Deck 16: Marketing Globally

Question 1

Agreements on international product standards are hampered by all the following factors EXCEPT ________.

A) that standardization increases production costs
B) consumer reluctance to change
C) the cost of redesigning and retooling
D) governments' desires to protect investments

Answer 1

A

Question 2

Which of the following would be an example of a customer orientation in international marketing?

A) A cosmetics company bans animal testing of its products to gain goodwill.
B) A fruit company brands the bananas it sells in foreign and domestic markets.
C) A beer company makes non-alcoholic beer for a country that bans the sale of alcohol.
D) A plastics manufacturer makes some components to the specifications of a foreign company.

Answer 2

D

Question 3

Executives at Apex decided to use a production orientation in the firm's international marketing efforts. Which of the following statements best supports this decision?

A) Top management at Apex is committed to the concept of social responsibility.
B) Apex is willing to alter its products to fit mass-market needs in foreign countries offering growth potential.
C) Apex will produce in each country where it sells.
D) Apex will aim sales at foreign-market segments that resemble segments to which it aims domestically.

Answer 3

D

Question 4

Companies using a sales orientation find their greatest ability to sell the same product in more than one country when ________.

A) promotional programs are identical in each country
B) consumer characteristics are similar
C) the product is a household item
D) the product has a low price relative to incomes

Question 5

Tommy Hilfiger has encountered some European resistance to the sale of its products because ________.

A) many European consumers associate France and Italy, rather than the U.S., with upscale fashions
B) its customary prices, especially for the German market, have been out of reach for its target market
C) it has refused to adjust products to fit the tastes and needs of local consumers
D) it has depended on self-service in its company-owned stores

Question 6

Which of the following was most responsible for the early success of Tommy Hilfiger clothing?

A) The products were mass-marketed through discount stores.
B) Internet mail-order sales were developed when people had less time to shop.
C) Products were developed to fit the specific needs of different country markets.
D) Brand awareness was developed through advertising.

Question 7

Pulte Homes adapts its marketing to foreign differences by making minor changes to bathrooms and outdoor patios. However,Pulte Homes uses the same floor plans and exterior attributes in all countries to gain economies of standardization. Pulte Homes most likely follows a ________.

A) social marketing orientation
B) sales orientation
C) strategic marketing orientation
D) production orientation

Question 8

In comparing international and domestic marketing,it is best to state that ________.

A) similar principles are at work
B) mass-market orientations are most effective
C) principles differ for product and price, but not for advertising
D) the differences between them can be studied through gap analysis

Question 9

When a company identifies a market segment on a global basis,such as a segment based on income,it will likely ________.

A) encounter a similar percentage of the population in each country within that segment
B) find that a niche market in one country may be a mass market in another
C) find that the market in each country is so dispersed that distribution is difficult
D) be aiming at a mass market in each country

Question 10

Which of the following is most likely to occur when a firm segments markets by country?

A) achieving objectives by following a sales orientation strategy within that market
B) initially targeting the high-income consumers within that market
C) overlooking similarities between different countries
D) introducing multiple products to assess demand

Question 11

What is the most common way of identifying market segments within a country?

A) psychographics
B) the Internet
C) gap analysis
D) demographics

Question 12

What is the most likely reason that sales to a mass market would be necessary for a company selling internationally?

A) gaining economies in production and distribution
B) earning initial sales in emerging economies
C) eliminating excess domestic capacity
D) gaining brand recognition

Question 13

Why are MNEs criticized for exporting to developing countries the same products they sell in developed countries?

A) The prices of the products are too low in developing countries.
B) Many of the products are deemed to be unnecessary for low income consumers.
C) The sales enhance local company failures in developing countries.
D) Developing countries need local production rather than imports.

Question 14

The marketing orientation used by Bantam Shoes for its foreign sales focuses primarily on efficiency and product quality. Bantam most likely uses a ________.

A) production orientation
B) customer orientation
C) sales orientation
D) strategic marketing orientation

Question 15

What is the most likely reason that companies such as Gillette (razor blades)and 3M (scouring pads)sell products in smaller package sizes in some developing countries?

A) Family size is small in those countries.
B) Some governments require the smaller sizes.
C) In those countries, many consumers lack sufficient cash to buy larger quantities.
D) These are products for which the cost of altering package size is negligible.

Question 16

All of the following are true about passive exports EXCEPT that ________.

A) companies adapt their products very little to foreign consumer preferences
B) companies frequently export only if they have excess capacity
C) companies generally quote higher prices on exports than on domestic sales
D) they refer to the filling of unsolicited requests from abroad

Question 17

When selling a commodity for which there is little possibility of product differentiation,a company would likely use which of the following orientations internationally?

