GLOBAL MARKETING MKTG 022 A+ GRADED

1) The market development strategy involves seeking new customers by introducing existing products or services to a new market segment. Answer: TRUE Difficulty: Easy Chapter LO: 1 AACSB: Reflective thinking Course LO: Discuss the fundamental concepts of marketing 2) Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. This is an example of Market Penetration. Answer: TRUE Difficulty: Moderate Chapter LO: 1 AACSB: Reflective thinking Course LO: Discuss the fundamental concepts of marketing 3) The perceived value equation can be represented as Value = Price/Benefits. Answer: FALSE Difficulty: Easy Chapter LO: 2 AACSB: Analytical thinking Course LO: Discuss the fundamental concepts of marketing 4) Companies can increase prices if costs are low because of process efficiencies in manufacturing. Answer: FALSE Difficulty: Easy Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 5) If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered as a lack of strategic focus and missed opportunity. Answer: FALSE Difficulty: Moderate Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 6) The Yugo automobile achieved a modest level of U.S. sales in the 1980s despite a "don't buy" rating from a consumer magazine. Answer: TRUE Difficulty: Easy Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 7) Walmart's recent exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as "hard discounters." Answer: TRUE Difficulty: Moderate Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing