Question 1

Frequent business travelers, who are also affluent and eager spenders, represent a global market segment T/F

Accepted Answer

True

Question 2

Branding refers to the process of dividing a firm\'s total customer base into homogeneous clusters in a way that allows management to formulate unique marketing strategies for each group T/F

Accepted Answer

False

Question 3

In international business, marketing is concerned with identifying, measuring, and pursuing customer needs and market opportunities abroad T/F

Accepted Answer

True

Question 4

A reputed American automaker competes in the premium car market segment. It targets affluent buyers with refined tastes who would not mind paying several thousand dollars for a premium car. This is an example of positioning T/F

Accepted Answer

True

Question 5

Adaptation refers to the process of making the marketing program elements uniform, with a view to targeting entire regions, or even the global marketplace, with the same product or service T/F

Accepted Answer

False

Question 6

A standardized marketing approach is inappropriate when products have universal specifications T/F

Accepted Answer

False

Question 7

A standardized marketing approach is appropriate when customers seek similar features in the product or service T/F

Accepted Answer

True

Question 8

Commodities, industrial equipment, and technology products are difficult to standardize T/F

Accepted Answer

False

Question 9

Varying income levels among nations usually necessitate that firms make price adjustments and product modifications for individual markets T/F

Accepted Answer

True

Question 10

Adaptation is counterproductive in multidomestic industries T/F

Accepted Answer

False

Question 11

Consumers prefer globally branded products because branding provides a sense of trust and confidence in their purchasing T/F

Accepted Answer

True

Question 12

A firm can reduce its marketing and advertising costs substantially by focusing on numerous national brands instead of a single global brand T/F

Accepted Answer

False

Question 13

The strength of a global brand is best measured by its brand equity T/F

Accepted Answer

True

Question 14

Global new-product planning teams formulate best practices that the firm implements in all its units worldwide T/F

Accepted Answer

True

Question 15

The degree of control management desires over price setting in foreign markets is considered to be an important external factor affecting international pricing T/F

Accepted Answer

False

Question 16

Prices do not affect customers\' perception of value T/F

Accepted Answer

False

Question 17

Rigid cost-plus pricing is typically favored by highly experienced exporters T/F

Accepted Answer

False

Question 18

Incremental pricing refers to setting prices to cover only the firm\'s variable costs, but not its fixed costs T/F

Accepted Answer

True

Question 19

When an exporter gains a price advantage because its home-country currency is weakening relative to its customer\'s currency, then it should consider lowering the prices of its products T/F

Accepted Answer

False

Question 20

MNEs typically centralize transfer pricing under the direction of the chief financial officer at corporate headquarters T/F

Accepted Answer

True

Question 21

The root cause of gray market activity is a large enough difference in price of the same product between two countries T/F

Accepted Answer

True

Question 22

Gray market activity often leads to enhanced brand equity T/F

Accepted Answer

False

Question 23

International advertising expenditures vary depending on the size and extent of a firm\'s foreign operations T/F

Accepted Answer

True

Question 24

Promotional activities are typically long-term marketing activities T/F

Accepted Answer

False

Question 25

Promotions usually require a high level of intermediary or retailer sophistication to succeed T/F

Accepted Answer

True

Question 26

Most MNEs employ advertising agencies to create promotional content and select media for foreign markets T/F

Accepted Answer

True

Question 27

Direct marketing entails selling directly to end users T/F

Accepted Answer

True

Question 28

Channel length refers to the number of distributors or other intermediaries that it takes to get the product from the manufacturer to the market T/F

Accepted Answer

True

Question 29

The longer the channel, the lesser intermediaries the firm must compensate T/F

Accepted Answer

False

Question 30

Global account management means serving a key global customer in a consistent and standardized manner, regardless of where in the world it operates T/F

Accepted Answer

True

Question 31

In international business, marketing is concerned with ________.  A) disseminating the organizational culture of a firm across global subsidiaries  B) identifying, measuring, and pursuing customer needs and market opportunities abroad  C) maintaining a steady flow of product-based innovations  D) interacting with global business leaders