A) customer orientation
B) production orientation
C) sales orientation
D) strategic marketing orientation

Question 18

Some critics complain that MNEs introduce and promote superfluous products in developing countries,causing consumers there to buy these products rather than things they need for their health. People answering this criticism have contended that ________.

A) consumers don't buy things because of promotion
B) the amount spent on so-called superfluous products is insignificant
C) it is impossible to draw a line between people who can afford and people who can't afford these products
D) these products serve to motivate people in developing countries to work harder

Question 19

International marketing differs from domestic marketing in that ________.

A) marketing principles are different
B) consumers prefer domestically made merchandise
C) environmental variations require applying principles differently
D) low prices are a more important competitive factor in foreign markets

Question 20

Which of the following best describes a company that follows a social marketing orientation?

A) It considers political and safety dimensions of its products.
B) It is a not-for-profit entity based in a developed country.
C) It is a government-owned entity from an emerging economy.
D) It generates sales to niche markets using social networking sites.

Question 21

What is the LEAST likely reason that international companies are concerned about the gray market?

A) undermining the long-term viability of the distributorship system
B) causing a firm's operations in different countries to compete against each other
C) requiring companies to make frequent price adjustments to capture the market
D) preventing companies from charging what the market will bear in each country

Question 22

Critics complain that pharmaceutical research budgets emphasize non-debilitating conditions common in developed countries rather than life-threatening diseases common in developing countries. People answering this criticism have contended that ________.

A) correction of developed country conditions, such as balding, are necessary to stimulate developing country innovations that push global economic growth
B) very small portions of research budgets actually target these non-debilitating conditions
C) by being located almost entirely in developed countries, pharmaceutical companies lack access to locations where they can study diseases such as malaria and sleeping sickness
D) pharmaceutical companies cannot recoup expenses for research on some of the developing country problems, so governmental research centers and nonprofit foundations should handle this research

Question 23

Executives want to set export prices below those that the firm charges domestically. What is the most likely problem the company will experience?

A) WTO antidumping regulations
B) consumer complaints
C) FDI restrictions
D) high tariffs

Question 24

Which of the following best describes globally standardized advertising?

A) a campaign that is identical in all markets
B) a campaign that meets the legal and ethical standards of all countries
C) a campaign that is similar but not identical from market to market
D) a campaign that depends primarily on push rather than pull promotion

Question 25

Why does price escalation most likely occur in exporting?

A) The WTO requires that prices increase.
B) Companies rely on skimming price strategies.
C) Greater distances and more intermediaries increase distribution costs.
D) Uncertain currency value changes necessitate charging higher prices.

Question 26

A push strategy for international sales is most likely preferable to a pull strategy when ________.

A) there are few prohibitions on advertising
B) the price of the product is high relative to incomes
C) people rely on friends' opinions before buying a product
D) literacy rates are high

Question 27

If a company's foreign sales per customer is small compared to those in its domestic market,it should most likely ________.

A) introduce a larger family of products
B) narrow the product line offered to the market
C) reconfigure the product life cycle marketing strategy
D) shift additional salespeople to the domestic market

Question 28

Foreman Enterprises produces and sells a variety of products for the home. Foreman recently introduced a new detergent at a very low price with the hope that a high number of consumers will try it out. Foreman is most likely using a ________ strategy.

A) cost-plus
B) skimming
C) penetration
D) diversification

Question 29

Diversity of international markets and currency instability have the greatest effect on ________.

A) promotion
B) R&D
C) branding
D) pricing

Question 30

A pull rather than a push strategy is most likely preferable when ________.

A) self-service is not predominant
B) the price of a product is high relative to incomes
C) there are few governmental restrictions on advertising
D) there are a large number of languages and a low literacy rate

Question 31

Dixon Electronics recently introduced a new computer with features unavailable from other products on the market. Dixon is charging a very high price for the computer and has plans to progressively lower the price over the next year. Dixon is most likely using a ________ strategy.

A) cost-plus
B) skimming
C) penetration
D) diversification

Question 32

Which of the following would LEAST likely be caused by a high inflation rate?

A) rules against increasing export prices
B) inability to quote prices in letters or catalogs
C) difficulty making changes to vending machines
D) necessity to set an equivalent value in a stable currency

Question 33

Promotion using direct selling techniques is ________.

A) a pull strategy
B) necessary where inflation is high
C) a standardized advertising technique
D) a push strategy

Question 34

Why might companies sometimes narrow the product line that they sell in a foreign country as compared to the product line they sell at home?

