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Q:
The average price Xerox charged when it introduced the first stand-alone fax machine was $12,700. This premium price was a way for Xerox to recoup some of the research and development costs that went into production. Xerox used ________.
A) a skimming price
B) a trial price
C) penetration pricing
D) prestige pricing
E) target costing
Q:
Host-country nationals may possess work habits or selling styles that do not mesh with those of the parent company.
Q:
In advertising, a(n) ________ is an agent who chooses graphics, pictures, type styles, and other visual elements and has general responsibility for the overall look of an advertisement.
A) art director
B) copywriter
C) IMC manager
D) PR practitioner
E) stylist
Q:
A company with a regiocentric orientation is likely to utilize third-country nationals for its sales force in less developed countries.
Q:
Swatch surveyed the market and identified an unserved segment of watch buyers. Using these results, Swatch created a watch at a price consumers were willing to pay. The unorthodox order of this marketing mix decision is an example of ________.
A) competition-based pricing
B) cost-plus pricing
C) target costing
D) value pricing
E) penetration pricing
Q:
A recent global campaign for IKEA, the Swedish home furnishings retailer, positioned houses as homes as a place for love, memories, and laughter. This is a classic example of:
A) emotional appeal.
B) rational appeal.
C) selling proposition.
D) advertising appeal.
E) creative appeal.
Q:
Joe Bergerson makes and sells maple racks for cooling cakes and cookies. Joe knows that it costs $15 to make one rack, and he wants to earn a 25 percent profit on each rack. Which approach to pricing is Joe most likely to use?
A) demand-based pricing
B) target costing
C) cost-plus pricing
D) yield management pricing
E) value pricing
Q:
In companies where a polycentric management orientation prevails, host-country nationals will be used in most selling situations with the exception of high-tech products sold in developed countries.
Q:
The choice between demonstration, slice-of-life, straight sell, and other advertising forms is a matter of:
A) the creative strategy.
B) the advertising appeal.
C) the selling proposition.
D) the creative execution.
E) the big idea.
Q:
Ethnocentric companies are likely to use an expatriate sales force in countries at all levels of economic development.
Q:
When a snow blower shop offers a price reduction to customers who buy during the spring and summer, the shop is giving a(n) ________ discount.
A) functional
B) seasonal
C) annual
D) trade
E) allowance
Q:
Ads that tickle the funny bone of the intended audience and evoke response that will direct purchase behavior are based on:
A) rational appeals.
B) emotional appeals.
C) SRC appeals.
D) melodramatic appeals.
E) localized appeal.
Q:
Peppers and Rogers described different steps that are involved in one-to-one marketing. These steps include all of the following except:
A) identify.
B) differentiate.
C) interact.
D) evaluate.
E) customize.
Q:
A quantity discount is a price reduction to buyers who purchase ________.
A) frequently
B) large volumes
C) close outs
D) bundled products
E) seasonal products
Q:
In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes:
A) rational appeals.
B) emotional appeals.
C) SRC appeals.
D) melodramatic appeals.
E) localized appeal.
Q:
Which of the following is true about noncumulative quantity discounts?
A) They encourage large single orders.
B) They encourage a strong relationship between buyer and seller.
C) They are based on a total quantity purchased within a set time period.
D) They typically involve giving the buyer a credit to use against future orders.
E) They encourage small, regularly spaced orders.
Q:
Benefits for using sales agents include all of the followingexcept:
A) agents work under contract rather than as full-time employees.
B) agents are less expensive than full-time, in-country national sales representatives.
C) agents possess the same market knowledge as in-country nationals.
D) agents can eventually replace manufacturer's sales agents.
E) agents possess the same cultural knowledge as in-country nationals.
Q:
The advertising promise that captures the reason that people buy products is known as:
A) creative strategy.
B) the advertising appeal.
C) the selling proposition.
D) the creative execution.
E) the big idea.
Q:
Tobacco companies in Central Europe face the prospect of tougher marketing and advertisement regulations due to:
A) the growing concern about health hazards associated with smoking.
B) a dislike of global brands crowding out local brands.
C) a desire to return to communist-era policies.
D) a desire to comply with EU entry requirements.
E) the pressure from neighboring countries.
Q:
Trade or functional discounts are offered by manufacturers to which of the following?
