Test Answers on LAST EXAM – Flashcard
Unlock all answers in this set
Unlock answersquestion
Which of the following is true regarding the impact of global competition on the business activities in the marketplace?
answer
It has put more power in the hands of the customer
question
which of the following is the most important criterion for consumers while purchasing products?
answer
Quality
question
What are two dimensions that help in defining the quality of a product of quality?
answer
Market-perceived quality and performance quality
question
____ is the term ted to describe the changes mandated by local product and service standards
answer
Product homologation
question
Vital Health products found out that they had to reduce the length of the tread in their treadmills sold in China owing to the shorter legs of the average Chinese person. By doing this vital has achieved product_____.
answer
homologation
question
A European chocolate manufacturer received several complaints from customers about the quality of its product when it began selling them in a tropical country. the firm had to repackage its chocolate bars in extra plastic wrapper to protect it from the head and dust. Which of the following factors in the local market dictated product adaptation in the current scenario?
answer
Climatic requirements
question
Booster bar is a popular brand of energy bars in Canada. The company sold these bars singly or in packs of two in the South Asian markets, instead of their regular multiple-item packaging containing 10 or 20 bars to make it more affordable for the consumers. Which of the following requirements of the local market is influencing product adaptation in the above scenario?
answer
Economical requirements
question
A wine company had to market its products with a different name in a foreign market as it was mandatory to translate the name in the local language. The factor that is influencing product adaptation in the above scenario is____.
answer
legal requirements
question
Adore cosmetics had to increase the SPF value of their sunscreen lotions marketed in the Middle East to provide more protection against UV radiation. Which of the following factors is dictating product adaptation in the above?
answer
Climatic requirements
question
Nuan a television manufacturer in Korea, had to modify its televisions before introducing it to the Zimbabwean markets, as the country did not have the skills to repair the product in case of malfunction. The local salesforce too, did not have the sufficient knowledge regarding the installation of the product. The factor that is influencing product adaptation in the above scenario is_____.
answer
Technological requirements
question
A clothing company in Singapore which specialized in women's clothing, had to modify its clothes before introducing them to Iranian markets, to suit the needs of women in that country. Women in Iran expected to cover themselves completely. The company mostly used opaque material and provided accessories like scarves. Which of the following factors is dictating product adaptation in the above scenario?
answer
Cultural requirements
question
_____ is a term used to identify concern with the environmental consequences of a variety of marketing activities.
answer
Green marketing
question
HT motors is introducing a new technology in its cars to improve mileage to improve its production facilities in order to reduce its carbon emissions. The company is also taking measures to improve its production facilities in order to reduce its carbon footprint. These measures employed by HT motors to meet guidelines issued by the government shows that the company is engaging in _____.
answer
green marketing
question
Which of the following has been at the forefront of the "green movement"?
answer
Europe
question
As part of the "green movement", the European Commission has passed legislation to control all kinds of packaging waste through the European Union. Two critical issues that affect product development are the control of packaging component of solid waste and ____.
answer
consumer demand for environmentally friendly produts
question
Which of the following is a physical attribute of a product that is essential for its primary function?
answer
Components
question
An important first step in adapting a product to a foreign market is to determine:
answer
The degree of newness as perceived by the intended market.
question
From a sociological viewpoint, any idea perceived as new by a group of people is considered as a(n)____.
answer
innovation
question
____ is the process by which innovation spreads.
answer
Diffusion
question
According to Everett Rogers, the goals of the diffusion researcher and the marketer are to shorten the time lag between:
answer
introduction of an idea or product and its widespread adoption
question
According to Everett Rogers, what is the element that differentiates diffusion from other types of communications research?
answer
Time
question
Which of the following is considered to be one of the extraneous variables that affects the rate of diffusion of an object?
answer
The method used to communicate the idea.
question
Martin is comparing the characteristics of his company's water filters with those that are already being marketed in the local market. He realizes that there is lot of scope for his filters as they are functionally more advanced, have longer life, and also can be marketed at a competitive price in these markets. The characteristic of his product that will help in wide acceptance of his product is its _____
answer
Relative advantage
question
A product is said to be compatible if:
answer
it complies with the accepted norms, values, and culture of the local market.
question
Carolyn is interested in marketing her company's diet product in Asia. She is studying the acceptable behavior, norms, and values in Asian markets. Carolyn is studying _____.
answer
Compatibility
question
A company focusing its efforts on making its new innovation more user-friendly is working on the _____ of the product.
answer
complexity
question
Mark Harmon has found that using his new digital camera is a snap. He did not even have to read the instruction manual to determine how to turn the camera on, snap a digital picture, and export the picture to his computer. The signs (symbols) on the camera body made it very clear what he was to do to achieve digital photography success. Which of the following characteristics of Mark's "new product" made it easy for him to begin his digital experience?
answer
complexity
question
Fiona asked her product manager for samples to give to potential consumers in Madrid, her new European market. Fiona is trying to reduce the degree of eco and/or social risk, or _____ associated with product use.
answer
triability
question
A product's _____ refers to the ease with which it benefits can be communicated to the customers.
answer
Observability
question
Ingrid is developing promotional materials and product demonstrations to easily communicate the benefits of her cleaning products. Ingrid is trying to enhance the _____ of her products.
