国际营销试题库第二部分
Chapter 7 – Global Segmentation,
Targeting, and Positioning
True/False
1.MTV's success around the globe can be attributed in part to management's
recognition that "think global, act local" is an important guiding principle.
a.True (page 225, medium)
b.False
2.The process of targeting a market should precede the process of market
segmentation.
a.True
b.False (page 225, medium)
3.According to the notion of "segment simultaneity," the same market segments are
appearing in different countries around the world.
a.True (page 227, medium)
b.False
4.Conventional wisdom about market segmentation calls for acknowledging the
emergence of global market segments that transcend national boundaries.
a.True
b.False (page 228, medium)
5.Global markets can be segmented in terms of both country groups and consumer
groups.
a.True (page 228, medium)
b.False
6.Income is an important variable in demographic segmentation.
a.True (page 228, medium)
b.False
7.By definition, demographic segmentation is based on measurable characteristics
such as income, age, and gender.
a.True (page 228, medium)
b.False
8.Consumer lifestyles are an important variable in demographic segmentation.
a.True
b.False (page 228, medium)
9.The assumption of homogeneity should be the cornerstone of a company's market
segmentation effort.
a.True
b.False (page 228, medium)
10.When segmenting global markets, it is important to note that Triad countries
generate about three-fourths of world GNP.
a.True (pp. 230-232, medium)
b.False
11.When segmenting global markets, it is important to note that about 85% of the
world's population is found outside the Triad countries.
a.True (pp. 230-232, medium)
b.False
12.The United States ranks number 1 among nations in terms of both per capita GNP
and GNP adjusted for purchasing power parity.
a.True
b.False (page 231, easy)
13.Per capita GNP is generally an accurate measure of standard of living in
low-income countries.
a.True
b.False (page 231, easy)
14.When adjusted for purchasing power parity, Japan's per capita GNP is lower than
the unadjusted figure.
a.True (page 231, hard)
b.False
15.Unadjusted per capita income figures are the best data source for understanding a
country's standard of living.
a.True
b.False (page 231, medium)
16.When assessing market segments in terms of income data, global companies
should avoid targeting countries with per capita incomes of less than $755.
a.True
b.False (page 231, medium)
17.According to projections discussed in Chapter 7, by 2010 China is expected to be
included in a list of the top 5 nations ranked by GNP.
a.True (page 232, medium)
b.False
18.The ten most populous nations account for 90% of world GNP.
a.True
b.False (page 232, medium)
19.McDonald's generates nearly 90% of sales in 50 countries.
a.True
b.False (page 233, medium)
20.Psychographic segmentation involves grouping people according to the attitudes,
values, and lifestyles.
a.True (page 235, medium)
b.False
21.Categories such as “successful idealists” and “affluent materialists” can be used to
describe psychographic segments.
a.True (page 236, medium)
b.False
22.Recent market studies suggest that Russia's 150 million people should be treated as
a mass market.
a.True
b.False (pp. 236-237, medium)
23.In Chapter 7, "Generation Y," "Golden Grays," and "Globerations" were identified
as three important market segments in the Greater China region.
a.True
b.False (page 238, medium)
24.In Russia, where per capita vodka consumption is much higher than in other
countries, Western vodka marketers such as Seagram have captured a significant market share.
a.True
b.False (pp. 239-240, medium)
25.Famso and Grupo Gigant SA are retailers based in Mexico that have recently
opened stores in the USA. This action can be interpreted as a reflecting the goal of reaching a particular psychographic segment.
a.True
b.False (page 241, medium)
26.Ford and GM have been at the leading edge of automakers that recognized early on
the importance of the Hispanic segment in the U.S. market.
a.True
b.False (page 241, medium)
27.When assessing potential country target markets, management should rely heavily
on its network of contacts as a primary criterion for targeting.
a.True
b.False (page 242, medium)
28."Current segment size" and "growth potential" are two key reasons why global
automakers are targeting the U.S. minivan market.
a.True (pp. 242-243, medium)
b.False
29.When making a decision about market entry timing, a company’s management
team should understand that the first-mover always become the market leader.
a.True
b.False (page 246, medium)
30.Before targeting the North American market, the Lexus marketing team succeeded
in making Lexus the number 1 luxury-car nameplate in Japan.
a.True
b.False (pp. 247-248, medium)
Multiple Choice
31._______ is the act of evaluating and comparing market segments and then
selecting one or more of them to serve with products or services.
