International Business, 14e (Daniels et al.)
Chapter 16 Marketing Globally
1) Which of the following was most responsible for the early success of Tommy Hilfiger clothing?
A) The products were mass-marketed through discount stores.
B) Internet mail-order sales were developed when people had less time to shop.
C) Products were developed to fit the specific needs of different country markets.
D) Brand awareness was developed through advertising.
2) Tommy Hilfiger has encountered some European resistance to the sale of its products because
________.
A) many European consumers associate France and Italy, rather than the U.S., with upscale fashions
B) its customary prices, especially for the German market, have been out of reach for its target market
C) it has refused to adjust products to fit the tastes and needs of local consumers
D) it has depended on self-service in its company-owned stores
3) International marketing differs from domestic marketing in that ________.
A) marketing principles are different
B) consumers prefer domestically made merchandise
C) environmental variations require applying principles differently
D) low prices are a more important competitive factor in foreign markets
4) In comparing international and domestic marketing, it is best to state that ________.
A) similar principles are at work
B) mass-market orientations are most effective
C) principles differ for product and price, but not for advertising
D) the differences between them can be studied through gap analysis
5) The marketing orientation used by Bantam Shoes for its foreign sales focuses primarily on efficiency
and product quality. Bantam most likely uses a ________.
A) production orientation
B) customer orientation
C) sales orientation
D) strategic marketing orientation
6) When selling a commodity for which there is little possibility of product differentiation, a company
would likely use which of the following orientations internationally?
A) customer orientation
B) production orientation
C) sales orientation
D) strategic marketing orientation
7) Executives at Apex decided to use a production orientation in the firm’s international marketing
efforts. Which of the following statements best supports this decision?
A) Top management at Apex is committed to the concept of social responsibility.
B) Apex is willing to alter its products to fit mass-market needs in foreign countries offering growth
potential.
C) Apex will produce in each country where it sells.
D) Apex will aim sales at foreign-market segments that resemble segments to which it aims
domestically.
8) All of the following are true about passive exports EXCEPT that ________.
A) companies adapt their products very little to foreign consumer preferences
B) companies frequently export only if they have excess capacity
C) companies generally quote higher prices on exports than on domestic sales
D) they refer to the filling of unsolicited requests from abroad
9) Companies using a sales orientation find their greatest ability to sell the same product in more than
one country when ________.
A) promotional programs are identical in each country
B) consumer characteristics are similar
C) the product is a household item
D) the product has a low price relative to incomes
10) Which of the following would be an example of a customer orientation in international marketing?
A) A cosmetics company bans animal testing of its products to gain goodwill.
B) A fruit company brands the bananas it sells in foreign and domestic markets.
C) A beer company makes non-alcoholic beer for a country that bans the sale of alcohol.
D) A plastics manufacturer makes some components to the specifications of a foreign company.
11) Pulte Homes adapts its marketing to foreign differences by making minor changes to bathrooms and
outdoor patios. However, Pulte Homes uses the same floor plans and exterior attributes in all countries
to gain economies of standardization. Pulte Homes most likely follows a ________.
A) social marketing orientation
B) sales orientation
C) strategic marketing orientation
D) production orientation
12) Which of the following best describes a company that follows a social marketing orientation?
A) It considers political and safety dimensions of its products.
B) It is a not-for-profit entity based in a developed country.
C) It is a government-owned entity from an emerging economy.
D) It generates sales to niche markets using social networking sites.
13) What is the most common way of identifying market segments within a country?
A) psychographics
B) the Internet
C) gap analysis
D) demographics
14) Which of the following is most likely to occur when a firm segments markets by country?
A) achieving objectives by following a sales orientation strategy within that market
B) initially targeting the high-income consumers within that market
C) overlooking similarities between different countries
D) introducing multiple products to assess demand
15) What is the most likely reason that sales to a mass market would be necessary for a company selling
internationally?
A) gaining economies in production and distribution
B) earning initial sales in emerging economies
C) eliminating excess domestic capacity
D) gaining brand recognition
16) When a company identifies a market segment on a global basis, such as a segment based on income,
it will likely ________.
