Which of the following functions of an international business is required to create new products?
answer
Research and development
question
Which of the following is true of the marketing and research and development (R&D) departments in an international firm?
answer
A major contributor to the success of new-product introductions is a close relationship between marketing and R&D.
question
The _____ refer(s) to choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets.
answer
marketing mix
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Which of the following is an element of a firm's marketing mix?
answer
Product attributes
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Who among the following 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?
answer
Theodore Levitt
question
Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets?
answer
Technology has led to the emergence of global markets for standardized consumer products.
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Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets?
answer
Multinational corporations operate at low relative costs.
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Which of the following is a statement made by Theodore Levitt about the globalization of world markets?
answer
Global markets for standardized consumer products have emerged on a large scale of magnitude.
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Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?
answer
The rise of global media phenomenon seems to support Levitt's argument.
question
Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?
answer
Modern transportation is facilitating a convergence of tastes and preferences among consumers in advanced countries of the world.
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Which of the following is true of Theodore Levitt's arguments concerning globalization of world markets?
answer
Levitt's argument holds true for basic industrial products, such as steel, bulk chemicals, and semiconductor chips but not for consumer goods markets.
question
Which of the following factors constrain a firm's ability to sell a standardized product to a global market using a standardized marketing strategy?
answer
Differences in product and technical standards
question
_____ refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways.
answer
Market segmentation
question
Which of the following is a definition of market segmentation?
answer
It refers to identifying distinct groups of customers whose purchasing behavior differs from others.
question
Which of the following is a sociocultural factor that is used to segment markets?
answer
Values
question
Which of the following is a goal of market segmentation?
answer
To optimize the fit between the purchasing behavior of consumers in a given segment and the marketing mix
question
Which of the following is a reason why firms need to adjust their marketing mix from segment to segment?
answer
Different segments exhibit different patterns of purchasing behavior.
question
Which of the following is true of market segmentation?
answer
For a segment to transcend national borders, consumers in that segment must have some compelling similarities along important dimensions.
question
Which of the following is true of a product?
answer
A product can be viewed as a bundle of attributes.
question
In terms of the factors affecting product attributes, the impact of _____ is particularly important in foodstuffs and beverages.
answer
tradition
question
In terms of the influence of cultural differences on product attributes, which of the following is evidence of the trends that Theodore Levitt described?
answer
Tastes and preferences becoming cosmopolitan
question
Which of the following is true of the influence of cultural differences on product attributes?
answer
The impact of tradition is important in foodstuffs and beverages.
question
Firms based in _____ countries tend to build a lot of extra performance attributes into their products.
answer
highly developed
question
Which of the following contradicts Theodore Levitt's arguments for the globalization of world markets?
answer
Consumers in most developed countries do not sacrifice preferred attributes for lower prices.
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Which of the following is true of the influence of economic development on consumer preferences?
answer
Consumers in developed nations are willing to pay more for products that have additional features customized to their tastes.
question
Which of the following factors constrains the globalization of markets?
answer
Difference in technical standards
question
A _____ refers to the means that a firm chooses for delivering a product to its consumer.
answer
distribution strategy
question
In a(n) _____ retail system, a few retailers supply most of the market.
answer
concentrated
question
A(n) _____ retail system is one in which there are many retailers, no one of which has a major share of the market.
answer
fragmented
question
Which of the following is a basis for the differences in retail concentration in various countries?
answer
Tradition
question
Which of the following is a factor that has contributed to greater retail concentration in developed countries?
answer
An increase in car ownership
question
Which of the following is a factor that contributes to greater retail concentration in developed countries?
answer
Number of households with refrigerators and freezers
question
The number of intermediaries between the product (or manufacturer) and the consumer is referred to as _____.
answer
channel length
question
Which of the following is the most important determinant of channel length?
answer
The degree to which the retail system is fragmented
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_____ retail systems tend to promote the growth of wholesalers to serve retailers, which lengthens distribution channels.
answer
Fragmented
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Which of the following is true about fragmented retail systems?
answer
It makes economic sense for the firm to sell to the wholesalers and the wholesalers to deal with the retailers.
question
Which of the following is a characteristic of fragmented retail systems?
answer
Long channels of distribution
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When the retail sector is very concentrated:
answer
it makes sense for a firm to deal directly with retailers, cutting out wholesalers.
question
When the retail sector is very concentrated:
answer
the orders generated from each sales call can be large.
question
Which of the following factors helps a firm shorten channel length?
answer
The entry of large discount superstores
question
A(n) _____ distribution channel is one that is difficult for outsiders to access.
answer
exclusive
question
Which of the following is true of distribution channel exclusivity?
answer
In Japan, relationships among manufacturers, wholesalers, and retailers often go back decade.
question
_____ refers to the expertise, competencies, and skills of established retailers in a nation, and their ability to sell and support the products of international businesses.
answer
Channel quality
question
Which of the following is true about channel quality?
answer
The quality of retailers is variable in emerging markets and less developed nations.
question
Which of the following is a factor that determines the optimal distribution strategy?
answer
Channel quality
question
Which of the following is true of choosing a distribution strategy?
answer
The optimal distribution strategy is determined by the relative costs and benefits of each alternative, which vary from country to country.
question
Which of the following is a drawback of longer distribution channels?
answer
Greater aggregate markups
question
Which of the following is a drawback of longer distribution channels?
answer
Higher prices that consumers are charged
question
Which of the following is an advantage of longer distribution channels?
answer
Greater market access
question
Which of the following is an advantage of longer distribution channels?
