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

PART – 1
Coca-Cola achieved success in the Japanese market primarily by:
standardization of marketing mix elements.
global localization.
vending machine operations.
selecting market mix options.
homogenization.
Slumdog Millionaire, a movie which received several awards and an Oscar in 2009, was filmed on a location in and around:
London.
San Francisco.
Cancun.
Mumbai.
Moscow.
The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as:
Value = Price/Benefits
Value = Benefits/Price
Value = Benefits x Price
Value = Benefits – Price
Value = Benefits + Price
That Russia is being transformed by economic change can be witnessed in all of the following observations except:
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.
The greatest percentage of world GDP is in the following income group countries:
high-income countries.
upper-middle-income countries.
lower-middle-income countries.
low-income countries.
BRIC countries.
The member of the Gulf Cooperation Council (GCC) with the largest economy and population size is:
Bahrain.
Kuwait.
Oman.
Qatar.
Saudi Arabia.
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:
The original six members of the ASEAN (Association of Southeast Asian Nations) included all of the following countries except:
Singapore.
Thailand.
India.
Philippines.
Brunei.
A characteristic of a low-context culture which is prevalent in United States, Switzerland, and Germany is:
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.
The cultural environment of a country is best defined by which characteristics?
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
Any Western country doing business in Malaysia or the Middle East should have understanding of:
the French Civil Code.
Anglo-Saxon common law.
Islamic law.
the Uniform Commercial Code.
Roman law and the Napoleonic Code.
Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the:
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:
Arbitration
The decision by Toyota executives to introduce the Sienna minivan in the U.S. market was based on their study of a(n) ________ market.
latent
parallel
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):
latent market.
incipient market.
cluster market.
existing market.
primary market.
A(n) ________ is a company’s private data network, accessible only by authorized persons inside the organization.
internet
intranet
EPOS
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:
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.
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 ________.
niche
quality/price
culture
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?
standardized global marketing
concentrated global marketing
differentiated global marketing
psychographic global marketing
The international standard by which letters of credit (L/Cs) are interpreted is known as the ________ 500.
UCP
NTR
FSC
NTB
HTS
Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction?
documentary credit (letter of credit)
documentary collection
cash in advance
sales on open account
draft
Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market?
letter of credit
barter
arrival draft
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:
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.
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?
acquisition
licensing
joint venture
exporting
franchising
Licensing as a market entry mode has several disadvantages and opportunity costs, which do not include:
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
________ represent(s) the cumulative added value of a company’s investment in the marketing of a brand over time.
Co-branding
Brand Image
Brand loyalty
Maslow’s hierarchy is applicable to global marketing because it can help explain how:
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.
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?
product-communication adaptation
product invention
switch trading.
Which pricing strategy has the advantage of being simple to calculate but has the disadvantage of ignoring demand and competitive conditions?
gray marketing
skimming
penetration
market holding
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.
transfer pricing
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:
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.
Which personal computer company began life as a b-to-b marketer and then began marketing direct to the home PC market?
Hewlett-Packard
Compaq
Dell
Acer
Order processing, warehousing, and inventory management are all functions pertaining to:
a polycentric orientation.
physical distribution and logistics.
sales promotion.
personal selling.
chain acquisition.
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.
art director
copywriter
IMC manager
PR practitioner
stylist
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 ________.
local advertising
pattern advertising
global advertising
advocacy advertising
image advertising
A ________ company possesses a critical marketing advantage with respect to marketing communications.
domestic
local
glocal
multinational
Traditional support media include:
indoor posters.
billboards.
newspapers.
magazines.
catalogs.
When a company must decide on the composition of its foreign sales force, which alternative is generally the most expensive?
expatriates
third-country nationals
host-country nationals
agents of any nationality
agents of host country
Which country or region offers direct marketers the advantage of a well-developed mailing list industry?
Western Europe
Latin America
South Korea
________ are online retail operations that allow customers to purchase goods and services.
Promotion sites
Matrix sites
Transfer sites
Transaction sites
Content sites
________ -commerce is one of the significant marketing opportunities made possible by the digital revolution.
Multinational
Mobile
Multisegment
Marginal-cost
Multilingual
In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has:
attribute diversity.
marketing breadth.
comparative advantage.
layers of advantage.
a “double diamond.”
Germany’s Mittelstand companies have been extremely successful pursuing ________.
cost leadership
cost focus
focused differentiation
cost differentiation
Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry?
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?
collaboration
layers of advantage
changing the rules
loose bricks
engagement
Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge?
matrix structure
international division structure
geographic structure
worldwide product division structure
regional management center
Marjorie Scardino is chief executive of:
Nissan Motor (Japan).
Pearson PLC (Great Britain).
Ford Motor Company (USA).
Pharmacia Corporation (USA).
Atlas Copco AB (Sweden).
Brazilian Carlos Ghosn is chief executive of:
Atlas Copco AB (Sweden).