International Marketing Exam 4
many American car buyers perceive Korean cars as: a. cheap b. high quality c. reliable d. durable e. good investment
a. cheap
Packaging aesthetics are particularly important to the: A) Indian. B) Chinese. C) Japanese. D) American. E) Russian.
C) Japanese.
Two automakers that have joined the race to bring low-cost cars to the emerging market are: A) Mercedes and Lexus. B) Toyota and Ford. C) Tata and Nissan. D) Tata and Toyota. E) Nissan and Toyota.
C) Tata and Nissan.
46) All import charges are assessed against the A) ex-works price. B) rigid cost-plus price. C) estimated future cost price D) flexible cost-plus price E) landed price
E) landed price
Guidelines which can assist managers in their effort to establish global brand leadership include all of the following except: A) create a compelling value proposition for customers. B) before taking brand overseas, select name, marks and symbols. C) make a process template available to all managers. D) assign specific responsibility for managing branding issues. E) make a process template for international consumers.
E) make a process template for international consumers.
Most new products fall into the category described as: A)added-value innovation. B)dynamically continuous innovation. C)discontinuous innovation. D)platform-based innovation. E)continuous innovation.
E)continuous innovation.
Inventory management is: A)determining what type of warehouse to manage. B)establishing an inventory channel. C)managing physical distribution of products. D)purchasing products. E)ensuring cost control.
E)ensuring cost control.
the direct exchange of goods and services between parties in lieu of monetary payment is known as : a. compensation trading b. counterpurchase c. barter d. offset e. switch trading
c. barter
packaging serves several important communication functions which include all of the following except: a. enhances brand experience b. emotional connection with consumer c. engages senses of consumer d. enhances functional benefits of product
d. enhances functional benefits of product
in _______, the Tupperware brand is associated with hip young women rather than traditional homemakers : -france -romania -russia -indonesia -china
france
Which of the following transportation modes ranks lowest in capability? A)truck B)railroad C)Internet D)air E)water
D)air
in the matrix based scheme for classifying global retailers, in which quadrant does IKEA fall between retailers - A -B -C -D -E
- A
In exchange for a pledge to carry at least 40 different Procter & Gamble products,participating stores receive regular visits from P&G representatives who tidy and arrange display areas.This motivational program is referred to as: A)"buy-in-bulk" store program. B)"high-frequency" store program. C)"mom-and-pop" store program. D)"shop operators" program. E)"golden store" program.
E)"golden store" program.
Which of the following shwould 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.
E)None of the above would be taken into account by a company using ethnocentric pricing.
The corporate development team at Virgin evaluates more than a dozen proposals each day from outside and within the company.When assessing new-product ideas,they look for all of the following except: A)synergy with existing Virgin products. B)pricing and return on investment. C)marketing opportunities. D)if the idea "uses or abuses" the Virgin brand. E)aesthetic attributes of competitors' products.
E)aesthetic attributes of competitors' products.
Which of the following is the largest retailer in the world in terms of annual sales according to the top five global retailers,2017? A)Tesco PLC B)Metro AG C)Aldi D)Carrefour E)no correct answer
E)no correct answer
Colgate's Total is a new toothpaste brand whose formulation,imagery,and consumer appeal were designed from the beginning to translate across national boundaries.Which strategy did Colgate use with Total? A)product-communications extension B)product extension-communications adaptation C)product adaptation-communications extension D)dual adaptation E)product innovation
E)product innovation
Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect? a. co-branding b. brand equity c. tiered branding d. brand extension e. brand image
a. co branding
examples of a "brand symbol" include all of the following except a. date of manufacture on coke cans b. mcdonalds golden arches c. non-word marks such as the nike swoosh d. three pronged Mercedes star
a. date of manufacture on coke cans
which of the following could hinder the success of products labeled "made in Bangladesh" or "made in Thailand" in export markets ? a. negative country-of-origin bias b. no possible quality/price positioning c. low acceptance of private brands d. high product saturation levels in global markets e. lack of promotion in global markets
a. negative country-of-origin bias
to provide positive proof that dumping has occurred in the United States, both ___ and injury must be demonstrated a. price discrimination b. black marketing c. market skimming d. gray marketing e. price fixing
a. price discrimination
the price of a six-pack of Heineken varies in price by as much as 50 percent depending on where it is sold due to all of the factors except: a. promotion b. transportation cost c. transaction cost d. competition
a. promotion
sales representatives in which Japanese industry cultivate close lose-her relations with customers by selling door-to-door: -groceries -soft drinks -consumer electronics -automobiles -pharmaceuticals
automobiles
"cost-based" , "market based" and "negotiated" are three approaches to: a. gray marketing b. transfer pricing c. counter trade d. dumping e. price skimming
b. transfer pricing
Generally speaking, which of the following statements is true concerning product attributes: a. Tangible product attributes are more important than intangible ones. b. Intangible product attributes are more important than tangible ones. c. Both tangible and intangible product attributes are important. d. Neither tangible nor intangible product attributes are important. e. A product has more attributes than tangible and intangible ones.
c. Both tangible and intangible product attributes are important.
Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation: a. companion products b. food products c. industrial products d. intangible products e. non-alcoholic drinks
c. industrial products
An express warranty is a written guarantee that assures the buyer that he or she: a. is getting what he or she desires b. will be able to contact the manufacturer whenever needed c. is getting what he or she paid for d. will be able to get express response if any defects are found
c. is getting what he or she paid for
the basic considerations for setting prices on goods that are traded across borders does not include a. do the foreign countries dumping laws pose a problem b. which type of discount does the firm offer it's international customers c. is it feasible to use home country's pricing
c. is it feasible to use home country's pricing
which one of the statements describing brand equity is not accurate? a. the stronger the relationship with the customer the greater the brand equity b. it represents the total value that accrues to a product as a result of a company's cumulative investments in the marketing of the brand c. it is a perception about a brand as reflected by brand associations that consumers hold in their memories
c. it is a perception about a brand as reflected by brand associations that consumers hold in their memories
the benefits of strong brands include all of the following except: a. larger margins b. greater loyalty c. less inelastic consumer response to price increases d. less vulnerability to marketing actions
c. less inelastic consumer response to price increases
Alfred Zeien, former chairman of Gillette, once noted that his company's Parker Pen unit does not have to develop a special model for Malaysia and Singapore because shoppers worldwide seek the same things when buying a gift that will serve the recipient as a status symbol. This insight relates to which level of Maslow's hierarchy of needs: a. physiological b. safety c. social d. esteem e. self-actualization
d. esteem
if company managers decide to set the export price for a particular product at an amount equivalent to the home-country price, they would be using which approach to pricing? a. geocentric b. polycentric c. Regiocentric d. ethnocentric
d. ethnocentric
When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging consumers to purchase Tag Heuer products from authorized dealers only, the company most likely attempting to combat the _______ problem. a. market holding b. price escalation c. market skimming d. gray market
d. gray market
if the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves the company should use the ________________ pricing strategy a. market holding b. cost based c. penetration d. skimming e. gray market
d. skimming
If a distributor's margins are based on the "landed" price of an import shipment, they will be based on: a. VAT b. transportation cost c. insurance cost d.ex-works price e. all of these
e. all of these
Which of the following is NOT one of the levels in the Asian version of Maslow's hierarchy: a. physiological b. safety c. affiliation d. admiration e. self respect
e. self respect
an important new tool for inventory management is -LEGO -EPOS -RFID -ODW -VUCA
RFID
which of the following is not in the top five of the world's most valuable brands according to 2017 rankings? a. Apple b. Amazon c. Coca Cola d. Microsoft e. Samsung
Samsung
A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring? -Is the price is competitive in view of local market conditions? -Does the price reflect the product's quality? -Will authorities in export markets view the price as reasonable o exploitative? -Does the price take anti-dumping laws into consideration? -all of the above
-all of the above
which of the following is an appropriate guideline for companies selecting independent distributors in international markets: -select cost distributors; dont let them select you -maintain control over marketing strategy from day one -all of these are appropriate
-all of these are appropriate
a logo can be all of the following except -trademark -brand symbol -brand equity -nonwaord mark
-brand equity
all the the following statements related to packaging of coca cola products are true except: -coca colas distinct contour bottle comes in both glass and plastic -in NA coke offers fridge pack which holds 12 cans -cokes packaging strategies are based on profitability in using different sized bottles
-cokes packaging strategies are based on profitability in using different sized bottles
Luxury good marketers found a new way to combat gray market imports into the United States. In March 1995, the U.S. Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume without permission. The distinctive packaging of the perfume is also protected by the U.S. Copyright law. The ruling implies that: -cosco and walmart will no longer be able to sell Givenchy -gray marketers will be able to market with authorization -cosco and walmart will be able to sell Givenchy with authorization
-cosco and walmart will be able to sell Givenchy with authorization
When Walmart stores first expanded into Mexico, management established a joint venture with the country's largest retailer. Judging by the approach Walmart used, management must have viewed Mexico as: -culturally distant and easy to enter -culturally distant and difficult to enter -culturally close and difficult to enter -culturally difficult and easy to enter -culturally close and easy to enter
-culturally distant and difficult to enter
which personal computer company began life as a b-to-b marketer and then began marketing direct to the home PC market: -dell -hewett packard -acer -compaq -sony
-dell
dollar stores are classified under: -hard discounters -convenience store -specialty retail -discount retailer -category killer
-discount retailer
if a company sells in export markets at prices that are below fair market value and that can harm producers in the export market that company may be accused of -perusing artificially high margins -using offsets -gray marketing -market skimming -dumping
-dumping
