Firms Must Decide If It Is Preferable to Use a Standardization

question 9

Multiple Choice

Firms must decide if it is preferable to use a Standardization versus Localization-Adaptation approach. Considerations supporting a Localization-Adaptation approach are:

• A) Customer segments in many countries still have differing preferences across marketing mix variables.
• B) Some products are expensive to develop, produce and have learning curve issues.
• C) Companies using a standardized approach can gain economies of scale in both production and marketing when customer segments have converging preferences.
• D) It is the optimal strategy to have only one standard product and standard marketing mix.
• E) Customers insist on value pricing for a basic product without costly "extras."

Recognize the outcomes of government intervention in the form of quotas and price controls and their impact on supply and demand.

Analyze the implications of quotas and price ceilings/floors on surplus, shortage, and market inefficiencies.

Illustrate the concept of deadweight loss and its relation to market interventions such as quotas and price controls.

Identify the role of minimum wages as a form of price floor and its impact on employment and market dynamics.