MARK 4325 Final
According to this video Bags to riches: inside the luxury handbag culture, how much money are Americans willing to spend on a luxury handbag and for what reason are they willing to buy these luxury handbags?
$60,000 for artistic reasons
According to the U.S. Department of Commerce, Latin American and other emerging markets will account for ________ of the world's total growth in the next two decades and beyond.
75%
Adaptation on the part of an international marketer is best described as
A conscious effort to anticipate the influences of both the foreign and domestic uncontrollable factors on a marketing mix and then to adjust the marketing mix to minimize the effects.
When developing a website, what is true about the use of language?
A country-specific (and language-specific) website may make the difference between success and failure.
Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she is most likely to consider using ________ to enter the market.
A joint venture
Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share ________ and are commonly aware of being European.
A long-established Christian heritage
A website should be seen as
A means of promotion and a retail store.
What is a severe limitation of using the Internet for primary research?
A sample universe composed solely of Internet respondents represents a potential bias.
Paul attends the London Book Fair every year to represent his company and show its products to publishers from other countries. He also meets with individual publishers to discuss distributing their books in the U.S. The London Book Fair is
A trade show
________ is a unique forum that has evolved into the primary regional vehicle for promoting trade liberalization and economic cooperation, and includes all the major economies around the Pacific Rim, from Russia to Chile to Australia.
APEC
According to the text, today the real power of the Internet for international marketing research is the
Ability to easily access volumes of secondary data.
________ duties are levied as a percentage of the value of the goods imported.
Ad velorem
Marilee understands that if she wants her U.S.-based company to flourish in Italy, she must be tolerant of Italian customs and norms that might differ from what she deals with in the United States and also be humble and not assume that her current way of doing business is the only way to do business. What characteristic is Marilee demonstrating?
Adaptation
Of all the elements of the marketing mix, decisions involving ________ are those most often affected by cultural differences among country markets.
Advertising
A multinational company with its headquarters in the U.S. wants to sell its new high-technology product in Germany. For the most effective selling, the sales force for this company would probably consist mostly of
American expatriates
Case 2-6 When International Buyers and Sellers Disagree, The American Arbitration Association upheld the ________.
American exporter
In general, price decisions are viewed in two ways: pricing as a static element in a business decision, and pricing
As an active instrument of accomplishing marketing objectives.
When considering the role of time in business, which of the following is true of P-time and M-time?
As global markets expand, more businesspeople from P-time cultures are adapting to M-time.
According to Case 3.3 Marketing to the bottom of the pyramid, which statement is not correct?
BOP marketing often lowers health standards.
While expanding the investment base of a company, what can be used as a powerful ally in dealing with threats of government takeovers or harassment?
Banks that have lent money to the host government
A direct sales force may be required in a foreign country, especially for
Big ticket industrial products.
Marcus is the director of a small company in Boston. He is trying to obtain parts from a manufacturer in Taiwan but that company is unwilling to send them because of government regulations limiting exports on small orders. Marcus calls the head of the manufacturing company and says he will pay him an extra $5,000 if he ships them anyway. What practice is Marcus using to obtain the parts?
Bribery
Cases 1.1 Starbucks, according to your instructor lecture, Starbucks is going Global too fast what risks are mentioned that are specific to Starbucks?
Burning out the brand
Which account in the balance-of-payments statement is a record of direct investment, portfolio investment, and short-term movement of cash and technology to and from countries?
Capital account
Eastern Europe and Baltic states, satellite nations of the former Soviet Union, have moved steadily toward adopting aspects of
Capitalism
What is an approach mentioned in the text to prevent Chinese consumers from creatively copying foreign intellectual property?
Charging what the market will bear
A European chocolate manufacturer received several complaints from customers about the quality of its products when it began selling them in a tropical country. The firm had to repackage its chocolate bars with an extra plastic wrapper to protect it from the heat and dust. Which factor in the local market is most likely to have dictated the company's product adaptation in this scenario?
Climatic requirements
Maureen leads the international marketing department of Mayfone, a smartphone manufacturer. Mayfone has recently decided to expand its presence in Ecuador. As part of the marketing research effort, Maureen has decided to use data on competitors provided by independent market research agencies located in Ecuador. In the context of assimilating secondary data, which of the following problems is Maureen most likely to face?
