Chapter 16Global Marketing and R&D True / False Questions 1. A global marketing strategy that views the world's consumers as similar in their preferences is consistent with the mass production of a standardized output. True False 2. A critical aspect of the marketing function is identifying gaps in the market so that a firm can develop new products to fill those gaps. True False 3. Firms vary their marketing mix from country to country depending on differences in national culture True False 4. According to Theodore Levitt, technology has resulted in the emergence of global markets for standardized consumer products on a previously unimagined scale of magnitude. True False 5. Markets can be segmented by geography, demography, sociocultural factors, and psychological factors. True False 6. Market segmentation refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways. True False 16-1© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distributionin any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.7. When managers in an international business consider market segmentation in foreigncountries, they need to be cognizant of the difference between countries in the structure of market segments. True False 8. For a market segment to transcend national borders, consumers in that segment must have some compelling similarities along important dimensions such as age, values, and lifestyle choices. True False 9. In terms of factors influencing product attributes, the impact of tradition is particularly important in foodstuffs and beverages. True False 10. The fact that tastes and preferences of consumers are not universal disproves Theodore Levitt's views on the globalization of markets. True False 11. Consumers in the most developed countries are often willing to sacrifice their preferred product attributes for lower priced products. True False 12. Firms based in less developed nations tend to build a lot of extra performance attributes into their products. True False 13. Differences in government-mandated product standards can rule out mass productionand marketing of a standardized product. True False 14. A concentrated retail system is one in which there are many retailers, none of which has a major share of the market. True False 15. In terms of the differences between countries with respect to distribution systems, there is a tendency for lesser retail concentration in developed countries. True False 16-2© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distributionin any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.16. In terms of channel length, the more fragmented the retail system, the less expensive it is for a firm to make contact with each individual retailer. True False 17. The expertise, competencies, and skills of established retailers in a nation, and their ability to sell and support the products of international business is referred to as channel exclusivity. True False 18. There is generally a critical link between channel length, the final selling price, and the firm's profit margin because each intermediary in a channel adds its own markup to the products. True False 19. One benefit of a longer distribution channel is that it cuts selling costs when the degree of fragmentation of the retail sector is less. True False 20. The effectiveness of a firm's international communication can be jeopardized by cultural barriers only. True False 21. In international marketing, a message that means one thing in one country may mean something quite different in another due to cultural differences. True False 22. Many international businesses try to counter negative source effects by deemphasizing their foreign origins. True False 23. A pull strategy refers to a marketing strategy that emphasizes personal selling rather than mass media advertising in the promotional mix. True False 24. Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a push strategy. True False 16-3© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distributionin any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.25. The shorter the distribution channel, the more intermediaries there are that must be persuaded to carry the product for it to reach the consumer. True False 26. A firm's ability to use a pull marketing strategy is limited in some countries by media availability. True False 27. A disadvantage of standardized advertising is that it increases the costs of value creation by spreading the fixed costs of developing the advertisements over many countries. True False 28. The elasticity of demand for a product in a given country is determined by a number of factors, of which income level and competitive conditions are the two most important. True False 29. Predatory pricing exists whenever consumers in different countries are charged different prices for the same product, or for slightly different variations of the product. True False 30. Predatory pricing and experience curve pricing do not violate antidumping regulations. True False 31. In terms of pricing decisions, full responsibility for pricing decisions should be delegated to the managers of various national subsidiaries, thereby reaping the benefits of decentralization. True False 32. In terms of pricing strategies, dumping occurs whenever an international firm sells a product for a price that is less than the price charged by domestic producers. True False 33. A technological innovation can make established products obsolete overnight. True False 16-4© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distributionin any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.34. Dispersing research