Question 1

Price can be used as a strategic variable to achieve specific goals,including ROI,profit,and rapid recovery of product development costs.

Accepted Answer

A) True 
 B)False

Question 2

If company managers decide to set the export price for a particular product at an amount equivalent to the home-country price,they would be using which approach to pricing?

Accepted Answer

A)  ethnocentric 
B)  polycentric 
C)  regiocentric 
D)  geocentric 
E)  extension pricing 
A)  ethnocentric 
B)  polycentric 
C)  regiocentric 
D)  geocentric 
E)  extension pricing

Question 3

Hewlett-Packard is the world's leading marketer of inkjet printers.H-P's printers are priced very low and margins are slim; by contrast,the company enjoys healthy margins on sales of replacement ink cartridges.This approach is sometimes known as "razors and blades" pricing.

Accepted Answer

A) True 
 B)False

Question 4

Toys "R" Us successfully targets the Japanese toy market by bypassing layers of distribution and adopting a warehouse style of selling similar to its U.S.approach.

Accepted Answer

A) True 
 B)False

Question 5

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:

Accepted Answer

A)  skimming strategy. 
B)  penetration strategy. 
C)  cost-based strategy. 
D)  price ceiling strategy. 
E)  transfer pricing strategy. 
A)  skimming strategy. 
B)  penetration strategy. 
C)  cost-based strategy. 
D)  price ceiling strategy. 
E)  transfer pricing strategy.

Question 6

When Walmart came to Brazil in the mid-1990s,it discovered that local competitors had the technological infrastructure that allowed them to match its aggressive pricing policies.

Accepted Answer

A) True 
 B)False

Question 7

The most general term for the global phenomenon involving reciprocal business interactions between parties in various countries is known as:

Accepted Answer

A)  switch trading. 
B)  barter. 
C)  offset. 
D)  compensation trading. 
E)  countertrade. 
A)  switch trading. 
B)  barter. 
C)  offset. 
D)  compensation trading. 
E)  countertrade.

Question 8

One of the reasons why the initial enthusiasm for OLPC [one laptop per child] did not translate into firm commitments for orders was:

Accepted Answer

A)  the computer XO was not rugged enough to handle heavy use and abuse. 
B)  the computer XO was not dust and water proof, dust being a major problem in many countries. 
C)  the higher price of computer XO. 
D)  the images were bright even in sunlight. 
E)  the computer XO did not have Wi-Fi community. 
A)  the computer XO was not rugged enough to handle heavy use and abuse. 
B)  the computer XO was not dust and water proof, dust being a major problem in many countries. 
C)  the higher price of computer XO. 
D)  the images were bright even in sunlight. 
E)  the computer XO did not have Wi-Fi community.

Question 9

Which of the following does not contribute to price escalation in global marketing?

Accepted Answer

A)  shipping and insurance charges 
B)  value added taxes (VAT) 
C)  different Incoterms as incentives 
D)  duties and tariffs 
E)  fluctuating exchange rates 
A)  shipping and insurance charges 
B)  value added taxes (VAT) 
C)  different Incoterms as incentives 
D)  duties and tariffs 
E)  fluctuating exchange rates

Question 10

The country which has the highest rates of value-added tax (VAT)in the European Union is:

Accepted Answer

A)  Germany. 
B)  Italy. 
C)  France. 
D)  Denmark. 
E)  Switzerland. 
A)  Germany. 
B)  Italy. 
C)  France. 
D)  Denmark. 
E)  Switzerland.

Question 11

Why is compensation trading also called a "buyback?" How does it differ from switch trading?

Accepted Answer

Compensation trading is a form of counte

Question 12

Penetration prices often mean that the product may be sold at a loss for a certain period of time.

Accepted Answer

A) True 
 B)False

Question 13

If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves,the company should use the ________ pricing strategy.

Accepted Answer

A)  gray market 
B)  skimming 
C)  penetration 
D)  market holding 
E)  cost-based 
A)  gray market 
B)  skimming 
C)  penetration 
D)  market holding 
E)  cost-based

Question 14

What is offset and why is it important in global marketing? How can it be distinguished from counterpurchase?

Accepted Answer

Offset is a reciprocal arrangement where

Question 15

A manufacturer attempting to set prices for its products in export markets must realize that CIF,VAT,and distributor markup all lead to:

Accepted Answer

A)  currency devaluations. 
B)  dumping charges. 
C)  market skimming. 
D)  price escalation. 
E)  market penetration. 
A)  currency devaluations. 
B)  dumping charges. 
C)  market skimming. 
D)  price escalation. 
E)  market penetration.

Question 16

The European Commission recently fined Nintendo nearly $150 million after it was determined that the video game company had colluded with European distributors to fix prices.Why is price fixing not considered a good practice? What are different kinds of price fixings?

Accepted Answer

The reason why Nintendo had to pay a fin

Question 17

A working knowledge of Incoterms can be a source of competitive advantage to anyone seeking an entry-level job in global marketing.What are "Incoterms," and how are they classified? How are Incoterms applied in global marketing?

Accepted Answer

The internationally accepted terms of tr

Question 18

The following activities must be performed when goods cross international boundaries except:

Accepted Answer

A)  obtaining currency permit. 
B)  packing goods for export. 
C)  transporting the goods. 
D)  preparing a land bill of lading. 
E)  receiving payments. 
A)  obtaining currency permit. 
B)  packing goods for export. 
C)  transporting the goods. 
D)  preparing a land bill of lading. 
E)  receiving payments.

