Global Business Today, 11e (Hill)
Chapter 16 Global Marketing and R&D
1) A company might vary its marketing mix based on differences in national culture.
2) Markets can be segmented by geography, demography, sociocultural factors, and psychological
factors.
3) Relatively simple statistical techniques that describe what is contained in a dataset are known as
predictive analytics.
4) Determining the data sources that address a specific research problem is often complicated in
international business.
5) Consumers in the most developed countries are often willing to sacrifice their preferred product
attributes for lower priced products.
6) Differences in government-mandated product standards can rule out mass production and
marketing of a standardized product.
7) A fragmented retail system is one in which a few retailers supply most of the market.
8) A business that sells directly to the consumer has a short channel length.
9) 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.
10) One drawback of a longer distribution channel is that it increases selling costs when the retail
sector is very fragmented.
11) The best way for a company to overcome cultural barriers to communication is by developing
cross-cultural literacy.
12) A push strategy emphasizes the use of mass media rather than personal selling.
13) A business might find it more cost effective to use a pull strategy when entering a market with
a long distribution channel.
14) 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.
15) Price discrimination occurs when one store sells a product at full price, but another chooses to
put the product on sale.
16) Predatory pricing occurs when companies use price as a competitive weapon to drive out
weaker competition.
17) Predatory pricing and experience curve pricing do not violate antidumping regulations.
18) 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.
19) Differences in product and technical standards between nations would be a reason a business
might vary aspects of its marketing mix.
20) 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.
21) Milly, the marketing manager for Nuance Cosmetics, believes that for the company to succeed
in international markets, it has to address the choices surrounding product attributes, distribution
strategy, communication strategy, and pricing strategy in its targeted markets. What is Milly
specifically referring to?
A) market imperfections
B) marketing mix
C) marketing intermediaries
D) marketing objectives
E) marketing plan
22) Based on his article in the Harvard Business Review, Theodore Levitt would agree that
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.
23) Theodore Levitt’s arguments concerning the globalization of world markets can be supported
by which of these facts?
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.
24) Wentworth Hair Care has identified four distinct consumer groups to market their products to:
teens, young adults, adult women, and adult men. What process did the company use to identify
these groups?
A) research and development
B) predictive analytics
C) purchasing parity
D) market segmentation
E) customer service
25) Many elderly travelers find it hard to climb stairs to motel rooms that are not on the first floor.
The Stay-Right Inn has catered to this specific group of customers via its motels, all of which have
one floor of rooms with no stairs to climb. What did Stay-Right Inn use to identify 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
26) The goal of market segmentation is to
A) optimize the fit between the purchasing behavior of consumers in a given segment and the
marketing mix.
B) increase participation in shared global conversations by drawing upon shared symbols that
include global brands.
C) reduce cultural and economic differences which act as a barrier to the emergence of global
trends.
D) standardize products, manufacturing, and the institutes of trade and commerce.
E) increase the costs of value creation and add value by better serving customer needs.
27) White Pearl Cosmetics markets skin care products for teenage girls between 16 and 19. In
approaching its international markets, White Pearl believes that its target segment spans multiple
countries, transcending national borders. White Pearl Cosmetics’ target segment is called a(n)
________ segment.
A) intermarket
B) uniform
C) cosmopolitan
D) divergence
E) global
28) Jeremy created a simple bar graph to show the most popular times of day customers come into
the store. Which application of business analytics does the bar graph represent?
A) predictive
B) descriptive
C) definitive
D) prescriptive
E) directive
29) After receiving all of the data on customer purchases and supplier inventories, Sasha’s job is to
build a statistical model to help identify trends in sales and product demand. Which level of
business analytics does this require?
A) predictive analytics
B) directive analytics
C) definitive analytics
D) prescriptive analytics
E) descriptive analytics
30) Viceroy Pharmaceutical decides to conduct a clinical trial on its tattoo removal cream. This
trial is a ________ method for collecting data.
A) qualitative
B) prescriptive
C) descriptive
D) predictive
E) quantitative
31) Manuel included statistical information he found on the Nielsen research company website in
his report. These statistics are a type of
A) primary data.
B) qualitative information.
C) secondary data.
D) descriptive analysis.
E) prescriptive analysis.
32) Brettson Inc. is a major player in the U.S. consumer electronics markets. It sells radios,
televisions, DVD players, and a number of similar products. Its CEO believes that the company
can go into international markets with the same product line that it offers in the United States.
What might limit Brettson Inc.’s ability to sell a standardized product to a global market using a
standardized marketing strategy?
A) modern transportation
B) networked communications technologies
C) rise of the global media phenomenon
D) development of a global culture
E) differences in product and technical standards
33) While cultural differences should always be considered, which industry should be especially
aware of traditions when trying to enter a foreign market?
A) clothing
B) agriculture
C) furniture
D) food
E) paper
34) What trend 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.
35) Kendrik was frustrated that his DVD player wouldn’t play a DVD he purchased while on
vacation in Great Britain. When he called the manufacturer to complain, he was told that European
DVDs are formatted differently and won’t play on all machines. This is evidence of how ________
can place a constraint on global markets.
A) differences in technical standards
B) purchasing parity
C) cosmopolitan tastes and preferences
D) market segments that transcend national borders
E) a convergence of cultures
36) Majestic Hats, based in Ontario, is determining how to deliver its product to consumers in
England. What strategy is the company working on?
A) marketing
B) distribution
C) analytics
D) communication
E) pricing
37) When analyzing the Central American market, Hudson Supply Inc. noticed that a few retailers
supplied most of the market with all-cotton clothing. What kind of a retail system does this market
have?
A) fragmented
B) dispersed
C) isolated
D) concentrated
E) exclusive
38) Algonquin Cosmetics noticed that while India had a population of more than 1.2 billion
people, the retail market was such that more than 95 percent of retail was through stand-alone
stores that were not part of a chain. In other words, if Algonquin were to enter India, they would
have to sell through thousands of independent retail stores. What kind of a retail system does India
have for the products that Algonquin Cosmetics is trying to sell?
A) fragmented
B) dispersed
C) isolated
D) concentrated
E) exclusive
39) A nation with thousands of retail stores and only one national chain store has a ________ retail
system.
A) concentrated
B) fragmented
C) focused
D) consolidated
E) exclusive
40) The United States has a very concentrated retail market with a few large national chains
dominating the market. What factor has contributed to greater retail concentration in a developed
country like the United States?
A) local neighborhood stores
B) increased car ownership
C) retail system that encourages long channel length
D) increase in single-income households
E) increase in population density
41) What factor contributes to greater retail concentration in developed countries?
A) number of households owning televisions
B) number of families with two or more children
C) increase in the currency value of the country
D) number of households with refrigerators and freezers
E) decrease in per capita income
42) 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.
43) What is the most important determinant of channel length?
A) degree to which the retail system is fragmented
B) increase in car ownership and two-income households
C) level of consolidation in the global retail industry
D) amount of difference between product or technical standards
E) level of economic development of a country
44) Cassidy, the international sales manager for Knoll Home Products, is trying to determine the
channel length for Brazil, a market the company hopes to enter. What is the most important
consideration she should take into account?
A) degree to which the retail system is fragmented
B) increase in car ownership and two-income households
C) level of consolidation in the global retail industry
D) amount of difference between product or technical standards
E) level of economic development of a country
45) 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