Comparability of data
Karyn, who is interested in marketing her company's diet products in Asia, studies the acceptable behavior, norms, and values in Asian markets as they relate to her product. In other words, Karyn is studying her product's ________ in the Asian markets.
Compatibility
What was Japan's greatest hindrance to the development of software innovations appropriate for world markets?
Complex language
With respect to the political risk that can be faced by a company seeking to invest abroad, which action is most severe?
Confiscation
Which of the following may best explain why the Japanese have such strong loyalty toward their companies?
Confucian philosophy
In countries with strong cultures, particularly those with collectivistic and high-context cultures, ________ will be the single most important source of information about the development of new industrial products and services.
Constant and close communication with customers
Most middlemen handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is a problem associated with which of the six Cs of distribution channel strategy?
Continuity
Appliances-a-Rama, an Indian company that manufactures kitchen appliances, alters the design of its ranges to suit the needs of its Japanese consumers. The Japanese prefer compact and efficient appliances to fit their small kitchens. According to the Product Component Model, which product component is being addressed?
Core
Harry and his team draft a plan for their organization, HD Corp. They primarily establish the overall goals that HD should accomplish in the next 25 years. In this case, Harry and his team are most likely engaged in ________ planning.
Corporate
When Burger Boys an American fast-food company, wanted to market its burgers and fries in France, it was asked to import French mustard to the United States in return. This is an example of
Countertrade
A shoe manufacturer in the Philippines shipped its entire production to San Francisco and then brought it back to the Philippines to market it as "Made in the U.S." The manufacturer believed that people would prefer buying products made in the U.S. rather than those domestically produced. The factor that is influencing the perception of the customers in the given scenario is called the ________ effect.
Country-of-origin
When Going Global, businesses should specify the _____________ and___________ product offerings.
Country; adapt
Modern medicine has thrived in the United States together with the use of herbal remedies from South America. This is an example of
Cultural borrowing.
Compared to the foreign environment variables, which of the following uncontrollable variables is least likely to affect a domestic marketer?
Cultural forces
Direct mail is an unpopular medium in Chile because
Customers must pay for every item delivered by the letter carrier.
A ________ is an intermediate step in the transition from a free trade area to a common market.
Customs union
In the context of international advertising, it has been observed that advertising expenditures are generally
Cyclical
An important first step in adapting a product to a foreign market is to determine the
Degree of newness of the product as perceived by the intended market.
What principle U.S. agency supports U.S. businesses abroad?
Department of Commerce
Tactical plans are
Designed to address questions that relate to advertising and marketing.
What are the three main bases of world trade?
Differences in skills, economies, national resources
Due to differences in culture in different markets, standardized products that are marketed globally will most likely require
Different advertising appeals.
Which marker entry strategy is the highest financial commitment, risk and marketing control?
Direct Investment
Mirros, a U.S. kitchenware distributor, takes a selection of its inventory twice a year to Vietnam and sells it to a Vietnam-based kitchen retailer. The Vietnam company, in turn, sells those products through its retail stores in Vietnam and Thailand. In which of the alternative market-entry strategies is Mirros engaged?
Direct exporting
What is often the approach of choice in markets with insufficient or underdeveloped distribution systems?
Direct marketing
The government in Chile recently informed Mario's company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050 as it is a foreign company in Chile. Additionally, starting the following year, 50 percent of the board of directors of the Chilean operation of the company must be Chileans. What political risk action is Mario's company facing in Chile?
Domestication
What is used to ensure that balance-of-payments records are always in balance?
Double-entry bookkeeping system
By shipping unassembled goods to a free trade zone (FTZ) in an importing country, a marketer can typically lower costs because
Duties are typically assessed at lower rates for unassembled goods.
What is considered the single most important environmental element of a country to which the foreign marketer must adjust the marketing task?
Economic level
A country's investment in information technology is a key to economic growth. Specifically, the Internet
Enables smaller firms in emerging economies to sell into a global market.
