Old questions Flashcards
1
Q
Mark the correct statement/s regarding the International Product Life Cycle:
A
- The International Product Life Cycle was primarily used to explain shifts in foreign direct
investments between countries. - The last phase of the International Product Life Cycle describes how foreign competitors start
exporting to a company’s home market and compete effectively
2
Q
What is true regarding global brand portfolios?
A
- It has been argued that a brand portfolio including both global and local brands is better for risk
management than a portfolio with mostly global brands. - Coca-Cola and Nestlé both have a rather mixed brand portfolio consisting of local brands as well
as global ones.
*Brand portfolios of companies are often a result of past mergers and acquisitions
3
Q
Mark the correct statement/s in the context of cultural factors in global branding:
A
- The brand image of a company may be influenced by its country-of-origin.
- Culture is the lens through which consumers ascribe meaning to symbols.
- Nike and Coke are examples for iconic brands, meaning that they have a high symbolic value for
their country-of-origin (US). - Research indicates that the amount of trust that consumers out into (even unknown) firms and
products differs by culture
4
Q
Mark all equity market entry modes:
A
- Wholly owned subsidiary
* A joint venture share of 20%
5
Q
Mark the correct statement/s in the context of Franchising:
A
- Franchising is an agreement where the franchisor grants the franchisee the right to run a business
bearing the former’s name.
6
Q
Mark the correct statement/s regarding the terminology of Global Marketing Ethics and CSR:
A
- “Marketing ethics” is the systematic study of how moral standards are applied to marketing
decisions, behaviors and institutions. - “Morality” means moral judgement, standards and rules of conduct
- “Business ethics” guides business behavior in terms of what is right or wrong in specific business
situations.
7
Q
How many attributes does effective market segmentation require the market segments to possess?
A
6: measurable, accessible, substantial, differentiable, actionable and stable
8
Q
Mark the correct statement/s regarding the standardization-adaption debate:
A
- A main argument of standardization-supporters is that the international business environment
becomes increasingly homogeneous as consumer needs converge. - In reality, companies strive for the right balance between standardization and adaption.
- According to Theodore Levitt, consumers prefer standardized goods at low prices and high quality
over individual preferences.
9
Q
What is true in the context of product adaption?
A
- “Stickiness of knowledge” refers to the increasingly difficult transfer of ideas, experience and
knowledge between regions. - The adaption of products often is obligatory as legal requirements or factors such as different
voltage levels regularly force companies to modify their products. - Supporters of product adaption argue that, when done correctly, increased revenues will offset the
higher initial cost of a modified product.
10
Q
Mark the correct statement/s in the context of methodology in global marketing research:
A
- An emic approach takes a subjective insider viewpoint and emphasizes culturally specific
meanings. - The comparability of data from different countries is one of the most challenging issues in global
marketing research. - An emic or an etic approach can be seen as the two ends of a continuum of the methodology of
global marketing research
11
Q
Mark the correct statement/s regarding penetration pricing and market skimming:
A
- Market skimming introduces products at a high price, which is then lowered over time.
- The aim of penetration pricing is to expand market share quickly, often in order to prevent new
competitors from entering the market.
12
Q
Mark the correct statement/s in the context of market segmentation:
A
- Demographic segmentation is based on measurable consumer characteristics such as age, gender
or family size. - Geographic segmentation comes with major limitations as the differences within a given country
can be remarkably high.
13
Q
- Mark the correct statement/s regarding global pricing strategies and practices:
A
- Parity pricing may limit the differentiation of and decrease the purchasing probability for a product.
- Cost-plus pricing, parity pricing and market penetration pricing are examples for global pricing
strategies.
14
Q
Mark the correct statement/s regarding channel options:
A
- A franchise is a continuing relationship in which a franchisor grants a franchisee the rights to operate
or sell a product. - Distributors or dealers distribute the product and offer value through services such as stocking
inventory, credit line extensions and after sales support. - Wholesalers take title to the goods they handle and are involved in their physical distribution
15
Q
Mark the correct statement/s regarding the motivation for foreign market entries:
A
- A company may decide to enter a foreign market to follow its key customer (market seeking).
- A company may decide to enter a foreign market to get access to raw materials (resource seeking).
- A company may decide to enter a foreign market to take advantage of the “first mover advantage”.
- A company may wait for a competitor to enter a market to take advantage of the competitor’s
investments afterwards as a “latecomer”.
16
Q
Mark the correct statement/s regarding brand extension:
A
- The term brand extension refers to companies that take advantage of their existing, well-known
brand to introduce new products. - Brand extension can increase the trust of consumers towards new products.
