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Student name:__________
1) What is Theodore Levitt’s contribution to international business?
2) What are the two main issues that managers must be aware of when considering market
segmentation in foreign countries?
3) How do levels of economic development affect consumer behavior? What are the
implications for marketing strategy?
4) What are the four main differences between distribution systems across countries?
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5) What are the three factors that contribute to the trend toward greater retail concentration
in developed countries? How have these factors promoted retail concentration?
6) What factors can jeopardize the success of a firm’s international communications?
7) Compare and contrast push strategies and pull strategies.
8) What are the arguments for standardized advertising across international markets?
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9) Explain the concept of price elasticity of demand. What are its determining factors?
10) Differentiate between multipoint pricing and experience curve pricing strategies.
11) Explain briefly the regulatory influences on pricing.
12) What factors affect the rate of new-product development in countries?
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13) Discuss the role of technology in new-product development, including the concept of
“creative destruction.”
14) Discuss the notion of cross-functional teams and their role in cross-functional integration.
What are the attributes that make a product development team successful?
15) The set of choices the firm offers to its targeted market is known as the
A) marketing mix.
B) marketing concept.
C) marketing strategy.
D) market promotion.
16) A major factor of success for new products is the closeness of the relationship between
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A) finance and marketing.
B) marketing and R&D.
C) finance and materials management.
D) finance and R&D.
17) According to Levitt, which of the following statements is true?
A) Technology drives the world toward a converging commonalty.
B) There are accustomed differences in national preferences.
C) The multinational corporation operates in a number of countries at low relative costs.
D) The global corporation operates with resolute consistency at high relative costs.
18) The continuing persistence of _____ differences between nations acts as a major brake on
any trend toward global consumer tastes and preferences.
A) technological and industrial
B) institutional and political
C) cultural and economic
D) GNP level and growth rate
19) The identification of distinct groups of consumers whose purchasing behavior differs
from others in important ways is known as
A) market segmentation.
B) market penetration.
C) diversification strategy.
D) differentiation.
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20) Marriott owns many brands of hotels, such as W Hotels, which is a luxury brand; Westin
hotels, which is an upscale brand; and Fairfield Inns, which are midscale. Marriott is marketing
its hotels based on
A) market segmentation.
B) market penetration.
C) diversification strategy.
D) differentiation.
21) If market segments transcend national borders
A) the company should develop unique products for each national market.
B) the company can view the global market as a single entity and pursue a global
strategy.
C) a localization strategy would be appropriate.
D) consumers will have differing purchasing behavior in different nations.
22) The most important aspect of a country’s cultural differences, particularly important in
foodstuffs and beverages, is the impact of
A) values.
B) traditions.
C) norms.
D) attitudes.
23) Consumers in highly developed countries value _____ as compared to their counterparts
in less developed nations.
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A) product price
B) product reliability
C) product attributes
D) product value
24) The process of identifying distinct groups of consumers whose purchasing behavior
differs from others in important ways is known as
A) demographic analysis.
B) market segmentation.
C) product mix.
D) consumer behavior analysis.
25) Consumers in the most developed countries are
A) typically most interested in products that have been developed with the lowest
common denominator in mind.
B) typically willing to sacrifice their preferred product attributes for lower prices.
C) often prefer globally standardized products.
D) often not willing to sacrifice their preferred attributes for lower prices.
26) Differences in _____ constrain the globalization of markets.
A) technical standards
B) measurement systems
C) manufacturing processes
D) energy costs
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27) There is a tendency for greater retail concentration in
A) rural areas.
B) developed countries.
C) urban areas.
D) developing countries.
28) The number of intermediaries between the producer and the consumer is known as the
A) channel quality.
B) marketing mix.
C) channel length.
D) experience curve.
29) A channel is considered to be very short if the producer sells
A) through an import agent.
B) through a wholesaler.
C) through a retailer.
D) directly to the consumer.
30) Countries with _____ retail systems tend to have long channels of distribution.
A) fragmented
B) intermarket
C) concentrated
D) exclusive
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31) _____ is one that is difficult for outsiders to access.
A) A concentrated retail system
B) An exclusive distribution channel
C) A private distribution channel
D) A fragmented retail system
32) The means a firm chooses for delivering the product to the consumer is its
A) communication strategy.
B) segmentation strategy.
C) product attributes.
D) distribution strategy.
33) The way a product is delivered is determined by the
A) firm’s entry strategy.
B) firm’s product positioning.
C) target market.
D) market segments.
34) In a concentrated retail system
A) there are many retailers who have a major share of the market.
B) there are many retailers, none of which has a major share of the market.
C) a few retailers supply a small segment of the market.
D) a few retailers supply most of the market.
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35) A country with high car ownership, a large number of households with refrigerators, and
a large number of two-income families tends to have
A) retail division.
B) retail dispersion.
C) retail concentration.
D) retail fragmentation.
36) A _____ retail system is one in which there are many retailers, none of which has a major
share of the market.
A) concentrated
B) consolidated
C) focused
D) fragmented
37) Which of the following countries has a concentrated retail system?
A) China
B) the United States
C) Japan
D) India
38) _____ refers to the number of intermediaries between the producer (or manufacturer) and
the consumer.
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A) Channel length
B) Channel exclusivity
C) Channel quality
D) Channel speed
39) The Duchess and the Duke sells through an import agent, a wholesaler, and a retailer. In
this case,
A) a long channel exists.
B) the retail system must be concentrated.
C) a short channel exists.
D) there is no channel.
40) Channel length is longer when a retail system is
A) concentrated.
B) fragmented.
C) decentralized.
D) globalized.
41) Which of the following statements about fragmented retail systems is true?