A) Government restrictions typically limit how many products a company can sell locally.
B) Selling cost per unit increases substantially when a company offers a broad product line.
C) Not all products have sufficient demand in every market.
D) Firms cannot sell products with product line gaps.

Question 35

Which of the following best depicts a push strategy for a U.S. company selling in Mexico?

A) Tupperware selling through parties in homes
B) Gillette selling razor blades through supermarkets
C) KFC selling chicken dinners at its franchises
D) Google advertising on television

Question 36

All of the following are possible advantages of globally standardized advertising programs EXCEPT ________.

A) cost savings
B) improvement of local-level quality
C) avoidance of legal impediments
D) faster entry into different markets

Question 37

A company would most likely export at a price lower than its production and distribution costs in order to ________.

A) use a skimming strategy abroad before using one domestically
B) test a market before making a big commitment
C) use a cost-plus strategy globally
D) encourage gray market sales

Question 38

What is the gray market?

A) sales targeted to elderly consumers
B) selling goods through unofficial distributors
C) a legal black market run by governments
D) selling counterfeit merchandise

Question 39

Increasingly,media reach audiences in more than one country,such as through satellite TV that reaches multiple countries simultaneously. What is NOT a problem of advertising on these media?

A) Because of reaching so many households, the cost is prohibitive.
B) The product may not be available everywhere it is advertised.
C) A company may not be able to advertise price because they may differ among countries.
D) The advertisement may reach countries using different languages.

Question 40

Firms alter their products for foreign markets for all of the following reasons EXCEPT ________.

A) home country export requirement
B) religious differences abroad
C) weak infrastructures in some countries
D) to respond to legal requirements

Question 41

Gap analysis can be used by companies to gain synergy among countries. Which of the following is a benefit of this synergy?

A) It allows companies to determine the allocation of marketing budgets among countries.
B) It can be used to prevent sales via the gray market.
C) By seeing the combined market potential among several countries, companies can determine whether there is sufficient demand to justify new product development costs.
D) By analyzing the distribution gap, companies can better determine whether to handle other companies' imported products along with their own.

Question 42

Which of the following statements is important to companies in order for them to gain contracts with foreign distributors?

A) Convince the distributors that the product and company are viable.
B) Offer high margins so distributors will compete to get the account.
C) Determine the distribution gap before signing a contract.
D) Establish in-house distribution to demonstrate what is desired.

Question 43

A company would most likely use gap analysis to ________.

A) estimate market potential over a business cycle
B) compare sales over time
C) compare consumption potential with its own sales
D) determine the best market niches to target

Question 44

Arden Shoes runs a different marketing campaign every four weeks abroad. Which of the following best describes the advantage of doing so?

A) It enables Arden to attract more sales personnel.
B) It helps Arden create an image of having quality products.
C) It allows Arden to change prices in highly inflationary economies.
D) It enables Arden to switch quickly and inexpensively to a local emphasis.

Question 45

The importance of using a brand to convey the perception of whether a firm will deliver what it promises is more critical in ________.

A) countries without strong trademark protection
B) selling to mass markets than in selling to niche markets
C) countries with strong cultural characteristics of uncertainty avoidance
D) selling industrial products than final consumer products

Question 46

Ampco Industries has a production facility in an area of India in which roads are poorly maintained and dangerous. What part of Ampco's marketing mix do these conditions most likely affect?

A) distribution
B) branding
C) product standardization
D) promotion

Question 47

All of the following are problems of using a worldwide brand EXCEPT which one?

A) Brand names may carry a different association in another language.
B) Pronunciation may be difficult in another language.
C) Acquired brand names cannot be legally changed.
D) Pictogram alphabets need visual appeal in addition to phonetic appeal.

Question 48

Compton Cereal Company sells its cereals in most global markets,and overall sales at the firm remain strong. However,the firm is losing sales to some of its competitors because Compton lacks a gluten-free cereal. Which of the following best describes Compton's current problem?

A) usage gap
B) competitive gap
C) distribution gap
D) product-line gap

Question 49

In advertisements aimed at different countries,companies sometimes use actors who do not speak,along with a voice and/or print overlay. What is the main reason for doing this?

A) avoiding dubbing that does not correspond to lip movements
B) altering themes and messages among countries
C) meeting legal requirements on morality
D) reaching a hearing-or sight-impaired audience

Question 50

Which of the following is NOT one of the three personality traits that specifically affect international marketing?

A) globalism
B) materialism
C) ethnocentrism
D) cosmopolitanism

Question 51

Gap analysis is ________.

