1) A psychographic study showed that Porsche buyers could be divided into several
distinct categories, one consisting of “Top Guns” who buy Porsches and expect to be
noticed.
2) Key suppliers, key customers, and key consumers are all elements of a flagship
company’s partner network.
3) The EU is Mercosur’s number one trading partner although Germany and France are
opposed to such an agreement.
4) Benetton’s striking print and outdoor advantage campaigns keyed to the “United
Colors of Benetton” generated both controversy and wide media attention.
5) In developing countries, globalization’s opponents accuse companies of placing
intellectual property rights ahead of human rights.
6) Categories such as ‘successful idealists” and “affluent materialists” can be used to
describe psychographic segments.
7) Price is a strategic variable, and hence pricing strategy should be developed using a
rational, analytical approach, or an intuitive one.
8) Broadband allows Internet users to access streaming media such as streaming audios
and videos.
9) Apple’s iTunes Music Store was a global transaction site effective day one of its
launch.
10) The Komatsu-Caterpillar saga is just one example of how more than the pursuit of
generic strategies can shape global competitive battles.
11) For behavior segmentation, marketers use the 80/20 rule when assessing the
consumers’ usage rate, which means that 20% of the company’s revenues or profits are
accounted for by 80% of the firm’s products or customers.
12) An ethnocentric management orientation is preferable to a geocentric orientation.
13) Products that fall under the dynamically continuous innovation category require
more R & D expenditures.
14) A recent rash of antitrust actions brought in the United States against foreign
companies has raised concerns that the United States is violating international law as
well as the sovereignty of other nations.
15) Wal-Mart is the largest corporation, based on revenues, according to the Fortune
500 Global ranking for 2011.
16) In selecting an advertising agency, all but one of the following issues should be
taken into consideration.
A) company organization
B) national responsiveness
C) area coverage
D) buyer perception
E) franchise or company owned status
17) 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
18) For years, ads for Volvo automobiles stressed safety features and protection in the
event of a crash. Thus, Volvo automobiles developed a reputation based on which
positioning strategy?
A) use/user
B) attribute/benefit
C) competition
D) high touch
E) quality/price
19) The former chairman of Nestl recently told an interviewer: “We are food and
beverages. We are not running bicycle shops. Even in food we are not in all fields.
There are certain areas we do not touch. Also, we have no soft drinks because I have
said we either buy Coca-Cola or we leave it alone.” What strategic marketing principle
does the chairman’s comment emphasize most specifically?
A) customer value
B) competitive advantage
C) focus on specific food and beverages
D) myopia
E) policy of dealing only with Swiss businesses
20) ________ is the phrase global marketers use to describe ads with common design
elements into which localized elements are inserted for individual country markets.
A) “Pattern advertising”
B) “Template advertising”
C) “Cookie-cutter advertising”
D) “Model advertising”
E) “Stereotype advertising”
21) Cultural influences are also quite apparent in food preparation and consumption
patterns and habits. Domino’s Pizza, the world’s largest pizza-delivery company, pulled
out of Italy because:
A) tomato sauce was too bold and competed with Italian products
B) people did not like to eat at home
C) Italians perceived its products to be “too American”
D) Italians wanted more toppings on thick crust
E) Italians did not like anyone else to use the name pizza
22) “Cost-based,” “market-based,” and “negotiated” are three approaches to:
A) dumping
B) gray marketing
C) transfer pricing
D) price skimming
E) counter trade
23) In the post-September 11 business environment in the United States, imports have
come under increased security. One of the initiatives taken in the interest of national
security is:
A) NAFTA
B) C-TPAT
C) WTO
D) NTB
E) FSC
24) The “double-diamond” approach to national competitive advantage is a conceptual
framework associated with:
A) Michael Porter
B) Gary Hamel and C.K. Prahalad
C) Richard D’Aveni
D) Alan Rugman
E) Antonio Perez
25) 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
26) The original six members of the ASEAN (Association of Southeast Asian Nations)
included all of the following countries except:
A) Singapore
B) Thailand
C) India
D) Philippines
E) Brunei
27) A marketer of breakfast cereals might send researchers to preselected households at
6 A.M. to watch families go about their morning routines. The client could also assign a
researcher to accompany family members to the grocery store to record their behavior
under actual shopping conditions. This type of research method is considered as:
A) focus group
B) invasion of privacy
C) consumer panel study
D) factor analysis
E) observation
28) According to Geert Hofstede, which of the following is a key cultural dimension
that helps account for rapid economic growth in Asia?
