international marketing final
Mattel toys thought that Barbie would be as popular in Japan as it is in the United States. This assumption was due to the self-reference criterion (SRC).
true
In the tech world, about 90% of the world's nearly one billion PCs run on Microsoft's operating system, while 80%...
bargaining power of suppliers
The three symptoms of the innovator's dilemma includes the following except: a. Staying committed to a current, profitable technology b. Failing to provide adequate levels of investment to new and possibly risky technologies c. Company is responding to the needs of established customers d. Being competitor-oriented
being competitor-oriented
Campbell Soup is making significant inroads into Japan $500 million soup market as time pressed people place a premium on convenience. They type of consumer segmentation by Campbell soup is
benefit
________ represents the cumulative added value
brand equity
Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries?
buyer and supplier power
jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low:
buyer power
Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction
cash in advance
Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect?
co-branding
One of the distinguishing features of a centrally planned capitalism economic system is
command ownership
The words that are the spoken or written communication elements in advertisement are
copy
A box of Crest toothpaste contains a coupon entitling the buyer to save
cross selling
Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation?
industrial products
The disadvantages of joint venturing can include all of the following expect
joint ventures allow partners to achieve synergy
In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has
layers of advantage
Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to
loose bricks
The power distance dimension reflects the degree of trust among members of society. Tus, this higher the power distance (PDI) the:
lower the level of trust
Starbuck's sells beans from india in their coffee shops before they sold they opened new Starbucks in Indian hotels and cafes
market penetration
Which of the following is true about proper use of term "countertrade"
"Countertrade" is a blanket term that refers to several different types of business transactions
McDonalds serves McAloo Tikki Burger in india, McRice Burger in Malaysia......
A combo of global and local marketing mix elements
Today Microsoft lags behind new industry entrants in high-growth, consumer-oriented areas such as search and social networking. Which of the principles of disruptive innovation does this fact pertain to
A company's capabilities define its disabilities
Which of the following is not characteristic of direct marketing?
A marketer relinquishes control of product when it is turned over to channel intermediaries
Licensing as a market entry has several disadvantages and opportunity costs, which do not included
Adaptations by license to fit local taste
Benefits for using sales agents includes all of the following except:
Agents can eventually replace manufacturer's own sales people
Which of the following criteria should marketers use when assessing opportunity in global target markets? a. Current size b. Growth potential c. Competition d. Compatibility with company overall objective e. All of the above
All of the above
Which of the following would constitute a copyright violation?
All of the above (manufacturing and selling illegal videocassette copies of "Spiderman 2", manufacturing and selling illegal copies of Levi "501" jeans, printing and selling illegal copies of Harry Potter books)
The cultural environment of a country is best defined by which characteristics?
Attitudes, beliefs, and values
Psychographic segmentation involves grouping people in terms of their
Attitudes, values and lifestyle
Which of the following shows the correct order of the product adoption process?
Awareness- interest- evaluation- trial- adoption
Transnational companies, such as Toyota and Honda, have characteristic features that include
Being in both global markets an utilizing global supply chains, characterized by a mind-set of being "Stateless", using both localized and standardized elements in marketing programs
Which of the following can be defined as a business philosophy that values two-way communication between a company and individual customers?
CRM (Customer relationship management)
Restrictive administrative and technical regulations can create barriers to trade which may take all of the following forms except:
Common agriculture policies
Suppose the World Corp signs a contract to build a lumber processing plant in Siberia. If World Corp signs a second contract ageing to take partial payment for the plant in fothe formof lumber products produced at the palnt it is engaging in
Compensations trading
balance of payments is a record of all economic transactions between the residents of a county and the rest of the world. It is divided into the current and capital accounts. Current accounts include all of the following excep
Portfolio investments
An irrevocable letter of credit transfers the payment obligation for an export deal from the buyer to the buyer's
bank
A vice president of a shoe company was in India to assess the market. He found that many people in the southern part of India were walking bare footed. This can be indicative of either the fact that there is a potential market for shoes or there is no market for shoes in that part of the world. To formally confirm one instance or the other the vice-president should:
Conduct research to find the potential and actual customers
After Fidel Castro took power in Cuba in 1959, his government seized control of American property without paying compensation. Coca-Cola, DuPont, Texaco, and dozens of other American companies have filed claims against Cuba seeking financial settlements. Which of the following terms most specifically describes the action Castro took against these companies?
