When Is It Best to Use a Standardization Strategy

question 54

Multiple Choice

When is it best to use a standardization strategy?

• A)The company wants to decrease the chance of cultural blunders.
• B)The company wants to avoid overlooking local variations that affect buyer behavior.
• C)The company wants to avoid costs that come with mistargeted ads.
• D)The company wants to get local managers and employees more involved and motivated.
• E)There is little or no competition in many foreign markets.

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Definitions:

MPS

Marginal Propensity to Save, which measures the fraction of additional income that is saved rather than spent on consumption.

Saving

The act of setting aside a portion of current income for future use, either by holding it as cash or putting it into investment accounts.

Disposable Income

Financial allotment for households' saving and spending requirements after income tax subtractions.

MPC

Marginal Propensity to Consume refers to the fraction of any additional income that is used for consumption purposes.