MKTG 376 (International)

Generally speaking, which of the following statements is true concerning product attributes?
Both tangible and intangible product attributes are important.
Advertising, company name, news stories, and promotion activities are a few of the elements that contribute to a company’s:
brand image.
Apple and Nokia both market phones but their brand image differentiates them, which with Apple can be partially attributed to all of the factors except:
iPhone has more brand equity than Nokia.
________ represents the cumulative added value of a company’s investment in the marketing
Brand equity
For nearly 60 years, DeBeers has used the advertising slogan “A diamond is forever.” Such a long-term investment in marketing is central to developing:
brand equity
In recent years, the Coca-Cola Company has been plagued by such problems as employee lawsuits over diversity issues, deteriorating bottler relations, a production stoppage, and a disastrous product recall in Belgium. Taken together, these problems could dilute the company’s ________.
brand equity
The Nike swoosh, McDonald’s golden arches, and Apple’s rainbow apple are all examples of:
both A and C
Sony is famous worldwide for its Walkman® personal stereo. Which of the following reflects the most accurate use of marketing terminology?
“Sony” and “Walkman” are global brands; “personal stereo” is a global product.
Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims “Intel Inside.” Which branding concept does such advertising reflect?
co-branding
As outlined by branding expert Kevin Keller, the benefits of strong brand equity include all of the following except:
more vulnerability to marketing actions
British entrepreneur Richard Branson has built a global business empire by:
relying on brand extension.
Which of the following is NOT in the top five of the world’s most valuable brands and determined by Business Week (2008)?
Sony
Maslow’s hierarchy is applicable to global marketing because it can help explain how:
basic human needs can drive the development of global products.
Alfred Zeien, former chairman of Gillette, once noted that his company’s Parker Pen unit does not have to develop a special model for Malaysia and Singapore because shoppers worldwide seek the same things when buying a gift that will serve the recipient as a status symbol. This insight relates to which level of Maslow’s hierarchy of needs?
esteem
Comparing the traditional formulation of Maslow’s hierarchy with the results of current research on the consumer needs and motivation in Asia, which of the following is correct?
The lowest 2 levels of the hierarchy are the same in the traditional and Asian versions
Which of the following is NOT one of the levels in the Asian version of Maslow’s hierarchy?
self-actualization
Which of the following could hinder the success of products labeled “Made in Bangladesh” or “Made in Thailand” in export markets?
negative country-of-origin bias
The marketers of Corona beer achieved great success in the U.S. market by:
retaining the bottle design originally used in Mexico.
Coca-Cola’s distinctive contour bottle, which is sold in many countries, illustrates the point that:
the packaging strategies can vary by country and region.
Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation?
industrial products
Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the U.S. This is an example of the ________ strategy.
product extension-communications adaptation
Targeting the 300 million farmers in India who still use plows harnessed to oxen, John Deere engineers created a line of relatively inexpensive, no-frills tractors. The Deere team then realized that the same equipment could be marketed to hobby farmers and acreage owners in the United States, a segment that they had previously overlooked. This is an example of ________ strategy.
product extension-communications adaptation
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-communication adaptation
Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using?
product-communication adaptation
Before Ben & Jerry’s launched their ice cream in the United Kingdom the company conducted extensive research to determine whether the package design was appropriate. The research indicated that British consumers perceived the colors differently than U.S. consumers. The package design was changed accordingly. This type of strategy can be defined as:
product extension-communications adaptation.
To promote its Centrino wireless chip, Intel launched a global ad campaign that features different combinations of celebrities. These celebrities were chosen because they are widely recognized in the key world markets. This type of strategy is referred to as:
product extension-communications adaptation.
Colgate’s Total is a new toothpaste brand whose formulation, imagery, and consumer appeal were designed from the beginning to translate across national boundaries. Which strategy did Colgate use with Total?
product invention
Hindustan Lever recently developed a hard candy flavored with natural fruit juice that it sells profitably in India for the equivalent of 1 cent per piece. This is Hindustan Lever’s first-ever candy product. What strategy is evident here?
product invention
The formulation, imagery, and consumer appeal of Colgate’s Total brand toothpaste were designed to translate across national boundaries. This new global brand represents which type of product innovation?
continuous innovation
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 discontinuous innovation; the DVD is a dynamically continuous innovation.
