INT'L MKT FINAL EXAM
Which type of pricing strategy is typically used by HP for its laser printers? A. Captive pricing B. Export pricing C. Cost-based pricing D. Market skimming E. Market penetration
A
Worldwide, which of the following is the number one advertising medium? A. Television B. Billboards C. Internet D. Radio E. Newspaper
A
According to data published by Advertising Age (2014), which of the following is the largest global advertising organization based on worldwide revenues? A. WPP Group (London) B. Publicis Groupe (Paris) C. Dentsu Inc. (Tokyo) D. Omnicom Group (New York) E. Interpublic Group (New York)
A
All the following activities must be performed when goods cross international boundaries except _______________. A. using cost-based pricing method B. packaging the goods for export C. obtaining currency permit, if required D. arranging for ocean freight and preparation E. obtaining marine insurance and certificate of the policy
A
An express warranty is a written guarantee that assures buyers _________. A. that they are getting what they have paid for. B. that they can get express response if any defects are found. C. that they can contact the manufacturer whenever needed. D. that they have a limited time for filling out information required by the manufacturer. E. that they are getting what they wanted.
A
Cost-based, market-based, and negotiated are three approaches to ________. A. transfer pricing B. dumping C. penetration pricing D. gray marketing E. market skimming
A
Global marketers must understand the importance of ______, which are embodied in the color or shape of a product, label, or package. A. visual aesthetics B. tangible product attributes C. product types D. intangible product attributes E. buyer orientation
A
Gray markets flourish when ________. A. a product is in short supply B. there is low margin on goods C. supply exceeds demand D. a penetration pricing strategy is used E. ethnocentric pricing policies are used
A
In an advertising agency, the individual responsible for the overall look of the ad is the ________. A. art director B. graphic artist C. media specialist D. copywriter E. creative director
A
Joseph Quinlan, chief marketing strategist at Bank of America, estimated that approximately 25% of U.S. merchandise exports represent shipments by American companies to their own foreign affiliates and subsidiaries. This situation underscores the importance of ______ in global marketing. A. transfer pricing B. dumping C. penetration pricing D. gray marketing E. market skimming
A
Knowledge of which of the following aspects of cultural knowledge is essential for creative advertising? A. Symbolism B. Music C. Religion D. Linguistics E. Literature
A
Left to their own devices, middlemen may seek to maximize their own profit rather than that of the manufacturer. These agents sometimes engage in ___________, the practice of accepting orders only from manufacturers with established demand for certain products and brands. A. cherry picking B. selective distribution C. bribing tactics D. competitive targeting E. specifically targeted consumers
A
Suppose a company selling in various country markets makes statements such as "We know what customers want, and they will have to pay for it." This is an indication of a(n) _______ approach to setting prices. A. ethnocentric B. adaptation pricing C. geocentric D. polycentric E. arbitrage
A
The internal motivation driving demand for status-oriented products is based on which of the following levels of Maslow's needs hierarchy? A. Self-esteem B. Self-actualization C. Social D. Safety E. Physiological
A
The status associated with product ownership, a manufacturer's service commitment, and a brand's overall reputation all represent ______. A. intangible product attributes B. visual aesthetics C. product types D. buyer orientation E. tangible product attributes
A
The target costing process begins with market mapping and product definition and positioning. The marketing team must complete several steps. Which of the following is NOT a step of this process? A. Purchase the inventory well in advance to make significant cost-savings. B. Obey the cardinal rule: If the design team can't meet the targets, the product should not be launched. C. Allocate target costs to the product's various functions. Calculate the gap between the target cost and the estimated actual production cost. D. Compute overall target costs with the aim of ensuring the company's future profitability. E. Determine the segment(s) to be targeted, as well as the prices that customers in the segment will be willing to pay.
A
The unauthorized distribution of trademarked goods sold by unauthorized persons or organizations in world markets is known as ______________. A. gray marketing B. market skimming C. black marketing D. licensing E. dumping
A
What is the "law of one price"? A. The law of one price states that in a truly global market all customers in the market could get the best product available for the best price. B. The law of one price states that a product should never be sold for one price. C. The law of one price states that one price should be set for a product on a global basis. D. The law of one price states that there is only one price that consumers will be willing to pay for a product. E. The law of one price states that global marketers should charge one price on the internet and a different price through retail outlets.
