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Q:
Which of the following contradicts Theodore Levitt's arguments for the globalization of world markets?
A. Consumers in most developed countries do not sacrifice preferred attributes for lower prices.
B. Tastes and preferences are becoming more cosmopolitan due to cultural convergence.
C. Similar product and technical standards across countries help a firm sell the same product worldwide.
D. The emergence of the global youth segment is evidence of market segments that transcend national borders.
E. The structure of market segments is extremely similar in various countries.
Q:
Firms based in _____ countries tend to build a lot of extra performance attributes into their products.
A. highly developed
B. least developed
C. highly-indebted
D. developing countries
E. agriculture-based
Q:
Which of the following is true of the influence of cultural differences on product attributes?
A. Cultural differences have no implications for marketing strategies.
B. Tradition has the least impact on a firm's marketing strategies.
C. Tastes and preferences of consumers are becoming less cosmopolitan.
D. There is evidence of cultural convergence between the advanced industrial nations of Asia and North America.
E. The impact of tradition is important in foodstuffs and beverages.
Q:
In terms of the influence of cultural differences on product attributes, which of the following is evidence of the trends that Theodore Levitt described?
A. Differences in traditional eating habits
B. Cultural differences due to historical and idiosyncratic reasons
C. Market segments that remained confined to national borders
D. Tastes and preferences becoming cosmopolitan
E. Varying product and technical standards
Q:
In terms of the factors affecting product attributes, the impact of _____ is particularly important in foodstuffs and beverages.
A. language
B. nationality
C. religion
D. tradition
E. gender
Q:
Which of the following is true of a product?
A. A product can be viewed as the focal point of a marketing mix.
B. A product can be viewed as the center of market segmentation.
C. A product can be viewed as a bundle of attributes.
D. A product can be viewed as a forced need or want.
E. A product can be viewed as an object that transcends customer behavior.
Q:
Which of the following is true of market segmentation?
A. An important market segment in a foreign country always has a parallel in a firm's home country.
B. Markets can be segmented only on the basis of geography and demography.
C. The structure of market segments is quite similar across various countries.
D. Since market segments are similar across various countries, firms can pursue a global marketing strategy without varying the marketing mix.
E. For a segment to transcend national borders, consumers in that segment must have some compelling similarities along important dimensions.
Q:
Which of the following is a reason why firms need to adjust their marketing mix from segment to segment?
A. Different segments exhibit different patterns of purchasing behavior.
B. Each market segment is completely isolated from other market segments.
C. The technology required for standardized production is not yet available.
D. Changing the marketing mix prevents the phenomena of product cannibalization.
E. Consumers of one market segment are completely isolated from those of other segments.
Q:
Which of the following is a goal of market segmentation?
A. To optimize the fit between the purchasing behavior of consumers in a given segment and the marketing mix
B. To increase participation in shared global conversations by drawing upon shared symbols that include global brands
C. To reduce cultural and economic differences which act as a barrier to the emergence of global trends
D. To standardize products, manufacturing, and the institutes of trade and commerce
E. To increase the costs of value creation and add value by better serving customer needs
Q:
Which of the following is a sociocultural factor that is used to segment markets?
A. Personality
B. Race
C. Values
D. Income
E. Education level
Q:
Which of the following is a definition of market segmentation?
A. It refers to identifying distinct groups of customers whose purchasing behavior differs from others.
B. It refers to developing existing market segments and increasing market share within those segments.
C. It refers to identifying the need for new products in existing markets and developing products for those markets.
D. It refers to identifying new markets that can buy existing products.
E. It refers to identifying the needs of a new market and developing new products for that market.
Q:
_____ refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways.
A. Market penetration
B. Market development
C. Market segmentation
D. Product development
E. Diversification
Q:
Which of the following factors constrain a firm's ability to sell a standardized product to a global market using a standardized marketing strategy?