answer
observability
question
In general, the rate of diffusion can be postulated as negatively related to _____.
answer
complexity
question
Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product?
answer
Market analyst's self-reference criterion
question
The success achieved by firms when they take their inventions to market is referred to as ____.
answer
conversion-ability
question
The product platform, design features, and functional features are all found in the ____ component of the product, according to the product component model.
answer
core
question
Simone Francis is a specialist in product design. She is responsible for a product's aesthetic as well as functional appearance. With respect to the product component model, in which of the following component categories would Simone's talents most likely be used?
answer
Functional component
question
If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms, to meet local differences in five different foreign markets, the _____ of the product component model would be in consideration.
answer
core component
question
Omega appliances, a Korean company that manufactures kitchen appliances had to alter the design of its chimneys to suit the needs of the consumers in its Japanese market. The Japanese preferred compact and efficient appliances to fit their small kitchens. The component of the product that had to be altered in the above scenario is the _____.
answer
core component
question
If a company is altering the price of its product to compete with the local companies in the international market, it is focusing on the ___ component of the product, according to the product component model.
answer
packaging
question
Apple Computer had difficulties when it first entered the Japanese market with its Macintosh computers. Some of the computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be no big deal in the U.S., it was certainly a cause for concern in quality-conscious Japan. To fix the problem, Apple needed to concentrate on which of the following components of the product component model?
answer
packaging component
question
Bagel's foods had to change the labeling on their products to meet specifications regarding vegetarian and non-vegetarian foods, set by the government in the Japanese market. They also had to mention the ingredients in Japanese to make it clear for the local customers. The component of the product that is in focus in the above scenario is the ____.
answer
packaging component
question
According to the product component model, installation, repair and maintenance, deliveries, and warranties are all part of the ______ component of the product.
answer
Support services
question
In some countries, maintenance of automobiles is not the norm. Cars are not repaired until they break down. Since the consumer is automatically angry with the manufacturer when something goes wrong with the car, repair and maintenance has become a concern of the various automobile manufacturers in this market. In which of the following components of the product component model would the management need to make improvements if problems such as the one above are to be solved?
answer
support services component
question
A Korean electronics company had to add detailed instructions regarding the repair and replacement of its product to make it easy for the local consumers to maintain it. Which of the following components of the product is being altered in the given scenario?
answer
support services component
question
The washing machines marketed by Taichi failed in Asian markets as those countries lacked the skills necessary to repair and maintain their products. Also the washing machines spares available in the local markets were not compatible with these machines. This product failure was a result of lack of attention by the company to the _____ component of the product.
answer
Support services
question
Insurance, dry cleaning, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which of the following characteristics of services best matches the above?
answer
Intangibility
question
Because a service is individually produced and is virtually unique, the service is said to have _____.
answer
heterogeneity
question
Dr. Mark Townes is a dentist practicing in Denver. During a four-day stretch in March, it snowed so heavily that not a single patient was able to visit him. Since all the appointments were missed, he did not make any money for those four days, even though his normal expenses remained. Which of the following characteristics of services is affecting Dr. Townes' business?
answer
Perishability
question
A characteristic of a service is that it is _____ , since it cannot be stored and must be consumed simultaneously with its creation.
answer
perishable
question
Adam, a hairstylist at a salon in Seattle, styles his customers in various ways. His work looks different on different people even though he has styled all of them. This unique character of a service that is unique for every customer as it is individually produced is referred to as_____.
answer
heterogeneity
question
Which is the largest services export of the US, ranking behind only capital goods and industrial supplies when all exports are counted?
answer
International tourism
question
How do the vast majority of services enter a foreign market?
answer
Licensing, franchising, or direct investment
question
Marketers of consumer services face four kinds of barriers in the global marketplace. Which of the following of these barriers is in force when a foreign market requires that services (such as banking or insurance) originate within the country itself and not from outside sources?
answer
Protectionism
question
The Red Lobster seafood restaurant is considering opening branch operations in China. However, the restaurant chain's labor union has already pointed out a potential problem with this expansion. In China, it is considered to be in bad taste to allow employees to collect tips for service. Since a great portion of a typical wait-staff person's compensation comes in the form of tips, the union would like to know how employees would be compensated for this loss. The above example illustrates which of the following barriers a consumer services marketer faces in a foreign market?
answer
cultural requirements for adaptation
question
Maxcare, an insurance firm based in California had difficulties expanding their operations to Asian markets, as most of their target countries had strict regulations on transferring the details of the customers among the different branches of the firm. The company had to obtain an approval from its customers before sharing their personal information with their branches in other countries. Which of the following barriers is affecting the services of the insurance firm in the above scenario?
answer
controls on transborder data flows
question
A name, term, sign, symbol, design, or combination used worldwide to identify goods or services of one seller and to differentiate them from those of competitors is called a(n) _______.
answer
global brand
question
The Norton group, a manufacturer of toiletries and cleaning products uses the name Cleanex, for most its products in all of their international markets. The name has created a universal appeal for their products as customers identify their products with the name. Hence, Cleanex can be regarded as a _____.
answer
global brand
question
The ____ effect refers to the possibility that the place of manufacture may affect product or brand image.
