Global Marketing Exam 2

A contributing factor in the globalization of markets is the spread of __________as the international language of international business. Select one: a. French b. Hindi c. English d. German e. Chinese

c. English

Countries exhibiting a slow takeoff and limited influence on other countries, but susceptible to foreign influences are ideal for later entry. In Asia, a country that DOES NOT meet this profile is Select one: a. Singapore b. India c. Japan d. China meet this profile e. Pakistan

c. Japan

__________________ means offering a uniform product on a regional or worldwide basis (only minor alterations are made to meet local standards). Select one: a. Customization b. Marginalization c. Standardization d. Assimilation e. Miniaturization

c. Standardization

__________________ are described as a coalition of two or more organizations to achieve strategically significant goals that are mutually beneficial. Select one: a. Greenfield operations b. Piggyback arrangements c. Strategic alliances d. Joint ventures e. Franchises

c. Strategic alliances

Local competitors in BEMs can thwart MNCs' inroads with Select one: a. superior technology products b. cheaper, more durable goods c. a combination of B and C d. better service e. none of the above—BEM companies are doomed to fail

c. a combination of B and C (?)

When market analysts examine indicators and classify countries into consideration piles (based on some criteria) that are doing __________________________. Select one: a. positioning strategy b. global market research c. country screening d. government research e. country quadrant positioning

c. country screening

When marketers are making the decision to enter an international market or not, the final step in the decision process is generally to Select one: a. decide on the target product/market b. decide on the time of entry c. decide on a control system to monitor the performance of the entered market d. decide on the goals of the target markets e. decide on the mode of entry

c. decide on a control system to monitor the performance of the entered market

One of the chief barriers or limits to global marketing is the Select one: a. government control of markets b. lack of respect for foreigners c. diversity of local environments d. amount of poor people in the world e. desire for affluent markets

c. diversity of local environments

Linked to the brand name is a collection of assets and liabilities called ____________. Select one: a. the trademark b. knowledge c. e. brand equity d. the patent e. proprietary investments

c. e. brand equity

One of the most popular entry modes in the international marketplace for service firms is Select one: a. direct exporting b. licensing c. franchising d. indirect exporting e. cooperative exporting

c. franchising

A special case where universal positioning clearly makes sense is the ___________ Select one: a. Asian citizen b. none of the above c. global citizen d. European citizen e. regional citizen

c. global citizen

Customization of product has a ______________________ orientation (increase customer satisfaction by adapting products to the local needs). Select one: a. budget-driven b. promotion-driven c. market-driven d. service-driven e. product-driven

c. market-driven

In a ______________________, scale economies flow from the mass production of more-or-less standard product components at a few manufacturing sites. Select one: a. linear approach b. forecasting approach c. modular approach d. divergence e. convergence approach

c. modular approach

One of the major impacts of information technology is Select one: a. dispersed product life cycles b. horizontal product life cycles c. shorter product life cycles d. vertical product life cycles e. lengthened product life cycles

c. shorter product life cycles

With respect to joint ventures, the ________________ argument is illustrated by not only shared capital and risk but possible contributions brought in by the local partner in land, raw materials, expertise on the local environment, and access to local distribution networks. Select one: a. domestication b. consensus management c. synergy d. parallel management e. demand

c. synergy

With respect to a brand name changeover strategy, the _________________ strategy alerts customers about the brand name change (via communications such as in-store displays). Select one: a. summary axing b. parallel dimension c. transparent forewarning d. fade-in/fade-out e. pyramid focusing

c. transparent forewarning

Most companies sell a wide assortment of products. The assortment is usually described on the dimensions of ______________________ of the product mix. Select one: a. width and timing b. width and ingredients c. width and length d. scale and length e. width and scale

c. width and length

____________________ is leveraging cross-border differences to better meet the needs and wants of the firm's target customers. Select one: a. Standardization b. Expansion c. Proliferation d. Customization e. Synthesizing

d. Customization

___________________ is a contractual strategy where the firm offers some proprietary assets to a foreign company in exchange for royalty fees. Select one: a. Cooperative exporting b. Indirect exporting c. Direct exporting d. Licensing e. Parallel exporting

d. Licensing

_____________________ come about when multinational companies prefer to enter new markets with 100 percent ownership. Select one: a. Joint ventures b. Parallel exporting agreements c. Contract manufacturing agreements d. Wholly owned subsidiaries e. Cooperative exporting agreements

