Marketing Exam 3

There is little to no difference between wholesalers' customers and retailers' customers: A. true B. false

B. false

Which of the following is often used to raise revenue for a country and/or to protect domestic products? A. Quota B. Warning label C. Embargo D. Import tariff E. Exchange control

D. import tariff

An example of a business market would be farmers: A. True B. False

A. True

In some cases, the types of services offered by a supplier may constitute a competitive advantage over suppliers of similar products: A. True B. False

A. True

Industrial demand derives from consumer demand: A. True B. False

A. True

The role of an export agent is to: A. bring buyers and sellers from different countries together and collect a commission for arranging sales B. purchase products from different companies and sell them to foreign countries C. help a firm to make direct investments in foreign countries D. contact domestic firms about the opportunities available in exporting E. arrange for licensing agreements between domestic and foreign firms.

A. bring buyers and sellers from different countries together and collect a commission for arranging sales

When Starbucks decided to expand into the international markets of India, Japan, and Argentina, management realized that there would be significant differences in the standards of living, credit, buying power, and income distribution in those countries. Starbucks is currently examining the ____ forces in its environmental analysis. A. economic B. cultural C. ethical D. technological E. legal

A. economic

A multinational enterprise is a firm that has operations or subsidiaries located in many countries A. true B. false

A. true

Business customers generally seeks to obtain detailed information about a product before purchasing it: A. true B. false

A. true

The four categories of consumer markets are producer, reseller, government, and institutional: A. True B. False

B. False

When the city of Portland buys iPads for its restaurant inspectors to use during their visits, the purchase from Apple would be considered: A. a producer purchase B. a government purchase C. a reseller purchase D. a regulatory sale E. an institutional sale

B. a government purchase

When business customers purchase products to be used directly or indirectly in the production of consumers goods and services, that demand for business products is: A. economically stable B. derived C. joint D. inelastic E. more fluctuating

B. derived

A fall in consumer demand for a product is likely to result in increased buying from suppliers as consumer goods producers replenish depleted inventories and gear up for the next surge in consumer demand: A. true B. false

B. false

Product specifications are best described as: A. numbers of quality inspections required B. necessary characteristics and level of quality C. defective product return policies D. comparisons to similar products E. descriptions of a product

B. necessary characteristics and level of quality

Kia Motors purchases upholstery for the interior of its vehicles from various suppliers. This upholstery must have a set of necessary characteristics, standards of quality, and other information that is expressed by Kia Motors. This set is called: A. descriptions B. specifications C. criterion D. purchase requests E. product features

B. specifications

What is the primary distinction between a joint venture and a strategic alliance in international marketing? A. Strategic alliances are only formed between companies from well-developed countries whereas joint ventures are between companies from economically-diverse countries B. A joint venture involves only two companies whereas a strategic alliance is formed between three or more companies C. A joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work together D. A joint venture is formed between companies with dissimilar product offerings while a strategic alliance is formed between companies with similar product offerings E. A joint venture is simply a financial investment in a foreign firm while a strategic alliance involves more than just financial support

C. A joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work together

What are the two ways governments make purchases?: A. Contacting previous suppliers and bids B. Request for new purchases and recurring orders C. Bids and negotiated contracts D. Cash or credit E. Lottery system and contract negotiations

C. Bids and negotiated contracts

Which method of business buying is most likely to be used when the products being purchased are standardized based on certain characteristics: A. inspection B. negotiation C. description D. homogeneous selection E. sampling

C. description

In relation to international marketing, which of the following best describes direct ownership? A. A company owns its own manufacturing facilities B. A company forms an alliance with a similar company in a foreign country C. Foreign companies contract with manufacturers in other countries D. A company owns subsidiaries or facilities in foreign countries E. Two companies from different nations have interests in each other's facilities.

D. A company owns subsidiaries or facilities in foreign countries

Which of the following alliances/agreements is the United States NOT a part of? A. NAFTA B. APEC C. GATT D. WTO E. MERCOSUR

E. MERCOSUR

Institutional markets are: A. state or local government units B. federal and state government units C. intermediaries who resell goods to make a profit D. consumers who buy products for their own use E. organizations that seek nonbusiness goals

E. organizations that seek nonbusiness goals

Importing is the sale of products to foreign markets. A. true B. false

B. false

A friend of yours starts his own business. He would like to expand his client base to include government, but he believes his small business would be ignored. Based on your knowledge from the text, you tell him: A. the government buys products from all sizes of business, but there is some red tape B. the government rarely considers new suppliers when making purchasing decisions C. although the government will deal with small businesses, he will never make a profit off of a government contract D. that any government, federal, state, or local would laugh at the size of his business E. that he's absolutely right, the government doesn't deal with small businesses