answer
Country-of-origin
question
A shoe manufacturer in Puerto Ria shipped his entire production to San Francisco and brought it back to his home country to market it as "Made in the U.S." He knew that people would prefer buying products made in the U.S. rather than those that are domestically produced. The factor that is influencing the perception of the customers in the above scenario is called _____.
answer
country-of-origin
question
Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best". Which of the following would not fit in the "best" stereotype scheme?
answer
American chocolate
question
In Russia, products are divided into two categories- "ours" and "imported". This is an example of:
answer
ethnocentrism
question
Which of the following represents the shift of power in the marketplace?
answer
From a sellers' to a customers' market
question
Which are two dimensions of quality?
answer
Market-perceived quality and performance quality
question
Services are distinguished by all of the following unique characteristics EXCEPT:
answer
repeatability
question
Mary is a new international sales rep for an industrial supply company. She will learn that the inherent nature of industrial goods creates a market where:
answer
product and marketing mix standardization are commonplace
question
Goods are likely to be standardized if:
answer
their uses are the same across markets
question
Which of the following statements regarding the industrial goods market is true?
answer
Industrial goods are more standardized than consumer goods
question
Which of the following factors account for greater market similarities among industrial goods customers than among consumer goods customers?
answer
The inherent nature of the product
question
Along with industrial goods, the most rapidly growing sector of US international trade today consists of:
answer
business services
question
Demand in industrial markets differs from demand in consumer markets in that:
answer
the demand for industrial goods is more volatile than the demand for consumer goods
question
Industrial goods differ from consumer goods in that:
answer
the demand for industrial goods is largely derived demand.
question
Which of the following is an additional reason for marketing industrial goods abroad that does NOT necessarily apply to consumer goods?
answer
Reducing the volatility of demand
question
Which of the following is a factor that exacerbates the volatility in demand in industrial markets?
answer
Professional buyers in the market tend to act in concert
question
For managers selling capital equipment and big-ticket industrial services, understanding the concept of _____ is absolutely fundamental to their success.
answer
Derived demand
question
Derived demand can be defined as demand that is:
answer
dependent on another source
question
Which of the following can be used as a measure to manage volatility in industrial demand in the domestic market?
answer
Reducing advertising expenditures during booms
question
Why are German and Japanese firms generally better at managing market volatility than American firms?
answer
They value employees highly and eschew layoffs.
question
Which of the following is probably the most significant factor affecting the international market for industrial goods and services?
answer
The degree of industrialization
question
Which of the following is the first stage of Rostow's five-stage model of eco development?
answer
The traditional society
question
Which of the following is true of stage 1 of Rostow's five-stage model of eco development?
answer
The most important industrial demand relations to natural resources extraction
question
Which of the following is characteristic of Stage 2 of Rostow's five-stage model of eco growth?
answer
Infrastructure development is a primary requirement in the economy
question
Which of the following countries would be characterized as being in Stage 2 of Rostow's five-stage model of eco growth?
answer
Vietnam
question
A country has reached a level of economic development where there is focus on manufacturing of both semidurable and nondurable consumer goods. Also, the goods demanded relate to equipment and supplies to support manufacturing. Which of the following stages of Rostow's five-stage model of economic growth is the country in?
answer
Takeoff
question
Russia and Eastern European countries have been characterized as being in which of the following stages of Rostow's five-stage model of eco growth?
answer
Takeoff
question
In the ______ stage of Rostow's five-stage model of eco development, an industrialized eco's focus is more on low-cost manufacturing of a variety of consumer and some industrial products; they buy from all categories of industrial products and services.
answer
drive to maturity
question
Which of the following stages of Rostow's five-stage model of eco growth do industrialized ecos such as Korea and Czech Republic fit into?
answer
drive to maturity
question
Which of the following stages of Rostow's five-stage model of eco growth do highly-industrialized countries like Japan and Germany fit into?
answer
The age of mass consumption
question
Country X is likely to be in the age of mass consumption according to Rostow's five-stage model of eco development if:
answer
it is primarily a service eco
question
If a country is in Stage 5 of Rostow's five-stage model of eco development, it purchases most of its highest-tech products and services from _____.
answer
other stage 5 suppliers
question
Which of the following is possibly the best indicator of a country's ability to use technology to leap several stages of eco development in a very short time?
answer
The quality of the educational system
question
Which of the following factors spurs demand for technology advanced products in the world?
answer
Expanding eco and industrial growth in Asia
question
Which of the following will expand demand, particularly for industrial goods and business services in Latin America?
answer
The privatization of state-owned enterprises
question
The perception of quality:
answer
depends solely on the customer
question
Business-to-business marketers frequently misinterpret the concept of quality. Which of the following examples best illustrates this idea?
answer
Farmers in developing countries often prefer less-efficient but easier-to-maintain products
question
An important dimension of quality is how well the product:
answer
Meets the specific needs of the buyer
question
The process of total quality management (TQM) starts with:
answer
involving customers in the product development process
question
Which of the following statements is true of universal standards in the sale of international products?
answer
The lack of universal standards limits the expansion of an industry
question
The Global Harmonization Task Force is an international effort that is attempting to:
answer
synchronize standards for several international industrial sectors
question
Buyers in country X preferred to use the older version of Firm A's product although it was bulkier and less user-friendly. Buyers in Country Y, however, preferred to use the newer, lightweight version for its new user interface. What can be inferred from this info?
