Spanish Customers View Toothpaste as a Cosmetic While Consumers in the Netherlands

question 84

Multiple Choice

Spanish customers view toothpaste as a cosmetic while consumers in the Netherlands view it as a necessary part of daily hygiene and use three times as much as their Spanish counterparts. This example illustrates the importance of which of the following when marketing this product?

• A) cultural differences
• B) nationalistic standards
• C) local content laws
• D) expropriation laws

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Definitions:

Split-off Point

The stage in a production process where joint products are identifiable or separable into individual products.

Avoidable Cost

An expense that can be eliminated if a particular decision is made, not incurred if a specific activity is discontinued.

Fixed Production Cost

The portion of total production costs that does not change with the level of output, including costs such as rent, salaries, and insurance.

Vertical Integration

The involvement by a company in more than one of the activities in the entire value chain from development through production, distribution, sales, and after-sales service.