Confiscation
Which of the following most accurately describes the relative length of consumer and industrial distribution channels?
Consumer channels tend to be longer (consist of more intermediaries) than industrial channels.
Which of the following types of duties would be imposed on a company whose home-country government provided export subsidies?
Countervailing duty
A company that engages in global marketing
Creates both standardized and localized products
When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established joint venture
Culturally distant and hard to enter
The form of economic cooperation that calls for 1 eliminating internal RRIES TO TRADE AND 2 establishing common external barriers is known as
Customs union
Physical distribution and logistics are concerned with all but one of the following:
Designing in-store display
Which of the following some of the steps in the market research process in the correct order?
Determine information requirement -> problem definition -> choose unit of analysis -> examine data availability -> assess value of research
Building a prospect base is typically part of which step of the strategic consultative/selling model?
Development of a customer strategy
the introduction of the euro by EU resulted in multifaceted advantaged which include
Elimination of costs associated with currency conversion
A person who assumes that his or her home country is superior to the rest of the world is said to have
Ethnocentric orientation
Global localization means that a successful global marketer must have the ability to think locally and act globally.
FALSE. "Think globally and act locally"
GSP are attractive for several reasons which do not include
Focus on a single national market or a specific problem
Arrange the following in order from lowest to highest
Free trade, custom union, common market, economic union
There are barriers in japan for global marketers in terms of attitudes as well as laws. Barriers include all of the following expect
Goods marketed should have a semblance of western products and services
Direct representation, as opposed to representation by independent intermediaries for exporting in the market country, has several advantages which do NOT include:
Helps selling products directly to the consumer in the market country
Upper-Middle income counties are also known as:
Industrializing counties
As of 2010, Gap operated 2500 sotres in the U.S and more than 500 stores internationally. The company sources most of of its clothing for apparel factories in Honduras. IF Gap would like to open more stores in Japan, primary consideration should include
Industry conditions, sources of competitive advantage, and demand in Japan for U.S style garments.
Cultural influences are also quite apparent in food preparation and consumption pattern and habits. Domino's pizza the world's largest pizza delivery company pulled out of ital. because
Italians perceived its products to be "too American"
One of the key advantages of an EDI (Electronic Data Interchange) system is:
Its transaction formats are universal
According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia?
Long-term orientation
Which of the following principles of disruptive innovation pertains to the notion of agnostic marketing?
Markets that don't exist can't be analyzed
The retail environment in developing countries presents challenges for marketing nonperishable items. In Mexico, Proctor & Gamble, Unilever, Colgate-Palmolive, and other global consumer product companies use ________ for their products:
Mom-and-pop store
As outlined by branding expert Kevin Keller, the benefits of strong brand equity include all of the following except:
More vulnerability to marketing action
Pfizer, Merck, and other pharmaceuticals companies have little choice but to engage in global marketing since
No single market is large enough to recover costs incurred in research
Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter?
Organic growth
Which of the following is not a characteristic of global strategic alliance
Participants agree not to compete in areas unrelated to the alliance
Which of the following is true about revised U.S. patent laws?
Patents are valid for 20 years after the filing date of the application
Targeting the 300 million farmers in india who still use plows harnessed to oxen, john deere engineers created a line or relatively inexpensive no frills tractors. The deere team then realized that the same equipment could be marketed to hobby farmers and acreage owners in the US, a segment that they had previously overlooked. This is an example of _________ strategy
Product extension-communication adaption
Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first. The problem was that Japanese women was clothes in cold water so they done care about all-temperature washing. Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding. However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't product many suds. P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads in Japan changed to cold-water detergent.
Self-reference criterion
Which of the following would not be used by an exporter with a weak home country currency?
