International Business: The Challenges of Globalization, 7e (Wild)
Chapter 14 Developing and Marketing Products
1) Product differentiation is more likely when nations share the same level of economic
development.
2) A brand name can function as a legal property.
3) The value customers obtain from a product is heavily influenced by the image of the country
in which the product is manufactured.
4) All company and product brand names are made up of morphemes.
5) Counterfeiting is common among highly visible brand-name consumer goods.
6) Developed nations normally have the most active counterfeiting markets.
7) Product life cycles are becoming shorter because companies are undertaking new product
development at an increasingly rapid pace.
8) The rapid pace of technological innovation today extends the life cycles of products.
9) A push strategy is a promotional strategy designed to pressure channel members to promote a
product to final users.
10) A common example of a push strategy is the creation of consumer demand through direct
marketing techniques.
11) A push strategy is the most efficient promotional strategy when distribution channels are
lengthy.
12) Emerging markets typically have fewer forms of mass media for use in implementing a pull
strategy.
13) A pull strategy is most appropriate when buyers display a great deal of brand loyalty toward
one particular brand name.
14) Firms that standardize their advertising usually control campaigns from the home office.
15) In marketing, distribution is the process of sending promotional messages about products to
target markets.
16) The marketing communication process involves encoding and decoding of the promotional
message.
17) Noise refers to anything that disrupts the audience’s ability to receive and interpret a
promotional message.
18) By ignoring important cultural nuances, companies can inadvertently decrease the potential
for noise that can cloud the audience’s understanding of their promotional message.
19) Dual extension method extends the same home-market product and marketing promotion
into target markets.
20) The product adaptation/communications extension method adapts both the product and its
marketing communication to suit the target market.
21) Under the dual adaptation method, a company adapts its product to local requirements while
retaining the product’s original marketing communication.
22) The physical path a product follows on its way to customers is called a promotional channel.
23) Service providers do not need distribution channels because they market intangible goods.
24) The more intermediaries there are in a distribution channel, the less costly the channel
becomes.
25) The lower a product’s value density, the more localized is the distribution system for that
product.
26) An arm’s length price is the price that is charged for products sold among a company’s
divisions or subsidiaries.
27) Antidumping tariffs punish producers in the offending nation by increasing the price of their
products to a fairer level.
28) Governments in developing countries impose fewer consumer protection laws in order to
________.
A) hold down production costs and consumer prices
B) enable companies to focus on profit-making exclusively
C) decrease the flow of foreign direct investment into the country
D) decrease the complexity of the legal procedures for foreign direct investment
29) All company and product brand names are made up of semantic elements or language
building blocks called ________.
A) aesthetics
B) morphemes
C) hybrid words
D) propositions
30) ________ are imitation products passed off as legitimate trademarks, patents, or copyrighted
works.
A) Giffen goods
B) Counterfeit goods
C) Inferior goods
D) Intangible goods
31) Which of the following is true of counterfeit goods?
A) Developed nations normally have the most active counterfeiting markets.
B) Counterfeiting is more common among less visible local brands than global brands.
C) Most counterfeit products are imitations of products that normally enjoy legal protection.
D) Engineered industrial components and medicines are among the few categories of products
that cannot be counterfeited.
32) Which of the following is a marketplace of underground transactions that typically appears
because a product is either illegal or tightly regulated?
A) black market
B) niche market
C) two-sided market
D) vertical market
33) Which of the following is among the most commonly counterfeited products?
A) aircraft parts
B) watches
C) surgical equipment
D) medicines
34) The term ________ refers to a company’s efforts to reach distribution channels and target
customers through communications such as personal selling, advertising, public relations, and
direct marketing.
A) social marketing
B) viral marketing
C) promotion mix
D) positioning
35) ________ is a major component of a promotion mix.
A) Distribution
B) Market segmentation
C) Pricing
D) Public relations
36) Which of the following promotional strategies is being used by a company that hires a fleet
of trucks to drive through village squares and hand out free trial packages to potential end users?
A) push strategy
B) pull strategy
C) retrenchment strategy
D) differentiation strategy
37) A promotional strategy designed to create buyer demand that will encourage channel
members to stock a company’s product is called a ________.
A) pull strategy
B) push strategy
C) retrenchment strategy
D) stability strategy
38) Which of the following is a push strategy that companies use to promote their products?
A) mass media advertising
B) direct marketing techniques
C) free trial packages
D) retail product stocking
39) Which of the following is a promotional strategy designed to pressure channel members to
carry a product and promote it to final users?
A) differentiation strategy
B) retrenchment strategy
C) push strategy
D) pull strategy
40) As a promotional strategy, manufacturers of products that are commonly sold through
department and grocery stores often use ________.
A) a push strategy
B) a pull strategy
C) retrenchment strategy
D) stability strategy
41) A ________ is used for a product’s promotion when there are many levels of intermediaries
in its distribution channel.
A) push strategy
B) pull strategy
C) retrenchment strategy
D) stability strategy
42) Which of the following circumstances would best require a push strategy to be implemented
for product promotion?
A) channel members wield a great deal of power relative to that of producers
B) distribution channels are lengthy
C) buyers display a great deal of brand loyalty to particular product
D) products in question are industrial goods
43) Which of the following circumstances would best require a pull strategy to be implemented
for product promotion?
