Marketing Quiz data

Tapping into Global Markets

GENERAL CONCEPT QUESTIONS

Multiple Choice

1. Red Bull has gained ________ of the worldwide
energy drink market by skillfully connecting with global youth.
a. 70 percent
b. 80 percent
c. 60 percent
d. 50 percent
e. 90 percent

2. Red
Bull built buzz about the product through its ________.
a. “buzz marketing program”
b. “in program”
c. “marketing program”
d. “seeding program”
e. “advertising campaign”

3. A
global industry is defined as ________.
a. an industry in which the strategic positions of competitors are fundamentally affected by their
overall global positions
b. an industry that operates in more
than one country and captures R&D, marketing, and other financial
advantages in its costs and reputation.
c. an industry that operates in more
than one country and has a strategic position in many countries
d. a firm that operates in more
than one country and has a sales and marketing staff in those countries
e. an industry that has strategic positions in many countries but is
not affected by competition

4. A global firm is one that ________.
a. where the strategic positions of competitors
are fundamentally affected by their overall global positions
b. operates in more than
one country and captures R&D, marketing, and other financial advantages in
its costs and reputation
c. operates in more
than one country and has a sales and marketing staff in those countries
d. operates in more than
one country and has a sales and marketing staff in those countries developing
e. has
strategic positions in many countries but is not affected by competition researching

5. International
trade in 2003 accounted for over ________ of U.S. GDP up from 11 percent in
1970.
a. one-third
b. one-eighth
c. one-half
d.one-quarter
e. 18 percent

6.
Global firms plan, operate, and ________ their activities on a worldwide basis.
a. produce
b. coordinate
c. distribute
d. price
e. service

7. The
major decisions in international marketing include which of the following steps?
a. Deciding
whether to go abroad.
b. Deciding
which markets to enter.
c. Deciding how
to enter the market.
d. Deciding on the
marketing program.
e. All of the
above.

8. The internationalization process has four
stages. These stages are ________.
a. no regular export activities
b. export via
independent representatives (agents)
c. establishment
of one or more sales subsidiaries
d. establishment
of production facilities abroad
e. all are part
of the internationalization process

9. Most firms work with an ________ and enter a nearby or similar
country.
a. independent
agent
b. contractual
export department
c. import/export department
d. franchisee
e. management
contract

10. A “waterfall” approach to
international marketing is defined as
________.
a. countries
that are gradually entered sequentially
b. countries in
which the demand for the product is greatest is entered first
c. countries in
which the demand for the product is greatest is entered last
d. countries
in which the supply of raw material is greatest is entered first
e. countries
are entered based upon ease of entry

11.A “sprinkler” approach to international
marketing is defined as ________.
a. countries that are entered when timing is right
b. countries that are gradually entered sequentially
c. countries in which the supply of raw material is greatest is
entered first
d. countries in which the demand for the product is greatest is
entered first
e. many countries are entered simultaneously within a limited period
of time

12.The
developed nations and the prosperous parts of developing nations account for
less than ________ of the world’s
population.
a. 10 percent
b. 15 percent
c. 20 percent
d. 25 percent
e. 30 percent

13. Marketers must change their
conventional marketing to sell their products to developing countries. One of
the changes that marketers can make is to ________.
a. reduce the price of the product but increase the packaging
size
b. reduce the size but keep the pricing the same
c. reduce the price of the product
reduce
the size and price of the packagingincrease
the price and the packaging size because these countries have never seen
the product before

14. Factors that influence the
“attractiveness” of a country to enter include which of the following?
a. product, geography, income and population, political climate, and
other factors
b. product, geography, income, climate, and source of income
c. population, incomes, competition,
and political climate
d. incomes, profit potentials, competition,
and climate
e. incomes, families, competition,
and cultural differences

15.Regional
economic integration is defined as ________.
a. agreements between individual firms for the sake of commerce
b. trading agreements between individual countries
c. trading agreements between individual firms
d. trading agreements between countries and firms
e. trading agreements between blocs of countries

16. The
European Union founded in 1957 added ________ in May 2004 bringing its total
membership to 25 countries.
a. 10 countries
b. 5 countries
c. 20 countries
d. 6 countries
e. 4 countries

17.NAFTA
established a free trade zone between what three countries?
a. Canada, Mexico, and South America
b. Canada, Mexico, and Peru
c. Mexico,
South America, and the United
States
d. Canada,
Mexico, and the United States
e. Canada,
Mexico, and Japan

18.MERCOSUL is a
free trade zone linking which of the following
South American countries?
a. Mexico, Japan, Brazil, and Paraguay
b. Mexico, Brazil, and Paraguay
c. Brazil, Argentina, and Paraguay
d. Canada, Brazil,
and Paraguay
e. Brazil, Argentina,
Paraguay, and Uruguay

