MKTG exam 3

probability sampling

...ensures that every person in the target population has a change of being selected, and the probability of each person being selected is known. the most common type of probability sampling is simple random sampling

Rory's company has just decided to expand into the pet food industry but knows little about it. It decides to interview pet owners to gain a basic understanding of the needs of customers in the industry. Which type of research is Rory's company conducting? Quantitative Descriptive Causal Exploratory

Exploratory

Which market entry strategy can allow a company to enter foreign markets without dealing with anyone but the final customer?

Exporting reason: In exporting, a company can sell an item overseas to a customer over the Internet.

Which of the following is an example of a brand message not translating well to another language? A logo showing a player with a baseball bat is interpreted as a guard with a club. A slogan meaning "be active" is rendered as "run away quickly." An actor in a commercial makes a gesture that is offensive in the country where the ad is shown. The print ads for a product list a price that is too high because the wrong currency exchange was used.

A slogan meaning "be active" is rendered as "run away quickly."

gray market

consists of branded products sold through legal but unauthorized distribution channels. For example, a third-party retailer might buy a bulk order of Nikon cameras from the foreign manufacturer and sell them directly to consumers.

Companies that enter foreign markets must make sure that their marketing achieves cultural fit, which may include incorporating messages designed to counteract ______, which occurs when a country's residents believe it is wrong or immoral to purchase foreign-produced products.

consumer ethnocentrism

A kitchen utensil company entered the market in a Southeast Asian country but soon found that some of its products, such as wooden bowls and spoons, were not selling because people would not buy items they could make for themselves. This is a result of the global marketing pricing issue of ______.

consumer willingness to pay

Benefits of direct ownership include ______. (select all that apply) control over pricing high resource commitment high product-distribution input significant separation from central management

control over pricing high product-distribution input

Which of the following is a logistics issue? All-Natural Cola decides it will need to charge at least 20 percent more per case for its gourmet sodas in Belgium. Federated Steel must find a way for its cargo ships to receive priority processing by officials in congested Asian ports. Laredo Larry's Leather discovers it cannot sell leather made from certain animals in its Southwest Asian operations. Quincy's Quesadillas learns that its slogan means something vulgar in Italian.

Federated Steel must find a way for its cargo ships to receive priority processing by officials in congested Asian ports.

A large restaurant chain has just opened 15 restaurants in a country where it has never had a location. The chain supports local owner operators of its restaurants in exchange for a $500,000 startup fee and a portion of the future profits. Which entry market strategy is the restaurant chain using?

Franchising

______ involves a contractual arrangement in which one company lets a local owner operator use its name and receive support in exchange for a fee and, usually, ______.

Franchising; a share of the profits

What are major functions of global marketing research? Gathering precise information about competitors Recruiting sales leaders from other countries Analyzing the global market Securing sources for generating capital overseas

Gathering precise information about competitors Analyzing the global market

What are major functions of global marketing research?

Gathering precise information about competitors Analyzing the global market

What type of marketing strategies intentionally deal with customers, markets, and competition around the world to sell more products in more markets?

Global

Which statement about global marketing is true? Global marketing introduces challenges that do not impact domestic marketing. Thanks to technology, global marketing is less complex and less expensive than domestic marketing. Global marketers can easily access any demographic information that they need. Global marketers must take sociocultural factors into account, but domestic marketers do not.

Global marketing introduces challenges that do not impact domestic marketing.

Which statement about foreign competition and local businesses is generally true? There are generally more local companies competing in foreign countries than in the United States. U.S. companies are more likely to achieve cultural fit in foreign countries than local businesses are. It is impossible for U.S. companies to successfully compete with local companies in foreign markets. Local companies are better positioned to connect with customers.

Local companies are better positioned to connect with customers.

Which of the following is a key feature of global marketing? Firms that expand into global markets generally have increased costs in all markets. Large firms are better able than small firms to react to the unique demands of different markets. Small firms generally find it impossible to enter the global market. Most large firms must expand into global markets to sell more of their products.

Most large firms must expand into global markets to sell more of their products.

Why is it difficult for global marketers to access government-collected demographic information? Most well-established countries leave the task of conducting a census to specialized research firms. Not all countries collect an accurate census on a regular basis. The citizens of many emerging countries lack identifiable demographic characteristics. Countries often collect and classify information in different ways.

Not all countries collect an accurate census on a regular basis. Countries often collect and classify information in different ways.

