全球营销-基坎-第六版-第十一章题库-答案.doc

Global Marketing, 6e (Keegan/Green)Chapter 11 Pricing Decisions1) Price floor and price ceiling are two basic factors which determine the boundaries within which prices should be set.Answer: TRUEDiff: 1Page Ref: 330- 3312) Price can be used as a strategic variable to achieve specific goals, including ROI, profit, and rapid recovery of product development costs.Answer: TRUEDiff: 2Page Ref: 332AACSB: Analytic Skills3) The market skimming pricing strategy is a part of a deliberate attempt to reach a market segment that is willing to pay a premium price for a particular brand or for a specialized or unique product.Answer: TRUEDiff: 2Page Ref: 332AACSB: Reflective Thinking4) Market skimming is a strategy that uses low prices as a competitive weapon to gain market position.Answer: FALSEDiff: 2Page Ref: 332AACSB: Reflective Thinking5) The skimming pricing strategy is appropriate in the mature phase of the product life cycle.Answer: FALSEDiff: 2Page Ref: 332AACSB: Reflective Thinking6) When Apple introduced iPhone in the United States in the summer of 2007 with a sale price of $ 599 it used skimming pricing strategy.Answer: TRUEDiff: 2Page Ref: 332AACSB: Reflective Thinking7) Price can be used as a competitive weapon to gain or maintain market position.Answer: TRUEDiff: 2Page Ref: 333AACSB: Reflective Thinking8) A market penetration pricing strategy calls for setting price levels that are high enough to quickly build market share.Answer: FALSEDiff: 2Page Ref: 333AACSB: Reflective Thinking9) Penetration prices often mean that the product may be sold at a loss for a certain period of time.Answer: TRUEDiff: 2Page Ref: 333AACSB: Reflective Thinking10) Sony used penetration pricing when it launched the Walkman personal stereo in 1979.Answer: TRUEDiff: 2Page Ref: 333AACSB: Reflective Thinking11) Hewlett-Packard is the worlds leading marketer of inkjet printers. H-Ps printers are priced very low and margins are slim; by contrast, the company enjoys healthy margins on sales of replacement ink cartridges. This approach is sometimes known as razors and blades pricing.Answer: TRUEDiff: 2Page Ref: 333-334AACSB: Reflective Thinking12) Toyota, Sony, Olympus, and Komatsu are some of the well-known Japanese companies that use target costing, a process which is also known as design to cost.Answer: TRUEDiff: 3Page Ref: 334AACSB: Reflective Thinking13) Vodaphone, AT&T and other cellular service providers buy handsets at prices set by Motorola, Nokia, and other manufacturers, and then subsidize the cost by offering significant discounts.Answer: TRUEDiff: 2Page Ref: 334AACSB: Reflective Thinking14) If the terms of trade for an export transaction specify ex-works, the exporter/seller pays all expenses incurred until the product is delivered to the importer/buyers warehouse.Answer: FALSEDiff: 3Page Ref: 338-339AACSB: Reflective Thinking15) To protect against possible losses from currency exchange rates, exporters add a charge known as CIF to the ex-works price of most export shipments.Answer: FALSEDiff: 2Page Ref: 338-339AACSB: Reflective Thinking16) With a free on board (FOB) named port, the responsibility and liability of the seller ends at the docking point at the port.Answer: FALSEDiff: 2Page Ref: 338AACSB: Reflective Thinking17) Currency fluctuations mean that companies doing business in global markets should regularly review prices and make adjustments when conditions dictate.Answer: FALSEDiff: 3Page Ref: 340-341AACSB: Reflective Thinking18) Suppose the Japanese yen is weak in relation to the U.S. dollar. Japanese firms should be able to stress price benefits for products exported to the U.S.Answer: TRUEDiff: 2Page Ref: 340-341AACSB: Reflective Thinking19) 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.Answer: FALSEDiff: 2Page Ref: 340-341AACSB: Analytic Skills20) Within the Euro zone price transparency means that buyers will be able to comparison shop easily because goods are priced in euros as opposed to