MKTG 445 Final Exam | Complete Solutions, Latest Version

MKTG 445 Final Exam | Complete Solutions, Latest Version ________ is defined as a contractual arrangement whereby one company makes a legally protected asset available to another company in exchange for some form of compensation. A. Foreign direct investment (FDI) B. Contract manufacturing C. Equity stake D. Joint venture E. Licensing One of the key advantages to licensing as a market-entry strategy is ____________________. A. the speed of diffusion of the new product or technology B. increased market share C. brand awareness D. enabling a company to "borrow" another company's resources E. elimination of competition Considering a licensee is typically a local business, what is the main benefit of a licensing agreement? A. Avoidance of barriers for foreign companies doing business B. Expanded market control C. Reduced competition D. Corporate control E. Positioning Which of the following has the greatest appeal to local entrepreneurs who are anxious to learn and apply Western-style marketing techniques? A. Franchising B. Subsidiaries C. Joint ventures D. Licensing E. Mergers Which of the following is a general term that refers to capital that flows out of the home country as companies invest in plants, equipment, and other assets? A. Joint ventures B. Equity stake C. Mergers and acquisitions D. Foreign direct investment (FDI) E. Greenfield investment Which of the following terms refer to the startup of new operations? A. Acquisition B. Joint venture C. Greenfield investment D. Equity stake E. Full ownership Benefits of a joint venture entry strategy include sharing of risk, a good way to learn about a new market environment, and ________. A. encouraging contract manufacturing B. establishing a franchise program C. an acquisition tool D. allowing partners to achieve synergy E. creating a licensing agreement What did Anheuser-Busch find was critical to success in the Japanese market? A. Market share B. Joint ventures C. Licensing agreements D. Access to distribution E. Brand awareness When forming a global strategic partnership (GSP), which of the following factors is considered critically important? A. Learning from partners B. Common pursuit of market leadership C. Similar organizational structures D. Profitability E. Vertical relationship structure One of the risks of forming a global strategic partnership (GSP) is that although partners are pursuing mutual goals in some areas, they are potentially ________. A. competitors in other areas B. compromising in other areas C. looking around for an acquisition opportunity D. creating profits in other areas E. licensees in other areas Which of the following refers to a method of guarding against unintended transfers of technology in a GSP? A. Transparency limitation B. Collaboration section C. Corporate amnesia D. Non-compete clauses E. Agreement of confidentiality Which of the following is a major problem in connection with joint ventures in developing countries? A. Unwillingness of governments to approve joint ventures B. Outdated regulatory and legal systems C. Lack of understanding of the scope of global strategic partnerships D. Increased tariffs on a joint venture E. Lack of sufficient labor For the home company, which of the following is one of the goals of a global strategic partnership (GSP)? A. Improved infrastructure B. Reducing the number of employees C. Market access D. Subsidies E. Government incentives ________ represents a special category of cooperative strategy in Japan that has been described as "a fighting clan in which business families join together to vie for market share." A. Zaibatsu B. Keiretsu C. Fuyo Group D. Mitsubishi E. Mitsui Group Toyota is the largest single firm in Japan. Toyota is primarily an automobile manufacturer but controls many companies in their supply chain. Which type of cooperative strategy does this represent? A. Chaebol B. Global Strategic Partnerships (GSPs) C. Joint ventures D. Zaibatsu E. Keiretsu Which of the following best describes American businesses' major concern with Japanese-affiliated manufacturing in the U.S.? A. Keiretsu alliances result in higher prices to Japanese consumers. B. Keiretsu is similar to a labor union in the United States. C. Keiretsu is competition to U.S. industry. D. The majority of suppliers are members of keiretsu, not American companies. E. This type of alliance is long-term. Which of the following is credited with being the driving force behind South Korea's economic growth between 1960 and 1990? A. Zaibatsu B. Chaebol C. Keiretsu D. U.S. financial aid E. President Kim Dae Jung Why are South Koreans concerned about chaebol? A. Failure of chaebol companies to diversify B. The influence of government over private industry C. Limited employment option D. Stunted national economic growth E. The amount of