Quick Study Questions
Quick Study 1
1. Q: Deciding whether to keep a marketing strategy the same or modify it a broad is also known
as what?
A: This dilemma is referred to as the standardization versus adaptation decision. U.S. researcher
Theodore Levitt argued that because the world is becoming standardized and homogeneous,
companies should market the same products in the same way in all countries. Technology, he
Globalization is transforming the way some products are marketed internationally. Some
companies implement a global strategy that uses similar promotional messages and themes to
standardization is more likely when nations share the same level of economic development.
2. Q: What factors influence a country’s international product strategy?
A: Many factors influence a company’s product policies. First, laws and regulations of the
target market can force product alteration. Cultural differences between the home and host
markets can force adaptations in products to suit local buyers’ product preferences. National
3. Q: What product characteristic is more likely than others to offend people in another country?
A: Whether they are standardized or adapted locally, products in international markets need
brand names can be highly offensive if they are not researched and selected.
Quick Study 2
1. Q: A strategy that pressures channel members to carry and promoted a product is called what?
A: A push strategy is a promotional strategy designed to pressure channel members to carry a
product and promote it to final users.
2. Q: Firms that standardize international advertising often control campaigns from where?
A: Firms that standardize their advertising tend to control campaigns from the home office.
3. Q: The process of sending promotional messages about products to target markets is called
what?
A: The process of sending promotional messages about products to target markets is called
marketing communication. Communicating the benefits of a product can be more difficult in
international business than domestic business for at least several reasons. Marketing
Quick Study 3
1. Q: What type of channel grants the right to sell a product to many resellers?
A: An intensive channel is one in which a producer grants the right to sell its product to many
resellers.
2. Q: In terms of channel length, direct marketing is known as what?
A: Direct marketing is referred to as a zero-length channel because the producers sell directly to
final buyers
3. Q: A product with a low value density tends to have a distribution system that is more what?
A: The value of a product relative to its weight and volume is called its value density. Value
product’s value density, the more localized the distribution system.
Quick Study 4
1. Q: What makes worldwide pricing difficult to achieve?
A: A pricing policy in which one selling price is established for all international markets is
called worldwide price. This is very difficult to achieve for the following reasons: First, keeping
products costs the same is not possible for a company that has production bases within each
market that it serves. As a result, selling prices will reflect the different costs of production.
2. Q: To apply dual pricing successfully, how must a firm treat its domestic and international
buyers?
A: Worldwide pricing sets one selling price for all international markets. Dual pricing is a
pricing policy in which a product has a different selling price (typically higher) in export
3. Q: Parent firms and subsidiaries often transfer products among themselves as a price called
what?
A: A transfer price is the price charged for products transferred between a company and its
subsidiaries.
Ethical Challenge
You are a lawyer working with the International Court of Justice in The Hague in the Netherlands.
Your task is to review a recent decision by a U.S. judge regarding extraterritoriality. The case: French
survivors of the Holocaust sued Yahoo USA because French citizens were purchasing Nazi
memorabilia on Yahoo’s U.S. website. The lawsuit also charged Yahoo USA with hosting the websites
of anti-Semitic groups. Although both these actions are illegal according to French law, they are
permitted in the United States because of U.S. legislation protecting free speech. Because Yahoo’s
French website did not violate French law, the U.S. federal judge hearing the case threw it out. The
judge ruled that French law does not have the right to dictate the behavior of U.S. firms operating
inside the United States. Today, the Internet can make it difficult to determine where jurisdictions
begin and end.
14-5 If you had been the U.S. judge in this case, would you have ruled similarly? Explain.
A: Students responses will vary. However, extraterritoriality is the right or privilege of a state to
exercise authority in certain circumstances beyond the limits of its territory. In other words, the
14-6 What factors most influenced your decision?
A. Students responses will vary, and depend on the position they take with reference to
questions 14-5.
14-7 Do you know of any Internet controls that companies or governments can use to stop such
cases from occurring in the future?
A: There are a number of ways to view this dilemma. From the U.S. perspective, French law
does not have jurisdiction over the operations of U.S. firms within their own country. Although
with the Internet it does become a challenge at times to determine the exact area of operations
Teaming Up
Products often service different needs, appeal to different buyers, or are perceived differently in
different markets. Consider a good or service that is sold in your country and another using different
marketing strategies in each. One of the countries must be the countries home market.
14-8 In the home market, was the product’s initial introduction a new innovation or an extension of
an existing product?
14-9 From the product’s home market, which one of the five product and promotion methods was
used in the other market?
14-10 What factors likely explain why the company selected that particular method?
A: Students might need to do some further research into the company’s business activities
before answering this question fully.
Practicing International Management Case
Psychology of Global Marketing
14-13 Q: If you were Stephan Loerke, of the World Federation of Advertisers, how would you argue
for the EU to enact more strict advertising laws?
A: Students should recognize the highly political debate that will arise within the EU. Some
may feel that it is foolish to enact new laws if they cannot be enforced. Sweden cannot currently
14-14 Q: Do you personally agree with the case you made above?
A: Students responses will vary based on their own personal value system.
14-15 Q: Thinking of a specific product sold in industrialized nations, do you think it could create
more than it satisfies needs if it were marketed in a developing country?
A: Ads can indeed create wants. The cell phone is a good example. Before cell phones were
available, the landline telephone sufficed. In developing countries, there are fewer telephones