International Marketing Module 4 Exam
When a seller has agreed to deliver goods to a buyer at a place the buyer names in the country of import, with all costs, including duties paid, it is referred to as: A) FCA B) FAS C) CIF D) DDP E) FOB
D
"Nakumatt" is a supermarket chain in: A) Kenya. B) India. C) Japan. D) Korea. E) Indonesia.
a
If a company sells products in export markets at prices that are below fair market value and that can harm producers in the export market, that company may be accused of: A) dumping B) market skimming C) pursuing artificially high margins D) gray marketing E) using offsets
a
Saks Fifth Avenue has ________ stores in the Middle East. A) licensed B) organic C) franchise D) joint venture E) own-label focus
a
The Advanced Photo System (APS) created by Kodak and its partners combines traditional chemical photo processing with digital technology. One benefit of the system is that shutterbugs can choose three different print sizes. The APS would best be described as a: A) continuous innovation. B) dynamically continuous innovation. C) discontinuous innovation. D) platform-based innovation. E) new and improved innovation.
b
The scandal about finding horse DNA in frozen beef burgers sold in supermarkets in Ireland became a big issue. However, the fact remains that 60,000 tons of horse meat were sold in Europe in 2012. Other facts about horse meat include all of the following except: A) in Europe, horse meat is available from a variety of suppliers. B) it is legal to produce horse meat in the United States. C) horses are shipped from the United States to Mexico and Canada for slaughter. D) Italy imports 50 million pounds of horse meat annually from Ireland. E) horse meat is lean and high in iron and other nutrients.
b
To promote its Centrino wireless chip, Intel launched a global ad campaign that features different combinations of celebrities. These celebrities were chosen because they are widely recognized in the key world markets. This type of strategy is referred to as: A) product-communications extension. B) product extension-communications adaptation. C) product adaptation-communications extension. D) product-communication adaptation. E) product invention.
b
Tupperware is considered as an aspirational brand that represents "moving up" in life in: A) Romania. B) Indonesia. C) China. D) Russia. E) India.
b
All import charges are assessed against the: A) rigid cost plus price B) ex-works price C) landed price D) flexible cost-plus price E) estimated future cost price
c
Packaging aesthetics are particularly important to the: A) Indian. B) Chinese. C) Japanese. D) American. E) Russian.
c
When a corporate name such as Sony is combined with a product brand name such as Walkman, the brand category is referred to as: A) brand equity B) brand symbol C) tiered brand D) co-brand E) brand loyalty
c
Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter? A) organic growth B) chain acquisition C) franchise D) joint venture E) own-label focus
c
Which of the following categories best describes the approach of Britain's Marks & Spencer to global retailing? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above
c
Which of the following statements is not correct? A) Walmart pulled out of Germany and South Korea. B) Best Buy closed several stores in China. C) Home Depot pulled out of China. D) Mattel closed its flagship Barbie store in Shanghai. E) Tesco shut down Fresh & Easy stores in the United States.
c
____ occurs when a manufacturer conspires with wholesalers or retailers to ensure certain retail prices are maintained. A) dumping B) black marketing C) vertical price fixing D) horizontal price fixing E) gray marketing
c
eBay was a pioneer in a form of online marketing known as: A) b-to-c. B) b-to-b. C) p-to-p. D) d-to-d. E) c-to-b.
c
) Which of the following consumer products companies experienced a major product failure in Europe due to inadequate test marketing? A) Procter & Gamble B) Colgate C) Kao D) Unilever E) Seagram
d
A logo can be all of the following except: A) Word Mark B) Non-word Mark C) Brand symbol D) Brand equity E) Trade Mark
d
A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring? A) Does the price take antidumping laws into consideration? B) Does the price reflect the product's quality? C) Will authorities in export markets view the price as a reasonable or exploitative? D) Is the price competitive in view of local market conditions? E) All of the above
e
According to a recent study of European Industrial exporters, companies that utilized independent distributors would be most likely to utilize: A) extension pricing B) ethnocentric pricing C) geocentric pricing D) regiocentric pricing E) polycentric pricing
e
Colgate's Total is a new toothpaste brand whose formulation, imagery, and consumer appeal were designed from the beginning to translate across national boundaries. Which strategy did Colgate use with Total? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product innovation
e
Guidelines which can assist managers in their effort to establish global brand leadership include all of the following except: A) create a compelling value proposition for customers. B) before taking brand overseas, select name, marks and symbols. C) make a process template available to all managers. D) assign specific responsibility for managing branding issues. E) make a process template for international consumers.
