cultural barriers is to use local input.
C) Source effects and country of origin effects are always negative.
D) Noise is extremely high in highly developed countries such as the United States.

Question 79

With a concentrated retail sector:

A) a relatively large sales force is required.
B) the orders generated from each sales call can be large.
C) there are long channels of distribution.
D) it is expensive for the firm to make contact with each individual retailer.

Question 80

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

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