A) a method for estimating a company's potential sales by identifying segments it is not serving adequately
B) an investment advisor's report on the future of one of the leading clothing retailers
C) the leap-frogging of demand in many developing economies whereby consumers skip certain generations of products, buying the latest model instead
D) an estimation of the disparity in incomes between the very rich and the very poor in a given market

Question 52

Which of the following is true concerning countries' distribution systems?

A) They reflect the economic levels of countries, so countries at similar economic levels have similar distribution systems.
B) They are difficult to change because they have evolved over time, reflecting countries' cultural, economic, and legal environments.
C) They are more similar among countries than pricing and promotional systems are.
D) When standardized, they offer more cost savings for international companies than when products are standardized.

Question 53

International marketing is unlike domestic marketing because the basic principles are completely different.

Question 54

Which of the following statements is most likely true?

A) Consumers in most countries believe that imported products are better than locally made products.
B) Brand names have little impact on perceptions about a product's country-of-origin.
C) Consumers in most countries favor locally made products over imported products.
D) A positive brand image helps overcome negative perceptions about a product's country-of-origin.

Question 55

The marketing approach a company takes internationally should be compatible with its overall aims and strategies.

Question 56

All of the following are true about distribution concerns when marketing internationally EXCEPT which one?

A) Geographic barriers may divide countries into very distinct markets.
B) In some countries, few potential sales lie outside the large metropolitan areas.
C) Each country has its own distribution system, making standardization of distribution difficult.
D) Because most foreign consumers are easily presold by advertising messages, it is difficult to convince retailers to offer good service.

Question 57

All of the following are true about the Internet and electronic commerce EXCEPT which one?

A) Suppliers can deal more quickly with their customers.
B) It enhances companies' ability to differentiate their marketing methods by country.
C) Customers worldwide can quickly compare prices from different distributors.
D) To be successful, companies must be able to deliver efficiently what they sell over the Internet.

Question 58

Which of the following would most likely indicate that a company should handle its own distribution?

A) high-volume sales and non-complex after-sales servicing
B) local customers and low-tech products
C) low sales volume and few business-to-business sales
D) global customers and high technology

Question 59

Assume the per capita consumption of shoes is three pairs in Country A and two pairs in Country B. The difference probably means that there is a ________ gap in Country B.

A) product line
B) usage
C) distribution
D) competitive

Question 60

Although electronic commerce offers companies an opportunity to promote their products globally,doing so brings challenges. Which of the following is NOT one of the challenges?

A) Many households, especially in developing countries, lack access to the Internet.
B) Setting up and implementing Internet sales can be expensive.
C) The appeals must be differentiated for every country of the world.
D) Switching to Internet sales can upset current distribution.

Question 61

Passive exports involve the filling of unsolicited orders from abroad.

Question 62

High inflation might cause a company to gain advantages by selling more on credit.

Question 63

Under a strategic marketing orientation,a company considers potential environmental,health,social,and work-related problems from the sale of its products abroad.

Question 64

When the currency value in the location where a company produces becomes stronger,the company most likely needs to adjust its margins downward to be competitive in export markets.

Question 65

There are more cost savings for international branding standardization than for international product standardization.

Question 66

A company that prices its products at a desired margin over cost is using a cost-plus strategy.

Question 67

Different country standards,such as safety regulations,add complexity to whether companies decide to use a globally standardized product.

Question 68

Although the broadening of product lines increases distribution efficiencies,too broad a line can create problems in selling.

Question 69

A problem of advertising through media that reach multiple countries is that the product may not be available everywhere it is advertised.

Question 70

Antidumping regulations of the WTO allow countries to establish restrictions against any exports that fail to meet quality standards.

Question 71

Market diversity,government intervention,and currency fluctuations complicate international pricing decisions.

Question 72

A company that adapts its marketing to foreign differences without deviating very much from its experience is following a customer orientation.

Question 73

A push strategy is most likely preferable to a pull strategy when the price of the product is high relative to incomes.

Question 74

In a production orientation,a company focuses on efficiency and product quality when selling abroad.

Question 75

A company sometimes handles a broader line of products in a foreign country than in its home country because most of its new product development is abroad.

Question 76

The most common way of identifying market segments is through demographics.

Question 77

If a brand name becomes generic in one country,it becomes generic in other countries as well.

Question 78

A company that exports products at a price lower than its domestic market price is using a skimming policy abroad.

Question 79

A push strategy is most likely preferable to a pull strategy when goods are sold using self-service distribution.

Question 80

A positive brand image cannot overcome negative perceptions of the country where the product is made.