A) channel intermediaries who perform wholesaling tasks that the manufacturer would otherwise have to perform
B) consumers who earn a price reduction for buying in bulk
C) intermediaries who pay their bills before they are due
D) manufacturers that agree to exclusive distribution contracts
E) the government market and other organizations that require bid proposals
Q:
After much trial and error in creating sales forces, most companies today attempt to establish a:
A) hybrid sales force composed of expatriates and in-country nationals.
B) sales force composed of a majority of expatriates.
C) hybrid sales force composed of expatriates and third country nationals.
D) sales force composed of third country nationals.
E) sales force consisting of all in-country nationals.
Q:
Other international personal selling approaches that fall somewhere between sales agents and full-time employee teams include all of the followingexcept:
A) exclusive license arrangements.
B) contract manufacturing or production.
C) management-only agreements.
D) franchising.
E) joint ventures.
Q:
A list price is also referred to as a ________.
A) captive price
B) bundled price
C) channel price
D) suggested retail price
E) basing-point price
Q:
Some of the world's most memorable advertising campaigns have achieved success because they originate from an idea that is so big that the campaign offers opportunities for a seemingly unlimited number of new executions. Such a campaign is said to have:
A) "life."
B) "legs."
C) "love."
D) "fun."
E) "toes."
Q:
When the seller takes on part or all of the cost of shipping, it is called ________.
A) freight absorption
B) F.O.B. factory
C) F.O.B. origin
D) uniform delivered
E) basing-point
Q:
The country which has a massive potential for cigarette manufacturers is:
A) Egypt.
B) Spain.
C) Turkey.
D) China.
E) Vietnam.
Q:
When a company must decide on the composition of its foreign sales force, which alternative is generally the most expensive?
A) expatriates
B) third-country nationals
C) host-country nationals
D) agents of any nationality
E) agents of host country
Q:
Which of the following is a disadvantage of using an expatriate sales force?
A) inferior product and company knowledge
B) capability to institute the acceptable practices
C) follow policies of the home office
D) enhanced promotion prospects
E) maintaining is very expensive
Q:
The significance of tobacco advertising is highlighted by the fact that ________ million people die each year as a direct result of consuming tobacco products.
A) two
B) three
C) four
D) five
E) six
Q:
When a company charges the same rate to ship a product anywhere in the United States, it is using which form of pricing?
A) freight absorption
B) F.O.B. factory
C) F.O.B. origin
D) uniform delivered
E) basing-point
Q:
With ________, the seller pays both the cost of loading and transporting the product to the customer.
A) uniform delivered pricing
B) basing-point pricing
C) F.O.B. origin pricing
D) F.O.B. delivered pricing
E) F.O.B. factory pricing
Q:
Which type of sales person is best suited to selling technologically-sophisticated products in developed countries?
A) expatriates
B) third-country nationals
C) host-country nationals
D) agents of any nationality
E) none of the above
Q:
The kind of brand awareness a company wants to project is identified by:
A) area coverage.
B) buyer perception.
C) company organization.
D) national responsiveness.
E) in-house marketing.
Q:
Japanese companies are less inclined to use this approach for selecting advertising agencies:
A) designate global agencies.
B) designate local agencies.
C) use ads in-house.
D) use outside agencies.
E) use in-house marketing.
Q:
Another name for F.O.B. factory pricing is ________ pricing.
A) captive
B) F.O.B destination
C) F.O.B. origin
D) F.O.B. delivered
E) basing-point
Q:
A company with a polycentric orientation is likely to employ host-country nationals in all but which of the following selling situations?
A) selling high-tech products in developed countries
B) selling high-tech products in less-developed countries
C) selling low-tech products in developed countries
D) selling low-tech products in less-developed countries
E) none of the above
Q:
In selecting an advertising agency, all but one of the following issues should be taken into consideration:
A) company organization.
B) national responsiveness.
C) area coverage.
D) buyer perception.
E) franchise or company owned status.
Q:
________ is a pricing tactic a firm uses for two products that work only when used together. The firm sells one item at a very low price and then makes its profit on the second high-margin item.
A) Two-part pricing
B) Price bundling
C) Captive pricing
D) Penetration pricing
E) Skim pricing
Q:
A company in which an ethnocentric orientation prevails is likely to utilize primarily ________ in its sales force.