Why is it difficult for global marketers to access government-collected demographic information? (select all that apply) Not all countries collect an accurate census on a regular basis. Countries often collect and classify information in different ways. The citizens of many emerging countries lack identifiable demographic characteristics. Most well-established countries leave the task of conducting a census to specialized research firms.

Not all countries collect an accurate census on a regular basis. Countries often collect and classify information in different ways.

Global

One product is used in all markets.

Matching...marketing research process & steps

Problem definition = Research objectives Plan development = Research design Data collection = Focus groups and experiments Data analysis = Coding Taking action = Report

match each step of the marketing research process with the task associated with it.

Problem definition = Setting specific research objectives Plan development = Identifying what specific type of research will be used and what sampling methods will be employed Data collection = Conducting interviews, surveys, and observation Data analysis = Using statistics to create information Taking action = Presenting a formal, written report to decision makers

Match the element of a company's marketing mix with the example of how it might be adjusted to enter a foreign market.

Product = Deciding which flavors consumers in the foreign market will prefer Price = Analyzing how much the consumers in the target market can afford to pay for a product Place = Deciding whether retail outlets in the foreign market need to be accessible to foot traffic or automobile traffic Promotion = Deciding how to translate an advertising campaign into the language of the foreign market

MARKET ENTRY STRATEGIES: Franchising

Providing a local owner-operator the right to use the domestic firm's name and marketing and operation support in exchange for a fee and, typically, a share of the profits

In order to analyze global markets in a way that will help them overcome language barriers and cultural differences, firms ______. Multiple choice question.

Reason: Correct. One of the primary tasks for companies that want to operate internationally is to analyze the global market. To conduct this research, companies often hire local marketing research companies because they are better positioned to collect primary data and already understand the local language, culture, and other relevant factors

When governments artificially control the relative value of their currencies, they are engaging in ______.

currency manipulation

When the Chinese government values its currency less than it is worth so that it can export goods at cheaper prices than other countries, it is engaged in ______.

currency manipulation reason: Currency manipulation occurs when the government of a country artificially controls the value of its currency relative to the currencies of other countries.

Casey lives in the United States and believes it is wrong to purchase anything not made domestically. Casey is ______.

displaying consumer ethnocentrism

The governments of many emerging nations ______, so global marketers ______.

do not regularly collect an accurate census; often hire special research firms reason: Many emerging nations do not conduct an accurate census on a regular basis. In many cases, therefore, marketers must invest in research to determine the demographic makeup and needs of a new market. They often hire specialized research firms to do this.

Nonprobability sampling

does not attempt to ensure that every member of the target population has a chance of being selected

simple random sampling (probability)

everyone in the target poulation has an equal chance of being selected. It is the equivalent of drawing names from a hat; every name has an equal chance

Sandra collects pretty rocks from a creek on her brother's property. She put together a site on the Internet and is now selling the rocks to buyers in more than 20 countries. Which market entry strategy is Sandra using?

exporting

Selling domestically produced products to foreign markets is known as ______.

exporting

Many companies choose to enter foreign markets because ______. they can continue using outdated domestic technology foreign consumers demand their products domestic markets are shrinking higher competition means higher profits

foreign consumers demand their products (b/c: In many cases, firms market their products in international markets because there is customer demand for the products.)

Many businesses pursue the strategy of franchising because the ______ assumes most of the costs. stockholder foreign government licensee franchisee

franchisee Franchisees assume the majority of the capital costs and human resource issues, and the franchisor provides knowledge and information about running the business, which increases the likelihood of success.

A marketing strategy that consciously addresses customers, markets, and competition throughout the world in an effort to sell more products in more markets is known as ______ marketing.

global

Menchie's Motorsports decides to sell the exact same products in all markets around the world. Menchie's is using the ______ segmentation strategy. multi-domestic global product dumping adaptive

global

Marketers are affected by currency manipulation when ______ artificially control the price of a country's currency in relation to other currencies.

governments

Since they have to deal with almost 200 countries, global marketers face ______ than domestic marketers. fewer regulations overall fewer political issues and considerations less opportunity for profit greater opportunity for error

greater opportunity for error

A firm's ability to compete in the foreign market ______. has been made easier by technology depends on there being no local competition depends on its products selling domestically requires the company to enter a joint venture

has been made easier by technology

In comparison to exporting, licensing has ______ risk.

higher Licensing is typically a riskier option than exporting because the the licensor may be inadvertently creating a future competitor in the form of the licensee, the licensor shares information and the right to use its proprietary technology with the licensee, and the licensee could potentially misuse trademarks.