Question 19

"Market skimming" is a strategy that uses low prices as a competitive weapon to gain market position.

Accepted Answer

A) True 
 B)False

Question 20

Which pricing strategy has the advantage of being simple to calculate but has the disadvantage of ignoring demand and competitive conditions?

Accepted Answer

A)  gray marketing 
B)  skimming 
C)  penetration 
D)  market holding 
E)  cost-based 
A)  gray marketing 
B)  skimming 
C)  penetration 
D)  market holding 
E)  cost-based

Price can be used as a strategic variable to achieve specific goals,including ROI,profit,and rapid recovery of product development costs.

If company managers decide to set the export price for a particular product at an amount equivalent to the home-country price,they would be using which approach to pricing?

Hewlett-Packard is the world's leading marketer of inkjet printers.H-P's printers are priced very low and margins are slim; by contrast,the company enjoys healthy margins on sales of replacement ink cartridges.This approach is sometimes known as "razors and blades" pricing.

Toys "R" Us successfully targets the Japanese toy market by bypassing layers of distribution and adopting a warehouse style of selling similar to its U.S.approach.

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:

When Walmart came to Brazil in the mid-1990s,it discovered that local competitors had the technological infrastructure that allowed them to match its aggressive pricing policies.

The most general term for the global phenomenon involving reciprocal business interactions between parties in various countries is known as:

One of the reasons why the initial enthusiasm for OLPC [one laptop per child] did not translate into firm commitments for orders was:

Which of the following does not contribute to price escalation in global marketing?

The country which has the highest rates of value-added tax (VAT)in the European Union is:

Why is compensation trading also called a "buyback?" How does it differ from switch trading?

Penetration prices often mean that the product may be sold at a loss for a certain period of time.

If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves,the company should use the ________ pricing strategy.

What is offset and why is it important in global marketing? How can it be distinguished from counterpurchase?

A manufacturer attempting to set prices for its products in export markets must realize that CIF,VAT,and distributor markup all lead to:

The European Commission recently fined Nintendo nearly $150 million after it was determined that the video game company had colluded with European distributors to fix prices.Why is price fixing not considered a good practice? What are different kinds of price fixings?

A working knowledge of Incoterms can be a source of competitive advantage to anyone seeking an entry-level job in global marketing.What are "Incoterms," and how are they classified? How are Incoterms applied in global marketing?

The following activities must be performed when goods cross international boundaries except:

"Market skimming" is a strategy that uses low prices as a competitive weapon to gain market position.

Which pricing strategy has the advantage of being simple to calculate but has the disadvantage of ignoring demand and competitive conditions?

Introduction to Global Marketing

The Global Economic Environment

The Global Trade Environment

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Segmentation, Targeting, and Positioning

Importing,Exporting,and Sourcing

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters

Exam 11: Pricing Decisions

Price can be used as a strategic variable to achieve specific goals,including ROI,profit,and rapid recovery of product development costs.

If company managers decide to set the export price for a particular product at an amount equivalent to the home-country price,they would be using which approach to pricing?

Hewlett-Packard is the world's leading marketer of inkjet printers.H-P's printers are priced very low and margins are slim; by contrast,the company enjoys healthy margins on sales of replacement ink cartridges.This approach is sometimes known as "razors and blades" pricing.

Toys "R" Us successfully targets the Japanese toy market by bypassing layers of distribution and adopting a warehouse style of selling similar to its U.S.approach.

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:

When Walmart came to Brazil in the mid-1990s,it discovered that local competitors had the technological infrastructure that allowed them to match its aggressive pricing policies.

The most general term for the global phenomenon involving reciprocal business interactions between parties in various countries is known as:

One of the reasons why the initial enthusiasm for OLPC [one laptop per child] did not translate into firm commitments for orders was:

Which of the following does not contribute to price escalation in global marketing?

The country which has the highest rates of value-added tax (VAT)in the European Union is:

Why is compensation trading also called a "buyback?" How does it differ from switch trading?

Penetration prices often mean that the product may be sold at a loss for a certain period of time.

If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves,the company should use the ________ pricing strategy.

What is offset and why is it important in global marketing? How can it be distinguished from counterpurchase?

A manufacturer attempting to set prices for its products in export markets must realize that CIF,VAT,and distributor markup all lead to:

The European Commission recently fined Nintendo nearly $150 million after it was determined that the video game company had colluded with European distributors to fix prices.Why is price fixing not considered a good practice? What are different kinds of price fixings?

A working knowledge of Incoterms can be a source of competitive advantage to anyone seeking an entry-level job in global marketing.What are "Incoterms," and how are they classified? How are Incoterms applied in global marketing?

The following activities must be performed when goods cross international boundaries except:

"Market skimming" is a strategy that uses low prices as a competitive weapon to gain market position.

Which pricing strategy has the advantage of being simple to calculate but has the disadvantage of ignoring demand and competitive conditions?

Introduction to Global Marketing

The Global Economic Environment

The Global Trade Environment

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Segmentation, Targeting, and Positioning

Importing,Exporting,and Sourcing

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters