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Chapter 13 - Global Marketing

41. (p. 592) Which of the following is not an element that constitutes a firm's marketing mix?
A. Product attributes
B. Communication strategy
C. Reverse engineering
D. Distribution strategy

42. (p. 592) The set of choices the firm offers to its targeted market is known as the
A. Marketing mix
B. Marketing concept
C. Marketing strategy
D. Market promotion

43. (p. 592) Research has long maintained that a major factor of success for new products is the closeness
of the relationship between
A. Finance and marketing
B. Marketing and R&D
C. Finance and materials management
D. Finance and R&D

44. (p. 592) According to Levitt, which of the following statements is true?
A. Technology drives the world toward a converging commonalty
B. There are accustomed differences in national preferences
C. The multinational corporation operates in a number of countries at low relative costs
D. The global corporation operates with resolute consistency at high relative costs

45. (p. 593) The continuing persistence of _____ differences between nations acts as a major brake on any
trend toward global consumer tastes and preferences.
A. Technological and industrial
B. Institutional and political
C. Cultural and economic
D. GNP level and growth rate

46. (p. 593) The identification of distinct groups of consumers whose purchasing behavior differs from
others in important ways is known as
A. Market segmentation
B. Market penetration
C. Diversification strategy
D. Differentiation

47. (p. 595) If market segments transcend national borders,

A. The company should develop unique products for each national market
B. The company can view the global market as a single entity and pursue a global strategy
C. A localization strategy would be appropriate
D. Consumers will have differing purchasing behavior in different nations

48. (p. 595) The most important aspect of a country's cultural differences, particularly important in
foodstuffs and beverages is the impact of
A. Values
B. Traditions
C. Norms
D. Attitudes
Chapter 13 - Global Marketing

49. (p. 596) Consumers in highly developed countries value _____ as compared to their counterparts in
less developed nations.
A. Price
B. Product reliability
C. Product attributes
D. Standardized products

50. (p. 596) Which of the following statements is false?

A. Product reliability may be a more important attribute in most advanced countries
B. Consumers in highly developed countries tend to build a lot of extra performance attributes into their
C. Consumers in the most developed countries are often not willing to sacrifice their preferred attributes
for lower prices
D. Consumers in the most advanced countries often shun globally standardized products that have been
developed with the lowest common denominator in mind

51. (p. 597) The means a firm chooses for delivering the product to the consumer is its
A. Communication strategy
B. Segmentation strategy
C. Product attributes
D. Distribution strategy

52. (p. 597) The way a product is delivered is determined by

A. A firm's entry strategy
B. A firm's product positioning
C. The target market
D. Market segmentation

53. (p. 597) Contrary to Levitt's suggestions, consumers in the most developed countries are often
A. Willing to sacrifice their preferred attributes for lower prices
B. Not willing to pay more for products that have additional features customized to their tastes
C. Not willing to sacrifice their preferred attributes for lower prices
D. Willing to accept globally standardized products that have been developed with the lowest common
denominator in mind

54. (p. 597) In a concentrated retail system,

A. There are many retailers who have a major share of the market
B. There are many retailers, no one of which has a major share of the market
C. A few retailers supply a small segment of the market
D. A few retailers supply most of the market

55. (p. 598) By acquiring retailers in different countries, large global retailers such as Carrefour and Wal-
Mart have increased
A. Retail concentration
B. Retail fragmentation
C. Retail dispersion
D. Retail crowding
Chapter 13 - Global Marketing

56. (p. 598) A country with high car ownership, a large number of households with refrigerators and a
large number of two income families tend to have
A. Retail division
B. Retail dispersion
C. Retail concentration
D. Retail fragmentation

57. (p. 597) In a _____ retail system, a few retailers supply most of the market.
A. Fragmented
B. Dispersed
C. Focused
D. Concentrated

58. (p. 597) Which of the following is not a key difference between distribution systems in different
A. Channel speed
B. Channel length
C. Channel exclusivity
D. Channel quality

59. (p. 597-598) A _____ retail system is one in which there are many retailers, no one of which has a
major share of the market.
A. Concentrated
B. Consolidated
C. Focused
D. Fragmented

