MKTG 445: Final Exam
What was specifically designed for Coca-Cola to differentiate Coke from other soft drinks? A. Unique bottle shape and texture B. Product flavor C. Premium pricing D. Freshness guarantee E. The label
A. Unique bottle shape and texture
Gray markets flourish when ________. A. a product is in short supply B. supply exceeds demand C. a penetration pricing strategy is used D. ethnocentric pricing policies are used E. there is a low margin on goods
A. a product is in short supply
In 2011, Walmart purchased a majority stake in Massmart, a South African regional management group. Walmart's retail market entry strategy in South Africa was through ______________________. A. acquisition B. joint venture agreement C. greenfield investment D. franchise agreement E. a strategic alliance
A. acquisition
In the United States, ninety percent of all coupons are distributed in a printed ride-along vehicle known as ________. A. a free-standing insert (FSI) B. an advertorial C. on-pack coupons D. in-pack coupons E. a coupon book
A. a free-standing insert (FSI)
One of the risks of forming a global strategic partnership (GSP) is that although partners are pursuing mutual goals in some areas, they are potentially ________. A. competitors in other areas B. compromising in other areas C. looking around for an acquisition opportunity D. creating profits in other areas E. licensees in other areas
A. competitors in other areas
Transfer pricing refers to ________. A. intracorporate exchanges B. intercompany sales C. transfer of goods from one retailer to another D. intracompany sales E. business-to-business sales
A. intracorporate exchanges
A modified hierarchy has been proposed for Asia where the top three levels of affiliation, admiration, and status each emphasize ________. A. social needs B. self-actualization C. physiological needs D. psychological needs E. personal esteem
A. social needs
One of the key advantages to licensing as a market-entry strategy is ____________________. A. the speed of diffusion of the new product or technology B. increased market share C. brand awareness D. enabling a company to "borrow" another company's resources E. elimination of competition
A. the speed of diffusion of the new product or technology
In Mumbai, an Indian conglomerate built a luxurious hotel that operates under the Hilton name and "flag." This is an example of which of the following personal selling approaches? A. Management-only agreement B. Sales agents C. Joint venture D. contract producer E. Exclusive licensee
A. Management-only agreement
Which of the following is the strategic alternative where both the product and at least one of the promotional elements are adapted for a particular country market? A. Product-communication adaptation (dual adaptation) B. Innovation C. Product adaptation-communication extension D. Product extension-communication adaptation E. Product-communication extension (dual extension)
A. Product-communication adaptation (dual adaptation)
Building on the notion of customer relationship management (CRM), __________calls for treating different customers differently. A. one-to-one marketing B. infomercials C. catalogs D. Interactive TV (ITV) E. direct mail
A. one-to-one marketing
Which of the pricing alternatives calls for a per-unit price of a product to be the same no matter where in the world it is being sold? A. Adaptation pricing B. Extension pricing C. Geocentric pricing D. Corporate pricing E. Polycentric pricing
B. Extension pricing
Why is product placement in television programming more effective than traditional television advertising? A. Product placement is usually more direct in its message. B. Fewer viewers are being exposed to television advertising. C. Television advertising is not effective at all. D. Product placement has subliminal messaging. E. Product knowledge is increased with product placement.
