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Generally, people buy one product or service instead of another because they perceive it to be a better value. |
t |
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The buying process begins with a comparison of available alternatives. |
f |
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The greater the difference between a consumer’s unsatisfied need and the desired state, the greater the need recognition will be. |
t |
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Brenda wants a new car that will be dependable transportation and look good. She wants to satisfy both functional and psychological needs. |
t |
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When Glen is thirsty, he always buys a Coke. Like many consumers, Glen engages in considerable alternative evaluation when buying habitual products like his Coke. |
f |
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One benefit of having satisfied customers is that they may spread positive word of mouth. |
t |
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Setting high customer expectations is a good strategy that will help to avoid customer dissatisfaction in the long run. |
f |
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Customers are more likely to talk about service that exceeded their expectation than about service that did not meet their expectation. |
f |
|
Maslow’s Hierarchy of Needs is an interesting concept for psychology, but it has little relevance for marketing. |
f |
|
Situational factors sometimes override psychological and social factors in the consumer decision process. |
t |
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Frazier is out of milk and bread and needs to decide what is for dinner. He will be stopping at the grocery store on the way home. Frazier will likely engage in limited problem solving. |
t |
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Consumers involved in habitual decision making engage in little conscious decision making. |
t |
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As manager of a local donut shop, Arnie greets his regular customers by name and often begins making their order when he sees them drive into the parking lot. Arnie knows habitual purchasers with strong store loyalty are great customers. |
t |
|
Rachael is visiting colleges before applying to schools. Rachael is likely to be involved in an impulse buying process. |
f |
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When making an important purchase, consumers often consult friends and family. This is considered an external search for information. |
t |
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Mary will not consider purchasing an "American" car brand based on negative comments made by her parents; therefore, she has developed a negative attitude toward "American" brand cars. |
t |
|
A reference group may have direct or indirect influence on your attitude toward a particular clothing store. |
t |
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After purchasing an expensive pair of shoes, you may question whether or not the shoes are any better than the less expensive shoes you could have purchased instead. This is an example of postpurchase cognitive dissonance. |
t |
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Which of the following is NOT one of the four factors affecting consumers’ search processes? Perceived benefits versus perceived costs of search Locus of control Actual or perceived risk Type of product or service Functional versus psychological need |
e |
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Thanh has to decide which college to attend. This is the most important, riskiest and most expensive decision she has ever made. She will be engaged in low involvement decision making. extended problem solving. habitual decision making. prepurchase dissonance. limited problem solving. |
b |
|
Postpurchase cognitive dissonance is especially likely for products that are cheap, poorly made, and made of plastic. personally valuable, antique, or foreign-made. simple, easily copied, and new. psychologically soothing, purchased impulsively, and part of a consumer’s evoked set. expensive, infrequently purchased, and associated with high levels of risk. |
e |
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Laura has a nearly new economy car, but she wants a Ford Mustang because she thinks it would be exciting to own one. If she decides to purchase a sports car such as the Mustang, she will be primarily fulfilling __________ needs. functional postpurchase safety psychological functional and psychological |
d |
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Generally, people buy one product or service instead of another because they get the lowest price possible. perceive it to be the better value for them. prefer to avoid doing extended problem solving. have conducted a thorough internal search for information. are unaware of key determinant attributes. |
b |
|
Elena is in the process of buying a new car. There are many possible cars to choose from, but she is focused on a few she would actually consider buying. These make up her __________ set. universal retrieval immediate evoked focus |
d |
|
Most "big box" retailers regularly move products from one aisle to another. They also put personal care products in the pharmacy area, many aisles away from the grocery products. They do this because consumers who spend more time walking through the store are likely to make impulse purchases. limited problem solving decisions. extended problem solving decisions. ritual consumption purchases. affective alternative decisions. |
a |
|
Every year, before he puts his boat in the water, James has his mechanic put a new battery in the boat. James is probably concerned with __________ risk. psychological financial performance social physiological |
c |
|
Jordana is buying a laptop computer to take on trips. Although she has looked at several brands, she refuses to buy a computer that weighs more than five pounds. Jordana is basing her decision on a compensatory decision rule. a noncompensatory decision rule. habitual decision making. social factors. temporal factors. |
b |
|
Americans often equate "bigger" with "better," and prefer larger cars, TV screens, homes … even meals. Researchers suspect that in doing so, we are trying to reduce __________ risk in the consumer decision process. psychological financial performance social physiological |
a |
|
Darrell sells custom cabinets for upscale residential homes. Darrell hopes that satisfied customers will create word of mouth referrals for him. To make it more likely that his customers are satisfied, Darrell could do any of the following EXCEPT tell customers that he has the best quality cabinets available anywhere in the country. carefully demonstrate how to maintain the finish on his cabinets. provide a satisfaction guarantee policy. visit customers after they have moved into their homes. provide the proper cleaning fluid to use on the cabinets. |
a |
|
Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process? Need recognition Postpurchase evaluation Information search Situational analysis Evaluation of alternatives |
e |
|
Before going on his first business trip to China, Brad asked his Chinese-American friend to advise him on customs and values common among the Chinese businesspeople he will likely encounter. Brad is trying to avoid __________ business blunders. reference group situational cultural cognitive evoked |
c |
|
Jennifer’s spending decisions are heavily influenced by her family, her peers, and her religious education. These influences on her spending decisions are examples of assessment of psychological risk. the external social environment. physiological needs. cognitive needs. an evoked set. |
b |
|
Budweiser is well known for using humor in its ads for Bud Light beer. Which of the various factors affecting the consumer decision process are humorous ads like the Bud Light ads most likely to be attempting to influence? Motives Attitudes Lifestyle Perceptions Learning |
c |
|
Marketers often use principles and theories from sociology and psychology to better understand consumers’ actions and to develop basic strategies for dealing with their behavior. to contribute to the theoretical knowledge in those disciplines. to avoid cultural reference group problems. to maximize postpurchase cognitive dissonance. to satisfy ritual consumption needs while avoiding overconsumption. |
a |
|
a |
a |
|
Apple computer users tend to like the company and love its products. Apple has nurtured this __________ component of their customers’ attitudes. social affective psychological cognitive physiological |