a.Global market segmentation
b.Targeting (page 225, easy)
c.Positioning
d.Sourcing
32.When identifying global market segments, a fundamental guiding principle should
be the need to determine:
a.shared demographic characteristics
b.similar languages
c.similar needs and buying behavior (page 225, medium)
d.similar ethnic backgrounds
33.Global marketing authority Theodore Levitt has noted that many ethnic and
regional foods—sushi, for example—are enjoying popularity in many countries of the world. This observation is known as:
a.the pluralization of consumption (page 227, medium)
b.the ethnicitization of consumption
c.the democratization of consumption
d.the sophistication of consumption
34.Which of the following is defined as "a company's effort to identify and categorize
groups of customers and countries according to common characteristics."
a.global sourcing
b.global targeting
c.global positioning
d.global market segmentation (pp. 226-227, easy)
35.Which of the following is the process of evaluating market segments and deciding
which country, region, or group of people to focus a company's efforts on:
a.global market segmentation
b.global positioning
c.global targeting (pp. 226-227, easy)
d.global sourcing
36.Which of the following does not represent "conventional wisdom" regarding
global segmentation:
a.assume heterogeneity between countries
b.assume homogeneity within a given country
c.focus heavily on macro-level cultural differences
d.assume emergence of segments that transcend national boundaries
(page 228, medium)
37.Income and population are two variables that can be used in which type of
segmentation:
a.demographic (page 228, easy)
b.psychographic
c.ethnic
d.behavioral
38. A tobacco company's decision to create a cigarette brand that would appeal to
working women between the ages of 18-35 would represent which type of
segmentation:
a.demographic segmentation (page 228, easy)
b.benefit segmentation
c.psychographic segmentation
d.behavioral segmentation
39.Statistical measures of population characteristics such as age, gender, and
education represent which type of data:
a.psychographic
b.geographic
c.demographic (page 228, easy)
d.orthographic
40.According to the discussion in Chapter 7, what do Turkey and China in common:
https://www.docsj.com/doc/af18358012.html,ernmental restrictions prohibit MTV from broadcasting in these
countries.
b.Recordings released by local musicians outsell those by international
artists by a wide margin. (page 229, hard)
c.Recordings released by international artists outsell those by local
musicians by a good margin.
d.MTV is not interested in these markets because they do not represent
attractive targets.
41.According to our text, which of the following created the market opportunity for
the Carrefour hypermarket chain in France:
a.geographic changes
b.psychographic change
c.demographic changes (pp. 229-230, medium)
d.changes in France’s ethnic population
42. A global company can potentially reach 75 percent of world income by targeting
consumers in:
a.China
b.the Triad (pp. 230-232, medium)
c.North America
d.India
43.Which of the following is NOT a demographic variable:
a.age
b.gender
c.income
d.level of educational attainment
e.opinion about health risks associated with smoking (pp. 230-232,
medium)
44.According to data cited in Chapter 7, which country ranks number 1 in terms of per
capita income:
a.France
b.Luxembourg
c.Japan (page 231, medium)
d.Germany
e.United States
45.2003 GNP in the United States was approximately:
a.$6.6 trillion
b.$7.6 trillion
c.$8.6 trillion
d.$9.6 trillion
e.$10.6 trillion (page 232, medium)
46.In 2003, which country ranked second to the United States in terms of GNP:
a.Germany
b.France
c.Brazil
d.Japan (page 232, medium)
e.Italy
47.According to projections cited in Chapter 7, what will be the relative country
rankings in terms of GNP by the year 2010 (in descending rank by GNP):
a.United States, Japan, Germany, China (page 232, hard)
b.Japan, United States, Germany, China
c.China, Japan, United States, Germany
d.Germany, China, Japan, United States
e.United States, China, Japan, Germany
48.One nation accounts for nearly one third of world income, namely:
a.China
b.Japan
c.United States (page 233, hard)
d.Germany
49.World population in 2000 was approximately:
a. 4.3 billion
b. 5.3 billion
c. 6.3 billion (page 233, medium)
d.7.3 billion
e.8.3 billion
50.Which country is home to 1 of every 5 people in the world:
https://www.docsj.com/doc/af18358012.html,
b.Brazil
c.India
d.China (page 233, easy)
e.Indonesia
51.Which of the following statements about McDonald's operations is correct:
a.About a dozen high-income countries account for most sales and
operating income. (page 233, medium)
b.McDonald's avoids low-income countries.
c.The highest proportion of sales and operating income are generated in
low-income countries.
d.McDonald's has prospered by targeting the global elit
e.
