Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in
expanding into international marketing?
a. There are no risks involved with allowing a foreign franchisee.
b. The franchiser does not have to put up a large capital investment.
c. The franchiser does not have to share its name or operational procedures.
d. The franchisee pays a set fee every month to the franchiser.
e. An equal partnership is formed between the franchiser and franchisee.
Product-related ethical issues arise when marketers:
a. provide consumers with inadequate information about how a product is priced.
b. force channel intermediaries to behave in a specific manner.
c. bribe salespeople to push one product over another.
d. fail to disclose information to consumers about the risks associated with using a
product.
e. manufacture a product that is very similar to a competing product.
If Roberts Electronics finds that the average total cost of its radar detectors and the
marginal cost of its radar detectors are both $85, then its:
a. marginal costs are falling.
b. average total cost is at its maximum.
c. average total costs are rising.
d. demand is elastic.
e. average total cost is at its lowest point.
Concerns about cannibalization of current product sales must be addressed in
the_____________phase of the new-product development process.
a. screening
b. concept testing
c. business analysis
d. product development
e. test marketing
Tony & Guy is a global hairdressing and education business headquartered in England.
It has recently opened salons in Mongolia, adding to its numerous salons worldwide.
Tony & Guy allows foreign businesspeople to use its name, logo, methods of operation,
advertising, and products. In exchange, Tony & Guy receives a financial commitment
and an agreement to conduct business in accordance with its standard of operations.
Tony & Guy is engaging in .
a. contract manufacturing
b. licensing
c. franchising
d. exporting
e. direct investment
One limitation of the sales force survey technique is that salespeople often believe that
their sales goals are determined by their sales estimates.
a. True
b. False
Peter, the director of marketing at Holcomb Inc., calls in Andrea, the firm’s marketing
research director. Peter wants a study done to assess the company’s image relative to a
new competitor, Levitt Labs. He has a flexible time schedule, has very little money to
devote to the research, and feels that a relatively low response rate will not be a major
problem. Andrea will probably recommend using a survey.
a. mail
b. telephone
c. random
d. personal interview
e. population
A subsidiary in a foreign country generally operates under:
a. the laws of the parent company’s home country.
b. a foreign management in order to develop a local identity.
c. strict management control from the home country’s executives.
d. the regulations set forth by the International Trade Agreement.
e. a team of managers from the distant parent company.
Which of the following statements about the consumer buying decision process is true?
a. Consumers progress through the five stages of this process for all limited
problem-solving decisions.
b. Although all of the steps in the process are used in all decision processes, the order
tends to depend on the customer’s level of involvement.
c. The key element of the process that exists in all consumer buying decision processes
is the purchase of the product.
d. Once the purchase of a product has been made, the consumer buying decision
process is complete.
e. The buying decision process can be affected by situational, social, and psychological
influences.
Which of the following is not an advantage of franchising for a franchisee?
a. A franchisee can capitalize on the business experience of others.
b. When problems arise, a franchisee can obtain guidance and advice from a franchiser.
c. Franchised outlets are usually more successful than independently owned businesses
with respect to long- term survival.
d. A franchisee can participate in national promotional campaigns sponsored by a
franchiser.
e. A franchisee gains fast and selective product distribution without incurring the high
cost of constructing and operating its own outlets.
If Subway made an agreement allowing another company to use its brand name on a
new supermarket ready-to- eat sandwich, this would be known as .
a. co-branding
b. brand extension
c. brand licensing
d. trademark licensing
e. cooperative branding