A) host-country nationals
B) third-country nationals
C) expatriates
D) agents of any nationality
E) agents of host country
Q:
________ refers to the sale of two or more goods or services as a single package for one price.
A) Two-part pricing
B) Captive pricing
C) Price bundling
D) List pricing
E) Everyday low pricing
Q:
What are the issues and problems related to sales promotion in different parts of the world?
Q:
According to data published by Advertising Age (2012), which of the following is the largest global advertising agency network based on worldwide revenues?
A) WPP Group
B) Interpublic Group
C) Omnicom Group
D) Dentsu Inc.
E) Havas
Q:
A new product carries a low price for a limited period of time to attract customers in what type of pricing strategy?
A) price skimming
B) trial pricing
C) penetration pricing
D) specialty pricing
E) price bundling
Q:
Coupons are a favorite promotion tool of consumer packaged goods companies such as Proctor & Gamble and Unilever. How does the couponing work, and what are the advantages for using different types of coupons?
Q:
According to data published by Advertising Age (2012), which of the following is the largest global advertising organization based on worldwide revenues?
A) WPP Group
B) Interpublic Group
C) Omnicom Group
D) Dentsu Inc.
E) Havas
Q:
The final step in the 6-step sales presentation plan is closing the sale.
Q:
Which of the following is a reason that a marketer would choose a penetration pricing strategy?
A) to ensure the company has the ability to increase prices once demand decreases
B) to focus on the rapid achievement of profit objectives
C) to appeal to different consumer segments with different levels of price sensitivity
D) to create markets for highly technical products
E) to discourage competition from entering the market
Q:
Standardized print campaigns can be used in all of the following except:
A) visual appeal.
B) industrial products.
C) high-tech consumer products.
D) voiceovers TV commercials.
E) stereotype advertising.
Q:
The U.S.-style "I'll do whatever it takes to get your business" has proven to be a successful selling approach throughout the world.
Q:
A firm is using a(n) ________ strategy when it introduces a product at a very low price to gain market share early on.
A) skimming pricing
B) trial pricing
C) intensive pricing
D) penetration pricing
E) price bundling
Q:
When the subheads and body copy of an advertisement are localized, not simply translated, is an example of:
A) local advertising.
B) global advertising.
C) pattern advertising.
D) advocacy advertising.
E) stereotype advertising.
Q:
Relationship marketing, which stresses an approach on developing long-term relationships with customers, has been disliked by many U.S. companies.
Q:
Which of the following should be true for a skimming price to be successful?
A) Target consumers should be price sensitive.
B) Supply should exceed demand.
C) Demand must be stabilizing.
D) The producer should use intensive distribution.
E) There should be little chance that competitors can quickly enter the market.
Q:
In the language of global marketing, ________ is the phrase used to describe advertising that represents a middle ground between 100% standardization and 100% localization.
A) "stereotype advertising"
B) "template advertising"
C) "cookie-cutter advertising"
D) "compromise advertising"
E) "pattern advertising"
Q:
The Strategic/Consultative Selling Model consists of five interdependent steps, each with three prescriptions that can serve as a checklist for sales personnel.
Q:
A firm is using ________ when it charges a high, premium price for a new product with the intention of reducing the price in the future.
A) a skimming price
B) trial pricing
C) value pricing
D) penetration pricing
E) prestige pricing
Q:
________ is the phrase global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets.
A) "Pattern advertising"
B) "Template advertising"
C) "Cookie-cutter advertising"
D) "Model advertising"
E) "Stereotype advertising"
Q:
Which of the following is an example of a pricing strategy that focuses on customers' needs?
A) price leadership
B) everyday low pricing
C) distribution-based pricing
D) cost-plus pricing
E) skimming
Q:
Competitive advertising may impair the effectiveness of the message due to the fact that it may:
A) not reach the intended recipient.
B) reach the intended recipient but is misunderstood.
C) reach the intended recipient and is understood, but the recipient may fail to take action.
D) get distorted by noise.
E) only be in one language.
Q:
When MCI Communications first entered Latin America, it utilized expatriate Americans to work for them despite the high cost of doing so.
Q:
A company's efforts to effectively communicate with customers is very important. All of the following are major difficulties which can compromise an organization's attempt to communicate with customers except:
A) the message does not reach the intended recipient.
B) the message reaches the intended recipient but is misunderstood.
