Chapter 18: Global Marketing and R&D – Flashcards
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41. (p. 592) 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
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C. Reverse engineering
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42. (p. 592) 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
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A. Marketing mix
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43. (p. 592) 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
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B. Marketing and R&D
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44. (p. 592) According to Levitt, which of the following statements is ? 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
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A. Technology drives the world toward a converging commonalty
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45. (p. 593) 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
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C. Cultural and economic
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46. (p. 593) 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
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A. Market segmentation
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47. (p. 595) 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
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B. The company can view the global market as a single entity and pursue a global strategy
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48. (p. 595) 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
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B. Traditions
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49. (p. 596) 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
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C. Product attributes
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50. (p. 596) Which of the following statements is ? 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
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A. Product reliability may be a more important attribute in most advanced countries
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51. (p. 597) 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
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D. Distribution strategy
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52. (p. 597) 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
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A. A firm's entry strategy
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53. (p. 597) 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
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C. Not willing to sacrifice their preferred attributes for lower prices
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54. (p. 597) 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
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D. A few retailers supply most of the market
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55. (p. 598) 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
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A. Retail concentration
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56. (p. 598) 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
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C. Retail concentration
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57. (p. 597) In a _____ retail system, a few retailers supply most of the market. A. Fragmented B. Dispersed C. Focused D. Concentrated
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D. Concentrated
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58. (p. 597) 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
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A. Channel speed
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59. (p. 597-598) 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
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D. Fragmented
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60. (p. 598) Which of the following statements about retail systems is ? 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
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A. One factor contributing to greater retail concentration is an increase in car ownership
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61. (p. 598) 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
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B. Tradition of established local neighborhoods in which people walk to stores
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62. (p. 598) Developed countries are more likely to have a A. Concentrated retail system B. Fragmented retail system C. Crowded retail system D. Dispersed retail system
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A. Concentrated retail system
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63. (p. 598) 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
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D. Channel length
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64. (p. 598) 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
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A. A long channel exists
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65. (p. 599) The most important determinant of channel length is the degree to which a retail system is A. Concentrated B. Fragmented C. Decentralized D. Globalized
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B. Fragmented
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66. (p. 599) Which of the following statements about fragmented retail systems is ? 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
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C. Fragmented retail systems tend to promote the growth of wholesalers to serve retailers
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67. (p. 599) What kind of retail systems do rural India and China have? A. Fragmented B. Direct C. Indirect D. Concentrated
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A. Fragmented
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68. (p. 599) 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
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B. The orders generated from each sales call can be large
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69. (p. 599) A(n) _____ distribution channel is one that is difficult for outsiders to access. A. Selective B. Intensive C. Exclusive D. Multichannel
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C. Exclusive
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70. (p. 599) 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 on only on elite customers D. It is often difficult for a new firm to get access to shelf space in supermarkets
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D. It is often difficult for a new firm to get access to shelf space in supermarkets
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71. (p. 600) The expertise, competencies and skills of established retailers in a nation and their ability to sell and support the products of international businesses is A. Channel exclusivity B. Channel knowledge C. Channel quality D. Channel skill
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C. Channel quality
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72. (p. 601) Which of the following does not affect a firm's international communication? A. Cultural barriers B. Source effects C. Channel exclusivity D. Noise levels
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C. Channel exclusivity
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73. (p. 602) 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
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D. Develop cross-cultural literacy
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74. (p. 602) 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
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C. Source effects
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75. (p. 602) 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
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B. Country of origin effects
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76. (p. 604) The probability of effective communications is reduced by A. Noise effects B. Location effects C. Country of origin effects D. Source effects
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A. Noise effects
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77. (p. 604) Which of the following statements about barrier to international communication is ? 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
