BUS 133 CH 11-15
The use of _____ in branding is strongest in culturally similar markets. a. standardization b. differentiation c. customization d. segmentation
A
What is a letter of credit? a. It is an instrument issued by a bank at the request of a buyer in which the bank promises to pay a specified amount of money on presentation of documents stipulated in the letter. b. It is a letter which states that after the seller ships the goods, the shipping documents and the draft demanding payment should be presented to the importer through banks acting as the seller's agent. c. It is a set of instructions given to shipping companies who have a line of vessels. d. It is an instrument of currency issued by a foreign government to the exporter.
A
When the core product is relatively or highly similar between competitors, marketers highlight what type of features to achieve differentiation? a. Augmented b. Core c. Innate d. Fancy
A
Which of the following encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and logistics? a. Supply chain management b. Scientific management c. Six Sigma d. Lean manufacturing
A
Which of the following is a drawback of the cost-plus method? a. The final price may be so high that the firm's competitiveness is compromised. b. It is so variable that the actual price cannot be substantiated. c. There is a high turnover of product resulting in cost fluctuations. d. It is a time-consuming method.
A
Which of the following is a product characteristic that affects product-adaptation decisions? a. Country of origin b. Market opportunity c. Purchase patterns d. Culture
A
Which of the following is a reactive approach that may lead to problems if sales volumes never rise to sufficient levels to produce a satisfactory return? a. Market pricing b. Penetration pricing c. Multiple-product pricing d. Isolation pricing
A
A customer attaches value to a product in proportion to the: a. price in a competitive framework. b. cost incurred in the production of the product. c. product's perceived ability to help solve problems. d. income level of the household.
C
Any good bearing an unauthorized representation of a trademark, patented invention, or copyrighted work that is legally protected in the country where it is marketed is known as a _____. a. replica b. me-too product c. counterfeit d. hand-me-down
C
External public relations is focused on interactions with _____. a. employees b. supervisors c. customers d. managers
C
Natural Waters Inc. is a packaged drinking water company based in Ohio. The company contributes a bottle of water to every 10 sold in the U.S., to a foundation in Africa that supplies it to the poor. Identify the type of marketing undertaken by Natural Waters. a. Loyalty marketing b. Cause-related marketing c. Relationship marketing d. Personalized marketing
B
Price changes are called for when: a. the value of the billing currency is stable. b. there is a change in the internal situation. c. a change occurs in a particular market segment. d. the costs of production are relatively constant.
B
The period between departure and arrival of a carrier is called the _____. a. waiting time b. transit time c. transfer time d. lag time
B
The process of converting a message into a symbolic form so that it is properly understood by the receiver is called _____. a. forwarding b. encoding c. decoding d. kinesics
B
The purpose of the _____ concept is to minimize the firm's overall logistics cost within the entire system. a. aggregation b. total cost c. inert d. trade-off
B
The responsibility for appropriate packaging rests with the _____ of goods. a. freight forwarder b. shipper c. carrier d. consignee
B
Under _____ to a named overseas port of import, the seller quotes a price for the goods including the cost of transportation to the named port of debarkation. The cost of insurance and the choice of insurer are left to the buyer. a. delivered duty paid b. cost and freight c. free on board d. free alongside ship
B
Various factors determine the need for either mandatory or discretionary product adaptation. Which of the following factors is a product characteristic? a. Nontariff barriers b. Brand c. Cost of adapting d. Profitability
B
What is the goal of logistics management? a. To ensure that marketing effort is sponsored by an organization that solicits responses from individuals who share common interests and activities. b. To effectively coordinate the materials management and physical distribution phases and their various components to result in maximum cost-effectiveness while maintaining service goals and requirements. c. To aim for high growth and profits by creating new demand in an uncontested market space rather than by competing head-to-head with other suppliers for known customers in an existing industry. d. To gather volunteers to try products and then rely on them to talk about their experiences with friends and colleagues.
