Marketing Management and Strategy Exam 2

British grocer Tesco entered into the US. market in 2007. By 2013, Tesco all it US stores after losing nearly $2 billion. Industry analysts suggest that Tesco failed to understand the market; it selected the wrong locations, stocked the wrong assortment of products, and failed to create a shopping experience capable of retaining the US consumer. Which of the following best characterizes Tesco's market research failure? (A) Tesco failed to understand the norms and customs of the US consumer (B) Tesco failed to account for the geographic proximity between the US and Great Britain (C) Tesco failed to realize the economics of the American market (D) Tesco failed to evaluate the level of competition (E) Tesco failed to understand the barriers of entry

A. Tesco failed to understand the norms and customs of the US consumer

The three main categories of influences that affect the consumer decision-making process are (A) internal, situational, and social (B) physical, emotional, and behavioral (C) environmental, personal, and sociocultural (D) environmental, familial, and sociocultural (E) sociocultural, behavioral, and external

A. internal, situational, and social

Which of the following is the first step firm should take when deciding whether or not to go global? A) Develop marketing mix strategies for foreign markets B) Analyze whether it is in the firms best interest to focus on the domestic market or to expand to international markets C) Identify potential partners in international markets D) Select a market-entry strategy that fits the firm's desired level of commitment E) Identify the most attractive global markets for the firms products

B. Analyze whether it is in the firm's best interest to focus on the domestic market or to expand to international markets.

When a customer feels regret after purchasing a product, she is experiencing______. (A) An operant reaction (B) Cognitive Dissonance (C) Affect (D) A conditioned response (E) A heuristic

B. Cognitive Dissonance

Which one of the following is a reason that a company might NOT consider going global? (A) Potential cost savings through realized economies of sale (B) Consolidation of the industry (C) Domestic market saturation (D) Ability to leverage a common brand name

B. Consolidation of the industry

When using _____ a consumer exerts little effort in making a purchase decision. (A) Limited Problem Solving (B) Habitual Decision Making (C) Extended Problem Solving (D) Cognitive Dissonance (E) Compensatory Decision rules

B. Habitual Decision Making

The first phase of new product development is _____. (A) Product Concept Development (B) Idea generation (C) Problem Recognition (D) Business Analysis (E) Product Concept Screening

B. Idea generation

A growth strategy that attracts users of competitive brands is called a _______ strategy. (A) Diversification (B) Market Penetration (C) Product Penetration (D) Product Development (E) Market Development

B. Market Penetration

Which of the following refers to the extent to which a person devotes mental-processing activity to a particular stimulus? (A) Exposure (B) Interpretation (C) Attention (D) Affect (E) Cognition

C. Attention

Whenever a product line or a product family is extended, there is a risk of _____, which occurs when sales of an existing brand decline as the firm's current customers switch to the new product. (A) Brand Inequality (B) Brand Equality (C) Cannibalization (D) Product Line Contraction (E) Disintermediation

C. Cannibalization

The _____ outlines how, when, and where the firm will make the product available to targeted customers. (A) Pricing Strategy (B) Target Market Strategy (C) Distribution Strategy (D) Product Strategy (E) Promotional Strategy

C. Distribution Strategy

A business plan _____. (A) Is another name for a marketing plan (B) Is another name for a SWOT analysis (C) Includes the decisions that guide the entire organization or its business units (D) Is a document that outlines marketing strategies step by step (E) Identifies how a company will measure and control specific marketing strategies

C. Includes the decisions that guide the entire organization or its business units

A donut shop chain opened its first store outside of North America with the opening of a shop in Australia. The donut company used a _______ strategy. (A) Market Penetration (B) Cash Cow (C) Market Development (D) Product Penetration (E) Product Development

C. Market Development

The sales peak typically occurs during which stage of the product life cycle? (A) Leveling (B) Development (C) Maturity (D) Introduction (E) Youth

C. Maturity

Which of the following quantifies how an investment in marketing impacts the firm's success, financially and otherwise? (A) A PERT Chart (B) Portfolio Analysis (C) Return on marketing investment (D) A Gantt Chart (E) A SWOT Analysis

C. Return on marketing investment

Because of its low corporate tax rate relative to the United States, Ireland has become a popular manufacturing location for U.S. pharmaceutical companies. Products are manufactured in Ireland and then shipped globally and priced accordingly. A practice that enables a company to sell products within its own international business units and recognize its profits in a lower-tax country is commonly referred to as: (A) Ethnocentric Pricing (B) Gray Marketing (C) Transfer Pricing (D) Export Accounting

C. Transfer Pricing

If a brand is truly global, which of the following brand variables is typically the same across geographic a. Positioning b. Product name and features c. Promotion (A) B only (B) A and B only (C) A and C only (D) A, B, and C

D. A,B, and C

When introducing a new product globally, which of the following explains why packaging decisions are integral to the development of global strategy? (A) Labeling must comply with local requirements (B) Perception of packaging aesthetics can vary significantly across borders (C) The costs associated with packaging material vary across borders (D) All of the answers are correct

D. All of the answers are correct

The product alternatives a customer seriously considers are referred to as the _______. (A) Determinant Set (B) Evaluative Criteria (C) Evoked Set (D) Consideration Set (E) Compensatory Set

D. Consideration Set

Which of the following is an advantage of using single sourcing? A) The buyer and seller agree to be each other's customers. (B) Buyers have other suppliers to fall back on if one supplier fails. (C) Buyers are less reliant on one firm to deliver the needed goods without interruption. (D) Consistency of quality of materials input into the product process is greater. (E) Suppliers are more likely to remain cost-competitive.

