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1. A country with high car ownership, a large number of households with refrigerators and a large number of two income families tend to havea. Retail concentration (m/s 598)b. Retail divisionc. Retail dispersiond. Retail fragmentation

2. A measure of the responsiveness of demand for a product to change in price is referred to asa. Arbitrage demandb. Predatory pricingc. Price elasticity of demand (m/s 608)d. Experience curve pricing

3. A push strategy is appropriate whena. The firm is selling consumer goodsb. Distribution channels are longc. There are many choices of electronic mediad. The firm is selling complex new products (m/s 606)

4. A _____ distribution channel is one that is difficult for outsiders to access.a. Intensiveb. Multichannelc. Exclusive (m/s 599)d. Selective

5. A firm that depends more on mass media advertising to communicate the marketing message to potential consumers is using aa. Pull strategy (m/s 608)b. Push strategyc. Standardized strategyd. Localized strategy

6. A_____ strategy is favored by firms that sell industrial products or other complex products.a. Push (m/s 606)b. Localizedc. Pulld. Indirect

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7. According to Levitt, which of the following statements is true?a. There are accustomed differences in national preferencesb. The global corporation operates with resolute consistency at high relative costsc. Technology drives the world toward a converging commonalty (m/s 592)d. The multinational corporation operates in a number of countries at low relative costs

8. By acquiring retailers in different countries, large global retailers such as Carrefour and Wal-Mart have increaseda. Retail concentration (m/s 598)b. Retail fragmentationc. Retail dispersiond. Retail crowding

9. Consumers in highly developed countries value _____ as compared to their counterparts in less developed nations.a. Priceb. Product reliabilityc. Standardized productsd. Product attributes (m/s 596)

10. Contrary to Levitt's suggestions, consumers in the most developed countries are oftena. Not willing to sacrifice their preferred attributes for lower prices (m/s 597)b. Willing to accept globally standardized products that have been developed with the

lowest common denominator in mindc. Willing to sacrifice their preferred attributes for lower pricesd. Not willing to pay more for products that have additional features customized to their

tastes

Developed countries are more likely to have aa. Fragmented retail systemb. Crowded retail systemc. Concentrated retail systemd. Dispersed retail system

11. Factors that determine the relative attractiveness of push and pull strategies include all of the following excepta. Media availabilityb. Product type relative to consumer sophisticationc. Channel lengthd. Noise levels (m/s 604)

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12. 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. Experience curve pricingb. Value-based pricingc. Multipoint pricingd. Predatory pricing (m/s 609)

13. If a _____ change in a price produces a _____ change in demand, then price is elastic.a. Small; smallb. Small; large (m/s 608)c. Large; larged. Large; small

14. If market segments transcend national borders,a. The company can view the global market as a single entity and pursue a global

strategy (m/s 595)b. A localization strategy would be appropriatec. Consumers will have differing purchasing behavior in different nationsd. The company should develop unique products for each national market

15. If a producer sells through an import agent, a wholesaler and a retailer, thena. There is no channelb. The internet probably plays a big role in the economyc. The retail system must be concentratedd. A long channel exists (m/s 598)

16. In a concentrated retail system,a. There are many retailers, no one of which has a major share of the marketb. There are many retailers who have a major share of the marketc. A few retailers supply most of the market (m/s 597)d. A few retailers supply a small segment of the market

17. If a firm is facing long distribution channels, the firm should choose a _____ strategy.a. Price discriminationb. Pull (m/s 606)c. Predatory pricingd. Competitive advertising

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18. In a country where competition is limited,a. There will be low elasticity of demand (m/s 608)b. Prices will be highc. Prices will be lowd. Consumers' bargaining power rises

19. If media availability is limited, a firm shoulda. Consider a longer channelb. Consider a shorter channelc. Use a pull strategyd. Use a push strategy (m/s 606)

20. In order for price discrimination to be successfula. Demand must be very elasticb. A large change in demand must be triggered by a small change in pricec. There must be a strong case for arbitraged. Markets must be kept separate (m/s 608)

21. In terms of retail concentration, developed countries tend to have a higher degree of concentration than developing countries for all of the following reasons excepta. Increase in car ownershipb. Tradition of established local neighborhoods in which people walk to stores (m/s

598)c. Number of two-income households that accompany developmentd. Number of households with refrigerators and freezers

In a _____ retail system, a few retailers supply most of the market. Choose one answer. a. Concentratedb. Dispersedc. Fragmented d. Focused

22. Research has long maintained that a major factor of success for new products is the closeness of the relationship betweena. Finance and R&Db. Finance and materials managementc. Finance and marketingd. Marketing and R&D (m/s 592)

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23. This refers to impact a firm's pricing strategy in one market may have on its rivals' pricing strategy in another market.a. Predatory pricingb. Competitive pricingc. Experience curve pricingd. Multipoint pricing (m/s 609)

24. The means a firm chooses for delivering the product to the consumer is itsa. Distribution strategy (m/s 600)b. Product attributesc. Segmentation strategyd. Communication strategy

25. The number of intermediaries between the manufacturer and the consumer is referred to as

a. Channel reachb. Channel length (m/s 598)c. Channel exclusivityd. Channel concentration

26. 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. New products are designed for ease of manufactureb. Product development projects are driven by internal needs (m/s 615)c. Development costs are kept in checkd. Time to market is minimized

27. 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 quality (m/s 600)b. Channel skillc. Channel exclusivityd. Channel knowledge

28. To overcome cultural barriers, companies shoulda. Focus only on market segments that transcend national boundariesb. Develop products specifically for each marketc. Develop cross-cultural literacy (m/s 602)d. Focus on universal needs

