Deck 18: Global Marketing and R&D

Question 1

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

Answer 1

False

Question 2

Source effects occur when the receiver of the message evaluates the message based on the context of the message.

Answer 2

False

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

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

Question 5

Import agents are typically limited to independent trading houses.

Question 6

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 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

Markets can be segmented in only one way-by sociocultural factors.

Question 12

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

Question 13

A push strategy makes sense when distribution channels are short.

Question 14

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

Question 15

In highly developed countries, in the context of communication, noise tends to be low.

Question 16

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

Question 17

Four elements comprise the marketing mix: product attributes, distribution strategy, communication strategy, and pricing strategy.

Question 18

Products sell well when their attributes match consumer needs.

Question 19

In a concentrated retail system, there are many retailers, none of which has a significant share of the market.

Question 20

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

Question 21

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 22

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 23

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

A) demographic analysis.
B) market segmentation.
C) product mix.
D) consumer behavior analysis.

Question 24

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 25

Marriott owns many brands of hotels, such as W Hotels, which is a luxury brand; Westin hotels, which is an upscale brand; and Fairfield Inns, which are midscale. Marriott is marketing its hotels based on

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

Question 26

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

Question 27

Consumers in the most developed countries are

A) typically most interested in products that have been developed with the lowest common denominator in mind.
B) typically willing to sacrifice their preferred product attributes for lower prices.
C) often prefer globally standardized products.
D) often not willing to sacrifice their preferred attributes for lower prices.

Question 28

Predatory pricing refers to the fact that a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market. 

Question 29

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 30

"Creative destruction" makes it important for companies to stay on the leading edge of technology.

Question 31

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 32

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 33

Firms pursuing a multipoint pricing strategy on an international scale will price low worldwide in an attempt to build global sales volume as rapidly as possible.

Question 34

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 35

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 36

Elasticity of demand for a product in a given country is determined by income level and competitive conditions.

Question 37

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 38

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 39

Differences in ________ constrain the globalization of markets.

A) technical standards
B) measurement systems
C) manufacturing processes
D) energy costs

Question 40

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 41

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 42

The way a product is delivered is determined by the

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

Question 43

There is a tendency for greater retail concentration in

A) rural areas.
B) developed countries.
C) urban areas.
D) developing countries.

Question 44

________ is one that is difficult for outsiders to access.

A) A concentrated retail system
B) An exclusive distribution channel
C) A private distribution channel
D) A fragmented retail system

Question 45

Which of the following countries has a concentrated retail system?

A) China
B) the United States
C) Japan
D) India

Question 46

Channel ________ 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) exclusivity
B) knowledge
C) quality
D) skill

Question 47

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

A) channel quality.
B) marketing mix.
C) channel length.
D) experience curve.

Question 48

The Duchess and the Duke sells through an import agent, a wholesaler, and a retailer. In this case,

A) a long channel exists.
B) the retail system must be concentrated.
C) a short channel exists.
D) there is no channel.

Question 49

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

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

Question 50

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

A) fragmented
B) intermarket
C) concentrated
D) exclusive

Question 51

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

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

Question 52

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 elite, upper class customers.
D) it is often difficult for a new firm to get access to shelf space in supermarkets.

Question 53

A channel is considered to be very short if the producer sells

A) through an import agent.
B) through a wholesaler.
C) through a retailer.
D) directly to the consumer.

Question 54

________ 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 55

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 56

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 57

In a concentrated retail system

A) there are many retailers who have a major share of the market.
B) there are many retailers, none 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

What kind of retail system does Japan have?

A) fragmented
B) direct
C) indirect
D) concentrated

Question 59

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

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

Question 60

________ distribution channel is one that is difficult for outsiders to access.

A) A selective
B) An intensive
C) A exclusive
D) A multichannel

Question 61

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 62

A firm that depends more on mass media advertising to communicate the marketing message to potential consumers is using a ________ strategy.

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

Question 63

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

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

Question 64

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

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

Question 65

The "Swiss Made" label has leveraged several watchmakers (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 66

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

A) experience curve pricing.
B) predatory pricing.
C) competitive pricing.
D) multipoint pricing.

Question 67

French wine, Italian clothes, and German luxury cars all benefit from

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

Question 68

When a company charges whatever the market will bear, the company is using

A) strategic pricing.
B) price discrimination.
C) a push strategy.
D) a pull strategy.

Question 69

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

A) corporate advertising
B) culturally significant advertising
C) marketing strategies
D) standardized advertising

Question 70

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 71

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

A) push
B) globalization
C) pull
D) localization

Question 72

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 73

The probability of effective communications is reduced by

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

Question 74

A push strategy is appropriate when

A) there are many choices of electronic media.
B) the firm is selling consumer goods.
C) distribution channels are long.
D) the firm is selling complex new products.

Question 75

A pull strategy should be used when

A) the firm is selling industrial products.
B) the distribution channels are short.
C) the distribution channels are long.
D) few print or electronic media are available.

Question 76

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 77

Which of the following statements is true?

A) Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a push strategy.
B) Mass communication is costlier for firms in consumer goods industries that are trying to sell to a large segment of the market.
C) Direct selling may be the only way to reach consumers in poor nations with low literacy levels.
D) Firms that sell industrial products or other complex products favor a pull strategy.

Question 78

Which of the following statements about barriers 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

Which of the following is an argument that supports global advertising?

A) Standardized advertising lowers the costs of value creation by spreading the fixed costs of developing the advertisements over many countries.
B) Because of concerns about the scarcity of creative talent, some feel that smaller efforts will produce better results than one large effort to develop a campaign.
C) Even though there are cultural differences between nations, a single advertising theme that is effective worldwide can be easily developed.
D) Standardized advertising may be implemented even in the face of advertising regulations.

Question 80

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 United States meaning of the word sucks was well known in the United Kingdom 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.