Quiz 9: International Product and Brand Marketing

Which of the following factors is not a factor that complicates the task of setting prices in foreign markets? A) Payment systems B) Discounting programs C) Currency types and value fluctuations D) Methods of payment E) Promotion cost

Which of the following three factors influence consumer price perceptions as discussed in the text? A) Value considerations, distribution considerations, and emotional considerations B) Value considerations, situational factors, and emotional considerations C) Value considerations, situational factors, and distribution considerations D) Situational factors, emotional considerations, and image considerations E) Image considerations, situational factors, and distribution considerations

Which of the following is not a common pricing objective? A) Profitability B) Market share C) Enticing new customers D) Retaining current customers E) Estimating brand awareness

Which of the following is not one of the pricing methods that may be used to help a firm reach its pricing goals? A) Cost-based pricing B) Demand/supply pricing C) Competition-based pricing D) Distribution-plus pricing E) Profit-based pricing

If the fixed costs associated with a product is 80,000,000 KES (Kenya shilling),the price per unit is 10,000 KES,and the variable costs per unit is 6000 KES,then the break-even point would be: A) 5000 units B) 10,000 units C) 15,000 units D) 20,000 units E) 25,000 units

Using a cost-plus pricing strategy,and given the following information,what would be the final unit selling price for a product if a manufacturer believes that it can sell 5000 units of a product and desires a margin of 18%? Assume total fixed costs = 50,000,000 Rp and total variable costs = 12,200,000 Rp. A) 10,000 + 60 + 1810.8 = 11,870.80 Rp B) 10,000 + 2440 + 1810.8 = 14,250.80 Rp C) 10,000 + 2440 + 2239.2 = 14,679.20 Rp D) 12,000 + 3600 + 12,440 = 28,040.00 Rp E) 12,000 + 6000 + 12,440 = 30,440.00 Rp

Which pricing technique offers a straightforward pricing method that adds a standard markup to costs assigned to a product? A) Cost-based pricing B) Cost-plus pricing C) Markup pricing D) Demand-/supply-based pricing E) Target ROI pricing

What reflects the intersection of the demand and supply curves? A) Demand point B) Break-even point C) Equilibrium point D) Supply-based point E) Market intersection point

Which of the following reveals that consumers are not strongly affected by price? A) Elastic demand B) Inelastic demand C) Market demand D) Supply-based demand E) Supply-market demand

What occurs when consumers are extremely price sensitive? A) Highly elastic demand B) Highly inelastic demand C) Market equilibrium demand D) Market-based demand E) Price-based demand

If the percentage change in quantity demanded is 10% and the percentage change in price is 20%,what is the price elasticity? A) 2 B) 1.5 C) 1 D) )5 E) )25

If the percentage change in quantity demanded is 20% and the percentage change in price is 10%,what is the price elasticity? A) 2 B) 1.5 C) 1 D) )5 E) )25

A value below 1 indicates: A) Inelastic demand B) Unitary demand C) Elastic demand D) Perfect demand E) Perfect elasticity

Big-box retailers such as Carrefour often price using which technique? A) Below-industry-average pricing B) At industry-average pricing C) Above-industry-average pricing D) Supplier-based pricing E) Market equilibrium pricing

Which technique represents an attempt to recover start-up costs as quickly as possible? A) Skimming pricing B) Penetration pricing C) Cost-plus pricing D) Markup pricing E) Cost-based pricing

By pricing products as high as the market would bear,Sony used which method when pricing its PlayStation consoles internationally? A) Skimming pricing B) Penetration pricing C) Cost-plus pricing D) Markup pricing E) Cost-based pricing

What technique is used when an international marketer sets the lowest possible price in order to end a market? A) Skimming pricing B) Penetration pricing C) Cost-plus pricing D) Markup pricing E) Cost-based pricing

By pricing items as low as possible,Zeebo,the low-cost,emerging-market gaming devise marketer,selected which strategy when it introduced its product into the Brazilian market? A) Skimming pricing B) Penetration pricing C) Cost-plus pricing D) Markup pricing E) Cost-based pricing

Which pricing strategy makes it more difficult for the international marketer to recover start-up costs quickly? A) Skimming pricing B) Penetration pricing C) Cost-plus pricing D) Markup pricing E) Cost-based pricing

Which of the following is a condition that favors the use of profit-based pricing in international markets? A) The company operates in an oligopolistic environment. B) The company does not seek to recover start-up costs quickly. C) Prices are set to achieve a balance between demand and costs. D) The company operates in a monopolistic environment. E) Information on elasticity has been gathered.

