Archive for September 2017

Luxury good marketers found a new way to combat gray market imports into the United States. In March 1995, the U.S. Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume with permission. The distinctive packaging of the perfume is also protected by the U.S. Copyright law. The ruling implies that:

Luxury good marketers found a new way to combat gray market imports into the United States. In March 1995, the U.S. Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume with permission. The distinctive packaging of the perfume is also protected by the U.S. Copyright law. The ruling implies that:



A) Givenchy can only be sold in copyrighted packages.
B) Costco and Wal-Mart will no longer be able to sell Givenchy.
C) Costco and Wal-Mart will be able to sell Givenchy with authorization.
D) gray marketers will be able to market with authorization.
E) discount drugstores cannot market a product resembling Givenchy's perfumes.


Answer: C

Despite the high expenses associated with operating elegant stores and purchasing advertising space in upscale magazines, the premium retail prices that luxury goods like Louis Vuitton command translate into handsome profits. The Louis Vuitton brand alone accounts for 60 percent of LVMH's operating profit. On the other hand, Louis Vuitton spends $ 10 million annually battling:

Despite the high expenses associated with operating elegant stores and purchasing advertising space in upscale magazines, the premium retail prices that luxury goods like Louis Vuitton command translate into handsome profits. The Louis Vuitton brand alone accounts for 60 percent of LVMH's operating profit. On the other hand, Louis Vuitton spends $ 10 million annually battling:



A) EU regulations.
B) counterfeiters in countries such as Turkey, South Korea, & Italy.
C) competitors in European countries.
D) suppliers of needed materials.
E) export freight and taxes.



Answer: D

Suppose that World Corp. signs a contract to build a lumber processing plant in Siberia. If World Corp. signs a second contract agreeing to take partial payment for the plant in the form of lumber products produced at the plant, it is engaging in:

Suppose that World Corp. signs a contract to build a lumber processing plant in Siberia. If World Corp. signs a second contract agreeing to take partial payment for the plant in the form of lumber products produced at the plant, it is engaging in:



A) barter.
B) switch trading.
C) offset.
D) compensation trading.
E) a hybrid countertrade arrangement.


Answer: D

To win a contract to supply the United Kingdom with AWACS military aircraft, Boeing agreed to purchase products from the UK whose value was equivalent to 130 percent of the contract. This type of pricing arrangement, which is common when the customer is a foreign government and the product has military applications, is known as:

To win a contract to supply the United Kingdom with AWACS military aircraft, Boeing agreed to purchase products from the UK whose value was equivalent to 130 percent of the contract. This type of pricing arrangement, which is common when the customer is a foreign government and the product has military applications, is known as:




A) barter.
B) switch trading.
C) compensation trading.
D) offset.
E) dumping.


Answer: D

Which of the following is true about proper use of the term "countertrade?"

Which of the following is true about proper use of the term "countertrade?"



A) The term "countertrade" is interchangeable with "offsets."
B) The term "countertrade" is interchangeable with "barter."
C) The term "countertrade" is interchangeable with "counterpurchase."
D) "Countertrade" is a blanket term that refers to several different types of business transactions.
E) The term "countertrade" is interchangeable with "dumping."


Answer: D

Joseph Quinlan, chief marketing strategist at Bank of America, estimated that about 25 percent of U.S. merchandise exports represent shipments by American companies to their foreign affiliates and subsidiaries. This situation underscores the importance of ________ in global marketing.

Joseph Quinlan, chief marketing strategist at Bank of America, estimated that about 25 percent of U.S. merchandise exports represent shipments by American companies to their foreign affiliates and subsidiaries. This situation underscores the importance of ________ in global marketing.



A) dumping
B) gray marketing
C) transfer pricing
D) price skimming
E) price fixing



Answer: C

Nintendo was fined nearly $ 150 million after it was determined that the video game company had colluded with European distributors. The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices. This is a classic example of:

Nintendo was fined nearly $ 150 million after it was determined that the video game company had colluded with European distributors. The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices. This is a classic example of:




A) price skimming.
B) market penetration.
C) price bundling.
D) price fixing.
E) transfer pricing.



Answer: D

Germany's Bayer Group was fined millions of dollars to settle a lawsuit alleging it had conspired with Archer Daniels Midland and other global companies to set prices for an enzyme used in animal feeds. What was the issue in this lawsuit?

Germany's Bayer Group was fined millions of dollars to settle a lawsuit alleging it had conspired with Archer Daniels Midland and other global companies to set prices for an enzyme used in animal feeds. What was the issue in this lawsuit?



A) price skimming
B) market penetration
C) price bundling
D) price fixing
E) dumping



Answer: D

If a company sells products in export markets at prices that are below fair market value and that can harm producers in the export market, that company may be accused of:

If a company sells products in export markets at prices that are below fair market value and that can harm producers in the export market, that company may be accused of:



A) market skimming.
B) using offsets.
C) pursuing artificially high margins.
D) dumping.
E) gray marketing.



Answer: D

Following the 1997 currency crisis in Asia, which American industry appealed to President Clinton for protection from foreign producers that were allegedly "dumping" products in the United States:

Following the 1997 currency crisis in Asia, which American industry appealed to President Clinton for protection from foreign producers that were allegedly "dumping" products in the United States:



A) auto industry.
B) computer industry.
C) steel industry.
D) photo products industry.
E) restaurant industry.