answer
The perception of quality can differ across countries
question
The US congress and business have been resisting conversion to the metric system because they fear:
answer
that it will be too costly to implement
question
The lack of universal standards in the industrial goods market:
answer
increases the cost of doing business
question
Which of the following countries is not officially on the metric system?
answer
The US
question
As compared to ISO 9000 standards, the American Customer Satisfaction Index (ACSI) focusses on:
answer
results, that is, quality as perceived by product and service users.
question
Which of the following is true of the ISO 9000 certification?
answer
The ISO 9000 standards are a certification of the quality control system that a company has in place
question
The ISO 9000 certification standards concerns the:
answer
registration and certification of a manufacturer's quality system
question
Many suppliers are adopting ISO 9000 standards because:
answer
their buyers require them to be ISO 9000 registered
question
Which of the following are driving a strong level of interest in the ISO 9000 certification?
answer
Marketplace requirements
question
Which of the following is true of ISO 9000 certification?
answer
The ISO 9000 is generally voluntary except for certain regulated products
question
Which of the following is considered to be an important competitive marketing tool in Europe?
answer
The adoption of ISO 9000 by a company
question
The ___ measures customers' satisfaction and perceptions of quality of a representative sample of America's goods and services
answer
American Customer Satisfaction Index (ACSI)
question
In the case of cellular phones, the physical product is practically given away to gain the phone services contract. This could be because:
answer
the revenues from associated services exceed the revenues from the cellular phone.
question
The ISO 9000 certification will allow a company to
answer
differentiate its product from its competitors
question
____ is/are rapidly becoming a major after-sales service when selling technical products in countries that demand the latest technology.
answer
Customer training
question
Firms that sell industrial goods in the international market should focus on after-sale services because these services:
answer
are almost always more profitable than the actual sale of the good itself.
question
For most consumer services firms, the mode of entry into a foreign market is licensing, franchising, strategic alliances, or direct. This is usually done because:
answer
the creation and consumption of services cannot be separated.
question
Some business services have intrinsic value that can be embodied in some tangible form; they can be produced in one country and exported in another. Which of the following is an example of this?
answer
Data processing services
question
Which of the following statements is true?
answer
Most business services companies enter international markets to service their local clients
question
S&F Advertising Agency has just acquired a significant piece of Miracle's multimillion-dollar advertising business. Miracle would particularly like S&F to come up with creative ideas for Miracle's recent expansion into South Asian markets of India and Indonesia. In order to accommodate Miracle, S&F has now opened offices in two Indian cities and one Indonesian city. What would be the proper term to use to describe what S&F is doing with its own expansion into the above Asian markets?
answer
client following
question
In knowledge-based services such as consulting, engineering, education, and info technology, _____ is a key driver of success and failure.
answer
intellectual property issues
question
What is the most serious threat to the continued expansion of international services trade?
answer
Protectionism
question
Restrictions on cross-border data flows are most damaging to industries that:
answer
rely on info transfers across country
question
Which of the following has become the primary vehicle for business-to-business promotion and selling in many foreign countries?
answer
Trade shows
question
_____ provide(s) the facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors' products.
answer
Trade shows
question
Which of the following is true of commercial relationships in countries with collectivistic and high-context cultures?
answer
Trust will be a crucial aspect of commercial relationships.
question
until the ______ and ________ agreements, there were few international rules of fair play governing trade in services
answer
GATT and NAFTA
question
Relationship marketing is particularly important in international markets where ___ dictates strong ties between people and companies
answer
culture
question
One of the key functions of global account managers revolves around the notion of:
answer
Intelligence gather
question
Which of the following is true of the distribution process?
answer
It includes buying and selling negotiations
question
In a ___ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers
answer
traditional
question
Which of the following statements is true of a traditional distribution structure?
answer
The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.
question
Which of the following distribution structures is also known as a traditional distribution structure?
answer
Import-oriented
question
Which of the following statements is true regarding an import-oriented distribution structure?
answer
The importer-wholesaler traditional performs most of the marketing functions.
question
___ has long been considered the most effective non tariff barrier to the Japanese market.
answer
The Japanese distribution structure
question
____ are considered to be the foundation of the Japanese distribution system.
answer
Small retailers
question
Which of the following characterizes the business philosophy of the Japanese distribution channels?
answer
Loyalty
question
Which of the following statements is true of the Japanese market?
answer
The Japanese distribution structure supports long-term dealer-supplier relationships.
question
In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores are first judged by the _____.
answer
Ministry of International Trade and Industry
question
In the international business arena, which of the following is considered to be one of Walmart's strengths?
answer
Internal Internet-based system
question
General Motors, _____, and DaimierChrysler have created a single online site called Covisint for purchasing automotive parts from suppliers.
answer
Ford Motor Company
question
Which of the following countries has the largest number of retailers
answer
China
question
In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the ____.
answer
speed of eco development
question
______ is often the approach of choice in markets with insufficient or underdeveloped distribution systems.
answer
Direct marketing
question
Which of the following has proved to be an important way to break the trade barrier imposed by the Japanese distribution system?
answer
Direct sales through catalogs
question
Which of the following are frequently criticized for not representing the best interests of a manufacturer?