Firms can best overcome a lack of familiarity with international data sources by ______. asking the government to conduct their marketing research conducting their own domestic marketing research assembling a research team of low-cost interns hiring local marketing research firms in the regions of interest

hiring local marketing research firms in the regions of interest (b/c: Local firms are more familiar with unique aspects of the local area that may cause outside firms to make errors or have misunderstandings.)

Since overseas shipping tends to ______ than domestic transportation, companies engaged in global marketing hire ______ professionals to navigate the maze of transportation choices and develop solutions that support the firm's marketing strategy. incur more costs; logistics require twice as many workers; promotional carry smaller cargoes; negotiation be less complicated; pricing

incur more costs; logistics

Bud's Brand Boots found that it needed to create a new material to allow its boots to remain cool in some countries with hot climates. It then took this new material and added it to a line of boots it sells for extreme sports enthusiasts in the domestic market. Which of the six reasons for pursuing global marketing does this scenario best demonstrate? _________________________ REASONS FIRMS ENGAGE IN GLOBAL MARKETING: 1. Because they can 2. Larger markets 3. Increased profits 4. Necessity 5. Demand 6. Innovation

innovation

Culture clashes due to different business approaches in different countries are a major risk of ____ ventures.

joint

PEH Quarrying, an American company, wants to partner with Stone Liberators, an Italian company, to form a new firm in Italy. This is an example of a ______. The goal for PEH in doing this is to ______.

joint venture; enter the Italian stone market

Descriptive research is used when researchers ______. (SATA) look for demographic information, such as gender, age, or place of residence want to learn about a consumer's attitude toward a product or company seek to understand the cause-and-effect relationships among variables seek to better understand consumer thoughts, needs, and behavior

look for demographic information, such as gender, age, or place of residence want to learn about a consumer's attitude toward a product or company seek to better understand consumer thoughts, needs, and behavior

When Bill's Beefy Burgers expanded its franchising to overseas markets, it created several new menu options and added more low-cost options. These were changes to its ______. customer base marketing mix logistics system exchange rate

marketing mix

When a company enters a foreign market, it ______.

may face strong local competition rLocal companies are often better able to connect with consumers.

When marketers translate campaigns into different languages, they need to remember that ______. They also need to carefully examine their ______ can also be misinterpreted. metaphors and slang are universal across languages; shipping because logistics messages can easily be translated in a distorting way; logos because imagery censors usually alter the meaning of messages; prices because tariffs humor is unacceptable in other cultures; disclaimers because products

messages can easily be translated in a distorting way; logos because imagery

product dumping

occurs when a company sells its exports to another country at a lower price than it sells the same product in its domestic market. China was recently accused of dumping steel on the U.S. market and keeping prices unfairly low.

The opportunity to enter global markets is ______, and this is important because ______.

open to firms of all sizes; the largest markets are outside the United States

MARKET ENTRY STRATEGIES: Joint venture

partnering with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company's market

MARKET ENTRY STRATEGIES: Licensing

paying to use or distribute the resources of another firm

Mark decides to design a research sampling process in which he asks mechanics to recommend other mechanics to answer questions about tools. Which step of the marketing research process does this represent? Taking action Plan development Problem definition Data analysis Data collection

plan development

The second step in the marketing-research process, ______, involves identifying the specific type of research the firm will undertake and what ______ methods will be used.

plan development; sampling

The first step in the marketing research process is ______. During this step, researchers must choose research objectives that are specific and ______.

problem definition; measurable

sampling

process of selecting a subset of the population that is representative of the entire target population

consumer willingness to pay

refers to a consumer's ability and attitude toward a product's price when making a purchase decision. If a community is in a recession, local businesses should assess the prices of consumer products, especially luxury good items.

What is another name for plan development? Research design Research analysis Research definition Research collection

research design

Consumer ethnocentrism occurs when ______.

residents of a country believe that it is inappropriate or immoral to purchase foreign-made goods and services

The process of selecting a subset of the population that is representative of the whole target population is referred to as ______. How this selection is made has a major impact on the ______ of the findings, or how well the collected information measures what it was intended to measure. Multiple choice question.

sampling; validity

Maverick places an identification number for each of his customers into a plastic bin and then draws numbers to select customers to use in his marketing sample. What type of sampling is Maverick using in this case?