A) power distance
B) individualist/collectivist
C) feminine/masculine
D) uncertainty avoidance
E) long-term orientation
29) Because they are in transition, the markets of Central and Eastern Europe present
interesting opportunities and challenges which include:
A) new source of growth
B) first mover advantage
C) exporting as an entry mode
D) lower wage rate
E) all of the above
30) The ________ the level of environmental sensitivity for a given product, the
________ the need for managers to address country-specific economic, regulatory,
technological, social and cultural environmental conditions.
A) greater; greater
B) lower; greater
C) greater; lower
D) lower; lower
E) stronger; greater
31) The process of global market segmentation begins with the choice of one or more
variables to use as a basis for grouping customers. All of the following are variables
that are commonly used except:
A) demographics
B) polycentrics
C) behavioral characteristics
D) benefits sought
E) psychographics
32) That Russia is being transformed by economic change can be witnessed in all of the
following observations except:
A) affluent Russians can shop at boutiques that offer Versace
B) per capita gross national income in Russia is only $9370
C) the banking system in Russia is robust
D) Russian shoppers spend an estimated $4 billion each year on luxury goods
E) the Russian government lifted all currency controls
33) When single brand-retailers such as Benetton, Nike, Pizza Hut, Reebok, and
Subway first entered the Indian retail market, they were required to use:
A) mom-and-pop type stores
B) cramped stores
C) local vendor operated stores
D) franchised stores
E) departmental stores
34) In developing countries, such as Ghana, the best way to communicate with market
segments may be through:
A) mass media
B) written word
C) magazine ads
D) TV ads
E) dance, songs, and storytelling
35) Between the year 2001 and 2006, China bought more than $250 billion in U.S.
Treasury bonds. Such purchases:
A) ensures that China’s currency is relatively weak compared to the U.S. dollar
B) indicate that China is not sure of its economic viability
C) show that the currency exchange rate is unpredictable
D) predict that yuan will be devalued in the near future
E) indicate that China’s currency is stronger than the U.S. dollar
36) Anyone undertaking a market research project should understand that the first step
is:
A) setting the budget
B) determining the methodology to use
C) deciding who will see the final report
D) defining the problem
E) determining the information requirement
37) The United States and ________ are the two top-ranked countries in terms of ad
spending across all measured media in 2010 .
A) UK
B) France
C) Canada
D) Japan
E) Germany
38) In recent quarters, the strongest results have come from PepsiCos fast-growing
international division. Snack sales are particularly strong in Mexico and Russia.
39) The world’s best-known cosmetics companies are setting their sights on a lucrative
new market segment: the emerging middle classes in countries such as Brazil, Russia,
India, and China. However these companies have to understand:
A) that women’s preferences in those countries are almost similar
B) that Chinese consumers are not willing to invest in beauty products
C) what beauty means to Chinese women
D) that working Indian women prefer only local brands
E) cosmetics are preferred mostly by the top end of the market in China
40) Bluetooth mobile communication technology has all of the following advantages
over Wi-Fi except one:
A) Bluetooth is well suited for use with cell phones
B) Bluetooth works over shorter distances than Wi-Fi
C) Bluetooth consumes less power than Wi-Fi
D) Bluetooth can handle data as well as voice
E) Bluetooth technology has been incorporated into automobiles
41) An important new tool for inventory management is:
A) ODW
B) RFID
C) LEGO
D) VUCA
E) EPOS
42) Which of the following is not one of the four arenas in which dynamic strategic
interactions are played out in hypercompetitive industries?
