Mkt 170 exam 2

governance

"Discussion and consensus must be the norms. Partners must be viewed as equals." When applied to global strategic partnerships, this statement indicates the importance of which factor? A. strategy B. governance C. mission D. culture E. organization

mission

"Successful GSPs create win-win situations, where participants pursue objectives on the basis of mutual advantage." When applied to global strategic partnerships, this statement indicates the importance of which factor? A. mission B. governance C. culture D. strategy E. organization

behavioral

"Usage rates" and "user status" are important criteria for which segmentation variable? A. psychographic B. occupational C. benefit D. demographic E. behavioral

ad valorem duty

A duty that represents a certain percentage of the value of a particular product is a(n): A. ad valorem duty. B. antidumping duty. C. "schedule B" duty. D. specific duty. E. BTN duty.

ad valorem duty

A nontariff barrier (NTB) includes all of the following except: A. quotas. B. restrictive administrative policies. C. discriminatory procurement policies. D. restrictive technical regulations. E. ad valorem duty.

continuous innovation

After four years of product development, Procter & Gamble recently introduced a new, improved disposable diaper. Pampers Rash Guard diapers are designed to prevent diaper rash and represent the first time a company has made a medical claim for its diapers. What kind of innovation do the new diapers represent? A. platform-based innovation B. dynamically continuous innovation C. discontinuous innovation D. continuous innovation E. None of these

India

Agricultural subsidies are particularly controversial because, although they protect the interests of farmers in some countries, they work to the detriment of farmers in countries such as: A. Japan. B. the United States. C. Singapore. D. Switzerland. E. India.

esteem

Alfred Zeien, former chairman of Gillette, once noted that his company's Parker Pen unit does not have to develop a special model for Malaysia and Singapore because shoppers worldwide seek the same things when buying a gift that will serve the recipient as a status symbol. This insight relates to which level of Maslow's hierarchy of needs? A. physiological B. safety C. self-actualization D. esteem E. social

relationship is organized vertical lines

An attribute which does not represent true global partnership is: A. retaining national identities. B. continual transfer of resources. C. relationship is organized vertical lines. D. achieving world leadership by differentiation. E. achieving a reciprocal relationship.

overstate the size ad short-term attractiveness of individual country markets

An example of a trap that marketers can set for themselves while targeting a foreign market is to: A. realize that short-term profit and revenue growth objectives may be hard to achieve. B. restrain from being persistent to enter a country market. C. ignore shareholders' or competitors' pressure not to "miss out" on a strategic opportunity. D. overstate the size and short-term attractiveness of individual country markets. E. enter a market based on time-consuming rigorous market analysis.

is getting what he or she has paid for

An express warranty is a written guarantee that assures the buyer that he or she: A. will be able to contact the manufacturer whenever needed. B. is getting what he or she desired. C. has limited time for filling out information required by the manufacturer. D. is getting what he or she has paid for. E. will be able to get express response if any defects are found.

virtual corporations

Another perspective on the future of cooperative strategies envisions the emergence of: A. keiretsu. B. joint ventures. C. mergers and acquisition. D. virtual corporations. E. franchising.

joint venture

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. licensing B. joint venture C. exporting D. franchising E. acquisition

attribute/benefit

BMW advertises its cars as the "ultimate driving machine" which is described as positioning based on: A. high touch. B. attribute/benefit. C. use/user. D. quality/price. E. competition.

product-market decision

Both Nestlé and Cadbury determined that a liquid chocolate confection would be one way to address the issue of India's hot weather. This is an example of: A. standardized global marketing. B. product-market decision C. target benefit marketing. D. competitive global marketing. E. differentiated target marketing.

