International Business: Environments and Operations, 16e (Daniels et al.

)
Chapter 17 Marketing Globally

1) Tommy Hilfiger has encountered some European resistance to the sale of its products because
________.
A) many European consumers associate France and Italy, rather than the United States, with
upscale fashions
B) its customary prices, especially for the German market, have been out of reach for its target
market
C) it has refused to adjust products to fit the tastes and needs of local consumers
D) it has depended on self-service in its company-owned stores
Answer: A
Diff: 3
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Diverse and multicultural work environments

2) International marketing differs from domestic marketing in that ________.

A) marketing principles are different
B) consumers prefer domestically made merchandise
C) environmental variations require applying principles differently
D) low prices are a more important competitive factor in foreign markets
Answer: C
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Diverse and multicultural work environments

3) In comparing international and domestic marketing, it is best to state that ________.

A) similar principles are at work
B) mass-market orientations are most effective
C) principles differ for product and price, but not for advertising
D) the differences between them can be studied through gap analysis
Answer: A
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Diverse and multicultural work environments

1
Copyright © 2018 Pearson Education, Inc.
4) When selling a commodity for which there is little possibility of product differentiation, a
company would likely use which of the following orientations internationally?
A) customer orientation
B) production orientation
C) sales orientation
D) strategic marketing orientation
Answer: B
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

5) All of the following are true about passive exports EXCEPT that ________.
A) companies adapt their products very little to foreign consumer preferences
B) companies frequently export only if they have excess capacity
C) companies generally quote higher prices on exports than on domestic sales
D) they refer to the filling of unsolicited requests from abroad
Answer: C
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

6) Companies using a sales orientation find their greatest ability to sell the same product in more
than one country when ________.
A) promotional programs are identical in each country
B) consumer characteristics are similar
C) the product is a household item
D) the product has a low price relative to incomes
Answer: B
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

2
Copyright © 2018 Pearson Education, Inc.
7) Which of the following would be an example of a customer orientation in international
marketing?
A) A cosmetics company bans animal testing of its products to gain goodwill.
B) A fruit company brands the bananas it sells in foreign and domestic markets.
C) A beer company makes non-alcoholic beer for a country that bans the sale of alcohol.
D) A plastics manufacturer makes some components to the specifications of a foreign company.
Answer: D
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Application
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Application of knowledge

8) Pulte Homes adapts its marketing to foreign differences by making minor changes to
bathrooms and outdoor patios. However, Pulte Homes uses the same floor plans and exterior
attributes in all countries to gain economies of standardization. Pulte Homes most likely follows
a ________.
A) social marketing orientation
B) sales orientation
C) strategic marketing orientation
D) production orientation
Answer: C
Diff: 2
Learning Outcome: Explain the functions of marketing in international business
Skill: Application
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Application of knowledge

9) Which of the following BEST describes a company that follows a social marketing
orientation?
A) It considers political and safety dimensions of its products.
B) It is a not-for-profit entity based in a developed country.
C) It is a government-owned entity from an emerging economy.
D) It generates sales to niche markets using social networking sites.
Answer: A
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

3
Copyright © 2018 Pearson Education, Inc.
10) ________ is the most common way of identifying market segments within a country.
A) Psychographics
B) The Internet
C) Gap analysis
D) Demographics
Answer: D
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

11) Which of the following is most likely to occur when a firm segments markets by country?
A) achieving objectives by following a sales orientation strategy within that market
B) initially targeting the high-income consumers within that market
C) overlooking similarities between different countries
D) introducing multiple products to assess demand
Answer: C
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Diverse and multicultural work environments

12) What is the most likely reason that sales to a mass market would be necessary for a company
selling internationally?
A) gaining economies in production and distribution
B) earning initial sales in emerging economies
C) eliminating excess domestic capacity
D) gaining brand recognition
Answer: A
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

