marketing exam 3

Which type of business market tends to have the most complex buying procedures?

Government

If Kyrgyzstan levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Kyrgyzstan, its businesses and citizens would be paying a(n)

Import tariff

Which of the following is often used to raise revenue for a country and/or to protect domestic products?

Import tariff

The purchase of products from a foreign source is called

Importing

The role of an export agent is to

bring buyers and sellers from different countries together and collect a commission for arranging sales.

What is the primary distinction between a joint venture and a strategic alliance in international marketing?

A joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work together.

What are the two ways governments make purchases?

Bids and negotiated contracts

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?

Description

T/F All companies, no matter what their size or market position, maintain only one buying center.

False

T/F Brand name, product characteristics, packaging, and media allocation are among the easiest marketing mix variables to standardize around the world.

False

T/F Cultural relativism is the unconscious reference to one's own cultural values, experiences, and knowledge when traveling in other countries.

False

T/F Firms with internationally integrated structures are the least likely to engage in direct ownership activities internationally.

False

T/F Importing is the sale of products to foreign markets.

False

T/F Opportunities for international marketers are limited to industrial nations with the highest incomes.

False

T/F The four categories of consumer markets are producer, reseller, government, and institutional.

False

T/F The increase in consumers who publish their own thoughts and product reviews through digital media has caused consumer-generated information to be less important because some of the information is false.

False

T/F The internet is sometimes referred to as a push medium because marketers determine which websites consumers are going to view.

False

T/F The study of the cultural environment is unnecessary in the foreign market because foreign consumers will accept anything that American marketers have to sell.

False

T/F To obtain the names of specific potential customers, the business marketer is well advised to employ the services of a commercial data company, since this is both cheaper and faster than any other method.

False

Which of the following alliances/agreements is the United States NOT a part of?

MERCOSUR

Retailers like Staples and PetSmart are considered to be members of which business market?

Reseller

Which of the following statements about reseller markets is false?

Resellers are not concerned with how much space the product takes up as long as it has a high price.

T/F An accounting firm contracts with a local janitorial services company for janitorial services twice a week. The accounting firm is outsourcing for its janitorial service needs.

True

T/F As the internet and digital communication technologies have advanced, marketers are able to target markets more precisely.

True

T/F Buyers in producer markets purchase either raw materials, semifinished products, or finished products.

True

T/F Customs and taboos are culture-bound and should be taken into consideration when products are marketed in a foreign environment.

True

T/F During the early stages of international development, most firms make few, if any, adjustments to their organizational structure to accommodate international sales.

True

T/F International marketing is defined as marketing activities performed across national boundaries.

True

T/F The increase in government purchases has resulted partly from the increase in the number of services provided by the government.

True

T/F Vendor analysis is a formal, systematic evaluation of current and potential vendors that focuses on a variety of dimensions including price, product quality, delivery service, product availability, and overall company reliability.

True

T/F When purchasing products, business customers are especially concerned about quality, service, price, and supplier relationships.

True

Inelastic demand simply means that

a price increase or decrease will not significantly change the demand for an item.

When business customers purchase products to be used directly or indirectly in the production of consumer goods and services, that demand for business products is

derived

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called

licensing

When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Starbucks is currently examining the ____ forces in its environmental analysis.

economic

Both Adidas and Brooks standardize many of their shoe models and colors worldwide, which is an example of

globalization

One of the guaranteed constants in the global business environment is

instability

When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in

limited exporting

The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product will be sold is known as

offshore outsourcing

Institutional markets are

organizations that seek nonbusiness goals.

The term dumping refers to the sale of

products sold in foreign countries at unfairly low prices.

Kia Motors purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of necessary characteristics, standards of quality, and other information that is expressed by Kia Motors. This set is called

specifications.

The United States Air Force purchases uniforms from a single supplier. For the last 25 years, the trousers purchased from this supplier have not changed and have been bought every six months, in multiple sizes. This example is called a

straight rebuy.

Franchising offers all the following benefits for franchisors except

the franchisee's revenue stream is fairly consistent because franchisors pay fixed fees and royalties.