Answer: C

In the early 1990s, the U.S. International Trade Commission ruled that several Japanese manufacturers were selling active-matrix flat panel display screens in the U.S. at less than fair value and thereby injuring the sole U.S. producer of similar screens. The ITC's ruling concerned:

In the early 1990s, the U.S. International Trade Commission ruled that several Japanese manufacturers were selling active-matrix flat panel display screens in the U.S. at less than fair value and thereby injuring the sole U.S. producer of similar screens. The ITC's ruling concerned:




A) black marketing.
B) market skimming.
C) gray marketing.
D) dumping.
E) licensing.



Answer: D

When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging consumers to purchase Tag Heuer products from authorized dealers only, the company is most likely attempting to combat the ________ problem.

When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging consumers to purchase Tag Heuer products from authorized dealers only, the company is most likely attempting to combat the ________ problem.



A) countertrade
B) market holding
C) price escalation
D) gray market
E) market skimming



Answer: D

Which of the following would NOT be taken into account by a company using an ethnocentric approach to pricing decisions?

Which of the following would NOT be taken into account by a company using an ethnocentric approach to pricing decisions?




A) the possibility of implementing a penetration strategy
B) profitable price points that could be tied to local sourcing as opposed to home-country sourcing
C) integration of price with other marketing mix elements
D) factors unique to individual country markets
E) none of the above would be taken into account by a company using ethnocentric pricing



Answer: E

Suppose a company selling in various country markets makes statements such as "we know what the customer wants, and he or she will have to pay for it." This is an indication of a(n) ________ approach to setting prices.

Suppose a company selling in various country markets makes statements such as "we know what the customer wants, and he or she will have to pay for it." This is an indication of a(n) ________ approach to setting prices.



A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric
E) adaptation



Answer: A

Which of the following would not be used by an exporter with a weak home country currency?

Which of the following would not be used by an exporter with a weak home country currency?



A) Expand product line and add more costly features.
B) Speed repatriation of foreign-earned income.
C) Buy advertising, insurance, and other services in home country market.
D) Shift sourcing outside home country market.
E) Exploit marketing opportunities in all markets..



Answer: D

In July 2001, the euro's value relative to the dollar was about €1.00 = $0.85. By November 2009 the euro had strengthened to €1.00 = $1.48. All other things being equal, if a European-based global company wants to preserve margins for goods exported to the U.S. market, the company sho

In July 2001, the euro's value relative to the dollar was about €1.00 = $0.85. By November 2009 the euro had strengthened to €1.00 = $1.48. All other things being equal, if a European-based global company wants to preserve margins for goods exported to the U.S. market, the company should:




A) raise prices in dollars.
B) switch to cost-based pricing.
C) adopt a policy of market penetration pricing.
D) reduce prices in dollars.
E) use skimming pricing.


Answer: A

A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring?

A firm without much export experience uses the rigid cost-based pricing method. Which of the following considerations is the exporter ignoring?




A) Is the price competitive in view of local market conditions?
B) Does the price reflect the product's quality?
C) Will authorities in export markets view the price as reasonable or exploitative?
D) Does the price take antidumping laws into consideration?
E) all of the above



Answer: E

Excelsior Corp. launches a new hand-held personal digital assistant (PDA) for busy corporate executives. The initial retail price is set at $699. One year later, in an effort to reach a broader market, the price is lowered to $299. Which of the following describes the pricing strategies used by Excelsior Corp?

Excelsior Corp. launches a new hand-held personal digital assistant (PDA) for busy corporate executives. The initial retail price is set at $699. One year later, in an effort to reach a broader market, the price is lowered to $299. Which of the following describes the pricing strategies used by Excelsior Corp?



A) skimming strategy followed by penetration strategy
B) penetration strategy followed by cost based strategy
C) penetration strategy followed by skimming strategy
D) penetration strategy only
E) skimming strategy only



Answer: A

In India, consumers do not like to be locked in to long-term contracts and Apple distributes its iPhone exclusively through stores operated by Airtel, an India carrier, and Vodafone This is an example of:

In India, consumers do not like to be locked in to long-term contracts and Apple distributes its iPhone exclusively through stores operated by Airtel, an India carrier, and Vodafone This is an example of:




A) gray market.
B) price bundling.
C) market skimming.
D) razors and blades.
E) cost-based.



Answer: D

If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves, the company should use the ________ pricing strategy:

If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves, the company should use the ________ pricing strategy:




A) gray market
B) skimming
C) penetration
D) market holding
E) cost based.



Answer: B

Hewlett-Packard is the world's leading marketer of inkjet printers. H-P's printers are priced very low and margins are slim, by contrast, the company enjoys healthy margins on sales of replacement ink cartridges. This approach is sometimes known as "razors and blades" pricing.

Hewlett-Packard is the world's leading marketer of inkjet printers. H-P's printers are priced very low and margins are slim, by contrast, the company enjoys healthy margins on sales of replacement ink cartridges. This approach is sometimes known as "razors and blades" pricing.



Answer: TRUE

Ads for Visa debit cards show people who need to make a purchase quickly but are unable to do so because the retailer will not accept a check without several forms of identification. Which situational influence is Visa using to show the benefits offered by its debit cards?

Ads for Visa debit cards show people who need to make a purchase quickly but are unable to do so because the retailer will not accept a check without several forms of identification. Which situational influence is Visa using to show the benefits offered by its debit cards?



A) purchase task
B) social surroundings
C) physical surroundings
D) Post-purchase states
E) antecedent states




Answer: E

How might consumers who purchased a new innovative type of running shoe try to reduce any cognitive dissonance they might feel?

How might consumers who purchased a new innovative type of running shoe try to reduce any cognitive dissonance they might feel?