4
Copyright © 2018 Pearson Education, Inc.
13) When a company identifies a market segment on a global basis, such as a segment based on
income, it will likely ________.
A) encounter a similar percentage of the population in each country within that segment
B) find that a niche market in one country may be a mass market in another
C) find that the market in each country is so dispersed that distribution is difficult
D) be aiming at a mass market in each country
Answer: B
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

14) Which of the following is NOT one of the three personality traits that specifically affect
international marketing?
A) globalism
B) materialism
C) ethnocentrism
D) cosmopolitanism
Answer: A
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting

15) International marketing is unlike domestic marketing because the basic principles are
completely different.
Answer: FALSE
Diff: 1
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

16) The marketing approach a company takes internationally should be compatible with its
overall aims and strategies.
Answer: TRUE
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Written and oral communication

5
Copyright © 2018 Pearson Education, Inc.
17) In a production orientation, a company focuses on efficiency and product quality when
selling abroad.
Answer: TRUE
Diff: 1
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

18) Passive exports involve the filling of unsolicited orders from abroad.
Answer: TRUE
Diff: 1
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

19) A company that adapts its marketing to foreign differences without deviating very much
from its experience is following a customer orientation.
Answer: FALSE
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

20) Under a strategic marketing orientation, a company considers potential environmental,

health, social, and work-related problems from the sale of its products abroad.
Answer: FALSE
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

21) The most common way of identifying market segments is through demographics.
Answer: TRUE
Diff: 2
Skill: Concept
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

6
Copyright © 2018 Pearson Education, Inc.
22) In a short essay, discuss the international application of five common marketing orientations.
Answer:
a. Production orientation: Companies focus primarily on production—either efficiency or high
quality—with little emphasis on marketing. There is little analysis of consumer needs; rather,
companies assume customers want lower prices or higher quality.
b. Sales orientation: A company tries to sell abroad what it can sell domestically on the
assumption that consumers are sufficiently similar globally. A company may make this
assumption because it lacks information about the foreign markets. This orientation differs from
the production orientation because of its active rather than passive approach to promoting sales.
c. Customer orientation: Management usually is guided by answers to questions such as
"Should the company send some exports abroad?" "Where can the company sell more of Product
X?" In contrast, a customer orientation asks "What can the company sell in Country A?"
d. Strategic marketing orientation: Most companies committed to continual, rather than
sporadic, foreign sales adopt a strategy that combines production, sales, and consumer
orientations. Instead of merely trying to sell a domestic product abroad, the company adjusts this
product to foreign needs.
e. Social marketing orientation: Companies with social marketing orientations realize that
successful international marketing requires serious consideration of potential environmental,
health, social, and work-related problems that may arise when selling or making their products
abroad.
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Critical Thinking
Objective: 17-1 Classify international marketing strategies in terms of marketing orientations,
segmentation, and targeting
AACSB: Analytical thinking

23) Why are MNEs criticized for exporting to developing countries the same products they sell
in developed countries?
A) The prices of the products are too low in developing countries.
B) Many of the products are deemed to be unnecessary for low income consumers.
C) The sales enhance local company failures in developing countries.
D) Developing countries need local production rather than imports.
Answer: B
Diff: 2
Learning Outcome: Discuss the role of ethics and social responsibility in international business
Skill: Concept
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Ethical understanding and reasoning

7
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24) Some critics complain that MNEs introduce and promote superfluous products in developing
countries, causing consumers there to buy these products rather than things they need for their
health. People answering this criticism have contended that ________.
A) consumers don't buy things because of promotion
B) the amount spent on so-called superfluous products is insignificant
C) it is impossible to draw a line between people who can afford and people who can't afford
these products
D) these products serve to motivate people in developing countries to work harder
Answer: C
Diff: 2
Learning Outcome: Discuss the role of ethics and social responsibility in international business
Skill: Concept
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Ethical understanding and reasoning

25) Agreements on international product standards are hampered by all the following factors
EXCEPT ________.
A) the fact that standardization increases production costs
B) consumer reluctance to change
C) the cost of redesigning and retooling
D) governments' desires to protect investments
Answer: A
Diff: 2
Skill: Concept
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Analytical thinking

