Question 1

In some countries such as Australia,the retail system is very concentrated,but in others it is fragmented.A fragmented retail system is one in which there are:

Accepted Answer

A fragmented retail system is characterized by the presence of many retailers, none of which has a significant market share. This type of system is found in countries where there is a low barrier to entry for new retailers, leading to increased competition and fragmentation of the market. Australia, on the other hand, has a highly concentrated retail system, with a small number of large retailers dominating the market.

Question 2

When managers in an international business consider market segmentation in international markets,they need to be cognisant of two main issues: the differences between countries in the structure of market segments and:

Accepted Answer

While knowledge and experience in international markets, product features and price, and quality, cost, time and delivery are all important considerations in market segmentation, the existence of segments that transcend national borders is particularly important in international markets. This means that a particular type of customer or consumer may be found in multiple countries, and marketing strategies should take this into account. However, the structure of market segments can also vary between countries, so managers need to be aware of local differences as well as global similarities.

Question 3

In 2001,Suncorp Metway Ltd,a Queensland insurance and banking group,acquired GIO Insurance from AMP.This is called _________ strategy.

Accepted Answer

The acquisition strategy involves one company buying another company to expand its operations or to achieve synergies. In this case, Suncorp Metway Ltd acquired GIO Insurance from AMP, which is an example of an acquisition.

Question 4

While McDonald's quality,service,cleanliness and value might not be unique,it does form the basis of a system that involves crew focusing on:

Accepted Answer

McDonald's system focuses on customer satisfaction, which is achieved through quality, service, cleanliness, and value. By satisfying their customers, McDonald's ensures customer loyalty and repeat business.

Question 5

A typical rule of thumb in full-service restaurants is that the cost of purchasing the food ingredients represents about one-fifth of the price of the meal.This is an example of:

Accepted Answer

The answer of A typical rule of thumb in full-service...

Question 6

Although a firm that is successful at developing new products may earn enormous returns,new product development has a:

Accepted Answer

New product development involves significant investment of time and resources, and often requires taking risks. Therefore, the rate of failure is generally high. It is estimated that only about 1 in 10 new products launched in the market becomes successful.

Question 7

Price discrimination exists whenever consumers in different countries:

Accepted Answer

Price discrimination occurs when consumers in different countries are charged different prices for the same product. This can be due to factors such as differences in market demand, distribution and production costs, or regulatory barriers. The other answer choices are not directly related to price discrimination.

Question 8

For BMW,the two basic components of a customer's evaluation of a vehicle's attributes are:

Accepted Answer

The two basic components of a customer's evaluation of a vehicle's attributes are the expectations the customer has before purchasing the vehicle and the actual experience of using the vehicle. This implies that the customer compares what they thought they would receive with what they actually received. Therefore, customers evaluate a product based on whether it met their expectations or exceeded them.

Question 9

Two conditions are necessary for profitable price discrimination:

Accepted Answer

For profitable price discrimination, the firm must be able to keep its national markets separate, and different price elasticities of demand in different countries must occur. This allows the firm to charge different prices in different markets, maximizing profits. The other choices do not accurately describe the necessary conditions for profitable price discrimination.

Question 10

The first macro-environmental force that product marketers typically monitor is:

Accepted Answer

Marketers often start by examining demographic factors, such as population size and growth, as these can significantly impact market demand and consumer behavior.

Question 11

A South Australian wine producer facing declining sales at home set up a new channel of distribution to sell wine in Japan and Europe.This strategy is called:

Accepted Answer

The answer of A South Australian wine producer facing declining...

Question 12

R&D is an abbreviation for:

Accepted Answer

R&D stands for Research and Development, which refers to the process of discovering and creating new knowledge, products, and technologies through scientific and technical research.

Question 13

Toyota uses its Lexus division to sell high-priced luxury cars to high-income consumers,while selling its entry-level models,such as the Toyota Corolla,to lower-income consumers.This is an example of targeting to which type of market segments:

Accepted Answer

Toyota is using socioeconomic segmentation by targeting different income levels with different brands. Lexus is aimed at high-income consumers, while Toyota is aimed at lower-income consumers with its entry-level models like Corolla. Therefore, Toyota is segmenting the market based on socioeconomic factors.

Question 14

According to the generic value chain,the process of obtaining the various inputs needed for each of the firm's primary activities is called:

Accepted Answer

Procurement is the process of obtaining the various inputs needed for each of the firm's primary activities according to the generic value chain. Inbound logistics refers to the transportation, storage, and delivery of goods from suppliers, while technology development relates to research and development of new technologies, and operations refer to the transformation of inputs into finished products or services.

Question 15

If Arnott's biscuits (which has products in almost all submarkets)was to use price as a competitive weapon to drive weaker competitors out of the national market,it would be pursuing a ____________tunity.

Accepted Answer

Predatory pricing is a strategy in which a dominant firm deliberately reduces its prices to drive out weaker competitors and gain a larger market share. This would be the most appropriate choice in the given scenario as Arnott's is using price as a competitive weapon to drive weaker competitors out of the national market.

Question 16

Findus,the frozen food division of the Swiss food giant Nestlé,markets fish cakes and fish fingers in Great Britain,and beef bourguignon and coq au vin in France,and vitéllo con funghi and braciola in Italy.This is an example of:

Accepted Answer

Findus tailors its product offerings to suit the cultural preferences and culinary traditions of each country, demonstrating an understanding of cultural differences.

Question 17

In some countries such as Australia,the retail system is very concentrated,but in others it is fragmented.In a concentrated retail system:

Accepted Answer

In a concentrated retail system, few retailers dominate the market and supply most of the products or services. This is in contrast to a fragmented retail system where there are many small retailers with a smaller share of the market. The other options are not necessarily true for a concentrated retail system. Publicity and advertising costs can vary and may not follow a specific pattern. The control of advertising and publicity can also vary depending on the retailer or situation. Additionally, advertising and publicity may target different audiences beyond just consumers in both concentrated and fragmented retail systems.

Question 18

The Biotech Company,well known for its low-calorie sweetener,recently added a new low-calorie chocolate substitute product that appeals to the same health-conscious consumers as its sweetener.This strategy is an example of:

Accepted Answer

The addition of a new low-calorie chocolate substitute product shows product development, which is the process of creating new products or modifying existing ones to better meet customer needs or preferences. This strategy aligns well with the existing health-conscious consumer market and expands the company's product line.

Question 19

Dulux paints owns and operates 165 retail paint outlets in Australia.This strategy is called:

Accepted Answer

The answer of Dulux paints owns and operates 165 retail...

Question 20

Which of the following statements describes a trend in the technological environment?

Accepted Answer

Many companies are investing in copying competitors because it is often less risky and less costly than developing new innovations, reflecting a trend where imitation is prioritized over innovation.

Quiz 12: International Marketing and RD