MKTG 508 Test Ch 21 Quiz (2016) Graded - 96934

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Question QUESTION 1 When 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 countries the company would earn the same profits everywhere, regardless of the cost structure this strategy might price the product out of the market in countries where costs are high this strategy would make the price too high in poor countries and not high enough in rich countries it prevents the company from differentiating its products 5 points QUESTION 2 Dumping occurs when ________. a company entering a foreign market charges either less than its costs or less than it charges at home a company entering a foreign market charges more than the price in its home market a company entering a foreign market charges prices that are lower than those charged by its competitors in this market a company sets its price equal to its average cost of production a company exports its products to a foreign country to increase its revenue in spite of excess demand in the home country 5 points QUESTION 3 Forward invention is ________. creating a new product to meet a need in another country creating a new product to meet the need in the home country inventing products that are superior to competing offerings taking an existing product into a new market inventing something that as yet has no "market" 5 points QUESTION 4 Backward invention occurs when a firm ________. creates a new product to meet a need in another country reintroduces earlier product forms adapted to suit another country's needs invents products that are similar to competing offerings takes an existing product into a new market produces its own raw materials 5 points QUESTION 5 Many 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 bias coincident development psychic proximity cognitive dissonance backward 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. NAFTA MERCOSUR The European Union APEC ASEAN 5 points QUESTION 7 When forces for global integration are low and forces for national responsiveness are high, a strategy that ________ makes sense. treats the world as a single market views the marketplace as completely homogeneous treats the world as a portfolio of national opportunities standardizes all elements of the marketing mix facilitates a straight extension 5 points QUESTION 8 According to Hofstede, cultures with low power distance are ________. collectivist assertive egalitarian risk-averse risk-tolerant 5 points QUESTION 9 As 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 effect target market impact regiocentrism country-of-origin effect cognitive dissonance 5 points QUESTION 10 Regional economic integration is defined as the creation of trading agreements between ________. a firm and its suppliers and distributors firms targeting the same market individual firms in an industry related industries blocs of countries 5 points QUESTION 11 Zodiac 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 12 A standardized marketing mix involves ________. adopting the strategy that best fits a given target market consistently using the communication and distribution channels that entail the lowest costs adjusting the product to suit market preferences changing the features of the product to accommodate the host country changing only the communication message to suit the different target markets 5 points QUESTION 13 If a company adapts or changes both the product and the communications, the company engages in a process called ________. straight extension product reinvention product adaptation dual adaptation full adaptation 5 points QUESTION 14 Companies can run the same marketing communications programs as used in the home market or change them for each local market, a process called ________. product communications market development dual adaptation diversification communication adaptation 5 points QUESTION 15 In an adapted marketing mix, the company ________. ensures that uniform practices are adopted across countries focuses more on brand image than consumer preferences ignores differences in the legal environment ensures the lowest cost marketing program is adopted tailors the marketing programs to each target market 5 points QUESTION 16 Identify 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 17 Which of the following modes of entry into a foreign market involves the maximum commitment and risk? franchising direct investment joint ventures licensing direct exporting 5 points QUESTION 18 A2Z 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 19 Your 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 mix leveraged marketing mix adapted marketing mix engineering-driven marketing mix standardized marketing mix 5 points QUESTION 20 Which 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.
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Question

QUESTION 1
When 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 countries
the company would earn the same profits everywhere, regardless of the cost structure
this strategy might price the product out of the market in countries where costs are high
this strategy would make the price too high in poor countries and not high enough in rich countries
it prevents the company from differentiating its products 
5 points 
QUESTION 2
Dumping occurs when ________.
a company entering a foreign market charges either less than its costs or less than it charges at home
a company entering a foreign market charges more than the price in its home market
a company entering a foreign market charges prices that are lower than those charged by its competitors in this market
a company sets its price equal to its average cost of production
a company exports its products to a foreign country to increase its revenue in spite of excess demand in the home country 
5 points 
QUESTION 3
Forward invention is ________.
creating a new product to meet a need in another country
creating a new product to meet the need in the home country
inventing products that are superior to competing offerings
taking an existing product into a new market
inventing something that as yet has no "market" 
5 points 
QUESTION 4
Backward invention occurs when a firm ________.
creates a new product to meet a need in another country
reintroduces earlier product