Which of the following is not characteristic of direct marketing?
A) A marketer relinquishes control of product when it is turned over to channel
intermediaries.
B) Advertising serves to generate an immediate inquiry or purchase.
C) Repetition is used in individual advertisements.
D) The customer perceives high risk.
E) Direct response advertising is used.
Which of the following is not an element of Rugman and D’Cruz’s flagship model?
A) key suppliers
B) key customers
C) key consumers
D) selected competitors
E) focused differentiation
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.
Which of the following is not true of Japanese keiretsu?
A) promotes risk sharing
B) promotes long-term employment
C) ensures low prices for Japanese consumers
D) blocks foreign suppliers from the Japanese market
E) relationships are cemented by bank ownership
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.
Ads that tickle the funny bone of the intended audience and evoke response that will
direct purchase behavior are based on:
A) rational appeals.
B) emotional appeals.
C) SRC appeals.
D) melodramatic appeals.
E) localized appeal.
Which of the following is true about advertising expenditures in Germany and Brazil?
A) Television is the leading medium in both Germany and Brazil.
B) Newspapers are the leading medium in both Germany and Brazil.
C) Television is the leading medium in Brazil; newspapers are the leading medium in
Germany.
D) Television is the leading medium in Germany; newspapers are the leading medium
in Brazil.
E) Magazines are the leading medium in Brazil and Germany.
The governmental action to dispossess a foreign company or investor is known as:
A) compensation.
B) confiscation.
C) expropriation.
D) internationalization.
E) nationalization.
A key factor that distinguishes transnational companies from international companies is
their ________ for the marketing program.
A) use of localized elements
B) use of extension elements
C) needs assessment
D) domestic research
E) mind-set
Building layers of advantage, searching for loose bricks, changing the rules of
competitive engagement, and collaborating are elements of the competitive advantage
framework developed by:
A) W.E. Deming.
B) Hamel and Prahalad.
C) Porter.
D) Drucker.
E) D’Aveni.
All of the following statements are true regarding services provided by Uber except:
A) in Brussels, a court fines drivers who use the service
B) in London and other major cities, drivers have staged demonstrations claiming unfair
competition.
C) regulators in Germany succeeded in obtaining a temporary injunction banning the
service.
D) Uber was banned in the Delhi region after a driver was accused of sexually
assaulting a female passenger.
E) Uber is considered as an “information-society service” in 250 cities where it
operates.
Which of the following is true about the Triad?
A) Triad countries account for approximately one-third of world income and one-third
of world population.
B) Triad countries account for approximately 75% of world income as measured by
GNP.
C) Triad countries are those in which consumer products, industrial products, and the
services sector each contribute one-third to GDP.
D) Triad countries account for approximately 25% of world income as measured by
GNP.
E) Triad countries account for approximately 50% of world income as measured by the
World Bank.
Which global marketing expert recommends an organization design based on a “global
superstructure” that views the world in terms of 30 regions?
A) Paul Krugman
B) Kenichi Ohmae
C) Tom Peters
D) Michael Porter
E) Kazuo Inamori
The McDonald’s print ads conveyed sexual innuendo. One execution featured a “beauty
shot” of a Quarter Pounder with an extreme close-up of a woman’s mouth in the
background. This was created to use localized advertisement for all of the following
reasons except:
A) beef is considered a luxury, upscale item in China.
B) beef is perceived to boost energy.
C) beef is perceived heighten sex appeal.
D) in Chinese, the word beef connotes manliness, strength, and skill.
E) magazines are the leading medium in China.
Any company doing business outside the home country should first carefully study the
________ in the target country.
A) political culture
B) nationalization
C) political risk
D) jurisdiction
E) sovereignty
Honda has invested $550 million in building an assembly plant in Greensburg, Indiana;
IKEA spent nearly $2 billion to open stores in Russia; and South Korea’s LG
Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of:
A) acquisition.
B) licensing.
C) franchising.
D) FDI.
E) exporting.
In 2014, the EU filed a complaint that the government of Washington state violated
international trade rules by:
A) charging that cotton subsidies depressed prices and disadvantaged producers in
emerging markets.
B) prohibiting Internet gambling, the United States was violating global trade
agreements.
C) imposing 30 percent tariffs on a range of steel imports for a period of three years.
D) imposing tariffs on a range of products imported from Brazil.
E) extending tax incentives to Boeing for in-state manufacture of the 777x jetliner.