Accepted Answer

B) identifying, measuring, and pursuing customer needs and market opportunities abroad

Question 32

Which of the following best characterizes the purpose of a global marketing strategy?  A) guides firms on hiring highly skilled resources  B) provides managers with demographic data  C) helps managers check high employee turnover  D) guides firms in targeting the right customer segments

Accepted Answer

D) guides firms in targeting the right customer segments

Question 33

________ is the process of dividing the firm\'s total customer base into homogeneous clusters in a way that allows management to formulate unique marketing strategies for each group.  A) Brand management  B) Customer relationship management  C) Market segmentation  D) Market diversification

Accepted Answer

C) Market segmentation

Question 34

In international business, firms frequently formulate market segments by ________.  A) selling only those products that create derived demand for other related products in the market  B) grouping countries based on macro-level variables  C) grouping competitors based on their hiring strategies  D) grouping identical customers in underground economies

Accepted Answer

B) grouping countries based on macro-level variables

Question 35

A global market segment refers to ________.  A) a group of customers who share similar characteristics across many national markets  B) a group of customers belonging to the same generational group within a country  C) a group of less-affluent customers in the global market  D) a group of buyers in the international market who are largely unaffected by changes in pricing

Accepted Answer

A) a group of customers who share similar characteristics across many national markets

Question 36

Which of the following is true with regard to a global market segment?  A) A global market segment refers to a group of customers belonging to the same generational group within a country.  B) Firms target global market segments by using a relatively uniform marketing strategy and programs.  C) Buyers in a global market segment are typically characterized by low spending power.  D) Buyers in a global market segment rarely buy products representing luxury and style

Accepted Answer

B) Firms target global market segments by using a relatively uniform marketing strategy and programs.

Question 37

________ refers to a marketing strategy in which the firm develops both the product and its marketing to evoke a distinct impression in the customer\'s mind, emphasizing differences from competitors\' offerings.  A) Positioning  B) Standardization  C) Diversifying  D) Adaptation

Accepted Answer

A) Positioning

Question 38

Which of the following is true with regard to positioning?  A) Unlike branding, positioning is not intended to evoke the specific attributes that consumers associate with a product.  B) More often than not, positioning dilutes brand equity.  C) Through positioning, firms emphasize differences from competitors\' offerings.  D) Positioning refers to the process of scaling up production in a market characterized by high

Accepted Answer

C) Through positioning, firms emphasize differences from competitors\' offerings

Question 39

Which of the following is true with regard to a global positioning strategy?  A) A global positioning strategy does not address the shared expectations of a global customer market segment.  B) More often than not, global positioning dilutes brand equity in the international market.  C) A global positioning strategy reduces international marketing costs.  D) Internationalizing firms rarely aim for a global positioning strategy

Accepted Answer

C) A global positioning strategy reduces international marketing costs

Question 40

Taken together, the key elements of a company\'s marketing program are known as the ________.  A) product mix  B) value chain  C) product lifecycle  D) marketing mix

Accepted Answer

D) marketing mix

Question 41

Adaptation is defined as ________.  A) the firm\'s efforts to make its marketing program elements uniform, with a view to targeting entire regions, or even the global marketplace, with the same product or service  B) the firm\'s attempt at altering its organizational structure to facilitate internationalization  C) the firm\'s efforts to modify one or more elements of its international marketing program to accommodate specific customer requirements in a particular market  D) the firm\'s effort to minimize employee attrition by rewarding performance

Accepted Answer

C) the firm\'s efforts to modify one or more elements of its international marketing program to accommodate specific customer requirements in a particular market

Question 42

In which of the following industries is standardization more likely to be pursued?  A) local industries  B) software  C) publishing  D) credit cards

Accepted Answer

D) credit cards

Question 43

A furniture company that makes its marketing program elements uniform, targeting entire regions with similar products, is demonstrating ________.  A) product diversification  B) customization  C) standardization  D) adaptation

