MKTG 485 – Flashcards
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The process of ______________ begins with the choice of one or more variables to use as a basis for grouping customers.
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global market segmentation
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Which of the following involves grouping people in terms of their attitudes, values, and lifestyles?
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Psychographic segmentation
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The attempt by global companies to pinpoint high-income consumers in each market emphasizes the importance of identifying the appropriate segmentation and targeting variables. Market segmentation represents _________.
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identifying and categorizing customers based on common characteristics
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Demographic segmentation is based on measurable characteristics of populations, which includes all the following examples except __________.
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consumers buying Porsches
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A study by DMBB identified four European lifestyle segments. Which of these is described as "status conscious up and comers"?
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Affluent Materialists
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Which of the following statements about the global teen market is correct?
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Global teens exhibit consumption behavior that is remarkably consistent across borders.
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After segmenting the? market, the groups are then evaluated on the basis of which? factors?
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Segment size and growth? potential, competition,? compatibility, and feasibility
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Which of the following is listed as a potential pitfall associated with market? segmentation?
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Overstating the size and? short-term attractiveness of a market
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In? India, refrigeration is not widely available in shops and market food stalls. This structural market characteristic is called? a(n) _______.
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enabling condition
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What is the final consideration as to whether a company can and should target a specific market segment in a foreign? country?
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feasibility and compatibility
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Which of the following would negatively impact the feasibility of targeting a particular? segment?
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regulatory hurdles
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What is the first step marketers should take in screening a market segment according to? Arnold's model?
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Identify the key drivers of the marketing model
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Which of the following is used by marketers to assess the suitability of current or potential products for a specific market? segment?
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The? product-market grid
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Each cell of a? product-market grid represents the possible? ________.
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intersection of a product and a market segment
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Assessing market sectors can be performed by creating a? product-market grid that maps? _________ as horizontal rows on a spreadsheet and? ____________ as vertical columns.
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markets; products
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What is the purpose of the? product-market grid?
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The purpose of the? product-market grid is to provide a company review of current and potential product offerings in terms of their suitability for the country market or segment.
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What is on the vertical axis of the? product-market grid?
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the country and segment
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What does each cell in the? product-market grid? represent?
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the possible intersection of a product and a market segment
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Standardized global marketing is also known as? ________.
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undifferentiated global target marketing
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Which of the following target marketing strategy is most similar to mass? marketing?
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Standardized marketing
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In? cosmetics, Estée? Lauder, Chanel, and other cosmetics marketers have successfully targeted the? upscale, prestige segment of the market. Which target market strategy does this? illustrate?
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Concentrated global marketing
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Danone? SA, the French food products? company, targets consumers in developed countries with premium brands such as Evian and Badoit mineral water and the Dannon and Activia yogurt brands. Which target market strategy does this? illustrate?
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Differentiated global marketing
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Mass marketing in a single country is also called? ______.
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standardized global marketing
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Concentrated global marketing targets? ______ whereas differentiated global marketing targets? ______.
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a single? segment; multiple segments
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Which of the following terms refers to the act of differentiating a brand in a? consumer's mind in relation to the? brand's competitors?
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Positioning
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Purposely communicating that a brand is imported is an approach known as? ________.
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foreign consumer culture positioning
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For? years, ads for the Visa credit card has stressed features and protection no matter what part of the world you travel in. Visa is developing a reputation based on which positioning? strategy?
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Attribute/benefit
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?Dove's ?"Campaign for Real Beauty?" broke new ground by positioning the brand around a new definition of beauty. What is the positioning strategy being adopted by? Dove?
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Competition
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A legendary print ad campaign for? Belgium's Stella Artois beer included various executions that positioned the brand at the premium end of the market. Which positioning strategy does this? represent?
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Quality/price
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Pulsar watch associates the brand with a handsome man who is? "addicted to reality? TV" and enjoys reading Dostoevsky. Which positioning strategy does this? represent?
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Use/user
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The only component of the marketing mix that changes with export selling is? ________.
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the market
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Which of the following distinguishes export marketing from export? selling?
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Export marketing targets the customer in the context of the total market environment.
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The only marketing mix element that differs in export selling as opposed to domestic selling is? _______.