b |
|
Negative attitudes are typically difficult for marketers to change because most consumers’ attitudes depend on prices. consumers weigh performance risk against functional needs when assessing their attitudes. attitudes are learned and long lasting. attitudes shift consumers from limited to extended problem solving situations. consumers’ attitudes are derived from unchanging decision rules. |
c |
|
Marketers frequently design customer relationship management programs to retain loyal customers. attract consumers who have safety needs. reinforce postpurchase cognitive dissonance. increase internal information search. improve profit margins. |
a |
|
When Karen realized her dog had fleas, Karen had a social-perceptual incongruence. a psychological need. a cognitive learning failure. a universal shopping need. an unsatisfied need. |
e |
|
Stuart wanted to impress Janet with the perfect engagement ring. He had been saving money for months, and he noticed his attitudes and perceptions about diamond rings changing as he began paying attention to ads for rings. Marketers call this process consumer confidence building. self-actualization. a decision rule. reducing prepurchase dissonance. learning. |
e |
|
Reginald greets his regular customers by name every morning when they come in for coffee. He offers them a taste of anything special he is cooking that day. He has a database with their birthdays, and offers them free meals on their birthdays. Reginald hopes that this attention to his "regulars" will encourage them to assist him in meeting his functional needs. always include his firm in their universal set. extend problem solving beyond ritual consumption. internalize impulse attitudes. spread positive word of mouth. |
e |
|
Maslow’s Hierarchy of Needs includes physiological needs at the lowest level and self-actualization at the top. The three levels in between are material goods, safety, and love. community, family, and self. safety, stability, and striving. health, wealth, and happiness. safety, love, and esteem. |
e |
|
Jordana is a travel agent. Whenever she sells an expensive vacation package, she encourages the customer to buy travel insurance, which provides reimbursement in case of trip cancellation due to illness or another emergency. Jordana is trying to reduce her customers’ __________ risk. psychological financial performance social physiological |
b |
|
The consumer buying process begins when a consumer enters a store. consumers’ functional needs are greater than their psychological needs. a consumer’s performance risk is minimized. a consumer recognizes an unsatisfied need. learning follows perception. |
d |
|
To attract and maintain habitual purchasers, marketers spend considerable effort analyzing consumer data for postpurchase dissonance signals. creating strong brands and store loyalty. cultivating cultural decision making. reducing financial risk and increasing psychological payout. offering alternative brands. |
b |
|
The Wall Street Journal provides a set of guidelines each year for purchasing a laptop computer. The guidelines include recommendations for hard disk capacity, memory size, battery life, and several other attributes. TheWall Street Journal is providing consumers with an evoked set. psychological needs. social concerns. evaluative criteria. biased information. |
d |
|
Before flying, Jaden researches the types of planes the airline uses, scans the plane for defects as it taxis up to the terminal, and follows the pilot and crew as they come through the airport. He has no experience as a pilot or airplane mechanic. Jaden probably has a misguided sense of his postpurchase dissonance. locus of control. reference group identification. attribute sets. social risk. |
b |
|
Last semester, Henri bought his textbooks over the Internet and saved a considerable amount of money. Classes start in a few days, and he needs to decide right away how and where to purchase his books. Henri will engage in a(n) __________ process. impulse buying limited problem solving extended problem solving ritual consumption affective decision |
b |
|
In the consumer decision process, we decide how much time and effort to expend searching for information based partly on postpurchase dissonance. the outcome of the alternative evaluation process. the degree of perceived risk associated with the product or service being considered. the results of habitual decision making. the results of the external search. |
c |
|
Andrea and Karl got married a year ago and are ready to move out of their apartment and into a new home. After looking at several houses, they have developed a list of features that are important to them and that are different among the homes they have visited. The features on their list are called __________. an evoked set determinant attributes short lists perceived risk factors trade-off elements |
b |
|
Sometimes consumers have second thoughts after buying goods that are expensive, infrequently purchased, or associated with a high level of risk. This is an especially critical time for marketers, as their customers are dealing with criteria reevaluation. buyer’s remorse. competitive leverage. purchase uncertainty. consumer vulnerability. |
b |
|
The traditional marketing strategy of selling umbrellas when it is raining is an example of how __________ factors influence consumers’ decisions. situational psychological shopping interpersonal economic |
a |
|
Marketers are particularly interested in postpurchase behavior because it involves both compensatory and noncompensatory consumers. offers insights into information search methods. avoids situational conflicts. involves actual rather than potential customers. it involves both actual and potential customers. |
d |
|
a |
a |
|
Firms hope that helping consumers to learn more about a company and its products will affect consumers’ universal sets. social sensitivity. impulse buying rates. attitudes. evoked memories. |
d |
|
There are five types of risks associated with purchase decisions. Which of the following best describes a situation where your new car stalls in the middle of a busy intersection? Physiological risk Social risk Financial risk Functional risk Psychological risk |
a |
|
Where Caroline grew up, everyone knew everyone else, no one locked the doors on their house, and a person’s word could be trusted. When she went to work in another part of the country, she was surprised by how few people had similar values and beliefs. Caroline had to adjust to __________ differences. reference group situational cognitive cultural evoked |
d |
|
__________ factors, such as the purchase situation, often override or influence psychological and social issues influencing consumers’ purchase decisions. Situational Extended habitual Postpurchase dissonance Interpersonal Economic |
a |
|
Some websites provide allow consumers to shop while getting opinions from online friends. Which of the influences on the consumer buying process does this represent? Psychological Social Situational Motives Perception |
b |
|
Alex decides to make a donation to the Autism Research Institute. Which component of Alex’s attitude toward autism research does this represent? behavioral component affective component cognitive component affordable component connected component |
a |
|
"Black Friday," as the day after Thanksgiving has come to be known in the U.S., is a day marked by many special deals in most retail stores, including deep-discounted products available in limited quantities, called "doorbusters," and designed to get shoppers into the store. But one danger of running out of the "doorbuster" deals is that a shopper may become angry or discouraged at failing to get the special item, and decide not to do any more shopping. This is an example of the impact of __________ on the consumer decision process. the purchase situation lifestyle temporal state perception learning |
c |
|
André was afraid his condominium would look shabby to his future in-laws, so he had it painted just before their visit. André was addressing his __________ risk. social financial performance psychological physiological |
a |
|
There are approximately 1 billion people living in India. Only about 200 million of these people earn more than the equivalent of $1,000 per year. According to Maslow’s Hierarchy, most of the other 800 million Indian consumers are primarily addressing their __________ needs. social personal psychological esteem physiological |
e |
|
Marketers particularly want their brands and products to be in consumers’ __________ sets. universal retrieval evoked deterministic behavioral |
c |
|
