ADM 2320 Lecture Notes - Lecture 5: Business Marketing, Carbon Footprint, Distance Education
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QUESTION 1
_____ refer to the forces of change whose direction and sometimes timing can be predicted.
| Uncertainties | ||
| Trends | ||
| Occurrences | ||
| Scenarios | ||
| Forecasts |
2 points
QUESTION 2
Management institutes, certification agencies, and headhunting firms are examples of specialized intermediaries for:
| financial markets. | ||
| markets for managerial talent. | ||
| markets for products. | ||
| auction markets. | ||
| labor market. |
2 points
QUESTION 3
_____ involves analyzing markets for their potential size, accessibility, cost of operations, and buyer needs and practices to aid the company in deciding whether to invest in entering that market.
| Search retargeting | ||
| Unique selling proposition | ||
| Rebranding | ||
| First-mover advantage | ||
| Market due diligence |
2 points
QUESTION 4
Consumer safari refers to the initiatives taken by Unilever executives to spend a day with consumers in their homes to:
| understand how they use products. | ||
| convince them to use more Unilever products. | ||
| train them to make multiple use of their products. | ||
| estimate how many products they use. | ||
| help them set up cottage industries for their products. |
2 points
QUESTION 5
_____ refer to the forces of change whose direction and pace is largely unknown.
| Uncertainties | ||
| Trends | ||
| Occurrences | ||
| Scenarios | ||
| Forecasts |
2 points
QUESTION 6
_____ are straight-line, one-factor projections from present to future.
| Estimates | ||
| Opportunities | ||
| Scenarios | ||
| Forecasts | ||
| Plans |
2 points
QUESTION 7
The United States is separated from Nigeria by 5,840 miles and the Atlantic Ocean. According to the CAGE framework this is a case of:
| emotional distance. | ||
| economic distance. | ||
| cultural distance. | ||
| geographic distance. | ||
| administrative distance. |
2 points
QUESTION 8
The GDP of France is 2.113 trillion USD whereas Sierra Leone's GDP is approximately 4.812 billion USD. According to the CAGE framework, this is a case of:
| emotional distance. | ||
| economic distance. | ||
| cultural distance. | ||
| geographic distance. | ||
| administrative distance. |
2 points
QUESTION 9
_____ occurs when a function is taken out of one's country of residence to be performed in another country, generally at a lower cost.
| Open sourcing | ||
| Offshoring | ||
| Exporting | ||
| Importing | ||
| Licensing |
2 points
QUESTION 10
Which of the following is true of acquisitions?
| The acquiring company will be eligible for any financial help from the company whose shares it is trying to acquire. | ||
| It affords the firm maximum control and has the most potential to provide above-average returns. | ||
| The acquiring company enters into an agreement with the target business to pursue a set of agreed-upon goals while remaining independent organizations. | ||
| The acquiring firm avoids the expense of establishing operations in the new country. | ||
| The acquiring company gains control of another firm by purchasing its stock. |
2 points
QUESTION 11
Which of the following statements holds true for the ISO 9001:2008 certification?
| Organizations which supply raw materials are barred from applying for the ISO 9001:2008 certification. | ||
| Companies which meet the criteria of a minimum financial turnover can apply for the ISO 9001:2008 certification. | ||
| The ISO 9001:2008 certification is a mark that a company's products and services have met quality standards. | ||
| Companies that had achieved ISO 9001:2000 certification were exempt from being recertified to meet ISO 9001:2008 standards. | ||
| ISO 9001:2008 certification specifically focuses on the environment. |
2 points
QUESTION 12
_____ refers to buying goods and services from foreign sources and bringing them back into the home country.
| Open sourcing | ||
| Offshoring | ||
| Exporting | ||
| Importing | ||
| Farmshoring |
2 points
QUESTION 13
The _____ is the contract between the exporter and the carrier, authorizing the carrier to transport the goods to the buyer's destination.
| letter of credit | ||
| bill of lading | ||
| customs invoice | ||
| export declaration | ||
| license |
2 points
QUESTION 14
_____ is the document by which the exporter tells the importer to pay a specified amount at a specified time.
| Letter of credit | ||
| Bill of lading | ||
| Customs invoice | ||
| Insurance certificate | ||
| Bill of exchange |
2 points
QUESTION 15
Which of the following can also function as collateral against loans?