A
When disparities in prices between different country markets exceed the transportation and duty costs separating the markets, enterprising individuals can purchase goods in the lower-price country market and then transport them for sale in markets where higher prices prevail. This is called ______________. A. arbitrage B. advanced selling C. extension of distribution D. secondary market E. secondary selling
A
Which of the following best describes a global brand? A. A brand that has the same name and, in some instances, a similar image and positioning. B. A brand that is offered to several segments C. A brand that has found success in a single national market D. A brand is the same thing as a global product. E. A brand created by a global company to meet the needs of a local market
A
Which of the following best explains why direct sales is the most effective channel in a country like Japan? A. Direct sales is based on relationships. B. Fixed costs are reduced. C. Direct sales is more cost-effective. D. Direct sales provides greater channel control. E. Direct sales has a greater margin.
A
Which of the following has had the greatest impact on global price transparency? A. The Internet B. NAFTA C. The World Trade Organization (WTO) D. The United Nations E. The European Union
A
Which of the following is a type of innovation that could be described as a "game changer"? A. Discontinuous innovation B. Platform innovation C. Continuous innovations D. Dynamically continuous innovations E. Line extension innovations
A
Which of the following is an approach used by companies to avoid anti-dumping laws? A. Make non-price competitive adjustments B. Reduce price transparency C. Conduct business only on the Internet D. Restrict exports to countries with strong anti-dumping laws E. Reduce production
A
Which of the following is an essential requirement for pricing in an inflationary environment? A. maintain operating margins B. reduce the selling price C. maintain the price D. ignore inventory management technology E. decrease operating margins
A
Which of the following is the correct definition of global advertising? A. Messages whose art, copy, headlines, photographs, taglines, and other elements have been developed expressly for their worldwide suitability. B. Messages that can be sent to any nation by using local advertising themes. C. Advertising developed for use in foreign nations, but not for use in the U.S. D. Advertising a global message in a single country. E. Ads that show a global diversity of people in the photographs.
A
Which of the following is the strategic alternative where both the product and at least one of the promotional elements are adapted for a particular country market? A. Product-communication adaptation (dual adaptation) B. Product adaptation-communication extension C. Product extension-communication adaptation D. Product-communication extension (dual extension) E. Innovation
A
Which of the following statements is correct regarding the costs or consequences that gray markets impose on global marketers? A. Gray markets can damage the manufacturer's reputation. B. Gray markets do not affect channel relationships. C. Gray markets do not undermine segmented pricing schemes. D. There is no dilution of exclusivity due to gray marketing. E. Channel members do not react to the costs of gray marketing.
A
Which of the following statements is true regarding the advertising industry? A. Most of the major global advertising agency companies are umbrella corporations or holding companies. B. Top executives at advertising agencies typically stay with the organization for a long time. C. The advertising industry lacks mobility. D. The world of advertising agencies is static and rarely changes. E. The world of advertising moves at a slow pace.
A
Which of the following terms refers to an alternative financing method where products are exchanged between nations rather than currency. A. Countertrade B. Fair market C. Global trade D. Transfer pricing E. Price fixing
A
Which of the pricing alternatives calls for a per-unit price of a product to be the same no matter where in the world it is being sold? A. Extension pricing B. Adaptation pricing C. Geocentric pricing D. Corporate pricing E. Polycentric pricing
A
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. Asians differ from Westerners in their basic physiological needs C. "luxury badging" is irrelevant to companies marketing in Asia D. status needs in different countries can be fulfilled only with localized products E. "self-actualization" is the highest-order need in Japan as well as Western nations
A
Worldwide, consumers, corporate buyers, governments, activists, and other groups associate global brands with three characteristics. What are these three characteristics? A. quality signal, global myth and social responsibility B. brand equity, price and country of origin C. packaging, price and country of origin D. country of origin, brand symbol and global advertising E. brand image, brand equity and packaging
A
________ are responsible for fostering goodwill, understanding, and acceptance among a company's various constituents and stakeholders. A. Public relations personnel B. Social media experts C. Ad agencies D. Publicists E. Advocacy agents
A