52.The term most closely associated with psychographics is:
a.gender
b.lifestyle (page 235, medium)
c.statistics
d.heavy user
e.standard of living
53.__________ segmentation involves grouping people in terms of their attitudes,
values, and lifestyles.
a.demographic
b.benefit
c.psychographic (page 235, easy)
d.behavioral
54.Which type of segmentation did Porsche AG use in its effort to boost U.S. sales:
a.psychographic segmentation (page 235, easy)
b.benefit segmentation
c.demographic segmentation
d.behavioral segmentation
55.Porsche AG uses the label "Top Guns" to describe one segment of its customers,
namely those who care about power and control and who expect to be noticed.
Such a profile would be based on which type of segmentation:
a.demographic
b.occupational
c.psychographic (page 235, easy)
d.behavioral
56. A marketing manager for the Mars candy company is studying a single-country
psychographic profile that includes segment labels such as "Cossacks" and
"kuptsy." What country does the survey cover:
a.India
b.Japan
c.Russia (pp. 236-237, easy)
d.China
e.Vietnam
57."Generation Y," "Golden Grays," and "Globerations" are three market segments
that have been described in:
a.Japan
b.Russia
c.the European Union (page 238, medium)
d.the United States
e.Brazil
58.Which of the following is NOT a characteristic associated with the Golden Grays
segment in Europe's single market:
a.consider it important to mix fun and work
b.enjoy high-tech gaming
c.deluged with passive information
d.expect biotechnology to extend life expectancy
e.all of the above are characteristic (page 238, medium)
59.Which of the following is not a characteristic associated with the Generation Y
segment in Europe's single market:
a.share numerous family activities (page 238, hard)
b.less reverence toward established authorities
c.view leisure time in "pay-per-play" terms
d.increasingly tech-savvy
60.Tambrands markets feminine hygiene products around the globe. The company
divides markets on the basis of past, present, and future product usage. Which kind of segmentation does this represent:
a.demographic
b.occupational
c.psychographic
d.behavioral (page 238, medium)
e.Geographic
Chapter 10 – Product and Brand Decisions
True/False
1.Sony is the world’s leading marketer of flat-panel TVs.
a.True
b.False (page 328, easy)
2.The "deep, throaty rumble" produced by Harley-Davidson motorcycles is an
example of an intangible product attribute.
a.True (page 329, easy)
b.False
3.Intangible product attributes play a limited role in global marketing.
a.True
b.False (page 329, medium)
4.Brand equity is an example of a tangible product attribute.
a.True
b.False (page 330, easy)
5.McDonald’s famous Golden Arches are a brand symbol.
a.True (page 331, easy)
b.False
6.The brewing industry is an example of an industry in which local brands can and
do thrive.
a.True (page 332, easy)
b.False
7.All of the consumer electronics products produced by Japanese giants Casio and
Sony are examples of global products.
a.True
b.False (pp. 332-333, medium)
8.All of the beverages marketed by Coca-Cola in various countries can be classified
as "global products."
a.True
b.False (pp. 332-333, medium)
9.In India, the Coca-Cola Company acquired the local Thums Up cola brand. This
action violates a fundamental principal in global marketing: By definition, global companies only market global brands.
a.True
b.False (pp. 332-333, medium)
10.In addition to marketing its Coca-Cola beverage as a global brand, the Coca-Cola
company also develops local products and brands for individual country markets.
a.True (pp. 332-333, medium)
b.False
11. A Brazilian cigarette brand that is widely available in South America fits the
definition of an international brand.
a.True (page 333, easy)
b.False
12.Global marketers must recognize that global brands will often compete
head-to-head with local brands in individual country markets.
a.True (pp. 333-334, medium)
b.False
13.Global marketers have found that global brands generally drive local brands out of
business in individual country markets.
a.True
b.False (pp. 333-334, medium)
14.In a head-to-head match-up, a global brand will always overpower a local brand in
individual country markets.
a.True
b.False (pp. 333-334, medium)
15.Sony is a global brand and the company's portable MP3 player is an example of a
global product.