| Certificate of origin | ||
| Export declaration | ||
| License | ||
| Customs invoice | ||
| Bill of lading |
2 points
QUESTION 16
_____ refers to the financing granted against collateral, which can be the imported/exported goods.
| Angel funding | ||
| Purchase Order Financing | ||
| Secured financing | ||
| Overdraft | ||
| Cash advance |
2 points
QUESTION 17
Which of the following is a contractual mode of entry into a foreign market?
| Greenfield ventures | ||
| Licensing | ||
| Joint ventures | ||
| Acquisition | ||
| Merger |
2 points
QUESTION 18
_____ refers to an organization that assists foreign companies in exporting their products to Japan by providing free-market entry information and business-partner matching as well as some subsidies.
| Japan Bank for International Cooperation | ||
| Japan External Trade Organization | ||
| Development Bank of Japan | ||
| Master Trust Bank of Japan | ||
| Japan Post Bank Company |
2 points
QUESTION 19
Which of the following statements holds true for a nonentity joint venture?
| In a nonentity joint venture, the partner with the smaller capital investment loses control over the joint venture after a period of two months. | ||
| In a nonentity joint venture, each of the partners contributes capital and resources in exchange for an equity stake and share in any resulting profits. | ||
| In a nonentity joint venture, the control of the joint venture is in the hands of the party which makes the larger capital investment. | ||
| In a nonentity joint venture, there is no contribution of capital to form a new entity. | ||
| In a nonentity joint venture the benefit gained is in the form of collective profits rather than individual profits. |
2 points
QUESTION 20
The _____ is a legal document issued by a bank at the importer's (or buyer's) request wherein the importer promises to pay a specified amount of money when the bank receives documents about the shipment.
| export declaration | ||
| license | ||
| letter of credit | ||
| bill of lading | ||
| customs invoice |
2 points
QUESTION 21
_____ refers to the constellation of business, corporate, and international strategy elements, which managers must consider when making decisions.
| Five Forces Analysis | ||
| Cluster model | ||
| Strategy diamond | ||
| Porter's four corners model | ||
| Strategic grouping |
2 points
QUESTION 22
Strategy implementation is the process of:
| deciding which strategies to follow in order to diversify. | ||
| performing all the activities necessary to do what has been planned. | ||
| deciding the businesses in which an organization would compete. | ||
| addressing the issue of the kind of strategies an organization would follow. | ||
| devising plans to add value to the existing line of business. |
2 points
QUESTION 23
The _____ function requires monitoring performance so that it meets the performance standards established by the organization.
| controlling | ||
| leading | ||
| planning | ||
| organizing | ||
| job design |
2 points
QUESTION 24
_____ refers to the sequence of activities that include the various steps of the supply chain as well as additional activities, such as marketing, sales, and service.
| Value chain | ||
| Differentiation | ||
| Cost leadership | ||
| Scope | ||
| Homesourcing |
2 points
QUESTION 25
Outsourcing involves:
| diversifying into a new business. | ||
| the sale of products or services in one country that are sourced in another country. | ||
| the company delegating an entire process to the outsource vendor. | ||
| guiding the choice of markets that a firm competes in. | ||
| performing a service by staff from within an organization and also by an external service provider. |
2 points
QUESTION 26
The U.S. fast-food chain Sonic will only open new outlets in states that are adjacent to states where it already has stores. This is an example of:
| differentiation. | ||
| increasing vertical scope. | ||
| diversification. | ||
| offshoring. | ||
| increasing geographic scope. |
2 points
QUESTION 27
_____, which are a part of the SWOT analysis, assess the external attractive factors that represent the reason for a business to exist and prosper.