A) Countries with fragmented retail systems tend to have short channels of distribution.
B) The more fragmented the retail system, the less expensive it is for a firm to make
contact with each individual retailer.
C) Fragmented retail systems tend to promote the growth of wholesalers to serve
retailers.
D) When the retail sector is very fragmented, it makes sense for the firm to deal directly
with retailers.
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42) What kind of retail system does Japan have?
A) fragmented
B) direct
C) indirect
D) concentrated
43) With a concentrated retail sector
A) a relatively large sales force is required.
B) the orders generated from each sales call can be large.
C) there are long channels of distribution.
D) it is expensive for the firm to make contact with each individual retailer.
44) _____ distribution channel is one that is difficult for outsiders to access.
A) A selective
B) An intensive
C) An exclusive
D) A multichannel
45) When a channel is exclusive
A) the firm sells and distributes only high-end products.
B) it is controlled by market leaders or by firms who have a niche market.
C) the firm’s products are focused only on elite, upper class customers.
D) it is often difficult for a new firm to get access to shelf space in supermarkets.
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46) Channel _____ refers to the expertise, competencies, and skills of established retailers in
a nation, and their ability to sell and support the products of international businesses.
A) exclusivity
B) knowledge
C) quality
D) skill
47) Which of the following statements about the choice of distribution strategy is true?
A) The longer a channel, the greater the aggregate markup, and the higher the price that
consumers are charged for the final product.
B) If price is an important competitive weapon and if the firm does not want to see its
profit margins squeezed, other things being equal, the firm would prefer to use a longer channel.
C) The shorter a channel, the greater the aggregate markup, and the higher the price that
consumers are charged for the final product.
D) An international business must use shorter channels in countries where the retail
sector is fragmented and longer channels in countries where the retail sector is concentrated.
48) In the 1960s, the Swedish vacuum manufacturer Electrolux successfully marketed
vacuums in the United Kingdom with the slogan “Nothing sucks like an Electrolux.”
The informal United States meaning of the word sucks was well known in the United Kingdom
at the time, and the company hoped the slogan, with its possible double entendre, would gain
attention. When this slogan was used in the American market, it was a catastrophe. This is an
example of
A) cultural differences.
B) religious differences.
C) source effects.
D) noise levels.
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49) To overcome cultural barriers, companies should
A) develop products specifically for each market.
B) focus on universal needs.
C) focus only on international market segments.
D) develop cross-cultural literacy.
50) When the receiver of a message evaluates a message based on the status or image of the
sender, _____ are said to have occurred.
A) sender effects
B) noise effects
C) source effects
D) communication effects
51) The extent to which the place of manufacturing influences product evaluations is known
as
A) source effects.
B) country of origin effects.
C) noise effects.
D) location effects.
52) The “Swiss Made” label has leveraged several watchmakers (for example, TAG Heuer)
for decades now. This is an example of a ____ effect.
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A) linguistic
B) country of origin
C) noise
D) cultural
53) The probability of effective communications is reduced by
A) noise.
B) location effects.
C) country of origin effects.
D) source effects.
54) Which of the following statements about barriers to international communication is true?
A) Source effects occur when the receiver of the message evaluates the message on the
basis of the location of the sender.
B) The best way for a firm to overcome cultural barriers is to use local input.
C) Source effects and country of origin effects are always negative.
D) Noise is extremely high in highly developed countries such as the United States.
55) When a firm emphasizes personal selling rather than mass media advertising in the
promotional mix, the firm is using a ________ strategy.
A) standardized
B) pull
C) push
D) localized
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56) Which of the following statements is true?
A) Firms in consumer goods industries that are trying to sell to a large segment of the
market generally favor a push strategy.
B) Mass communication is costlier for firms in consumer goods industries that are
trying to sell to a large segment of the market.
C) Direct selling may be the only way to reach consumers in poor nations with low
literacy levels.
D) Firms that sell industrial products or other complex products favor a pull strategy.
57) A firm that depends more on mass media advertising to communicate the marketing
message to potential consumers is using a ________ strategy.
A) pull
B) push
C) standardized
D) localized
58) A push strategy is appropriate when
A) there are many choices of electronic media.
B) the firm is selling consumer goods.
C) distribution channels are long.
D) the firm is selling complex new products.
59) A pull strategy should be used when
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A) the firm is selling industrial products.
B) the distribution channels are short.
C) the distribution channels are long.
D) few print or electronic media are available.
60) Which of the following is an argument that supports global advertising?
A) Standardized advertising lowers the costs of value creation by spreading the fixed
costs of developing the advertisements over many countries.
B) Because of concerns about the scarcity of creative talent, some feel that smaller
efforts will produce better results than one large effort to develop a campaign.
C) Even though there are cultural differences between nations, a single advertising
theme that is effective worldwide can be easily developed.
D) Standardized advertising may be implemented even in the face of advertising
regulations.
61) French wine, Italian clothes, and German luxury cars all benefit from
A) source effects.
B) noise levels.
C) cultural preferences.
D) cultural differences.
62) When a company emphasizes personal selling, the company is probably using a
________ strategy.
A) standardized
B) push
C) localized
D) pull
63) A _____ strategy is generally favored by consumer goods firms that are trying to sell to a
large segment of the market.
A) push
B) globalization
C) pull
D) localization
64) A firm may be prevented from using _____ because of advertising regulations.
A) corporate advertising
B) culturally significant advertising
C) marketing strategies
D) standardized advertising
65) The use of price as a competitive weapon to drive weaker competitors out of a national
market is known as
A) experience curve pricing.
B) predatory pricing.
C) competitive pricing.
D) multipoint pricing.