International Marketing Flashcards

Flashcards for International Marketing Practice Exam-3

What does price escalation refer to in international markets?

Increase in prices due to additional costs in imports

What is countertrade in international pricing?

Bartering goods instead of monetary payments

What is a common result of gray markets?

Lower prices for consumers

Which pricing strategy involves setting a low initial price to capture market share?

Penetration pricing

Which type of market condition is most suited to skimming pricing?

Markets with two distinct income levels

What is the primary goal of administered pricing?

To eliminate the impact of price competition

Which factor does NOT typically contribute to price escalation?

Economies of scale

What is a key challenge of countertrade agreements?

Evaluating the value of goods offered as payment

Why are luxury goods prone to gray markets?

They are heavily discounted in some markets.

What is the primary objective of dynamic pricing?

Adjusting prices based on demand and competition in real time

What is a disadvantage of full-cost pricing?

Difficulty competing in price-sensitive markets

Which pricing strategy works best in markets with high fixed costs and unused capacity?

Variable-cost pricing

What is one way to minimize the effects of price escalation?

Source components locally

Which of the following best describes price elasticity?

Sensitivity of consumers to price changes

What is a typical response to hyperinflation in international markets?

Increasing product prices

What is an effect of exchange rate fluctuations on pricing?

Changes in the cost of imports and exports

What is a characteristic of penetration pricing?

Capturing market share with low initial prices

Which of the following is an example of a cultural influence on pricing?

Consumers in high power distance cultures relying more on price as a quality signal

What is a key disadvantage of administered pricing?

It requires significant government intervention.

What is a goal of exclusive distribution in pricing strategies?

To control where products are sold

How can tax rates affect international pricing?

By influencing profit margins in foreign markets

Which of the following contributes to deflation in international markets?

Excess inventory and declining prices

What is a common reason for high tariffs in developing countries?

Protecting domestic industries

What is the significance of variable-cost pricing?

It considers only marginal costs for foreign sales.

Why is full-cost pricing not suitable for highly competitive markets?

It results in high prices due to fixed cost allocation.

Which of the following is a critical step in international advertising?

Understanding local market preferences

What is the primary goal of integrated marketing communications (IMC)?

Ensure consistency across all marketing channels

What is a common reason for international advertising message failures?

Misinterpretation due to cultural differences

Which approach to advertising is becoming more feasible in Europe?

Standardization of advertising messages

What is a key challenge in developing global advertising campaigns?

Cultural and linguistic diversity

Why might global advertising agencies have an advantage?

They can coordinate worldwide campaigns effectively.

What is an example of product attribute and benefit segmentation in advertising?

Highlighting benefits valued by specific cultures

What is a function of public relations in international marketing?

To manage unfavorable stories or rumors

Which of the following is NOT a creative challenge in global advertising?

Absence of global communication agencies

What is an example of a legal constraint in international advertising?

Prohibitions on certain claims in ads

What is a tactical choice in selecting international advertising agencies?

Using local domestic agencies for cultural interpretation

What is a key feature of integrated marketing communications?

Ensuring consistent messaging across all media

What is the purpose of pan-European promotions?

To achieve uniformity in brand messaging

Why do advertising messages often fail in international markets?

Poor understanding of consumer needs

What is a consumer criticism of advertising in Europe?

Advertising is viewed as nonreliable.

What is the impact of privacy laws on advertising in social media?

They restrict content delivery and targeting.

What does the communication process in advertising focus on?

Achieving consumer understanding and persuasion

What is an example of cultural diversity affecting advertising?

Variations in humor interpretation across countries

Which advertising strategy is becoming more prevalent in Europe?

Pan-European advertising

What is a global criticism of advertisements targeting children?

They are seen as exploiting a vulnerable audience.

Which region is emerging as more conducive to advertising standardization?

Europe

How does cultural interpretation impact advertising messages?

It requires tailoring ads to local contexts.

What is a benefit of using multinational advertising agencies?

They provide coordinated worldwide campaigns.

Which is a critical concern for global advertising campaigns?

Managing legal and regulatory constraints

What is a core feature of international public relations in IMC?

Managing corporate reputation globally

In the communication process, what is a common challenge in encoding messages for international audiences?

Translating messages accurately across languages and cultures

Which of the following represents the decoding stage in the international communication process?

Interpreting and understanding the message by the audience

What can lead to communication misfires in international advertising?

Misunderstanding during the decoding process

In the international communication process, what is a key barrier to effective transmission?

Media inadequacy in reaching the target audience

How can cultural diversity impact the feedback stage of the communication process?

It increases the complexity of interpreting consumer reactions.

What aspect of the communication process was likely misunderstood in this scenario (Launching a Beverage Brand in Japan)?

Decoding

How could the company improve its campaign to appeal to Japanese cultural values?

Focus on how the drink supports teamwork and collective success

Which challenge in the communication process is most evident in this case (Misinterpreted Humor in Germany)?

Cultural misinterpretation during decoding

What could the company have done to avoid this issue (Misinterpreted Humor in Germany)?

Use humor based on local cultural references

What aspect of international marketing communications does this scenario highlight (Legal Constraints on Advertising in France)?

Legal constraints on advertising

How can the company adjust its strategy to comply with local regulations?

Provide scientifically validated claims and disclaimers

What should the company have prioritized when designing this campaign (Social Media Advertising and Privacy Laws)?

Complying with privacy laws like GDPR

What adjustment could the company make to avoid legal issues in the future (Social Media Advertising and Privacy Laws)?

Collect consumer data transparently with explicit consent

Which element of the communication process was most problematic here (Advertising Misfires Due to Linguistics)?

Encoding

How could the company prevent such issues in future campaigns (Advertising Misfires Due to Linguistics)?

Conduct thorough linguistic and cultural checks before launching

What is the first step in designing an international sales force?

Identifying sales objectives

Which of the following is a key factor when recruiting international sales personnel?

Familiarity with local culture

What is a primary consideration when selecting salespeople for international assignments?

Adaptability to new cultures

Why is it important to prepare U.S. personnel for foreign assignments?

To reduce cultural adjustment challenges

Which of the following is NOT a common challenge in recruiting international salespeople?

Excessive familiarity with local traditions

What is a key advantage of hiring local sales representatives for international markets?

Minimizing costs associated with expatriates

What is one of the steps in preparing U.S. personnel for foreign assignments?

Providing cross-cultural training

Which of the following is a key characteristic of an effective international sales force?

High adaptability to diverse cultural settings

What is the primary goal of cross-cultural training for sales personnel?

To help them navigate cultural differences effectively

What is a key consideration in sales force management for international markets?

Understanding local market dynamics and consumer behavior

Who are third-country nationals in the context of international sales?

Salespeople from a country other than the home or target country

What is one advantage of using third-country nationals in international sales?

They may be more culturally accepted than home-country nationals.

Why are third-country nationals often preferred in politically sensitive markets?

They are perceived as neutral and less politically biased.