| Strengths | ||
| Weaknesses | ||
| Threats | ||
| Opportunities | ||
| Strategies |
2 points
QUESTION 28
_____ refers to the number of different topographical markets in which an organization participates.
| Geographic scope | ||
| Value chain | ||
| Differentiation | ||
| Cost leadership | ||
| Offshoring |
2 points
QUESTION 29
The first step in the planning process is:
| establishing organizational objectives. | ||
| formulating and ensuring the effective implementation of plans. | ||
| the SWOT analysis. | ||
| identifying multiple ways of achieving organizational objectives. | ||
| monitoring the progress and evaluating the success of the plans. |
2 points
QUESTION 30
In Holland, KFC makes a potato-and-onion croquette, while in France it sells pastries alongside chicken. KFC:
| has centralized its business processes to enable it to provide the services mentioned. | ||
| assumes that consumer needs and desires vary by country. | ||
| assumes that the world is flat. | ||
| sells the same products in the same way in every country. | ||
| is following the cost-leadership strategy. |
2 points
QUESTION 31
An automobile giant headquartered in the United States sells high-end bikes across the world. It wants to enter an emerging market. Customers in the market cannot afford the types of accessories used in the bikes. Thus the regional branch of the organization makes an autonomous decision to remove the accessories and to offer a toned-down version of the bikes to compete in the emerging market. This decision is accepted by the headquarters on the principle that the man on the ground is the best judge of local conditions. The above serves as an example of a(n):
| decentralized organizational structure. | ||
| reverse engineering. | ||
| centralized organizational structure. | ||
| reverse innovation. | ||
| open sourcing. |
2 points
QUESTION 32
Nike products are manufactured in factories in countries such as China, Vietnam, Indonesia, and Mexico. Wholesalers, retailers, agents, and brokers are intermediaries who help in bringing the products to the consumer. These intermediaries bring the products from the factories to the consumers. They serve as an example of:
| product branding. | ||
| market positioning. | ||
| market segmentation. | ||
| channel of distribution. | ||
| social marketing. |
2 points
QUESTION 33
Which of the following statements holds true for a global brand?
| It refers to the brand name of a product that has worldwide recognition. | ||
| It refers to the marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. | ||
| It refers to products that make the world less flat because of lack of recognition across countries. | ||
| It refers to the product that is distributed nationally under a brand name owned by the producer or distributor. | ||
| It refers to the changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. |
2 points
QUESTION 34
An organization that manufactures readymade cotton shirts sources the raw material from all over the world. It does this as a precaution against the failure of one or more companies to deliver the raw materials. The above serves as an example of:
| open-sourcing. | ||
| multisourcing. | ||
| sole-sourcing. | ||
| home sourcing. | ||
| outsourcing. |
2 points
QUESTION 35
Which of the following holds true for product adaptation?
| It refers to the company strategy of modifying an existing product in a way that makes it better fit local needs. | ||
| It refers to the total composite of products offered by a particular organization. | ||
| It refers to the strategy of taking the company's current products and selling them in other countries without making changes to the product. | ||
| It refers to the creation of a new name, term, symbol, design, or a combination of them for an established brand with the intention of developing a differentiated position in the mind of stakeholders and competitors. | ||
| It refers to the strategy of creating an entirely new product for a given local market. |
2 points
QUESTION 36
In marketing, market segmentation refers to the:
| process of dividing a larger market into smaller markets that share a common characteristic, such as age, gender, income level, or lifestyle. | ||
| combination of the four Ps of marketing that can be customized for different countries. | ||
| commerce areas where because of price differences across countries, consumers are able to cross international borders to legally purchase products at lower prices than in their home country. | ||
| commerce areas where vendors purposely deceive buyers by altering products and then selling them as branded products at a bargain cost. | ||
| set of expectations, memories, stories and relationships that-taken together-account for a consumer's decision to choose one product or service over another. |
2 points
QUESTION 37
In marketing, which of the following holds true for counterfeit markets?
| It refers to the process of dividing a larger market into smaller markets that share a common characteristic, such as age, gender, income level, or lifestyle. | ||
| It refers to the trade of goods and services that are illegal in themselves and/or distributed through illegal channels. | ||
| It refers to the commerce areas where, because of price differences across countries, consumers are able to cross international borders to legally purchase products at lower prices than in their home country. | ||
| It refers to the commerce areas where vendors purposely deceive buyers by altering products and then sell them as branded products at a bargain cost. | ||
| It refers to the secretive, unregulated (though often technically legal) trading in commodity futures. |
2 points
QUESTION 38
_____ refers to buying raw materials, components, or services from one supplier exclusively, rather than buying from two or more suppliers.
| Open-sourcing | ||
| Multisourcing | ||
| Sole-sourcing | ||
| Home-sourcing | ||
| Outsourcing |
2 points
QUESTION 39
_____ refers to a situation which means that there is no more stock of the company's product.
| Stock of record | ||
| Stock-check | ||
| Safety stock | ||
| Stock call | ||
| Stock-out |
2 points
QUESTION 40
Which of the following statements holds true for the indirect channel of distribution?