C) the message reaches the intended recipient and is understood, but the recipient may fail to take action.
D) the message is distorted by noise.
E) the message is only in one language.
Q:
Negotiation requires both customer and the salesperson:
A) to be persistent in their point of view.
B) to be subjected to arm-twisting.
C) to agree to disagree.
D) come away as winners.
E) come away as losers.
Q:
Two forms of demand-based pricing are ________.
A) price bundling and captive pricing
B) price skimming and penetration pricing
C) fixed pricing and variable pricing
D) target costing and yield management pricing
E) price leadership and everyday low pricing
Q:
With target costing, marketers first ________ and then ________.
A) build the marketing mix; identify the target market
B) identify target markets; set different prices for each market
C) design the product; determine its cost
D) use skimming pricing; use penetration pricing
E) determine a reasonable selling price; target costs to ensure that the price is met
Q:
In the six-step presentation plan, the first and last steps are respectively:
A) presentation; demonstration.
B) approach; close.
C) presentation; negotiation.
D) approach; presentation.
E) approach; servicing the sale.
Q:
What do Unilever and Procter & Gamble have in common?
A) Revenues at both companies have been hurt by regulations concerning tobacco advertising and promotion.
B) Both companies utilize extension approaches to advertising.
C) Both companies rank high in terms of non-U.S. ad spending.
D) Both companies use a great deal of corporate advertising.
E) Both companies use the same advertising agency.
Q:
Building a prospect base is typically part of which step of the Strategic/Consultative Selling model?
A) development of a customer strategy
B) development of a personal selling philosophy
C) development of a product strategy
D) development of a relationship strategy
E) development of a presentation strategy
Q:
In which type of pricing is the selling price based on an estimate of volume or quantity a firm can sell in different markets at different prices?
A) capacity management
B) target costing
C) demand-based
D) penetration
E) distribution-based
Q:
Which company ranks number one in terms of ad spending in Europe (2011)?
A) General Motors
B) Philip Morris
C) Unilever
D) Procter & Gamble
E) Coca-Cola
Q:
Which of the following is an advantage of using cost-based pricing methods?
A) They consider external factors such as competition.
B) They include consideration of the effects of demand.
C) They are relatively simple to calculate.
D) They make accurate cost estimating a simple process.
E) They take the product life cycle into consideration.
Q:
Which company ranks number one in terms of worldwide ad spending for the year 2011?
A) General Motors
B) Philip Morris
C) Unilever
D) Procter & Gamble
E) Coca-Cola
Q:
Which of the following is not a step in the Strategic/Consultative Selling model?
A) develop a marketing mix
B) develop a personal selling philosophy
C) develop a product strategy
D) develop a relationship strategy
E) develop a presentation strategy
Q:
Landor Associates, a company specializing in brand identity and design, recently determined that ________ has the number one brand-awareness and esteem position in the United States, number two in Japan, and number six in Europe.
A) McDonald's
B) Toyota
C) Sony
D) Pepsi
E) Coke
Q:
The method of setting prices in which marketers total all the costs for the product and then add an amount to arrive at the selling price is called ________.
A) supply-based pricing
B) target costing
C) cost-plus pricing
D) yield management pricing
E) demand-based pricing
Q:
Which of the following is not one of the steps in the Strategic/Consultative Selling model?
A) develop personal selling philosophy
B) develop relationship strategy
C) develop product strategy
D) develop ethnocentric policy
E) develop customer strategy
Q:
Because advertising is often designed to add ________ value to product or brand, it plays a more important communications role in marketing consumer products than in marketing industrial products.
A) social
B) monetary
C) cultural
D) psychological
E) emotional
Q:
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) political risks.
B) regulatory hurdles.
C) product innovation.
D) currency fluctuations.
E) market unknowns.
Q:
The most common cost-based approach to pricing is ________.
A) demand-based pricing
B) psychological pricing
C) yield management pricing
D) cost-plus pricing
E) cost-minus pricing
Q:
Which of the following product category/company pairings best illustrates the concept of "product cultures"?
A) earth-moving equipment/Caterpillar
B) personal hygiene/Procter & Gamble
C) coffee bars/Starbucks
D) batteries/Duracell
E) automobiles/Ford
Q:
To determine the break-even point, a firm first needs to calculate the contribution per unit. What does this mean?