Chapter 1—An Overview of Marketing



Chapter 1—An Overview of MarketingMULTIPLE CHOICE1.The term marketing refers to:a.new product concepts and improvementsb.sellingc.advertising and promotion activitiesd.a philosophy that stresses customer satisfactione.planning sales campaignsPTS:1REF:3OBJ:01-1 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy2.A business is concerned with many day-to-day activities. Some of the most important of these activities are the planning and development of a product, its pricing policy, and the distribution strategy. These activities are all a part of:a.a control systemb.marketingc.accountingd.productione.human resourcesThis description contains three of the four main activities included in the marketing function. Many students may mistakenly believe that marketing is only concerned with promotion.PTS:1REF:3OBJ:01-1 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product| TB&E Model Distribution3._____ is a philosophy, an attitude, a perspective, or a management orientation that stresses customer satisfaction.a.Planning strategyb.Customer managementc.Marketingd.A control systeme.ReciprocityPTS:1REF:3OBJ:01-1 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Product4.The American Marketing Association's definition of marketing:a.is limited to promotional activitiesb.focuses on the value of empowerment, teamwork, and customer valuec.shows how marketing benefits the marketerd.relies on the synergy created by exchangee.includes the processes marketers use to establish and maintain relationships with customersAccording to the American Marketing Association, marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.PTS:1REF:3OBJ:01-1 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Product5._____ is a key ingredient in the philosophy of marketing; it occurs when people give up something in order to receive something that they would rather have.a.Exchangeb.Synergyc.Transformationd.Leveraginge.ReciprocityPTS:1REF:3-4OBJ:01-1 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Product6.In order for exchange to occur:a.a complex societal system must be anized marketing activities must also take placec.a profit-oriented organization must be involved in the processd.money or other legal tender is requirede.each party must have something the other party considers to be valuableExchange involves the trade of items of value, but does not necessarily involve formal organizations, profit, or money/legal tender.PTS:1REF:3-4OBJ:01-1 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Product9.For an exchange to take place:a.there must be at least two parties involvedb.money must be used in the transactionc.each party must feel obligated to accept the offerd.at least one party must have something of value that the other party desirese.neither party must communicate with the otherPTS:1REF:3-4OBJ:01-1 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer10.Indonesian logging companies harvest the rainforests for timber and assume that a market exists for their products. The typical Indonesian logging company has a(n) _____ orientation.a.exchangeb.productc.productiond.salese.environmentalThe logging companies do not focus on the needs and desires of the marketplace.PTS:1REF:4-5OBJ:01-2 TYPE: AppTOP:AACSB Ethics| TB&E Model Product11.The concept of exchange is important to marketing because:a.if all the conditions for an exchange are in place, then the exchange will be completedb.exchange provides money to marketersc.marketing activities help to create exchanged.marketing activities are a requirement for exchange to take placee.money is the only medium of exchange for business marketersMarketing activities help the exchange to take place, but marketing can occur without an exchange.PTS:1REF:3-4OBJ:01-1 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Product14.Which of the following is NOT a marketing management philosophy?a.sales orientationb.societal marketing orientationc.market orientationd.profitability orientatione.production orientationPTS:1REF:4-6OBJ:01-2 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy15.Firms with a _____ orientation focus on the internal capabilities of the firm rather than on the desires and needs of the marketplace.a.salesb.productionc.marketd.customere.customer-benefitPTS:1REF:4-5OBJ:01-2 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Product16.A company that sets its goals and strategies based on what its current equipment can produce, what products engineering can design, and what the company itself can do best, has a(n) _____ orientation.a.marketplaceb.salesc.marketd.exchangee.productionPTS:1REF:4-5OBJ:01-2 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Product19.A firm with a production orientation is most likely to survive if:a.there are many small competitors in the marketplaceb.demand for the product it produces exceeds supplyc.the needs of the marketplace are constantly shiftingd.supply for the product it produces exceeds demande.any of the above conditions existThe production orientation can survive in the short term under a variety of conditions; however, if market needs change, long-term survival is difficult.PTS:1REF:4-5OBJ:01-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy20.A firm that adopts a(n) _____ orientation to marketing will fail to consider whether what the firm produces most efficiently also meets the needs of the marketplace.a.customerb.exchangec.productd.markete.productionThe production orientation forces a company to build whatever it builds best, that is, whatever it has the experience and expertise in doing.PTS:1REF:4-5OBJ:01-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer22.The _____ orientation assumes people will buy more if aggressive selling techniques are used.a.marketb.salesc.customerd.productione.exchangeThe sales orientation assumes aggressive selling is what is needed to increase demand.PTS:1REF:5OBJ:01-2 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Pricing23.A _____ orientation assumes marketing means selling things and collecting money. It also assumes people will buy more goods and services if aggressive marketing techniques are used.a.salesb.productionc.marketd.customere.marketplacePTS:1REF:5OBJ:01-2 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer25.If a company uses a sales orientation, consumer complaints would most likely result in:a.a modification of the sales presentationb.product reinventionc.continuous market researchd.philanthropye.attempts to cut production costsThe sales orientation relies on aggressive sales techniques to fuel business.PTS:1REF:5OBJ:01-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model panies that rely on the marketing concept and that have implemented a market orientation strategy recognize that:a.price is the most important variable for customersb.sales depend predominantly on an aggressive sales forcec.what the customer thinks he or she is buying is what is importantd.a company has to apply scientific management techniques