A) Use only an internal information search.
B) Have little or no problem solving involvement.
C) Read ads for running shoes even after the purchase has been made.
D) Use routine problem solving.
E) If the shoe is comfortable and gives the requisite support, there will be no cognitive dissonance.


Answer: C

Consumers have an obligation to _____ in the exchange process and in the use and disposition of products.

Consumers have an obligation to _____ in the exchange process and in the use and disposition of products.



A) get everything they can for their money
B) do unto retailers as retailers would do unto them
C) reveal any and all pertinent personal information
D) act ethically and responsibly
E) not get upset if they feel they have been cheated



Answer: D

In 1982, Paul Newman began manufacturing Newman's Own brand of salsa, popcorn, and salad dressing. Since then Paul Newman has donated all of his profits (after taxes) from the sales of these items to a variety of different charities. A customer buying one of the Newman's Own products knows he or she is contributing to a worthwhile charity as well as enjoying a quality product. Newman's Own engages in

In 1982, Paul Newman began manufacturing Newman's Own brand of salsa, popcorn, and salad dressing. Since then Paul Newman has donated all of his profits (after taxes) from the sales of these items to a variety of different charities. A customer buying one of the Newman's Own products knows he or she is contributing to a worthwhile charity as well as enjoying a quality product. Newman's Own engages in



A) philanthropic marketing.
B) goodwill marketing.
C) public relations marketing.
D) transactional marketing.
E) cause-related marketing.



Answer: E

Coca-Cola Enterprise (CCE), the world's largest soft-drink bottler voluntarily recalled 7,362 Coke Classic 8-packs in France because of possible small glass particles in the product. No glass was found in the bottles, but a CCE representative said that it would rather recall the product than risk one of its customers being injured. In terms of social responsibility, CCE is exhibiting

Coca-Cola Enterprise (CCE), the world's largest soft-drink bottler voluntarily recalled 7,362 Coke Classic 8-packs in France because of possible small glass particles in the product. No glass was found in the bottles, but a CCE representative said that it would rather recall the product than risk one of its customers being injured. In terms of social responsibility, CCE is exhibiting



A) profit responsibility.
B) market internationalization.
C) stakeholder responsibility.
D) cause-related marketing.
E) societal responsibility.



Answer: C

Glock, Inc. has set up a voluntary program that "fingerprints" every gun the company assembles. The program enables police to trace the owners of guns used in crimes when only the bullets or casings are recovered. This plan received praise from law enforcement officials, and the company is pleased to support it. This plan is an example of how a company practices

Glock, Inc. has set up a voluntary program that "fingerprints" every gun the company assembles. The program enables police to trace the owners of guns used in crimes when only the bullets or casings are recovered. This plan received praise from law enforcement officials, and the company is pleased to support it. This plan is an example of how a company practices



A) profit responsibility.
B) mission synergy.
C) transactional marketing.
D) mass marketing.
E) stakeholder responsibility.


Answer: E

"There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engaged in open and free competition without deception or fraud." This quote is most closely associated with

"There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engaged in open and free competition without deception or fraud." This quote is most closely associated with



A) cause-related marketing.
B) profit responsibility.
C) caveat emptor.
D) market aggregation.
E) stakeholder responsibility.




Answer: B

The manufacturer of baby safety products has the following mission "Products that protect our most valuable resource—our children." One of its products is a small cap that fits over sharp edges to prevent injury. The caps are made almost entirely of recycled plastic. For each package of protective caps sold, the company donates 5 percent of its profits to the Centre for the Rehabilitation of Head Injuries. The company is demonstrating

The manufacturer of baby safety products has the following mission "Products that protect our most valuable resource—our children." One of its products is a small cap that fits over sharp edges to prevent injury. The caps are made almost entirely of recycled plastic. For each package of protective caps sold, the company donates 5 percent of its profits to the Centre for the Rehabilitation of Head Injuries. The company is demonstrating



A) green marketing.
B) cause-related marketing.
C) societal responsibility.
D) its corporate culture.
E) all of the above



Answer: E

A publishing company's refusal to publish the autobiography of a serial killer because the company does not believe the killer should profit as a result of the pain he has caused others exemplifies

A publishing company's refusal to publish the autobiography of a serial killer because the company does not believe the killer should profit as a result of the pain he has caused others exemplifies



A) moral idealism.
B) liberalism.
C) grandstanding.
D) concern for stakeholders.
E) situational ethics.



Answer: A

If numbers from the state-run China National Network Information Centre (CNNIC) are correct, China had more than 17 million Internet users as of June 2000. The Chinese government is filtering, tracing, and monitoring everything Chinese users do online as it looks for dissidents. Yahoo!, a U.S. Internet service provider, excludes correspondence related to human rights, democracy, or Tibetan freedom transmission to and from China so it will not lose its ability to operate in China. By self-regulating communication to and from China, Yahoo! is acting

If numbers from the state-run China National Network Information Centre (CNNIC) are correct, China had more than 17 million Internet users as of June 2000. The Chinese government is filtering, tracing, and monitoring everything Chinese users do online as it looks for dissidents. Yahoo!, a U.S. Internet service provider, excludes correspondence related to human rights, democracy, or Tibetan freedom transmission to and from China so it will not lose its ability to operate in China. By self-regulating communication to and from China, Yahoo! is acting



A) ethically but illegally.
B) ethically and legally.
C) unethically and illegally.
D) unethically but legally.
E) none of the above.