Using a target ROI pricing strategy,and given the following information,what would be the final unit selling price for a product if a manufacturer invests $1,000,000 (U.S.)in a product with unit costs of $10 each,expected sales of 20,000 units,and has a desire to achieve 8% ROI? A) $11 B) $12 C) $13 D) $14 E) $15

Using a target ROI pricing strategy,and given the following information,what would be the final unit selling price for a product if a manufacturer invests ₤2,000,000 (U.K.)in a product with unit costs of ₤20 each,expected sales of 10,000 units,and has a desire to achieve 6% ROI? A) ₤24 B) ₤30 C) ₤32 D) ₤35 E) ₤42

Which of the following is not one of the major pricing discount methods used by international marketers? A) Loss leaders B) Seasonal discounts C) Quantity discounts D) Early-payment discount E) Differentiation discounts

Which pricing technique relies on regular prices for other products in order for an overall profit to be realized? A) Loss leader B) Seasonal C) Quantity D) Early discount E) Differentiation

Which term refers to the power to use goods and services in the satisfaction of wants and needs? A) Capacity to buy B) Capacity to use C) Capacity to consume D) Capacity to need E) Capacity to want

Seasonal discounts are often associated with what kinds of industries in international marketing? A) Manufacturing and producing B) Financial and accounting C) Medical and personal health D) Tourism and hospitality E) Distribution and logistics

Manufacturers most often offer quantity discounts to which groups? A) Customers and consumers B) Governments and affinity groups C) Wholesalers and retailers D) Buying groups and wholesale clubs E) Loyalty groups and membership clubs

The phrase "2/10 net 30" reflects which of the following? A) Early payment discount B) Consumer club discount C) Wholesale distribution discount D) Prompt action discount E) Accounting terms discount

A price discount provided to all countries of the Pacific Rim based on shipping costs represents what type of discount? A) Early payment discount B) Channel discount C) Quantity-based discount D) Seasonal discount E) Loss leader discount

Which of the following factors is not included in the text as a factor that should be considered when changing prices in international markets? A) Actions or reactions of competitors B) Company status C) Impact on brand image D) Impact on revenues and gross margin E) Impact on company reputation

The finding that it takes a price change of 10% in order for consumers to notice the change and to act is called which of the following? A) Pavlov's Law B) Skinner's Law C) Madrid's Law D) Weber's Law E) Thomson's Law

In international markets,if an oligopoly sets prices at a uniform level,the members are likely to be found guilty of which of the following? A) Loss leader pricing B) Price setting C) Collusion D) Predatory pricing E) Monopolization

Smaller companies in an international market can sometimes be forced out of the market if a competitor uses which of the following? A) Loss leader pricing B) Price setting C) Predatory pricing D) Price determination policy E) Price discrimination

When an international marketer promotes one price but does not include hidden charges and add-ons,the company is guilty of which of the following? A) Loss leader pricing B) Price setting C) Predatory pricing D) Price discrimination E) Deceptive pricing

The practice of selling goods in a foreign country at prices that are below cost is: A) Price fixing B) Price discrimination C) Predatory pricing D) Dumping E) Pricing stabilizing

Which Indian company is the world's largest producer of steel? A) Mottel Limited B) Mittal Steel C) Moffit Limited D) Morlan Steel E) Mittalle Limited

If Sony introduces a new television in Nigeria at a price below its production and shipping costs,in order to gain in-roads against local manufacturers,the company is guilty of: A) Price fixing B) Price discrimination C) Predatory pricing D) Dumping E) Pricing stabilizing

Which of the following early payment terms would offer the smallest price reduction? A) 1/10, net 20 B) 2/5, net 20 C) 2/4, net 30 D) 3/8, net 30 E) 3/10, net 30

Which of the following early payment discounts would offer the biggest overall price reduction? A) 1/10, net 20 B) 1/20, net 40 C) 2/10, net 30 D) 2/10, net 40 E) 3/10, net 20

What kind of price discount in international markets takes the form of a price reduction associated with a holiday? A) Loss leader B) Predatory C) Introductory D) Promotional E) Reduced

What kinds of packages match the needs of bottom-of-the-pyramid consumers well? A) Family sized B) Single serve C) Multi-unit D) Bulk E) Containerized

What kinds of packages are much more prevalent in less-developed countries? A) Family sized B) Single serve C) Multi-unit D) Bulk E) Containerized

A common measure of the profitability pricing objective includes all of the following except: A) Total dollar profit B) Return on investment C) Contribution to overhead D) Market share attained E) Cost reduction