d. Wholly owned subsidiaries

One of the main advantages of direct exporting over indirect exporting is that the exporter has more Select one: a. leadership b. budget c. leverage d. control over its operations e. risk

d. control over its operations

Very rarely do ______________________ themes work globally. Select one: a. psychographic b. geographic c. demographic d. emotional appeals / lifestyle positioning e. segmentation

d. emotional appeals / lifestyle positioning

With a(an) __________________, the foreign company agrees to share equity and other resources with other partners to establish a new entity in the target country. Select one: a. parallel exporting agreement b. contract manufacturing agreement c. cooperative exporting agreement d. equity joint venture e. export management company

d. equity joint venture

Because of its complexities, ____________________ development presents one of the stiffest challenges for international managers. Select one: a. transnational strategy b. multidomestic strategy c. local strategy d. global strategy e. regional strategy

d. global strategy

A uniform product policy capitalizes on the commonalities in customers' needs across countries. The goal is to Select one: a. maintain organizational structure b. maintain brand integrity c. reduce confusion d. minimize costs

d. minimize costs

One attempt to combine the strengths of standardization and customization of products is to deal with both issues as functions of product design. The _______________ approach consists of developing a range of product parts that can be used worldwide. The parts can be assembled into numerous product configurations. Select one: a. uniform commercial code b. Nexus c. core-product d. modular e. die-casting

d. modular

In global competition, ______________________ companies may be vulnerable to large-scale operators. Select one: a. technology-oriented b. demand-oriented c. supply-oriented d. niche-oriented e. consumer-oriented

d. niche-oriented

All of the following are strategic options available to international marketers to stop product piracy EXCEPT Select one: a. lobbying activities b. product policy options c. communication options d. product labeling e. legal action f. pricing

d. product labeling

Market segmentation is a logical outgrowth of Select one: a. efficiency in inventory control b. the supply function c. the product life cycle d. the marketing concept e. the demand function

d. the marketing concept

When marketers use a(n) _________________ segment, they are seeking to accommodate the existence of substantial gaps in cross-country customer needs and preferences. Select one: a. international b. customized c. universal d. unique/diverse e. combination

d. unique/diverse

In the area of universal product with different positioning, a __________________ product can be developed with different market segments in mind. Select one: a. national b. multinational c. local d. universal e. regional

d. universal

Timing is a very important element in any new product launch. One of the strategies is described as being the ________________. This method often involves introducing the new product in the company's home market and then moving to other advanced markets. Finally, less advanced markets are exposed to the product. Select one: a. rifle method b. sprinkler method c. shotgun method d. waterfall method e. dribble method

d. waterfall method

Lead markets represent countries where innovations in particular industries are prone to take place. All of the following are examples of lead countries EXCEPT Select one: a. France for fashion clothing and perfume b. Japan in consumer electronics c. the United States in computer software d. Germany for industrial control equipment e. Canada for computer hardware

e. Canada for computer hardware (?)

___________________ are(is) a prime motivation behind contract manufacturing. Select one: a. Desire to be part of a cartel b. Leadership c. Profit expansion d. Advertising cooperation e. Cost savings

e. Cost savings

________________________ determine the rivalry among existing firms. Select one: a. The threat of substitute products or services b. New entrants to the market c. The bargaining power of suppliers d. The bargaining power of buyers e. Industry competitors

e. Industry competitors

_____________________ means shortening the time to bring new product projects to the market. Select one: a. Perfection-to-market b. Orientation-to-market c. Delivery-to-market d. Extension-to-market e. Time-to-market

e. Time-to-market

______________________ are not stable, since values typically change over time. Select one: a. Global segments b. International segments c. Economic segments d. Political segments e. Value segments

e. Value segments

With respect to properties that an international market segment should ideally possess, the ____________________ property is important when the target country has differences in the quality of the media infrastructure (such as the absence of commercial television). Select one: a. stable b. identifiable c. actionable d. sizable e. accessible

e. accessible

When comparing the product mix in the company's host and home markets, all of the following are possible scenarios EXCEPT Select one: a. a subset of the home market's product line b. a mixture of local and nonlocal product lines c. an extension of the domestic line d. a completely localized product line e. an extension of a joint venture or strategic alliance

e. an extension of a joint venture or strategic alliance

If the firm decides to opt for different segments on a country-by-country basis, the norm is to also __________________ the positioning appeals. Select one: a. internalize b. globalize c. externalize d. none of the above e. customize