29. The way a product is delivered is determined by

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a. A firm's product positioningb. A firm's entry strategy (m/s 597)c. Market segmentationd. The target market

30. The probability of effective communications is reduced bya. Source effectsb. Noise effects (m/s 604)c. Country of origin effectsd. Location effects

31. The most important determinant of channel length is the degree to which a retail system isa. Concentratedb. Globalizedc. Fragmented (m/s 599)d. Decentralized

32. The most important aspect of a country's cultural differences, particularly important in foodstuffs and beverages is the impact ofa. Attitudesb. Normsc. Valuesd. Traditions (m/s 595)

33. The set of choices the firm offers to its targeted market is known as thea. Market promotionb. Marketing conceptc. Marketing mix (m/s 592)d. Marketing strategy

34. The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known asa. Differentiationb. Diversification strategyc. Market segmentation (m/s 593)d. Market penetration

The continuing persistence of _____ differences between nations acts as a major brake on any trend toward global consumer tastes and preferences.a. Institutional and political

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b. GNP level and growth ratec. Cultural and economicd. Technological and industrial

35. Which of the following is an argument that supports global advertising?a. Even though there are cultural differences between nations, a single advertising theme

that is effective worldwide can be easily developedb. Standardized advertising lowers the costs of value creation by spreading the

fixed costs of developing the advertisements over many countries (m/s 606)c. 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 campaignd. Standardized advertising may be implemented even in the face of advertising

regulations

36. With a concentrated retail sector,a. There are long channels of distributionb. It is expensive for the firm to make contact with each individual retailerc. The orders generated from each sales call can be larged. A relatively large sales force is required (m/s 599)

37. What is the most important factor in determining the elasticity of demand for a product in a given country?a. Logisticsb. Income level (m/s 608)c. Personal sellingd. Operating revenue

38. Which of the following statements is false?a. When there is high elasticity of demand and a firm raises its prices above those of its

competitors, consumers will switch to the competitors' productsb. A firm may charge a higher price for its product in a country where competition is

limited than in one where competition is intensec. When competitors are limited, consumers' bargaining power is weakerd. The lesser the number of competitors, the higher the elasticity of

demand(m/s608)

39. When a firm emphasizes personal selling rather than mass media advertising in the promotional mix, the firm is using aa. Localized strategyb. Standardized strategyc. Push strategy (m/s 604)

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d. Pull strategy

40. Which of the following statements about price discrimination is true?a. It involves charging whatever the market will bear (m/s 608)b. It is the use of price as a competitive weapon to drive weaker competitors out of a

national marketc. It exists whenever consumers in a country are charged different prices for the same

productd. It makes economic sense to charge the same prices across countries

41. Which of the following statements about fragmented retail systems is true?a. The more fragmented the retail system, the less expensive it is for a firm to make

contact with each individual retailerb. Fragmented retail systems tend to promote the growth of wholesalers to serve

retailers (m/s 599)c. Countries with fragmented retail systems tend to have short channels of distributiond. When the retail sector is very fragmented, it makes sense for the firm to deal directly

with retailers

42. When distribution channels are short, firms shoulda. Use a push strategy (m/s 606)b. Use a direct channelc. Focus on industrial products or other complex productsd. Focus on consumer products or other standardized products

43. When the receiver of a message evaluates a message based on the status or image of the sender, _____ are said to have occurred.a. Source effects (m/s 602)b. Sender effectsc. Noise effectsd. Communication effects

44. Which of the following does not affect a firm's international communication?a. Noise levelsb. Cultural barriersc. Source effectsd. Channel exclusivity (m/s 601)

45. Which of the following statements is true?a. Direct selling may be the only way to reach consumers in poor nations with low

literacy levels

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b. Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a push strategy

c. Firms that sell industrial products or other complex products favor a pull strategyd. Mass communication has cost advantages for firms in consumer goods industries

that are trying to sell to a large segment of the market (m/s 604)

46. Which of the following is not a key difference between distribution systems in different countries?a. Channel speed (m/s 597)b. Channel qualityc. Channel lengthd. Channel exclusivity

47. When firms in the consumer goods industry are trying to sell to a large segment of the market they favor aa. Standardized strategyb. Pull strategy (m/s 606)c. Push strategyd. Localized strategy

48. Which of the following statements about barrier to international communication is true?a. The best way for a firm to overcome cultural barriers is to use local input (m/s 602)b. Source effects and country of origin effects are always negativec. Noise is extremely high in highly developed countries such as the United Statesd. Source effects occur when the receiver of the message evaluates the message on the

basis of the location of the sender

49. When a company charges whatever the market will bear, the company is usinga. A pull strategyb. Strategic pricingc. A push strategyd. Price discrimination (m/s 608)

50. Which of the following statements about retail systems is true?a. There is a tendency for greater retail concentration in many developing countriesb. Retail systems are very fragmented in developed countriesc. One factor contributing to greater retail concentration is an increase in car

ownership (m/s 598)

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d. The number of households with refrigerators leads to lesser retail concentration in developed countries

51. When a channel is exclusivea. It is controlled by market leaders or by firms who have a niche marketb. It carries only high-end productsc. It focuses on only on elite customersd. It is often difficult for a new firm to get access to shelf space in supermarkets

(m/s 599)

52. What kind of retail systems do rural India and China have?a. Fragmented (m/s 598)b. Indirectc. Concentratedd. Direct

Which of the following is not an element that constitutes a firm's marketing mix?a. Distribution strategyb. Communication strategyc. Product attributesd. Reverse engineering

53. _____ 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 (m/s 609)b. Market pricingc. Price discriminationd. Strategic pricing

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