answer
Merchant middlemen
question
____ take title to manufacturers' goods and assume the trading risks.
answer
Merchant middlemen
question
The distribution channel process includes all activities, beginning with the manufacturer and ending with the _____.
answer
final consumer
question
Which of the following statements is true regarding agent middlemen?
answer
They work on commission and arrange for sales in the foreign country.
question
Which of the following statements is true regarding merchant middlemen?
answer
They assume trading risks
question
A disadvantage when using home-country middlemen as intermediaries in the distribution process is:
answer
the limited control over the distribution process
question
Home-country middlemen are also known as ____ middlemen.
answer
domestic
question
In the context of the different types of middlemen, which of the following is an example of manufacturer's retail store?
answer
Benetton
question
James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company's products, credit arrangements, physical handling, and market research. Also, the middleman must be able to provide information on financial, patent, and licensing matters. In addition, the middleman should agree to work under the name of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he wants to meet his objectives?
answer
An export management company.
question
Which of the following is true regarding an export management company (EMC)?
answer
It calls for a minimum investment from the parent firm to get into international markets
question
A major disadvantage of ____ is that they can seldom afford to make the kind of market investment needed to establish deep distribution for products.
answer
export management companies
question
For companies seeking entrance into the complicated Japanese distribution system, ____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan.
answer
trading companies
question
Which of the following was a goal of the Export Trading Company Act?
answer
To remove antitrust disincentives to export activities
question
Which of the following arrangements are undertaken when a firm wants to keep its seasonal distribution channels function throughout the year?
answer
Complementary marketing
question
Complementary marketing is commonly known as____.
answer
piggybacking
question
Companies with marketing facilities in different countries with excess marketing capacity sometimes take on additional product lines for international distribution. The formal name for this type of marketing is:
answer
complementary marketing
question
A(n) ____ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that covers only one or two markets.
answer
Manufacturer's export agent
question
A ____ provides a selling service for a manufacturer, has short-term relationship, and operates on a straight commission basis.
answer
manufacturer's export agent
question
The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to which of the following acts?
answer
The Sherman Antitrust Act
question
A(n) ______ is a domestic middleman set up in a foreign country or US possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sales or lease of export property.
answer
foreign sales corporation
question
Which of the following is a type of domestic middleman?
answer
Export Management Companies
question
In the context of types of domestic middlemen, the WTO in 2003 ruled ____ to be in violation of international trade rules, thus starting a major trade dispute with the European Union.
answer
foreign sales corporations
question
Which of the following is true of foreign sales corporations?
answer
They can function as a principal or commissioned agent
question
Which of the following factors affects the choice of distribution channels?
answer
Available distribution intermediaries
question
Which of the following is one of the six Cs of distribution channel strategy
answer
Continuity
question
In the context factors affecting choice of channels, one of the key elements in distribution decisions includes _____.
answer
the functions performed by middlemen.
question
Which of the following is a critical element associated with using a particular type of middleman?
answer
Cash-flow patterns
question
In which of the following modes of distribution in the foreign market will a company have to make max. financial investment?
answer
Direct sales force.
question
Which of the following is one of the highest costs of doing business in China?
answer
Capital required to maintain effective distribution
question
Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical?
answer
Direct sales force
question
Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of distribution channel strategy?
answer
continuity
question
One of the reasons that channels of distribution often pose longevity problems is that most middle men______.
answer
have little loyalty to their vendors
question
___ is an arena that should be on a checklist of criteria for evaluating middlemen servicing a market.
answer
Productivity
question
Which of the following actions should be taken to begin with the search for prospective middlemen?
answer
Studying the target market
question
Experienced exporters suggest that the only way to select a middle man is:
answer
to personally talk to ultimate consumers to find whom they consider to be the best distributors.
question
Sixty percent of the Japanese population lives in the ____ market area, which essentially functions as one massive city.
answer
Tokyo-Nagoya-Osaka
question
Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products with a season or a year if they fail to produce during that period. THis is an example of problems associated with which of the following six Cs of channel strategy?
answer
Continuity
question
Apex Corporation is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of their goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in?
answer
parallel importing
question
In context of controlling middlemen, parallel importing is also known as _____.
answer
secondary wholesaling
question
E-commerce is more developed in ____ than the rest of the world, partly because of the lower cost of access to the internet than found elsewhere.
answer
US
question
In the context of the Internet of international marketing channels, technically, e-commerce is a form of ____ selling.
answer
direct
question
In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in ____.
answer
Spain
question
Which of the following is true of a physical distribution system?
answer
It includes transportation mode, inventory quantities, and packing.
question
In this distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. Identify the distribution structure in the discussion.
answer
Import-oriented
question
Agent Middlemen:
answer
work on commission and arrange for sales in the foreign country
question
____ will most likely use the services provided by a home-country middleman.
answer
Companies which want to sell abroad with minimum financial commitment
question
Which of the following techniques of motivating middlemen work best when cultural distances are great?
answer
Communication
question
All of the following is involved in a physical distribution system EXCEPT:
answer
advertising and promotion of goods
question
Integrated marketing communications are composed of all of the following EXCEPT:
answer
Political rallying
question
For most companies, which of the following are the major components in the marketing communications mix?
answer
Advertising and personal selling
question
_____ are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation
answer
Sales promotions
question
____ are short-term efforts directed to the consumer or retailer to achieve specific objectives as consumer product trial or immediate purchase.