B
What is the purpose of direct marketing? a. To use an event without the permission of the event owner b. To establish a relationship with a customer in order to initiate immediate and measurable responses c. To give the exporter's product local flavor and increase the overall promotional budget for the product d. To be prepared to utilize the tremendous power of the multinational corporation in a responsible manner and, in the case of pressure, to counter criticisms swiftly
B
When an exporter uses indirect exports to reach international markets, the export process is said to be _____. a. internalized b. externalized c. outsourced d. localized
B
Which category of products generally show the highest amount of sensitivity toward differences in national tastes and habits? a. Industrial goods b. Consumer nondurables c. Business products d. Consumer durables
B
Which legislation requires the U.S. trade representative to set country-specific negotiating objectives for reciprocity and consideration of retaliatory options to ensure intellectual property protection? a. The Fair Trade Act b. The Intellectual Property Rights Improvement Act c. The Trademark Counterfeiting Act d. The Omnibus Tariff and Trade Act
B
Which of the following acts as an agent for the marketer in moving cargo to an overseas destination? a. International customs broker b. International freight forwarder c. Consignee d. Stevedore
B
Which of the following affects the product decision of consumer products that also reflects the marketers' need to gain customers' approval? a. Purchasing power b. Local behavior c. Boundaries d. Income levels
B
Hybrid channels differ from dual channels in that hybrid channels: a. have one tier of distributors and resellers. b. use a single channel to enhance sales performance in a foreign market. c. are based more on cooperation and partnership. d. lead to conflicts if disagreements arise as to who is to handle a specific customer.
C
In a typical global program management, the affected units have prime responsibility for achieving _____. a. single-point worldwide technical development and design of a new product that conforms to the global design standard b. all activities necessary to support the product in the affected unit, as well as direction and support to managing units to ensure that concurrent introductions are achieved c. identification of unique requirements to be incorporated in the product goals and specifications d. integration and coordination of all global program activities
C
Once a sender has placed a message into a channel or a set of channels and directed it to the intended destinations, the completion of the process is dependent on the receiver's _____. a. feedback b. forwarding c. decoding d. outcome
C
Which of the following best describes order cycle time? a. The total lifespan of a product ranging from production to consumption b. The total time that passes between the placement of an order and the receipt of the merchandise c. The total time spent in transit by an ordered product d. The period between departure and arrival of the carrier
B
Which of the following best describes the product or service a company offers for sale? a. A pertinent formation of space and time b. A complex combination of tangible and intangible elements c. A tangible benefit d. An intangible offering
B
Which of the following is a factor that determines channel design? a. Documentation required b. Competition involved c. Transport modes chosen d. Level of inventory stocked
B
Which of the following is a kind of marketing in which the company, or one of its brands, is linked to issues such as environmental protection or children's health? a. Loyalty marketing b. Cause-related marketing c. Relationship marketing d. Personalized marketing
B
Which of the following is a method for classifying products that are most sensitive to delivery times? a. Economic impact analysis b. ABC analysis c. Cost-benefit analysis d. CPM analysis
B
Which of the following is a nontariff barrier? a. Import duty b. Product standards c. Excise duty d. Quotas
B
Which of the following is a question regarding cultural criteria that affects product adaptation? a. Does the symbolic content of the product or service differ from one country to another? b. Is there a stigma attached to the product or service? c. Do most consumers spend the same amount of time making the purchase? d. Is the psychic cost of purchasing or using the product or service the same, whatever the country?
B
Which of the following is a question regarding psychosocial characteristics that affects products adaptation? a. Does society restrict the purchase or use of the product or service to a particular group? b. Does the symbolic content of the product or service differ from one country to another? c. Is there a stigma attached to the product or service? d. Do most consumers expect a product to have the same appearance?
B
Which of the following is a regional, country, or local characteristic that affects product-adaptation decisions? a. Country of origin b. Competitive offerings c. Market opportunity d. Quality
B
Which of the following is a sales promotion activity directed at intermediaries? a. Couponing b. Cooperative advertising c. Premiums d. Cents-off packs
B
Which of the following is a strategy to compensate for price escalation? a. Weeding out government controls and avoiding them by entering markets through third parties b. Reorganizing the channel of distribution c. Reassessing customer needs by conducting market research d. Assembling products made with domestic components
B
Which of the following is true about brands? a. It allows customization of promotional items. b. It conveys the image of the product or service. c. It is always listed on balance sheets. d. It is used only by apparel companies.
B
Which of the following provides the exporter with a complete financial package that combines credit protection, accounts-receivable bookkeeping, and collection services to take away many of the challenges that come with doing business overseas? a. Forfaiting b. Factoring c. Invoice discounting d. Leasing
B
Which of the following statements about local campaign objectives is true? a. They are exclusively product-related. b. They set measurable targets for individual markets. c. They are developed exclusively by headquarters. d. They are related solely to the entity itself.
