Marketing Exam 2 MC

A duty that represents a certain percentage of the value of a particular product is a(n): Select one: a. ad valorem duty b. antidumping duty c. specific duty d. BTN duty e. "schedule B" duty

a. ad valorem duty

Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction? Select one: a. cash in advance b. documentary collection c. draft d. documentary credit (letter of credit) e. sales on open account

a. cash in advance

The words that are the spoken or written communication elements in advertisements are known as: Select one: a. copy b. writings c. manuscript d. script e. idea

a. copy

Mexican customers generally carry small coins. To keep prices of shampoo and detergent below 11 or 12 pesos, Procter & Gamble is using which method of pricing? Select one: a. target costing b. export price costing c. cost-based pricing d. price bundling e. cost-plus approach

a. target costing

Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all of the following except Select one: a. voting rights b. tax incentives c. subsidies d. free trade zones e. export assistance

a. voting rights

________ represents the cumulative added value of a company's investment in the marketing of a brand over time. Select one: a. Brand image b. Brand equity c. A brand extension d. Co-branding e. Brand loyalty

b. Brand equity

The availability of the product processed, prepared, in proper condition, and/or ready to use is referred to as: Select one: a. price utility b. form utility. c. place utility d. information utility e. product utility

b. form utility.

Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter? Select one: a. own-label focus b. organic growth c. joint venture d. franchise e. chain acquisition

b. organic growth

A manufacturer attempting to set prices for its products in export markets must realize that CIF, VAT, and distributor markup all lead to: Select one: a. market skimming b. price escalation c. dumping charges d. market penetration e. currency devaluations

b. price escalation

If the dollar, the yen, or the euro becomes seriously overvalued, a company with a production capacity in other locations can achieve competitive advantage by: Select one: a. reducing production and labor force simultaneously b. shifting production among different sites. c. conducting transactions in different currencies of the world. d. buying different currencies before major fluctuations take place e. cutting down production and waiting until the currency rate is reasonable

b. shifting production among different sites.

For years, Mercedes-Benz utilized a ________ pricing strategy; however, this created an opportunity for Toyota to introduce its luxury Lexus line and undercut Mercedes. Select one: a. penetration b. skimming c. gray market d. market holding e. cost-based

b. skimming

________ is the phrase global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets. Select one: a. "Stereotype advertising" b. "Cookie-cutter advertising" c. "Pattern advertising" d. "Template advertising" e. "Model advertising"

c. "Pattern advertising"

In order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements should provide for: Select one: a. adaptation for local tastes b. contract manufacturing c. cross licensing d. strategic decision making e. franchising

c. cross licensing

Which of the following is not true of Japanese keiretsu? Select one: a. blocks foreign suppliers from the Japanese market b. promotes risk sharing c. ensures low prices for Japanese consumers d. promotes long-term employment e. relationships are cemented by bank ownership

c. ensures low prices for Japanese consumers

The specialty retailing industry, as well as the fast-food industry, favors ________ for global growth. Select one: a. strategic alliances b. investment c. franchising d. licensing e. joint ventures

c. franchising

Which of the following most accurately describes the relative length of consumer and industrial distribution channels? Select one: a. Both consumer and industrial channels tend to be long (consist of several intermediaries). b. Industrial channels tend to be longer (consist of more intermediaries) than consumer channels c. Both consumer and industrial channels tend to be short (consist of few intermediaries). d. Consumer channels tend to be longer (consist of more intermediaries) than industrial channels e. Consumer channels tend to be shorter (consist of few intermediaries) than the industrial channels

d. Consumer channels tend to be longer (consist of more intermediaries) than industrial channels

When the seller has agreed to deliver the goods to the buyer at the place the buyer names in the country of import, with all costs, including duties paid is referred to as: Select one: a. FCA b. FOB c. FAS d. DDP e. CIF

d. DDP

Physical distribution and logistics are concerned with all but one of the following: Select one: a. transportation b. order processing c. inventory management d. designing in-store displays e. warehousing

d. designing in-store displays

By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns. Select one: a. continuous innovation b. dynamically continuous innovation c. platform-based innovation d. discontinuous innovation e. new and improved innovation

d. discontinuous innovation

In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes: Select one: a. SRC appeals b. localized appeal c. rational appeals d. emotional appeals e. melodramatic appeals

d. emotional appeals

Which of the following correctly characterizes the retailing strategy shared by Toys "R" Us and Virgin Megastores? Select one: a. few product categories, own-label focus b. many product categories, manufacturer brand focus c. none of these d. few product categories, manufacturer brand focus e. many product categories, own-label focus

d. few product categories, manufacturer brand focus

Which of the following could hinder the success of products labeled "Made in Bangladesh" or "Made in Thailand" in export markets? Select one: a. high product saturation levels in global markets b. low acceptance of private brands c. lack of promotion in global markets d. negative country-of-origin bias e. no possible quality/price positioning

d. negative country-of-origin bias

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? Select one: a. sales promotion b. personal selling c. advertising d. public relations e. publicity

d. public relations

"Corporate amnesia" in global partnership is a term which refers to: Select one: a. discontinuation of a partnership due to personal chemistry b. a relationship which is short lived c. achieving world leadership by differentiation d. short-term goals with no memory on how to compete e. losing national identity and ideology

d. short-term goals with no memory on how to compete

When a corporate name such as Sony is combined with a product brand name such as Walkman, the brand category is referred to as: Select one: a. brand equity b. brand loyalty c. brand symbol d. tiered brand e. co-brand

d. tiered brand

Which of the following receives a fee for bringing together an exporter and a buyer in another country? Select one: a. export management company b. foreign purchasing agent c. export merchant d. freight forwarder e. export broker

e. export broker

Strictly speaking, a (n) ________ is an entry strategy for a single target country in which the partners share ownership of a newly created business entity. Select one: a. exporting b. acquisition c. franchising d. licensing e. joint venture

e. joint venture

The benefits of strong brands include all of the following except: Select one: a. more elastic consumer response to price decreases b. larger margins c. greater loyalty d. less vulnerability to marketing actions e. less inelastic consumer response to price increases

e. less inelastic consumer response to price increases

A market ________ pricing strategy calls for setting price levels that are low enough to quickly build market share. Select one: a. skimming b. cost-based c. gray d. holding e. penetration

e. penetration

The advertising promise that captures the reason that people buy products is known as: Select one: a. the creative execution b. creative strategy c. the advertising appeal d. the big idea e. the selling proposition

e. the selling proposition