Q&A Hero

Q: As a result of the digital revolution, a variety of companies in all parts of the world are developing a new generation of products, services, and technologies; which include all of the following except: A) broadband network. B) mobile commerce. C) wireless connectivity. D) smart cell phones. E) landline connectivity.

Q: Grayville Rock and Gravel, located in a seaport town, sells rock, gravel, and sand to local markets. It has just been awarded a contract with a company 500 miles down the coast. Management should consider switching from truck to ________ transport to save money. A) water B) railroads C) pipeline D) air E) none of the above

Q: In Michael Porter's model, "buyers" refers to manufacturers (e.g., GM) and retailers (e.g. Walmart), rather than consumers.

Q: A broadband communication system is one that has sufficient capacity to carry simultaneously which of the following? A) multiple voice B) data C) video D) music E) all of the above

Q: Analyzed in terms of Porter's five forces model, online music file sharing services represent a threat to the music industry in the form of a substitute product.

Q: Jewels for the Rich and Famous sells very exclusive jewelry with a minimum price of $25,000 to customers around the world. Speed of delivery to distant markets is a must. Management should use ________ as its main carrier. A) railroads B) air C) trucks D) water E) pipeline

Q: The country which boasts the world's fastest average Internet speed is: A) Russia. B) China. C) South Korea. D) India. E) Japan.

Q: At some catalog retailers, employees on roller skates called pickers are handed a printout of the products a customer wants, and then the pickers skate through large warehouses accumulating the desired products into one central location. The pickers are engaged in ________. A) enterprise resource planning B) transportation C) materials handling D) warehousing E) inventory control

Q: Product differentiation and brand loyalty "raise the bar" for would-be industry entrants who would be required to make minimal investments in research or advertising.

Q: The Web site's architecture should be flexible enough to allow all of the following except: A) different dates. B) currency. C) money formatting. D) local culture. E) privacy.

Q: It is advisable to start a double-ACSII platform when designing a Web site's architecture since: A) English language can store only a maximum of 256 characters. B) French and German languages use Latin alphabet. C) German-language Web site requires double the English Web site's capacity. D) French and German languages cannot be used in Web site's architecture. E) Japanese and Chinese languages require a database which supports such platform.

Q: Through the practice of insourcing, a company brings in an external company to run its ________. A) human resource management B) nonessential operations C) essential operations D) value proposition E) facilitating functions

Q: Established firms do not enjoy cost advantages independent of scale economies that present a barrier to entry.

Q: The practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it is called: A) gray market. B) piracy. C) copyright violation. D) cybersquatting. E) patent violation.

Q: Which of the following figures is needed to calculate inventory turnover? A) annual cost of sales B) number of levels in the distribution channel C) slotting allowance fees D) number of product returns E) number of stockouts

Q: Microsoft's extensive base of Windows operating systems and applications presented a formidable entry barrier for many years.

Q: Which of the following includes all the activities necessary to convert raw materials into a good or service and put it in the hands of the consumer or business customer? A) the supply chain B) the value chain C) the channel of distribution D) the retailer chain E) the industrial network

Q: One of the problems with Web site sales is credit card fraud. All of the following countries are those where fraud is rampant except: A) Indonesia. B) Russia. C) Croatia. D) Malaysia. E) Bosnia.

Q: "Switching costs" are one of the barriers to entry in Porter's five forces model.

Q: Although it is certainly possible for European consumers to browse Amazon.com's U.S. site, they prefer a direct link to a site with a local domain name. All of the following are possible reasons for such behavior except: A) the Web site of choice will be one that quotes prices in euros. B) the Web site of choice will be that which offers a product selection tailored to local tastes. C) the preference will be for the Web site which ships from local distribution points. D) due to price fluctuations the preference will be for the Web site that quotes prices in U.S. dollars. E) the preference will be for sites that are in their own language.

Q: A firm that brings in outside companies to accomplish supply chain activities is using ________. A) insourcing B) outsourcing C) crowdsourcing D) intensive distribution E) exclusive distribution

Q: Apple's success with the iPhone prompted Samsung and others to enter the market. This is an example of the "perfect competition."

Q: Which of the following is not a critical issue for a company whose management intends to engage in e-commerce? A) privacy B) credit card fraud in developing countries C) ensuring that logos and other brand identity elements are consistent with local preferences D) ensuring a company's ASCII system supports a particular language E) the availability of hot spots for Wi-Fi

Q: Through the use of ________, a company is able to know exactly where a product is located within the distribution channel. A) ERP B) RFID C) PRM D) VMS E) JIT

Q: Competition in an industry tends to drive rates of return on invested capital up towards the level of "perfect competition."

Q: Ideally, each country-specific site should reflect all of the following except: A) local culture. B) language usage. C) customs. D) universal shopping cart icon. E) brand identity.

Q: To reduce inventory management costs, many companies use a system called ________, which involves carrying only small inventories of parts or merchandise, often only enough for a few days of operation. A) just in time (JIT) B) supply chain management C) value chain management D) logistics management E) enterprise resource planning (ERP)

Q: A useful way of gaining insight into competitors is through industry analysis.