e
Hindustan Lever recently developed a hard candy flavored with natural fruit juice that it sells profitably in India for the equivalent of 1 cent per piece. This is Hindustan Lever's first-ever candy product. What strategy is evident here? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
e
If company managers decide to set the export price for a particular product at an amount equivalent to the home-country price, they would be using which approach to pricing? A) geocentric B) polycentric C) regiocentric D) extension pricing E) ethnocentric
e
Example of a "brand symbol" includes all of the following except: A) date of manufacture on Coca-Cola cans. B) the wave that appears on red Coke cans and bottle labels. C) non-word marks such as the Nike swoosh. D) three-pronged Mercedes star. E) McDonald's golden arches.
A
"Containerization" refers to a company's: A) designing attractive product packaging that will help a product "sell itself." B) use of computer technology to keep a lid on ("contain") distribution costs. C) use of refrigerated warehouses for perishable products. D) use of standard-sized shipping boxes that can be transported in various ways. E) method of shipment by using oval size steel containers to fit different commodities.
a
"Organized retail" is a term used to describe: A) modern chain stores. B) grocery stores. C) local retail chains. D) supermarkets. E) hypermarkets.
a
) When British entrepreneur Richard Branson established the first Virgin Megastore in France, he invested a great deal of money to develop a retail space on the famous Champs-Elysées. Judging by the approach Branson used, he and his management team must have viewed France as: A) culturally close and easy to enter. B) culturally distant and easy to enter. C) culturally close and difficult to enter. D) culturally distant and difficult to enter. E) culturally difficult and easy to enter.
a
A French winery packs its wine in a 40-foot container that is trucked to a port and then loaded onto an ocean-going vessel. This is an example of: A) intermodal transportation. B) inventory control. C) hypermarketing. D) "cherry picking" a product. E) containerization.
a
A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails to New York, where the containers are transferred to railroad cars and transported to the west coast. At the port of San Francisco, the containers are loaded onto another freighter bound for Japan. The term that best describes this situation is: A) intermodal transportation. B) inventory management. C) greenfield investment. D) hypermarketing. E) containerization.
a
A variety of environmental factors have combined to push retailers out of their home markets in search of opportunities around the globe. All of the following reasons are responsible for such a move except: A) saturation of the home-country market. B) a recession in the home-country. C) strict regulation on store development. D) high operating costs. E) high population growth.
a
All of the following activities must be performed when goods cross international boundaries EXCEPT: A) using the cost-based pricing method B) arranging ocean freights and prep C) obtaining marine insurance and certification of the policy D) packaging goods for export E) obtaining currency permit, if required
a
British entrepreneur Richard Branson has built a global business empire by: A) relying on brand extension. B) being the first to use smart cards in major markets. C) developing local brands. D) avoiding consumer businesses with established leaders. E) restricting the "Virgin" name only to airlines.
a
Coca-Cola Company's global marketing leadership position is based in part on its ability to put Coke "within an arm's reach of desire"; in other words, it is the ability to create: A) place utility. B) time utility. C) form utility. D) information utility. E) all of the above
a
Coca-Cola's distinctive contour bottle, which is sold in many countries, illustrates the point that packaging: A) strategies can vary by country and region. B) helps in storing large sizes in refrigerators. C) strategies do not change by country and region. D) appeals only to Asian consumers. E) helps in brand identification.
a
Comparing the traditional formulation of Maslow's hierarchy with the results of current research on the consumer needs and motivation in Asia, which of the following is correct? A) The lowest two levels of the hierarchy are the same in the traditional and Asian versions. B) The lowest three levels of the hierarchy are the same in the traditional and Asian versions. C) The lowest four levels of the hierarchy are the same in the traditional and Asian versions. D) The five levels in the traditional formulation apply equally in the West and in Asia. E) The highest levels of the hierarchy are the same in the traditional and Asian versions.