26) What is the most likely reason that companies such as Gillette (razor blades) and 3M
(scouring pads) sell products in smaller package sizes in some developing countries?
A) Family size is small in those countries.
B) Some governments require the smaller sizes.
C) In those countries, many consumers lack sufficient cash to buy larger quantities.
D) These are products for which the cost of altering package size is negligible.
Answer: C
Diff: 2
Learning Outcome: Explain the functions of marketing in international business
Skill: Application
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Reflective thinking

8
Copyright © 2018 Pearson Education, Inc.
27) Firms alter their products for foreign markets for all of the following reasons EXCEPT
________.
A) the home country export requirement
B) religious differences abroad
C) weak infrastructures in some countries
D) to respond to legal requirements
Answer: D
Diff: 2
Skill: Concept
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Analytical thinking

28) Critics complain that pharmaceutical research budgets emphasize non-debilitating conditions
common in developed countries rather than life-threatening diseases common in developing
countries. People answering this criticism have contended that ________.
A) correction of developed country conditions, such as balding, are necessary to stimulate
developing country innovations that push global economic growth
B) very small portions of research budgets actually target these non-debilitating conditions
C) by being located almost entirely in developed countries, pharmaceutical companies lack
access to locations where they can study diseases such as malaria and sleeping sickness
D) pharmaceutical companies cannot recoup expenses for research on some of the developing
country problems, so governmental research centers and nonprofit foundations should handle this
research
Answer: D
Diff: 3
Skill: Concept
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Ethical understanding and reasoning

29) Why might companies sometimes narrow the product line that they sell in a foreign country
as compared to the product line they sell at home?
A) Government restrictions typically limit how many products a company can sell locally.
B) Selling cost per unit increases substantially when a company offers a broad product line.
C) Not all products have sufficient demand in every market.
D) Firms cannot sell products with product line gaps.
Answer: C
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Concept
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Analytical thinking

9
Copyright © 2018 Pearson Education, Inc.
30) If a company's foreign sales per customer is small compared to those in its domestic market,
it should most likely ________.
A) introduce a larger family of products
B) narrow the product line offered to the market
C) reconfigure the product life cycle marketing strategy
D) shift additional salespeople to the domestic market
Answer: A
Diff: 2
Learning Outcome: Explain the functions of marketing in international business
Skill: Concept
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Analytical thinking

31) There are more cost savings for international branding standardization than for international
product standardization.
Answer: FALSE
Diff: 2
Skill: Concept
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Analytical thinking

32) Different country standards, such as safety regulations, add complexity to whether
companies decide to use a globally standardized product.
Answer: TRUE
Diff: 1
Skill: Concept
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Diverse and multicultural work environments

33) Although the broadening of product lines increases distribution efficiencies, too broad a line
can create problems in selling.
Answer: TRUE
Diff: 2
Skill: Concept
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Analytical thinking

10
Copyright © 2018 Pearson Education, Inc.
34) In a short essay, describe the various reasons for product alteration.
Answer:
a. Legal reasons: Explicit legal requirements are the most obvious reasons for altering products
for foreign markets. The exact requirements vary widely by country, but are usually meant to
protect consumers. One of the more cumbersome product alterations for companies is adjusting
to different laws on packaging that protect the environment. Marketing managers must also
watch for the indirect legal requirements that may affect product content or demand.
b. Cultural reasons: Marketing managers find it difficult to determine in advance whether
consumers in foreign markets will accept new or different products because of differences in
consumer cultures.
c. Economic reasons: If foreign consumers lack sufficient income, they may not be able to buy
the product the MNE sells domestically. The company therefore may have to design a cheaper
model. Even if a market segment has sufficient income to purchase the same product the
company sells at home, differences in infrastructure may require product alterations.
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Critical Thinking
Objective: 17-2 Discuss the pros and cons of adaptation versus global standardization of
products
AACSB: Reflective thinking

