MKTG 4280 Exam 2 Qs

Microsoft's Windows 7 operating system was launched in 2009 with the user-centric global advertising campaign keyed to the theme "I'm a PC, and Windows 7 was my idea." This is an example of the dual-extension strategy.

True/False

True

U.S. executives of an electronic device manufacturer understood that in Japan, "a book is judged by its content." As a result, they revamped packaging aesthetics.

T/F

False

As quoted in the text, "People love the Uber product. They do not necessarily love the brand." T/F

True

Many consumers consider products with labels such as "Made in Bangladesh" and "Made in Brazil" to be of inferior quality and value.

T/F

True

Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese consumers were not receptive to ads featuring the Campbell Kids and the "M'm M'm Good" slogan. This compelled Campbell's to develop ads featuring a talking soup can known as "Mr. Campbell." Campbell's also developed soup varieties for Japan with fish as the main protein source and spices that reflect local preferences. As described here, which of the following strategies has Campbell's used in Japan?

• product invention

• product-communications extension

• product extension-communications adaptation

• product adaptation-communications extension

• product-communication adaptation

product-communication adaptation

Packaging is an important consideration for products that are shipped to markets worldwide. Which of the following statements related to packaging is not true?

• The Aquafresh Ultimate tube was designed to stand vertically.

• Coca-Cola had contour bottles in both glass and plastic versions in many countries.

• The Japanese prefer plain soft colors on their packages.

• Nestlé asked suppliers to find a glue to make the clicking sound louder when a tube of Smarties brand chocolate candies are unwrapped.

• Nestlé's worldwide network of packaging teams provide improvement suggestions on a quarterly basis.

The Japanese prefer plain soft colors on their packages.

In the United States, the average Buick buyer is 61 years old, which stands in marked contrast to Volvo, whose average buyer is only 50. T/F

True

One of the benefits of strong brand equity is more elastic consumer response to price increases. T/F

False

When introduced in the late 1970s, the VCR created new patterns of consumer behavior. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. DVD, a playback only video system, was introduced in the late 1990s. DVD discs contain full-length movies with digital sound in a format that resembles conventional music compact discs. Which of the following most accurately describes the respective degree of newness of these two global products?

• The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation.

• The VCR and DVD are both discontinuous innovations.

• The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation.

• The VCR and DVD are both dynamically continuous innovations.

• The VCR and DVD are both continuous innovations.

The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation.

The benefits of strong brands include all of the following except:

• more elastic consumer response to price decreases.

• greater loyalty.

• less inelastic consumer response to price increases.

• larger margins.

• less vulnerability to marketing actions.

Less inelastic consumer response to price increases.

Examples of a "brand symbol" include all of the following except:

• non-word marks such as the Nike swoosh.

• date of manufacture on Coca-Cola cans.

• three-pronged Mercedes star.

• the wave that appears on red Coke cans and bottle labels.

• McDonald's golden arches.

Date of manufacture on Coca-Cola cans.

A company that has developed a successful local product or brand cannot implement an adaptation strategy. T/F

False

Packaging aesthetics are particularly important to the ________ consumer.

• Japanese

• French

• German

• Indian

• American

Japanese

All of the listed advantages are for "extension or ethnocentric" pricing strategy except:

• it does not respond to the competitive and market conditions of each national market.

• it calls for the per-unit price of an item to be the same all over the world.

• the importer must absorb freight and import duties.

• it does not require competitive conditions for implementation.

• it is extremely simple since it does not require information on market condition.

It does not respond to the competitive and market conditions of each national market.

Marketers of domestically manufactured finished products may be forced to switch to offshore sourcing of certain components to keep costs and prices competitive. T/F

True

IKEA takes a polycentric approach to pricing: While it is company policy to have the lowest price on comparable products in every market, managers in each country set their own prices. T/F

True

If a company's home currency strengthens, it is:

• neither favorable nor unfavorable turn of events for the typical exporter.

