Chap 17

1) Tommy Hilfiger has encountered some European resistance to the sale of its products because ________.

• many European consumers associate France and Italy, rather than the United States, with upscale fashions
• its customary prices, especially for the German market, have been out of reach for its target market
• it has refused to adjust products to fit the tastes and needs of local consumers
• it has depended on self-service in its company-owned stores

2) International marketing differs from domestic marketing in that ________.

• marketing principles are different
• consumers prefer domestically made merchandise
• environmental variations require applying principles differently
• low prices are a more important competitive factor in foreign markets

3) In comparing international and domestic marketing, it is best to state that ________.

• similar principles are at work
• mass-market orientations are most effective
• principles differ for product and price, but not for advertising
• the differences between them can be studied through gap analysis

4) When selling a commodity for which there is little possibility of product differentiation, a company would likely use which of the following orientations internationally?

• customer orientation
• production orientation
• sales orientation
• strategic marketing orientation

5) All of the following are true about passive exports EXCEPT that ________.

• companies adapt their products very little to foreign consumer preferences
• companies frequently export only if they have excess capacity
• companies generally quote higher prices on exports than on domestic sales
• they refer to the filling of unsolicited requests from abroad

6) Companies using a sales orientation find their greatest ability to sell the same product in more than one country when ________.

• promotional programs are identical in each country
• consumer characteristics are similar
• the product is a household item
• the product has a low price relative to incomes

7) Which of the following would be an example of a customer orientation in international marketing?

• A cosmetics company bans animal testing of its products to gain goodwill.
• A fruit company brands the bananas it sells in foreign and domestic markets.
• A beer company makes non-alcoholic beer for a country that bans the sale of alcohol.
• A plastics manufacturer makes some components to the specifications of a foreign company.

8) Pulte Homes adapts its marketing to foreign differences by making minor changes to bathrooms and outdoor patios. However, Pulte Homes uses the same floor plans and exterior attributes in all countries to gain economies of standardization. Pulte Homes most likely follows a ________.

• social marketing orientation
• sales orientation
• strategic marketing orientation
• production orientation

9) Which of the following BEST describes a company that follows a social marketing orientation?

• It considers political and safety dimensions of its products.
• It is a not-for-profit entity based in a developed country.
• It is a government-owned entity from an emerging economy.
• It generates sales to niche markets using social networking sites.

10) ________ is the most common way of identifying market segments within a country.

• Psychographics
• The Internet
• Gap analysis
• Demographics