60. (p. 598) Which of the following statements about retail systems is true?
A. One factor contributing to greater retail concentration is an increase in car ownership
B. The number of households with refrigerators leads to lesser retail concentration in developed countries
C. There is a tendency for greater retail concentration in many developing countries
D. Retail systems are very fragmented in developed countries

61. (p. 598) 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
A. Number of households with refrigerators and freezers
B. Tradition of established local neighborhoods in which people walk to stores
C. Increase in car ownership
D. Number of two-income households that accompany development

62. (p. 598) Developed countries are more likely to have a

A. Concentrated retail system
B. Fragmented retail system
C. Crowded retail system
D. Dispersed retail system

63. (p. 598) The number of intermediaries between the manufacturer and the consumer is referred to as
A. Channel reach
B. Channel concentration
C. Channel exclusivity
D. Channel length
Chapter 13 - Global Marketing

64. (p. 598) If a producer sells through an import agent, a wholesaler and a retailer, then
A. A long channel exists
B. The retail system must be concentrated
C. The internet probably plays a big role in the economy
D. There is no channel

65. (p. 599) The most important determinant of channel length is the degree to which a retail system is
A. Concentrated
B. Fragmented
C. Decentralized
D. Globalized

66. (p. 599) Which of the following statements about fragmented retail systems is true?
A. Countries with fragmented retail systems tend to have short channels of distribution
B. The more fragmented the retail system, the less expensive it is for a firm to make contact with each
individual retailer
C. Fragmented retail systems tend to promote the growth of wholesalers to serve retailers
D. When the retail sector is very fragmented, it makes sense for the firm to deal directly with retailers

67. (p. 599) What kind of retail systems do rural India and China have?
A. Fragmented
B. Direct
C. Indirect
D. Concentrated

68. (p. 599) With a concentrated retail sector,

A. A relatively large sales force is required
B. The orders generated from each sales call can be large
C. There are long channels of distribution
D. It is expensive for the firm to make contact with each individual retailer

69. (p. 599) A(n) _____ distribution channel is one that is difficult for outsiders to access.
A. Selective
B. Intensive
C. Exclusive
D. Multichannel

70. (p. 599) When a channel is exclusive

A. It carries only high-end products
B. It is controlled by market leaders or by firms who have a niche market
C. It focuses on only on elite customers
D. It is often difficult for a new firm to get access to shelf space in supermarkets

71. (p. 600) The expertise, competencies and skills of established retailers in a nation and their ability to
sell and support the products of international businesses is
A. Channel exclusivity
B. Channel knowledge
C. Channel quality
D. Channel skill
Chapter 13 - Global Marketing

72. (p. 601) Which of the following does not affect a firm's international communication?
A. Cultural barriers
B. Source effects
C. Channel exclusivity
D. Noise levels

73. (p. 602) To overcome cultural barriers, companies should

A. Develop products specifically for each market
B. Focus on universal needs
C. Focus only on market segments that transcend national boundaries
D. Develop cross-cultural literacy

74. (p. 602) When the receiver of a message evaluates a message based on the status or image of the
sender, _____ are said to have occurred.
A. Sender effects
B. Noise effects
C. Source effects
D. Communication effects

75. (p. 602) The extent to which the place of manufacturing influences product evaluations is known as
A. Source effects
B. Country of origin effects
C. Noise effects
D. Location effects

76. (p. 604) The probability of effective communications is reduced by

A. Noise effects
B. Location effects
C. Country of origin effects
D. Source effects

77. (p. 604) Which of the following statements about barrier to international communication is true?
A. Source effects occur when the receiver of the message evaluates the message on the basis of the
location of the sender
B. The best way for a firm to overcome cultural barriers is to use local input
C. Source effects and country of origin effects are always negative
D. Noise is extremely high in highly developed countries such as the United States

78. (p. 604) When a firm emphasizes personal selling rather than mass media advertising in the
promotional mix, the firm is using a
A. Standardized strategy
B. Pull strategy
C. Push strategy
D. Localized strategy

79. (p. 604) Which of the following statements is true?

