International Marketing Exam 2

chp 12

chp 12 (1 incorrect)

retailers

Private brands are those that are owned by Multiple Choice individuals. manufacturers. retailers. wholesalers. countries.

they have an intrinsic value that results from a process, a performance, or an occurrence.

Services are classified as intangible because Multiple Choice they have a physical presence. their intrinsic value is embedded within their physical presence. they can be processed and stored in inventories for an indefinite period. they have an intrinsic value that results from a process, a performance, or an occurrence. they are things or objects that can be stored and possessed.

Treaty of Asunción

The ________ provided the legal basis for Mercosur. Multiple Choice Treaty of Accession 2003 Treaty of Asunción Treaty of Versailles Treaty of Easton Treaty of Montevideo

manufacturer

The activities in a distribution channel process begin with the Multiple Choice wholesaler. agent. manufacturer. retailer. consumer.

climatic

A U.S. company's chocolates had to be sold from refrigerated containers in its Middle East markets to prevent the chocolate from melting due to high temperatures. In this scenario, the factor that is influencing the change in the product is the _______ requirements of the foreign market. Multiple Choice legal economic technological cultural climatic

agent middlemen

A U.S. manufacturer is willing to assume the trading risk in a foreign country but maintains the right to establish policy guidelines and prices and to require its agents to provide sales records and customer information. What type of middleman should the company choose? Multiple Choice merchant middlemen home-country middlemen trading companies domestic middlemen agent middlemen

conversion-ability.

A company has been able to successfully market most of its new inventions in its target markets because of its focus on niche areas and an efficient and experienced marketing team. The success of this company in launching most of its inventions is referred to as Multiple Choice conversion-ability. product homologation. product congruence. green marketing. mass customization.

A consortium usually operates in a country where none of the participants is currently active.

A heavy equipment manufacturer is in talks with several other similar businesses about moving into a foreign market. Their primary goal for working together is to lower their financial risk, so they are considering a consortium. What should they know about consortia? Multiple Choice A consortium usually operates in a country where none of the participants is currently active. A consortium is a partnership between individuals rather than companies. A consortium restricts the right to hold an equity position to its majority partners. A consortium does not involve the creation of a separate legal entity. A consortium is formed mainly for executing short-term projects.

parallel translation

A method of translation in which two translators are used to make a back translation; the results are compared, differences are discussed, and the most appropriate translation is used. The method addresses the use of common idioms in the languages being translated.

decentering

A method of translation, a variation on back translation, that is a successive process of translation and retranslation of a document, such as a questionnaire, each time by a different translator. The two original-language versions are then compared, and if there are differences, the process is repeated until the second original-language version is the same as the first.

cost

A product's ________ is among the most important criteria to influence consumers' purchase decisions. Multiple Choice appearance size technology cost design

sell into the global market

Access to the Internet in emerging economies has enabled small firms to Multiple Choice sell into the global market. increase economies of scale from vertical integration. increase income gaps. increase transaction costs. slow the diffusion of new technologies.

shortage of resources

According to Jagdish Sheth, what is one crucial weakness that is driving the need for different thinking in emerging markets? Multiple Choice market homogeneity branded competition shortage of resources improving infrastructure Less involvement by religious groups and NGOs

licensing? (Direct exporting??)

An American fabric manufacturing company sells its products to Big Box Store, a Japanese retailer. Big Box Store retails these products in major Japanese cities. Which form of entry best describes the strategy that the American company is engaged in? Multiple Choice franchising direct exporting licensing joint venture direct foreign investment

support services

An electronics manufacturer in Norway has developed a training program to train its support staff in foreign markets on the repair and maintenance of its products. The firm also ensures that there is enough stock of spare parts in all its distribution centers. According to the Product Component Model, the company is making improvements in the ________ component of the product. Multiple Choice core support services packaging design global

core

As illustrated by the Product Component Model, which component of a product will be altered if a company makes changes to the design of the product to improve its functionality? Multiple Choice core support services packaging aesthetics global

represent sizable markets for a wide range of products.

