Question 1

Cross-subsidization is applicable when firms can benefit from sharing costs and/or revenues.

Accepted Answer

Cross-subsidization is a business technique where a company uses its profits from one product or service to help support another product or service that is less profitable. By doing this, the costs incurred for the less profitable product or service can be shared, and both products or services can benefit financially.

Question 2

All of these are considered external drivers of global marketing strategy except ______________________.

Accepted Answer

International experience is an internal driver of global marketing strategy as it pertains to the knowledge, skills, and expertise of the company's employees and leaders. The other options listed are external drivers as they are factors outside of the organization's control that can impact global marketing strategy.

Question 3

The difference between the total value (the price the consumer is willing to pay)and the cost of performing all the activities in the value chain is referred to as __________.

Accepted Answer

This is a traditional definition of revenue minus cost and does not reflect the complete scope of the value chain.

Question 4

In a global marketing system,there is a growing spatial dispersion of activities that comprise a value chain.

Accepted Answer

With the growth of globalization and advancements in technology and transportation, different activities and stages of a value chain can be dispersed and located in various parts of the world. This allows companies to choose the most cost-effective and efficient location for each activity, leading to a more globally integrated system.

Question 5

The ability to look into the future; the capacity to visualize the image that the company is seeking to create on a world-wide basis is known as ________________.

Accepted Answer

This is a statement of the company's organizational goals and objectives.

Question 6

Dell's famous "build-to-order" model that facilitated its rise to dominance in the PC industry is an example of successful consumer goods customization.

Accepted Answer

Dell's build-to-order model allowed customers to customize their computer specifications, resulting in a successful business model for the company.

Question 7

The Booz Allen Hamilton consulting firm found that firms having the highest rates of R&D spending as a percentage of sales are more likely than other companies in their industries to achieve superior gross margins.

Accepted Answer

The statement is true according to a study conducted by the Booz Allen Hamilton consulting firm. Companies with higher R&D spending as a percentage of sales are more likely to achieve superior gross margins in comparison to other companies in their respective industries.

Question 8

All of these elements are considered internal drivers of global marketing strategy except ___________________.

Accepted Answer

This is indeed considered an internal driver of global marketing strategy.

Question 9

A Nescafe commercial airing in Chile would convey the same promotional message if run in France.

Accepted Answer

This is illustrated in the example provided in your text.

Question 10

New products launched and revenue from new products/total turnover are elements of the ______________ measurement of marketing performance.

Accepted Answer

New products launched and revenue from new products/total turnover are both indicators of a company's innovation, which is a measurement of marketing performance related to the development of new and unique products or services.

Question 11

The sequence of activities required to make a product or provide a service is known as a ______________.

Accepted Answer

This refers to organizational hierarchy and not manufacturing or marketing.

Question 12

While market and consumer oriented metrics measure overall firm performance,financial outcomes are better indicators of marketing success.

Accepted Answer

It is actually market and consumer metrics that are considered to be better indicators of marketing success.

Question 13

If products are standardized,then all accompanying elements of the marketing mix can be standardized as well.

Accepted Answer

Each product whether standardized or customized may have to adopt communication, pricing, or distribution to different target markets.

Question 14

All of these are consumer measures of marketing performance except _______________.

Accepted Answer

This is considered a consumer measure of marketing performance.

Question 15

Secondary value chain activities include all of these elements except __________.

Accepted Answer

The answer of Secondary value chain activities include all of...

Question 16

The concept of customization views each consumer as ______________.

Accepted Answer

Customized products are designed to address specific consumer preferences based upon culture.

Question 17

Longer waiting times for customized products,longer searching times for retail outlets and higher prices are challenges inherent in _______________.

Accepted Answer

Longer waiting times for customized products are inherent challenges in customization.

Question 18

Inbound logistics,marketing and sales,and operations are all considered elements of __________________.

Accepted Answer

Service and sales support are elements of primary value chain activities.

Question 19

The major tools by which a global value chain is managed are ___________________ and ___________________.

Accepted Answer

Configuration refers to how the global value chain is structured and organized, while coordination involves managing the activities within the value chain to ensure smooth operations. Therefore, A is the best choice as the major tools for managing a global value chain are configuration and coordination. B, C, and D are not directly related to managing a global value chain.

Quiz 1: Understanding Global Markets and Marketing