Question 1

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

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.

Accepted Answer

false

Question 3

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

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.

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.

Accepted Answer

false

Question 6

A standardized marketing approach is inappropriate when products have universal specifications

Accepted Answer

false

Question 7

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

Accepted Answer

true

Question 8

Commodities, industrial equipment, and technology products are difficult to standardize

Accepted Answer

false

Question 9

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

Accepted Answer

true

Question 10

Adaptation is counterproductive in multidomestic industries

Accepted Answer

false

Question 11

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

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.

Accepted Answer

false

Question 13

The strength of a global brand is best measured by its brand equity.

Accepted Answer

true

Question 14

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

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.

Accepted Answer

false

Question 16

Prices do not affect customers\' perception of value.

Accepted Answer

false

Question 17

Rigid cost-plus pricing is typically favored by highly experienced exporters.

Accepted Answer

false

Question 18

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

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.

Accepted Answer

false

Question 20

MNEs typically centralize transfer pricing under the direction of the chief financial officer at corporate headquarters.

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.

Accepted Answer

true

Question 22

Gray market activity often leads to enhanced brand equity.

Accepted Answer

false

Question 23

International advertising expenditures vary depending on the size and extent of a firm\'s foreign operations.

Accepted Answer

true

Question 24

Promotional activities are typically long-term marketing activities.

Accepted Answer

false

Question 25

Promotions usually require a high level of intermediary or retailer sophistication to succeed.

Accepted Answer

true

Question 26

Most MNEs employ advertising agencies to create promotional content and select media for foreign markets.

Accepted Answer

true

Question 27

Direct marketing entails selling directly to end users.

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.

Accepted Answer

true

Question 29

The longer the channel, the lesser intermediaries the firm must compensate.

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.

Accepted Answer

true

Question 31

In international business, marketing is concerned with ________.

Accepted Answer

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?

Accepted Answer

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.

Accepted Answer

Market segmentation

Question 34

In international business, firms frequently formulate market segments by ________.

Accepted Answer

grouping countries based on macro-level variables

Question 35

A global market segment refers to ________.

Accepted Answer

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?

Accepted Answer

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.

Accepted Answer

Positioning

Question 38

Which of the following is true with regard to positioning?

Accepted Answer

Through positioning, firms emphasize differences from competitors\' offerings.

Question 39

Which of the following is true with regard to a global positioning strategy?

Accepted Answer

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 ________.

Accepted Answer

marketing mix

Question 41

Adaptation is defined as ________.

Accepted Answer

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?

Accepted Answer

credit cards

Question 43

A furniture company that makes its marketing program elements uniform, targeting entire regions with similar products, is demonstrating ________.

Accepted Answer

standardization

Question 44

When managers attempt to standardize their international marketing program, they can expect ________.

Accepted Answer

cost reduction

Question 45

A global brand can best be defined as ________.

Accepted Answer

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

Question 46

Adaptation is often necessitated due to ________.

Accepted Answer

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?

Accepted Answer

consumer electronics

Question 48

Managers consider several different rationales when adapting marketing program elements, such as ________.

Accepted Answer

differences in living standards and economic conditions

Question 49

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?

Accepted Answer

Can Cold-Aire standardize its refrigerators?

Question 50

Which of the following most likely supports Cold-Aire implementing a regional strategy of refrigerator standardization?

Accepted Answer

Refrigerator sizes within Latin America tend to be similar.

Question 51

Which of the following best supports Cold-Aire making fewer refrigerator adaptations?

Accepted Answer

Standardization reduces manufacturing expenses.

Question 52

Which of the following would most likely be a result of increased standardization of Cold-Aire refrigerators?

Accepted Answer

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?

Accepted Answer

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

Question 54

Adaptation is more costly than standardization because ________.

Accepted Answer

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 ________.

Accepted Answer

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 ________.

Accepted Answer

market value of a brand

Question 57

Which of the following characterize the most successful global brands?

Accepted Answer

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

Accepted Answer

modular architecture

Question 59

All of the following are true of global new-product planning teams EXCEPT ________.

Accepted Answer

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.

Accepted Answer

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?

Accepted Answer

lack of control over pricing

Question 62

Locating manufacturing in those countries with low-cost labor enables a firm to ________.

Accepted Answer

charge lower prices

Question 63

All of the following refer to external factors that impact international pricing EXCEPT ________.

Accepted Answer

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 ________.

Accepted Answer

international price escalation

MAN3600 ch.18 – Flashcards

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