to survivee.selling and marketing are essentially the same thingThe perceived product and perceived value are what the customer is buying, and the marketing concept and market orientation have endeavored to understand those perceptions.PTS:1REF:5-6OBJ:01-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer30.A company that has a market orientation and adheres to the marketing concept does NOT:a.integrate all the activities of the firm to satisfy customer wantsb.focus on consumer needs and wantsc.differentiate the firm's products from its competitor's productsd.fuel sales growth through the application of aggressive sales techniquese.concentrate on long-term goal achievement (such as profits and growth) for the firmAggressive sales techniques are part of the sales orientation and are not needed if a company is meeting needs and wants of its customers.PTS:1REF:5OBJ:01-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy| TB&E Model Product31.The statement, "Marketing should be introduced at the beginning rather than the end of the production cycle and integrated into each phase of the business," is consistent with a(n) _____ orientation.a.productionb.marketc.retaild.salese.enterpriseUnderstanding the competitive arena and competitors' strengths and weaknesses is a critical component of market orientation.PTS:1REF:5-6OBJ:01-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Product36.The marketing concept involves:a.focusing on customers' wants so that the organization can distinguish its product (or products) from the competitors' productsb.satisfying management's needs and wants with the idea of maximizing profits in the short runc.selling as much product as possible under the assumption people will buy more goods and services if aggressive selling techniques are usedd.selling as much as possible under the assumption consumers will buy more at lower pricese.focusing on production in order to increase product quality and lower pricesPTS:1REF:5-6OBJ:01-2 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer37.The marketing concept includes a goal orientation to remind managers that:a.achieving long-term organizational goals is as important as satisfying customersb.customers must be satisfied no matter what the long-term effect on the firmc.the only reason for any business to exist is to make a profitd.the objective is to find a target market that differs from that of the competitione.functional integration of all departments is useful but not essentialThe goal orientation refers to the company's goals, such as profit, growth, service, and survival.PTS:1REF:5-6OBJ:01-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer38.The marketing concept stresses that the social and economic justification for an organization's existence is the satisfaction of customer needs and wants while:a.producing a good or service at the lowest possible costb.improving the general standard of livingc.constantly increasing sales volumesd.applying scientific management techniques to improve efficiencye.simultaneously meeting organization objectivesThe marketing concept holds that the needs and wants of both the customer and the firm be served.PTS:1REF:5-6OBJ:01-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer40.An organization with a(n) _____ believes that it exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals' and society's long-term best interests.a.sales orientationb.market orientationc.ethical business missiond.focused target market strategye.societal orientationPTS:1REF:6OBJ:01-2 TYPE: DefTOP:AACSB Diversity| TB&E Model Customer45.Which of the following statements about the societal orientation is true?panies that protect the environment by using all-natural materials in their products are showing a societal marketing orientation.b.Marketers cannot deliver all benefits sought by customers because these benefits may not be in the long-term best interests of the customers.c.The societal marketing concept is an important refinement of the market concept.anizations have both a social and economic justification for their existence.e.All of these statements about the societal orientation are true.PTS:1REF:6OBJ:01-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Research| TB&E Model anizations that sell products that are often unsought (such as life insurance and retirement plans) may find themselves adopting a _____ orientation because the companies are marketing products that most people do not want.a.salesb.productionc.marketingd.producte.customerAggressive selling is sometimes used by companies that sell products their customers do not want to buy.PTS:1REF:5OBJ:01-2 TYPE: AppTOP:AACSB Reflective Thinking| TB&E Model Promotion57._____ gives customers the feeling their concerns are being addressed and at the same time gives employees the feeling their expertise matters to management.a.Management-employee anizational entropyc.Managerial reciprocityd.Empowermente.DelegationPTS:1REF:9OBJ:01-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer58.Market-oriented firms primarily focus their efforts upon:a.improving the technological skills and competitive advantages of the firmb.satisfying the organization's needs for low overheadc.achieving the company’s societal responsibilities inexpensivelyd.distributing goods and servicese.satisfying the wants and needs of their customersMarket-oriented firms are focused outward toward their customers.PTS:1REF:6OBJ:01-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer59.Which of the following statements about a typical sales-oriented business is true?a.The company develops its products to meet the needs of specific groups of people.b.The primary goal of the company is profit through customer satisfaction.c.The company invests the majority of its resources in promoting its products and services.d.The company is in business to satisfy customers' wants and needs and deliver superior value.e.All of these statements about a typical sales-oriented business are true.See Review Learning Outcome 3.PTS:1REF:6 | 10OBJ:01-3 TYPE: CompTOP:AACSB Analytic| TB&E Model Customer60._____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.a.Opportunity costb.Marketing utilityc.Market qualityd.Satisfaction percentagee.Customer valuePTS:1REF:6OBJ:01-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer61.Marketers interested in offering customer value can:a.offer products that performb.give the consumer factsc.offer organization-wide commitment to service and after-the-sale supportd.avoid unrealistic pricinge.do all of thesePTS:1REF:6-7OBJ:01-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product| TB&E Model Customer64.When customer expectations regarding product quality, service quality, and value-based price are met or exceeded, _____ is created.a.a value lineb.a quality riftc.planning excellenced.customer satisfactione.expectation satisfactionPTS:1REF:7OBJ:01-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product| TB&E Model Customer66._____ is a strategy that