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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 chainB.LogisticsC.OperationsD.Research and developmentE.Customer service
Q:
Firms can reduce the failure of product development by ensuring that research and development, marketing, and production functions work independently.
Q:
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.
Q:
A technological innovation can make established products obsolete overnight.
Q:
In terms of pricing strategies, dumping occurs whenever an international firm sells a product for a price that is less than the price charged by domestic producers.
Q:
Predatory pricing and experience curve pricing do not violate antidumping regulations.
Q:
Predatory pricing exists whenever consumers in different countries are charged different prices for the same product, or for slightly different variations of the product.
Q:
The elasticity of demand for a product in a given country is determined by a number of factors, of which income level and competitive conditions are the two most important.
Q:
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.
Q:
A firm's ability to use a pull marketing strategy is limited in some countries by media availability.
Q:
The shorter the distribution channel, the more intermediaries there are that must be persuaded to carry the product for it to reach the consumer.
Q:
Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a push strategy.
Q:
A pull strategy refers to a marketing strategy that emphasizes personal selling rather than mass media advertising in the promotional mix.
Q:
Many international businesses try to counter negative source effects by deemphasizing their foreign origins.
Q:
One benefit of a longer distribution channel is that it cuts selling costs when the degree of fragmentation of the retail sector is less.
Q:
There is generally a critical link among channel length, the final selling price, and the firm's profit margin because each intermediary in a channel adds its own markup to the products.
Q:
The expertise, competencies, and skills of established retailers in a nation, and their ability to sell and support the products of international business are referred to as channel exclusivity.
Q:
In terms of channel length, the more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer.
Q:
In terms of the differences between countries with respect to distribution systems, there is a tendency for lesser retail concentration in developed countries.
Q:
A concentrated retail system is one in which there are many retailers, none of which has a major share of the market.
Q:
Differences in government-mandated product standards can rule out mass production and marketing of a standardized product.
Q:
Firms based in less developed nations tend to build a lot of extra performance attributes into their products.
Q:
Consumers in the most developed countries are often willing to sacrifice their preferred product attributes for lower priced products.
Q:
In terms of factors influencing product attributes, the impact of tradition is particularly important in foodstuffs and beverages.
Q:
For a market segment to transcend national borders, consumers in that segment must have some compelling similarities along important dimensions such as age, values, and lifestyle choices.
Q:
When managers in an international business consider market segmentation in foreign countries, they need to be cognizant of the differences between countries in the structure of market segments.
Q:
Market segmentation refers to identifying distinct groups of consumers whose needs, wants, and purchasing behavior differ from others in important ways.
Q:
Markets can be segmented by geography, demography, sociocultural factors, and psychological factors.
Q:
According to Theodore Levitt, technology has resulted in the emergence of global markets for standardized consumer products on a previously unimagined scale of magnitude.
Q:
Firms vary their marketing mix from country to country depending on differences in national culture.
Q:
A critical aspect of the marketing function is identifying gaps in the market so that a firm can develop new products to fill those gaps.
Q:
A global marketing strategy that views the world's consumers as similar in their preferences is consistent with the mass production of a standardized output.
Q:
What are the important strategic objectives of an international firm's production and logistics functions?
Q:
Which of the following has caused proprietary software solutions to implement electronic data interchange systems become obsolete?
A.Just-in-time inventory system
B.Flexible machine technology
C.The Internet
D.Dynamic capabilities
E.Social Networking
Q:
Which of the following is a consequence of an electronic data interchange system?
A.Increased in production costs
B.Reduction in paperwork between suppliers, shippers, and the purchasing firm
C.Helps a firm centralize materials management decisions
D.Decrease in flexibility and responsiveness of the supply system
E.Leaves a firm without a buffer stock of inventory
Q:
Geminia Systems, a manufacturer of car components, wants to set up a system that will help in sending invoices to its customers once orders for input supply are placed. Which of the following should the company use to perform this function?
A.Computer-aided design system
B.Lean production
C.Just-in-time inventory system
D.Electronic data interchange
E.Social networking
Q:
Which of the following allows suppliers, shippers, and the purchasing firm to communicate with each other via the Internet with no time delay?
A.Electronic data interchange system
B.Data warehousing system
C.Batch processing system
D.Skills inventory system
E.Just-in-time inventory system
Q:
What do firms now typically use via the Internet to coordinate the flow of materials into manufacturing, through manufacturing, and out to customers?
A.Flexible manufacturing technology
B.Lean production
C.Computer-aided manufacturing
D.Electronic data interchange
E.Just-in-time inventory systems
Q:
One way to reduce the risks associated with a global supply chain that operates on just-in-time principles is to:
A.depend on one supplier for an important input.
B.outsource the production of inputs only to advanced countries.
C.hold an excess buffer stock of inventory.
D.source inputs from several suppliers located in different countries.
E.avoid using electronic data interchange.
Q:
Which of the following is a consequence of using just-in-time inventory systems?
A.It slows down inventory turnover.
B.It increases inventory holding costs.
C.It increases the amount of working capital a firm needs.
D.It can help firms improve product quality.
E.It does not allow defective inputs to be spotted immediately.
Q:
The drawback of a just-in-time inventory system is that it:
A.increases the total capital required by a firm.
B.leaves a firm without a buffer stock of inventory.
C.increases inventory holding costs, such as warehousing and storage costs.
D.is less efficient than traditional system in spotting and fixing defective inputs.