19. The
five modes of entry into foreign
markets generally flow by increasing commitment, risk, control, and profit
potential as follows ________.
a. indirect
exporting, direct exporting, licensing, joint ventures, and direct investment
b. direct investment, joint ventures, licensing,
direct exporting, and indirect exporting.
c. direct
investment, joint ventures, and licensing
d. direct
investment, joint ventures, licensing, and indirect exporting
e. none of the
above

20.
In choosing which countries to invest in, companies
sometimes choose psychic proximity
to their own country. Psychic proximity can best be defined as ________.
a. countries close to the “host” country in
which the company feels comfortable
with the language, laws, and culture
b. countries
that “mimic” the host country in terms of language and culture
c. countries
that the host country’s management team have visited
d. countries close to the “host” country in
which the company feels that they
can infiltrate quickly and profitable
e. countries close to the “host” country in
which the company can easily
transport their products

21.The
normal way to get involved in an international market is through
exporting. Occasional exporting is
defined as ________.
a. when the company
carries on exporting activities on the behalf of others
b. when the company makes a commitment to expand into particular
markets
c. when the company works
through independent agents
d. when the company hires domestic-based agents to negotiate
foreign purchases
e. a passive level of involvement in which the
company exports its products from
time to time

22. Active exporting takes place when the company ________ to expand into a particular market.
a. forms a “skunk” group
b. forms an export department
c. hires an agent
d. makes an effort
e. makes a commitment

23. Domestic-based export merchants
________.
a. buy the manufacturer’s products and then sell
them abroad
b. buy the manufacturer’s products then sell them in the host country

c. buy the manufacturer’s products then fine agents and customers in
foreign countries
d. seek and negotiate foreign purchases
e. carry on exporting activities on behalf of several producers

24. Domestic based export agents
perform a valuable service for the companies
seeking to enter foreign markets. The primary function of these agents is to
________.
a. carry on
exporting activities on behalf of several producers
b. buy the
manufacturer’s products and then sell them abroad
c. buy the
manufacturer’s products then sell them in the host country
d. seek and negotiate foreign purchases and are paid a
commission on those sales
e. export products to foreign countries

25.Company’s prefer to enter a country that ranks high on market attractiveness, low in market risks and ________.
a. in which it
would possesses a competitive
advantage
b. turn a quick
profit
c. able to
dominate its foreign competitors
through superior product design and performance
d.gain a
dominate market share within one year of exporting
e. increase its
foreign market share by 50 percent in one year

26. Indirect export has
two advantages for the firm. First in
involves less investment for the firm and secondly it ________.
a. involves
less paperwork
b. involves less intrusion by the government

c. involves less risk
d. involves less people to manage the process
e. involves less products and product lines

27.A company
can carry on direct exporting in several ways. These include domestic- based
export department or division, overseas sales branch or subsidiary, traveling
export sales representatives, and ________.
a. foreign-based distributors or agents
b. marketing departments based in the foreign country
c. export merchants in foreign countries
d. export management companies
e. none of the above

28.According to the text, Shaper Image receives more than ________ of its online business form
overseas customers.
a. 15 percent
b. 30 percent
c. 25 percent
d.40 percent
e. 10 percent

29. “Going abroad” using
the Internet has its challenges. One of the challenges that a global marketer
may run up against when using the Web are ________.
a. cultural restrictions
b. language barriers
c. pricing procedures
d. monetary exchanges
e. logistical limitations

30.Licensing is a simple
way to become involved in international marketing. In licensing, the licensor
issues a license to a foreign company
to use a process, trademark, patent, or trade secret for a(n) ________.
a. limited
period of time
b. fee or
royalty
c. exchange of
information or propriety information
d. exchange for
access to the market place
e. exchange for
“their” process, trademark, patent, or secret

31.Companies such as Marriott and Hyatt sell a variation
of the licensing agreement called ________ to the owners of foreign hotels to
manage these businesses for them in foreign countries.
a. contract
manufacturing
b. management
contracts
c. franchising
d. hotel
management licensing
e. none of the
above

32. In ________, the firm hires local
manufacturers to produce the product. This gives the company
less control over the manufacturing process and loss of profits of the
manufacturing efficiencies.
a. contract manufacturing
b. management contracts
c. licensing
d. franchising
e. none of the above

33.A company
can enter a foreign market through ________, which is a complete form of licensing in which the company offers a complete
brand concept and operating system designed to ensure that the ________
operates according to the requirements of the licensor.
a. contract manufactures/licensor
b. contract management/firm
c. management contracts/firm
d. joint venture/firm
e. franchising/franchisor