________ is a strategic alternative that uses almost no product or brand adaptation for global distribution. A. Product-communication extension (dual extension) B. Product-communication adaptation (dual adaptation) C. Product extension-communication adaptation D. Product adaptation-communication extension E. Innovation
A
________ is defined as the sale of an imported product at a price lower than that normally charged in a domestic market or country of origin. A. Dumping B. Price discrimination C. Gray marketing D. Parallel importing E. Price fixing
A
_____________ refers to a transaction in which the buyer takes delivery at the premises of the seller; the buyer bears all risks and expenses from that point on. A. Ex-works (EXW) B. Delivered duty paid (DDP) C. Cost, insurance, freight (CIF) named port D. Cost and freight (CFR) E. Free carrier (FCA)
A
An agent or middleman who chooses to distribute only a few select products from the vendor's product line is said to be ________. A. self-serving B. cherry picking C. an independent intermediary D. discriminating E. proactive
B
As _______ has made price information for many products available around the globe, companies must carefully consider how customers in one country or region will react if they discover they are paying significantly higher prices for the same product than customers in other parts of the world. A. the company Amazon.com B. the Internet C. the company catalog D. each company E. the company eBay
B
Based on the data provided in the text, which company ranks number one in terms of worldwide ad spending for the year 2013? A. L'Oreal B. Proctor & Gamble C. General Motors D. Toyota E. Unilever
B
Diageo PLC successfully markets Gordon's Edge, a gin-based ready-to-drink beverage, in the United Kingdom only. This is an example of a(n) _________. A. global brand B. local brand C. global product D. international brand E. international product
B
Eco-packaging is a key issue today, and package designers must address all of the following environmental issues except _______. A. sustainable forestry B. profitability C. biodegradability D. recycling E. disposal
B
Fires and collapsed buildings at garment factories in Bangladesh revived concerns about the global supply chain and the human cost of low-priced goods. This caused ______________ for Wal-Mart Corporation in the United States. A. pricing problems B. public relations problems C. sales promotion problems D. distribution problems E. advertising problems
B
Hellmut Schütte has proposed a modified hierarchy to Maslow's in attempting to explain the needs and wants of Asian consumers. Which of the following is NOT listed in Schütte's model? A. status B. self-actualization C. affiliation D. admiration E. safety
B
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. Polycentric B. Ethnocentric C. Arbitrage D. Adaption pricing E. Geocentric
B
In addition to creating advertising, ________provide other services, such as market research, media, and direct marketing. A. holding companies B. full service agency brands C. limited service agency brands D. umbrella companies E. large corporations
B
In the Uruguay round of GATT negotiations, many countries took issue with the U.S. legal system, in part because historically the U.S. Commerce Department almost always ruled in favor of the U.S. company that filed the complaint. This was related to the laws pertaining to _______. A. licensing B. dumping C. black marketing D. market skimming E. gray marketing
B
India has over 300 newspapers which typically sell for 5 rupees (10 cents)? Which media factor in India explains the high use of newspapers? A. There are no magazines in India. B. The lack of penetration by cable television C. People in India do not watch television. D. The internet is outlawed in much of the country. E. India has a surplus of paper.
B
In Japan, the biggest barrier facing U.S. auto manufacturers isn't high tariffs; rather, it's that one-half of the cars that are sold each year are through ______________. A. dealerships B. door-to-door salespeople C. a combination of online and dealerships D. online E. third-party suppliers
B
In advertising, which type of agency personnel would need to be a language specialist? A. Logistics specialist B. copywriter C. PR practitioner D. art director E. IMC manager
B
Many consumers worldwide engage in conspicuous consumption. According to the text, which of Maslow's needs does conspicuous consumption fulfill? A. Safety B. Esteem C. Self-actualization D. Physiological E. Social
B
Nike and Walmart have received a great deal of negative publicity regarding what issue? A. Insider trading B. Alleged sweatshop conditions in factories run by subcontractors C. Deceptive pricing D. False advertising E. Unsafe products
B
Nike has embraced the IMC concept. What does IMC stand for? A. Integrated mass communications B. Integrated marketing communications C. Integrated media communications D. Integrated materials control E. Integrated marketing control
B
Rockwell International sold a printing press to Zimbabwe for $8 million. The deal went through, however, only after Rockwell agreed to purchase $8 million in ferrochrome and nickel from Zimbabwe, which it subsequently sold on the world market. This is an example of ________. A. compensation trading B. counterpurchase C. switch trading D. offset E. barter
B
