International Marketing Chapter Exam Questions
Course Introduction
International Marketing explores the strategies and practices involved in marketing products and services across national borders. The course examines the global marketing environment, including cultural, economic, political, and legal factors that affect marketing decisions. Students will learn about market research for international markets, segmentation and targeting, product adaptation, pricing strategies, distribution channels, and promotional tactics specific to global contexts. Emphasis is placed on understanding how multinational companies develop, implement, and manage marketing programs that cater to diverse international consumers, as well as ethical and sustainability issues in the global marketplace.
Recommended Textbook
International Marketing An Asia Pacific Perspective 7th Edition by Richard Fletcher
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Page 2
Chapter 1: Rationale for International Marketing
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Sample Questions
Q1) The WTO replaced which of the following?
A) GATT
B) EU
C) GSM
D) WAP
E) ASEAN
Answer: A
Q2) The product life cycle paradigm is a market-specific approach.
A)True
B)False
Answer: True
Q3) With the advent of the internet, firms do not have to internationalise by moving from elementary modes of international behaviour to more advanced modes of international behaviour to the same extent.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Avoiding the Pitfalls of the International Political and Legal Environment
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Sample Questions
Q1) Legal constraints on a product entering a new international market include:
A) the packaging of the product.
B) information on product labels.
C) the physical and chemical composition of the product.
D) options A, B and C.
E) options A and C only.
Answer: D
Q2) Within parliamentary democracies, policies are designed to reflect the wishes of the majority.
A)True
B)False
Answer: True
Q3) Transfer pricing involves a firm setting the prices at which it transfers products or technologies to affiliates in other countries.
A)True
B)False
Answer: True
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Page 4
Chapter 4: Catering for the Social and Cultural
Environment of International Marketing
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Sample Questions
Q1) Culture is the glue that binds groups together. Name four common characteristics of its many definitions. Which of these might give international marketers the most trouble?
Q2) What is meant by high-context and low-context cultures? What are some of the issues that can arise for marketers in an international context when moving from one style of context to the other?
Q3) A frequent problem encountered by Australian businesspeople in Asia (particularly in Japan) is whether 'yes' means 'yes' or merely 'I hear what you are saying'.
A)True
B)False
Q4) Overall, Asian customers are less likely to be brand loyal to products than Australians.
A)True
B)False
Q5) Bribery is an example of business customs that are not universal.
A)True
B)False
Q6) Explain psychic distance. What role does it play in international marketing?
Page 5
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Chapter 5: Technology Change and International Marketing
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Sample Questions
Q1) Internet users and online shoppers tend to:
A) be either convenience or price-oriented and use the web to seek out a bargain.
B) be more goal or task oriented than experience oriented when shopping.
C) have an ambivalent attitude towards technology.
D) options A, B and C.
E) options A and B only.
Q2) The paradigm shift caused by the information age and the convergence of industries using digital technologies has reduced the speed at which international marketing has been able to penetrate worldwide markets.
A)True
B)False
Q3) For a product to be more readily adopted in an overseas market, it should be:
A) observable in the public arena.
B) compatible with local customs and habits.
C) able to deliver a relative advantage over already existing alternative products.
D) options A, B and C.
E) options A and B only.
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Page 6
Chapter 6: Contemporary Environmental Variables in International Marketing
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Sample Questions
Q1) Cronyism is a form of corruption that involves favouring only close family.
A)True
B)False
Q2) Geography and climate can play a role in consumer preferences and behaviours. Explain how you would cater for these differences as an international marketer. Use examples such as food and beverage, clothing and shelter.
Q3) Views of ethical behaviour differ and in some countries bribery is seen as an accepted business practice. From a relativist perspective, bribery would be regarded as:
A) acceptable if it leads to an opening into a new market.
B) acceptable if it is customary in the host country.
C) unacceptable under any circumstances.
D) acceptable if it is going to benefit the organisation.
E) acceptable if it is beneficial to both parties.
Q4) A universalist perspective of ethics in international marketing takes the view that what is ethical is determined by the host culture.
