Q&A Hero

Q: Briefly describe market segmentation.

Q: What is meant by a marketing mix?

Q: The members of a cross-functional team should have: 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.

Q: Which of the following is an important attribute for a product development team to function effectively and meet all of its development milestones? A.It should be led by a "heavyweight" project manager who has high status within the organization. B.The team members should always be physically in diverse locations in order to cover multiple bases. C.It should have preset processes for communication and conflict resolution that are developed by top management. D.It should have at least three members from each key function included. E.Its team members should be a part of more than two cross-functional teams.

Q: Which of the following is a consequence of tight cross-functional integration between research and development (R&D), production, and marketing? A.Maximizing the time to market a product B.Letting R&D dictate terms to marketing and production C.Keeping development costs in check D.Ensuring that product development projects are driven by organizational needs E.Increasing selling costs and maximizing profits

Q: Which of the following factors creates a potential market for new products? A.Rising inflation B.Affluent consumers C.Lack of competition among firms D.Firms suffering from first-mover disadvantages E.Declining demand

Q: Other things being equal, the rate of new-product development seems to be greater in countries where: A.more money is spent on marketing instead of applied research. B.consumers demand cheaper products since they are not affluent. C.competition between firms is intense. D.pioneering costs outweigh the disadvantages of being a second mover. E.a large change in prices of a product only produces a small change in demand.

Q: Which of the following has resulted in a dramatic shortening of product life cycles? A.Acceleration of the pace of technological change B.Lack of domestic competition C.Affluence of customers D.An increase in the number of educated consumers E.Removal of trade barriers

Q: Which industry is often thought of as one in which global standardization of the marketing mix is the norm? A.Electronics B.Retail C.Pharmaceutical D.Financial services E.Heavy machinery

Q: In the context of strategic pricing, which of the following takes place whenever a firm sells a product for a price that is less than the cost of producing it? A.Inflation B.Dumping C.Arbitrage D.Speculation E.Outsourcing

Q: Which of the following pricing strategies can run afoul of antidumping regulations? A.Experience curve pricing B.Premium pricing C.Market-based pricing D.Dynamic pricing E.Price skimming

Q: Which of the following is true of multipoint pricing? A.It involves aggressive pricing in one market to elicit a competitive response from a rival in another market. B.It involves a firm pricing its products at a loss in order to drive out competitors from the market. C.It involves buying products at a cheaper rate in one country and selling those at a higher price in another country. D.It involves allowing markets to determine the pricing of a product. E.It involves pricing two similar products at low and high prices in order to boost sales of the lower priced products.

Q: Which of the following 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? A.Dumping B.Predatory pricing C.Leader pricing D.Multipoint pricing E.Price skimming

Q: Which of the following refers to the use of price as a competitive weapon to drive weaker competitors out of a national market? A.Multipoint pricing B.Predatory pricing C.Leader pricing D.Price discrimination E.Price skimming

Q: Which of the following is true of price elasticity of demand? A.The price elasticity of demand is only defined by the competitive conditions in a country. B.Demand is said to be inelastic when a large change in price produces a large change in demand. C.Demand is said to be elastic when a large change in price produces a small change in demand. D.Price elasticity tends to be greater in countries with low income levels. E.The elasticity of demand is inversely proportional to the number of competitors offering a particular product.

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

Q: What kind of demand is seen when a large change in price produces only a small change in demand? A.Flexible B.Consistent C.Inelastic D.Elastic E.Dynamic

Q: What kind of demand is seen when a small change in price produces a large change in demand? A.Elastic B.Inelastic C.Relative D.Rigid E.Dynamic

Q: A measure of the responsiveness of demand for a product to changes in price is known as: A.the demand to price ratio. B.demand and price dynamics. C.price-demand rigidity. D.demand function of pricing. E.price elasticity of demand.

Q: In which of the following conditions does arbitrage occur? A.When a firm offers a product at low prices through discount coupons and promotions B.When a firm sells a product at higher prices to make a profit from relatively fewer sales C.When a firm imports products from a manufacturer and distributes them directly through retail outlets D.When a firm purchases products in a country where prices are lower and resells them in a country where prices are higher E.When a firm prices its products at the least cost, risking losses, in order to grab market share

Q: If a firm is unable to keep its national markets separate, individuals or businesses may undercut its attempt at price discrimination by engaging in: A.speculation. B.arbitrage. C.dumping. D.predatory pricing. E.forecasting.

