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Student name:__________
TRUE/FALSE – Write ‘T’ if the statement is true and ‘F’ if the statement is false.
1) International markets often differ widely because of great variations in the uncontrollable
environmental forces.
⊚ true
⊚ false
2) The marketing mix is the name given to the advertising schedule used to promote a
product.
⊚ true
⊚ false
3) The product is the central focus of the marketing mix.
⊚ true
⊚ false
4) The promotional product includes the physical product, brand name, accessories, after-
sales service, warranty and instructions for use, company image, and package.
⊚ true
⊚ false
5) The packaging is not considered a component of the total product.
⊚ true
⊚ false
6) Generally, industrial products require greater adaptation than consumer products to meet
the demands of the world market.
⊚ true
⊚ false
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7) Consumer products that are “trendy” or based on a fad, generally require greater
adaptation to local markets.
⊚ true
⊚ false
8) To avoid changing the product to meet local legal requirements, manufacturers frequently
design it to meet the most stringent laws, even though it is overdesigned for other markets.
⊚ true
⊚ false
9) Luxury items such as perfume can often be sold without adaptation in many different
foreign markets.
⊚ true
⊚ false
10) Generally, the deeper the immediate market penetration desired, the greater the product
modification must be.
⊚ true
⊚ false
11) The marketing of services is similar to the marketing of industrial products in that these
products are generally easier to market globally than consumer products.
⊚ true
⊚ false
12) Dissimilar cultural patterns generally necessitate changes in marketing of food and other
consumer goods.
⊚ true
⊚ false
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13) The great disparity in income throughout the world makes it easier to obtain worldwide
product standardization.
⊚ true
⊚ false
14) When considering all the forms of promotion, advertising is generally the one that
changes most around the world.
⊚ true
⊚ false
15) The Internet is considered a valuable marketing research tool because it can reach an
affluent, accessible audience.
⊚ true
⊚ false
16) Buyers of consumer goods usually act on the same motives the world over.
⊚ true
⊚ false
17) Of all the promotional mix elements, personal selling has the greatest similarities
worldwide.
⊚ true
⊚ false
18) One way a company uses sales promotion is by providing point-of-purchase displays to
retail stores.
⊚ true
⊚ false
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19) A middle-ground advertising strategy in which the home office and the foreign
subsidiaries agree on marketing objectives is called the computerized-management approach.
⊚ true
⊚ false
20) Disintermediation is most often the result of a company’s ability to combine the Internet
with fast delivery services.
⊚ true
⊚ false
MULTIPLE CHOICE – Choose the one alternative that best completes the statement or
answers the question.
21) The international marketing manager’s task is more complex than the domestic marketing
manager’s in part because
A) there are greater variations in uncontrollable environmental forces among nations.
B) there are no trade barriers in international markets.
C) international markets are geographically dispersed and require coordination.
D) marketing personnel are difficult to find in an international context.
22) Generally, management prefers global product standardization because
A) it creates lower costs.
B) marketing campaigns must be consistent.
C) packaging cannot be changed to please a single market.
D) it eliminates economies of scale.
23) The management team met to discuss the best way to promote, price, and distribute the
new product. What is the management team working on?
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A) personal selling
B) the marketing mix
C) financial analysis
D) sociocultural forces
24) If a company is able to standardize the marketing mix globally, how does it affect
economies of scale?
A) The company can take advantage of economies of scale based on longer production
runs and lower manufacturing costs.
B) The company misses out on economies of scale because it is customizing products
for individual markets.
C) The company only reaches economies of scale if it returns to the domestic market.
D) The company will enjoy economies of scale for the initial introduction of a product
but then lose those economies once a product matures.
25) Standardization consists of
A) using the same marketing mix in all of the firm’s markets.
B) respecting traditional, standard approaches to the marketing mix.
C) respecting international measurement and technical standards set by the UN.
D) focusing on the local markets to develop the best marketing mix for them.
