IM TEST BANK 2020

E product standardization.7 Unilever, the Anglo-Dutch consumer products company, at one time had 30 different package designs and 48 different formulations for its Rexona deodorant brand

2) A fundamental difference between regular marketing and global marketing is the:

A) lack of marketing mix

B) scope of activities

C) lack of strategic planning

D) focus on resources

E) lack of communication

3) The former chairman of Nestlé recently told an interviewer: "We are food and beverages

We are not running bicycle shops Even in food, we are not in all fields There are certain areas we do not touch Also, we have no soft drinks because I have said we either buy Coca-Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically?

A) customer value

B) competitive advantage

C) focus

D) myopia

E) policy of dealing only with Swiss businesses

4) McDonald's restaurants in France do not look like McDonald's elsewhere This is an example of:

A) think locally and act globally

B) think globally and act locally

C) diversification

D) standardization

E) adaptation

5) A company that succeeds in global marketing:

A) pursues a "one size fits all" strategy by creating identical products for homogeneous markets

B) customizes special products for each world country or region

C) creates both standardized and localized products

D) nurtures an ethnocentric management orientation

E) uses localized products only

6) An important managerial task in global marketing is learning to recognize the extent towhich it is possible to extend marketing plans as well as the extent to which adaptation isdesired The way a company addresses this task is a reflection of the company's:

A) market penetration

B) market diversification

C) global marketing strategy

D) product development

E) product standardization.

7) Unilever, the Anglo-Dutch consumer products company, at one time had 30 different package designs and 48 different formulations for its Rexona deodorant brand This is an example of:

10) For consumer products, qualitative research is especially well suited to:

A) get close to the consumer

B) describe the cultural context of consumer behavior

C) identify core brand equity

D) identify what people really feel

E) all of the above

11) Marketers must be aware of the impact of SRC and other cultural assumptions since:A) it can have several positive effects on market planning

B) it enhances management's willingness to pursue market research

C) it can help ensure that the research effort is designed with minimal home-country bias.D) it can help ensure that the research effort is designed with minimal second-country bias.E) All of the above are correct

12) In Singapore, Coca-Cola wanted to develop an advertisement program They selected a group of teenagers and a trained moderator facilitated discussion asking questions related to brand's image, advertisement, social trends, TV watching habits, and snack usage This type

14) Psychographic segmentation involves grouping people in terms of their:

A) combined household income

B) age and income

C) attitudes, values, and lifestyle

D) psychological well being

16) Diageo PLC, V&S Vin & Spirit AB, and Seagram and other marketers know that

Russians consume a great deal of vodka This type of market segmentation can be classified as:

A) current size of the segment

B) anticipated growth potential

C) competition

D) compatibility with company's overall objectives

E) all of the above

Answer: E

19) An example of a trap that marketers can set for themselves while targeting a foreign market is to:

A) overstate the size and short-term attractiveness of individual country markets

B) realize that short-term profit and revenue growth objectives may be hard to achieve.C) restrain from being persistent to enter a country market

D) ignore shareholders' or competitors' pressure not to "miss out" on a strategic opportunity.E) enter a market based on time-consuming rigorous market analysis

20) Managers must decide how well a company's product fits the country market by asking

all of the following questions except:

A) Will adaptation be required?

B) Will import restriction drive up the product price?

C) Is it advisable to source locally?

D) Will strong home currency have an adverse impact on product price?

E) Will it be possible to neglect home-country regulations?

21) Basic criteria that marketers should keep in mind while assessing opportunities in global

markets include all of the following except:

A) current size of the market segment

B) anticipated growth potential of the market

C) compatibility with company's overall objectives

D) competition in the market

E) securing first mover advantage

22) Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market The first-mover advantages include all of the following

except:

A) best chance of becoming world leader

B) advantage in adapting to the local culture

C) lead in advertising and promotion exposure

D) gain business experience

E) substantial investments in marketing

23) Some of Body Shop's recent advertising has emphasized the difference between the company's principles and those of "mainstream" cosmetics companies on such issues as animal testing As described here, Body Shop's ads illustrate positioning by:

B) rational

C) both emotional and rational

D) neither emotional nor rational

E) high-tech

25) Generally speaking, which of the following statements is true concerning product attributes?

A) Tangible product attributes are more important than intangible ones

B) Intangible product attributes are more important than tangible ones

C) Both tangible and intangible product attributes are important

D) Neither tangible nor intangible product attributes are important

E) A product has more attributes than tangible and intangible ones

26) Which of the following statements is not an example of local products or brands?

