Marketing Exam 3

T/F A multinational enterprise is a firm that has operations or subsidiaries located in many countries

True

T/F Amazon.com, eBay, Zappos, and a number of other companies engage in e-tailing through their websites

True

T/F All companies, no matter what their size or market position, maintain only one buying center

False

T/F An accounting firm contracts with a local janitorial services company for janitorial services twice a week. The accounting firm is outsourcing for its janitorial service needs

True

T/F An embargo occurs when a government suspends trade with a particular country

True

T/F An example of a business market would be farmers

True

T/F As the internet and digital communication technologies have advanced, marketers are able to target markets more precisely

True

T/F Buyers in producer markets purchase either raw materials, semifinished products, or finished products

True

Home Depot has an iOS program that allows users to match colors in photographs with the store's selection of carpets. This is an example of a(n) a. application (app) b. widget c. voice-activated system d. digital system e. interactivity

a. application (app)

What are the two ways governments make purchases? a. bids and negotiated contracts b. contacting previous suppliers and bids c. cash or credit d. lottery system and contract negotiations e. request for new purchases and recurring order

a. bids and negotiated contracts

T/F A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at the expense of U.S. companies and workers

False

T/F A quota is the suspension, by a government, of trade in a particular product

False

T/F An accessible channel means the marketer knows who the customer is and can specifically address that person

False

T/F Earned media is the use of traditional print and broadcast advertising as well as advertising on social networks

False

T/F Firms with internationally integrated structures are the least likely to engage in direct ownership activities internationally

False

T/F For business products, the concept of inelasticity of demand applies equally to industry demand for the product and to demand for an individual supplier

False

T/F Social media should be included only in marketing strategy

False

T/F During the early stages of international development, most firms make few, if any, adjustments to their organizational structure to accommodate international sales

True

T/F Globalization of marketing involves developing marketing strategies as though the entire world (or major regions of it) were a single entity

True

T/F Industrial classification systems allow marketers to divide business customers into groups based mainly on the types of goods and services provided

True

T/F Industrial demand derives from consumer demand

True

T/F reseller markets consist of intermediaries that buy finished goods and resell them for profit

True

T/F To obtain the names of specific potential customers, the business marketer is well advised to employ the services of a commercial data company, since this is both cheaper and faster than any other method

False

Wegmans recently placed an order with the Applegate Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Wegmans is ordering 100 cases of hotdogs. Wegmans orders this product on a regular basis. What type of purchase does this week's purchase represent?

Modified rebuy

Kia Motors purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of necessary characteristics, standards of quality, and other information that is expressed by Kia Motors. This set is called.....

Specifications

In relation to international marketing, which of the following best describes direct ownership?

a company owns subsidiaries or facilities in foreign countries

Both Adidas and Brooks standardize many of their shoe models and colors worldwide, which is an example of a. globalization b. customization c. nationalization d. culturalization e. internationalization

a. globalization

Which type of business market tends to have the most complex buying procedures? a. government b. institutional c. retailer d. producer e. reseller

a. government

Institutional markets are a. organizations that seek nonbusiness goals b. federal and state government units c. consumers who buy products for their own use d. state or local government units e. intermediaries who resell goods to make a profit

a. organizations that seek nonbusiness goals

Which of the following statements about reseller markets is false? a. resellers are not concerned with how much space the product takes up as long as it has a high price b. resellers are concerned with the markup percentage they can get on the product c. resellers are concerned with the availability of technical and promotional assistance from the producer d. resellers want producers to be able to supply adequate quantities of the product e. resellers are concerned with the level of demand for the product

a. resellers are not concerned with how much space the product takes up as long as it has a high price

One of the guaranteed constants in the global business environment is a. nationalism b. instability c. tariffs d. taxes e. war

b. instability

Most business purchases can be classified as belonging to one of three types: a. delinquent, repetitive, or delivered b. modified rebuy, new-task, or straight rebuy c. delinquent, new-task, or reciprocal d. rebuy, reciprocal, or delayed e. repetitive, new-task, or modified rebuy

b. modified rebuy, new-task, or straight rebuy

Which of the following regulates and makes rules for privacy, fraud, and misappropriation of copyrighted intellectual property, as well as other illicit internet activities? a. Federal Internet Commission b. Federal Communication Commission c. Federal Trade Commission d. Federal Bureau of Investigations e. Individual states

c. Federal Trade Commission

What is the primary distinction between a joint venture and a strategic alliance in international marketing? a. strategic alliances are only formed between companies from well-developed countries whereas joint ventures are between companies from economically-diverse countries b. a joint venture involves only two companies whereas a strategic alliance is formed between three or more companies c. a joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work together d. a joint venture is formed between companies with dissimilar product offerings while a strategic alliance is formed between companies with similar product offerings e. a joint venture is simply a financial investment in a foreign firm while a strategic alliance involves more than just financial support

