Question 1

A country that has ________ creates a potential market for new products.
A) rising inflation
B) affluent consumers
C) lack of competition among firms
D) firms suffering from first-mover disadvantages
E) declining demand

Accepted Answer

Affluent consumers have more disposable income, which creates a potential market for new products as they are more likely to spend on new and innovative offerings.

Question 2

Demand is labeled as ________ when a large change in price produces only a small change in demand.
A) flexible
B) consistent
C) inelastic
D) elastic
E) dynamic

Accepted Answer

Inelastic demand occurs when a significant change in price results in only a small change in the quantity demanded.

Question 3

Multipoint pricing occurs when a company
A) aggressively prices in one market to elicit a competitive response from a rival in another market.
B) prices its products at a loss in order to drive out competitors from the market.
C) buys products at a cheaper rate in one country to sell at a higher price in another country.
D) allows markets to determine the pricing of a product.
E) prices two similar products at low and high prices in order to boost sales of the lower priced products.

Accepted Answer

Multipoint pricing involves setting prices in one market with the strategic intention of influencing a competitor's pricing or market behavior in another market.

Question 4

Immediately following World War II, what country ranked the highest in spending on R&D, had affluent customers and intense competition, and, as a result, was the center of new product development?
A) Japan
B) United States
C) China
D) Germany
E) Canada

Accepted Answer

The United States ranked the highest in spending on R&D, had affluent customers and intense competition, and, as a result, was the center of new product development immediately following World War II.

Question 5

Mint-Microprocessors Corp. learned that its biggest competitor dropped prices dramatically in the European market. In response, Mint-Microprocessors decided to do the same in Asia. This resulted in the competitor minimizing its aggressive stance and returning to earlier price points. This is an example of ________ pricing.
A) dumping
B) predatory
C) leader
D) multipoint
E) prescriptive

Accepted Answer

This is an example of multipoint pricing, where a firm's pricing strategy in one market affects its rival's pricing strategy in another market.

Question 6

________ refers to the use of price as a competitive weapon to drive weaker competitors out of a national market.
A) Multipoint pricing
B) Predatory pricing
C) Leader pricing
D) Price discrimination
E) Price skimming

Accepted Answer

Predatory pricing is a pricing strategy in which a company sets its prices below cost in order to drive competitors out of the market.

Question 7

If a firm prices its product low worldwide in an attempt to build global sales volume as rapidly as possible, even if this means taking large losses initially, what kind of strategy is it pursuing?
A) experience curve pricing
B) multipoint pricing
C) economy pricing
D) predatory pricing
E) premium pricing

Accepted Answer

The firm is pursuing an experience curve pricing strategy, which involves setting low prices to increase sales volume quickly, thereby gaining experience and reducing costs over time, even if it means incurring initial losses.

Question 8

Connor works for Smart Snacks Inc. based in California and needs to determine where products are bought by customers who live in Europe. Connor is concerned with the ________ strategy of this product.
A) communication
B) distribution
C) pricing
D) product
E) manufacturing

Accepted Answer

Connor is concerned with the distribution strategy, as he needs to determine where products are bought by customers in Europe, which involves the logistics and channels through which the product reaches the customers.

Question 9

What is an important attribute for a product development team to function effectively and meet all of its development milestones?
A) It should be led by a "heavyweight" project manager who has high status within the organization.
B) The team members should always be physically in diverse locations in order to cover multiple bases.
C) It should have preset processes for communication and conflict resolution that are developed by top management.
D) It should have at least three members from each key function included.
E) Its team members should be a part of more than two cross-functional teams.

Accepted Answer

A "heavyweight" project manager with high status can effectively coordinate and lead the team, ensuring that milestones are met and resources are efficiently utilized.

Question 10

What has created a dramatic shortening of product life cycles today?
A) acceleration of the pace of technological change
B) lack of domestic competition
C) affluence of customers
D) increase in the number of educated consumers
E) removal of trade barriers

Accepted Answer

The acceleration of the pace of technological change leads to rapid innovation and development, causing products to become obsolete faster, thus shortening their life cycles.

Question 11

Jenna works for an energy company in Houston. Her company plans to develop operations overseas, and she is determining the role of publicity in that market. She knows that publicity plays a major role in the U.S., but she isn't sure if this is also true overseas. Jenna is concerned with the ________ strategy of her company.
A) pricing
B) production
C) product
D) distribution
E) communication

Accepted Answer

Jenna is concerned with the communication strategy of her company, as she is evaluating the role of publicity, which is a form of communication, in the overseas market.

Question 12

In the context of strategic pricing, ________ takes place whenever a firm sells a product for a price that is less than the cost of producing it.
A) inflation
B) dumping
C) arbitrage
D) speculation
E) outsourcing

Accepted Answer

Dumping occurs when a firm sells a product in a foreign market at a price lower than its production cost, often to gain market share or eliminate competition.

