International Business Management test bank Chapter 16 PDF

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International Business, 7e (Griffin/Pustay) Chapter 16 International Marketing ________ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. A) Strategy B...

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International Business, 7e (Griffin/Pustay) Chapter 16 International Marketing 1) ________ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. A) Strategy B) Marketing C) Production D) Management Answer: B Diff: 1 Skill: Concept Objective: 1 2) What is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges across national boundaries that satisfy individual and organizational objectives? A) globalization B) international marketing C) organizational design D) international management Answer: B Diff: 1 Skill: Concept Objective: 1 3) Which of the following best describes the marketing strategy of Novica? A) generating funds for art projects sponsored by National Geographic B) reducing overhead costs by manufacturing home goods overseas C) linking artists from developing countries with buyers in the U.S. D) responding to competitive pressure from U.S. home goods stores Answer: C Diff: 3 Skill: Concept Objective: 1 Learning Outcome: Explain the functions of marketing in international business

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4) Marketing managers at Unique Home Furnishings strive to develop products, pricing strategies, promotional strategies, and distribution tactics that set the firm's products apart from those of competitors in the eyes of customers. Unique Home Furnishings has cultivated an image of perceived quality and fashion that allows the firm to charge prices higher than most furniture businesses. What is the overall business strategy of Unique Home Furnishings? A) focus B) cost leadership C) differentiation D) related diversification Answer: C Diff: 2 Skill: Application Objective: 1 Learning Outcome: Explain the functions of marketing in international business 5) Which of the following companies follows a differentiation strategy? A) Wal-Mart B) Hyundai C) Rolex D) Hanes Answer: C Diff: 2 Skill: Application Objective: 1 6) Marketing managers at Computex concentrate their promotional efforts on advertising the low price of their computer components. What business strategy is Computex supporting? A) focus B) cost leadership C) differentiation D) related diversification Answer: B Diff: 2 Skill: Application Objective: 1 Learning Outcome: Explain the functions of marketing in international business 7) Which of the following companies follows a cost leadership business strategy? A) Wal-Mart B) Rolex C) Target D) BMW Answer: A Diff: 2 Skill: Application Objective: 1

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8) Which of the following is not one the key issues facing international marketing managers? A) how to distribute the firm's product B) how to develop the firm's product C) how to select the firm's employees D) how to sell the firm's product Answer: C Diff: 2 Skill: Concept Objective: 1 Learning Outcome: Explain the functions of marketing in international business 9) Marketing managers at Hoffman Jewelry concentrate their efforts on high-end consumers with significant amounts of disposable income. What business strategy is Hoffman Jewelry pursuing? A) focus B) cost leadership C) differentiation D) related diversification Answer: A Diff: 2 Skill: Application Objective: 1 10) Which element of the marketing mix includes the development of the tangible and intangible features that meet customer needs in diverse markets? A) product B) pricing C) promotion D) place Answer: A Diff: 1 Skill: Concept Objective: 1 Learning Outcome: Explain the functions of marketing in international business 11) Promotion primarily involves ________. A) developing tangible and intangible features that meet customer needs in diverse markets B) developing policies that generate revenue and strategically shape the competitive environment C) devising ways to enhance the desirability of the product to potential buyers D) getting products to customers via transportation and merchandising Answer: C Diff: 2 Skill: Concept Objective: 1 Learning Outcome: Explain the functions of marketing in international business

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12) Which element of the marketing mix includes the development of policies that bring in revenue and strategically shape the competitive environment? A) product B) pricing C) promotion D) place Answer: B Diff: 1 Skill: Concept Objective: 1 Learning Outcome: Explain the functions of marketing in international business 13) Which element of the marketing mix includes devising ways to enhance the desirability of the product or service to potential buyers? A) product B) pricing C) promotion D) place Answer: C Diff: 1 Skill: Concept Objective: 1 Learning Outcome: Explain the functions of marketing in international business 14) What is the function of pricing in the marketing mix? A) assessing customer needs and values B) developing policies that generate revenue C) increasing the desirability of the product to buyers D) transporting products to customers quickly and inexpensively Answer: B Diff: 2 Skill: Concept Objective: 1 Learning Outcome: Explain the functions of marketing in international business 15) Which of the following is LEAST relevant to decisions about the international marketing mix? A) legal forces B) collectivism C) competition D) income levels Answer: B Diff: 2 Skill: Concept Objective: 1