a
Maslow's hierarchy is applicable to global marketing because it can help explain how: A) basic human needs can drive the development of global products. B) "self-actualization" is the highest-order need in Japan as well as Western nations. C) status needs in different countries can only be fulfilled with localized products. D) "luxury badging" is irrelevant to companies marketing in Asia. E) Asians differ from Westerners in their basic physiological needs.
a
Pricing objectives in export market may vary depending all of the following factors EXCEPT: A) the stability of prices globally B) a product's life-cycle stage C) the product design process D) the country-specific competitive situation E) the added cost associated with shipping goods
a
Procter & Gamble recently introduced Pampers Rash Guard. Rash Guard does not represent a new product per se; rather, the diapers are being marketed as an alternative to regular Pampers. What type of innovation do Pampers Rash Guard diapers represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a platform-based innovation E) none of the above
a
The basic consideration for setting prices on goods that are traded across borders does not include: A) Is it feasible to use home country pricing? B) Is the price competitive given the local market conditions? C) Does the price reflect the product's quality? D) Which type of discount does the firm offer its international's customers? E) Do the foreign country's antidumping laws pose a problem?
a
The marketers of Corona beer achieved great success in the U.S. market by: A) retaining the bottle design originally used in Mexico. B) hiring Hispanic movie stars as endorsers. C) distributing Corona in returnable bottles. D) changing the brewing recipe to conform to American palates. E) having the label in Spanish.
a
When introduced in the late 1970s, the VCR created new patterns of consumer behavior. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. DVD, a playback only video system, was introduced in the late 1990s. DVD discs contain full-length movies with digital sound in a format that resembles conventional music compact discs. Which of the following most accurately describes the respective degree of newness of these two global products? A) The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation. B) The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation. C) The VCR and DVD are both dynamically continuous innovations. D) The VCR and DVD are both discontinuous innovations. E) The VCR and DVD are both continuous innovations.
a
Where in the axis that differentiates between retailers does IKEA fall? A) quadrant A B) quadrant B C) quadrant C D) quadrant D E) quadrant E
a
Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above
a
Which of the following could hinder the success of products labeled "Made in Bangladesh" or "Made in Thailand" in export markets? A) negative country-of-origin bias B) no possible quality/price positioning C) low acceptance of private brands D) lack of promotion in global markets E) high product saturation levels in global markets
a
Which of the following does not qualify as a "category killer?" A) Victoria's Secret B) IKEA C) Home Depot D) Circuit City E) Toys "R" Us
a
Which of the following most accurately describes the relative length of consumer and industrial distribution channels? A) Consumer channels tend to be longer (consist of more intermediaries) than industrial channels. B) Industrial channels tend to be longer (consist of more intermediaries) than consumer channels. C) Both consumer and industrial channels tend to be long (consist of several intermediaries). D) Both consumer and industrial channels tend to be short (consist of few intermediaries). E) Consumer channels tend to be shorter (consist of few intermediaries) than the industrial channels.
a
A distributor with good contacts may appear to be the obvious choice in terms of generating quick sales and revenues but may not be the best one. Which of the guidelines for companies selecting independent distributors is this statement referring to? A) Select distributors; don't let them select you. B) Look for distributors capable of developing markets. C) Give local distributors control over marketing strategy. D) Treat local distributors as long-term partners. E) From the start maintain control.
b
A global product meets the wants and needs of a global market, including the Triad which includes the following countries: A) Brazil, Russia, and China. B) Japan, Western Europe, and the United States. C) China, the United States, and Europe. D) China, India, and Brazil. E) Japan, China, and Western Europe.
b
An important new tool for inventory management is: A) ODW. B) RFID. C) LEGO. D) VUCA. E) EPOS.
b
Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect? A) brand equity B) co-branding C) brand image D) brand extension E) tiered branding
b
As outlined by branding expert Kevin Keller, the benefits of strong brand equity include all of the following except: A) greater loyalty. B) more vulnerability to marketing actions. C) less vulnerability to marketing crises. D) more inelastic consumer response to price increases. E) more elastic consumer response to price decreases.