marks, francs, or lira.Answer: TRUEDiff: 2Page Ref: 342AACSB: Reflective Thinking21) When domestic currency is weak, it is advisable to speed repatriation of foreign-earned income and collections.Answer: TRUEDiff: 2Page Ref: 342AACSB: Reflective Thinking22) When domestic currency is strong, expenditures in the local (host country) should be minimized.Answer: FALSEDiff: 2Page Ref: 342AACSB: Analytic Skills23) When domestic currency is weak, it is advisable to bill foreign customers in the domestic currency.Answer: FALSEDiff: 2Page Ref: 342AACSB: Reflective Thinking24) Improved price transparency in the Euro zone leads to greater price disparities.Answer: FALSEDiff: 2Page Ref: 342AACSB: Reflective Thinking25) In countries where high inflation is the rule, companies should make price adjustments to maintain operating margins.Answer: TRUEDiff: 2Page Ref: 344-345AACSB: Reflective Thinking26) Louis Vuitton executives raised prices in 2008 and sales continued to increase.Answer: TRUEDiff: 2Page Ref: 361-362AACSB: Reflective Thinking27) Germany has traditionally severely restricted competition in a number of industries.Answer: TRUEDiff: 2Page Ref: 346AACSB: Reflective Thinking28) The video piracy problem is not confined to emerging markets. In the United States, losses from piracy exceed $1 billion each year for the movie industry as a whole.Answer: TRUEDiff: 2Page Ref: 346AACSB: Reflective Thinking29) In some instances, deregulation represents a quid pro quo that will allow German companies wider access to other country markets.Answer: TRUEDiff: 2Page Ref: 346AACSB: Reflective Thinking30) The open-skies agreement between the United States and Germany would allow Lufthansa to fly more routes within the United States.Answer: TRUEDiff: 1Page Ref: 346AACSB: Reflective Thinking31) In the United States, Levi Strauss & Company has to face competitive behavior since JCPenny and Sears are both aggressively marketing their own brands.Answer: TRUEDiff: 2Page Ref: 347AACSB: Reflective Thinking32) Marketers of domestically manufactured finished products may be forced to switch to offshore sourcing of certain components to keep costs and prices competitive.Answer: TRUEDiff: 2Page Ref: 348AACSB: Reflective Thinking33) Dieter Zietsche, sales chief at Germanys Mercedes-Benz, once said that, in setting prices, We know what the customer wants, and he will have to pay for it. This is an example of an ethnocentric pricing policy.Answer: TRUEDiff: 2Page Ref: 348AACSB: Reflective Thinking34) When subsidiary country managers are given broad discretion to set prices in their markets, a polycentric pricing strategy is in evidence.Answer: TRUEDiff: 2Page Ref: 348-349AACSB: Reflective Thinking35) In global marketing, there is no such thing as a normal margin for pricing.Answer: TRUEDiff: 2Page Ref: 350AACSB: Reflective Thinking36) The terms parallel importing and gray marketing mean the same thing.Answer: TRUEDiff: 2Page Ref: 350-351AACSB: Reflective Thinking37) A global company that uses market skimming as a pricing strategy is likely to invite charges of dumping by competitors in host-country markets.Answer: FALSEDiff: 2Page Ref: 352-354AACSB: Reflective Thinking38) According to current GATT standards, governments cannot penalize foreign companies for dumping if the export price of a given product differs from the domestic price by less than 2 percent.Answer: TRUEDiff: 2Page Ref: 353AACSB: Reflective Thinking39) Transfer pricing is a term that applies to transactions between different divisions or units of the same company.Answer: TRUEDiff: 2Page Ref: 354-355AACSB: Reflective Thinking40) Lockheed and other military aircraft marketers are likely to face requests for offsets before closing a sale in the Middle East.Answer: TRUEDiff: 2Page Ref: 357-358AACSB: Reflective Thinking41) Which pricing strategy would be most appropriate for a marketer of luxury designer brands?A) gray marketB) skimmingC) penetrationD) market holdingE) cost basedAnswer: BDiff: 2Page