A) cost/quality
B) timing and know-how
C) entry barriers
D) deep pockets
E) buyer and supplier power
43) The term “Expanded Triad” includes all of the following countries or regions
except:
A) Japan
B) United States
C) Canada
D) Mexico
E) Russia
44) The non-EU member which uses the euro as its currency is:
A) Estonia
B) Kosovo
C) Montenegro
D) Vatican City
E) San Marino
45) Ads by BMW advertise it as the “ultimate driving machine” which is described as
positioning based on:
A) high touch
B) use/user
C) attribute/benefit
D) competition
E) quality/price
46) NAFTA creates a free trade area, as opposed to a customs union or a common
market, due to the fact that:
A) the agreement does not leave the door open for discretionary protectionism
B) the governments of all three nations decided to eliminate tariffs
C) the issue of illegal immigration from Mexico to the United States is resolved
D) restrictions are imposed on the use of goods, services, and investments
E) restrictions are imposed on labor movements among members
47) A firm without much export experience uses the rigid cost-based pricing method.
Which of the following considerations is the exporter ignoring?
A) Is the price competitive in view of local market conditions?
B) Does the price reflect the product’s quality?
C) Will authorities in export markets view the price as reasonable or exploitative?
D) Does the price take antidumping laws into consideration?
E) all of the above
48) The president of a Mexican company recently remarked, “Business in Mexico is
done on a consensus basis, very genteel and sometimes slow by U.S. standards.” A few
months later, the Mexican company and its U.S. joint venture partner parted company.
Judging by the president’s remark, one important reason for the “divorce” was:
A) failure of one partner to live up to the terms of the contract
B) cultural differences
C) the cancellation of NAFTA
D) the U.S. government’s insistence on quick negotiations
E) the language barrier
49) Upper-Middle-income countries are also know as:
A) Industrializing countries
B) BRIC countries
C) Stabilized countries
D) Manufacturing countries
E) Agricultural countries
50) 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
51) Upper-middle-income countries that achieve the highest rates of economic growth
are sometimes referred to collectively as:
A) LDCs
B) BEMs
C) BRICs
D) NIEs
E) BOPs
52) When a marketer understands that a product satisfies a buyer’s rational criteria
while also evoking an emotional response, the marketer should:
A) only target consumers in high-income countries
B) utilize a multitiered targeting strategy rather than a concentrated strategy
C) commission psychographic segmentation studies to augment demographic data
D) create advertising that reflects a bipolar, high-tech and high-touch approach
E) follow normal targeting strategy
53) Even though Germany is the largest single-country market in Europe, what percent
of the world market potential for German companies is outside Germany?
A) 40%
B) 55%
C) 74%
D) 94%
E) 85%
54) China’s ongoing trade-related friction with the United States highlights the need for:
A) a better distribution system
B) a better PR effort
C) sales promotion
D) a better transportation system
E) pattern advertising
55) How can Web sites be classified? Show how different companies fall under
different categories.
56) Why do some critics refer to GATT as the “General Agreement to Talk and Talk”
and how does its successor, WTO, provide a better forum for trade agreements?
57) How can price be used as a strategic variable to achieve specific financial goals?
Under what conditions should skimming or penetration pricing be adapted as strategies?
58) Traditionally economists identified four main types of economic systems. However,
due to globalization it is harder to categorize the systems narrowly. What will be more
robust descriptive criteria that can be used for classification?
59) Companies like Anheuser-Busch, Corning Glass, and GM have learned a lot by
using joint venture as a mode of entry into a foreign market. Some of their experiences
are not very positive. What are the disadvantages of joint venturing?
60) What is a matrix organization? Describe giving examples.
61) Some people believe that marketing is relevant only in affluent, industrialized
countries, whereas others believe that the role of marketing is to identify people’s needs
and wants worldwide, irrespective of the economy. Giving examples of companies
involved in energy conservation and technology, support the latter argument.
62) In most of the European Union countries, the influence of regulatory agencies is
pervasive. What steps will be necessary of a corporation to protect business interest and
advance new programs?
63) Why is compensation trading also called a “buyback?” How does it differ from
switch trading?
64) What is hypercompetition? Briefly discuss conditions under which
hypercompetition takes place.