A. the government buys products from all sizes of business, but there is some red tape

Buyers in producer markets purchase either raw materials, semifinished products, or finished products: A. true B. false

A. true

During the early stages of international development, most firms make few, if any, adjustments to their organizational structure to accommodate international sales. A. true B. false

A. true

International marketing is defined as marketing activities performed across national boundaries A. true B. false

A. true

The increase in government purchases has resulted partly from the increase in the number of services provided by the government: A. true B. false

A. true

Today many firms are more interested in building marketing strategies around similarities that exist among countries than customizing around their differences. A. true B. false

A. true

A quota is the suspension, by a government, of trade in a particular product. A. true B. false

B. false

All companies, no matter what their size or market position, maintain only one buying center. A. true B. false

B. false

From a cultural perspective, countries that are members of the European Union tend to act as a single entity A. true B. false

B. false

Opportunities for international marketers are limited to industrial nations with the highest incomes A. true B. false

B. false

The fourth stage in the business buying decision process is that of searching for products and suppliers: A. true B. false

B. false

To obtain the names of specific potential customers, the business marketer is well advised to employ the services of a commercial data company, since this is both cheaper and faster than any other method: A. true B. false

B. false

One of the guaranteed constants in the global business environment is: A. nationalism B. instability C. tariffs D. taxes E. war

B. instability

The purchase of products from a foreign source is called: A. exporting B. dumping C. importing D. licensing E. venturing

C. importing

When a firm's products sell in foreign countries with little or no effort to obtain foreign sales, the firm is engaging in: A. international marketing B. global marketing C. limited exporting D. product licensing E. unplanned exporting

C. limited exporting

Wegmans recently placed an order with the Applegate Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Wegmans is ordering 100 cases of hotdogs. Wegmans orders this products on a regular basis What type of purchase does this week's purchase represent?: A. new-task B. straight rebuy C. modified rebuy D. repetitive E. reciprocal

C. modified rebuy

The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product will be sold is known as: A. licensing B. contract manufacturing C. outsourcing D. offshore outsourcing E. offshoring

D. offshore outsourcing

The term dumping refers to the sale of: A. products sold in foreign markets that cannot be sold in the United States B. products sold in foreign markets at prices above those charged in the United States C. all discontinued U.S. products in foreign countries D. products sold in foreign countries at unfairly low prices E. products sold in foreign markets that cannot pass safety standards in the United States

D. products sold in foreign countries at unfairly low prices

All of the following are important concerns of business customers except: A. obtaining products that exceed specifications to ensure the best possible product performance B. supporting customers with services they expect C. achieving a specific level of quality in the products offered to target markets D. obtaining a level of quality that meets specifications E. obtaining products for which the quality level is consistent

A. obtaining products that exceed specifications to ensure the best possible product performance

The NAICS classification is based on: A. marketing activities B. customer size C. production activities D. number of employees E. country of origin

C. production activities

Retailers like Staples and PetSmart are considered to be members of which business market?: A. government B. customer C. reseller D. institutional E. producer

C. reseller

What is the primary difference between business and consumer buyers?: A. consumer buyers require more product information than business buyers B. repeat sales are more common with consumer buyers than business buyers C. consumers primarily buy inexpensive items; businesses only buy expensive items D. business buyers generally place larger orders than consumer buyers E. business purchases are made by one individual whereas families make consumer purchases together

D. business buyers generally place larger orders than consumer buyers

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called: A. a joint venture B. exporting C. a strategic alliance D. licensing E. contract manufacturing

D. licensing

Both Adidas and Brooks standardize many of their shoe models and colors worldwide, which is an example of: A. globalization B. customization C. nationalization D. culturalization E. internationalization

A. globalization

Most business purchases can be classified as belonging to one of three types: A. modified rebuy, new-task, or straight rebuy B. delinquent, new-task, or reciprocal C. delinquent, repetitive, or delivered D. repetitive, new-task, or modified rebuy E. rebuy, reciprocal, or delayed

A. modified rebuy, new-task, or straight rebuy

Franchising offers all the following benefits for franchisors except: A. franchise agreements require a certain standard of behavior from franchisees, which helps protect the franchise name. B. franchisors can retain control of their name while increasing global penetration of their products. C. the franchisee's revenue stream is fairly consistent because franchisors pay fixed fees and royalties. D. the franchisor's revenue stream is fairly consistent because franchisees pay fixed fees and royalties. E. franchisors do not have to put up a large capital investment.

C. the franchisee's revenue stream is fairly consistent because franchisors pay fixed fees and royalties.