b
Before Ben & Jerry's launched their ice cream in the United Kingdom, the company conducted extensive research to determine whether the package design was appropriate. The research indicated that British consumers perceived the colors differently than U.S. consumers. The package design was changed accordingly. This type of strategy can be defined as: A) product-communications extension. B) product extension-communications adaptation. C) product adaptation-communications extension. D) product-communication adaptation. E) product invention.
b
By definition, ________ feature a narrow but deep merchandise mix and high levels of service. A) department stores B) specialty retailers C) supermarkets D) convenience stores E) discount stores
b
Departmentalized, single-story retail establishments that offer food and nonfood items, mostly on a self-service basis are called: A) Specialty retailers. B) Supermarkets. C) Convenience stores. D) Discount retailers. E) Hyper markets.
b
Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the United States. This is an example of the ________ strategy. A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
b
Gray markets impose several costs or consequences on global marketers, which does NOT include: A) damage to channel relationships B) increased product demand C) reputation and legal liability D) free riding E) dilution of exclusivity
b
If a company's home currency strengthens, it is: A) a favorable turn of events for the typical exporter. B) an unfavorable turn of events for the typical exporter. C) a favorable turn of events since the revenues increase in home currency. D) an unfavorable turn of events for exporter's home country. E) neither favorable nor unfavorable turn of events for the typical exporter.
b
In Chinese markets, Nike had a problem using the "Just Do It" attitude which was found not to be appropriate. Finally, Nike decided to use Chinese athletes in their promotion. This type of adaptation was needed due to: A) the Chinese do not wear running shoes. B) ingrained Chinese values which respect authority. C) Chinese athletes use Nike shoes. D) "Just do it" in Chinese has a negative connotation. E) parents do not want their children to see such ads.
b
In less-developed countries the most important channel of distribution is: A) door to door. B) public marketplaces. C) wholesale marketplaces. D) pyramid schemes. E) retail stores.
b
In some developing countries, refrigerators have an important secondary purpose related to higher-order needs, which relates to: A) self-respect B) prestige C) physiology D) safety E) competition
b
Many American car buyers perceive Korean cars as: A) durable. B) cheap. C) reliable. D) of high quality. E) good investment.
b
Marketing channels exist to create utility for customers. The major categories of channel utility include all of the following except: A) place utility. B) price utility. C) information utility. D) form utility. E) time utility.
b
Motorola's failed Iridium venture was a global satellite telephone network designed to allow users to make or receive calls anywhere on the globe using handsets that are somewhat bigger than typical cellular phones. What type of innovation did Iridium represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a platform-based innovation E) none of the above
b
Nintendo was fined nearly $150 million after it was determined that the video game company had colluded with European distributors. The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices. This is a classic example of: A) transfer pricing B) price fixing C) price skimming D) price bundling E) market penetration
b
One of the highest profile companies, PepsiCo, which has done business in the Soviet and post-Soviet market for decades, has used this form of countertrade: A) switch trading. B) barter. C) offset. D) compensation trading. E) counterpurchase.
b
Order processing, warehousing, and inventory management are all functions pertaining to: A) a polycentric orientation. B) physical distribution and logistics. C) sales promotion. D) personal selling. E) chain acquisition.
b
Packaging aesthetics are particularly important to the ________ consumer. A) Indian B) Japanese C) French D) German E) American
b
Packaging is an important consideration for products that are shipped to markets worldwide. Which of the following statements related to packaging is not true? A) Nestlé's worldwide network of packaging teams provide improvement suggestions on a quarterly basis. B) The Japanese prefer plain soft colors on their packages. C) The Aquafresh Ultimate tube was designed to stand vertically. D) Coca-Cola had contour bottles in both glass and plastic versions in many countries. E) Nestlé asked suppliers to find a glue to make the clicking sound louder when a tube of Smarties brand chocolate candies are unwrapped.
b
Peer-to-peer (p-to-p) marketing uses distribution channels through: A) business-to-consumers. B) electronic commerce. C) business-to-business. D) door-to-door. E) manufacturer-to-wholesalers.
b
Targeting the 300 million farmers in India who still use plows harnessed to oxen, John Deere engineers created a line of relatively inexpensive, no-frills tractors. The Deere team then realized that the same equipment could be marketed to hobby farmers and acreage owners in the United States, a segment that they had previously overlooked. This is an example of ________ strategy. A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
b
What solution did Andersen Consulting provide to the Moscow Bread Company to solve the problem of stale bread? A) Deliver the bread frozen. B) Package the bread in plastic bags. C) Convert to a paperless office to cut red tape. D) Deliver the bread sliced rather than in whole loaf form. E) Use paper packaging for bread.