E.lowers a company's profitability as measured by return on capital invested.
Q:
Under a more traditional system as opposed to a just-in-time inventory system, warehousing parts for weeks before they are used:
A.reduces the total working capital required by a firm.
B.allows many defective parts to be produced before a problem is recognized.
C.results in a near error-free production process.
D.reduces the costs related to inventory holding.
E.reduces the need to write off excess unsold inventory against earnings.
Q:
A major cost saving from just-in-time inventory systems comes from:
A.a shift in focus away from quality.
B.increasing productivity of workers.
C.speeding up inventory turnover.
D.creating a buffer stock of inventory.
E.writing off excess unsold inventory against earnings.
Q:
Which of the following increases under just-in-time (JIT) inventory system?
A.Amount of working capital for inventory
B.Inventory turnover
C.Number of defective parts
D.Inventory holding costs
E.Storage costs
Q:
Which of the following is true about firms using just-in-time (JIT) inventory system?
A.A company is more likely to have excess unsold inventory that it has to write off against earnings.
B.Parts enter the manufacturing process immediately; they are not warehoused.
C.It is difficult to spot and fix defective inputs.
D.The amount of working capital a company needs to finance inventory increases.
E.A firm has ample buffer stock of inventory.
Q:
The basic philosophy behind just-in-time (JIT) inventory systems is to:
A.economize on inventory holding costs.
B.reduce inventory turnover.
C.create a buffer stock of inventory.
D.reduce costs by reducing quality.
E.increase the total working capital requirement.
Q:
Which of the following refers to a logistics system designed to deliver parts to a production process as they are needed, not before?
A.Inventory information system
B.Basket trading system
C.Buffer stock system
D.Just-in-time inventory system
E.Real-time processing system
Q:
Which of the following was pioneered by Japanese firms during that country's remarkable economic transformation during the 1960s and 1970s?
A.Lean production
B.Flexible manufacturing technology
C.Dynamic capabilities
D.Just-in-time inventory systems
E.Global learning
Q:
Which of the following is an objective of logistics?
A.Increase the cost of value creation
B.Manage a firm's global supply chain at a low cost
C.Reduce inventory turnover
D.Reduce a firm's customer responsiveness
E.Increase inventory holding costs
Q:
If a firm possesses proprietary product technology, the best option for that firm would be to:
A.manufacture the product in-house so that it does not lose its competitive advantage.
B.outsource the production activities to independent suppliers in order to realize economies of scale.
C.merge with competitors to reduce investments on technology.
D.share the technology to make the industry more competitive.
E.transfer the technology to less developed countries.
Q:
Which of the following is a recent trend among international businesses regarding make-or-buy decisions?
A.Foreign facilities are considered nothing more than low-cost production facilities.
B.Research and design operations are restricted to home-country production facilities.
C.Manufacturing facilities are being based in each major national market.
D.Firms are avoiding time-based competition with each other.
E.Outsourcing decisions are expanding to embrace the production of service activities.
Q:
Which of the following is the initial reason for the establishment of a foreign production facility?
A.Employee turnover is high.
B.Products are not labor-intensive.
C.Inventory turnover is low.
D.Exchange rate fluctuations are high.
E.Labor costs are low.
Q:
Which of the following is a hidden cost to basing production in a foreign location?
A.Low employee turnover
B.Low labor costs
C.Poor product quality
D.Expensive higher education system
E.Low inventory turnover
Q:
Which of the following is a step taken by automobile companies in situations where neither centralization nor decentralization of production is feasible?
A.Outsourcing production to developing countries
B.Inshoring production into the home country
C.Selling product patents and technology to competitors
D.Refraining from international trade
E.Establishing top-to-bottom manufacturing operations
Q:
Which of the following firms should spread its production over decentralized locations?
A.Univion Inc. operates in an industry where national differences in political economy and culture have a substantial impact on its cost of production.
B.Saturn Inc. operates in an industry where volatile fluctuations in important exchange rates are expected.
C.Brew Technology manufactures industrial machines and equipment that serve universal needs.
D.Gold Dreams Inc. customizes jewelry in precious metal and stones with the aid of flexible manufacturing technologies.
E.Uniton Inc. uses a production technology that has high fixed costs and high minimum efficient scale.
Q:
When is decentralization of manufacturing facilities most appropriate?
A.When the product serves universal needs
B.When exchange rates are expected to remain relatively stable
C.When the product's value-to-weight ratio is high
D.When there are few trade barriers
E.When the production technology has low minimum efficient scale
Q:
Which of the following firms should concentrate its production in a centralized location?
A.Jupiter Inc. operates in an industry where the fixed costs are high and services of supporting industries are of prime importance.
B.Star Goal Inc. manufactures consumer products like processed food, apparel, and cosmetics for which national differences in consumer taste and preference are wide.
C.Uranious Inc. operates in an economy where volatile fluctuations in exchange rates are frequently expected.
D.Earth Ventures Inc. is a mining company that exports iron orea product with low value-to-weight ratioto various countries.
E.Silver Times Inc. customizes heavy machines without the use of flexible manufacturing technologies.
Q:
When should a firm concentrate its production facilities in a centralized location?
A.When the production technology has a low minimum efficient scale
B.When the production technology has low fixed costs
C.When important exchange rates are expected to remain relatively stable
D.When flexible manufacturing technologies are unavailable
E.When the product's value-to-weight ratio is low