simple random

Companies usually prefer to market to countries with low taxes on imports, known as ______, because these taxes make it hard for firms to ______. currency fluctuations; adapt to foreign cultures boycotts; meet consumer demand exchange rates; hire foreign workers tariffs; price their products competitively

tariffs; price their products competitively

tariffs

taxes on imports and exports between countries. they can make competitive pricing difficult. after the U.S. announced tariffs on steel and aluminum imports from Canada, Canada replied with more than $16 billion worth of tariffs on U.S. imports.

quota sampling (nonprobability)

the firm chooses a certain number of participants based on selection criteria such as demographics (i.e., race, age, or gender)

snowball sampling (nonprobability)

the firm selects participants based on the referral of other participants who know they have some knowledge of the subject in question

logistics

the part of supply chain management that involves planning, implementing, and controlling the flow of goods, services, and information between the point of origin and the final customer

Factors that must be taken into account when determining logistics for international marketing include ______. (select all that apply) the possibility of piracy labor strikes how slogans will be received in another country inland transportation delays dramatic fluctuations in fuel prices

the possibility of piracy labor strikes inland transportation delays dramatic fluctuations in fuel prices

5 steps of the marketing research process:

1. problem definition 2. plan development 3. data collection 4. data analysis 5. taking action

In which of the following scenarios does currency manipulation occur? A South American country buys a large amount of an Asian country's currency, causing the value of its own currency to drop, and then exports its products to the Asian country at low prices. In the morning a dollar is worth 200 units of an Asian currency, and in the afternoon it is worth 205 units of the Asian currency. When Pedro vacations in China, he learns that he cannot buy things with his U.S. dollars, and he must use Chinese currency. A South American country refuses to buy any products or trade in the currency of a particular European country whose political actions they condemn.

A South American country buys a large amount of an Asian country's currency, causing the value of its own currency to drop, and then exports its products to the Asian country at low prices.

Multi-domestic

A few products are used in large market segments.

Which of the following scenarios represents the data collection stage of the marketing research process?

Art uses coding to sort data about customer preferences. Reason: Incorrect. This is an example of data analysis. Fumi decides that her company should use exploratory research and simple random sampling. Reason: Incorrect. This is an example of the research design step. Dana gives a speech to the marketing director about how the research they just conducted shows what customers usually buy but does not explain why or whether the trend will continue. Reason: Incorrect. This is an example of the taking action step. Wyatt interviews customers to learn about their experiences with cleaning supplies. correct Reason: Correct. Interviewing is a qualitative research method for collecting data. Ariana determines that her company needs to figure out exactly why customers do not buy certain-sized packages of her company's cereal. Reason: Incorrect. This is an example of the problem definition step.

Which is the next step of the marketing research process after you have developed a plan? Collecting data Taking action Analyzing data Defining a problem

Collecting data

Adaptive

Completely new products are used in each market.

refers to how well marketing efforts meet the needs of a specific market

Cultural fit

A country's government pressured the central bank in the country to begin a program that would make its currency artificially cheap. The country was than able to export more goods to other countries because the goods became relatively inexpensive. What has happened?

Currency manipulation

Which step of the marketing research process is most closely aligned with using descriptive and inferential statistics? Data collection Data analysis Taking action Problem definition Plan development

Data analysis

Which scenario best represents a firm pursuing global marketing because it can? Annamarie realizes that her large garment company is going to lose market share to a larger competitor that is already marketing globally unless her company does the same. Devin finds that he can easily sell and ship his hand-crafted wooden whistles to over 60 countries by using a simple Internet app. After several travelers took their portable Salem Sound speakers on vacation, people in other countries began writing the company asking for them. After Sycamore Ship Supplies developed a new motor component for ships operating in environmentally sensitive areas in Asia, they realized the same component would work well in some coastal areas of the United States and began selling it domestically.

Devin finds that he can easily sell and ship his hand-crafted wooden whistles to over 60 countries by using a simple Internet app.

Currency fluctuation

How the value of a country's currency changes in relation to the value of other countries' currencies

Income distribution

How wealth is allocated across a country's population

Top Shelf Hardware is about to enter into direct ownership of an overseas manufacturing facility. What benefit will Top Shelf most likely gain from this?

Increased control over its advertising, pricing, and product distribution in comparison with other methods of expansion

Which of the following are commonly used to conduct exploratory research?

Interviews Observations

MARKET ENTRY STRATEGIES: Exporting

Selling domestically manufactured products to foreign markets, allowing the firm to deal only with the final customer

What best describes exporting?