the availability of the product processed, prepared, in proper condition, and/or ready to use is referred to as: -product utility -place utility -information utility -form utility
-form utility
As a starting point, firms that comply with Western cost-accounting principles typically use the pricing method known as -cost plus pricing -price bundling -target costing -full absorption cost -export price costing
-full absorption cost
to motivate shopkeepers to stock more of P&G's products the company launched as : -retail store program -golden store program -sole distributor program -door to door program -hypermarket program
-golden store program
gray markets impose several costs or consequences on global marketers, which does not include: -free riding -damage to channel relationships -increased product demand -reputation and legal liability
-increased product demand
A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails to New York, where the containers are transferred to railroad cars and transported to the west coast. At the port of San Francisco, the containers are loaded onto another freighter bound for Japan. The term that best describes this situation is: -containerization -intermodal transportation -hype marketing -greenfield investment -inventory management
-intermodal transportation
Channel decisions are important to marketers mostly because: - commitments are flexible -relationships change with time -it is expensive to terminate -local laws do not protect agreements
-it is expensive to terminate
"Nakumatt" is a supermarket chain in: -korea -japan -india -indonesia -kenya
-kenya
Saks Fifth Avenue has ________ stores in the Middle East. -franchise -own-label focus -organic -licensed -joint venture
-licensed
which of the following categories best describes the approach of Britain's marks & Spencer to global retailing ? -few product categories , manufacturing brand focus -many product categories, own-label focus -few product categories, own label focus -many product categories, manufacturer brand focus -none of these
-many product categories, own-label focus
____ is derived from the price required to be competitive in the global marketplace -horizontal price -market based transfer price -vertical price -negotiated transfer price -cost-based transfer price
-market based transfer price
historically, many companies that used the ________________ for pricing were located in the Pacific Rim -skimming strategy -price ceiling strategy -cost based strategy -penetration strategy -transfer pricing strategy
-penetration strategy
Coca-Cola Company's global marketing leadership position is based in part on its ability to put Coke "within an arm's reach of desire"; in other words, it is the ability to create: -time utility -form utility -place utility -information utility -all of these
-place utility
in some developing countries, refrigerators have an important secondary purpose related to higher order needs which relates to -prestige -safety -competition -physiology -self respect
-prestige
the American marketing association defines a channel of distribution as a "organized network of agencies and institutions that in combination preform all the activities required to link __________ with users to accomplish the marketing task: -marketers -competitors -retailers -stores -producers
-producers
in less-developed countries the most important channel of distribution is: -door to door -public marketplace -wholesale marketplace -pyramid scheme -retail
-public marketplace
the following activities must be preformed when goods cross international boundaries except -receiving payments -packaging goods for export -transporting goods -obtaining currency permit
-receiving payments
Marketers in Gillette's Parker Pen subsidiary focused on upscale shoppers in Malaysia and Singapore. This is an example of - self esteem -social needs -self actualization -security
-security
which of the following would not be used by an exporter with a weak home-country currency? -speed repatriation of foreign earned income -shift sourcing outside home-country market -expand product line and add more costly features
-shift sourcing outside home-country market
pricing objectives in export market may vary depending all of the following factors except -the product design process -added cost associated with shipping goods -stability of prices globally -country specific competitive situation -products life cycle stage
-stability of prices globally
departmentalized, single story retail establishments that offer food and nonfood items, mostly on a self-serve basis are called: -hyper market -supermarket -specialty retailer -discount retailer
-supermarket
which one of the following statements is not accurate regarding alphabet inc. -the company uses ATAP which focuses on mobile applications -the company's semi secret research division is known as the Moonshoot Lab -Samsung and several other handset manufacturers use it's android smartphone op. system
-the company uses ATAP which focuses on mobile applications
all of the following must be performed when goods cross international boundaries except -obtaining currency permit -obtaining marine insurance and certificate of the policy -using the cost based pricing method
-using the cost based pricing method
__________ occurs when a manufacturer conspires or retailers to ensure certain retail prices are maintained -black marketing -horizontal price fixing -dumping -vertical price fixing -gray marketing
-vertical price fixing
which of the following does not qualify as a "category killer" -circuit city -home depot -victorias secret -ikea -toys r us
-victorias secret
Which of the following most accurately describes the relative length of consumer and industrial distribution channels? A)Consumer channels tend to be longer (consist of more intermediaries)than industrial channels. B)Industrial channels tend to be longer (consist of more intermediaries)than consumer channels. C)Both consumer and industrial channels tend to be long (consist of several intermediaries). D)Both consumer and industrial channels tend to be short (consist of few intermediaries). E)Consumer channels tend to be shorter (consist of few intermediaries)than the industrial channels.