The internationally accepted terms of trade are known as ________. A. ex-works (EXW) B. International Commercial Terms (Incoterms) C. free on board (FOB) D. free alongside ship (FAS) E. delivered duty paid (DDP)
B
The marketing opportunity that presents itself, however inappropriate, requires gray market goods to be ______________ than goods sold by authorized distributors or domestically produced goods. A. branded differently B. priced lower C. packaged differently D. priced higher E. priced the same
B
The Sensor, SensorExcel, and MACH3 shaving systems represent Gillette's ongoing efforts to bring new technology to bear on wet shaving, an activity that is performed today pretty much as it has been for centuries. These products represent which type of new product innovation? A. Discontinuous innovation B. Dynamically continuous innovation C. Platform-based innovation D. Continuous innovation E. A global startup
B
To promote its Centrino wireless chip, Intel launched a global ad campaign that features different celebrities in different countries. The wireless chip itself is standardized. Which global product planning approach is this? A. product-communications extension B. product extension-communications adaptation C. innovation D. product adaptation-communications extension E. dual adaptation
B
Transfer pricing is an important topic in global marketing because goods crossing national borders represent a sale; therefore, their pricing is a matter of interest both to the ______________, who want to collect a fair share of income taxes, and to the______________, which wants to collect an appropriate duty on the goods. A. municipal tax collector; shipping company B. tax authorities; customs service C. board of directors; customs service D. CEO; dock authorities E. None of the above
B
Transfer pricing represents which type of exchange transaction? A. Between buyers and sellers in different countries. B. Between buyers and sellers that have the same corporate parent. C. Between buyers and sellers in the same industry. D. Between buyers and sellers in the same country. E. Between buyers and sellers of the same product.
B
Which of the following categories best describes the approach of Britain's Marks & Spencer (M&S) to global retailing? A. Few product categories, own-label focus B. Many product categories, private-label focus C. Many product categories, manufacturer brand focus D. Few product categories, manufacturer brand focus E. None of the above
B
Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap? A. Many product categories, manufacturer brand focus B. Few product categories, own-label focus C. Few product categories, manufacturer brand focus D. Many product categories, own-label focus E. None of the above.
B
Which of the following is the oldest and least complex form of countertrade? A. Parallel barter B. Barter C. Counterpurchase D. Parallel trading E. Monetized trade
B
Which type of retailer offers a limited assortment of goodslong dash—typically 1,000 to 3,000 different itemslong dash—at rock-bottom prices. A. Supermarkets B. Hard discounters C. Convenience stores D. Dollar stores E. Hypermarkets
B
McDonald's and Coca-Cola have focused on which of the following needs to create global brand franchises? A. Safety and esteem B. Physiological and social C. Esteem and self-actualization D. Social and safety E. Physiological and safety
B
________ is a composite measure of the amount of effort a customer expends, the level of risk associated with the purchase, and buyer involvement in the purchase. A. Preference B. Buyer orientation C. Buyer behavior D. Specialty purchases E. Convenience
B
________ is defined as messages whose art, copy, headlines, photographs, taglines, and other elements have been developed for their worldwide suitability. A. Publicity B. Global advertising C. Public relations D. Advertising E. Integrated marketing communication
B
Marketing channels exist to create utility for customers. The major categories of channel utility include all the following except _______ utility. A. form B. time C. price D. information E. place
C
After 4 years of product development, Procter & Gamble recently introduced a new, improved disposable diaper. Pampers Rash Guard diapers are designed to prevent diaper rash and represent the first time a company has made a medical claim for its diapers. What kind of innovation do the new diapers represent? A. Dynamically continuous innovation B. A global startup C. Continuous innovation D. Discontinuous innovation E. Platform-based innovation
C
As one marketing expert pointed out in the mid-1990s, Italian is synonymous with style, and French is synonymous with chic. What is Germany synonymous with? A. Shipbuilding B. Low quality goods C. Quality engineering D. Fashion E. Counterfeiting
C
One way for a country to curb runaway inflation is to ________. A. encourage dumping B. subsidize domestic products C. impose price controls D. increase manufacturing capacity E. discourage exporting
C
Car manufacturers of expensive models, such as Mercedes or Audi, insist on wrap covering each individual vehicle with protective sheathing for the duration of the journey from the factory to the dealership. Such manufactures are creating which kind of channel utility? A. Time utility B. Information utility C. Form utility D. Place utility E. None of the above.