34.The
definition of a joint venture company
is one ________.
a. in which foreign inventors join with local investors where they
share ownerships and control
b. in which two people or more
own the firm jointly
c. where foreign investors join with others to own the firm
d. where ownership by local and distant investors in share ownership
of a franchise
e. where ownership is by investors of foreign firms

35.A
joint venture may be necessary or desirable for economic or political
reasons. Additionally, a foreign firm
might lack the ________, or managerial resources to undertake the venture
alone.
a. resource, competency
b. financial, physical
c. financial, willingness
d. political, financial
e. political, competency

36.In
an adapted marketing mix, the producers’ ________ the marketing program to each
target market.
a. reduce the importance of each element of the marketing program
to adjust for cost differential between countries
b. decide on which element of the marketing mix to
change/country/target market prior to entering the country
c. adapt the
communications message to the host country
d. change only
one element of the marketing mix/country
e. adjust

37. International companies must decide on how much to adapt their
marketing strategy to local conditions. At one extreme are companies that use a globally standardized marketing
mix worldwide. A standardized
marketing mix includes ________.
a. a concentric strategy which includes the product, integrated
marketing communications mix, and
distribution strategy
b. standardization of the product, communication, and distribution
channels promising lowest costs.
c. changes only to the product keeping distribution channels and
marketing communications consistent across countries
d. changing only the distribution channels to accommodate the host country
e. changes only to the product and communication message

38. The ultimate form of
foreign involvement is direct ownership of foreign-based assembly or
manufacturing facilities. One of the advantages of direct ownership can include
economies of scale, creating jobs in the host country, developing deeper
relations with local suppliers etcetera and the firm ________.
a. retains full control over its investment
b. reviews global outreach projections
c. redefines the business concept
d. reviews the successes from e-commerce
e. receives no disadvantages to direct investment

39. Hofstede identifies
four cultural dimensions that can differentiate countries. These are
individualism versus collectivism, high versus low power distances, masculine
versus feminine, and ________.
a. customer
relationship management versus power distances
b. strategic
management versus marketing management
c. weak versus
strong uncertainty avoidance
d. total
quality management versus JIT deliveries
e. marketing
management versus customer relationships

40.Straight extension of the product means ________.

a. introducing the product to the foreign market without any changes
to the product.
b. introducing the product to the foreign market without major
changes to the product
c. introducing the product to the foreign market with major changes
to the product
d. introducing the product to the foreign market with no major
marketing program
e. not introducing the product to the foreign market until changes
have been made

41.An
advantage of global marketing is that it can lower marketing costs, has
economies of scale in production and distribution, can produce consistency in
brand image, has the ability to leverage good ideas quickly and efficiently,
and ________.
a. is easier to
adapt to foreign countries
b. allows for
the same message to be used worldwide
c. allows for
individual countries to add their specific needs to the message
d. is easier
for corporations to evaluate the marketing message
e. allows for
uniformity of marketing practices

42. Product adaptation
involves ________.
a. altering the product
to meet local conditions or preferences
b. altering the product to meet minimum acceptable standards
c. changing the product periodically
d. upgrading the product on a periodic basis
e. changing the product to meet competition

43. A firm can successful introduce four
versions of its products into a foreign country or a firm may select one of
these for inclusion. These versions include ________.
a. customer
version, regional version, and city version
b. customer
version, country version, and retailer version
c. regional
version, country version, city version, and retailer version
d. customer
version, regional version, city version, and retailer version
e. regional
version, country version, city version, and market versions

44.Product
invention consists of creating something new. Backward invention is
reintroducing earlier product forms
that are well adapted to a foreign country’s needs. Forward invention is ________.
a. creating a new product to meet a need in another country
b. creating a new product to meet the need in the host country
c. understanding the differences between host and foreign country
markets
d. increasing the control over the development of new products
e. inventing something that yet has a “market”

45.Companies
can run the same marketing communications programs as used in the home market
or change them for each local market, a process called ________.
a. product communications
b. brand communications
c. dual adaptation
d.marketing communications
e. communication adaptation

46.Many
multinationals are plagued by the gray market problem. The gray market consists
of ________.
a. the marketing of products to older consumers
b. branded products diverted from normal distribution channels in the
country of product origin
c. branded products diverted from one country to another
d. products being repackaged from the intended country to a diverted
country
e. products not having full warranties by the manufacturer

47. If a company
adapts or changes both the product and the communications, the company engages in a process called ________.
a. straight extension
b. marketing communication
c. product adaptation
d.dual adaptation
e. full adaptation