b
When a company uses intermodal or multimodal transportation, it is: A) using multiple channels. B) using land and water shipping. C) shipping via more than one railroad line. D) using the services of both UPS and FedEx. E) using different size containers for shipment.
b
Which country has the biggest market for Tupperware? A) Romania B) Indonesia C) China D) Russia E) India
b
Which of the following correctly characterizes the retailing strategy shared by Toys "R" Us and Virgin Megastores? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above
b
Which of the following correctly characterizes the retailing strategy shared by Virgin Megastores? A) few product categories, own-label focus B) few product categories, manufacturer brand focus C) many product categories, own-label focus D) many product categories, manufacturer brand focus E) none of the above
b
Which of the following forms of countertrade does not require use of money or credit between parties? A) switch trading. B) barter. C) offset. D) compensation trading. E) None of these
b
Which one of the following statements is not accurate regarding Alaphabet Inc.? A) Alphabet has also made a number of strategic acquisitions, including video-sharing site YouTube and the Internet of Things thermostat brand Nest. B) The company also owns Advanced Technology and Projects (ATAP), which focuses on mobile applications. C) The company's core search and ad-driven businesses are still called Google. D) The company's semi-secret research division is known as the Moonshot Lab. E) Samsung and several other handset manufacturers use its Android smartphone operating system.
b
"Intel inside" campaign promoting both the Intel Corporation and its Pentium-brand processors in conjunction with advertising for various brands of personal computers is an example of: A) brand equity. B) brand symbol. C) co-branding. D) brand extension. E) brand loyalty.
c
A manufacturer attempting to set prices for its products in export markets must realize that CIF, VAT, and distributor markup all lead to: A) currency devaluations B) market penetration C) price escalation D) dumping charges E) market skimming
c
All of the following stores are categorized as "superstores" except: A) Toys "R" Us. B) Home Depot. C) IKEA. D) Babies "R" Us. E) The Body Shop.
c
An express warranty is a written guarantee that assures the buyer that he or she: A) is getting what he or she desired. B) will be able to get express response if any defects are found. C) is getting what he or she has paid for. D) will be able to contact the manufacturer whenever needed. E) has limited time for filling out information required by the manufacturer.
c
Breaking all the conventional norms, Selfridge opened his department store just off Oxford Street. The changes incorporated include all of the following except: A) perfume and fragrance were moved to the front in order to avoid any horse dung odors. B) goods were put within reach of the customers. C) goods were kept behind counters and were available by asking store clerks. D) customers always came first. E) early bird specials were offered.
c
By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns. A) continuous innovation B) dynamically continuous innovation C) discontinuous innovation D) platform-based innovation E) new and improved innovation
c
Channel decisions are important because: A) commitments are flexible. B) relationships change with time. C) it is expensive to terminate. D) issues can be solved by arbitration. E) local laws do not protect agreements.
c
Dollar stores are classified under: A) Convenience stores. B) Specialty retailers. C) Discount retailers. D) Hard discounters. E) Category killers.
c
Generally speaking, international trade results in: A) higher prices for goods B) low inflation rates C) lower prices of goods D) stabilizing prices E) high inflation rate
c
Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation? A) companion products B) food products C) industrial products D) intangible products E) non-alcoholic drinks
c
Givenchy and Christian Dior's Dune fragrance are two of the luxury perfume brands that are sometimes diverted from authorized channels for sale at mass-retail outlets. This practice is referred to as: A) barter. B) switch trading. C) gray market. D) offset. E) dumping.
c
Gnerally speaking, which of the following statements is true concerning product attributes? A) Tangible product attributes are more important than intangible ones. B) Intangible product attributes are more important than tangible ones. C) Both tangible and intangible product attributes are important. D) Neither tangible nor intangible product attributes are important. E) A product has more attributes than tangible and intangible ones.
