Test 2 chapters 8-13, 19&20

_____ are defined as government restrictions on the amount of a particular currency that can be bought or sold and may also limit international trade.

Exchange controls are defined as government restrictions on the amount of a particular currency that can be bought or sold and may also limit international trade

Sororities and fraternities on college or university campuses who make purchases for goods or services utilized in their daily operations are considered

Institutional market

Which market includes wholesalers or retailers?

Producer market

The North American Industry classification system is superior to the SIC system due to its

level of comprehensive and up-to-date information

a Spanish term used to refer to production facilities established in Mexico near the untied states border is

maquiladoras

A(n) _____ market is defined as individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations.

producer

Commodities and raw materials are purchased using which method of business buying?

A description

NAFTA makes it easier for U.S. businesses to invest in Mexico and Canada and simplifies country-of-origin rules which make it more difficult for ______ to use Mexico as a staging ground for further penetration into U.S. markets.

Japan

The United States is not part of which of the following trade alliances?

MERCOSUR

ACME Corp has ordered widgets from Wiley widgets several times before but now like Wiley widgets to offer a lower per-unit price in exchange for a larger order. ACME is using which of the following types of business purchases?

Modified-rebuy purchase

The ______ was implemented in 1994 and merged Canada, Mexico, and the United States into one market of nearly 454 million consumers.

NAFTA

What countries are members of the Southern Common Market (MERCOSUR)?

South America

The North American Industry Classification System (NAICS) replaced the Standard Industrial Classification (SIC) system and divides industrial activity into _____ sectors compared to the SIC system which used _____ divisions.

The North American Industry Classification system NACIS replaced the standard industrial classifications SIC system and divides industrial activity into 20 sectors compared to the SIC system which used 10 divisions.

a single industry classification system used by the United States, Canada and Mexico to generate comparable statistics

The North American Industry classification system

What does the buying center include?

The buying center includes users, influencers, buyers, deciders, and gatekeepers.

Firms that purchase products from manufacturers and resell the products to other firms in the distribution system are known as..

Wholesalers

What is the primary distinction between a line extension and a product modification?

With a line extension, the original product remains in the product line, while in a product modification, the original product is replaced by the new product.

a firm engaging in __________________ would not develop international marketing strategies but would have international distrubutors, foreign firms, or selected customers purchase their products

a firm engaging in LIMITED EXPORTING would not develop international marketing strategies but would have would have international distributors, foreign firms or selected customers purchase their products

inelastic demand:

a price increase did not affect the quantity purchased

he characteristic of online media that is defined as the ability of the marketer to identify customers before they make a purchase is called

addressability

An organizational structure that centralizes all of the responsibility for international operations is called

an organisation structure that centralizes all of the responsibility for international operations is called: international division

Individuals who are members of the buying center and serve in a purchasing agent capacity are also called

buyers

Which of the following is a disadvantage of reciprocity?

can result in less than optimal purchases for the buyer

Companies that are described as ________ were founded with the knowledge and resources to expedite their commitment and investment in the global marketplace and typically represent small technology-based firms that earn as much as 70% of their sales outside their domestic home market.

companies that are described as BORN GLOBALS were founded with the knowledge and resources to expedite their commitment and investment in the global marketplace and typically represent a small technology based firms that earn as much as 70% of their sales outside their domestic home market

In response to digital marketing strategies, consumers are changing their information searches and _______ to fit with the emerging technologies and trends.

consumption behaviors

demand for business product is _____ because producers purchase products for direct or indirect use in the production of goods and services in order to satisfy customers

demand for business product is DERIVED because producers puchase products for direct or indirect use in the production of goods and services in order to satisfy the customers needs

What is the second stage of the business buying decision process?

develop product specifications

The members of a venture team come from

different functional areas of orientation

The use of digital media, including the Internet and mobile and interactive channels to develop communication and exchanges with customers is

digital marketing

the selling of products at unfairly low prices is known as

dumping

_____________ _______ bring together buyers and sellers from different countries and collect a commission for arranging sales.

export agents bring together buyers and sellers from different countries and collect a commission for arranging sales

Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) ____ structure.

export department

Which of the following activities are not conducted by the World Trade Organization (WTO)?

extends business loans through the world bank

When Coca-Cola added Coca-Cola Zero to its line of Coca-Cola soft drinks, the firm was using _____ branding.

family branding

Williams Tool & Die manufactures steel and aluminum parts for a variety of automobile manufacturers such as head rest standards and aluminum inserts for beverage holders. Williams Tool & Die typically contracts with the automobile manufacturers for a two-year time frame at an agreed-upon price for the parts. Recently, the price of steel and aluminum has increased, resulting in increased production costs for Williams Tool & Die. However, Williams Tool & Die cannot pass along a price increase to its customers and must absorb the increases in raw materials. The demand for steel and aluminum for Williams Tool & Die is

inelastic because a price increase or decrease does not impact the demand

Stepan Chemical, based in Illinois, operates several ________ as part of its global footprint where it has centralized the responsibility of international operations such as human resources, sales, and production into one unit that serves as the central point for all information flows related to the international operations. The company maintains these offices in Mexico, Europe, and Singapore to serve its growing market in Asia.

international divisions

In many developing countries around the world, technology is enabling opportunities to "leapfrog" existing technology. What does this mean?

more advanced technology is these countries even thought they lack technological infrastructures

Most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for ____ in order to achieve their quality goals.

most businesses try to control the level of quality in the parts they buy from suppliers. Most firms develop standards for THE PERCENTAGE OF DEFECTS ALLOWED in order to achieve their quality goals

In a brand licensing arrangement, the licensee is responsible for all of the following, except

providing trademark protection for the brand

A(n) _____ market is defined as individuals and business organizations that buy finished goods and resell them to make a profit.

reseller market

a ___________ market is defined as individuals and business organizations that buy finished goods to resell them and make a profit

reseller market

Sometimes companies will decide to launch products in stages rather than all at once in a process called

rollout

The _____ method of business buying entails evaluating a portion of the product on the assumption that its characteristics represent the entire lot.

sampling

a company's decision to use only one supplier for a product category

sole sourcing is when a company decides to use only one supplier for a product category

According to the Forrester Research group, the largest segment of Social Technographics in most countries is the

spectators

In the growth stage of the product life cycle, a typical marketing strategy seeks to

strengthen market share and position the product favorably against aggressive competitors by emphasizing its benefits

The major characteristic of a private brand is that

the manufacture is not identified on the product

The unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as ____________.

the unconscious reference to one's own cultural values, experiences, and knowledge when encountering new and different cultures is known as: self- refrence criterion

The business buying decision process includes five steps or stages in the process. One stage, the _____, is characterized by the business conducting an evaluation of each component of a potential purchase by examining the quality, design, materials, or item reduction in order to purchase the needed items in the most cost-effective manner.

third stage; search and evaluation of potential products and suppliers

The search and evaluation of possible products and suppliers is the _____ step in the business buying decision process.

third step

The buying center would like to include what entities?

users