CE Market Research & Global Sales Strategies 2 — Questions and Answers
Question 1: Which research method is most effective for understanding cultural nuances that affect purchasing behavior in a new export market?
- Secondary desk research using trade statistics
- Ethnographic field research and in-depth interviews (Correct answer)
- Online surveys distributed via email
- Analysis of competitor product catalogs
Correct answer: Ethnographic field research and in-depth interviews
Ethnographic field research and in-depth interviews uncover cultural drivers of behavior that quantitative or secondary data sources typically miss.
Question 2: A U.S. exporter discovers that its top-performing domestic product has a name that translates to an offensive phrase in the target country. The best immediate action is to:
- Launch the product anyway to test market reaction
- Rebrand the product specifically for that market (Correct answer)
- Withdraw from that market entirely
- Use the English name with a phonetic spelling
Correct answer: Rebrand the product specifically for that market
Rebranding for the specific market protects brand reputation while preserving the export opportunity.
Question 3: The 'waterfall' market entry strategy involves:
- Entering all target markets simultaneously
- Sequentially entering markets one at a time, applying lessons from each (Correct answer)
- Flooding a market with discounted products at launch
- Using a cascade of distribution tiers to reach end consumers
Correct answer: Sequentially entering markets one at a time, applying lessons from each
The waterfall strategy reduces risk by applying learning from each successive market before entering the next.
Question 4: When calculating Total Addressable Market (TAM) for an export opportunity, an exporter should:
- Use only the domestic market size as a proxy
- Estimate maximum revenue if 100% market share were achieved in the target country (Correct answer)
- Focus solely on the segment currently served by local competitors
- Rely exclusively on U.S. Census Bureau trade data
Correct answer: Estimate maximum revenue if 100% market share were achieved in the target country
TAM represents the total revenue opportunity available if a company achieved 100% market share, providing the ceiling for market sizing.
Question 5: A 'born global' firm is characterized by:
- Being a multinational corporation with decades of international experience
- Pursuing international markets from or near inception rather than expanding domestically first (Correct answer)
- Having operations in every major global region simultaneously
- Focusing exclusively on developing markets for cost arbitrage
Correct answer: Pursuing international markets from or near inception rather than expanding domestically first
Born global firms internationalize rapidly from inception, leveraging technology and niche expertise rather than first building a domestic base.
Question 6: Which pricing approach sets export prices based on what customers in the target market are willing to pay, rather than on cost-plus formulas?
- Skimming pricing
- Penetration pricing
- Value-based pricing (Correct answer)
- Transfer pricing
Correct answer: Value-based pricing
Value-based pricing anchors the price to perceived customer value in the market rather than internal cost structures.
Question 7: An exporter using a 'sprinkler' internationalization strategy would:
- Slowly irrigate one market at a time with incremental investment
- Enter multiple markets simultaneously to maximize speed of global coverage (Correct answer)
- Focus resources on the single highest-potential market
- License technology to local partners instead of exporting directly
Correct answer: Enter multiple markets simultaneously to maximize speed of global coverage
The sprinkler strategy sacrifices depth for breadth by launching in many markets at once, ideal when speed-to-market is critical.
CE Market Research & Global Sales Strategies 2
Which research method is most effective for understanding cultural nuances that affect purchasing behavior in a new export market?