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INBU3450 International Marketing > Quiz #3 (ch. 8-9) > Flashcards

Quiz #3 (ch. 8-9) Flashcards

1
Q

What are the three major reasons a company will expand internationally?

A
  1. Saturated market at home
  2. Seek to spread risk by diversifying
  3. Competitive disadvantage of not entering market with faster growth rates
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2
Q

What are the four market entry strategies?

A
  1. Licensing
  2. Franchising
  3. Joint venture
  4. Wholly owned subsidiaries
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3
Q

Which market entry strategy has the disadvantage of the most risk?

A

Wholly-owned subsidiaries

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4
Q

Which market entry strategy has the risk “loss control of technology”

A

Joint venture

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5
Q

Which market entry strategies are the lowest cost and lowest risk strategies?

A

Licensing and franchising

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6
Q

Which market entry strategy provides the greatest share of profits?

A

Wholly-owned subsidiaries

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7
Q

Psychic distance paradox

A

Similarities can be overestimated

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8
Q

Target enters Canada using the same strategies that have worked in the US. Unfortunately, they failed. What did Target fail to account for?

A

Psychic distance paradox: Similarities can be overestimated.

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9
Q

What is the disadvantage of being a first mover?

A

First mover will make major investments while followers can learn from the successes and failures.

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10
Q

How long was Best Buy in Turkey?

A

14 months

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11
Q

What are the four top reasons for exiting a market?

A
  1. Tough competition
  2. Financial considerations
  3. Refocus on home market
  4. Political considerations
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12
Q

What is the example given for exiting a market due to tough competition?

A

Yahoo abandoned UK, Ireland, France, Germany, and Spain

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13
Q

What is the example given for exiting a market due to financial considerations?

A

Tesco has decelerated its international expansion after exiting Japan and USA.

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14
Q

What is the example given for exiting a market to refocus on the home market?

A

M&S divestment decisions in late 1990s are explained by the decline of sales at home.

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15
Q

What is the example given for exiting a market due to political considerations?

A

Louis Vuitton abandoned Argentina in 2012 due to tight government restrictions

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16
Q

What is an intangible cost to exiting a market?

A

Exiting one market could lead to firm losing credibility in other markets

17
Q

______ left Russia after just four months.

A

Carrefour

18
Q

__________ reentered the UK after Mexican food increased in popularity there.

A

Taco Bell

19
Q

What is the Dunkin’ Donuts example for market reentry given in class?

A

Dunkin’ Donuts returned to Russia 11 years after exiting in response to competitor’s Starbucks recent success there.

20
Q

_______ reentered Japan after 20 years

A

IKEA

21
Q

How did Subway adapt to their product offering in Singapore? South Africa?

A

Singapore: People don’t eat sandwiches, so they had to customize the bread they were using.
South Africa: A traditional sandwich is a chicken mayo, so Subway started offering this sandwich in their South Africa stores.

22
Q

Country of origin effect

A

The influence that the country of manufacture, assembly, or design has on the perceived quality of the product.

23
Q

Apple’s phones used to say “Designed in California” on the back. What is Apple taking advantage of?

A

The country of origin effect

24
Q

What is the Frito-Lay example of adaptation?

A

Fried foods in China are associated with yang, a food that causes body heat and should be avoided in the summer. To combat this perception, Frito-Lay introduced a “cool lemon” chip packaged in pastel shades.

25
Q

What is the P&G example of adaptation?

A

P&G had to adapt Cheer detergent in Japan because customers liked to use cold tap water and used bath water.

26
Q

What is the IKEA example of adaptation?

A

IKEA’s marketing strategy differs between Europe and China.

27
Q

How does promotion strategies for IKEA differ between china and Europe

A

In Europe, IKEA catalogue is the main marketing too.

In China, IKEA advertises on social media and micro-blogging websites.

28
Q

Logistically how does IKEA differ between Europe and China?

A

IKEA makes its products in China for lower labor costs and for no import taxes when selling in the Chinese market

29
Q

Does McDonald’s use a standardized approach or adapted approach between markets?

A

Company uses a standardized approach for many products but adapts its product between markets

30
Q

What are the four ways services differ from products?

A
  1. Intangible - cannot be stored or readily displayed.
  2. Simultaneous - production and consumption happen at the same time.
  3. Heterogeneous - production lines do not exist to deliver standardized products.
  4. Perishable - cannot be stored
31
Q

True or false: Services are heterogeneous

A

True

INBU3450 International Marketing (5 decks)

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