35) Diversity of international markets and currency instability have the greatest effect on
________.
A) promotion
B) R&D
C) branding
D) pricing
Answer: D
Diff: 2
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Diverse and multicultural work environments

36) A company would most likely export at a price lower than its production and distribution
costs in order to ________.
A) use a skimming strategy abroad before using one domestically
B) test a market before making a big commitment
C) use a cost-plus strategy globally
D) encourage gray market sales
Answer: B
Diff: 2
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Analytical thinking

11
Copyright © 2018 Pearson Education, Inc.
37) Executives want to set export prices below those that the firm charges domestically. What is
the most likely problem the company will experience?
A) WTO antidumping regulations
B) consumer complaints
C) FDI restrictions
D) high tariffs
Answer: A
Diff: 2
Learning Outcome: Discuss the role of ethics and social responsibility in international business
Skill: Application
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Ethical understanding and reasoning

38) Dixon Electronics recently introduced a new computer with features unavailable from other
products on the market. Dixon is charging a very high price for the computer and has plans to
progressively lower the price over the next year. Dixon is most likely using a ________ strategy.
A) cost-plus
B) skimming
C) penetration
D) diversification
Answer: B
Diff: 2
Learning Outcome: Explain the functions of marketing in international business
Skill: Application
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Application of knowledge

39) Foreman Enterprises produces and sells a variety of products for the home. Foreman recently
introduced a new detergent at a very low price with the hope that a high number of consumers
will try it out. Foreman is most likely using a ________ strategy.
A) cost-plus
B) skimming
C) penetration
D) diversification
Answer: C
Diff: 2
Learning Outcome: Explain the functions of marketing in international business
Skill: Application
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Application of knowledge

12
Copyright © 2018 Pearson Education, Inc.
40) Why does price escalation most likely occur in exporting?
A) The WTO requires that prices increase.
B) Companies rely on skimming price strategies.
C) Greater distances and more intermediaries increase distribution costs.
D) Uncertain currency value changes necessitate charging higher prices.
Answer: C
Diff: 2
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Analytical thinking

41) Which of the following would LEAST likely be caused by a high inflation rate?
A) rules against increasing export prices
B) inability to quote prices in letters or catalogs
C) difficulty making changes to vending machines
D) necessity to set an equivalent value in a stable currency
Answer: A
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Analytical thinking

42) What is the gray market?

A) sales targeted to elderly consumers
B) selling goods through unofficial distributors
C) a legal black market run by governments
D) selling counterfeit merchandise
Answer: B
Diff: 2
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Analytical thinking

43) What is the LEAST likely reason that international companies are concerned about the gray
market?
A) undermining the long-term viability of the distributorship system
B) causing a firm's operations in different countries to compete against each other
C) requiring companies to make frequent price adjustments to capture the market
D) preventing companies from charging what the market will bear in each country
Answer: C
Diff: 3
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Analytical thinking

13
Copyright © 2018 Pearson Education, Inc.
44) Market diversity, government intervention, and currency fluctuations complicate
international pricing decisions.
Answer: TRUE
Diff: 2
Learning Outcome: Explain the functions of marketing in international business
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Diverse and multicultural work environments

45) Antidumping regulations of the WTO allow countries to establish restrictions against any
exports that fail to meet quality standards.
Answer: FALSE
Diff: 2
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Analytical thinking

46) A company that exports products at a price lower than its domestic market price is using a
skimming policy abroad.
Answer: FALSE
Diff: 2
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Analytical thinking

47) A company that prices its products at a desired margin over cost is using a cost-plus strategy.
Answer: TRUE
Diff: 2
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Analytical thinking

48) When the currency value in the location where a company produces becomes stronger, the
company most likely needs to adjust its margins downward to be competitive in export markets.
Answer: TRUE
Diff: 2
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Analytical thinking

