41.
Tight cross-functional integration between R&D, production, and marketing
maximizes the time to market.
FALSE
Tight cross-functional integration between R&D, production, and marketing
can help a company to ensure that time to market is minimized.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-05 Describe how the globalization of the world economy is affecting new-product development
within the international business firm.
Topic: New-Product Development
42.
Designing for manufacturing increases not only product quality, but also
costs involved.
FALSE
Designing for manufacturing can lower costs and increase product quality.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-05 Describe how the globalization of the world economy is affecting new-product development
within the international business firm.
Topic: New-Product Development
43.
For a product development team to function effectively and meet all its
development milestones, the team should be composed of at least one
member from each key function.
TRUE
For effective functioning, a product development team should be composed
of at least one member from each key function.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-05 Describe how the globalization of the world economy is affecting new-product development
within the international business firm.
Topic: New-Product Development
44.
The need to integrate R&D and marketing to adequately commercialize new
technologies poses special problems in the international business because
commercialization may require different versions of a new product to be
produced for various countries.
TRUE
The need to integrate R&D and marketing to adequately commercialize new
technologies poses special problems in the international business because
commercialization may require different versions of a new product to be
produced for various countries. To do this, the firm must build close links
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-05 Describe how the globalization of the world economy is affecting new-product development
within the international business firm.
Topic: New-Product Development
Multiple Choice Questions
45.
Which of the following is one of the four elements that constitute a firm’s
marketing mix?
A.
Inventory accounting
B.
Product reengineering
C.
Reverse engineering
D.
The four elements that constitute a firm’s marketing mix are product
attributes, distribution strategy, communication strategy, and pricing
strategy.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-01 Explain why it might make sense to vary the attributes of a product from country to country.
Topic: Introduction
46.
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
The marketing mix is the set of choices the firm offers to its targeted
markets. Many firms vary their marketing mix from country to country,
depending on differences in national culture, economic development,
product standards, distribution channels, and so on.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-01 Explain why it might make sense to vary the attributes of a product from country to country.
Topic: Introduction
47.
Research has long maintained that a major factor of success for new
products is the closeness of the relationship between:
A.
finance and marketing.
B.
marketing and R&D.
C.
finance and materials management.
D.
finance and R&D.
Only marketing can tell R&D whether to produce globally standardized or
locally customized products. Research has long maintained that a major
contributor to the success of new-product introductions is a close
relationship between marketing and R&D.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 18-01 Explain why it might make sense to vary the attributes of a product from country to country.
Topic: Introduction
48.
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.
Levitt says that a powerful force drives the world toward a converging
commonalty, and that force is technology. It has proletarianized
communication, transport, and travel.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 18-01 Explain why it might make sense to vary the attributes of a product from country to country.
Topic: The Globalization of Markets and Brands
49.
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
The continuing persistence of cultural and economic differences between
nations acts as a brake on any trend toward the standardization of
consumer tastes and preferences across nations. Some writers have argued
that the rise of global culture doesn’t mean that consumers share the same
tastes and preferences. Rather, people in different nations, often with
conflicting viewpoints, are increasingly participating in a shared “global”
conversation, drawing upon shared symbols that include global brands.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 18-01 Explain why it might make sense to vary the attributes of a product from country to country.
Topic: The Globalization of Markets and Brands
50.
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
Market segmentation refers to identifying distinct groups of consumers
whose purchasing behavior differs from others in important ways. Markets
can be segmented in numerous ways: by geography, demography,
sociocultural factors, and psychological factors.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-01 Explain why it might make sense to vary the attributes of a product from country to country.
Topic: Market Segmentation
51.
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.
The existence of market segments that transcend national borders clearly
enhances the ability of an international business to view the global
marketplace as a single entity and pursue a global strategy, selling a
standardized product worldwide and using the same basic marketing mix to
help position and sell that product in a variety of national markets.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 18-01 Explain why it might make sense to vary the attributes of a product from country to country.
Topic: Market Segmentation
52.
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
The most important aspect of cultural differences is probably the impact of
tradition. Tradition is particularly important in foodstuffs and beverages. For
historical and idiosyncratic reasons, a range of other cultural differences
exist between countries.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-01 Explain why it might make sense to vary the attributes of a product from country to country.
Topic: Product Attributes
53.
Consumers in highly developed countries value ____ as compared to their
counterparts in less developed nations.
A.
product price
B.
product reliability
C.
product attributes
D.
product value
Firms based in highly developed countries such as the United States tend to
build a lot of extra performance attributes into their products. Consumers in
less developed nations, where the preference is for more basic products, do
not usually demand these extra attributes.