A) Coca-Cola developed several branded drink products for Japan

B) Coca-Cola markets Kinely brand bottled water in India

C) BMW uses "the ultimate driving machine" slogan in India

D) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan

27) Prior to 2004, Nokia launched different cell phone products in different countries at different times Nokia also used different advertising images and messages in different countries Which approach to the world marketplace was Nokia using?

A) product-communications extension

B) product extension-communications adaptation

C) product adaptation-communications extension

D) product-communication adaptation

E) product invention

28) When Sony introduced the first consumer VCRs in the 1970s, the retail price exceeded

$1,000 Within a few years, the price dropped well below $500 This is an example of:A) skimming strategy

B) penetration strategy

C) cost-based strategy

D) price ceiling strategy

E) transfer pricing strategy

29) A market pricing strategy calls for setting price levels that are low enough to quickly build market share

A) culturally close and easy to enter.

B) culturally distant and easy to enter

C) culturally close and difficult to enter

D) culturally distant and difficult to enter

E) culturally difficult and easy to enter

33) When British entrepreneur Richard Branson established the first Virgin Megastore in France, he invested a great deal of money to develop a retail space on the famous Champs-Elysées Judging by the approach Branson used, he and his management team must have viewed France as:

A) culturally close and easy to enter

B) culturally distant and easy to enter

C) culturally close and difficult to enter

D) culturally distant and difficult to enter

E) culturally difficult and easy to enter

34) As companies recognize and embrace new concepts such as the globalization of "the coffee culture," the potential for effective global advertising:

marketing industrial products.

A) social

B) monetary

C) cultural

D) psychological

37) is the phrase global marketers use to describe ads with common design

elements into which localized elements are inserted for individual country markets

E) franchise or company owned status

39) In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children Such advertising utilizes:

B) rational appeal

C) selling proposition

D) advertising appeal.

E) creative appeal

43) Which promotional mix element is most closely associated with activities designed to foster goodwill and understanding with various constituents both inside and outside the company?

44) Generally speaking, a company has little control over media To compensate for this lack

of control, many companies utilize:

46) It was found that Malaysians hesitate to use coupons due to the:

A) lower power distance

B) higher uncertainty avoidance

C) fear of public embarrassment

D) impact of religion

E) general dislike for coupons

47) In the six-step presentation plan, the first and last steps are respectively:

A) presentation; demonstration

B) approach; close

C) presentation; negotiation

D) approach; presentation

E) approach; servicing the sale

48) A company in which an ethnocentric orientation prevails is likely to utilize primarily

in its sales force

A) host-country nationals

B) third-country nationals

C) expatriates

D) agents of any nationality

E) agents of host country

49) Which of the following is a disadvantage of using an expatriate sales force?

A) inferior product and company knowledge

B) capability to institute the acceptable practices

C) follow policies of the home office

D) enhanced promotion prospects

E) maintaining is very expensive

50) is a form of paid television programming in which a particular product is demonstrated, explained, and offered for sale to viewers who call a toll-free number shown

52) Which pricing strategy has the advantage of being simple to calculate but has the

disadvantage of ignoring demand and competitive conditions?

policy that calls for setting different prices in different country markets.

E) cell phones in commerce.

63) -commerce is one of the significant marketing opportunities made possible by the digital revolution

A) threat of new entrants

B) threat of substitute products or services

C) bargaining power of suppliers

D) bargaining power of competitors

E) the competitive rivalry among current members

65) Jaguar produced so few cars that it couldn't get volume discounts from components suppliers Jaguar managers sometimes could not even determine the "fair" price for a particular part In terms of Porter's competitive forces framework, Jaguar's strategic

disadvantage stemmed from low:

A) buyer power

B) supplier power

C) threat of new entrants

D) threat of substitute products

E) access to distribution channels

66) In the tech world, about 90% of the world's nearly one billion PCs use Microsoft's operating systems and 80% use Intel's microprocessors This represents which aspect of the Porter's five forces model?

A) bargaining power of suppliers

B) bargaining power of buyers

C) threat of substitute products

D) rivalry among competitors

E) threat of new entrants

67) Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery Recording artists who want their recordings available at Walmart have the

option of altering lyrics and song titles or deleting offending tracks Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive Considering the elements of the five forces model this is an example of:

A) buyer power

B) supplier power

C) threat of new entrants

D) threat of substitute products

E) access to distribution channels

68) Porter's four generic strategies for achieving competitive advantage are:

A) price determination, cost leadership, product differentiation, distribution savings

B) cost leadership, product differentiation, cost challenger, product challenger

C) price leadership, product differentiation, price challenger, cost differentiation

D) cost leadership, product differentiation, cost focus, focused differentiation

E) cost leadership, product differentiation, consumer differentiation, focused differentiation.69) Gillette markets its flagship MACH3 razor in more than 100 countries around the world The MACH3 is available virtually everywhere that consumers shop for personal-care

products; because of its advanced 3-blade design, the MACH3 typically costs more than otherwet-shaving systems Which generic strategy is evident in Gillette's global marketing effort ofMACH3?

