Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
42. What kinds of packages are much more prevalent in less developed countries?
a. family sized
b. single serve
c. multi-unit
d. bulk
e. containerized
43. A common measure of the profitability pricing objective includes all of the following
EXCEPT ______.
a. total dollar profit
b. return on investment
c. contribution to overhead
d. market share attained
e. cost reduction
44. A common measure of the market share pricing objective includes all of the following
EXCEPT ______.
a. product market share
b. product line share
c. company market share
d. return on investment per share
e. cost reduction
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
45. What represents the amount of items that are purchased at various price levels?
a. demand
b. supply
c. equilibrium
d. market intersection
e. marketability
46. The equilibrium point reflects which of the following in an international market?
a. market intersection
b. intersection of supply and demand curves
c. demand quotient
d. supply/demand point
e. market point
47. Which method of international pricing typically features a percentage as the margin of profit
per good?
a. cost plus
b. cost based
c. market equilibrium
d. markup
e. target ROI
48. Creating which of the following allows the international marketing team to see a visual
portrayal of the relationships between price, quality, image, and/or other variables?
a. pricing perceptual map
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
b. pricing market share map
c. pricing marketing map
d. pricing image map
e. pricing promotion map
49. What represents the first thoughts a buyer may have about the prices of a product and
whether the amount represents a reasonable portrayal of value?
a. cost considerations
b. market considerations
c. value considerations
d. product considerations
e. promotion considerations
50. Capacity to consume consists of all of the following EXCEPT ______.
a. wants
b. goods and services available
c. time and energy
d. purchasing power
e. consumer personality
51. Culture affects methods of setting prices, methods of bargaining, and perceptions regarding
what price indicates.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
52. For products moving through an international market channel, the first price will be the one
offered by a manufacturer to middlemen.
a. True
b. False
53. The price perceptual map depicts companies or products along two dimensions, typically
price and quality.
a. True
b. False
54. Many goods and services contain emotional components that affect value judgments and
influence purchase decisions.
a. True
b. False
55. Situational factors can affect price perceptions.
a. True
b. False
56. Ensuring profitability is one of the most common pricing objectives.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
57. Cost-based pricing begins with a careful assessment of market conditions as they pertain to
supply and demand.
a. True
b. False
58. A typical break-even analysis begins with an assessment of consumer price elasticity.
a. True
b. False
59. Cost-plus pricing involves setting a product’s price based on fixed costs, variable costs, plus
the desired profit margin for each item.
a. True
b. False
60. Markup pricing is best suited for retailers and manufacturers that sell or produce a small
number of products.
a. True
b. False
61. Markup pricing is usually most useful when consumers are not strongly affected by price.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
62. The equilibrium point reflects the intersection of the demand and supply curves.
a. True
b. False
63. Inelasticity demand occurs when consumers are highly sensitive to price changes.
a. True
b. False
64. Elastic demand occurs when consumers are not sensitive to price changes.
a. True
b. False
65. In international markets, demand, supply, and elasticity are all affected by local conditions.
a. True
b. False
66. International marketers realize that there is generally a great diversity in consumer demand in
international markets.
a. True
b. False
67. Adaptation of products to local markets generally increases international marketing costs.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
a. True
b. False
68. International big-box retailers, such as Vishal Mart and Carrefour, often follow below the
industry-average pricing.
a. True
b. False
69. Pricing against foreign competitors rarely occurs when international bids for contracts are
made.
a. True
b. False
70. Skimming represents an attempt to recover start-up costs as quickly as possible.
a. True
b. False
71. Penetration pricing occurs when an international marketer sets prices as low as possible in an
attempt to enter a market.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
72. Profit-based pricing may work well in situations in which prices are set to achieve a balance
between demand and supply while generating optimal profits.
a. True
b. False
73. With target ROI pricing, the first piece of information needed is consumer price elasticity.
a. True
b. False
74. In general, setting prices in international markets is less complex than setting them for
domestic markets.
a. True
b. False
75. Governmental regulations complicate pricing decisions in international markets.
a. True
b. False
76. Capacity to consume refers to the power to use goods and services in the satisfaction of
human needs.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
77. Ensuring capacity to consume is an important part of marketing to bottom-of-the-pyramid
consumers.
a. True
b. False
78. According to the text, providing credit to bottom-of-the-pyramid consumers can be an
effective international marketing technique.
a. True
b. False
79. Sell cars at a loss can attract new customers and maintain customer loyalty.
a. True
b. False
80. International marketers use quantity discounts to build relationships.
a. True
b. False
81. International marketers often take advantage of regional channel discounts.
a. True
b. False
82. Increased competition can trigger a permanent price reduction for international marketers.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
a. True
b. False
83. Decreased competition can trigger a permanent price reduction for international marketers.
a. True
b. False
84. Informing business customers about potential price increases is an important part of
establishing trust in international marketing relationships.
a. True
b. False
85. Raising prices without announcing such increases demonstrates Weber’s Law.
a. True
b. False
86. Weber’s Law applies equally to all cultures.
a. True
b. False
87. Predatory pricing is an overt attempt to drive competitors out of a market.
a. True
b. False
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
88. Dumping is the practice of selling goods below cost in a foreign country.
a. True
b. False
89. The World Trade Organization has outlawed dumping.
a. True
b. False
90. Dumping accusations usually originate from a foreign government, not from foreign
competitors.
a. True
b. False
91. Discuss how value considerations, emotional factors, and situational factors affect price
perceptions in international markets. Use an example of a product to illustrate your response.
92. Describe the various types of pricing objectives as they pertain to international marketing.
Discuss how an international marketer could use these objectives when developing prices for
international markets.
Instructor Resource
Baack et al., International Marketing, 2e
SAGE Publishing, 2019
93. Describe the various types of international pricing discounts and how an international
marketer could use each when developing an international marketing campaign.
94. Discuss the major categories of ethical issues that international marketers sometimes face
when they market their products in foreign countries.
95. Draw and discuss a pricing perceptional map for a product of your choice that is marketed
internationally. Use brands and/or companies of your choice. What conclusions can you make
from the map? How could an international marketer use this information?