c
Luxury good marketers found a new way to combat gray market imports into the United States. In March 1995, the U.S. Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume without permission. The distinctive packaging of the perfume is also protected by the U.S. Copyright law. The ruling implies that: A) Costco and Walmart will no longer be able to sell Givenchy B) gray marketers will be able to market with authorization C) Costco and Walmart will be able to sell Givenchy with authorization D) discount drugstores cannot market a product resembling Givenchy's perfumes E) Givenchy can only be sold in copyrighted packages
c
Marketers in Gillette's Parker Pen subsidiary focused on upscale shoppers in Malaysia and Singapore. This is an example which coincides with the Maslow's hierarchy related to A) self-esteem B) physiological needs C) security D) self actualization E) social needs
c
Sales representatives in which Japanese industry cultivate close, long-term relations with customers by selling door-to-door? A) consumer electronics B) pharmaceuticals C) automobiles D) soft drinks E) groceries
c
Some wine importers insist on shipping their wines in refrigerated containers to protect the wines from being damaged by high temperatures. Such importers are creating which kind of utility? A) place utility B) time utility C) form utility D) information utility E) worker utility
c
The benefits of strong brands include all of the following except: A) greater loyalty. B) less vulnerability to marketing actions. C) less inelastic consumer response to price increases. D) more elastic consumer response to price decreases. E) larger margins.
c
The challenges in bringing the Smart across the Atlantic include all of the following except: A) the euro's strength relative to dollar. B) DaimlerChrysler merger ended. C) Smart was under the ownership of DaimlerChrysler. D) Smart was under the ownership of Daimler AG. E) distribution and promotion critical to a successful U.S. launch.
c
The entry global retailing market expansion strategies include all of the following except: A) franchise. B) chain acquisition. C) departmental stores. D) joint ventures. E) organic.
c
The following activities must be performed when goods cross International boundaries EXCEPT: a) packing goods for export B) transporting the goods C) receiving payments D) obtaining currency permit E) preparing a land bill of lading
c
The formulation, imagery, and consumer appeal of Colgate's Total brand toothpaste were designed to translate across national boundaries. This new global brand represents which type of product innovation? A) discontinuous innovation B) dynamically continuous innovation C) continuous innovation D) comparative innovation E) dynamically discontinuous innovation
c
The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home electronic entertainment. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. The VCR's popularity also gave rise to an entirely new retailing concept, the video rental store. What type of innovation did the consumer VCR represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a comparative innovation E) none of the above
c
The retail environment in developing countries presents challenges for marketing nonperishable items. In Mexico, Proctor & Gamble, Unilever, Colgate-Palmolive, and other global consumer product companies use ________ for their products. A) door-to-door selling B) buy-in-bulk selling C) mom-and-pop stores D) franchised stores E) manufacturer-owned stores
c
To motivate shopkeepers to stock more of P&G's products, the company launched a: A) door-to-door program. B) retail store program. C) golden store program. D) hypermarket program. E) sole distributor program
c
When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging consumers to purchase Tag Heuer products from authorized dealers only, the company is most likely attempting to combat the ________ problem. A) countertrade B) price escalation C) gray market D) market skimming E) market holding
c
When Walmart entered the German market, ________ were already entrenched. A) Specialty retailers B) Discount retailers C) Hard discounters D) Hypermarkets E) Supermarkets
c
Which of the following is not an appropriate guideline for companies selecting independent distributors in international markets? A) Select distributors; don't let them select you. B) Look for distributors capable of developing markets. C) Give local distributors control over marketing strategy. D) Treat local distributors as long-term partners. E) All of the above are appropriate guidelines.
c
Which of the following is true about proper use of the term "countertrade"? A) The term "countertrade" is interchangeable with "counter purchase" B) The term "countertrade" is interchangeable with "offsets" C) "Countertrade" is a term that refers to several different types of business transactions D) The term "countertrade" is interchangeable with "dumping" E) The term "countertrade" is interchangeable with "barter"
c
Which of the following statements is not an example of local products or brands? A) Coca-Cola developed several branded drink products for Japan. B) Coca-Cola markets Kinely brand bottled water in India. C) BMW uses "the ultimate driving machine" slogan in India. D) Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United Kingdom. E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.