The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home electronic entertainment. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. The VCR’s popularity also gave rise to an entirely new retailing concept, the video rental store. What type of innovation did the consumer VCR represent?
a discontinuous innovation
The Advanced Photo System (APS) created by Kodak and its partners combines traditional chemical photo processing with digital technology. One benefit of the system is that shutterbugs can choose 3 different print sizes. The APS would best be described as a:
dynamically continuous innovation.
After four years of product development, Procter & Gamble recently introduced a new, improved disposable diaper. Pampers Rash Guard are designed to prevent diaper rash and represent the first time a company has made a medical claim for its diapers. What kind of innovation do the new diapers represent?
continuous innovation
Procter & Gamble recently introduced Pampers Rash Guard. Rash Guard does not represent a new product per se; rather, the diapers are being marketed as an alternative to regular Pampers. What type of innovation do Pampers Rash Guard represent?
a continuous innovation
Motorola’s failed Iridium venture was a global satellite telephone network designed to allow users to make or receive calls anywhere on the globe using handsets that are somewhat bigger than typical cellular phones. What type of innovation did Iridium represent?
a dynamically continuous innovation
By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns.
discontinuous innovation
In Chinese markets, Nike had a problem using the “Just Do It” attitude which was not found to be appropriate. Finally, Nike decided to use Chinese athletes in their promotion. This type of adaptation was needed due to:
ingrained Chinese values which respect authority.
Which of the following consumer products companies experienced a major product failure in Europe due to inadequate test marketing?
Unilever
Which global company was responsible for bringing the Smart car to market?
DaimlerChrysler
The corporate development team at Virgin evaluates more than a dozen proposals each day from outside and within the company. When assessing new-product ideas they look for all of the following except:
aesthetic attributes of competitors products.
Which pricing strategy would be most appropriate for a marketer of luxury designer brands?
skimming
) If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as “innovators” and “early adopters” with relatively inelastic demand curves, the company should use the ________ pricing strategy:
skimming
Which pricing strategy did Sony use when launching the Walkman personal stereo?
penetration
In India, consumers do not like to be locked in to long-term contracts and Apple distributes its iPhone exclusively through stores operated by Airtel, an India carrier, and Vodaphone. This is an example of:
razors and blades.
Excelsior Corp. launches a new hand-held personal digital assistant (PDA) for busy corporate executives. The initial retail price is set at $699. One year later, in an effort to reach a broader market, the price is lowered to $299. Which of the following describes the pricing strategies used by Excelsior Corp?
skimming strategy followed by penetration strategy
A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring?
all of the above
Which pricing strategy has the advantage of being simple to calculate but the disadvantage of ignoring demand and competitive conditions?
cost based
Which of the following incoterms apply to all modes of transportation?
both A and C
A manufacturer attempting to set prices for its products in export markets must realize that CIF, VAT, and distributor markup all lead to:
price escalation
If a distributor’s margins are based on the “landed” price of an import shipment, they will be based on:
all of the above
Which of the following does not contribute to price escalation in global marketing?
different Incotherms as incentives
In July 2001, the euro’s value relative to the dollar was about €1.00 = $0.85. By November 2009 the euro had strengthened to €1.00 = $1.48. All other things being equal, if a European-based global company wants to preserve margins for goods exported to the U.S. market, the company should:
raise prices in dollars.
Which of the following would not be used by an exporter with a weak home country currency?
Shift sourcing outside home country market.
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.
ethnocentric
According to a recent study of European industrial exporters, companies that utilized independent distributors would be most likely to utilize:
polycentric pricing
Which automaker was described as using an ethnocentric approach to setting prices in the United States?
Mercedes
Which of the following pricing strategies recognizes both local market differences and the importance of headquarters input into pricing decisions?
ethnocentric pricing
Which of the following would NOT be taken into account by a company using an ethnocentric approach to pricing decisions?
none of the above would be taken into account by a company using ethnocentric pricing
If company managers decide to set the export price for a particular product at an amount equivalent to the home country price, they would be using which approach to pricing?
ethnocentric
The unauthorized distribution of trademarked goods to exploit price differentials in world markets is known as:
gray marketing.
