MKT 505 MIDTERM EXAM/MKT 505 MIDTERM EXAM
1. Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. The app displays a bar code that the barista can scan. This is an example of:
2. Even though Germany is the largest single-country market in Europe, what percent of the world market potential for German companies is outside Germany?
3. In the United States, some people believe that globalization has depressed the wages of American workers and resulted in the loss of both blue-collar and white-collar jobs. This is an example of:
4. When a country like China is experiencing rapid economic growth, policymakers are likely to:
look more favorably on outsiders.
look less favorably on outsiders.
experience more resistance toward outsiders.
feel threatened by outsiders.
5. Upper-middle-income countries, also known as industrializing or developing countries, are those with GNI per capita ranging from:
$996 to $3,945
$3,946 to $12,195
$12,196 or higher
less than $995
6. The term “Expanded Triad” includes all of the following countries or regions except:
7. When countries or regions experience currency and/or economic stress, all of the following events can take place except:
increased exposure to certain risks.
new profit opportunities.
lower local currency financing costs.
bad debts occur.
cancellation of aircraft equipment sales.
8. Which member of the Central American Integration System has both the largest economy and the largest population?
9. In spite of having about 45% of the world’s known oil reserves, Saudi Arabia and other Middle Eastern countries post current-account deficits, largely because:
of poor accounting practices.
of vast economic diversification.
they must import most of the goods and services.
most of the oil is exported.
new businesses are being developed.
10. Argentina provides a good example of how a country can emerge from an economic crisis as a stronger global competitor. An example of emergency measures implemented by Argentina include:
Argentina reduced the duties on consumer goods.
Argentina devalued its currency for exports and capital transactions.
Argentina added tariffs on imported wines.
Argentina adopted the U.S. dollar as official currency.
Argentina added tariffs on wine produced within the country.
11. The Maastricht Treaty called for:
the creation of an Asia Free Trade Area (AFTA).
the creation of an economic and monetary union (EMU) in Europe.
Chile’s acceptance into Mercosur.
the purchase of CDs and tapes from distributors in Europe.
the creation of the seven-nation European Free Trade Association (EFTA).
12. If a marketing manager plans to enter the newly industrializing countries (NICs) or other Asia markets with a product that has proved to be successful in the home market, the product’s diffusion processes are likely to be:
negligible since consumers will take time to assess the relative advantage.
much slower than in the home market.
much faster than in the home market.
similar to that in the home market.
less compatible in the Asian market.
13. Which of the following shows the correct order of the product adoption process?
14. Cultural influences are also quite apparent in food preparation and consumption patterns and habits. Domino’s Pizza, the world’s largest pizza-delivery company, pulled out of Italy because:
tomato sauce was too bold and competed with Italian products.
people did not like to eat at home.
Italians perceived its products to be “too American.”
Italians wanted more toppings on thick crust.
Italians did not like anyone else to use the name pizza.
15. As part of their alliance relationship, Northwest Airlines and KLM Royal Dutch set air fare prices jointly and coordinate flight schedules. Normally, such behavior would be considered harmful to competition, but the U.S. government has granted the two airlines special exemptions from laws concerning:
16. Any company doing business outside the home country should first carefully study the ________ in the target country.
17. The European Commission has jurisdiction over European-based companies as well as non-European ones that generate significant revenues in Europe. If Microsoft applies in Europe, the Commission has a right to all of the following except:
it can block a proposed merger.
it can block a proposed joint venture.
it can approve with minor modifications.
it can demand substantial concessions before granting approval.
it can refer serious matters to the UN Security Council.
18. Located in The Hague, the International Court of Justice (ICJ) is the judicial arm of the:
19. When the Coca-Cola Company convened focus groups in Europe and Asia to assess potential market acceptance of a contoured aluminum soft drink can, it was attempting to collect ________ data.
20. Which of the following is an IT tool designed specifically to help retailers work more closely with vendors on stock replenishment?
21. Campbell is the world’s largest soup company, commanding about 80% of the U.S. canned soup market. However, the company has a presence in only 6% of the world’s soup markets. Russians eat 32 billion servings of soup each year, and the Chinese consume 300 billion! By contrast, Americans eat 15 billion servings each year. Sensing a huge opportunity, Campbell has dispatched teams to observe Russian and Chines habits. This type of interpretation and decision is based on:
demand pattern analysis.
income elastic analysis.
time series displacement.
22. A marketer of breakfast cereals might send researchers to preselected households at 6 A.M. to watch families go about their morning routines. The client could also assign a researcher to accompany family members to the grocery store to record their behavior under actual shopping conditions. This type of research method is considered as:
invasion of privacy.
consumer panel study.
23. Porsche AG uses the label “Top Guns” to describe one segment of its customers, namely those who care about power and control and who expect to be noticed. Such a profile would be based on which type of segmentation?
24. The feasibility of targeting a particular market segment can be negatively impacted by various factors which does not include:
lack of distribution system.
time required to establish business.
25. For years, ads for Volvo automobiles stressed safety features and protection in the event of a crash. Thus, Volvo automobiles developed a reputation based on which positioning strategy?