Question 1

What is an argument against standardized advertising?

Accepted Answer

The answer of What is an argument against standardized advertising?
...

Question 2

A ________ strategy relies primarily on mass media advertising as opposed to personal selling.

Accepted Answer

A pull strategy focuses on creating demand for a product through mass media advertising and consumer promotions to encourage consumers to request the product from retailers.

Question 3

If a firm favors a push strategy, using direct selling to educate potential consumers, which of these products would it most likely sell?

Accepted Answer

The answer of If a firm favors a push strategy,...

Question 4

One argument in favor of standardized advertising is that

Accepted Answer

Many brand names are global, which supports standardized advertising as it allows companies to maintain a consistent brand image and message across different markets.

Question 5

________ allows a firm to educate potential consumers about the features of a product.

Accepted Answer

The answer of ________ allows a firm to educate potential...

Question 6

Pull strategies tend to be emphasized

Accepted Answer

Pull strategies are often used for consumer goods to create demand directly from consumers, encouraging them to seek out the product, which in turn pulls the product through the distribution channel.

Question 7

In the context of barriers to international communication, ________ refers to the amount of other messages competing for a potential consumer's attention.

Accepted Answer

Noise refers to the amount of other messages competing for a potential consumer's attention, which can interfere with the communication process.

Question 8

________ exists whenever consumers in different countries are charged different prices for the same product.

Accepted Answer

Price discrimination exists whenever consumers in different countries are charged different prices for the same product.

Question 9

Companies that use a ________ marketing strategy rely on access to advertising media.

Accepted Answer

A pull marketing strategy relies on advertising and consumer promotion to create demand from consumers, encouraging them to seek out the product, thus requiring access to advertising media.

Question 10

When Happy Foods decided to enter the highly developed Italian market, it found that it competed with hundreds of brands. In terms of communication strategy, Happy Foods should remember that in a highly developed market,

Accepted Answer

In a highly developed market, there is a lot of competition and advertising, leading to high noise levels, which can make it difficult for a brand's message to stand out.

Question 11

What is a drawback of a push strategy?

Accepted Answer

A push strategy can be expensive when the distribution channel is long because it involves promoting products to wholesalers or retailers, which can incur significant costs, especially if the channel involves multiple intermediaries.

Question 12

Which communication strategy relies primarily on personal selling rather than mass media advertising?

Accepted Answer

A push strategy relies on personal selling and direct promotion to encourage intermediaries to carry and sell products to consumers.

Question 13

Marina is on vacation in Jamaica and buys a bottle of rum for about half the price she would pay for the same bottle at home. The rum isn't on sale in Jamaica but is priced lower because that's the price the market will bear. What is this an example of?

Accepted Answer

This is an example of price discrimination, where the same product is sold at different prices in different markets based on what consumers are willing to pay.

Question 14

A measure of the responsiveness of demand for a product to a change in price is known as

Accepted Answer

Price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good.

Question 15

Arbitrage occurs when a firm

Accepted Answer

Arbitrage involves taking advantage of price differences in different markets, such as buying products in a country where they are cheaper and selling them in a country where they are more expensive.

Question 16

When considering barriers to international communication, companies should be aware that

Accepted Answer

The answer of When considering barriers to international communication, companies...

Question 17

A company would be likely to use a push strategy when

Accepted Answer

Distribution channels are short when a company uses a push strategy.

Question 18

Lisette owns a shoe store on the border of France. Due to price discrimination, she can buy Louboutin leather boots in Italy at a lower cost than purchasing them from her local French supplier, so once a month she drives to Italy and buys boots to resell at her store. What is this an example of?

Accepted Answer

This is an example of arbitrage, where Lisette takes advantage of the price difference between two markets (Italy and France) to buy low in one market and sell high in another.

Question 19

What must occur for a firm to ensure profitable price discrimination?

Accepted Answer

For profitable price discrimination, a firm must be able to keep its markets separate to prevent arbitrage, where consumers buy at a lower price in one market and sell at a higher price in another.

Question 20

Super Chill Ice Cream Company has a new flavor and wants to promote it to as many people as they can as quickly as possible. What kind of strategy should the company use?

Accepted Answer

A pull strategy focuses on creating demand for a product by promoting it directly to consumers, encouraging them to seek out the product, which is ideal for quickly promoting a new ice cream flavor.

Quiz 16: Global Marketing and RD