B
Which of the following terms refers to the legally protected part of the brand? a. Intellectual property b. Trademark c. Brand mark d. Copyright
B
_____ can be used to develop a new, essentially meaningless brand name to minimize trademark complexities. a. Translation b. Transparency c. Transculture d. Transliteration
B
_____ involves direct relations between the seller and the prospective buyer or customer. a. Advertising b. Personal selling c. Sales promotion d. Publicity
B
_____ is a compensation arrangement where one party agrees to supply technology or equipment that enables the other party to produce goods with which the price of the supplied products or technology is repaid. a. Clearing arrangements b. Buyback c. Switch trading d. Offset
B
_____ pricing calls for pricing exports according to the dynamic conditions of the marketplace. a. Marginal b. Market-differentiated c. Isolation d. Cost-plus
B
_____ refers to the shifting of traditional corporate activities to parties outside of the firm and often outside of the country. a. Expediting b. Outsourcing c. Warehousing d. Onshoring
B
_____ requires the testing of an existing brand name for connotative meaning in the language of the intended market. a. Translation b. Transliteration c. Transparency d. Transculture
B
_____ serves three major functions: protection, promotion, and user convenience. a. Labeling b. Packaging c. Branding d. Positioning
B
SigmaDrinks Inc., a Florida-based soft drinks manufacturing company, has been providing funds to promote local cultural events in Florida. It has recently started providing funds for literary events at schools and colleges in other states too. What kind of marketing is SigmaDrinks demonstrating? a. Ambush marketing b. Channel marketing c. Sponsorship marketing d. Piggyback marketing
C
Which of the following minimizes the volume of inventory by making it available only when it is needed for the production process? a. Lean manufacturing b. Total productive maintenance c. Just-in-time d. Six Sigma
C
Which of the following statements about pricing is true? a. It cannot determine the long-term viability of an enterprise. b. It should be determined in isolation from the other marketing mix elements. c. It is a major competitive tool in meeting and beating close rivals and substitutes. d. It is the only element in the marketing mix that produces fixed costs.
C
Which of the following statements is true of delivered at place (DAP)? a. The seller delivers the goods with import duties paid. b. The seller typically handles the cost of unloading and wharfage. c. The seller and buyer should agree which party will be responsible for unloading. d. The seller's risk and responsibility for the condition of the cargo end when the goods are delivered to the first carrier.
C
____ marketing allows the creation of an individual relationship with each customer or prospect. a. Ambush b. Sponsorship c. Database d. Undifferentiated
C
____ marketing involves the marketer's investment in events or causes and is specially directed for the most part at sports events and cultural events. a. Ambush b. Custom c. Sponsorship d. Channel
C
____ marketing is the use of an event without the permission of the event owner. a. Event b. Cause c. Ambush d. Personalized
C
_____ is a form of communication where consumers can find or initiate topics of interest on the Web and engage in online discussions using bulletin boards, blogs, podcasts, and Web sites. a. CPM b. CRM c. CGM d. CAD
C
_____ is an umbrella campaign to boost the image of lesser-known product lines or make the company itself be understood correctly or perceived more positively. a. Personal selling b. Market segmentation c. Corporate image advertising d. Undifferentiated marketing
C
_____ is the securing of editorial space to further marketing objectives. a. Public relations b. Advertising c. Publicity d. Personal selling
C
_____ pricing is set regardless of the buyer or may be based on average unit costs of fixed, variable, or export-related costs. a. Dual b. Export variable c. Standard worldwide d. Market-differentiated
C
_____ will give the exporter's product local flavor and increase the overall promotional budget for the product. a. Ambush marketing b. Database marketing c. Cooperative advertising d. Internal public relations
C
Which of the following is an advantage of the Internet? a. Every individual around the world is connected via the Internet. b. There are hardly any adjustments that need to be made by exporters for each market served. c. Internet diffusion always reaches the targeted customer. d. The Internet provides the opportunity to actually close sales.
D
Which of the following is an argument in favor of the participation of exporters in a trade show? a. Due to the availability of resources, there is no difficulty in choosing the appropriate trade fairs for participation. b. The low costs associated with trade shows enable exporters to reach a sizable number of sales prospects in a brief time period. c. There is a constant level of coordination among larger exporters with multiple divisions. d. The opportunity to find an intermediary may be one of the best reasons to attend a trade show.
D
Which of the following is considered as an external factor in setting the export price? a. Promotion needs b. Overall price position of firm c. Distribution system d. Exchange rate stability
D
Which of the following is one of the major functions of packaging? a. Testing b. Segmentation c. Feedback d. User convenience
D
As more segments of the market are targeted and more of a product is made available, the price is gradually increased.
F
As the share of international sales and reach of companies increases, banking relationships become less important.
