Archives: Quiz

Advertising elasticity is calculated as the ________. A) absolute change in sales divided by the percent change in advertising expenses B) percent change in sales divided by the percent change in advertising expenses C) absolute change in advertising expenditures divided […]

Calculate the net marketing contribution variance, if the actual net marketing contribution and net marketing contribution estimated in the plan are $450,000 and $900,000, respectively. The actual percentage of market share is 25%. A) $450,000 B) $11,250 C) -$450,000 D) […]

In the context of brand name development, which of the following is true about an invented name? A) It is built from root words and morphemes. B) It aims to evoke a positive attribute or a feeling. C) It is […]

Clarence Inc. conducts a market research, which reveals that it has a product quality of 40% relative importance and the attractiveness rating of this factor is 60 (i.e., attractive). The firm identifies that its service quality is of 30% relative […]

Which of the following is a product adoption force affecting new product penetration? A) felt need B) personal risk C) ease of use D) trialability E) observability Which of the following is a favorable condition for implementing penetration pricing? A) […]

________ communication strategies are directed at channel intermediaries. A) Push B) Pull C) Heavy-up D) Centralized E) Pulsing The economic profit generated by a company is its ________. A) (capital x cost of capital) / net profit B) net profit […]

Which of the following is an example of a company’s external metrics? A) return on sales B) employee turnovers C) manufacturing defects D) late deliveries E) retaining customers ________ serves as the basis for the financial metric known as return […]

The product of market demand, market share, average selling price, and channel discounts is the ________. A) marketing and sales expenses B) net marketing contribution C) net sales D) operating income E) marketing return on investment Which of the following […]

Service quality affects customer retention and profit in the numerator and ________ in the denominator of the return on assets equation. A) total income generated B) return on sales C) customer satisfaction D) accounts receivable E) accounts payable Calculate the […]

Calculate the customer loyalty index if the customer history is average, the purchase amount is below average, the desire to repurchase is high, the product preference is strong, and there is no customer recommendation. A) 0 B) 10 C) 50 […]

Calculate the sales effect in period 15 if the advertising expense for that period is $30 million. A) $45 million B) $450 million C) $2 million D) $30 million E) $540 million Uncovering key performance issues that normally might go […]

Helen has determined that along the share-development path, her business should perform at a 80% level of product awareness, 50% in product preference, 80% in intentions to purchase, 90% in product availability, and 70% in rate of purchase. Helen’s actual […]

The strategic market plan called “optimize position” is an offensive strategy often used in the early stages of the product life cycle. Compared to a direct marketing channel, an indirect marketing channel has lower margins and also, lower costs of […]

Factors that shape a market’s attractiveness are market forces, competitive environment, and market access. Diversification decreases the likelihood that a firm’s overall performance will be consistent. FALSE Page Ref: 395 Heavy-up message frequency involves the use of alternating exposure periods […]

The primary purpose of a detailed situation analysis is to uncover key performance issues that normally might go unnoticed in day-to-day business operations. Mixed channel systems are unsuitable for marketing specialized and technological products. TRUE Page Ref: 320 Service can […]

Common to most assessments of segment attractiveness are measurements of market demand, competitive intensity, and market access. A decline in relative product and service quality means that actual product or service quality has declined. FALSE Page Ref: 41 The objectives […]

A plus-one market-based pricing strategy means a business sets its price 1% higher than the competitors’ price. A “concentrated frequency” strategy would be appropriate for building awareness and comprehension for seasonal products, political candidates, and special events. TRUE Page Ref: […]

Product-markets with low indexes for both market attractiveness and competitive position have the strongest portfolio position and the best opportunities for profit performance. If a business fails to deliver acceptable or expected levels of serviceability and appearance, an advantage in […]

Companies cannot enjoy high levels of customer retention without having high levels of customer satisfaction. When the total contribution produced by a pricing strategy is lower, overall profits will also be lower because fixed costs are deducted from the total […]

Forward-looking marketing metrics are particularly important because they correspond more closely to internal financial-performance metrics. The more similar one market is to another, the less likely the possibility that consumers will substitute products. FALSE Page Ref: 82 In a price-sensitive […]

A market-based business lays more emphasis on assets and technology than understanding their customers. A reduce-focus pricing strategy calls for price increases with the intent of reducing volumes and market share in exchange for higher margins. TRUE Page Ref: 289 […]

The cost of using direct marketing channels is typically higher than that of indirect marketing channels for manufacturers. Indirect channels are able to achieve the lowest out-of-pocket marketing and sales expenses. TRUE Page Ref: 332 Potential strategies used to implement […]

The primary goal of a defensive strategy is to protect profitability and key strategic share positions that are worth the investment. Sales revenues, net profits, return on sales, assets as a percentage of sales, and return on assets are measures […]

Using an ownership team keeps the implementation process on track even when some members of the team are away for extended periods because of business trips, training programs, illness, or vacations. A repeat customer buys a lot from many companies […]

