Question 1

Adaptation is more costly than standardization because ________.

Accepted Answer

A)  a firm that chooses adaptation over standardization is likely to lose customers in the long run 
B)  adaptation often requires the firm to engage in substantial modifications to product design, manufacturing, pricing, distribution, and communications 
C)  adaptation requires the firm to scale up production without regard to quality 
D)  standardization holds no market risks 
A)  a firm that chooses adaptation over standardization is likely to lose customers in the long run 
B)  adaptation often requires the firm to engage in substantial modifications to product design, manufacturing, pricing, distribution, and communications 
C)  adaptation requires the firm to scale up production without regard to quality 
D)  standardization holds no market risks

Question 2

Which of the following is true with regard to a global positioning strategy?

Accepted Answer

A)  A global positioning strategy does not address the shared expectations of a global customer market segment. 
B)  More often than not, global positioning dilutes brand equity in the international market. 
C)  A global positioning strategy reduces international marketing costs. 
D)  Internationalizing firms rarely aim for a global positioning strategy. 
A)  A global positioning strategy does not address the shared expectations of a global customer market segment. 
B)  More often than not, global positioning dilutes brand equity in the international market. 
C)  A global positioning strategy reduces international marketing costs. 
D)  Internationalizing firms rarely aim for a global positioning strategy.

Question 3

Varying income levels among nations usually necessitate that firms make price adjustments and product modifications for individual markets.

Accepted Answer

A) True 
 B)False

Question 4

Channel length refers to the number of distributors or other intermediaries that it takes to get the product from the manufacturer to the market.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following constitutes a major disadvantage for exporting firms that primarily use independent distributors based abroad?

Accepted Answer

A)  inability to monitor currency exchange rates 
B)  lack of control over pricing 
C)  absence of brand loyalty among customers 
D)  limited access to low-cost labor 
A)  inability to monitor currency exchange rates 
B)  lack of control over pricing 
C)  absence of brand loyalty among customers 
D)  limited access to low-cost labor

Question 6

Incremental pricing refers to setting prices to cover only the firm's variable costs, but not its fixed costs.

Accepted Answer

A) True 
 B)False

Question 7

Serving a key global customer in a consistent and standardized manner, regardless of where in the world it operates is known as ________.

Accepted Answer

A)  global account management 
B)  offshoring 
C)  marketing communications 
D)  insourcing 
A)  global account management 
B)  offshoring 
C)  marketing communications 
D)  insourcing

Question 8

Gray market activity is also called ________.

Accepted Answer

A)  market diversification 
B)  target costing 
C)  puffery 
D)  parallel importation 
A)  market diversification 
B)  target costing 
C)  puffery 
D)  parallel importation

Question 9

Which of the following characterize the most successful global brands?

Accepted Answer

A)  low visibility 
B)  narrow appeal 
C)  status symbols 
D)  highly complex product features 
A)  low visibility 
B)  narrow appeal 
C)  status symbols 
D)  highly complex product features

Question 10

Perhaps the most important distinction between standardization and adaptation is that ________.

Accepted Answer

A)  standardization helps the firm customize products according to customer preferences, while adaptation helps the firm save time 
B)  standardization helps the firm cut costs, while local adaptation helps the firm more precisely cater to local needs and requirements 
C)  standardization helps the firm cater to the needs of local customers, while adaptation helps the firm save costs through mass production 
D)  standardization helps the firm upgrade quality to suit the unique tastes of consumers, while adaptation emphasizes uniformity 
A)  standardization helps the firm customize products according to customer preferences, while adaptation helps the firm save time 
B)  standardization helps the firm cut costs, while local adaptation helps the firm more precisely cater to local needs and requirements 
C)  standardization helps the firm cater to the needs of local customers, while adaptation helps the firm save costs through mass production 
D)  standardization helps the firm upgrade quality to suit the unique tastes of consumers, while adaptation emphasizes uniformity

Question 11

When managers attempt to standardize their international marketing program, they can expect ________.

Accepted Answer

A)  diminished efficiency 
B)  cost reduction 
C)  brand dilution 
D)  very high profit margins 
A)  diminished efficiency 
B)  cost reduction 
C)  brand dilution 
D)  very high profit margins

Question 12

Brand equity can best be defined as the ________.

Accepted Answer

A)  market value of a brand 
B)  attractiveness of a brand name 
C)  durability of a brand 
D)  lack of customer confidence in a brand 
A)  market value of a brand 
B)  attractiveness of a brand name 
C)  durability of a brand 
D)  lack of customer confidence in a brand

Question 13

Refrigerator Adaptations (Scenario)
Cold-Aire Inc. manufactures refrigerators from its facilities in the United States and China and ships them to retail stores around the world. Kitchen sizes vary around the world, and as a result, refrigerator sizes must vary as well. U.S. retailers want large refrigerators, while European and Asian retailers demand smaller units. Cold-Aire manufactures over 20 different models of refrigerators, which often vary in size by only a few inches. Cold-Aire managers are concerned that the firm is losing money because of product adaptations. Cold-Aire management is meeting to discuss the various cost-saving options for the firm.
-Which of the following most likely supports Cold-Aire implementing a regional strategy of refrigerator standardization?