F
Campaign objectives need not be measurable.
F
Cause-related marketing should be developed mainly as a response to a crisis or to generate publicity.
F
Centralization involves relaxing most of the controls over foreign affiliates and allowing them to pursue their own promotional approaches.
F
Close collaboration with customers is required in order to develop a just-in-time inventory system.
F
Cost-plus pricing is favored by many constituents, such as governments, to ensure proper intracompany pricing.
F
Facilitating payments by providing a small fee to expedite paperwork through customs is considered illegal.
F
Factoring houses are places where customs affords reliable accounting of the dollar increment of actual purchasing power.
F
In international logistics, the objective of the total cost concept is to minimize total cost rather than maximize after-tax profits.
F
Incoterms are the terms agreed upon by nation states that allow for the incorporation of companies as recognized globally.
F
Low-priced items can absorb transportation costs more easily than high-priced goods.
F
Parallel importation refers to illegally manufactured items that are smuggled into a market.
F
Political risk is a controllable variable, which the exporter controls through paying extra taxes or import duties.
F
Price should be determined in isolation from the other marketing mix elements.
F
Skimming is selling goods overseas for less than in the exporter's home market or at a price below the cost of production, or both.
F
The authorized use of an event with the permission of the event owner is called ambush marketing.
F
The connections made by marketing institutions are unidirectional and flow downward from the producer.
F
The cost per contact for personal selling is extremely low.
F
The international marketer should ignore cultural noise.
F
The path through which the message moves from the sender to the receiver is known as the message pipeline.
F
The public perceives advertising as more trustworthy than publicity.
F
The reason behind using global advertising for global marketing is that significant cost savings can be realized through a single worldwide ad campaign.
F
The reducing costs of sponsorship and the ease of establishing return on investment encourage marketers to involve themselves in sponsorship marketing.
F
Tramp service is available for regular routes and is at service at all times.
F
In order to differentiate a product, a marketer tries to highlight the similarities it has with products in the same class so as to highlight the likenesses of each.
False
Making a profit is the key to successful marketing.
False
Most companies aim for consistency in their marketing efforts. An example of where consistency may be easy to achieve in international markets is in the area of warranties.
False
Positioning is the physical space a product assumes on a store shelf, and companies pay huge sums of money to have their products first in line.
False
The Trademark Counterfeiting Act of 1984 made trading in goods and services using a counterfeit trademark a civil rather than a criminal offense.
False
The brand mark is the vocalizable part of the brand, the brand name the nonvocalizable part.
False
The core of a firm's international operations is pricing.
False
The main goal of the product development process is to develop a standard product or product line.
False
The more exporters learn about local market characteristics in individual markets, the more they are able to establish similarities and, as a result, customize their marketing approach, especially across similar markets.
False
The value of brands can be seen on balance sheets.
False
A customs broker serves as an agent for an importer with authority to clear inbound goods through customs and ship them on to their destination.
T
Advertising budgets should be set on a market-by-market basis.
T
An appearance at a trade show produces goodwill and allows for periodic cultivation of contacts.
T
An option gives the holder the right to buy or sell foreign currency at a prespecified price on or up to a prespecified date.
T
By increasing inventories before an imminent devaluation of a currency instead of holding cash, the corporation can reduce its exposure to devaluation losses.
T
Currency variation in international logistics forces corporations to adjust planning to incorporate changes in exchange rates.
T
Firms using just-in-time inventory policies will choose suppliers on the basis of their delivery and inventory performance.
T
For sales promotion to be effective, the campaign planned by manufacturers must gain the support of the local retailer population.
T
High-value items are more likely to be shipped by air, particularly if they have a high density.
T
If multimarket target audience similarities exist, then panregional or global campaigns can be attempted.
T
If similar products already exist in the target market, market pricing is used.
T
International firms experience ongoing increases in their logistics cost.
T
Marketers attend trade fairs to get data on intermediaries in the industry.
T
Once under price controls, the global marketer has to operate as it would in a regulated industry.
T
Price is the only element of the marketing mix that is revenue generating.
T
Product line pricing occurs typically in conjunction with positioning decisions.
T
Reorganizing the channel of distribution can help overcome price escalation.
T
Reverse distribution systems ensure that the firm not only delivers the product to the market but can also retrieve it for subsequent use.
T
The cost-plus strategy is the true cost, fully allocating domestic and foreign costs to the product.
T
The costs of modifying the product for foreign markets are considered export-related costs.
T
The main concern arising from the use of mega-agencies is conflict.