B. Fewer viewers are being exposed to television advertising.
Which of the following types of retailers have a huge, hybrid retailing format? A. Category killers B. Hypermarket C. Discount retailers D. Supermarkets E. Supercenters
B. Hypermarket
________ is/are a form of paid television programming in which a particular product is demonstrated, explained, and offered to viewers who call a toll-free phone number shown on the screen. A. Teleshopping B. Infomercials C. Telemarketing D. Catalogs E. Interactive television (ITV)
B. Infomercials
Which of the following transportation mode choices involves a combination of land and water shipping from producer to customer? A. Containerization B. Intermodal C. Pipeline D. Inland water transportation E. Rail-sea transportation
B. Intermodal
________ represents a special category of cooperative strategy in Japan that has been described as "a fighting clan in which business families join together to vie for market share." A. Zaibatsu B. Keiretsu C. Fuyo Group D. Mitsubishi E. Mitsui Group
B. Keiretsu
Coca-Cola bottles and distributes Deep RiverRock drinking water in Ireland and Great Britain. Dasani is marketed in the U.S. These are examples of which of the following? A. Tiered brand B. Local brand C. Global brand D. Co-brand E. International brand
B. Local brand
Which of the following refers to a type of brand that has achieved success in a single national market? A. Transformed brand B. Local brand C. Generic brand D. International brand E. Global brand
B. Local brand
A buy-one-get-one sales promotion is considered which of the following? A. Bundling B. Couponing C. Nonprice promotion D. Trade promotion E. Price promotion
C. Nonprice promotion
Chapter 10
Chapter 10
Chapter 11
Chapter 11
Chapter 12
Chapter 12
Chapter 13
Chapter 13
Chapter 14
Chapter 14
Chapter 9
Chapter 9
In an advertising agency, the individual responsible for the written materials used in print advertising and the scripts used in broadcast advertising is the ________. A. media specialist B. art director C. graphic artist D. creative director E. copywriter
E. copywriter
Some consumers flaunt their wealth or status by buying expensive products that others will notice. The marketing term for this is ________. A. premiumisation B. status symbols C. admiration-based D. status seeking E. luxury badging
E. luxury badging
BP's massive oil spill in the Gulf of Mexico is an example of ________. A. corporate advertising B. public relations C. advocacy advertising D. image advertising E. negative publicity
E. negative publicity
The main disadvantage of ________ is that it ignores demand and competitive conditions in the target markets. A. market penetration pricing B. companion pricing C. market skimming pricing D. cost-based pricing E. rigid cost-plus pricing
E. rigid cost-plus pricing
Research, design, and testing are each a part of ________. A. extension strategy B. the not-invented-here (NIH) syndrome C. global product planning strategic alternatives D. country-of-origin effect E. the new-product continuum
E. the new-product continuum
If an advertising agency, in addition to creating ads, provides other services such as market research, media buying, and direct marketing, it is considered a(n) ________. A. advertising organization B. proprietary agency C. global agency D. in-house agency E. full-service agency
E. full-service agency
Considering a licensee is typically a local business, what is the main benefit of a licensing agreement? A. Avoidance of barriers for foreign companies doing business B. Expanded market control C. Reduced competition D. Corporate control E. Positioning
A. Avoidance of barriers for foreign companies doing business
What is the purpose of social media as a PR tool? A. Consumer engagement with the brand B. Product promotion C. To generate publicity D. To generate controversy E. Brand awareness
A. Consumer engagement with the brand
Which of the following individuals would typically be responsible for the content of ads based on rational appeal? A. Copywriter B. Creative director C. Graphic artist D. Art director E. Media specialist
A. Copywriter
Which of the following steps in the strategic/consultative selling model requires a general understanding of buyer behavior, collection of consumer information, and building a list of potential customers? A. Customer strategy B. Presentation strategy C. Product strategy D. Relationship strategy E. Personal selling philosophy
A. Customer strategy
What is the main advantage that the newcomers to quadrant D of the retail classifying matrix (like Carrefour and Walmart) bring to the global market? A. Distribution competence B. Convenience C. Low prices D. Brand awareness E. Accessibility
A. Distribution competence
Based on the global retailing market entry strategy framework, which of the following is most appropriate for entering a market where the barriers to entry are low yet the market is culturally distant? A. Franchising B. Joint venture C. Licensing D. Organic growth E. Acquisition
A. Franchising
Which of the following has the greatest appeal to local entrepreneurs who are anxious to learn and apply Western-style marketing techniques? A. Franchising B. Subsidiaries C. Joint ventures D. Licensing E. Mergers
A. Franchising
Why do some major global companies rely on in-house marketing and in-house staff for creative work rather than an ad agency? A. Greater control of message and media B. More creative options C. Avoidance of agency fees D. Better understanding of digital media E. Better understanding of the foreign market
A. Greater control of message and media
Which of the following approaches is best suited to a global market where there is need but not the needed purchasing power to buy either the existing or adapted product? A. Innovation B. Product-communication adaptation (dual adaptation) C. Product adaptation-communication extension D. Product-communication extension (dual extension) E. Product extension-communication adaptation
A. Innovation
In the past ten years, the number of automobiles in Moscow has increased from 300,000 to 3 million. As a result, which of the following is the advertising medium of choice in Moscow? A. Internet B. Television C. Newspaper D. Radio E. Billboards
A. Internet
Why do companies that make every effort to comply with applicable laws and regulations often find themselves in tax court over transfer pricing? A. It can be perceived as tax avoidance. B. It is perceived as a form of price fixing. C. It is perceived as a potential for dumping. D. It is seen as an unfair trade practice. E. It is not transparent.
A. It can be perceived as tax avoidance.
Why does the sales demonstration step of the strategic/consultative personal selling model represent an important advantage as a promotional tool? A. It involves the prospect's senses. B. It provides a concise message about the product. C. It requires active listening. D. It provides an opportunity to overcome objections. E. It reflects persistence.
