Perceptions or image that target customers have of a product or service is referred to as:
A.sub-marketing.
B.market segmentation.
C.product positioning.
D.the diffusion process.
As a firm globalizes, its most direct competitors tend to be:
A.foreign entrants.
B.domestic competitors.
C.domestic cartels.
D.domestic government-owned firms.
Essentially, culture is:
A.a learned behavior.
B.the result of a complex genetic process.
C.limited to objective realities.
D.limited to subjective realities.
A large American firm has just concluded legal arrangements under which a Chinese
manufacturer will produce some of its electronic products for sale in its domestic and
foreign markets. This arrangement would be BEST described as:
A.contract manufacturing.
B.franchising.
C.turnkey manufacturing.
D.licensing.
Which type of positioning involves similar marketing mix components across
countries?
A.Unilateral
B.Uninformed
C.Uniform
D.Unitary
In its attempts to forecast auto sales, the General Motors Corporation typically follows
Mazda’s rather simple formula. The firm expects industry sales to be 1 million units in
one of its newest foreign markets, and believes that it can expect to secure a 10 percent
market share. GM’s sales forecast would be
A.1,000 units.
B.10,000 units.
C.100 units.
D.100,000 units.
Tariff and nontariff barriers:
A.often result in prolonging inefficiency.
B.are no longer prevalent.
C.exist only in Japanese markets.
D.encourage competition.
The Indian Motorcycle Corporation views the role of its global marketing headquarters
as one of sharing knowledge, disseminating innovations, and facilitating
communication among subsidiaries in its organization rather than simply giving orders
and directions. The firm has adopted the:
A.the absolute advantage theory.
B.network theory.
C.matrix theory.
D.circular export theory.
In local marketing:
A.cultural understanding is critical to understanding and predicting local buyer
behavior.
B.an expatriate manager can easily transfer skills learned in one culture to another.
C.market research can provide all required information.
D.domestic success is the best predictor of foreign success.
E-procurement at many companies in the U.S. and Europe produces immediate results
in which areas of their businesses?
A.Logistics/inventory management
B.Lower prices
C.Smarter managers
D.Happier customers
In the _____ model, service “quality” becomes a matter of whether or not the customer
is satisfied.
A.gap
B.satisfaction
C.quality
D.encounter
The transportation and storage activities necessary to transfer the physical product from
manufacturing plants and warehouses in different countries to the various local market
countries are at the core of:
A.global logistics.
B.global marketing.
C.global integration.
D.global diffusion.
The America-First Corporation is considering several countries for possible entry. In
making its selection, the firm should start by attempting to judge the:
A.strategic importance of the market for the competition.
B.strategic military importance of the nation.
C.strategic intent of competitors operating there.
D.strategic importance of the market for the competition and competitors.
The Dow Chemical Corporation routinely provides advance information concerning
new products, processes, and plant openings to the media in hopes of receiving
favorable news coverage. The firm is hoping to make use of:
A.publicity.
B.point-of-purchase promotions.
C.trade promotions.
D.in-store promotions.
For the Japanese consumer, quality means that the product:
A.possesses all of the latest features.
B.is made by the best-known producer.
C.performs the promised function without fault.
D.is the most expensive in the market.
In which of the following global pricing approaches is the same price charged to all
customers regardless of nationality?
A.Polycentric pricing
B.Geocentric pricing
C.Product line pricing
D.Ethnocentric pricing
In the preliminary screening phase of the attractiveness evaluation process, a firm will
need
A.more in-depth secondary data.
B.primary, exploratory data
C.lifestyle data only.
D.just political stability information
Customer satisfaction tends to be the highest when:
A.advertising “puffery’ greatly increases consumer expectations.
B.the products basic performance is acceptable.
C.consumer expectations are exceeded.
D.consumer expectations are met.
Contract manufacturing involves
A.production taking place in the host country through a wholly owned manufacturing
subsidiary.
B.collaborations between companies, sometimes competitors, to exchange or share
some value activities.
C.construction of whole plants and often training of personnel capable of running the
operations.
D.hiring a firm to produce a prespecified product.
The level in the organization at which responsibility for various brands is lodged is
generally reflected by the:
A.organization chart.
B.brand hierarchy.
C.brand matrix.
D.brand map.
Follower markets are likely to evaluate products that are early in their product life cycle
by applying the:
A.evoked set decision rule.
B.compensatory decision rule.
C.cost/benefit decision rule.
D.hierarchical decision rule.
The Rite-Drug Corporation typically expects foreign wholesalers to take title to the
goods they purchase and provide the widest range of support possible. The firm would
generally prefer to deal with:
A.rack-jobbers.
B.agent wholesaling middlemen.
C.brokers.
D.full-service wholesalers.
Montblanc has successfully used its image of fountain pens to “spread” its brand to
related luxury items, such as jewelry and leather goods. This attempt would be BEST
described as:
A.brand proliferation.
