MKTG 3832 Exam 2

d. Labor conditions in different countries

Which of the following factors is most likely to be included in political environment? Answers: a. Exchange rate fluctuations in a country b. Level of natural resources in a country c. Inflation levels in different countries d. Labor conditions in different countries

c. economic

A nation's basic system of transportation networks, communication systems, and energy facilities form a part of its _____ environment. Answers: a. social b. legal c. economic d. political

b. international business expansion

A nation's size, per-capita income, and stage of economic development determine its prospects as a host for _____. Answers: a. free-trade association b. international business expansion c. public private partnership d. regional economic integration

e. ​Yes, by obtaining feedback and evaluating performance.

A new employee in your company is confused. She was hired to help with purchasing, but she's been told that she will be busiest after purchases have been concluded -- in other words, after vendors have been chosen and their goods have been supplied. Will this employee be involved in the organizational buying process? Answers: a. ​Yes, by evaluating proposals. b. ​No, because she will not have a say in vendor selection. c. ​Yes, by qualifying vendors. d. ​No, because the process will be over when she gets involved. e. ​Yes, by obtaining feedback and evaluating performance.

c. It may cause the loss of U.S. jobs to cheap labor in Mexico.

A regional business association has asked you to participate in a panel discussion about NAFTA. Your company has benefited greatly from this accord, so you plan to strongly defend it. However, you must prepare to counter common criticisms of NAFTA, including: Answers: a. It is leading to controversial political integration among the member nations. b. It may encourage dumping of U.S. goods into Canada. c. It may cause the loss of U.S. jobs to cheap labor in Mexico. d. It has not been in existence long enough to have an effect. e. It includes an unwieldy number of member nations.

a. franchising.

A successful German fitness center would like to expand to other areas of Europe such as France and Spain. The company has strong brand recognition in Germany and would like this to translate to new markets. The fitness center's best option for a market entry strategy is: Answers: a. franchising. b. joint ventures with fitness centers in Spain and France. c. acquiring fitness centers in other countries. d. an international division.

c. Searching for and qualifying potential sources

Adam, a purchasing agent for an automobile manufacturer, is making a list of payroll services suppliers available in the market. In which stage of the organizational buying process is Adam? Answers: a. Recognizing a problem or opportunity b. Describing the characteristics of the needed service c. Searching for and qualifying potential sources d. Determining the characteristics and quantity of the needed service

a. Walmart

Which of the following firms is ranked as the world's largest company in terms of annual sales? Answers: a. Walmart b. Royal Dutch Shell c. General Electric d. ExxonMobil

d. subcontracting

Alumna, a ceramics-manufacturing company in Denmark, is trying to market its products in Bulgaria. The company has assigned the production of its goods to a local company in Bulgaria to take advantage of the low labor costs and also to avoid the import duties on the products. In this case, the strategy used by Alumna for entering foreign markets is an example of _____. Answers: a. sole sourcing b. licensing c. exporting d. subcontracting

c. export-management company.

An organization that provides first-time exporters with expertise in locating foreign buyers, handling paperwork, and conforming to local labeling and testing laws is called a(n): Answers: a. export facilitator. b. export-trading company. c. export-management company. d. trade assistance corporation.

a. commercial market

At American Military Uniforms, Inc., workers sew dozens of different uniform styles that are sold under contract to the U.S. Army, Navy, Marines, Air Force, and Coast Guard. The sewing machines and lights in the factory require a tremendous amount of electrical energy, which is supplied by Northern Power Corporation. In this context, AMU's purchase of electricity from Northern Power belongs to the _____ component of the business-to-business market. Answers: a. commercial market b. governmental organizations c. trade industries d. institutions

b. demographic

Bobby Flay is a popular celebrity chef who is famous for his use of the grill to create his signature dishes. Recently, Bobby Flay debuted a line of grilling accessories and believes these products will be successful because he has a loyal following among men aged 30 to 60. What type of segmentation is utilized for this new line of grilling accessories? ​ Answers: a. Benefit b. Demographic c. Geographic d. Psychographic

