Chapter 17: International Marketing and Supply Chain Management
TRUE/FALSE
1. Four or the underlying components of marketing are: product, price, perfection and place.
2. Firms looking to do business globally are concerned with standardization versus localization.
3. Over the last three decades, the global economy has seen a fall in standardization.
4. How much to standardize and how much to localize remains a challenge.
5. Localization is typically more costly than standardization.
6. Markets can only be segmented in a set number of ways.
7. Market segmentation identifies segments of products that are of different qualities.
8. In a recession, traditional segmentation based on demographic differences may need to be
supplemented by a new scheme of segmentation based on psychological reactions to a recession.
9. A large percentage of consumers around the world have converging tastes and interests, but a
substantial amount also resists standardized brands and products.
10. Price elasticity is how demand changes when price changes.
11. In general, the lower consumer’s income, the more price sensitive they are.
12. Standardized promotion is attractive because it projects a global message but it is more costly than
localized marketing.
13. Total cost of ownership is the initial purchase cost.
14. In international marketing, the country-of-origin effect refers to the positive or negative perception of
firms and products from a certain country.
15. Adaptability in supply chain management refers to the ability to quickly react to unexpected shifts in
supply and demand.
16. Agility focuses on flexibility in the short run while adaptability focuses on flexibility and changes in
the long run.
17. Firms thrive in large part because of the agility of their supply chain.
18. Alignment refers to the alignment of interests of various players involved in the supply chain.
19. A supply chain is a strategic alliance involving players with differing power and trust.
20. The supply chain management has risen from being deemed “logistics” to a critical part of firm
operations.
21. Introducing the third-party logistics (3PL) providers may more effectively align the interests in the
supply chain.
22. All countries have the same legal regulation and restrictions on marketing and advertising in order
have standardized global reach.
23. Assessing how advertising in the new online media world adds value is a major challenge.
24. In order to protect their imitability, some 3PL firms have made certain capabilities untouchable.
25. Marketing and sales departments tend to have tension in their relationship.
26. Anthropological studies are used as a powerful tool to understand how consumers.
27. The most valuable brand in the world is Coca-Cola.
28. In present times, successful managers view manufacturing and services as integrated.
29. Market orientation is the effort to establish, maintain, and enhance relationships with customers.
30. A market-oriented firm genuinely listens to customer feedback and allocates resources accordingly to
meet customer expectations.
31. Regarding market vs. relationship orientation, marketing orientation is necessary, but relationship
orientation capabilities contribute more toward performance.
32. The best management strategy is to understand the institutions and rules of the game, then understand
the firm’s capabilities, then establish a supply chain based off the triple As.
33. Humor is usually easy to translate. So international advertising should always use jokes.
34. Ethnocentrism should be focused in international marketing.
MULTIPLE CHOICE
1. Which statement about marketing and supply chain practices of Zara is correct?
a.
Zara is outsourcing most of its manufacturing.
b.
Zara is carefully managing its inventories to make sure shops never run out of stock.
c.
Zara is heavily advertising to build its brand.
d.
All of these statements are correct.
e.
None of these statements is correct.
2. Which is NOT one of the four Ps in the marketing mix?
a.
Price
c.
Place
b.
Power
d.
Product
3. Product refers to:
a.
Services that customers purchase
b.
Offerings that customers purchase
c.
Physical product that customers purchase
d.
All of these answers
4. Which of the following is a reason why standardization is not always a viable option?
a.
One size does not fit all.
b.
Selling standardized products is successful only in certain industries.
c.
It takes more innovation on a local level.
d.
It is more costly.
5. Which of the following is a sensible solution to the standardization vs. localization issue?
a.
Let a product appear locally adapted while deriving as much synergy and commonality as
possible.
b.
Standardize the products because consumer tastes are beginning to converge.
c.
Localize first, then offer a standardized version of the local product to other markets.
d.
Localize the products because consumers are becoming more individualistic.
6. ________ is the flow of products, services, finances, and information that passes through a set of
entities from a source to the customer.
a.
Marketing
c.
Marketing mix
b.
Product chain
d.
Supply chain
7. Market segmentation identifies segments of consumers who differ from others in:
a.
Ways of communication
c.
Purchasing behavior
b.
Price sensitivity
d.
Geographic locations
8. ________ refers to the expenditures a customer is willing to pay for a product.
a.
Price elasticity
c.
Total cost of ownership
b.
Price
d.
Alignment
9. Price elasticity shows how ________ changes when ________ changes.
a.
Demand…..supply
c.
Supply…..price
b.
Price…..supply
d.
Demand…..price
10. Which best describes the positive or negative perception of firms and products from a certain country?
a.
Total cost of ownership
c.
Sellers’ image
b.
Country promotion
d.
Country of origin effect
11. Total cost of ownership includes:
a.
Initial purchasing cost
c.
Follow-up maintenance cost
b.
Service cost
d.
All of these answers
12. What is the latest challenge marketers face when advertising to youth?
a.
Understanding and promoting in online social networks
b.
Getting their attention
c.
Placing products in youth-oriented movies
d.
Promoting efficiently in the ever-changing TV environment
13. What is known as the set of firms that facilitate the movement of goods from producers to consumers?
a.