answer
Reduced selling costs in fragmented retail sectors
question
Which of the following is a potentially critical variable that can jeopardize the effectiveness of a firm's international communication?
answer
Noise levels
question
The best way for a firm to overcome cultural barriers is to:
answer
develop cross-cultural literacy.
question
Which of the following factors limits a firm's ability to use the same marketing message?
answer
Cultural differences
question
In terms of communication strategy, _____ refer(s) to the situation when the receiver of a message evaluates the message based on the status or image of the sender.
answer
source effects
question
When are source effects damaging for an international business?
answer
When potential consumers in a target country have a bias against foreign firms
question
_____ refer(s) to the extent to which the place of manufacturing influences product evaluations.
answer
Country of origin effects
question
According to research, when do consumers usually use the country of origin as a cue when evaluating a product?
answer
When consumers lack detailed knowledge of a product
question
In the context of barriers to international communication, _____ refer(s) to the amount of other messages competing for a potential consumer's attention.
answer
noise
question
In terms of communication strategy, in highly developed countries such as the United States:
answer
noise is extremely high.
question
Which of the following is true of barriers to international communication?
answer
Fewer firms vie for the attention of prospective customers in developing countries, thus the noise level is lower.
question
Which of the following communication strategies relies primarily on personal selling rather than mass media advertising?
answer
Push strategy
question
Which of the following communication strategies relies primarily on mass media advertising as opposed to personal selling?
answer
Pull strategy
question
Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a(n) _____ strategy.
answer
pull
question
Firms that sell _____ favor a push strategy. Direct selling allows these firms to educate potential consumers about the features of their product.
answer
industrial products
question
Which of the following allows a firm to educate potential consumers about the features of a product?
answer
Direct selling
question
Which of the following is a drawback of push strategies?
answer
It can be expensive when the distribution channel is long.
question
Which of the following marketing strategies relies on access to advertising media?
answer
Pull strategy
question
A push strategy is emphasized when:
answer
distribution channels are short.
question
Pull strategies tend to be emphasized:
answer
for consumer goods
question
Which of the following is an argument for standardized advertising?
answer
Many brand names are global.
question
Which of the following is an argument against standardized advertising?
answer
Advertising regulations may block implementation of standardized advertising.
question
Which of the following is an argument against standardized advertising?
answer
Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.
question
_____ exists whenever consumers in different countries are charged different prices for the same product.
answer
Price discrimination
question
Which of the following is true of price discrimination?
answer
It involves charging whatever the market will bear.
question
Which of the following is necessary for a firm to ensure profitable price discrimination?
answer
The firm must be able to keep its national markets separate.
question
If a firm is unable to keep its national markets separate, individuals or businesses may undercut its attempt at price discrimination by engaging in _____.
answer
arbitrage
question
In which of the following conditions does arbitrage occur?
answer
When a firm purchases products in a country where prices are lower and resells it in a country where prices are higher
question
A measure of the responsiveness of demand for a product to changes in price is known as _____.
answer
price elasticity of demand
question
Demand is said to be _____ when a small change in price produces a large change in demand.
answer
elastic
question
When a large change in price produces only a small change in demand, demand is said to be _____.
answer
inelastic
question
Which of the following is true of price discrimination as a part of international pricing strategy?
answer
A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense.
question
Which of the following is true of price elasticity of demand?
answer
Price elasticity tends to be greater in countries with low income levels.
question
The use of price as a competitive weapon to drive weaker competitors out of a national market is known as _____.
answer
predatory pricing
question
_____ 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.
answer
Multipoint pricing
question
Which of the following is true of multipoint pricing?
answer
It involves aggressive pricing in one market to elicit a competitive response from a rival in another market.
question
Many firms pursuing a(n) _____ strategy on an international scale will price low worldwide to build global sales volume as rapidly as possible.
answer
experience curve pricing
question
Firms pursuing a(n) _____ strategy on an international scale will price low worldwide in attempting to build global sales volume as rapidly as possible, even if this means taking large losses initially.
answer
experience curve pricing
question
Which of the following is a true of a firm pursuing an experience curve pricing strategy?
answer
Moving down the experience curve, the firm will be making substantial profits and have a cost advantage over its less-aggressive competitors.
question
Which of the following pricing strategies can run afoul of antidumping regulations?
answer
Experience curve pricing
question
In the context of strategic pricing, _____ occurs whenever a firm sells a product for a price that is less than the cost of producing it.
answer
dumping
question
Which of the following is a consequence of the vague terminology used in most antidumping actions?
answer
A firm's ability to engage in price discrimination may also be challenged.
question
The _____ industry is often thought of as one in which global standardization of the marketing mix is the norm.
answer
financial services
question
Which of the following has resulted in a dramatic shortening of product life cycles?
answer
Acceleration of the pace of technological change
question
Other things being equal, the rate of new-product development seems to be greater in countries where:
answer
competition between firms is intense.
question
Which of the following factors creates a potential market for new products?
answer
Affluent consumers
question
Which of the following is a consequence of tight cross-functional integration between research and development (R&D), production, and marketing?
answer
Keeping development costs in check
question
Which of the following is a reason for the high failure rate of research and development endeavors?
answer
Inability to manufacture a new product cost effectively
question
Which of the following is an important attribute for a product development team to function effectively and meet all of its development milestones?
answer
It should be led by a "heavyweight" project manager who has high status within the organization.
question
The project manager of a cross-functional team should:
answer
be able to act as an advocate of the team to senior management.
question
The members of a cross-functional team should have:
answer
the ability to contribute functional expertise.
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