discontinuous innovation

By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns. A. new and improved innovation B. dynamically continuous innovation C. platform-based innovation D. discontinuous innovation E. continuous innovation

product-communication adaptation

Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese consumers were not receptive to ads featuring the Campbell Kids and the "M'm M'm Good" slogan. This compelled Campbell's to develop ads featuring a talking soup can known as "Mr. Campbell." Campbell's also developed soup varieties for Japan with fish as the main protein source and spices that reflect local preferences. As described here, which of the following strategies has Campbell's used in Japan? A. product extension-communications adaptation B. product invention C. product-communications extension D. product adaptation-communications extension E. product-communication adaptation

substantial investments in marketing

Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market. The first-mover advantages include all of the following except: A. lead in advertising and promotion exposure. B. advantage in adapting to the local culture. C. gain business experience. D. best chance of becoming world leader. E. substantial investments in marketing.

emotional

Consumers shopping for high-touch products, such as fine perfume, are generally energized by ________ motives. A. rational B. neither emotional nor rational C. both emotional and rational D. emotional E. high-tech

joint ventures allow partners to achieve energy

Disadvantages of joint venturing can include all of the following except: A. joint venture partners must share rewards as well as risks. B. a dynamic joint venture partner can evolve into a strong competitor. C. a company incurs very significant costs by joint venturing. D. joint ventures can have the potential for conflict between partners. E. joint ventures allow partners to achieve synergy.

sweden has a fairly small population

Ericsson, IKEA, Saab, and other companies based in Sweden have looked beyond their borders for significant growth market because: A. Sweden has high total annual income. B. Sweden has relaxed export policies. C. Sweden has a fairly small population. D. Sweden has low total annual income. E. Sweden is land locked geographically.

exporting

For Starbucks and other companies whose business models include a service component, it is not recommended that they use one of the following methods for going global. A. joint ventures B. 100-percent ownership C. exporting D. franchising E. licensing

licensing

For Walt Disney Company, the best mode for going global is by: A. 100-percent ownership. B. joint ventures. C. exporting. D. franchising. E. licensing.

attribute/benefit

For years, ads for Volvo automobiles stressed safety features and protection in the event of a crash. Thus, Volvo automobiles developed a reputation based on which positioning strategy? A. competition B. attribute/benefit C. use/user D. high touch E. quality/price

focus on a single national market or a specific problem.

GSPs (Global Strategic Partnerships) are attractive for several reasons which do not include: A. sharing high product development costs. B. focus on a single national market or a specific problem. C. continuous transfer of technology between partners. D. sharing technological developments. E. securing access to national and regional markets.

both tangible and intangible product attributes are important

Generally speaking, which of the following statements is true concerning product attributes? A. Tangible product attributes are more important than intangible ones. B. A product has more attributes than tangible and intangible ones. C. Intangible product attributes are more important than tangible ones. D. Both tangible and intangible product attributes are important. E. Neither tangible nor intangible product attributes are important.

pluralization of consumption

Global marketing authority, Theodore Levitt, has noted that many ethnic and regional foods-sushi, for example-are enjoying popularity in many countries of the world. This observation is known as the: A. democratization of consumption. B. pluralization of consumption. C. ethnicitization of consumption. D. sophistication of consumption. E. domestication of consumption.

free trade zones

Governmental actions that discourage imports and block markets include all of the following except: A. free trade zones B. subsidies. C. tariffs. D. tax incentives. E. duties.

voting rights

Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all of the following except: A. subsidies. B. free trade zones. C. voting rights. D. tax incentives. E. export assistance.

make a process template for international consumers

Guidelines which can assist managers in their effort to establish global brand leadership include all of the following except: A. assign specific responsibility for managing branding issues. B. make a process template for international consumers. C. before taking brand overseas, select name, marks and symbols. D. create a compelling value proposition for customers. E. make a process template available to all managers.

increased competition

Having partners from another country can have advantages which include all of the following except: a. securing technology. b. increased competition. c. access to capital. d. shared risks. e. reducing product development costs.

product invention

Hindustan Lever recently developed a hard candy flavored with natural fruit juice that it sells profitably in India for the equivalent of 1 cent per piece. This is Hindustan Lever's first-ever candy product. What strategy is evident here? A. product extension-communications adaptation B. dual adaptation C. product invention D. product adaptation-communications extension E. product-communications extension

FDI

Honda has invested $550 million in building an assembly plant in Greensburg, Indiana; IKEA spent nearly $2 billion to open stores in Russia; and South Korea's LG Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of: FDI. exporting. licensing. acquisition. franchising.

preferential tariffs

In an effort to attract assembly operations, Brazil allows certain product components to be imported at reduced tariff rates. This is an example of: A. preferential tariffs. B. the effect of the Customs Valuation Code. C. offsets. D. an EMC. E. discriminatory procurement.

adaptations by licensee to fit local tastes.