B.brand extension.
C.brand dilution.
D.dual branding.
The main risk associated with joint ventures is typically the result of:
A.capital transfers.
B.personnel transfers.
C.technology transfers.
D.equipment transfers.
The America-First Corporation is heavily involved in global segmentation and
positioning, product/service standardization, uniform pricing, thematic advertising,
uniform brand names, and international logistics. The firm’s marketing manager MUST
play the:
A.global management role.
B.export manager role.
C.international transfer agent role.
D.local marketing abroad role.
The “limit” beyond which a firm’s products will not be considered and customers will
avoid buying is called the:
A.penetration price.
B.reservation price.
C.skimming price.
D.dumping price.
What has facilitated control and coordination of distribution across countries?
A.Global telecommunications
B.Just-in-time inventories
C.Monopsonist wholesalers
D.Giant retailers
The typical result of target research is:
A.higher brand loyalty.
B.reduced innovation.
C.lower advertising coverage.
D.lower prices.
Stability in Latin America will be primarily the result of:
A.an emerging/growing middle class.
B.a strong religious influence.
C.the growth of strong, central governments.
D.the social/racial homogeneity of the region.
The MOST common brand changeover tactic is:
A.fade-in/fade-out.
B.summary axing.
C.brand extension.
D.piggybacking.
_____ defines the firm not in terms of the products or services it markets, or in terms of
the needs it seeks to satisfy, but in terms of what it is capable of.
The Four Seasons Corporation is preparing to enter the Chinese market. The Chinese
government will agree to the firm’s plans only if a Chinese partner is allowed to play a
significant role. Four Seasons, if it continues its entry efforts, will be forced to form a
_____ with a Chinese partner.
Blue Dog Corporation has long sought cost savings in its transportation and storage
activities. In the past, this meant looking for the cheapest mode of transportation and
building large warehouses to compensate for slow delivery. The firm has just moved to
a JIT system. What differences are likely to result?
_____ pricing is concerned with setting prices for products shipped between units of the
same organization across national borders. While these prices should ideally be _____
prices which reflect those in the open market, they may be used to subsidize foreign
subsidiaries.
Saatchi and Saatchi Corporation strongly desires a global advertising presence. How
can the firm evaluate the appropriateness of this approach for its use?
The success of Apple’s product, the iPod, helps to illustrate several concepts that are
important for global marketing. List and explain several of these important concepts.
What is meant by profitability analysis?
Services are characterized by _____, _____, _____, and _____.
The America-First Corporation is preparing to enter international trade. How can the
firm “match” its skills to potential foreign markets? Briefly describe the primary modes
of entry available to the firm. Why would America-First be concerned with choosing
between an externalization or internalization strategy?
Micro-Brewery Corporation has found that the “heavy users” segment exists in 3
different countries in which it sells. How might Micro-Brewery use this information
and what are a couple of drawbacks to standardization and coordination of marketing
effort for beer in these three markets?
“Heavy users” of beer probably exist everywhere, but there are differences in various
country markets that make standardization and coordination of effort difficult, if not
impossible. One is that the proportion of all beer drinkers who are “heavy users” will
vary by country market. In one market it might be 20 percent and in another it might be
only 10 percent. Also, the way to communicate with the drinkers in this segment may
vary across countries. Sporting events might be a venue through which to reach many
of the “heavy drinkers,” but which sports do they watch?
“Good” marketing should have a consumer orientation, but it seems that most global
marketers have a(n) _____ orientation.
Harvard University is preparing to engage in exploratory research. How might the
organization proceed? What problems might be encountered?
Targeted segments MUST be: _____, _____, _____, _____, and _____ to be useful for
marketing purposes.
The LaserJet Corporation, a Canadian firm and leader in laser technology, has just
entered into a cooperative arrangement with several leading Japanese rivals, under
which all firms will share results of their efforts to develop a three-dimensional
holographic television set. The partners are hoping to create a single technology for the
product to speed its acceptance. Each partner expects to aggressively compete for
market share on price, distribution, customer service and other marketing variables.
What strategy is LaserJet using? How does this approach differ from more traditional
strategic alliances? Why would the firm opt to develop this product cooperatively rather
than as a proprietary property?
The America-First Corporation is considering entry into one or more Middle-Eastern
nations. The firm believes its entry into this area could be highly profitable–but very
risky. What types of political risk might the firm face should it decide to operate in this
part of the world?
____________ markets are defined as product markets in which local consumers have
preferences and functional requirements _________ from one another’s and others’
elsewhere.
Whenever possible, Bendix Corporation attempts to avoid making significant foreign
direct investments in manufacturing because the firm is painfully aware of the political
risk associated with this approach. What other disadvantages might the firm face? What
considerations might lead Bendix to employ this mode of entry despite these
drawbacks?
The four environmental dimensions traditionally used in market research are
____________________, ____________________, ____________________, and
____________________.