Once consumers have recognized a need, they begin to search for ways to satisfy that need. The internal search is characterized by looking through the internal records of a firm, often found on the company website. examining personal memories and knowledge. using the Internet to find what other consumers feel about a specific product or service. consulting close friends and families before expanding the search to a wider, external group. the influence of advertising. |
b |
|
Joanna lives according to her own rules, unconcerned about designer labels, brand names, and luxury items. Joanna is at what level in Maslow’s Hierarchy of Needs? Self-actualization Safety Love Esteem Physiological |
a |
|
Most firms maintain customer complaint services online, in the store, or over the telephone. Firms attempt to respond quickly to complaints, hoping to get themselves into the universal set. reduce the cost of postpurchase advertising. minimize negative word of mouth and rumors. extend decision rules to the customer complaint desk. offset performance risk with financial risk. |
c |
|
__________ refer(s) to the process by which consumers select, organize, and interpret information. Attitude Learning Perception Cultural norms Postpurchase dissonance |
c |
|
The discrepancy between a consumer’s actual state and desired state is associated with which of the following steps in the consumer decision process? Need recognition Information search Alternative evaluation Purchase Post purchase |
a |
|
Which of the following needs pertains to the performance of a product or service? Need recognition Functional needs Demographic needs Psychological needs Cultural needs |
b |
|
_____ pertain to the personal gratification consumers associate with the product or service. Needs recognition Functional needs Demographic needs Psychological needs Personal needs |
d |
|
The vast majority of products and services are likely to satisfy functional needs. psychological needs. personal needs. both personal and functional needs. both functional and psychological needs. |
e |
|
According to the consumer decision process, after consumers recognize the need for a product, they then engage in psychological need recognition. an information search. an evaluation of alternatives. the purchase of the product. post purchase behavior. |
b |
|
_____ involves the buyer considering their own personal knowledge about a product based on past experience. Impulse buying An internal search for information An external search for information Experiential search for information Needs recognition |
b |
|
When John was considering buying a new car, he sought out unbiased information and ratings about different makes and models in Consumer Reports magazine as well as from Edmunds.com. Which of the following corresponds most closely to this aspect of the decision process? Needs recognition Internal search for information External search for information Experiential search for information Impulse buying |
c |
|
The fact that a family would spend a lot more time researching the market before making a home purchase than it would in the decision to purchase an inexpensive dollhouse for the youngest member of household can best be explained which of the following concepts? locus of control performance risk psychological risk social risk aversion perceived benefits versus perceived costs of search |
e |
|
Of the five types of risk associated with purchase decisions, which one involves the perceived danger inherent in a poorly performing product or service? financial social physiological performance psychological |
d |
|
External agencies and government bodies publish safety ratings for cars to help consumers alleviate _____ risk. performance financial physiological social psychological |
c |
|
Alternative evaluation often occurs while the consumer is engaged which step of the consumer purchase process need recognition. information search. Purchase outcome behaviors. product purchase. post purchase evaluation. |
b |
|
When consumers are engaged in the consumer decision process, the specific brands or stores they can readily recall in a product category are referred to as their _____ set. universal retrieval memory evoked brand |
b |
|
When Catherine was considering different brands of jeans to buy, she limited the choices to threeshe would actually consider purchasing. These three brands make up her _____ set. universal retrieval purchase evoked brand |
d |
|
Ethan considered three important attributes when deciding where he would do his banking: the convenience of the location, hours of operation, and interest rates for CDs. In this situation, these three attributes are called attribute sets. evaluative sets. evaluative criteria. formative criteria. alternative evaluation. |
c |
|
Angela considered all sporting goods stores to be roughly equivalent in most ways, however, she considered LL Bean to have an exceptional level of customer service. Customer service therefore, would be considered a _____ for her in evaluating sporting good stores. determinant attribute compensatory decision rule noncompensatory decision rule locus of control retrieval set |
a |
|
Nathan was shopping for a new pair of athletic shoes. Although it would have been nice to take the shoes home immediately after purchasing them, he was willing to trade off immediate availability because he found that he could purchase the shoes online for a 50% discount. This is an example of using a determinant attribute. compensatory decision rule. noncompensatory decision rule. decision heuristic. conversion rate. |
b |
|
Because not all purchase intentions result in an actual purchase, marketers calculate the _____ to measure how effectively a decision to purchase a specific product results in a completed purchase. performance risk compensatory decision rate noncompensatory decision rate decision heuristic conversion rate |
e |
|
Marketers that set unrealistically high consumer expectations of a product through advertising or other types of promotion, may generate higher initial sales, but it will eventually lead to _____ if the product fails to achieve these expectations. high conversion rates social risk post purchase dissatisfaction unfulfilling decision heuristics habitual decision making |
c |
|
Roberta works out at a health club, goes to yoga classes and reads magazines about women’s health in order to satisfy her inner desires. Which of Maslow’s needs is Roberta fulfilling? Financial Physiological Safety Love Esteem |
e |
|
Sandy thinks the east side of her city is a great area to own a home and raise a family. John thinks the east side has a lot of crime, poor schools, and would be a poor choice of location to own a home and raise a family. Sandy and John have different _____ regarding the east side of the city. temporal states reference groups needs perceptions motives |
d |
|
When she was looking for a new car, Francesca was considering both American and foreign made vehicles, but her father and boyfriend both encouraged her to buy American-made brands. Which of the following social factors explain this type of influence? Culture Temporal state Lifestyle factors Reference groups Situational factors |
d |
|
According to the Elaboration Likelihood Model, which of the following variables determines whether limited or extended problem solving will operate in a particular purchase decision? Purchase readiness Attentional capacity Likelihood of purchase The level of involvement The level of elaborate thinking |
d |
|
A purchase decision which typically involves (at most) a moderate amount of effort and time is called extended problem solving. limited problem solving. deep processing. high involvement processing. habitual decision making. |
b |
|
Kerry was in her grocery store and saw a display for a new organic yogurt. She had not planned to buy it, but decided on the spot to buy one and try it. Kerry’s purchase represents habitual decision making. deep processing. impulse buying. high involvement processing. extended problem solving. |
c |
|
Whenever Meredith buys toothpaste, she always automatically reaches for the same brand and puts it in her shopping cart with no thought or effort. Meredith is engaged in habitual decision making. limited problem solving. impulse buying. high involvement processing. extended problem solving. |
a |
|
Business-to-business marketing refers to buying and selling goods or services to be used by final consumers. |
f |
|
B2B marketing involves manufacturers, wholesalers, and service firms. |
t |
|
Resellers differ from producers in that resellers significantly alter the form of goods they sell. |
f |
|
The B2B buying process tends to be more formal than B2C buying. |
t |
|
The RFP process is used by buyers to allow customer input into value creation. |
f |
|