A)Consumer channels tend to be longer (consist of more intermediaries)than industrial channels.
When a seller has agreed to deliver goods to a buyer at a place the buyer names in the country of import,with all costs,including duties paid,it is referred to as: A)DDP. B)FCA. C)FAS. D)FOB. E)CIF.
A)DDP
When introduced in the late 1970s,the VCR created new patterns of consumer behavior.For example,assuming the user could learn to set the timer,he or she could tape programs to watch at a later time.DVD,a playback only video system,was introduced in the late 1990s.DVD discs contain full-length movies with digital sound in a format that resembles conventional music compact discs.Which of the following most accurately describes the respective degree of newness of these two global products? A)The VCR is a discontinuous innovation;the DVD is a dynamically continuous innovation. B)The VCR is a dynamically continuous innovation;the DVD is a discontinuous innovation. C)The VCR and DVD are both dynamically continuous innovations. D)The VCR and DVD are both discontinuous innovations. E)The VCR and DVD are both continuous innovations.
A)The VCR is a discontinuous innovation;the DVD is a dynamically continuous innovation.
Comparing the traditional formulation of Maslow's hierarchy with the results of current research on the consumer needs and motivation in Asia,which of the following is correct? A)The lowest two levels of the hierarchy are the same in the traditional and Asian versions. B)The lowest three levels of the hierarchy are the same in the traditional and Asian versions. C)The lowest four levels of the hierarchy are the same in the traditional and Asian versions. D)The five levels in the traditional formulation apply equally in the West and in Asia. E)The highest levels of the hierarchy are the same in the traditional and Asian versions.
A)The lowest two levels of the hierarchy are the same in the traditional and Asian versions.
Which of the following forms of countertrade does not require use of money or credit between parties? A)barter B)switch trading C)offset D)compensation trading E)none of the above
A)barter
Maslow's hierarchy is applicable to global marketing because it can help explain how: A)basic human needs can drive the development of global products. B)the top of the Asian hierarchy is self-respect. C)status needs in different countries can only be fulfilled with localized products. D)"luxury badging" is irrelevant to companies marketing in Asia. E)Asians differ from Westerners in their basic physiological needs.
A)basic human needs can drive the development of global products.
"Containerization" refers to a company's: A)designing attractive product packaging that will help a product "sell itself." B)use of computer technology to keep a lid on ("contain")distribution costs. C)use of refrigerated warehouses for perishable products. D)use of standard-sized shipping boxes that can be transported in various ways. E)method of shipment by using oversized steel containers to fit different commodities.
A)designing attractive product packaging that will help a product "sell itself."
Suppose a company selling in various country markets makes statements such as "we know what the customer wants,and he or she will have to pay for it." This is an indication of a(n)________ approach to setting prices. A)ethnocentric B)polycentric C)regiocentric D)geocentric E)adaptation
A)ethnocentric
Which of the following correctly characterizes the retailing strategy of Benetton,IKEA,and Gap? A)few product categories,own-label focus B)few product categories,manufacturer brand focus C)many product categories,own-label focus D)many product categories,manufacturer brand focus E)none of the above
A)few product categories,own-label focus
A French winery packs its wine in a 40-foot container that is trucked to a port and then loaded onto an ocean-going vessel.This is an example of: A)intermodal transportation. B)inventory control. C)hypermarketing. D)"cherry picking" a product. E)containerization.
A)intermodal transportation.
All of the listed advantages are for "extension or ethnocentric" pricing strategy except: A)it does not respond to the competitive and market conditions of each national market. B)it calls for the per-unit price of an item to be the same all over the world. C)it is extremely simple since it does not require information on market condition. D)it does not require competitive conditions for implementation. E)the importer must absorb freight and import duties.
A)it does not respond to the competitive and market conditions of each national market.
Generally speaking,international trade results in: A)lower prices for goods. B)higher prices for goods. C)stabilizing prices. D)high inflation rate. E)low inflation rate.
A)lower prices for goods.