Accepted Answer

C) standardization

Question 44

When managers attempt to standardize their international marketing program, they can expect ________.  A) diminished efficiency  B) cost reduction  C) brand dilution  D) very high profit margins

Accepted Answer

B) cost reduction

Question 45

A global brand can best be defined as ________.  A) a brand with a complicated value-chain  B) a brand that focuses on a single generational group within a country  C) a brand that uses a variety of marketing campaigns in different markets  D) a brand whose positioning, advertising strategy, look, and personality are standardized worldwide

Accepted Answer

D) a brand whose positioning, advertising strategy, look, and personality are standardized worldwide

Question 46

Adaptation is often necessitated due to ________.  A) differences across countries in language, culture, economic conditions, and other factors  B) unstable demand  C) high import tariffs  D) similarities in customer preferences across various demographic groups worldwide and the increased emphasis on the homogenization of global markets

Accepted Answer

A) differences across countries in language, culture, economic conditions, and other factors

Question 47

In which of the following industries is an adaptation strategy LEAST likely to be appropriate?  A) consumer electronics  B) publishing  C) software  D) television broadcasting

Accepted Answer

A) consumer electronics

Question 48

Managers consider several different rationales when adapting marketing program elements, such as ________.  A) high and relatively stable incomes of buyers belonging to the global market segment  B) stable demand of consumer goods worldwide  C) differences in living standards and economic conditions  D) need for improved planning and control

Accepted Answer

C) differences in living standards and economic conditions

Question 49

Cold-Aire Inc. manufactures refrigerators from its facilities in the United States and China and ships them to retail stores around the world. Kitchen sizes vary around the world, and as a result, refrigerator sizes must vary as well. U.S. retailers want large refrigerators, while European and Asian retailers demand smaller units. Cold-Aire manufactures over 20 different models of refrigerators, which often vary in size by only a few inches. Cold-Aire managers are concerned that the firm is losing money because of product adaptations. Cold-Aire management is meeting to discuss the various cost-saving options for the firm.  Which of the following questions would be the most important for Cold-Aire managers to evaluate when determining how the firm could reduce production costs in a single market?  A) Has the demand for Cold-Aire refrigerators declined in recent years?  B) Are customized Cold-Aire refrigerators as user friendly as the ones that are not?  C) Can Cold-Aire standardize its refrigerators?  D) Is Cold-Aire refrigerators likely to have greater demand in warmer countries than in colder regions?

Accepted Answer

C) Can Cold-Aire standardize its refrigerators?

Question 50

Cold-Aire Inc. manufactures refrigerators from its facilities in the United States and China and ships them to retail stores around the world. Kitchen sizes vary around the world, and as a result, refrigerator sizes must vary as well. U.S. retailers want large refrigerators, while European and Asian retailers demand smaller units. Cold-Aire manufactures over 20 different models of refrigerators, which often vary in size by only a few inches. Cold-Aire managers are concerned that the firm is losing money because of product adaptations. Cold-Aire management is meeting to discuss the various cost-saving options for the firm.  Which of the following most likely supports Cold-Aire implementing a regional strategy of refrigerator standardization?  A) Refrigerator sizes within Latin America tend to be similar.  B) Distribution channels in Asian countries are usually complicated.  C) American kitchens are typically more spacious than Asian ones.  D) Customers in Europe demand exterior ice and water dispensers

Accepted Answer

A) Refrigerator sizes within Latin America tend to be similar.

Question 51

Which of the following best supports Cold-Aire making fewer refrigerator adaptations?  A) Adaptation caters to local consumer demands.  B) Standardization reduces manufacturing expenses.  C) Adaptation establishes a sense of buyer loyalty.  D) Standardization limits choices available to consumers

Accepted Answer

B) Standardization reduces manufacturing expenses.

Question 52

Which of the following would most likely be a result of increased standardization of ColdAire refrigerators?  A) Cold-Aire would stop exporting refrigerators completely.  B) Cold-Aire would open a facility to produce customized refrigerator models.  C) Cold-Aire would implement a uniform international marketing campaign.  D) Cold-Aire would hire fewer workers and pay lower wages.