A) channel members wield relatively lesser power compared to that of producers
B) buyers display a great deal of brand loyalty to a particular product
C) distribution channels are short
D) buyers need to be informed about the features of a product before purchase
44) A ________ strategy is best suited for the promotion of industrial products because potential
buyers usually need to be informed about a product’s special features before purchase.
A) push
B) pull
C) stability
D) differentiation
45) A company that makes its marketing program elements uniform, targeting an entire region
with similar products, is demonstrating ________.
A) customization
B) segmentation
C) standardization
D) differentiation
46) Which of the following statements is true about international promotions?
A) Most companies standardize all aspects of their international promotions to cut costs.
B) Firms that standardize advertising often control campaigns from the home office.
C) Companies that adapt their advertising to different markets project a consistent brand image.
D) Companies discourage blending product and promotional strategies in a communication
process.
47) The process of sending messages about products to target markets is called ________.
A) customer relations
B) customer service
C) market segmentation
D) marketing communication
48) Which of the following occurs when an idea to be communicated is translated into images,
words, and symbols?
A) compiling
B) encoding
C) parsing
D) processing
49) Once an audience receives a message, they interpret the meaning of the message by
________ it.
A) preprocessing
B) decoding
C) parsing
D) compiling
50) ________ refers to anything that disrupts the audience‘s ability to receive and interpret a
promotional message.
A) Noise
B) Interpolation
C) Feedback
D) Resonance
51) Which of the following reflects the correct sequence of the marketing communication
process?
A) promotional message; encoding; decoding; feedback
B) encoding; promotional message; decoding; feedback
C) promotional message; decoding; feedback; encoding
D) encoding; decoding; promotional message; feedback
52) Which of the following communication strategies uses the same home-market product and
marketing promotion in target markets?
A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation
53) Which of the following communication strategies expands the same product into new target
markets but alters its marketing promotion?
A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation
54) Which of the following communication strategies adapts a product to the requirements of the
international market while retaining its original marketing communication?
A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation
55) Which of the following communication strategies adapts both the product and its marketing
communication to suit the target market?
A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation
56) A ________ strategy can be implemented successfully for communicating promotional
messages only if a sufficiently large and profitable market segment exists.
A) dual extension method
B) product extension/communications adaptation method
C) product adaptation/communications extension method
D) dual adaptation method
57) ________ is often necessary as a communication strategy when many important differences
exist between the home and target markets.
A) Product invention
B) Product adaptation
C) Dual adaptation
D) Dual extension
58) Which of the following refers to planning, implementing, and controlling the physical flow
of a product from its point of origin to its point of consumption?
A) customization
B) distribution
C) communication
D) promotion
59) The physical path a product follows on its way to customers is called a(n) ________.
A) distribution channel
B) demand chain
C) critical path
D) external value network
60) Companies along a distribution channel that work together in delivering products to
customers are called ________.
A) subsidiaries
B) intermediaries
C) value chains
D) value networks
61) A distribution channel in which a manufacturer grants the right to sell its products to only
one or a limited number of resellers is called a(n) ________.
A) intensive channel
B) exclusive channel
C) zero-level channel
D) two-level channel
62) A(n) ________ channel creates a barrier that makes it difficult or impossible for outsiders to
penetrate.
A) exclusive
B) intensive
C) selective
D) two-level
63) A(n) ________ channel gives producers a good deal of control over the sale of their product
by channel members such as wholesalers and retailers.
A) exclusive
B) intensive
C) two-level
D) selective
64) A distribution channel in which a producer grants the right to sell its product to many
resellers is referred to as a(n) ________.
A) one-level channel
B) zero-level channel
C) exclusive channel
D) intensive channel
65) A(n) ________ channel does not create strong barriers to channel entry for other producers,
nor does it provide much control over reseller decisions such as what competing brands to sell.
A) one-level
B) zero-level
C) exclusive
D) intensive
66) A(n) ________ channel provides buyers with location convenience because of the large
number of outlets through which a product is sold.
A) intensive
B) exclusive
C) one-level
D) zero-level
67) ________ refers to the number of intermediaries between producer and buyer.
A) Critical path
B) Channel length
C) Frequency
D) Value density
68) Which of the following is also known as direct marketing?
A) an intensive channel
B) an exclusive channel
C) a zero-level channel
D) a two-level channel
69) A(n) ________ channel places a single intermediary between the producer and the buyer.
A) intensive
B) exclusive
C) one-level
D) two-level
70) The value of a product relative to its weight and volume is called its ________.
A) face value
B) value investing
C) real value
D) value density
71) Which of the following is implied by a product with a low value density?
A) the distribution system is more localized
B) the product is more valuable
C) the cost of shipping the product is negligible
D) the product is processed in areas away from their original locations
72) Which of the following products has a low value-density ratio?
A) semiconductors
B) emerald
C) crude oil
D) premium perfumes
73) Which of the following is true of the value densities of products?
A) The cost of transporting goods with high value-density ratios is high relative to their value.
B) Products with high value-density ratios are integrated into the manufacturing process at points
close to their original locations.
C) Most commodities, including cement, iron ore, and crude oil, have high value-density ratios.
D) The lower a product’s value density, the more localized the distribution system.
74) A pricing policy in which one selling price is established for all international markets is
called ________.
A) dual pricing
B) value-based pricing
C) worldwide pricing
D) target pricing