Deck 12: International Marketing and RD

Question 1

As a firm builds its accumulated production volume over time,unit costs fall.Price comes into the picture due to aggressive pricing,along with aggressive advertising and promotion.The pricing approach designed to increase volume through these measures is called:

A)aggressive pricing.
B)progressive pricing.
C)experience curve pricing.
D)market-based pricing.

Answer 1

C

Question 2

Research shows that international marketers who attempt to change consumer preferences with well-known brands run the risk of a major backlash to the decision.

Answer 2

True

Question 3

The continuing persistence of cultural and economic differences between nations acts as a brake on any trend towards the standardisation of consumer tastes and preferences across nations.

Answer 3

True

Question 4

NPD is an abbreviation for:

A)No Pay Day.
B)Net Present Debt.
C)New Polymer Design.
D)New Product Development.

Question 5

One way to achieve integration between R&D and production is to create:

A)cross-functional teams.
B)cross-systems teams.
C)cross-supplier teams.
D)cross-structural teams.

Question 6

The main decision with regard to a communications strategy is the choice between a push strategy and a pull strategy.A push strategy therefore emphasises:

A)mass media advertising to communicate the message.
B)personal selling to potential customers.
C)intermediaries in the selling process.
D)direct one-on-one selling.

Question 7

Price is said to elastic when a small change in price produces a large change in demand.

Question 8

Going global for jeans company Levi Strauss has also meant the company now customises their product offerings.

Question 9

The effectiveness of a firm's international communication can be jeopardised by three potentially critical variables,namely:

A)expertise,competencies and the ability to sell.
B)channel intermediaries-length,depth and breadth.
C)cultural barriers,source effects and noise levels.
D)retail concentration-fragmented,integrated and exclusive.

Question 10

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

Question 11

DVD equipment manufactured for sale in the United States will not play DVDs recorded on equipment manufactured for sale in Australia,New Zealand and Europe (and vice versa).

Question 12

As was the case for Kodak and Fiji Photo,the pricing strategy known as _________ become an issue when these two international businesses were in competition against each other.

A)strategic pricing
B)predatory pricing
C)multipoint pricing
D)market-based pricing

Question 13

With regard to marketing communications,a pull strategy emphasises personal selling to potential customers.

Question 14

A choice of distribution strategy determines which channel the firm will use to reach potential consumers.For Apple Computers in Australia,they:

A)sell directly to the consumer.
B)go through a wholesaler,then a retailer.
C)use an import agent.
D)sell through the internet alone.

Question 15

Price is said to be inelastic when a large change in price produces only a small change in demand.

Question 16

International communication occurs whenever a firm uses a marketing message to sell its products in another country.The effectiveness of a firm's international communication can be jeopardised by all but one of the following variables:

A)cultural barriers.
B)source and country of origin effects.
C)communication 'noise' levels.
D)push and pull strategies.

Question 17

The key international marketing strategy deployed by Apple Computers in Australia is to sell through the internet alone.

Question 18

Ideas for new products are stimulated by the interactions of scientific research,demand conditions and competitive conditions.Other things being equal,the rate of new product development seems to be greater in countries where money is spent on basic and applied R&D,where underlying demand is strong,where consumers are affluent and where:

A)acceptance rates are high.
B)rejection rates are low.
C)competition is intense.
D)government regulations are weak.

Question 19

The pricing strategy that is used as a competitive weapon to drive weaker competitors out of a national market is known as:

A)strategic pricing.
B)predatory pricing.
C)multipoint pricing.
D)market-based pricing.

Question 20

With regard to marketing communications,a push strategy emphasises mass media advertising to communicate the message.

Question 21

In some countries such as Australia,the retail system is very concentrated,but in others it is fragmented.A fragmented retail system is one in which there are:

A)many retailers,no one of which has a major share of the market.
B)few retailers that supply most of the market.
C)target returns-on-investment pricing.
D)cash rebates.

Question 22

When managers in an international business consider market segmentation in international markets,they need to be cognisant of two main issues: the differences between countries in the structure of market segments and:

A)the existence of segments that transcend national borders.
B)knowledge and past experience in international markets.
C)product features and price.
D)quality,cost,time and delivery.

Question 23

In 2001,Suncorp Metway Ltd,a Queensland insurance and banking group,acquired GIO Insurance from AMP.This is called _________ strategy.

A)an integration
B)a fire sale
C)an acquisition
D)a diversification

Question 24

While McDonald's quality,service,cleanliness and value might not be unique,it does form the basis of a system that involves crew focusing on:

A)customer numbers.
B)customer beliefs.
C)competitive influences.
D)customer satisfaction.

Question 25

A typical rule of thumb in full-service restaurants is that the cost of purchasing the food ingredients represents about one-fifth of the price of the meal.This is an example of:

A)service exploitation of customers.
B)identification of the relationship between physical goods costs and services costs.
C)price as a leading indicator in the restaurants.
D)the price the customer is willing to pay for all of the variables in the product-service restaurant environment.

Question 26

Although a firm that is successful at developing new products may earn enormous returns,new product development has a:

A)high failure rate.
B)high success rate.
C)low costs relative to returns.
D)limited time to market.

Question 27

Price discrimination exists whenever consumers in different countries:

A)do not understand purchasing power parity.
B)try to use the law of one price.
C)are charged different prices for the same product.
D)are exposed to predatory pricing.