entails forging long-term partnerships with customers.mitment sellingb.Relationship marketingc.Transactional marketingd.Market anization-customer synergyPTS:1REF:8OBJ:01-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer71.Which of the following measures would be the best indicator of whether your organization's personnel have a customer orientation?a.Ask each employee's boss if that person is customer-oriented.b.Assess each employee's impact on the profitability of the firm.c.Survey customers on how oriented the organization's personnel are to customer needs and desires.d.Assess how well each employee has contributed to the marketing success of the firm by examining every financial statement created by the organization.e.Test employees on their knowledge of customer service techniques.The key to assessing how customer-oriented a firm's personnel are is to ask the customer. Only the customer can provide this type of information.PTS:1REF:8OBJ:01-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer73.Some market-oriented firms give employees expanded authority to solve customer problems on the spot. This is known as:a.trainingb.deregulationc.missioninge.mediatingPTS:1REF:9OBJ:01-3 TYPE: DefTOP:AACSB Communication| TB&E Model Customer76._____ is the collaborative efforts of people to achieve common objectives.a.Effort trainingb.Teamworkc.Empowermentd.OJT traininge.MediationPTS:1REF:9OBJ:01-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model StrategyChapter 3 (Current text edition chapters 3 & 4) MULTIPLE CHOICE1._____ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.a.Consumerismb.Corporate social responsibilityc.Cultural sensitivityd.Conventional moralitye.Environmental considerationPTS:1REF:29OBJ:03-1 TYPE: DefTOP:AACSB Ethics| TB&E Model Strategy3.Corporate social responsibility is defined as the:a.belief that the legal system defines ethical behaviorb.development of inclusive codes of ethicsc.rules by which social rewards are attainedd.concern for social welfare by businessese.coordination of social programs for publicity purposesPTS:1REF:29OBJ:03-1 TYPE: DefTOP:AACSB Ethics| TB&E Model Strategy4.Corporate social responsibility:a.is mandated by federal lawb.requires companies to sacrifice economic performance for the sake of their stakeholdersc.does not influence competitiond.may not always result in profit and growthe.is unaffected by environmental changesPTS:1REF:29OBJ:03-1 TYPE: CompTOP:AACSB Ethics| TB&E Model Strategy7._____ is the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.a.Sustainabilityb.Philanthropyc.Cause marketingd.Creative ethicse.International ethicsPTS:1REF:29OBJ:03-1 TYPE: DefTOP:AACSB Ethics| TB&E Model StrategyTOP:AACSB Ethics| TB&E Model Strategy9.The pyramid of corporate social responsibilities contains all of the following components EXCEPT:a.economic responsibilitiesb.ethical responsibilitiesc.cultural responsibilitiesd.legal responsibilitiese.philanthropic responsibilitiesSee Review Learning Outcome 1.PTS:1REF:29-30OBJ:03-1 TYPE: DefTOP:AACSB Ethics| TB&E Model Strategy15.The four components of the pyramid of corporate social responsibility are:a.sustainability, creativity, profit, and anizational culture, creativity imagery, economic performance, and anizational, financial, social, and cultural responsibilitiesd.sustainability, legality, creativity, and competitione.economic, legal, ethical, and philanthropic responsibilitiesPTS:1REF:29-30OBJ:03-1 TYPE: DefTOP:AACSB Ethics| TB&E Model Strategy16.Which of the following statements describes ethics?a.Ethics are the moral principles or values that generally govern the conduct of an individual.b.Ethics is the standard of behavior by which conduct is judged.c.Morals are a foundation for ethical behavior.d.Ethical values are situation specific and time oriented.e.All of the statements describe ethics.PTS:1REF:30OBJ:03-2 TYPE: CompTOP:AACSB Ethics| TB&E Model Strategy17.Which of the following sayings best describes how people with conventional morality act?a.Don't put all of your eggs in one basket.b.When in Rome, do as the Romans do.c.Be wary of strangers bearing gifts.d.A rolling stone gathers no moss.e.Don't count your chickens before they hatch.PTS:1REF:31OBJ:03-2 TYPE: CompTOP:AACSB Ethics| TB&E Model Strategy20.The use of ethical decision making:a.can be influenced by top managersb.is influenced by the probability of harmful outcomesc.depends on the number of people to be affectedd.depends on the magnitude of possible consequencese.is accurately described by all of the choicesPTS:1REF:31OBJ:03-2 TYPE: CompTOP:AACSB Ethics| TB&E Model Strategy22.Which of the following factors does NOT tend to influence ethical decision making and judgments?a.probability of a harmful outcomeb.length of time between decision and the onset of consequencesc.level of multiculturalismd.number of people to be affectede.potential magnitude of the consequencesPTS:1REF:31OBJ:03-2 TYPE: CompTOP:AACSB Ethics| AACSB Diversity| TB&E Model Strategy24.A human resources manager is creating a code of ethics for the employees of the retirement home she works for. Which of the following is NOT an ethics principle she should keep in mind as she creates this code?a.The principles should not upset current retirement home workers and future job applicants.b.Any decisions should be fair to all concerned: retirement home nurses, cleaning personnel, and administrative staff.c.Input on the code should be gained from other knowledgeable individuals or groups.d.Principles can deviate from common practices because of the prestigious nature of the facility.e.She should not have to pull rank or use coercion to implement her ethics code.An unethical code would presume that the company is an exception to a common practice in the industry.PTS:1REF:31-32OBJ:03-2 TYPE: CompTOP:AACSB Ethics| TB&E Model Strategy25.A(n) _____ is a defined group that managers feel is most likely to buy a firm's product.a.target marketb.buying centerc.aggregated unitd.consumer clustere.demographic samplePTS:1REF:32OBJ:03-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer27.Which of the following statements best describes the typical target market?a.A target market will remain stable over time, with the same group of consumers.b.Target markets change over time as consumers drop in or out of the market, and as tastes change.c.Target markets are not strongly affected by changes in the external environment.d.Target markets only change when the features and benefits of the product offering change.e.Target markets cannot be specifically defined according to age, income, or location because these factors are continually changing.Target markets are defined and described, but they are always changing in response to environmental changes.PTS:1REF:32OBJ:03-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer29.The external environment:a.can be controlled in much the same manner as the internal marketing mixb.cannot be influenced by marketing managersc.does not change over timed.does not