Of the five strategies for entering new markets, direct investment creates the

Marketing

080601RR - Understanding the Marketplace 1. Tariffs, quotas, antidumping laws, and currency exchange policies affect global A. advertising. B. product design. C. logistics. D. pricing strategies. 2. Typically, B2B buyers ask potential suppliers to A. always be involved in reselling. B. write the RFP for the buyer. C. submit formal proposals. D. sponsor interviews with final customers to determine product needs. 3. At many universities, faculty members in the education department were among the first to ask for personal computers. These faculty members were _______ in the buying center. A. users B. buyers C. influencers D. initiators 4. When considering _______, a firm should consider how economic development affects the attributes of a product, how it might standardize the product, and the needs of the target market. A. the establishment of a joint venture B. its international marketing return on investment (IMROI) C. cultural adaptation D. global product strategies 5. The processes by which goods, services, capital, people, information, and ideas flow across national borders is known as A. standardization. B. marketing. C. globalization. D. advertising. 6. When Brandon decided he needed a new car, he immediately called his old college roommate, who owns a BMW dealership, to ask questions about options and financing. Brandon was searching for information from a(n) A. decision heuristics establishment. B. internal source. C. external source. D. internal locus of control.

7. Of the five strategies for entering new markets, direct investment creates the A. least investment cost. B. opportunity for strong strategic alliances. C. greatest potential risk. D. most franchisee control. 8. When entering a foreign market, the least risky strategy is A. joint venture. B. direct investment. C. exporting. D. franchising. 9. Which of the following is a B2B buying situation in which the decision is likely to be the most complex and take the longest to complete? A. A straight rebuy B. A modified rebuy C. An internally-structured rebuy D. A new buy 10. In the consumer decision process, deciding how long and how much effort to expend searching for information depends on A. the degree of perceived risk associated with the product or service being considered. B. habitual decision making that most influences the alternative evaluation process. C. the postpurchase anxiety associated with the product or service being considered. D. the cultural reference group that most influences the alternative evaluation process. 11. GDP is defined as A. the market value of goods and services produced in a country in a year. B. greater domestic product. C. national annual income minus national annual taxes. D. the value of a country's annual exports minus its imports. 12. Jennifer's spending decisions are heavily influenced by her family, her peers, and the beliefs and values she was exposed to in her religious education. Jennifer's spending decisions are heavily influenced by her A. cognitive needs. B. external social environment. C. physiological needs. D. assessment of psychological risk. 13. A _______ sets a limit on the amount of an imported item that can enter a country in a time period. A. boycott B. quota C. tariff D. duty

14. Rick knows his company's electronic components sales depend on sales of new cars. Rick's company faces _______ demand. A. situational B. derived C. autocratic D. synthetic 15. The consumer decision process model represents A. the concept of habitual decision making. B. the steps that consumers go through before, during, and after making purchases. C. the predicted process consumers go through when shifting from an internal locus of control to an external locus of control. D. the retrieval of an evoked set based on physiological needs. 16. The main function of the _______ is to ensure that trade flows as smoothly, predictably, and freely as possible. A. World Bank B. WTO C. European Union D. IMF 17. After posting an RFP for telecommunication equipment, a firm received six proposals from qualified vendors. Next, that firm will most likely A. recognize proposal obstacles that the firm must comply with. B. revise need recognition through external sources. C. invite alternative suppliers to bid on supplying what's requested. D. evaluate the proposals and likely narrow the choice to a few suppliers. 18. Derek bought a pickup truck to transport his equipment to fishing tournaments. He also bought a pickup for his lawn maintenance business. His purchases were A. neither business-to-consumer nor business-to-business because he's the consumer and his uses might be mixed. B. both business-to-business purchases because he's the user in both situations. C. both business-to-consumer purchases because he's the user in both situations. D. business-to-consumer and business-to-business, respectively. 19. After need recognition, a business often considers alternatives and comes up with _______ that suppliers might use to develop their proposals to supply the product. A. derived demand B. initiator instructions C. product specifications D. democratic ideals 20. Gerald is assessing global entry strategies for his gourmet sandwich business. He doesn't want to take much risk, and he's willing to limit his control of international stores. Gerald is likely to use a _______ strategy. A. direct investment B. franchising C. joint venture D. strategic alliance

21. Compared to the B2C process, the information search and alternative evaluation steps in the B2B process are A. less focused on customer value creation. B. more formal and structured. C. based on derived supply analysis. D. centrally planned. 22. The consumer buying process begins when A. consumers enter a store. B. functional needs are greater than psychological needs. C. consumers recognize that they have an unsatisfied need. D. performance risk is minimized. 23. Marketers often use principles and theories from _______ to decipher many consumer actions and develop basic strategies for dealing with their behavior. A. sociology and psychology B. physics and chemistry C. English and mathematics D. history and archeology 24. A(n) _______ is a need or want that's strong enough to cause the person to seek satisfaction. A. price B. motive C. attitude D. perception 25. When mountain climbers purchase clothing for scaling Mount Everest, their purchases are primarily addressing _______ needs. A. prepurchase B. psychological C. social D. functional End of exam