Shift sourcing outside home country market
The enlargement of the EU has impacted marketing strategies in the Eurozone counties by a. Making it difficult to export food products from one country to another b. Increasing the cost of production since c. Shifting products from one market to another I the event of shortages d. Reduced tariffs and quotas for products imported from non-EU members
Shifting products from one market to another I the event of shortages
By definition, ______ feature a narrow but deep merchandise mix and high levels of service.
Specialty retailers
Ericsson, IKE and other companies based in Sweden have looked beyond their borders for significant growth market because
Sweden has a smaller population
Three Mexican retailers Famso, Grupo Gigant SA, and Grupo Commercial Chedraui SA have opened stores in the United States. This is an indication of
The Hispanic-American segments represent a great opportunity for marketers
When introduced in the late 1970s, the VCR created new patterns of consumer behavior. For example assuming the user could learn to set the time her or she could take programs to watch
The VCR is a discontinuous innovation and the DVD is a dynamically continuous innovation
Industry convergence means
The coming together of previously separate industries and product categories
"Small markets don't solve the growth needs of large companies" and "markets that don't exist can't be analyzed" are two principles of disruptive innovation, These principles are integral to
The innovator's dilemma
During the past two decades, the world economic environment has become increasingly dynamic. To achieve success, executives and marketers must take into account all of the following except
The struggle b/t capitalism and socialism continues
Danes generally are not afraid of taking chances, they are comfortable doing things that are not carefully thought out or planned. Denmark's "flexicuity" policy combines free labor markets with adjustable welfare benefits. This is an example of the application of Hofstede's typology under the values which highlight:
Uncertainty avoidance
Containerization refers to a company's:
Use of standard-sized shipping boxes that can be transported in various ways
All of the following activities must be performed when goods cross international boundaries except
Using cost based pricing method
to the extent that a country sells more goods an services abroad than it buys, there will be
a greater demand for its currency
A duty that represents a certain percentage of the value of a particular product is an:
ad valorem duty
A firm without much export experience uses the rigid cost based pricing method. Which of the following considerations is the exporter ignoring?
all of the above
According to the authors of the Harvard Business Review article, which of the following is a mistaken assumption that global companies might have about the BOP? a. The poor have no money b. The poor ate too concerned with fulfilling basic needs to waste money on nonessential goods c. People in BOP marketing will be criticized for exploiting the poor d. all of the above
all of the above
Management strategic options pertaining to products that are facilitated by a single European market include
all of the above
The corporate development team at Virgin evaluated more than a dozen proposals each day from outside and within the company. When assessing new product ideas they look for all of the following
all of the above
Which of the following correctly reflects marketing expert David Arnold's recommendations for companies engaged in global market research?
all of the above
Which of the following environmental factors may require marketers to adjust their approach to conducting international as opposed to domestic marketing research? a. Researchers must be prepared for new parameters of doing business b. company personnel must come to grips with a new set of culture-based assumptions about conducting business c. research may help reduce psychological overload, d.researchers may have to broaden the definition of competitors to include competitive pressures not present in the domestic market
all of the above
Which of the following is an appropriate guideline for companies selecting independent distributors in international markets? * Select distributors but don't let them select you * Look for distributors capable of developing markets * Treat local distributors as long-term partners * Maintain control over marketing strategy from day one * All of the above are appropriate guidelines
all of the above
The president of the Mexican company recently remarked "Business in Mexico is done on a consensus basis very genteel and sometimes slow by U.S standards" A few months later, the Mexican company and its US joint venture partner parted company. Judging by the presidents remark one important reason for the "divorce" was
cultural differences
recently the OECD has become more focused on global issues as seen by a. helping members candidly asses their own economic policies b. addressing the vexing problem of bribery c. member nations working together I committees to review social policies d. all of the above
d
the fastest-growing sector of world trade includes a. travel and entertainmet b. accounting and legal serices c. royalties and license fees d. all of the above
d
The organization for economic Cooperation and Development (OECD) is comprised of a. counties that believe in market-allocation economic systems b. pluralistic democracies c. countries that demonstrate progress toward economic reform d. all of the above
d.
