MKTG 508 TEST CH 21 QUIZ (2016)

Question
QUESTION 1When companies are setting prices in different countries, the problem with setting a market-based price in each country is that ________.it allows intermediaries in low-price countries to reship their products to high-price countriesthe company would earn the same profits everywhere, regardless of the cost structurethis strategy might price the product out of the market in countries where costs are highthis strategy would make the price too high in poor countries and not high enough in rich countriesit prevents the company from differentiating its products 5 points QUESTION 2Dumping occurs when ________.a company entering a foreign market charges either less than its costs or less than it charges at homea company entering a foreign market charges more than the price in its home marketa company entering a foreign market charges prices that are lower than those charged by its competitors in this marketa company sets its price equal to its average cost of productiona company exports its products to a foreign country to increase its revenue in spite of excess demand in the home country 5 points QUESTION 3Forward invention is ________.creating a new product to meet a need in another countrycreating a new product to meet the need in the home countryinventing products that are superior to competing offeringstaking an existing product into a new marketinventing something that as yet has no “market” 5 points QUESTION 4Backward invention occurs when a firm ________.creates a new product to meet a need in another countryreintroduces earlier product forms adapted to suit another country’s needsinvents products that are similar to competing offeringstakes an existing product into a new marketproduces its own raw materials 5 points QUESTION 5Many U.S. firms prefer to sell in Canada, England, and Australia-rather than in larger markets such as Germany and France-because they feel more comfortable with the languages, laws, and culture, which reflect the ________ between these countries and the United States.self-serving biascoincident developmentpsychic proximitycognitive dissonancebackward invention 5 points QUESTION 6________ is one of the world’s largest single markets, with 25 member countries, a common currency, and more than 454 million consumers.NAFTAMERCOSURThe European UnionAPECASEAN 5 points QUESTION 7When forces for global integration are low and forces for national responsiveness are high, a strategy that ________ makes sense. treats the world as a single marketviews the marketplace as completely homogeneoustreats the world as a portfolio of national opportunitiesstandardizes all elements of the marketing mixfacilitates a straight extension5 points QUESTION 8According to Hofstede, cultures with low power distance are ________.collectivistassertiveegalitarianrisk-averserisk-tolerant 5 points QUESTION 9As a result of the ad campaigns depicting Brazil as a multicultural land of carnivals and beaches, any mention of the country makes people think of sun and sand. This is an example of ________.anchoring effecttarget market impactregiocentrismcountry-of-origin effectcognitive dissonance 5 points QUESTION 10Regional economic integration is defined as the creation of trading agreements between ________.a firm and its suppliers and distributorsfirms targeting the same marketindividual firms in an industryrelated industriesblocs of countries 5 points QUESTION 11Zodiac Inc. is one of the leading producers of designer bags in its country. The company is considering shifting some of its production to India. Which of the following could have prompted this move?People in India prefer imported designer bags.Zodiac can target a niche market of high-profile consumers who have a high income.Zodiac can improve its market share if it can offer better prices than its competitors.People in the home country have an ethnocentric approach.Market research indicates that Indian consumers have a low per-capita income. 5 points QUESTION 12A standardized marketing mix involves ________.adopting the strategy that best fits a given target marketconsistently using the communication and distribution channels that entail the lowest costsadjusting the product to suit market preferenceschanging the features of the product to accommodate the host countrychanging only the communication message to suit the different target markets 5 points QUESTION 13If a company adapts or changes both the product and the communications, the company engages in a process called ________.straight extensionproduct reinventionproduct adaptationdual adaptationfull adaptation 5 points QUESTION 14Companies can run the same marketing communications programs as used in the home market or change them for each local market, a process called ________. product communicationsmarket developmentdual adaptationdiversificationcommunication adaptation 5 points QUESTION 15In an adapted marketing mix, the company ________.ensures that uniform practices are adopted across countriesfocuses more on brand image than consumer preferencesignores differences in the legal environmentensures the lowest cost marketing program is adoptedtailors the marketing programs to each target market 5 points QUESTION 16Identify a benefit of using joint ventures to enter a foreign market.It entails minimum risk.It provides access to an established distribution network in the host country.It yields the highest returns.It retains full control of its investment in the host country.It is the best strategy for countries with psychic proximity. 5 points QUESTION 17Which of the following modes of entry into a foreign market involves the maximum commitment and risk? franchisingdirect investmentjoint ventureslicensingdirect exporting 5 points QUESTION 18A2Z Inc. is a producer of a huge variety of consumer goods, from soaps to shower gels, and shampoos to detergents. It is a market leader in the United States and is planning to tap the immense potential in the emerging markets. Market research, however, indicates that the Brazilian culture and society are substantially different from their American counterparts. If the company wants to target the masses, which of the following options is most likely to succeed?A2Z can use a price skimming strategy to increase market share.The company’s existing strategies in the U.S. will work just as well in Brazil.A2Z can introduce smaller “sachets” of shampoos and detergents that are priced lower.The company can introduce large family packs of shampoos and soaps even if they are priced higher than competitors.A2Z can use a predatory pricing strategy to capture the market. 5 points QUESTION 19Your firm has decided to enter the international market with your product called “Trema,” a new pocket organizer that can also be used as a cell phone. While discussing the marketing plans, your CMO decides that no changes will be necessary in either the marketing mix or the product for export. What form of marketing strategy is the CMO advocating?distributive marketing mixleveraged marketing mixadapted marketing mixengineering-driven marketing mixstandardized marketing mix 5 points QUESTION 20Which of the following causes a difference between marketing in the developed countries and marketing in the developing countries?The cost of production varies substantially between the developed and the developing world.The disparity between the rich and the poor in the developing world is reducing.There are substantial cultural differences between the developed and the developing world.Marketing in developing countries is far more expensive than in the developed world. The developing countries have more trade barriers in place than the developed countries.