answer
Sales promotion
question
In-store demonstrations, samples, coupons, contests, and sweepstakes are examples of ____ devices.
answer
sales promotions
question
All of the following are specific objectives of sales promotion EXCEPT:
answer
building brand loyalty
question
An especially effective promotional tool when a product concept is new or has a very small market share is known as ____.
answer
product sampling
question
Creating good relationships with the popular press and other media to help companies communicate messages to their publics-customers, the general public, and governmental regulators-is the role of____.
answer
public relations
question
Which of the following elements of integrated marketing communications is related to encouraging the press to cover positive stories about companies and managing unfavorable rumors, stories, and events?
answer
Public relations
question
_____ might be classified as an aspect of sales promotions or public relations, though their connections to advertising are also manifest.
answer
Corporate sponsorships
question
In the context of international advertising, global mass media advertising is a powerful tool for ____.
answer
cultural change
question
Of all elements in the marketing mix, decisions involving _____ are those most often affected by cultural differences among country markets
answer
advertising
question
In the context of international advertising, it has been observed that advertising expenditures are generally _____.
answer
cyclical
question
While developing an international advertisement campaign, which of the following is the first step of the process?
answer
Perform marketing research
question
Of all the elements in the marketing mix, decisions involving which of the following are those most often affected by cultural differences among country markets?
answer
Advertisement of the product
question
Of the seven steps involved in international advertising, _____ almost always represents the most daunting task for international marketing managers
answer
developing messages
question
Which of the following is an example of the primary attribute of a product?
answer
The ability of a camera to take a picture
question
Due to differences in culture in different markets, standardized products that are marketed globally will require:
answer
A different advertising appeal
question
The emergence of pan-European communications media will most likely cause companies to:
answer
choose more standardized promotional efforts
question
During which step of the international communications process does the receiver of the message interpret symbolism transmitted from the info source?
answer
Decoding
question
In the international communications process, during _____, the message from the source is converted into effective symbolism for transmission to a receiver.
answer
encoding
question
In the international communications process, the sales force of a company that conveys the encoded content to the intended receiver acts as a _____.
answer
message channel
question
In the international communications process, an international marketing executive with a product message to communicate acts as a(n) _____.
answer
information source
question
In the international communications process, ____ is defined as the interpretation by the receiver of the symbolism transmitted from the info source
answer
decoding
question
Cremics, a multinational drug manufacturing company, used a saffron trident in a promotional campaign for one of their drugs in India. The saffron trident, a religious symbol in India was meant to indicate the three levels of efficacy of the drug, but mistakenly conveyed a religious message to Indians. This miscommunication indicates a problem associated with which of the following steps of an international communications process?
answer
Encoding
question
Which of the following elements of the international communications process comprises external influences, such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of communication?
answer
Noise
question
Janet works for a media agency based in Japan. Janet is helping the IMC manager of Siljure, a French cosmetics company, with the design and language to be used in an upcoming promotional campaign in Japan. The IMC manager knows what to convey but wants to advertise it in a culturally relevant manner. Which step of the IMC process is Janet helping Siljure with?
answer
Encoding the message
question
In the communications process in advertising, during the ____ stage, a consumer takes certain actions to respond to a decoded message.
answer
receiver
question
In the context of the communications process in advertising, problems of literacy, media availability, and types of media create challenges in the communications process at the _____ step.
answer
encoding
question
Using newspapers or magazine ads as a channel of communication when the majority of the intended uses are illiterate, is an example of ineffective ____ in the communications process.
answer
media channel selection
question
With reference to the communication process in advertising, using the internet as a medium when only a small % of intended market has access to it, is an example of an error related to
answer
media channel selection
question
Meta Garbon, a manufacturer of sports bicycles, in a bid to tap the enormous market for bicycles in China promote their cycles as premium sporting and leisure bicycles. They use various cycling legends and sports celebrities as brand ambassadors, and use television, radio, and newspapers as media. Bicycles in China are used mainly by the working class for commutation, and the main users of bicycles did not relate to Meta Garbon's products and the promotional campaign was a failure. During which of the following steps of the IMC process did Meta Garbon go wrong?
answer
info source selection
question
Which of the following steps of a communications process is important as a check on the effectiveness of the other steps?
answer
Feedback
question
Which of the following statements about advertising laws around the world is correct?
answer
Toy, tobacco, and liquor advertising is restricted in numerous countries
question
Which of the following is an example of comparative advertising?
answer
An ad showing a dog choosing one brand of dog food over another
question
Which of the following are especially vulnerable as EU member states decide which area of regulation should apply to these services?
answer
Internet services
question
Companies that rely on television infomercials and television shopping are restricted by the limitations placed on the ____ of television commercials permitted when their programs are classified as advertisements.
answer
length and number
question
____ is one of the major barriers to effective communication through advertising.
answer
Language
question
____ in countries can distort media choice by changing the cost ratios of various media.
answer
Advertising taxation
question
The only way to avoid linguistic problems in advertising communication is by:
answer
in-country testing with the target consumer group
question
With respect to advertising,____ is especially important when a budget is small or where there are severe production limitations.