A Classical theory of international trade

B The factor proportion theory of international trade

C The product life cycle of international trade

D All of the above

E None of the above

71) Motivation for engaging in exporting may come from which of the following

combinations of factors?

A Internal and proactive only

B Internal and reactive only

C Internal or external and proactive or reactive

D External and proactive only

E External and reactive only

2) From the point of view of the marketer, sales promotion provides accountability.

6) Standardized print campaigns can be used for industrial products or for

technology-oriented consumer products such as the Apple iPhone and the iPad

12) Categories such as "successful idealists" and "affluent materialists" can be used to

describe age segmentation

14) One of the advantages of targeting a market segment globally is that although the

segment in a single-country market might be small, even a narrow segment can be served profitably if the segment exists in several countries

Answer: FALSE

19) Benetton uses the slogan "United Colors of Benetton" to position itself as a brand

concerned with the unity of humankind This type of strategy is referred to as GCCP (global consumer culture positioning)

Answer: TRUE

25) A company using geocentric pricing neither fixes a single price worldwide, nor allows subsidiaries or local distributors to make independent pricing decisions.

Answer: TRUE

26) Laura Ashley, The Body Shop, Victoria's Secret, Starbucks, the Disney Store and Gap are

examples of global retail operators that can be classified as specialty retailers since they offer

less variety than department stores

Answer: TRUE

27) Companies that are centralized typically allow managers at the local subsidiary to make

ad agency selection decisions

Answer: FALSE

28 Although international trade grew rapidly in total amount during the last half of the 20th

century, its relative importance decreased in most economies

(a) True

(b) False

31 Experienced international marketers virtually never fail to determine if there is an

adequate market for their products or services prior to market entry

SHORT ANSWER

Bases of international marketing

ANSWERS TO QUESTIONS FOR DISCUSSION

1 What are the benefits to consumers arising from international trade? Are they the same for industrial goods as for consumer goods? What costs to consumers arise from international trade?

The major potential benefits are lower prices and an increased variety and supply of goods from which to choose For the most part, these benefits are the same for industrial goods as they are for consumer goods The import of consumer goods has a direct effect; the import of industrial goods results in lower domestic production costs and/or better products and/or the acquisition of new technology thereby benefiting the consumer indirectly Consumers in the country of export may also benefit to the extent that domestic firms that export can generate economies of scale in production that can then be passed on to domestic buyers in the form of lower prices.

If exported products are in short supply relative to demand, then market prices in the producing country may be driven higher.

2 Discuss how exports and imports help to increase productivity and efficiency.

Briefly, exports and imports lead to increased international specialisation, with the most efficient industries in each country tending to increase their output, thereby gaining economies of scale.

The transfer of technology, including the importation of new equipment and systems, also leads to improved productivity.

3 The productivities of factor inputs with respect to different products are determined by a combination

of natural and acquired advantages Is the productivity of the Japanese due primarily to natural or acquired advantages? How about the French or the Chinese? Explain.

Japan is not well endowed with the natural mineral resources or large amounts of arable land relative to the size

of the population Until recently, it was also short of capital The high level of productivity of the Japanese, therefore, must be due to the acquired advantages of knowledge, skills and techniques France is better endowed with the factors of production; so, some advantages have been natural However, there has also been substantial acquisition in the form of learning how to use the factors available and in developing products that are less natural resource-dependent China has extensive natural resources, but is less rich in most of these, on a per- capita basis, than France In its current economic development efforts, it is relying heavily on improving the skills and motivation of its people and on the acquisition of technology In the end, all advantages due to managerial know-how and overall human resources are, in fact, acquired advantages.

4 (a) Briefly explain the different types of economic advantage for two countries, A

and B, each able to produce two products, X and Y, and discuss the conditions for trade to be advantageous (assuming no transaction costs).

(b) How is it possible for an individual business firm to have a comparative advantage?

(a) If A can produce X more cheaply than B, and B can produce Y more cheaply than A, we have a case of absolute advantage.

If A can produce both X and Y more cheaply than B, but A has a proportionally greater cost advantage over

B in producing X, it is a case of comparative advantage.