T
The major problems affecting global promotional efforts involve conflicting national regulations.
T
The most favorable term to the exporter is cash in advance.
T
The most favorable term to the importer is consignment selling, which allows the importer to defer payment until the goods are actually sold.
T
The responsibility for appropriate packaging in logistics rests with the shipper of goods.
T
The success of the communications effort can be analyzed by observing feedback.
T
The use of intermediaries will automatically lead to loss of some control over the marketing of the firm's products.
T
Trade fairs provide an excellent chance for market research and collecting competitive intelligence.
T
When penetration pricing is used, the product is offered at a low price intended to generate volume sales and achieve high market share, which would compensate for a lower per-unit return.
T
A major objective of media strategy is to reach the intended target audience irrespective of the waste incurred.
F
According to an ABC analysis, products for which immediate delivery is not urgent are classified as "C" products.
F
Advertising involves direct relations between the seller and the prospective buyer or customer.
F
Agents have more freedom of movement than distributors.
F
As in all marketing decisions, the marketing intermediaries establish the basic premise for pricing.
F
According to the new rules drawn by the ICC, all letters of credit are considered _____ unless otherwise stated. a. irrevocable b. inconclusive c. reversible d. transitional
A
The _____ concept recognizes the linkages within logistics systems that result from the interaction of their components. a. trade-off b. total cost c. systems d. operating
A
The ideal situation in developing a message strategy is to have a _____, which refers to a product that is manufactured, packaged, and positioned the same globally. a. world brand b. product class c. brand mark d. product family
A
The promotional aspect of packaging relates mostly to _____. a. labeling b. color c. size d. weight
A
Which of the following is a reason for nonparticipation in trade shows? a. It is difficult for the firm to choose the appropriate trade fairs for participation. b. Exporters are able to reach a sizable number of sales prospects but over an extensive time period. c. Exporters are able to reach a sizable number of sales prospects but at very high costs per contact. d. They are an expensive way of obtaining evaluative data on the effectiveness of a promotional campaign.
A
Which of the following is a weak exporter strategy used under varying currency conditions? a. Speed repatriation b. Export prioritization c. Using nonprice competition d. Buying needed services abroad
A
Which of the following is an import document required during an international shipment? a. Bill of lading b. Collateral assurance c. Promissory note d. Letter of credit
A
Which of the following is one of the three facts a company should consider when marketing a product abroad? a. The markets that have been targeted b. The domestic policy c. The natural resources available in the home country d. The domestic political system
A
Which of the following is true about personal selling? a. It allows for immediate feedback on customer reaction as well as information on markets. b. Its costs per contact are the least amongst the different types of promotional tools. c. It is similar to advertising as it involves no direct relations between the seller and the buyer. d. It is the least effective of the promotional tools available to the marketer.
A
Which of the following is true about reverse logistics? a. Reverse logistics management is highly specialized. b. Retrieval of items in reverse logistics is restricted to short-term consumer goods. c. Reverse logistics refers to the shifting of traditional corporate activities to parties outside of the country. d. Traditionally, businesses have focused on reverse logistics.
A
Which of the following means using a foreign-language name for a brand? a. Transculture b. Transparency c. Transliteration d. Translation
A
Which of the following statements is true of "A" products in an ABC analysis? a. They are products that are stocked in all distribution centers, and safety stock levels would be kept high. b. They are products for which immediate delivery is not urgent. c. They are products that are stored only at selected distribution centers around the world. d. They are products for which short delivery time is not important and hence they are stocked only at headquarters.
A
Which of the following statements is true of the factors that determine channel design? a. The stronger the marketer's finances, the more able the firm is to establish channels it either owns or controls. b. The number of areas to be covered is independent of the time elapsed since the product's introduction to the market. c. The longer the channel, the more easier it is for the marketer to have a final say over pricing, promotion, and so on. d. The looser the relationship is between the marketer and the intermediaries, the more control can be exerted.
A
_____ are frequently used as a basis for price determination largely because they are easily measured and provide a floor under which prices cannot go in the long term. a. Costs b. Corporate objectives c. Demand factors d. Competitive factors
A
_____ are one of the most easily standardized items in the product offering. a. Brands b. Services c. Values d. Prices
A
_____ refers to the interference that is caused when a message moving through a channel gets subjected to the influence of extraneous and districting stimuli. a. Noise b. Feedback c. Decoding d. Disarray
A
_____ system differentiates between domestic and export prices. a. Dual pricing b. Bilateral pricing c. Semi-pricing d. Isolation pricing
A
A media strategist would need data on all of the following EXCEPT _____. a. media audiences b. product placement c. advertising exposure d. media distribution
B
After-sale services and warranties are the _____ elements of a product. a. intangible b. augmented c. core d. packaging
B
Arm's-length pricing: a. becomes difficult when sales to outside parties occur in a product category. b. is the price that unrelated parties would have reached on the same transaction. c. does not ensure proper intracompany pricing. d. is the discounted "dealer" price derived from end-market prices.