A university’s purchasing department is required to get at least three bids for any purchase greater than $3,000. This requirement is used to keep suppliers "on their toes." |
t |
|
The final step of the business-to-business buying process is a formal vendor analysis. |
t |
|
Organizational culture may vary by geography. |
t |
|
Most B2B buying situations can be categorized into three categories: new buys, structured rebuys, and automatic rebuys. |
f |
|
In both new buy and straight rebuy situations, all members of a buying center will be intensely involved in the purchasing decision. |
f |
|
An architect working for a large firm requests specific computer software to produce designs, drawings, and other technical information for his clients. The architect probably serves as a gatekeeper in the buying center. |
f |
|
Nearly all small businesses have consensus buying centers. |
f |
|
A buying center whose members reach a decision based on a collective agreement is known as an autocratic buying center. |
f |
|
A small business decides to upgrade its aging phone system. The business will probably place a straight rebuy order. |
f |
|
B2B buying decisions are often made by governors. influencers. committees. resellers. consumers. |
c |
|
Not knowing the roles of key players in the buying process could cause a sales representative to bid too high a quantity. fail the vendor analysis. respond to an RFP too quickly. waste time and alienate people. misdirect his or her product. |
d |
|
While no one in the firm has discussed it, Brad notices everyone else seems to dress more casually on Fridays during the summer. Brad is observing part of his firm’s culture. governing principles. human resources policy. employee obligations. gatekeeping. |
a |
|
After need recognition, a business develops __________ that suppliers might use to develop their proposals. derived demand initiator instructions determinant attributes product specifications focal alternatives |
d |
|
The buying center for USF Corporation is in the process of discussing price, quality, and delivery schedules with potential suppliers. They are in the __________ stage of the business-to-business buying process. vendor negotiation product specification need recognition vendor performance assessment RFP |
a |
|
Unlike manufacturers, __________ buy products from other businesses but do not significantly alter the form of the products they buy. producers consumers resellers English auctioneers gatekeepers |
c |
|
When a business customer engages in a straight rebuy, the member of the buying center most likely to be involved in the purchase is the decider. initiator. influencer. user. buyer. |
e |
|
Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. After a vendor is chosen, Reginald will handle the paperwork and send out the purchase order. Reginald plays the __________ in the buying center. buyer initiator influencer user gatekeeper |
a |
|
What type of B2B organization is a retail store such as T.J. Maxx? Reseller Institution Government Manufacturer Internet |
a |
|
The president of the Northwoods University student body made a formal request to the IT department for additional computers in the main computer lab. The student body president is the __________ in the buying center. initiator gatekeeper decider buyer gateway |
a |
|
Bob Roberts founded Robertico, an equipment leasing company, three decades ago. Although he is now in his seventies, he still has a "hands on" management style. His employees have learned that there isn’t much point in making purchase recommendations for new equipment, because Bob is going to choose whatever he thinks is best regardless of their views. Robertico has a(n) __________ buying center culture. autocratic democratic consultative consensus bureaucratic |
a |
|
Firms typically repurchase office supplies (paper, ink cartridges, pens, etc.) through straight rebuys on their supplier’s website. Should an office supplies sales rep stay in close touch with his/her current customers, and why or why not? No; this is a waste of time since straight rebuys are straightforward and easy to handle. No; the sales rep should be looking for new customers instead. Yes; straight rebuys require a lot of the sales rep’s assistance. Yes; the sales rep might learn about a new opportunity in the need recognition stage. Yes; history has shown that online reordering can’t be trusted. |
d |
|
After need recognition and product specification, many firms using the B2B buying process identify contract specifications. issue a request for proposals from invited suppliers. proceed to proposal analysis. enter vendor negotiation and selection. revise their need recognition analysis. |
b |
|
The buying decision is likely to be most complex and take longest to complete in a(n) __________ B2B buying situation. new buy modified rebuy straight rebuy adapted buy generic buy |
a |
|
Most B2B buying situations can be categorized as new buys, modified rebuys, and generic buys. straight rebuys. ordinary rebuys. adapted buys. minor buys. |
b |
|
The three types of buying situations create confusion among B2B sellers. suggest that B2B sellers should develop one marketing mix to use for all situations. require business sellers to be consistent in their marketing mixes. are theoretical and have little relation to what happens in the real world. call for different marketing and selling strategies. |
e |
|
A buying center that makes its decisions by majority vote is a(n) __________ buying center. democratic consultative consensus autocratic bureaucratic |
a |
|
Which of the following is an example of a government buyer? Mayo Clinic Hospital Procter & Gamble U.S. Marine Corps Nucor Steel Corporation Walmart |
c |
|
The office policy and procedure states that any purchase requests that are $3,000 and over must be given to Ms. Reynolds, who will obtain authorization from the Chief Financial Officer. Ms. Reynolds serves as a __________ in the buying center. gatekeeper decider buyer user initiator |
a |
|
Which of the following is NOT one of the four general types of organizational cultures? autocratic democratic consultative capitalist consensus |
d |
|
Sales of electric components manufactured by Rick’s company depend on sales of new cars. Rick’s company faces __________ demand. synthetic situational monopolistic democratic derived |
e |
|
When Walmart considers reordering items for its stores, its buyers are instructed to negotiate price concessions, quality improvements, and/or added options. In this situation, Walmart buyers are engaged in a(n) __________ situation. new buy modified rebuy straight rebuy adapted buy generic buy |
b |
|
A(n) __________ situation in B2B marketing is similar to limited problem solving in the B2C process. adapted buy new buy modified rebuy straight rebuy generic buy |
c |
|
Frequently a B2B buyer will post its RFP on Twitter. in Commerce Business Daily. in the legal section of a local newspaper. on its website. in the employee human resources office. |
d |
|
Fordham Hardware is known for its consensus buying center culture. Recognizing this corporate culture, someone attempting to sell to Fordham Hardware should focus exclusively on the head of the buying center. address the concerns of all members of the buying center with particular attention to those of the decision maker. focus on providing information to and making the sales approach to the one decision maker. attempt to facilitate the collective agreement of all members of the buying center. attempt to get one "friend" on the committee to support his products. |
d |
|
When Leanne gave her presentation to the BigDeal discount buying center team, she treated each member’s question seriously and gave equal time to addressing each. Leanne did not realize BigDeal has an autocratic buying center culture and she needed to focus on answering Beverly’s questions, since she is the decision maker. In addition to wasting time by not understanding BigDeal’s culture, Leanne may have also hurt her chances because she bid too many products. failed the vendor analysis. responded to the RFP too quickly. alienated Beverly, the real decision maker. offended the nondecision makers by assuming they had more power than they did. |
d |
|
Kim is the sales representative for a major textbook publisher. When she calls on the business faculty at General University, her first stop is to chat with Frank, the business department secretary. From Frank, Kim learns which professors have left the university or are newly arrived. Frank also helps Kim to make appointments to see professors to discuss textbook choices. Frank acts as the __________ in the business department buying center. buyer initiator influencer user gatekeeper |
e |
|