14
Copyright © 2018 Pearson Education, Inc.
49) E-commerce facilitates the ability of consumers to compare prices from different
distributors, which will most likely result in lower prices on products.
Answer: TRUE
Diff: 2
Learning Outcome: Explain the functions of marketing in international business
Skill: Concept
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Information technology

50) What is the gray market? Why are companies concerned about it?
Answer: By selling goods through unofficial distributors, the gray market can undermine the
longer-term viability of the distributorship system, cause a company's plants in different
countries to compete with each other, and make it harder for companies to charge what the
market will bear.
Diff: 3
Skill: Critical Thinking
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Analytical thinking

51) How do foreign government regulations affect pricing and promotion for international
businesses?
Answer: Government regulations may directly or indirectly affect the prices that companies
charge. International pricing is further complicated because of currency value fluctuations,
differences in product preferences, price escalation in exporting, and variations in fixed versus
variable pricing practices. In regards to promotion, what is legal advertising in one country may
be illegal elsewhere. The differences result mainly from varying national views on consumer
protection, competitive protection, civil rights promotion, standards of morality and behavior,
and nationalism. For example, there are many products that some societies view as being in
sufficiently bad taste that they restrict advertisement of them, such as whether they can be
advertised on television and, if so, at what time. In terms of consumer protection, policies differ
on the amount of deception permitted and what can be advertised to children.
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Synthesis
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Diverse and multicultural work environments

15
Copyright © 2018 Pearson Education, Inc.
52) What factors makes international pricing and distribution more complex than domestic
pricing and distribution?
Answer: International pricing is difficult because of different degrees of governmental
intervention, greater diversity of markets, price escalation of exports, changing values of
currencies, differences in fixed versus variable pricing practices, and relations with suppliers.
MNEs also find distribution one of the most difficult functions to standardize internationally, for
several reasons. Each country has its own distribution system, which an MNE finds difficult to
modify because it is entwined with the country's cultural, economic, and legal environments.
Some of the factors that influence the distribution of goods in a given country are citizens'
attitudes toward owning their own store, the cost of paying retail workers, legislation restricting
store sizes and operating hours, different effects of laws on chain stores and individually owned
stores, the trust owners have in their employees, the efficacy of the postal system, the quality of
the infrastructure system, and the financial ability to carry large inventories.
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Synthesis
Objective: 17-3 Describe pricing complexities when selling in foreign markets
AACSB: Diverse and multicultural work environments

53) Which of the following BEST depicts a push strategy for a U.S. company selling in Mexico?
A) Tupperware selling through parties in homes
B) Gillette selling razor blades through supermarkets
C) KFC selling chicken dinners at its franchises
D) Google advertising on television
Answer: A
Diff: 2
Skill: Application
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Analytical thinking

54) A push strategy for international sales is most likely preferable to a pull strategy when
________.
A) there are few prohibitions on advertising
B) the price of the product is high relative to incomes
C) people rely on friends' opinions before buying a product
D) literacy rates are high
Answer: B
Diff: 2
Skill: Application
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Analytical thinking

16
Copyright © 2018 Pearson Education, Inc.
55) A pull rather than a push strategy is most likely preferable when ________.
A) self-service is not predominant
B) the price of a product is high relative to incomes
C) there are few governmental restrictions on advertising
D) there are a large number of languages and a low literacy rate
Answer: C
Diff: 2
Skill: Application
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Written and oral communication

56) Promotion using direct selling techniques is ________.

A) a pull strategy
B) necessary where inflation is high
C) a standardized advertising technique
D) a push strategy
Answer: D
Diff: 1
Skill: Concept
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Written and oral communication

57) Which of the following BEST describes globally standardized advertising?