26) Economies of scale, which reduce costs, can be achieved through
A) standardization.
B) localization.
C) customization.
D) arbitration.
27) “The longer our experience at doing something, the better we get at it,” is a description of
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A) the learning curve.
B) economies of scale.
C) corporate visual identity.
D) mass customization.
28) The name, logo, graphics, colors, and typeface associated with a firm make up its
A) corporate visual identity.
B) mission statement.
C) marketing mix.
D) vision statement.
29) Standardization is best described as
A) much harder than it sounds.
B) much easier in developing markets.
C) increasingly more difficult the further from the home office the market is.
D) less costly in the short run, but produces suboptimal results in the market.
30) Sorrell Agri Products needs to determine how it will promote the new product, how much
it will cost, and where it will be distributed. In other words, the company is making decisions
about
A) the marketing mix.
B) the corporate visual identity.
C) the vision statement.
D) standardization versus customization.
31) What is considered the central focus of the marketing mix for every company?
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A) product
B) price
C) placement
D) promotion
32) The total product consists of
A) the preproduction stage of manufacturing.
B) the physical product, brand name, accessories, and after-sales service.
C) available competitor products.
D) the physical product minus marketing.
33) The item that a customer buys is called the
A) promotional product.
B) cost product.
C) total product.
D) physical product.
34) Which product would be considered the most global because it is the same everywhere?
A) tonic water
B) breakfast cereal
C) chocolate
D) instant coffee
35) When determining the product strategy, marketers know that the product is
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A) more than a physical object.
B) less than the sum of its parts.
C) the same as the brand name.
D) designed with obsolescence in mind.
36) Product adaptation for a new market
A) can be any part of the product, not necessarily the physical product.
B) must be the physical product, because that is what the customer is buying.
C) is a wasted effort, since the consumer wants what is in the product’s home market.
D) requires a complete overhaul of the existing product.
37) In terms of product modification when selling worldwide, Industrial products typically
require ________ than do consumer products.
A) greater adaptation
B) greater segmentation
C) less adaptation
D) greater localization and distribution
38) Governments can force local product adaptation by enacting laws that
A) set product standards, such as noise, safety, and emissions.
B) reduce tax liability for certain products.
C) prohibit the import of certain goods.
D) reward consumers with incentives for specified behaviors.
39) Examples of goods that can be sold worldwide without adaptation include
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A) memory chips.
B) clothing.
C) cars and trucks.
D) packaged cake mixes.
40) Some luxury consumer goods sometimes need no adaptation for foreign markets.
Examples are
A) champagne and perfume.
B) Porsches and Ferraris.
C) winter clothing.
D) cheeses and milk.
41) A product targeting significant local market penetration will probably have
A) considerable adaptation for the local market.
B) mass manufacturing prices.
C) a standardized, global marketing mix.
D) gold packaging and a low price.
42) The marketing of services ________ the marketing of industrial products.
A) shares a complexity level with
B) is easier than
C) is less difficult than
D) requires more adaptation than
43) Credit cards are an example of a(n) ________ that is marketed globally.
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A) service
B) industrial product
C) consumer good
D) legal force
44) Cultural patterns sometimes affect the product produced by a company because they can
A) require adjustment of the physical and total product.
B) create inflationary measures.
C) create trade barriers such as high tariffs.
D) allow the marketing mix to be standardized.
45) Outside environmental forces can affect packaging which is often
A) not standardized due to cultural preferences for color.
B) changed due to legal restrictions.
C) not considered part of the total product, allowing variations.
D) a secondary consideration in product aesthetics.
46) Bacia Pizza Products Corp. markets into many different areas of the world and in order to
do well in local markets it has to print instructions on its products in the native language of each
market. Which environmental force is the company responding to?
A) sociocultural
B) economic
C) legal
D) physical
47) Different meanings that colors have in various cultures include
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A) blue is warm and feminine in the Netherlands.
B) pink represents baby boys in Belgium.