answer
creativity
question
Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in:
answer
radio and television broadcasting
question
One of the reasons for the notably low use of foreign national consumer magazines by international advertisers is that:
answer
few magazines provide reliable circulation data
question
Which of the following are considered to be major communications media in most countries due to their inherent entertainment value?
answer
radio and television
question
One of the drawbacks of satellites is:
answer
their ability to span a wide geographical region
question
_____ allows ESPN to fill visual real estate-blank walls, streets, stadium sidings- with computer-generated visuals that look like they belong in the scene.
answer
Princeton video imaging
question
Direct mail is an unpopular medium in Chile because:
answer
the letter carrier must collect additional postage for every item delivered.
question
____ suffer(s) from issues such as difficulty in assessing taxes, unfair competition, import duties, and privacy.
answer
The internet
question
With regard to consumer products, which of the following is the major limitation of the Internet?
answer
Coverage of the internet
question
Social media such as blogs and social networking permits consumers to:
answer
Become authorized virtual brand agents for the product manufacturers
question
Blogs, social networking, and video sharing are examples of media commonly known as ____.
answer
Social media
question
In which of the following countries is the time spent on social media sites the highest?
answer
Israel
question
In the context of media planning and analysis, billboards are especially useful in countries:
answer
with high literacy rates
question
In the context of international advertising, ___ is the neon capital of the world.
answer
Hong Kong
question
In Spain, a new medium for advertising called Publicoche includes:
answer
private cars that are painted with advertisements
question
In the context of international advertising, companies are moving from the commission system to a ____ system.
answer
reward-by-results
question
The assault on advertising of ____ is escalating international, as evidenced by the World Health Organization launching a global campaign against it.
answer
tobacco
question
Which of the following is true of advertising agencies for international advertising?
answer
cross-cultural communication between a foreign client and a local agency can be problematic
question
____ in advertising is a thorny issue, because most member countries of the European Commission have different interpretations of what constitutes a misleading advertisement.
answer
Deception
question
Identify the statement that is LEAST likely to be an international advertising goal.
answer
Gillette Company attempting to gain distributor cooperation in Japan.
question
Ron Thorne is an international marketing manager. He has just succeeded in creating a new advertising campaign for a new teenage deodorant from a well-known U.S. manufacturer. As he reviews his successes and failures with his campaign, he is reminded that his most daunting task (the most difficult) during the construction of the campaign came from a particular step in the process. This step also frustrates and challenges almost all international marketing managers. Which step is Mr. Thorne most likely referring to?
answer
develop the most effective message(s) for the market segments selected
question
In an international communication process carried out by a company, the sales force of the company acts as a ______.
answer
message channel
question
Assuming that international marketer has produced the right product, used the proper channel of distribution, and promoted the good correctly, the effort can fail badly if the international marketer fails to:
answer
set the right price for the goods or services
question
In general, price decisions are viewed in two ways. Which of the following is one of them?
answer
pricing as an active instrument of accomplishing marketing objectives.
question
Which of the following is true of a company that views prices as an active instrument of accomplishing marketing objectives?
answer
The company sets prices to achieve specific objectives
question
A company that views pricing as a static element in a business decision:
answer
exports only excess inventory
question
The Floral Group, an importing organization in New York, has just bought an excessive amount of perfume from perfume manufacturer in Paris. Unknown to the perfume manufacturer, the Floral Group has sold 25 percent of its order to distributors in France that have been unable to purchase any products from the perfume manufacturer. Which of the following best describes the transaction that has just taken place?
answer
parellel importing
question
Since it encourages retailers to stock large assortments of a product, the practice of ____ distribution often creates a favorable condition for parallel importing.
answer
exclusive
question
Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of:
answer
the costs of production of the good
question
In ____ pricing, the firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.
answer
Variable-cost
question
Which of the following characterizes the variable-cost pricing approach?
answer
In this approach, any contribution to fixed cost after variable costs are covered is profit to the company
question
____Pricing is a practical approach to pricing when a company has high fixed costs and unused production capacity.
answer
Marginal-cost
question
In____pricing, the philosophy is that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost.
answer
full cost
question
Which of the following approaches to pricing is suitable when a company has high variable costs relative to its fixed costs?
answer
Full cost pricing
question
Which of the following is true of the full-cost pricing approach?
answer
In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin.
question
A company uses _____ when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received.
answer
price skimming
question
If the supply of a good in a market is limited, a company may follow a ____ approach to maximize rev and to match demand to supply.
answer
price skimming
question
A ___ policy is used to stimulate market and sales growth by deliberately offering products at low prices.
answer
penetration pricing
question
Lush Cosmetics, a firm based in the U.S., recently started exporting cosmetics to India. Lush introduced a new range of mineral-based makeup for the first time in the Indian market. It was also priced much higher than the other brands in the market. This is an example of _____.
answer
price skimming
question
in most cases, the reason that products which cost relatively little in one country cost more in another is:
answer
the cost of exporting
question
____ results from the added costs incurred as a result of exporting products from one country to another.
answer
Price escalation
question
A(n) ____ duty is a flat charge per physical unit imported.
answer
specific
question
____ duties are levied as a percentage of the value of the goods imported.
answer
Ad valorem
question
____ are the primary discriminatory tax that must be taken into account in reckoning with foreign competition.
answer
Tariffs
question
In a ____ market, it is essential for a company to keep prices low and raise brand value to win the trust of consumers.