Big emerging markets (BEMs) all share the trait Multiple Choice geographically midsize but growing rapidly. overpower neighboring markets as they grow. avoid economic reform. represent sizable markets for a wide range of products. have low political importance in their regions.

developing the marketing plan

Brenden's Coffee, a coffee chain, has recently decided on the mode of entry into a particular market. Which phase of the planning process is the coffee chain currently in? Multiple Choice preliminary analysis defining market segment developing the marketing plan implementation and control standardization of the marketing mix

legal

Chocolotto, a chocolate manufacturer, displays a brown dot in a brown square symbol, instead of a green dot in a green square symbol, on the packaging of its products in Indian markets to indicate the presence of animal-based ingredients. Such mandatory requirements that necessitate changes in the labeling of products are part of the ________ requirements in the local marketplace. Multiple Choice economic consumer technological legal climatic

primary

Chun Hei is carrying out a marketing research study. Even after seeking all reasonable available secondary data sources, she has not been able to adequately answer the research questions. In such a situation, Chun Hei must collect ________ data. cohort syndicated derived primary referential

secondary

Colleen didn't have a lot of time to conduct her marketing research, so she went to the library to see what data she could find from available sources. Colleen is using ________ data sources for her research. firsthand secondary primary personal direct

domestic

Companies not wanting to become immediately involved with the complexities of international marketing will most likely use the services of ________ middlemen. Multiple Choice merchant agent domestic broker credited

Franchising provides an effective blending of skill centralization and operational decentralization.

Doreen is a looking into franchising in a foreign country. What should she be aware of when making her decision? Multiple Choice Franchising is an important form of horizontal market integration. The franchiser provides market knowledge, capital, and personal involvement in management. Foreign laws and regulations are usually hostile toward franchising. Franchising provides an effective blending of skill centralization and operational decentralization. The franchiser has little control on marketing of the products at the point of final sale.

decades

Economic development today is defined in terms of Multiple Choice days. weeks. years. decades. centuries.

They take title to manufacturers' goods.

Identify an accurate statement about merchant middlemen. Multiple Choice They take title to manufacturers' goods. They are more controllable by manufacturers than agent middlemen. They do not assume the risks of trading. They work on commission and arrange for sales in the foreign country. They represent the best interests of a manufacturer.

It carries a lower risk than other modes of foreign-market entry.

Identify the true statement about indirect exporting. Multiple Choice It involves more investments than direct foreign investment. It carries a lower risk than other modes of foreign-market entry. It has the highest rate of return. It offers the highest possible control than any other modes of foreign market entry. It accounts for about 90 percent of global economic activity.

small middlemen dealing with many small retailers.

In Japan, the distribution system is dominated by Multiple Choice small middlemen dealing with many small retailers. channels controlled by retailers. laws that protect the manufacturers over the retailers. manufacturer direct to retailer with no middlemen. large, diverse department stores that control the flow of products.

agent middlemen

In Japan, wholesalers typically act as ________ and extend the manufacturer's control through the channel to the retail level. Multiple Choice merchant middlemen agent middlemen sales representatives global retailers export management companies

local??

In import-oriented systems, distributions systems are ________ in scope. Multiple Choice national geographic global local independent

fine-tuning

In the context of building strategic international alliances, ________ is usually the last step in the relationship activity and primarily deals with relying on mature and established relationships and facilitating interaction and relationships with future successors. Multiple Choice dating imaging interfacing fine-tuning initiating

the lack of sufficient demographic data from which meaningful samples can be drawn

In the international arena, what poses the greatest problem in sampling? the lack of sufficient demographic data from which meaningful samples can be drawn the lack of expertise in designing sampling layouts for a domestic market the lack of adequate population size to draw samples an inability of international market researchers to speak foreign languages the difficulty in determining sample size suitable for the relevant foreign market

multicultural research

Inquiry, analysis, and study of more than two countries and cultures that takes into account differences in language, economic structure, social structure, behavior, and attitude patterns. Different methods of research may have varying reliability in different countries.

customization

Joffrey is a part of the marketing team in his company. There is a conflict between the finance team and the marketing team of the company on the issue of market segmentation. While the finance team is arguing for a standardized approach toward market segmentation, Joffrey and his team members feel that it is more important to understand customer requirements on an individual basis for greater customer satisfaction. Which of these terms best describes the approach adopted by Joffrey's team? Multiple Choice standardization homogenization normalization customization integration

phase 4

Ladies Nights, a lingerie company, has developed a marketing plan for its target market. Budgets, sales, and profit expectations have been penciled out. Now, Ladies Nights has begun to implement its specific plans and is anticipating great success in its chosen market. Which of the following phases of the international marketing process is Ladies Nights currently in? Multiple Choice Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

conducting his planning at the highest levels of management.