Ref: 332AACSB: Reflective Thinking42) 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 marketB) skimmingC) penetrationD) market holdingE) cost basedAnswer: BDiff: 2Page Ref: 332AACSB: Reflective Thinking43) Which pricing strategy did Sony use when launching the Walkman personal stereo?A) gray marketingB) skimmingC) penetrationD) market holdingE) cost basedAnswer: CDiff: 2Page Ref: 333AACSB: Reflective Thinking44) In India, consumers do not like to be locked in to long-term contracts and Apple distributes its iPhone exclusively through stores operated by Airtel, an India carrier, and Vodaphone. This is an example of:A) gray market.B) price bundling.C) market skimming.D) razors and blades.E) cost-based.Answer: DDiff: 2Page Ref: 333-334AACSB: Reflective Thinking45) Excelsior Corp. launches a new hand-held personal digital assistant (PDA) for busy corporate executives. The initial retail price is set at $699. One year later, in an effort to reach a broader market, the price is lowered to $299. Which of the following describes the pricing strategies used by Excelsior Corp?A) skimming strategy followed by penetration strategyB) penetration strategy followed by cost based strategyC) penetration strategy followed by skimming strategyD) penetration strategy onlyE) skimming strategy onlyAnswer: ADiff: 2Page Ref: 332-334AACSB: Reflective Thinking46) A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring?A) Is the price competitive in view of local market conditions?B) Does the price reflect the products quality?C) Will authorities in export markets view the price as reasonable or exploitative?D) Does the price take antidumping laws into consideration?E) all of the aboveAnswer: EDiff: 2Page Ref: 335-337AACSB: Reflective Thinking47) Which pricing strategy has the advantage of being simple to calculate but the disadvantage of ignoring demand and competitive conditions?A) gray marketingB) skimmingC) penetrationD) market holdingE) cost basedAnswer: EDiff: 2Page Ref: 335-337AACSB: Reflective Thinking48) Which of the following incoterms apply to all modes of transportation?A) ex-worksB) FASC) delivered duty paidD) FOBE) both A and CAnswer: EDiff: 3Page Ref: 338AACSB: Reflective Thinking49) A manufacturer attempting to set prices for its products in export markets must realize that CIF, VAT, and distributor markup all lead to:A) currency devaluations.B) dumping charges.C) market skimming.D) price escalation.E) market penetration.Answer: DDiff: 2Page Ref: 338-339AACSB: Reflective Thinking50) If a distributors margins are based on the landed price of an import shipment, they will be based on:A) ex-works price.B) transportation costs.C) insurance costs.D) VAT.E) all of the aboveAnswer: EDiff: 2Page Ref: 338-340AACSB: Reflective Thinking51) Which of the following does not contribute to price escalation in global marketing?A) shipping and insurance chargesB) value added taxes (VAT)C) different Incotherms as incentivesD) duties and tariffsE) fluctuating exchange ratesAnswer: CDiff: 2Page Ref: 338-340AACSB: Reflective Thinking52) In July 2001, the euros 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.Answer: ADiff: 3Page Ref: 340-343AACSB: Analytic Skills53) Which of the following would not be used by an exporter with a weak home country currency?A) Expand product line and add more costly features.B) Speed repatriation of foreign-earned income.C) Buy advertising, insurance, and other services in home country market.D) Shift sourcing outside home country market.E) Exploit marketing opportunities in all markets.Answer: DDiff: 2Page Ref: 342AACSB: Reflective Thinking54) Suppose a company selling in various country markets makes statements such as we know what the customer wants, and he or she will have to pay for it. This is an indication of a(n) _ approach to setting prices.A) ethnocentricB) polycentricC) regiocentricD) geocentricE) adaptationAnswer: ADiff: 2Page Ref: 348AACSB: Reflective Thinking55) According to a recent study of