Question 28

For BMW,the two basic components of a customer's evaluation of a vehicle's attributes are:

A)expectations and customer contact.
B)expectations and actual experience.
C)intangibility and inconsistency.
D)experience and credence.

Question 29

Two conditions are necessary for profitable price discrimination:

A)the firm must be able to keep its national markets separate;different price elasticities of demand in different countries must occur.
B)pricing is aimed at giving a company a competitive advantage over its rivals;pricing products must be at or below fair market value.
C)the pricing strategy must have an impact on a rival's pricing strategy;aggressive pricing should exist to realise experience curve economies.
D)regulatory influences on pricing must be present;antidumping protections must protect the seller firms.

Question 30

The first macro-environmental force that product marketers typically monitor is:

A)international political-legal environment.
B)technological environment.
C)economic issues.
D)population issues.

Question 31

A South Australian wine producer facing declining sales at home set up a new channel of distribution to sell wine in Japan and Europe.This strategy is called:

A)exclusive buy-in.
B)channel quality.
C)diversification.
D)market development.

Question 32

R&D is an abbreviation for:

A)Risks & Divestment.
B)Rewards & Discipline.
C)Review & Define.
D)Research & Development.

Question 33

Toyota uses its Lexus division to sell high-priced luxury cars to high-income consumers,while selling its entry-level models,such as the Toyota Corolla,to lower-income consumers.This is an example of targeting to which type of market segments:

A)socioeconomic
B)psychographic
C)geopolitical
D)social/cultural

Question 34

According to the generic value chain,the process of obtaining the various inputs needed for each of the firm's primary activities is called:

A)inbound logistics.
B)procurement.
C)technology development.
D)operations.

Question 35

If Arnott's biscuits (which has products in almost all submarkets)was to use price as a competitive weapon to drive weaker competitors out of the national market,it would be pursuing a ____________tunity.

A)product development
B)mass marketing
C)market penetration
D)predatory pricing

Question 36

Findus,the frozen food division of the Swiss food giant Nestlé,markets fish cakes and fish fingers in Great Britain,and beef bourguignon and coq au vin in France,and vitéllo con funghi and braciola in Italy.This is an example of:

A)cultural differences.
B)product variety.
C)individual tastes.
D)flexibility of service.

Question 37

In some countries such as Australia,the retail system is very concentrated,but in others it is fragmented.In a concentrated retail system:

A)publicity is free while advertising costs are high.
B)the practitioner controls advertising but not publicity.
C)publicity targets multiple publics while advertising targets only consumers.
D)few retailers supply most of the market.

Question 38

The Biotech Company,well known for its low-calorie sweetener,recently added a new low-calorie chocolate substitute product that appeals to the same health-conscious consumers as its sweetener.This strategy is an example of:

A)diversification.
B)tactical marketing.
C)market development.
D)product development.

Question 39

Dulux paints owns and operates 165 retail paint outlets in Australia.This strategy is called:

A)channel length.
B)concentric planning.
C)horizontal integration.
D)conglomerate diversification.

Question 40

Which of the following statements describes a trend in the technological environment?

A)The degree of regulation for technological changes is diminishing.
B)There are a decreasing number of opportunities for innovation.
C)Many companies are putting money into copying competitors rather than innovating.
D)Because there are so many innovations,the time lag between new ideas and their implementation has increased over the last decade.

Question 41

Other things being equal,the rate of new product development seems to be in countries where consumers and consumer groups are:

A)interested.
B)affluent.
C)tolerant.
D)accessible.

Question 42

Invented in Australia,polymer banknotes are now used widely due to their technological innovation,design and:

A)demand.
B)supply.
C)durability.
D)size.

Question 43

One of the main reasons for such high failure rates in new R&D projects is due to:

A)lack of sales predicted.
B)being able to adequately commercialise promising technology.
C)intolerant project managers.
D)funding cuts to viable products.

Question 44

Most developed nations have regulations designed to promote competition and restrict monopoly practices.In Australia,the organisation charged with enforcing competition policy and monitoring predatory pricing is the:

A)Australian Trade Commission (ATC).
B)Australian Centre for Strategic Action (ACSA).
C)Australian Government.
D)Australian Competition and Consumer Commission (ACCC).

Question 45

Public relations typically does not have responsibility for which of the following?

A)monitoring awareness inside and outside the organisation
B)counselling management on policy
C)improving product design and packaging
D)analysing the impact of policies on publics

Question 46

The two pricing strategies that can fall foul of antidumping regulations comprise:

A)predatory and experience curve.
B)strategic and multipoint.
C)discriminatory and cost plus.
D)demand and competitor.

Question 47

Achieving tight integration among R&D,marketing and manufacturing requires the use of:

A)creative individuals.
B)business leaders.
C)virtual organisations.
D)cross-functional teams.

Question 48

If a company wanted to reach a large consumer audience and create a symbolic image or appeal for a new brand,which promotional mix element would probably be used?

A)advertising
B)personal selling
C)sales promotion
D)public relations

Question 49

Advertising may be defined as any:

A)paid forms of non-personal communication about a product,service or company.
B)communications about a product,service or company.
C)communication that moves a product from one level to another level of the distribution channel.
D)personal communication from a company representative to prospective buyers.

Question 50

Two conditions are necessary for profitable price discrimination.First,the firm must be able to keep its national markets separate.The second condition is:

A)multipoint pricing in two or more national markets.
B)different price elasticities of demand in different countries.
C)predatory pricing activities.
D)experience curve pricing.