B
Cost-driven and market-driven approaches to pricing products for export are associated with: a. standard worldwide pricing. b. dual pricing. c. market-differentiated pricing. d. single pricing.
B
Developing the promotional message is referred to as _____. a. ambush marketing b. creative strategy c. sales promotion d. cooperative advertising
B
For an exporter to use the _____ approach, the product has to be unique, and some segments of the market must be willing to pay the high price. a. extinction pricing b. skimming c. penetration pricing d. market pricing
B
Free on board (FOB): a. means that the buyer usually quotes a price for the goods. b. applies only to vessel shipments. c. means that the price is decided only upon delivery. d. applies only at a designated inland shipping point.
B
In first-time pricing, the objective of _____ is to achieve the highest possible contribution in a short time period. a. market pricing b. skimming c. penetration pricing d. predatory pricing
B
Market-differentiated pricing calls for export pricing according to the dynamic conditions of the marketplace. What are the three changes which might affect this type of pricing? a. Pre-, present, or post-fluctuations b. Competition, exchange rates, or environment c. Space, time, or utility d. Operations, media, or markets
B
SnackTime Inc., a manufacturer of snacks, was the official sponsor of a cultural event conducted in Tampa, Florida. During the course of the event, it was noticed that other local snack competitors had placed their stalls outside the venue, selling their snacks and soft drinks. What kind of marketing is being demonstrated by SnackTime's competitors? a. Cause-related marketing b. Piggyback marketing c. Ambush marketing d. Channel marketing
C
The _____ phase in logistics involves the movement of the firm's finished product to its customers. a. materials management b. quality assurance c. physical distribution d. production management
C
The exchange of goods and services via the use of smart mobile handheld devices that allow Web browsing is known as _____. a. outsourcing b. autonomic networking c. m-commerce d. communication security
C
The expense of maintaining inventories is called _____. a. inventory sunk costs b. inventory marginal costs c. inventory carrying costs d. inventory opportunity costs
C
The major problems affecting global promotional efforts involve _____. a. conforming to the uniform legal standards globally b. homogeneous global demands c. conflicting national regulations d. undifferentiated marketing demands
C
The marginal cost method of pricing considers the direct costs of producing and selling products for export as the floor beneath which prices cannot be set. What costs need to be excluded in these direct costs? a. Variable costs and product costs b. Shipment costs and manufacturing costs c. Fixed costs, R&D, and domestic overhead d. Inventory costs and production costs
C
What are the prevailing environmental factors over which the international marketer has no control? a. Price, product, and promotion decisions b. Message, money, and media c. Legal, economic, and climatic conditions d. Usage rate, buying patterns, and promotion
C
What are the two forms of risk which might affect an export transaction? a. Inward and outbound b. Unilateral and bilateral c. Commercial and political d. Contact and expatriate
C
What is probably the single most important factor contributing to product adaptation? a. Economic integration b. Situational analysis c. Government regulations d. Primary packaging
C
What is the first step in the product development process? a. Process development b. Feedback c. Idea generation d. Scale-up
C
When _____ is used, the product is offered at a low price intended to generate volume sales and achieve high market share, which would compensate for a lower per-unit return. a. market pricing b. skimming c. penetration pricing d. isolation pricing
C
Which of the following allows an exporter to be refunded up to 99 percent of duties paid on imported goods when they are incorporated in articles that are subsequently exported within five years of the importation? a. Foreign sourcing b. Skimming c. Duty drawbacks d. Forfaiting
C
Which of the following is a disadvantage of direct exports? a. Exporters have to engage in cooperative advertising which decreases the overall promotional budget for the product. b. Exporters will have no opportunity to sell the product with intermediaries. c. Exporters encounter possible gatekeeping by intermediaries. d. Exports have to face minor learning about sales in the markets that buy the product.
