Deck 16: Global Marketing and Rd

Question 1

A pull strategy refers to a marketing strategy that emphasizes personal selling rather than mass media advertising in the promotional mix.

Answer 1

False
Explanation: A pull strategy refers to a marketing strategy emphasizing mass media advertising as opposed to personal selling in the promotional mix.

Question 2

In terms of channel length, the more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer.

Answer 2

False
Explanation: The more fragmented the retail system, the more expensive it is for a firm to make contact with each individual retailer. Accordingly, it makes economic sense for the firm to sell to the wholesalers and the wholesalers to deal with the retailers.

Question 3

In terms of the differences between countries with respect to distribution systems, there is a tendency for lesser retail concentration in developed countries.

Answer 3

False
Explanation: There is a tendency for greater retail concentration in developed countries. Three factors that contribute to this are the increases in car ownership, number of households with refrigerators and freezers, and number of two-income households.

Question 4

Markets can be segmented by geography, demography, sociocultural factors, and psychological factors.

Question 5

Differences in government-mandated product standards can rule out mass production and marketing of a standardized product.

Question 6

Market segmentation refers to identifying distinct groups of consumers whose needs, wants, and purchasing behavior differ from others in important ways.

Question 7

A global marketing strategy that views the world's consumers as similar in their preferences is consistent with the mass production of a standardized output.

Question 8

Many international businesses try to counter negative source effects by deemphasizing their foreign origins.

Question 9

According to Theodore Levitt, technology has resulted in the emergence of global markets for standardized consumer products on a previously unimagined scale of magnitude.

Question 10

In terms of factors influencing product attributes, the impact of tradition is particularly important in foodstuffs and beverages.

Question 11

For a market segment to transcend national borders, consumers in that segment must have some compelling similarities along important dimensions such as age, values, and lifestyle choices.

Question 12

When managers in an international business consider market segmentation in foreign countries, they need to be cognizant of the differences between countries in the structure of market segments.

Question 13

Firms based in less developed nations tend to build a lot of extra performance attributes into their products.

Question 14

One benefit of a longer distribution channel is that it cuts selling costs when the degree of fragmentation of the retail sector is less.

Question 15

There is generally a critical link among channel length, the final selling price, and the firm's profit margin because each intermediary in a channel adds its own markup to the products.

Question 16

Firms vary their marketing mix from country to country depending on differences in national culture.

Question 17

The expertise, competencies, and skills of established retailers in a nation, and their ability to sell and support the products of international business are referred to as channel exclusivity.

Question 18

A concentrated retail system is one in which there are many retailers, none of which has a major share of the market.

Question 19

A critical aspect of the marketing function is identifying gaps in the market so that a firm can develop new products to fill those gaps.

Question 20

Consumers in the most developed countries are often willing to sacrifice their preferred product attributes for lower priced products.

Question 21

Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?

A)Modern transportation is facilitating a convergence of tastes and preferences among consumers in advanced countries of the world.
B)Academics feel that Levitt understates his case concerning global markets and the fall of multinational corporations.
C)Globalization, in the sense used by Levitt, is the rule in consumer goods markets and industrial markets.
D)Levitt's arguments hold true with respect to consumer goods markets but not for basic industrial products.
E)As observed by Levitt, multinational corporations do not tailor their products to suit different countries.

Question 22

Predatory pricing exists whenever consumers in different countries are charged different prices for the same product, or for slightly different variations of the product.

Question 23

Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a push strategy.

Question 24

Predatory pricing and experience curve pricing do not violate antidumping regulations.

Question 25

Which of the following functions of an international business is required to create new products?

A)Supply chain
B)Logistics
C)Operations
D)Research and development
E)Customer service

Question 26

A firm's ability to use a pull marketing strategy is limited in some countries by media availability.

Question 27

A disadvantage of standardized advertising is that it increases the costs of value creation by spreading the fixed costs of developing the advertisements over many countries.

Question 28

The elasticity of demand for a product in a given country is determined by a number of factors, of which income level and competitive conditions are the two most important.

Question 29

In terms of pricing strategies, dumping occurs whenever an international firm sells a product for a price that is less than the price charged by domestic producers.

Question 30

Which of the following is an element of a firm's marketing mix?