Which of the following is not a step in the strategic/consultative selling model?
develop marketing mix
In the Urngury round of GATT negotiations, many counties tooks issues with the US system of laws in part because historically the us commerce department almost always ruled in favor of the US company that filed the complaint. This was related to the alws pertaining to
dumping
Which form of regional cooperation agreement when fully implemented entail creation of a unified central bank the use of a single currency and common polices on agriculture social services and welfare? a. Free trade area b. Customers union c. Common market d. Economic union
economic union
in many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes
emotional appeals
Suppose a company selling in varous country markets makes statements such as "we know what the customer wants, and he or she will have to pay for it" this is an indication of an ______ approach to setting prices
ethnocentric
For Starbucks and other companies whose business models included a service component, it is not recommended that they use this method for going global
exporting
"Export selling" involves tailoring various elements of the marketing mix to global market requirements.
false
A joint venture with a local partner represents a more extensive form of strategy that is similar to exporting and licensing
false
Companies cannot purchase insurance to offset potential risks arising from the political environment of a country
false
Due to the ease of handling credit cards, global online retailers should focus on credit card payment as its only payment mode.
false
For some consumer products such as cigarettes, soft drinks, and candy that have a low per unit cost income is often a more valuable segmentation variable than population
false
If an American businessperson pays a Russian customs agent a $20 cash "processing fee" to avoid delay in leaving Russia, the American has violated the Foreign Corrupt Practices Act (FCPA)
false
Michael Porter's Four generic strategies for achieving competitive advantage are product differentiation, price leadership
false
The fact that significant numbers of pizza loving consumers are found in many counties indicates they are eating the exact same thing
false
The market opportunity in Africa is limited because the people are too poor, and it is too risky to do business there.
false
taking information from secondary sources is a better way to know what is going on in a country than direct sensory perception such as seeing, feeling, hearing, smelling, or tasting.
false
Which of the following is not an element of Rugman and D'Cruz's flagship model?
focus differentiation
The export and import process can entail red tape and bureaucratic delays. In an effort to facilitate exports, countries are designating certain areas as:
free trade zones
The terminology used to describe the new forms of cooperation strategies varies widely and the phrases used include a of the following expect
greenfield operations
Social couponing is one of the hottest trends in sales promotion. This refers to
grouponing
Which of the following can negatively influence the rate of diffusion of an innovation?
high complexity
Low-income countires have a GNI per capita of less than $996. The general characterisitics shared by countries at this income level include all of the following except
high literacy rates
Even in the face of such tough and growing competition, Adidas still enjoys high brand loyalty among older Europeans. The company recruits young people and pays then to wear Adidas shoes in public. This is an example of:
image advertising
As companies recognize and embrace new concepts such as the globalization of coffee culture, the potential for effective global advertising
increases
A marketer of fine French cognac offers fancy cigar ashtrays as prizes to consumers who correctly solve a crossword puzzle. Which of the following most accurately describes this offer
non-price promotion
Which promotional mix element is most closely associated with activities designed to foster goodwill and understanding with various constituents both inside and outside the company?
public relations
In July 2001, the euros value relative to the dollar was about 1=$.85. By November 2009, the euro had strengthened to 1=$1.48. In February 2012 on euro was equal to $1.33 for goods exported to the US market, the company should
raise prices in dollars
If the manufacturer of a sophisticated new consumer electronics product terermines that many target consumers qualify as "innovators" and early adopters" with relatively inelastic demand users, the company should use __________ pricing strategy
skimming
A company's efforts to effectively communicate with customers is very important. All of the following are major difficulties which can compromise an organization's attempt to communicate with the customers of one country except: a. The message does not reach the intended recipient b. The message reaches the intended recipient but is misunderstood c. The message reaches the intended recipient and is understood, but the recipient may fail to take action d. The message is distorted by noise e. The message is only in one official language
the message is only in one official language
The advertising promise that captures the reason that people buy products is known as:
the selling proposition
A brand is a complex bundle of images and experiences in the customer's mind. It is a promise by a particular company about a particular product
true
A company hoping to protect its trade secrets from being stolen by a foreign company can seek relief under the TRIPs agreement if both companies do business in GATT signatory countries
true
A major difference between the flagship model and Porter's is that Porter's is based on the notion of corporate individualism and individual business transactions
true
A patent holder retains all rights for the life of the patent even if the product is no produces or sold
true
A preferential trade agreement is a mechanism that confirms special treatment on select trading partners, thereby at times discriminating against other trading partners
true
After the research effort has zeroed in on potential markets, there is no substitute for a personal visit to size up the market firsthand and begin the development of an actual export-marketing program.