Question 13

Which industry is often thought of as one in which global standardization of the marketing mix is the norm?
A) electronics
B) fashion
C) pharmaceutical
D) financial services
E) heavy machinery

Accepted Answer

The answer of Which industry is often thought of as...

Question 14

Other things being equal, the rate of new-product development seems to be greater in countries where
A) more money is spent on marketing instead of applied research.
B) consumers demand cheaper products since they are not affluent.
C) competition between firms is intense.
D) pioneering costs outweigh the disadvantages of being a second mover.
E) a large change in prices of a product only produces a small change in demand.

Accepted Answer

Intense competition between firms drives innovation and the development of new products as companies strive to differentiate themselves and capture market share.

Question 15

The members of a cross-functional team should have
A) low standing within their respective functions.
B) the ability to put functional and national advocacy first.
C) the ability to contribute functional expertise.
D) the ability to solely focus on the ongoing work of their respective functions.
E) the ability to work on several projects simultaneously.

Accepted Answer

Members of a cross-functional team should have the ability to contribute functional expertise, as the purpose of such a team is to bring together diverse skills and knowledge from different functions to achieve a common goal.

Question 16

What is a characteristic associated with the price elasticity of demand?
A) The price elasticity of demand is unrelated to the competitive conditions in a country.
B) Demand is said to be inelastic when a small change in price produces a large change in demand.
C) Demand is said to be elastic when a large change in price produces a small change in demand.
D) Price elasticity tends to be greater in countries with low income levels.
E) The elasticity of demand is inversely proportional to the number of competitors offering a particular product.

Accepted Answer

Price elasticity tends to be greater in countries with low income levels because consumers are more sensitive to price changes when they have less disposable income.

Question 17

Health Born Cereal Corp. wants to build its global sales volume quickly. It enters all markets at the lowest price possible it can charge, which undercuts the prices of all its competition. The company knows this might result in initial losses, but in a few years, it should be making substantial profits with a cost advantage over everyone else. This is an example of
A) experience curve pricing.
B) multipoint pricing.
C) market-based pricing.
D) dynamic pricing.
E) price skimming.

Accepted Answer

Experience curve pricing involves setting low prices to quickly build sales volume, gain market share, and achieve cost advantages over competitors, even if it means incurring initial losses.

Question 18

Michaela lives in New York where there are hundreds of different shoe stores to shop at, which allows her to always find the best price on her favorite shoes. In this situation, the presence of many competitors results in
A) the use of predictive analytics.
B) a concentrated retail system.
C) a high elasticity of demand.
D) the use of prescriptive analytics.
E) inelastic demand.

Accepted Answer

The presence of many competitors allows Michaela to find the best price, indicating that demand is sensitive to price changes, which is characteristic of high elasticity of demand.

Question 19

One consequence of tight cross-functional integration between research and development (R&D), production, and marketing is
A) maximizing the time to market a product.
B) letting R&D dictate terms to marketing and production.
C) keeping development costs in check.
D) ensuring that product development projects are driven by organizational needs.
E) increasing selling costs and maximizing profits.

Accepted Answer

Tight cross-functional integration helps in coordinating efforts across departments, which can lead to more efficient processes and cost control during product development.

Question 20

A business is experiencing ________ demand when a small change in price produces a large change in demand for a product.
A) elastic
B) inelastic
C) relative
D) rigid
E) dynamic

Accepted Answer

Elastic demand occurs when a small change in price leads to a significant change in the quantity demanded, indicating that consumers are sensitive to price changes.

Quiz 16: Global Marketing and RD

A country that has ________ creates a potential market for new products.

Demand is labeled as ________ when a large change in price produces only a small change in demand.

Multipoint pricing occurs when a company

Immediately following World War II, what country ranked the highest in spending on R&D, had affluent customers and intense competition, and, as a result, was the center of new product development?

________ refers to the use of price as a competitive weapon to drive weaker competitors out of a national market.

If a firm prices its product low worldwide in an attempt to build global sales volume as rapidly as possible, even if this means taking large losses initially, what kind of strategy is it pursuing?

Connor works for Smart Snacks Inc. based in California and needs to determine where products are bought by customers who live in Europe. Connor is concerned with the ________ strategy of this product.

What is an important attribute for a product development team to function effectively and meet all of its development milestones?

What has created a dramatic shortening of product life cycles today?

In the context of strategic pricing, ________ takes place whenever a firm sells a product for a price that is less than the cost of producing it.

Which industry is often thought of as one in which global standardization of the marketing mix is the norm?

Other things being equal, the rate of new-product development seems to be greater in countries where

The members of a cross-functional team should have

What is a characteristic associated with the price elasticity of demand?

Michaela lives in New York where there are hundreds of different shoe stores to shop at, which allows her to always find the best price on her favorite shoes. In this situation, the presence of many competitors results in

One consequence of tight cross-functional integration between research and development (R&D) , production, and marketing is

A business is experiencing ________ demand when a small change in price produces a large change in demand for a product.