MRKT 605 MRKT605 Final Exam with Answers (UMUC)

MRKT 605 MRKT605 Final Exam (UMUC)

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Generally speaking, which of the following statements is true concerning product attributes?

A) Intangible product attributes are more important than tangible ones.

B) A product has more attributes than tangible and intangible ones.

C) Neither tangible nor intangible product attributes are important.

D) Both tangible and intangible product attributes are important.

E) Tangible product attributes are more important than intangible ones.

2) As outlined by branding expert Kevin Keller, the benefits of strong brand equity include all of the following except:

A) more vulnerability to marketing actions.

B) less vulnerability to marketing crises.

C) greater loyalty.

D) more inelastic consumer response to price increases.

E) more elastic consumer response to price decreases.

3) British entrepreneur Richard Branson has built a global business empire by:

A) avoiding consumer businesses with established leaders.

B) relying on brand extension.

C) being the first to use smart cards in major markets.

D) developing local brands.

E) restricting the ʺVirginʺ name only to airlines.

4) Maslowʹs hierarchy is applicable to global marketing because it can help explain how:

A) Asians differ from Westerners in their basic physiological needs.

B) ʺself‐actualizationʺ is the highest‐order need in Japan as well as Western nations.

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

D) ʺluxury badgingʺ is irrelevant to companies marketing in Asia.

E) basic human needs can drive the development of global products.

5) Which of the following is not one of the levels in the Asian version of Maslowʹs hierarchy?

A) self‐actualization

B) affiliation

C) admiration

D) safety

E) physiological

6) Campbellʹs 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 ʺMʹm Mʹm Goodʺ slogan. This compelled Campbellʹs to develop ads featuring a talking soup can known as ʺMr. Campbell.ʺ Campbellʹs 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 Campbellʹs used in Japan?

A) product‐communications extension

B) product extension‐communications adaptation

C) product adaptation‐communications extension

D) product‐communication adaptation

E) product invention

7) Colgateʹs 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?

A) product adaptation‐communications extension

B) product innovation

C) product extension‐communications adaptation

D) product‐communications extension

E) dual adaptation

8) If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as ʺinnovatorsʺ and ʺearly adoptersʺ with relatively inelastic demand curves, the company should use the ________ pricing strategy.

A) market holding

B) cost‐based

C) gray market

D) skimming

E) penetration

9) A market ________ pricing strategy calls for setting price levels that are low enough to quickly build market share.

A) gray

B) holding

C) penetration

D) cost‐based

E) skimming

10) The unauthorized distribution of trademarked goods to exploit price differentials in world markets is known as:

A) black marketing.

B) gray marketing.

C) licensing.

D) dumping.

E) market skimming.

11) 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, then that company may be accused of:

A) pursuing artificially high margins.

B) dumping.

C) using offsets.

D) market skimming.

E) gray marketing.

12) 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:

A) market penetration.

B) transfer pricing.

C) price skimming.

D) price bundling.

E) price fixing.

13) 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.

A) gray marketing

B) transfer pricing

C) price fixing

D) price skimming

E) dumping

14) One of the highest profile companies, PepsiCo, which has done business in the Soviet and post‐Soviet market for decades, has used this form of countertrade:

A) switch trading.

B) compensation trading.

C) offset.

D) barter.

E) counterpurchase.

15) If a companyʹs home currency strengthens, it is:

A) an unfavorable turn of events for the typical exporter.

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

C) an unfavorable turn of events for exporterʹs home country.

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

E) a favorable turn of events for the typical exporter.

16) Coca‐Cola Companyʹs global marketing leadership position is based in part on its ability to put Coke ʺwithin an armʹs reach of desireʺ; in other words, it is the ability to create:

A) place utility.

B) form utility.

C) time utility.

D) information utility.

E) all of the above

17) Some wine importers insist on shipping their wines in refrigerated containers to protect the wines from being damaged by high temperatures. Such importers are creating which kind of utility?

A) information utility

B) place utility

C) worker utility

D) time utility

E) form utility

18) Which of the following most accurately describes the relative length of consumer and industrial distribution channels?

A) Both consumer and industrial channels tend to be short (consist of few intermediaries).

B) Consumer channels tend to be shorter (consist of few intermediaries) than the industrial channels.

C) Industrial channels tend to be longer (consist of more intermediaries) than consumer channels.

D) Consumer channels tend to be longer (consist of more intermediaries) than industrial channels.

E) Both consumer and industrial channels tend to be long (consist of several intermediaries).

19) When Walmart stores first expanded into Mexico, management established a joint venture with the countryʹs largest retailer. Judging by the approach Walmart used, management must have viewed Mexico as:

A) culturally close and easy to enter.

B) culturally difficult and easy to enter.

C) culturally distant and difficult to enter.

D) culturally distant and easy to enter.

E) culturally close and difficult to enter.

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

A) chain acquisition

B) own‐label focus

C) joint venture

D) franchise

E) organic growth

21) Ads that tickle the funny bone of the intended audience and evoke response that will direct purchase behavior are based on:

A) emotional appeals.

B) melodramatic appeals.

C) rational appeals.

D) localized appeal.

E) SRC appeals.

22) One task of the ________ department is to generate nonpaid forms of communication to foster goodwill among customers and others.

A) sales promotion

B) advertising

C) headquarters

D) public relations

E) global marketing

23) Which promotional technique is best suited to a situation in which a company wants consumers to actually try its product or service at no cost?

A) sweepstakes

B) couponing

C) free‐standing inserts

D) sampling

E) personal selling

24) Promotions designed to increase product availability in distribution channels are known as:

A) nonprice promotions.

B) trade sales promotions.

C) price promotions.

D) consumer sales promotions.

E) sales promotions.

25) PepsiCo experienced great success in Latin America with its Numeromania contest, which lured consumers by promise of big cash prizes. They used the same contest in Poland successfully. This shows that:

A) Numeromania can be used in cash starved countries.

B) Numeromania can be used in different languages.

C) leverage experience gained in one country can be used in another country.

D) Numeromania helped in developing a taste for Pepsi in both countries.

E) economically squeezed consumers love Pepsi.

26) A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents when purchasing a Crest toothbrush. What type of sales promotion does this represent?

A) trade promotion coupon

B) online coupon

C) product placement coupon

D) cross coupon

E) freestanding coupon

27) Environmental issues and challenges faced by a company which is in the initial stages of implementing a personal selling strategy include all of the following except:

A) currency fluctuations.

B) market unknowns.

C) political risks.

D) product innovation.

E) regulatory hurdles.

28) Building a prospect base is typically part of which step of the strategic/consultative selling model?

A) development of a product strategy

B) development of a relationship strategy

C) development of a presentation strategy

D) development of a personal selling philosophy

E) development of a customer strategy

29) Negotiation requires both customer and the salesperson:

A) to be persistent in their point of view.

B) come away as losers.

C) come away as winners.

D) to be subjected to arm‐twisting.

E) to agree to disagree.

30) Product placement has reached the world of live theater and opera. The difference between product placement and other forms of promotion is:

A) ethical concerns are not taken into account.

B) viewers are being marketed to subliminally without their consent.

C) prominent personalities add a message about the product.

D) sponsors are recognized for their contribution.

E) products are focused showing different angles.