true
Although some food preferences remain deeply embedded culture, plenty of evidence suggests that global dietary preferences are converging.
true
An innovation that is disruptive to one firm can be sustaining to another firm
true
An intranet is a private network that allows authorized company personnel or outsiders to share information electronically in a secure fashion.
true
Analyzed in terms of Porter's five forces model, online music file sharing services represent a threat to the music industry
true
As a practical matter, marketing managers may choose to run both global and local ads rather than adopt an "either/or" stance
true
Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires
true
Hewlett-Packard is the worlds leading marketer of inject printers. HP printers are priced very low and margins are slim, by contrast, the company enjoys healthy margins on sales of replacement ink cartridges. This approach is sometimes known as "razors and blades" pricing
true
Ideally, GDP and other measures of national income converted to US dollars should be calculated on the basis of purchasing power parities or through direct comparisons of actual prices for a given product
true
If a foreign country decides to take over banking business from private banks to benefit public and pays adequate payment, then it is referred to as nationalization
true
In Asia western luxury goods marketers have long relied on independent distributors such as Hong Kong-based Fairton, whose local market knowledge and networks of stores are keys to success
true
It is customary for countries to notify to WTO when they enter into preferential trade agreements
true
Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company in exchange for royalties, license fees, or some there forms of compensation.
true
Licensing is a potentially dangerous action: It may be instrumental in creating a competitor
true
Many industry experts agree that packaging must engage the senses, make an emotional connection
true
McDonalds has learned the wisdom of leveraging local market knowledge by granting franchise considerable leeway to tailor restaurant interior design and menu offering to suit country specific preference and taste
true
Microsoft is subject to U.S. antitrust laws no matter what country it is doing business in
true
One component of a firm's MIS is a business intelligence (BI) network that helps managers make decisions; one of its major objectives is to enable manipulation of the data obtained by interactive access.
true
One index to measure human well-being is the index of GNH (Gross National Happiness) which includes both objective and subjective indicators such as psychological well-being, time use, community vitality, culture, health, education environmental diversity, living standards, and governance
true
Product differentiation and brand loyalty "raise the bar" for would-be industry entrants who would be required to make substantial investments in research or advertising
true
Recently, global companies have embraced a technique known as "pattern advertising" which is analogous to the concept of global product platforms.
true
The close long-term relationships between auto salespersons and the Japanese people can be considered as a consumer version of the keiretsu system
true
The four tigers - Singapore, South Korea, Taiwan and Hong Kong - learned from the Japanese experience and built strong export-based economies of their own.
true
The president of an American company was interest in dealing with a company in Saudi Arabia. The Saudi CEO made it clear at the outset that the credentials in the documents have less credibility than personal trust and confidence. This shows that the Saudi Arabian culture is a high-context cultur
true
The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers
true
When designing sales promotion programs marketers should keep in mind that the most fundamental thing consumers want to do is try before they buy
true
With an unmistakable trend toward using global advertising agencies to support global marketing efforts, companies with geocentric orientations will adapt to the global market requirements and select the best agency or agencies accordingly
true
sales promotion programs can be designed to target consumers as well as distributors and retailers
true
the four types of web sites of for-profit companies include Promotion sites, Transaction sites, and Content sites.
true
In every industry, companies are embedded in a(n) ______, which has a cost structure associated with it that dictates the margins needed to achieve profitability
value network