What appears to be the best way to stimulate economic development and growth from within developing countries?
Encouraging networked entrepreneurial activities
In the United States, ownership of intellectual property rights is established by "prior use versus registration," which implies that to claim the ownership of a trademark, an individual must
Establish first use of a trademark.
________ would most likely be characterized as being an imperative business custom in many cultures.
Establishing friendships
Using the research link provided in the Instructor Lecture Ch 1 to the Bureau of Economic Analysis, which country has the highest dollar amount of investment in the U.S.?
Europe
Of all the multinational market groups, none has been more secure in its cooperation or more important economically than the
European Union
A consumer products company has already reviewed its objectives and capabilities, established the screening criteria for reviewing potential foreign markets, and examined a series of environmental factors for the markets in which it plans to operate. What should the company do next as it proceeds with the international planning process?
Evaluate the marketing mix to target markets.
G&P's marketing research department needed to get figures on market size and growth rates in a company they were targeting for growth. They opted to use government officials and outside consultants for the information. This is a method known as
Expert opinion
Which agency underwrites trade and investments for U.S. firms?
Export-Import Bank
Half of Shanghai's GDP is derived from
Financial services industries.
What is most likely to be a reason that headquarters personnel tend to ignore the advice of local nationals?
Foreign nationals lack the understanding of how home-office politics work.
A ________ is an agreement between two or more countries to reduce or eliminate customs duties and non-tariff trade barriers among partner countries while members maintain individual tariff schedules for external countries.
Free trade area
Companies that use ________ pricing insist that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost.
Full-cost
What is one of the key elements in distribution decisions when it comes to choosing channels?
Functions performed by middlemen
A manufacturer of toiletries and cleaning products uses the name Home Helper, for most products in their international markets. The name has created a universal appeal for its products as customers identify their products with the name; hence, Home Helper can be regarded as a ________ brand.
Global
Which global marketing strategy costs businesses more money to implement?
Global adaptation
What has hampered the conferences held by the United Nations Economic Commission for Africa from bringing about economic integration?
Governmental inexperience
Compared with other societal forces, how does the role of government influence social culture?
Governments influence thinking and behavior through the enforcement of a variety of laws affecting consumption and marketing behaviors.
One of the drawbacks of satellite TV is
Governments' fear of a loss of control over their airwaves and messages.
Considering the specific characteristics of Japan's culture, what strategies would be most successful in motivating employees in Japanese organizations?
Group bonus systems
Which form of business decision making is predominant in most Asian countries?
Group decision making
Newly industrialized countries (NICs) differ from less-developed countries in that NICs
Have moved away from restrictive trade practices and instituted significant free market reforms.
It is estimated that 78 percent of today's website content is written in English, yet not every person in the world can read or understand English. What solution does the text suggest to make website content more universal?
Having country-specific websites so that everyone can communicate in their own language
In most cases, the reason products cost relatively little in one country and cost more in another is the
Higher costs of exporting.
What is true of the findings of Transparency International's Corruption Perception Index (CPI)? And using the CPI index 2019 the following country is listed at the bottom of the list of 180 countries?
Higher levels of bribery have been found in low-income nations; Somalia
Innovations that are most readily accepted are those that
Hold the greatest interest within the society and those that are least disruptive.
According to Edward Hall's comments on culture, which action could hurt companies and careers in foreign markets?
Ignorance of cultural differences in the foreign market
Cho is having difficulty with her company's advertising in Japan. As a representative of Cherry Motors, she intends to use American campaigns in the Japanese market. She is surprised to learn that the slogan "Body by Bass" (the company that makes external structures for Cherry Motors) loosely translated in Japanese means "Corpse by Bass." Which of the following problems did Cho experience with her company's advertising in this scenario?
Improper colloquialisms or slang
The two most important steps China must take to ensure smooth economic growth are to _____; AND one of the reasons there is no one-growth strategy for China is _____.
Improve human rights and reform the legal system; each region in China is at a different stage economically.
What has contributed to the decrease in the historical tension among countries in East Asia ______ ; AND China's astonishing growth rate has begun to slow recently, however, most analysts see fast growth continuing for China primarily dependent, in part, on China's _______.
