MKT 505 FINAL EXAM PART 1 & 2 (100% ANSWER)

PART - 1

Question 1

Coca-Cola achieved success in the Japanese market primarily by:

Answer

standardization of marketing mix elements.

global localization.

vending machine operations.

selecting market mix options.

homogenization.

Question 2

Slumdog Millionaire, a movie which received several awards and an Oscar in 2009, was filmed on a location in and around:

Answer

London.

San Francisco.

Cancun.

Mumbai.

Moscow.

Question 3

The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as:

Answer

Value = Price/Benefits

Value = Benefits/Price

Value = Benefits x Price

Value = Benefits - Price

Value = Benefits + Price

Question 4

That Russia is being transformed by economic change can be witnessed in all of the following observations except:

Answer

affluent Russians can shop at boutiques that offer Versace.

per capita gross national income in Russia is only $9370.

the banking system in Russia is robust.

Russian shoppers spend an estimated $4 billion each year on luxury goods.

the Russian government lifted all currency controls.

Question 5

The greatest percentage of world GDP is in the following income group countries:

Answer

high-income countries.

upper-middle-income countries.

lower-middle-income countries.

low-income countries.

BRIC countries.

Question 6

The member of the Gulf Cooperation Council (GCC) with the largest economy and population size is:

Answer

Bahrain.

Kuwait.

Oman.

Qatar.

Saudi Arabia.

Question 7

In spite of having about 45% of the world's known oil reserves, Saudi Arabia and other Middle Eastern countries post current-account deficits, largely because:

Answer

of poor accounting practices.

of vast economic diversification.

they must import most of the goods and services.

most of the oil is exported.

new businesses are being developed.

Question 8

The original six members of the ASEAN (Association of Southeast Asian Nations) included all of the following countries except:

Answer

Singapore.

Thailand.

India.

Philippines.

Brunei.

Question 9

A characteristic of a low-context culture which is prevalent in United States, Switzerland, and Germany is:

Answer

less information is contained in verbal communication.

major emphasis on a person's values and position in society.

messages are explicit and specific.

a person's word is his or her bond.

negotiations are long and protracted.

Question 10

The cultural environment of a country is best defined by which characteristics?

Answer

standard of living and stage of economic development

production process and standards of measurement

attitudes, beliefs, and values

degree of nationalism and economic community membership

fast food culture and slow food culture

Question 11

Any Western country doing business in Malaysia or the Middle East should have understanding of:

Answer

the French Civil Code.

Anglo-Saxon common law.

Islamic law.

the Uniform Commercial Code.

Roman law and the Napoleonic Code.

Question 12

Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the:

Answer

United States.

European Union.

United Nations.

Netherlands.

United Kingdom.

Question 13

As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set air fare prices jointly and coordinate flight schedules. Normally, such behavior would be considered harmful to competition, but the U.S. government has granted the two airlines special exemptions from laws concerning:

Answer

intellectual property.

antitrust.

jurisdiction.

licensing.

Arbitration

Question 14

The decision by Toyota executives to introduce the Sienna minivan in the U.S. market was based on their study of a(n) ________ market.

Answer

existing

latent

parallel

incipient

global

Question 15

The international marketing manager of an office furniture company ordered a research report on global telecommunications equipment sales. The report noted that, in the early 1990s, AT&T was awarded a $4 billion contract to provide communication network products and services in Saudi Arabia. The manager took this as a cue to put Saudi Arabia on her information agenda, reasoning that office furniture sales would increase as the country's telephone system was improved. As described here, the marketing manager is viewing Saudi Arabia as a(n):

Answer

latent market.

incipient market.

cluster market.

existing market.

primary market.

Question 16

A(n) ________ is a company's private data network, accessible only by authorized persons inside the organization.

Answer

EDI

internet

intranet

EPOS

ECR

Question 17

The efforts of global companies to reach low-income consumers in emerging markets highlight the importance of skillful global market segmentation and targeting. Market segmentation represents:

Answer

targeting prospective customers.

finding customers who can respond to advertisement.

promoting products and services internationally.

identifying customers who can help in promoting products.

an effort to identify and categorize customers based on common characteristics.

Question 18

Some of Body Shop's recent advertising has emphasized the difference between the company's principles and those of "mainstream" cosmetics companies on such issues as animal testing. As described here, Body Shop's ads illustrate positioning by ________.

Answer

competition

niche

quality/price

attribute/benefit

culture

Question 19

The Swatch Group markets watches in all price ranges, from the Swatch brand at the low end to luxury brands such as Longines, Blancpain, and Breguet. Which target market strategy does this illustrate?

Answer

standardized global marketing

concentrated global marketing

differentiated global marketing

psychographic global marketing

Question 20

The international standard by which letters of credit (L/Cs) are interpreted is known as the ________ 500.

Answer

UCP

NTR

FSC

NTB

HTS

Question 21

Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction?

Answer

documentary credit (letter of credit)

documentary collection

cash in advance

sales on open account

draft

Question 22

Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market?

Answer

letter of credit

cash in advance

sales on open account

barter

arrival draft

Question 23

The president of a Mexican company recently remarked, "Business in Mexico is done on a consensus basis, very genteel and sometimes slow by U.S. standards." A few months later, the Mexican company and its U.S. joint venture partner parted company. Judging by the president's remark, one important reason for the "divorce" was:

Answer

failure of one partner to live up to the terms of the contract.

cultural differences.

the cancellation of NAFTA.

the U.S. government's insistence on quick negotiations.

the language barrier.