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16) Product ________. A) involves the development of tangible and intangible features that meet customer needs in diverse markets B) involves the development of policies that bring in revenue and strategically shape the competitive environment C) involves devising ways to enhance the desirability of the product to potential buyers D) gets products and services into the hands of customers via transportation and merchandising Answer: A Diff: 2 Skill: Concept Objective: 1 Learning Outcome: Explain the functions of marketing in international business 17) Timex is working to adapt its advertising campaign for a market in Europe. What element of the marketing mix is being addressed in this example? A) product B) pricing C) promotion D) place Answer: C Diff: 2 Skill: Application Objective: 4 Learning Outcome: Explain the functions of marketing in international business 18) In the international marketing mix, the place element focuses on ________. A) revenue policies B) advertising and product image C) transportation and merchandising D) location of manufacturing operations Answer: C Diff: 2 Skill: Concept Objective: 1 Learning Outcome: Explain the functions of marketing in international business 19) Which approach to international marketing is the easiest for a firm to adopt? A) ethnocentric approach B) polycentric approach C) geocentric approach D) transnational approach Answer: A Diff: 2 Skill: Concept Objective: 1

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20) When adopting a(n) ________ approach, a firm applies the domestic marketing mix abroad. A) ethnocentric B) polycentric C) geocentric D) multidomestic Answer: A Diff: 2 Skill: Concept Objective: 1 21) Maddox Home Goods is based in Illinois but has plans to target the housewares market in Europe. Maddox executives believe that the firm's successful U.S. marketing strategy will work equally well in the European market. Maddox most likely has a(n) ________ approach to international marketing. A) ethnocentric B) polycentric C) geocentric D) multidomestic Answer: A Diff: 2 Skill: Application Objective: 1 22) Which approach to international marketing is the most expensive to adopt? A) ethnocentric approach B) polycentric approach C) geocentric approach D) multidomestic approach Answer: B Diff: 2 Skill: Concept Objective: 1 23) Organix Foods, a U.S. firm, is expanding its operations overseas. Executives at the firm plan to take a polycentric approach to international marketing. Which of the following actions will Organix most likely take? A) using the same marketing mix in domestic and foreign markets B) customizing the marketing mix for each foreign market C) standardizing the marketing mix and product D) developing a bilingual marketing mix Answer: B Diff: 3 Skill: Application Objective: 1 Learning Outcome: Explain the functions of marketing in international business

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24) Marketers at Divine Design assume that customers will pay a higher price for a product that exactly meets their needs than a product that does not. Which approach to international marketing is most likely used by Divine Design? A) ethnocentric B) polycentric C) geocentric D) transnational Answer: B Diff: 2 Skill: Application Objective: 1 25) Firms that view themselves as multidomestic are more likely to adopt a(n) ________ approach to international marketing. A) ethnocentric B) polycentric C) geocentric D) transnational Answer: B Diff: 2 Skill: Concept Objective: 1 26) Which approach to marketing allows the firm to provide essentially the same product or service in different markets and to use essentially the same marketing approach globally? A) polycentric B) geocentric C) multidomestic D) transnational Answer: B Diff: 1 Skill: Concept Objective: 1 27) A firm that follows an ethnocentric approach to marketing standardizes the marketing mix based on the ________. A) needs of customers around the world B) ability of the firm to transport goods C) needs of home country customers D) ability of the firm to customize Answer: C Diff: 2 Skill: Concept Objective: 1