a. farming

In the 1800s, more than 90 percent of Americans worked in the _____ industry. Answers: a. farming b. service c. shipping d. automobile

a. Demographic

Carlita works for Dell Computers in their outbound call center as an inside sales representative. She primarily focuses on small businesses - those with fewer than 10 employees. Based on Carlita's customers, what type of segmentation is Dell using? Answers: a. Demographic b. Customer-based c. End-use application d. Purchase category

c. Consumer

Cecile is an avid cook and enjoys spending time in the kitchen as well as watching shows on the Food Network. She recently remodeled her kitchen and purchased new appliances. Since she enjoys cooking so much, Cecile purchased a commercial range from a local restaurant supply store and it features double ovens and 12 burners. Her contractor had to make some modifications to enhance the safety of this stove for use in her home but no other changes were needed. What type of product is the stove in the context of this example? Answers: a. Business b. Convenience c. Consumer d. Shopping

a. create an international division.

Crazy Crackerz is a very successful cracker and chip company known for its outrageous flavors. The company is ready to sell their products abroad but knows their cracker and chip flavors may need to be customized in each foreign market. Crazy Crackerz has a significant amount of money and resources to invest in this foreign expansion. The company should: Answers: a. create an international division. b. enter into a joint venture with a foreign snack foods company. c. export the product using a straight extension strategy. d. license the company's products.

c. competitive

Despite being the world's largest retailer, Walmart did not succeed in Germany. German customers were not accustomed to greeters at store entries, could find lower prices on groceries in local stores, and the employment of grocery baggers was unappealing to German's who were used to self-service formats. Walmart failed to fully understand the international _________ environment. Answers: a. political-legal b. economic c. competitive d. technological

e. ​Segment profiles are used to describe similarities among members of a market segment, and to explain differences among members in separate market segments.

Developing a relevant user profile is the first step in the market segmentation process. How are segment profiles used to identify the typical customer in each segment?​ Answers: a. ​Segment profiles are used to describe similarities among members of a market segment, and to explain similarities among members in separate market segments. b. ​Segment profiles are used to describe differences among members of a market segment, and to explain differences among members in separate market segments. c. ​Segment profiles are used to describe preferences among members of a market segment, and to explain preferences among members in separate market segments. d. ​Segment profiles are used to describe differences among members of a market segment, and to explain similarities among members in separate market segments. e. ​Segment profiles are used to describe similarities among members of a market segment, and to explain differences among members in separate market segments.

c. buyer; decider

Elise Mayes, the office manager for a mid-sized real-estate agency, DeMarco Realty, is currently researching high-speed photocopiers to replace one of their aging models. She's received three proposals from three different suppliers, and she's selected the best one. Now she's just waiting on Shandra DeMarco's approval to make the purchase. In this case, Elise is the ___ and Shandra is the ______. Answers: a. buyer; influencer b. influencer; buyer c. buyer; decider d. gatekeeper; buyer

a. importing and exporting.

Global trade can be divided into two categories: Answers: a. importing and exporting. b. franchising and exporting. c. manufacturing and service. d. retail and online.

d. Varying literacy rates

Many American fast food sellers have engaged in product adaptation, changing their menus to accommodate consumer tastes in countries like India and Japan. Other Western firms doing business abroad have engaged in promotion adaptation. Which of the following factors would most likely prompt a firm to use the latter strategy? Answers: a. Price competition b. Currency fluctuations c. Poor channels of distribution d. Varying literacy rates

b. People and organizations with purchasing power, authority, and willingness to buy goods and services

Marketers adopt different strategies in order to promote their products in the market. But what is a market? Select the best definition of market from the choices below: Answers: a. People and organizations who regulate the manufacture of goods and services available for purchase b. People and organizations with purchasing power, authority, and willingness to buy goods and services c. Spaces or outlets where goods and services can be purchased d. Specific people and organizations likely to buy certain goods and services e. Goods and services that serve both the consumer and business

a. Evaluate the proposals and select a supplier

Megan is in charge of hiring a graphic designer to create her company's next annual report. She had asked for proposals from five different designers or design agencies, and she's received four. She's not quite sure what to do next, so she asks her coworker, Jenna, for help. What does Jenna advise Megan to do? Answers: a. Evaluate the proposals and select a supplier b. Select an order routine c. Define the characteristics of the needed product or service d. Search for and qualify suppliers

a. Her coworker, Jenna, explains that the designer they used last year was reasonably priced and excellent to work with.