economic power it wields A(n) ________ is a grouping of firms in different industries and countries held together by common goals that encourage them to act as a single firm. A. consortium B. corporation C. relationship enterprise D. super alliance E. virtual corporation Which of the following is a U.S. technology alliance created to keep the U.S. chip-industry from losing market share to Japan? A. Sematech B. Intel C. Microsoft D. General Motors E. Proctor & Gamble Which of the following market expansion strategies involves targeting a limited number of customer segments in a few countries? A. Country diversification and market concentration B. Country concentration and market diversification C. Country and market concentration D. Country and market penetration E. Country and market diversification Harley-Davidson has assembly plants in India and Brazil and plans to open one in Thailand and will continue to target, on a global basis, "old guys" who want to hit the open road. This is what type of expansion strategy? A. Product and country expansion B. Country and market diversification C. Country concentration and market diversification D. Country diversification and market concentration E. Country and market concentration Which of the following market expansion strategies is used by most global or transnational companies? A. Country concentration and market diversification B. Country and market concentration C. Country and market diversification D. Country diversification and market concentration E. Market penetration and market diversification Which of the following market expansion strategies could be used for an American company wanting to diversify within the United States rather than going global? A. Country and market diversification B. Country and market concentration C. Country diversification and market concentration D. Country concentration and market diversification E. Product expansion Chapter 10 Product attributes, both tangible and intangible, must be translated into ___________ for a product strategy to be successful. A. cultural preferences B. English C. the perception of luxury D. benefits that match needs and wants E. convenience to the customer Which of the following components of a product is designed to engage the senses, make an emotional connection, and enhance the consumer's brand experience? A. Express warranty B. Labeling C. Aesthetics D. Packaging E. Product warranties Why has the warranty program been important to Hyundai sales in the U.S.? A. Competitors don't offer warranties. B. The warranty justified the high cost. C. Hyundai's warranty program received media attention. D. Korean cars were initially perceived as cheap. E. Americans won't buy cars without a warranty. What was specifically designed for Coca-Cola to differentiate Coke from other soft drinks? A. Unique bottle shape and texture B. Product flavor C. Premium pricing D. Freshness guarantee E. The label ________ is defined as perceptions about a brand as reflected by brand associations that consumers hold in their memories. A. Brand value B. Brand image C. Branding D. Brand equity E. Brand awareness Which of the following refers to a type of brand that has achieved success in a single national market? A. Transformed brand B. Local brand C. Generic brand D. International brand E. Global brand Which of the following BEST describes a global brand? A. A brand that has found success in a single national market B. A brand created by a global company and distributed in more than one country C. A brand that is offered in several markets in a specific region D. A brand that uses the same name and has a similar positioning throughout the world E. A brand created by a global company to meet the needs of a local market Coca-Cola bottles and distributes Deep RiverRock drinking water in Ireland and Great Britain. Dasani is marketed in the U.S. These are examples of which of the following? A. Tiered brand B. Local brand C. Global brand D. Co-brand E. International brand Which of the following naming strategies is best for a company pursuing a global brand identity? A. Distinctive names for each local market B. One name in the home country and another in other countries C. Co-branding D. Same name throughout the world E. Different names for each regional market The internal motivation driving demand for status-oriented products is based on which of the following levels of Maslow's needs hierarchy? A. Safety B. Physiological C. Esteem D. Social E. Self-actualization While the functionality of the refrigerator is to keep foods and beverages cold, in some developing countries ownership of a refrigerator is a status symbol. In this case, the refrigerator serves ______________________. A. a primary function B. social needs C. self-actualization D. safety needs E. a secondary purpose A modified hierarchy has been proposed