Answer: E

Sonoco Products is one of the world's larges packaging companies. It instituted a recycling program in 1990. The company takes back its used boxes from customers, so they don't have to worry about disposal of them. Sonoco uses this recycled materials to make more than two-thirds of its raw materials. This is an example of:

Sonoco Products is one of the world's larges packaging companies. It instituted a recycling program in 1990. The company takes back its used boxes from customers, so they don't have to worry about disposal of them. Sonoco uses this recycled materials to make more than two-thirds of its raw materials. This is an example of:



A) cause-related marketing.
B) green marketing.
C) consumerism.
D) product-related marketing
E) stakeholder marketing.



Answer: B

Organizers of the Salt Lake City, Utah Olympics for the year 2002 were investigated for promising gifts and favours to members of the International Olympic Committee. This as an example of:

Organizers of the Salt Lake City, Utah Olympics for the year 2002 were investigated for promising gifts and favours to members of the International Olympic Committee. This as an example of:



A) bribes.
B) customer service.
C) espionage.
D) target marketing.
E) goodwill.



Answer: A

Sony Pictures often featured the comments of film critic David Manning of Connecticut's Ridgefield Press. Manning loved Hollow Man. He raved about A Knight's Tale. And he called The Animal a winner. Too bad Manning didn't exist. A couple of Sony Pictures execs invented the man and his blurbs in order to hype Sony movies. In terms of the Consumer Bill of Rights, the Sony executives were denying consumers the:

Sony Pictures often featured the comments of film critic David Manning of Connecticut's Ridgefield Press. Manning loved Hollow Man. He raved about A Knight's Tale. And he called The Animal a winner. Too bad Manning didn't exist. A couple of Sony Pictures execs invented the man and his blurbs in order to hype Sony movies. In terms of the Consumer Bill of Rights, the Sony executives were denying consumers the:



A) right to choose.
B) right to be informed.
C) right to be treated courteously.
D) right to safety.
E) right to happiness.



Answer: B

Which of the following is NOT a step in a Social Audit?

Which of the following is NOT a step in a Social Audit?



A) Recognition of a firm's social expectations.
B) Identify social causes that match the company's mission statement.
C) Specify the type and amount of resources needed.
D) Research which causes are endeared by customers.
E) Evaluate the social response programs.



Answer: D

The formal practice of cause-related marketing occurs when:

The formal practice of cause-related marketing occurs when:



A) companies sponsor large events.
B) marketing dollars are donated to charity.
C) charitable contributions are tied to revenues of a product's promotion.
D) corporations partner with charities to increase awareness of a cause.
E) a product is associated with a social movement.




Answer: C

Ethical standards are more likely to be compromised in .

Ethical standards are more likely to be compromised in .



A) highly competitive markets
B) the tobacco industry
C) Western countries
D) companies with international locations
E) new industries


Answer: A

A form of unethical competitive behavior are:

A form of unethical competitive behavior are:




A) bribes and fraud.
B) bribes and kickbacks.
C) espionage and competitive research.
D) fraud and espionage.
E) competitive research and kickbacks.



Answer: B

Caveat emptor means:

Caveat emptor means:



A) consumer's rights.
B) business before pleasure.
C) seize the day.
D) let the buyer beware.
E) legal but unethical.


Answer: D

Which of the following is NOT a step used in a social audit?

Which of the following is NOT a step used in a social audit?




A) Recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavours.
B) Identification of social responsibility causes or programs inconsistent with the company's mission.
C) Determination of organizational objectives and priorities for programs and activities it will undertake.
D) Specification of the type and amount of resources necessary to achieve social responsibility objectives.
E) Pre-Recognition of a firms resources necessary to achieve social objectives.


Answer: E

Sonoco Products is one of the world's largest packaging companies. It instituted a recycling program in 1990. The company takes back its used boxes from customers, so they don't have to worry about disposal. Sonoco uses there recycled materials for more than two-thirds of its raw materials. This is an example of:

Sonoco Products is one of the world's largest packaging companies. It instituted a recycling program in 1990. The company takes back its used boxes from customers, so they don't have to worry about disposal. Sonoco uses there recycled materials for more than two-thirds of its raw materials. This is an example of:



A) cause-related marketing.
B) green marketing.
C) consumerism.
D) product-related marketing
E) stakeholder marketing.


Answer: B

Sony Pictures often featured the comments of film critic David Manning He raved about A Knight's Tale and he called The Animal a winner. Too bad Manning didn't exist. A couple of Sony Pictures execs invented the man and his blurbs in order to hype Sony movies. This example indicates that these executives assumed Sony only had a __________ responsibility to society.

Sony Pictures often featured the comments of film critic David Manning He raved about A Knight's Tale and he called The Animal a winner. Too bad Manning didn't exist. A couple of Sony Pictures execs invented the man and his blurbs in order to hype Sony movies. This example indicates that these executives assumed Sony only had a __________ responsibility to society.



A) profit
B) legal
C) ethical
D) societal
E) stakeholder




Answer: A

Source Perrier S.A., the supplier of Perrier bottled water, exercised __________ when it recalled 160 million bottles of water after traces of a toxic chemical were found in 13 bottles. The recall cost the company $35 million and $40 million more was lost in sales. Even though the chemical was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product."

Source Perrier S.A., the supplier of Perrier bottled water, exercised __________ when it recalled 160 million bottles of water after traces of a toxic chemical were found in 13 bottles. The recall cost the company $35 million and $40 million more was lost in sales. Even though the chemical was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product."