Product chain
c.
Distribution channel
b.
Marketing mix
d.
Supply chain
14. Which best describes why the supply chain is so important?
a.
It is the way consumers get their products.
b.
The supply chain management handles the entire processes of value creation, which is the
whole reason for the firm.
c.
Supply chains are no more important than the rest of the business structure.
d.
Distribution channels are getting more complex, so supply chain efficiency is crucial.
15. Which of the following is not one of the triple As behind supply chain management?
a.
Advantage
c.
Adaptability
b.
Alignment
d.
Agility
16. ________ focuses on flexibility that can overcome short-term fluctuation in the supply chain.
a.
Advantage
c.
Alignment
b.
Agility
d.
Adaptability
17. ________ refers to the ability to change supply chain configurations in response to long-term changes
in the environment and technology.
a.
Agility
c.
Alignment
b.
Adaptability
d.
Advantage
18. ________ decision is a decision on whether to produce in-house or to outsource.
a.
Agility-or-adaptability
c.
Make-or-buy
b.
Standardize-or-localize
d.
Market availability
19. In a broad sense, each supply chain is a ________ involving a variety of players, each of which is a
profit-maximizing, stand-alone firm.
a.
Joint venture
c.
Franchising
b.
Wholly owned subsidiary
d.
Strategic alliance
20. Alignment in the supply chain is best defined as:
a.
The ability to change supply chain configurations in response to long-term changes in the
environment and technology
b.
The ability to quickly react to unexpected shifts in supply and demand
c.
The way to identify consumers who differ from others in purchasing behavior
d.
The joining of interests of various players involved in the supply chain
21. ________ requires firms to continuously monitor major geopolitical, social, and technological trends
in the world, and reconfigure the supply chain accordingly.
a.
Agility
c.
Adaptability
b.
Alignment
d.
All of these answers
22. Which of the following elements is key to achieving alignment in the supply china?
a.
Standardization
c.
Productivity
b.
Localization
d.
Power
23. Which statement about national advertising statements is correct?
a.
Advertising standards are designed for public communications by government authorities
and political parties.
b.
Advertising standards for most products are essentially the same in all European countries.
c.
Variations in advertising standards are essential knowledge for consumer goods
companies designing global advertising campaigns.
d.
Advertisement standards regulate specific sectors of industry such as cigarettes and
alcoholic beverages.
24. What is one of the biggest challenges with making adaptability decisions in the supply chain?
a.
The decisions are short term, and they have to keep being remade
b.
Weighing cost considerations against adaptability
c.
The decisions are long term, and often the results are not visible for a while
d.
Getting individual players to come together effectively
25. The term “make-or-buy” is jargon referring most closely to which of the following?
a.
Domestic or foreign
c.
In-house or outsourcing
b.
Supplier or manufacturer
d.
Service or goods
26. What are the two key elements behind achieving supply chain alignment?
a.
Adaptability and agility
c.
Power and trust
b.
Equity and efficiency
d.
Efficiency and flexibility
27. Which of the following is a popular option to help supply chains find alignment?
a.
Increasing agility and adaptability
b.
Hiring a third party logistics firm
c.
Engaging in trust-building exercises
d.
Putting more equity into supply chain management
28. Which of the following is NOT an example of how formal institutions affect supply chain management
and marketing?
a.
Germany bans ads that portray another product as inferior.
b.
Until 2006, foreign direct investment was not allowed in India’s retail sector.
c.
China forbids foreign retailers from operating outside of approved joint ventures.
d.
Many European firms adopted the ISO 9000 series of quality management systems.
29. Western MNEs being careful about what they outsource is a responsive action to which of the
following?
a.
A vocal backlash against outsourcing from the domestic workforce
b.
Increased regulation by foreign governments limiting outsourcing
c.
Higher cost of outsourcing
d.
Rise of suppliers and manufacturers with their own brands
30. Third party logistics firms (3PLs) live in a precarious position as intermediaries where they are
constantly under the threat of ________ from both sides of their clients.
a.
Acquisition
c.
Collusion
b.
Opportunism
d.
Imitation
31. Is it correct that informal norms of a society are not a concern to advertising managers?
a.
No, because violations can lead to imposition of fines.
b.
No, because violations can lead to negative reputation effects
c.
Yes, because violations do not trigger penalties or prohibitions like violations of formal
rules would.
d.
Yes, because violations cannot create negative reputation effects.
ESSAY
1. List and explain the four Ps of marketing.
2. Explain how standardization and localization play into the product and promotion.
3. Identify and explain the new challenge to marketers because of the dominance of online interaction.
4. Identify the triple As, and explain how they add to a firm’s resource capabilities.
5. Review the In Focus article titled: India: Forthcoming Retail Revolution + Supply Chain Revolution.
Answer the following questions in an integrated essay:
– What were the restrictions on retail entry into India?
– Will established chains increase efficiency?
– What impact will these new global companies have on the existing retail network?
6. Define market and relationship orientation, and identify which is more profitable.
7. Discuss what determines success and failure in marketing and supply chain global management by
identifying the strategies, using institution- and resource-based perspectives.
8. Explain how to generalize from a wide variety of market segmentation in different countries in order
to generate products that can cater to a few of these segments around the world.