INT 12-15

A consortium is different from a joint venture in that a consortium: 1) typically involves a large number of participants. 2) restricts the right to hold an equity position by its major partners. 3) usually operates in a country in which the participants are already active. 4) is formed mainly for executing short-term projects. 5) does not involve the creation of a separate legal entity.

1

An important dimension of quality is how well the product: 1) meets the specific needs of the buyer. 2) saves time and labor. 3) exceeds competitors' products. 4) alters the marketing landscape. 5) conforms to manufacturer's specifications.

1

From a sociological viewpoint, any idea perceived as new by a group of people is considered as a(n) ________. 1) innovation 2) creation 3) adaptation 4) tradition 5) declension

1

GHB Corp. is a manufacturer of consumer goods. It intends to sell its products in Vietnam as it is looking to enter into Asian markets. It does not want to make any equity investment and is keen on minimizing any risk of loss in the foreign market. It is also willing to settle for a low rate of return. Which of the following types of foreign market-entry strategies is GHB most likely to follow? 1) Indirect exporting 2) Strategic alliance 3) Direct foreign investment 4) Joint Venture 5) Licensing

1

In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the ________. 1) speed of economic development 2) population growth 3) currency exchange rate 4) literacy rate 5) rate of inflation

1

In the context of foreign market entry strategies, the advantages of ________ are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse. 1) licensing 2) exporting arrangements 3) strategic alliances 4) joint ventures 5) consortia

1

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? 1) An export management company 2) A manufacturer's export agent 3) A trade representative 4) A complementary marketer 5) An export merchant

1

She Tales, a women's clothing company based in Singapore, had to modify its clothes before introducing them in markets in Iran to suit the needs of the women in that country who are generally expected to cover themselves completely as per societal norms. To adapt its clothes to Iranian markets, She Tales had to mostly use opaque material and provided accessories like scarves. Which of the following factors has dictated She Tales' product adaptation in this scenario? 1) Cultural requirements 2) Climatic requirements 3) Economic requirements 4) Legal requirements 5) Technological requirements

1

Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product? 1) Market analyst's self-reference criterion 2) Low number of product competitors 3) A shorter distribution channel 4) Authoritative product information of the market analyst 5) Too much product information

1

Which of the following is true about tactical planning? 1) It is designed to address questions that relate to advertising and marketing. 2) It is conducted at the highest levels of management. 3) It is most commonly referred to as corporate planning. 4) It specifically deals with a company's products, capital, and research at a global level. 5) It excludes plans that are made at the local level.

1

________ are considered to be the foundation of the Japanese distribution system. 1) Small retailers 2) Brokers 3) Manufacturers 4) Wholesalers 5) Consumers

1

According to the product component model, installation, repair and maintenance, deliveries, and warranties are most likely to be part of the ________ component of the product. 1) packaging 2) support services 3) core 4) styling 5) functional

2

An important first step in adapting a product to a foreign market is to determine: 1) the product's compliancy to irrational beliefs of its potential foreign consumers. 2) the degree of newness of the product as perceived by the intended market. 3) the regional political parties present in the domestic market. 4) the language problem of the intended market. 5) the personal ethics of individuals in the target market.

2

Booster Bar, a popular brand of energy bars in Canada, sold its 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 has most likely influenced Booster Bar's product adaptation in the form of reduction of bar units per package in this scenario? 1) Technological requirements 2) Economic requirements 3) Political requirements 4) Legal requirements 5) Cultural requirements

2

Great Britain has epitomized distribution through specialty-type middlemen, distributors, wholesalers, and retailers. In recent years, however, there has been a trend toward broader lines, conglomerate merchandising, and mass marketing. This suggests that a firm that neglects the growth of self-service, scrambled merchandising, or discounting may find that it has lost large segments of its market only because its channels no longer reflect the ________ of the market. 1) cost 2) character 3) capital requirement 4) continuity 5) control

2

Industrial markets differ from consumer markets in that: 1) industrial goods are marketed domestically whereas consumer goods are marketed internationally. 2) the demand for industrial goods is more volatile than the demand for consumer goods. 3) industrial products use the same level of technology for all products making it appropriate for all countries whereas consumer goods need to be customized for each market. 4) the market for industrial goods is insignificant in comparison to the market for consumer goods. 5) industrial products are always more expensive than consumer products.

2

Pots and Pans Inc., a large U.S. kitchenware distributor, sells its inventory twice a year to CookWell Corp., a kitchenware retailer in the United States. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following is Pots and Pans most likely engaged in? 1) Direct foreign investment 2) Indirect exporting 3) A joint venture 4) Franchising 5) A consortium

2

Pots and Pans Inc., a large U.S. kitchenware distributor, takes a selection of its inventory twice a year to Vietnam and sells it to CookWell Corp., a large Vietnam-based kitchen retailer. CookWell, in turn, sells those products through its retail stores in Vietnam and Thailand. Which of the following best describes the alternative market-entry strategy that Pots and Pans is engaged in? 1) A joint venture 2) Direct exporting 3) Licensing 4) Franchising 5) Direct foreign investment

2

The perception of quality: 1) depends on the manufacturer's specifications. 2) depends solely on the customer. 3) is specified by the government. 4) is the same for most industrial goods. 5) is defined by universal quality standards.