Increase in direct trade; ability to deregulate industry.
The lack of universal standards in the industrial goods market
Increases the price of raw materials.
Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best." Which item would most likely not fit in the "best" stereotype scheme?
Indian cars
What makes Walmart's transactions with suppliers highly efficient and lowers its cost of operations?
Internal Internet-based system with suppliers
What is one of the four ongoing activities that support the growth of international trade?
International Monetary Fund
What impact has global competition had on business activities in the international marketplace?
It has put more power in the hands of the customer.
What statement is a feature of international corporate planning?
It is essentially long term in nature.
What is a defining characteristic of a balance-of-payments statement?
It records all financial transactions between the residents of a country and those of the rest of the world.
What is true of privatization of state-owned enterprises?
It was done in order to stop the drain on national budgets due to inefficient state-owned enterprises.
Next to the United States, which country has the best quantity and quality of marketing-related data available?
Japan
In the international arena, the greatest problem in sampling stems from the
Lack of adequate demographic data from which meaningful samples can be drawn.
What is most likely to cause the biggest problems for television and radio advertisers in China______; AND What is the primary reason behind the inaccessibility of most of the 1.3 billion potential consumers in China _____?
Lack of common language; the distribution network is poor or absent.
What is a disadvantage associated with a sales force consisting of expatriate salespeople?
Large cultural barriers
What action is important for marketers to take in order to be effective in a foreign market?
Learning to appreciate the intricacies of cultures different from their own
What is an uncontrollable element for an international marketer?
Level of technology
A disadvantage when using home-country middlemen as intermediaries in the distribution process is the
Limited control over the distribution process.
Starbucks. What are the major sources of risk facing the company? Discuss potential solutions.
Losing Customers, Age group: younger people feel uncomfortable in its stores, global expansion: making less money overseas because businesses are operated by local partners. . Saturated market, few options availables
In the context of global population trends, a nation needs a fertility rate of about 2.1 children per woman to be able to
Maintain its population.
What is a factor that contributed to Euro Disney's poor performance during its first year of operation?
Managerial errors of judgment
The United Nations' classification of stages of economic development has been criticized primarily because
Many countries that are classified as LDCs are industrializing at a very rapid rate, while others are advancing at more traditional rates of economic development.
________ is an economy's arbitrator between productive capacity and consumer demand.
Marketing
In the video change the product, not the customer, Kikkoman soy sauce is made in Japan and wanted to enter the American market. How did they achieve their success?
Marketing a marinade for beef
According to ________, law is strictly subordinate to prevailing economic conditions, such fundamental propositions as private ownership, contracts, due process, and other legal mechanisms.
Marxist-socialist tenets
What is the first phase in the international planning process?
Matching company and country needs
A ________ time system typifies Western cultures like most North Americans, Swiss, Germans, and Scandinavians and causes them to concentrate on one thing at a time.
Monochronic
In references to the journal article "guidelines for managing an international sales force" which statement is most correct?
Most countries emphasize numbers for control purposes as the universal language of business.
How has globalization impacted domestic markets in the United States?
Multinational manufacturing companies in all industries and sizes have outperformed their domestic counterparts.
Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called
Multinational market regions.
U.S. firms, their foreign subsidiaries, or foreign firms that are licensees of U.S. technology cannot sell a product to a country in which the sale is considered by the U.S. government to affect the
National security of the United States.
According to the HBP Article titled "marketing mistakes", what is one of the marketing mistakes marketers make?
Not specifying countries
What is true of education and the literacy rate of a country?
Numerous studies indicate a direct link between the literacy rate of a country and its capability for rapid economic growth.
History helps us understand why nations behave the way they do. For this reason, most historians try to present information
Objectively
The data in less developed countries are particularly prone to being less positive in nature when reported by these countries.
Official statistics are sometimes too optimistic, reflecting national pride rather than practical reality.
Which source of energy is used most in America?
Oil and Gas
Gift Group Inc., an importing organization in New York, buys perfume from a company in France for $13 a unit. Unknown to the French company, Gift Group sells this product in the United States for $19 a unit. This leads to a loss of revenue for the French company as it also sells its perfume in the United States but for a higher price of $22. What concept does this demonstrate?