A. It involves the prospect's senses.
When forming a global strategic partnership (GSP), which of the following factors is considered critically important? A. Learning from partners B. Common pursuit of market leadership C. Similar organizational structures D. Profitability E. Vertical relationship structure
A. Learning from partners
What strategy do large supermarket operators, like Carrefour, use to compete against hard-discount retailers, like Aldi and Lidl? A. Offering more own-brand products at lower prices B. Slashing prices on global brands C. Forming joint ventures with local companies D. Offering only European brands E. Building larger stores
A. Offering more own-brand products at lower prices
Which of the following types of retail formats was created to give manufacturers of well-known brands a retail distribution point for excess inventory, out-of-date merchandise, or factory seconds? A. Outlet stores B. Shopping malls C. Superstores D. Hypermarkets E. Specialty retailers
A. Outlet stores
A large pizza at Pizza Hut in Seattle is $10. In Sao Paulo the same pizza is $30USD. What pricing policy is Pizza Hut using for pricing decisions? A. Polycentric B. Extension C. Ethnocentric D. Geocentric E. Global
A. Polycentric
Why do consumers in India prefer European products like Coach and Louis Vuitton over "Made in India" products? A. Products made in Europe carry a great appeal as symbols of success. B. Indian products are too bright and colorful. C. The Indian consumers want to take advantage of new accessibility. D. Indian products are more expensive than imported products. E. Indian products are of low quality.
A. Products made in Europe carry a great appeal as symbols of success.
Which of the following is a U.S. technology alliance created to keep the U.S. chip-industry from losing market share to Japan? A. Sematech B. Intel C. Microsoft D. General Motors E. Proctor & Gamble
A. Sematech
Which of the following is a "core" recommendation that comes from the guidelines for working with intermediaries in global markets? A. The manufacturer needs to take the lead. B. Get everything in writing. C. Channel decisions aren't very important. D. Direct involvement saves money. E. The goal of all intermediaries is to maximize profits for the manufacturer.
A. The manufacturer needs to take the lead.
What is the purpose of the strategic/consultative selling model? A. To provide a checklist for sales personnel. B. To provide an outline for sales presentations. C. To provide a detailed approach to the sales call. D. To provide a handbook for product knowledge. E. To develop a framework for product development.
A. To provide a checklist for sales personnel.
In 2008, Apple introduced the second-generation iPhone to 21 countries simultaneously using the same message and promotional appeals used in the United States. This is an example of __________. A. product-communication extension (dual extension) B. innovation C. product-communication adaptation (dual adaptation) D. product extension-communication adaptation E. product adaptation-communication extension
A. product-communication extension (dual extension)
What is the "law of one price" in global marketing? A. Internet prices vary for each market. B. All customers in the market get the best product available for the best price. C. It relies on dynamic pricing. D. Each product is priced the same in every market. E. There is one price in the home market and another in all other foreign markets.
B. All customers in the market get the best product available for the best price.
Which of the following is the person who typically has a staff who choose graphics, images, type styles, and other visual elements that appear in an ad? A. Account executive B. Art director C. Creative director D. Copywriter E. Media specialist
B. Art director
________ is defined as perceptions about a brand as reflected by brand associations that consumers hold in their memories. A. Brand value B. Brand image C. Branding D. Brand equity E. Brand awareness
B. Brand image
An HP color printer for home use retails for $89. A set of compatible ink cartridges sells for $79. The average home-office will use one set of cartridges each month. This is what type of pricing strategy? A. Export pricing B. Captive pricing C. Market skimming D. Market penetration E. Cost-based pricing
B. Captive pricing
Which of the following is credited with being the driving force behind South Korea's economic growth between 1960 and 1990? A. Zaibatsu B. Chaebol C. Keiretsu D. U.S. financial aid E. President Kim Dae Jung
B. Chaebol
In which step of the six-step presentation plan does the sales person ask for the sale? A. Sales demonstrations B. Close C. Negotiation D. Presentation E. Approach
B. Close
Which of the following refers to a method of guarding against unintended transfers of technology in a GSP? A. Transparency limitation B. Collaboration section C. Corporate amnesia D. Non-compete clauses E. Agreement of confidentiality
B. Collaboration section
Which of the following disruptive advancements in transportation revolutionized the way goods are shipped, thereby supporting globalization? A. High-speed rail systems B. Containerization C. GPS technology D. The Internet E. Construction of the Panama Canal
B. Containerization
Which of the following is the first step in the strategic/consultative selling modellong dash—the commitment to the marketing concept and to a role of helping customers? A. Develop a customer strategy. B. Develop a personal selling philosophy. C. Develop a product strategy. D. Develop a relationship strategy. E. Develop a presentation strategy.