for Asia where the top three levels of affiliation, admiration, and status each emphasize ________. A. social needs B. self-actualization C. physiological needs D. psychological needs E. personal esteem Some consumers flaunt their wealth or status by buying expensive products that others will notice. The marketing term for this is ________. A. premiumisation B. status symbols C. admiration-based D. status seeking E. luxury badging Because esteem needs are universal, any company with a premium product or brand that has proved itself in a local market by fulfilling esteem needs should __________. A. also consider the market's physiological needs B. grow the brand by market penetration C. devise a strategy for mass production D. devise a strategy for taking the product global E. be wary of globalization McDonald's and Coca-Cola have focused on which of the following needs to create global brand franchises? A. Safety and esteem B. Social and safety C. Physiological and social D. Physiological and safety E. Esteem and self-actualization ________ is defined as perceptions about and attitudes towards particular countries, which extend to products and brands known to originate in those countries. A. Foreign consumer cultural positioning B. Global consumer cultural positioning C. Global brand leadership D. Country-of-origin effect E. Country stigma Why do consumers in India prefer European products like Coach and Louis Vuitton over "Made in India" products? A. Products made in Europe carry a great appeal as symbols of success. B. Indian products are too bright and colorful. C. The Indian consumers want to take advantage of new accessibility. D. Indian products are more expensive than imported products. E. Indian products are of low quality. In 2008, Apple introduced the second-generation iPhone to 21 countries simultaneously using the same message and promotional appeals used in the United States. This is an example of __________. A. product-communication extension (dual extension) B. innovation C. product-communication adaptation (dual adaptation) D. product extension-communication adaptation E. product adaptation-communication extension Which of the following is the strategic alternative where both the product and at least one of the promotional elements are adapted for a particular country market? A. Product-communication adaptation (dual adaptation) B. Innovation C. Product adaptation-communication extension D. Product extension-communication adaptation E. Product-communication extension (dual extension) Which of the following is the strategic alternative where the product is adapted to local preferences while the home-market promotional strategy or brand name is used? A. Product-communication adaptation (dual adaptation) B. Product extension-communication adaptation C. Innovation D. Product adaptation-communication extension E. Product-communication extension (dual extension) Which of the following approaches is best suited to a global market where there is need but not the needed purchasing power to buy either the existing or adapted product? A. Innovation B. Product-communication adaptation (dual adaptation) C. Product adaptation-communication extension D. Product-communication extension (dual extension) E. Product extension-communication adaptation Which of the following is a type of innovation that could be described as a "game-changer"? A. Continuous innovation B. Platform innovation C. Dynamically continuous innovation D. Line extension innovation E. Discontinuous innovation In which of the following innovation categories do products share certain features with earlier products while incorporating new, added-value features? A. Discontinuous innovation B. Dynamically continuous innovation C. Continuous innovation D. Product transformation E. Disruptive innovation Research, design, and testing are each a part of ________. A. extension strategy B. the not-invented-here (NIH) syndrome C. global product planning strategic alternatives D. country-of-origin effect E. the new-product continuum Chapter 11 What is the "law of one price" in global marketing? A. Internet prices vary for each market. B. All customers in the market get the best product available for the best price. C. It relies on dynamic pricing. D. Each product is priced the same in every market. E. There is one price in the home market and another in all other foreign markets. Which of the following has had the greatest impact on global price transparency? A. NAFTA B. The European Union C. The Internet D. The World Trade Organization (WTO) E. The United Nations Apple introduced the iPhone X by pushing the limits of pricing at $1,000. What pricing strategy is Apple using? A. Import pricing B. Cost-based pricing C. Premium pricing D. Captive pricing E. Market penetration pricing An HP color printer for home use retails for $89. A