have an impact on Fortune 500 companiese.must be continually monitored by marketing managersPTS:1REF:32OBJ:03-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy30.The external environment is a strong influence on a target market and can be a source of _____ for the marketing manager.a.opportunities and threatsb.threats and strengthsc.environmental loopholesd.opportunities and weaknessese.product myopiaThe external environment can provide opportunities to serve new and changing needs, as well as warnings about changes that could threaten the current position of the firm. Students will need to remember what a SWOT analysis is to answer this question.PTS:1REF:32OBJ:03-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer31.Marketing managers cannot control _____, but they can at times influence it.a.where advertising is placedb.the external environmentc.the sales forced.the distribution strategye.how products are pricedThe external environment is basically uncontrollable, but the other four answers are part of the marketing mix.PTS:1REF:32-33OBJ:03-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy33.What is apparently the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans?a.technologyb.social factorsc.petitione.economic conditionsSocial factors and changes are difficult to foresee, because they are usually slow and/or small changes. Also, it is very difficult for one company to affect social factors in any appreciable manner.PTS:1REF:33OBJ:03-4 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Marketing Plan35.When a company engages in _____, it is implementing strategies that attempt to shape the external environment in which it operates.a.synergistic controlb.environmental managementc.transactional managementd.market controle.reactive managementPTS:1REF:33OBJ:03-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy38._____ factors are the environmental factors concerned with the changes in people's values, lifestyles, and family roles.a.Socialb.Economicc.petitivee.DemographicPTS:1REF:33OBJ:03-4 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer43.Consumer preference for low-carb diets has greatly modified the way food is being marketed. This concern with health issues is an example of a(n) _____ factor.a.economicb.political and legalc.technologicald.demographice.socialPTS:1REF:33OBJ:03-4 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Product| TB&E Model Customer45.What do self-sufficiency, upward mobility, and conformity have in common?a.These are no longer valued attitudes.b.They are attitudes that can easily be changed.c.These are three perceptions that Americans have of the Asian lifestyle.d.These are three of the core values that have influenced lifestyles in the United States.e.They are the determinants of a component lifestyle.The fourth value is work ethic.PTS:1REF:33OBJ:03-4 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer48.A(n) _____ is the practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a single, traditional lifestyle.a.aggregated ponent lifestylec.psychographic mode of livingd.demographically defined lifestylee.targeted lifestylePTS:1REF:33-34OBJ:03-4 TYPE: DefTOP:AACSB Diversity| TB&E Model Product55.The growth of dual-income families has resulted in:a.burnoutb.a sense of entitlementc.decreased discretionary incomed.decreased GNPe.increased purchasing powerPTS:1REF:34OBJ:03-4 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer56.Which of the following events has had a greater effect on marketing than any other social change?a.the growing number of one-child familiesb.the increasing number of immigrants from Northern Europec.the growing number of people on the Internetd.the increasing number of working womene.the growing number of people of retirement age who are continuing workPTS:1REF:34OBJ:03-4 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer58.The study of people's vital statistics, such as their ages, births, deaths, and locations, is called:a.cultural sociologyb.psychometricsc.ecologyd.ethnographye.demographyPTS:1REF:34-35OBJ:03-5 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer59.Which of the following is NOT a demographic characteristic of a population?a.income levelb.agec.valuesd.educatione.birthrateValues are a social factor.PTS:1REF:34-35OBJ:03-5 TYPE: CompTOP:AACSB Diversity| TB&E Model Customer69.A multicultural society is characterized by:a.a population of recent immigrants that are closely related by custom and traditionb.a conglomeration of small and large ethnic groups that have little in commonc.even distribution of all ethnic groups in a geographic regiond.effective mass-marketing techniquese.one large dominating racial or ethnic group in a geographic areaPTS:1REF:39OBJ:03-6 TYPE: DefTOP:AACSB Diversity| TB&E Model Distribution| TB&E Model Customer71.A furniture retailer that specializes in selling entire rooms of furniture has hired you to identify 25 geographic target markets that can be described as multicultural societies. What types of locations should you offer this firm?a.cities that have historically had low immigration ratesb.traditional test marketsc.regions that are dominated by one ethnic group and that have multiple smaller ethnic groupsd.unindustrialized arease.locations in which all major ethnic groups in the area are equally representedMulticultural societies are not defined by geography, history, or products produced, but by the racial and ethnic composition of the population.PTS:1REF:39OBJ:03-6 TYPE: AppTOP:AACSB Diversity| TB&E Model Customer74.The higher your _____, the higher your purchasing power:a.gross incomeb.social classc.disposable incomed.cost of livinge.inflation indexPurchasing power is measured by comparing income to the relative cost of a set standard of goods an services. It is a aligned with net income, or income minus a standard set of expenses. Assuming a constant income, the higher the cost of living (the expenses), the lower the purchasing power.PTS:1REF:39-40OBJ:03-7 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer76.Factors, such as interest rates, inflation, and consumer income that influence the marketing environment, are called _____ factors.a.economicb.socio-demographicc.ernmente.consumptionPTS:1REF:39OBJ:03-7 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer77._____ is measured by comparing the relative cost of a standard of goods and services in different geographic areas.a.Gross individual profitb.Purchasing profitd.Relative pricinge.Price escalationPTS:1REF:39-40OBJ:03-7 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer78.When income is high relative to the cost of living, consumers _____.a.have more discretionary incomeb.begin anticipating a period of price decelerationc.stop buying luxury goods and servicesd.have significantly less disposable incomee.anticipate price escalation by stockpilingPTS:1REF:39-40OBJ:03-7 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Customer79._____ is the primary determinant of a person's earnings.a.Multiculturalismb.Lifestylec.Educationd.The aging of the baby boomerse.Global competitionPTS:1REF:39OBJ:03-7 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer80.