Licensing as a market entry mode has several disadvantages and opportunity costs, which does not include: similar product or technology development by licensee. leveraging and exploiting by licensee. agreement may have short life. adaptations by licensee to fit local tastes. limited market control.

will is be possible to neglect home-country regulations?

Managers must decide how well a company's product fits the country market by asking all of the following questions except: A. Will adaptation be required? B. Will import restriction drive up the product price? C. Will strong home currency have an adverse impact on product price? D. Is it advisable to source locally? E. Will it be possible to neglect home-country regulations?

standardized global marketing

Marketing that involves creating the same marketing mix for a broad mass market of potential buyers is referred to as: A. differentiated target marketing. B. competitive global marketing. C. concentrated global marketing. D. target benefit marketing. E. standardized global marketing.

basic human needs can drive the development of global products

Maslow's hierarchy is applicable to global marketing because it can help explain how: A. "luxury badging" is irrelevant to companies marketing in Asia. B. basic human needs can drive the development of global products. C. Asians differ from Westerners in their basic physiological needs. D. status needs in different countries can only be fulfilled with localized products. E. "self-actualization" is the highest-order need in Japan as well as Western nations.

India

McDonald's operates in over 118 countries; however, 80% of its restaurants are located in nine countries which does not include the following country market: A. Brazil. B. Japan. C. Australia. D. India. E. Germany

licensees have considerable autonomy

One of the advantages of licensing is: licensees have considerable autonomy. license agreements have short life. licensees have limited control. licensees can develop similar products. licensees have considerable leverage.

differentiating a brand in customer's mind

Positioning refers to the act of: A. differentiating a brand in customer's mind. B. formulating a companion product. C. formulating a private label strategy. D. ensuring a choice retail shelf location. E. determining what areas of the globe to target.

product communication adaptation

Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using? A. product adaptation-communications extension B. product-communication adaptation C. product-communications extension D. product invention E. product extension-communications adaptation

continuous innovation

Procter & Gamble recently introduced Pampers Rash Guard. Rash Guard does not represent a new product per se; rather, the diapers are being marketed as an alternative to regular Pampers. What type of innovation do Pampers Rash Guard diapers represent? A. a continuous innovation B. a dynamically continuous innovation C. a discontinuous innovation D. a platform-based innovation E. None of these

continuous

Products that belong to the category of "game changers" are considered as ________ innovations. A. new product B. dynamically continuous C. continuous D. line extensions E. discontinuous

attitudes, values, and lifestyle

Psychographic segmentation involves grouping people in terms of their: A. attitudes, values, and lifestyle. B. gender. C. combined household income. D. age and income. E. psychological well being.

common agricultural policies

Restrictive administrative and technical regulations can create barriers to trade which may take all of the following forms except: A. antidumping regulations. B. product size regulations. C. safety and health regulations. D. safety and pollution regulations. E. common agricultural policies.

psychographic

SRI International developed Values and Lifestyles (VALS). Such a consumer profile would be helpful for which type of segmentation? A. psychographic B. behavioral C. occupational D. demographic E. gender

differentiated global marketing

The Swatch Group markets watches in all price ranges, from the Swatch brand at the low end to luxury brands such as Longines, Blancpain, and Breguet. Which target market strategy does this illustrate? A. standardized global marketing B. concentrated global marketing C. differentiated global marketing D. psychographic global marketing E. None of these

iraq

The United States has given Normal Trade Relations (NTR) status to some 180 countries. In actuality only four countries are excluded from this status which includes all of the following countries except: A. Cuba. B. Libya. C. Iraq. D. North Korea. E. Iran.