When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging consumers to purchase Tag Heuer products from authorized dealers only, the company is most likely attempting to combat the ________ problem.
gray market
In the early 1990s, the U.S. International Trade Commission ruled that several Japanese manufacturers were selling active-matrix flat panel display screens in the U.S. at less than fair value and thereby injuring the sole U.S. producer of similar screens. The ITC’s ruling concerned:
dumping
Following the 1997 currency crisis in Asia, which American industry appealed to President Clinton for protection from foreign producers that were allegedly “dumping” products in the United States:
steel industry
If a company sells products in export markets at prices that are below fair market value and that can harm producers in the export market, that company may be accused of:
dumping.
Germany’s Bayer Group was fined millions of dollars to settle a lawsuit alleging it had conspired with ArcherDanielsMidland and other global companies to set prices for an enzyme used in animal feeds. What was the issue in this lawsuit?
price fixing
Nintendo was fined nearly $ 150 million after it was determined that the video game company had colluded with European distributors. The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices. This is a classic example of:
price fixing
“Cost-based,” “market-based,” and “negotiated” are three approaches to:
transfer pricing.
Joseph Quinlan, chief marketing strategist at Bank of America, estimated that about 25 percent 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
Which of the following is true about proper use of the term “countertrade?”
“Countertrade” is a blanket term that refers to several different types of business transactions.
The most general term for the global phenomenon involving reciprocal business interactions between parties in various countries is known as:
countertrade.
In the 1970s and 1980s, the arrangement by which PepsiCo received payment for soft drink products sold to the Soviet Union was:
barter
The direct exchange of goods or services between parties in lieu of monetary payment is known as:
barter
Which of the following forms of countertrade does not require use of money or credit between parties?
barter
Which type of countertrade arrangement is required by governments seeking to reduce the budgetary impact of expenditures for defense or telecommunications?
offset
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 percent 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:
offset
When one of the parties to a barter transaction is not willing to accept the goods included in the transaction, that party is likely to utilize the services of a:
switch trader.
Suppose that World Corp. signs a contract to build a lumber processing plant in Siberia. If World Corp. signs a second contract agreeing to take partial payment for the plant in the form of lumber products produced at the plant, it is engaging in:
compensation trading.
Which of the following companies would be most likely to use some form of countertrade when selling its products in developing countries?
Bell Helicopter Textron
Despite the high expenses associated with operating elegant stores and purchasing advertising space in upscale magazines, the premium retail prices that luxury goods like Louis Vuitton command translate into handsome profits. The Louis Vuitton brand alone accounts for 60 percent of LVMH’s operating profit. On the other hand, Louis Vuitton spends $ 10 million annually battling:
suppliers of needed materials.
Luxury good marketers found a new way to combat gray market imports into the United States. In March 1995, the U.S. Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume with permission. The distinctive packaging of the perfume is also protected by the U.S. Copyright law. The ruling implies that:
Costco and Wal-Mart will be able to sell Givenchy with authorization.
Marketing channels exist to create utility for customers. The major categories of channel utility include all of the following except:
price utility
Marketing channels have the potential to create which of the following types of utility?
all of the above
Some wine importers insist on shipping their wines in refrigerated containers (“reefers”) to protect the wines from being damaged by high temperatures. Such importers are creating which kind of utility?
form utility
Peer-to-peer (p-to-p) marketing uses distribution channels through:
electronic commerce.
eBay was a pioneer in a form of online marketing known as:
p-to-p.
Which country has proven to be the most successful market in Avon’s history among the following?
Russia
What solution did Andersen Consulting provide to the Moscow Bread Company to solve the problem of stale bread?
Package the bread in plastic bags
Nestlé is using an innovative approach to distribution in Brazil with a program which consists of selling its products via:
door-to door selling in low-income neighborhoods.
Which of the following most accurately describes the relative length of consumer and industrial distribution channels?
Consumer channels tend to be longer (consist of more intermediaries) than industrial channels.
