FIU MAR4156 Final exam

Question 1 Business-to-business marketers frequently misinterpret the concept of quality. Which of the following examples best illustrates this idea? Farmers in developing countries often prefer less-efficient but easier-to-maintain products. Accountants in the Middle East often use the abacus rather than a calculator. Some Japanese firms do not do business with many U.S. suppliers because their packaging is faulty. Products that are imported into a country are usually customized for the users in the country. ISO 9000 standards are universally accepted as a guarantee of the suitability of products in consumer applications.

Question 2 In the case of cellular phones, the physical product is practically given away to gain the phone services contract. This could be because: the cellular phone company does not view market share as a strategic goal. the cost of production of the cellular phone is very low. the revenues from associated services exceed the revenues from the cellular phone. the margins on after-sales services for the cellular phones is low. consumers sometimes buy a variety of services that are not associated with products.

Question 3

The Global Harmonization Task Force is an international effort that is attempting to:

		synchronize standards for several international industrial sectors.
		promote free trade among developing and developed nations.
		equalize wages among countries.
		increase double testing of goods and services.
		equalize the perception of quality across countries. The U.S. Department of Commerce participates in programs to promote U.S. standards and is active in the development of the Global Harmonization Task Force, an international effort to harmonize standards for several industry sectors.

Question 4

The ISO 9000 certification will allow a company to:

		hedge its risk from currency fluctuations.
		increase its revenues from associated services.
		diversify into other product lines.
		differentiate its product from its competitors.
		provide after-sales services.

Question 5

For managers selling capital equipment and big-ticket industrial services, understanding the concept of _____ is absolutely fundamental to their success.

		kinked demand
		full cost pricing
		cost plus pricing
		derived demand
		postponed demand

Question 6

Assuming that the international marketer has produced the right product, used the proper channel of distribution, and promoted the good correctly, the effort can fail badly if the international marketer fails to:

		inform the host government of all its marketing objectives.
		set the right price for the goods or services.
		work with trade union representatives.
		consider the environmental impact of its goods or services.
		work on a franchise basis in the country.

Question 7

Which of the following is true of countertrading?

		Frequently there is inadequate time to conduct a market analysis in a countertrade negotiation.
		Identifying countries that have a history of countertrading is one of the major problems with countertrades.
		The use of countertrading to sell a good implies that the demand for the good is highly elastic.
		Countertrading does not benefit countries that face a shortage of hard currencies with which to trade.
		The U.S. dollar is the reserve currency that is used in countertrades.

Question 8

The creation of a free trade zone leads to:

		a decline in exports.
		an increase in taxes and duties levied on a good.
		reduced price escalation.
		a fall in imports.
		higher labor costs and overheads.

Question 9

A _____ policy is used to stimulate market and sales growth by deliberately offering products at low prices.

		penetration pricing
		variable-cost pricing
		premium pricing
		price skimming
		full-cost pricing

Question 10

_____ is a typical payment procedure for established customers where the goods are delivered, and the customer is billed on an end-of-the-month basis.

		An open account
		A letter of credit
		A bill of exchange
		Cash in advance
		Forfaiting

Question 11

In Russia, products are divided into two categories- "ours" and "imported." This is an example of:

		cultural revisionism
		ethnocentrism
		conversion to capitalism
		communist mentality
		structural marketing orientation

Question 12

Omega appliances, a Korean company that manufactures kitchen appliances had to alter the design of its chimneys to suit the needs of the consumers in its Japanese market. The Japanese preferred compact and efficient appliances to fit their small kitchens. The component of the product that had to be altered in the above scenario is the _____.

		packaging component
		functional component
		core component
		technical component
		support services component

Question 13

According to the product component model, installation, repair and maintenance, deliveries, and warranties are all part of the _____ component of the product.

		core
		support services
		packaging
		functional
		global

Question 14

The Red Lobster seafood restaurant is considering opening branch operations in China. However, the restaurant chain's labor union has already pointed out a potential problem with this expansion. In China, it is considered to be in bad taste to allow employees to collect tips for service. Since a great portion of a typical wait-staff person's compensation comes in the form of tips, the union would like to know how employees would be compensated for this loss. The above example illustrates which of the following barriers a consumer services marketer faces in a foreign market?

