资源描述
Chapter 11Setting Global PricesTrue / False Questions1.If a company is selling a commodity-type of product or service, then quality will be the driving factor determining sales. TrueFalse2.Companies that have a strong brand image relative to competition are often subjected to price pressures. TrueFalseMultiple Choice Questions3.To be price competitive in the Chinese toothpaste market, Proctor and Gamble _. A.introduced a new product with lower manufacturing costs B.reduced price and profit to meet Chinese consumer requirements C.reduced the number of channel partners in China D.significantly reduced the amount of toothpaste in each package 4.India-based Arvind Ltd. produces products for Wrangler and Tommy Hilfiger and also produces price-appropriate “Ruff & Tuff” jeans in India via _. A.use of substandard fabric B.a USD 6.00 sew it yourself kit C.cost reductions resulting from low levels of advertising D.significantly reduced profits 5.The two dimensions of the consumers perceived price of a product include _. A.core price and supplemental price B.company and consumer prices C.retail and wholesale prices D.monetary and non-monetary prices 6.Lu-Ann has finally decided to join the ranks of PC users after years of being a loyal Mac devotee. When she starts using her new PC she is uncomfortable with the differences in operation, and realizes she will have to spend several hours re-learning her PC operating skills. Lu-Anns situation is representative of a _. A.monetary price B.non-monetary price C.PC price D.promotional price True / False Questions7.Non-monetary price represents the idea the consumers perception of a price as cheap or expensive. TrueFalseMultiple Choice Questions8.Max perceives himself to be a rational thinker. When determining which brand of flatscreen television to purchase, he analyzes the price of the item in relation to its specifications, and service warranties to find the product with the lowest total expected cost. Max applies the _ choice strategy. A.sale price B.price-averse C.best value D.price-seeking 9.Emmas selection of an $80.00 coffee maker instead of a $35.00 coffee maker with similar features marks her as a consumer who makes _ choices. A.price-seeking B.best-value C.price-averse D.sale price True / False Questions10.Globalization has resulted in a convergence of consumer price perceptions. TrueFalse11.Consumer rationality has been aided by the growing use of the Internet for shopping. TrueFalseMultiple Choice Questions12.A combination of price and prestige sensitivity in China has contributed to _. A.a large black market for counterfeit brands B.an inability for U.S. firms to be successful there C.large and rapid profitability for foreign firms entering the Chinese market D.a lack of interest in prestige brands 13.Global price comparisons have been facilitated by _. A.global price regulations B.websites such as NexT C.efforts by multinationals to standardize global pricing D.the convergence of global consumer purchasing behavior 14.GranitiFiandre tiles support their price positioning with communications that emphasize _. A.product life cycle pricing B.pricing promotions C.low-cost producer status D.value creation 15.Isabellas commissions to her foreign sales agent, as well as the costs of raw materials required to produce her product, are considered _. A.total costs B.export costs C.variable costs D.fixed costs 16.As Hans calculates his final price the introduction of his fishing gear into Australia, he assesses the impact of freight forwarding, import duties and country-of-origin marking. Hans is assessing _. A.fixed costs B.product development costs C.export-related charges D.finance charges 17.The addition of channel intermediaries in an export transaction will usually result in _. A.increased consumer prices or decreased profitability B.increased profitability or decreased prices C.an unprofitable export transaction D.retail prices too high to generate sales 18.All of these constitute methods of lowering the producers retail price except _. A.eliminating intermediaries B.including additional distributors and dealers in the distribution channel to increase sales C.reducing costly product features D.shifting production to countries with lower labor costs 19.Coordination of prices across countries often results in the reduction of _. A.gray market imports B.distribution channel partners C.customs duties D.profitability 20.When Ralph Lauren markets both its designer Ralph Lauren fashions to high end boutiques in global markets, and also markets the less expensive Lauren by Ralph Lauren brand to department stores in North America it is utilizing a _. A.wholesale pricing strategy B.direct sales strategy C.non-prestige pricing strategy D.two-tiered pricing strategy True / False Questions21.Socio-economic and political country characteristics are among the controllable elements that can influence a companys pricing strategies and policies. TrueFalseMultiple Choice Questions22.Marta is purchasing document scanners for her companys Greek headquarters building. The U.S. company supplying her has quoted her in U.S. dollars. Marta is incurring _ in proceeding with the deal as specified. A.import duties B.exchange rate risk C.distribution channel risk D.non-currency risk 23.Because the Danish Kroner is pegged closely to the value of the Euro, _. A.Danish consumers pay considerably less for products produced in Europe than in Denmark B.Danish consumers pay considerably more for products produced in Europe than in Denmark C.pricing in Kroner or Euro is almost equivalent D.high volatility surrounds Kroner/Euro transactions True / False Questions24.A credible floating exchange rate creates a threat to international trade. TrueFalseMultiple Choice Questions25.A periodic adjustment in the value of a currency in relation to other currencies is called a _. A.Special Drawing Rights B.devaluation C.fixed exchange rate D.floating exchange rate 26.With respect to money supply, price levels and current account balances, floating exchange rates can be _. A.excessively volatile B.a stabilizing factor C.regulated by the World Court D.easily predicted 27.One benefit of a weakening domestic currency is _. A.an increase inexports to foreign markets B.the increased price of exports to foreign markets C.greater stability in foreign currency transactions D.the increased value of domestic assets 28.The Economists Big Mac Index measures _. A.Purchasing Power Parity B.exchange rate fluctuations C.world economic health D.the relative price of food in various countries 29.Jennifer is Accounting Manager with 5M Corporation in Pittsburgh. She wishes to purchase the equivalent of USD 500,000 worth of sprockets from a firm in the UK. Her supplier insists on receiving payment in British pounds, and expects payment upon product delivery in three months.Jennifer realizes that between the time her purchase order is received and her product arrives, the value of the British pound in U.S. dollars could increase considerably, and she could wind up paying far more than shed anticipated due to currency exchange fluctuations. How can she employ hedging to mitigate this risk? A.She can cross her fingers and hope for the best! B.She can purchase $500,000 of British pounds now. C.She can invest in Euros. D.She can pay for the product immediately. 30.If inflation is high in a producers country, _. A.exit the market B.plan on increased margin levels. C.the company should implement a price increase D.the company may be forced to absorb the added costs 31.The Venezuelan governments application of government price controls on value priced, fresh ground coffee exports resulted in _. A.a shortage of premium priced and flavored coffees B.a decrease in the price of value-priced coffee C.a shift to sales of expensive, non-regulated coffee types D.an increase in sales of value-priced coffees 32.Government subsidies are typically introduced in order to _. A.increase a domestic firms competitiveness B.increase the quantity of imported goods C.increase local prices D.increase prices in export markets True / False Questions33.Centralized decision-making in international pricing leads to higher control of final prices and of their coordination across different countries. TrueFalseMultiple Choice Questions34.True Blue produces water treatment products. The firm has constructed several distribution centers in its EU markets that are specifically designed to accommodate the special tanker trucks used to transport the treatment chemicals. Its increased ability to control pricing in these markets is related to _. A.asset specificity B.its large size C.its prior experience in the international marketplace D.market acceptance of the product 35.Erics supervisor advises that his prices for organic pet foods in the Japanese market must deliver a 40% gross profit margin per unit no matter what competitive and demand conditions are evident. Eric is thus forced to apply _ pricing. A.market-based B.cost-based C.competition-based D.marketing-mix based 36.Demand elasticity is taken into consideration when the _ method is applied. A.export pricing B.cost-based pricing C.competition pricing D.profit-contribution pricing 37.The difference between incremental revenues and incremental cost of exporting in a foreign target market is represented by _. A.domestic versus export pricing B.profit contribution C.D.market-based pricing True / False Questions38.A skimming strategy is based on the concept that a company can charge some consumer segments higher prices for a product. TrueFalseMultiple Choice Questions39.Penetration pricing _. A.is successful in a market where consumers are price sensitive B.sets a high price for new products in order to quickly pay back R&D costs C.is not efficient in market share D.is best applied to prestige products 40.Because BlendBest products price are marketed through retail chains that operate in numerous global markets, their pricing strategy should reflect _. A.price customization B.price adaptation C.price standardization D.price modification True / False Questions41.Low-income emerging markets often require price adaptation for successful market penetration and retention. TrueFalse42.Dumping is the practice of selling products in other countries markets below cost or below domestic prices. TrueFalseMultiple Choice Questions43.Bolton watches are sold for an average price of $30.00 per unit in Taiwan, but typically command a price of $65.00 or higher in other global markets. When Boltons Taiwanese distributors resell the watches to Russia to obtain higher prices, it is an example of _. A.dumping B.a parallel import C.a tariff barrier D.price lining True / False Questions44.The existence of differences in transportation costs and local economic and financial conditions and increasing globalization are factors that favor decentralized price decision-making. TrueFalseMultiple Choice Questions45.Pricing