"Organized retail" is a term used to describe: A)modern chain stores. B)grocery stores. C)local retail chains. D)supermarkets. E)hypermarkets.
A)modern chain stores.
In July 2001,the euro's value relative to the dollar was about €1.00 = $0.85.By November 2009,the euro had strengthened to €1.00 = $1.48.In February 2012,one euro was equal to $1.33,in August 2015 €1.00 = $0.99 and in September 09,2018 €1.00 = $0.87.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. E)use skimming pricing.
A)raise prices in dollars.
British entrepreneur Richard Branson has built a global business empire by: A)relying on brand extension. B)being the first to use smart cards in major markets. C)developing local brands. D)avoiding consumer businesses with established leaders. E)restricting the "Virgin" name only to airlines.
A)relying on brand extension.
The marketers of Corona beer achieved great success in the U.S.market by: A)retaining the bottle design originally used in Mexico. B)hiring Hispanic movie stars as endorsers. C)distributing Corona in returnable bottles. D)changing the brewing recipe to conform to American palates. E)having the label in Spanish.
A)retaining the bottle design originally used in Mexico.
Prior to 2017,H&M was growing at a torrid pace,however,several changes took place which are represented by all of the following statements except: A)revenue growth was driven by store openings and the company did not open new stores. B)profits have been stagnant since discount retailers have lower prices. C)online competitors are putting a lot of pressure on H&M sales. D)customers are lured away by Britain's Asos and Germany's Zalando free shipping offers. E)H&M had a successful business model,which did not change with market conditions.
A)revenue growth was driven by store openings and the company did not open new stores.
A variety of environmental factors have combined to push retailers out of their home markets in search of opportunities around the globe.All of the following reasons are responsible for such a move except: A)saturation of the home-country market. B)a recession in the home-country. C)strict regulation on store development. D)high operating costs. E)high population growth.
A)saturation of the home-country market.
When Sony introduced the first consumer VCRs in the 1970s,the retail price exceeded $1,000.Within a few years,the price dropped well below $500.This is an example of: A)skimming strategy. B)penetration strategy. C)cost-based strategy. D)price ceiling strategy. E)transfer pricing strategy.
A)skimming strategy.
Coca-Cola's distinctive contour bottle,which is sold in many countries,illustrates the point that packaging: A)strategies can vary by country and region. B)helps in storing large sizes in refrigerators. C)strategies do not change by country and region. D)appeals only to Asian consumers. E)helps in brand identification.
A)strategies can vary by country and region.
When one of the parties to a barter transaction is not willing to accept the goods included in the transaction,that party is likely to utilize the services of a: A)switch trader. B)Foreign Trade Organization. C)Foreign Sales Corporation. D)Mittelstand owner. E)broker.
A)switch trader.
Despite the high expenses associated with operating elegant stores and purchasing advertising space in upscale magazines, the premium retail prices that luxury goods like Louis Vuitton command translate into handsome profits. The Louis Vuitton brand alone accounts for 60% of LVMH's operating profit. On the other hand, Louis Vuitton spends $10 million annually battling: A) EU regulations. B) counterfeiters in countries such as Turkey, South Korea, & Italy. C) competitors in European countries. D) suppliers of needed materials. E) export freight and taxes.
B) counterfeiters in countries such as Turkey, South Korea, & Italy.
The scandal about finding horse DNA in frozen beef burgers sold in supermarkets in Ireland became a big issue. However, the fact remains that 60,000 tons of horse meat were sold in Europe in 2012. Other facts about horse meat include all of the following except: A) in Europe, horse meat is available from a variety of suppliers. B) it is legal to produce horse meat in the United States. C) horses are shipped from the United States to Mexico and Canada for slaughter. D) Italy imports 50 million pounds of horse meat annually from Ireland. E) horse meat is lean and high in iron and other nutrients.
B) it is legal to produce horse meat in the United States.
Ben & Jerry's ice cream package design was changed in the UK since British consumers perceived the colors differently than US consumers. This is an example of: A) product-communications extension. B) product extension-communications adaptation. C) product adaptation-communications extension. D) product-communication adaptation. E) product invention.
B) product extension-communications adaptation.
Mexican customers generally carry small coins. To keep prices of shampoo and detergent below 11 or 12 pesos, Procter & Gamble is using which method of pricing? A) price bundling B) target costing C) cost-plus approach D) export price costing E) cost-based pricing
B) target costing
A distributor with good contacts may appear to be the obvious choice in terms of generating quick sales and revenues but may not be the best one.Which of the guidelines for companies selecting independent distributors is this statement referring to? A)Select distributors;don't let them select you. B)Look for distributors capable of developing markets. C)Give local distributors control over marketing strategy. D)Treat local distributors as long-term partners. E)From the start maintain control.