a.True (page 334, medium)
b.False
16.Sony marketers created the Walkman brand as a global brand from day one of the
product launch.
a.True
b.False (page 334, medium)
17.The name "Sony Walkman" is an example of global cobranding.
a.True
b.False (page 334, medium)
18.The name "Sony Walkman" is an example of global combination branding.
a.True (page 334, medium)
b.False
19.British entrepreneur Richard Branson has built a business empire using a brand
extension approach.
a.True (page 335, medium)
b.False
20. A recent Harvard Business Review article urges all companies to develop global
brands.
a.True
b.False (page 336, medium)
21.According to the Interbrand study of global brands cited in Chapter 10, Coca-Cola
ranks first in a list of the world's most valuable brands.
a.True (page 336, medium)
b.False
22.According to the Interbrand study cited in Chapter 10, Marlboro ranks first in a list
of the most valuable global brands.
a.True
b.False (page 336, medium)
23.According to the Interbrand study cited in Chapter 10, Microsoft ranks first in a list
of the most valuable global brands.
a.True
b.False (page 336, medium)
24.In Great Britain, Mars Inc. recently changed the names of two popular candy bars
to Snickers and Twix to achieve consistency with brand name usage in the United States.
a.True (page 338, medium)
b.False
25.In Great Britain, Mars Inc. recently changed the names of its Snickers and Twix
candy bars to Marathon and Raider to distinguish the products from those
marketed in the United States.
a.True
b.False (page 338, medium)
26. A product can only be classified as "global" if it is advertised the same, sold for the
same price, and distributed through the same channels, in every country.
a.True
b.False (pp. 338-339, medium)
27. A company wishing to create a global brand should pursue total product
uniformity throughout the world.
a.True
b.False (pp. 338-339, medium)
28.In some instances, local brands can be transformed into global brands.
a.True (page 339, medium)
b.False
29.Recent research has confirmed that the levels in Maslow's hierarchy are the same
in the United States and Asia.
a.True
b.False (pp. 339-341, medium)
30.Recent research has suggested that, in Asia, the highest level needs in Maslow’s
hierarchy pertain to status.
a.True (pp. 339-341, medium)
b.False
Multiple Choice
31.Generally speaking, which of the following statements is true concerning product
attributes:
a.Tangible product attributes are more important than intangible ones.
b.Intangible product attributes are more important than tangible ones.
c.Both tangible and intangible product attributes are important. (page
329, medium)
d.Neither tangible nor intangible product attributes are important.
32.Advertising, company name, news stories, and promotion activities are a few of the
elements that contribute to a company’s:
a.logo development
b.brand equity
c.brand image (page 330, medium)
d.cobranding effort
33.It has been said that, if terrorists succeeded in destroying every Coca-Cola
production facility on the planet, company executives could approach virtually any bank and borrow the billions necessary to rebuild the company. This is a reflection of which concept:
a.brand equity (page 330, medium)
b.cobranding
c.brand image
d.brand extension
e. brand loyalty
34.____________ represents the cumulative added value of a comp any’s investment
in the marketing of a brand over time.
a.Brand extensions
b.Cobranding
c.Brand image
d.Brand equity (page 330, medium)
e.Brand loyalty
35.The sum of impressions about a product or brand that come from all information
sources and cues is known as:
a.brand extensions
b.cobranding
c.brand image (page 330, medium)
d.brand equity
e.brand loyalty
36.For nearly 60 years, DeBeers has used the advertising slogan “A diamond is
forever.” Such a long-term investment in marketing is central to developing:
a.brand extensions
b.cobranding
c.local brands
d.brand equity (page 330, medium)
e.brand marks
37.In recent years, the Coca-Cola Company has been plagued by such problems as
employee lawsuits over diversity issues, deteriorating bottler relations, a production stoppage, and a disastrous product recall in Belgium. Taken together, these
problems could dilute the company’s __________.
a.brand extension program
b.cobranding efforts
c.international brands
d.brand equity (page 330, medium)
e.product/communications extension strategy
38.The Nike swoosh, McDonald’s golden arches, and Apple’s rainbow apple are all
examples of:
a.non-word marks
b.brand extensions
c.brand symbols
d.global brands
e.both a and c (page 331, medium)
39.As discussed in Chapter 10, British American Tobacco’s experience with the Jan
Sobieski brand in Poland demonstrates that:
a.Local brands can be transformed into global brands.
b.Global brands are quickly pushing aside established local brands.
c.Global companies should be alert to possibilities for creating their own
local brands. (page 332, medium)
d. It is difficult to launch new brands in developing countries with
transitional economies.