Megan is looking for a graphic designer to create her company's next annual report, so she is reviewing portfolios from about a dozen different designers. Now she needs to choose five, and ask each one to submit a written proposal describing their ideas, process, timeline, and fees. Which of the following actions will have the greatest interpersonal influence on her choice of five designers? Answers: a. Her coworker, Jenna, explains that the designer they used last year was reasonably priced and excellent to work with. b. The VP of the company reminds her that he needs to see at least three written proposals before helping her choose a designer. c. Her boss, Sabrina, gives her a budget to work with. d. Her unemployed boyfriend, Ty, asks if he can submit a proposal, even though he's not a designer.

a. Liberalizing world financial services

Which of the following is one of the major policy initiatives of the WTO? Answers: a. Liberalizing world financial services b. Increasing the average level of education worldwide c. Promoting and protecting the environment d. Regulating automobile production by less-advanced nations

d. Knowing InfoTech's proposed budget for the system

Paolo sells telephone systems for medium and large businesses. He's just heard through the grapevine that InfoTech, a company with about 500 employees, will soon be in the market for a new telephone system, and he would love to land the account. Which of the following organizational factors is least likely to help Paolo earn this business? Answers: a. Discovering what InfoTech decision makers look for in a proposal b. Understanding how InfoTech's purchasing process works c. Identifying the key decision makers within InfoTech d. Knowing InfoTech's proposed budget for the system

a. product invention strategy.

Proctor & Gamble (P&G) recognized a need for clean drinking water for more than 1 billion people in developing countries. The company developed PuR, a water purification packet that eliminates disease causing microorganisms in drinking water. P&G is utilizing a: Answers: a. product invention strategy. b. product adaptation strategy. c. dual adaptation strategy. d. straight extension strategy.

a. ​undifferentiated

Progresso Soup has a line of hearty soups that are promoted to all consumers using a single marketing mix. The company is utilizing ______ marketing.​ Answers: a. ​undifferentiated b. ​concentrated c. ​differentiated d. holistic

c. mass marketing.

The marketing strategy that focuses on producing a single product and marketing it to all customers is called: Answers: a. differentiated marketing. b. micromarketing. c. mass marketing. d. concentrated marketing.

a. usage rate segmentation.

Social media has assumed a major role in the promotion of goods and services. Almost all television advertising today includes calls to "like us on Facebook" or "follow us on Twitter." While most U.S. citizens engage in some form of social media, some only do this occasionally while others are constantly on their computer or phone accessing social media. Just like with social media, consumer vary in their consumption of almost all products and services. Recognizing these differences can lead a firm to employ: Answers: a. usage rate segmentation. b. demographic segmentation. c. benefits sought segmentation. d. brand loyalty segmentation.

c. reseller

Susan works for Fashion Supply, a women's clothing wholesaler. Her husband is employed by Target, the popular retailer. Their older son has a job with a gourmet butcher, which supplies top-quality cuts of meat to fancy restaurants. Their younger son was just hired by Lumber Liquidators, the discount flooring seller. Despite the diversity of their employers, all of Sue's family members work in the ____ segment of the business market. Answers: a. institutions b. consumer c. reseller d. commercial

b. WTO

The _____ serves as a forum for trade negotiations, and mediates trade disputes between countries throughout the world. Answers: a. GATT b. WTO c. European Union d. FTAA

c. a nation's currency becoming more or less valuable compared with those of other nations.