B)Look for distributors capable of developing markets.
What solution did Andersen Consulting provide to the Moscow Bread Company to solve the problem of stale bread? A)Deliver the bread frozen. B)Package the bread in plastic bags. C)Convert to a paperless office to cut red tape. D)Deliver the bread sliced rather than in whole loaf form. E)Use paper packaging for bread.
B)Package the bread in plastic bags
Packaging is an important consideration for products that are shipped to markets worldwide.Which of the following statements related to packaging is not true? A)Nestlé's worldwide network of packaging teams provide improvement suggestions on a quarterly basis. B)The Japanese prefer plain soft colors on their packages. C)The Aquafresh Ultimate tube was designed to stand vertically. D)Coca-Cola had contour bottles in both glass and plastic versions in many countries. E)Nestlé asked suppliers to find a glue to make the clicking sound louder when a tube of Smarties brand chocolate candies are unwrapped.
B)The Japanese prefer plain soft colors on their packages.
If a company's home currency strengthens,it is: A)a favorable turn of events for the typical exporter. B)an unfavorable turn of events for the typical exporter. C)a favorable turn of events since the revenues increase in home currency. D)an unfavorable turn of events for exporter's home country. E)neither favorable nor unfavorable turn of events for the typical exporter.
B)an unfavorable turn of events for the typical exporter.
One of the highest profile companies,PepsiCo,which has done business in the Soviet and post-Soviet market for decades,has used this form of countertrade: A)switch trading. B)barter. C)offset. D)compensation trading. E)counterpurchase.
B)barter.
Peer-to-peer (p-to-p)marketing uses distribution channels through: A)business-to-consumers. B)electronic commerce. C)business-to-business. D)door-to-door. E)manufacturer-to-wholesalers.
B)electronic commerce.
Which of the following correctly characterizes the retailing strategy shared by Virgin Megastores? A)few product categories,own-label focus B)few product categories,manufacturer brand focus C)many product categories,own-label focus D)many product categories,manufacturer brand focus E)none of the above
B)few product categories,manufacturer brand focus
In Chinese markets,Nike had a problem using the "Just Do It" attitude which was found not to be appropriate.Finally,Nike decided to use Chinese athletes in their promotion.This type of adaptation was needed due to: A)the Chinese do not wear running shoes. B)ingrained Chinese values which respect authority. C)Chinese athletes use Nike shoes. D)"Just do it" in Chinese has a negative connotation. E)parents do not want their children to see such ads.
B)ingrained Chinese values which respect authority.
As outlined by branding expert Kevin Lane Keller,the benefits of strong brand equity include all of the following except: A)greater loyalty. B)more vulnerability to marketing actions. C)less vulnerability to marketing crises. D)more inelastic consumer response to price increases. E)more elastic consumer response to price decreases.
B)more vulnerability to marketing actions.
Order processing,warehousing,and inventory management are all functions pertaining to: A)a polycentric orientation. B)physical distribution and logistics. C)sales promotion. D)personal selling. E)chain acquisition.
B)physical distribution and logistics.
Parallel importing occurs when companies employ a(n)________ multinational pricing policy that calls for setting different prices in different country markets. A)ethnocentric B)polycentric C)regiocentric D)geocentric E)extension
B)polycentric
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. E)extension pricing.
B)polycentric pricing.
Targeting the 300 million farmers in India who still use plows harnessed to oxen,John Deere engineers created a line of relatively inexpensive,no-frills tractors.The Deere team then realized that the same equipment could be marketed to hobby farmers and acreage owners in the United States,a segment that they had previously overlooked.This is an example of ________ strategy. A)product-communications extension B)product extension-communications adaptation C)product adaptation-communications extension D)dual adaptation E)product invention
B)product extension-communications adaptation
Before Ben & Jerry's launched their ice cream in the United Kingdom,the company conducted extensive research to determine whether the package design was appropriate.The research indicated that British consumers perceived the colors differently than U.S.consumers.The package design was changed accordingly.This type of strategy can be defined as: A)product-communications extension. B)product extension-communications adaptation. C)product adaptation-communications extension. D)product-communication adaptation. E)product invention.
B)product extension-communications adaptation.
To promote its Centrino wireless chip,Intel launched a global ad campaign that features different combinations of celebrities.These celebrities were chosen because they are widely recognized in the key world markets.This type of strategy is referred to as: A)product-communications extension. B)product extension-communications adaptation. C)product adaptation-communications extension. D)product-communication adaptation. E)product invention.
B)product extension-communications adaptation.
