Which of the following is one of the four elements that constitute a firm's marketing mix?
Distribution strategy
The set of choices the firm offers to its targeted market is known as the ____.
marketing mix
Research has long maintained that a major factor of success for new products is the closeness of the relationship between:
marketing and R&D
According to Levitt, which of the following statements is true?
Technology drives the world toward a converging commonalty.
The continuing persistence of _____ differences between nations acts as a major brake on any trend toward global consumer tastes and preferences
cultural and economic
The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as _____.
market segmentation
If market segments transcend national borders:
the company can view the global market as a single entity and pursue a global strategy.
The most important aspect of a country's cultural differences, particularly important in foodstuffs and beverages, is the impact of _____.
traditions
Consumers in highly developed countries value _____ as compared to their counterparts in less developed nations.
product attributes
Contrary to Levitt's suggestions, consumers in the most developed countries are often:
not willing to sacrifice their preferred attributes for lower prices.
The means a firm chooses for delivering the product to the consumer is its _____.
distribution strategy
The way a product is delivered is determined by the _____.
firm's entry strategy
In a concentrated retail system:
a few retailers supply most of the market
A country with high car ownership, a large number of households with refrigerators, and a large number of two-income families tend to have _____.
retail concentration
A _____ retail system is one in which there are many retailers, no one of which has a major share of the market.
fragmented
Which of the following statements about retail systems is true?
One factor contributing to greater retail concentration is an increase in car ownership
Which of the following countries has a concentrated retail system?
United States
_____ refers to the number of intermediaries between the producer (or manufacturer) and the consumer.
Channel length
If a producer sells through an import agent, a wholesaler, and a retailer, then:
a long channel exists.
The most important determinant of channel length is the degree to which a retail system is _____.
fragmented
Which of the following statements about fragmented retail systems is true?
Fragmented retail systems tend to promote the growth of wholesalers to serve retailers
What kind of retail systems do rural India and China have?
fragmented
With a concentrated retail sector:
the orders generated from each sales call can be large.
A(n) _____ distribution channel is one that is difficult for outsiders to access
exclusive
When a channel is exclusive
it is often difficult for a new firm to get access to shelf space in supermarkets
_____ 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.
Channel quality
Which of the following statements about the choice of distribution strategy is true?
The longer a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product.
In the 1960s, the Swedish vacuum manufacturer Electrolux successfully marketed vacuums in the United Kingdom with the slogan "Nothing sucks like an Electrolux".
The informal United States meaning of the word 'sucks' was already well known in the United Ki
cultural differences
To overcome cultural barriers, companies should:
develop cross-cultural literacy.
When the receiver of a message evaluates a message based on the status or image of the sender, _____ are said to have occurred.
source effects
The extent to which the place of manufacturing influences product evaluations is known as _____.
country of origin effects
The "Swiss Made" label has leveraged several watch-making companies (for example, TAG Heuer) for decades now. This is an example of a ____ effect.
country of origin
Which of the following is an example of a positive source effect?
An Audi R8
The probability of effective communications is reduced by:
noise
Which of the following statements about barriers to international communication is true?
Noise is extremely high in highly developed countries such as the United States
When a firm emphasizes personal selling rather than mass media advertising in the promotional mix, the firm is using a _____.
push strategy
Which of the following statements is true?
Direct selling may be the only way to reach consumers in poor nations with low literacy levels
A firm that depends more on mass media advertising to communicate the marketing message to potential consumers is using a _____.
pull strategy
A push strategy is appropriate when:
the firm is selling complex new products.
A pull strategy should be used when:
the distribution channels are long.
Which of the following is an argument that supports global advertising?
Standardized advertising lowers the costs of value creation by spreading the fixed costs of developing the advertisements over many countries.
When a company charges whatever the market will bear, the company is using _____.
price discrimination
In order for price discrimination to be successful:
national markets must be kept separate.
_____ 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
Arbitrage
A measure of the responsiveness of demand for a product to change in price is referred to as:
price elasticity of demand
If a _____ change in a price produces a _____ change in demand, then demand is said to be elastic.
small, large
Which of the following statements about price discrimination is true?
A necessary condition for profitable price discrimination is different price elasticities of demand in different countries.
Which of the following is one of the important factors in determining the elasticity of demand for a product in a given country?
income level
In a country where competition is limited:
prices will be high
_____ pricing is the use of price as a competitive weapon to drive weaker competitors out of a national market.
predatory
_____ refers to the fact that a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market.
Multipoint pricing
Many firms pursuing a(n) _____ pricing strategy on an international scale will price low worldwide in attempting to build global sales volume as rapidly as possible, even if this means taking large losses initially.
experience curve
_____ occurs whenever a firm sells a product for a price that is less than the cost of producing it.
Dumping
The _____ industry is often thought of as one in which global standardization of the marketing mix is the norm.
financial services
Other things being equal, the rate of new-product development seems to be greater in countries where:
consumers are affluent.
Tight cross-functional integration between R&D, production, and marketing can help a company to ensure that which of the following take place?
New products are designed for ease of manufacture.
Which of the following is an advantage of establishing cross-functional product development teams?
It helps teams reduce the conflicts within product development teams.
Drober Consulting is a large software service provider. The company has the largest market share in the industry. In order to restrain the smaller competitors in the market, the company sells some of its products at very low prices. This is an example of
predatory
Dumping occurs whenever a firm sells a product:
for a price that is less than the cost of producing it
If a marketer asks "Is the demand for the product among customers in the international market segments targeted similar to domestic demands?," what element of the marketing mix is being addressed?
Pricing strategy
_____ involves issues such as (1) translation of questionnaires and reports into appropriate foreign languages and (2) accounting for cultural and environmental differences in data collection.
International market research
_____ is an international market research company based in London that works with more than half of the Fortune 500 companies
Kantar
This step in international market research often relates to the cost of collecting primary data that can address the research problem and objectives directly versus using available secondary data.
Assessing the costs and benefits of the research
The process of identifying distinct groups of consumers whose purchasing behavior differs from others in important ways is known as _____.
market segmentation
Consumers in the most developed countries are
often not willing to sacrifice their preferred attributes for lower prices
Differences in _____ constrain the globalization of markets
technical standards
There is a tendency for greater retail concentration in _____.
developed countries
The number of intermediaries between the producer and the consumer is known as the _____.
channel length
A channel is considered to be short if the producer sells:
directly to the consumer
Countries with _____ retail systems tend to have long channels of distribution
fragmented
A(n) _____ is one that is difficult for outsiders to access
exclusive distribution channel
French wine, Italian clothes, and German luxury cars all benefit from _____.
source effects
When a company emphasizes personal selling, the company is probably using a _____.
push strategy
A _____ is generally favored by consumer goods firms that are trying to sell to a large segment of the market
pull strategy
A firm may be prevented from using _____ because of advertising regulations.
standardized advertising
The use of price as a competitive weapon to drive weaker competitors out of a national market is known as _____.
Predatory pricing
The increasing pace of _____ has resulted in a dramatic shortening of product life cycles
technological change
New-product development
has a high failure rate
Designing for manufacturing
can increase product quality
The need to integrate R&D and marketing to adequately commercialize new technologies poses special problems in the international business because
commercialization may require different versions of a new product to be produced for various countries.