- The terms brand alliance and co-branded extensions both refer to the same branding technique
17
Q
What is true in the context of positioning?
A
- Differentiation via consumer insights aims at “educating” the consumer about the advantages of the
brand. - To successfully position a product, three key elements need to be taken into account: establishing
a frame, clarifying areas of parity and differentiation.
18
Q
Mark the correct statements/s regarding the relationship between global headquarters, regional
headquarters and national subsidiaries:
A
- The relationships between individual subsidiaries is determined by both the corporate structure and
their role in the corporate value chain. - Global headquarters are responsible for fundamental strategic questions like where , how and with
whom to compete. - Regional headquarters have an entrepreneurial and an integrative charter
19
Q
What is true in the context of matrix structures and transnational networks?
A
- A manager in a matrix structure could be assigned to a geographic area and a business division at
the same time. - Transnational networks can help to overcome the shortcomings of matrix organizations
20
Q
What is true in the context of transfer pricing:
A
- Comparable uncontrolled price method: A price is defined which would be considered appropriate
for a similar transaction between completely unrelated buyers and sellers. - Cost-plus method: An arm’s length price is defined as the cost of a product plus an appropriate
mark-up.
21
Q
What is true regarding web-based consumer reviews?
A
- The growing importance of web-based reviews resulted in a shift from manager-ruled to customer-ruled brands.
- Web-based reviews and recommendations are now central to the online purchasing process.
- Web-based reviews empower consumers to make more competent purchase decisions
22
Q
Mark the correct statement/s regarding this paradoxical trend: Disruptive technologies versus retro
products
A
- The transition from location-based services to online shopping is an result of disruptive technology.
- Retro brands embody moral values and craftmanship and connect to seemingly better times in the
past. - One aspect of retro products is, that it helps older people to remember their youth
23
Q
Mark the correct statement/s in the context of theories in business ethics:
A
- Universalism is closely related to the golden rule of “Treat others how you wish to be treated”.
- Relativism considers different views of morality as equally valid and rejects the idea of a common
universal standard. - Relativism is often used to justify immoral behavior.
- In Utilitarianism, a decision is morally right if the outcome produces less harm than good to the
people
24
Q
What is true in the context of market coverage?
A
- Exclusive distribution is about restricting the number of intermediaries that are allowed to stock a
particular product. - Intensive distribution is about placing a product in as many outlets as possible
25
What dimension/s suggested in the book is/are to be considered by global marketing managers to
determine, which marketing activities can be standardized (and extended worldwide) and which must
be adapted to local requirements?
* The product
* The countries, where the firm operates
* The marketing mix
* The company’s overall strategy
26
International Product Life Cycle - 4 phrases
Using a product originally produced in the US as an
example, he theorized a four phase cycle:
(1) A product is developed and produced in the US. At the beginning, nearly all
sales are generated from this high income domestic market and the product is
exported only gradually.
(2) When the export volume is sufficiently high and the technology is maturing,
(competitive) companies in the export markets begin manufacturing. This leads
to a substitution of US exports through products manufactured abroad.
(3) Lower labor and transport costs increase the competitiveness of foreign
producers on the world market and these become able to beat US competition
in certain markets. US companies selectively withdraw from certain markets
and begin investing in overseas production facilities.
(4) Last, foreign companies have become so competitive that they start exporting
to the US and compete effectively against US-made products.
27
What are retro products?
“retro” brands, i.e. relaunched historical brands with updated features.45
These brands appeal to consumers’ nostalgic leanings by using familiar slogans or
packages. They connect to
times when the world seemed safer, more comprehensible, and less commercial. Usually retro products combine
old-fashioned forms with up-to-date functions and thereby harmonize the past with the
present.
28
Relativism theory:
Relativism considers different views of morality as equally valid and rejects the idea of a common
universal standard.
Relativism is often used to justify immoral behavior.
29
Describe selective distribution
Selective distribution lies somewhat between the two aforementioned strategies (intensive and exclusive distribution)
since some, but not all, available outlets are used. Companies attempt to balance
a wider reach with a lower cost than that of intensive distribution. Specialty goods like home appliances or furniture are products usually associated with this
strategy
30
3 types of Distribution:
1) intensive: n as many outlets as possible and
is most commonly used for goods that are impulse purchases. Bread, milk. Low loyalty
2) exclusive: restricting the number of intermediaries that are allowed to stock a particular product. customers are willing to travel to obtain a product. Chanel
3) Selective: some, but not all, available outlets are used. Companies attempt to balance a wider reach with a lower cost than that of intensive distribution. Specialty goods like home appliances or furniture are products usually associated with this strategy
