JDSMKG470EXAM3

According to a recent study of European industrial exporters, companies that utilized independent distributors would be most likely to utilize: a. ethnocentric pricing b. polycentric pricing c. regiocentric pricing d. geocentric pricing

B

Companies such as Coca-Cola and Disney have enjoyed substantial revenue growth by making their well-known trademarks available to apparel producers via: a) joint ventures b) licensing c) 100% ownership d) exporting

B

Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products; because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette's global marketing effort of MACH3. A cost leadership B differentiation C cost focus D focused differentiation

B

In 2001, Compaq Computer CEO Michael Capellas announced that his company would concentrate on selling software and services instead of hardware. Suppose WorldCorp passes up the chance to buy software from Compaq because it has been a long time customer of IBM. As described here, WorldCorp.'s decision is based on: a. economies of scale b. switching costs c. loose bricks d. access to distribution channels

B

In terms of advertising, scheduling constant advertising without variation is referred to as: A) flighting B) continuity C) geographical weighting D) circulation E) pulsing

B

In the case of indirect exporting, a.markets are reached through intermediaries in the foreign market. b.markets are reached through intermediaries in the exporters' home market. c. licensing agreements are arranged with other companies. d. marketing operations are set up overseas.

B

In the late 1980s, Gillette spent hundreds of millions of dollars developing the Sensor razor. Following Sensor's successful launch, Gillette immediately began working on the next-generation SensorExcel. At the end of the 1990s, Gillette rolled out the new MACH3 shaving system; replacement blade cartridges for the razor cost one-third more than those for the SensorExcel. Which generic strategy is evident here: a. cost leadership b. differentiation c. cost focus d. focused differentiation

B

When trying to attain maximum coverage of the entire U.S. market, which form of advertising would be most effective? A) radio B) television C) newspaper D) outdoor E) magazine

B

Which of the following approaches does Nike use to supply world markets with its athletic shoes: a) investment b) contract manufacturing c) joint ventures d) strategic alliances

B

Which of the following is a market entry strategy that represents, in essence, the transfer of technology to a target market: a) joint ventures b) licensing c) ownership d) exporting

B

Which pricing strategy would be most appropriate for a marketer of luxury designer brands: a) gray market b) skimming c) penetration d) market holding e) cost based

B

_____ is the measure of the number of different audience members exposed at least once to a media vehicle. A) Frequency B) Reach C) Viewer number D) Coverage E) Exposure

B

oWhich approach to global retail expansion involves "greenfield" investment using a company's own financial resources to build a new store from the ground up: a) chain acquisition b) organic growth c) franchise d) joint venture

B

As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances: a) acquisition b) licensing c) joint venture d) exporting

C

Recent trade data indicate that about 25 percent of U.S. merchandise exports represent shipments by American companies to their foreign affiliates and subsidiaries. This situation underscores the importance of __________ in global marketing. a. dumping b. gray marketing c. transfer pricing d. price skimming

C

The unauthorized distribution of trademarked goods to exploit price differentials in world markets is known as: a) market skimming b) black marketing c) gray marketing d) dumping e) licensing

C

When a firm matches its distinctive competences to factors critical to industry success, it achieves: A parity in its industry B a market foundation C competitive advantage D industrial alliance

C

nWhich barrier to entry is based on high production volumes that result in low overall costs compared to competitors: A switching costs B supplier power C economies of scale D buyer power E government policy

C

Executives at My Way/Highway company have traditionally focused exclusively on the domestic market. As a first step toward "going global" that entails minimal risk, the company should consider: a) joint ventures b) licensing c) 100 percent ownership d) exporting

D

Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via: a. cost leadership b. differentiation c. cost focus d. focused differentiation

D

In order to compare the relative costs between two print media, an advertiser needs to use: A) reach B) frequency C) GRPs D) CPM E) BDI

D

In the late 1990s, the U.S. Justice Department fined two European pharmaceutical companies hundreds of millions of dollars for conspiring to suppress competition and set high prices for vitamin supplements marketed in the United States. What was the issue in this lawsuit: a) price skimming b) market penetration c) price bundling d) price fixing e) transfer pricing

D

Iridium Satellite LLC offers satellite Internet service with global coverage to customers who operate in remote areas not served by other connections. Which generic strategy does this illustrate: A cost leadership B differentiation C cost focus D focused differentiation

D

When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established a joint venture with the Marui retailing chain. Judging by the approach Branson used, he and his management team must have viewed Japan as: o a) culturally close and easy to enter b) culturally distant and easy to enter c) culturally close and difficult to enter d) cultural distant and difficult to enter

D

Which of the following would not be used by an exporter with a weak home country currency: a. Expand product line and add more costly features. b. Speed repatriation of foreign-earned income. c. Buy advertising, insurance, and other services in home country market. d. Shift sourcing outside home country market.