e. customize

Which of the following could be used as an advantage by first-movers? Select one: a. none of the above b. once in, you can rest on your laurels as market leader c. infrastructure is there for you to develop as you wish d. uncertainties of customer desires e. cutting edge technology supports rapid innovation and product introduction

e. cutting edge technology supports rapid innovation and product introduction

In global market entry, all of the following are entry decisions that must be made by management before entering an international market EXCEPT Select one: a. decide on the goals of the target markets b. decide on the mode of entry c. decide on the target product/market d. decide on the time of entry e. decide on the target budget

e. decide on the target budget

Most companies start their international expansion with _________________. Select one: a. joint ventures b. franchising c. contract manufacturing d. licensing e. exporting

e. exporting

With respect to a brand name changeover strategy, the _________________ strategy ties the new global brand name to the existing local brand name. After a transition period, the old name is dropped. Select one: a. pyramid focusing b. transparent forewarning c. summary axing d. parallel dimension e. fade-in/fade-out

e. fade-in/fade-out

Another name for universal segments is Select one: a. regional b. multi-regional c. transnational d. local e. global

e. global

When a multinational company chooses to invest in foreign markets with wholly owned subsidiaries, these subsidiaries may be acquisitions or _______________ operations. Select one: a. franchise b. piggyback c. joint venture d. strategic alliance e. greenfield

e. greenfield

With respect to industry globalization forces, ________________ depend on the nature of customer behavior and the structure of channels of distribution. Select one: a. quality forces b. competitive forces c. government forces d. cost forces e. market forces

e. market forces

The primary advantage to using a standardization approach to marketing a product in the international arena is Select one: a. less service complaints b. standard budgets c. less product returns d. more profit e. minimization of costs (which can be passed on to customers)

e. minimization of costs (which can be passed on to customers)

Firms using a ______________ strategy focus exclusively on a highly specialized segment of the market. Select one: a. demand b. global c. supply d. regional e. niche

e. niche

There are no magic ingredients to foster the stability of joint ventures, however, all of the following are good guidelines EXCEPT: Select one: a. establish clear objectives from the beginning b. pick the right partner c. get top management commitment and respect d. bridge cultural gaps e. pick a partner with which control can be maintained

e. pick a partner with which control can be maintained

Cooperative exporting is also called: Select one: a. long-range exporting b. specialist exporting c. backward exporting d. lean exporting e. piggyback exporting

e. piggyback exporting

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following of those types can be used to gather intelligence and establish a network? Select one: a. maturing and established countries b. none of the above c. growth countries d. emerging countries e. platform countries

e. platform countries

With the approach known as , there is a phased rollout. Select one: a. rifle method b. dribble method c. sprinkler method d. shotgun method e. waterfall method

e. waterfall method

The ______________ of the product assortment refers to the collection of different product lines marketed by the firm. Select one: a. horizontal scale b. length c. consistency d. vertical scale e. width

e. width

All of the following are examples of market forces EXCEPT Select one: a. transferable marketing b. spread of global and regional media c. global customers and channels d. common customer needs e. establishment of world brands f. experience curves

f. experience curves

Which of the following would NOT be considered a competitive driver with respect to industry globalization forces? Select one: a. reduction of tariff and nontariff barriers b. increase in global strategic alliances c. globalized financial markets d. rise of "born global" internet and other companies e. increase in world trade f. more countries as key battlegrounds g. interdependence in some industries

g. interdependence in some industries (?)

Find the general statement about the country of origin (COO) effect listed below that is NOT true. Select one: a. COO effects are stable. b. Angry consumers are more likely to use COO information in their product evaluations than sad consumers c. COO has an impact on how much consumers are willing to pay for a product d. Both the country of design and the country of manufacturing/assembly play a role e. Consumers sometimes view purchasing from certain countries as the "right" thing

a. COO effects are stable.

