International Pricing Factors Quiz
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Questions and Answers

What type of factors include past and current organizational policies in international pricing?

  • Environmental factors
  • Product factors
  • Market factors
  • Firm-level factors (correct)

Which factor directly influences the final price through elements like the length of the distribution channel?

  • Firm-level factors
  • Environmental factors
  • Market factors
  • Product factors (correct)

What are examples of factors that belong to the environmental category in international pricing?

  • National government policies and regulations (correct)
  • Product innovation and uniqueness
  • Consumer preferences and trends
  • Distribution network effectiveness

Which of the following factors considers the consumer's purchasing power?

<p>Market factors (C)</p> Signup and view all the answers

In international pricing, which of these is not considered a product factor?

<p>National tariffs and import taxes (C)</p> Signup and view all the answers

In which Japanese videogame is Coca-Cola featured as 'Jet Cola'?

<p>Shenmue (D)</p> Signup and view all the answers

Which TV series prominently featured Coca-Cola in its scenes?

<p>Breaking Bad (B)</p> Signup and view all the answers

Until what year did Coca-Cola products feature in 'American Idol'?

<p>2014 (D)</p> Signup and view all the answers

What type of media includes Coca-Cola product placement as shown in the presentation?

<p>Videogames and TV series (C)</p> Signup and view all the answers

What was one of the contexts in which Coca-Cola was displayed in the presentation?

<p>A character drinking from a vending machine (A)</p> Signup and view all the answers

What can be a misunderstanding caused by language differences in advertising?

<p>Literal translations that yield negative meanings (A)</p> Signup and view all the answers

How do economic differences influence communication effectiveness in developing countries?

<p>Written communication becomes less effective due to lower literacy rates (B)</p> Signup and view all the answers

What is a sociocultural factor that may affect communication in different regions?

<p>Color symbolism varies by culture (B)</p> Signup and view all the answers

What sort of regulations might affect advertising content in various countries?

<p>Strict guidelines regarding language and cultural sensitivity (B)</p> Signup and view all the answers

Why should promotional strategies be adaptable in different environments?

<p>To account for local competitive differences (A)</p> Signup and view all the answers

What is product placement primarily aimed at achieving?

<p>Increasing consumer awareness and demand (D)</p> Signup and view all the answers

What percentage increase in brand awareness can result from product placement in TV shows?

<p>20% (D)</p> Signup and view all the answers

Which of the following is NOT a benefit of product placement for brand manufacturers?

<p>Capitalize on social media trends (C)</p> Signup and view all the answers

In which forms of media can product placement typically be found?

<p>Movies, TV shows, and video games (C)</p> Signup and view all the answers

What is a characteristic of product placement?

<p>It includes branded products without explicit references. (D)</p> Signup and view all the answers

What was the primary context of the event described?

<p>FIFA World Cup 2010 (D)</p> Signup and view all the answers

Which team's supporters are likely represented in the crowd?

<p>Dutch national team (C)</p> Signup and view all the answers

What can be inferred about the emotions of the crowd?

<p>They were experiencing joy and excitement. (B)</p> Signup and view all the answers

What notable characteristic is associated with the crowd's attire?

<p>Dressed in orange clothing (C)</p> Signup and view all the answers

Based on the description, what was the demographic of the crowd?

<p>Predominantly women (B)</p> Signup and view all the answers

What is a characteristic of intensive distribution?

<p>Products are available through numerous wholesalers and retailers (D)</p> Signup and view all the answers

Which distribution strategy is likely to create a sense of prestige for a product?

<p>Exclusive Distribution (A)</p> Signup and view all the answers

Selective distribution is characterized by:

<p>Targeting specific markets with fewer wholesalers (D)</p> Signup and view all the answers

Which of the following statements about exclusive distribution is true?

<p>It distributes products through a few wholesalers to a single retailer. (C)</p> Signup and view all the answers

Which distribution strategy provides the highest market coverage?

<p>Intensive Distribution (B)</p> Signup and view all the answers

What is one benefit of using celebrities in marketing communications?

<p>They enhance company image (D)</p> Signup and view all the answers

In what scenario are celebrities particularly effective as endorsers?

<p>Products with high social risk (A)</p> Signup and view all the answers

How do celebrities contribute to marketing beyond promotion?

<p>By symbolizing cultural meanings (B)</p> Signup and view all the answers

What characteristic makes celebrities effective in marketing?

<p>They are viewed as trustworthy and likable (A)</p> Signup and view all the answers

Which type of products would benefit from expert endorsements?

