Deck 16: Global Marketing and Research and Development

Question 1

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

Answer 1

False

Question 2

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

Answer 2

False

Question 3

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.

Answer 3

False

Question 4

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 5

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.

Question 6

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 7

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 8

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

Question 9

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 10

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

Question 11

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 12

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 13

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 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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 19

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

Question 20

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 21

Gundogan Food Products manufactures and markets a wide range of dairy products.In the lead up to going international,the company's marketing and international sales staff is having a big debate with regards to the factors affecting product attributes for their business.In terms of the factors affecting product attributes,the impact of which of the following is particularly important for Gundogan Food Products?

A)language
B)nationality
C)religion
D)tradition
E)gender

Question 22

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 23

Harbinger Products competes in the branded consumer foods market.Since its domestic (U.S.)market is getting quite competitive,the company wants to expand internationally.The company's CFO,Bing Jones wants to sell the company's products "as-is" in foreign markets because he wants to minimize costs.Shayna Rodriguez,the company's marketing manager is vehemently opposed to this idea.She believes that the company has to address the product attributes,distribution strategy,communication strategy,and pricing strategy for each of the markets that the company is considering enter.What is Shayna Rodriguez referring to?

A)market imperfections
B)marketing mix
C)marketing intermediaries
D)marketing objectives
E)marketing plan

Question 24

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 25

Elderly travelers as well as those who are physically challenged find it hard to climb stairs when they are allotted motel rooms which are not on the first floor.The Convenience Inn has succeeded in catering to this specific group of customers via its motels,all of which have one floor of rooms with no stairs to climb.Which of the following refers to The Convenience Inn's success in 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 26

_____ is/are an element of a firm's marketing mix.

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

Question 27

A technological innovation can make established products obsolete overnight.

Question 28

Pomeroy,Inc.is a major player in the U.S.consumer electronics markets.It sells radios,televisions,CD players,and a number of similar products.Its CEO believes that Pomeroy can go into international markets with the same product line that it offers in the U.S.Which of the following factors constrains Pomeroy,Inc.'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 29

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

Question 30

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 31

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 32

Milly Adams,the marketing manager for Nuance Cosmetics believes that in order for the company to succeed in international markets,it has to address the choices that it has about product attributes,distribution strategy,communication strategy,and pricing strategy in its targeted markets.What is Milly Adams referring to?

A)market imperfections
B)marketing mix
C)marketing intermediaries
D)marketing objectives
E)marketing plan

Question 33

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 34

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 35

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

Question 36

The Jones Consumer Products Company wants to expand internationally.In order to do this successfully,the company's CEO,Meredith Jones believes that new products are vital.Which of the following functions of the Jones Consumer Products Company is required to create new products?

A)supply chain
B)logistics
C)operations
D)research and development
E)customer service

Question 37

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 38

In persuading the CEO of Gundogan Food Products to carefully develop the company's international strategy,Daisy Armitage,its newly hired International Sales Manager,is a strong advocate of market segmentation.She has made various statements about market segmentation to the CEO.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 39

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 40

While curling as a sport was largely unfamiliar to the U.S.population,the large audience for the most recent Winter Olympics changed that.Studies indicated that there was a large group of people of a certain age group who liked the sport,who were eager to watch it,and were disappointed that mainstream U.S.television networks did not carry the sport except during the Olympics.Taking advantage of this gap,The Argyle Media Group successfully launched "Curling TV" - a 24-hour network dedicated to the sport.Which of the following refers to The Argyle Media Group's success in 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 41

In deciding on the firm's distribution strategy in the United Kingdom,Arlene Smith of Wendell Products found that the country's retail sector was very concentrated.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 42

Cassidy Boeheim,the international sales manager for Knoll Home Products is trying to determine the channel length for Brazil,a market that the company hopes to enter.Which of the following is the most important determinant of channel length?

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

Question 43

Algonquin Cosmetics markets skin care products for teenage girls between sixteen and nineteen.In approaching its international markets,Algonquin believes that its target segment spans multiple countries,transcending national borders.Algonquin Cosmetics' target segment is called a(n)_____ segment.

