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c16 Key
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 needs, wants, and purchasing
behavior differ 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 differences 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. Consumers in the most developed countries are often willing to sacrifice their preferred product attributes
for lower priced products.
11. Firms based in less developed nations tend to build a lot of extra performance attributes into their products.
12. Differences in government-mandated product standards can rule out mass production and marketing of a
standardized product.
13. A concentrated retail system is one in which there are many retailers, none of which has a major share of the
market.
14. In terms of the differences between countries with respect to distribution systems, there is a tendency for
lesser retail concentration in developed countries.
15. 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.
16. The expertise, competencies, and skills of established retailers in a nation, and their ability to sell and
support the products of international business are referred to as channel exclusivity.
17. There is generally a critical link among 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.
18. One benefit of a longer distribution channel is that it cuts selling costs when the degree of fragmentation of
the retail sector is less.
19. Many international businesses try to counter negative source effects by deemphasizing their foreign origins.
20. A pull strategy refers to a marketing strategy that emphasizes personal selling rather than mass media
advertising in the promotional mix.
21. Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a
push strategy.
22. The shorter the distribution channel, the more intermediaries there are that must be persuaded to carry the
product for it to reach the consumer.
23. A firm's ability to use a pull marketing strategy is limited in some countries by media availability.
24. 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.
25. 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.
26. Predatory pricing exists whenever consumers in different countries are charged different prices for the same
product, or for slightly different variations of the product.
27. Predatory pricing and experience curve pricing do not violate antidumping regulations.
28. 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.
it.
29. A technological innovation can make established products obsolete overnight.
30. 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.
31. Firms can reduce the failure of product development by ensuring that research and development, marketing,
and production functions work independently.
32. Which of the following functions of an international business is required to create new products?
33. Which of the following refers to choices about product attributes, distribution strategy, communication
strategy, and pricing strategy that a firm offers its targeted markets?
34. Which of the following is an element of a firm's marketing mix?
35. Who among the following asserted in an article in the Harvard Business Review that modern transportation
and communications technologies are facilitating a convergence of certain tastes and preferences among
consumers in the more advanced countries of the world?
36. Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about
the globalization of world markets?
37. Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about
the globalization of world markets?
38. Which of the following is a statement made by Theodore Levitt about the globalization of world markets?
39. Which of the following is true of Theodore Levitt's arguments concerning the globalization of world
markets?
40. Which of the following factors constrains a firm's ability to sell a standardized product to a global market
using a standardized marketing strategy?
41. Which of the following refers to identifying distinct groups of consumers whose needs, wants, and
purchasing behavior differ from others in important ways?
42. Which of the following is a definition of market segmentation?
43. Which of the following is a goal of market segmentation?
44. Which of the following is true of market segmentation?
45. In terms of the factors affecting product attributes, the impact of which of the following is particularly
important in foodstuffs and beverages?
46. Which of the following contradicts Theodore Levitt's arguments for the globalization of world markets?
47. Which of the following is true of the influence of economic development on consumer preferences?
48. Which of the following factors constrains the globalization of markets?
49. Which strategy refers to the means that a firm chooses for delivering a product to its consumer?