European industrial exporters, companies that utilized independent distributors would be most likely to utilize:A) ethnocentric pricing.B) polycentric pricing.C) regiocentric pricing.D) geocentric pricing.E) extension pricing.Answer: BDiff: 2Page Ref: 349-350AACSB: Reflective Thinking56) Which automaker was described as using an ethnocentric approach to setting prices in the United States?A) ToyotaB) NissanC) VolkswagenD) MercedesE) LexusAnswer: DDiff: 3Page Ref: 348AACSB: Reflective Thinking57) Which of the following pricing strategies recognizes both local market differences and the importance of headquarters input into pricing decisions?A) ethnocentric pricingB) polycentric pricingC) geocentric pricingD) rigid cost-based pricingE) extension pricingAnswer: ADiff: 2Page Ref: 348AACSB: Reflective Thinking58) Which of the following would NOT be taken into account by a company using an ethnocentric approach to pricing decisions?A) the possibility of implementing a penetration strategyB) profitable price points that could be tied to local sourcing as opposed to home-country sourcingC) integration of price with other marketing mix elementsD) factors unique to individual country marketsE) none of the above would be taken into account by a company using ethnocentric pricingAnswer: EDiff: 2Page Ref: 348-349AACSB: Reflective Thinking59) If company managers decide to set the export price for a particular product at an amount equivalent to the home country price, they would be using which approach to pricing?A) ethnocentricB) polycentricC) regiocentricD) geocentricE) extension pricingAnswer: ADiff: 2Page Ref: 348-349AACSB: Reflective Thinking60) The unauthorized distribution of trademarked goods to exploit price differentials in world markets is known as:A) market skimming.B) black marketing.C) gray marketing.D) dumping.E) licensing.Answer: CDiff: 2Page Ref: 350-351AACSB: Reflective Thinking61) When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging consumers to purchase Tag Heuer products from authorized dealers only, the company is most likely attempting to combat the _ problem.A) countertradeB) market holdingC) price escalationD) gray marketE) market skimmingAnswer: DDiff: 2Page Ref: 350-351AACSB: Reflective Thinking62) In the early 1990s, the U.S. International Trade Commission ruled that several Japanese manufacturers were selling active-matrix flat panel display screens in the U.S. at less than fair value and thereby injuring the sole U.S. producer of similar screens. The ITCs ruling concerned:A) black marketing.B) market skimming.C) gray marketing.D) dumping.E) licensing.Answer: DDiff: 2Page Ref: 350-351AACSB: Reflective Thinking63) Following the 1997 currency crisis in Asia, which American industry appealed to President Clinton for protection from foreign producers that were allegedly dumping products in the United States:A) auto industry.B) computer industry.C) steel industry.D) photo products industry.E) restaurant industry.Answer: CDiff: 2Page Ref: 353AACSB: Reflective Thinking64) If a company sells products in export markets at prices that are below fair market value and that can harm producers in the export market, that company may be accused of:A) market skimming.B) using offsets.C) pursuing artificially high margins.D) dumping.E) gray marketing.Answer: DDiff: 2Page Ref: 352-354AACSB: Reflective Thinking65) Germanys Bayer Group was fined millions of dollars to settle a lawsuit alleging it had conspired with ArcherDanielsMidland and other global companies to set prices for an enzyme used in animal feeds. What was the issue in this lawsuit?A) price skimmingB) market penetrationC) price bundlingD) price fixingE) dumpingAnswer: DDiff: 2Page Ref: 354AACSB: Reflective Thinking66) Nintendo was fined nearly $ 150 million after it was determined that the video game company had colluded with European distributors. The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices. This is a classic example of:A) price skimming.B