1. A global marketing strategy that views the world’s consumers as similar in their
preferences is consistent with the mass production of a standardized output.
2. A critical aspect of the marketing function is identifying gaps in the market so that a firm
can develop new products to fill those gaps.
3. Firms vary their marketing mix from country to country depending on differences in
national culture
4. According to Theodore Levitt, technology has resulted in the emergence of global
markets for standardized consumer products on a previously unimagined scale of magnitude.
5. Markets can be segmented by geography, demography, sociocultural factors, and
psychological factors.
6. Market segmentation refers to identifying distinct groups of consumers whose
purchasing behavior differs from others in important ways.
7. When managers in an international business consider market segmentation in foreign
countries, they need to be cognizant of the difference between countries in the structure of
market segments.
8. For a market segment to transcend national borders, consumers in that segment must
have some compelling similarities along important dimensions such as age, values, and lifestyle
choices.
9. In terms of factors influencing product attributes, the impact of tradition is particularly
important in foodstuffs and beverages.
10. The fact that tastes and preferences of consumers are not universal disproves Theodore
Levitt’s views on the globalization of markets.
11. Consumers in the most developed countries are often willing to sacrifice their preferred
product attributes for lower priced products.
12. Firms based in less developed nations tend to build a lot of extra performance attributes
into their products.
13. Differences in government-mandated product standards can rule out mass production
and marketing of a standardized product.
14. A concentrated retail system is one in which there are many retailers, none of which has
a major share of the market.
15. In terms of the differences between countries with respect to distribution systems, there
is a tendency for lesser retail concentration in developed countries.
16. In terms of channel length, the more fragmented the retail system, the less expensive it is
for a firm to make contact with each individual retailer.
17. The expertise, competencies, and skills of established retailers in a nation, and their
ability to sell and support the products of international business is referred to as channel
exclusivity.
18. There is generally a critical link between channel length, the final selling price, and the
firm’s profit margin because each intermediary in a channel adds its own markup to the
products.
19. One benefit of a longer distribution channel is that it cuts selling costs when the degree
of fragmentation of the retail sector is less.
20. The effectiveness of a firm’s international communication can be jeopardized by cultural
barriers only.
21. In international marketing, a message that means one thing in one country may mean
something quite different in another due to cultural differences.
22. Many international businesses try to counter negative source effects by deemphasizing
their foreign origins.
23. A pull strategy refers to a marketing strategy that emphasizes personal selling rather than
mass media advertising in the promotional mix.
24. Firms in consumer goods industries that are trying to sell to a large segment of the
market generally favor a push strategy.
25. The shorter the distribution channel, the more intermediaries there are that must be
persuaded to carry the product for it to reach the consumer.
26. A firm’s ability to use a pull marketing strategy is limited in some countries by media
availability.
27. A disadvantage of standardized advertising is that it increases the costs of value creation
by spreading the fixed costs of developing the advertisements over many countries.
28. The elasticity of demand for a product in a given country is determined by a number of
factors, of which income level and competitive conditions are the two most important.
29. Predatory pricing exists whenever consumers in different countries are charged different
prices for the same product, or for slightly different variations of the product.
30. Predatory pricing and experience curve pricing do not violate antidumping regulations.
31. In terms of pricing decisions, full responsibility for pricing decisions should be delegated
to the managers of various national subsidiaries, thereby reaping the benefits of
decentralization.
32. In terms of pricing strategies, dumping occurs whenever an international firm sells a
product for a price that is less than the price charged by domestic producers.
33. A technological innovation can make established products obsolete overnight.
34. Dispersing research and development activities to many locations around the
world allows a firm to stay close to the center of leading-edge activity to gather scientific and
competitive information and to draw on local scientific resources.
35. Firms can reduce the failure of new-product development by insisting that research and
development, marketing, and production functions work independently.
36. Which of the following functions of an international business is required to create new
products?
37. Which of the following is true of the marketing and research and development
(R&D) departments in an international firm?