2

Which of the following countries is NOT officially on the metric system? 1) Mexico 2) The United States 3) Saudi Arabia 4) Japan 5) China

2

Which of the following is the most significant factor affecting the international market for industrial goods and services? 1) The foreign exchange market 2) The degree of industrialization 3) The level of domestic competition 4) Political conditions 5) Global warming

2

Which of the following modes of foreign market entry requires the most amount of equity and therefore, creates the greatest risk? 1) Contractual agreement 2) Direct foreign investment 3) Exporting 4) Joint venture 5) Strategic alliance

2

Which of the following refers to two or more participating companies joining forces to create a separate legal entity to facilitate doing business in the international arena? 1) Franchise 2) Joint venture 3) Direct investment agreement 4) Indirect exporting 5) License arrangement

2

________ is the process by which innovation spreads. 1) Liquidation 2) Diffusion 3) Filtering 4) Dissolution 5) Flighting

2

Big Donuts has already reviewed its objectives and capabilities, established the screening criteria for reviewing potential foreign markets, and examined a series of environmental factors for the markets in which it plans to operate. What should Big Donuts do next as it proceeds with the international planning process? 1) Modify the company's position to communication objectives. 2) Match the company to a country's needs. 3) Evaluate the marketing mix to target markets. 4) Implement and control information obtained in the initial examination. 5) Develop a marketing plan.

3

Carolyn, who is interested in marketing her company's diet products in Asia, studies the acceptable behavior, norms, and values in Asian markets. In this scenario, Carolyn studies her product's ________ in the Asian markets. 1) docibility 2) partibility 3) compatibility 4) billability 5) dissidence

3

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. 1) complementary marketers 2) export management companies 3) trading companies 4) trade representatives 5) brokers

3

In Russia, products are divided into two categories-"ours" and "imported." This is an example of: 1) a closed economy. 2) feudalism. 3) ethnocentrism. 4) an autarky. 5) theocentrism.

3

The ________ effect refers to the possibility that the place of manufacture may affect product or brand image. 1) Doppler 2) polar 3) country-of-origin 4) transfer 5) misinformation

3

Which of the following arrangements is undertaken when a firm wants to keep its seasonal distribution channels functioning throughout the year? 1) Using the services of a trading company 2) Establishing a retail store 3) Complementary marketing 4) Using the services of an export management company 5) Price skimming

3

Which of the following characterizes the business philosophy of the Japanese distribution channels? 1) Fast delivery 2) Direct sales 3) Loyalty 4) Variety 5) Price competition

3

Which of the following is a factor that exacerbates the volatility in demand in industrial markets? 1) Small, noncyclical swings in demand are inherent in industrial markets. 2) Experienced purchasers tend to make buying decisions independently. 3) Professional buyers in the industrial market tend to act in concert. 4) The demand for industrial goods is highly inelastic. 5) The demand for industrial goods is independent of changes in economic development.

3

Which of the following is the first phase in the international planning process? 1) Developing the marketing plan 2) Defining market segments 3) Matching company and country needs 4) Adapting the marketing mix to target markets 5) Implementation and control

3

Which of the following statements is true of industrial markets? 1) Sales of industrial goods are stable and do not fluctuate. 2) Industrial markets are unaffected by derived demand. 3) Industrial sellers tend to have small numbers of customers upon which they are more dependent. 4) Demand in industrial markets is nonvolatile by nature. 5) Professional buyers in industrial markets tend to undertake dissimilar investment actions to achieve the same goal.

3

Who are frequently criticized for not representing the best interests of a manufacturer? 1) Consumers 2) Brokers 3) Merchant middlemen 4) Global wholesalers 5) Trading companies

3

________ has long been considered the most effective nontariff barrier to the Japanese market. 1) Import and export procedures in Japan 2) Population in Japan 3) Distribution in Japan 4) Intense competition in Japan 5) Culture in Japan

3

________ is often the approach of choice in markets with insufficient or underdeveloped distribution systems. 1) A discount house 2) Television advertising 3) Direct marketing 4) A big wholesale store 5) Internet selling

3

________ planning is conducted at the highest levels of management and deals with products, capital, research, and the long- and short-term goals of a company. 1) Market 2) Tactical 3) Strategic 4) Personnel 5) Single-use

3

A disadvantage when using home-country middlemen as intermediaries in the distribution process is the: 1) large amount of commission. 2) limited number of retailers in the foreign country who can be reached. 3) large financial investment required. 4) limited control over the distribution process. 5) large managerial investments required.

