Deck 17: Global Marketing and RD

Question 1

The most important aspect of cultural differences is values.

Answer 1

False

Question 2

The structure of market segments may differ significantly from country to country.

Answer 2

True

Question 3

Products sell well when their attributes match consumer needs.

Answer 3

True

Question 4

Consumers in the most developed countries are typically willing to sacrifice their preferred product attributes for lower prices.

Question 5

Differences in technical standards can prevent a firm from standardizing products across markets.

Question 6

An increase in car ownership,the number of two-income households,and the number of households with a refrigerator have all contributed to the more fragmented retail system found in developed countries.

Question 7

Countries with fragmented retail systems tend to have long channels of distribution.

Question 8

In a concentrated retail system,there are many retailers,no one of which has a significant share of the market.

Question 9

The set of choices the firm offers to its targeted markets is known as the marketing mix.

Question 10

The entry of large discount superstores such as Tesco and Carrefour have shortened channel length in some countries.

Question 11

The marketing mix is comprised of product attributes,distribution strategy,communication strategy,and pricing strategy.

Question 12

The most important determinant of channel length is the degree to which the retail system is concentrated.

Question 13

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

Question 14

The number of intermediaries between the producer and the consumer is known as the channel length.

Question 15

A channel is considered to be long when a producer sells through an import agent,a wholesaler,and a retailer.

Question 16

Most academics support Theodore Levitt's assertion that global markets are becoming more standardized.

Question 17

The four main differences between distribution systems are retail concentration,channel length,channel exclusivity,and channel quality.

Question 18

The process of identifying distinct groups of consumers whose purchasing behavior differs from others in important ways is known as market segmentation.

Question 19

The goal of market segmentation is to optimize the fit between the purchasing behavior of consumers in a given segment and the marketing mix,thereby maximizing sales to that segment.

Question 20

Developing countries tend toward greater retail concentration.

Question 21

A push strategy makes sense when distribution channels are short.

Question 22

A push strategy is generally favored by consumer goods firms that are trying to sell to a large segment of the market.

Question 23

The use of price as a competitive weapon to drive weaker competitors out of a national market is known as predatory pricing.

Question 24

Over the past 20 years,the U.S.monopoly on new-product development has strengthened significantly.

Question 25

Designing for manufacturing increases not only product quality,but also costs involved.

Question 26

The rate of new-product development seems to be lesser in countries where more money is spent on basic and applied research and development.

Question 27

One solution many international businesses adopt for allocating product development responsibilities to various centers involves establishing a global network of R&D centers.

Question 28

New-product development has a high failure rate.

Question 29

Price discrimination involves charging whatever the market will bear.

Question 30

A company that depends on mass media advertising to communicate its marketing message to potential consumers is using a push strategy.

Question 31

Import agents are typically limited to independent trading houses.

Question 32

The "customization versus standardization" debate is an all or nothing issue.

Question 33

A firm may be prevented from using standardized advertising because of advertising regulations.

Question 34

Source effects and country of origin effects are always negative.

Question 35

When a company emphasizes personal selling,the company is probably using a push strategy.

Question 36

One benefit of a shorter channel is that it cuts selling costs when the retail sector is very fragmented.

Question 37

Pricing decisions around the world must be delegated to the managers of various national subsidiaries.

Question 38

Source effects occur when the receiver of the message evaluates the message based on the status or image of the sender.

Question 39

When a small change in price produces a large change in demand,demand is said to be inelastic.

Question 40

A company's customers can be a primary source of new-product ideas.

Question 41

In a concentrated retail system:

A)there are many retailers who have a major share of the market.
B)there are many retailers,no one of which has a major share of the market.
C)a few retailers supply a small segment of the market.
D)a few retailers supply most of the market.

Question 42

The means a firm chooses for delivering the product to the consumer is its:

A)communication strategy.
B)segmentation strategy.
C)product attributes.
D)distribution strategy.