A) a corporate value consciousness
B) mission synergy
C) transactional marketing
D) target marketing
E) stakeholder responsibility



Answer: E

In 2002, six executives of Tyson Foods, one of the world's largest poultry, beef, and pork processors, were arrested for illegal smuggling undocumented foreign workers into the U.S. to work at Tyson plants. From this statement, you can infer that:

In 2002, six executives of Tyson Foods, one of the world's largest poultry, beef, and pork processors, were arrested for illegal smuggling undocumented foreign workers into the U.S. to work at Tyson plants. From this statement, you can infer that:



A) Tyson Foods has a strong ethical code in spite of the activities of its top management.
B) the management of Tyson's ethical code is overseen by a federal agency.
C) no one that works at Tyson Foods is ethical.
D) the management's behavior would lead other individuals to believe they could also act unethically when making decisions that would affect the company.
E) the executives at Tyson Foods believe in moral utility.



Answer: D

Source Perrier S.A., the supplier of Perrier bottled water, recalled 160 million bottles of water after traces of a toxic chemical were found in 13 bottles. The recall cost the company $35 million and $40 million more was lost in sales. Even though the chemical was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product." This exemplifies:

Source Perrier S.A., the supplier of Perrier bottled water, recalled 160 million bottles of water after traces of a toxic chemical were found in 13 bottles. The recall cost the company $35 million and $40 million more was lost in sales. Even though the chemical was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product." This exemplifies:



A) moral idealism.
B) liberalism.
C) grandstanding.
D) utilitarianism.
E) situational ethics.


Answer: A

A new salesperson ought to become familiar with his or her new employer's __________ in order to make sure he or she behaves in an ethical manner that is consistent with the policies of his or her firm.

A new salesperson ought to become familiar with his or her new employer's __________ in order to make sure he or she behaves in an ethical manner that is consistent with the policies of his or her firm.



A) international marketing guide
B) professional business manual
C) code of ethics
D) sales training text book
E) marketing program



Answer: C

What is/are Starbucks main risk(s) to go into the coffee capsule market?

What is/are Starbucks main risk(s) to go into the coffee capsule market?



A. Strong existing competition like Nespresso with a loyal customer base
B. Difficulty to increase brand awareness in this market as it is new for Starbucks
C. The cannibalization of the existing business
D. People prefer to drink mixed flavor coffee drinks which will not be possible to offer through the capsule
E. a) and c)
F. All of the above




Answer: E

Which of the following examples represent a micro-environmental force that will influence the activity of a five-star hotel in Verbier?

Which of the following examples represent a micro-environmental force that will influence the activity of a five-star hotel in Verbier? 



A. The snow conditions seem to be extremely favorable this winter.
B. The newly opened W Hotel Verbier with its international brand awareness.
C. New solutions that have been developed in the area of mobile applications which allow to book hotel rooms combined with ski passes for a lower price.
D. The recently voted Swiss regulation that limits the number of secondary residences, even in mountain villages.
E. The company that manages Verbier ski lifts decided to increase its prices for the next season.
F. All of the above




Answer: B

Families are an interesting potential market for Burger King because

Families are an interesting potential market for Burger King because 



A. They usually have double income and therefore high purchasing power
B. Children love going to restaurants with children menus
C. Children have a potential long lasting customer lifetime value
D. Families usually bring their friends as well
E. Burger King offers special kids amenities
F. All of the above




Answer: C

If Nestlé decided to start selling "smoothies" (a thick beverage of fruit pureed in a blender with some combination of milk or yogurt, juice, and ice), an acquisition of an existing smoothie brand would be advantageous because

If Nestlé decided to start selling "smoothies" (a thick beverage of fruit pureed in a blender with some combination of milk or yogurt, juice, and ice), an acquisition of an existing smoothie brand would be advantageous because




A. It's fast entry mode to get into this new business
B. It's less costly than developing a new business from scratch
C. The brand is already known to customers
D. The necessary know-how of producing smoothies is very basic
E. Customers will be able to buy the products faster
F. a) and c)



Answer: E

One of the macro-environmental forces that impacts a 4* Golf Hotel in Crans Montana Resort in particular is the following:

One of the macro-environmental forces that impacts a 4* Golf Hotel in Crans Montana Resort in particular is the following: 



A. The increasing energy costs
B. The increasing number of consumers looking for a work-life balance
C. The decreasing number of people per household
D. Consumers' mental health is more and more influenced by weather conditions
E. The fast technological development
F. The unemployment rate in Switzerland



Answer: B

Complete the following sentence: A brand______________

Complete the following sentence: A brand______________




A. Requires a daily management and regular change in consumer perception with the help of the marketing mix
B. Helps to differentiate a product or a service from other offers within the same market
C. Plays a key role for the customer using it as a reference point
D. Offers success and a competitive advantage in the market
E. c) and d)
F. b) and c)



Answer: F

Which is the right sequence within the marketing planning process?

Which is the right sequence within the marketing planning process?



A. SWOT ? Macro environmental analysis ? Micro environmental analysis, including competitor analysis ? Marketing Objectives
B. SWOT ? Marketing Objectives ? Internal Analysis ? Positioning
C. Business and Market definition ? Macro environmental analysis ? Marketing Objectives ? SWOT
D. Segmentation ? Marketing Objectives ? Positioning ? Marketing Mix
E. Marketing Objectives ? SWOT ? Positioning ? Segmentation ? Target Marketing
F. Business and Market definition ? Macro environmental analysis ? Micro environmental analysis, including competitor analysis ? SWOT


Answer: F

According to Kotler, an attractive target market for a business needs to be as followed:

According to Kotler, an attractive target market for a business needs to be as followed:



A. Measurable, specific, attractive, important
B. Profitable, sustainable, unique, realistic
C. Specific, social, economic, structured
D. Realistic, accessible, significant, measurable
E. Accessible, actionable, measurable, substantial
F. None of the above is correct




Answer: E

An important key success factor for a Palace hotel in Paris is

An important key success factor for a Palace hotel in Paris is



A. A particular location
B. A Michelin-starred restaurant
C. A good concierge service
D. A swimming pool
E. High quality furniture
F. All of the above



Answer: B

Defining the business model and marketplace of a hotel unit is fundamental before starting the marketing planning process because

Defining the business model and marketplace of a hotel unit is fundamental before starting the marketing planning process because



A. It gives a clear idea of what the existing supply is in the market
B. It allows to identify potential demand for the hotel unit
C. It provides a clear marketing strategy
D. It allows to identify marketing mix activities
E. It clarifies customer needs and wants
F. a) and b)




Answer: F

The potential market of a 4* hotel in Barcelona is composed by:

The potential market of a 4* hotel in Barcelona is composed by: 





A. The hotel's actual customers and its competitors' customers who are willing to come back
B. The hotel's actual and past customers who have been satisfied with their experience
C. The hotel's actual customers and any consumer looking for a very similar or same offer
D. The hotel's actual customers, its competitors' customers and the definite non-consumers
E. Essentially customers who visited this hotel and other hotels of the same categories in destinations in Europe.


Answer: C

Which of the following influences customer behavior in five-star hotels?

Which of the following influences customer behavior in five-star hotels? 



A. The client's previous experiences
B. The client's perception of luxury
C. The client's stage in the buying process
D. All of the above
E. None of the above, customer behavior is only a response to marketing stimuli.




Answer: D

The Badrutt's Palace Hotel in St. Moritz's point of differentiation is the historical building, a landmark in St. Moritz. This is an example of which marketing mix tool used by Badrutt's Palace to attract customers to the hotel?

The Badrutt's Palace Hotel in St. Moritz's point of differentiation is the historical building, a landmark in St. Moritz. This is an example of which marketing mix tool used by Badrutt's Palace to attract customers to the hotel? 




A. Promotion
B. Price
C. Place
D. Product
E. None of the above, the building of a hotel is not part of the marketing mix.



Answer: D

Why does McDonald's Switzerland communicate the PRIME Burger's with the add-on "by René Schudel"?

Why does McDonald's Switzerland communicate the PRIME Burger's with the add-on "by René Schudel"?



A. To promote the popularity of the Chef outside of television shows
B. Customers know and trust the name René Schudel of being good quality
C. Customers perceive René Schudel as a Swiss brand, which underlines McDonald's local strategy
D. In order to diversify their business in TV shows where Rene Schudel appears
E. b) and c)



Answer: E

Target marketing is done :

Target marketing is done :



A. When defining the brand's positioning
B. Directly after the SWOT analysis
C. Before the defining the marketing objectives
D. Independently of any process
E. None of the above is correct




Answer: E

An organic take-away restaurant has identified three distinct groups that might be interested in its offer: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________.

An organic take-away restaurant has identified three distinct groups that might be interested in its offer: vegetarians, health-conscious individuals, and people identified as trendsetters who try out new products in the market before others. These three groups are examples of ________. 




A. Market segments
B. Market demand
C. Focus groups
D. Suppliers
E. Intermediaries



Answer: A

Market segmentation is necessary because:

Market segmentation is necessary because:




A. Consumers do not have homogenous preferences.
B. It allows analysis and measurement of results more effectively.
C. It facilitates the allocation of resources within the company.
D. a) and c)
E. All answers are correct



Answer: E

Coca-Cola Enterprise (CCE), the world's largest soft-drink bottler voluntarily recalled 7,362 Coke Classic 8-packs in France because of possible small glass particles in the product. No glass was found in the bottles, but a CCE representative said that it would rather recall the product than risk one of its customers being injured. The removal of the soft drinks from the marketplace was in accord with:

Coca-Cola Enterprise (CCE), the world's largest soft-drink bottler voluntarily recalled 7,362 Coke Classic 8-packs in France because of possible small glass particles in the product. No glass was found in the bottles, but a CCE representative said that it would rather recall the product than risk one of its customers being injured. The removal of the soft drinks from the marketplace was in accord with:




A) the right to happiness
B) the right to be heard.
C) the right to choose
D) the right to safety
E) the right to be informed



Answer: D

Sony Pictures often featured the comments of film critic David Manning. Manning raved about A Knight's Tale and he described The Animal as a winner. Too bad Manning didn't exist. A couple of Sony Pictures execs invented the man and his blurbs in order to hype Sony movies. According to Canadian law these executives were violating the consumer:

Sony Pictures often featured the comments of film critic David Manning. Manning raved about A Knight's Tale and he described The Animal as a winner. Too bad Manning didn't exist. A couple of Sony Pictures execs invented the man and his blurbs in order to hype Sony movies. According to Canadian law these executives were violating the consumer:




A) right to choose.
B) right to be informed.
C) right to be treated courteously.
D) right to safety.
E) right to happiness.



Answer: B

P.T. Barnum was a 19th century businessman who made fortunes displaying oddities at his museum. Some were really freaks of nature; others were fabricated. When asked if it were right not to tell people the bearded lady was actually a man, Barnum might have replied with which of the following?

P.T. Barnum was a 19th century businessman who made fortunes displaying oddities at his museum. Some were really freaks of nature; others were fabricated. When asked if it were right not to tell people the bearded lady was actually a man, Barnum might have replied with which of the following?




