41. (p. 592) Which of the following is not an element that constitutes a firm's marketing mix?
A. Product attributes
B. Communication strategy
C. Reverse engineering
D. Distribution strategy
42. (p. 592) 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
43. (p. 592) 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
44. (p. 592) 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
45. (p. 593) 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
46. (p. 593) 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
48. (p. 595) 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
Chapter 13 - Global Marketing
49. (p. 596) Consumers in highly developed countries value _____ as compared to their counterparts in
less developed nations.
A. Price
B. Product reliability
C. Product attributes
D. Standardized products
51. (p. 597) 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
53. (p. 597) 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
55. (p. 598) By acquiring retailers in different countries, large global retailers such as Carrefour and Wal-
Mart have increased
A. Retail concentration
B. Retail fragmentation
C. Retail dispersion
D. Retail crowding
Chapter 13 - Global Marketing
56. (p. 598) 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
57. (p. 597) In a _____ retail system, a few retailers supply most of the market.
A. Fragmented
B. Dispersed
C. Focused
D. Concentrated
58. (p. 597) Which of the following is not a key difference between distribution systems in different
countries?
A. Channel speed
B. Channel length
C. Channel exclusivity
D. Channel quality
59. (p. 597-598) 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
60. (p. 598) 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
61. (p. 598) In terms of retail concentration, developed countries tend to have a higher degree of
concentration than developing countries for all of the following reasons except
A. Number of households with refrigerators and freezers
B. Tradition of established local neighborhoods in which people walk to stores
C. Increase in car ownership
D. Number of two-income households that accompany development
63. (p. 598) The number of intermediaries between the manufacturer and the consumer is referred to as
A. Channel reach
B. Channel concentration
C. Channel exclusivity
D. Channel length
Chapter 13 - Global Marketing
64. (p. 598) 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
65. (p. 599) The most important determinant of channel length is the degree to which a retail system is
A. Concentrated
B. Fragmented
C. Decentralized
D. Globalized
66. (p. 599) 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
67. (p. 599) What kind of retail systems do rural India and China have?
A. Fragmented
B. Direct
C. Indirect
D. Concentrated
69. (p. 599) A(n) _____ distribution channel is one that is difficult for outsiders to access.
A. Selective
B. Intensive
C. Exclusive
D. Multichannel
71. (p. 600) The expertise, competencies and skills of established retailers in a nation and their ability to
sell and support the products of international businesses is
A. Channel exclusivity
B. Channel knowledge
C. Channel quality
D. Channel skill
Chapter 13 - Global Marketing
72. (p. 601) Which of the following does not affect a firm's international communication?
A. Cultural barriers
B. Source effects
C. Channel exclusivity
D. Noise levels
74. (p. 602) 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
75. (p. 602) 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
77. (p. 604) Which of the following statements about barrier 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
78. (p. 604) When a firm emphasizes personal selling rather than mass media advertising in the
promotional mix, the firm is using a
A. Standardized strategy
B. Pull strategy
C. Push strategy
D. Localized strategy
80. (p. 604) A firm that depends more on mass media advertising to communicate the marketing message
to potential consumers is using a
A. Pull strategy
B. Push strategy
C. Standardized strategy
D. Localized strategy
81. (p. 604) Factors that determine the relative attractiveness of push and pull strategies include all of the
following except
A. Product type relative to consumer sophistication
B. Channel length
C. Noise levels
D. Media availability
82. (p. 604) When firms in the consumer goods industry are trying to sell to a large segment of the market
they favor a
A. Push strategy
B. Pull strategy
C. Standardized strategy
D. Localized strategy
83. (p. 604) A(n) _____ strategy is favored by firms that sell industrial products or other complex
products.
A. Localized
B. Indirect
C. Push
D. Pull
85. (p. 606) When distribution channels are short, firms should
A. Use a direct channel
B. Use a push strategy
C. Focus on consumer products or other standardized products
D. Focus on industrial products or other complex products
87. (p. 606) If a firm is facing long distribution channels, the firm should choose a _____ strategy.
A. Competitive advertising
B. Price discrimination
C. Predatory pricing
D. Pull
Chapter 13 - Global Marketing
88. (p. 606) 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
89. (p. 608) When a company charges whatever the market will bear, the company is using
A. Strategic pricing
B. Price discrimination
C. A push strategy
D. A pull strategy
91. (p. 608) If a _____ change in a price produces a _____ change in demand, then price is elastic.
A. Small; large
B. Small; small
C. Large; small
D. Large; large
92. (p. 608) A measure of the responsiveness of demand for a product to change in price is referred to as
A. Arbitrage demand
B. Predatory pricing
C. Price elasticity of demand
D. Experience curve pricing
93. (p. 608) _____ occurs when an individual or business capitalizes on a price differential for a firm's
product between two countries by buying the product in the country where the price is low and reselling it
in the country where prices are higher.
A. Arbitrage
B. Strategic pricing
C. Price discrimination
D. Market pricing
94. (p. 608) Which of the following statements about price discrimination is true?
A. It exists whenever consumers in a country are charged different prices for the same product
B. It involves charging whatever the market will bear
C. It is the use of price as a competitive weapon to drive weaker competitors out of a national market
D. It makes economic sense to charge the same prices across countries
95. (p. 608) What is the most important factor in determining the elasticity of demand for a product in a
given country?
A. Personal selling
B. Logistics
C. Operating revenue
D. Income level
Chapter 13 - Global Marketing
98. (p. 609) For _____ to work, the firm must normally have a profitable position in another national
market, which it can use to subsidize aggressive pricing in the market it is trying to monopolize.
A. Multipoint pricing
B. Value-based pricing
C. Experience curve pricing
D. Predatory pricing
99. (p. 609) This refers to impact a firm's pricing strategy in one market may have on its rivals' pricing
strategy in another market.
A. Multipoint pricing
B. Experience curve pricing
C. Predatory pricing
D. Competitive pricing
100. (p. 615) Tight cross-functional integration between R&D, production and marketing can help a
company to ensure that all of the following take place except
A. Time to market is minimized
B. Development costs are kept in check
C. New products are designed for ease of manufacture
D. Product development projects are driven by internal needs