When Walt Disney Company’s executives were planning to build a theme park in
France, they firmly believed that the success of McDonald’s and Coke as well as their
own success in Tokyo ensured the runaway success of their plans. Disney policies
prohibit sale or consumption of alcohol inside their theme parks which they also
implemented in France. This proved to be a failure since consuming wine with the
midday meal is a long-established custom in France. This is most likely a classical
example of:
A) the “think global, act local” principle.
B) being victim to the self-reference criterion.
C) a geocentric management orientation.
D) miscalculation of the rate of diffusion of innovations in Europe.
E) an unbiased perception of existing culture in Europe.
________ are licensed specialists in traffic operations, customs clearance, and shipping
tariffs and schedules. They can be considered as the travel agents for handling export
goods.
A) Foreign purchasing agents
B) Export brokers
C) Export merchants
D) Freight forwarders
E) Cooperative exporters
Which of the following does not fit in with the factors that should be considered by
companies forming GSPs?
A) Partners are competitors to each other.
B) Harmony is the most important measure of success.
C) All employees and managers must understand where cooperation ends and
competitive compromise begins.
D) Learning from partners is critically important.
E) none of the above
In their book, Daniel Yergin and Joseph Stanislaw wrote “Governments are getting out
of businesses by disposing of what amounts to trillions of dollars of assets. Everything
is going”from steel plants and phone companies . . . to hotels, restaurants, and
nightclubs.” This is an indication of:
A) the fact that governments can make more money by selling assets.
B) privatization is becoming a driving force for global marketing.
C) these businesses are considered as closed markets.
D) foreign companies are competing with governments.
E) there is less demand for these type of companies.
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
Bhutan has relied on a measure besides economic growth, namely, gross national
happiness (GNH). The GNH Index includes all of the following indicators except:
A) psychological well-being.
B) community vitality.
C) economic vitality.
D) environmental diversity.
E) living standards.
The Middle East and North Africa are sometimes viewed as a regional entity referred to
as:
A) GCC.
B) AMU.
C) MENA.
D) ACC.
E) ECOWAS.
In selecting an advertising agency, all of the following issues should be taken into
consideration except:
A) company organization.
B) national responsiveness.
C) area coverage.
D) buyer perception.
E) franchise or company owned status.
During the past two decades, the world economic environment has become increasingly
dynamic. To achieve success, executives and marketers must take into account all of the
following realities except:
A) capital movements have replaced trade as the driving force of the world economy.
B) production has become “uncoupled” from employment.
C) the world economy dominates the scene.
D) the struggle between capitalism and socialism continues.
E) the growth of e-commerce diminishes the importance of national barriers.
A company with headquarters in Europe and operational units in Canada, the United
States, and Mexico would be well advised to consider establishing a(n):
A) matrix structure.
B) international division structure.
C) geographic structure.
D) worldwide product division structure.
E) regional management center.
Which automaker currently has a joint venture with Hindustan Motors (India)?
A) Volkswagen
B) Ford
C) GM
D) Renault
E) Mazda
For years, Mercedes-Benz utilized a ________ pricing strategy; however, this created
an opportunity for Toyota to introduce its luxury Lexus line and undercut Mercedes.
A) gray market
B) skimming
C) penetration
D) market holding
E) cost-based
Product placement has reached the world of live theater and opera. The difference
between product placement and other forms of promotion is:
A) ethical concerns are not taken into account.
B) viewers are being marketed to subliminally without their consent.
C) products are focused showing different angles.
D) prominent personalities add a message about the product.
E) sponsors are recognized for their contribution.
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) dumping charges.
C) market skimming.
D) price escalation.
E) market penetration.
In the six-step presentation plan, the first and last steps are respectively:
A) presentation; demonstration.
B) approach; close.
C) presentation; negotiation.
D) approach; presentation.
E) approach; servicing the sale.
Blackberry (formerly known as Research in Motion), the smartphone marketer, is based
in:
A) Mexico.
B) Canada.
C) Brazil.
D) Argentina.
E) The Netherlands.
There is nothing inherently “good” or “bad” about any color of the spectrum and all
associations and perceptions regarding color arise from culture. Which of the following
statements is not true?
A) Red is a popular color in most parts of the world.
B) Red color is associated with “active,” “vibrant,” and “emotional.”
C) Red color is preferred in many countries since it is the color of blood.
D) Red color is highly preferred in some African countries.
E) Red color is tied to the traditions of viticulture and winemaking.
________ is gaining a reputation as a manufacturing center as well as the world’s
number one producer of flat-screen TV sets.
A) Mexico
B) Canada
C) Brazil
D) Panama
E) Argentina