International Business: The Challenges of Globalization, 9e (Wild)
Chapter 14 Developing and Marketing Products
1) 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
2) Which element of the marketing mix includes the development of the tangible and intangible
features that meet customer needs in diverse markets?
A) product
B) pricing
C) promotion
D) place
3) ________ are imitation products passed off as legitimate trademarks, patents, or copyrighted
works.
A) Giffen goods
B) Counterfeit goods
C) Inferior goods
D) Intangible goods
4) 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.
5) Which of the following is a marketplace of underground transactions that typically appear
because a product is either illegal or tightly regulated?
A) black market
B) niche market
C) two–sided market
D) vertical market
6) 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
7) Product differentiation is more likely when nations share the same level of economic
development.
8) A brand name can function as a form of intellectual property.
9) The value customers obtain from a product is heavily influenced by the image of the country
in which the product is manufactured.
10) All company and product brand names are made up of morphemes.
11) Counterfeiting is common among highly visible brand-name consumer goods.
12) Because developing nations often are weakest in enforcing such legal protections, they
normally have the most active counterfeiting markets.
13) Products could be in the decline stage in one country, while at the same time be in the growth
stage of the product life cycle in another country.
14) The rapid pace of technological innovation today extends the life cycles of products.
15) Explain the effect of counterfeit goods and black markets on international product strategies.
16) Discuss how a national business environment can influence a firm’s decision to standardize
or differentiate its product. How do cultural differences impact product strategies?
17) Describe any four factors that affect international product strategies.
18) Which component of the marketing mix encompasses all efforts by an international firm to
enhance the desirability of its products among potential buyers?
A) product
B) price
C) place
D) promotion
19) 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.
20) ________ refers to anything that disrupts the audience’s ability to receive and interpret a
promotional message.
A) Noise
B) Interpolation
C) Feedback
D) Resonance
21) 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
22) Which term refers to the mix of advertising, personal selling, sales promotion, and public
relations used by a firm to market its products?
A) marketing mix
B) promotion mix
C) public relations mix
D) communications mix
23) A pull rather than a push strategy is most likely preferable when ________.
A) self-service is not predominant
B) the price of a product is high relative to incomes
C) there are few governmental restrictions on advertising
D) there are a large number of languages and a low literacy rate
24) 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
25) 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
26) 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
27) 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
28) 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
29) A push strategy for international sales is most likely preferable to a pull strategy when
________.
A) there are few prohibitions on advertising
B) the price of the product is high relative to incomes
C) people rely on friends’ opinions before buying a product
D) literacy rates are high
30) 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
31) 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
32) The process of sending messages about products to target markets is called ________.
A) customer relations
B) customer service
C) market segmentation
D) marketing communication
33) 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
34) When the receiver re-translates the sent message he/she is engaging in ________.
A) preprocessing
B) decoding
C) parsing
D) compiling
35) 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
36) 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
37) 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
38) 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
39) 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
40) 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
41) ________ requires that an entirely new product be developed for the target market when
many important differences exist between the home and target markets.
A) Product invention
B) Product adaptation
C) Dual adaptation
D) Dual extension
42) If Silk Industries is interested in creating buyer demand that will encourage channel members
to stock its products, it should employ ________.
A) a pull strategy
B) a push strategy
C) horizontal integration
D) vertical integration
43) Which promotional strategy would be most appropriate for Silk Industries consumer product
line?
A) horizontal integration
B) vertical integration
C) push strategy
D) pull strategy
44) Which of the following would be most appropriate for Silk Industries products sold through
grocery stores?
A) horizontal integration
B) vertical integration
C) push strategy
D) pull strategy
45) If Silk Industries provides a promotional allowance to its channel members to carry a product
and promote it to final users, it is using ________.
A) pull strategy
B) push strategy
C) vertical integration
D) horizontal integration
46) A push strategy is a promotional strategy designed to pressure channel members to promote
a product to final users.
47) A common example of a push strategy is the creation of consumer demand through a
television advertising campaign.
48) A pull strategy is the most efficient promotional strategy when distribution channels are
lengthy.
49) Emerging markets typically have fewer forms of mass media for use in implementing a pull
strategy.
50) A push strategy is most appropriate when buyers display a great deal of brand loyalty toward
one particular brand name.
51) Firms that standardize their advertising usually control campaigns from the home office.
52) In marketing, advertising is a paid form of communication, done by an identifiable sponsor
for the purpose of informing, persuading, influencing or reminding the target market about the
product the firm is offering.
53) The marketing communication process involves encoding and decoding of the promotional
message.
54) Effective communication is when the message received is understood in the same way that
the sender transmitted.
55) By ignoring important cultural nuances, companies can inadvertently decrease the potential
for noise that can cloud the audience’s understanding of their promotional message.
56) Dual extension method extends the same home-market product and marketing promotion
into target markets.
57) The product adaptation/communications extension method adapts the product to suit the
target market; however, it uses its original marketing communication.
58) Under the dual adaptation method, a company adapts its product to local requirements while
retaining the product’s original marketing communication.
59) How does the dual extension method work as a promotional strategy?