A)True
B)False
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Chapter 7: Research in International Markets
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Sample Questions
Q1) Because cultural bias can introduce a level of selective perception, the interpretation of data gathered for an international market usually involves a high degree of cultural sensitivity. Any cultural bias can best be minimised by using:
A) at least one data interpreter in the researched country who is either from that country or is well acquainted with the business customs of that country.
B) a panel of data interpreters who have an open-minded approach to research.
C) data interpreters with diverse backgrounds, so that they have no specific bias towards the country or culture.
D) professional statisticians to interpret data with no focus on cultural issues.
E) the research designer to interpret the data from the research.
Q2) Information for how to approach the market includes:
A) monitoring the success of competitors.
B) collating information on the business environment.
C) determining sales potential.
D) measuring market growth.
E) testing all elements of the marketing mix.
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Chapter 8: International Market Selection and Entry
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Sample Questions
Q1) The OLI paradigm describes the degree to which the firm has advantages due to its:
A) ownership, location and internalisation.
B) openness, location and internationalisation.
C) ownership, licensing and import potential.
D) ownership, location and innovation.
E) openness, location and innovation.
Q2) Manufacturing-based entry is often referred to as direct financial investment (DFI).
A)True
B)False
Q3) In international marketing, the use of countertrade is usually regarded as an example of ________-based market entry:
A) export
B) government
C) franchise
D) relationship
E) network
Q4) List the EXTERNAL factors involved in market screening that are related to the international market.
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Chapter 9: International Competitive Strategy
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Sample Questions
Q1) 'Mirroring capability' is where:
A) companies focus on linear relationships within the value chain.
B) businesses coordinate, measure and control business processes.
C) companies use the flow of information in their virtual value chain to create new customer relationships.
D) the notion that the next person in the value chain is also your customer is emphasised.
E) physical steps in the value chain are substituted with virtual ones to create a parallel value chain.
Q2) Porter suggests that the four determinants of national competitive advantage are; factor conditions, supply conditions, supporting industries and firm infrastructure.
A)True
B)False
Q3) Factors that encourage adaptation include:
A) variations in ability to afford the item offered.
B) the influence of government.
C) lack of adequate support systems.
D) the physical environment.
E) all of the above.
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Page 10
Chapter 10: Internationalization, Relationships and Networks
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Sample Questions
Q1) Discuss the different bonds or ties that create the interdependence between the different actors of the network model.
Q2) A significant difference between relationship marketing in Western countries and relationship marketing in Asian countries is that in Western countries:
A)Relationships are opportunistic
B)Performance drives relationships
C)Relationships are predominantly driven by non-financial concerns
D)Relationships drive performance
E)The main emphasis is on personal relationships
Q3) The network paradigm emphasises the role of linkages and relationships in the international process.
A)True
B)False
Q4) In the international marketing context, competition usually occurs between:
A)Actors
B)Conglomerates
C)Companies
D)Brands
E)Networks
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Chapter 11: Globalization
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Sample Questions
Q1) Advertising on a global rather than local level is consolidated through:
A)Fewer agencies
B)Global advertising and promotion
C)Agencies that design world campaigns
D)All of the above
E)Options A and C only
Q2) Global marketing implies a universal preference for high quality goods with consistent pricing strategies.
A)True
B)False
Q3) Which of the following is NOT a force for global integration?
A)Deregulation
B)'Global village'
C)Network organisations
D)Saturation of the local market
E)All of the above
Q4) Outline the steps that need to be taken in developing a global strategy. Take a product or company of your choice and show how these steps are implemented in practice.
Q5) Discuss the drivers and consequences of market globalisation.
Page 12
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Chapter 12: Planning for Effective International Marketing
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Sample Questions
Q1) In addition to segmenting overseas markets on the more traditional bases of geography, economy and culture, it is possible for a firm to take a product diffusion approach to segmentation.
A)True
B)False
Q2) What role does segmentation play when an organisation is planning to go international? In your answer, identify the important factors in segmenting international markets.
Q3) Strategic dilution and lack of stakeholder commitment are two external factors that can lead to the failure of a firm's marketing plan.
A)True
B)False
Q4) It is not enough to base an international marketing plan on a brilliant idea. The idea must also:
A) be relevant.
B) enhance and strengthen other marketing mix elements.
C) be able to be put into practice.