4

Apex Corp. is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of its 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? 1) Industrial piracy 2) Black marketing 3) Smuggling 4) Parallel importing 5) Backwashing

4

Complementary marketing is commonly known as ________. 1) skimming 2) demand shifting 3) backhauling 4) piggybacking 5) shape shifting

4

For managers selling capital equipment and big-ticket industrial services, understanding the concept of ________ is absolutely fundamental to their success. 1) Baskerville effect 2) availability heuristic 3) bank effect 4) derived demand 5) catapult demand

4

GreatW, a wine company, had to market its products with a different name in a foreign market as it was mandatory to translate the name into the local language. Which of the following factors has most likely influenced the compulsory change of GreatW's product name in the foreign market in this scenario? 1) Economic requirement 2) Technological requirement 3) Monetary requirement 4) Legal requirement 5) Climatic requirement

4

In the context of foreign market entry, a ________ is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective without forming a separate legal entity. 1) franchising arrangement 2) direct sales group 3) joint venture 4) strategic international alliance 5) consortium arrangement

4

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? 1) Control 2) Cost 3) Character 4) Continuity 5) Capital requirement

4

Nuan, a television manufacturer in Korea, had to simplify its televisions before introducing it to the Zimbabwean markets, as the country lacked the skills to repair the product in case of a malfunction. The local salesforce too did not have the sufficient knowledge about the installation of the product. The factor that is influencing product adaptation in this scenario is ________. 1) climatic requirements 2) cultural requirements 3) legal requirements 4) technological requirements 5) political requirements

4

Which is the largest services export of the United States, ranking behind only capital goods and industrial supplies when all exports are counted? 1) Research and development 2) Education services 3) Banking services 4) International tourism 5) Automobile services

4

Which of the following barriers faced by consumer service marketers is in force when a foreign market strictly requires that services (such as banking or insurance) originate within the country itself and not from outside? 1) Lack of transborder data flows restrictions 2) Language translation barriers 3) Religious requirements for adaptation 4) Protectionism 5) Protection of intellectual property

4

Which of the following distribution structures is also known as a traditional distribution structure? 1) Manufacturer-oriented 2) Service-oriented 3) Customer-oriented 4) Import-oriented 5) Export-oriented

4

Which of the following is an additional reason for marketing industrial goods abroad that does NOT necessarily apply to consumer goods? 1) Acquiring ISO certification 2) Acquiring ACSI certification 3) Avoiding sales tax 4) Reducing the volatility of demand 5) Bypassing import tariffs

4

Which of the following will expand demand for industrial goods and business services in Latin America? 1) The increase of import tariff by 70 percent 2) The decline of economic growth in Asia 3) The adoption of Marxist-socialist policies 4) The privatization of state-owned enterprises 5) The increased use of labor in place of capital in production

4

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 ________. 1) copymark 2) brand's equity position 3) brand jingle 4) copier 5) global brand

5

Cherry Computers had difficulties when it first entered the Japanese market with its CheriTec computers. Some of its computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be an insignificant problem in the U.S., it was certainly a cause of concern in quality-conscious Japan. Which of the following components of the product component model should Cherry Computers concentrate on to fix this problem? 1) The core component 2) The design component 3) The support services component 4) Functional component 5) The packaging component

5

Grengens, 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 an extra plastic wrapper to protect it from the heat and dust. Which of the following factors in the local market is most likely to have dictated Grengens' product adaptation in this scenario? 1) Technological requirements 2) Political requirements 3) Legal requirements 4) Economic requirements 5) Climatic requirements

5

How do the vast majority of services enter a foreign market? 1) Through diaspora population 2) Smuggling 3) Exporting 4) Through brokers 5) Licensing, franchising, or direct investment

5

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. 1) domestic 2) customer-oriented 3) service 4) manufacturer-oriented 5) traditional

5

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 a longer life, and can also be marketed at a competitive price than those of other sellers in the local market. The innovation characteristic of Martin's product that will help in wide acceptance of his product in the local market is its ________. 1) vincibility 2) partibility 3) defectibility 4) docibility 5) relative advantage

5

The industrialized economies in the ________ stage of Rostow's five-stage model of economic development focus more on low-cost manufacturing of a variety of consumer and some industrial goods. They buy from all categories of industrial products and services. 1) preconditions to takeoff 2) takeoff 3) age of mass consumption 4) traditional society 5) drive to maturity

5

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 ________. 1) global product standardization 2) product dilution 3) product disapprobation 4) product obsolescence 5) product homologation

5

Which of the following stages of Rostow's five-stage model of economic growth do highly-industrialized countries like Japan and Germany fit into? 1) Traditional society 2) Takeoff 3) Preconditions to takeoff 4) Drive to maturity 5) The age of mass consumption

5