A. Firms in consumer goods industries that are trying to sell to a large segment of the market generally
favor a push strategy
B. Mass communication has cost advantages for firms in consumer goods industries that are trying to sell
to a large segment of the market
C. Direct selling may be the only way to reach consumers in poor nations with low literacy levels
D. Firms that sell industrial products or other complex products favor a pull strategy
Chapter 13 - Global Marketing

80. (p. 604) A firm that depends more on mass media advertising to communicate the marketing message
to potential consumers is using a
A. Pull strategy
B. Push strategy
C. Standardized strategy
D. Localized strategy

81. (p. 604) Factors that determine the relative attractiveness of push and pull strategies include all of the
following except
A. Product type relative to consumer sophistication
B. Channel length
C. Noise levels
D. Media availability

82. (p. 604) When firms in the consumer goods industry are trying to sell to a large segment of the market
they favor a
A. Push strategy
B. Pull strategy
C. Standardized strategy
D. Localized strategy

83. (p. 604) A(n) _____ strategy is favored by firms that sell industrial products or other complex
A. Localized
B. Indirect
C. Push
D. Pull

84. (p. 606) If media availability is limited, a firm should

A. Use a push strategy
B. Use a pull strategy
C. Consider a longer channel
D. Consider a shorter channel

85. (p. 606) When distribution channels are short, firms should
A. Use a direct channel
B. Use a push strategy
C. Focus on consumer products or other standardized products
D. Focus on industrial products or other complex products

86. (p. 606) A push strategy is appropriate when

A. There are many choices of electronic media
B. The firm is selling consumer goods
C. Distribution channels are long
D. The firm is selling complex new products

87. (p. 606) If a firm is facing long distribution channels, the firm should choose a _____ strategy.
A. Competitive advertising
B. Price discrimination
C. Predatory pricing
D. Pull
Chapter 13 - Global Marketing

88. (p. 606) 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
B. Because of concerns about the scarcity of creative talent, some feel that smaller efforts will produce
better results than one large effort to develop a campaign
C. Even though there are cultural differences between nations, a single advertising theme that is effective
worldwide can be easily developed
D. Standardized advertising may be implemented even in the face of advertising regulations

89. (p. 608) When a company charges whatever the market will bear, the company is using
A. Strategic pricing
B. Price discrimination
C. A push strategy
D. A pull strategy

90. (p. 608) In order for price discrimination to be successful

A. There must be a strong case for arbitrage
B. Markets must be kept separate
C. Demand must be very elastic
D. A large change in demand must be triggered by a small change in price

91. (p. 608) If a _____ change in a price produces a _____ change in demand, then price is elastic.
A. Small; large
B. Small; small
C. Large; small
D. Large; large

92. (p. 608) A measure of the responsiveness of demand for a product to change in price is referred to as
A. Arbitrage demand
B. Predatory pricing
C. Price elasticity of demand
D. Experience curve pricing

93. (p. 608) _____ 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
B. Strategic pricing
C. Price discrimination
D. Market pricing

94. (p. 608) Which of the following statements about price discrimination is true?
A. It exists whenever consumers in a country are charged different prices for the same product
B. It involves charging whatever the market will bear
C. It is the use of price as a competitive weapon to drive weaker competitors out of a national market
D. It makes economic sense to charge the same prices across countries

95. (p. 608) What is the most important factor in determining the elasticity of demand for a product in a
given country?
A. Personal selling
B. Logistics
C. Operating revenue
D. Income level
Chapter 13 - Global Marketing

96. (p. 608) Which of the following statements is false?

A. The lesser the number of competitors, the higher the elasticity of demand
B. When competitors are limited, consumers' bargaining power is weaker
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. When there is high elasticity of demand and a firm raises its prices above those of its competitors,
consumers will switch to the competitors' products

97. (p. 609) In a country where competition is limited,

A. Prices will be low
B. There will be low elasticity of demand
C. Prices will be high
D. Consumers' bargaining power rises

98. (p. 609) 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.
A. Multipoint pricing
B. Value-based pricing
C. Experience curve pricing
D. Predatory pricing

99. (p. 609) 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
B. Experience curve pricing
C. Predatory pricing
D. Competitive pricing

100. (p. 615) Tight cross-functional integration between R&D, production and marketing can help a
company to ensure that all of the following take place except
A. Time to market is minimized
B. Development costs are kept in check
C. New products are designed for ease of manufacture
D. Product development projects are driven by internal needs