<p>High performance risk products (B)</p> Signup and view all the answers

Who is the first Indian Global Ambassador for MAC?

<p>Bhumi Pednekar (C)</p> Signup and view all the answers

Which MAC Global Ambassador is a Spanish singer?

<p>Rosalía (C)</p> Signup and view all the answers

In what year did Lay Zhang become the ambassador for the greater China region?

<p>2018 (A)</p> Signup and view all the answers

Which promotional product is mentioned in the image?

<p>Studio Fix foundation (B)</p> Signup and view all the answers

What common role do all MAC Global Ambassadors share?

<p>They represent different regions for MAC. (A)</p> Signup and view all the answers

What pricing strategy is associated with a higher price for a new product?

<p>Skimming (A)</p> Signup and view all the answers

Which pricing strategy is positioned at the bottom of the price gradient?

<p>Penetration pricing (A)</p> Signup and view all the answers

Where is market pricing positioned in relation to the other pricing strategies?

<p>Above penetration pricing (D)</p> Signup and view all the answers

Which term is associated with a low price strategy for a new product?

<p>Low price (C)</p> Signup and view all the answers

Which pricing strategy suggests a gradual increase in price from bottom to top?

<p>Skimming (A)</p> Signup and view all the answers

What is the primary difference between conventional marketing channels and vertical marketing systems?

<p>Vertical systems involve greater cooperation among channel members. (A)</p> Signup and view all the answers

What does forward integration refer to in the context of vertical integration?

<p>A company taking over functions of businesses downstream. (C)</p> Signup and view all the answers

Which component is NOT part of both conventional marketing channels and vertical marketing systems?

<p>Distributor (B)</p> Signup and view all the answers

How does backward integration differ from forward integration?

<p>Backward integration involves moving upstream in the supply chain. (B)</p> Signup and view all the answers

Which statement accurately describes the role of a wholesaler in a conventional marketing channel?

<p>They buy in bulk from manufacturers and sell to retailers. (B)</p> Signup and view all the answers

Flashcards

Skimming

Pricing strategy using a high price for a new product to generate an initial profit and appeal to early adopters.

Market pricing

Pricing strategy based on observing and reacting to market prices of competitors.

Penetration pricing

Pricing strategy using a low price for a new product to gain market share and build customer base quickly.

High price

A pricing strategy where the price is set at a high level.

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Low price

A pricing strategy where the price is set at a low level.

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Firm-level factors in international pricing

Policies and strategies put in place by the company regarding pricing, reflecting their past decisions and current approach.

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Product factors in international pricing

The unique features and innovations of a product, and the presence of competing alternatives.

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Price escalation in international pricing

The longer the distribution chain, the higher the final price due to markups and costs incurred along the way.

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Environmental factors in international pricing

Factors outside the company's control, such as government regulations on imports and exports.

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Market factors in international pricing

The financial capacity of consumers in the target market to afford the product.

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Language Differences

Different languages can lead to misunderstandings, like when "Vauxhall Nova" translates to "no go" in Spanish.

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Economic Differences

People in developing countries may not be able to read advertisements if they don't have televisions or have low literacy rates.

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Sociocultural Differences

Cultural differences can influence how advertisements are received. For example, white is associated with grief in some Asian countries.

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Legal and Regulatory Conditions

Governments often regulate advertising content, especially for products like tobacco and alcohol.

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Competitive Differences

Companies should consider the local competition when developing their marketing strategies.

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Vertical Marketing System

A marketing channel where different components work together more closely, often with one company controlling multiple stages. This can lead to greater efficiency and control.

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Backward Integration

A process where a company in the marketing chain takes over functions of businesses positioned earlier in the chain, like manufacturing. This can lead to increased control over supply and production.

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Conventional Marketing Channels

A traditional marketing channel structure with separate companies at each stage, like manufacturer, wholesaler, and retailer.

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Forward Integration

A process where a company in the marketing chain takes over functions of businesses positioned later in the chain, like retail. This can lead to increased control over distribution and customer reach.

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Vertical Integration

A company owning and controlling multiple stages in the marketing process, from manufacturing to retail. This allows them to manage the entire process more efficiently and control the brand experience.

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Intensive Distribution

A distribution strategy where a manufacturer utilizes many wholesalers to distribute products to numerous retailers, maximizing product availability and consumer reach.

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Selective Distribution

A distribution strategy where a manufacturer chooses a smaller set of wholesalers to reach a specific target market, allowing for better control over product placement.

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Exclusive Distribution

A distribution strategy where a manufacturer distributes its products to a limited number of wholesalers, each supplying only one retailer in a specific region. This strategy focuses on creating exclusivity and prestige for the product, often employed for high-end items.