Q: Which of the following is necessary for a firm to ensure profitable price discrimination? A.The firm must sell a standardized product. B.The firm must be able to keep its national markets separate. C.The firm must encourage other firms and competitors to engage in arbitration. D.Products sold by the firm must have same price elasticities of demand in different countries. E.Products must be sold in countries where a small change in prices produces a large change in demand.

Q: Which of the following is true of price discrimination? A.It involves charging whatever the market will bear. B.In a competitive market, prices may have to be higher than in a market where the firm has a monopoly. C.It makes economic sense to charge the same prices in different countries. D.It exists whenever consumers in different countries are charged the same price for the same product, irrespective of variations. E.It cannot help a company maximize its profits.

Q: Which of the following exists whenever consumers in different countries are charged different prices for the same product? A.Penetration pricing B.Premium pricing C.Predatory pricing D.Price discrimination E.Price skimming

Q: Which of the following is an argument against standardized advertising? A.One large effort to develop a campaign fails to produce better results than 40 or 50 smaller efforts. B.It fails to make use of local talent available in other cultures. C.Advertising regulations may block implementation of standardized advertising. D.Royalties make it the most expensive form of advertising. E.It increases the costs of value creation.

Q: Which of the following is an argument in favor of standardized advertising? A.Consumer tastes and preferences are universal. B.A message that works in one nation will invariably work in every other country. C.Advertising regulations always promote standardized advertising. D.Many brand names are global. E.The costs of value creation may be increased by standardized advertising.

Q: Pull strategies tend to be emphasized: A.for complex new products. B.for consumer goods. C.for industrial goods. D.when distribution channels are short. E.when few print or electronic media are available.

Q: A push strategy is emphasized when: A.distribution channels are short. B.sufficient print and electronic media are available to carry the marketing message. C.consumers have a low level of literacy. D.the products being sold are consumer goods. E.professional services are being offered.

Q: Which of the following marketing strategies relies on access to advertising media? A.Personal selling B.Direct selling C.Push strategy D.Pull strategy E.Copy testing

Q: Which of the following is a drawback of a push strategy? A.It can be expensive when the distribution channel is long. B.It decreases interaction with consumers. C.It does not allow consumers to be educated on the benefits of a complex product. D.It is useful only in advanced nations where consumers are sophisticated and highly educated. E.It can only be used to sell industrial products.

Q: Which of the following allows a firm to educate potential consumers about the features of a product? A.Direct selling B.Mass media advertising C.Pull strategy D.Standardized advertising E.Lag strategy

Q: If a firm favors a push strategy, using direct selling to educate potential consumers about the features of its products, what kind of products would it most likely sell? A.Professional services B.Food grains C.Consumer products D.Industrial products E.Standardized products

Q: Which kind of strategy do firms in consumer goods industries that are trying to sell to a large segment of the market generally favor? A.Push B.International C.Lag D.Pull E.Exclusive distribution

Q: Which of the following communication strategies relies primarily on mass media advertising as opposed to personal selling? A.Telemarketing B.Pull strategy C.Push strategy D.Customized advertising E.Point-of-purchase advertising

Q: Which of the following communication strategies relies primarily on personal selling rather than mass media advertising? A.Visual merchandising B.Pull strategy C.Push strategy D.Copy testing E.Standardized advertising

Q: Which of the following is true of the barriers to international communication? A.Noise tends to increase the probability of effective communication. B.Source effects can be beneficial for an international business when potential consumers in a target country have a bias against foreign firms. C.Many international businesses try to promote positive source effects by deemphasizing their foreign origins. D.Fewer firms vie for the attention of prospective customers in developing countries, thus the noise level is lower. E.Research suggests that a consumer may use country of origin as a cue when evaluating a product, particularly if he or she has detailed knowledge of the product.

Q: In terms of communication strategy, in highly developed countries such as the United States: A.noise is extremely high. B.source effects are always positive. C.country of origin effects are not applicable. D.cultural barriers do not exist. E.pull strategies are more important than push strategies.