____ is measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.a.Inflationb.Recessionc.Depressiond.Consumer break-evene.Price escalationPTS:1REF:40OBJ:03-7 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Pricing81.When planning marketing strategies during times of inflation, marketers must be aware inflation causes consumers to:a.purchase more goods and services to support their psychological selves, such as counseling and stress management trainingb.consume more meals away from homec.buy in small quantities until inflation is overd.decrease their brand loyalty to products they have traditionally usede.put more money into savings accounts because prices are too highIn times of inflation, consumers are more price conscious and less brand-loyal.PTS:1REF:40OBJ:03-7 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Pricing82.A period of economic activity when income, production, and employment tend to fall, reducing overall demand, is called:a.stagnationb.an inflationc.a recessiond.price escalatione.a depressionPTS:1REF:40OBJ:03-7 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Pricing85.Which of the following strategies is appropriate for a marketer to use during a time of economic recession?a.Promote product value.b.Maintain and improve customer services.c.Emphasize top-of-the-line products in promotions.d.Offer products that are economical and efficient.e.Do all of these.PTS:1REF:40-41OBJ:03-7 TYPE: CompTOP:AACSB Technology| TB&E Model Pricing86.Which of the following is sometimes an effective weapon for fighting inflation and recession?a.technologyb.line extensionsc.increased capital gains taxesd.introducing product-line extensionse.reducing R&D expendituresPTS:1REF:40-41OBJ:03-8 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Research87.Research that attempts to expand the frontiers of knowledge rather than solving a specific, pragmatic problem is called:a.technical diversityb.reactive researchc.applied researchd.experiential researche.basic researchPTS:1REF:41OBJ:03-8 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Research100.Laws and regulations of various governments and their ongoing development and change are an example of _____ factors and are part of all organizations' external environment.a.economic investmentb.political and legalc.research and petitivee.demographicPTS:1REF:42OBJ:03-9 TYPE: DefTOP:AACSB Technology| TB&E Model Strategy101.The _____ Act strengthened the Clayton Act to prevent corporate acquisitions that reduce competition.a.Hart-Scott-Rodinob.Lanham-Scottc.Celler-Kefauver Antimergerd.Robinson-Patmane.ShermanSee Exhibit 3.2. The Celler-Kefauver Act bolstered the Clayton Act's provision dealing with interlocking directorates and closed another loophole that had allowed corporate takeovers.PTS:1REF:42OBJ:03-9 TYPE: DefTOP:AACSB Analytic| TB&E Model Strategy102.The _____ Act requires large companies to notify the government of their intent to merge.a.Hart-Scott-Rodinob.Shermanc.Celler-Kefauver Antimergerd.Robinson-Patmane.LanhamSee Exhibit 3.2.PTS:1REF:42OBJ:03-9 TYPE: DefTOP:AACSB Analytic| TB&E Model Strategy103.The Gramm-Leach-Bliley Act and the Health Insurance Portability and Accountability Act are both important laws designed to:a.protect the channels of commerceb.restrict alcohol and tobacco advertisingc.eliminate certain products from being advertised on children’s television programsd.protect consumers from identity thefte.penalize marketers selling merchandise with counterfeit brand namesPTS:1REF:42OBJ:03-9 TYPE: DefTOP:AACSB Analytic| TB&E Model StrategyChapter 23.Strategic plans require:a.long-term resource commitmentsb.a change in organizational structurec.the addition of new personneld.new product developmente.changes in pricesStrategic plans are long-range plans that involve developing, organizing, and controlling marketing activities.PTS:1REF:15OBJ:02-1 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy4._____ is the managerial process of creating and maintaining a fit between the organization's objectives and resources and evolving market opportunities.a.Tactical managementb.The market auditc.Functional planningd.Environmental scanninge.Strategic planningPTS:1REF:15OBJ:02-1 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy7.Which of the following statements about a marketing plan is true?a.Marketing plans can exist as oral traditions.b.The marketing plan should be viewed as a series of sequential steps.c.All marketing plans have basically the same content.d.A marketing plan is created so an organization can meet its marketing objectives.e.All of the statements about a marketing plan are true.By definition, marketing plans are written. Several steps of the marketing plan can be done at the same time. The content of marketing plans varies.PTS:1REF:15OBJ:02-1 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Marketing Plan8._____ is the process of anticipating events and determining strategies to achieve organizational objectives.a.Planningb.Portfolio evaluationc.Forecastingd.Implementatione.EvaluationPTS:1REF:15OBJ:02-1 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Marketing Plan10.Marketing plans should be written to do all of the following EXCEPT:pare actual and expected performanceb.provide clearly stated activitiesc.create common goals for employees to work towardd.allow managers to enter the marketplace with an awareness of possibilities and problemse.control the elements of the external marketing environmentMarketing environment variables cannot be controlled.PTS:1REF:16OBJ:02-1 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Marketing Plan11.Which of the following is one of the elements of the marketing plan?a.a business mission statementb.a situation analysisc.a target market strategyd.the marketing mixe.all of the choicesSee Exhibit 2.1.PTS:1REF:17OBJ:02-1 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Marketing Plan13.The _____ answers the question, "What business are we in, and where are we going?"a.mission statementb.financial statementc.situation analysisd.market strategye.strategic planPTS:1REF:18OBJ:02-2 TYPE: DefTOP:AACSB Analytic| TB&E Model Strategy17.The focus of an organization's mission statement should be on:a.the products it wishes to sellb.the market it wishes to servec.its social responsibilitiesd.the desires of government regulatorse.technologies it understands wellThe choice of the market to serve determines the product and technology decisions.PTS:1REF:18OBJ:02-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy20._____ occurs when a business is defined in terms of goods and services rather than by the benefits customers seek from it.a.A circle trapb.A market barrier entryc.A reactive focusd.Unempowermente.Marketing myopiaPTS:1REF:18OBJ:02-2 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Product21.A popular technique for managing