Questions:
Please complete a total of 10 questions from the list of questions provided. Please answer only 1 Short Answer Question.
True/False Questions:
1. When Apple introduced iPhone in the United States in the summer of 2007 with a sale price of $ 599 it used skimming pricing strategy.
a. True
b. False
2. A market penetration pricing strategy calls for setting price levels that are high enough to quickly build market share.
a. True
b. False
3. Suppose the Japanese yen is weak in relation to the U.S. dollar. Rather than stressing price benefits, Japanese companies exporting to the U.S. should emphasize quality improvements and after-sales service.
a. True
b. False
4. When domestic currency is strong, expenditures in the local (host country) should be minimized.
a. True
b. False
5. In countries where high inflation is the rule, companies should make price adjustments to maintain operating margins.
a. True
b. False
Multiple Choice Questions:
6. If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves, the company should use the ________ pricing strategy:
a. gray market
b. skimming
c. penetration
d. market holding
e. cost based
7. In July 2001, the euro's value relative to the dollar was about €1.00 = $0.85. By November 2009 the euro had strengthened to €1.00 = $1.48. All other things being equal, if a European-based global company wants to preserve margins for goods exported to the U.S. market, the company should:
a. raise prices in dollars.
b. switch to cost-based pricing.
c. adopt a policy of market penetration pricing.
d. reduce prices in dollars.
e. use skimming pricing.
8. In the language of global marketing, ________ is the phrase used to describe advertising that represents a middle ground between 100% standardization and 100% localization:
a. "stereotype advertising"
b. "template advertising"
c. "cookie-cutter advertising"
d. "compromise advertising"
e. "pattern advertising"
9. In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes:
a. rational appeals.
b. emotional appeals.
c. SRC appeals.
d. melodramatic appeals.
e. localized appeal.
10. According to recent research on advertising appeals in global marketing, which of the following countries rank high in both "think" and "feel" dimensions?
a. Austria, Canada, Germany, United States, Korea
b. Belgium, the Netherlands, India
c. Argentina, Brazil, Italy
d. Denmark, France, Hong Kong, Japan
e. Spain, Sweden, Taiwan
11. PepsiCo undertook an ambitious global program to revamp the packaging of its flagship cola. To raise awareness of its new blue can, Pepsi spent $500 million on advertising and PR; Pepsi leased a Concorde jet and painted it in the new blue color. This is a good use of:
a. product packaging that will help a product "sell itself."
b. Concorde jet for advertising and promotion.
c. IMC ( Integrated Marketing Communications).
d. packaging that can be transported in various ways.
e. advertising budget.
Short Answer Question:
12. If a Lexus car is priced in U.S. dollars and sold at the dollar converted price in Indian rupees, what sorts of problems can be expected? What is the difference between ethnocentric, polycentric and geocentric pricing?
13. There is an ongoing debate between "Standardization" versus "Adaptation" pertaining to global advertising. Explain how different sides of the arguments fit into the global context.