Chapter 14

50) ________ refers to anything that disrupts the audience's ability to receive and interpret a promotional message. A) Noise B) Interpolation C) Feedback D) Resonance

A) Noise

57) ________ is often necessary as a communication strategy when many important differences exist between the home and target markets. A) Product invention B) Product adaptation C) Dual adaptation D) Dual extension

A) Product invention

Scenario: Silk Industries LLC Silk Industries LLC comprises two major divisions: consumer products and industrial products. The consumer product line of the company is well-recognized and consists of loyal customers worldwide. The management is considering different types of promotional strategies for the two product divisions. 81) If Silk Industries is interested in creating buyer demand that will encourage channel members to stock its products, it should employ ________. A) a pull strategy B) a push strategy C) horizontal integration D) vertical integration

A) a pull strategy

40) As a promotional strategy, manufacturers of products that are commonly sold through department and grocery stores often use ________. A) a push strategy B) a pull strategy C) retrenchment strategy D) stability strategy

A) a push strategy

32) Which of the following is a marketplace of underground transactions that typically appears because a product is either illegal or tightly regulated? A) black market B) niche market C) two-sided market D) vertical market

A) black market

59) The physical path a product follows on its way to customers is called a(n) ________. A) distribution channel B) demand chain C) critical path D) external value network

A) distribution channel

88) If Old World adopts different selling prices in export markets than it has in the British market, it would be following a ________ pricing strategy. A) dual B) transfer C) target D) worldwide

A) dual

75) A pricing policy in which a product has a different selling price in export markets than it has in the home market is called ________. A) dual pricing B) cost-plus pricing C) penetration pricing D) premium pricing

A) dual pricing

62) A(n) ________ channel creates a barrier that makes it difficult or impossible for outsiders to penetrate. A) exclusive B) intensive C) selective D) two-level

A) exclusive

63) A(n) ________ channel gives producers a good deal of control over the sale of their product by channel members such as wholesalers and retailers. A) exclusive B) intensive C) two-level D) selective

A) exclusive

28) Governments in developing countries impose fewer consumer protection laws in order to ________. A) hold down production costs and consumer prices B) enable companies to focus on profit-making exclusively C) decrease the flow of foreign direct investment into the country D) decrease the complexity of the legal procedures for foreign direct investment

A) hold down production costs and consumer prices

66) A(n) ________ channel provides buyers with location convenience because of the large number of outlets through which a product is sold. A) intensive B) exclusive C) one-level D) zero-level

A) intensive

79) Upper or lower limits placed on the prices of products sold within a country are known as ________. A) price controls B) transfer prices C) price escalators D) arm's length prices

A) price controls

52) Which of the following communication strategies uses the same home-market product and marketing promotion in target markets? A) product/communications extension B) product extension/communications adaptation C) product adaptation/communications extension D) product/communications adaptation

A) product/communications extension

37) A promotional strategy designed to create buyer demand that will encourage channel members to stock a company's product is called a ________. A) pull strategy B) push strategy C) retrenchment strategy D) stability strategy

A) pull strategy

44) A ________ strategy is best suited for the promotion of industrial products because potential buyers usually need to be informed about a product's special features before purchase. A) push B) pull C) stability D) differentiation

A) push

71) Which of the following is implied by a product with a low value density? A) the distribution system is more localized B) the product is more valuable C) the cost of shipping the product is negligible D) the product is processed in areas away from their original locations

A) the distribution system is more localized

Scenario: Scooters Inc. Scooters Inc. is a producer of pricey scooters. The company's profits come mostly from the sales of its luxury line that caters to the esteem needs of the rich population. Ben Driven, vice president of marketing for Scooters Inc., has been asked to review the company's pricing strategy. 89) Ben knows that a pricing policy in which one selling price is established for all international markets is called ________. A) worldwide pricing B) value-based pricing C) dual pricing D) arm's length pricing

A) worldwide pricing

67) ________ refers to the number of intermediaries between producer and buyer. A) Critical path B) Channel length C) Frequency D) Value density

B) Channel length

30) ________ are imitation products passed off as legitimate trademarks, patents, or copyrighted works. A) Giffen goods B) Counterfeit goods C) Inferior goods D) Intangible goods

B) Counterfeit goods

46) Which of the following statements is true about international promotions? A) Most companies standardize all aspects of their international promotions to cut costs. B) Firms that standardize advertising often control campaigns from the home office. C) Companies that adapt their advertising to different markets project a consistent brand image. D) Companies discourage blending product and promotional strategies in a communication process.