Markham Publishing is known for its consultative buying center culture. Recognizing this corporate culture, someone attempting to sell to Markham Publishing should treat all members of the buying center as equally important. address the concerns of all members of the buying center with particular attention to those of the decision maker. focus on providing information to and making the sales approach to the one decision maker. attempt to facilitate the collective agreement of all members of the buying center. focus attention on the gatekeeper in the buying center’s team. |
b |
|
Phil put down the phone and told Alice, "I just love that customer. I got another big order, and they just keep on coming." Phil is likely selling to a firm in what kind of buying situation? New buy Modified rebuy Straight rebuy Generic buy Adapted buy |
c |
|
When reviewing her firm’s business buying process, Carla noticed a company requirement that they have at least three qualified bids from suppliers for any purchase over $50,000. This requirement is designed to minimize competitive pressure. efficiently organize resellers. encourage the bidders to offer their best deals. foster democratic buying centers. slow down the purchase process. |
c |
|
Raycom Construction needs heavy-duty equipment to install a new pipeline in northern Alaska. Raycom’s engineers have been asked to provide detailed specifications and recommendations for the equipment needed. The Raycom engineers will primarily play the __________ role in the company’s buying center. buyer initiator influencer user gatekeeper |
c |
|
Kimberly has just learned that Caribou Coffee is looking for a new source of commercial-grade coffee makers, one of the products she sells. She knows Caribou has been in business for many years, but she has not been able to get any business from them. When developing her marketing strategy, Kimberly will probably assume that this represents a __________ situation for Caribou Coffee, and she will want to find out why Caribou is considering alternatives. adapted buy new buy modified rebuy straight rebuy generic buy |
c |
|
An organization’s culture reflects the __________ that guide its employees’ behavior. B2B dynamics RFP process buying center philosophy set of values, traditions, and customs derived set of influences |
d |
|
The first stage of the B2B buying process is product specification. the request for proposals. proposal analysis. vendor negotiation and selection. need recognition. |
e |
|
When a business buyer decides to change specifications such as quality or options associated with products purchased in the past, the buyer is engaged in a(n) __________ situation. new buy modified rebuy straight rebuy adapted buy side by side |
b |
|
In a modified rebuy situation, __________ are likely to have an advantage in getting the order. consumers resellers current vendors gatekeepers buying centers |
c |
|
Which of the following is NOT true about web portals? Small companies use them to attract more attention to their purchasing needs. Many specialty portals have been created to serve specialized needs. Portals are strictly for buying and selling tangible products. They can save companies money and reduce paperwork. All of these statements are true about web portals. |
c |
|
In which buying situation is the buyer most likely to proceed through all six steps in the buying process? New buy Modified rebuy Straight rebuy Generic buy Adapted buy |
a |
|
Suppose that Volkswagen is preparing an RFP for a hands-free phone connection for a new car model. Which of the following would you NOT expect to find in the RFP? A description of the required features for the device. A time frame when the devices are needed. Specifications for connecting the device to the car. A vendor analysis. Instructions for preparing proposals. |
d |
|
A __________ is a type of reseller, a business that buys from other businesses but does not significantly alter the form of the products it buys. manufacturer producer consumer wholesaler factory |
d |
|
The Northwoods University IT department is planning to buy additional computers for the computer lab. Pedro Bechara, manager of the lab, is asked for a recommendation, and he suggests buying Macintosh computers instead of Windows PCs. What role does Pedro play in the buying center? Influencer Gatekeeper Decider Buyer Initiator |
a |
|
Because they do so much driving while visiting doctors’ offices and hospitals, pharmaceutical sales representatives are often given company cars to drive. When a pharmaceutical company like Merck is preparing to purchase new company cars, sales reps’ feedback will be sought on car models and features, but the final decision will be made by higher levels of management. What role(s) do the sales reps play in the buying center? Users Initiators Influencers Users and influencers Users and initiators |
d |
|
Compared to the B2C process, the information search and alternative evaluation steps in the B2B process are decentralized. less focused on customer value creation. identical. more formal and structured. based on derived supply analysis. |
d |
|
Which of the following is NOT one of the roles typically played by one of the members of a buying center? Auctioneer Initiator Influencer Decider Gatekeeper |
a |
|
B2B partners often connect to each other on the Internet through special __________ designed to facilitate information exchanges and transactions. web portals webmasters web links web hosts gatekeepers |
a |
|
Edward, the leading salesperson for Harry’s Honda dealership, began hearing customers asking for hybrid automobiles several years ago. Edward alerted Harry, and Harry preordered many Honda hybrids before they became available. In this case, the source of need recognition was trade show demonstrations. ads in trade journals. customers. the Internet. suppliers. |
c |
|
Business-to-business marketing involves buying and selling goods or services by all of the following EXCEPT manufacturers. consumers. retailers. producers. wholesalers. |
b |
|
When Goodwish Marketing decided to upgrade its network, many people were involved in the decision. In B2B buying systems decisions are often made quickly. by a single expert. at auction sites. by a committee after considerable deliberation. through community debating organizations. |
d |
|
Paula has developed a successful business selling appliances to homebuilders. She carefully monitors the issuance of new home permits to anticipate how many appliances she will need to buy in order to supply her customers. Paula is concerned with __________. modified demand secondary demand rebuy demand derived demand delayed demand |
d |
|
Which of the following details is/are included in the order specification stage of the B2B buying process? Prices and delivery dates Vendor performance assessment The RFP Bids for supplying the required components or parts Vendor selection |
a |
|
_____ reflects the link between consumers’ demand for a company’s product and the company’s purchase of necessary inputs to manufacture or assemble that particular product. Institutional purchasing demand Distribution Derived demand Wholesaling Reselling demand |
c |
|
In B2B markets, _____ are firms that buy and reprocess products (a product is a good or service) before selling them again to the next buyer. manufacturers producers resellers institutions governments |
a |
|
Which of the following is an example of a reseller? Manufacturer Producer Wholesaler Institution Government |
c |
|
In terms of business markets, organizations like hospitals that provide goods and services to people in their care are classified as manufacturers. producers. resellers. institutions. governments. |
d |
|
With its estimated outlay of $600 billion dollars for fiscal year 2011, the Pentagon represents which type of B2B organization? Manufacturer Distributor Reseller Institution Government |
e |
|
The business-to-business buying process is initiated by which of the following steps? The RFP process Need recognition Proposal analysis Product specification Vendor performance assessment |
b |
|
The acronym RFP, when used by those involved in business-to-business buying, stands for Request For Pricing. Reorder For Products. Request For Products. Request For Proposals. Request For Performance. |
d |
|
_____ is an entry point that is commonly used to find specific sites. A web hosting site An intranet A web portal A micro blog A web link |
c |
|
In this stage of the business-to-business buying process, firms are likely to narrow their selection to a few suppliers, often those with which they have existing relationships, and discuss key terms of the sale. The RFP process Vendor specification Product specification Vendor performance assessment Proposal analysis and supplier selection |
e |
|