C
For positive proof that dumping has occurred in the United States, both _______ and _______ must be demonstrated. A. artificial sales, injury B. sales data, profit motive C. price discrimination, injury D. shipments, serial numbers E. invoices and proof of sales
C
In 2011 the European Commission determined that P&G, Unilever, and Henkel conspired to set prices for laundry detergent. This is an example of _______. A. dumping B. gray marketing C. horizontal price fixing D. vertical price fixing E. black marketing
C
In a typical corporation, which of the following internal positions would be most interested in competitive pricing in the world marketplace? A. Controller and financial vice president B. Vice president of operations C. The director of global marketing D. Counsel E. Individual country managers
C
In which of the following innovation categories do products share certain features with earlier products while incorporating new, added-value features? A. Disruptive innovation B. Product transformation C. Dynamically continuous innovation D. Discontinuous innovation E. Continuous innovation
C
In 2000, the U.S. Congress passed the ______________. This law calls for antidumping revenues to be paid to U.S. companies harmed by imported goods sold at below-market prices. A. Tariff Act B. GATT Article VI. C. Byrd Amendment D. GATT agreement E. Antidumping and Antisubsidy Regulations
C
The sales force, distributors or agents, and wholesalers are three basic elements of ________. A. retailing B. direct sales C. marketing channel alternatives for industrial or business products companies D. peer-to-peer marketing E. franchising
C
The country-of-origin effect is largely based on _______. A. brand equity B. the location of the country C. perceptions D. advertising E. foreign-ness
C
What does the word Incoterms stand for in relation to conducting international terms of trade? A. International Credit Terminology B. Internal Commercial Terms C. International Commercial Terms D. In Company Terms E. International Commerce Terminology
C
What is the major appeal of the product extensiondash-communication adaptation strategy? A. Greater profitability B. Using innovation to develop an entirely new product C. The low cost of implementation D. Adapting the product to local preferences E. Using the same communication strategy in multiple countries
C
What is the underlying purpose of price fixing? A. To offer lower prices to the consumers B. To create consumer demand C. To ensure higher prices D. To drive competitors out of business E. To increase market share
C
When Companies sell the same product with virtually no adaptation, using the same advertising and promotional appeals used domestically, in two or more country markets or segments, which global product planning strategy are they using? A. innovation B. Product extension-communication adaptation C. product-communication extension D. dual adaptation E. product adaptation-communication extension
C
When a company uses intermodal transportation, it is using _________________. A. land and air shipping B. truck and water shipping C. land and water shipping D. air and water shipping E. truck and rail shipping
C
When a company uses _______, it presents a point of view on a particular issue. A. publicity B. corporate advertising C. advocacy advertising D. radio advertising E. image advertising
C
When companies adopt an "indirect involvement" channel, they have all the following activities except ________. A. utilizing retailers B. using distributors C. establishing their own sales force D. utilizing those who have network of stores E. utilizing independent agents
C
Which of the following is a term used to describe modern, branded chain retail stores? A. Supermarkets B. Convenience stores C. Organized retail D. Global retailing E. Department stores
C
Which of the following refers to a manufacturer conspiring with retailers to ensure certain retail price levels are maintained? A. Horizontal price fixing B. Parallel exporting C. Vertical price fixing D. Dumping E. Price discrimination
C
Which type of pricing strategy sets a high price in the introductory phase of the product life cycle? A. Captive pricing B. Cost-based pricing C. Market skimming D. Market penetration E. Export pricing
C
Why are individual governments concerned with transfer pricing? A. It is seen as an unfair trade practice. B. It is perceived as a form of price-fixing. C. It is believed to be used to avoid taxes. D. It is perceived as a potential for dumping. E. It is not transparent.