B) Firms that standardize advertising often control campaigns from the home office.

43) Which of the following circumstances would best require a pull strategy to be implemented for product promotion? A) channel members wield relatively lesser power compared to that of producers B) buyers display a great deal of brand loyalty to a particular product C) distribution channels are short D) buyers need to be informed about the features of a product before purchase

B) buyers display a great deal of brand loyalty to a particular product

49) Once an audience receives a message, they interpret the meaning of the message by ________ it. A) preprocessing B) decoding C) parsing D) compiling

B) decoding

58) Which of the following refers to planning, implementing, and controlling the physical flow of a product from its point of origin to its point of consumption? A) customization B) distribution C) communication D) promotion

B) distribution

80) Which of the following occurs when the price of a good is lower in export markets than it is in the domestic market? A) skimming B) dumping C) transfer pricing D) price escalation

B) dumping

48) Which of the following occurs when an idea to be communicated is translated into images, words, and symbols? A) compiling B) encoding C) parsing D) processing

B) encoding

51) Which of the following reflects the correct sequence of the marketing communication process? A) promotional message; encoding; decoding; feedback B) encoding; promotional message; decoding; feedback C) promotional message; decoding; feedback; encoding D) encoding; decoding; promotional message; feedback

B) encoding; promotional message; decoding; feedback

Scenario: Old World Ltd. Old World Ltd., a London-based furniture manufacturer, is establishing its global distribution, pricing, and promotion strategies. Being new to global business, the firm is seeking your help in making its decisions. 85) If Old World wants to grant the right to sell its furniture to only a limited number of resellers, it should consider a(n) ________ channel. A) intensive B) exclusive C) two-level D) selective

B) exclusive

61) A distribution channel in which a manufacturer grants the right to sell its products to only one or a limited number of resellers is called a(n) ________. A) intensive channel B) exclusive channel C) zero-level channel D) two-level channel

B) exclusive channel

86) If Old World wants to have its furniture sold through as many distribution outlets as possible, it should consider a(n) ________ channel. A) exclusive B) intensive C) one-level D) zero-level

B) intensive

60) Companies along a distribution channel that work together in delivering products to customers are called ________. A) subsidiaries B) intermediaries C) value chains D) value networks

B) intermediaries

29) All company and product brand names are made up of semantic elements or language building blocks called ________. A) aesthetics B) morphemes C) hybrid words D) propositions

B) morphemes

76) When a product has a higher selling price in the target market than it does in the home market or the country where production takes place, it is called ________. A) price skimming B) price escalation C) price dispersion D) price fixing

B) price escalation

53) Which of the following communication strategies expands the same product into new target markets but alters its marketing promotion? A) product/communications extension B) product extension/communications adaptation C) product adaptation/communications extension D) product/communications adaptation

B) product extension/communications adaptation

36) Which of the following promotional strategies is being used by a company that hires a fleet of trucks to drive through village squares and hand out free trial packages to potential end users? A) push strategy B) pull strategy C) retrenchment strategy D) differentiation strategy

B) pull strategy

41) A ________ is used for a product's promotion when there are many levels of intermediaries in its distribution channel. A) push strategy B) pull strategy C) retrenchment strategy D) stability strategy

B) pull strategy

84) If Silk Industries pressures channel members to carry a product and promote it to final users, it is using ________. A) pull strategy B) push strategy C) vertical integration D) horizontal integration

B) push strategy

77) Which of the following refers to the price charged for products sold between a company's divisions or subsidiaries? A) dual pricing B) transfer price C) price skimming D) arm's length price

B) transfer price

33) Which of the following is among the most commonly counterfeited products? A) aircraft parts B) watches C) surgical equipment D) medicines

B) watches

31) Which of the following is true of counterfeit goods? A) Developed nations normally have the most active counterfeiting markets. B) Counterfeiting is more common among less visible local brands than global brands. C) Most counterfeit products are imitations of products that normally enjoy legal protection. D) Engineered industrial components and medicines are among the few categories of products that cannot be counterfeited.

C) Most counterfeit products are imitations of products that normally enjoy legal protection.