gain confidence in firms ability for exporting

The advantages of a market visit include all of the following except: A. contradict market potential. B. confirm market potential. C. build confidence in firm's ability for exporting. D. gather additional data to reach final decision. E. gain confidence in firm's ability for exporting.

franchicising

The agreements that allow McDonald's franchisees around the globe to use McDonald's trademarked name and menu items represent, in essence, which form of market entry? joint ventures exporting franchising 100% ownership acquisition

"bottom-up" segmentation analysis

The basis for global marketing expert David Arnold's framework for screening intercountry comparisons include: A. income level. B. "bottom-up" segmentation analysis. C. "top-down" segmentation analysis. D. demographic data. E. population data.

less elastic consumer response to price decreases

The benefits of strong brands include all of the following except: A. less vulnerability to marketing actions. B. more elastic consumer response to price decreases. C. less inelastic consumer response to price increases. D. greater loyalty. E. larger margins.

just 10 or fewer countries

The concentration of income in the high-income and large-population countries means that a company can be "global" by targeting buyers in: A. just 50 countries. B. just 20 countries. C. just 10 or fewer countries. D. just 30 countries. E. None of these

90% of the world's population

The concentration of wealth in a handful of industrialized countries has significant implications for global marketers. After segmenting in terms of a single demographic variable-income- a company can reach the most affluent markets which does not include: A. Japan. B. 90 percent of the world's population C. Canada and Mexico D. all of North America E. half of the EU nations

free trade zone

The export and import process can entail red tape and bureaucratic delays. In an effort to facilitate exports, countries are designating certain areas as: A. special tariff zones. B. global business zones. C. duty free zones. D. free trade zones. E. import control zones.

80

The law of disproportionality suggests that ________ percent of the company's menu or profits are accounted for the 20 percent of a firm's products or customers. A. 70 B. 50 C. 60 D. 80 E. 90

sourcing

The organizational decision to purchase production inputs, components, or finished goods from domestic or foreign producers is known as the ________ decision. A. security B. sourcing C. NTB D. preferential E. import/export

cultural differences

The president of a 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 U.S. joint venture partner parted company. Judging by the president's remark, one important reason for the "divorce" was: failure of one partner to live up to the terms of the contract. the cancellation of NAFTA. cultural differences. the U.S. government's insistence on quick negotiations. the language barrier.

polycentrics

The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers. All of the following are variables that are commonly used except: A. benefits sought. B. polycentrics. C. demographics. D. psychographics. E. behavioral characteristics.

global consumer culture positioning

The strategy that identifies a brand as a symbol of a particular global segment is known as: A. local consumer culture positioning. B. demographic market positioning. C. global market positioning. D. foreign consumer culture positioning. E. global consumer culture positioning.

greenfield operations

The terminology used to describe the new forms of cooperation strategies varies widely and the phrases used include all of the following except: strategic alliances. strategic international alliances. global strategic partnerships. Greenfield operations. collaborative agreements.

pluralization of consumption

The trend showing popularity of ethnic or regional foods such as sushi, falafel, or pizza worldwide is referred to as the ________, which provides an opportunity for marketers to pursue one or more segments on a global scale. A. identification of consumers B. promotion of products and services C. segmentation of markets D. pluralization of consumption E. popularity of segmentation

what beauty means to chinese women

The world's best-known cosmetics companies are setting their sights on a lucrative new market segment: the emerging middle classes in countries such as Brazil, Russia, India, and China. However, these companies have to understand: A. that women's preferences for cosmetics are same in all countries. B. that working Indian women currently prefer only local brands. C. cosmetics are preferred mostly by the top end of the market in China. D. that Chinese consumers are not willing to invest in beauty products. E. what beauty means to Chinese women.