By definition,________ feature a narrow but deep merchandise mix and high levels of service. A)department stores B)specialty retailers C)supermarkets D)convenience stores E)discount stores
B)specialty retailers
When a company uses intermodal or multimodal transportation,it is: A)using multiple channels. B)using land and water shipping. C)shipping via more than one railroad line. D)using the services of both UPS and FedEx. E)using different size containers for shipment.
B)using land and water shipping.
Intel inside campaign promoting both the Intel Corporation and its Pentium-brand processors in conjunction with advertising for various brands of personal computers is an example of: A) brand equity. B) brand symbol. C) co-branding. D) brand extension. E) brand loyalty.
C) co-branding.
Which type of countertrade arrangement is required by governments seeking to reduce the budgetary impact of expenditures for defense or telecommunications? A) barter B) switch trading C) offset D) compensation trading E) none of the above
C) offset
Which of the following is not an appropriate guideline for companies selecting independent distributors in international markets? A)Select distributors;don't let them select you. B)Look for distributors capable of developing markets. C)Give local distributors control over marketing strategy. D)Treat local distributors as long-term partners. E)All of the above are appropriate guidelines.
C)Give local distributors control over marketing strategy.
The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home electronic entertainment.For example,assuming the user could learn to set the timer,he or she could tape programs to watch at a later time.The VCR's popularity also gave rise to an entirely new retailing concept,the video rental store.What type of innovation did the consumer VCR represent? A)a continuous innovation B)a dynamically continuous innovation C)a discontinuous innovation D)a comparative innovation E)none of the above
C)a discontinuous innovation
The formulation,imagery,and consumer appeal of Colgate's Total brand toothpaste were designed to translate across national boundaries.This new global brand represents which type of product innovation? A)discontinuous innovation B)dynamically continuous innovation C)continuous innovation D)comparative innovation E)dynamically discontinuous innovation
C)continuous innovation
The entry global retailing market expansion strategies include all of the following except: A)franchise. B)chain acquisition. C)departmental stores. D)joint ventures. E)organic.
C)departmental stores.
Which of the following does not contribute to price escalation in global marketing? A)shipping and insurance charges B)value added taxes (VAT) C)different Incoterms as incentives D)duties and tariffs E)fluctuating exchange rates
C)different Incoterms as incentives
By definition,a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns. A)continuous innovation B)dynamically continuous innovation C)discontinuous innovation D)platform-based innovation E)new and improved innovation
C)discontinuous innovation
Some wine importers insist on shipping their wines in refrigerated containers to protect the wines from being damaged by high temperatures.Such importers are creating which kind of utility? A)place utility B)time utility C)form utility D)information utility E)worker utility
C)form utility
Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter? A)organic growth B)chain acquisition C)franchise D)joint venture E)own-label focus
C)franchise
Givenchy and Christian Dior's Dune fragrance are two of the luxury perfume brands that are sometimes diverted from authorized channels for sale at mass-retail outlets.This practice is referred to as: A)barter. B)switch trading. C)gray market. D)offset. E)dumping.
C)gray market.
The unauthorized distribution of trademarked goods to exploit price differentials in world markets is known as: A)market skimming. B)black marketing. C)gray marketing. D)dumping. E)licensing.
C)gray marketing.
When Walmart entered the German market,________ were already entrenched. A)specialty retailers B)discount retailers C)hard discounters D)hypermarkets E)supermarkets
C)hard discounters
The retail environment in developing countries presents challenges for marketing nonperishable items.In Mexico,Proctor & Gamble,Unilever,Colgate-Palmolive,and other global consumer product companies use ________ for their products. A)door-to-door selling B)buy-in-bulk selling C)mom-and-pop stores D)franchised stores E)manufacturer-owned stores
C)mom-and-pop stores
The most general term for the global phenomenon involving reciprocal business interactions between parties in various countries is known as: A)switch trading. B)barter. C)offset. D)compensation trading. E)countertrade.
C)offset.
A market ________ pricing strategy calls for setting price levels that are low enough to quickly build market share. A)gray B)skimming C)penetration D)holding E)cost-based
C)penetration
When a corporate name such as Sony is combined with a product brand name such as Walkman,the brand category is referred to as: A)brand equity. B)brand symbol. C)tiered brand. D)co-brand. E)brand loyalty.
C)tiered brand.