c. a joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work together

The purchase of products from a foreign source is called a. exportin b. dumping c. importing d. licensing e. venturing

c. importing

When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in a. international marketing b. global marketing c. limited exporting d. product licensing e. unplanned exporting

c. limited exporting

_____ are audio or video files that can be downloaded from the internet with a subscription that automatically delivers new content to listening devices or personal computers a. wikis b. blogs c. podcasts d. virtual realities e. social networks

c. podcasts

What is a primary difference between business and consumer buyers? a. consumer buyers require more product information than business buyers b. repeat sales are more common with consumer buyers than business buyers c. consumers primarily buy inexpensive items; businesses only buy expensive items d. business buyers generally place larger orders than consumer buyers e. business purchases are made by one individual whereas families make consumer purchase together

d. business buyers generally place larger orders than consumer buyers

Which of the following is true about characteristics of business buying? a. business purchasing decisions are typically made by one person b. the contract regarding terms of sale of raw materials and component parts is likely to be a short-term agreement c. orders by business customers tend to be smaller than individual consumer sales d. discussions and negotiations associated with business purchases can require considerable marketing time and selling effort e. supplier may prefer to sell to customers who place small orders

d. discussions and negotiations associated with business purchases can require considerable marketing time and selling effort

The term dumping refers to the sale of a. products sold in foreign markets that cannot be sold in the United States b. products sold in foreign markets at prices above those charged in the United States c. all discontinued U.S. products in foreign countries d. products sold in foreign countries at unfairly low prices e. products sold in foreign markets that cannot pass safety standards in the United States

d. products sold in foreign countries at unfairly low prices

_____ are more consumer-driven than traditional media a. television commercials b. radio spots c. print ads d. social media e. billboard advertisements

d. social media

Sysco has developed a website that allows employees to create a profile and connect with coworkers for the purpose of getting acquainted and building a work-related network. This is an example of a a. virtual reality b. podcast c. recruiting tool d. social network e. employment opportunity

d. social network

One trend that has caused consumer-generated information to gain importance is a. the recession b. the globalization of companies c. the increase in store brands d. the increase of consumers using digital media to publicize their own product reviews e. the increase in consumer buying power

d. the increase of consumers using digital media to publicize their own product reviews

Which of the following alliances/agreements is the United States NOT a part of? a. NAFTA b. APEC c. GATT d. WTO e. MERCOSUR

e. MERCOSUR

A _______ is a type of software that creates an interface that enable users to add or edit the content of some types of webites a. widget b. digital diary c. blog d. podcasting e. wiki

e. wiki

When the city of Portland buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered a. an institutional sale b. a reseller purchase c. a regulatory sale d. a product purchase e. a government purchase

e. a government purchase

Inelastic demand simply means that a. when price goes up, demand goes down b. when supply is reduced, the price will increase c. buyers will not make a new-task purchase d. buyers will not make a modified rebuy purchase e. a price increase or decrease will not significantly change the demand for an item

e. a price increase or decrease will not significantly change the demand for an item

Smartphones contain _______ that help consumers access more information about businesses a. treatments b. digits c. widgets d. actions e. applications

e. applications

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics? a. negotiation b. sampling c. homogeneous selection d. inspection e. description

e. description

______ is a popular mobile phot-sharing site a. youtube b. facebook c. tumblr d. twitter e. instagram

e. instagram

If Kyrgyzstan levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Kyrgyzstan, its business and citizens would be paying a(n)....

import tariff

The NAICS classification is based on....

production activities

The role of an export agent is to a. bring buyers and sellers from different countries together and collect a commission for arranging sales b. purchase products form different companies and sell them to foreign countries c. help a firm to make direct investments in foreign countries d. contact domestic firms about the opportunities available in exporting e. arrange for licensing agreements between domestic and foreign firms

a. bring buyers and sellers from different countries together and collect a commission for arranging sales

_______ uses the internet, mobile, and interactive channels to develop communication and exchanges with customers a. digital marketing b. digital media c. electronic marketing d. digital electronics e. E-marketing

a. digital marketing

When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Starbucks is currently examining the _______ forces in its environmental analysis a. economic b. cultural c. ehtical d. technological e. legal

a. economic

T/F The four categories of consumer markets are producer, reseller, government, and institutional

False

T/F The fourth stage in the business buying decision process is that of searching for products and suppliers

False

T/F Brand name, product characteristics, packaging, and media allocation are among the easiest marketing mix variables to standardize around the world

False

T/F E-marketing includes the use of mobile phones, but not digital outdoor marketing devices

False

T/F From a cultural perspective, countries that are members of the European Union tend to act as a single entity

False

T/F Opportunities for international marketers are limited to industrial nations with the highest incomes

False

T/F Orders placed by business customers are usually smaller and more numerous than consumer sales

False

T/F The increase in consumers who publish their own thoughts and product reviews through digital media has caused consumer-generated information to be less important because some of the information is false