A. Modern transportation
B. Modern communications technologies
C. Rise of the global media phenomenon
D. Development of a global culture
E. Differences in product and technical standards
Q:
Which of the following is true of Theodore Levitt's arguments concerning globalization of world markets?
A. Levitt's argument holds true for basic industrial products, such as steel, bulk chemicals, and semiconductor chips but not for consumer goods markets.
B. Levitt understates his case concerning global markets and the fall of multinational corporations.
C. Globalization, in the sense used by Levitt, is the rule rather than the exception in consumer goods markets.
D. Levitt's arguments have no implications for the marketing strategies pursued by an international business.
E. There is no evidence to suggest the convergence of preferences among consumers across advanced countries.
Q:
Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?
A. Modern transportation is facilitating a convergence of tastes and preferences among consumers in advanced countries of the world.
B. Academics feel that Levitt understates his case concerning global markets and the fall of multinational corporations.
C. Globalization, in the sense used by Levitt, is the rule rather in consumer goods markets and industrial markets.
D. Levitt's arguments hold true with respect to consumer goods markets but not for basic industrial products.
E. As observed by Levitt, in global markets, firms do not tailor their products to suit different countries.
Q:
Which of the following is true of Theodore Levitt's arguments concerning the globalization of world markets?
A. The rise of global media phenomenon seems to support Levitt's argument.
B. Academics feel that Levitt understates his case concerning global markets and the fall of multinational corporations.
C. Globalization, in the sense used by Levitt, is the rule in consumer goods markets and industrial markets.
D. Levitt's arguments hold true with respect to consumer goods markets but not for basic industrial products.
E. As observed by Levitt, in real-world global markets, firms do not tailor their products to suit different countries.
Q:
Which of the following is a statement made by Theodore Levitt about the globalization of world markets?
A. Capitalism is the force that drives the world toward a converging commonality.
B. Multinational corporations consider the world to consist of distinct and unique entities.
C. Accustomed differences in national or regional preferences are becoming more significant.
D. Multinational corporations are in danger of losing out to small businesses.
E. Global markets for standardized consumer products have emerged on a large scale of magnitude.
Q:
Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets?
A. Multinational corporations consider the world to consist of distinct and unique entities.
B. Multinational corporations operate at low relative costs.
C. Multinational corporations operate from a single country.
D. Multinational corporations do not adjust their products and practices to suit each country.
E. Multinational corporations are in danger of losing out to small businesses.
Q:
Which of the following is true according to Theodore Levitt's article in the Harvard Business Review about the globalization of world markets?
A. Accustomed differences in national or regional preferences are significant in world markets.
B. The global corporation operates consistently at high relative cost.
C. Technology has led to the emergence of global markets for standardized consumer products.
D. The global corporation sells different things in different ways.
E. Ancient differences in national tastes or modes of doing business are reinforced.
Q:
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?
A. Gary Hamel
B. Theodore Levitt
C. Christopher Bartlett
D. Peter Drucker
E. C.K. Prahalad
Q:
Which of the following is an element of a firm's marketing mix?
A. Product attributes
B. Employee management
C. Customer service
D. Population demographics
E. Domestic competition
Q:
The _____ refer(s) to choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets.
A. market imperfections
B. marketing mix
C. marketing intermediaries
D. marketing objectives
E. marketing plan
Q:
Which of the following is true of the marketing and research and development (R&D) departments in an international firm?
A. Marketing and R&D should always work independently.
B. R&D identifies gaps in a market so that marketing can work to fill those gaps.
C. R&D defines the market's needs for the marketing personnel.
D. Marketing fails to guide R&D whether to produce globally standardized or locally customized products.
E. A major contributor to the success of new-product introductions is a close relationship between marketing and R&D.
Q:
Which of the following functions of an international business is required to create new products?
A. Supply chain
B. Logistics
C. Operations
D. Research and development
E. Customer service
Q:
Firms can reduce the failure of new-product development by insisting that research and development, marketing, and production functions work independently.
Q:
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.
Q:
A technological innovation can make established products obsolete overnight.
Q:
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.