		Protectionism.
		Controls on transborder data flows.
		Protection of intellectual property.
		Cultural requirements for adaptation.
		Language translation barriers.

Question 15

Adore cosmetics had to increase the SPF value of their sunscreen lotions marketed in the Middle East to provide more protection against UV radiation. Which of the following factors is dictating product adaptation in the above scenario?

		Legal requirements.
		Cultural requirements.
		Economic requirements.
		Climatic requirements.
		Political requirements.

Question 16

A(n) _____ is a domestic middleman set up in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property.

		Webb-Pomerene export association
		manufacturer's export agent
		export management company
		complementary marketer
		foreign sales corporation Question 17 Sixty percent of the Japanese population lives in the _____ market area, which essentially functions as one massive city. Tokyo-Nagoya-Osaka Komaki-Tokoname-Kariya Nagoya-Handa-Seto Nishio-Okazaki-Inazawa Inuyama-Nisshin-Takahama

Question 18

Complementary marketing is commonly known as _____.

A. backhauling

B. demand shifting

C. piggybacking

D. shape shifting

E. skimming

Question 19

Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of channel strategy?

		Character
		Continuity
		Control
		Cost
		Capital requirement

Question 20

_____ are considered to be the foundation of the Japanese distribution system.

		Consumers
		Brokers
		Manufacturers
		Small retailers
		Wholesalers

Question 21

All of the following are specific objectives of sales promotion EXCEPT:

		immediate purchase.
		consumer introduction to the store.
		gaining retail point-of-purchase displays.
		building brand loyalty.
		encouraging stores to stock the product.

Question 22

Meta Garbon, a manufacturer of sports bicycles, in a bid to tap the enormous market for bicycles in China promote their cycles as premium sporting and leisure bicycles. They use various cycling legends and sports celebrities as brand ambassadors, and use television, radio, and newspapers as media. Bicycles in China are used mainly by the working class for commutation, and the main users of bicycles did not relate to Meta Garbon's products and the promotional campaign was a failure. During which of the following steps of the IMC process did Meta Garbon go wrong?

		Information source selection.
		Selection of message channel.
		Encoding.
		Decoding.
		Noise cancellation

Question 23

The emergence of pan-European communications media will most likely cause companies to:

		opt for localized promotional campaigns.
		opt for greater customization of promotional efforts.
		promote their products only in English.
		use only Internet as their message channel.
		choose more standardized promotional efforts.

Question 24

In the context of integrated marketing communications, in many markets, the availability of appropriate _____ to customers can determine entry decisions.

		demonstrations
		cultural appeal
		technological aid
		services
		communication channels

Question 25

Which of the following steps of a communications process is important as a check on the effectiveness of the other steps?

		Selecting a proper message.
		Encoding the message.
		Selecting an appropriate channel of communication.
		Decoding the message.
		Feedback.

3.33333 points

Question 26

In the context of the rewards from work, Japanese and American salespersons are similar barring one aspect which the Japanese rate as more important than their American counterparts. Identify this aspect.

		Job security
		Promotion
		Accomplishments
		Social recognition
		Personal growth and development

Question 27

Considering the specific characteristics of Japan's culture, which of the following strategies would be most successful in motivating employees in Japanese organizations?

		Individual commission systems
		Group bonus schemes
		Company cars
		Birthday gift vouchers
		Best employee awards

Question 28

Which of the following is an advantage of virtual expatriates?

		They can bond well and work better with their subordinates in the foreign country.
		They can establish closer relationships with their customers in the foreign country.
		Their families do not have to be uprooted from their home country.
		They possess complete local knowledge about cultural practices in the foreign country.
		They can avoid cross-cultural communications problems with their foreign colleagues.

Question 30

Which of the following is a characteristic of a professional expatriate?

		They work abroad for a period of one month and then return to the home office.
		They work for a foreign company in a third country for a short period.
		They work abroad in country after country for the greater part of their careers.
		They work in their home branches for most of their careers.
		They manage operations in other countries but do not move there.