Marketing performance metrics include competitiveness metrics and customer metrics, while financial metrics include service quality, customer value, and product performance. When a price is inelastic, a price increase improves all aspects of performance. TRUE Page Ref: 296 A growth strategy […]

Life-cycle costs of ownership include acquisition cost, ownership cost, usage cost, repair/maintenance cost and disposal cost/value. The customer retention metric acts as a forward-looking metric when it measures the number of customers retained from one year to the next. FALSE […]

Both consumers and businesses have market needs, and the factors influencing their needs are essentially the same. A product-based business can use its order cycle to create important sources of customer value that the business’s consumer-focused competitors will never see. […]

Hall’s high and low context is based upon communication styles and specifically on the role of: A. the speakers. B. nonverbal behavior. C. the medium. D. context. Reliance on subsidiary management can depend on items such as: A. two of […]

The Alien Tort Statute allows foreigners to: A. sue in U.S. courts for residency in the United States. B. file claims in U.S. courts for violations of international law that may have occurred beyond U.S. borders. C. file claims in […]

Acceptable leadership traits across cultures, according to Project GLOBE, include: A. directive, not afraid of criticizing others, and direct. B. planning, able to stick to schedule, and able to stay within budget. C. effective bargainer, dependable, win-win problem solver, and […]

Teams with strong heartbeats may meet less regularly than at their launch and during crisis. In designing an international organization, it is essential that the structures and systems being implemented are consistent not merely with each other but also with […]

Importing and foreign direct investment are two approaches to meeting overseas demand. There is a trend toward treating third-country nationals the same as home-country expatriates in terms of their compensation plans. TRUE As stated directly in the text. Direct exporting […]

Every importer should know how the U.S. Customs calculates import duties and know the importance of the product classification. Foreign direct investment may be an attempt by foreign companies to establish competitive advantage over potential competitors in other markets, due […]

If a Chinese worker earns $1 a day, then goods produced by this worker will cost less than the same goods produced by an American earning $18 an hour. No worldwide court has the power to enforce its decrees. TRUE […]

CFR (cost and freight, foreign port) is similar to CIF except that the buyer purchases the insurance because it can obtain it at lower cost or because its government, to save foreign exchange, insists that it use a local insurance […]

While indirect production-oriented goods have been the focus of management attention for many years, the purchasing of goods and services that are part of finished goods— termed indirect procurement—is also critical. The following is an area in which the UN […]

The influence of organizational culture on change efforts is stronger than the influence of national culture. Foreign environmental forces act as deterrents to the international standardization of advertising, and among the most influential of these forces are the sociocultural forces. […]

A nation’s relative ability to design, produce, distribute, or service products within an international trading context, while earning increasing returns on its resources, is known as national competitiveness. Country and segment are units of analysis for market screening. TRUE As […]

Policies are broad guidelines issued by upper management for the purpose of assisting lower-level managers in handling recurring problems. Expatriate assignments have been reported to lead to faster promotions. TRUE As stated directly in the text. In the year 2008, […]

Formal institutions operate through laws and regulations. They require members to make a written commitment. The national defense argument for trade restrictions is based on the development level of the country. FALSE Actually, the level of development is not important. […]

Country and region are units of analysis for market screening. Trading blocs always bring cost savings to international firms. FALSE Benefits depend on whether the firm is inside or outside the trading bloc. Cost reductions accrue to those inside the […]

The degree to which a country’s legal system is based on the rule of law makes no difference; it is personal relationships that matter in foreign environments. In 2009, the top 10 exporting and importing nations collectively accounted for over […]

One of the reasons that Internet advertising is not appealing in an international setting is that most Internet users are poor and difficult to reach. Opponents of globalization argue that globalization has contributed to an improvement in environmental and health […]

The export marketing plan is essentially the same as the domestic marketing plan. Geographical proximity is rarely a major reason for trade. FALSE To the contrary, geographical proximity often explains trade relationships. The GLED model suggests that there are some […]

Although some business areas are affected by culture, accounting and finance are objective and thus universal. The term international business is used to describe an organization with multicountry affiliates, each of which formulates its own business strategy based on perceived […]

Allied and Axis governments met in Bretton Woods in the final days of World War II. The random walk hypothesis suggests that the best predictor of tomorrow’s currency prices are today’s prices. TRUE This is related to the efficient market […]

The international environment is composed of all the uncontrollable forces that surround and influence the firm’s life and development. In a DAP (delivered at named place), the seller assumes risk when the goods leave the seller’s factory or warehouse. FALSE […]

Because inventory is carried at each stage in the supply chain, and because inventory ties up money, it has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory. Estimation by analogy is an […]

Companies decide to export to increase their sales and profits or to protect them from being eroded. Trompenaars’ dimension of individualism vs. communitarianism differs greatly from Hofstede’s individualism-collectivism dimension. FALSE These dimensions are quite similar, and this similarity is pointed […]

Hiring personnel who are third-country nationals can be advantageous, especially in developing countries, because they may accept lower wages and benefits than will employees from the home country and they may come from a culture similar to that of the […]