Accepted Answer

C) Cold-Aire would implement a uniform international marketing campaign.

Question 53

Which of the following refers to an advantage for firms that adapt a unique marketing program for an individual market?  A) By doing so, firms decrease their reliance on foreign market intermediaries for large sales.  B) By doing so, firms scale up production substantially to meet the needs of a large and growing market.  C) Products are tailored to specifically meet the exclusive needs of customers in that market.  D) Governments provide heavy tax reliefs to firms that modify products and services.

Accepted Answer

C) Products are tailored to specifically meet the exclusive needs of customers in that market.

Question 54

Adaptation is more costly than standardization because ________.  A) a firm that chooses adaptation over standardization is likely to lose customers in the long run  B) adaptation often requires the firm to engage in substantial modifications to product design, manufacturing, pricing, distribution, and communications  C) adaptation requires the firm to scale up production without regard to quality  D) standardization holds no market risks

Accepted Answer

B) adaptation often requires the firm to engage in substantial modifications to product design, manufacturing, pricing, distribution, and communications

Question 55

Perhaps the most important distinction between standardization and adaptation is that ________.  A) standardization helps the firm customize products according to customer preferences, while adaptation helps the firm save time  B) standardization helps the firm cut costs, while local adaptation helps the firm more precisely cater to local needs and requirements  C) standardization helps the firm cater to the needs of local customers, while adaptation helps the firm save costs through mass production  D) standardization helps the firm upgrade quality to suit the unique tastes of consumers, while adaptation emphasizes uniformity

Accepted Answer

B) standardization helps the firm cut costs, while local adaptation helps the firm more precisely cater to local needs and requirements

Question 56

Brand equity can best be defined as the ________.  A) market value of a brand  B) attractiveness of a brand name  C) durability of a brand  D) lack of customer confidence in a brand

Accepted Answer

A) market value of a brand

Question 57

Which of the following characterize the most successful global brands?  A) low visibility  B) narrow appeal  C) status symbols  D) highly complex product features

Accepted Answer

C) status symbols

Question 58

An American automaker operating in the Asian and the European markets designs various models around a standardized platform. The firm adds parts, features, and regular units to this basic standardized platform according to the preferences of its customers. This exemplifies ________.  A) segmentation  B) customer relations management  C) brand dilution  D) modular architecture

Accepted Answer

D) modular architecture

Question 59

All of the following are true of global new-product planning teams EXCEPT ________.  A) they assemble employees with special knowledge and expertise  B) they are responsible for global promotion of products and services  C) they include geographically-diverse employees in team activities  D) they determine which elements of the product will be standardized

Accepted Answer

B) they are responsible for global promotion of products and services

Question 60

A ________ is a group of managers within a firm that determines which elements of the product will be standardized and which will be adapted locally.  A) research and development team  B) global new-product planning team  C) customer relations management  D) talent management team

Accepted Answer

B) global new-product planning team

Question 61

Which of the following constitutes a major disadvantage for exporting firms that primarily use independent distributors based abroad?  A) inability to monitor currency exchange rates  B) lack of control over pricing  C) absence of brand loyalty among customers  D) limited access to low-cost labor

Accepted Answer

B) lack of control over pricing

Question 62

Locating manufacturing in those countries with low-cost labor enables a firm to ________.  A) charge premium prices  B) create artificial demand  C) standardize products  D) charge lower prices

Accepted Answer

D) charge lower prices

Question 63

All of the following refer to external factors that impact international pricing EXCEPT ________.  A) cost of manufacturing  B) value-added taxes  C) shipping  D) anticipated fluctuations in currency exchange rates

Accepted Answer

A) cost of manufacturing

Question 64

The problem of end-user prices reaching exorbitant levels in the export market, caused by multilayered distribution channels, intermediary margins, tariffs, and other international customer costs is known as ________.  A) international price escalation  B) incremental pricing  C) standardization  D) puffery

Accepted Answer

A) international price escalation

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