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place
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Which of the following statements about a personal visit to size up the market firsthand and begin the development of an actual? export-marketing program is? correct?
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confirm assumptions regarding market potential.
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Export marketing requires all the following except? __________.
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testing the product with retail customers.
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As the vice president of sales and marketing of one manufacturer noted in? export-marketing programs,? "We have to approach the international market with? _________ literature as opposed to? _______ literature.
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marketing, sales
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Which of the following is the most important aspect of a? company's international? orientation?
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Commitment
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A company that reaches stage 7 is a? mature, geocentric enterprise that is relating global resources to global opportunity. To reach this stage requires? ______________________.
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management with vision and commitment
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Research has shown that exporting is essentially a developmental process that proceeds in different stages. Before a firm reaches stage? 4, a company normally passes through all the following activities except? __________.
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becomes an experienced exporter to one or more markets.
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The most important aspect of a? company's international orientation is? _______.
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commitment
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One study reported an interesting finding that even the most experienced exporters express lack of confidence in their knowledge about? ______________.
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shipping? arrangements, payment? procedures, and regulations
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The following is a potential logistical export? problem?
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packaging
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Which of the following is a government program that supports? exports?
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Government subsidies
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Which of the following is a government policy that discourages? imports?
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Customs duties
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For? centuries, nations have combined two opposing policy attitudes toward the movement of goods across national boundaries. On the one? hand, nations? _______ exports; on the other? hand, the flow of imports can be? _______.
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?encourage, restricted
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Which of the following do governments use to discourage? imports?
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quotas
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Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all the following except? __________.
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debt forgiveness
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?__________ are government? rules, laws, or administrative regulations requiring that goods or services be purchased from domestic companies.
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Discriminatory procurement policies
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Which of the following requires a classification system for all products and services that will cross national? borders?
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Harmonized Tariff System? (HTS)
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Which of the following can be considered the? "three Rs" of global? business?
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Tariffs
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What is the purpose if the Harmonized Tariff System? (HTS)?
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The HTS requires importers and exporters to determine the correct classification number for a given product or service that will cross borders.
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What does the Harmonized Tariff? System's (HTS) Schedule B? stipulate?
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That the export classification number for any exported item is the same as the import classification number.
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Which of the following establishes classification numbers that must be used by importers and? exporters?
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The Harmonized tariff system? (HTS)
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Under the Harmonized Tariff System? (HTS), products with a value of less than? $_______ are not counted as a U.S. export.? However, all? imports, regardless of? value, are counted.
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$2,500
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Which of the following is an independent marketing intermediary that acts as the export department for two or more? non-competing manufacturers?
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Export management company? (EMC)
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Mother? hen, piggyback? exporter, and export vendor are other names for which of the? following?
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Cooperative exporter
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Which of the following is sometimes referred to as a buyer for export or an export commission house and operates on behalf of a buyer from a foreign? country?
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Foreign purchasing agent
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?________ are licensed specialists in traffic? operations, customs? clearance, and shipping tariffs and schedules. They can be considered as the travel agents for handling export goods.
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Freight forwarders
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?________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other.
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An export management company
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The? _____________________ sometimes called a mother hen?, a piggyback exporter?, or an export vendor?, is an export organization of a manufacturing company retained by other independent manufacturers to sell their products in foreign markets.
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cooperative exporter
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A company that assigns high priority to its export business will probably use which of the following arrangements for handling export? responsibilities?
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An? in-house organization
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Which of the following is an advantage of making export responsibility a part of a domestic? employee's job? description?
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Is a? low-cost arrangement requiring no additional personnel
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When organizing for exporting in the? manufacturer's home? country, how do most companies handle export? operations?
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within their own? in-house export organization
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A manufacturing company that assigns a sufficiently high priority to its export business will establish an? in-house organization for exporting. The effectiveness of this organization depends on which two? factors?
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The? company's appraisal of the opportunities in export marketing and its strategy for allocating resources to markets on a global basis.
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For a company to make export responsibility part of a domestic? employee's job? description, which of the following conditions should be? present?
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The domestic employee assigned to the task must be thoroughly competent in terms of product and customer knowledge.