40.Global products offer which of the following advantages:
a.manufacturing cost savings
b.improved quality
c.improved customer preference
d.all of the above (pp. 333-334, medium)
41.What marketing lesson can be learned from the history of the Sony Walkman:
a.Local products can be transformed into global ones.
b.Having multiple local brand names for a global product can hurt sales.
(page 334, medium)
c.Chairman Morita had poor market instincts.
d. A global company should not use tiered branding.
42.Sony is famous worldwide for its Walkman? personal stereo. Which of the
following reflects the most accurate use of marketing terminology:
a.“Sony,” “Walkman,” and “personal stereos” are global brands.
b.“Sony” is a global brand, “Walkman” and “personal stereo” are global
products.
c.“Sony,” “Walkman,” and “personal stereos” are global products.
d.“Sony” and “Walkman” are global brands, “personal stereo” is a
global product. (page 334, medium)
43.Around the world, various brands of personal computers are sold with Pentium
processors. This fact is often used as a selling point, with advertising that
proclaims “Intel Inside.” Which branding concept does s uch advertising reflect:
a.brand equity
b.cobranding (pp. 334-335, medium)
c.brand image
d.brand extension
e.tiered branding
44.The Lexus LX 470 sport utility vehicle is available with an optional $1,200 Mark
Levinson premium audio system. Which branding concept does this represent:
a.brand equity
b.cobranding (pp. 334-335, medium)
c.brand image
d.brand extension
e.tiered branding
45.British entrepreneur Richard Branson has built a global business empire by:
a.relying on brand extension (page 335, medium)
b.being the first to use smart cards in major markets
c.developing local brands
d.avoiding consumer businesses with established leaders
46.Which of the following is NOT in the top five of the world’s most valuable brands
and determined by Interbrand:
a.Sony (page 336, hard)
b.Microsoft
c.Coca-Cola
d.GE
e.Nokia
47.Maslow’s hierarchy is applicable to global marketing because it can help explain
how:
a.Basic human needs can drive the development of global products. (pp.
339-340, medium)
b.“Self-actualization” is the highest-order need in Japan as well as Western
nations.
c.Status needs in different countries can only be fulfilled with localized
products.
d.“Luxury badging” is irrelevant to companies marketing in Asia.
48.Alfred Zeien, former chairman of Gillette, once noted that his company’s Parker
Pen unit does not have to develop a special model for Malaysia because shoppers worldwide seek the same things when buying a gift that will serve the recipient as
a status symbol. This insight relates to which level of Maslow’s hierarchy of
needs:
a.physiological
b.safety
c.social
d.esteem (pp. 339-340, medium)
e.self-actualization
https://www.docsj.com/doc/af18358012.html,paring the traditional formulation of Maslow’s hierarchy with the results of
current research on the consumer needs and motivation in Asia, which of the
following is correct:
a.The lowest 2 levels of the hierarchy are the same in the traditional
and Asian versions. (pp. 339-341, hard)
b.The lowest 3 levels of the hierarchy are the same in the traditional and
Asian versions.
c.The lowest 4 levels of the hierarchy are the same in the traditional and
Asian versions.
d.The five levels in the traditional formulation apply equally in the West and
in Asia.
50.Which of the following shows the ordering of need levels from lowest to highest in
the Asian formulation of Maslow’s hierarchy:
a.physiological—>affiliation—>status—>safety—> admiration
b.affiliation—>status—>safety—>admiration—> physiological
c.physiological—>safety—>affiliation—>admiration—>status (page
341, hard)
d.status—>admiration—>physiological—>affiliation—>safety
51.Which of the following is NOT one o f the levels in the Asian version of Maslow’s
hierarchy:
a.physiological
b.safety
c.affiliation
d.admiration
e.self-actualization (page 341, hard)
52.Which of the following could hinder the success of products labeled “Made in
Russia” or “Made in South Africa” in export markets:
a.negative country-of-origin bias (pp. 341-343, easy)
b.no possible quality/price positioning
c.low acceptance of private brands
d.high product saturation levels in global markets
53.The success of many imported beers in the U.S. “premium” segment illustrates the
influence of:
a.attitudes towards foreign products (pp. 341-343, easy)
b.price advantage because of currency fluctuations
https://www.docsj.com/doc/af18358012.html,plementarity
d.penetration pricing strategy
54.The marketers of Corona beer achieved great success in the U.S. market by:
a.retaining the bottle design originally used in Mexico (page 344,
medium)
b.hiring Hispanic movie stars as endorsers
c.distributing Corona in returnable bottles
d.changing the brewing recipe to conform to American palates
55.Gillette’s MACH3 razor and “Best a Man Can Get” communications theme
exemplify the _________ strategy.