A)Product attributes
B)Employee management
C)Customer service
D)Population demographics
E)Domestic competition

Question 31

Which of the following factors constrains a firm's ability to sell a standardized product to a global market using a standardized marketing strategy?

A)Modern transportation
B)Modern communications technologies
C)Rise of the global media phenomenon
D)Development of a global culture
E)Differences in product and technical standards

Question 32

The shorter the distribution channel, the more intermediaries there are that must be persuaded to carry the product for it to reach the consumer.

Question 33

Which of the following is a statement made by Theodore Levitt about the globalization of world markets?

A)Capitalism is the force that drives the world toward a converging commonality.
B)Global corporations consider the world to consist of distinct and unique entities.
C)Accustomed differences in national or regional preferences are becoming more significant.
D)Multinational corporations are in danger of losing out to small businesses.
E)Global markets for standardized consumer products have emerged on a large scale of magnitude.

Question 34

Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets?

A)Accustomed differences in national or regional preferences are significant in world markets.
B)The global corporation operates consistently at high relative cost.
C)Technology has led to the emergence of global markets for standardized consumer products.
D)The global corporation sells different things in different ways.
E)Ancient differences in national tastes or modes of doing business are reinforced.

Question 35

Dispersing research and development activities to many locations around the world allows a firm to stay close to the center of leading-edge activity to gather scientific and competitive information and to draw on local scientific resources.

Question 36

Which of the following refers to identifying distinct groups of consumers whose needs, wants, and purchasing behavior differ from others in important ways?

A)Market penetration
B)Market development
C)Market segmentation
D)Product development
E)Diversification

Question 37

A technological innovation can make established products obsolete overnight.

Question 38

Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets?

A)Global corporations consider the world to consist of distinct and unique entities.
B)Global corporations operate at low relative costs.
C)Global corporations operate from a single country.
D)Global corporations adjust their products and practices to suit each country.
E)Global corporations are in danger of losing out to small businesses.

Question 39

Firms can reduce the failure of product development by ensuring that research and development, marketing, and production functions work independently.

Question 40

Which of the following refers to choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets?

A)Market imperfections
B)Marketing mix
C)Marketing intermediaries
D)Marketing objectives
E)Marketing plan

Question 41

Which of the following is true of market segmentation?

A)An important market segment in a foreign country always has a parallel in a firm's home country.
B)Markets can be segmented only on the basis of geography and demography.
C)The structure of market segments is quite similar across various countries.
D)Since market segments are similar across various countries, firms can pursue a global marketing strategy without varying the marketing mix.
E)For a segment to transcend national borders, consumers in that segment must have some compelling similarities along important dimensions.

Question 42

In terms of the factors affecting product attributes, the impact of which of the following is particularly important in foodstuffs and beverages?

A)Language
B)Nationality
C)Religion
D)Tradition
E)Gender

Question 43

Which of the following factors constrains the globalization of markets?

A)Differences in technical standards
B)Uniform standard of living
C)Cosmopolitan tastes and preferences
D)Market segments that transcend national borders
E)Convergence of cultures

Question 44

When the retail sector is very concentrated:

A)it is more expensive for a firm to make contact with each individual retailer.
B)it makes sense for a firm to deal directly with retailers, cutting out wholesalers.
C)a relatively large sales force is required to deal with the retail sector.
D)the channels of distribution tend to be long.
E)the growth of wholesalers is promoted.

Question 45

Which of the following is a factor that contributes to greater retail concentration in developed countries?

A)The number of households owning televisions
B)The number of families with two or more children
C)An increase in the value of the currency of the country
D)The number of households with refrigerators and freezers
E)A decrease in per capita income

Question 46

Which of the following is a definition of market segmentation?

A)It refers to identifying distinct groups of customers whose needs, wants, and purchasing behavior differ from others.
B)It refers to developing existing market segments and increasing market share within those segments.
C)It refers to identifying the need for new products in existing markets and developing products for those markets.
D)It refers to identifying new markets that can buy existing products.
E)It refers to identifying the needs of a new market and developing new products for that market.

Question 47

Which kind of distribution channel is difficult for outsiders to access?

A)Exclusive
B)Intensive
C)Selective
D)Concentrated
E)Fragmented

Question 48

Which of the following is a goal of market segmentation?