the Hispanic American segments represent a great opportunity for marketers

Three Mexican retailers Famso, Grupo Gigante SA, and Grupo Comercial Chedraui SA have opened stores in the United States. This is an indication of: A. the Mexican retailers would like to compete with businesses like Best Buy and Circuit City. B. the Hispanic American segments represent a great opportunity for marketers. C. the Mexican retailers provide better products than American stores. D. U.S. retailers were lagging behind in collecting demographic information. E. American businesses cannot compete with Mexican retailers.

product extension-communications adaptation

To promote its Centrino wireless chip, Intel launched a global ad campaign that features different combinations of celebrities. These celebrities were chosen because they are widely recognized in the key world markets. This type of strategy is referred to as: A. product-communication adaptation. B. product extension-communications adaptation. C. product-communications extension. D. product adaptation-communications extension. E. product invention.

similar needs and buying behavior

When identifying global market segments, a fundamental guiding principle should be the need to determine: A. shared demographic characteristics. B. similar needs and buying behavior. C. similar languages. D. similar geographic regions. E. similar ethnic backgrounds.

The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation.

When introduced in the late 1970s, the VCR created new patterns of consumer behavior. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. DVD, a playback only video system, was introduced in the late 1990s. DVD discs contain full-length movies with digital sound in a format that resembles conventional music compact discs. Which of the following most accurately describes the respective degree of newness of these two global products? A. The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation. B. The VCR and DVD are both discontinuous innovations. C. The VCR and DVD are both dynamically continuous innovations. D. The VCR and DVD are both continuous innovations. E. The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation.

negative country-of-origin bias

Which of the following could hinder the success of products labeled "Made in Bangladesh" or "Made in Thailand" in export markets? A. negative country-of-origin bias B. high product saturation levels in global markets C. no possible quality/price positioning D. lack of promotion in global markets E. low acceptance of private brands

all of these

Which of the following criteria should marketers use when assessing opportunity in global target markets? A. current size of the segment B. anticipated growth potential C. competition D. compatibility with company's overall objectives E. All of these

NTR

Which of the following establishes classification numbers that must be used by importers and exporters? A. NTR B. FSC C. HTS D. NTB E. CVD

it relies on specialized information and more on image

Which of the following is generally true about the marketing of high-touch products such as fine china and crystal? A. It relies partially on specialized information and partially on image. B. Neither image nor specialized information is relevant to the marketing of high-touch products. C. It relies less on specialized information and more on image. D. It relies less on image and more on specialized information. E. It relies equally on specialized information and image.

Participants maintain independence outside the framework of alliance.

Which of the following is not a characteristic of global strategic alliances? Participants focus on an individual country market. Participants maintain independence outside the framework of alliance. Participants make ongoing contributions in technology, products, and other areas. Participants share benefits of the alliance. Participants share benefits as well as control.

BMW uses "the ultimate driving machine" slogan in India

Which of the following statements is not an example of local products or brands? A. Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan. B. BMW uses "the ultimate driving machine" slogan in India. C. Coca-Cola developed several branded drink products for Japan. D. Coca-Cola markets Kinely brand bottled water in India. E. Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United Kingdom.

countervailing

Which of the following types of duties would be imposed on a company whose home-country government provides export subsidies? A. customs duty B. antidumping duty C. countervailing duty D. ad valorem duty E. specific duty

FSC

Which of the following was a major U.S. tax incentive for exporters that the WTO recently ruled was an illegal subsidy? A. CVD B. FSC C. NTR D. NTB E. HTS

brand equity

________ can also be thought of as an asset representing the value created by the relationship between the brand and its customers over time. A. Brand image B. Co-branding C. Brand loyalty D. Brand equity E. Brand extensions

brand equity

________ represents the cumulative added value of a company's investment in the marketing of a brand over time. A. Co-branding B. Brand loyalty C. Brand image D. Brand equity E. A brand extension

licensing

represents a market entry strategy whereby one company permits a foreign company to make use of its patents, know-how, technology, company name, or other intangible assets in return for a royalty payment. One-hundred-percent ownership Exporting A joint venture Licensing A Global strategic alliance