B. Develop a personal selling philosophy.
Worldwide, which media advertising expenditures are projected to soon surpass television advertising spending for the first time? A. Billboards B. Digital C. Internet D. Newspaper E. Radio
B. Digital
Which of the following best explains why the direct sales channel is the most effective channel in most Asian countries? A. Fixed costs are reduced with direct sales. B. Direct sales are based on relationships. C. Direct sales are more cost-effective. D. Direct sales provide greater channel control. E. Direct sales have a greater margin.
B. Direct sales are based on relationships.
In which of the following innovation categories do products share certain features with earlier products while incorporating new, added-value features? A. Discontinuous innovation B. Dynamically continuous innovation C. Continuous innovation D. Product transformation E. Disruptive innovation
B. Dynamically continuous innovation
Boeing entered into an agreement with China for the sale of aircraft. In return for the sale, China demanded a transfer of technology and/or production amounting to 25% of the purchase price. Which type of countertrade does this represent? A. Compensation trading B. Offset C. Barter D. Switch trading E. Counter-purchase
B. Offset
Which of the following is the major reason a domestic manufacturer will switch to offshore sourcing? A. Offshore sourcing provides job opportunities in other countries. B. Offshore sourcing keep costs and prices competitive. C. Offshore sourcing typically improves brand image. D. Offshore sourcing typically produces a better quality product. E. Offshore sourcing typically reduces distribution costs.
B. Offshore sourcing keep costs and prices competitive.
Which of the following is a major problem in connection with joint ventures in developing countries? A. Unwillingness of governments to approve joint ventures B. Outdated regulatory and legal systems C. Lack of understanding of the scope of global strategic partnerships D. Increased tariffs on a joint venture E. Lack of sufficient labor
B. Outdated regulatory and legal systems
India lacks a developed highway system. This infrastructure weakness has the largest effect on which of Walmart's distribution activities in India? A. Inventory management B. Physical distribution and logistics C. Communication D. Order processing E. Warehousing
B. Physical distribution and logistics
Which of the following global companies is ranked number one in worldwide ad spending in 2016? A. McDonald's B. Procter & Gamble C. PepsiCo D. Unilever E. Coca-Cola
B. Procter & Gamble
Which of the following is a unique kind of brand exposure by arranging for branded products to appear in television programs or movies? A. Celebrity endorsement B. Product placement C. Support media D. Interactive television E. Sponsorship
B. Product placement
One way for a country to curb runaway inflation is to ________. A. subsidize domestic products B. impose price controls C. discourage exporting D. encourage dumping E. increase manufacturing capacity
B. impose price controls
It is recommended that a(n) ________ be used when a company enters a new global market for the first time. A. import facilitator B. local distributor C. export agent D. middleman E. manufacturer's representative
B. local distributor
Gray market goods are exported from one country and enter another country through ________. A. a quota system B. parallel importing C. preferential trade agreements D. price transparency E. government subsidies
B. parallel importing
In distribution terms, Coca-Cola's capability to globally put a Coke "within an arm's reach" is a result of a strategy to create ________. A. brand awareness B. place utility C. time utility D. information utility E. form utility
B. place utility
On a worldwide basis, Red Bull provides cans of Red Bull to young people on college campuses and at sponsored events. This strategy of sampling is called ___________________. A. a price promotion B. point of use sampling C. point of purchase sampling D. couponing E. a personal selling model
B. point of use sampling
Which of the following is considered traditional support media to a direct mail campaign? A. Internet "pop-ups" B. Out-of-home (OOH) advertising C. Coupons D. Newspaper advertising E. Interactive television (ITV)
B. Out-of-home (OOH) advertising
Which of the following is the term used to identify an employee who is sent from his or her home country to work abroad? A. A host-country national B. Contracted labor C. An expatriate D. A contract manufacturer E. A third-country national
C. An expatriate
In general, what impact does dumping have on global consumer prices? A. There is no impact on consumer prices B. Consumer prices increase C. Consumer prices are lower to be competitive D. Quotas are established E. Taxes and tariffs increase
C. Consumer prices are lower to be competitive
Which of the following market expansion strategies involves targeting a limited number of customer segments in a few countries? A. Country diversification and market concentration B. Country concentration and market diversification C. Country and market concentration D. Country and market penetration E. Country and market diversification
C. Country and market concentration
Which of the following market expansion strategies is used by most global or transnational companies? A. Country concentration and market diversification B. Country and market concentration C. Country and market diversification D. Country diversification and market concentration E. Market penetration and market diversification
