75) A pricing policy in which a product has a different selling price in export markets than it has
in the home market is called ________.
A) dual pricing
B) cost-plus pricing
C) penetration pricing
D) premium pricing
76) When a product has a higher selling price in the target market than it does in the home
market or the country where production takes place, it is called ________.
A) price skimming
B) price escalation
C) price dispersion
D) price fixing
77) Which of the following refers to the price charged for products sold between a company’s
divisions or subsidiaries?
A) dual pricing
B) transfer price
C) price skimming
D) arm’s length price
78) The free-market price that unrelated parties charge one another for a specific product is
called a(n) ________.
A) worldwide price
B) transfer price
C) dual price
D) arm’s length price
79) Upper or lower limits placed on the prices of products sold within a country are known as
________.
A) price controls
B) transfer prices
C) price escalators
D) arm’s length prices
80) Which of the following occurs when the price of a good is lower in export markets than it is
in the domestic market?
A) skimming
B) dumping
C) transfer pricing
D) price escalation
Scenario: Silk Industries LLC
Silk Industries LLC comprises two major divisions: consumer products and industrial products.
The consumer product line of the company is well-recognized and consists of loyal customers
worldwide. The management is considering different types of promotional strategies for the two
product divisions.
81) 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
82) Which of the following would be most appropriate for its consumer product line?
A) horizontal integration
B) vertical integration
C) push strategy
D) pull strategy
83) Which of the following would be most appropriate for its products sold through grocery
stores?
A) horizontal integration
B) vertical integration
C) push strategy
D) pull strategy
84) If Silk Industries pressures 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
Scenario: Old World Ltd.
Old World Ltd., a London-based furniture manufacturer, is establishing its global distribution,
pricing, and promotion strategies. Being new to global business, the firm is seeking your help in
making its decisions.
85) If Old World wants to grant the right to sell its furniture to only a limited number of resellers,
it should consider a(n) ________ channel.
A) intensive
B) exclusive
C) two-level
D) selective
86) If Old World wants to have its furniture sold through as many distribution outlets as possible,
it should consider a(n) ________ channel.
A) exclusive
B) intensive
C) one-level
D) zero-level
87) Old World should pursue a(n) ________ channel if it decides to greatly intensify its direct
marketing efforts.
A) intensive
B) one-level
C) zero-level
D) selective
88) If Old World adopts different selling prices in export markets than it has in the British
market, it would be following a ________ pricing strategy.
A) dual
B) transfer
C) target
D) worldwide
Scenario: Scooters Inc.
Scooters Inc. is a producer of pricey scooters. The company’s profits come mostly from the sales
of its luxury line that caters to the esteem needs of the rich population. Ben Driven, vice
president of marketing for Scooters Inc., has been asked to review the company’s pricing
strategy.
89) Ben knows that a pricing policy in which one selling price is established for all international
markets is called ________.
A) worldwide pricing
B) value-based pricing
C) dual pricing
D) arm’s length pricing
90) Because Scooters Inc. caters to a very narrow niche of wealthy individuals, the CEO is
interested in implementing a worldwide pricing scheme. Which of the following is most likely a
reason for the establishment of such a scheme?
A) Their production costs differ from market to market.
B) The currency values fluctuate fairly predictably.
C) Their distribution channels are lengthy in each market.
D) Their customers have similar levels of purchasing power.
91) Scooters Inc. has traditionally sold its products at one price in the domestic market and at
another price in export markets, which is called a(n) ________ pricing strategy.
A) target
B) value
C) dual
D) arm’s length
92) Describe any four factors that affect international product strategies.
93) 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?
94) Differentiate between the push and pull promotional strategies. Explain the factors that
determine whether the push or the pull strategy is appropriate in a given marketing environment.
95) Explain the effect of counterfeit goods and black markets on international product strategies.
96) How does the dual extension method work as a promotional strategy?
97) Using examples, explain the circular process of marketing communication.
98) Describe the five communication strategies that companies commonly use and cite situations
where the strategies are used.
99) Briefly discuss the effects of globalization on international marketing activities and explain
how a dual adaption method works as a promotional strategy.
100) Explain the primary concerns of managers when establishing distribution policies.
101) What is value density and what is its impact on an organization’s distribution policy?
102) How can a lack of market understanding, theft, and corruption affect distribution?
103) Differentiate between worldwide and dual pricing. Which one of these is more difficult to
achieve and why?