Q: The domain name for Amazon.com for Germany is: A) amazon.com.gm. B) amazon.gr. C) amazon.ge. D) amazon.de. E) amazon.gm.

Q: Which of the following is a logistics activity that involves developing and implementing a process to ensure the firm always has sufficient goods available to meet customers' demands, no more and no less? A) materials handling B) inventory control C) supply chain supervision D) order processing E) distribution implementation

Q: Volkswagen Auto Group of America markets both the VW and Audi nameplates in the United States; in 2014, unit sales for the group totaled nearly 550,000 vehicles. However, the VW brand has been hampered by perceptions of hit-and-miss quality.

Q: Wunderman and Digitas are: A) popular Internet auction sites in Japan. B) leading digital agencies. C) European companies with highly rated Web sites. D) competing standards for wireless connectivity. E) popular digital media products.

Q: The fastest and most expensive mode of transportation is ________. A) railroads B) water C) the Internet D) pipeline E) air

Q: Francisco Martnez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart's entry into Mexico, Mr. Martnez notes, "I buy 20,000 plastic toys, and Walmart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment? A) Walmart's buyer power and cost leadership B) Walmart's barriers to entry and differentiation C) Walmart's loose bricks and switching costs D) Walmart's focused differentiation and supplier power E) Walmart's discount policies for customers

Q: Which is the top Digital Agency Network based on 2012 Interactive Marketing Revenue? A) OgilvyInteractive (WPP) B) SapientNitro (Sapient Corp.) C) Digitas (Publicis) D) Razorfish (Publicis) E) Wunderman (WPP)

Q: Which of the following do manufacturers typically NOT use as a factor in deciding which mode of transportation to use for a product? A) dependability B) cost C) accessibility D) responsiveness E) traceability

Q: Porter's four generic strategies for achieving competitive advantage are: A) price determination, cost leadership, product differentiation, distribution savings. B) cost leadership, product differentiation, cost challenger, product challenger. C) price leadership, product differentiation, price challenger, cost differentiation. D) cost leadership, product differentiation, cost focus, focused differentiation. E) cost leadership, product differentiation, consumer differentiation, focused differentiation.

Q: Some global marketers make the strategic decision to establish a presence on the Web without offering transaction opportunities even though the product could be sold that way. Such sites are known as: A) company sites. B) transaction sites. C) promotion sites. D) content sites. E) cyber sites.

Q: What type of utility does warehousing provide to consumers by holding onto products until consumers need them? A) time B) ownership C) production D) form E) packaging

Q: Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but eventually does not actually place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following elements of the five forces model is evident here? A) barriers to entry B) bargaining power of suppliers C) bargaining power of buyers D) threat of substitute products E) threat of new entrants

Q: Until recently, visitors to Web sites for most luxury goods purveyors were not given the opportunity to buy. The reason behind this was: A) luxury goods purveyors did not like to use online promotions. B) luxury goods purveyors strive to create a shopping experience. C) global audience do not go online for luxury goods. D) luxury goods purveyors prefer sending information on iPad. E) luxury goods are purchased by rich people who do not shop online.

Q: The difference between distribution centers and storage warehouses is that distribution centers are designed to ________. A) have greater capacity B) store goods for longer periods C) perform other functions, such as breaking bulk D) primarily be owned by the manufacturer E) be automated

Q: Several factors can create intense rivalry among firms. These factors include all of the following factors except: A) firms focus on market share at the expense of others. B) firms feel pressure due to fixed costs and produce at full capacity. C) lack of differentiation in products and services. D) upward pressure on prices and profitability. E) absence of switching costs for customers.

Q: Amazon.com, the leading Internet bookseller, allows users to purchase books, CDs, and other products online. Amazon.com is primarily a(n) ________ site. A) promotion B) content C) transaction D) execution E) cyber

Q: Which of the following integrates information from across the company in order to automate order processing? A) just-in-time inventory techniques (JIT) B) radio frequency identification (RFID) C) vertical marketing system (VMS) D) horizontal marketing system E) enterprise resource planning system (ERP)

Q: Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.

Q: Which stage of activity in logistics involves waste disposal and recycling? A) inbound logistics B) operations C) outbound logistics D) reverse logistics E) services

Q: Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except: A) large numbers and relatively few in number. B) suppliers' products or services are important to user firms. C) suppliers' products or services are highly differentiated. D) alternative products do not threaten suppliers' business. E) buyers preferences are highly differentiated.

Q: Web sites that provide news and entertainment and support a company's PR efforts are known as: A) company sites. B) transaction sites. C) promotion sites. D) content sites. E) cyber sites.

Q: Which stage of activity in logistics involves shipping the product out to customers? A) inbound logistics B) operations C) outbound logistics D) reverse logistics E) services

Q: Web sites can be classified by purpose as represented by the term: A) matrix sites. B) international sites. C) geographic sites. D) promotion sites. E) regional sites.