| It refers to the shortest channel of distribution, consisting of just the producer and the end consumer. | ||
| It refers to the combination of the four Ps of marketing that can be customized for different countries. | ||
| It refers to a channel of distribution which contains one or more intermediaries between the consumer and the producer. | ||
| It refers to a channel of distribution where the customer is the first and not the last link in the distribution chain. | ||
| It refers to the channel of distribution where the company sells its products to the consumers in other countries via the internet without using local retailers. |
Choose the right answer
Question 1
With respect to consumer behavior, one's attitudes, learning, and perceptions would be
| impersonal influences | ||
| interpersonal influences | ||
| personal influences | ||
| insitutional influences |
Question 2
In Maslow's hierarchy of needs,
| a physiological need must be met directly before social needs. | ||
| esteem needs are the highest order of needs. | ||
| self-actualization needs are the highest order | ||
| safety needs and esteem are of the same importance. |
Question 3
The most likely product to be purchased in an attempt to satisfy self-esteem needs would be
| "super class" tickets for your next air flight. | ||
| a really fast computer. | ||
| a home security system. | ||
| yogurt and health food. |
Question 4
Which of the following is not a characteristic that distinguishes organizational markets from consumer markets?
| Organizational markets are more geographically concentrated. | ||
| More people exert influence on the organizational buying decision. | ||
| The organizational market tends to have a greater number of buyers. | ||
| Organizations often engage in multiple sourcing and vendor analysis. |
Question 5
Consumers may attempt to reduce postpurchase anxiety in the consumer decision process by
| avoiding favorable information about the selected brand | ||
| seeking reassurance from dissatisfied customers | ||
| seeking information that favors the rejected brands | ||
| ignoring unfavorable reports about the chosen brand |
Question 6
The buying center concept explains how groups of people participate informally in business purchase decisions and
| methods to break through group perceptions. | ||
| the role the group members play in buying decisions. | ||
| how family units operate as buying centers. | ||
| the process of performing vendor analysis. |
Question 7
In the organizational buying process, a triggering event such as announcement of the availability of a new product whose use could improve the company's market performance is referred to as
| need or opportunity recognition | ||
| identification of suppliers | ||
| information search | ||
| word-of-mouth exploration |
Question 8
An undifferentiated marketing strategy
| serves the consumer better because the products offered are designed to meet the needs of a specific group of people | ||
| benefits from the control and efficiency of short production runs | ||
| ignores differences among consumer groups and focuses on the broad market | ||
| is the most common strategy today and is used more now than in the past |
Question 9
Goods purchased by the ultimate consumer for personal use are called
| personal products | ||
| purchased products | ||
| consumer products | ||
| commercial products |
Question 11
A particular purchasing agent might allow some salespeople to see the engineers responsible for developing product specifications but not allow others the same privilege. In the buying center, this purchasing agent is filling the role of
| a "hard" nose | ||
| a gatekeeper | ||
| an influencer | ||
| a decider |
Question 12
"Our prices are the lowest, we guarantee it" is an example of a positioning strategy based on the product's
| competitors | ||
| price | ||
| class | ||
| application |
Question 13
Segmenting the market based on exactly how an industrial purchaser will use products is referred to as
| customer-based segmentation | ||
| benefits segmentation | ||
| end-use application segmentation | ||
| geographic segmentation |
Question 14
The lumber your carpenter purchases to finish out your basement is classified as
| a home improvement product | ||
| a raw material | ||
| a business product | ||
| a consumer good |
Question 15
When consumer demand for personal computers affects computer manufacturers' demand for computer chips, this situation is known as
| volatile demand | ||
| conjoined demand | ||
| derived demand | ||
| joint demand |
Question 16
Which of the following is a personal factor in consumer bahavior?
| a cultural influence | ||
| group membership | ||
| friends' opinions | ||
| a person's attitudes |
Question 17
Cognitive dissonance would be most likely to occur after the purchase of
| sneakers | ||
| groceries | ||
| an automobile | ||
| cosmetics |
Question 18
Which of the following would be most likely to break through a person's perceptual screen?