C
Which of the following is an intangible element of a product? a. Installation b. Aesthetics c. Positioning d. Packaging
C
Which of the following is considered as an internal factor in setting the export price? a. Nature of demand b. Exchange rate stability c. Distribution system d. Company's customers
C
Which of the following is the most important document to the shipper, the carrier, and the buyer? a. Promissory note b. Surety bond c. Bill of lading d. Letter of intent
C
Which of the following is true about cause-related marketing? a. It is developed mainly as a response to a crisis. b. It is developed to increase the firm's profits. c. It is developed as a social vision and a long-term social policy. d. It is developed mostly as a piecemeal effort to generate publicity.
C
Which of the following is true about channels of distribution? a. Their role is limited to providing essential linkages that connect raw material suppliers with manufacturers. b. They are independent agents who work to achieve individual, personal goals. c. They are the partners with whom marketing efforts are planned and implemented. d. They are temporary market-entry vehicles.
C
Which of the following is true about foreign trade zones? a. They enforce duty payment for all merchandise. b. Duty payments are not due when the merchandise is shipped into the country from the foreign trade zone. c. If the merchandise is shipped abroad from these zones, no duty payments are ever due. d. They are considered, for purposes of tariff treatment, to be within the customs territory of the country in which they are located.
C
Which of the following is true about order cycle time? a. In domestic marketing, the order cycle is frequently longer than in international business. b. Order transmission times remain the same internationally irrespective of the mode of communication used. c. The international marketer should attempt to increase the consistency without an increase in total costs. d. The international marketer should attempt to increase order cycle time without an increase in total costs.
C
Which of the following is true about public relations? a. The public relations function is handled exclusively by the human resources department of the firm. b. The employee publication is produced and edited typically by the company's external public relations. c. Companies might require reactive public relations in case of any unanticipated developments in the marketplace. d. The use and extent of public relations activity will remain constant irrespective of the company and the type of activity needed.
C
Which of the following is true of carriage and insurance paid to (CIP)? a. The buyer is responsible to provide insurance. b. The maximum burden is on the seller. c. The seller is obligated to provide minimum insurance only. d. The buyer must bear all transportation costs.
C
Creating brand awareness by featuring a product in visual media such as movies, TV shows, videogames, or Internet sites is known as _____. a. CGM marketing b. cause-related marketing c. product differentiation d. product placement
D
Destination-specific adjustment of markups in response to exchange-rate changes are referred to as: a. pass-through. b. markup via commercialization. c. prime manipulation. d. pricing-to-market.
D
Differentiation is a marketing method to: a. get different customers to try the product. b. create an image or a perception in the minds of competitors. c. dilate the market forces with excessive distribution. d. help consumers distinguish between competing brands.
D
Electronic data interchange (EDI) aims for: a. manual recording of all customer data. b. providing a platform for customers to interact with each other globally. c. standardizing and eliminating the wastes during manufacturing. d. more efficient order processing.
D
In managing channel relationships, vertical trading restrictions result from: a. geographic separation. b. separate ownership. c. cultural separation. d. different rules of law.
D
In setting export prices, which of the following is an attribute of pricing policy determination? a. Flexibility b. Decision control c. Competitive posture d. Market-based differentiation
D
International inventories can be used by the international corporation as a strategic tool in dealing with currency valuation changes or in hedging against inflation. Which of the following statements is true? a. By decreasing inventories before an imminent devaluation of a currency instead of holding cash, a corporation may reduce its exposure to devaluation losses. b. In the case of high inflation, holding small inventories provides an important inflation hedge. c. If an increase in tax payments outweighs the hedging benefits to a corporation, the firm needs to increase inventories before devaluation occurs. d. The international inventory manager must balance the cost of maintaining high levels of inventories with the benefits accruing to the firm from hedging against inflation or devaluation.
D
The combined effect of both clear-cut and hidden costs results in export prices that far exceed domestic prices. This cause is known as: a. cost overrun. b. seamless integration. c. relationship pricing. d. price escalation.
D
The message _____ is the path through which the message moves from source to receiver. a. pathway b. pipeline c. tunnel d. channel
D
The shipper's export declaration: a. may be a negotiable instrument in that it may be endorsed to other parties or may be nonnegotiable. b. acknowledges receipt of the goods, represents the basic contract between the shipper and the carrier, and serves as evidence of title to the goods for collection by the purchaser. c. is the most important document to the shipper, the carrier, and the buyer. d. is a document that states proper authorization for export and serves as a means for governmental data-collection efforts.