Sales representatives in which Japanese industry cultivate close, long-term relations with customers by selling door-to-door?
automobiles
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
Dell rang up $ 61 billion in direct sales of their PC systems in 2006 using:
web-site sales.
Which personal computer company focuses on business-to-business marketing using a direct-sales approach?
Hewlett-Packard
Which of the following is an appropriate guideline for companies selecting independent distributors in international markets?
All of the above are appropriate guidelines.
Which of the following is not an appropriate guideline for companies selecting independent distributors in international markets?
Give local distributors control over marketing strategy.
Which of the following is the largest retailer in the world in terms of annual sales?
Wal-Mart
By definition, ________ feature a narrow but deep merchandise mix and high levels of service.
specialty retailers
Which of the following does NOT qualify as a “category killer?”
Victoria’s Secret
Which European retailer proved unsuccessful in its cross-border initiatives on New York’s fashionable Fifth Avenue?
Galeries Lafayette
Which of the following correctly characterizes the retailing strategy shared by Toys “R” Us and Virgin Megastores?
few product categories, manufacturer brand focus
Which of the following categories best describes the approach of Britain’s Marks & Spencer to global retailing?
many product categories, own-label focus
Which approach to global retail expansion involves “greenfield” investment using a company’s own financial resources to build a new store from the ground up?
joint venture
Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter?
franchise
When British entrepreneur Richard Branson established the first Virgin Megastore in France, he invested a great deal of money to develop a retail space on the famous Champs-Elysées. Judging by the approach Branson used, he and his management team must have viewed France as:
culturally close and easy to enter.
When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established a joint venture with the Marui retailing chain. Judging by the approach Branson used, he and his management team must have viewed Japan as:
culturally distant and difficult to enter.
Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap?
few product categories, own-label focus
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 distant and difficult to enter.
When single brand-retailers such as Benetton, Nike, Pizza Hut, Reebok, and Subway first entered Indian retail market they were required to use:
franchised stores
Physical distribution and logistics are concerned with all but one the following.
designing in-store displays
Order processing, warehousing, and inventory management are all functions pertaining to:
physical distribution and logistics.
If a commodity raw material comes from Africa; gets refined in Asia; then shipped to South America for finishing; and finally transported to the Middle East and then sold around the world — represents a similar process used for products marketed by:
IKEA.
“Containerization” refers to a company’s:
designing attractive product packaging that will help a product “sell itself.”
When a company uses intermodal or multimodal transportation it is:
using land and water shipping.
A French winery packs its wine in a 40-foot container that is trucked to a port and then loaded onto an ocean-going vessel. This is an example of:
intermodal transportation.
A freighter loaded with 40-foot shipping containers leaves a port in Europe and sails to New York, where the containers are transferred to railroad cars and transported to the West coast. At the port of San Francisco, the containers are loaded onto another freighter bound for Japan. The term that best describes this situation is:
intermodal transportation.
Inventory management is:
ensuring cost control.
Which of the following transportation modes ranks lowest in capability?
air
Which of the following transportation modes offers the most flexible routing and scheduling:
truck
Which global retailer has reconfigured its supply chain and now permits a Taiwanese supplier to ship clothing from the point of manufacture directly to retail stores?
J.C. Penney
JCPenney’s North American stores carry virtually no extra inventory of house-brand shirts. When a shirt is sold, scanner data is directly transmitted to Hong Kong. The private-label supplier TAL Apparel Ltd. in Hong Kong replenishes the stock based on usage, sometimes shipping shirts by air. These logistics have all but one of the following advantages:
JCPenny can ship the shirts directly by air to consumers.
As companies recognize and embrace new concepts such as the globalization of coffee culture, the potential for effective global advertising:
increases.
A ________ company is one that targets customers worldwide or sources products worldwide, standardizing some marketing mix elements and adapting others.
global
Which of the following product category/company pairings best illustrates the concept of “product cultures?”
coffee bars/Starbucks
A company that successfully creates standardized global advertising can reap which potential advantage?
all of the above
Which company ranks number one in terms of worldwide ad spending?
Procter & Gamble
Which company ranks number one in terms of ad spending in Europe?