A) a campaign that is identical in all markets
B) a campaign that meets the legal and ethical standards of all countries
C) a campaign that is similar but not identical from market to market
D) a campaign that depends primarily on push rather than pull promotion
Answer: C
Diff: 2
Skill: Concept
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Written and oral communication

17
Copyright © 2018 Pearson Education, Inc.
58) All of the following are possible advantages of globally standardized advertising programs
EXCEPT ________.
A) cost savings
B) improvement of local-level quality
C) avoidance of legal impediments
D) faster entry into different markets
Answer: C
Diff: 2
Learning Outcome: Explain the functions of marketing in international business
Skill: Concept
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Written and oral communication

59) Increasingly, media reach audiences in more than one country, such as through satellite TV
that reaches multiple countries simultaneously. What is NOT a problem of advertising on these
media?
A) Because of reaching so many households, the cost is prohibitive.
B) The product may not be available everywhere it is advertised.
C) A company may not be able to advertise prices because they may differ among countries.
D) The advertisement may reach countries using different languages.
Answer: B
Diff: 2
Learning Outcome: Explain the functions of marketing in international business
Skill: Concept
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Written and oral communication

60) In advertisements aimed at different countries, companies sometimes use actors who do not
speak, along with a voice and/or print overlay. What is the main reason for doing this?
A) avoiding dubbing that does not correspond to lip movements
B) altering themes and messages among countries
C) meeting legal requirements on morality
D) reaching a hearing- or sight-impaired audience
Answer: A
Diff: 2
Skill: Concept
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Written and oral communication

18
Copyright © 2018 Pearson Education, Inc.
61) A push strategy is most likely preferable to a pull strategy when goods are sold using self-
service distribution.
Answer: FALSE
Diff: 2
Skill: Concept
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Written and oral communication

62) A push strategy is most likely preferable to a pull strategy when the price of the product is
high relative to incomes.
Answer: TRUE
Diff: 2
Skill: Concept
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Written and oral communication

63) A problem of advertising through media that reach multiple countries is that the product may
not be available everywhere it is advertised.
Answer: TRUE
Diff: 2
Skill: Concept
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Written and oral communication

64) In a short essay, compare push and pull promotional strategies.

Answer: Promotion may be categorized as push, which uses direct-selling techniques, or pull,
which relies on mass media. Most companies use combinations of both marketing strategies. For
each product in each country, a company must determine its total promotional budget as well as
the mix of the budget between push and pull. Generally, the more tightly controlled the
distribution system, the more likely a company is to emphasize a push strategy because it
requires a greater effort to get distributors to handle a product. Also affecting the push-pull mix
is the amount of contact between salespeople and consumers and the cost of products relative to
incomes.
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Critical Thinking
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Analytical thinking

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Copyright © 2018 Pearson Education, Inc.
65) In a short essay, discuss the standardization of two marketing components: advertising and
distribution.
Answer: In addition to reducing costs, advertising standardization may improve the quality of
advertising at the local level, prevent internationally mobile consumers from being confused by
different images, and speed the entry of products into different countries. Standardized
advertising usually means a program that is similar from market to market rather than one that is
identical in each. Some of the problems that hinder complete standardization of advertising relate
to translation, legality, and message needs. Within the marketing mix, MNEs find distribution
one of the most difficult functions to standardize internationally, for several reasons. Each
country has its own distribution system, which an MNE finds difficult to modify because it is
entwined with the country's cultural, economic, and legal environments.
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Synthesis
Objective: 17-4 Recognize the advantages and problems of using uniform promotional
marketing practices among countries
AACSB: Written and oral communication

66) Which of the following was most responsible for the early success of Tommy Hilfiger
clothing?
A) The products were mass-marketed through discount stores.
B) Internet mail-order sales were developed when people had less time to shop.
C) Products were developed to fit the specific needs of different country markets.
D) Brand awareness was developed through advertising.
Answer: D
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Concept
Objective: 17-5 Explain the different branding strategies companies may employ internationally

67) Which of the following is NOT a problem when it comes to using a worldwide brand?
A) Brand names may carry a different association in another language.
B) Pronunciation may be difficult in another language.
C) Acquired brand names cannot be legally changed.
D) Pictogram alphabets need visual appeal in addition to phonetic appeal.
Answer: C
Diff: 2
Skill: Concept
Objective: 17-5 Explain the different branding strategies companies may employ internationally
AACSB: Analytical thinking