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Possible arrangements for handling exports from the? manufacturer's home country include all of the following? except:
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direct representation
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Which of the following are the two major advantages to direct representation in a? market?
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Control and communication
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Possibilities for feedback from the market to the corporation are much greater with which type of? organization?
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Direct representation
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A company must also make arrangements to distribute the product in the target market country. The two major advantages to using direct representation for this task in a market are? _______.
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control and communications
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In which type of market is it usually not feasible to establish direct? representation?
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smaller markets
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Which of the following is not an advantage of direct? representation?
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helping to sell products directly to the consumer in the market country
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When considering organizing in the market? country, which of the following enables decisions concerning program? development, resource? allocation, or price changes to be implemented? unilaterally?
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Direct representation
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In a discussion of trade? financing, what document specifies how much and by what means the? exporter-seller wants to be? paid?
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A pro forma invoice
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Which of the following methods of payments offers the exporter the best assurance of being? paid?
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Cash in advance
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Which of the following financing methods would be used by an exporter that enjoys good trustworthy relations with a buyer in a? well-established market?
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Sales on open account
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Which of the following correctly states the role of banks in? import/export transactions involving a letter of credit? (L/C)?
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The? exporter's bank is the advising? and/or confirming? bank; the? importer's bank is the issuing bank.
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A documentary collection uses which payment? method?
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a bill of exchange
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For which payment method is the? importer-buyer required in principle to make payment when presented with both the draft and the shipping documents even though the buyer may not have taken possession of the goods? yet?
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a sight draft
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Whether a company makes or buys its products as well as where it makes or buys its products is a? ________.
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sourcing decision
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Which of the following terms refers to the shift of production jobs or work assignments to another country in order to cut? costs?
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Outsourcing
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The organizational decision to purchase production? inputs, components, or finished goods from domestic or foreign producers is known as the? _______ decision.
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sourcing
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Factor costs include which of the? following?
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?land, labor, and capital
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If a company operates in several different? countries, and if the currency in one of those counties becomes seriously? overvalued, what could the company do to achieve competitive? advantage?
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shift production among the different countries
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What has been the overall impact of the application of advanced computer controls and other new manufacturing technologies on labor? costs?
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China's low labor rates translate into reasonable prices for consumers
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?________ is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation.
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Licensing
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Which of the following is key to licensing strategy? success?
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Ensuring ongoing competitive advantage
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One of the advantages of licensing is? ________.
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that licensees have considerable autonomy
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?_______ represent(s) a global market entry strategy whereby one company permits a foreign company to make use of its? patents, know-how,? technology, company? name, or other intangible assets in return for a royalty payment.
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Licensing
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Which of the following statements regarding licensing as an entry mode to a foreign market is? correct?
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?Licensing, by its very? nature, enables a company to ?"borrow"long dash—that ?is, leverage and exploitlong dash—another ?company's resources.
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Which of the following statements about franchising is? correct?
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Franchising is a? market-entry strategy that is typically executed with less localization than is licensing.
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Which of the following is a general term that refers to capital that flows out of the home country as companies invest in? plants, equipment, and other? assets?
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Foreign direct investment? (FDI)
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Which of the following terms refers to the startup of new? operations?
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Greenfield investment
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What is the most extensive form of participation in global? markets?
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Investment that results in either an equity stake or full ownership.
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The agreements that enable? McDonald's outlets around the globe to use? McDonald's trademarked name and menu items represent which form of market? entry?
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Franchising
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Honda invested? $550 million in building a vehicle assembly plant in? Greensburg, Indiana; IKEA spent nearly? $2 billion to open stores in? Russia; and South? Korea's LG Electronics purchased a? 58% stake in Zenith Electronics. All these are examples of? _______.
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a Foreign Direct Investment
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?_____________ is an entry strategy for a single target country in which the partners share ownership of a newly created business entity.
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A joint venture
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When forming a global strategic partnership? (GSP), which of the following factors is considered critically? important?
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Learning from partners
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Of the key attributes of a global strategic? partnership, which of the following reflects the potentially divisive issues created by different management? styles?
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Management
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What are the three characteristics that all forms of strategic alliances have in? common?
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shared? benefits, independence of participants and ongoing contributions
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Which of the following is NOT a characteristic of global strategic? alliances?