AACSB: Analytic
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 18-01 Explain why it might make sense to vary the attributes of a product from country to country.
Topic: Product Attributes
54.
Contrary to Levitt’s suggestions, consumers in the most developed
countries are often:
A.
willing to sacrifice their preferred attributes for lower prices.
B.
not willing to pay more for products that have additional features
customized to their tastes.
C.
not willing to sacrifice their preferred attributes for lower prices.
D.
willing to accept globally standardized products that have been
developed with the lowest common denominator in mind.
Consumers in the most advanced countries often shun globally
standardized products that have been developed with the lowest common
denominator in mind. They are willing to pay more for products that have
additional features and attributes customized to their tastes and
preferences.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 18-01 Explain why it might make sense to vary the attributes of a product from country to country.
Topic: Product Attributes
55.
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
A critical element of a firm’s marketing mix is its distribution strategy: the
means it chooses for delivering the product to the consumer.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-02 Recognize why and how a firm’s distribution strategy might vary among countries.
Topic: Distribution Strategy
56.
The way a product is delivered is determined by:
A.
the firm’s entry strategy.
B.
the firm’s product positioning.
C.
the target market.
D.
the market segments.
The way the product is delivered is determined by the firm’s entry strategy.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-02 Recognize why and how a firm’s distribution strategy might vary among countries.
Topic: Distribution Strategy
57.
In a concentrated retail system:
A.
there are many retailers who have a major share of the market.
B.
there are many retailers, no one 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.
In a concentrated retail system, a few retailers supply most of the market.
There is a tendency for greater retail concentration in developed countries.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 18-02 Recognize why and how a firm’s distribution strategy might vary among countries.
Topic: Distribution Strategy
58.
A country with high car ownership, a large number of households with
refrigerators, and a large number of two-income families tend to have:
A.
retail division.
B.
retail dispersion.
C.
retail concentration.
D.
retail fragmentation.
There is a tendency for greater retail concentration in developed countries
because of the increases in car ownership, the number of households with
refrigerators and freezers, and the number of two-income households. All
these factors have changed shopping habits and facilitated the growth of
large retail establishments sited away from traditional shopping areas.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 18-02 Recognize why and how a firm’s distribution strategy might vary among countries.
Topic: Distribution Strategy
59.
A ____ retail system is one in which there are many retailers, no one of
which has a major share of the market.
A.
concentrated
B.
consolidated
C.
focused
D.
fragmented
A fragmented retail system is one in which there are many retailers, no one
of which has a major share of the market. Retail systems are very
fragmented in many developing countries, which can make for interesting
distribution challenges.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-02 Recognize why and how a firm’s distribution strategy might vary among countries.
Topic: Distribution Strategy
60.
Which of the following statements about retail systems is true?
A.
One factor contributing to greater retail concentration is an increase in
car ownership.
B.
The number of households with refrigerators leads to lesser retail
concentration in developed countries.
C.
There is a tendency for greater retail concentration in many developing
countries.
D.
Retail systems are very fragmented in developed countries.
There is a tendency for greater retail concentration in developed countries
because of the increases in car ownership, the number of households with
refrigerators and freezers, and the number of two-income households. All
these factors have changed shopping habits and facilitated the growth of
large retail establishments sited away from traditional shopping areas.
61.
Which of the following countries has a concentrated retail system?
A.
China
B.
USA
C.
Japan
D.
India
In the United States, the importance of the automobile and the relative
youth of many urban areas have resulted in a retail system centered on
large stores or shopping malls to which people can drive.
AACSB: Reflective Thinking
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 18-02 Recognize why and how a firm’s distribution strategy might vary among countries.
Topic: Distribution Strategy
62.
____ refers to the number of intermediaries between the producer (or
manufacturer) and the consumer.
A.
Channel length
B.
Channel exclusivity
C.
Channel quality
D.
Channel speed
Channel length refers to the number of intermediaries between the
producer (or manufacturer) and the consumer.
AACSB: Analytic
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 18-02 Recognize why and how a firm’s distribution strategy might vary among countries.
Topic: Distribution Strategy
63.
If a producer sells through an import agent, a wholesaler, and a retailer,
then:
A.
a long channel exists.
B.
the retail system must be concentrated.
C.
the internet probably plays a big role in the economy.
D.
there is no channel.
If the producer sells directly to the consumer, the channel is very short. If
the producer sells through an import agent, a wholesaler, and a retailer, a
long channel exists. The choice of a short or long channel is in part a
strategic decision for the producing firm.
AACSB: Analytic
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 18-02 Recognize why and how a firm’s distribution strategy might vary among countries.
Topic: Distribution Strategy