What is the final stage in the business-to-business buying process? RFP process Vendor performance assessment Order specification Need recognition Proposal analysis and supplier selection |
b |
|
John is involved in the buying center of a large organization. He ultimately will determine whether to buy, what to buy, how to buy, or where to buy. What role does John play in this situation? Initiator Influencer Decider Buyer Gatekeeper |
c |
|
The individual who controls the flow of information or access to important decision makers serves as the _____ in the buying center. user initiator decider influencer gatekeeper |
e |
|
Pharmaceutical companies have been criticized for direct-to-consumer television ads promoting the use of their brands of medication for specific medical conditions. With respect to buying centers, the pharmaceutical company plays the role of _____ in this situation. initiator influencer decider buyer gatekeeper |
b |
|
A firm’s _____ reflects the set of values, traditions, and customs that guide its employees’ behavior. marketing strategy marketing plan ethical climate demographics organizational culture |
e |
|
In a(n) _____ buying center, there may be many participants, but one person makes the decision alone. autocratic consensual consultative democratic republic |
a |
|
In a(n) _____ buying center, one person is authorized to make a decision, but input from others is gathered before doing so. republic autocratic democratic consensual consultative |
e |
|
In _____ buying centers, all members of the team must reach a collective agreement that they can support a particular purchase. autocratic consensus consultative democratic republic |
b |
|
Autocratic buying centers are characterized by a single decision maker. collective agreement. majority rule. the solicitation of many opinions. many decision makers. |
a |
|
Although social media is used to build relationships, in the B2B context, the majority of B2B marketers use _____ for their marketing efforts. HootSuite White papers |
e |
|
Most B2B buying situations can be categorized into three types: new buys, straight rebuys, and standard rebuys. capital buys. modified rebuys. repeat buys. strategic buys. |
c |
|
Franks Pizza oven is broken and Frank will need to buy a replacement. The purchase of capital equipment such as the ovenis an example of a _____ situation. straight rebuy standard rebuy modified rebuy new buy capital buy |
d |
|
In a _____ situation, the buying center is likely to proceed through all six steps in the buying process and involve many people in the buying decision. straight rebuy standard rebuy modified rebuy new buy capital buy |
d |
|
The University will purchase new computers during the summer to update its computer labs. Although the new computers will be more advanced in terms of their technology, the purchase itself will involve some of the same considerations as those used for previous purchases. This is an example of which of the following types of buying situation? Straight rebuy Standard rebuy Modified rebuy New buy Capital buy |
c |
|
When Kinko’s replenishes its supply of copy paper, it most likely involves a _____ situation. new buy standard rebuy modified rebuy straight rebuy material buy |
d |
|
In _____, the buyer is often the only member of the buying center involved in the process. new buys standard rebuys modified rebuys straight rebuys material buys |
d |
|
Most Americans tend to take access to global products and services for granted. |
t |
|
The greater the wealth of a country, generally, the better the opportunity a firm will have in that particular country. |
t |
|
The Big Mac Index is a measure of economic health in a country. |
f |
|
Less-developed countries like Switzerland and Britain are experiencing rapid population growth. |
f |
|
Colin wants information about the infrastructure in the countries his company is planning to export to. He will gather information about the transportation and communications capabilities in each country. |
t |
|
Tariffs artificially lower prices and therefore lower demand. |
f |
|
The North American Free Trade Agreement represents the highest level of integration among the various international trade agreements. |
f |
|
The BRIC countries are Bolivia, Russia, Italy and China. |
f |
|
China is now the second-largest economy and the third-largest market for U.S. exports. |
t |
|
India is one of the fastest growing markets and has one of the youngest populations in the world. |
t |
|
Brazil is characterized by strong upper and lower classes, but the middle class has declined in recent years. |
f |
|
Russia lags behind most European countries in use of the Internet. |
f |
|
Global expansion often begins when a firm receives an order for its product from another country. |
t |
|
Exporting refers to a situation where a company maintains ownership of its plants, operational facilities, and offices in a foreign country in which it sells its products. |
f |
|
In a joint venture, the burden of ownership, control, and profits is not shared. |
f |
|
Entering into a global franchise agreement exposes a company to higher risk than if the company had entered into direct investment in the country. |
f |
|
There is only one global product strategy: to sell a product or service similar to that sold in the home country, but include minor adaptations. |
f |
|
An effective global pricing strategy can be easily established by setting the same prices in every market around the world. |
f |
|
Glocalization refers to a global marketing strategy in which each of the four Ps is customized for each country. |
f |
|
In order to maximize potential, segments and target markets can and should be defined by more than just geography. |
t |
|
The shift of population from rural to urban areas in countries such as India helps global marketers by decreasing pollution. simplifying the supply chain needed to make goods and services available. increasing the human development index. decreasing competition for intellectual capital. increasing nonmaterial GDP output. |
b |
|
A __________ limits the quantity of imported merchandise, thus minimizing competition faced by domestic products. tariff duty trading bloc trade agreement quota |
e |
|
One Laptop Per Child is a nonprofit initiative with the goal of making extremely low-cost laptops available to children in the developing world, with the goal of helping them to learn skills needed in today’s workforce. If some of the low-cost technology developed for this laptop found its way into laptops created for U.S. consumers, this would be an example of glocalization. reverse innovation. franchising. a strategic alliance. purchasing power parity. |
b |
|
Global marketers typically find distribution in developing countries is more complex because they must go through many different types of distribution channels. distribution is more heavily regulated in developing countries. most consumers in developing countries live in densely populated cities. the infrastructure is more advanced in most developing countries. consumers in developing countries have very specific preferences. |
a |
|
To determine the market potential for its particular product or service, a firm should use GDP data. unemployment data. purchasing power parity data. inflation data. as many measures as it can obtain. |
e |
|
During the early stages of globalization, in the 1950s and 1960s, _______________ were uniquely positioned because they had the skills necessary to develop, promote, and market brand name consumer products. large U.S. firms Japanese electronics companies low-cost Chinese manufacturers European service companies Mideast oil producers |
a |
|
The most important consideration, when a firm chooses a global product strategy, should be opportunities for countertrade. the effectiveness of the marketing team. the needs of the target market. the provisions of GATT. WTO regulations. |
c |
|
When Ben evaluated the commercial infrastructure in Mauritius, he considered the island’s population control measures. legal, banking, and regulatory systems. retailing capabilities. per capita income estimates. climate and culture. |
b |
|
When considering global marketing opportunities in Bangladesh, Tom asked the question, "How will we get it there?" Tom is concerned about __________ capabilities in Bangladesh. production capacity pricing advertising infrastructure cultural |
d |
|
Which of the following is NOT one of Hofstede’s cultural dimensions? Power distance Certainty assurance Masculinity Individualism Time orientation |
b |
|
Which of the following is NOT one of the major trade agreements affecting global marketing? NAFTA EU GNI ASEAN CAFTA |
c |
|
NCD company wants to expand into the Mexican market. They have financial resources, want to control business operations, and have had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market. franchising exporting a joint venture direct investment a strategic alliance |