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Participants agree not to compete in areas unrelated to the alliance.
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Oneworld is a global network that brings together American Airlines and other carriers in a number of different countries. Passengers booking a ticket on any network member can easily connect with other carriers for smooth travel around the globe. A further benefit for travelers is that AAdvantage? frequent-flyer miles earned can be redeemed with any member of the network. This is an example of a? ______________.
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strategic alliance
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Which of the following is a disadvantage of GSPs? (Global Strategic? Partnerships)?
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focus on a single national market or a specific problem
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Which of the following is a major problem in connection with joint ventures in developing countries such as? Russia?
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Outdated regulatory and legal systems
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For the home? company, which of the following is one of the goals of a global strategic partnership? (GSP)?
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Market entry
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The text identifies? Asia, India, and Mexico as offering exciting opportunities for firms that seek to enter gigantic and largely untapped markets. Which entry strategy does the text recommend for these? markets?
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strategic alliance
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Which of the following does the text cite as a potential problem with strategic alliances in? Russia?
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supply shortages
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Assuming that risks can be minimized and problems? overcome, which markets does the text identify as markets in which joint ventures could proceed at a faster pace than previous joint ventures in Asian? markets?
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Central and Eastern Europe
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Which Central European market with interesting potential does the text identify because it already has the most liberal financial and commercial systems in the? region?
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Hungary
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?________ represents a special category of cooperative strategy that has been described as? "a fighting clan in which business families join together to vie for market? share."
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Keiretsu
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In South? Korea, a group of companies centered on a central holding company and dominated by a founding family is a? ________.
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chaebol
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An interbusiness alliance or enterprise group in? Japan, that, in the words of one? observer, "resembles a fighting clan in which business families join together to vie for market? share." is called? a(n) ______.
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keiretsu
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Which of the following statements is true regarding Japanese? keiretsu?
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Keiretsu relationships are cemented by bank ownership.
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Several other keiretsu have? formed, bringing new configurations to the basic forms. Vertical keiretsu are hierarchical alliances between? _______ and? __________.
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?manufacturers; retailers
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Which of the following statements is correct regarding chaebol? (South Korea's strategic alliance? groups)?
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The Chaebol are composed of dozens of companies that are centered on a central bank or holding company.
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?A(n) ________ is a grouping of firms in different industries and countries held together by common goals that encourage them to act as a single firm.
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relationship enterprise
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Which of the following companies was formed as a direct result of a government industrial policy in the United? States?
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Sematech
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Which future cooperative strategy? could, on a global? level, combine the twin competencies of? cost-effectiveness and? responsiveness?
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virtual corporations
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The relationship enterprise is another possible stage of evolution of the strategic alliance. In a relationship? enterprise, groupings of firms in different industries and countries are held together by? ______________ that encourage them to act as a single firm.
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common goals
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According to the? text, which of the following will drive the relationship? enterprise?
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political necessity
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According to the? text, relationship enterprises will be more than the simple strategic alliances we know? today; they will be? super-alliances among? _____________.
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companies that are global giants
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Which of the following market expansion strategies best serves the? global, multi-business? company?
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Country and market diversification
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Which of the following market expansion strategies is the strategy of the? well-managed business that serves a distinct need and customer? category?
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Country diversification and market concentration
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Four market expansion strategies are available for companies to adopt in expanding abroad. The four are listed here except? ________.
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country expansion and market expansion
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Which global market expansion strategy is the typical starting point for most? companies?
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country and market concentration
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In which global market expansion strategy does a company seek out the world market for a? product?
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country diversification and market concentration
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Procter? & Gamble? Co., also known as? P&G, is an American multinational consumer goods company that serves global markets with a variety of products including personal? care, household? cleaning, laundry? detergents, prescription? drugs, and disposable diapers.? P& G would appear to be using which strategy to continue their global? growth?
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Country and market diversification
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Which of the following is considered an intangible attribute of a? product?
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Status associated with ownership
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?________ is a composite measure of the amount of effort a customer? expends, the level of risk associated with the? purchase, and buyer involvement in the purchase.
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Buyer orientation
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The status associated with product? ownership, a? manufacturer's service? commitment, and a? brand's overall reputation all represent? ______.