| a newspaper ad featuring white type on a black background | ||
| a black- and -white classified ad | ||
| reducing the size of the ad | ||
| using fewer colors in the ad |
Question 19
The Fortune 500 list of America's largest firms based on sales revenues and number of employees provides a basis for
| market segmentation based upon customer type | ||
| demographic segmentation based upon geographic location | ||
| end-user segmentation of this market | ||
| demographic segmentation based upon customer size |
Question 20
Straight rebuy behavior by industrial purchasers will probably continue if the supplier provides
| poor service | ||
| poor quality | ||
| shipping delays | ||
| satisfactory performance |
Question 21
A controversial technique of subconscious communication, aimed at circumventing the perceptual screens, is called
| shadowed perception | ||
| leger-de-main | ||
| subliminal perception | ||
| perception incognito |
Question 22
Those products that are actually considered when making a consumer purchase decision are
| customer options | ||
| customer selections | ||
| the evoked set | ||
| the product set |
Question 23
The component of the business market that consists of individuals and firms that acquire goods and services to be used directly, or indirectly, in producing other goods and services is called:
| wholesaling and retailing | ||
| the commercial market | ||
| government | ||
| an institution |
Question 24
The institutional market does not include which of the following?
| hospitals | ||
| museums | ||
| motion pictures theatres | ||
| universities |
Question 25
Advertising for smoke alarms, air bags and life insurance typically uses which of Maslow's levels of needs to appeal to consumers?
| self-esteem needs | ||
| safety and security needs | ||
| physiological needs | ||
| protection needs |
Question 26
One type of buying center role is that of the
| influencer who supplies information for evaluation. | ||
| authority figure who decides who, what, where, when, and how. | ||
| disseminator who function is to get advertisements to prospects. | ||
| specifier who needs on the specifications of products |
Question 27
Manufacturing firms that convert to automated factory systems must purchase equipment that they have never bought before, such as robots and computers. This buying situation is called
| a straight rebuy | ||
| a modified rebuy | ||
| a contract purchase | ||
| new-task buying |
Question 29
A commonly used basis for segmenting consumer markets is
| product-related characteristics | ||
| health-related matters | ||
| information-related concepts | ||
| performance-related criteria |
1 points
Question 30
The business market is also known as the
| wholesale market | ||
| corporate market | ||
| organizational market | ||
| distribution market |
Question 31
Which of the following consumer problem-solving behaviors requires the least effort?
| extended problem solving | ||
| limited problem solving | ||
| impulsive buying | ||
| routine response behavior |
Question 32
The relationship between the demand for silk cloth and consumer demand for silk blouses and neckties is known as
| joint demand | ||
| demand volatility | ||
| derived demand | ||
| consumer demand |
Question 33
Examples of business market items that would usually be purchased as a straight rebuy are
| high quality raw materials | ||
| heavy-duty machinery | ||
| paper clips and pencils | ||
| high-tech components |
Question 34
The person who joins a local bowling league for the social interaction, even if he or she is a novice bowler, is probably trying to satisfy his or her
| esteem needs | ||
| self-actualization needs | ||
| physiological needs | ||
| belongingness/social needs |
Question 35
Campbell's "Soup for One" is an example of a product that is targeted to
| large families with high product usage of certain things but different preferences | ||
| dual-income couples with no kids | ||
| well-off older families | ||
| non-traditional households such as nonfamily, single-person or single-parent situations |
Question 36
Red Ryder Industries markets rodeo and horse riding supplies specifically to women. This is an example of
| market stratification | ||
| market segmentation | ||
| non-traditional marketing | ||
| multi-gender marketing |
Question 37
Purchases made by choosing a preferred brand or one of a limited group of acceptable brands are called
| extended problem solving | ||
| routinized response behavior | ||
| limited problem solving | ||
| selective problem solving |
Question 38
The slogan "the graying of America" describes the trend
| toward people retiring later in life | ||
| of the word force to contain a disproportionate number of older Americans | ||
| for gray hair to develop from years of high-stress urban work | ||
| upward in the elderly population as Americans tend to live longer |
Question 39
People or institutions must have sufficient purchasing power and the authority and willingness to buy to be considered a
| market | ||
| buyer | ||
| player | ||
| segment |
Question 40
Reference group influences would be most likely to be significant in the decision to buy
| a loaf of bread | ||
| a Mercedes Benz | ||
| a clock radio | ||
| cellophane tape |
Question 41
Internal search in the consumer decision process may include
| subscribing to consumer magazines to evaluate alternatives | ||
| talking to family members | ||
| reviewing past purchases | ||
| surveying coworkers for buying options |
Question 42
The process of dividing the total market into several smaller, homogeneous groups is called
| market penetration | ||
| market segmentation | ||
| market mixing | ||
| market division |
