Question 1

Existence of gray markets leads to which of the following outcomes?

Accepted Answer

A)  They make the distribution channel stronger. 
B)  They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive. 
C)  Goods sold in grey markets are always counterfeit. 
D)  Goods sold in grey markets come with standard product warranties. 
E)  Taxes imposed on grey market products are very high. 
A)  They make the distribution channel stronger. 
B)  They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive. 
C)  Goods sold in grey markets are always counterfeit. 
D)  Goods sold in grey markets come with standard product warranties. 
E)  Taxes imposed on grey market products are very high.

Question 2

Most brands are adapted to some extent to reflect significant differences in consumer behavior, brand development, competitive forces, and the legal or political environment. Identify the five international product and communication strategies available to firms that expand their businesses to foreign countries.

Accepted Answer

The five internation

Question 3

Domestic-based export merchants ________.

Accepted Answer

A)  buy manufacturers' products and then sell them abroad 
B)  manage a company's export activities for a fee 
C)  buy foreign products and sell them in the domestic country 
D)  seek and negotiate foreign purchases 
E)  carry on exporting activities on behalf of several producers 
A)  buy manufacturers' products and then sell them abroad 
B)  manage a company's export activities for a fee 
C)  buy foreign products and sell them in the domestic country 
D)  seek and negotiate foreign purchases 
E)  carry on exporting activities on behalf of several producers

Question 4

Global firms plan, operate, and coordinate their activities on a worldwide basis.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is NOT a challenge associated with international marketing?

Accepted Answer

A)  Managers need to learn new languages and laws. 
B)  Managers need to deal with volatile currencies. 
C)  Managers face political and legal uncertainties. 
D)  International markets are less safe. 
E)  All of the above are challenges. 
A)  Managers need to learn new languages and laws. 
B)  Managers need to deal with volatile currencies. 
C)  Managers face political and legal uncertainties. 
D)  International markets are less safe. 
E)  All of the above are challenges.

Question 6

The main risk in a ________ approach is the substantial resources needed and the difficulty of planning entry strategies for many diverse markets.

Accepted Answer

A)  shotgun 
B)  continuous 
C)  born global 
D)  sprinkler 
E)  waterfall 
A)  shotgun 
B)  continuous 
C)  born global 
D)  sprinkler 
E)  waterfall

Question 7

The problem with setting a uniform global price for a product is that ________.

Accepted Answer

A)  it allows intermediaries in low-price countries to reship their products to high-price countries 
B)  the company would earn the same profits everywhere, regardless of the cost structure 
C)  this strategy can price the product out of the market in countries where costs are high 
D)  this strategy makes the price too high in poor countries and not high enough in rich countries 
E)  it is ineffective for products that are homogeneous 
A)  it allows intermediaries in low-price countries to reship their products to high-price countries 
B)  the company would earn the same profits everywhere, regardless of the cost structure 
C)  this strategy can price the product out of the market in countries where costs are high 
D)  this strategy makes the price too high in poor countries and not high enough in rich countries 
E)  it is ineffective for products that are homogeneous

Question 8

The use of media may require international adaptation because media availability varies from country to country.

Accepted Answer

A) True 
 B)False

Question 9

According to Hofstede, cultures with low power distance are ________.

Accepted Answer

A)  collectivist 
B)  assertive 
C)  egalitarian 
D)  risk-averse 
E)  risk-tolerant 
A)  collectivist 
B)  assertive 
C)  egalitarian 
D)  risk-averse 
E)  risk-tolerant

Question 10

A company that is planning to go global must decide on how many countries to enter and how fast to expand. A company's entry strategy typically follows one of two possible approaches. What are those approaches?

Accepted Answer

The approaches are waterfall approach an

Question 11

In India, where people often buy items like cigarettes one at a time because incomes are low and people shop daily because homes lack storage and refrigeration, ________ remains an important function of intermediaries and helps perpetuate long channels of distribution.

Accepted Answer

A)  breaking bulk 
B)  jobbing 
C)  type of transportation 
D)  information sharing 
E)  reinforcing policies 
A)  breaking bulk 
B)  jobbing 
C)  type of transportation 
D)  information sharing 
E)  reinforcing policies

Question 12

Your firm has decided to enter the international market with your product called "Trema," a combination of a pocket organizer and cell phone. Even though the product has been a huge success in the home country, market research suggests some changes may be required before it can be introduced in Europe. Your CMO is of the opinion that the product requires certain extra features and the product will also have to be marketed differently. Your CMO is advocating ________.

Accepted Answer

A)  product invention 
B)  dual adaptation 
C)  straight extension 
D)  forward adaptation 
E)  product standardization 
A)  product invention 
B)  dual adaptation 
C)  straight extension 
D)  forward adaptation 
E)  product standardization

Question 13

When Kraft blends different coffees for the British (who drink coffee with milk), the French (who drink it black), and Latin Americans (who want a chicory taste), it is engaged in ________.

Accepted Answer

A)  straight extensions 
B)  product adaptation 
C)  retailer versions 
D)  backward invention 
E)  forward invention 
A)  straight extensions 
B)  product adaptation 
C)  retailer versions 
D)  backward invention 
E)  forward invention

Question 14

Microsoft sold more than 60 million licenses and upgrades of Windows 8 in the first 10 weeks after its October 26, 2012, global launch. Marketing spanned 42 countries with TV, print, and banner ads, outdoor posters, and branded entertainment. They used a ________ approach for the launch.