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intangible product attributes
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Global marketers must understand the importance of? ______, which are embodied in the color or shape of a? product, label, or package.
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visual aesthetics
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An express warranty is a written guarantee that assures buyers? _________.
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that they are getting what they have paid for.
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Eco-packaging is a key issue? today, and package designers must address all of the following environmental issues except? _______.
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profitability
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?________ is defined as perceptions about a brand as reflected by brand associations that consumers hold in their memories.
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Brand image
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Which of the following best describes a global? brand?
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A brand that has the same name? and, in some? instances, a similar image and positioning.
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Diageo PLC successfully markets? Gordon's Edge, a? gin-based ready-to-drink? beverage, in the United Kingdom only. This is an example of? a(n) _________.
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local brand
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The Opel Corsa was a new model originally introduced in Europe. GM then decided to build different versions of the Corsa for Mexico and Brazil. This is an example of? a(n) _______.
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international product
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The makers of? Chanel, Givenchy,? Clarins, Guerlain, and other leading cosmetics brands create different formulations for different regions of the world. Which strategy in the? product/brand matrix for global marketing does this? represent?
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local? product/global brand
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?Worldwide, consumers, corporate? buyers, governments,? activists, and other groups associate global brands with three characteristics. What are these three? characteristics?
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quality? signal, global myth and social responsibility
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The internal motivation driving demand for? status-oriented products is based on which of the following levels of? Maslow's needs? hierarchy?
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Self-esteem
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McDonald's and? Coca-Cola have focused on which of the following needs to create global brand? franchises?
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Physiological and social
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?Coca-Cola and? McDonald's have learned from experience that some food and drink preferences remain deeply embedded in culture. The basic need for food and drink relate to which need in? Maslow's hierarchy?
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physiological
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Many consumers worldwide engage in conspicuous consumption. According to the? text, which of? Maslow's needs does conspicuous consumption? fulfill?
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Esteem
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?Maslow's hierarchy is applicable to global marketing because it can help explain how? _________.
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basic human needs can drive the development of global products
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Hellmut? Schütte has proposed a modified hierarchy to? Maslow's in attempting to explain the needs and wants of Asian consumers. Which of the following is NOT listed in? Schütte's model?
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self-actualization
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In some product? categories, marketers can charge premium prices for imported items because? ________.
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of consumer perception of foreign superiority
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Why do Chinese consumers prefer products from? Germany, Italy, and France to? "Made in? China" products?
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Products made in Europe still carry a great appeal as symbols of success.
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Which of the following statements is true regarding the? country-of-origin effect?
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Perceptions based on the? country-of-origin effect become part of a? brand's image and contribute to brand equity.
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In some product? categories, foreign products have a substantial advantage over their domestic counterparts simply because of their? "foreign-ness." According to the? text, global marketers have an opportunity to capitalize on this situation by? __________________.
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charging premium prices
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The? country-of-origin effect is largely based on? _______.
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perceptions
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As one marketing expert pointed out in the? mid-1990s, Italian is synonymous with? style, and French is synonymous with chic. What is Germany synonymous? with?
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Quality engineering
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_______ is a strategic alternative that uses almost no product or brand adaptation for global distribution.
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?Product-communication extension? (dual extension)
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Which of the following is the strategic alternative where both the product and at least one of the promotional elements are adapted for a particular country? market?
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?Product-communication adaptation? (dual adaptation)
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When Companies sell the same product with virtually no? adaptation, using the same advertising and promotional appeals used? domestically, in two or more country markets or? segments, which global product planning strategy are they? using?
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product-communication extension
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Generally? speaking, which of the following product categories represents the best potential for extension into international markets without any? adaptation?
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Industrial products
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To promote its Centrino wireless? chip, Intel launched a global ad campaign that features different celebrities in different countries. The wireless chip itself is standardized. Which global product planning approach is? this?
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product? extension-communications adaptation
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What is the major appeal of the product extensiondash-communication adaptation? strategy?
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The low cost of implementation
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Which of the following is a type of innovation that could be described as a? "game changer"?
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Discontinuous innovation
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In which of the following innovation categories do products share certain features with earlier products while incorporating? new, added-value? features?