C. Country and market diversification
In addition to increasing spending on Internet advertising, promotional budgets reflect increased spending for which of the following? A. Buyer behavior research B. Direct mail C. Customer Relationship Management (CRM) D. Billboards E. Cinema advertising
C. Customer Relationship Management (CRM)
In many emerging markets, P&G uses "reverse engineering" where product attributes and manufacturing processes are adjusted to meet various pricing targets. This example of target costing serves which of the following pricing strategies? A. Flexible cost-plus pricing B. Penetration pricing C. Design to cost D. Rigid cost-plus pricing E. Price skimming
C. Design to cost
Which of the following is an approach used to avoid antidumping laws? A. Increase supply B. Increase prices C. Differentiate the product or product category D. Avoid doing business with countries that have dumping laws E. Lower overall prices
C. Differentiate the product or product category
If a company chooses to establish its own sales force or operate its own retail stores, it is utilizing which of the following types of distribution? A. Limited involvement B. Indirect involvement C. Direct involvement D. Full involvement E. Joint venture
C. Direct involvement
The internal motivation driving demand for status-oriented products is based on which of the following levels of Maslow's needs hierarchy? A. Safety B. Physiological C. Esteem D. Social E. Self-actualization
C. Esteem
Which of the following terms refer to the startup of new operations? A. Acquisition B. Joint venture C. Greenfield investment D. Equity stake E. Full ownership
C. Greenfield investment
One clear global trend is that spending on ________ advertising is gaining ground at the expense of television and print. A. billboard B. radio C. Internet D. transit E. direct mail
C. Internet
For the home company, which of the following is one of the goals of a global strategic partnership (GSP)? A. Improved infrastructure B. Reducing the number of employees C. Market access D. Subsidies E. Government incentives
C. Market access
________ is an external influence, such as advertising clutter, that can detract from the ultimate effectiveness of the communication. A. Poor translation B. Misunderstanding C. Noise D. Interference E. Media breakdown
C. Noise
Which of the following techniques of global advertising calls for developing a global communication concept for which copy, artwork, and other elements can be adapted as required for individual country markets? A. Global product platforms B. Adaptable advertising C. Pattern advertising D. Global appeal E. Integrated marketing communication (IMC)
C. Pattern advertising
McDonald's and Coca-Cola have focused on which of the following needs to create global brand franchises? A. Safety and esteem B. Social and safety C. Physiological and social D. Physiological and safety E. Esteem and self-actualization
C. Physiological and social
Apple introduced the iPhone X by pushing the limits of pricing at $1,000. What pricing strategy is Apple using? A. Import pricing B. Cost-based pricing C. Premium pricing D. Captive pricing E. Market penetration pricing
C. Premium pricing
What is the primary purpose of the catalog in an integrated marketing communication (IMC) strategy? A. To move customers to e-commerce B. Brand awareness C. Product sales D. To increase traffic in the bricks and mortar stores E. To allow customers to avoid local taxes
C. Product sales
Jeep® held a by-invitation-only event at the Nürburgring in Germany to introduce their 2018 lineup and provide potential buyers with an opportunity to try a Jeep® on a variety of terrains. This is an example of which of the following? A. Publicity B. Advertising C. Public relations D. Earned media E. Sponsorship
C. Public relations
In which quadrant of the matrix for classifying global retailers would you find Home Depot? A. Quadrant D: mega-retailers offering products available in other smaller competitors B. A combination of quadrant A and quadrant C. C. Quadrant C: well-known brands in rather narrow merchandise mix D. Quadrant B: private label focuslong dash—expanded product categories E. Quadrant A: niche focus
C. Quadrant C: well-known brands in rather narrow merchandise mix
Which of the following was established to keep pace with a volatile financial environment? A. Estimated future cost method B. Increased prices C. Shelf pricing D. A rigid cost-plus pricing policy E. Unit pricing
C. Shelf pricing
Which of the following types of retail formats is intended to create an appealing leisure destination? A. Hypermarkets B. Superstores C. Shopping malls D. Outlet stores E. Department stores
C. Shopping malls
Which of the following has had the greatest impact on global price transparency? A. NAFTA B. The European Union C. The Internet D. The World Trade Organization (WTO) E. The United Nations
C. The Internet
Which of the following best describes the viewpoint of the "one world, one voice" approach to global advertising? A. The message should be localized and the media global. B. The message should be global and the media localized. C. The message and the media should be globalized. D. The message and media should be localized. E. The message and media should be regionalized.