D) all of the above.
E) options A and B only.
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Chapter 13: Modifying Products for International Markets
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Sample Questions
Q1) As an alternative to designing a new product for an overseas market from scratch, it may be possible to take existing technology and apply it to the needs of the overseas market.
A)True
B)False
Q2) When considering the direction in which the firm should proceed in an overseas market, there is a need to understand the extent to which the new capabilities acquired as a result of exposure to one overseas market can be leveraged so as to provide the firm with competitive advantage in another market.
A)True
B)False
Q3) A product that has been successful in its domestic market is guaranteed to be successful when exported to other countries.
A)True
B)False
Q4) Demand for industrial products is derived from consumer demand for a particular product.
A)True
B)False
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Chapter 14: International Pricing for Profit
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Sample Questions
Q1) Sporadic dumping is where a firm attempts to solve excess inventory problems in the home market by selling at whatever price it can get in an overseas market.
A)True
B)False
Q2) The most likely reason an organisation in the international market would reduce the number of intermediaries in the distribution channel is:
A) to reduce the cost of goods.
B) to establish a sales office.
C) in response to price changes.
D) all of the above.
E) options A and B only.
Q3) For terms of sale, ex-works (EXW) is the price of the product at the point of origin.
A)True
B)False
Q4) How important is preliminary planning in the setting of an international price structure? What are the most important factors that need to be taken into account by the organisation?
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15
Chapter 15: Promotion in International Marketing
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Sample Questions
Q1) Which of the following is a stage in the buyer's decision process:
A)Vendor and product purchase selection
B)Post-purchase evaluation
C)Information search
D)All of the above
E)Options A and B only
Q2) Discuss how social media has changed the way firms interact with their international customers.
Q3) Humour in international advertising is a useful way of creating a global approach which helps overcome language and cultural barriers.
A)True
B)False
Q4) In a large country such as India, which strategies would you use if you were developing a promotional campaign for a generic product to gain the strongest reach?
Q5) Web advertisements are often aimed towards a mass audience.
A)True
B)False
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Chapter 16: Effective International Distribution
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Sample Questions
Q1) In 'direct' exporting, an overseas export agent working on behalf of a producer sells the goods in the overseas market and will receive:
A)A commission on the sale, after taking ownership of the goods
B)A commission on the sale, without taking ownership of the goods
C)A monthly or annual retainer, and take ownership of the goods
D)A monthly or annual retainer, without taking ownership of the goods
E)Receive a wage or salary as a direct employee of the producer
Q2) Stage of economic development is a strong influence on the number of retailers in a country.
A)True
B)False
Q3) When operating in international markets the selection of an agent is of prime importance. Of the following sources which would be suitable to gain information regarding agents:
A)Industry journals
B)Chambers of manufacturers
C)Chambers of commerce
D)All of the above
E)Options A and C only
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Page 17
Chapter 17: Marketing Services and Projects Overseas
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Sample Questions
Q1) The rise of low contact service within the service sector can be attributed to:
A)Self service
B)Time constraints
C)Electronic delivery of services
D)All of the above
E)Options A and C only
Q2) In the marketing and business management services sub-sector Australia's exports almost always exceed imports
A)True
B)False
Q3) Discuss ways in which the internet can be used to overcome some of the issues of the heterogeneity of services in international marketing.
Q4) When screening bids for international projects, internal and external factors are used at each stage of the screening process.
A)True
B)False
Q5) How does the marketing of business services overseas differ from that of consumer goods services? Use examples to explain your answer.
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Chapter 18: International Marketing in the Decade Ahead
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Sample Questions
Q1) Because BOP consumers' incomes are low, there is not a sustainable amount of spending by these consumers.
A)True
B)False
Q2) Historically the focus of international marketing has been on:
A)Developing customer relationship management systems
B)Creating networks in international markets
C)Corporate and social responsibility
D)Identifying and segmenting markets that have customers with a capacity to consume
E)All of the above
Q3) Which of the following variables is often regarded as the most accurate determination of social class?
A)Occupation
B)Value orientations
C)Interactions
D)Personal performance
E)Possession
Q4) In what ways may a firm need to adjust its Western management approach when entering emerging markets?
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