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Dynamically continuous innovation
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?Apple's brilliant string of? new-product introductions in the 2000slong dash—the iPod? (2001), the iPhone? (2007), and the iPad? (2010) long dash—revolutionized the technology industry. What type of innovation did? Apple's products? represent?
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A discontinuous innovation
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After 4 years of product? development, Procter? & Gamble recently introduced a? new, improved disposable diaper. Pampers Rash Guard diapers are designed to prevent diaper rash and represent the first time a company has made a medical claim for its diapers. What kind of innovation do the new diapers? represent?
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Continuous innovation
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Elon? Musk, founder of Tesla and Space? X, is an entrepreneur. He has developed several innovative products and? services, created new? brands, and started companies to market his creations. By applying the basic tools and principles of modern? marketing, Musk has achieved remarkable success. What kind of innovation does Musk employ in these new? products?
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Discontinuous innovation
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The? Sensor, SensorExcel, and MACH3 shaving systems represent? Gillette's ongoing efforts to bring new technology to bear on wet? shaving, an activity that is performed today pretty much as it has been for centuries. These products represent which type of new product? innovation?
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Dynamically continuous innovation
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Which of the following has had the greatest impact on global price? transparency?
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The Internet
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In a typical? corporation, which of the following internal positions would be most interested in competitive pricing in the world? marketplace?
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The director of global marketing
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Because of differences in national? markets, the global marketer must develop pricing systems and pricing policies that take into account which of the following three? factors?
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price? floors, price? ceilings, and optimum prices
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As? _______ has made price information for many products available around the? globe, companies must carefully consider how customers in one country or region will react if they discover they are paying significantly higher prices for the same product than customers in other parts of the world.
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the Internet
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Generally? speaking, international trade results? in___________.
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lower prices for goods
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What is the? "law of one? price"?
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The law of one price states that in a truly global market all customers in the market could get the best product available for the best price.
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Which type of pricing strategy sets a high price in the introductory phase of the product life? cycle?
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Market skimming
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Which type of pricing strategy is typically used by HP for its laser? printers?
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Captive pricing
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A market? _______ pricing strategy calls for setting price levels that are low enough to quickly build market share.
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penetration
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The obvious advantage of rigid? _______ pricing is its? simplicity: Assuming that both internal and external cost figures are readily? available, it is relatively easy to arrive at a quote.
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cost-based
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The target costing process begins with market mapping and product definition and positioning. The marketing team must complete several steps. Which of the following is NOT a step of this? process?
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Purchase the inventory well in advance to make significant? cost-savings.
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Procter? & Gamble? (P&G) managers know that workers are often paid a daily wage and that its Mexican customers generally carry? 5- and? 10-peso coins. To keep prices of shampoo and detergent below 11 or 12 pesos and ensure satisfactory profit? margins, Procter? & Gamble is using which method of? pricing?
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Target costing
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The internationally accepted terms of trade are known as? ________.
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International Commercial Terms? (Incoterms)
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Which of the categories of Incoterms refers to a transaction where the buyer takes delivery at the? seller's location?
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Ex-works (EXW)
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All the following activities must be performed when goods cross international boundaries except? _______________.
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using? cost-based pricing method
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A manufacturer attempting to set prices for its products in export markets must realize that? CIF, VAT, and distributor markups all lead to? _______________.
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price escalation
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What does the word Incoterms stand for in relation to conducting international terms of? trade?
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International Commercial Terms
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?_____________ refers to a transaction in which the buyer takes delivery at the premises of the? seller; the buyer bears all risks and expenses from that point on.
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Ex-works (EXW)
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A market holding strategy is often used in response to unfavorable? ________.
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currency valuation swings
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One way for a country to curb runaway inflation is to? ________.
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impose price controls
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All of the following would be used by a company with a strong? home-country currency except? _______________.
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cut export prices to increase market share
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Price discrepancies across the euro zone have been disappearing because manufacturers can no longer cite currency fluctuations as a justification for the discrepancies.? ______________ means that buyers can comparison shop easily because goods will be priced in euros as opposed to? marks, francs, or lira.
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Price transparency
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Which of the following is an essential requirement for pricing in an inflationary? environment?