d |
|
Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. Which of these is NOT a disadvantage of franchising? The franchisor has limited ability to ensure that foreign operations follow all the concepts and ideas that made the firm successful domestically. The franchisor might end up training a future competitor. Franchising limits profit potential, since profits will have to be split with the franchisee. Franchising is the riskiest way to enter a foreign market. All of these are disadvantages a firm must consider. |
d |
|
Generally, firms entering foreign markets begin with less risky strategies first. direct investment. importing. decentralized production. cultural output. |
a |
|
GDP is defined as the value of a country’s exports minus its imports. great domestic product. the market value of goods and services produced in a country in a year. national income minus national taxes. the gross purchasing power of domestic goods and services plus international income. |
c |
|
The Big Mac Index is a novel measure of GDP. purchasing power parity. per capita GNI. economic growth. international trade surplus. |
b |
|
Marketers sometimes use Hofstede’s cultural dimensions to design marketing campaigns with low individualism symbolism when confronted with a time oriented culture. using uncertainty avoidance to reduce power distance. with significant power distance. consistent with underlying cultural values in a country. with more consistent time orientation. |
d |
|
Changes in tariffs and quotas are business actions stimulating imports. corporate strategies designed to maximize profits. government actions that reduce competition from international firms. efforts to stimulate choices among government agencies. a means of slowing outsourcing. |
c |
|
Exchange controls refers to the regulation of a country’s comparative inflation rate. countertrade exchange. quota rate of exchange. exchange tariffs. currency exchange rate. |
e |
|
When firms pool their resources to enter a new market, they create a(n) franchise. export promotion. joint venture. direct investment. strategic alliance. |
c |
|
Which of the following is a potential negative factor for foreign investment in China? China’s population is aging rapidly. China drastically restricts the goods it allows U.S. companies to export to China. China’s standard of living has dropped over the past 30 years. China has imported fewer goods from the U.S. each year for the past decade. Chinese consumers are not interested in purchasing products from the U.S. |
a |
|
The term "trade deficit" refers to a country that exports more goods than it imports. an indicator of the quality of life in a country. a level of population growth that impacts exports. the sum of all goods and services handled in a country. higher levels of imports than exports. |
e |
|
When entering a foreign market, the least risky strategy is franchising. exporting. joint venture. direct investment. strategic alliance. |
b |
|
As part of efforts to stimulate economic development in Africa, the Gates Foundation announced that it would provide cellular phones to farmer cooperatives. The Gates Foundation recognized problems in __________ exist in many African markets. transportation communication distribution commerce population |
b |
|
Many of the best-known American retailers, like Starbucks and McDonalds, have expanded globally using franchising. exporting. joint ventures. direct investment. strategic alliances. |
a |
|
Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that countries with high purchasing power today may not continue to show the same growth in the future. the United States and Western Europe will have dramatic increases in population growth leading to overcrowding. the middle class in India will continue to shrink as the rich get richer and the poor get poorer. urban population centers will become increasing unattractive and the rural areas will experience major growth in population. the global population is expected to grow at staggering rates indefinitely. |
a |
|
According to purchasing power parity theory, if __________ is/are in equilibrium, products will cost the same in each country. imports and exports consumer spending interest rates domestic products exchange rates |
e |
|
Which of the following is one of the global entry strategies? Direct investment Countertrade Offshoring Infrastructure development Trade agreements |
a |
|
Geert Hofstede’s cultural dimensions concept focuses on five dimensions of __________ in a country. symbols underlying values ceremonies dress visible artifacts |
b |
|
Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada, and Mexico? NAFTA EU CAFTA Mercosur ASEAN |
a |
|
Brands can be extremely valuable domestically, but international use can be challenging. Companies can help to overcome language difficulties in using brands by keeping the brand name the same in all languages, regardless of meanings, as long as the brand logo and symbol are displayed prominently. avoiding the use of the brand name in advertising and focusing on feature and benefits. translating advertising copy for the entire ad except the brand name. developing brand names that are meaningless in known languages. adhering to the UN Convention on Naming Rights. |
d |
|
Ford Motor Company decided to sell the Fiesta around the globe. Which of the following would be an example of glocalization of the Fiesta? The same product design and features, and the same basic promotional campaign, used in all countries. Variations in the product design country by country, with the same basic promotional campaign used in all countries. The same product design and features in all countries, with variations in the promotional campaigns country by country. Variations in the product design and the promotional campaign country by country. The same marketing mix for all of the four Ps used in all countries. |
c |
|
Global pricing strategies should be consistent with offshore distribution facilities. cost of materials. positioning strategies. domestic pricing. trade surplus guidelines. |
c |
|
Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is willing to limit his control of international stores. Gerald will likely use a(n) __________ strategy. franchising exporting joint venture direct investment strategic alliance |
a |
|
Chris is gathering information about the general economic environment in Nepal. He will look for information about the general economic environment, population size and growth rate, and culture. real income. airport capabilities. political situation. religious institutions. |
b |
|
Which of the BRIC countries has the highest illiteracy rate? India Brazil Russia Italy China |
a |
|
Which of these trade agreements represents the highest level of integration among participating nations? NAFTA EU GNI ASEAN CAFTA |
b |
|
Global businesses often find it particularly difficult to understand the __________ of a country’s culture. symbols underlying values ceremonies dress visible artifacts |
b |
|
Cultural nuances, subcultures, and consumers’ different views of their roles in different countries can make __________ complicated. purchasing power parity segmentation, targeting, and positioning trading bloc coordination exchange control planning reducing trade surpluses |
b |
|
Globalization refers to the process by which goods, services, capital, people, and ideas are onshored and offshored. flow across national borders. are integrated through IMF facilitation. form joint ventures. affect corporate culture. |
b |
|
Which of the following is currently a negative factor for foreign investment in India? India’s population is fairly old and aging fast. India’s infrastructure for supply chain management is not up-to-date. India prevents foreign investors from entering into joint ventures. India has no shopping malls or other large commercial centers. India lacks a skilled workforce. |
b |
|
Culture affects how consumers decide to make their purchases. what consumers decide to purchase. when consumers decide to make their purchases. where consumers decide to make their purchases. every aspect of consumers’ purchase decisions. |
e |
|
Which statement about India’s population is TRUE? With a median age of 61, India has one of the oldest populations in the world. India’s young people mostly live in rural areas in large families. India’s workforce is highly skilled, particularly in technology. India claims more than 25% of the world’s population. Most Indian citizens shop in large retail outlets. |
c |
|