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Market Coverage

The measure of a distribution strategy's reach and coverage across a geographic area.

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Tree Diagram

A visual representation of a hierarchical structure, often used to illustrate distribution channels where each level represents a different intermediary.

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Product placement

Placing branded products in entertainment media, such as video games, TV series, or TV shows, to enhance brand visibility and create a connection with the audience.

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Jet Cola

A fictionalized version of Coca-Cola featured in the Japanese videogame Shenmue, serving as an example of product placement.

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Breaking Bad

A popular American television series known for featuring Coca-Cola products, showcasing the effectiveness of product placement in TV shows.

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American Idol

A popular American television show that featured Coca-Cola products until 2014, demonstrating the evolving nature of and potential for product placement in television programming.

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Product placement in video games

The practice of incorporating branded products into video games as a form of advertising and brand exposure.

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Global Ambassador

A person who represents a company or brand globally, promoting their products and values.

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Rosalía

A Spanish singer who is a spokesperson for MAC's Viva Glam line of products.

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Lay Zhang

A Chinese musician who serves as MAC's ambassador for the greater China region since 2018.

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Bhumi Pednekar

An Indian actress who holds the title of MAC's first Indian Global Ambassador.

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Studio Fix

A popular foundation product from MAC, known for its long-lasting coverage and range of shades.

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Celebrity Endorsement

A marketing approach that uses famous individuals to promote a product or service.

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Why are celebrities good endorsers?

Consumers perceive celebrities as trustworthy, believable, persuasive, and likeable, making them effective in raising awareness and enhancing both company image and brand attitudes.

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Experts for Products with High Performance Risk

Expertise is crucial for endorsing products with high performance risk, as consumers seek assurance from knowledgeable sources.

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Celebrities for Products with High Social Risk

Celebrities are effective at reducing social risk because they symbolize desired social status and acceptance.

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Celebrities and Cultural Meanings

Celebrities embody various cultural meanings, acting as symbols representing status, social class, gender, age, and personality types.

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What is Product Placement?

Incorporating a branded product into media (movies, TV shows, video games) without explicitly mentioning the brand.

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What is the main goal of product placement?

Product placement aims to increase consumer awareness and demand for a brand or product. It works by subtly exposing viewers to the product, making it desirable.

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What makes product placement an effective tool for global marketing?

Product placement can reach a global audience through movies and TV shows distributed internationally, increasing brand recognition across different cultures.

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How can Product Placement influence purchase intention?

Studies show that viewers who see a product in a film are more likely to consider purchasing it later.

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How can product placement enhance brand awareness?

Research indicates that brand awareness can increase by up to 20% when a product is featured in a popular TV show.

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Ambush Marketing

A marketing strategy where a brand uses a major sporting event for promotion without officially sponsoring it. This often involves using similar branding and messaging to mislead consumers.

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Bavaria's Ambush Marketing Strategy

Dutch brewer Bavaria, known for its non-alcoholic beer, used a clever tactic during the 2010 FIFA World Cup. They designed orange-colored clothing similar to official Dutch team kits, encouraging fans to wear it. This association with the team, despite not being a sponsor, gained significant visibility and challenged the official sponsor, Anheuser-Busch's Budweiser.

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Budweiser's Challenge

Anheuser-Busch, the official sponsor of the 2010 FIFA World Cup (with its Budweiser brand), unexpectedly faced a marketing challenge. Bavaria's clever ambush campaign overshadowed their efforts to a certain extent, highlighting the power of creative and unexpected approaches in marketing.

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Ambush Marketing's Effectiveness

Ambush marketing can be a powerful strategy for smaller or less established brands. By cleverly capitalizing on events and leveraging associations, they can gain significant exposure and challenge larger competitors.

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Risks of Ambush Marketing

Ambush marketing strategies can be risky. They may violate sponsorship agreements and lead to legal issues. Brands must carefully consider the potential risks and benefits before implementing such tactics.

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Study Notes

Factors influencing international pricing

  • Firm-level factors: past and current organisational policies.
  • Product factors: the unique and innovative features of the product and availability of substitutes. Also Costs are important element for IP – Price Escalation (the longer the distribution channel, the higher final price).
  • Environmental factors: external factors and uncontrollable, e.g. national government of exports and imports.
  • Market factors: the consumer's ability to pay.

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Description

Test your knowledge on the various factors influencing international pricing strategies. This quiz covers organizational policies, environmental influences, product factors, and specific case studies such as Coca-Cola's marketing tactics. Perfect for students of international business and marketing!

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