MRKT 239 Exam 2 - Practice Quiz Questions

c. the franchisee's revenue stream is fairly consistent because franchisors pay fixed fees and royalties.

Franchising offers all the following benefits for franchisors except a. franchise agreements require a certain standard of behavior from franchisees, which helps protect the franchise name. b. franchisors can retain control of their name while increasing global penetration of their products. c. the franchisee's revenue stream is fairly consistent because franchisors pay fixed fees and royalties. d. the franchisor's revenue stream is fairly consistent because franchisees pay fixed fees and royalties. e. franchisors do not have to put up a large capital investment

d. Licensing

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysia operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called a. A joint venture b. Exporting c. A strategic alliance d. Licensing e. Contract manufacturing

b. import tariff.

If Kyrgyzstan levied a duty on all goods purchased from the United States and other countries outside its borders that were brought into Kyrgyzstan, its businesses and citizens would be paying a(n) a. embargo. b. import tariff. c. travelers' tax. d. export tax. e. foreign duty.

d. A company owns subsidiaries or facilities in foreign countries.

In relation to international marketing, which of the following best describes direct ownership? a. A company owns its own manufacturing facilities. b. A company forms an alliance with a similar company in a foreign country. c. Foreign companies contract with manufacturers in other countries. d. A company owns subsidiaries or facilities in foreign countries. e. Two companies from different nations have interests in each other's facilities.

True

T/F - During the early stages of international development, most firms make few, if any, adjustments to their organizational structure to accommodate international sales.

False

T/F - E-marketing includes the use of mobile phones, but not digital outdoor marketing devices.

False

T/F - From a cultural perspective, countries that are members of the European Union tend to act as a single entity.

True

T/F - Globalization of marketing involves developing marketing strategies as though the entire world (or major regions of it) were a single entity.

False

T/F - Importing is the sale of products to foreign markets

True

T/F - In some cases, the types of services offered by a supplier may constitute a competitive advantage over suppliers of similar products.

True

T/F - Industrial classification systems allow marketers to divide business customers into groups based mainly on the types of goods and services provided.

True

T/F - Industrial demand derives from consumer demand.

False

T/F - Online fraud includes any attempt to conduct dishonest activities online, with the exception of tricking consumers into releasing personal information

False

T/F - Orders placed by business customers are usually smaller and more numerous than consumer sales.

True

T/F - Small businesses can use digital media to develop strategies to reach new markets and access inexpensive communication channels.

False

T/F - Social media should be included only in marketing strategy.

False

T/F - The fourth stage in the business buying decision process is that of searching for products and suppliers.

False

T/F - The increase in consumers who publish their own thoughts and product reviews through digital media has caused consumer-generated information to be less important because some of the information is false.

False

T/F - The internet is sometimes referred to as a push medium because marketers determine which websites consumers are going to view.

False

T/F - There is little or no difference between wholesalers' customers and retailers' customers.

True

T/F - Vendor analysis is a formal, systematic evaluation of current and potential vendors that focuses on a variety of dimensions including price, product quality, delivery service, product availability, and overall company reliability.

True

T/F - While consumers can use websites to access more information, marketers can also use the same sites to get information on the consumer.

d. production activities.

The NAICS classification is based on a. marketing activities. b. country of origin. c. customer size. d. production activities. e. number of employees.

b. Yelp

The fact that consumers tend to trust other consumers over corporations and often rely on the recommendations of friends, family, and fellow consumers when making purchasing decisions has fostered the growth of sites like. a. Pinterest b. Yelp c. Tumblr d. Google+ e. Reddit

True

T/F - Customs and taboos are culture-bound and should be taken into consideration when products are marketed in a foreign environment.

True

T/F - Domestic marketing involves marketing strategies aimed at markets within the home country. True

b. the government buys products from all sizes of business, but there is some red tape.

A friend of yours starts his own business. He would like to expand his client base to include the government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him a. that any government, federal, state, or local would laugh at the size of his business. b. the government buys products from all sizes of business, but there is some red tape. c. that he's absolutely right, the government doesn't deal with small businesses. d. although the government will deal with small businesses, he will never make a profit off a government contract. e. the government rarely considers new suppliers when making purchasing decisions.

b. obtaining products that exceed specifications to ensure the best possible product performance.

All of the following are important concerns of business customers except a. supporting customers with services they expect. b. obtaining products that exceed specifications to ensure the best possible product performance. c. obtaining a level of quality that meets specifications. d. obtaining products for which the quality level is consistent. e. achieving a specific level of quality in the products offered to target markets.

e. reach markets that were previously inaccessible.