Accepted Answer

A)  shotgun 
B)  continuous 
C)  born global 
D)  sprinkler 
E)  waterfall 
A)  shotgun 
B)  continuous 
C)  born global 
D)  sprinkler 
E)  waterfall

Question 15

It often makes sense to operate in fewer countries, with a deeper commitment and penetration in each.

Accepted Answer

A) True 
 B)False

Question 16

The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.

Accepted Answer

A) True 
 B)False

Question 17

Discuss three advantages of standardizing the marketing mix worldwide.

Accepted Answer

Students should identify any three of th

Question 18

In an attempt to tailor its products to suit the requirements of consumers in India, LG introduced the aero-comfort system. A remote control is programed to regulate both the air-conditioning and the ceiling fan. Consumers can switch off the AC and increase the ceiling fan's flow once the desired temperature is achieved. This not only increases convenience, but also cuts down electricity charges. LG's aero-comfort system is an example of which of the following?

Accepted Answer

A)  backward invention 
B)  dual invention 
C)  country version product 
D)  straight extension 
E)  communication adaptation 
A)  backward invention 
B)  dual invention 
C)  country version product 
D)  straight extension 
E)  communication adaptation

Question 19

Straight extension of the product means introducing ________.

Accepted Answer

A)  the product to the foreign market without any changes to the product 
B)  the product to the foreign market with minor changes to the product 
C)  the product to the foreign market with major changes to the product 
D)  a customized product to the foreign market with a new marketing strategy 
E)  a customized product to the foreign market with existing marketing strategy 
A)  the product to the foreign market without any changes to the product 
B)  the product to the foreign market with minor changes to the product 
C)  the product to the foreign market with major changes to the product 
D)  a customized product to the foreign market with a new marketing strategy 
E)  a customized product to the foreign market with existing marketing strategy

Question 20

As a result of the ad campaigns depicting Brazil as a multicultural land of carnivals and beaches, any mention of the country makes people think of sun and sand. This is an example of ________.

Accepted Answer

A)  collectivism 
B)  target market impact 
C)  ethnocentric thinking 
D)  country-of-origin effect 
E)  cognitive dissonance 
A)  collectivism 
B)  target market impact 
C)  ethnocentric thinking 
D)  country-of-origin effect 
E)  cognitive dissonance

Existence of gray markets leads to which of the following outcomes?

Domestic-based export merchants ________.

Global firms plan, operate, and coordinate their activities on a worldwide basis.

Which of the following is NOT a challenge associated with international marketing?

The main risk in a ________ approach is the substantial resources needed and the difficulty of planning entry strategies for many diverse markets.

The problem with setting a uniform global price for a product is that ________.

The use of media may require international adaptation because media availability varies from country to country.

According to Hofstede, cultures with low power distance are ________.

A company that is planning to go global must decide on how many countries to enter and how fast to expand. A company's entry strategy typically follows one of two possible approaches. What are those approaches?

In India, where people often buy items like cigarettes one at a time because incomes are low and people shop daily because homes lack storage and refrigeration, ________ remains an important function of intermediaries and helps perpetuate long channels of distribution.

When Kraft blends different coffees for the British (who drink coffee with milk), the French (who drink it black), and Latin Americans (who want a chicory taste), it is engaged in ________.

Microsoft sold more than 60 million licenses and upgrades of Windows 8 in the first 10 weeks after its October 26, 2012, global launch. Marketing spanned 42 countries with TV, print, and banner ads, outdoor posters, and branded entertainment. They used a ________ approach for the launch.

It often makes sense to operate in fewer countries, with a deeper commitment and penetration in each.

The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.

Discuss three advantages of standardizing the marketing mix worldwide.

Straight extension of the product means introducing ________.

As a result of the ad campaigns depicting Brazil as a multicultural land of carnivals and beaches, any mention of the country makes people think of sun and sand. This is an example of ________.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Setting Product Strategy

Designing and Managing Services

Introducing New Market Offerings

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

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Exam 8: Tapping Into Global Markets

Existence of gray markets leads to which of the following outcomes?

Domestic-based export merchants ________.

Global firms plan, operate, and coordinate their activities on a worldwide basis.

Which of the following is NOT a challenge associated with international marketing?

The main risk in a ________ approach is the substantial resources needed and the difficulty of planning entry strategies for many diverse markets.

The problem with setting a uniform global price for a product is that ________.

The use of media may require international adaptation because media availability varies from country to country.

According to Hofstede, cultures with low power distance are ________.

A company that is planning to go global must decide on how many countries to enter and how fast to expand. A company's entry strategy typically follows one of two possible approaches. What are those approaches?

In India, where people often buy items like cigarettes one at a time because incomes are low and people shop daily because homes lack storage and refrigeration, ________ remains an important function of intermediaries and helps perpetuate long channels of distribution.

When Kraft blends different coffees for the British (who drink coffee with milk), the French (who drink it black), and Latin Americans (who want a chicory taste), it is engaged in ________.

Microsoft sold more than 60 million licenses and upgrades of Windows 8 in the first 10 weeks after its October 26, 2012, global launch. Marketing spanned 42 countries with TV, print, and banner ads, outdoor posters, and branded entertainment. They used a ________ approach for the launch.

It often makes sense to operate in fewer countries, with a deeper commitment and penetration in each.

The ultimate form of foreign investment is direct ownership of foreign-based assembly or manufacturing facilities.

Discuss three advantages of standardizing the marketing mix worldwide.

Straight extension of the product means introducing ________.

As a result of the ad campaigns depicting Brazil as a multicultural land of carnivals and beaches, any mention of the country makes people think of sun and sand. This is an example of ________.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Setting Product Strategy

Designing and Managing Services

Introducing New Market Offerings

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

Filters