C
________ is defined as perceptions about a brand as reflected by brand associations that consumers hold in their memories. A. Brand awareness B. Branding C. Brand image D. Brand equity E. Brand value
C
__________ include(s) one or more "core" advertising agencies as well as units specializing in direct marketing, marketing services, public relations, or research. A. An advertising agency B. A market research firm C. Umbrella corporations D. Proactive E. An independent intermediary
C
A manufacturer attempting to set prices for its products in export markets must realize that CIF, VAT, and distributor markups all lead to _______________. A. dumping charges B. market skimming C. market penetration D. price escalation E. currency devaluations
D
A market _______ pricing strategy calls for setting price levels that are low enough to quickly build market share. A. cost-based B. skimming C. gray D. penetration E. holding
D
According to a recent study of European industrial exporters, companies that utilized independent distributors would be most likely to utilize ______________. A. ethnocentric pricing B. arbitrage C. geocentric pricing D. polycentric pricing E. extension pricing
D
According to the text, all of the following are issues that should be considered in selecting an advertising agency except: A. area coverage B. national responsiveness C. company organization D. size of the agency E. buyer perception
D
All of the following would be used by a company with a strong home-country currency except _______________. A. offering improved after-sales service B. cutting costs C. sourcing outside the home country D. cut export prices to increase market share E. offering improved quality
D
Based on daily per capita viewership _______ is the number 1 advertising medium in both the United States and Japan; by contrast, _______ are (is) the leading advertising medium in Germany where television ranks second. A. Internet; television B. Television; Internet C. Radio; Internet D. Television; newspapers E. Internet; newspapers
D
Elon Musk, founder of Tesla and Space X, is an entrepreneur. He has developed several innovative products and services, created new brands, and started companies to market his creations. By applying the basic tools and principles of modern marketing, Musk has achieved remarkable success. What kind of innovation does Musk employ in these new products? A. Dynamically continuous innovation B. A global startup C. Continuous innovation D. Discontinuous innovation E. Platform-based innovation
D
Generally speaking, international trade results in___________. A. increased trade restrictions B. higher inflation C. the same price for goods in all market areas D. lower prices for goods E. higher prices for goods
D
Generally speaking, which of the following product categories represents the best potential for extension into international markets without any adaptation? A. Automobiles B. Beverages C. Food products D. Industrial products E. Durable products
D
In a recent global campaign for IKEA, the copywriter came up with the following copy: "It's a place for love...a place for memories...a place for laughter. Home is the most important place in the world." This is a classic example of a(an) __________. A. creative appeal B. advertising appeal C. rational appeal D. emotional appeal E. selling proposition
D
In which type of countertrade arrangement does a third party steps into a simple barter or other countertrade arrangement when one of the parties is not willing to accept all the goods received in a transaction? A. Offset B. Counterpurchase C. Barter D. Switch trading E. Compensation trading
D
In advertising, a(n) _______ is an agent who chooses graphics, pictures, type styles, and other visual elements and has the general responsibility for the overall look of an advertisement. A. IMC manager B. PR practitioner C. Logistics specialist D. art director E. copywriter
D
Marketers of domestically manufactured finished products may be forced to switch to ______________ of certain components to keep costs and prices competitive. A. cheaper parts B. alternative parts C. domestic suppliers D. offshore sourcing E. inferior quality
D
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. Gray marketing B. Dumping C. Horizontal price fixing D. Vertical price fixing E. Black marketing
D
Price discrepancies across the euro zone have been disappearing because manufacturers can no longer cite currency fluctuations as a justification for the discrepancies. ______________ means that buyers can comparison shop easily because goods will be priced in euros as opposed to marks, francs, or lira. A. Price competitiveness B. Changes in price C. Price control D. Price transparency E. Standard pricing
D
Procter & Gamble (P&G) managers know that workers are often paid a daily wage and that its Mexican customers generally carry 5- and 10-peso coins. To keep prices of shampoo and detergent below 11 or 12 pesos and ensure satisfactory profit margins, Procter & Gamble is using which method of pricing? A. Cost-plus approach B. Price bundling C. Cost-based pricing D. Target costing E. Export price costing
D
Which of the categories of Incoterms refers to a transaction where the buyer takes delivery at the seller's location? A. Delivered duty paid (DDP) B. Free carrier (FCA) C. Free on board (FOB) D. Ex-works (EXW) E. Free alongside ship (FAS)
D
Which of the following global companies is ranked number one in worldwide ad spending? A. Unilever B. Coca-Cola C. McDonald's D. Proctor & Gamble E. PepsiCo
D
Which of the following groups gains the most from a gray market? A. Governments B. Exporters C. Retailers D. Consumers E. Manufacturers
D
Which of the following is considered an intangible attribute of a product? A. Colors offered B. Physical weight of the product C. Accessories available D. Status associated with ownership E. Quality of materials used
D
Which of the following statements about global media availability and use is correct? A. In developed countries, newspapers are gaining readership. B. Since 1986, ad content and visual presentation on television ads in Saudi Arabia are no longer restricted. C. Television advertising to young children is highest in Sweden. D. France does not allow advertising by retailers. E. Globally, radio advertising is a more important medium that television.