set of compatible ink cartridges sells for $79. The average home-office will use one set of cartridges each month. This is what type of pricing strategy? A. Export pricing B. Captive pricing C. Market skimming D. Market penetration E. Cost-based pricing In many emerging markets, P&G uses "reverse engineering" where product attributes and manufacturing processes are adjusted to meet various pricing targets. This example of target costing serves which of the following pricing strategies? A. Flexible cost-plus pricing B. Penetration pricing C. Design to cost D. Rigid cost-plus pricing E. Price skimming The main disadvantage of ________ is that it ignores demand and competitive conditions in the target markets. A. market penetration pricing B. companion pricing C. market skimming pricing D. cost-based pricing E. rigid cost-plus pricing In principle, which of the Incoterms affords the buyer maximum control over the cost of transporting the goods? A. Free alongside ship (FAS) B. Free on board (FOB) C. Delivered duty paid (DDP) D. Ex-works (EXW) E. Free carrier (FCA) In which of the categories of Incoterms does the seller agree to deliver goods to the buyer in the country of import, with all costs, including duties, paid by the seller? A. Ex-works (EXW) B. Free carrier (FCA) C. Free alongside ship (FAS) D. Delivered duty paid (DDP) E. Free on board (FOB) One way for a country to curb runaway inflation is to ________. A. subsidize domestic products B. impose price controls C. discourage exporting D. encourage dumping E. increase manufacturing capacity Which of the following was established to keep pace with a volatile financial environment? A. Estimated future cost method B. Increased prices C. Shelf pricing D. A rigid cost-plus pricing policy E. Unit pricing A market holding strategy is often used in response to unfavorable ________. A. increased tariffs B. government subsidies C. competitive prices D. currency swings E. inflation Which of the following is the major reason a domestic manufacturer will switch to offshore sourcing? A. Offshore sourcing provides job opportunities in other countries. B. Offshore sourcing keep costs and prices competitive. C. Offshore sourcing typically improves brand image. D. Offshore sourcing typically produces a better quality product. E. Offshore sourcing typically reduces distribution costs. A large pizza at Pizza Hut in Seattle is $10. In Sao Paulo the same pizza is $30USD. What pricing policy is Pizza Hut using for pricing decisions? A. Polycentric B. Extension C. Ethnocentric D. Geocentric E. Global Which of the pricing alternatives calls for a per-unit price of a product to be the same no matter where in the world it is being sold? A. Adaptation pricing B. Extension pricing C. Geocentric pricing D. Corporate pricing E. Polycentric pricing Which of the pricing approaches is the most dynamic and proactive, taking into account the need for profitability as well as local factors of buying behavior? A. Cost-based pricing B. Polycentric C. Ethnocentric D. Adaptation E. Geocentric Gray market goods are exported from one country and enter another country through ________. A. a quota system B. parallel importing C. preferential trade agreements D. price transparency E. government subsidies Gray markets flourish when ________. A. a product is in short supply B. supply exceeds demand C. a penetration pricing strategy is used D. ethnocentric pricing policies are used E. there is a low margin on goods Which of the following is an approach used to avoid antidumping laws? A. Increase supply B. Increase prices C. Differentiate the product or product category D. Avoid doing business with countries that have dumping laws E. Lower overall prices In general, what impact does dumping have on global consumer prices? A. There is no impact on consumer prices B. Consumer prices increase C. Consumer prices are lower to be competitive D. Quotas are established E. Taxes and tariffs increase In ________, competitors within an industry that make and market the same product conspire to keep prices high. A. gray marketing B. dumping C. horizontal price fixing D. parallel importing E. free riding What is the underlying purpose of price fixing? A. To drive competitors out of business B. To create consumer demand C. To increase market share D. To ensure higher prices E. To offer lower prices to the consumers Why do companies that make every effort to comply with applicable laws and regulations often find themselves in tax court over transfer pricing? A. It can be perceived as tax avoidance. B. It is perceived as a form of price fixing. C. It is perceived as a potential for dumping. D. It is seen as an unfair trade practice. E. It is not transparent. Transfer pricing refers to ________. A. intracorporate exchanges B. intercompany sales C. transfer of goods from one retailer to another D.