answer
deflationary
question
Which of the following is true of international currencies
answer
All major currencies are free floating relative to one another
question
When the value of the dollar is weak relative to the buyer's currency, sellers generally employ _____ pricing.
answer
cost-plus
question
When the Indian rupee depreciated against the US dollar, PC manufacturers who were dependent on imported parts had to ____ in order to retain their profit margins.
answer
raise the price of PCs
question
The final price of an imported product is likely to be high if:
answer
middleman markups are not standardized
question
One of the possible reasons for manufacturing in a third country could be an attempt to_____
answer
reduce manufacturing costs.
question
Lower prices to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) ____ basis.
answer
ad valorem
question
The creation of a free trade zone leads to:
answer
reduced price escalation
question
Drew's company imports materials and parts into a free trade zone (FTZ) within the US and then exports finished products to other countries. Her company will:
answer
not have to pay tariffs on the imported material and parts
question
Which of the following is true of free trade zones (FTZ)?
answer
In an FTZ, payment of import duties is postponed until the product leaves the FTZ area and enters the country
question
By shipping unassembled goods to a FTZ in an importing country, a marketer can lower costs because:
answer
duties are assessed at lower rates for unassembled goods
question
A marketer may face lower costs by shipping unassembled goods to a FTZ in an importing country because:
answer
wages may be lower in the importing country
question
The costs of production may be lowered if a firm ships unassembled goods to FTZ in an importing country because:
answer
unassembled goods may qualify for lower freight rates
question
One approach to defining the pricing policy of dumping is to say that it is a case where a product is sold in the international market:
answer
at a price below the cost of production
question
What is the function of a countervailing duty?
answer
To restrict the amount a country will import
question
A ____, which restricts the amount a country will import, may be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation
answer
minimum access volume
question
For ____ duties to be levied on a good, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by dumping.
answer
countervailing
question
Dumping in the world markets is likely to increase when:
answer
demand in the home country is low
question
Assembly in the importing country is a way companies attempt to lower prices and avoid dumping charges. These assembly plants are known as ____ plants.
answer
scewdriver
question
An importing selling technique to alleviate high prices and capital shortages for capital equipment is the ____ system.
answer
leasing
question
Which of the following would be considered an advantage of leasing equipment rather than owning it?
answer
leasing helps guarantee better maintenance on overseas equipment
question
When Polar Inc., an American fast-food company, wanted to market its burgers and fries in France, it was asked to accept French wine in return. This is an example of:
answer
countertrade
question
The use of countertrade in international trade:
answer
allows trade with countries short of hard currency
question
The crucial problem confronting a seller in a countertrade negotiation is determining the ____ for the goods offered as payment.
answer
potential demand
question
Which of the following is true of counter trading?
answer
Frequently there is inadequate time to conduct a market analysis in a countertrade negotiation
question
What do barter houses do?
answer
Specialize in trading goods and acquired through barter arrangements
question
____ are primary outside source of aid for companies beset by the uncertainty of a countertrade.
answer
barter houses
question
Which of the following is essential while making price quotations for international sale?
answer
Price quotations must specify the currency to be used and the credit terms of the transaction
question
in general, the end goal of all ____ is to reduce the impact of price competition or eliminate it.
answer
administered pricing activities
question
Which of the following is an example of a price-fixing arrangement?
answer
Cartels
question
A _____ exists when various companies producing similar products or services work to ether to control markets for the types of goods and services they produce.
answer
Cartel
question
____ is a typical payment procedure for established customers where the good are delivered, and the customer is billed on an end-of-the-month basis.
answer
An open account
question
A(n) _____ means that once the seller has accepted the credit, the buyer cannot alter it in any way without permission of the seller.
answer
irrevocable letter of credit
question
With ____, the seller assumes all risk until the actual dollar is received
answer
dollar drafts (bills of exchange)
question
Which of the following leave(s) sellers in a position where most of the problems of international commercial finance work to their disadvantage?
answer
Open accounts
question
In a(n) ____, the seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable.
answer
forfeiting transaction
question
Which of the following is true of open accounts?
answer
Sales on open accounts are not generally recommended when there is political unrest in the importer's country
question
In____, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount
answer
factoring
question
The company that follows the approach of viewing prices as an active instrument:
answer
sets prices to achieve targeted returns on profit
question
The company that follows the approach of pricing as a static element:
answer
Places a low priority on foreign business
question
Which of the following, because it encourages retailers to stock large assortments, often creates a favorable condition for parallel importing?
answer
Exclusive distribution
question
Firms unfamiliar with overseas marketing and firm producing industrial goods orient their pricing solely on:
answer
cost basis
question
____ are the primary discriminatory tax that must be taken into account in reckoning with foreign competition
answer
tariffs
question
In general, the end goal of all ____ pricing activities is to reduce the impact of price competition or eliminate it.
answer
administered
question
In US domestic trade, the typical payment procedure for established customers is a(n):
answer
open account
question
With _____, the seller assumes all risk until the actual dollars received
answer
dollar drafts
question
Which of the following obviously leave(s) sellers in a position where most of the problems of international commercial finance work to their disadvantage?
answer
open accounts
question
In ____, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount
answer
factoring