a.product-communications extension (pp. 348-349, medium)
b.product extension-communications adaptation
c.product adaptation-communications extension
d.dual adaptation
e.product invention
56.Generally speaking, which of the following product categories represents the best
potential for extension into international markets without adaptation:
https://www.docsj.com/doc/af18358012.html,panion products
b.food products
c.industrial products (pp. 348-349, medium)
d.intangible products
57.Dry soup mixes that have long been popular in Europe are marketed as sauces or
dips in the U.S. This is an example of the _________ strategy.
a.product-communications extension
b.product extension-communications adaptation (pp. 349-350,
medium)
c.product adaptation-communications extension
d.dual adaptation
e.product invention
58.Stella Artois is a Belgian beer brand described by locals as a run-of-the-mill brew
that is “fit for peasants.” Accordingly, a pint of Stella sells for the equivalent of
$1.10 in Brussels. By contrast, in New York, London, and other cities, Stella
Artois is marketed as a premium beer that sells for as much as $8 per glass at
upscale bars. As described here, which of the following strategies is being used to market Stella outside of Belgium:
a.product-communications extension
b.product extension-communications adaptation (pp. 349-350,
medium)
c.product adaptation-communications extension
d.dual adaptation
e.product invention
59.Campbell’s has been marketing soup in Japan for more than 40 years. Early on,
Japanese consumers were not receptive to ads featuring the Campbell Kids and the “M’m M’m Good” slogan. This compelled Campbell’s to develop ads featuring a talking soup can known as “Mr. Campbell.” Campbell’s also developed soup
varieties for Japan with fish as the main protein source and spices that reflect local preferences. As described here, which of the following strategies has Campbell’s used in Japan:
a.product-communications extension
b.product extension-communications adaptation
c.product adaptation-communications extension
d.product-communication adaptation (page 351, easy)
e.product invention
60.Prior to 2004, Nokia launched different cell phone products in different countries
at different times. Nokia also used different advertising images and messages in
different countries. Which approach to the world marketplace was Nokia using:
a.product-communications extension
b.product extension-communications adaptation
c.product adaptation-communications extension
d.product-communication adaptation (page 351, easy)
e.product invention
Chapter 11 - Pricing Decisions
True/False
https://www.docsj.com/doc/af18358012.html,ernment regulations keep prices of prescription drugs low in many countries.
a.True (page 364, easy)
b.False
2.The importation of prescription drugs into the United States is a violation of
federal law.
a.True (page 364, easy)
b.False
3.The manufacturing cost of a product creates a price ceiling that marketers must not
exceed.
a.True
b.False (pp. 364-365, medium)
https://www.docsj.com/doc/af18358012.html,parable products from a company's competitors create a price ceiling that
constrains a marketer's ability to raise prices.
a.True (pp. 364-365, medium)
b.False
5.The law of one price applies to most products and services that are marketed
worldwide today.
a.True
b.False (page 365, medium)
6.The law of one price applies to commercial aircraft, the market for which is truly
global in nature.
a.True (page 365, medium)
b.False
7.The advent of the euro will contribute to cross border price transparency in the
12-country Euro zone.
a.True (page 365, medium)
b.False
8.Budweiser is the world's leading beer brand with more than 50 percent share of the
global market.
a.True
b.False (page 366, medium)
9.Luxury goods companies such as LVMH rely heavily on profit-based pricing
objectives and strategies.
a.True (pp. 366-367, medium)
b.False
10.When Sony launched its Betamax VCRs in the United States in the 1970s, it used a
market skimming strategy.
a.True (pp. 366-367, medium)
b.False
11.When Sony launched its Betamax VCRs in the United States in the 1970s, it used a
penetration pricing strategy.