Q:
In terms of pricing decisions, full responsibility for pricing decisions should be delegated to the managers of various national subsidiaries, thereby reaping the benefits of decentralization.
Q:
Predatory pricing and experience curve pricing do not violate antidumping regulations.
Q:
Predatory pricing exists whenever consumers in different countries are charged different prices for the same product, or for slightly different variations of the product.
Q:
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.
Q:
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.
Q:
A firm's ability to use a pull marketing strategy is limited in some countries by media availability.
Q:
The shorter the distribution channel, the more intermediaries there are that must be persuaded to carry the product for it to reach the consumer.
Q:
Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a push strategy.
Q:
A pull strategy refers to a marketing strategy that emphasizes personal selling rather than mass media advertising in the promotional mix.
Q:
Many international businesses try to counter negative source effects by deemphasizing their foreign origins.
Q:
In international marketing, a message that means one thing in one country may mean something quite different in another due to cultural differences.
Q:
The effectiveness of a firm's international communication can be jeopardized by cultural barriers only.
Q:
One benefit of a longer distribution channel is that it cuts selling costs when the degree of fragmentation of the retail sector is less.
Q:
There is generally a critical link between 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.
Q:
The expertise, competencies, and skills of established retailers in a nation, and their ability to sell and support the products of international business is referred to as channel exclusivity.
Q:
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.
Q:
In terms of the differences between countries with respect to distribution systems, there is a tendency for lesser retail concentration in developed countries.
Q:
A concentrated retail system is one in which there are many retailers, none of which has a major share of the market.
Q:
Differences in government-mandated product standards can rule out mass production and marketing of a standardized product.
Q:
Firms based in less developed nations tend to build a lot of extra performance attributes into their products.
Q:
Consumers in the most developed countries are often willing to sacrifice their preferred product attributes for lower priced products.
Q:
The fact that tastes and preferences of consumers are not universal disproves Theodore Levitt's views on the globalization of markets.
Q:
In terms of factors influencing product attributes, the impact of tradition is particularly important in foodstuffs and beverages.
Q:
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.
Q:
When managers in an international business consider market segmentation in foreign countries, they need to be cognizant of the difference between countries in the structure of market segments.
Q:
Market segmentation refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways.
Q:
Markets can be segmented by geography, demography, sociocultural factors, and psychological factors.
Q:
According to Theodore Levitt, technology has resulted in the emergence of global markets for standardized consumer products on a previously unimagined scale of magnitude.
Q:
Firms vary their marketing mix from country to country depending on differences in national culture
Q:
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.
Q:
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.
Q:
Describe the influence of integrating research and development, marketing, and production on new-product development.
Q:
Briefly describe predatory pricing and multipoint pricing strategy.
Q:
With regard to communication strategies, what is the difference between a push and a pull strategy?
Q:
Briefly describe market segmentation.
Q:
The members of a cross-functional team should have:
A. low standing within their respective functions.
B. the ability to put functional and national advocacy first.
C. the ability to contribute functional expertise.
D. the ability to solely focus on the ongoing work of their respective functions.
E. the ability to work on several projects simultaneously.
Q:
The project manager of a cross-functional team should:
A. have the ability to persuade other team members to implement his idea.
B. not be hesitant to claim responsibility for the success of a project.
C. be able to act as an advocate of the team to senior management.
D. help each function determine individual goals rather than focus on the project as a whole.
E. get involved in conflict resolution only when absolutely necessary.
Q:
Which of the following is an important attribute for a product development team to function effectively and meet all of its development milestones?
A. It should be led by a "heavyweight" project manager who has high status within the organization.
B. The team members should always be physically in diverse locations in order to cover multiple bases.
C. It should have preset processes for communication and conflict resolution that are developed by top management.
D. It should have at least three members from each key function included.
E. Its team members should be a part of more than two cross-functional teams.
Q:
Which of the following is a reason for the high failure rate of research and development endeavors?
