Mkg 470 Test 3 sample questions

19. _____ are NOT one of the major participants in the integrated marketing communications process. A) Advertising agencies B) Advertisers or clients C) Media organizations D) Public relations firms E) New-product development firms

E) New-product development firms

1. Suppose the Japanese yen is weak in relation to the U.S. dollar. Rather than stressing price benefits, Japanese companies exporting to the U.S. should emphasize quality improvements and after sales service. True or False

False

4. When the yen reaches "parity" with the dollar, the exchange rate is ¥1=$1. True or False

False

2. In the mid-1990s, the U.S. dollar/British pound exchange rate was $1.60 to £1. By 2004, the pound had strengthened to $1.86 to £1. All other things being equal, this means that Jaguar dealers in the United States will be forced to raise prices. True or False

True

3. Hewlett-Packard is the world's leading marketer of inkjet printers. H-P's printers are priced very low and margins are slim; by contrast, the company enjoys healthy margins on sales of replacement ink cartridges. This approach is sometimes known as "razors and blades" pricing. True or False

True

5. In countries where high inflation is the rule, companies should make price adjustments to maintain operating margins. True or False

True

18. The primary objective of ______ is to develop a framework that will deliver the message to the target audience in the most efficient, cost-effective manner possible. a. media planning b. market segmentation c. target marketing d. organizational planning e. a communication hierarchy

a. media planning

20. In July 2001, the euro's value relative to the dollar was about €1.00 = $0.85. By July 2004, the euro had strengthened to €1.00 = $1.17. All other things being equal, if a European-based global company wants to preserve margins for goods exported to the U.S. market, the company should: a. raise prices in dollars b. switch to cost-based pricing c. adopt a policy of market penetration pricing d. reduce prices in dollars

a. raise prices in dollars

10. In the late 1980s, Gillette spent hundreds of millions of dollars developing the Sensor razor. Following Sensor's successful launch, Gillette immediately began working on the next-generation SensorExcel. At the end of the 1990s, Gillette rolled out the new MACH3 shaving system; replacement blade cartridges for the razor cost one-third more than those for the SensorExcel. Which generic strategy is evident here: a. cost leadership b. differentiation c. cost focus d. focused differentiation

b. differentiation

16. According to a recent study of European industrial exporters, companies that utilized independent distributors would be most likely to utilize: a. ethnocentric pricing b. polycentric pricing c. regiocentric pricing d. geocentric pricing

b. polycentric pricing

17. In 2001, Compaq Computer CEO Michael Capellas announced that his company would concentrate on selling software and services instead of hardware. Suppose WorldCorp passes up the chance to buy software from Compaq because it has been a long time customer of IBM. As described here, WorldCorp.'s decision is based on: a. economies of scale b. switching costs c. loose bricks d. access to distribution channels

b. switching costs

6. In 2001, Compaq Computer CEO Michael Capellas announced that his company would concentrate on selling software and services instead of hardware. Suppose WorldCorp passes up the chance to buy software from Compaq because it has been a long time customer of IBM. As described here, WorldCorp.'s decision is based on: a. economies of scale b. switching costs c. loose bricks d. access to distribution channels

b. switching costs

14. A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring: a. Is the price competitive in view of local market conditions? b. Does the price reflect the product's quality? c. Will authorities in export markets view the price as reasonable or exploitative? d. Does the price take antidumping laws into consideration? e. all of the above

c. Will authorities in export markets view the price as reasonable or exploitative?

13. Which of the following would NOT be taken into account by a company using an ethnocentric approach to pricing decisions: a. the possibility of implementing a penetration strategy b. profitable price points that could be tied to local sourcing as opposed to home-country sourcing c. integration of price with other marketing mix elements d. factors unique to individual country markets e. none of the above would be taken into account by a company using ethnocentric pricing

c. integration of price with other marketing mix elements

12. Which pricing strategy has the advantage of being simple to calculate but the disadvantage of ignoring demand and competitive conditions: a. gray marketing b. skimming c. penetration d. market holding e. cost based c. penetration

c. penetration

9. Recent trade data indicate that about 25 percent of U.S. merchandise exports represent shipments by American companies to their foreign affiliates and subsidiaries. This situation underscores the importance of __________ in global marketing. a. dumping b. gray marketing c. transfer pricing d. price skimming

c. transfer pricing

8. Which of the following would not be used by an exporter with a weak home country currency: a. Expand product line and add more costly features. b. Speed repatriation of foreign-earned income. c. Buy advertising, insurance, and other services in home country market. d. Shift sourcing outside home country market.

d. Shift sourcing outside home country market.

7. Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via: a. cost leadership b. differentiation c. cost focus d. focused differentiation

d. focused differentiation

15. Which media scheduling strategy would be most likely to be used by a marketer of dishwashing detergent? a. ratings b. share c. flighting d. pulsing e. continuous

e. continuous