As digital communication technologies have advanced, it is possible for marketers to a. have more control over their product's positioning. b. have more control over the processing of information. c. have more control over people's perceptions of their business. d. be more selective about news releases regarding their company. e. reach markets that were previously inaccessible.

a. globalization.

Both Adidas and Brooks standardize many of their shoe models and colors worldwide, which is an example of a. globalization. b. customization. c. nationalization. d. culturalization. e. internationalization.

e. their information searches

Consumers are changing ____ and consumption behaviors to fit with emerging technologies and trends. a. their eating habits b. their spending money c. their disposable income d. their shopping partners e. their information searches

d. Facebook

Dairy Queen communicates with its customers through ____, which is the most popular social networking site in the world. a. Flickr b. Twitter c. Instagram d. Facebook e. Pinterest

b. Target specific markets

Digital media have created opportunities for companies to a. Gain more control over what the consumer sees b. Target specific markets c. Offer the same king of experience as a brick and mortar store d. Manage information that is disseminated through the Web e. Stimulate all five sense during the online shopping experience

d. a price increase or decrease will not significantly change the demand for an item.

Inelastic demand simply means that a. buyers will not make a new-task purchase. b. when supply is reduced, the price will increase. c. buyers will not make a modified rebuy purchase. d. a price increase or decrease will not significantly change the demand for an item. e. when price goes up, demand goes down.

b. organizations that seek nonbusiness goals.

Institutional markets are a. state or local government units. b. organizations that seek nonbusiness goals. c. intermediaries who resell goods to make a profit. d. consumers who buy products for their own use. e. federal and state government units.

b. specifications.

Kia Motors purchases upholstery for the interiors of its vehicles from various suppliers. This upholstery must have a set of necessary characteristics, standards of quality, and other information that is expressed by Kia Motors. This set is called a. purchase requests. b. specifications. c. product features. d. descriptions. e. criterion.

a. users determine which websites they are going to view.

Marketers call the internet a pull medium because a. users determine which websites they are going to view. b. they determine which websites consumers are going to view. c. they have great control over the content to which users are exposed. d. social networks have great control over the content to which users are exposed. e. users get pulled along by social media influencers.

c. modified rebuy, new-task, or straight rebuy.

Most business purchases can be classified as belonging to one of three types: a. delinquent, new-task, or reciprocal. b. repetitive, new-task, or modified rebuy. c. modified rebuy, new-task, or straight rebuy. d. delinquent, repetitive, or delivered. e. rebuy, reciprocal, or delayed.

a. Treat it like a traditional marketing channel

One of the biggest mistakes a marketer can make when engaging in digital marketing is to a. Treat it like a traditional marketing channel b. Focus on competitors' digital marketing efforts c. Fail to devote sufficient resources to it d. Focus on technology e. Focus on price

b. Instability

One of the guaranteed constants in the global business environment is a. Nationalism b. Instability c. Tariffs d. Taxes e. War

d. the increase of consumers using digital media to publicize their own product reviews.

One trend that has caused consumer-generated information to gain importance is a. the recession. b. the globalization of companies. c. the increase in store brands. d. the increase of consumers using digital media to publicize their own product reviews. e. the increase in consumer buying power.

d. Reseller

Retailers like Staples and PetSmart are considered to be members of which business market? a. Customer b. Government c. Institutional d. Reseller e. Producer

e. Applications

Smartphones contain ____ that help consumers access more information about businesses. a. Treatments b. Digits c. Widgets d. Actions e. Applications

d. social network.

Sysco has developed a website that allows employees to create a profile and connect with coworkers for the purpose of getting acquainted and building a work-related network. This is an example of a a. virtual reality. b. podcast. c. recruiting tool. d. social network. e. employment opportunity.

False

T/F - A fall in consumer demand for a product is likely to result in increased buying from suppliers as consumer goods producers replenish depleted inventories and gear up for the next surge in consumer demand

True

T/F - A multinational enterprise is a firm that has operations or subsidiaries located in many countries.

False

T/F - A positive balance of trade is considered good because it means that U.S. dollars are supporting foreign economies at the expense of U.S. companies and workers.

False

T/F - An accessible channel means the marketer knows who the customer is and can specifically address that person

True

T/F - An example of a business market would be farmers.

True

T/F - As the internet and digital communication technologies have advanced, marketers are able to target markets more precisely.

False

T/F - Brand name, product characteristics, packaging, and media allocation are among the easiest marketing mix variables to standardize around the world.

True

T/F - Business customers generally seek to obtain detailed information about a product before purchasing it.