______________________ means that the firm enters into an agreement with another firm (local or foreign) where the partner will use its distribution network to sell the exporter's goods. Select one: a. Cooperative exporting b. Venture exporting c. Parallel exporting d. Indirect exporting e. Licensing

a. Cooperative exporting

_________________ depend on the economics of the business. These forces particularly affect production location decisions. Select one: a. Cost forces b. Government forces c. Quality forces d. Competitive forces e. Market forces

a. Cost forces

In ____________________, the company arranges with a local manufacturer to manufacture parts of the product or even the entire product. The marketing of the product, however, is still the responsibility of the international firm. Select one: a. contract manufacturing b. franchising c. licensing d. cooperative exporting e. indirect exporting

a. contract manufacturing

A good place to start is to analyze each individual country's product portfolio on the basis of a sales turnover basis. Product lines can be categorized by all the following ways EXCEPT Select one: a. cultural products b. core products c. seasonal products d. filler products e. niche items

a. cultural products

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following of those types can be used to build up an initial presence (such as through a liaison office)? Select one: a. emerging countries b. growth countries c. none of the above d. platform countries e. maturing and established countries

a. emerging countries

The chief reason that some firms choose acquisitions (or mergers) to enter a foreign market is that they can: Select one: a. enter the market more quickly b. reduce debt c. receive greater profits d. receive greater tax relief e. increase stock price

a. enter the market more quickly

With respect to product categories analyzed on the basis of sales turnover, a_____________ product is one where the product is only a small portion of the subsidiary's overall sales. These even might be "dead-weight" items. Select one: a. filler product b. niche item c. seasonal product d. core product e. cultural product

a. filler product

A truly ________________ is one that has a consistent identity with consumers across the world. Select one: a. global brand b. local brand c. public brand d. private brand e. government brand

a. global brand

Import tariffs and quotas, nontariff barriers, export subsidies, and local content requirements are all examples of which kind of industry globalization driver? Select one: a. government forces b. market forces c. competitive forces d. quality forces e. cost forces

a. government forces

Variation in customer needs is the primary reason for ____________________. Select one: a. market segmentation b. sales segmentation c. quality segmentation d. country segmentation e. product segmentation

a. market segmentation

A persistent problem faced by international marketers is how to strike the balance between standardization and customization. Using international marketing segmentation to shed some light on this issue would be an example of which of the following reasons why international marketers implement international market segmentation? Select one: a. marketing mix policy b. positioning strategy c. country screening d. entry decisions e. global market research

a. marketing mix policy

Truly global innovators are called Select one: a. metanational innovators b. beta innovators c. gamma innovators d. delta innovators e. none of the above

a. metanational innovators

The ____________________ of a market refers to the country's distribution system, transportation network, and communication system. Select one: a. physical infrastructure b. logistical c. infrastructure d. demographic environment e. physical distribution

a. physical infrastructure

One of the most popular forms of cooperative exporting is _________________. With this method, the company uses the overseas distribution network of another company (local or foreign) for selling its goods in the foreign market. Select one: a. piggyback exporting b. foreign export management exporting c. make-or-buy exporting d. parallel exporting e. venture exporting

a. piggyback exporting

In general, the rate of adoption of new products (in foreign markets) is driven by individual differences, personal influences, and Select one: a. product characteristics b. promotion characteristics c. trends d. cash on hand e. fashion

a. product characteristics

To what extent does the new product offer more perceived value to potential adopters than exiting alternatives, would be a question that best fits with which of the following key product characteristics acceptance categories? Select one: a. relative advantage b. trial ability c. compatibility d. complexity e. observability

a. relative advantage

A key to pursuing a product policy of product design families (or product design standardization) lies in Select one: a. standardization of components and basic designs b. quality control c. good engineering d. good die-casts e. standardization of labor

a. standardization of components and basic designs

The goal of market segmentation is to break down the market for a product or a service into different groups of consumers so the firm can Select one: a. tailor its marketing mix to each individual segment b. make the sales job easier c. make more money d. offer a customized product to every consumer e. offer a standard product to every consumer

a. tailor its marketing mix to each individual segment

Conjoint analysis is also referred to as _____________________. Select one: a. trade-off analysis b. longitudinal analysis c. geometric analysis d. metric analysis e. meta analysis

a. trade-off analysis

In the international market segmentation game, developing a positioning theme involves the quest for a Select one: a. unique selling proposition (USP) b. a friendly host government c. large segment d. strong manager e. profitable segment

a. unique selling proposition (USP)

When a universal product is developed with different market segments in mind, it is an example of which of the following product policies? Select one: a. universal product with different positioning b. product design families c. core components standardization d. universal product with all features e. core components miniaturization

a. universal product with different positioning

Real time management Select one: a. can allow companies to make better decisions b. A, B, and C are all correct c. can cause even greater problems if information is not shared with relevant parties d. has been made possible with breakthroughs in information technology e. is too expensive to be truly useful

b. A, B, and C are all correct (?)

