82) Demand is labeled as ________ when a large change in price produces only a small change in
demand.
A) flexible
B) consistent
C) inelastic
D) elastic
E) dynamic
83) Michaela lives in New York where there are hundreds of different shoe stores to shop at, which
allows her to always find the best price on her favorite shoes. In this situation, the presence of
many competitors results in
A) the use of predictive analytics.
B) a concentrated retail system.
C) a high elasticity of demand.
D) the use of prescriptive analytics.
E) inelastic demand.
84) What is a characteristic associated with the price elasticity of demand?
A) The price elasticity of demand is unrelated to the competitive conditions in a country.
B) Demand is said to be inelastic when a small 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.
85) ________ 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
86) Mint-Microprocessors Corp. learned that its biggest competitor dropped prices dramatically in
the European market. In response, Mint-Microprocessors decided to do the same in Asia. This
resulted in the competitor minimizing its aggressive stance and returning to earlier price points.
This is an example of ________ pricing.
A) dumping
B) predatory
C) leader
D) multipoint
E) prescriptive
87) Multipoint pricing occurs when a company
A) aggressively prices in one market to elicit a competitive response from a rival in another
market.
B) prices its products at a loss in order to drive out competitors from the market.
C) buys products at a cheaper rate in one country to sell at a higher price in another country.
D) allows markets to determine the pricing of a product.
E) prices two similar products at low and high prices in order to boost sales of the lower priced
products.
88) If a firm prices its product low worldwide in an attempt to build global sales volume as rapidly
as possible, even if this means taking large losses initially, what kind of strategy is it pursuing?
A) experience curve pricing
B) multipoint pricing
C) economy pricing
D) predatory pricing
E) premium pricing
89) Health Born Cereal Corp. wants to build its global sales volume quickly. It enters all markets at
the lowest price possible it can charge, which undercuts the prices of all its competition. The
company knows this might result in initial losses, but in a few years, it should be making
substantial profits with a cost advantage over everyone else. This is an example of
A) experience curve pricing.
B) multipoint pricing.
C) market-based pricing.
D) dynamic pricing.
E) price skimming.
90) In the context of strategic pricing, ________ 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
91) Which industry is often thought of as one in which global standardization of the marketing mix
is the norm?
A) electronics
B) fashion
C) pharmaceutical
D) financial services
E) heavy machinery
92) Connor works for Smart Snacks Inc. based in California and needs to determine where
products are bought by customers who live in Europe. Connor is concerned with the ________
strategy of this product.
A) communication
B) distribution
C) pricing
D) product
E) manufacturing
93) Jenna works for an energy company in Houston. Her company plans to develop operations
overseas, and she is determining the role of publicity in that market. She knows that publicity plays
a major role in the U.S., but she isn’t sure if this is also true overseas. Jenna is concerned with the
________ strategy of her company.
A) pricing
B) production
C) product
D) distribution
E) communication
94) What has created a dramatic shortening of product life cycles today?
A) acceleration of the pace of technological change
B) lack of domestic competition
C) affluence of customers
D) increase in the number of educated consumers
E) removal of trade barriers
95) 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.
96) A country that has ________ 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
97) One consequence of tight cross-functional integration between research and development
(R&D), production, and marketing is
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.
98) Immediately following World War II, what country ranked the highest in spending on R&D,
had affluent customers and intense competition, and, as a result, was the center of new product
development?
A) Japan
B) United States
C) China
D) Germany
E) Canada
99) What 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.
100) 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.
101) Compare and contrast the three forms of business analytics. Provide an example of each form.
102) Briefly describe market segmentation.
103) Identify the product attributes of a pizza or another product of your choice. Explain how
product attributes play a role in selling a product.
104) Describe how cultural differences affect product attributes.
105) Discuss the three factors that lead to a tendency for greater retail concentration in developed
countries.
106) Describe the differences in distribution systems in various countries in terms of channel
exclusivity.
107) Describe the role of channel quality when creating a distribution strategy.
108) Discuss the role of cultural barriers and a firm’s international communication.
109) Discuss how country of origin effects can sometimes have a positive appeal.
110) Compare and contrast a push versus a pull communication strategy.
111) Explain the factors that indicate when a company should promote a push strategy and when a
company should promote a pull strategy.
112) Briefly describe predatory pricing and multipoint pricing strategy.
113) Discuss the four components of the marketing mix and the areas that must be addressed to
configure it for the international market.
114) Discuss how the effects of “creative destruction” affect a firm.
115) Describe the influence of integrating research and development, marketing, and production
on new product development.