Question 1

When companies sell on the Internet,price becomes transparent,and price differentiation between countries declines.

Accepted Answer

This is because consumers can easily compare prices across different websites and regions, making it more difficult for companies to vary their prices based on location.

Question 2

Country-of-origin effects refer to the attitude anything produced by the home country is better than imported goods.

Accepted Answer

Country-of-origin effects refer to the perception or stereotype that products from a certain country possess certain characteristics or qualities due to the country's reputation or image in that particular product category, which can influence consumer attitudes and behavior towards those products. It does not necessarily mean that the home country's products are always considered better than imported goods.

Question 3

The impact of country of origin is independent of the type of product.

Accepted Answer

The impact of country of origin varies depending on the type of product. Certain products may be more influenced by country of origin than others. For example, consumers may be more likely to consider the country of origin for luxury products, while it may be less important for everyday household items.

Question 4

If Kellogg's offered different varieties of breakfast cereals in India as compared to Australia,and also positioned its products differently in the two countries,then Kellogg's would be engaging in dual adaptation.

Accepted Answer

Dual adaptation involves modifying a product or its marketing strategy in different ways for different markets. In this case, Kellogg's is offering different varieties of cereal and positioning its products differently in India and Australia, which is an example of dual adaptation.

Question 5

The use of media may require international adaptation because media availability varies from country to country.

Accepted Answer

The availability and usage of different media platforms, such as television, radio, social media, etc., can vary greatly from country to country, which can impact the effectiveness and reach of marketing or communication campaigns. Therefore, adaptation of media strategies may be necessary to ensure they are appropriate and effective in any given country or region.

Question 6

Explain how marketers are using the Web for international business.

Accepted Answer

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Question 7

Most brands are adapted to some extent to reflect significant differences in consumer behavior,brand development,competitive forces,and the legal or political environment.Identify the five international product and communication strategies available to firms that expand their businesses to foreign countries.

Accepted Answer

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Question 8

People are often ethnocentric and favorably predisposed to their own country's products,unless they come from a less developed country.

Accepted Answer

Ethnocentrism refers to the tendency for individuals to view and judge other cultures or countries based on their own cultural standards and beliefs. This often leads to a bias towards one's own country and its products, unless the product is perceived as coming from a less developed country. This is due to stereotypes and biases associated with certain countries or regions.

Question 9

What are the various risks that a company must consider before making a decision to enter foreign markets?

Accepted Answer

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Question 10

Once a company decides to target a particular country,it must determine the best mode of entry.Each of its market entry strategies involves more commitment,risk,control,and profit potential.List these market entry strategies in order from low risk to high risk.

Accepted Answer

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Question 11

Most companies would prefer to remain domestic if their domestic market were large enough.Yet several factors are drawing more and more companies into the international arena.List some of these factors.

Accepted Answer

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Question 12

Name the three choices that companies have for setting prices in different countries.

Accepted Answer

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Question 13

A firm normally gets into international marketing simply by shipping out its goods.

Accepted Answer

Shipping out goods to other countries can be the first step in entering into international marketing. However, there are many other factors and strategies involved in successfully marketing in international markets.

Question 14

As required levels of distribution increase,so do customer prices relative to the importer's price.

Accepted Answer

As additional middlemen are involved in the distribution process, the cost of the goods rises, resulting in higher prices for customers relative to the importer's price.

Question 15

Gray market activities harm distributor relations,tarnish the manufacturer's brand equity,and undermine the integrity of the distribution channel.

Accepted Answer

Gray market activities, also known as parallel importing, involve the selling of goods through unofficial or unauthorized channels. This can harm the relationships between the manufacturer and its authorized distributors, who may feel that their efforts to promote and sell the products are being undermined. Additionally, gray market sales can often result in the sale of products that are counterfeit or not up to the same standards as those sold through official channels, which can damage the manufacturer's brand reputation. Finally, gray market activities can create an unfair advantage for certain distributors or retailers, as they may be able to secure lower prices or better deals than their authorized competitors. All of these factors can undermine the integrity of the distribution channel and ultimately harm the manufacturer's business.

Question 16

Define a joint venture and list some of the advantages and disadvantages.

Accepted Answer

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Question 17

Web-crawling technology searches for counterfeit storefronts and sales by detecting domain names similar to legitimate brands.

Accepted Answer

This statement is true. Web-crawling technology can be used to search for counterfeit storefronts and sales by detecting domain names that are similar to legitimate brands. This is done through a process called brand monitoring, where software is used to monitor the web for instances of brand infringement. When a potential infringement is detected, the software can trigger an alert to the brand owner, who can then take action to protect their intellectual property.

Question 18

Outline the major decisions that a firm must undergo in making a decision to market internationally.

Accepted Answer

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Question 19

A company that is planning to go global must decide on how many countries to enter and how fast to expand.A company's entry strategy typically follows one of two possible approaches.What are those approaches?

Accepted Answer

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Question 20

Explain the country-of-origin effect.

Accepted Answer

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Quiz 18: Managing Marketing in the Global Economy