A)intermarket
B)uniform
C)cosmopolitan s se
D)divergence
E)global

Question 44

The Jacoby Winery from California's Sonoma Valley requires its retailers to educate customers about wines and help them make the right choice from a large array of brands.This is particularly more so in international markets,because American wines are relatively less well-known abroad._____ 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 45

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 46

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 47

The developing country of Nambodia has a retail system that has many independent retailers,no one of which has a major share of the market.What is Nambodia's retail system called?

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

Question 48

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 49

The United States has a very concentrated retail market with a few large national chains dominating the market.Which of the following is a factor that has contributed to greater retail concentration in a developed country like the United States?

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

Question 50

What occurs 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 51

Algonquin Cosmetics is deciding on its marketing mix to enter Brazil.It is deciding on the means for delivering the product to the consumer.What strategy is Algonquin Cosmetics working on?

A)pull
B)distribution
C)push
D)communication
E)pricing

Question 52

The sales manager for Smith Exports is deciding on the firm's distribution strategy in several markets.He wants to know which factor is likely to shorten channel length in a particular country.Which of the following factors helps a firm shorten channel length?

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

Question 53

When Algonquin Cosmetics looked at entering the Brazil market,it noticed that a few retailers supplied most of the market.What kind of a retail system does Brazil have for the products that Algonquin Cosmetics is trying to sell?

A)fragmented
B)dispersed
C)isolated
D)concentrated
E)exclusive

Question 54

Gundogan Food Products is hoping to enter Maurinia,a developed country.They want to have a good understanding of consumer preferences in that country.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 55

Cassidy Boeheim,the international sales manager for Knoll Home Products found that Brazil has a long distribution channel.Upon investigation,she found that this was caused by a large number of wholesalers who entered the market to serve retailers.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 56

_____ can constrain 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 57

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

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

Question 58

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

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

Question 59

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 60

The Jacoby Winery from California's Sonoma Valley is trying to enter the wine market in France.To the company's surprise,it found the France wine distribution channel difficult to access as an outsider.Which kind of distribution channel is difficult for outsiders to access?

A)exclusive
B)intensive
C)selective
D)concentrated
E)fragmented

Question 61

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

A)higher selling costs in a fragmented retail sector
B)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 62

In the context of barriers to international communication,_____ 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 63

When Jones Foods decided to enter Germany,a highly developed market,it found that it competed with hundreds of brands.In terms of communication strategy,in highly developed countries such as Germany which is typically true?

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 64

_____ 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 65

The Indian retail market is very fragmented with many small independent stores.The distribution structure in India typically involves two levels of distributors (large regional wholesalers and smaller city-wide wholesalers).All of these lead to India having a long distribution channel.Acme Products is concerned about India's long distribution channel for its products.Which of the following is a drawback of longer distribution channels?

A)higher selling costs in a fragmented retail sector
B)inability to enter exclusive distribution channels
C)lower selling costs in a concentrated retail sector
D)lower product prices
E)greater aggregate markups

Question 66

Source effects are damaging for an international business when

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

Question 67

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 68

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 69

Anson Apparel's marketing message in the United States is one of apparel for the rugged man who spends most of his time outdoors.While this marketing message has worked very well for the company,it is concerned about using the same marketing message in its new market of China.Which of the following factors limits Anson Apparel's ability to use the same marketing message in both the United States and China?

A)channel exclusivity
B)channel quality
C)cultural differences
D)concentrated retail systems
E)fragmented retail systems

Question 70

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

Question 71

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 72

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 73

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 74

In terms of communication strategy,_____ 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 75

_____ is one 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 76

_____ is/are 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 77

Which of the following is a drawback of a push strategy?

A)It can be expensive when the distribution channel is long.
B)It decreases interaction with consumers.
C)It does not allow consumers to be educated on the benefits of a complex product.
D)It is useful only in advanced nations where consumers are sophisticated and highly educated.
E)It can only be used to sell industrial products.

Question 78

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 79

The country of Jeenah was closed to foreign influences for almost one hundred years.Due to a deteriorating economic situation,the country recently opened up its market to foreign companies.All of a sudden,consumers in Jeenah faced an abundance of brand choices in various product categories,many of which were new products that locals had not heard of or used before.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 80

While wines from the United States have won prizes in international blind taste tests,the perception of American wines is generally low in continental Europe,particularly France._____ 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