c
Which personal computer company began life as a b-to-b marketer and then began marketing direct to the home PC market? A) Hewlett-Packard B) Compaq C) Dell D) Acer E) Sony
c
A commodity raw material that comes from Africa, is refined in Asia, is shipped to South America for finishing, and finally is transported to the Middle East and then sold around the world mimics products marketed by: A) Exxon. B) McDonald's. C) Caterpillar. D) IKEA. E) Sears.
d
After four years of product development, Procter & Gamble recently introduced a new, improved disposable diaper. Pampers Rash Guard diapers are designed to prevent diaper rash and represent the first time a company has made a medical claim for its diapers. What kind of innovation do the new diapers represent? A) platform-based innovation B) dynamically continuous innovation C) discontinuous innovation D) continuous innovation E) none of the above
d
Alfred Zeien, former chairman of Gillette, once noted that his company's Parker Pen unit does not have to develop a special model for Malaysia and Singapore because shoppers worldwide seek the same things when buying a gift that will serve the recipient as a status symbol. This insight relates to which level of Maslow's hierarchy of needs? A) physiological B) safety C) social D) esteem E) self-actualization
d
Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese consumers were not receptive to ads featuring the Campbell Kids and the "M'm M'm Good" slogan. This compelled Campbell's to develop ads featuring a talking soup can known as "Mr. Campbell." Campbell's also developed soup varieties for Japan with fish as the main protein source and spices that reflect local preferences. As described here, which of the following strategies has Campbell's used in Japan? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) product-communication adaptation E) product invention
d
Global marketers must understand the importance of visual aesthetics embodied in the color or shape of a product, label, or package. Which of the following statements is not true regarding the use of color in selected countries? A) The yellow color on Caterpillar's earthmoving equipment is acceptable worldwide. B) Packaging aesthetics are particularly important to the Japanese. C) The color white is associated with death and bad luck in some Asian countries. D) The red Marlboro color had to be changed in some Asian countries. E) The Chinese consider the color red to be lucky.
d
Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) product-communication adaptation E) product invention
d
Regulators in different countries have proposed various regulations for product labeling. All of the following statements pertaining to such regulations are true except: A) mandatory health warnings on tobacco products are required in most countries. B) the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point. C) in 2008, the United States enacted a country of origin labeling (COOL) law. D) the use of terms "light" and "natural" are allowed on labels only in the United States. E) McDonald's is posting nutrition information on all food packaging and wrappers in selected markets.
d
Suppose a company selling in various country markets makes statements such as "we know what the customer wants, and he or she will have to pay for it." This is an indication of a(n) ________ approach to setting prices. A) polycentric B) adaption C) geocentric D) ethnocentric E) regiocentric
d
The American Automobile Labeling Act clarifies all of the following except: A) country of origin. B) final assembly point. C) the percentages of the major sources of every car and truck. D) information about car dealer. E) aesthetic style.
d
The availability of the product processed, prepared, in proper condition, and/or ready to use is referred to as: A) place utility. B) price utility. C) information utility. D) form utility. E) product utility.
d
To provide positive proof that dumping has occurred in the US, both ___ and injury must be demonstrated. A) gray marketing B) black marketing C) price fixing D) price discrimination E) market skimming
d
When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established a joint venture with the Marui retailing chain. Judging by the approach Branson used, he and his management team must have viewed Japan as: A) culturally close and easy to enter. B) culturally distant and easy to enter. C) culturally close and difficult to enter. D) culturally distant and difficult to enter. E) culturally difficult and easy to enter.
d
When Walmart stores first expanded into Mexico, management established a joint venture with the country's largest retailer. Judging by the approach Walmart used, management must have viewed Mexico as: A) culturally close and easy to enter. B) culturally distant and easy to enter. C) culturally close and difficult to enter. D) culturally distant and difficult to enter. E) culturally difficult and easy to enter.
d
When companies adopt an indirect involvement channel they have all of the following activities except: A) utilize independent agents. B) use distributors. C) utilize retailers. D) establish their own sales force. E) utilize those who have network of stores.
