International Marketing Quiz 1

What is the purpose of the geocentric pricing approach in international marketing?

• To allow subsidiaries to set prices independently

• To have the same per-unit price worldwide

• To maximize profits by considering local market factors

• To eliminate intermediaries

Which factor can cause price escalation in international markets?

• Low transportation costs

• Tariffs and duties

• High competition

• Efficient distribution channels

What is the purpose of transfer pricing in international marketing?

• Setting prices for end consumers

• Determining prices for different distribution channels

• Establishing prices for intra-company movements

• Calculating taxes for cross-border transactions

Which type of distribution channel involves incorporating all channel members under one leadership?

• Vertical integration

• Omni-channel distribution

• Multiple-channel distribution

• Single-channel distribution

What is the main advantage of advertising as a communication tool in international marketing?

• High level of personalization

• Low cost

• Ability to reach a mass audience

• Direct two-way communication

In which type of culture, individuals seek fulfillment of their own goals over those of the group?

• High Individualism

• Low Collectivism

• High Masculinity

• Low Uncertainty Avoidance

What is the purpose of public relations in international marketing?

• To boost short-term customer buying

• To enhance long-term customer relationships

• To increase sales through discounts

• To create brand awareness through advertising

Which sales promotion tool involves offering a free product sample to customers?

• Premiums

• Samples

• Cash refunds

• Coupons

What is the main disadvantage of ethnocentric pricing in international marketing?

• Allows for adaptation to local market factors

• Maximizes profits in each market

• Offers extreme simplicity

• Does not respond to competitive and market conditions

Which factor can influence the length of a distribution channel in international marketing?

• Competitive differences

• Sociocultural differences

• Economic differences

• Nature of demand