D
The term "_____" refers to the length and width of the channel employed. a. channel bandwidth b. channel capacity c. channel freight d. channel design
D
Which legislation amended Section 301 of the Trade Act of 1974 to clarify that the violation of intellectual property rights is an unreasonable practice within the statute? a. The Fair Trade Act of 1984 b. The Intellectual Property Protection Act of 1984 c. The Trademark Counterfeiting Act of 1984 d. The Omnibus Tariff and Trade Act of 1984
D
Which of the following best describes gray markets? a. They are markets where goods or services are illegally trafficked outside the formal ones supported by established state power. b. They are legal markets for goods and services where all the distribution takes place through legal channels. c. They refer to the distribution of used, repaired, recycled, or discontinued products that are in working condition through legal brokers and resellers. d. They refer to authentic and legitimately manufactured trademark items that are produced and purchased abroad but imported by bypassing designated channels.
D
Which of the following can marketers use to discourage other marketers from entering the market? a. Cost-plus pricing b. Changing pricing c. Multiple-product pricing d. Penetration pricing
D
Which of the following is NOT one of the guideposts that the experienced manager uses for logistics decisions? a. Development of heuristics b. Industry comparison c. Intimate knowledge of trends d. Demographics of the population
D
Which of the following is a company consideration that affects product-adaptation decisions? a. Competitive offerings b. Method of operation c. Durability d. Market opportunity
D
Which of the following is true about the transfer pricing methods of determining an arm's-length price? a. The arm's-length standard is only applicable for commodities businesses. b. The resale method is most applicable for transfers of components or unfinished goods to overseas subsidiaries. c. The cost-plus approach usually applies best to transfers to sales subsidiaries for ultimate distribution. d. The starting point for testing the appropriateness of transfer prices is a comparison with comparable uncontrolled transactions involving unrelated parties.
D
Which of the following logistics concepts is based on the notion that materials-flow activities within and outside of the firm are so extensive and complex that they can be considered only in the context of their interaction? a. Aggregation concept b. Operating concept c. Inert concept d. Systems concept
D
Which of the following refers to the mental image that a brand, or the company as a whole, evokes in the minds of consumers? a. Innovation b. Social engineering c. Unique selling proposition d. Positioning
D
Which of the following statements about third-party logistics is true? a. Firms will be able to maintain higher levels of control if they outsource their logistics operations to third parties. b. Third-party logistics provide logistics services at very high costs. c. Third-party logistics usually provide low-quality services. d. Third-party logistics providers have the knowledge and means to perform efficient and innovative services for firms.
D
Which of the following systems is instrumental in ensuring that a firm not only delivers the product to the market, but also can retrieve it from the market for subsequent use, recycling, or disposal? a. Continuous review systems b. Perpetual inventory systems c. Periodic inventory systems d. Reverse distribution systems
D
With regard to the packaging dimension, the four Rs comprise of redesign, reduce, recycle, and _____. a. redefine b. reinforce c. realign d. reuse
D
_____ involves relaxing most of the controls over foreign affiliates and allowing them to pursue their own promotional approaches. a. Centralization b. Glocalization c. Localization d. Decentralization
D
_____ is a form of barter aimed at reducing the effect of the immediacy of the transaction. a. Offset b. Parallel barter c. Buyback d. Clearing arrangements
D
_____ is the design and management of a system that controls the flow of materials into, through, and out of the international corporation. a. M-commerce b. Statistical process control c. Autonomic networking d. International logistics
D
_____ is the marketing communications function charged with executing programs to earn public understanding and acceptance, which means both internal and external communication. a. Cooperative advertising b. Sales promotion c. Ambush marketing d. Public relations
D
A bill of exchange is a document that acknowledges the receipt of goods and represents the basic contract between the shipper and the carrier.
F
Adaptation decisions are made to enhance the exporter's competitiveness in the marketplace.
True
Color plays an important role in the way consumers perceive a product. They communicate in a subtle way in developed societies; they have direct meaning in more traditional societies.
True
Consumer nondurables, such as food products, generally show the highest amount of sensitivity toward differences in national tastes and habits.
True
Industrial products tend to be more shielded from cultural influences than consumer durables.
True
Nontariff barriers include product standards, testing or approval procedures, subsidies for local products, and bureaucratic red tape.
True
Product warranties can be effective promotional tools.
True
Reverse innovation is when a company produces a drastically simplified version of a product due to lack of purchasing power or usage conditions.
True
The characteristics and behavior of intended customer groups are as important as governmental influences on the product adaptation decision.
True
The practice of product counterfeiting has spread to high-technology products and services from the traditionally counterfeited products: high-visibility, strong-brand-name consumer goods.
True
When the country of origin does matter to consumers, it is in the exporter's best interest to monitor consumers' perceptions.
True