The fluctuation in exchange rates results in: Answers: a. a country employing additional tariffs and quotas on imports to manage fluctuations. b. a relatively rapid economic growth and periods of relative stagnation or decline. c. a nation's currency becoming more or less valuable compared with those of other nations. d. the possibility of an economy reaching short-run equilibrium at levels below or above full employment.

a. to provide some form of public benefit.

The government category of the B2B market primarily buys products: Answers: a. to provide some form of public benefit. b. to sell it to the final consumers. c. to export them to other countries. d. to improve its resale value.

e. Mandatory sustainability standards

Thousands of country representatives have attended the Public Forum of the World Trade Organization (WTO) since it was launched in 2001. Which topic would be unlikely to be put on the agenda for the meeting? Answers: a. Job creation b. Public-private partnerships c. Role of innovation and intellectual property d. Infrastructure development e. Mandatory sustainability standards

d. export-trading company

VB Group, a South African firm, is a leading supplier of African agricultural products to the world. It buys products from the domestic producers and resells them in international markets. The company maintains complete control over the marketing and distribution of the products in the foreign markets. VB Group is an example of a(n) _____. Answers: a. franchisee b. export-management company c. subcontractor d. export-trading company

a. business product.

When a product is used in the production of another good that is destined for resale, the product is considered as a(n): Answers: a. business product. b. consumer product. c. end product. d. used product.

b. social-cultural environment.

When expanding to the Indian market, McDonald's understood that the cow was a sacred animal in the Hindu religion - the largest religion in India. As a result, McDonald's in India does not sell beef products, but rather chicken, paneer, and veggie burgers. This is a result of the international: Answers: a. technological environment. b. social-cultural environment. c. economic environment. d. political-legal environment.

b. Decider

Which of the following buying center participants chooses a good or service, although another person may have the formal authority to complete the sale? Answers: a. Boundary spanner b. Decider c. Gatekeeper d. Influencer

d. Liberalizing world financial services

Which of the following is one of the major policy initiatives of the WTO? Answers: a. Regulating automobile production by less-advanced nations b. Promoting and protecting the environment c. Increasing the average level of education worldwide d. Liberalizing world financial services

b. Obtaining feedback and evaluating performance

Which of the following is the final step in the business buying process? Answers: a. Acquiring and analyzing proposals b. Obtaining feedback and evaluating performance c. Evaluating proposals and selecting suppliers d. Selecting an order routine

c. The commercial market, which includes anyone who acquires products to support production of other goods and services

Which of the following is the largest segment of the business market? Answers: a. Institutions such as hospitals and churches b. Trade industries, which include retailers, wholesalers, and resellers c. The commercial market, which includes anyone who acquires products to support production of other goods and services d. Government organizations, including the military and state and federal governments

b. The buying center includes everyone involved in any aspect of the buying process.

Which of the following is true of a buying center in an organization? Answers: a. The composition of the buying center remains the same for all purchase situations. b. The buying center includes everyone involved in any aspect of the buying process. c. The buying center is an integral part of a firm's formal organizational structure. d. It is a group of people in an organization who are responsible for developing new product concepts.

c. Omitting any detailed budgetary information so the hotel's buyer isn't put off by the high costs.

You are a flower wholesaler, and you've become good friends with one of your customers, a florist. She is submitting a proposal to become the floral arrangement provider for a huge hotel in New York City. If she gets the contract, it will be great for your business as well, so you want to help her write an excellent proposal that will impress the decision makers when they evaluate all of the proposals. Which of the following do you NOT recommend? Answers: a. Adding a complete client list and several client testimonials that demonstrate her excellent reputation. b. Creating a recommended delivery schedule so the hotel's buyer knows what to expect from her. c. Omitting any detailed budgetary information so the hotel's buyer isn't put off by the high costs. d. Including photographs of floral arrangements that demonstrate her ability to deliver what the hotel's buyer wants and needs.

b. What budget constraints exist in various police departments

You spend a lot of time with the police, but not for bad behavior. Instead, you're a sales rep for a company that produces scanners, radios, and other equipment for use in law enforcement. Which of these is NOT an organizational factor affecting the purchase process in the organizations you work with? Answers: a. How and when proposals should be submitted to various police departments b. What budget constraints exist in various police departments c. What pricing guidelines are employed by different police departments d. Who the key purchasing decision makers are in each police department

b. You and the decision maker at Regal need to establish a formal evaluation and feedback process that works for both of you.