A)To optimize the fit between the purchasing behavior of consumers in a given segment and the marketing mix
B)To increase participation in shared global conversations by drawing upon shared symbols that include global brands
C)To reduce cultural and economic differences which act as a barrier to the emergence of global trends
D)To standardize products, manufacturing, and the institutes of trade and commerce
E)To increase the costs of value creation and add value by better serving customer needs

Question 49

Which of the following 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?

A)Channel exclusivity
B)Channel quality
C)Channel length
D)Channel dominance
E)Channel concentration

Question 50

In which kind of retail system do a few retailers supply most of the market?

A)Fragmented
B)Dispersed
C)Isolated
D)Concentrated
E)Exclusive

Question 51

Which of the following factors helps a firm shorten channel length?

A)The entry of large discount superstores
B)A firm's insistence on dealing with wholesalers instead of manufacturers
C)Fragmentation of a retail system
D)A small sales force
E)Smaller sales orders generated from sales calls

Question 52

Which retail system has many retailers, no one of which has a major share of the market?

A)Concentrated
B)Fragmented
C)Focused
D)Consolidated
E)Exclusive

Question 53

Which of the following contradicts Theodore Levitt's arguments for the globalization of world markets?

A)Consumers in most developed countries do not sacrifice preferred attributes for lower prices.
B)Tastes and preferences are becoming more cosmopolitan due to cultural convergence.
C)Similar product and technical standards across countries help a firm sell the same product worldwide.
D)The emergence of the global youth segment is evidence of market segments that transcend national borders.
E)The structure of market segments is extremely similar in various countries.

Question 54

The number of intermediaries between the product (or manufacturer) and the consumer is referred to as:

A)channel length.
B)channel quality.
C)channel exclusivity.
D)channel fragmentation.
E)channel concentration.

Question 55

Which of the following is a factor that has contributed to greater retail concentration in developed countries?

A)A tradition of established local neighborhood stores
B)An increase in car ownership
C)A retail system that encourages long channel length
D)An increase in the number of single-income households
E)An increase in the population density

Question 56

Which strategy refers to the means that a firm chooses for delivering a product to its consumer?

A)Pull
B)Distribution
C)Push
D)Communication
E)Pricing

Question 57

Which kind of retail systems tend to promote the growth of wholesalers to serve retailers, which lengthens distribution channels?

A)Centralized
B)Focused
C)Concentrated
D)Fragmented
E)Exclusive

Question 58

Which of the following is true of the influence of economic development on consumer preferences?

A)The level of economic development does not impact consumer preferences as much as cultural difference does.
B)Firms based in highly developed countries do not build extra performance attributes into their products.
C)Consumers in less developed nations demand to have extra attributes built into products.
D)Consumers in developed countries are often willing to sacrifice their preferred attributes for lower prices.
E)Consumers in developed nations are willing to pay more for products that have additional features customized to their tastes.

Question 59

Which of the following is a characteristic of fragmented retail systems?

A)Long channels of distribution
B)Single-layer distribution systems
C)Lower sales call to sales order ratio
D)Relatively smaller sales force compared to concentrated retail systems
E)Promotion of direct interaction between retailers and firms

Question 60

Which of the following is the most important determinant of channel length?

A)The degree to which the retail system is fragmented
B)The increase in car ownership and two-income households
C)The level of consolidation in the global retail industry
D)The amount of difference between product or technical standards
E)The level of economic development of a country

Question 61

In terms of communication strategy, in highly developed countries such as the United States:

A)noise is extremely high.
B)source effects are always positive.
C)country of origin effects are not applicable.
D)cultural barriers do not exist.
E)pull strategies are more important than push strategies.

Question 62

According to research, when do consumers usually use the country of origin as a cue when evaluating a product?

A)When a firm tries to deemphasize its foreign origins
B)When consumers lack detailed knowledge of a product
C)When an advertising campaign stresses the positive performance attributes of a product
D)When a limited number of messages compete with each other for consumers' attention
E)When a firm resorts to personal selling instead of mass media advertising

Question 63

Which of the following is a factor that determines the optimal distribution strategy?

A)Communication strategy
B)Country of origin effects
C)Channel quality
D)Noise levels
E)Source effects

Question 64

In terms of communication strategy, which of the following refers to the situation when the receiver of a message evaluates the message based on the status or image of the sender?