Procter & Gamble
What do Unilever and Procter & Gamble have in common?
Both companies rank high in terms of non-U.S. ad spending.
A company’s efforts to effectively communicate with customers may be hindered if the message:
all of the above
________ is the phrase global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets.
“Pattern advertising”
In the language of global marketing, ________ is the phrase used to describe advertising that represents a middle ground between 100% standardization and 100% localization:
“pattern advertising”
When the subheads and body copy of an advertisement is localized, not simply translated, is an example of:
pattern advertising.
In selecting an advertising agency, all but one of the following issues should be taken into consideration.
franchise or company owned status
According to data published by Advertising Age (2009), which of the following is the largest global advertising organization?
WPP Group
When it is time to choose one or more advertising agencies, a company with a decentralized structure and a polycentric organization will:
leave the decision to local country managers
Tobacco companies in Central Europe face the prospect of tougher marketing and advertisement regulations due to the:
a desire to comply with EU regulations.
The advertising promise that captures the reason that people buy products is known as:
the selling proposition
In many parts of the world, McDonald’s utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes:
emotional appeals.
The choice between demonstration, slice-of-life, straight sell, and other advertising forms is a matter of:
the creative execution.
In advertising, a(n) ________ is an agency “creative” who chooses graphics, pictures, type styles, and other visual elements and has general responsibility for the overall look of an advertisement.
art director
According to recent research on advertising appeals in global marketing, which of the following countries rank high in both “think” and “feel” dimensions?
Austria, Canada, Germany, United States, Korea
According to a research study, a TV advertisement that presents a rational appeal by means of an argument-type execution would be well suited to:
monochronic cultures with low power distance, high uncertainty avoidance, and a good supply of marketing professionals.
According to a research study, a TV advertisement that presents an emotional appeal by means of a psychological-type execution would be well suited to:
collectivist cultures with high power distance, high advertising expenditures, and strict government control.
Which of the following is true about advertising expenditures in Germany and Brazil?
Television is the leading medium in Brazil; newspapers are the leading medium in Germany.
The United States and ________ are the two top-ranked countries in terms of ad spending across all measured media.
Japan
In which country are global marketers likely to encounter the most restrictions on
Saudi Arabia
In which country would a global marketer most likely encounter the need to use print advertisements?
China
Generally speaking, a company has little control over media. To compensate for this lack of control many companies utilize:
corporate advertising.
Which promotional mix element is most closely associated with activities designed to foster goodwill and understanding with various constituents both inside and outside the company?
public relations
One task of the ________ department is to generate nonpaid forms of communication to foster goodwill among customers and others.
public relations
What do Ford Motor Company, Coca-Cola, Nike, and McDonald’s all have in common?
They have all received a great deal of negative publicity in recent years.
Which of the following marketing mix elements was at the heart of the problems Ford Motor Company and Bridgestone/Firestone faced in 2000?
public relations problems
In the summer of 1999, Coca-Cola faced a major marketing problem in Europe. Which of the following was at the heart of the problem?
public relations problems
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 ________ advertising.
advocacy advertising
Recently, some of the biggest advertising holding companies have acquired leading public relations agencies. The best explanation for this trend is:
a growing realization of the importance of IMC (Integrated Marketing Communications)
Which of the following most accurately describes the state of global public relations (PR) today?
Expenditures on PR are increasing.
A company adopting a(n) ________ approach to worldwide PR activities gives the host-country practitioner maximum leeway to incorporate local customs and practices into the PR effort.
polycentric
Even in the face of such tough and growing competition, Adidas still enjoys high brand loyalty among older Europeans. The company recruits young people and pays them to wear Adidas shoes in public. This is an example of:
image advertising
China’s ongoing trade-related friction with the United States highlights the need for:
a better PR effort
PepsiCo undertook an ambitious global program to revamp the packaging of its flagship cola. To raise awareness of its new blue can, Pepsi spent $500 million on advertising and PR; Pepsi leased a Concorde jet and painted it in the new blue color. This is a good use of:
IMC ( Integrated Marketing Communications).
In developing countries, such as Ghana, the best way to communicate with market segments may be through:
dance, songs, and storytelling.