Question 1

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

Accepted Answer

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

Question 2

If a firm is unable to keep its national markets separate,individuals or businesses may undercut its attempt at price discrimination by engaging in:

Accepted Answer

If the firm is not able to keep its national markets separate,individuals or businesses may undercut its attempt at price discrimination by engaging in arbitrage.

Question 3

Fuji launched an aggressive competitive attack against Kodak in the U.S.company's home market.Kodak's response was to aggressively cut prices in Fuji's largest market,Japan.This example serves to show the phenomenon of _____.

Accepted Answer

Multipoint pricing refers to the fact a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market.Aggressive pricing in one market may elicit a competitive response from a rival in another market.

Question 4

A measure of the responsiveness of demand for a product to changes in price is called:

Accepted Answer

The price elasticity of demand is a measure of the responsiveness of demand for a product to change in price.

Question 5

Pull strategies tend to be emphasized for:

Accepted Answer

Pull strategies tend to be emphasized for consumer goods.

Question 6

The two conditions that are necessary for profitable price discrimination are:

Accepted Answer

Two conditions are necessary for profitable price discrimination.First,the firm must be able to keep its national markets separate.The second necessary condition for profitable price discrimination is different price elasticities of demand in different countries.

Question 7

Which of the following is NOT an aspect of strategic pricing?

Accepted Answer

The concept of strategic pricing has three aspects: predatory pricing,multipoint pricing,and experience curve pricing.

Question 8

Which of the following is true of price discrimination?

Accepted Answer

Price discrimination exists whenever consumers in different countries are charged different prices for the same product,or for slightly different variations of the product.It involves charging whatever the market will bear.It can help a company maximize its profits.It makes economic sense to charge different prices in different countries.

Question 9

Demand is said to be _____ when a small change in price produces a large change in demand.

Accepted Answer

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

Question 10

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

Accepted Answer

Predatory pricing is the use of price as a competitive weapon to drive weaker competitors out of a national market.Once the competitors have left the market,the firm can raise prices and enjoy high profits.

Question 11

Which of the following is an argument for standardized advertising?

Accepted Answer

The support for global advertising is threefold.First,it has significant economic advantages.Second,there is the concern that creative talent is scarce and so one large effort to develop a campaign will produce better results than 40 or 50 smaller efforts.A third justification for a standardized approach is that many brand names are global.

Question 12

In an international context,_____ 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,or for slightly different variations of the product.

Question 13

Which of the following is an argument against standardized advertising?

Accepted Answer

There are two main arguments against globally standardized advertising.First,cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.Second,advertising regulations may block implementation of standardized advertising.

Question 14

A push strategy is emphasized when:

Accepted Answer

Push strategies tend to be emphasized when distribution channels are short.

Question 15

A firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market.This refers to:

Accepted Answer

Multipoint pricing refers to the fact a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market.Aggressive pricing in one market may elicit a competitive response from a rival in another market.

Question 16

Many firms pursuing a(n)_____ strategy on an international scale will price low worldwide to build global sales volume as rapidly as possible,even if this means taking large losses initially.

Accepted Answer

Many firms pursuing an experience curve pricing strategy on an international scale will price low worldwide when attempting to build global sales volume as rapidly as possible,even if this means taking large losses initially.

Question 17

_____ occurs when an individual or business capitalizes on a price differential for a firm's product between two countries by purchasing the product in the country where prices are lower and reselling it in the country where prices are higher.

Accepted Answer

Arbitrage occurs when an individual or business capitalizes on a price differential for a firm's product between two countries by purchasing the product in the country where prices are lower and reselling it in the country where prices are higher.

Question 18

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

Accepted Answer

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

Question 19

101.The optimal mix of push and pull strategies depends on product type and

Accepted Answer

The optimal mix between push and pull strategies depends on product type and consumer sophistication,channel length,and media sophistication.

Question 20

Which of the following is an aspect of international pricing strategy?

Accepted Answer

The three aspects of international pricing strategy are: price discrimination,strategic pricing,and regulatory factors.

Quiz 15: Global Marketing and RD