Q: Dell's factories can assemble a complete PC in three minutes. With a build-to-order strategy at the heart of its business model, Dell's sales staff maintains close ties with customers. This approach represents which aspect of the Porter's five forces model? A) rivalry among competitors B) bargaining power of buyers C) threat of substitute products D) threat of new entrants E) bargaining power of suppliers

Q: During ________ the company receives materials it needs to manufacture its products. A) inbound logistics B) operations C) outbound logistics D) marketing and sales E) service

Q: ________ are online retail operations that allow customers to purchase goods and services. A) Promotion sites B) Matrix sites C) Transfer sites D) Transaction sites E) Content sites

Q: In the tech world, about 90% of the world's nearly one billion PCs use Microsoft's operating systems and 80% use Intel's microprocessors. This represents which aspect of the Porter's five forces model? A) bargaining power of suppliers B) bargaining power of buyers C) threat of substitute products D) rivalry among competitors E) threat of new entrants

Q: Marketing logistics involves which of the following types of distribution flows? A) outbound and inbound only B) outbound, inbound, and reverse C) outbound and reverse only D) inbound and reverse only E) outbound only

Q: According to Christensen's five principles of disruptive innovations, the following statement is not true: A) companies depend on customers and investors for resources. B) small markets solve the growth needs of large companies. C) markets that don't exist can't be analyzed. D) an organization's capabilities define its disabilities. E) technology supply may not equal market demand.

Q: Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of a barrier to entry classified as: A) new capacity. B) product differentiation. C) competitor response. D) new approaches to customer needs. E) distribution channels.

Q: Which of the following is the process of designing, managing, and improving the movement of products through the supply chain? A) logistics B) warehousing C) materials handling D) inventory management E) distribution strategy

Q: "Small markets don't solve the growth needs of large companies" and "markets that don't exist can't be analyzed" are two principles of disruptive innovation. These principles are integral to: A) the five forces model. B) the flagship model. C) strategic intent. D) the innovator's dilemma. E) the innovator's dream.

Q: New entrants to an industry bring all of the following except: A) new capacity. B) desire to gain market share. C) desire to gain market position. D) new approaches to customer needs. E) decline in per-unit product costs.

Q: What types of products are selectively distributed?

Q: Each network has its own "metrics of value." For laptop computers this value would include all of the following except: A) small size. B) low weight. C) power consumption. D) memory capacity. E) rugged design.

Q: Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.

Q: What types of products are exclusively distributed?

Q: Which of the following principles of disruptive innovation pertains to the notion of agnostic marketing? A) Companies depend on customers for resources. B) Small markets don't satisfy the growth needs of large companies. C) Markets that don't exist can't be analyzed. D) Technology supply may not equal market demand. E) A company's capabilities define its weaknesses.

Q: Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry? A) loose bricks B) switching costs C) economies of scale D) product differentiation E) access to distribution channels

Q: What types of products are intensively distributed?

Q: In every industry, companies are embedded in a(n) ________, which has a cost structure associated with it that dictates the margins needed to achieve profitability. A) innovator's dilemma B) transaction C) URL D) value network E) digital network

Q: Which of the following is not identified by Porter as one of the five forces that explains competition in an industry? A) threat of new entrants B) threat of substitute products or services C) bargaining power of suppliers D) bargaining power of competitors E) the competitive rivalry among current members

Q: How can a firm benefit from participating in a horizontal marketing system?

Q: Which of the following is not one of Clayton Christensen's principles of disruptive innovation? A) Companies depend on customers for resources. B) Small markets don't satisfy the growth needs of large companies. C) Markets that don't exist can't be analyzed. D) Technology supply may not equal market demand. E) E-commerce activities can be divided into three categories.

Q: According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines: A) whether or not the government will launch an antitrust investigation. B) the industry's profit potential in terms of long-run return on invested capital. C) whether a country can generate a balance of payments surplus. D) whether a country can create a comparative advantage in the production of differentiated products. E) whether a country can generate income by innovation.

Q: How can a firm benefit from involvement in a contractual VMS?

Q: According to the innovator's dilemma: A) the computing power of a microprocessor doubles every 18 months. B) markets that don't exist can't be analyzed. C) well-managed companies that listen and respond to needs of established customers may miss opportunities to innovate. D) regulation of e-commerce activities will increase at a rate that is directly proportional to the growth of e-commerce revenues. E) innovations are copied soon after they are discovered.

Q: Kodak has easily made the transition from industry leadership in chemical-based photography to industry leadership in digital photography.

Q: Explain channel power in a vertical marketing system.

Q: A key player in the cell phone business who could have been first to market with a cell phone camera is: A) Ericsson. B) Samsung. C) Motorola. D) Sprint. E) AT&T.

Q: "Convergence" is a term that describes a world in which the telecommunications, consumer electronics, computer, and entertainment industries are entering each other's markets.

Q: Describe the three sources of power for a channel captain.