68) Which of the following is also known as direct marketing? A) an intensive channel B) an exclusive channel C) a zero-level channel D) a two-level channel

C) a zero-level channel

72) Which of the following products has a low value-density ratio? A) semiconductors B) emerald C) crude oil D) premium perfumes

C) crude oil

91) Scooters Inc. has traditionally sold its products at one price in the domestic market and at another price in export markets, which is called a(n) ________ pricing strategy. A) target B) value C) dual D) arm's length

C) dual

69) A(n) ________ channel places a single intermediary between the producer and the buyer. A) intensive B) exclusive C) one-level D) two-level

C) one-level

54) Which of the following communication strategies adapts a product to the requirements of the international market while retaining its original marketing communication? A) product/communications extension B) product extension/communications adaptation C) product adaptation/communications extension D) product/communications adaptation

C) product adaptation/communications extension

34) The term ________ refers to a company's efforts to reach distribution channels and target customers through communications such as personal selling, advertising, public relations, and direct marketing. A) social marketing B) viral marketing C) promotion mix D) positioning

C) promotion mix

39) Which of the following is a promotional strategy designed to pressure channel members to carry a product and promote it to final users? A) differentiation strategy B) retrenchment strategy C) push strategy D) pull strategy

C) push strategy

83) Which of the following would be most appropriate for its products sold through grocery stores? A) horizontal integration B) vertical integration C) push strategy D) pull strategy

C) push strategy

45) A company that makes its marketing program elements uniform, targeting an entire region with similar products, is demonstrating ________. A) customization B) segmentation C) standardization D) differentiation

C) standardization

74) A pricing policy in which one selling price is established for all international markets is called ________. A) dual pricing B) value-based pricing C) worldwide pricing D) target pricing

C) worldwide pricing

87) Old World should pursue a(n) ________ channel if it decides to greatly intensify its direct marketing efforts. A) intensive B) one-level C) zero-level D) selective

C) zero-level

35) ________ is a major component of a promotion mix. A) Distribution B) Market segmentation C) Pricing D) Public relations

D) Public relations

73) Which of the following is true of the value densities of products? A) The cost of transporting goods with high value-density ratios is high relative to their value. B) Products with high value-density ratios are integrated into the manufacturing process at points close to their original locations. C) Most commodities, including cement, iron ore, and crude oil, have high value-density ratios. D) The lower a product's value density, the more localized the distribution system.

D) The lower a product's value density, the more localized the distribution system.

90) Because Scooters Inc. caters to a very narrow niche of wealthy individuals, the CEO is interested in implementing a worldwide pricing scheme. Which of the following is most likely a reason for the establishment of such a scheme? A) Their production costs differ from market to market. B) The currency values fluctuate fairly predictably. C) Their distribution channels are lengthy in each market. D) Their customers have similar levels of purchasing power.

D) Their customers have similar levels of purchasing power.

78) The free-market price that unrelated parties charge one another for a specific product is called a(n) ________. A) worldwide price B) transfer price C) dual price D) arm's length price

D) arm's length price

56) A ________ strategy can be implemented successfully for communicating promotional messages only if a sufficiently large and profitable market segment exists. A) dual extension method B) product extension/communications adaptation method C) product adaptation/communications extension method D) dual adaptation method

D) dual adaptation method

65) A(n) ________ channel does not create strong barriers to channel entry for other producers, nor does it provide much control over reseller decisions such as what competing brands to sell. A) one-level B) zero-level C) exclusive D) intensive

D) intensive

64) A distribution channel in which a producer grants the right to sell its product to many resellers is referred to as a(n) ________. A) one-level channel B) zero-level channel C) exclusive channel D) intensive channel

D) intensive channel

47) The process of sending messages about products to target markets is called ________. A) customer relations B) customer service C) market segmentation D) marketing communication

D) marketing communication

55) Which of the following communication strategies adapts both the product and its marketing communication to suit the target market? A) product/communications extension B) product extension/communications adaptation C) product adaptation/communications extension D) product/communications adaptation

D) product/communications adaptation

42) Which of the following circumstances would best require a push strategy to be implemented for product promotion? A) channel members wield a great deal of power relative to that of producers B) distribution channels are lengthy C) buyers display a great deal of brand loyalty to particular product D) products in question are industrial goods

D) products in question are industrial goods

Scenario: Silk Industries LLC Silk Industries LLC comprises two major divisions: consumer products and industrial products. The consumer product line of the company is well-recognized and consists of loyal customers worldwide. The management is considering different types of promotional strategies for the two product divisions. 82) Which of the following would be most appropriate for its consumer product line? A) horizontal integration B) vertical integration C) push strategy D) pull strategy

D) pull strategy

38) Which of the following is a push strategy that companies use to promote their products? A) mass media advertising B) direct marketing techniques C) free trial packages D) retail product stocking

D) retail product stocking

70) The value of a product relative to its weight and volume is called its ________. A) face value B) value investing C) real value D) value density

D) value density