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Copyright © 2018 Pearson Education, Inc.
68) Which of the following statements is most likely true?
A) Consumers in most countries believe that imported products are better than locally made
products.
B) Brand names have little impact on perceptions about a product's country-of-origin.
C) Consumers in most countries favor locally made products over imported products.
D) A positive brand image helps overcome negative perceptions about a product's country-of-
origin.
Answer: D
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Concept
Objective: 17-5 Explain the different branding strategies companies may employ internationally
AACSB: Diverse and multicultural work environments

69) The importance of using a brand to convey the perception of whether a firm will deliver what
it promises is more critical in ________.
A) countries without strong trademark protection
B) selling to mass markets than in selling to niche markets
C) countries with strong cultural characteristics of uncertainty avoidance
D) selling industrial products than final consumer products
Answer: C
Diff: 2
Skill: Concept
Objective: 17-5 Explain the different branding strategies companies may employ internationally
AACSB: Diverse and multicultural work environments

70) A positive brand image cannot overcome negative perceptions of the country where the
product is made.
Answer: FALSE
Diff: 2
Skill: Concept
Objective: 17-5 Explain the different branding strategies companies may employ internationally
AACSB: Diverse and multicultural work environments

71) If a brand name becomes generic in one country, it becomes generic in other countries as
well.
Answer: FALSE
Diff: 2
Skill: Concept
Objective: 17-5 Explain the different branding strategies companies may employ internationally
AACSB: Analytical thinking

21
Copyright © 2018 Pearson Education, Inc.
72) Which of the following is NOT true about distribution concerns when marketing
internationally?
A) Geographic barriers may divide countries into very distinct markets.
B) In some countries, few potential sales lie outside the large metropolitan areas.
C) Each country has its own distribution system, making standardization of distribution difficult.
D) Because most foreign consumers are easily presold by advertising messages, it is difficult to
convince retailers to offer good service.
Answer: D
Diff: 3
Learning Outcome: Explain the functions of marketing in international business
Skill: Concept
Objective: 17-6 Discern major practices and complications of international distribution
AACSB: Analytical thinking

73) Ampco Industries has a production facility in an area of India in which roads are poorly
maintained and dangerous. What part of Ampco's marketing mix do these conditions most likely
affect?
A) distribution
B) branding
C) product standardization
D) promotion
Answer: A
Diff: 2
Learning Outcome: Explain the functions of marketing in international business
Skill: Application
Objective: 17-6 Discern major practices and complications of international distribution
AACSB: Application of knowledge

74) Which of the following is true concerning countries' distribution systems?

A) They reflect the economic levels of countries, so countries at similar economic levels have
similar distribution systems.
B) They are difficult to change because they have evolved over time, reflecting countries'
cultural, economic, and legal environments.
C) They are more similar among countries than pricing and promotional systems are.
D) When standardized, they offer more cost savings for international companies than when
products are standardized.
Answer: B
Diff: 3
Skill: Concept
Objective: 17-6 Discern major practices and complications of international distribution
AACSB: Analytical thinking

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Copyright © 2018 Pearson Education, Inc.
75) Which of the following would most likely indicate that a company should handle its own
distribution?
A) high-volume sales and non-complex after-sales servicing
B) local customers and low-tech products
C) low sales volume and few business-to-business sales
D) global customers and high technology
Answer: D
Diff: 2
Learning Outcome: Explain the functions of marketing in international business
Skill: Application
Objective: 17-6 Discern major practices and complications of international distribution
AACSB: Analytical thinking

76) Which of the following statements is important to companies in order for them to gain
contracts with foreign distributors?
A) Convince the distributors that the product and company are viable.
B) Offer high margins so distributors will compete to get the account.
C) Determine the distribution gap before signing a contract.
D) Establish in-house distribution to demonstrate what is desired.
Answer: A
Diff: 2
Skill: Concept
Objective: 17-6 Discern major practices and complications of international distribution
AACSB: Analytical thinking