A) modus operandi
B) caveat emptor
C) de facto marketing
D) e pluribus unum
E) corpus delecti



Answer: B

Which of the following statements can be used to explain why the state of perceived ethical business conduct is at its present level?

Which of the following statements can be used to explain why the state of perceived ethical business conduct is at its present level?



A) There is increased pressure on businesspeople to make decisions in a society characterized by a diverse value system.
B) There is a growing tendency for business decisions to be judged publicly by groups with different values and interests.
C) More businesses are feeling pressure to create and enforce a Code of Ethics.
D) The public's expectation of ethical business behaviour has increased.
E) All of the above statements can be used to explain why the state of perceived ethical business conduct is at its present level.




Answer: E

Although research shows consumers are sensitive to ecological issues, they may NOT be willing to purchase a given product or service solely on the basis of its environmental claims because they:

Although research shows consumers are sensitive to ecological issues, they may NOT be willing to purchase a given product or service solely on the basis of its environmental claims because they:



A) may not want to sacrifice convenience.
B) lack the knowledge to make informed decisions.
C) may not want to pay higher prices.
D) may be confused about which products are truly "environmentally safe" given that many marketers claim to produce "green products" even if they aren't.
E) believe all of the above to be true.



Answer: E

Consumers have an obligation to __________ in the exchange process and in the use and disposition of products.

Consumers have an obligation to __________ in the exchange process and in the use and disposition of products.



A) get everything they can for their money
B) do unto retailers as retailers would do unto them
C) reveal any and all pertinent personal information
D) act ethically and responsibly
E) not get upset if they feel they have been cheated



Answer: D

Which of the following statements about cause-related marketing is true?

Which of the following statements about cause-related marketing is true?





A) Cause -related marketing will rarely motivate consumers to switch to a brand or a retailer that supports a good cause.
B) U.S. consumers generally have a negative opinion of companies that support causes.
C) Although consumers are interested in cause-related marketing, it does not raise much money for the cause.
D) Cause-related marketing is expected to decrease.
E) Cause-related marketing may be a valued point of difference for brands and companies.



Answer: E

Cause-related marketing (CRM) programs incorporate all three concepts of social responsibility by addressing public concerns, satisfying customer needs, and:

Cause-related marketing (CRM) programs incorporate all three concepts of social responsibility by addressing public concerns, satisfying customer needs, and:



A) protecting the environment.
B) enhancing corporate sales and profits.
C) following the guidelines of industry-specific codes of ethics.
D) fulfilling company objectives.
E) demonstrating ethical behavior.


Answer: B

ADM's seven largest facilities in the United States and Europe are powered by co-generation, which cuts electric use and purchases significantly. Co-generation is more environmentally friendly than traditional power sources, producing less sulphur dioxide (SO2) and nitrogen oxide emissions. The Decatur, Illinois, co-generation facility burns a mixture of 10 percent used tires along with coal. Currently, the company's capacity allows it to burn about 11 million tires annually, more than the total discarded in Illinois each year. This is an example of:

ADM's seven largest facilities in the United States and Europe are powered by co-generation, which cuts electric use and purchases significantly. Co-generation is more environmentally friendly than traditional power sources, producing less sulphur dioxide (SO2) and nitrogen oxide emissions. The Decatur, Illinois, co-generation facility burns a mixture of 10 percent used tires along with coal. Currently, the company's capacity allows it to burn about 11 million tires annually, more than the total discarded in Illinois each year. This is an example of:




A) the Valdez Principle.
B) cause-related marketing.
C) green marketing.
D) environmental marketing.
E) transactional marketing.


Answer: C

ADM's seven largest facilities are powered by co-generation, which cuts electric use and purchases significantly. Co-generation is more environmentally-friendly than traditional power sources, producing less sulphur dioxide (SO2) and nitrogen oxide emissions. The Decatur, Illinois, co-generation facility burns a mixture of 10 percent used tires along with coal. Currently, the company's capacity allows it to burn about 11 million tires annually, more than the total discarded in Illinois each year. In terms of social responsibility, ADM is exhibiting:

ADM's seven largest facilities are powered by co-generation, which cuts electric use and purchases significantly. Co-generation is more environmentally-friendly than traditional power sources, producing less sulphur dioxide (SO2) and nitrogen oxide emissions. The Decatur, Illinois, co-generation facility burns a mixture of 10 percent used tires along with coal. Currently, the company's capacity allows it to burn about 11 million tires annually, more than the total discarded in Illinois each year. In terms of social responsibility, ADM is exhibiting:



A) profit responsibility.
B) mass marketing.
C) stakeholder responsibility.
D) product-related marketing.
E) societal responsibility.




Answer: E

"There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engaged in open and free competition without deception or fraud." This quote is most closely associated with:

"There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engaged in open and free competition without deception or fraud." This quote is most closely associated with:




A) cause-related marketing.
B) profit responsibility.
C) caveat emptor.
D) market aggregation.
E) Stakeholder responsibility.



Answer: B

Coca-Cola Enterprise (CCE), the world's largest soft-drink bottler voluntarily recalled 7,362 Coke Classic 8-packs in France because of possible small glass particles in the product. No glass was found in the bottles, but a CCE representative said that it would rather recall the product than risk one of its customers being injured. This sentiment is most closely related to which moral philosophy?

Coca-Cola Enterprise (CCE), the world's largest soft-drink bottler voluntarily recalled 7,362 Coke Classic 8-packs in France because of possible small glass particles in the product. No glass was found in the bottles, but a CCE representative said that it would rather recall the product than risk one of its customers being injured. This sentiment is most closely related to which moral philosophy?



