MKTG 4280 Exam 2 (Quiz Questions + Study Guide)

When is the use of secondary data especially useful for researching a market?

 

When existing data doesn't answer the basic research questions the marketer wants addressed

 

When the market is too small to justify a large commitment of time and money

 

When a single measure will yield more accurate measures than multiple indicators

 

When published statistics and studies are out of date or don't apply to a market segment

When the market is too small to justify a large commitment of time and money

 

For consumer products, when would qualitative research be especially useful?

 

When data is more important than opinions

 

When data is combined with existing reports on purchase intention

 

When there is a strong core-brand equity already established

 

When describing social and cultural contexts of consumer behaviors

 

When describing social and cultural contexts of consumer behaviors

A Safe Harbor agreement establishes principles for privacy protection.

 

True

 

False

True

What is the first step in the market research process?

 

Define the problem to be addressed.

 

Determine what information is needed.

 

Select the unit of analysis.

 

Examine the availability of existing data.

 

Determine what information is needed.

What is typical of many global firms in terms of organizational structure?

 

Decisions are made in regional silos.

 

A less centralized decision-making structure is used.

 

More layers of management are added as firms reach new markets.

 

The flow of information between departments has decreased because of the use of technology.

A less centralized decision-making structure is used.

Which of the following is the U.S. government's most comprehensive source of world trade data?

 

National Trade Data Base (NTDB)

 

Census Bureau

 

Bureau of Economic Analysis

 

Gross Domestic Product (GDP)

National Trade Data Base (NTDB)

Customer relationship management tools allow companies to determine which customers are most valuable and to react in a timely manner with customized products and service offerings that closely match customer needs.

 

True

 

False

True

For research, the unit of analysis can be a single country or region. Why isn't countrywide data required for all market-entry decisions?

 

Regional data can be extrapolated into countrywide data after it is collected.

 

Global managers can better understand cross-cultural assumptions of a region.

 

Research for countrywide data is complex and costly to accumulate.

 

Research should focus on the specific segment of interest.

Research should focus on the specific segment of interest.

Why is direct sensory perception needed when trying to understand what is going on in a particular country?

 

It allows managers to apply home-country strategies to international issues.

 

It provides context that helps fill in the big picture.

 

It increases the effectiveness of environmental scanning.

 

It allows data in data warehouses to be applied directly to the issues.

It provides context that helps fill in the big picture.

An "incipient market" is a market that will emerge if a particular economic, demographic, political, or sociocultural trend continues in a country.

 

True

 

False

True

When marketers study how people buy and use a product and engage with a brand on social media, what are they studying?

 

Segment simultaneity

 

Global elitism

 

User status

 

Behavior segmentation

 

Behavior segmentation

According to Pareto's law, which percentage of the company's revenues or profits are accounted for by 20 percent of a firm's products or customers?

 

50

 

60

 

70

 

80

80

When clustering national markets based on government regulation and policies, which type of segmentation is a marketer using?

 

Benefits sought

 

Psychographic

 

Behavioral

 

Environmental

Enviormental

Porsche AG uses the label "Top Guns" to describe one segment of its customers, namely those who care about power and control and who expect to be noticed. Such a profile would be based on which type of segmentation?

 

Demographic

 

Occupational

 

Psychographic

 

Behavioral

Psychographic

Which of the following is one of the most valuable and important macro indicators of market potential in consumer markets today?

 

Family size

 

Gender

 

Age

 

Income

 

Income

When would a company use a concentrated target marketing strategy?

 

When pursuing several mass markets around the world

 

When the need for product adaptation is minimal

 

When attempting to reach a niche segment

 

When pursuing multiple segments to achieve wider market coverage

 

When attempting to reach a niche segment

A market segment or country market characterized by weak competition may be a segment to avoid.

 

True

 

False

False

One of the advantages of targeting a market segment globally is that although the segment in a single-country market might be small, even a narrow segment can be served profitably if the segment exists in several countries.

 

True

 

False

True

India has the youngest demographic profile among the world's large nations.

 

True

 

False

True

Global marketers must determine whether a standardized or an adapted marketing mix is required to best serve the wants and needs of the consumers.

 

True

 

False

True

Which of the following is a government-imposed limit or restriction on the number of units or value of a product that can be imported?

 

Harmonized tariff system

 

Quota

 

Duties

 

Tariffs

Quota

In which way is export selling different than export marketing?

 

Export selling requires tailoring the product to the local market.

 

Price has to be reconsidered for each market being pursued in export selling.

 

In export selling, the promotional material stays the same regardless of the market.

 

When there are many competitors in the marketplace, export selling is required.

In export selling, the promotional material stays the same regardless of the market.