False

T/F There is little or no difference between wholesalers' customers and retailers' customers

False

T/F Connectivity is the use of digital networks to provide linkages between information providers and user

True

T/F Customs and taboos are culture-bound and should be taken into consideration when products are marketed in a foreign environment

True

T/F Digital marketing can be viewed as a new distribution channel that helps businesses increase efficiency

True

T/F Domestic marketing involves marketing strategies aimed at markets within the home country

True

T/F Small businesses can use digital media to develop strategies to reach new markets and access inexpensive communication channels

True

T/F The increase in government purchases has resulted partly from the increase in the number of services provided by the government

True

T/F Today many firms are more interested in building marketing strategies around similarities that exist among countries than customizing around their differences

True

T/F When purchasing products, business customers are especially concerned about quality, service, price, and supplier relationship

True

T/F While consumers can use websites to access more information, marketers can also use the same sites to get information on the consumer

True

The United States Air Force purchases uniforms from a single supplier. For the last 25 years, the trousers purchased from this supplier have not changed and have been bought every six months, in multiple sizes. This example is called a a. straight rebuy b. modified rebuy c. new-product purchase d. standard order e. repetitive purchase

a. straight rebuy

One of the biggest mistakes a marketer can make when engaging in digital marketing is to a. treat it like a traditional marketing channel b. focus on competitor's digital marketing efforts c. fail to devote sufficient resources to it d. focus on technology e. focus on price

a. treat it like a traditional marketing channel

Marketers call the internet a pull medium because a. users determine which websites they are going to view b. they determine which websites consumers are going to view c. they have great control over the content to which users are exposed d. social networks have great control over the content to which users are exposed e. users get pulled along by social media influencers

a. users determine which websites they are going to view

Retailers like Staples and PetSmart are considered to be members of which business market? a. customer b. reseller c. institutional d. producer e. government

b. reseller

Digital media have created opportunities for companies to a. gain more control over what the consumer sees b. target specific markets c. offer the same king of experience as a brick and mortar store d. manage information that is disseminated through the Web e. stimulate all five senses during the online shopping experience

b. target specific markets

A friend of yours starts his own business. He would like to expand his client base to include the government, but he believe his small business would be ignored. Based on your knowledge from the text, you tell him a. that he's absolutely right, the government doesn't deal with small businesses b. the government buys products from all sizes of business, but there is some red tape c. the government rarely considers new suppliers when making purchasing decisions d. that any government, federal, state, or local would laugh at the size of his business e. although the government will deal with small businesses, he will never make a profit off a government contract

b. the government buys products from all sizes of business, but there is some red tape

The fact that consumers tend to trust other consumers over corporations and often rely on the recommendations of friends, family, and fellow consumers when making purchasing decisions has fostered the growth of sites like a. pinterest b. yelp c. tumblr d. google+ e. reddit

b. yelp

Which of the following characteristics distinguish online media from traditional marketing? a. experience, networking, and personal contact b. social networking, personal contacts, control, and salesmanship c. addressability, interactivity, accessibility, connectivity, and control d. environment, responsiveness, customization, and affordability e. dynamic responsiveness, control, friendliness, and attention-getting

c. addressability, interactivity, accessibility, connectivity, and control

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called a. a joint venture b. exporting c. a strategic alliance d. licensing e. contract manufacturing

d. licensing

The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product will be sold is known as a. licensing b. contract manufacturing c. outsourcing d. offshore outsourcing e. offshoring

d. offshore outsourcing

As digital communication technologies have advanced, it is possible for marketers to a. have more control over their product's positioning b. have more control over the processing of information c. have more control over people's perceptions of their business d. be more selective about news releases regarding their company e. reach markets that were previously inaccessible

e. reach markets that were previously inaccessible

All of the following are important concerns of business customers except a. obtaining products for which the quality level is consistent b. obtaining a level of quality that meets specifications c. achieving a specific level of quality in the products offered to target markets d. obtaining products that exceed specifications to ensure the best possible product performance e. supporting customers with service they except

d. obtaining products that exceed specifications to ensure the best possible product performance

Product specifications are best described as a. defective product return policies b. necessary characteristics and level of quality c. numbers of quality inspections required d. comparisons to similar products e. descriptions of a product

b. necessary characteristics and level of quality

Franchising offers all the following benefits for franchisors except a. franchise agreements require a certain standard of behavior from franchisees, which helps protect the franchise name b. franchisors can retain control of their name while increasing global penetration of their products c. the franchisee's revenues stream is fairly consistent because franchisors pay fixed fees and royalties d. the franchisor's revenue stream is fairly consistent because franchisees pay fixed fees and royalties e. franchisors do not have to put up a large capital investment

c. the franchisee's revenues stream is fairly consistent because franchisors pay fixed fees and royalties

Which of the following is often used to raised revenue for a country and/or to protect domestic products? a. quota b. warning label c. embargo d. import tariff e. exchange control

d. import tariff