77) Seasonal differences around the world enable MNEs to distribute weather-related sales, such
as winter clothing, more evenly throughout the year.
Answer: TRUE
Diff: 1
Skill: Concept
Objective: 17-6 Discern major practices and complications of international distribution
AACSB: Diverse and multicultural work environments

78) Higher disposable income and technological advances help overcome many geographic
constraints on product demand and distribution.
Answer: TRUE
Diff: 1
Skill: Concept
Objective: 17-6 Discern major practices and complications of international distribution
AACSB: Analytical thinking

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Copyright © 2018 Pearson Education, Inc.
79) When a company sells technologically advanced products to global customers, it is more
likely to handle distribution itself.
Answer: TRUE
Diff: 2
Skill: Concept
Objective: 17-6 Discern major practices and complications of international distribution
AACSB: Analytical thinking

80) Gap analysis is ________.

A) a method for estimating a company's potential sales by identifying segments it is not serving
adequately
B) an investment advisor's report on the future of one of the leading clothing retailers
C) the leap-frogging of demand in many developing economies whereby consumers skip certain
generations of products, buying the latest model instead
D) an estimation of the disparity in incomes between the very rich and the very poor in a given
market
Answer: A
Diff: 2
Skill: Concept
Objective: 17-7 Illustrate how gap analysis can help in managing the international marketing
mix
AACSB: Analytical thinking

81) A company would most likely use gap analysis to ________.

A) estimate market potential over a business cycle
B) compare sales over time
C) compare consumption potential with its own sales
D) determine the best market niches to target
Answer: C
Diff: 2
Skill: Concept
Objective: 17-7 Illustrate how gap analysis can help in managing the international marketing
mix
AACSB: Analytical thinking

82) Assume the per capita consumption of shoes is three pairs in Country A and two pairs in
Country B. The difference probably means that there is a ________ gap in Country B.
A) product line
B) usage
C) distribution
D) competitive
Answer: B
Diff: 2
Skill: Application
Objective: 17-7 Illustrate how gap analysis can help in managing the international marketing
mix
AACSB: Application of knowledge

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83) Gap analysis can be used by companies to gain synergy among countries. Which of the
following is a benefit of this synergy?
A) It allows companies to determine the allocation of marketing budgets among countries.
B) It can be used to prevent sales via the gray market.
C) By seeing the combined market potential among several countries, companies can determine
whether there is sufficient demand to justify new product development costs.
D) By analyzing the distribution gap, companies can better determine whether to handle other
companies' imported products along with their own.
Answer: C
Diff: 3
Skill: Concept
Objective: 17-7 Illustrate how gap analysis can help in managing the international marketing
mix
AACSB: Analytical thinking

84) Gap analysis refers to an estimation of sales potential caused by the disparity in incomes
between developed and developing countries.
Answer: FALSE
Diff: 1
Skill: Concept
Objective: 17-7 Illustrate how gap analysis can help in managing the international marketing
mix
AACSB: Analytical thinking

85) Gap analysis may show that the combined market potential among several countries may
justify product development costs.
Answer: TRUE
Diff: 2
Skill: Concept
Objective: 17-7 Illustrate how gap analysis can help in managing the international marketing
mix
AACSB: Analytical thinking

86) In a short essay, discuss gap analysis.

Answer: Gap analysis is a method for estimating a company's potential sales by identifying
reasons for not serving markets adequately. When sales are lower than the estimated market
potential for a given type of product, the company has potential for increased sales. The
distribution gap represents sales lost to competitors who distribute where the company does not.
The product line gap represents sales lost to competitors who have product variations the
company does not have. The competitive gap is the remaining unexplained sales lost to
competitors who may have a better image or lower prices.
Diff: 2
Skill: Concept
Objective: 17-7 Illustrate how gap analysis can help in managing the international marketing
mix

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Copyright © 2018 Pearson Education, Inc.