Selling domestically produced products to foreign markets

At work Sergei gave an oral presentation and distributed a research report that enabled the marketing manager to solve a specific problem. Which step of the marketing research process did Sergei perform?

Taking action

Which statements about technology and global marketing are true? Technology makes it possible for customers from countries with different native languages to view the same website in their own language. Technology has made it simpler and cheaper to ship abroad than to ship domestically. Technology has made it possible for even small businesses to operate globally. Technology has eliminated the need for companies to achieve cultural fit for their marketing campaigns.

Technology makes it possible for customers from countries with different native languages to view the same website in their own language. Technology has made it possible for even small businesses to operate globally.

What are advantages of franchising? (select all that apply) The capital investment of the franchisee reduces the franchisor's risk. The franchisor gives the franchisee knowledge that could be used to start a similar business. The business knowledge of the franchisor increases the success of the franchisee. The franchisor grants its name to a franchisee that it does not directly control.

The capital investment of the franchisee reduces the franchisor's risk. The business knowledge of the franchisor increases the success of the franchisee.

Which of the following is an example of a lack of cultural fit? A government undervaluing its currency so that its producers can offer cheap exports The launch of a European marketing campaign that is funny to Americans but offensive to Germans A company expanding to offer products in Asian countries that have expressed a high demand for them The use of different advertising campaigns in each of twelve countries a company sells in

The launch of a European marketing campaign that is funny to Americans but offensive to Germans

Exchange rate

The price of one country's currency in terms of another country's currency

How does global marketing research compare to local research? They both are used to complete the same key tasks. Local research firms can recognize data collection barriers not obvious to global firms. Firms that do their own research focus on the competition, but the local research firms they hire focus on analyzing the global market. Firms are less likely to have cultural misunderstandings as they enter foreign markets if they do their own research rather than hiring local research firms.

They both are used to complete the same key tasks. Local research firms can recognize data collection barriers not obvious to global firms.

What are two primary reasons firms pursue global marketing strategies? To access larger markets To operate in the gray market To take advantage of the opportunity To avoid government regulations

To access larger markets To take advantage of the opportunity

exploratory research

Used when researches need to explore something about which they do not have much info; When info is limited, such as when a firm enters a new market or when a firm wants new insights from consumers HOW IT'S CONDUCTED: interviews and/or observation TYPE OF HYPOTHESIS: questions designed to gain broad understanding EXAMPLE: Salma and Ricardo want to start a podcast centered on Chicano culture, but they are not sure if there is enough demand for it. They do exploratory research in the form of personal interview to determine whether it makes sense to go ahead with their plan.

Benefits of using licensing to enter markets include ______. (select all that apply) reduction in the effects of increased regulation greater knowledge of the local market competition with the licensee licensees using trademarks however they wish

a reduction in the effects of increased regulation greater knowledge of the local market

MARKET ENTRY STRATEGIES: Direct ownership

actively managing an overseas facility

Companies start the marketing research process by ______. clearly defining the problem setting general research goals thinking up a plan for answering the research question analyzing collected data to gain insights

clearly defining the problem

Causal research investigates how an independent variable, known as the ______, affects a particular dependent variable, known as the ______. data; symbol research; observation cause; effect demographic; product

cause; effect

Daphne works as a marketer for WFB Shoes. She currently has two problems she is attempting to solve using the marketing research process. She knows some general information about the first problem, but she needs to fill in the gaps with ______ research to obtain demographic and other key information that will answer the questions who, what, when, where and how. She knows almost nothing about the second problem, so she will conduct ______ research to help understand the issue at hand.

descriptive; exploratory

casual research

used to understand the cause-and-effect relationships among variables; When clarifying cause-and-effect relationships between independent and dependent variables HOW IT'S CONDUCTED: experiments, often in a store setting TYPE OF HYPOTHESIS: questions that assess why something happens ex: Marketers at Bickford's Grocery chain are stumped: sales of cereal are increasing in some of their stores and decreasing in others. They perform experiments at each store to assess why this is happening.

descriptive research

used when researchers have a general understanding of a problem or phenomena but need to describe it in greater detail to enable decision making; When the specific details of a market are not well defined (i.e., who what when where how) or when firms want to better understand consumer thoughts, needs, and attitudes HOW IT'S CONDUCTED: surveys and/or focus groups TYPE OF HYPOTHESIS: multiple and specific questions to gain specific understanding ex: Alford Electronics wants to evaluate the morale of its staff. Researchers use a combinatin of surverys, focus groups, and observational methods to answer the questions who, what, when, where, and how?