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28) Which of the following is asserted by advocates of standardization? A) customizing products is essential for high profits B) customers in developed countries are similar C) emerging economies are competitive D) differentiation indicates bias Answer: B Diff: 2 Skill: Concept Objective: 1 29) What advantage does a firm that standardizes its international marketing mix achieve? A) market share B) niche revenues C) economies of scale D) economies of scope Answer: C Diff: 2 Skill: Concept Objective: 1 30) Both the ethnocentric and geocentric approaches to international marketing advocate the concept of ________. A) codetermination B) standardization C) customization D) differentiation Answer: B Diff: 2 Skill: Concept Objective: 1 31) Which of the following factors is LEAST relevant to the degree of standardization or customization a firm adopts? A) cultural differences between home and host countries B) franchising arrangements in host country C) legal systems of host countries D) type of product Answer: B Diff: 2 Skill: Concept Objective: 1

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32) What organizational characteristic is suggested by the standardization approach to international marketing? A) centralized B) decentralized C) global product design D) global area design Answer: A Diff: 2 Skill: Concept Objective: 1 33) Which of the following is not an advantage of standardized international marketing? A) reduces marketing costs B) reflects different conditions of product use C) facilitates centralized control of marketing D) results in economies of scale in production Answer: B Diff: 2 Skill: Concept Objective: 1 34) Which of the following is a disadvantage of customized international marketing? A) creates inefficiencies in R&D B) ignores different conditions of product use C) inhibits local marketing initiatives D) ignores differences in buyer behavior patterns Answer: A Diff: 2 Skill: Concept Objective: 1 35) Which of the following is a tangible component of a product? A) image B) installation C) warranty D) packaging Answer: D Diff: 1 Skill: Concept Objective: 2

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36) FridgeWare is an MNE that manufactures and sells refrigerators around the world. Consumer protection regulations vary widely from country to country. Which aspect of FridgeWare's products is LEAST likely affected by host country differences? A) technical specifications B) packaging C) labeling requirements D) warranties Answer: D Diff: 2 Skill: Application Objective: 2 37) Carver Foods is an MNE that sells baby food around the world. What product component will most likely be standardized by Carver in all foreign markets? A) labeling B) ingredients C) brand name D) container size Answer: C Diff: 2 Skill: Application Objective: 2 38) International pricing strategies are significantly affected by all of the following EXCEPT ________. A) exchange rate fluctuations B) competitors' warranties C) transportation costs D) distribution practices Answer: B Diff: 2 Skill: Concept Objective: 3 Learning Outcome: Explain the functions of marketing in international business 39) Origin Outfitters uses a geocentric approach to international marketing. Which pricing policy does Origin Outfitters most likely use? A) standard B) two-tiered C) market D) global Answer: A Diff: 2 Skill: Application Objective: 3

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40) Which product category listed below lends itself to a standard price policy? A) commodities B) luxury goods C) consumer packaged goods D) services Answer: A Diff: 2 Skill: Concept Objective: 3 41) Lands' End markets its products in international markets with the same marketing mix that it applies to the U.S. market. Which pricing policy does Lands' End most likely use? A) standard B) two-tiered C) market D) global Answer: B Diff: 2 AACSB: Analytic skills Skill: Synthesis Objective: 1, 3 Learning Outcome: Explain the functions of marketing in international business 42) Mazda was charged with dumping minivans in the U.S. market. What pricing policy was Mazda most likely using? A) standard B) two-tiered C) market D) global Answer: B Diff: 2 Skill: Application Objective: 3 43) Under a ________ price policy, the firm sets one price for all its domestic sales and a second price for all its international sales. A) standard B) two-tiered C) market D) global Answer: B Diff: 2 Skill: Concept Objective: 3

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44) Under a ________ price policy, the firm charges the same price for its products and services regardless of where they are sold or the nationality of the customer. A) standard B) two-tiered C) market D) global Answer: A Diff: 2 Skill: Concept Objective: 3 45) Under a ________ price policy, the firm customizes its prices on a market-by-market basis to maximize its profits in each market. A) standard B) two-tiered C) market D) global Answer: C Diff: 2 Skill: Concept Objective: 3 46) Digitex, an MNE, customizes its marketing mix in each market that the firm enters to meet the idiosyncratic needs of customers in different foreign markets. What pricing policy does Digitex most likely use? A) standard B) two-tiered C) market D) global Answer: C Diff: 2 AACSB: Analytic skills Skill: Synthesis Objective: 1, 3 Learning Outcome: Explain the functions of marketing in international business 47) Which term best describes the market pricing policy? A) simple B) integrated C) complex D) standardized Answer: C Diff: 1 Skill: Concept Objective: 3