D. Consistency of quality of materials input into the product process is greater.

_______ strategies emphasize both new products and new markets to achieve growth. (A) Market Penetration (B) Cash Cow (C) Product Development (D) Diversification (E) Market Development

D. Diversification

When Tom wanted to buy a new gas grill, he searched for grills on the internet. He was able to gather information on grills and learn what features were available. Tom used the internet during the ____ stage of his purchase decision. (A) Problem Recognition (B) Evaluation of alternatives (C) Product Choice (D) Information Search (E) Problem Screening

D. Information Search

In the British Isles, Guinness brewery was given the right to produce and market Budweiser beer by Anheuser-Busch, its U.S. brand owner. Because Guinness pays Anheuser-Busch royalties for the use of its brand, this is an example of a(n) A) Marketing mix alliance B) Direct Investment by Anheuser-Bush C) Export Merchant D) Licensing Agreement E) Joint Venture

D. Licensing Agreement

Some consumers worry that they will be affected by marketing messages without even knowing it. They are concerned about _____ advertising. (A) Rich Media (B) Gamification (C) Perceptual (D) Subliminal (E) Sensory

D. Subliminal

The business analysis for a new product begins with _______. (A) Problem Recognition (B) Identifying the distribution channel for the product (C) Idea Generation (D) Perceptual Mapping (E) Assessing how the new product will fit into a firm's total product mix

E. Assessing how the new product will fit into a firm's total product mix

A consumer who is armed with information and is narrowing down his choices by comparing the pros and cons of each remaining option is in the ____step of the consumer decision-making process. (A) Postpurchase Evaluation (B) Information Search (C) Product Choice (D) Problem Recognition (E) Evaluation of Alternatives

E. Evaluation of alternatives

The _____ for Twitter is "To give everyone the power to create and share ideas and information instantly, without barriers." (A) Portfolio Analysis (B) Market Penetration Strategy (C) Diversification Strategy (D) Operational Plan (E) Mission Statement

E. Mission Statement

The greater the _____ of a purchase, the higher the consumer's level of involvement will be . (A) Psychographics (B) Heuristics (C) Targeting (D) Cognitive Dissonance (E) Perceived Risk

E. Perceived Risk

______ refers to a company's estimate of the number of consumers who are willing and able to pay for a product. (A) The market segment (B) Return on marketing investment (C) The mass market (D) Market share (E) Potential Demand

E. Potential Demand

To successfully market the Corvette to the European market, General Motors had to make the automobile shorter and narrower. GM chose to use a ____ strategy with the Corvette. (A) Product Invention (B) Straight Extension (C) Standardization (D) Backward Invention (E) Product Adaptation

E. Product Adaptation

Edy's is a brand of high quality ice cream. Edy's introduced Godiva ice cream and Starbucks ice cream to tempt ice cream lovers to eat even more ice cream. Edy's used a ______ strategy. (A) Market Penetration (B) Market Development (C) Diversification (D) Product Penetration (E) Product Development

E. Product Development

Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to hunt, hike, and bike ride. Its long-term plans include the development of lenses that, in addition to protecting users from UV rays, will also have effective water-sheeting action to reduce lens spotting. This new feature will be valuable to people who fish. In terms of a SWOT analysis, the company believes it can use the _____ of its reputation as a sunglasses manufacturer for a specialized market in combination with its current manufacturing facilities and labor force to enter this new market. (A) Opportunity (B) Trend (C) Weight (D) Mission (E) Strength

E. Strength

The product life cycle concept can be applied by marketers as a useful framework for describing how ___. (A) a market responds to a product overtime B) a brand gains a dominant position in the market (C) to develop marketing strategies (D) to forecast product performance E) product ideas are developed

A. A market responds to a product over time

In analyzing a potential new foreign market opportunity, a small beverage company has discovered that local distribution is tightly controlled by one or two firms. In this situation, what would likely be the best market-entry strategy for the beverage company? (A) Direct Export (B) Foreign Direct Investment (C) Franchising (D) Contract Manufacturing

A. Direct Export

The Tim Hortons chain accounts for more than half of all the donut and coffee stores in Canada. The chain's red-and-white store banners are fixtures in many Canadian communities. In 2001, the first Tim Hortons appeared in the United States through a contractual agreement allowing an independent operation to adopt Tim Horton's entire way of doing buisness. This agreement is a (n) (A) Franchise (B) Joint Venture (C) Export Merchant (D) Strategic Alliance (E) Direct Investment

A. Franchise

Which global strategy dominates the marketing field today? (A) Globalization (B) Standardization (C) Customization (D) Convergence of consumer tastes

A. Globalization

To enter the European market, Starbucks joined in a cooperative venture with Bon Appetit Group A.G. in Switzerland. Bon Appetit has the recognized brand name, and Starbucks has the product and the expertise to run coffeehouses. This is an example of a(n) ________. (A) Strategic Alliance (B) Franchise Agreement (C) Backward Invention (D) Expropriation Agreement (E) Direct Investment

A. Strategic Alliance