You thought winning the contract to supply floral arrangements for the exclusive, high-end Regal Hotel was going to be great for your business, but now it seems like it's more trouble than it's worth. You've been inundated with random phone calls, texts, and emails from the hotel manager, the maintenance manager, and seemingly every other employee containing all kinds of comments and complaints. What is the problem, and what is the best way to solve it? Answers: a. You and the decision maker at Regal need to develop an order routine that works for both of you. b. You and the decision maker at Regal need to establish a formal evaluation and feedback process that works for both of you. c. Regal did not accurately define their requirements before requesting a proposal, so you should ask for a complete contract review and renegotiation. d. You and the decision maker at Regal did not clearly communicate your respective needs during the proposal stage, so you should terminate the contract.

b. As they'll be searching for qualified potential service providers, you should ask for a meeting with the decision makers to make them aware of your firm.

You're a partner at O'Leary, Ford, and Bradley Legal Services, and one of your responsibilities is to get new business for your law firm. You've heard from a friend that a mid-sized corporation in your city has terminated their agreement with their old law firm and is looking for a new one that's a better fit for their needs. What do you expect them to do next, and how should you respond? Answers: a. As they'll be gathering and analyzing proposals, you should prepare a written presentation about your firm's services. b. As they'll be searching for qualified potential service providers, you should ask for a meeting with the decision makers to make them aware of your firm. c. As they are just now recognizing a need, you should ask for a meeting and help them define what they're looking for in their next service provider. d. As they'll be searching for qualified potential service providers, you should hope they'll consider your firm's services.

c. Reporters' media coverage of fashion industry events

You're an account manager in New York City's garment district, and you sell buttons, zippers, and other similar items to clothing manufacturers in the area. You know that your customers' opinions are always influenced by the people around them, but which of the following interpersonal influences is least likely to affect your customers' buying decisions? Answers: a. Employees' comments about the easiest and best products to work with b. Designers' requests for particular items. c. Reporters' media coverage of fashion industry events d. Colleagues' and business partners' feedback on the best suppliers

c. The lower cost of your products as compared to domestic products

You're the marketing director for a company that imports fruit from South America into the United States. This past year, bad weather ruined most of the domestic crops, which creates an opportunity for you to sell more of your imported fruit. In this context, when marketing to grocery stores and food product manufacturers, which environmental factor should you emphasize? Answers: a. The delicious taste and freshness of your products b. The volume of products you can deliver c. The lower cost of your products as compared to domestic products d. The wide variety of fruits you have to offer

b. Tariffs

_____ are the taxes levied on imported goods. Answers: a. Import quotas b. Tariffs c. Excise duties d. Subsidies

a. Tariffs

_____ are the taxes levied on imported goods. Answers: a. Tariffs b. Excise duties c. Import quotas d. Subsidies

c. Foreign licensing

_____ is a contractual agreement that grants marketers in other countries the right to distribute a firm's merchandise or to use its trademark, patent, or process in a specified geographic area. Answers: a. Offset agreement b. Sole sourcing c. Foreign licensing d. Value engineering

b. Exporting

_____ is a form of global marketing that involves a continuous effort in marketing a firm's merchandise to customers in other countries. Answers: a. Social referencing b. Exporting c. Business process reengineering d. Sole sourcing

c. straight extension

company may choose a ________ strategy to take advantage of economies of scale in marketing and production. Answers: a. product adaptation b. promotion adaptation c. straight extension d. dual adaptation

b. International direct investment

which of the following international market entry strategies is most likely to offer a competitive advantage to the firms and is characterized by high levels of involvement and high risk potential? Answers: a. Foreign licensing b. International direct investment c. Franchising d. Sole sourcing