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48) Under the ________ price policy, firms can set higher prices where markets will tolerate them and lower prices where necessary to remain competitive. A) standard B) two-tiered C) market D) global Answer: C Diff: 2 Skill: Concept Objective: 3 49) Executives at Dawson Manufacturing, an MNE, are considering the implementation of a market pricing policy. Which of the following is NOT a potential risk to Dawson of this type of policy? A) inability to assess marginal costs B) damage to the firm's brand name C) development of a gray market D) complaints about dumping Answer: A Diff: 2 Skill: Application Objective: 3 50) Which of the following occurs when products are imported into a country legally but outside the normal channels of distribution authorized by the manufacturer? A) gray market B) parallel exporting C) black market D) price gouging Answer: A Diff: 1 AACSB: Dynamics of the global economy Skill: Concept Objective: 3 51) Which of the following would most likely trigger a gray market? A) a firm has large price differences among different markets B) a firm prices its products almost equally in all markets C) products are illegal in one market but legal in another D) products are closely regulated by the government Answer: A Diff: 3 Skill: Concept Objective: 3

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52) A Taiwanese discount store is able to purchase and import Coke made in the United States for 27% less than the price of Coke made in Taiwan. This is a example of a ________. A) black market B) gray market C) controlled market D) free market Answer: B Diff: 2 AACSB: Dynamics of the global economy Skill: Application Objective: 3 53) Which of the following is not a product commonly influenced by gray markets? A) automobiles B) DVDs C) cameras D) computers Answer: B Diff: 1 Skill: Concept Objective: 3 54) Which component of the marketing mix encompasses all efforts by an international firm to enhance the desirability of its products among potential buyers? A) product B) price C) place D) promotion Answer: D Diff: 1 Skill: Concept Objective: 4 Learning Outcome: Explain the functions of marketing in international business 55) All of the following are primary targets of international promotional activities EXCEPT ________. A) buyers B) distributors C) competitors D) potential investors Answer: C Diff: 1 Skill: Concept Objective: 4 Learning Outcome: Explain the functions of marketing in international business

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56) Which term refers to the mix of advertising, personal selling, sales promotion, and public relations used by a firm to market its products? A) marketing mix B) promotion mix C) public relations mix D) communications mix Answer: B Diff: 1 Skill: Concept Objective: 4 57) Which of the following is not one of the elements of the promotion mix? A) advertising B) e-commerce C) sales promotion D) public relations Answer: B Diff: 1 Skill: Concept Objective: 4 58) Which term refers to the facts or impressions the advertiser wants to convey to potential customers? A) medium B) message C) copy D) graphic Answer: B Diff: 1 Skill: Concept Objective: 4 59) Honda's advertising stresses its reliability and functionality. Reliability is the ________. A) medium B) message C) copy D) channel Answer: B Diff: 2 Skill: Application Objective: 4

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60) The ________ is the communication channel used by the advertiser to convey a message. A) medium B) message C) copy D) graphic Answer: A Diff: 1 Skill: Concept Objective: 4 61) Which of the following products most likely lends itself to standardized advertising due to its universal appeal? A) Progressive auto insurance B) McDonald's hamburgers C) Capital One credit cards D) Palmolive soap Answer: B Diff: 2 Skill: Application Objective: 4 62) What element of the promotion mix promotes a close, personal contact with customers? A) advertising B) public relations C) personal selling D) sales promotions Answer: C Diff: 1 Skill: Concept Objective: 4 Learning Outcome: Explain the functions of marketing in international business 63) Specialized marketing efforts such as coupons are a part of ________. A) advertising B) public relations C) sales promotions D) brand placements Answer: C Diff: 1 Skill: Concept Objective: 4

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64) Pizza Hut is offering free pizza slices in Beijing. This i...