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1) _____ is/are an element of a firm’s marketing mix. |
Product attributes |
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2) _____ asserted in an article in the Harvard Business Review that modern transportation and communications technologies are facilitating a convergence of certain tastes and preferences among consumers in the more advanced countries of the world. |
Theodore Levitt |
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3) Which of the following is true according to Theodore Levitt’s article in the Harvard Business Review about the globalization of world markets? |
Technology has led to the emergence of global markets for standardized consumer products |
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4) Which of the following is true according to Theodore Levitt’s article in the Harvard Business Review about the globalization of world markets? |
Global corporations operate at low relative costs |
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5) Which of the following is a statement made by Theodore Levitt about the globalization of world markets? |
Global markets for standardized consumer products have emerged on a large scale of magnitude |
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6) Which of the following is true of Theodore Levitt’s arguments concerning the globalization of world markets? |
Modern transportation is facilitating a convergence of tastes and preferences among consumers in advanced countries of the world |
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7) Which of the following is a definition of market segmentation? |
It refers to identifying distinct groups of customers whose needs, wants, and purchasing behavior differ from others |
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8) Which of the following is a goal of market segmentation? |
to optimize the fit between the purchasing behavior of consumers in a given segment and the marketing mix |
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9) Which of the following contradicts Theodore Levitt’s arguments for the globalization of world markets? |
Consumers in most developed countries do not sacrifice preferred attributes for lower prices |
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10) _____ can constrain the globalization of markets. |
Differences in technical standards |
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11) Which of the following is a factor that contributes to greater retail concentration in developed countries? |
number of households with refrigerators and freezers |
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12) The number of intermediaries between the product (or manufacturer) and the consumer is referred to as? |
channel length |
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13) Which of the following is the most important determinant of channel length? |
degree to which the retail system is fragmented |
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14) Which of the following is a characteristic of fragmented retail systems? |
long channels of distribution |
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15) What occurs when the retail sector is very concentrated? |
It makes sense for a firm to deal directly with retailers, cutting out wholesalers |
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16) Which of the following is true about channel quality? |
The quality of retailers is variable in emerging markets and less developed nations |
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17) _____ is one factor that determines the optimal distribution strategy. |
Channel quality |
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18) Which of the following is true of choosing a distribution strategy? |
The optimal distribution strategy is determined by the relative costs and benefits of each alternative, which vary from country to country |
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19) Which of the following is a drawback of longer distribution channels? |
higher prices charged to consumers |
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20) Which of the following is an advantage of longer distribution channels? |
greater market access |
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21) _____ is/are a potentially critical variable that can jeopardize the effectiveness of a firm’s international communication. |
Noise levels |
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22) In terms of communication strategy, _____ refers to the situation when the receiver of a message evaluates the message based on the status or image of the sender. |
source effects |
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23) Source effects are damaging for an international business when? |
potential consumers in a target country have a bias against foreign firms |
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24) In the context of barriers to international communication, _____ refers to the amount of other messages competing for a potential consumer’s attention. |
noise |
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25) Which of the following is true of the barriers to international communication? |
Fewer firms vie for the attention of prospective customers in developing countries, thus the noise level is lower |
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26) Which of the following communication strategies relies primarily on personal selling rather than mass media advertising? |
push strategy |
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27) Which of the following communication strategies relies primarily on mass media advertising as opposed to personal selling? |
pull strategy |
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28) Which kind of strategy do firms in consumer goods industries that are trying to sell to a large segment of the market generally favor? |
pull |
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29) If a firm favors a push strategy, using direct selling to educate potential consumers about the features of its products, what kind of products would it most likely sell? |
industrial products |
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30) _____ allows a firm to educate potential consumers about the features of a product. |
Direct selling |
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31) Which of the following is a drawback of a push strategy? |
It can be expensive when the distribution channel is long |
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32) Which of the following marketing strategies relies on access to advertising media? |
pull strategy |
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33) A push strategy is emphasized when? |
distribution channels are short |
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34) Pull strategies tend to be emphasized? |
for consumer goods |
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35) Which of the following is an argument in favor of standardized advertising? |
Many brand names are global |
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36) Which of the following is an argument against standardized advertising? |
Advertising regulations may block implementation of standardized advertising |
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37) _____ exists whenever consumers in different countries are charged different prices for the same product. |
Price discrimination |
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38) Which of the following is true of price discrimination? |
It involves charging whatever the market will bear |
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39) Which of the following is necessary for a firm to ensure profitable price discrimination? |
The firm must be able to keep its national markets separate |
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40) If a firm is unable to keep its national markets separate, individuals or businesses may undercut its attempt at price discrimination by engaging in? |
arbitrage |
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41) In which of the following conditions does arbitrage occur? |
When a firm purchases products in a country where prices are lower and resells them in a country where prices are higher |
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42) A measure of the responsiveness of demand for a product to changes in price is known as? |
price elasticity of demand |
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43) What kind of demand is seen when a small change in price produces a large change in demand? |
elastic |
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44) What kind of demand is seen when a large change in price produces only a small change in demand? |
inelastic |
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45) Which of the following is true of price discrimination as a part of international pricing strategy? |
A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense |
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46) Which of the following is true of price elasticity of demand? |
Price elasticity tends to be greater in countries with low income levels |
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47) _____ refers to the use of price as a competitive weapon to drive weaker competitors out of a national market. |
Predatory pricing |
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48) _____ 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. |
Multipoint pricing |
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49) Which of the following is true of multipoint pricing? |
It involves aggressive pricing in one market to elicit a competitive response from a rival in another market |
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50) If a firm prices 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? |
experience curve pricing |
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51) Which of the following pricing strategies can run afoul of antidumping regulations? |
experience curve pricing |
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52) 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. |
dumping |
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53) Which industry is often thought of as one in which global standardization of the marketing mix is the norm? |
financial services |
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54) The _____ has resulted in a dramatic shortening of product life cycles. |
acceleration of the pace of technological change |
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55) Other things being equal, the rate of new-product development seems to be greater in countries where? |
competition between firms is intense |
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56) Which of the following factors creates a potential market for new products? |
affluent consumers |
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57) One consequence of tight cross-functional integration between research and development (R&D), production, and marketing is? |
keeping development costs in check |
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58) Which of the following is an important attribute for a product development team to function effectively and meet all of its development milestones? |
It should be led by a "heavyweight" project manager who has high status within the organization |
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59) The members of a cross-functional team should have? |
the ability to contribute functional expertise |
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