Q: In the context of barriers to international communication, which term refers to the amount of other messages competing for a potential consumer's attention? A.Alternative signals B.Source effects C.Noise D.Channel effects E.Country of origin effects

Q: According to research, when do consumers usually use the country of origin as a cue when evaluating a product? A.When a firm tries to deemphasize its foreign origins B.When consumers lack detailed knowledge of a product C.When an advertising campaign stresses the positive performance attributes of a product D.When a limited number of messages compete with each other for consumers' attention E.When a firm resorts to personal selling instead of mass media advertising

Q: Which of the following refers to the extent to which the place of manufacturing influences product evaluations? A.Noise levels B.Country of origin effects C.Source effects D.Push strategies E.Pull strategies

Q: When are source effects damaging for an international business? A.When promotional messages are used to stress the positive performance attributes of its product B.When fewer firms compete for the attention of prospective customers in developing countries C.When the firm's marketing strategy emphasizes personal selling rather than mass media advertising D.When potential consumers in a target country have a bias against foreign firms E.When international businesses deemphasize their foreign origins

Q: In terms of communication strategy, which of the following refers to the situation when the receiver of a message evaluates the message based on the status or image of the sender? A.Source effects B.Noise levels C.Cultural barriers D.Pull strategy E.Push strategy

Q: Which of the following factors limits a firm's ability to use the same marketing message? A.Channel exclusivity B.Channel quality C.Cultural differences D.Concentrated retail systems E.Fragmented retail systems

Q: Which of the following is a potentially critical variable that can jeopardize the effectiveness of a firm's international communication? A.Channel length B.Market segmentation C.Import effects D.Noise levels E.Channel quality

Q: Which of the following is an advantage of longer distribution channels? A.Decreased profit margins B.Lower markups C.Lower product prices D.Reduced selling costs in concentrated retail sectors E.Greater market access

Q: Which of the following is a drawback of longer distribution channels? 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 charged to consumers E.Greater aggregate markups due to a lack of intermediaries

Q: Which of the following is a drawback of longer distribution channels? 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.Lower product prices E.Greater aggregate markups

Q: Which of the following is true of choosing a distribution strategy? 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 consumers are charged for the final product.

Q: Which of the following is a factor that determines the optimal distribution strategy? A.Communication strategy B.Country of origin effects C.Channel quality D.Noise levels E.Source effects

Q: Which of the following is true about channel quality? A.The quality of retailers is variable in developed nations. B.The quality of retailers is variable in emerging markets and less developed nations. C.Channel quality refers to a measure of the number of intermediaries between the manufacturer and the consumer. D.An international business cannot establish its own distribution channel when the existing channel quality is poor. E.The lack of a high-quality channel does not impede market entry.

Q: Which of the following 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? A.Channel exclusivity B.Channel quality C.Channel length D.Channel dominance E.Channel concentration

Q: Which kind of distribution channel is difficult for outsiders to access? A.Exclusive B.Intensive C.Selective D.Concentrated E.Fragmented

Q: Which of the following factors helps a firm shorten channel length? A.The entry of large discount superstores B.A firm's insistence on dealing with wholesalers instead of manufacturers C.Fragmentation of a retail system D.A small sales force E.Smaller sales orders generated from sales calls

Q: When the retail sector is very concentrated: A.it is more expensive for a firm to make contact with each individual retailer. B.it makes sense for a firm to deal directly with retailers, cutting out wholesalers. C.a relatively large sales force is required to deal with the retail sector. D.the channels of distribution tend to be long. E.the growth of wholesalers is promoted.

Q: Which of the following is a characteristic of fragmented retail systems? A.Long channels of distribution B.Single-layer distribution systems C.Lower sales call to sales order ratio D.Relatively smaller sales force compared to concentrated retail systems E.Promotion of direct interaction between retailers and firms

Q: Which kind of retail systems tend to promote the growth of wholesalers to serve retailers, which lengthens distribution channels? A.Centralized B.Focused C.Concentrated D.Fragmented E.Exclusive

Q: Which of the following is the most important determinant of channel length? A.The degree to which the retail system is fragmented B.The increase in car ownership and two-income households C.The level of consolidation in the global retail industry D.The amount of difference between product or technical standards E.The level of economic development of a country

Q: The number of intermediaries between the product (or manufacturer) and the consumer is referred to as: A.channel length. B.channel quality. C.channel exclusivity. D.channel fragmentation. E.channel concentration.

