Question 1

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

Accepted Answer

A)   Higher selling costs in a fragmented retail sector
B)   The inability to enter exclusive distribution channels
C)   Lower selling costs in a concentrated retail sector
D)   Higher prices that consumers are charged
E)   Greater aggregate markups due to a lack of intermediariesF) B) and E)
G) None of the above D

Question 2

Which of the following is true of price discrimination as a part of international pricing strategy?

Accepted Answer

A)   The more competitors there are, the lesser consumers' bargaining power will be.
B)   The more competitors there are, the less likely consumers will be to buy from the firm that charges the lowest price.
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)   Many competitors cause low elasticity of demand.
E)   If a firm raises its prices above those of its competitors, consumers will refuse to switch to the competitors' products.F) A) and D)
G) B) and C)

Question 3

Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?

Accepted Answer

A)   The rise of global media phenomenon seems to support Levitt's argument.
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, in real-world global markets, firms do not tailor their products to suit different countries.F) B) and D)
G) B) and E)

Question 4

Which of the following is a statement made by Theodore Levitt about the globalization of world markets?

Accepted Answer

A)   Capitalism is the force that drives the world toward a converging commonality.
B)   Multinational 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.F) A) and C)
G) A) and D)

Question 5

_____ exists whenever consumers in different countries are charged different prices for the same product.

Accepted Answer

A)   Penetration pricing
B)   Premium pricing
C)   Predatory pricing
D)   Price discrimination
E)   Price skimmingF) D) and E)
G) B) and E)

Question 6

In terms of the factors affecting product attributes,the impact of _____ is particularly important in foodstuffs and beverages.

Accepted Answer

A)   language
B)   nationality
C)   religion
D)   tradition
E)   genderF) A) and B)
G) C) and D)

Question 7

Discuss the arguments for and against standardized advertising.

Accepted Answer

The support for standardized advertising is threefold.First,it has significant economic advantages.Standardized advertising lowers the costs of value creation by spreading the fixed costs of developing the advertisements over many countries.Second,there is the concern that creative talent is scarce,so one large effort to develop a campaign will produce better results than 40 or 50 smaller efforts.A third justification for a standardized approach is that many brand names are global.With the substantial amount of international travel today and the considerable overlap in media across national borders,many international firms want to project a single brand image to avoid confusion caused by local campaigns.This is particularly important in regions such as western Europe,where travel across borders is almost as common as travel across state lines in the United States.
There are two main arguments against globally standardized advertising.First,cultural differences among nations are such that a message that works in one nation can fail miserably in another.Cultural diversity makes it extremely difficult to develop a single advertising theme that is effective worldwide.Messages directed at the culture of a given country may be more effective than global messages.Second,advertising regulations may block implementation of standardized advertising.

Question 8

Briefly describe the influence of the location of research and development on new-product development.

Accepted Answer

Ideas for new products are stimulated by...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

With regard to communication strategies,what is the difference between a push and a pull strategy?

Accepted Answer

The main decision with regard to communi...

Question 11

Which of the following factors helps a firm shorten channel length?

Accepted Answer

A)   The entry of large discount superstores
B)   A firm's insistence on dealing with wholesalers instead of retailers
C)   Fragmentation of a retail system
D)   A small sales force
E)   Smaller sales orders generated from sales callsF) A) and E)
G) A) and C)

Question 12

Which of the following is an advantage of longer distribution channels?

Accepted Answer

A)   Competitive pricing strategies
B)   Lower markups
C)   Lower product prices
D)   Reduced selling costs in fragmented retail sectors
E)   Lower profit margins due to multiple intermediariesF) A) and E)
G) D) and E)

Question 13

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.

Accepted Answer

A) True 
 B)False

Question 14

The best way for a firm to overcome cultural barriers is to:

Accepted Answer

A)   hire only local managers.
B)   develop cross-cultural literacy.
C)   encourage cosmopolitan tastes and preferences.
D)   operate in markets that are culturally similar to its home market.
E)   use the same marketing message in every country.F) All of the above
G) B) and C)

Question 15

Which of the following is true of market segmentation?