 

A visit to the export market should enable the company representative to develop a marketing plan in cooperation with the local agent or distributor including product modifications, pricing, advertising and promotion expenditures, and a distribution plan.

 

True

 

False

True

Attending a tradeshow enables company representatives to learn a great deal about competitors' technology, pricing, and depth of market penetration.

 

True

 

False

True

Tax incentives, subsidies, export assistance, and free trade zones are common support provided by governments to firms that engage in exporting.

 

True

 

False

True

The export marketer takes the domestic product "as is" and sells it to international customers.

 

True

 

False

False

The so-called "China triangle" includes which countries?

 

Hong Kong, Republic of China, and Singapore

 

Republic of China, Taiwan, and Hong Kong

 

Republic of China, Taiwan, and South Korea

 

Singapore, Hong Kong, and Republic of China

Republic of China, Taiwan, and Hong Kong

The sale of merchandise in export markets at unfair prices is known as which of the following?

 

Dumping

 

Countervailing

 

Tariff

 

Ad valorem

Dumping

Why are some countries developing free trade zones or special economic zones?

 

To allow trade without duties or tariffs

 

To block excessive imports

 

To facilitate exports

 

To facilitate agricultural goods in developing trade zones

To facilitate exports

Why are subsidies detrimental to free trade?

 

Subsidies allow for the exporting of goods at a lower rate than what it costs to produce them.

 

Subsidies punish individuals for exporting items their government disproves of.

 

Subsidiaries allow less competitive producers to displace competitive producers in world markets.

 

Subsidiaries promote governmental assistance to exporters in free trade zones.

Subsidiaries allow less competitive producers to displace competitive producers in world markets.

Which market strategy is an entry strategy for a single target country in which the partners share ownership of a newly created business entity?

 

Acquisition

 

Licensing

 

Franchising

 

Joint venture

Joint venture

Why would nations with emerging markets encourage foreign direct investment (FDI) in their countries?

 

FDI brings more consumer goods into the country.

 

FDI is critical to economic development.

 

FDI allows the country to enter larger, more developed markets.

 

FDI provides access to technology and processes.

FDI is critical to economic development.

A dynamic joint venture partner can evolve into a strong competitor.

 

True

 

False

True

Which of the following represents a market entry strategy whereby one company permits a foreign company to make use of its patents, know-how, technology, company name, or other intangible assets in return for a royalty payment?

 

A joint venture

 

One-hundred-percent ownership

 

Licensing

 

Exporting

 

Licensing

Why would a business use a contract manufacturing option when developing a new market?

 

Improved product design

 

Less financial and managerial resources commitment

 

More control over the new market

 

Consistent public image and branding

Less financial and managerial resources commitment

Which type of partnership is the most extensive form of participation in foreign markets?

 

Exporting

 

Licensing

 

Joint venture

 

Contract manufacturing

Joint venture

The driving force behind many business acquisitions is globalization.

 

True

 

False

True

What is one of the advantages of acquisition over a Greenfield investment?

 

It is less expensive.

 

It can be instantaneous.

 

Less integration is required.

 

Fewer activities require coordination.

It can be instantaneous.

Why might a company move from licensing or joint venture strategies to ownership?

 

To better manage cultural expectations of the new environment

 

To eliminate tariffs and other government regulations

 

To achieve faster expansion in a market

 

To protect trade secrets and use of new technology

To achieve faster expansion in a market

 

Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation.

 

True

 

False

True

Comparability means that the results can be used to make valid comparisons between the countries covered by the research. (T/F)

TRUE

The director of worldwide marketing research must respond to local conditions as they develop a research program that can be implemented on a global basis. (T/F)

TRUE

In a global firm, marketing is considered a distinct functional areas within the firm. (T/F)

FALSE

Standardized global marketing is analogous to mass marketing in a single country and is also known as differentiated target marketing. (T/F)

FALSE

IKEA home furnishings are decorated in the national colors of blue and yellow. This is an example of local consumer culture positioning. (T/F)

FALSE

Implicit or explicit reference to competitors can provide the basis for an effective positioning strategy. (T/F)

TRUE

Outsourcing is most effective for those jobs that are low-wage and require very little skill to complete. (T/F)

FALSE

In general, the greater the distance between the product source and the target market, the greater the time delay for delivery and the lower the transportation cost. (T/F)

FALSE

If the dollar, the yen, or the mark become seriously overvalued, a company with production capacity in other locations can achieve competitive advantage by shifting its production among several different sites. (T/F)

TRUE

Eventually, an affiliate-based strategy gives way to an export-driven strategy. (T/F)

FALSE

Today's distributed databases, networks, and open systems make possible the kinds of data flow required for virtual corporations.

TRUE

In a country and market concentration strategy, a company serves many markets in a few countries. (T/F)

FALSE