Question 24

As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances?

Answer

acquisition

licensing

joint venture

exporting

franchising

Question 25

Licensing as a market entry mode has several disadvantages and opportunity costs, which do not include:

Answer

limited market control.

agreement may have short life.

leveraging and exploiting by licensee.

similar product or technology development by licensee

adaptations by licensee to fit local tastes

PART 2

Question 1

 ________ represent(s) the cumulative added value of a company's investment in the marketing of a brand over time.

Answer

Brand extensions

Co-branding  

Brand Image

Brand equity

Brand loyalty

Question 2

 Maslow's hierarchy is applicable to global marketing because it can help explain how:

Answer

basic human needs can drive the development of global products.

"self-actualization" is the highest-order need in Japan as well as Western nations.

status needs in different countries can only be fulfilled with localized products.

"luxury badging" is irrelevant to companies marketing in Asia.

Asians differ from Westerners in their basic physiological needs.

Question 3

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'mM'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?

Answer

product-communications extension

product extension-communications adaptation

product adaptation-communications extension

product-communication adaptation

product invention

Question 4

To win a contract to supply the United Kingdom with AWACS military aircraft, Boeing agreed to purchase products from the UK whose value was equivalent to 130% of the contract. This type of pricing arrangement, which is common when the customer is a foreign government and the product has military applications, is known as:

Answer

barter.

switch trading.    

compensation trading.

offset.

dumping.

Question 5

 Which pricing strategy has the advantage of being simple to calculate but has the disadvantage of ignoring demand and competitive conditions?

Answer

gray marketing

skimming

penetration

market holding

cost-based

Question 6

Joseph Quinlan, chief marketing strategist at Bank of America, estimated that about 25% of U.S. merchandise exports represent shipments by American companies to their foreign affiliates and subsidiaries. This situation underscores the importance of ________ in global marketing.

Answer

dumping

gray marketing

transfer pricing

price skimming

price fixing

Question 7

When Wal-Mart Stores first expanded into Mexico, management established a joint venture with the country's largest retailer. Judging by the approach Wal-Mart used, management must have viewed Mexico as:

Answer

culturally close and easy to enter.

culturally distant and easy to enter.

culturally close and difficult to enter.

culturally distant and difficult to enter.

culturally difficult and easy to enter.

Question 8

Which personal computer company began life as a b-to-b marketer and then began marketing direct to the home PC market?

Answer

Hewlett-Packard

Compaq

Dell

Acer

Sony

Question 9

Order processing, warehousing, and inventory management are all functions pertaining to:

Answer

a polycentric orientation.

physical distribution and logistics.

sales promotion.

personal selling.

chain acquisition.

Question 10

In advertising, a(n) ________ is an agent who chooses graphics, pictures, type styles, and other visual elements and has general responsibility for the overall look of an advertisement.

Answer

art director

copywriter

IMC manager

PR practitioner

stylist

Question 11

Japan's Fuji Photo Film asked its advertising agency to develop an advocacy campaign for the United States targeted to appeal both to Wal-Mart and to its customers. This is an example of ________.

Answer

local advertising

pattern advertising

global advertising

advocacy advertising

image advertising

Question 12

A ________ company possesses a critical marketing advantage with respect to marketing communications.

Answer

domestic

local

global

glocal

multinational

Question 13

Traditional support media include:

Answer

indoor posters.

billboards.

newspapers.

magazines.

catalogs.

Question 14

When a company must decide on the composition of its foreign sales force, which alternative is generally the most expensive?

Answer

expatriates

third-country nationals

host-country nationals

agents of any nationality

agents of host country

Question 15

Which country or region offers direct marketers the advantage of a well-developed mailing list industry?

Answer

United States

Japan

Western Europe

Latin America

South Korea

Question 16

 ________ are online retail operations that allow customers to purchase goods and services.

Answer

Promotion sites

Matrix sites

Transfer sites

Transaction sites

Content sites

Question 17

 ________ -commerce is one of the significant marketing opportunities made possible by the digital revolution.

Answer

Multinational

Mobile

Multisegment

Marginal-cost

Multilingual

Question 18

"Small markets don't solve the growth needs of large companies" and "markets that don't exist can't be analyzed" are two principles of disruptive innovation. These principles are integral to:

Answer

the five forces model.

the flagship model.

strategic intent.

the innovator's dilemma.

the innovator's dream.

Question 19

In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has:

Answer

attribute diversity.

marketing breadth.

comparative advantage.

layers of advantage.

a "double diamond."

Question 20

Germany's Mittelstand companies have been extremely successful pursuing ________.

Answer

cost leadership

differentiation

cost focus

focused differentiation

cost differentiation

Question 21

Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry?

Answer

cost leadership

differentiation

cost focus

focused differentiation

cost differentiation

Question 22

In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage?

Answer

collaboration

layers of advantage

changing the rules

loose bricks

engagement

Question 23

Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge?

Answer

matrix structure

international division structure

geographic structure

worldwide product division structure

regional management center

Question 24

Marjorie Scardino is chief executive of:

Answer

Nissan Motor (Japan).

Pearson PLC (Great Britain).

Ford Motor Company (USA).

Pharmacia Corporation (USA).

Atlas Copco AB (Sweden).

Question 25

Brazilian Carlos Ghosn is chief executive of:

Answer

Nissan Motor (Japan).

Pearson PLC (Great Britain).

Ford Motor Company (USA).

Pharmacia Corporation (USA).

Atlas Copco AB (Sweden).

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