D

nWhich of the following is one of the generic strategies for competitive advantage identified by Michael Porter and discussed in your text: A market penetration B product diversification C market segmentation D product differentiation E product development

D

A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring: a. Is the price competitive in view of local market conditions? b. Does the price reflect the product's quality? c. Will authorities in export markets view the price as reasonable or exploitative? d. Does the price take antidumping laws into consideration? e. all of the above

E

Which of the following is an appropriate guideline for companies selecting independent distributors in international markets: a) Select distributors—don't let them select you. b) Look for distributors capable of developing markets. c) Treat local distributors as long-term partners. d) Maintain control over marketing strategy from day one. e) All of the above are appropriate guidelines.

E

Which of the following would NOT be taken into account by a company using an ethnocentric approach to pricing decisions: a. the possibility of implementing a penetration strategy b. profitable price points that could be tied to local sourcing as opposed to home-country sourcing c. integration of price with other marketing mix elements d. factors unique to individual country markets e. none of the above would be taken into account by a company using ethnocentric pricing

E

Which pricing strategy has the advantage of being simple to calculate but the disadvantage of ignoring demand and competitive conditions: a. gray marketing b. skimming c. penetration d. market holding e. cost based

E

With which of the following media would you find CPRP used to compare cost figures? A) magazine B) transit C) newspaper D) billboard E) television

E

_____ are NOT one of the major participants in the integrated marketing communications process.

E

Suppose the Japanese yen is weak in relation to the U.S. dollar. Rather than stressing price benefits, Japanese companies exporting to the U.S. should emphasize quality improvements and after sales service.

False

When the yen reaches "parity" with the dollar, the exchange rate is ¥1=$1.

False

Hewlett-Packard is the world's leading marketer of inkjet printers. H-P's 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

In countries where high inflation is the rule, companies should make price adjustments to maintain operating margins

True

In the mid-1990s, the U.S. dollar/British pound exchange rate was $1.60 to £1. By 2004, the pound had strengthened to $1.86 to £1. All other things being equal, this means that Jaguar dealers in the United States will be forced to raise prices.

True

2001, Compaq Computer CEO Michael Capellas announced that his company would concentrate on selling software and services instead of hardware. Suppose WorldCorp passes up the chance to buy software from Compaq because it has been a long time customer of IBM. As described here, WorldCorp.'s decision is based on: a. economies of scale b. switching costs c. loose bricks d. access to distribution channels

b. switching costs

Excelsior Corp. launches a new hand-held personal digital assistant (PDA) for busy corporate executives. The initial retail price is set at $699. One year later, in an effort to reach a broader market, the price is lowered to $299. Which of the following describes the pricing strategies used by Excelsior Corp: a) skimming strategy followed by penetration strategy b) penetration strategy followed by cost based strategy c) penetration strategy followed by skimming strategy d) penetration strategy only e) skimming strategy only

A

If company managers decide to set the export price for a particular product at an amount equivalent to the home country price, they would be using which approach to pricing: a) ethnocentric b) polycentric c) regiocentric d) geocentric

A

In July 2001, the euro's value relative to the dollar was about €1.00 = $0.85. By July 2004, the euro had strengthened to €1.00 = $1.17. All other things being equal, if a European-based global company wants to preserve margins for goods exported to the U.S. market, the company should:

A

The primary objective of ______ is to develop a framework that will deliver the message to the target audience in the most efficient, cost-effective manner possible.

A

When British entrepreneur Richard Branson established the first Virgin Megastore in France, he invested a great deal of money to develop a retail space on the famous Champs-Elysées. Judging by the approach Branson used, he and his management team must have viewed France as: a) culturally close and easy to enter b) culturally distant and easy to enter c) culturally close and difficult to enter d) culturally distant and difficult to enter

A

Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter: a) organic growth b) chain acquisition c) franchise d) joint venture

A

Which media scheduling strategy would be most likely to be used by a marketer of dishwashing detergent? a. ratings b. share c. flighting d. pulsing e. continuous

A