Question 43

The most important aspect of a country's cultural differences,particularly important in foodstuffs and beverages,is the impact of:

A)values.
B)traditions.
C)norms.
D)attitudes.

Question 44

A country with high car ownership,a large number of households with refrigerators,and a large number of two income families tend to have:

A)retail division.
B)retail dispersion.
C)retail concentration.
D)retail fragmentation.

Question 45

Contrary to Levitt's suggestions,consumers in the most developed countries are often:

A)willing to sacrifice their preferred attributes for lower prices.
B)not willing to pay more for products that have additional features customized to their tastes.
C)not willing to sacrifice their preferred attributes for lower prices.
D)willing to accept globally standardized products that have been developed with the lowest common denominator in mind.

Question 46

Which of the following is not a key difference between distribution systems in different countries?

A)Channel speed
B)Channel length
C)Channel exclusivity
D)Channel quality

Question 47

According to Levitt,which of the following statements is true?

A)Technology drives the world toward a converging commonalty.
B)There are accustomed differences in national preferences.
C)The multinational corporation operates in a number of countries at low relative costs.
D)The global corporation operates with resolute consistency at high relative costs.

Question 48

Research has long maintained that a major factor of success for new products is the closeness of the relationship between:

A)finance and marketing.
B)marketing and R&D.
C)finance and materials management.
D)finance and R&D.

Question 49

The continuing persistence of _____ differences between nations acts as a major brake on any trend toward global consumer tastes and preferences.

A)technological and industrial
B)institutional and political
C)cultural and economic
D)GNP level and growth rate

Question 50

A _____ retail system is one in which there are many retailers,no one of which has a major share of the market.

A)concentrated
B)consolidated
C)focused
D)fragmented

Question 51

In a _____ retail system,a few retailers supply most of the market.

A)fragmented
B)dispersed
C)focused
D)concentrated

Question 52

The set of choices the firm offers to its targeted market is known as the

A)marketing mix.
B)marketing concept.
C)marketing strategy.
D)market promotion.

Question 53

Which of the following is not an element that constitutes a firm's marketing mix?

A)Product attributes
B)Communication strategy
C)Reverse engineering
D)Distribution strategy

Question 54

In terms of retail concentration,developed countries tend to have a higher degree of concentration than developing countries for all of the following reasons except:

A)number of households with refrigerators and freezers.
B)tradition of established local neighborhoods in which people walk to stores.
C)increase in car ownership.
D)number of two-income households that accompany development.

Question 55

If market segments transcend national borders:

A)the company should develop unique products for each national market.
B)the company can view the global market as a single entity and pursue a global strategy.
C)a localization strategy would be appropriate.
D)consumers will have differing purchasing behavior in different nations.

Question 56

Which of the following statements about retail systems is true?

A)One factor contributing to greater retail concentration is an increase in car ownership.
B)The number of households with refrigerators leads to lesser retail concentration in developed countries.
C)There is a tendency for greater retail concentration in many developing countries.
D)Retail systems are very fragmented in developed countries.

Question 57

Consumers in highly developed countries value _____ as compared to their counterparts in less developed nations.

A)price
B)product reliability
C)product attributes
D)standardized products

Question 58

The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as:

A)market segmentation.
B)market penetration.
C)diversification strategy.
D)differentiation.

Question 59

Which of the following statements is false?

A)Product reliability may be a more important attribute in most advanced countries.
B)Consumers in highly developed countries tend to build a lot of extra performance attributes into their products.
C)Consumers in the most developed countries are often not willing to sacrifice their preferred attributes for lower prices.
D)Consumers in the most advanced countries often shun globally standardized products that have been developed with the lowest common denominator in mind.

Question 60

The way a product is delivered is determined by:

A)a firm's entry strategy.
B)a firm's product positioning.
C)the target market.
D)market segmentation.

Question 61

The extent to which the place of manufacturing influences product evaluations is known as:

A)source effects.
B)country of origin effects.
C)noise effects.
D)location effects.