What do the BRIC countries have in common? They participate together in a trading bloc. They have suffered more than most other countries in the recent recession. They are Asian countries experiencing explosive population growth. They are the four countries known for the highest levels of bribery in business and government. They are experiencing significant levels of economic growth. |
e |
|
Which of the following is currently a negative factor for foreign investment in Russia? The Russian population is poorly educated. Russian consumers have little interest in online shopping. Russia is known for corruption, particularly bribe taking in business negotiations. Russian consumer markets are saturated, offering few opportunities for goods from U.S. companies to sell well. Few Russians have access to the Internet due to heavy regulation. |
c |
|
Global segmentation, targeting, and positioning (STP) is more complicated than local STP because consumers may view their roles differently in different countries. there are fewer franchising opportunities in global markets. global consumer markets are almost totally homogeneous, making segmentation difficult. most governments have rules against targeting consumers. positioning almost always fails when attempted in a foreign country. |
a |
|
Manufacturers would prefer to produce in a country with a trade __________, because it signals a greater opportunity to export products to more markets. surplus deficit culture bonus balance |
a |
|
Tariffs, quotas, and currency exchange policies affect global offshore product design. pricing strategies. advertising. logistics. promotion. |
b |
|
Which of the following global entry strategies is being used if a company collaborates with a competitor on a globally based opportunity for mutual benefit, but the competitors do not invest in each other? Strategic alliance Joint venture Franchising Direct investment Equity partnership |
a |
|
When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of a tariff. a boycott. overseas consolidation. globalization. franchising. |
a |
|
The process by which goods, services, capital, people, information and ideas flow across national borders is referred to as globalization. offshoring. world trade. internationalization. exporting. |
a |
|
If a firm wants to conduct a country market analysis, it must look at major economic factors using well-established metrics. Which of the following is NOT a major economic factor that the firm would consider? General economic environment Trade agreements Market size Population growth Real income |
b |
|
Because the United States imports more goods than it exports, it operates under a(n) trade surplus. trade deficit. import surplus. export deficit. imbalanced trade agreement. |
b |
|
The most widely used metric used to gauge the size and market potential of an economy is _____ , which is defined as the market value of the goods and services produced by a country in a year. the consumer price index purchasing power parity the producer price index gross national income gross domestic product |
e |
|
Firms prefer to manufacture in a country that has _____ because it signals a greater opportunity to export products to more markets. a trade deficit a trade surplus low gross domestic product a low level of exports purchasing power parity |
b |
|
_____ includes both the market value of the goods and services produced by country in a particular year plus the net income earned from investments abroad. The trade deficit The human development index Gross domestic product Gross national income Purchasing power parity |
d |
|
Basket Weavers, Inc ships their prized bread basket to two countries (countries A and B) where the exchange rates are in equalibrium. If Suzy purchases the basket in country A and her friend purchases in country B for the same price this is an example of which of the following metrics? Trade deficit Human development index Gross domestic product Gross national income Purchasing power parity |
e |
|
In terms of market size and population growth rate, which of the following is a trend that is occurring in the world market that impacts the marketing of goods and services? Global population growth is equally dispersed among nations. Growth has been relatively equal for both developed and less developed nations. Marketing to more rural populations is more costly than reaching urban areas. The growth rate of the world population will remain relatively constant in the future. Population shifts are causing a decline in the percentage of people in the middle class. |
c |
|
Anita is conducting a country market assessment, and is focusing on four key elements: distribution channels, transportation systems, communication systems, and commerce. In doing so, Anita is evaluating which component of the market assessment? government actions urbanization infrastructure economic analysis sociocultural analysis |
c |
|
The United States wants to limit the amount of a product that can be imported into the country for a period of time by setting a maximum import quantity. In order to do so, the United States should institute a quota. an exchange rate. a boycott. a tariff. a dumping law. |
a |
|
The measure of how much one currency is worth in relation to another is referred to as real income. gross national income. purchasing power parity. the exchange rate. the trade gap. |
d |
|
All of the following are major existing trade agreements EXCEPT NAFTA. Mercosur. CAFTA. Eurobond. ASEAN. |
d |
|
Which of Hofstede’s cultural dimensions relates to a willingness to accept social inequality as natural? Time orientation Masculinity Individualism Uncertainty avoidance Power distance |
e |
|
Which of the following accurately represents the countries that make up what is known as the BRIC countries? Britain, Russia, Italy, and China Brazil, Russia, India, and China Belgium, Romania, Ireland and the Czech Republic Brazil, Russia, Indonesia, and Chile Bolivia, Romania, India, and Columbia |
b |
|
If a small business wants to take the least risky strategy to enter its first foreign market, it would choose which of the following global entry strategies? Exporting Franchising Joint venture Strategic alliance Direct investment |
a |
|
_____ involves a binding contractual agreement between two businesses whereby the marketing operations are tightly controlled and often standardized. Exporting Franchising Joint venture Strategic alliance Direct investment |
b |
|
Although they do not directly invest in one another, independent firms entering into collaborative partnerships to expand globally are called franchises. joint investments strategic alliances. direct investments. indirect investments. |
c |
|
A(n) _____ forms when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared. franchise joint venture strategic alliance direct investment indirect investment |
b |
|
BMW, the German company that manufactures automobiles, motorcycles, and other products, owns and operates a manufacturing plant in Spartanburg, South Carolina in the United States. This is an example of which global entry strategy? Franchise Joint Venture Strategic Alliance Exporting Direct Investment |
e |
|
Which global entry strategy has the highest degree of risk? Exporting Direct investment A strategic alliance Franchising A joint venture |
b |
|
The global product strategy a firm chooses depends on advertising restrictions. exchange rates. export/import requirements. the needs of its target market. tariffs. |
d |
|
Although China represents one of the largest markets for soup in the world, Campbell’s Soup Company had to invest considerable time and effort in making changes to its existing products because Chinese people are accustomed to preparing their soup fresh. This is an example of ______________ cultural differences. economic development. pricing strategies. distribution systems. communication strategies. |
a |
|
In the process of ______, companies initially develop products for niche or underdeveloped markets, and then expand them into their original or home markets. localization reverse innovation franchising niche marketing globalization |
b |
|
In pricing products in parts of Europe, including Italy, Spain, Greece and France, U.S. companies need to be aware that sales (i.e. temporary promotional discounts) must be advertised. must last for three weeks. are illegal. must be at least 30% off. are allowed only twice per year. |
e |
|
The fact that Mercedes-Benz is known by three Chinese names in Asia—peng zee in Cantonese for Hong Kong, peng chi in Mandarin for Taiwan, and ben chi in Mandarin for mainland China—illustrates the importance of developing different _____ for global markets. cultural differences service strategies pricing strategies distribution systems communication strategies |
e |
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