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maintain operating margins
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Marketers of domestically manufactured finished products may be forced to switch to? ______________ of certain components to keep costs and prices competitive.
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offshore sourcing
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Which of the global pricing alternatives allows management in each global market to establish its own? prices?
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Polycentric pricing
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Which of the pricing alternatives calls for a? per-unit price of a product to be the same no matter where in the world it is being? sold?
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Extension pricing
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Suppose a company selling in various country markets makes statements such as? "We know what customers? want, and they will have to pay for? it." This is an indication of? a(n) _______ approach to setting prices.
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ethnocentric
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If company managers decide to set the export price for a particular product at an amount equivalent to the? home-country price, they would be using which approach to? pricing?
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Ethnocentric
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When disparities in prices between different country markets exceed the transportation and duty costs separating the? markets, enterprising individuals can purchase goods in the? lower-price country market and then transport them for sale in markets where higher prices prevail. This is called? ______________.
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arbitrage
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According to a recent study of European industrial? exporters, companies that utilized independent distributors would be most likely to utilize? ______________.
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polycentric pricing
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Gray markets flourish when? ________.
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a product is in short supply
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Which of the following groups gains the most from a gray? market?
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Consumers
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The unauthorized distribution of trademarked goods sold by unauthorized persons or organizations in world markets is known as? ______________.
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gray marketing
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Which of the following conditions would discourage gray marketing? practices?
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a product is in abundant supply
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Which of the following statements is correct regarding the costs or consequences that gray markets impose on global? marketers?
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Gray markets can damage the? manufacturer's reputation.
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The marketing opportunity that presents? itself, however? inappropriate, requires gray market goods to be? ______________ than goods sold by authorized distributors or domestically produced goods.
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priced lower
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________ is defined as the sale of an imported product at a price lower than that normally charged in a domestic market or country of origin.
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Dumping
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Which of the following is an approach used by companies to avoid? anti-dumping laws?
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Make? non-price competitive adjustments
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If a company sells products in export markets at prices lower than that normally charged in a domestic market or country of origin they are engaging in? _______.
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dumping
question
In the Uruguay round of GATT? negotiations, many countries took issue with the U.S. legal? system, in part because historically the U.S. Commerce Department almost always ruled in favor of the U.S. company that filed the complaint. This was related to the laws pertaining to? _______.
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dumping
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For positive proof that dumping has occurred in the United? States, both? _______ and? _______ must be demonstrated.
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price? discrimination, injury
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In? 2000, the U.S. Congress passed the? ______________. This law calls for antidumping revenues to be paid to U.S. companies harmed by imported goods sold at? below-market prices.
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Byrd Amendment
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What is the underlying purpose of price? fixing?
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To ensure higher prices
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Which of the following refers to a manufacturer conspiring with retailers to ensure certain retail price levels are? maintained?
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Vertical price fixing
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In 2011 the European Commission determined that? P&G, Unilever, and Henkel conspired to set prices for laundry detergent. This is an example of? _______.
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horizontal price fixing
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?_______ occurs when a manufacturer conspires with wholesalers or retailers to ensure certain retail prices are maintained.
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Vertical price fixing
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Nintendo was fined nearly? $150 million after it was determined that the video game company had colluded with European distributors. The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices. This is a classic example of? _______.
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Vertical price fixing
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In? ___________, competitors within an industry that make and market the same product conspire to keep prices high.
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Horizontal price fixing
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Transfer pricing refers to? ________.
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?intra-corporate exchanges
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Why are individual governments concerned with transfer? pricing?
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It is believed to be used to avoid taxes.
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?Cost-based?, ?market-based?, and negotiated are three approaches to? ________.
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transfer pricing
question
Joseph? Quinlan, chief marketing strategist at Bank of? America, estimated that approximately? 25% of U.S. merchandise exports represent shipments by American companies to their own foreign affiliates and subsidiaries. This situation underscores the importance of? ______ in global marketing.
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transfer pricing
question
Transfer pricing is an important topic in global marketing because goods crossing national borders represent a? sale; therefore, their pricing is a matter of interest both to the? ______________, who want to collect a fair share of income? taxes, and to? the______________, which wants to collect an appropriate duty on the goods.