Marco is conducting strategic planning, which means that he is Multiple Choice conducting his planning at the highest levels of management. ignoring the research component of a company. solely addressing marketing and advertising questions at the local level. conducting local market planning. disregarding either the long-term or short-term goals of the company.

dealing with specific actions that are used to implement strategic planning goals.

Mary Louise is conducting tactical planning, which means that she is Multiple Choice specifically dealing with her company's products, capital, and research at a global level. conducting her planning at the highest levels of management. excluding plans that are made at the local level. dealing with specific actions that are used to implement strategic planning goals. ignoring questions that relate to advertising and marketing.

changes mandated by local product and service standards.

Product homologation is a term used in many countries to describe Multiple Choice the process of marketing products similar to the ones already on the market in a manner as congruent as possible with existing cultural norms. the process of establishing new technical standards for a product. the process by which innovation spreads in a new market. the influence of the manufacturing country on a consumer's perception of a product. changes mandated by local product and service standards.

is used to formulate and define a problem more clearly.

Qualitative research.... provides a marketer with responses that can be presented with precise estimations. is used to formulate and define a problem more clearly. usually involves asking respondents to select a response from a set of choices. can be summarized in percentages, averages, or other statistics. is generally associated with survey research that involves yes/no questions.

face-to-face communication opportunities.

Researchers have discovered a number of factors that are associated with better communication within multinational companies, including face-to-face communication opportunities. fewer communication instances. the use of expert opinion. triangulation. the use of email and other written forms of communication.

country of manufacture or design on a consumer's perception of a product.

The country-of-origin effect refers to the influence of the Multiple Choice home country's laws on the products marketed in foreign markets. success of a product in the domestic market on the marketing strategies in foreign markets. economic conditions of foreign markets on the acceptance of a product in those markets. international trade regulations on the marketing of a product. country of manufacture or design on a consumer's perception of a product.

international marketing research

The form of marketing research involving two additional considerations: (1) the need to communicate information across national boundaries, and (2) the challenge of applying established marketing techniques in the different environments of foreign markets, some of which may be strange or vexing milieus for the marketer.

controls on transborder data flows

The government of a small country has made it mandatory for international banks and insurance firms to obtain the consent of individuals before exchanging their personal data with other branches of the firm in foreign countries. These firms cannot share the personal details of an individual such as income, employment details, and debt repayment histories, even with their branches in other countries, without the approval of the individual. Which barrier to the functioning of service firms is demonstrated? Multiple Choice cultural congruence controls on transborder data flows protection of intellectual property cultural requirements for adaptation language translation barriers

commercial transition to mass distribution.

The manufacturing stage of the marketing process as it evolves in a growing economy includes substages that range from Multiple Choice commercial transition to mass distribution. self-sufficient to surplus commodity product. demand to physical distribution. subsistence to commercial. small scale to mass production.

observability

The marketing team at Tovio Technologies is drafting a plan to convey the benefits of its newly developed software to users in its international markets. In this scenario, the marketing team is working on improving the ________ of the product. Multiple Choice relative advantage compatibility trialability complexity observability

back translation

The process in which a document, such as a questionnaire, or phrase is translated from one language to another and then translated by a second party into the original language. ______ ______ can be used to verify that the first translation, as of a marketing slogan, has the intended meaning for the targeted audience.