C) black is hopeful in the northeast United States.
D) red is calming in Japan.
48) Foreign language labels can be used to enhance the total product, as in
A) French labeling on perfume in the United States.
B) Mandarin labeling on clothing in Europe.
C) Japanese language labeling and instructions on Toyotas.
D) Portuguese language labeling on exports from Brazil.
49) One cultural difference that companies have had to adjust to when entering the global
market is the local habits of daily shopping. This habit requires companies to
A) market their products in smaller packages.
B) focus more on price than value.
C) focus more on value than price.
D) source more materials locally.
50) The evolution of the combination supermarket-discount store in Europe suggests that
A) consumers are demanding more variety in products.
B) people everywhere want the suburban lifestyle.
C) people still enjoy shopping.
D) daily shopping around the world will soon be over.
51) According to the Paris Convention, a company that registers its name in one country has
how much time to register it elsewhere?
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A) six months
B) two years
C) eight weeks
D) seven days
52) Product safety standards can act as
A) barriers to trade, in that they protect local manufacturers.
B) an impetus to increase standards voluntarily across the industry.
C) sociocultural forces.
D) a way to build export markets.
53) Product lines frequently influenced by product purity laws include
A) food and pharmaceuticals.
B) metals and jewelry.
C) industrial goods.
D) clothing and “soft” goods.
54) In what country must maximum retail price be a part of the label?
A) Venezuela
B) Brazil
C) the United States
D) China
55) In Saudi Arabia, labeling of what product line requires source stipulation?
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A) Any meat product must identify the kind of animal that is the source of the product.
B) All foodstuffs (not drinks, which are prohibited) containing alcohol must be clearly
labeled.
C) Any footwear product made from leather.
D) All cotton-fiber clothing.
56) In most countries outside of the United States, a brand name belongs to the person
A) registering it first.
B) using it first.
C) with the best legal resources.
D) who invented the product and holds the patent.
57) To exert control of brand names, companies are advised to
A) register them quickly in every possible country in which they may do business, now
and in the future.
B) begin using them everywhere to establish ownership rights.
C) secure first-rate local legal representation in all of their potential markets.
D) go after violations with legal threats immediately.
58) Internet domain names belong to
A) whomever registers them first.
B) the country in which the name is registered.
C) the company that uses the name first in each market.
D) the search engine used to apply for the name.
59) With Internet domain names, the United States follows
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A) a first to file approach.
B) a first to invent approach, as with brand names.
C) international law, which stipulates first to invent.
D) a reason to register approach, with names approved by a board.
60) How has disparity of income worldwide affected companies’ attempts at standardization?
A) It is an obstacle to standardization.
B) It makes it easier for a company to use standardization.
C) It has led to standardization of the physical product but not total product.
D) It does not affect standardization.
61) What is an example of a physical force that can affect standardization of a product?
A) safety standards
B) income disparity
C) language
D) climate
62) Gibson Baking Company sells its brownie mixes all over the world. The company
includes directions on the package for baking the product at high altitude levels since this can
affect baking times. Which type of environmental force caused this decision?
A) economic
B) legal
C) physical
D) sociocultural
63) Generally, consumer products require ________ adaptation than/as industrial products to
meet the demands of the world market.
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A) greater
B) less
C) the same amount of
D) much less, almost no
64) The continuum from insensitive to sensitive to foreign environment begins with
________ and ends with ________.
A) basic consumer staples; high style and faddish consumer products
B) industrial products; high style and faddish consumer products
C) high style and faddish consumer products; industrial products
D) basic consumer staples; industrial products
65) Quick Stop Fashion House produces “fast fashion” clothes that represent the current fad.
In the foreign environment, this type of product is considered
A) sensitive.
B) highly sensitive.
C) insensitive.
D) nonsense.
66) ________ are the most insensitive to the foreign environment.