________________ is an umbrella term that embraces a collection of statistical procedures for dividing objects into groups. Select one: a. Regression analysis b. Cluster analysis c. The median d. Correlation analysis e. The mean

b. Cluster analysis

____________________ variables are among the most popular segmentation criteria Select one: a. Lifestyle b. Demographic c. Consumption d. Psychographic e. Geographic

b. Demographic

During a naming/branding transition period, when local and global brand names are kept so that consumers and the trade have sufficient time to absorb the new brand name, the approach is called Select one: a. Double naming b. Dual branding c. Collaborative branding d. Collective branding

b. Dual branding

Young & Rubicam, a global marketing communications agency, conducted an online study of 18-35 year olds in Asian markets. The segments were all the following EXCEPT Select one: a. Assertives b. Gamers c. Questioners d. Progressives e. Centrists f. Optimists g. Patriots

b. Gamers

One particularly useful technique in analyzing a firm's competitive position relative to its competitors is referred to as SWOT which stands for Select one: a. Strengths, Weaknesses, Opportunities, Total costs b. Strengths, Weaknesses, Opportunities, Threats c. Strengths, Weaknesses, Operations, Training d. Strengths, Weaknesses, Opportunities, Transfers e. Strengths, Weaknesses, Organization, Total value

b. Strengths, Weaknesses, Opportunities, Threats

When contrasted with greenfield operations, _________________ provide(s) a rapid means to get access to the local market. Select one: a. joint ventures b. acquisitions c. contract manufacturing d. exporting e. licensing

b. acquisitions

Lifestyle segmentation is popular in __________________________. Select one: a. management circles b. advertising circles c. finance circles d. manufacturing circles e. distribution circles

b. advertising circles

Adoption rates of new products are affected by Select one: a. cosmopolitanism b. all of the above c. population homogeneity d. proportion of women in the labor force e. mobility

b. all of the above

The chief reason for a company choosing the sprinkler method of new product introduction is to off-set Select one: a. unstable labor b. competitive preemption c. rising costs d. shoddy promotions e. government control

b. competitive preemption

Like licensing and franchising, nurturing a future competitor is one of the biggest dangers in ___________________. Select one: a. cooperative exporting b. contract manufacturing c. indirect exporting d. using an export management company e. parallel exporting

b. contract manufacturing

Companies that plan to engage in exporting have a choice between indirect,_________________, and direct exporting. Select one: a. venture b. cooperative c. licensing d. summation e. parallel

b. cooperative

One of the pitfalls that a global marketer can run into is _____________. This would occur when too much adaptation to the local market occurs and the brand becomes vulnerable to losing its unique foreignness. Select one: a. over standardization b. over customization c. technocracy d. group think e. micro-managing

b. over customization

One of the disadvantages that a global marketer may have is ___________________. This would occur when too much standardization stifles initiative and experimentation at the local level. Select one: a. group think b. over standardization c. over customization d. micro-managing e. technocracy

b. over standardization

Brand architecture guides the dynamics of the firm's brand __________________ Select one: a. color b. portfolio c. none of the above d. basket e. Web

b. portfolio

Standardization of product has a orientation (lower costs via mass production). Select one: a. market-driven b. product-driven c. service-driven d. budget-driven e. promotion-driven

b. product-driven

One of the major challenges faced by international marketers of services is Select one: a. low profits b. protectionism c. patent infringement d. piracy e. high costs

b. protectionism

Once new product ideas have been identified, the next logical step is to ______ the ideas. Select one: a. market b. screen c. fund d. budget e. trademark

b. screen

Geographical boundaries and distances have become less of a constraint in designing strategies for the global market because of: Select one: a. the expanding role of government in international trade b. the explosion of information technology that has changed global competition c. the revived role of the United Nations d. a stable demand structure in the international marketplace e. a growing travel industry

b. the explosion of information technology that has changed global competition

Within the arena of positioning strategy, the battle is for Select one: a. the best market share b. the mind of your target customer. c. the new territory d. the high ground e. the competition's heartland

b. the mind of your target customer.

A major advantage of joint ventures, as compared to lesser forms of resource commitment such as licensing, is Select one: a. an increase in ethical standards b. the return potential c. expansion of stockholders d. infrastructure enhancement e. division of leadership

b. the return potential

Two positioning strategies available to international marketers include Select one: a. uniform and computerized positioning strategies b. uniform and localized positioning strategies c. d. universal and localized positioning strategies e. uniform and regional positioning strategies

b. uniform and localized positioning strategies