cultural

The three kinds of distances that international marketers must traverse are miles, time zones, and ________ distances. Multiple Choice cultural economic trade income gap management

economic

Tidal, a popular laundry detergent brand made in the United Kingdom, repackaged its washing powder in 20 gram and 50 gram packs in Kenya to enable them to sell them at lower prices. In this scenario, the factor that is influencing product adaptation in the local market is a(n) ________ requirement. Multiple Choice climatic political cultural technological economic

global integration versus local responsiveness

What best describes the view toward market segmentation in the 1990s? Multiple Choice global integration versus one-to-one marketing standardization versus adaptation adaptation versus one-to-one marketing global integration versus local responsiveness standardization versus localization

a company manufacturing fiber optics

What company is most likely to have a direct sales force in the foreign country where it intends to sell its products? Multiple Choice a company manufacturing fiber optics a company manufacturing decorative candles a company manufacturing shirts a company manufacturing kitchenware a company manufacturing plasticware

privacy

What is a new and growing area of concern that limits the availability of data today? reliability storage privacy comparability validation

loyalty

What is a part of the relationship-oriented business philosophy that characterizes Japanese distribution channels? Multiple Choice fast delivery direct sale loyalty variety price war

comparability of data

What is a problem that is most commonly associated with the use of secondary data? defining the research problem ability to communicate opinions comparability of data storage of data willingness to respond

developing a successful product strategy?

What is the first step in adapting a product to a foreign market? Multiple Choice developing a strategy to convey the benefits of the product to a consumer determining ways in which the product can be modified determining which physical attribute to modify to suit the local needs developing a successful product strategy determining how new a product is to a market and how people react to newness

A questionnaire is translated from one language to another, and then a second party translates it back into the original, and the two original language versions are compared.

What is the process of back translation? A questionnaire is translated from one language to another, and then the original translator translates it back into the original, and the two original language versions are compared. A questionnaire is translated from one language to another, and then a second party translates the questionnaire into third language, and the three translations are then compared. A questionnaire is translated from one language to another, and then a second party translates it back into the original, and the two original language versions are compared. A questionnaire is translated from one language to another, and then multiple parties translate the questionnaire into different languages, and the different translations are then compared. A questionnaire is translated from one language to another, and then the original translator translates the questionnaire into different languages, and the different translations are then compared.

They are often associated with violence.??

What is true about least-developed countries (LDCs)? Multiple Choice They are extremely involved in world trade. They are often associated with violence. They mostly comprise urban populations. They have extremely high levels of per capita income. Their businesses are exclusively manufacturing-oriented.

It includes buying and selling negotiations between middlemen and customers.

What is true of the distribution process? Multiple Choice It excludes the physical handling of goods. It includes activities related to the promotion of goods and services. The ownership title remains with the distributor even on completion of the transaction. It includes buying and selling negotiations between middlemen and customers. Middlemen do not play a role in the distribution process.

expert opinions

What method of demand forecasting is particularly suited to international marketing, particularly when the foreign country is new to the marketer? probabilistic forecasting expert opinions simulation extrapolation scenario building

consider the costs and benefits of the research objective

What should marketing researchers do once they have determined the sources of information to fulfill the research objectives? (A) Assess the suitability of available statistical methods for analyzing the data. (B) Interpret and tabulate the information gathered. (C) Consider the costs and benefits of the research effort. (D) Determine the goals of the research. (E) Conduct surveys and in-depth interviews with the respondents.

They are designed to encourage sharing of experience, resources, and expertise among global business units.

What statement is true regarding matrix structures? Multiple Choice They work best when a close relationship with national and local governments is important. They fail to accommodate customers who themselves have global operations and global requirements. They are the most unpopular form of organizational structures. They are the least extensive of the other forms of organizational structures. They are designed to encourage sharing of experience, resources, and expertise among global business units.

qualitative research

What type of research is used in developing research hypotheses that can be tested in subsequent studies designed to quantify concepts? survey research experiments qualitative research questionnaires secondary data

quantitative research

What type of research usually involves a large number of respondents who are asked to reply, either verbally or in writing, to structured questions using a specific response format or to select a response from a set of choices? quantitative research focus group interview descriptive research in-depth interview exploratory research

state-owned enterprises

What was once considered the ideal engine for economic growth, but resulted in inflated public-sector bureaucracies and inefficient public companies? Multiple Choice foreign direct investment small business state-owned enterprises trade agreements democracy

cultural, sociological, and political climate

When assessing a foreign market, Unisys Corporation undertakes a general, noneconomic review of conditions affecting the business, including safety and leisure time. This demonstrates a focus on the competitive situation. cultural, sociological, and political climate. market conditions. technological environment. economic and demographic environment.

trends of the past may not continue in the future.