Parallel importing
When developing an international advertisement campaign, what is the first step of the process?
Perform marketing research.
The only way to avoid linguistic problems in advertising communication is by
Performing in-country testing with the target consumer group.
IGP owned a large warehouse in England where it stored and distributed books. It was approached by a greeting card company in the U.S. to distribute those as well. Since the products would go into similar markets and IGP could make a profit on the distribution of the greeting card line, it decided to participate in
Piggybacking.
A company that views pricing as a static element in a business decision most probably
Places a low priority on foreign business.
M-time, or monochronic time, typifies most North Americans, Swiss, Germans, and Scandinavians. These Western cultures tend to concentrate on one thing at a time. They divide time into small units and are concerned with promptness. M-time is used in a linear way, and it is experienced as almost tangible, in that one saves time, wastes time, bides time, spends time, and loses time.
Polychronic
Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. What best describes the primary way market opportunities are enlarged by economic unions?
Preferential tariff treatment for participating members
What variable plays a major role as a free market regulator?
Price
What results from the added costs incurred as a result of exporting products from one country to another?
Price Escalation
According to C. K. Prahalad, what misconception leads international markets to ignore the bottom-of-the-pyramid markets?
Products developed for more affluent consumers are not appropriate for BOPMs.
What factor increases the volatility in demand in industrial markets?
Professional buyers in the industrial market tend to act in concert.
What was the most apparent reciprocal impact of the foreign economic assistance given by the United States following World War II?
Purchases of U.S. agricultural products, manufactured goods, and services by the recipient countries increased.
Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s?
Resistance to direct investment and increasing competition in export markets
Which action is most likely a manifestation of nationalism?
Restrictions on imports
In the context of international advertising, companies are moving from the commission system to a ________ system.
Reward-by-results
What key provision of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?
Rules of origin
An underpinning of all commerce is effective communications, knowledge of where goods and services exit and where they are needed and the ability to communicate instantaneously across vast distances. Facilitation this movement into the future one can observe the following shifts in examining world population and telecommunications:
Shift from the country to the city; shift to more technology changes in the future
Japanese and American salespersons are surprisingly similar except for one difference that Japanese rate as more important than their American counterparts. Identify this difference.
Social recognition
What is the most attractive target for pirates because of high development cost and low reproducibility costs?
Software
Which political action is most likely to favor international marketing?
South Africa abolishing apartheid and the U.S. lifting the embargo
New cola alternatives (Mecca Cola, Muslim Up, Arab Cola, and ColaTurka) sprang up after the military conflicts in the Middle East in 2003. This is an example that shows how
Specific events in history can influence consumer behavior.
What is true of state ownership in Latin America?
State ownership has resulted in complicated and unpredictable regulatory environments.
The CEO and the board of directors at a large multinational company meet once a quarter to review the long- and short-term goals of the company and to make changes as required. They are engaged in ________ planning.
Strategic
________ development is a joint approach among those who seek economic growth with "wise resource management, equitable distribution of benefits and reduction of negative effects on people and the environment from the process of economic growth."
Sustainable
Advertising ________ in some countries can distort media choice by changing the cost ratios of various media.
Taxation
What helps account for the vigorous economic growth of the ASEAN countries and their transformation from cheap-labor havens to industrialized nations?
The ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies
At the most general level, ________ represents the most important and comprehensive trade agreement in history.
The WTO
The aesthetics of a culture are found in
The arts, music, dance, and dress.
An expatriate sales force is likely to be
The best choice when selling requires an extensive background of information.
The key factors that influence success of franchising approaches are monitoring costs (based on physical and cultural distances), the principal's international experience, and
The brand equity in the new market.
What is an indicator of a country's economic development?
The country's infrastructure
For most consumer services firms, the mode of entry into a foreign market is licensing, franchising, strategic alliances, or direct. This is usually done because
The creation and consumption of services cannot be separated.
What is perhaps the most significant environmental factor affecting the international market for industrial goods and services?
The degree of industrialization
Industrial markets differ from consumer markets in that
The demand for industrial goods is more volatile than the demand for consumer goods.