Question 62

Which of the following does not affect a firm's international communication?

A)Cultural barriers
B)Source effects
C)Channel exclusivity
D)Noise levels

Question 63

The probability of effective communications is reduced by:

A)noise effects.
B)location effects.
C)country of origin effects.
D)source effects.

Question 64

When a firm emphasizes personal selling rather than mass media advertising in the promotional mix,the firm is using a:

A)standardized strategy.
B)pull strategy.
C)push strategy.
D)localized strategy.

Question 65

If a producer sells through an import agent,a wholesaler,and a retailer,then

A)a long channel exists.
B)the retail system must be concentrated.
C)the Internet probably plays a big role in the economy.
D)there is no channel.

Question 66

What kind of retail systems do rural India and China have?

A)Fragmented
B)Direct
C)Indirect
D)Concentrated

Question 67

Which of the following statements about fragmented retail systems is true?

A)Countries with fragmented retail systems tend to have short channels of distribution.
B)The more fragmented the retail system,the less expensive it is for a firm to make contact with each individual retailer.
C)Fragmented retail systems tend to promote the growth of wholesalers to serve retailers.
D)When the retail sector is very fragmented,it makes sense for the firm to deal directly with retailers.

Question 68

Which of the following statements about barrier to international communication is true?

A)Source effects occur when the receiver of the message evaluates the message on the basis of the location of the sender.
B)The best way for a firm to overcome cultural barriers is to use local input.
C)Source effects and country of origin effects are always negative.
D)Noise is extremely high in highly developed countries such as the United States.

Question 69

Developed countries are more likely to have a:

A)concentrated retail system.
B)fragmented retail system.
C)crowded retail system.
D)dispersed retail system.

Question 70

Which of the following statements is true?

A)Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a push strategy.
B)Mass communication has cost advantages for firms in consumer goods industries that are trying to sell to a large segment of the market.
C)Direct selling may be the only way to reach consumers in poor nations with low literacy levels.
D)Firms that sell industrial products or other complex products favor a pull strategy.

Question 71

The number of intermediaries between the manufacturer and the consumer is referred to as:

A)channel reach.
B)channel concentration.
C)channel exclusivity.
D)channel length.

Question 72

To overcome cultural barriers,companies should:

A)develop products specifically for each market.
B)focus on universal needs.
C)focus only on market segments that transcend national boundaries.
D)develop cross-cultural literacy.

Question 73

The expertise,competencies,and skills of established retailers in a nation,and their ability to sell and support the products of international businesses is referred to as their:

A)channel exclusivity.
B)channel knowledge.
C)channel quality.
D)channel skill.

Question 74

By acquiring retailers in different countries,large global retailers such as Carrefour and Wal-Mart have increased:

A)retail concentration.
B)retail fragmentation.
C)retail dispersion.
D)retail crowding.

Question 75

A(n)_____ distribution channel is one that is difficult for outsiders to access.

A)selective
B)intensive
C)exclusive
D)multichannel

Question 76

When a channel is exclusive:

A)it carries only high-end products.
B)it is controlled by market leaders or by firms who have a niche market.
C)it focuses only on elite customers.
D)it is often difficult for a new firm to get access to shelf space in supermarkets.

Question 77

The most important determinant of channel length is the degree to which a retail system is:

A)concentrated.
B)fragmented.
C)decentralized.
D)globalized.

Question 78

When the receiver of a message evaluates a message based on the status or image of the sender,_____ are said to have occurred.

A)sender effects
B)noise effects
C)source effects
D)communication effects

Question 79

A firm that depends more on mass media advertising to communicate the marketing message to potential consumers is using a:

A)pull strategy.
B)push strategy.
C)standardized strategy.
D)localized strategy.

Question 80

With a concentrated retail sector:

A)a relatively large sales force is required.
B)the orders generated from each sales call can be large.
C)there are long channels of distribution.
D)it is expensive for the firm to make contact with each individual retailer.