When he was unable to find the statistics he needed for his report on market demand, Raphael decided to estimate based on historical and current data and trends reported by the UN. One problem with this is trends of the past may not continue in the future. estimating is never a good idea. he isn't taking into account the source of the data. he should be using primary data instead. the UN's data is also secondary source and not reliable.

joint venture

When two or more participating companies join forces to create a separate legal entity to facilitate doing business in a country where at least one of them is currently active, it is called a Multiple Choice consortium. franchise pact. license arrangement. joint venture. direct investment agreement.

complexity

Which characteristic of an innovation is most likely to have a negative impact on the acceptance of a product in the intended market? Multiple Choice relative advantage compatibility trialability complexity observability

direct foreign investment

Which mode of foreign market entry is the riskiest? Multiple Choice exporting joint venture contractual agreement strategic alliance direct foreign investment

the United Nations (UN)

Which organization classifies a country's economic development and groups countries into three categories that include more-developed countries, less-developed countries, and least-developed countries? Multiple Choice the U.S. Department of Commerce the International Economic Development Council the International Organization for Standardization the United Nations the World Trade Organization

Are the data internally consistent in light of known data sources?

Which question should be asked by a marketing researcher when trying to establish the reliability of secondary data sources in the international arena? How much does the data cost? What language is used in the parent country? Does the parent country's government encourage marketing research? Are the data internally consistent in light of known data sources? How long did it take to complete the survey in question?

Honduras

________ is a member of the free trade agreement DR-CAFTA. Multiple Choice Bahrain Bhutan Morocco Honduras Oman

Brazil (full members of Mercosur = Argentina, Brazil, Uruguay, Paraguay, Venezuela has been suspended since 2016)

________ is a member of the free trade group Mercosur. Multiple Choice Australia China Brazil Russia Thailand

Japan (more developed countries = Canada, USA, Germany, France, Italy, Japan, UK)

________ is classified as a more-developed country by the United Nations. Multiple Choice Brazil Russia Japan Peru Uruguay

Mercosur

________, the second largest common market agreement in the Americas, calls for a common market that would eventually allow for the free movement of goods, capital, labor, and services among the member countries, with a uniform external tariff, with no central institutions. Multiple Choice Latin American Integration Association North American Free Trade Agreement Mercosur Central American Free Trade Agreement-Dominican Republic Free Trade Agreement Caribbean Community and Common Market

entrepreneurship

________, which indicates free enterprise in the hands of the self-employed, was a contributory factor to the economic growth of newly industrialized countries (NICs). Multiple Choice Privatization Nationalization Expropriation Entrepreneurship Socialization

expert opinion

a method of market estimation in which experts are polled for their opinions about market size and growth rates; used particularly in foreign countries that are new to the marketer

analogy

a method of market estimation that assumes that demand for a product develops in much the same way in all countries as comparable economic development occurs in each country

triangulation

a term borrowed from naval charting meaning 'using at least three different measures of the same concept to verify the accuracy of any one method.' For example, regarding forecast of demand, separate opinions of experts, sales representatives, and quantitative economic analyses might be compared

chp 13

chp 13 (2 incorrect!)

chp 15

chp 15

chp 9

chp 9

secondary data

data collected by an independent agency or individual other than the firm conducting research; often useful in market research

primary data

data collected specifically for a particular research project (as in market research)

providing management with information for more accurate decision making

the basic objective of the marketing research function (same for both international and domestic marketing)

research process

the process of obtaining information; it should begin with a definition of the research problem and establishment of objectives, and proceed with an orderly approach to the collection and analysis of data

marketing research

the systematic gathering, recording, and analyzing of data to provide information useful in marketing decision making