A) encounter a similar percentage of the population in each country within that segment
B) find that a niche market in one country may be a mass market in another
C) find that the market in each country is so dispersed that distribution is difficult
D) be aiming at a mass market in each country
17) Why are MNEs criticized for exporting to developing countries the same products they sell in
developed countries?
A) The prices of the products are too low in developing countries.
B) Many of the products are deemed to be unnecessary for low income consumers.
C) The sales enhance local company failures in developing countries.
D) Developing countries need local production rather than imports.
18) Some critics complain that MNEs introduce and promote superfluous products in developing
countries, causing consumers there to buy these products rather than things they need for their health.
People answering this criticism have contended that ________.
A) consumers don’t buy things because of promotion
B) the amount spent on so-called superfluous products is insignificant
C) it is impossible to draw a line between people who can afford and people who can’t afford these
products
D) these products serve to motivate people in developing countries to work harder
19) Agreements on international product standards are hampered by all the following factors EXCEPT
________.
A) that standardization increases production costs
B) consumer reluctance to change
C) the cost of redesigning and retooling
D) governments’ desires to protect investments
20) What is the most likely reason that companies such as Gillette (razor blades) and 3M (scouring pads)
sell products in smaller package sizes in some developing countries?
A) Family size is small in those countries.
B) Some governments require the smaller sizes.
C) In those countries, many consumers lack sufficient cash to buy larger quantities.
D) These are products for which the cost of altering package size is negligible.
21) Firms alter their products for foreign markets for all of the following reasons EXCEPT ________.
A) home country export requirement
B) religious differences abroad
C) weak infrastructures in some countries
D) to respond to legal requirements
22) Critics complain that pharmaceutical research budgets emphasize non-debilitating conditions
common in developed countries rather than life-threatening diseases common in developing countries.
People answering this criticism have contended that ________.
A) correction of developed country conditions, such as balding, are necessary to stimulate developing
country innovations that push global economic growth
B) very small portions of research budgets actually target these non-debilitating conditions
C) by being located almost entirely in developed countries, pharmaceutical companies lack access to
locations where they can study diseases such as malaria and sleeping sickness
D) pharmaceutical companies cannot recoup expenses for research on some of the developing country
problems, so governmental research centers and nonprofit foundations should handle this research
23) Why might companies sometimes narrow the product line that they sell in a foreign country as
compared to the product line they sell at home?
A) Government restrictions typically limit how many products a company can sell locally.
B) Selling cost per unit increases substantially when a company offers a broad product line.
C) Not all products have sufficient demand in every market.
D) Firms cannot sell products with product line gaps.
24) If a company’s foreign sales per customer is small compared to those in its domestic market, it
should most likely ________.
A) introduce a larger family of products
B) narrow the product line offered to the market
C) reconfigure the product life cycle marketing strategy
D) shift additional salespeople to the domestic market
25) Diversity of international markets and currency instability have the greatest effect on ________.
A) promotion
B) R&D
C) branding
D) pricing
26) A company would most likely export at a price lower than its production and distribution costs in
order to ________.
A) use a skimming strategy abroad before using one domestically
B) test a market before making a big commitment
C) use a cost-plus strategy globally
D) encourage gray market sales
27) Executives want to set export prices below those that the firm charges domestically. What is the
most likely problem the company will experience?
A) WTO antidumping regulations
B) consumer complaints
C) FDI restrictions
D) high tariffs
28) Dixon Electronics recently introduced a new computer with features unavailable from other products
on the market. Dixon is charging a very high price for the computer and has plans to progressively lower
the price over the next year. Dixon is most likely using a ________ strategy.
A) cost-plus
B) skimming
C) penetration
D) diversification
29) Foreman Enterprises produces and sells a variety of products for the home. Foreman recently
introduced a new detergent at a very low price with the hope that a high number of consumers will try it
out. Foreman is most likely using a ________ strategy.
A) cost-plus
B) skimming
C) penetration
D) diversification
30) Why does price escalation most likely occur in exporting?
A) The WTO requires that prices increase.
B) Companies rely on skimming price strategies.
C) Greater distances and more intermediaries increase distribution costs.
