QUESTION Which of the following is a statement made by Theodore Levitt about the globalization of world markets? A. Capitalism is the force that drives the world toward a converging commonality. B. Global corporations consider the world to consist of distinct and unique entities. C. Accustomed differences in national or regional preferences are becoming more […]
QUESTION When managers in an international business consider market segmentation in foreign countries, they need to be cognizant of the differences between countries in the structure of market segments. Indicate whether the statement is true or false. ANSWER TRUE When managers in an international business consider market segmentation in foreign countries, they need to […]
QUESTION Many international businesses try to counter negative source effects by deemphasizing their foreign origins. Indicate whether the statement is true or false. ANSWER TRUE Source effects can be damaging for an international business when potential consumers in a target country have a bias against foreign firms. Many international businesses try to counter negative […]
QUESTION Market segmentation refers to identifying distinct groups of consumers whose needs, wants, and purchasing behavior differ from others in important ways. Indicate whether the statement is true or false. ANSWER TRUE Market segmentation refers to identifying distinct groups of consumers whose needs, wants, and purchasing behavior differ from others in important ways. Markets […]
QUESTION A firm’s ability to use a pull marketing strategy is limited in some countries by media availability. Indicate whether the statement is true or false. ANSWER TRUE A pull strategy relies on access to advertising media. A firm’s ability to use a pull strategy is limited in some countries by media availability. In […]
QUESTION 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. Indicate whether the statement is true or false. ANSWER TRUE For a market segment to transcend national borders, consumers in that segment must have some compelling […]
QUESTION 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. Indicate whether the statement is true or false. ANSWER TRUE The elasticity of demand for a product in a given country is determined […]
QUESTION In terms of factors influencing product attributes, the impact of tradition is particularly important in foodstuffs and beverages. Indicate whether the statement is true or false. ANSWER TRUE The most important aspect of cultural differences is probably the impact of tradition. Tradition is particularly important in foodstuffs and beverages.
QUESTION 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. Indicate whether the statement is true or false. ANSWER FALSE In recent years, largely inspired by the work of visionaries such as Theodore Levitt, there has been […]
QUESTION Consumers in the most developed countries are often willing to sacrifice their preferred product attributes for lower priced products. Indicate whether the statement is true or false. ANSWER FALSE For most consumer durables, product reliability may be a more important attribute in less developed nations, where such a purchase may account for a […]
