Chapter 8, 9, 10 Marketing
In relation to international marketing, which of the following best describes direct ownership?
A company owns subsidiaries or facilities in foreign countries
What is the primary distinction between a joint venture and a strategic alliance in international marketing?
A joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work together.
What are the 2 ways governments make purchases?
Bids and negotiated contracts
Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics?
Description
T o F From a cultural perspective, countries that are members of the European Union tend to act as a single entity
False
T o F Opportunities for international marketers are limited to industrial nations with the highest incomes.
False
T o F Orders placed by business customers are usually smaller and more numerous than consumer sales
False
T o F There is little or no difference between wholesalers' customers and retailers' customers
False
T o F. All companies, no matter what their size or market position, maintain only one buying center
False
When products are introduced from one nation into another, acceptance is more likely if the two cultures are different.
False
Which type of business market tends to have the most complex buying procedures?
Government
Which of the following is often used to raise revenue for a country and/or to protect domestic products?
Import tariff
Which of the following alliances/ agreements is the United States NOT a part of?
MERCOSUR
Retailers like Staples and PetSmart are considered to be members of which business market?
Reseller
Which of the following statements about reseller markets is false ?
Resellers are not concerned with how much space the product takes up as long as it has a high price.
T o F An accounting firm contracts with a local janitorial services company for janitorial services twice a week. The accounting firm is outsourcing for its janitorial service needs
True
T o F Business customers generally seek to obtain detailed information about a product before purchasing it.
True
T o F Buyers in producer markets purchase either raw materials, semi-finished products, or finished products
True
T o F Customs and taboos are culture- bound and should be taken into consideration when products are marketed in a foreign environment
True
T o F Globalization of marketing involves developing marketing strategies as though the entire world ( or major regions of it) were a single entity
True
T o F In some cases, the types of services offered by a supplier may constitute a competitive advantage over suppliers of similar products.
True
T o F Industrial classification systems allow marketers to divide business customers into groups based mainly on the types of goods and services provided
True
T o F Reseller markets consist of intermediaries that buy finished goods and resell them for profit
True
T o F Today many firms are more interested in building marketing strategies around similarities that exist among countries than customizing around their differences
True
T o F a multinational enterprise is a firm that has operations or subsidiaries located in many countries
True
In elastic demand simply means that
a price increase or decrease will not significantly change the demand for an item
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.
economic
Both Adidas and Brooks standardize many of their shoe models and colors worldwide, which is an example of
globalization
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)
import tariff
The purchase of products from a foreign source is called
importing
One of the guaranteed constants in the global business environment is
instability
When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in
limited exporting
Wegmans recently placed an order with Applegate. The typical weekly order is for 10 cases; however 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?
modified rebuy
Most business purchases can be classified as belonging to one of three types:
modified rebuy, new-task, or straight rebuy
All of the following are important concerns of business customers except
obtaining products that exceed specifications to ensure the best possible product performance
Institutional markets are
organizations that seek nonbusiness goals.
The NAICS classification is based on
production activities
The term dumping refers to the sale of
products sold in foreign countries at unfairly low prices.
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
specifications
The United States AIr Force purchases uniforms from a single supplier. For the last 25 years, the trousers purchased from this supplier have not changed and have been bough every six months, in multiple sizes. This example is called a
straight rebuy