A. Developing a technology for which demand exceeds the supply
B. Excessive commercialization of new technologies
C. Delivering new products to the market ahead of major competitors
D. Inability to manufacture a new product cost effectively
E. High pioneering costs
Q:
Which of the following is a consequence of tight cross-functional integration between research and development (R&D), production, and marketing?
A. Maximizing the time to market a product
B. Letting R&D dictate terms to marketing and production
C. Keeping development costs in check
D. Ensuring that product development projects are driven by organizational needs
E. Increasing selling costs and maximizing profits
Q:
Which of the following factors creates a potential market for new products?
A. Rising inflation
B. Affluent consumers
C. Lack of competition among firms
D. Firms suffering from first-mover disadvantages
E. Centralized research and development activity
Q:
Other things being equal, the rate of new-product development seems to be greater in countries where:
A. more money is spent on marketing instead of applied research.
B. consumers demand for cheaper products since they are not affluent.
C. competition between firms is intense.
D. pioneering costs outweigh the disadvantages of being a second mover.
E. a large change in prices of a product only produces a small change in demand.
Q:
Which of the following has resulted in a dramatic shortening of product life cycles?
A. Acceleration of the pace of technological change
B. Intensity of domestic competition
C. Affluence of customers
D. Increase in the number of educated consumers
E. Removal of trade barriers
Q:
The _____ industry is often thought of as one in which global standardization of the marketing mix is the norm.
A. electronics
B. retail
C. pharmaceutical
D. financial services
E. heavy machinery
Q:
Which of the following is a consequence of the vague terminology used in most antidumping actions?
A. A firm believes that in several years, it will be making substantial profits and have a cost advantage over its less-aggressive competitors.
B. Firms further down the experience curve will have a cost advantage vis--vis those further up the curve.
C. Pricing decisions around the world will need to be centrally monitored.
D. A firms ability to engage in price discrimination may also be challenged.
E. Antidumping regulations cannot be used to limit the prices a firm can charge in a given country.
Q:
In the context of strategic pricing, _____ occurs whenever a firm sells a product for a price that is less than the cost of producing it.
A. inflation
B. dumping
C. arbitrage
D. speculation
E. outsourcing
Q:
Which of the following pricing strategies can run afoul of antidumping regulations?
A. Experience curve pricing
B. Premium pricing
C. Market-based pricing
D. Dynamic pricing
E. Price skimming
Q:
Which of the following is a true of a firm pursuing an experience curve pricing strategy?
A. Moving down the experience curve, the firm will be making substantial profits and have a cost advantage over its less-aggressive competitors.
B. Vigorous price wars need to be launched in a market in an attempt to gain market dominance.
C. Aggressive pricing in one market may elicit a response from rivals in another market.
D. By using profits from one market, competitors can be driven out from another market by considerably lowering prices in that market.
E. When competitors are numerous, consumers bargaining power is weaker and price is less important as a competitive weapon.
Q:
Firms pursuing a(n) _____ strategy on an international scale will price low worldwide in attempting to build global sales volume as rapidly as possible, even if this means taking large losses initially.
A. experience curve pricing
B. multipoint pricing
C. economy pricing
D. predatory pricing
E. premium pricing
Q:
Many firms pursuing a(n) _____ strategy on an international scale will price low worldwide to build global sales volume as rapidly as possible.
A. price discrimination
B. experience curve pricing
C. price skimming
D. penetration pricing
E. economy pricing
Q:
Which of the following is true of multipoint pricing?
A. It involves aggressive pricing in one market to elicit a competitive response from a rival in another market.
B. It involves a firm pricing its products at a loss in order to drive out competitors from the market.
C. It involves buying products at a cheaper rate in one country and selling those at a higher price in another country.
D. It involves allowing markets to determine the pricing of a product.
E. It involves pricing two similar products at low and high prices in order to boost sales of the lower priced products.
Q:
_____ refers to the fact that a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market.
A. Dumping
B. Predatory pricing
C. Leader pricing
D. Multipoint pricing
E. Price skimming