70) 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 is costlier 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.
71) A firm that depends more on mass media advertising to communicate the marketing message
to potential consumers is using a ________ strategy.
A) pull
B) push
C) standardized
D) localized
72) 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.
73) A pull strategy should be used when
A) the firm is selling industrial products.
B) the distribution channels are short.
C) the distribution channels are long.
D) few print or electronic media are available.
74) 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.
75) French wine, Italian clothes, and German luxury cars all benefit from
A) source effects.
B) noise levels.
C) cultural preferences.
D) cultural differences.
76) When a company emphasizes personal selling, the company is probably using a ________
strategy.
A) standardized
B) push
C) localized
D) pull
77) A ________ strategy is generally favored by consumer goods firms that are trying to sell to a
large segment of the market.
A) push
B) globalization
C) pull
D) localization
78) A firm may be prevented from using ________ because of advertising regulations.
A) corporate advertising
B) culturally significant advertising
C) marketing strategies
D) standardized advertising
79) The use of price as a competitive weapon to drive weaker competitors out of a national market
is known as
A) experience curve pricing.
B) predatory pricing.
C) competitive pricing.
D) multipoint pricing.
80) 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.
81) In order for price discrimination to be successful,
A) there must be a strong case for arbitrage.
B) national 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.
82) ________ 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
83) 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.
84) If a ________ change in a price produces a ________ change in demand, then demand is said
to be elastic.
A) small; large
B) small; small
C) large; small
D) large; large
85) 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) A necessary condition for profitable price discrimination is different price elasticities of
demand in different countries.
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.
86) Which of the following is one of the important factors in determining the elasticity of demand
for a product in a given country?
A) personal selling
B) logistics
C) operating revenue
D) income level
87) 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.
88) ________ pricing is the use of price as a competitive weapon to drive weaker competitors out
of a national market.
A) Multipoint
B) Value-based
C) Experience curve
D) Predatory
89) ________ pricing 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) Multipoint
B) Experience curve
C) Predatory
D) Competitive