D
Which of the following statements is true regarding the country-of-origin effect? A. Perceptions and attitudes due to the country-or-origin effect do not change over time. B. Only positive perceptions and attitudes result from the country-of-origin effect. C. The only products the country-of-origin effect exists for are automobiles and electronics. D. Perceptions based on the country-of-origin effect become part of a brand's image and contribute to brand equity. E. Only negative perceptions and attitudes result from the country-of-origin effect.
D
Which of the following statements regarding containerization is correct? A. Containerization was started in Europe in the 1920's. B. Containers are made of fiberglass. C. Containers are typically small boxes measuring less than ten feet. D. Containerization offers flexibility in shipping modes. E. Containerization can only be used for a limited number of products.
D
Which of the following transportation modes has the highest cost? A. Railroad B. Water C. Internet D. Air E. Truck
D
Why do Chinese consumers prefer products from Germany, Italy, and France to "Made in China" products? A. The Chinese want to take advantage of new accessibility. B. Chinese products are too expensive or ostentatious. C. Chinese products are more expensive than imported products. D. Products made in Europe still carry a great appeal as symbols of success. E. Chinese products are of low quality.
D
Coca-Cola and McDonald's have learned from experience that some food and drink preferences remain deeply embedded in culture. The basic need for food and drink relate to which need in Maslow's hierarchy? A. safety B. social C. self-actualization D. physiological E. external and internal esteem
D
Peer-to-peer (p2p) marketing uses distribution channels through _______. A. manufacturer-to-wholesalers B. door-to-door C. business-to-consumers D. electronic commerce E. business-to-business
D
A market holding strategy is often used in response to unfavorable ________. A. increased tariffs B. inflation C. government subsidies D. competitive prices E. currency valuation swings
E
A reciprocal arrangement whereby the government in the importing country seeks to recover large sums of hard currency spent on expensive purchases such as military aircraft or telecommunications systems, is known as a(n)________. A. compensation trading B. barter C. triangular trade and swap D. countertrade E. offset
E
According to data compiled by various industry groups, worldwide advertising expenditures in 2012 passed the _______ milestone. A. $140 billion B. $940 million C. $320 billion D. $1.5 trillion E. $500 billion
E
Advertising agencies can be thought of as "idea factories"; in industry parlance, the Holy Grail in creative strategy development is something known as the ______________. A. right story B. big graphic C. big decision D. story that fits E. big idea
E
Apple's brilliant string of new-product introductions in the 2000slong dash—the iPod (2001), the iPhone (2007), and the iPad (2010) long dash—revolutionized the technology industry. What type of innovation did Apple's products represent? A. A global startup B. A platform C. A dynamically continuous innovation D. A continuous innovation E. A discontinuous innovation
E
Because of differences in national markets, the global marketer must develop pricing systems and pricing policies that take into account which of the following three factors? A. price floors, optimum prices and domestic prices B. price floors, price ceilings, and domestic prices C. price skimming, domestic prices and penetration pricing D. price floors, price ceilings, and price skimming E. price floors, price ceilings, and optimum prices
E
By definition, ______________ feature a narrow but deep merchandise mix and high levels of service. A. discount stores B. convenience stores C. hypermarkets D. supermarkets E. specialty retailers
E
If a company sells products in export markets at prices lower than that normally charged in a domestic market or country of origin they are engaging in _______. A. gray marketing B. using offsets C. parallel importing D. market skimming E. dumping
E
In some product categories, foreign products have a substantial advantage over their domestic counterparts simply because of their "foreign-ness." According to the text, global marketers have an opportunity to capitalize on this situation by __________________. A. ceasing production of the domestic counterparts B. running more sales promotions C. increase advertising D. not importing these products E. charging premium prices
E
In some product categories, marketers can charge premium prices for imported items because ________. A. of differences in currency B. imported items are of higher quality C. of distribution costs D. the actual cost of product is higher E. of consumer perception of foreign superiority
E
In the past ten years, the number of automobiles in Moscow has increased from 300,000 to 3 million. As a result, which of the following is the medium of choice in Moscow? A. Newspaper B. Television C. Internet D. Radio E. Billboards
E
In ___________, competitors within an industry that make and market the same product conspire to keep prices high. A. Dumping B. Gray marketing C. Vertical price fixing D. Black marketing E. Horizontal price fixing
E
PepsiCo used to trade soft drink syrup concentrate with the Soviet Union for Stolichnaya vodka. This represents which type of countertrade? A. Offset B. Switch trading C. Counterpurchase D. Compensation trading E. Barter