Q: Which of the following is a factor that contributes to greater retail concentration in developed countries? A.The number of households owning televisions B.The number of families with two or more children C.An increase in the value of the currency of the country D.The number of households with refrigerators and freezers E.A decrease in per capita income

Q: Which of the following is a factor that has contributed to greater retail concentration in developed countries? A.A tradition of established local neighborhood stores B.An increase in car ownership C.A retail system that encourages long channel length D.An increase in the number of single-income households E.An increase in the population density

Q: Which retail system has many retailers, no one of which has a major share of the market? A.Concentrated B.Fragmented C.Focused D.Consolidated E.Exclusive

Q: In which kind of retail system do a few retailers supply most of the market? A.Fragmented B.Dispersed C.Isolated D.Concentrated E.Exclusive

Q: Which strategy refers to the means that a firm chooses for delivering a product to its consumer? A.Pull B.Distribution C.Push D.Communication E.Pricing

Q: Which of the following factors constrains the globalization of markets? A.Differences in technical standards B.Uniform standard of living C.Cosmopolitan tastes and preferences D.Market segments that transcend national borders E.Convergence of cultures

Q: Which of the following is true of the influence of economic development on consumer preferences? A.The level of economic development does not impact consumer preferences as much as cultural difference does. B.Firms based in highly developed countries do not build extra performance attributes into their products. C.Consumers in less developed nations demand to have extra attributes built into products. D.Consumers in developed countries are often willing to sacrifice their preferred attributes for lower prices. E.Consumers in developed nations are willing to pay more for products that have additional features customized to their tastes.

Q: Which of the following contradicts Theodore Levitt's arguments for the globalization of world markets? A.Consumers in most developed countries do not sacrifice preferred attributes for lower prices. B.Tastes and preferences are becoming more cosmopolitan due to cultural convergence. C.Similar product and technical standards across countries help a firm sell the same product worldwide. D.The emergence of the global youth segment is evidence of market segments that transcend national borders. E.The structure of market segments is extremely similar in various countries.

Q: In terms of the factors affecting product attributes, the impact of which of the following is particularly important in foodstuffs and beverages? A.Language B.Nationality C.Religion D.Tradition E.Gender

Q: Which of the following is true of market segmentation? 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.

Q: Which of the following is a goal of market segmentation? A.To optimize the fit between the purchasing behavior of consumers in a given segment and the marketing mix B.To increase participation in shared global conversations by drawing upon shared symbols that include global brands C.To reduce cultural and economic differences which act as a barrier to the emergence of global trends D.To standardize products, manufacturing, and the institutes of trade and commerce E.To increase the costs of value creation and add value by better serving customer needs

Q: Which of the following is a definition of market segmentation? A.It refers to identifying distinct groups of customers whose needs, wants, and purchasing behavior differ from others. B.It refers to developing existing market segments and increasing market share within those segments. C.It refers to identifying the need for new products in existing markets and developing products for those markets. D.It refers to identifying new markets that can buy existing products. E.It refers to identifying the needs of a new market and developing new products for that market.

Q: Which of the following refers to identifying distinct groups of consumers whose needs, wants, and purchasing behavior differ from others in important ways? A.Market penetration B.Market development C.Market segmentation D.Product development E.Diversification

Q: Which of the following factors constrains a firm's ability to sell a standardized product to a global market using a standardized marketing strategy? A.Modern transportation B.Modern communications technologies C.Rise of the global media phenomenon D.Development of a global culture E.Differences in product and technical standards

Q: Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets? A.Modern transportation is facilitating a convergence of tastes and preferences among consumers in advanced countries of the world. 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, multinational corporations do not tailor their products to suit different countries.

Q: Which of the following is a statement made by Theodore Levitt about the globalization of world markets? A. Capitalism is the force that drives the world toward a converging commonality. B. Global 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.

Q: Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets? A.Global corporations consider the world to consist of distinct and unique entities. B.Global corporations operate at low relative costs. C.Global corporations operate from a single country. D.Global corporations adjust their products and practices to suit each country. E.Global corporations are in danger of losing out to small businesses.

Q: Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets? A.Accustomed differences in national or regional preferences are significant in world markets. B.The global corporation operates consistently at high relative cost. C.Technology has led to the emergence of global markets for standardized consumer products. D.The global corporation sells different things in different ways. E.Ancient differences in national tastes or modes of doing business are reinforced.

Q: Who among the following asserted in an article in the Harvard Business Review that modern transportation and communications technologies are facilitating a convergence of certain tastes and preferences among consumers in the more advanced countries of the world? A.Gary Hamel B.Theodore Levitt C.Christopher Bartlett D.Peter Drucker E.C.K. Prahalad

Q: Which of the following is an element of a firm's marketing mix? A.Product attributes B.Employee management C.Customer service D.Population demographics E.Domestic competition

Q: Which of the following refers to choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets? A.Market imperfections B.Marketing mix C.Marketing intermediaries D.Marketing objectives E.Marketing plan

Q: Which of the following functions of an international business is required to create new products? A.Supply chain B.Logistics C.Operations D.Research and development E.Customer service