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tax? authorities; customs service
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Transfer pricing represents which type of exchange? transaction?
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Between buyers and sellers that have the same corporate parent.
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Which of the following terms refers to an alternative financing method where products are exchanged between nations rather than currency.
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Countertrade
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Which of the following is the oldest and least complex form of? countertrade?
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Barter
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A reciprocal arrangement whereby the government in the importing country seeks to recover large sums of hard currency spent on expensive purchases such as military aircraft or telecommunications? systems, is known as? a(n)________.
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offset
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PepsiCo used to trade soft drink syrup concentrate with the Soviet Union for Stolichnaya vodka. This represents which type of? countertrade?
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Barter
question
Rockwell International sold a printing press to Zimbabwe for? $8 million. The deal went? through, however, only after Rockwell agreed to purchase? $8 million in ferrochrome and nickel from? Zimbabwe, which it subsequently sold on the world market. This is an example of? ________.
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counterpurchase
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In which type of countertrade arrangement does a third party steps into a simple barter or other countertrade arrangement when one of the parties is not willing to accept all the goods received in a? transaction?
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Switch trading
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Which of the following best explains why direct sales is the most effective channel in a country like? Japan?
answer
direct sales is based on relationships.
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The sales? force, distributors or? agents, and wholesalers are three basic elements of? ________.
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marketing channel alternatives for industrial or business products companies
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Marketing channels exist to create utility for customers. The major categories of channel utility include all the following except? _______ utility.
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price
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Car manufacturers of expensive? models, such as Mercedes or? Audi, insist on wrap covering each individual vehicle with protective sheathing for the duration of the journey from the factory to the dealership. Such manufactures are creating which kind of channel? utility?
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Form utility
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?Peer-to-peer (p2p) marketing uses distribution channels through? _______.
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electronic commerce
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In? Japan, the biggest barrier facing U.S. auto manufacturers? isn't high? tariffs; rather,? it's that? one-half of the cars that are sold each year are through? ______________.
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door-to-door salespeople
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Typically, a(n)? ________ is required when companies enter emerging markets for the first time.
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local distributor
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An agent or middleman who chooses to distribute only a few select products from the? vendor's product line is said to be? ________.
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cherry picking
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When companies adopt an? "indirect involvement"? channel, they have all the following activities except? ________.
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establishing their own sales force
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Which of the following is an appropriate guideline for companies selecting independent distributors in international? markets?
answer
Select? distributors; don't let them select you.
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Which of the following statements is correct regarding establishing global marketing? channels?
answer
Companies should document the nature of the relationship with the foreign partner.
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Left to their own? devices, middlemen may seek to maximize their own profit rather than that of the manufacturer. These agents sometimes engage in? ___________, the practice of accepting orders only from manufacturers with established demand for certain products and brands.
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cherry picking
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Which of the following best explains why some Western retailers have struggled in developing global? markets?
answer
It is not always possible to export a retail business model.
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Which of the following is a term used to describe? modern, branded chain retail? stores?
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Organized retail
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By? definition, ______________ feature a narrow but deep merchandise mix and high levels of service.
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specialty retailers
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Which type of retailer offers a limited assortment of goodslong dash—typically ?1,000 to? 3,000 different itemslong dash—at ?rock-bottom prices.
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Hard discounters
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Which of the following categories best describes the approach of? Britain's Marks? & Spencer? (M&S) to global? retailing?
answer
Many product? categories, private-label focus
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Which of the following correctly characterizes the retailing strategy of? Benetton, IKEA, and? Gap?
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Few product? categories, own-label focus
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The most important distribution activities are? _____________.
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Order? processing, warehousing, inventory? management, and transportation
question
Which of the following major transportation modes has low? capability, low? cost, and high? reliability?
answer
The Internet
question
Which of the following statements is correct regarding international transportation? modes?
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Rail provides an extremely? cost-effective means for moving large quantities of merchandise long distances.
question
Which of the following transportation modes has the highest? cost?
answer
Air
question
Which of the following statements regarding containerization is? correct?
answer
Containerization offers flexibility in shipping modes.
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When a company uses intermodal? transportation, it is using? _________________.
answer
land and water shipping