d
Which of the following transportation modes ranks lowest in capability? A) truck B) railroad C) Internet D) air E) water
d
Which of the following would not be used by an exporter with a weak home country currency? A) exploit marketing B) speed repatriation of foreign earned income C) buy advertising, insurance, and other services in home country market D) shift sourcing outside home country market E) expand product line and add more costly feature
d
Which type of countertrade arrangement is required by governments seeking to reduce the budgetary impact of expenditures for defense or telecommunications? A) barter B) switch trading C) compensation trading D) offset E) None of these
d
________ can also be thought of as an asset representing the value created by the relationship between the brand and its customers over time. A) Brand extensions B) Co-branding C) Brand image D) Brand equity E) Brand loyalty
d
________ represents the cumulative added value of a company's investment in the marketing of a brand over time. A) A brand extension B) Co-branding C) Brand image D) Brand equity E) Brand loyalty
d
In July 2001, the euro's value relative to the dollar was about $0.85. By November 2009, the euro had strengthend to $1.48. In February 2012, one euro was equal to $1.33, in August 2015 it was equal to $.99 and in September of 2018, one euro was equal to $.87. All other things being equal, if a European-based global company wants to preserve margins for goods exported to the US market, the company should: A) reduce prices in dollars B) switch to cost-based pricing C) use skimming pricing D) adopt a policy of market penetration pricing E) raise prices in dollars
e
In exchange for a pledge to carry at least 40 different Procter & Gamble products, participating stores receive regular visits from P & G representatives who tidy and arrange display areas. This motivational program is referred to as: A) "buy-in-bulk" store program. B) "high-frequency" store program. C) "mom-and-pop" store program. D) "shop operators" program. E) "golden store" program.
e
In spite of Walmart's potential to transform India's retail sector for the better, Indian activists and policy makers are worried because: A) Western-style, big-box retailing is anathema. B) millions of shopkeepers will be out of business. C) policy makers are suspicious of the company's motives. D) attitude that can be traced back to the British East India company of the colonial era. E) all of the above
e
In the summer of 2006, it was announced that the company's Smart car would be offered for sale in the United States. Which global company was responsible for bringing the Smart car to market? A) Swatch B) Volkswagen C) Nissan D) Ford E) DaimlerChrysler
e
Inventory management is: A) determining what type of warehouse to manage. B) establishing an inventory channel. C) managing physical distribution of products. D) purchasing products. E) ensuring cost control.
e
Physical distribution and logistics are concerned with all but one of the following: A) order processing. B) warehousing. C) inventory management. D) transportation. E) designing in-store displays.
e
Products that belong to the category of "game changers" are considered as ________ innovations. A) new product B) line extensions C) continuous D) dynamically continuous E) discontinuous
e
The corporate development team at Virgin evaluates more than a dozen proposals each day from outside and within the company. When assessing new-product ideas, they look for all of the following except: A) synergy with existing Virgin products. B) pricing and return on investment. C) marketing opportunities. D) if the idea "uses or abuses" the Virgin brand. E) aesthetic attributes of competitors products.
e
The unauthorized distribution of trademarked goods to exploit price differentials in world markets is known as: A) market skimming B) licensing C) black marketing D) dumping E) gray marketing
e
Which of the following is an appropriate guideline for companies selecting independent distributors in international markets? A) Select distributors; don't let them select you. B) Look for distributors capable of developing markets. C) Treat local distributors as long-term partners. D) Maintain control over marketing strategy from day one. E) All of the above are appropriate guidelines.
e
Which of the following is not in the top five of the world's most valuable brands according to 2012 rankings? A) Sony B) Microsoft C) Coca-Cola D) GE E) Nokia
e
Which of the following is not one of the levels in the Asian version of Maslow's hierarchy? A) physiological B) safety C) affiliation D) admiration E) self-respect
e
Which of the following is the largest retailer in the world in terms of annual sales according to the top five global retailers, 2012? A) Sears B) Metro C) Kmart D) Carrefour E) Walmart
e
Which of the following would NOT be taken into account by a company using an ethnocentric approach to pricing decisions? A) the possibility of implementing a penetration strategy B) integration of price with other marketing mix elements C) profitable price points that could be tied to local sourcing as opposed to home-country sourcing D) factors unique to individual country markets E) None of these would be taken in account by a company using ethnocentric pricing
e
Which pricing strategy has the advantage of being simple to calculate but has the disadvantage of ignoring demand and competitive conditions? A) penetration B) market holdoing C) gray marketing D) skimming E) cost-based
e