Accepted Answer

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.F) A) and B)
G) B) and E) E

Question 16

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

Accepted Answer

A)   flexible
B)   consistent
C)   inelastic
D)   elastic
E)   dynamicF) D) and E)
G) A) and B)

Question 17

Which of the following is true of choosing a distribution strategy?

Accepted Answer

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 that consumers are charged for the final product.F) A) and B)
G) A) and C)

Question 18

The members of a cross-functional team should have:

Accepted Answer

A)   low standing within their respective functions.
B)   the ability to put functional and national advocacy first.
C)   the ability to contribute functional expertise.
D)   the ability to solely focus on the ongoing work of their respective functions.
E)   the ability to work on several projects simultaneously.F) A) and B)
G) A) and C)

Question 19

Describe the differences in distribution systems between countries in terms of retail concentration.

Accepted Answer

In some countries,the retail system is v...

Question 20

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.

Accepted Answer

A) True 
 B)False

Exam 16: Global Marketing and R-D

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

Correct Answer
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D

Which of the following is true of price discrimination as a part of international pricing strategy?

Correct Answer
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Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?

Correct Answer
verified

Which of the following is a statement made by Theodore Levitt about the globalization of world markets?

Correct Answer
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_____ exists whenever consumers in different countries are charged different prices for the same product.

Correct Answer
verified

In terms of the factors affecting product attributes,the impact of _____ is particularly important in foodstuffs and beverages.

Correct Answer
verified

Discuss the arguments for and against standardized advertising.

Briefly describe the influence of the location of research and development on new-product development.

Correct Answer
verified
Ideas for new products are stimulated by...
View Answer

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

Correct Answer
verified

With regard to communication strategies,what is the difference between a push and a pull strategy?

Correct Answer
verified
The main decision with regard to communi...
View Answer

Which of the following factors helps a firm shorten channel length?

Correct Answer
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Which of the following is an advantage of longer distribution channels?

Correct Answer
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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.

Correct Answer
verified

The best way for a firm to overcome cultural barriers is to:

Correct Answer
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Which of the following is true of market segmentation?

Correct Answer
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E

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

Correct Answer
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Which of the following is true of choosing a distribution strategy?

Correct Answer
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The members of a cross-functional team should have:

Correct Answer
verified

Describe the differences in distribution systems between countries in terms of retail concentration.

Correct Answer
verified
In some countries,the retail system is v...
View Answer

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.

Correct Answer
verified

Exam 16: Global Marketing and R-D

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

Correct AnswerverifiedD

Which of the following is true of price discrimination as a part of international pricing strategy?

Correct AnswerverifiedShow Answer

Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?

Correct AnswerverifiedShow Answer

Which of the following is a statement made by Theodore Levitt about the globalization of world markets?

Correct AnswerverifiedShow Answer

_____ exists whenever consumers in different countries are charged different prices for the same product.

Correct AnswerverifiedShow Answer

In terms of the factors affecting product attributes,the impact of _____ is particularly important in foodstuffs and beverages.

Correct AnswerverifiedShow Answer

Discuss the arguments for and against standardized advertising.

Briefly describe the influence of the location of research and development on new-product development.

Correct AnswerverifiedIdeas for new products are stimulated by...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

With regard to communication strategies,what is the difference between a push and a pull strategy?

Correct AnswerverifiedThe main decision with regard to communi...View AnswerShow Answer

Which of the following factors helps a firm shorten channel length?

Correct AnswerverifiedShow Answer

Which of the following is an advantage of longer distribution channels?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

The best way for a firm to overcome cultural barriers is to:

Correct AnswerverifiedShow Answer

Which of the following is true of market segmentation?

Correct AnswerverifiedE

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

Correct AnswerverifiedShow Answer

Which of the following is true of choosing a distribution strategy?

Correct AnswerverifiedShow Answer

The members of a cross-functional team should have:

Correct AnswerverifiedShow Answer

Describe the differences in distribution systems between countries in terms of retail concentration.

Correct AnswerverifiedIn some countries,the retail system is v...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

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D

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Ideas for new products are stimulated by...
View Answer

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The main decision with regard to communi...
View Answer

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E

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In some countries,the retail system is v...
View Answer

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