C. The message and the media should be globalized.
A toy retailer in China only wants to carry Ty™ Beanie Boos; not the entire line of Ty's™ toy collection. This retailer is practicing _________________. A. proactive price selection B. cost reductions C. cherry picking D. partnership optimization E. product discrimination
C. cherry picking
In comparison to mass marketing, one of the main benefits of direct marketing is the company's ability to __________. A. reduce perception of risk B. avoid the cost of intermediaries C. collect consumer data D. save money E. build brand awareness
C. collect consumer data
Companies that are ________ typically allow managers at the local, national level to make ad agency selection decisions. A. polycentric B. privately owned C. decentralized D. centralized E. geocentric
C. decentralized
In ________, competitors within an industry that make and market the same product conspire to keep prices high. A. gray marketing B. dumping C. horizontal price fixing D. parallel importing E. free riding
C. horizontal price fixing
As Nike president Trevor Edwards once noted: Nike has a(n)___________ that involves all elements of the marketing mix, from digital to sports marketing, from event marketing to advertising to entertainment. A. promotional strategy B. standardized message model C. integrated marketing communication (IMC) model D. dynamic advertising model E. global advertising strategy
C. integrated marketing communication (IMC) model
In some cases, a manufacturer might find it necessary to incur the costs of direct involvement to obtain market share because ________. A. direct involvement requires less management B. there aren't many intermediaries available C. middlemen may seek to maximize their own profit D. direct involvement is less expensive E. direct involvement is a better long-term approach
C. middlemen may seek to maximize their own profit
Recently, Harley-Davidson® has received attention through newspapers and television news programming regarding the company's intentions to move manufacturing "off shore." This is an example of ___________________. A. advertising B. public relations C. publicity D. unearned media E. promotional strategy
C. publicity
A(n) ________ is a grouping of firms in different industries and countries held together by common goals that encourage them to act as a single firm. A. consortium B. corporation C. relationship enterprise D. super alliance E. virtual corporation
C. relationship enterprise
Which of the following choices provides the best specific market and cultural knowledge as a member of the sales force? A. Expatriate sales agent B. Third-country national C. Host-country national D. Contract manufacturer E. Expatriate
C. Host-country national
Which of the following is the channel alternative used by companies offering expensive, complicated products that require both explanation and applications analysis focused on each customer's needs? A. Wholesalers B. Manufacturer's agents C. Manufacturer's sales force D. Direct E. Distributors
C. Manufacturer's sales force
If advertising agencies are thought of as "idea factories," which of the following is core to creative strategy development? A. Advertising appeal B. The selling proposition C. The creative design D. The big idea E. The message
D. The big idea
Which of the following BEST describes a global brand? A. A brand that has found success in a single national market B. A brand created by a global company and distributed in more than one country C. A brand that is offered in several markets in a specific region D. A brand that uses the same name and has a similar positioning throughout the world E. A brand created by a global company to meet the needs of a local market
D. A brand that uses the same name and has a similar positioning throughout the world
What did Anheuser-Busch find was critical to success in the Japanese market? A. Market share B. Joint ventures C. Licensing agreements D. Access to distribution E. Brand awareness
D. Access to distribution
AdAge named Wieden + Kennedy as the 2018 "Agency of the Year." Based in Portland, Oregon, this agency has locations in key cities around the world, supports complementary divisions for research, branding, design, and digital media. Wieden + Kennedy would be considered which of the following? A. An advertising firm B. An advertising agency C. An independent subsidiary D. An advertising organization E. Multiple agency collaboration
D. An advertising organization
Which of the following market expansion strategies could be used for an American company wanting to diversify within the United States rather than going global? A. Country and market diversification B. Country and market concentration C. Country diversification and market concentration D. Country concentration and market diversification E. Product expansion
D. Country concentration and market diversification
Harley-Davidson has assembly plants in India and Brazil and plans to open one in Thailand and will continue to target, on a global basis, "old guys" who want to hit the open road. This is what type of expansion strategy? A. Product and country expansion B. Country and market diversification C. Country concentration and market diversification D. Country diversification and market concentration E. Country and market concentration
D. Country diversification and market concentration
A coupon included with a 12-pack of Pepsi offering a free bag of Doritos would be an example of which of the following? A. On-pack coupons B. Point-of-sale coupons C. Internet coupons D. Cross coupons E. In-pack coupons
D. Cross coupons
In which of the categories of Incoterms does the seller agree to deliver goods to the buyer in the country of import, with all costs, including duties, paid by the seller? A. Ex-works (EXW) B. Free carrier (FCA) C. Free alongside ship (FAS) D. Delivered duty paid (DDP) E. Free on board (FOB)
D. Delivered duty paid (DDP)
Which of the following is a general term that refers to capital that flows out of the home country as companies invest in plants, equipment, and other assets? A. Joint ventures B. Equity stake C. Mergers and acquisitions D. Foreign direct investment (FDI) E. Greenfield investment
D. Foreign direct investment (FDI)
Why has the warranty program been important to Hyundai sales in the U.S.? A. Competitors don't offer warranties. B. The warranty justified the high cost. C. Hyundai's warranty program received media attention. D. Korean cars were initially perceived as cheap. E. Americans won't buy cars without a warranty.