a large organization with different technologies and markets is to divide it into:a.strategic business unitsb.different technologiesc.strategic target marketsd.design matricese.tactical segmentsPTS:1REF:18OBJ:02-2 TYPE: DefTOP:AACSB Analytic| TB&E Model Strategy22.The acronym SBU refers to:a.stock in business unitsb.strategic business unitc.standard business utilizationd.strategic barter unitse.samples by unitsPTS:1REF:18OBJ:02-2 TYPE: DefTOP:AACSB Analytic| TB&E Model Strategy25.An SBU:petes with the same companies as the other SBUs in the parent organizationb.shares the same mission with all the other SBUs in the parent organizationc.controls its business independent of other SBUs in the organizationd.usually benefits from the combined corporate raw materials purchasese.still has strategic planning performed back at corporate headquartersSBUs have separate business functions from one another and have their own mission statements, markets, and planning.PTS:1REF:18OBJ:02-2 TYPE: DefTOP:AACSB Analytic| TB&E Model Strategy27.After management agrees on a mission statement, it must set objectives. Which of the following is NOT a characteristic of a good objective?a.profitableb.realisticc.measurabled.time-specifice.consistentGood objectives are not necessarily stated in terms of profit.PTS:1REF:18OBJ:02-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Pricing28.A _____ is defined as a statement of what is to be accomplished through marketing activities.a.mission statementb.business planc.marketing objectived.goal-driven directivee.marketing criteriaPTS:1REF:18OBJ:02-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy30.When an organization creates a mission statement that is too narrow, _____ results.a.marketing synergyb.marketing myopiac.directional marketingd.an internal threate.sustainable competitive advantageMarketing myopia defines a business in terms of goods and services rather than in terms of benefits customers seek. See Review Learning Outcome 2.PTS:1REF:18OBJ:02-2 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Product35.For marketing objectives to be realized, they must meet all of the following criteria EXCEPT:a.be consistent with organization objectivesb.be measurablec.be attainabled.be challenginge.be set within a one-year time frameThere is no one-year time frame restriction for marketing objectives although specifying a particular time frame makes an objective more clear and precise.PTS:1REF:18OBJ:02-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy37.A _____ is a formal study conducted by an organization to ascertain its current status and capabilities and its future expectations.a.situation analysisb.marketing auditc.trend analysisd.strategic alternative petitive advantage auditPTS:1REF:19OBJ:02-4 TYPE: DefTOP:AACSB Analytic| TB&E Model Research39.The SWOT acronym refers to a firm’s analysis of its:a.sales, width of product mix, observations, and technologyb.situations, wealth, organizational strengths, and target marketsc.strengths, weaknesses, opportunities, and threatsd.service levels, willingness to spend, organizational culture, and total revenuese.strategies, willingness to change, objectives, and trendsPTS:1REF:19OBJ:02-4 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy43._____ is defined as the collection and interpretation of information about forces, events, and relationships that may affect the organization.a.Market samplingb.An internal auditc.Opportunity analysisd.Environmental scanninge.Stakeholder analysisPTS:1REF:19OBJ:02-4 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Research61._____ show costs declining at a predictable rate as experience with a product increases.a.Liquidity growth curvesb.EOQ graphsc.Breakeven analysesd.Experience curvese.Supply/demand curvesPTS:1REF:20OBJ:02-5 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Product| TB&E Model Pricing62.Which of the following is NOT a source of a cost competitive advantage?a.reengineeringb.experience curvesc.break-even analysesd.efficient labore.production innovationPTS:1REF:20-21OBJ:02-5 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Pricing67.Which of the following is a type of strategic alternative that matches products and markets?a.vertical integrationb.product penetrationc.divestmentd.horizontal integratione.market penetrationPTS:1REF:22OBJ:02-6 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy68._____ is a strategy of increasing market share for present products in existing markets.a.Market penetrationb.Product developmentc.Market developmentd.Diversificatione.Product penetrationPTS:1REF:22OBJ:02-6 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy70._____ is a strategy that attracts new customers to existing products.a.Product developmentb.Market developmentc.Market penetrationd.Product penetratione.DiversificationPTS:1REF:22OBJ:02-6 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy75._____ is a strategy that creates new products for present markets.a.Product penetrationb.Market penetrationc.Product developmentd.Market developmente.DiversificationPTS:1REF:22OBJ:02-6 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy76._____ is the strategy of increasing sales by introducing new products into new markets.a.Product penetrationb.Product developmentc.Market penetrationd.Market developmente.DiversificationPTS:1REF:22OBJ:02-6 TYPE: DefTOP:AACSB Diversity| TB&E Model Strategy| TB&E Model International Perspective102.A(n) _____ describes and estimates the size and sales potential of market segments of interest to the firm and assesses key competitors in these market segments.a.marketing orientationb.environmental scanc.marketing mix auditd.target market strategye.market opportunity analysisPTS:1REF:24OBJ:02-7 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy105.The _____ is the unique blend of product, distribution, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.a.internal environmental mixb.marketing mixc.product mixd.product linee.market portfolioPTS:1REF:25OBJ:02-8 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy106.The starting point of any firm's marketing mix is the:a.analysis of what production equipment is available and owned by the companyb.design of the promotion campaign to be used for the productc.selection of the places through which the good or service will be soldd.determination of the product's price, enabling future revenues and budgets to be estimatede.development of the good or service to be soldThe product is the starting point for any marketing mix. Without it, pricing, distribution, and promotion are irrelevant. The production capacity can be changed to fit the proposed product.PTS:1REF:25OBJ:02-8 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy109.Making sure products are available when and where customers want them is the job of which element of the marketing mix?a.advertising strategiesb.production strategiesc.product strategiesd.promotion strategiese.distribution strategiesDistribution strategies make products