A common measure of the market share pricing objective includes all of the following except: A) Product market share B) Product line share C) Company market share D) Return on investment per share E) Cost reduction

What represents the amount of items that are purchased at various price levels? A) Demand B) Supply C) Equilibrium D) Market intersection E) Marketability

The equilibrium point reflects which of the following in an international market? A) Market intersection B) Intersection of supply and demand curves C) Demand quotient D) Supply/demand point E) Market point

Which method of international pricing typically features a percentage as the margin of profit per good? A) Cost plus B) Cost based C) Market equilibrium D) Markup E) Target ROI

Creating which of the following allows the international marketing team to see a visual portrayal of the relationships between price,quality,image,and/or other variables? A) Pricing perceptual map B) Pricing market share map C) Pricing marketing map D) Pricing image map E) Pricing promotion map

What represents the first thoughts a buyer may have about the prices of a product and whether the amount represents a reasonable portrayal of value? A) Cost considerations B) Market considerations C) Value considerations D) Product considerations E) Promotion considerations

Capacity to consume consists of all of the following except: A) Wants B) Goods and services available C) Time and energy D) Purchasing power E) Consumer personality

Culture affects methods of setting prices,methods of bargaining,and perceptions regarding what price indicates.

For products moving through an international market channel,the first price will be the one offered by a manufacturer to middlemen.

The price perceptual map depicts companies or products along two dimensions,typically price and quality.

Many goods and services contain emotional components that affect value judgments and influence purchase decisions.

Situational factors can affect price perceptions.

Ensuring profitability is one of the most common pricing objectives.

Cost-based pricing begins with a careful assessment of market conditions as they pertain to supply and demand.

A typical break-even analysis begins with an assessment of consumer price elasticity.

Cost-plus pricing involves setting a product's price based on fixed costs,variable costs,plus the desired profit margin for each item.

Markup pricing is best suited for retailers and manufacturers that sell or produce a small number of products.

Markup pricing is usually most useful when consumers are not strongly affected by price.

The equilibrium point reflects the intersection of the demand and supply curves.

Inelasticity demand occurs when consumers are highly sensitive to price changes.

Elastic demand occurs when consumers are not sensitive to price changes.

In international markets,demand,supply,and elasticity are all affected by local conditions.

International marketers realize that there is generally a great diversity in consumer demand in international markets.

Adaptation of products to local markets generally increases international marketing costs.

International big-box retailers,such as Vishal Mart and Carrefour,often follow below the industry-average pricing.

Pricing against foreign competitors rarely occurs when international bids for contracts are made.

Skimming represents an attempt to recover start-up costs as quickly as possible.

Penetration pricing occurs when an international marketer sets prices as low as possible in an attempt to enter a market.

Profit-based pricing may work well in situations in which prices are set to achieve a balance between demand and supply while generating optimal profits.

With target ROI pricing,the first piece of information needed is consumer price elasticity.

In general,setting prices in international markets is less complex than setting them for domestic markets.

Governmental regulations complicate pricing decisions in international markets.

Capacity to consume refers to the power to use goods and services in the satisfaction of human needs.

Ensuring capacity to consume is an important part of marketing to bottom-of-the-pyramid consumers.

According to the text,providing credit to bottom-of-the-pyramid consumers can be an effective international marketing technique.

Sell cars at a loss can attract new customers and maintain customer loyalty.

International marketers use quantity discounts to build relationships.

International marketers often take advantage of regional channel discounts.

Increased competition can trigger a permanent price reduction for international marketers.

Decreased competition can trigger a permanent price reduction for international marketers.

Informing business customers about potential price increases is an important part of establishing trust in international marketing relationships.

Raising prices without announcing such increases demonstrates Weber's Law.

Weber's Law applies equally to all cultures.

Predatory pricing is an overt attempt to drive competitors out of a market.

Dumping is the practice of selling goods below cost in a foreign country.

The World Trade Organization has outlawed dumping.

Dumping accusations usually originate from a foreign government,not from foreign competitors.

Discuss how value considerations,emotional factors,and situational factors affect price perceptions in international markets.Use an example of a product to illustrate your response.

Describe the various types of pricing objectives as they pertain to international marketing.Discuss how an international marketer could use these objectives when developing prices for international markets.

Describe the various types of international pricing discounts and how an international marketer could use each when developing an international marketing campaign.

Discuss the major categories of ethical issues that international marketers sometimes face when they market their products in foreign countries.

Draw and discuss a pricing perceptional map for a product of your choice that is marketed internationally.Use brands and/or companies of your choice.What conclusions can you make from the map? How could an international marketer use this information?