Multiple Choice Answers

A(n) ________ is a possible product the company might offer to the market.
 A. test brand
 B. beta version product
 C. product concept
 D. product idea
 E. alpha product

Which of the following is true about direct investment as a mode of international expansion?
 A. It allows a firm to retain full control over its investment.
 B. It does not allow the firm to diversify.
 C. It involves the least amount of risk.
 D. It involves the least cost.
 E. It yields the lower returns than joint ventures.

The problem with setting a uniform global price for a product is that ________.
 A. it allows intermediaries in low-price countries to reship their products to high-price countries
 B. it is ineffective for products that are homogeneous
 C. this strategy makes the price too high in poor countries and not high enough in rich countries
 D. the company would earn the same profits everywhere, regardless of the cost structure
 E. this strategy can price the product out of the market in countries where costs are high

In an adapted marketing mix, the company ________.
 A. focuses more on brand image than consumer preferences
 B. ensures the lowest cost marketing program is adopted
 C. ignores differences in the legal environment
 D. ensures that uniform practices are adopted across countries
 E. tailors the marketing programs to each target market

A2Z Inc. is a producer of a wide variety of consumer goods in Brazil. It has successfully captured a huge share of the domestic market and has been able to create a very strong brand. It is now considering a foray into foreign markets. Its board of directors decide to first try out some of its products in the neighboring country of Argentina. A2Z plans to eventually expand its presence in other countries, after they analyze the impact of their entry into the Argentine market. A2Z Inc. is following a ________.
 A. shotgun approach
 B. waterfall approach
 C. born global approach
 D. franchisee approach
 E. sprinkler approach

Forces promoting national responsiveness include ________.
 A. homogeneous demand
 B. strong consumer liking towards foreign goods
 C. strong global preferences
 D. capital-intensive production
 E. strong local preferences

Straight extension of the product means ________.
 A. introducing the product to the foreign market without any changes to the product
 B. introducing the product to the foreign market with major changes to the product
 C. introducing a customized product to the foreign market with existing marketing strategy
 D. introducing the product to the foreign market with minor changes to the product
 E. introducing a customized product to the foreign market with a new marketing strategy

What is a global firm?
 A. A firm that sells its products and services across the world but restricts manufacturing to the home country.
 B. A firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not available to purely domestic competitors.
 C. A firm that operates in one country and exports its goods and services to foreign countries.
 D. A firm that operates in more than one country and has a sales and marketing staff in those countries.
 E. A firm that operates in more than one country but restricts the sale of its products to the home country.

In a sprinkler approach to international expansion, ________.
 A. countries are gradually entered sequentially
 B. many countries are entered simultaneously
 C. countries are entered when competition is limited
 D. countries in which the supply of raw material is greatest are entered first
 E. you get wet

Product adaptation involves ________.
 A. developing a new product and adapting the communication strategy to enter a new market
 B. altering the product to meet minimum acceptable standards
 C. altering the product to meet local preferences with no change in communication strategy
 D. altering both the product and the communication strategy to meet local preferences
 E. altering neither the product nor the communication strategy while entering a new market

Hotel chains such as Hyatt sell a variation of the licensing agreement called ________ to the owners of foreign hotels to manage these businesses for a fee.
 A. highway robbery
 B. indirect exporting
 C. management contracts
 D. strategic alliance
 E. direct exporting

Regional economic integration is defined as the creation of trading agreements between ________.
 A. a firm and its suppliers and distributors
 B. firms targeting the same market
 C. individual firms in an industry
 D. blocs of countries
 E. related industries

A risk averse attitude is associated with ________.
 A. high femininity
 B. high individualism
 C. high power distance
 D. high uncertainty avoidance
 E. high collectivism 

Which of the following can cause a firm to choose joint ventures as a mode of expansion into foreign markets?
 A. lack of sufficient finances
 B. preferences of target consumers in the host country
 C. lack of red tape-ism in the host country
 D. excellent managerial resources
 E. psychic proximity of the host country

Which of the following is a risk that firms must consider prior to expanding abroad?
 A. The domestic consumers prefer low-priced products.
 B. The market in the foreign country may be too similar to the domestic market.
 C. The foreign country has very low pollution control standards.
 D. The foreign country's business culture may be too different from the domestic country.
 E. Consumers in the foreign country are very particular about the quality of the goods they consume.

Once a firm decides to enter the international market, what is the next step in the decision-making process?
 A. deciding on the marketing program
 B. deciding how to enter the market
 C. deciding how to adapt the product to the new market
 D. deciding on the marketing organization
 E. deciding which markets to enter

The value proposition is also known as the core positioning of the offering.
 A. true
 B. false
 C. I don’t know.

Which of the following is the best method of recovering customer goodwill?
 A. defining and measuring the customer retention rate
 B. contacting the complaining customer as quickly as possible
 C. free cookies
 D. sending service people to conduct door-to-door surveys
 E. identifying prospective customers from the customer database

A customer ________ is any occasion on which a customer encounters the brand and product - from actual experience to personal or mass communications to casual observation.
 A. point of difference
 B. point of parity
 C. point of order
 D. touch point
 E. pivot point

When a manager is trying to identify how the company can efficiently create promising new offerings, he/she is addressing the question of value delivery.
 A. true
 B. false
 C. The manager’s name is George.

The selling concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and inter dependencies.
 A. true
 B. false
 C. that’s a lot of words for one sentence

Competitive intelligence gathering is inherently illegal and unethical.
 A. true
 B. false
 C. I don’t know. A family of wrens built a nest in my computer.

A strategy is a game plan for achieving what the business unit wants to achieve.
 A. true
 B. false
 C. Did you know you can learn strategy from playing Risk?

Marketing plans are becoming more production oriented because of the high costs of doing business in today's economy.
 A. true
 B. false
 C. boy everything’s more expensive these days

Marketers have little information about how consumption patterns vary across and within countries.
 A. true
 B. false
 C. I don’t know. My penguin ate my book.