True

T/F - Buyers in producer markets purchase either raw materials, semifinished products, or finished products.

True

T/F - Connectivity is the use of digital networks to provide linkages between information providers and users.

False

T/F - Control refers to the customer's ability to access information on the internet with simple clicks on a keyboard.

False

T/F - Cultural relativism is the unconscious reference to one's own cultural values, experiences, and knowledge when traveling in other countries.

d. Offshore outsourcing

The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product will be sold is known as a. Licensing b. Contract manufacturing c. Outsourcing d. Offshore outsourcing e. Offshoring

c. Importing

The purchase of products from a foreign source is called a. Exporting b. Dumping c. Importing d. Licensing e. Venturing

d. Products sold in foreign countries at unfairly low costs

The term dumping refers to the sale of a. Products sold in foreign markets that cannot be sold in the United States b. Products sold in foreign markets at prices above those charged in the United States c. All discounted U.S. products in foreign countries d. Products sold in foreign countries at unfairly low costs e. Products sold in foreign markets that cannot pass safety standards in the United States

b. Modified rebuy

Wegmans recently placed an order with the Applegate Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Wegmans is ordering 100 cases of hotdogs. Wegmans orders this product on a regular basis. What type of purchase does this week's purchase represent? a. Reciprocal b. Modified rebuy c. Repetitive d. Straight rebuy e. New-task

e. Bids and negotiated contracts

What are the two ways governments make purchases? a. Lottery system and contract negotiations b. Cash or credit c. Contacting previous suppliers and bids d. Request for new purchases and recurring orders e. Bids and negotiated contracts

e. Business buyers generally place larger orders than consumer buyers

What is a primary difference between business and consumer buyers? a. Consumer buyers require more product information than business buyers b. Business purchases are made by one individual whereas families make consumer purchases together c. Consumers primarily buy inexpensive items; businesses only buy expensive items d. Repeat sales are more common with consumer buyers than business buyers e. Business buyers generally place larger orders than consumer buyers

a. economic

When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Starbucks is currently examining the ____ forces in its environmental analysis. a. economic b. cultural c. ethical d. technological e. legal

c. limited exporting.

When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in a. international marketing. b. global marketing. c. limited exporting. d. product licensing. e. unplanned exporting.

b. a government purchase.

When the city of Portland buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered a. a producer purchase. b. a government purchase. c. a regulatory sale. d. an institutional sale. e. a reseller purchase.

c. Description

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics? a. Negotiation b. Homogeneous selection c. Description d. Inspection e. Sampling

e. MERCOSUR

Which of the following alliances/agreements is the United States NOT a part of? a. NAFTA b. APEC c. GATT d. WTO e. MERCOSUR

d. Import tariff

Which of the following is often used to raise revenue for a country and/or to protect domestic products? a. Quota b. Warning label c. Embargo d. Import tariff e. Exchange control

e. Discussions and negotiations associated with business purchases can require considerable marketing time and selling effort.

Which of the following is true about characteristics of business buying? a. The contract regarding terms of sale of raw materials and component parts is likely to be a short-term agreement. b. Business purchasing decisions are typically made by one person. c. Suppliers may prefer to sell to customers who place small orders. d. Orders by business customers tend to be smaller than individual consumer sales. e. Discussions and negotiations associated with business purchases can require considerable marketing time and selling effort.

c. Electronic marketing

Which of the following refers to the strategic process of distributing, promoting, and pricing products, and discovering the desires of customers using digital media and digital marketing? a. Digital orientation b. Digital media c. Electronic marketing d. Digital electronics e. Electronic processing

c. Federal Trade Commission

Which of the following regulates and makes rules for privacy, fraud, and misappropriation of copyrighted intellectual property, as well as other illicit internet activities? a. Federal Internet Commission b. Federal Communication Commission c. Federal Trade Commission d. Federal Bureau of Investigations e. Individual states

c. Interactivity

____ allows customers to express their needs and wants directly to a company in response to its marketing communications. a. Sociability b. Addressability c. Interactivity d. Accessibility e. Control

d. Social media

____ are more consumer-driven than traditional media. a. Television commercials b. Radio spots c. Print ads d. Social media e. Billboard advertisements

e. Instagram

____ is a popular mobile photo-sharing site. a. YouTube b. Facebook c. Tumblr d. Twitter e. Instagram

a. Digital marketing

____ uses the internet, mobile, and interactive channels to develop communication and exchanges with customers. a. Digital marketing b. Digital media c. Electronic marketing d. Digital electronics E-marketing