D. Korean cars were initially perceived as cheap.
Which of the following describes the integration of activities necessary to ensure the efficient flow of raw materials, in-process inventory, and finished goods from producer to customers? A. Physical distribution B. Supply chain C. Value chain D. Logistics management E. Transportation
D. Logistics management
Which of the following components of a product is designed to engage the senses, make an emotional connection, and enhance the consumer's brand experience? A. Express warranty B. Labeling C. Aesthetics D. Packaging E. Product warranties
D. Packaging
Which of the following is the strategic alternative where the product is adapted to local preferences while the home-market promotional strategy or brand name is used? A. Product-communication adaptation (dual adaptation) B. Product extension-communication adaptation C. Innovation D. Product adaptation-communication extension E. Product-communication extension (dual extension)
D. Product adaptation-communication extension
News media has recently captured a photograph of the Pope wearing Serengeti sunglasses. This is an example of which of the following? A. Celebrity endorsement B. Direct marketing C. Sales promotion D. Publicity E. Product placement
D. Publicity
Which of the following naming strategies is best for a company pursuing a global brand identity? A. Distinctive names for each local market B. One name in the home country and another in other countries C. Co-branding D. Same name throughout the world E. Different names for each regional market
D. Same name throughout the world
Which of the following types of retailers are more narrowly focused and have a narrow merchandise mix aimed at a specific market segment? A. Department stores B. Hard discounters C. Supermarkets D. Specialty retailers E. Discount retailers
D. Specialty retailers
Which of the following best describes American businesses' major concern with Japanese-affiliated manufacturing in the U.S.? A. Keiretsu alliances result in higher prices to Japanese consumers. B. Keiretsu is similar to a labor union in the United States. C. Keiretsu is competition to U.S. industry. D. The majority of suppliers are members of keiretsu, not American companies. E. This type of alliance is long-term.
D. The majority of suppliers are members of keiretsu, not American companies.
In marketing, which of the following refers to the promise or claim that captures the reason for buying the product or the benefit that ownership brings? A. Symbolism B. Creative strategy C. Emotional appeal D. The selling proposition E. Creative execution
D. The selling proposition
What is the underlying purpose of price fixing? A. To drive competitors out of business B. To create consumer demand C. To increase market share D. To ensure higher prices E. To offer lower prices to the consumers
D. To ensure higher prices
Benefits of a joint venture entry strategy include sharing of risk, a good way to learn about a new market environment, and ________. A. encouraging contract manufacturing B. establishing a franchise program C. an acquisition tool D. allowing partners to achieve synergy E. creating a licensing agreement
D. allowing partners to achieve synergy
Product attributes, both tangible and intangible, must be translated into ___________ for a product strategy to be successful. A. cultural preferences B. English C. the perception of luxury D. benefits that match needs and wants E. convenience to the customer
D. benefits that match needs and wants
A market holding strategy is often used in response to unfavorable ________. A. increased tariffs B. government subsidies C. competitive prices D. currency swings E. inflation
D. currency swings
Because esteem needs are universal, any company with a premium product or brand that has proved itself in a local market by fulfilling esteem needs should __________. A. also consider the market's physiological needs B. grow the brand by market penetration C. devise a strategy for mass production D. devise a strategy for taking the product global E. be wary of globalization
D. devise a strategy for taking the product global
________ is defined as perceptions about and attitudes towards particular countries, which extend to products and brands known to originate in those countries. A. Foreign consumer cultural positioning B. Global consumer cultural positioning C. Global brand leadership D. Country-of-origin effect E. Country stigma
D. Country-of-origin effect
In principle, which of the Incoterms affords the buyer maximum control over the cost of transporting the goods? A. Free alongside ship (FAS) B. Free on board (FOB) C. Delivered duty paid (DDP) D. Ex-works (EXW) E. Free carrier (FCA)
D. Ex-works (EXW)
Which of the following refers to a marketing model whereby individual consumers market products to other individual consumers? A. Indirect marketing B. Cause marketing C. Franchise marketing D. Peer-to-peer (p-to-p) marketing E. Direct marketing