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D. Noise is extremely high in highly developed countries such as the United States
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78. (p. 604) 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
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C. Push strategy
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79. (p. 604) Which of the following statements is ? 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
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B. Mass communication has cost advantages for firms in consumer goods industries that are trying to sell to a large segment of the market
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80. (p. 604) 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
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A. Pull strategy
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81. (p. 604) Factors that determine the relative attractiveness of push and pull strategies include all of the following except A. Product type relative to consumer sophistication B. Channel length C. Noise levels D. Media availability
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C. Noise levels
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82. (p. 604) When firms in the consumer goods industry are trying to sell to a large segment of the market they favor a A. Push strategy B. Pull strategy C. Standardized strategy D. Localized strategy
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B. Pull strategy
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83. (p. 604) A(n) _____ strategy is favored by firms that sell industrial products or other complex products. A. Localized B. Indirect C. Push D. Pull
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C. Push
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84. (p. 606) If media availability is limited, a firm should A. Use a push strategy B. Use a pull strategy C. Consider a longer channel D. Consider a shorter channel
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A. Use a push strategy
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85. (p. 606) When distribution channels are short, firms should A. Use a direct channel B. Use a push strategy C. Focus on consumer products or other standardized products D. Focus on industrial products or other complex products
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B. Use a push strategy
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86. (p. 606) A push strategy is appropriate when A. There are many choices of electronic media B. The firm is selling consumer goods C. Distribution channels are long D. The firm is selling complex new products
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D. The firm is selling complex new products
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87. (p. 606) If a firm is facing long distribution channels, the firm should choose a _____ strategy. A. Competitive advertising B. Price discrimination C. Predatory pricing D. Pull
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D. Pull
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88. (p. 606) Which of the following is an argument that supports global advertising? A. Standardized advertising lowers the costs of value creation by spreading the fixed costs of developing the advertisements over many countries B. Because of concerns about the scarcity of creative talent, some feel that smaller efforts will produce better results than one large effort to develop a campaign C. Even though there are cultural differences between nations, a single advertising theme that is effective worldwide can be easily developed D. Standardized advertising may be implemented even in the face of advertising regulations
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A. Standardized advertising lowers the costs of value creation by spreading the fixed costs of developing the advertisements over many countries
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89. (p. 608) When a company charges whatever the market will bear, the company is using A. Strategic pricing B. Price discrimination C. A push strategy D. A pull strategy
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B. Price discrimination
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90. (p. 608) In order for price discrimination to be successful A. There must be a strong case for arbitrage B. Markets must be kept separate C. Demand must be very elastic D. A large change in demand must be triggered by a small change in price
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B. Markets must be kept separate
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91. (p. 608) If a _____ change in a price produces a _____ change in demand, then price is elastic. A. Small; large B. Small; small C. Large; small D. Large; large
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A. Small; large
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92. (p. 608) A measure of the responsiveness of demand for a product to change in price is referred to as A. Arbitrage demand B. Predatory pricing C. Price elasticity of demand D. Experience curve pricing
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C. Price elasticity of demand
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93. (p. 608) _____ occurs when an individual or business capitalizes on a price differential for a firm's product between two countries by buying the product in the country where the price is low and reselling it in the country where prices are higher. A. Arbitrage B. Strategic pricing C. Price discrimination D. Market pricing
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A. Arbitrage
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94. (p. 608) Which of the following statements about price discrimination is ? A. It exists whenever consumers in a country are charged different prices for the same product B. It involves charging whatever the market will bear C. It is the use of price as a competitive weapon to drive weaker competitors out of a national market D. It makes economic sense to charge the same prices across countries
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B. It involves charging whatever the market will bear
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95. (p. 608) What is the most important factor in determining the elasticity of demand for a product in a given country? A. Personal selling B. Logistics C. Operating revenue D. Income level
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D. Income level
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96. (p. 608) Which of the following statements is ? A. The lesser the number of competitors, the higher the elasticity of demand B. When competitors are limited, consumers' bargaining power is weaker C. A firm may charge a higher price for its product in a country where competition is limited than in one where competition is intense D. When there is high elasticity of demand and a firm raises its prices above those of its competitors, consumers will switch to the competitors' products
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A. The lesser the number of competitors, the higher the elasticity of demand
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97. (p. 609) In a country where competition is limited, A. Prices will be low B. There will be low elasticity of demand C. Prices will be high D. Consumers' bargaining power rises
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C. Prices will be high
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98. (p. 609) For _____ to work, the firm must normally have a profitable position in another national market, which it can use to subsidize aggressive pricing in the market it is trying to monopolize. A. Multipoint pricing B. Value-based pricing C. Experience curve pricing D. Predatory pricing
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D. Predatory pricing
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99. (p. 609) This refers to impact a firm's pricing strategy in one market may have on its rivals' pricing strategy in another market. A. Multipoint pricing B. Experience curve pricing C. Predatory pricing D. Competitive pricing
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A. Multipoint pricing
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100. (p. 615) Tight cross-functional integration between R&D, production and marketing can help a company to ensure that all of the following take place except A. Time to market is minimized B. Development costs are kept in check C. New products are designed for ease of manufacture D. Product development projects are driven by internal needs
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D. Product development projects are driven by internal needs
