Which of the following is not an element that constitutes a firm's marketing mix?
C. Reverse engineering
The set of choices the firm offers to its targeted market is known as the
A. Marketing mix
Research has long maintained that a major factor of success for new products is the closeness of the relationship between
B. Marketing and R&D
According to Levitt, which of the following statements is true?
A. 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.
C. Cultural and economic
The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as
A. Market segmentation
If market segments transcend national borders,
B. 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
B. Traditions
Consumers in highly developed countries value _____ as compared to their counterparts in less developed nations.
C. Product attributes
Which of the following statements is false?
A. Product reliability may be a more important attribute in most advanced countries
The means a firm chooses for delivering the product to the consumer is its
D. Distribution strategy
The way a product is delivered is determined by
A. A firm's entry strategy
Contrary to Levitt's suggestions, consumers in the most developed countries are often
C. Not willing to sacrifice their preferred attributes for lower prices
In a concentrated retail system,
D. A few retailers supply most of the market
By acquiring retailers in different countries, large global retailers such as Carrefour and Wal-Mart have increased
A. Retail concentration
A country with high car ownership, a large number of households with refrigerators and a large number of two income families tend to have
C. Retail concentration
In a _____ retail system, a few retailers supply most of the market.
D. Concentrated
Which of the following is not a key difference between distribution systems in different countries?
A. Channel speed
A _____ retail system is one in which there are many retailers, no one of which has a major share of the market.
D. Fragmented??
Which of the following statements about retail systems is true?
A. One factor contributing to greater retail concentration is an increase in car ownership
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
B. Tradition of established local neighborhoods in which people walk to stores
Developed countries are more likely to have a
A. Concentrated retail system
The number of intermediaries between the manufacturer and the consumer is referred to as
D. Channel length
If a producer sells through an import agent, a wholesaler and a retailer, then
A. A long channel exists
The most important determinant of channel length is the degree to which a retail system is
B. Fragmented
Which of the following statements about fragmented retail systems is true?
C. Fragmented retail systems tend to promote the growth of wholesalers to serve retailers
What kind of retail systems do rural India and China have?
A. Fragmented
With a concentrated retail sector,
B. The orders generated from each sales call can be large
A(n) _____ distribution channel is one that is difficult for outsiders to access.
C. Exclusive
When a channel is exclusive
D. It is often difficult for a new firm to get access to shelf space in supermarkets
The expertise, competencies and skills of established retailers in a nation and their ability to sell and support the products of international businesses is
C. Channel quality
Which of the following does not affect a firm's international communication?
C. Channel exclusivity
To overcome cultural barriers, companies should
D. 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.
C. Source effects
The extent to which the place of manufacturing influences product evaluations is known as
B. Country of origin effects
The probability of effective communications is reduced by
A. Noise effects
Which of the following statements about barrier to international communication is true?
D. 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
C. Push strategy
Which of the following statements is true?
B. Mass communication has cost advantages for firms in consumer goods industries that are trying to sell to a large segment of the market
A firm that depends more on mass media advertising to communicate the marketing message to potential consumers is using a
A. Pull strategy
Factors that determine the relative attractiveness of push and pull strategies include all of the following except
C. Noise levels
When firms in the consumer goods industry are trying to sell to a large segment of the market they favor a
B. Pull strategy
A(n) _____ strategy is favored by firms that sell industrial products or other complex products.
C. Push
If media availability is limited, a firm should
A. Use a push strategy
A push strategy is appropriate when
D. The firm is selling complex new products
If a firm is facing long distribution channels, the firm should choose a _____ strategy
D. Pull
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
When a company charges whatever the market will bear, the company is using
B. Price discrimination
In order for price discrimination to be successful
B. Markets must be kept separate
If a _____ change in a price produces a _____ change in demand, then price is elastic.
A. Small; large
A measure of the responsiveness of demand for a product to change in price is referred to as
C. Price elasticity of demand
_____ 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??
Which of the following statements about price discrimination is true?
B. It involves charging whatever the market will bear
What is the most important factor in determining the elasticity of demand for a product in a given country?
D. Income level
Which of the following statements is false?
A. The lesser the number of competitors, the higher the elasticity of demand
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.
D. Predatory pricing
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
Tight cross-functional integration between R&D, production and marketing can help a company to ensure that all of the following take place except
D. Product development projects are driven by internal needs