D) Uncertain currency value changes necessitate charging higher prices.
31) Which of the following would LEAST likely be caused by a high inflation rate?
A) rules against increasing export prices
B) inability to quote prices in letters or catalogs
C) difficulty making changes to vending machines
D) necessity to set an equivalent value in a stable currency
32) What is the gray market?
A) sales targeted to elderly consumers
B) selling goods through unofficial distributors
C) a legal black market run by governments
D) selling counterfeit merchandise
33) What is the LEAST likely reason that international companies are concerned about the gray market?
A) undermining the long-term viability of the distributorship system
B) causing a firm’s operations in different countries to compete against each other
C) requiring companies to make frequent price adjustments to capture the market
D) preventing companies from charging what the market will bear in each country
34) Which of the following best depicts a push strategy for a U.S. company selling in Mexico?
A) Tupperware selling through parties in homes
B) Gillette selling razor blades through supermarkets
C) KFC selling chicken dinners at its franchises
D) Google advertising on television
35) 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
36) 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
37) Promotion using direct selling techniques is ________.
A) a pull strategy
B) necessary where inflation is high
C) a standardized advertising technique
D) a push strategy
38) Which of the following best describes globally standardized advertising?
A) a campaign that is identical in all markets
B) a campaign that meets the legal and ethical standards of all countries
C) a campaign that is similar but not identical from market to market
D) a campaign that depends primarily on push rather than pull promotion
39) All of the following are possible advantages of globally standardized advertising programs EXCEPT
________.
A) cost savings
B) improvement of local-level quality
C) avoidance of legal impediments
D) faster entry into different markets
40) Increasingly, media reach audiences in more than one country, such as through satellite TV that
reaches multiple countries simultaneously. What is NOT a problem of advertising on these media?
A) Because of reaching so many households, the cost is prohibitive.
B) The product may not be available everywhere it is advertised.
C) A company may not be able to advertise price because they may differ among countries.
D) The advertisement may reach countries using different languages.
41) In advertisements aimed at different countries, companies sometimes use actors who do not speak,
along with a voice and/or print overlay. What is the main reason for doing this?
A) avoiding dubbing that does not correspond to lip movements
B) altering themes and messages among countries
C) meeting legal requirements on morality
D) reaching a hearing-or sight-impaired audience
42) All of the following are problems of using a worldwide brand EXCEPT which one?
A) Brand names may carry a different association in another language.
B) Pronunciation may be difficult in another language.
C) Acquired brand names cannot be legally changed.
D) Pictogram alphabets need visual appeal in addition to phonetic appeal.
43) Which of the following statements is most likely true?
A) Consumers in most countries believe that imported products are better than locally made products.
B) Brand names have little impact on perceptions about a product’s country-of-origin.
C) Consumers in most countries favor locally made products over imported products.
D) A positive brand image helps overcome negative perceptions about a product’s country-of-origin.
44) The importance of using a brand to convey the perception of whether a firm will deliver what it
promises is more critical in ________.
A) countries without strong trademark protection
B) selling to mass markets than in selling to niche markets
C) countries with strong cultural characteristics of uncertainty avoidance
D) selling industrial products than final consumer products
45) All of the following are true about distribution concerns when marketing internationally EXCEPT
which one?
A) Geographic barriers may divide countries into very distinct markets.
B) In some countries, few potential sales lie outside the large metropolitan areas.
C) Each country has its own distribution system, making standardization of distribution difficult.
D) Because most foreign consumers are easily presold by advertising messages, it is difficult to
convince retailers to offer good service.
46) Ampco Industries has a production facility in an area of India in which roads are poorly maintained
and dangerous. What part of Ampco’s marketing mix do these conditions most likely affect?
A) distribution
B) branding
C) product standardization
D) promotion
47) Which of the following is true concerning countries’ distribution systems?
A) They reflect the economic levels of countries, so countries at similar economic levels have similar
distribution systems.
B) They are difficult to change because they have evolved over time, reflecting countries’ cultural,
economic, and legal environments.
C) They are more similar among countries than pricing and promotional systems are.
D) When standardized, they offer more cost savings for international companies than when products are
standardized.