Joseph Quinlan,chief marketing strategist at Bank of America,estimated 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 E)price fixing
C)transfer pricing
________ can also be thought of as an asset representing the value created by the relationship between the brand and its customers over time. A) Brand extensions B) Co-branding C) Brand image D) Brand equity E) Brand loyalty
D) Brand equity
Regulators in different countries have proposed various regulations for product labeling. All of the following statements pertaining to such regulations are true except: A) mandatory health warnings on tobacco products are required in most countries. B) the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point. C) in 2008, the United States enacted a country of origin labeling (COOL) law. D) the use of terms "light" and "natural" are allowed on labels only in the United States. E) McDonald's is posting nutrition information on all food packaging and wrappers in selected markets.
D) the use of terms "light" and "natural" are allowed on labels only in the United States.
Which of the following is true about proper use of the term "countertrade"? A)The term "countertrade" is interchangeable with "offsets." B)The term "countertrade" is interchangeable with "barter." C)The term "countertrade" is interchangeable with "counterpurchase." D)"Countertrade" is a term that refers to several different types of business transactions. E)The term "countertrade" is interchangeable with "dumping."
D)"Countertrade" is a term that refers to several different types of business transactions.
________ represents the cumulative added value of a company's investment in the marketing of a brand over time. A)A brand extension B)Co-branding C)Brand image D)Brand equity E)Brand loyalty
D)Brand equity
The country which has the highest rates of value added tax (VAT)in the European Union is: A)Germany. B)Italy. C)France. D)Denmark. E)Switzerland.
D)Denmark.
A commodity raw material that comes from Africa,is refined in Asia,is shipped to South America for finishing,and finally is transported to the Middle East and then sold around the world mimics products marketed by: A)Exxon. B)McDonald's. C)Caterpillar. D)IKEA. E)Sears.
D)IKEA.
Apple learned an important lesson about the potential drawbacks of ethnocentric pricing in China.All of the following statements relate to this lesson except: A)in China,many smartphone apps give users the ability to "tip" each other by sending yuan as an acknowledgment of user-created content. B)Apple's policy is to take 30 percent of fees generated by apps,and it initially applied this policy in China. C)in China,"tipping" is considered to be an in-app purchase. D)Tencent Holding's popular WeChat app in China charges for tipping. E)in response to complaints about the pricing,Apple changed its policy.
D)Tencent Holding's popular WeChat app in China charges for tipping.
Global marketers must understand the importance of visual aesthetics embodied in the color or shape of a product,label,or package.Which of the following statements is not true regarding the use of color in selected countries? A)The yellow color on Caterpillar's earthmoving equipment is acceptable worldwide. B)Packaging aesthetics are particularly important to the Japanese. C)The color white is associated with death and bad luck in some Asian countries. D)The red Marlboro color had to be changed in some Asian countries. E)The Chinese consider the color red to be lucky.
D)The red Marlboro color had to be changed in some Asian countries.
Which of the following consumer products companies experienced a major product failure in Europe due to inadequate test marketing? A)Procter & Gamble B)Colgate C)Kao D)Unilever E)Seagram
D)Unilever
When companies adopt an indirect involvement channel they have all of the following activities except: A)utilize independent agents. B)use distributors. C)utilize retailers. D)establish their own sales force. E)utilize those who have a network of stores.
D)establish their own sales force.
Nintendo was fined nearly $150 million after it was determined that the video game company had colluded with European distributors.The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices.This is a classic example of: A)price skimming. B)market penetration. C)price bundling. D)price fixing. E)transfer pricing.
D)price fixing.
Campbell's has been marketing soup in Japan for more than 40 years.Early on,Japanese consumers were not receptive to ads featuring the Campbell Kids and the "M'm M'm Good" slogan.This compelled Campbell's to develop ads featuring a talking soup can known as "Mr.Campbell." Campbell's also developed soup varieties for Japan with fish as the main protein source and spices that reflect local preferences.As described here,which of the following strategies has Campbell's used in Japan? A)product-communications extension B)product extension-communications adaptation C)product adaptation-communications extension D)product-communication adaptation E)product invention
D)product-communication adaptation
In India,consumers do not like to be locked in to long-term contracts,and Apple distributes its iPhone exclusively through stores operated by Airtel,an Indian carrier,and Vodaphone.This pricing is an example of: A)gray market. B)price bundling. C)market skimming. D)razors and blades. E)cost-based.
D)razors and blades.
all of the following basic consideration questions are important for those whos responsibility includes setting prices on goods that cross borders except: - does the local market use target costing -do the foreign countries dumping laws pose a problem -should prices differ with the market segment -does the price reflect the products quality
- does the local market use target costing
which of the following statements is not an example of local products or brands -coca cola developed several branded drink products for Japan -BMW uses the ultimate driving machine slogan in india -coca cola markets Kinley brand bottled water in india
-BMW uses the ultimate driving machine slogan in india