available when and where customers want them.PTS:1REF:25-26OBJ:02-8 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Distribution| TB&E Model ProductChapter 4 (Current text edition chapter 5)MULTIPLE CHOICE1.Individuals and organizations utilizing a global vision to effectively market goods and services across national boundaries are engaged in:a.developing international selling schemesb.implementing standard international marketingc.implementing global marketing standardizationd.supplementing their foreign visione.practicing global marketingPTS:1REF:47OBJ:04-1 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model International Perspective| TB&E Model Product3.Which of the following statements about global marketing is true?a.Marketing to target markets throughout the world has become an imperative for business.b.Often a U.S. firm's toughest domestic competition comes from foreign companies.c.Marketing managers must develop a global vision not only to recognize and react to international marketing opportunities but also to remain competitive at home.d.Adopting a global vision can be lucrative for a company, and global marketing can offset weak domestic performance.e.All of these statements about global marketing are true.PTS:1REF:47OBJ:04-1 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model International Perspective6.Which of the following statements about multinational firms is true?a.Multinationals typically do not change their methods of reaching their global markets if they are successful with their initial strategy.b.Multinationals are defined as companies heavily engaged in exporting and importing.c.All multinationals must enter the fourth stage of globalization before they are fully internationalized.d.Multinationals often develop their global businesses in stages.e.The five stages of globalization closely mirror the five stages of the product life cycle.Multinationals can go through up to four stages in their quest to globalize their business. Generally, only high-tech firms ever reach the fourth stage. Multinationals are companies that heavily engage in international trade, beyond exporting and importing.PTS:1REF:49-50OBJ:04-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model International Perspective7.A(n) _____ is a company that is heavily engaged in global trade and moves its resources, goods, services, and skills across national boundaries.a.international facilitatorb.global traderc.multinational corporationd.exporting companye.international merchantPTS:1REF:49-50OBJ:04-2 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model International Perspective| TB&E Model Distribution10.Which of the following describes a common criticism of multinational companies?a.the transference of the wrong kind of technology to a developing nationb.excessive employment informationc.countertradingd.the transference of labor-intensive technologye.dumpingTypically, the technology needed to run operations in developing nations is capital-intensive and thus does not substantially increase employment.PTS:1REF:50OBJ:04-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model International Perspective11.A company that is capital-intensive:a.has an altered fiscal strategy for overseas operationsb.spends more on equipment than on laborc.makes better use of benchmarking than other types of businessd.creates employment monopoliese.must engage in countertrading due to restrictive foreign legislaturePTS:1REF:50OBJ:04-2 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model International Perspective13.With a _____, a firm produces standardized products to be sold the same way all over the world.a.traditional marketing strategyb.global marketing standardization approachc.product extension approachd.culturally based marketing strategye.synergistic approach to marketingPTS:1REF:50OBJ:04-2 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model International Perspective| TB&E Model Product14.Global marketing standardization:a.is becoming less popular with the large multinationalsb.encourages product, packaging, and advertising variations for each nation or local marketc.actually raises production costsd.presumes markets throughout the world are becoming more alikee.is more popular with consumer products than with industrial goodsWith a global marketing standardization approach, a firm produces standardized products to be sold the same way worldwide. This approach assumes all customers have the same needs and wants.PTS:1REF:50OBJ:04-2 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model International Perspective16.A business thinking of expanding into global markets needs to examine all of the following external environments EXCEPT:a.cultureb.political structure and actionsc.its marketing mixd.natural resourcese.demographic makeupThe marketing mix is the keystone of a company's internal environment.PTS:1REF:50OBJ:04-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model International Perspective| TB&E Model Strategy17.Central to any society is a common set of values shared by its citizens that determines what is socially acceptable. Marketers refer to these values collectively as a country's:a.ethical systemb.culturec.ethnocentricityd.national personalitye.socializationPTS:1REF:50-51OBJ:04-3 TYPE: DefTOP:AACSB Diversity| TB&E Model Customer24.Which of the following is an important cultural factor that should be considered by global marketers?petitive synergyb.languagec.natural resourcesd.technology sensitivitye.level of economic developmentPTS:1REF:51OBJ:04-3 TYPE: CompTOP:AACSB Diversity| TB&E Model Strategy26.Which of the following statements about the political environment is true?a.A recession is part of the political environment.b.A country is either socialistic or capitalistic, but never both.c.The countries with the least across-the-board regulations and political structures foster the strongest economies.d.The European Union is purely an economic arrangement and has no political impact on marketing.e.All of these statements about the political environment are true.Recession is an economic factor. Countries are a combination of socialism and capitalism. The European Union is a means for the member nations to pursue an economic, monetary, and political union.PTS:1REF:51-52OBJ:04-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy31.A tax levied on the goods entering a country is called a(n):a.licenseb.quotac.boycottd.exchange controle.tariffPTS:1REF:52OBJ:04-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Pricing| TB&E Model Product33.A(n) _____ is a limit on the amount of a specific product that can enter a country.a.quotab.tariffc.boycottd.exchange controle.transfer limitPTS:1REF:52OBJ:04-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Product36.An exclusion of all products from certain countries or companies by a government or group is called a(n):a.expropriationb.quotac.tariffd.exchange controle.boycottPTS:1REF:52OBJ:04-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Product39.A(n) _____ is a law that compels a company earning foreign currency from its exports to sell it to a central bank rather than sending the money out of the country.a.tariffb.quotac.fiscal prerequisited.exchange controle.transfer barrierPTS:1REF:52OBJ:04-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Pricing40._____ are trade alliances in which several countries agree to work together to form a common trade area that enhances trade opportunities among those countries.a.Boycottsb.Regional unificationsc.Market groupingsd.Free trade nationse.Expropriation membersPTS:1REF:52OBJ:04-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy41.Negotiations (such as GATT or the Uruguay Round) between countries that are made to stimulate global exchange and remove barriers are called _____ agreements.a.tradeb.joint venturec.CRMd.exchangee.licensingPTS:1REF:52OBJ:04-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy42._____ is a trade agreement that includes Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru, and Uruguay. This agreement eliminated the tariffs among these trading partners.a.NAFTAb.Maastrichtc.WTOd.GATTe.MercosurPTS:1REF:52OBJ:04-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy43.The latest round of World Trade Organization (WTO) talks has been contentious. A major goal of this _____ is to bolster the developing economies of Africa, Asia, and Latin America where up to two-thirds of the population works in agriculture.a.Mercosur covenantb.CAFTA Alliancec.Doha Roundd.Uruguay Rounde.WTO RoundPTS:1REF:52-53OBJ:04-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model International Perspective44.The _____ of trade negotiations created the _____, which replaces GATT. This trade agreement dramatically lowers trade barriers worldwide.a.Uruguay Round; World Trade Organizationb.Doha Round; European Unionc.Doha Round; NAFTAd.Paraguay Round; South American Free Trade Agreemente.Mercosur; European UnionThe Uruguay Round created the WTO.PTS:1REF:53OBJ:04-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy45.The _____ is the most ambitious global trade agreement ever negotiated; the agreement has reduced tariffs by one-third worldwide.a.Uruguay Roundb.Mercosurc.GATTd.NAFTAe.Maastricht TreatyPTS:1REF:52-53OBJ:04-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy46.The North American Free Trade Agreement (NAFTA) did NOT:a.create the world's largest free-trade zone including Canada, the United States, and Mexicob.substantially reduce economic growth in Mexicoc.allow U.S. and Canadian financial-services companies to own subsidiaries in Mexicod.remove many tariffs and duties so that Mexico, Canada, and the United States can trade more freelye.expand opportunities for U.S. businesses in MexicoOver the years, Mexico has made economic gains due to NAFTA.PTS:1REF:53OBJ:04-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Distribution48.The goal of the Central America Free Trade Agreement (CAFTA) is to:a.create free-trade agreements between the United States and other industrialized nationsb.eliminate all protectionismc.raise prosperity levels in all industrializing nationsd.establish a free trade agreement between the United States and certain Latin American countriese.make sure all nations achieve the economic and technological development of a takeover economy or betterPTS:1REF:53OBJ:04-3 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy49.Which of the following statements about the European Union (EU) is true?a.The EU creates a single Europroduct for a generic Euroconsumer.b.The EU removes all internal trade barriers and standardizes regulations in European countries for easier trade.c.The EU can correctly be called the "United States of Europe" because all European voters have agreed to these changes.d.The existence of the EU eliminates protectionist movements by United Europe against the Japanese and the United States.e.None of these statements about the EU is true.Because of diverse languages and cultures, no "United States of Europe" or a generic Euroconsumer results from United Europe. There exists the possibility of a protectionist movement and increased competition. It does not eliminate all trade barriers.PTS:1REF:54OBJ:04-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy51.A multinational company that makes a labor-intensive product would be interested in the _____ makeup of countries. Factors such as median age, gender, and literacy rates would determine the success of its global expansion.a.demographicb.lifestylec.naturald.culturale.economicDemographics include age and educational levels as well as ethnicity and gender.PTS:1REF:54-55OBJ:04-3 TYPE: AppTOP:AACSB Reflective Thinking| TB&E Model International Perspective54.Vast differences in natural resources create all of the following EXCEPT:a.potential for military interventionb.shifts in wealth between nationsc.inflation and recessiond.global dependenciese.export opportunities for countries with no natural resourcesWhile differences do create shifts in wealth, dependencies, inflation, recession, and the potential for conflict, they only hinder opportunities for the countries that do not have resources.PTS:1REF:55OBJ:04-3 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy55.Which method of entering the global marketplace would be LEAST risky?a.exportingb.licensingc.contract manufacturingd.joint venturese.direct investmentSee Exhibit 4.1.PTS:1REF:55-56OBJ:04-4 TYPE: CompTOP:AACSB Reflective Thinking| TB&E Model Strategy63.A(n) _____ is a global intermediary that operates primarily in agriculture and raw materials by bringing the buyer and seller together.a.buyer for exportb.export agentc.license agentd.import agente.export brokerPTS:1REF:55OBJ:04-4 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy64.A cooperative of egg producers believes a profitable market for eggs exists overseas where people are not as concerned about cholesterol. If the cooperative decides to export, it will most likely use a(n):mission merchantb.drop shipperc.export brokerd.import agente.export agentExport brokers typically handle agriculture and raw materials.PTS:1REF:56OBJ:04-4 TYPE: AppTOP:AACSB Analytic| TB&E Model Product65._____ are foreign sales agents-distributors who live in a foreign country and represent a domestic company in sales situations. They perform the same functions as domestic manufacturers' agents who help with financing and shipping.a.Export agentsb.Export brokersc.Import brokerd.Buyers for exporte.Licensing agentsPTS:1REF:56OBJ:04-4 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Strategy66.The _____ is an intermediary in the global market who assumes all risks and sells globally for its own account. The domestic manufacturer usually treats it like a domestic customer.a.buyer for exportb.export agentc.joint venturerd.contract manufacturere.market groupPTS:1REF:55OBJ:04-4 TYPE: DefTOP:AACSB Reflective Thinking| TB&E Model Customer ................
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