48. The use of media requires international
adaptation because media availability varies from country to country. Norway, Belgium,
and France
do not allow cigarettes and alcohol to be advertised on TB. Austria and Italy regulate TV advertising
________.
a. between
the hours of 9 p.m. and 6 a.m.
b. to children
c. for those under the age of majority
d. regarding content and clarity
e. using women in advertising

49. A Gucci bag sells for $120 in Italy and $240 in the United States. This is an example of when a firm tries to sell its products
abroad. This phenomenon is called a ________.
a. strategic
marketing pricing problem
b. market
pricing problem
c. tactical
pricing problem
d. price
escalation problem
e. transfer
pricing problem

50. A firm that charges a price
to another unit in the company sets
the ________ price for goods that it ships
to its foreign subsidiaries.
a. original price
b. transfer price
c. margin price
d. break-even price
e. customer value price

51.The
cost escalation problem exists for multinationals and varies from country to
country; the question is: How to set prices in different countries? Companies have three choices. One is to set a uniform
price everywhere, two is to set a market-based price in each country, and three
is to ________.
a. set a final “cost plus” price in each country

b. set a cost-based price in each country
c. let the market dictate price/country
d. vary the price/market/country on a daily
basis to reflect consumer demand
e. set the transfer price at marginal costs =
marginal revenue

52. In 2000 Stelco a Canadian
steelmaker, successfully fought dumping
changes against steelmakers in Brazil
and other countries. “Dumping” is
defined or occurs when ________.
a. a company charges
either less than its costs or less than it charges in its home market
b. the company charges
less that its costs but more than it
charges in its home market
c. the company’s pricing
plans are below current domestic prices
d. a company must increase
its prices/product prior to importing
the product
e. a company unloads an
excess supply of the product at the best possible prices to the consumer

53.
The “whole channel concept for international marketing” includes the following
steps________.
a. seller to seller’s international marketing headquarters to channels
between nations to channels within foreign nations to final buyers
b. seller to marketing
headquarters to channels within foreign markets to final buyers
c. sellers to channels between nations to final
buyers
d.sellers to channels within foreign nations to
final buyers
e. sellers to international markets to channels
within foreign nations to final buyers

54.In an increasingly connected, highly competitive global marketplace, government officials, and marketers are concerned with
how attitudes and beliefs about their country affect consumer and business
decision-making. ________is(are) the
mental associations and beliefs triggered by a country.
a. Corporate ownership of the firm
b. Materials used in manufacturing
c. Brand names and trademarks
d. Country-of-origin perceptions
e. Competitive
positions in the marketplace

55.A company
has several options when its products are competitively
priced but their place of origin turns consumers off. The company can consider ________.
a. re-packaging the product to disguise the country of origin
b. co-branding
c. reducing their country of origin mentions in their advertising
d. re-branding the product to disguise the country of origin
e. co-production with a foreign company
that has a better name.

56.
Most brands are adapted to some extent to reflect significant differences
in ________, ________, competitive
forces, and the legal and political environment.

a. consumer
behavior, brand development
b. business
mission, brand development
c. strategy and
consumer behavior
d.programs and
marketing communications
e. political
and social mores differences

57. Disadvantages to global marketing
include differences in consumer needs, wants, and usage patterns for products;
difference in consumer response to marketing-mix elements; differences in brand
and product development and the competitive
environment; and ________.
a. differences in marketing institutions
b. differences in language and consumer
expectations
c. differences in product performance
d. differences in management’s reaction to the
marketplace
e. none of the above

58.
Marketers must also adapt sales promotion
techniques to different markets. Several European countries have laws
preventing or limiting sales promotion
tools such as discounts. In Germany,
Lands’ End could not advertise its ________.
a. woman’s bathing suits
b. sale price
c. close-out specials
d. end-of-the-season sale
e. money-back
guarantee

59. Companies can manage their international marketing
activities in three ways. These include, through export departments,
international divisions, ________.
a. or a global organization
b. or from a fixed corporate headquarters
c. or through a strong marketing department in
the “host” country
d.and through local marketing efforts
e. none of the above

60. Bartlett and Ghoshal
have identified three organizational strategies for international firms. These
are: (1) a global strategy treats the world
as a single market; (2) a multinational strategy treats the world as a portfolio of national opportunities; and
(3) ________.
a. a local strategy standardizes all of the
local elements
b. the marketing strategy identifies those elements assigned to a
country and uses those elements plus corporate’s contribution in the marketing
plan
c. a “glocal” strategy standardizes certain core
elements and localizes other elements
d. assumes that there are no “local” or multinational differences in
formulating the marketing mix
e. none of the above