E
The Opel Corsa was a new model originally introduced in Europe. GM then decided to build different versions of the Corsa for Mexico and Brazil. This is an example of a(n) _______. A. local brand B. local product C. global brand D. global product E. international product
E
The makers of Chanel, Givenchy, Clarins, Guerlain, and other leading cosmetics brands create different formulations for different regions of the world. Which strategy in the product/brand matrix for global marketing does this represent? A. global product/local brand B. local equity/global equity C. global product/global brand D. local product/local brand E. local product/global brand
E
The most important distribution activities are _____________. A. Warehousing and transportation B. Ordering processing, warehousing, and transportation C. Ordering processing and transportation D. Inventory management, order processing, and warehousing E. Order processing, warehousing, inventory management, and transportation
E
The obvious advantage of rigid _______ pricing is its simplicity: Assuming that both internal and external cost figures are readily available, it is relatively easy to arrive at a quote. A. gray-based B. holding C. skimming D. penetration E. cost-based
E
There are 3 million cars in Moscow. This creates massive traffic delays. Due to this, ______ are the advertising medium of choice in Moscow. A. newspaper ads B. radio ads C. magazine ads D. internet ads E. billboards
E
There is a growing tendency for Western clients to designate a(n) ________ to facilitate the integration of worldwide marketing and advertising functions. A. in-house ad agency B. local ad agency in the home country and in each national market C. combination of in-house and outside ad agencies D. outside ad agency in home country E. global ad agency
E
Transfer pricing refers to ________. A. business-to-business sales B. inter-company sales C. transfer of goods from one retailer to another D. transfer of goods from one market to another E. intra-corporate exchanges
E
Which of the following best explains why some Western retailers have struggled in developing global markets? A. Consumers are more comfortable with domestic retailers. B. Western retailers offer too many services. C. Western retailers offer too large a selection. D. Price is not important to global consumers. E. It is not always possible to export a retail business model.
E
Which of the following conditions would discourage gray marketing practices? A. a product is in short supply B. goods are subject to substantial markups C. marketers use skimming strategies D. there is easy access to pricing information E. a product is in abundant supply
E
Which of the following is an appropriate guideline for companies selecting independent distributors in international markets? A. Have the distributor develop marketing strategy from day one. B. Treat local distributors as short-term partners. C. Look for distributors with a few good customer contacts. D. Links to national distributors should be developed later in the process. E. Select distributors; don't let them select you.
E
Which of the following major transportation modes has low capability, low cost, and high reliability? A. Air B. Trucks C. Intermodal D. Water E. The Internet
E
Which of the following statements is correct regarding establishing global marketing channels? A. Local laws cannot protect foreign distributors and agents who violate terms of agreement. B. Direct involvement in distribution in a new market is relatively inexpensive. C. The salesforce should quickly turn a profit in new markets. D. Long-term channel commitments are easy to terminate. E. Companies should document the nature of the relationship with the foreign partner.
E
Which of the following statements is correct regarding international transportation modes? A. The internet is not considered a mode of transportation. B. Water transportation is rated high on reliability. C. Trucks should never be used if fast delivery is needed. D. Only certain types of goods can be shipped via ocean transportation. E. Rail provides an extremely cost-effective means for moving large quantities of merchandise long distances.
E
Which of the global pricing alternatives allows management in each global market to establish its own prices? A. Fixed pricing B. Geocentric pricing C. Extension pricing D. Ethnocentric pricing E. Polycentric pricing
E
Which promotional mix element is most closely associated with activities designed to foster goodwill and understanding with various constituents both inside and outside the company? A. Personal selling B. Sales promotion C. Publicity D. Advertising E. Public relations
E
__________ is a strategic communication process that builds mutually beneficial relationships between organizations and their publics. A. Unearned media B. Earned media C. Paid media D. Publicity E. Public relations
E
Typically, a(n) ________ is required when companies enter emerging markets for the first time. A. middleman B. export agent C. import facilitator D. manufacturer's representative E. local distributor
E
_______ occurs when a manufacturer conspires with wholesalers or retailers to ensure certain retail prices are maintained. A. Gray marketing B. Dumping C. Horizontal price fixing D. Black marketing E. Vertical price fixing
E