a.True
b.False (pp. 366-367, medium)
12."Market skimming" is a strategy that uses low prices as a competitive weapon to
gain market position.
a.True
b.False (pp. 366-367, medium)
13.According to the discussion in Chapter 11, Sony used penetration pricing when it
launched the Walkman personal stereo in 1979.
a.True (pp. 367-368, medium)
b.False
14.According to the discussion in Chapter 11, Sony used penetration pricing when it
launched portable CD players in the mid-1980s.
a.True (pp. 367-368, medium)
b.False
15.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.
a.True (page 368, medium)
b.False
16.If the terms of trade for an export transaction specify "ex-works," the
exporter/seller pays all expenses incurred until the product is delivered to the
importer/buyer's warehouse.
a.True
b.False (page 371, hard)
17.To protect against possible losses from currency exchange rates, exporters add a
charge known as "CIF" to the ex-works price of most export shipments.
a.True
b.False (page 371, hard)
18.To protect against possible losses from currency exchange rates, exporters add a
charge known as "CAF" to the ex-works price of most export shipments.
a.True (pp. 371-372, hard)
b.False
19.Currency fluctuations mean that companies doing business in global markets
should regularly review prices and make adjustments when conditions dictate.
a.True (pp. 373-374, easy)
b.False
20.When the yen reaches "parity" with the dollar, the exchange rate is ￥1=$1.
a.True
b.False (pp. 373-374, easy)
21.Suppose the Japanese yen is weak in relation to the U.S. dollar. Japanese firms
should be able to stress price benefits for products exported to the U.S.
a.True (pp. 373-374, medium)
b.False
22.Suppose the Japanese yen is weak in relation to the U.S. dollar. Rather than
stressing price benefits, Japanese companies exporting to the U.S. should
emphasize quality improvements and after sales service.
a.True
b.False (pp. 373-374, hard)
23.In the mid-1990s, the U.S. dollar/British pound exchange rate was $1.60 to ￡1. By
2004, the pound had strengthened to $1.86 to ￡1. All other things being equal, this means that Jaguar dealers in the United States will be forced to raise prices.
a.True (pp. 373-374, hard)
b.False
24.Improved price transparency in the euro zone is expected to lead to greater price
disparities.
a.True
b.False (pp. 375-376, medium)
25.In countries where high inflation is the rule, companies should make price
adjustments to maintain operating margins.
a.True (pp. 376-377, easy)
b.False
26.When Reebok began marketing athletic shoes in India, it offered them at low
prices that would be affordable for the mass market.
a.True
b.False (page 377, medium)
27.Germany has traditionally severely restricted competition in a number of
industries.
a.True (pp. 378-379, medium)
b.False
28.Thanks to the Internet and globalization, the German government has recently
repealed laws limiting retailers' freedom to discount prices and give away free
merchandise.
a.True (page 379, medium)
b.False
29.Dieter Zietsche, sales chief at Germany's Mercedes-Benz, once said that, in setting
prices, "We know what the customer wants, and he will have to pay for it." This is an example of an ethnocentric pricing policy.
a.True (pp. 380-381, medium)
b.False
30.When subsidiary country managers are given broad discretion to set prices in their
markets, a polycentric pricing strategy is in evidence.
a.True (pp. 380-381, medium)
b.False
Multiple Choice
31.For which of the following products does a true global market exist such that the
"law of one price" holds true:
https://www.docsj.com/doc/af18358012.html,pact discs
b.beer
https://www.docsj.com/doc/af18358012.html,mercial aircraft (page 365, medium)
d.prescription drugs
32.For which of the following does a true global market exist such that the "law of one
price" holds true:
https://www.docsj.com/doc/af18358012.html,mercial aircraft
b.crude oil
c.integrated circuits
d.none of the above
e.all of the above (page 365, medium)
33.The global beer industry would best be described as a ________________
industry.
a.fragmented (pp. 365-366, medium)
b.concentrated
c.multi-local
d.cottage
34.Anheuser-Busch is the world's largest brewer; in the United States, its brands
command nearly 50 percent of the market. Which of the following most accurately states the global market share of the Budweiser brand.
a. 4 percent (pp. 365-366, medium)
b.14 percent
c.24 percent
d.34 percent
e.44 percent
35.Which of the following illustrates non-financial pricing objectives:
a.market coverage
b.return on investment
c.market share
d.profit maximization
e.both a and c (pp. 366-367, medium)