D. Peer-to-peer (p-to-p) marketing
In emerging markets, many consumers shop for items several times a day at tiny, independent "mom-and-pop" stores, kiosks, and market stalls. These operations are known as ________. A. big box stores B. independent stores C. subsidiaries D. high-frequency stores E. convenience stores
D. high-frequency stores
Company organization, national responsiveness, area coverage, and ________ are all considerations when selecting an advertising agency. A. number of clients B. agency network membership C. location D. cost E. buyer perception
E. buyer perception
Latin American countries are known to have traded bananas, sugar, and wheat for Venezuelan oil without the exchange of money. This would be considered which type of countertrade? A. Offset B. Compensation trading C. Countertrade D. Parallel trading E. Barter
E. Barter
Which of the following is a type of innovation that could be described as a "game-changer"? A. Continuous innovation B. Platform innovation C. Dynamically continuous innovation D. Line extension innovation E. Discontinuous innovation
E. Discontinuous innovation
In India, My Dollar Store targets affluent, middle-class shoppers who are attracted by the lure of low prices on brands associated with the United States. This model of selling a select assortment of products at a single low price is what type of retailing? A. Hard discounters B. Convenience stores C. Outlet stores D. Specialty retailers E. Discount retailers
E. Discount retailers
Which of the pricing approaches is the most dynamic and proactive, taking into account the need for profitability as well as local factors of buying behavior? A. Cost-based pricing B. Polycentric C. Ethnocentric D. Adaptation E. Geocentric
E. Geocentric
________ enable(s) viewers to order products from home shopping channels, choose different camera angles during sports broadcasts, vote during audience participation shows, or order samples of advertised products. A. E-commerce B. Infomercials C. Support media D. Home shopping networks E. Interactive television (ITV)
E. Interactive television (ITV)
Toyota is the largest single firm in Japan. Toyota is primarily an automobile manufacturer but controls many companies in their supply chain. Which type of cooperative strategy does this represent? A. Chaebol B. Global Strategic Partnerships (GSPs) C. Joint ventures D. Zaibatsu E. Keiretsu
E. Keiretsu
Which of the following is one of the most basic needs for the public relations professional? A. Expertise in budgeting B. Ability to speak the language of the host country C. Research skills D. Product knowledge E. Knowledge of the audience
E. Knowledge of the audience
________ is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation. A. Foreign direct investment (FDI) B. Contract manufacturing C. Equity stake D. Joint venture E. Licensing
E. Licensing
Which of the following types of media is most effective when literacy rates are low? A. Magazines B. Television C. Newspapers D. Internet E. Radio
E. Radio
The naming rights of India's Maharashtra Cricket Stadium in Mumbai was recently sold to Indian conglomerate Sahara India Pariwar. This is an example of which of the following? A. Product placement B. Telemarketing C. Publicity D. Public relations E. Sponsorships
E. Sponsorships
Which of the following major transportation modes has low capability, low cost, and high reliability? A. Trucks B. Water C. Air D. Intermodel E. The Internet
E. The Internet
Why are South Koreans concerned about chaebol? A. Failure of chaebol companies to diversify B. The influence of government over private industry C. Limited employment option D. Stunted national economic growth E. The amount of economic power it wields
E. The amount of economic power it wields
Which of the following is designed to increase product availability in distribution channels? A. Personal selling techniques B. Sponsorships C. Word-of-mouth promotion D. Consumer sales promotions E. Trade sales promotions
E. Trade sales promotions
Most companies today attempt to establish a hybrid sales force through ________. A. third-country nationals B. host-country nationals C. a personnel management company D. expatriates E. a balanced approach
E. a balanced approach
While the functionality of the refrigerator is to keep foods and beverages cold, in some developing countries ownership of a refrigerator is a status symbol. In this case, the refrigerator serves ______________________. A. a primary function B. social needs C. self-actualization D. safety needs E. a secondary purpose
E. a secondary purpose
An American salesperson is living and working in Germany for British Airways. This person is ______________________. A. an American expatriate B. globally neutral C. part of a hybrid sales force D. a host-country national E. a third-country national
E. a third-country national