A) hedonism
B) utilitarianism
C) existentialism
D) moral idealism
E) Socialism



Answer: D

Which of the following statements about codes of ethics are true?

Which of the following statements about codes of ethics are true?



A) All organizations are legally required to have and use a code of ethics.
B) Codes of ethics are formal statements of ethical principles and rules of conduct.
C) The existence of an ethical code is enough to ensure all employees act ethically.
D) Codes of ethics are unable to define ethical behavior when conflicts of interest exist.
E) All of the above statements about codes of ethics are true.




Answer: B

Which of the following actions would be considered software piracy?

Which of the following actions would be considered software piracy?




A) A printer in Taipei prints and binds 10,000 copies of a textbook without permission.
B) The owner of a small start-up business in Moncton installs software in its five computers by copying disks borrowed from his accountant.
C) A designer in London uses a trademark on several of her products.
D) A student in Toronto borrows three CDs from a friend and copies them for his own personal listening while he commutes to class.
E) All of the above actions would be considered examples of software piracy.



Answer: B

Image, a clothing manufacturer, will sell a retail clothing store its line of denim clothes only if the retailer also buys the manufacturer's line of polyester activewear. This would be an example of:

Image, a clothing manufacturer, will sell a retail clothing store its line of denim clothes only if the retailer also buys the manufacturer's line of polyester activewear. This would be an example of:



A) exclusive dealing
B) a requirement contract.
C) an exclusive territorial distributorship.
D) a tying arrangement
E) a preferential promotions contract.





Answer: D

Barriers to entry are business practices or conditions that make it difficult for new firms to enter the market. Which of the following is an example of a barrier to entry?

Barriers to entry are business practices or conditions that make it difficult for new firms to enter the market. Which of the following is an example of a barrier to entry?




A) capital requirements
B) advertising expenditures
C) distribution access
D) product identity
E) all of the above



Answer: E

The owner of your local KFC franchise has had a good year with rising revenues and reduced operating costs that resulted in personal income of roughly $100,000. Approximately one-third of that was taken for local, state, and federal income taxes, and another third went to pay for mortgage, car payments, food, clothing, and other necessities. What is the remaining third called?

The owner of your local KFC franchise has had a good year with rising revenues and reduced operating costs that resulted in personal income of roughly $100,000. Approximately one-third of that was taken for local, state, and federal income taxes, and another third went to pay for mortgage, car payments, food, clothing, and other necessities. What is the remaining third called?



A) windfall
B) bonus
C) discretionary income
D) disposable income
E) franchiser fee


Answer: C

In 2002 after four years of recession in Argentina, its government found it impossible to repay $132 billion in loans. As the Argentine government struggled to find ways to pay its debt, it froze many bank accounts and limited all bank withdrawals to $1,000. The country also experienced plunging consumer confidence, which directly impacted its marketing environment. This is an example of how _____ forces affect marketing.

In 2002 after four years of recession in Argentina, its government found it impossible to repay $132 billion in loans. As the Argentine government struggled to find ways to pay its debt, it froze many bank accounts and limited all bank withdrawals to $1,000. The country also experienced plunging consumer confidence, which directly impacted its marketing environment. This is an example of how _____ forces affect marketing.




A) economic
B) technological
C) competitive
D) social
E) ecological



Answer: A

Marriott Hotels has provided consumers with Fairfield Inns and Courtyard by Marriott, two less expensive offerings of Marriott customer service. This is an example of how marketers respond to consumers':

Marriott Hotels has provided consumers with Fairfield Inns and Courtyard by Marriott, two less expensive offerings of Marriott customer service. This is an example of how marketers respond to consumers':



A) value consciousness.
B) perceived value.
C) focused shopping.
D) value-point shopping.
E) conspicuous consumption.



Answer: A

_____ is an alternative to government control.

_____ is an alternative to government control.



A) Self-regulation
B) Industry standards
C) Corporate policy
D) Professional associations
E) Lawyers



Answer: A

The main purpose of trademarks is:

The main purpose of trademarks is:




A) to reduce new competitors from entering the industry.
B) to increase the value of the product.
C) for easier identification to the buying public.
D) to protect the firm selling a trademarked product and the consumer buying it.
E) to satisfy legal requirements for new products.


Answer: D

Sony's PlayStation 3 (PS3) has a powerful chip that provides new levels of realism, PS3 also contains a Blu-Ray DVD player. However, the less complex, less expensive Nintendo Wii has been outselling Sony's game system by a margin of 3-to-1. Based on D'Aveni's model this is reflective of:

Sony's PlayStation 3 (PS3) has a powerful chip that provides new levels of realism, PS3 also contains a Blu-Ray DVD player. However, the less complex, less expensive Nintendo Wii has been outselling Sony's game system by a margin of 3-to-1. Based on D'Aveni's model this is reflective of:




A) cost,quality.
B) timing and know how.
C) entry barriers.
D) loose bricks.
E) deep pockets.



Answer: B

In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena:

In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena:



A) cost,quality.
B) timing and know how.
C) entry barriers.
D) deep pockets.
E) sporting events.



Answer: A

The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.

The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.



A) five forces model
B) generic strategies
C) strategic intent
D) hypercompetition
E) factor conditions



Answer: D

According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of:

According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of:




A) factor conditions.
B) demand conditions.
C) strategy, structure, and rivalry.
D) related and supporting industries.
E) formation of European Union.



Answer: D

According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's:

According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's:



A) factor conditions.
B) demand conditions.
C) strategy, structure, and rivalry.
D) related and supporting industries.
E) global conditions.



Answer: A
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