A)Source effects
B)Noise levels
C)Cultural barriers
D)Pull strategy
E)Push strategy

Question 65

Which of the following is true of the barriers to international communication?

A)Noise tends to increase the probability of effective communication.
B)Source effects can be beneficial for an international business when potential consumers in a target country have a bias against foreign firms.
C)Many international businesses try to promote positive source effects by deemphasizing their foreign origins.
D)Fewer firms vie for the attention of prospective customers in developing countries, thus the noise level is lower.
E)Research suggests that a consumer may use country of origin as a cue when evaluating a product, particularly if he or she has detailed knowledge of the product.

Question 66

Which of the following factors limits a firm's ability to use the same marketing message?

A)Channel exclusivity
B)Channel quality
C)Cultural differences
D)Concentrated retail systems
E)Fragmented retail systems

Question 67

Which of the following communication strategies relies primarily on personal selling rather than mass media advertising?

A)Visual merchandising
B)Pull strategy
C)Push strategy
D)Copy testing
E)Standardized advertising

Question 68

Which of the following is true of choosing a distribution strategy?

A)The optimal distribution strategy is determined by the relative costs and benefits of each alternative, which vary from country to country.
B)A choice of distribution strategy does not determine which channel the firm will use to reach potential consumers.
C)The channel length, the final selling price, and the firm's profit margin are completely independent of each other.
D)The longer a distribution channel, the lower the aggregate markup.
E)The longer a distribution channel, the lower the price consumers are charged for the final product.

Question 69

Which of the following is a drawback of longer distribution channels?

A)Higher selling costs in a fragmented retail sector
B)The inability to enter exclusive distribution channels
C)Lower selling costs in a concentrated retail sector
D)Higher prices charged to consumers
E)Greater aggregate markups due to a lack of intermediaries

Question 70

Which of the following is a potentially critical variable that can jeopardize the effectiveness of a firm's international communication?

A)Channel length
B)Market segmentation
C)Import effects
D)Noise levels
E)Channel quality

Question 71

In the context of barriers to international communication, which term refers to the amount of other messages competing for a potential consumer's attention?

A)Alternative signals
B)Source effects
C)Noise
D)Channel effects
E)Country of origin effects

Question 72

Which of the following communication strategies relies primarily on mass media advertising as opposed to personal selling?

A)Telemarketing
B)Pull strategy
C)Push strategy
D)Customized advertising
E)Point-of-purchase advertising

Question 73

Which of the following is an advantage of longer distribution channels?

A)Decreased profit margins
B)Lower markups
C)Lower product prices
D)Reduced selling costs in concentrated retail sectors
E)Greater market access

Question 74

Which of the following allows a firm to educate potential consumers about the features of a product?

A)Direct selling
B)Mass media advertising
C)Pull strategy
D)Standardized advertising
E)Lag strategy

Question 75

Which of the following is a drawback of longer distribution channels?

A)Higher selling costs in a fragmented retail sector
B)The inability to enter exclusive distribution channels
C)Lower selling costs in a concentrated retail sector
D)Lower product prices
E)Greater aggregate markups

Question 76

When are source effects damaging for an international business?

A)When promotional messages are used to stress the positive performance attributes of its product
B)When fewer firms compete for the attention of prospective customers in developing countries
C)When the firm's marketing strategy emphasizes personal selling rather than mass media advertising
D)When potential consumers in a target country have a bias against foreign firms
E)When international businesses deemphasize their foreign origins

Question 77

Which of the following is true about channel quality?

A)The quality of retailers is variable in developed nations.
B)The quality of retailers is variable in emerging markets and less developed nations.
C)Channel quality refers to a measure of the number of intermediaries between the manufacturer and the consumer.
D)An international business cannot establish its own distribution channel when the existing channel quality is poor.
E)The lack of a high-quality channel does not impede market entry.

Question 78

Which of the following refers to the extent to which the place of manufacturing influences product evaluations?

A)Noise levels
B)Country of origin effects
C)Source effects
D)Push strategies
E)Pull strategies

Question 79

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?

A)Professional services
B)Food grains
C)Consumer products
D)Industrial products
E)Standardized products

Question 80

Which kind of strategy do firms in consumer goods industries that are trying to sell to a large segment of the market generally favor?

A)Push
B)International
C)Lag
D)Pull
E)Exclusive distribution