for the medical supply industry tends to be standardized across different countries.Catronics, a maker of medical lab safety items, feels pressured by the pricing tactics of competitive global brands.Catronics is an example of a _. A.multi-local price follower B.local price follower C.global price follower D.global price leader True / False Questions46.Global price leaders often target and dominate a transnational segment where prices are homogeneous. TrueFalseMultiple Choice Questions47.The price set and paid for products shipped between units of the same organization is referred to as _ pricing. A.transfer B.unit C.multinational D.domestic 48.When Jims division is charged the same amount for the polypropylene he purchases from his sister division as the injection molding he competes with, his company is a proponent of _. A.competitive pricing B.adaptive pricing C.preferential pricing D.arms length pricing True / False Questions49.The most secure method of payment for an export order is advance payment. TrueFalseMultiple Choice Questions50.Banco de Roma has guaranteed that it will pay Giovanni 5,000 Euros upon receipt of documents confirming the transaction for which payment is expected. Giovanni is being paid via _. A.a letter of credit B.cash in advance C.open account D.countertrade True / False Questions51.Countertrade refers to the trading/exchange of goods or services without using currency. TrueFalseChapter 11 Setting Global Prices Answer KeyTrue / False Questions1.If a company is selling a commodity-type of product or service, then quality will be the driving factor determining sales. FALSEPrice is generally the driving sales factor in a commodity product or service. 2.Companies that have a strong brand image relative to competition are often subjected to price pressures. FALSECompanies with a strong brand image relative to competition are not often subject to price pressure. Multiple Choice Questions3.To be price competitive in the Chinese toothpaste market, Proctor and Gamble _. A.introduced a new product with lower manufacturing costs B.reduced price and profit to meet Chinese consumer requirements C.reduced the number of channel partners in China D.significantly reduced the amount of toothpaste in each package Correct! 4.India-based Arvind Ltd. produces products for Wrangler and Tommy Hilfiger and also produces price-appropriate “Ruff & Tuff” jeans in India via _. A.use of substandard fabric B.a USD 6.00 sew it yourself kit C.cost reductions resulting from low levels of advertising D.significantly reduced profits According to your text, the company introduced a sew-it-yourself kit to compete successfully in the Indian market. 5.The two dimensions of the consumers perceived price of a product include _. A.core price and supplemental price B.company and consumer prices C.retail and wholesale prices D.monetary and non-monetary prices While these are pricing factors, consumer price perception is based both on the products actual price (expensive or not) as well as sacrifice the consumer must make when purchasing a product; learning how to operate a new cell phone, for example. 6.Lu-Ann has finally decided to join the ranks of PC users after years of being a loyal Mac devotee. When she starts using her new PC she is uncomfortable with the differences in operation, and realizes she will have to spend several hours re-learning her PC operating skills. Lu-Anns situation is representative of a _. A.monetary price B.non-monetary price C.PC price D.promotional price This answer is incorrect, as the time she spends to learn how her new PC operates is not measured in currency, but rather, in sacrificing other, more enjoyable activities in which she could otherwise engage. True / False Questions7.Non-monetary price represents the idea the consumers perception of a price as cheap or expensive. FALSEThe consumers perception of a cheap versus expensive product is monetary in nature. Multiple Choice Questions8.Max perceives himself to be a rational thinker. When determining which brand of flatscreen television to purchase, he analyzes the price of the item in relation to its specifications, and service warranties to find the product with the lowest total expected cost. Max applies the _ choice strategy. A.sale price B.price-averse C.best value D.price-seeking Even items on sale could be higher-priced than a comparative product, so sale price is not a term that can define any one of the three consumer strategies used when facing uncertainty. 9.Emmas selection of an $80.00 coffee maker instead of a $35.00 coffee maker with similar features marks her as a consumer who makes _ choices. A.price-seeking B.best-value C.price-averse D.sale price Correct! True / False Questions10.Globalization has resulted in a convergence of consumer price perceptions. FALSEEven though Western multinational companies assume that Asian consumers have similar tastes and preferences, this is far from the truth, especially referring to the price-quality relationship. 11.Consumer rationality has been aided by the growing use of the Internet for shopping. TRUECorrect! Multiple Choice Questions12.A combination of price and prestige sensitivity in China has contributed to _. A.a large black market for counterfeit brands B.an inability for U.S. firms to be successful there C.large and rapid profitability for foreign firms entering the Chinese market D.a lack of interest in prestige brands Correct! 13.Global price comparisons
展开阅读全文