When studying the dynamics of global population trends, it is important to remember that
The existence of sheer numbers of people is significant in appraising potential consumer markets.
In an import-oriented distribution structure,
The importer-wholesaler traditionally performs most of the marketing functions.
The Internet has no political or natural boundaries; as a result,
The individual-country laws, which may or may not include private protection, are used in the absence of uniform and internationally accepted cyberlaws.
Which statement is true of universal standards in the sale of international products?
The lack of universal standards limits the expansion of industries.
Adherence to the WTO inevitably means
The loss of some degree of national sovereignty.
Kim is the director of operations at her company and hires an agent to obtain a license to build a warehouse in an industrial district. The agent gets caught offering a bribe to a government official for issue of the license. Which of the following describes Kim's liabilities?
The manager is liable if she was aware of the fact that part of the agent's fee will be used as a bribe.
What is one of the extraneous variables that affects the rate of diffusion of an object?
The method used to communicate the idea
When a company exports a product from the United States to another country, the company is most likely to be unable to determine the ultimate price of a product if
The middleman markups are not standardized.
Buyers in country X prefer to use the older, cheaper version of Firm A's product although it is bulkier and less user-friendly. Buyers in country Y, however, prefer to use the newer, lightweight version for its new user interface. Which statement is the most accurate conclusion from the given information?
The perception of quality can differ across countries.
What is possibly the best indicator of a country's ability to use technology to leap several stages of economic development in a very short time?
The quality of the educational system
The rapid growth of war-torn economies and previously underdeveloped countries, coupled with large-scale economic cooperation and assistance that followed World War II, led to
The rise of new global marketing opportunities.
What is one of the most dynamic trends that is affecting current global business strategies?
The trend toward the acceptance of the free market system among developing countries
What is true of local nationals who are hired to sell a company's products?
They are better able to lead a company through the maze of unfamiliar distribution systems.
Which of the following best describes the perception of geographical features such as mountains in the context of economic growth in Europe?
They are impediments to efficient trade and communication.
Which statement is true of tariffs?
They increase special interests' privileges.
How are global retailers like IKEA, Costco, and Walmart becoming major domestic middlemen for international markets?
They maintain their core marketing approaches while localizing the array of products, promotions, and other peripheral aspects of their operations.
Which statement about advertising laws is correct?
Toy, tobacco, and liquor advertising is restricted in numerous countries.
What is one of the main political causes of instability in international markets?
Trade disputes
________ represent(s) the attempts of countries to overcome economic and social imbalances created in part by the influence of geography.
Trade routes
Relations between governments and MNCs are generally positive if the investment
Transfers capital, technology, and skills.
In order for culture to exist it must be
Transmitted from one generation to the next.
What accurately represents the "three direct links" leading to the establishment of One China?
Transportation, trade, and communications
The key in using expert opinion to help forecast demand is ________; that is, comparing estimates produced by different sources.
Triangulation
What is likely the single most important reason for expatriate dissatisfaction?
Unsuccessful family adjustment
Under common law, the ownership of intellectual property is established by
Use
What is the crucial question facing international marketers today?
What are the most efficient ways to segment markets?
When is an expatriate sales force most likely to have an advantage over a native sales force?
When the product is highly technical in nature
What question should a marketing researcher ask when trying to establish the reliability of secondary data sources in the international arena?
Who collected the data?
With the expansion of the European Union, existing members fear ____ and __________
a flood of cheap labor into their countries; problems with the euro.
Mariette's U.S. based company is having a dispute with a Chinese partner. What method would be especially effective in resolving this dispute?
conciliation
As part of the "green movement," the European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect product development are the control of the packaging component of solid waste and
consumer demand for environmentally friendly products.
For an international marketer, the ________ can be altered in the long run and, usually, in the short run to adjust to changing market conditions, consumer tastes, or corporate objectives
controllable elements
What is the main reason for the failure of individual incentives to motivate employees in Japan?
society's emphasis on paternalism and collectivism
What poses a major challenge to international marketers while dealing with counterfeiting?
the collusion between contract manufacturers and illegitimate sellers