A) High style products
B) Faddish and consumer products
C) Industrial products
D) Basic consumer staples
67) Computer memory chips are the same everywhere in the world. This means they are
________ to the foreign environment.
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A) insensitive
B) highly sensitive
C) nonsense
D) sensitive
68) Generally, ________ products require greater modification to meet local market
requirements worldwide.
A) insensitive
B) maintenance
C) consumer
D) industrial
69) Generally, as marketers go down the economic and social strata in each country, they will
tend to find
A) greater similarities among countries in social and cultural values.
B) greater dissimilarities among countries in social and cultural values.
C) no significant differences in social and cultural values.
D) greater government support and thus disposable income for each succeeding lower
stratum.
70) Compared to marketing consumer products, marketing services are
A) generally easier.
B) always more difficult.
C) the opposite of marketing industrial products.
D) about the same.
71) Why does McDonald’s use the color hunter green as the background for its golden arches
logo in Europe when it uses red in the United States?
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A) The color red symbolizes war.
B) Green is used by several competitors in the same market.
C) The green is viewed as eco-friendly.
D) Red is equated with the lower class.
72) Signature Appliance Group decided to remove the grill unit from the ovens it sells in
South America after customers complained they preferred to grill outside and would never use
this feature. Which environmental force caused the company to change its product?
A) legal
B) sociocultural
C) economic
D) physical
73) The need to change the color of packaging when selling a product in a new market is
generally a result of the influence of
A) distributive forces.
B) competitive forces.
C) political conflicts.
D) cultural differences.
74) Jet Spray Water Equipment Corp. decided to pull out of doing business in Europe when it
learned that some governments required more than 50 percent of the product be made in that
country. Which foreign environmental force is causing the company to make this decision?
A) sociocultural
B) legal
C) physical
D) economic
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75) Which products are especially influenced by laws that regulate product ingredients and
labeling?
A) shoes
B) office equipment
C) pharmaceuticals
D) clothing
76) In the United States, OSHA is an example of a(n) ________ force that can affect the
distribution of products.
A) legal
B) physical
C) economic
D) sociocultural
77) Of all the promotional mix elements, ________ is the one with the greatest similarities
worldwide.
A) public relations
B) personal selling
C) advertising
D) sales promotion
78) Donaldson Equipment Corp. began marketing in parts of Europe last year. It has found
that the best way to reach its customer base of housing contractors is by placing advertisements
on the sides of concrete trucks. Which element of the marketing mix does this represent?
A) product
B) promotion
C) price
D) portion
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79) Advertisements in the European market tend to have more sexual overtones than
advertisements in the United States. Which cultural dimension does this demonstrate?
A) gender roles
B) comparison
C) explicitness
D) sophistication
80) One study found that Europe and Australia’s advertising portrayed a less traditional
lifestyle than the United States. Which cultural dimension does this demonstrate?
A) sophistication
B) comparison
C) gender role
D) directness versus indirectness
81) Manufacturers increasingly are using global and regional advertising due to
A) cost, ease of transmission, brand image, and economies of scale.
B) the centralization of the marketing function.
C) the ease of supervising fewer promotion programs.
D) the demands from consumers.
82) The executives from the Japanese company did not like the advertisement created by the
U.S. agency. The executives said that telling the consumers about the benefits of the product was
too pushy and would be viewed as arrogant. Which cultural dimension are the executives
concerned with?
A) directness
B) comparison
C) gender roles
D) sophistication
83) One reason manufacturers are using global advertising is because identical products are
easier to make which allows the company to take advantage of
A) competitive advantage.
B) customization of regional products.
C) the industrial goods market.
D) economies of scale.
84) There are ________ basic promotional strategies available to international marketers,
which can be made by making different combinations of three product options.
A) 9
B) 27
C) an infinite number of
D) 12
85) What is a good promotional strategy to use when target markets vary little in regard to
product use and consumer attitudes?
A) same product–same message
B) product adaptation–same message
C) different product–same message
D) product adaptation–message adaptation