• an unfavorable turn of events for the typical exporter.

• a favorable turn of events since the revenues increase in home currency.

• an unfavorable turn of events for exporter's home country.

• a favorable turn of events for the typical exporter.

an unfavorable turn of events for the typical exporter.

Many countries took issue with the U.S. system of antidumping laws, in part because historically, the U.S. Commerce Department almost always ruled in favor of the U.S. company that filed the complaint.

T/F

True

Suppose a company selling in various country markets makes statements such as "we know what the customer wants, and he or she will have to pay for it." This is an indication of a(n) ________ approach to setting prices.

• adaptation

• geocentric

• ethnocentric

• polycentric

• regiocentric

Ethnocentric

Many companies that are active in the 19 nations of the euro zone are adjusting to the new cross-border transparency of prices. T/F

True

A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring? 

Does the price reflect the product's quality?

Is the price competitive in view of local market conditions? 

Will authorities in export markets view the price as reasonable or exploitative?

Does the price take antidumping laws into consideration?

all of the above

All of the above

"Cost-based," "market-based," and "negotiated" are three approaches to:

 price skimming.

 gray marketing.

 transfer pricing.

 counter trade.

 dumping.

 transfer pricing.

Generally speaking, international trade results in:

• lower prices for goods.

• low inflation rate.

• higher prices for goods.

• stabilizing prices.

• high inflation rate

lower prices for goods.

Which of the following categories best describes the approach of Britain's Marks & Spencer to global retailing?

• few product categories, own-label focus

• many product categories, own-label focus

• many product categories, manufacturer brand focus

• few product categories, manufacturer brand focus

• none of the above 

many product categories, manufacturer brand focus

The retail environment in developing countries presents challenges for marketing nonperishable items. In Mexico, Proctor & Gamble, Unilever, Colgate-Palmolive, and other global consumer product companies use ________ for their products.

• mom-and-pop stores

• buy-in-bulk selling

• door-to-door selling

• manufacturer-owned stores

• franchised stores

mom-and-pop stores

Peer-to-peer (p-to-p) marketing uses distribution channels through:

• electronic commerce.

• business-to-business.

• business-to-consumers.

• door-to-door.

• manufacturer-to-wholesalers.

Electronic commerce.

In less-developed countries the most important channel of distribution is:

• retail stores.

• door to door.

• pyramid schemes.

• wholesale marketplaces.

• public marketplaces.

Public marketplaces.

A variety of environmental factors have combined to push retailers out of their home markets in search of opportunities around the globe. All of the following reasons are responsible for such a move except:

• high population growth.

• high operating costs.

• saturation of the home-country market.

• strict regulation on store development.

• a recession in the home-country.

Saturation of the home-country market.

Inventory management is:

• purchasing products.

• establishing an inventory channel.

• ensuring cost control.

• managing physical distribution of products.

• determining what type of warehouse to manage

Ensuring cost control.

Water transportation is rated "low" in reliability since approximately 200 freighters sink due to bad weather or other factors. T/F

True

Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap?

• many product categories, manufacturer brand focus

• none of the above

• few product categories, manufacturer brand focus

•  many product categories, own-label focus

•  few product categories, own-label focus

Few product categories, own-label focus

In exchange for a pledge to carry at least 40 different Procter & Gamble products, participating stores receive regular visits from P&G representatives who tidy and arrange display areas. This motivational program is referred to as:

• "buy-in-bulk" store program.

• "high-frequency" store program.

• "mom-and-pop" store program.

• "shop operators" program.

• "golden store" program

"golden store" program

Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter?

• organic growth

• franchise

• own-label focus

• chain acquisition

• joint venture

Franchise

By definition, ________ feature a narrow but deep merchandise mix and high levels of service.

• department stores

• discount stores

• convenience stores

• supermarkets

• specialty retailers

Specialty retailers

Today's global retailing scene is characterized by great diversity. T/F

True