Accepted Answer

A)  Refrigerator sizes within Latin America tend to be similar. 
B)  Distribution channels in Asian countries are usually complicated. 
C)  American kitchens are typically more spacious than Asian ones. 
D)  Customers in Europe demand exterior ice and water dispensers. 
A)  Refrigerator sizes within Latin America tend to be similar. 
B)  Distribution channels in Asian countries are usually complicated. 
C)  American kitchens are typically more spacious than Asian ones. 
D)  Customers in Europe demand exterior ice and water dispensers.

Question 14

The root cause of gray market activity is a large enough difference in price of the same product between two countries.

Accepted Answer

A) True 
 B)False

Question 15

Adaptation refers to the process of making the marketing program elements uniform, with a view to targeting entire regions, or even the global marketplace, with the same product or service.

Accepted Answer

A) True 
 B)False

Question 16

What is market segmentation? In a short essay, discuss how international firms use market segmentation.

Accepted Answer

Market segmentation refers to the proces

Question 17

The longer the channel, the lesser intermediaries the firm must compensate.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true with regard to a global market segment?

Accepted Answer

A)  A global market segment refers to a group of customers belonging to the same generational group within a country. 
B)  Firms target global market segments by using a relatively uniform marketing strategy and programs. 
C)  Buyers in a global market segment are typically characterized by low spending power. 
D)  Buyers in a global market segment rarely buy products representing luxury and style. 
A)  A global market segment refers to a group of customers belonging to the same generational group within a country. 
B)  Firms target global market segments by using a relatively uniform marketing strategy and programs. 
C)  Buyers in a global market segment are typically characterized by low spending power. 
D)  Buyers in a global market segment rarely buy products representing luxury and style.

Question 19

The strength of a global brand is best measured by its brand equity.

Accepted Answer

A) True 
 B)False

Question 20

Channel length can best be defined as ________.

Accepted Answer

A)  the number of products sold under a single brand name 
B)  the number of transactions a business buyer makes in the market at a given point of time 
C)  the number of intermediaries between the manufacturer and the retailer 
D)  the length of time it takes for goods to be manufactured for sale 
A)  the number of products sold under a single brand name 
B)  the number of transactions a business buyer makes in the market at a given point of time 
C)  the number of intermediaries between the manufacturer and the retailer 
D)  the length of time it takes for goods to be manufactured for sale

Adaptation is more costly than standardization because ________.

Which of the following is true with regard to a global positioning strategy?

Varying income levels among nations usually necessitate that firms make price adjustments and product modifications for individual markets.

Channel length refers to the number of distributors or other intermediaries that it takes to get the product from the manufacturer to the market.

Which of the following constitutes a major disadvantage for exporting firms that primarily use independent distributors based abroad?

Incremental pricing refers to setting prices to cover only the firm's variable costs, but not its fixed costs.

Serving a key global customer in a consistent and standardized manner, regardless of where in the world it operates is known as ________.

Gray market activity is also called ________.

Which of the following characterize the most successful global brands?

Perhaps the most important distinction between standardization and adaptation is that ________.

When managers attempt to standardize their international marketing program, they can expect ________.

Brand equity can best be defined as the ________.

The root cause of gray market activity is a large enough difference in price of the same product between two countries.

Adaptation refers to the process of making the marketing program elements uniform, with a view to targeting entire regions, or even the global marketplace, with the same product or service.

What is market segmentation? In a short essay, discuss how international firms use market segmentation.

The longer the channel, the lesser intermediaries the firm must compensate.

Which of the following is true with regard to a global market segment?

The strength of a global brand is best measured by its brand equity.

Channel length can best be defined as ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

Organizational Participants That Make International Business Happen

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention in International Business

Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters

Exam 18: Marketing in the Global Firm

Adaptation is more costly than standardization because ________.

Which of the following is true with regard to a global positioning strategy?

Varying income levels among nations usually necessitate that firms make price adjustments and product modifications for individual markets.

Channel length refers to the number of distributors or other intermediaries that it takes to get the product from the manufacturer to the market.

Which of the following constitutes a major disadvantage for exporting firms that primarily use independent distributors based abroad?

Incremental pricing refers to setting prices to cover only the firm's variable costs, but not its fixed costs.

Serving a key global customer in a consistent and standardized manner, regardless of where in the world it operates is known as ________.

Gray market activity is also called ________.

Which of the following characterize the most successful global brands?

Perhaps the most important distinction between standardization and adaptation is that ________.

When managers attempt to standardize their international marketing program, they can expect ________.

Brand equity can best be defined as the ________.

The root cause of gray market activity is a large enough difference in price of the same product between two countries.

Adaptation refers to the process of making the marketing program elements uniform, with a view to targeting entire regions, or even the global marketplace, with the same product or service.

What is market segmentation? In a short essay, discuss how international firms use market segmentation.

The longer the channel, the lesser intermediaries the firm must compensate.

Which of the following is true with regard to a global market segment?

The strength of a global brand is best measured by its brand equity.

Channel length can best be defined as ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

Organizational Participants That Make International Business Happen

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention in International Business

Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters