Question 1

The first step in inventing a product for a new country market is to understand the key product characteristics needed to succeed in that market.

Accepted Answer

Understanding the key product characteristics needed to succeed in a new country market is crucial for tailoring the product to meet local needs, preferences, and regulatory requirements, thereby increasing the chances of its success.

Question 2

Reverse innovation means designing a product for the home country and taking that innovation to a developing country.

Accepted Answer

Reverse innovation actually refers to the process of developing products in emerging or developing countries and then distributing them globally, including in developed countries.

Question 3

A cosmetic company manufactures and markets beauty and related products.It markets its products only via the internet.This is an example of (a):
A)indirect channel of distribution.
B)direct channel of distribution.
C)channel value proposition.
D)franchising.
E)licensing.

Accepted Answer

Marketing products directly to consumers via the internet means there are no intermediaries involved, which is characteristic of a direct channel of distribution.

Question 4

The Los Altos firm-which performs global market research on everything from routers to software for clients including Cisco, HP, and Microsoft-has only 14 full-time employees.But it farms out research from Silicon Valley to India's Evalueserve and to some 5,000 other independent experts in China, the Czech Republic, and South Africa.The above serves as an example of:
A)open-sourcing.
B)in sourcing.
C)farmshoring.
D)home-sourcing.
E)outsourcing.

Accepted Answer

The firm is outsourcing its research tasks to Evalueserve in India and to independent experts in various countries, which is a practice of hiring external organizations to perform services or create goods that traditionally were performed in-house by the company's own employees and staff.

Question 5

In marketing, which of the following holds true for counterfeit markets?
A)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.
B)It refers to the trade of goods and services that are illegal in themselves and/or distributed through illegal channels.
C)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.
D)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.
E)It refers to the secretive, unregulated (though often technically legal)trading in commodity futures.

Accepted Answer

Counterfeit markets involve vendors deceiving buyers by altering or imitating products and selling them as genuine branded items, often at lower prices.

Question 6

Which of the following statements holds true for the indirect channel of distribution?
A)It refers to the shortest channel of distribution, consisting of just the producer and the end consumer.
B)It refers to the combination of the four Ps of marketing that can be customized for different countries.
C)It refers to a channel of distribution which contains one or more intermediaries between the consumer and the producer.
D)It refers to a channel of distribution where the customer is the first and not the last link in the distribution chain.
E)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.

Accepted Answer

An indirect channel of distribution involves one or more intermediaries (such as wholesalers, distributors, or retailers) between the producer and the consumer, facilitating the movement of goods or services.

Question 7

In marketing, which of the following statements holds true for place?
A)It refers to the shortest channel of distribution, consisting of just the producer and the end consumer.
B)It refers to any physical good or intangible service that is offered for sale.
C)It refers to the amount of money that the consumer pays for any physical good or intangible service.
D)It refers to the activities that inform and encourage consumers to buy any physical good or intangible service including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales.
E)It refers to the location at which the company offers any physical good or intangible service for sale.

Accepted Answer

Place in marketing refers to the distribution aspect, which includes the locations or channels through which a product or service is made available to customers. This can involve physical locations like stores or digital platforms.

Question 8

In the case of sole-sourcing, if the company gives the supplier a lot of business, the company may have more influence over the supplier for preferential treatment.

Accepted Answer

In a sole-sourcing arrangement, where a company relies on a single supplier for certain goods or services, the volume of business given to the supplier can indeed increase the company's leverage. This leverage may result in preferential treatment, such as priority in order fulfillment, customized product features, or more favorable pricing and terms, as the supplier values the continued business and relationship with the company.

Question 9

In marketing, which of the following statements holds true for a product?
A)It refers to the shortest channel of distribution, consisting of just the producer and the end consumer.
B)It refers to any physical good or intangible service that is offered for sale.
C)It refers to the amount of money that the consumer pays for any physical good or intangible service.
D)It refers to the activities that inform and encourage consumers to buy any physical good or intangible service including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales.
E)It refers to the location at which the company offers any physical good or intangible service for sale.

Accepted Answer

A product in marketing refers to any physical good or intangible service that is offered for sale, encompassing both tangible items and services provided to consumers or other businesses.

Question 10

A single supplier from Pennsylvania supplies ash tree wood to a company that manufactures baseball bats.This is an example of:
A)open-sourcing.
B)multisourcing.
C)sole-sourcing.
D)homesourcing.
E)outsourcing.

Accepted Answer

Sole-sourcing occurs when a company relies on a single supplier for a product or service. In this case, the company manufacturing baseball bats is dependent on one supplier from Pennsylvania for ash tree wood, making it an example of sole-sourcing.

Question 11

In marketing, which of the following statements holds true for price?
A)It refers to the shortest channel of distribution, consisting of just the producer and the end consumer.
B)It refers to any physical good or intangible service that is offered for sale.
C)It refers to the amount of money that the consumer pays for any physical good or intangible service.
D)It refers to the activities that inform and encourage consumers to buy any physical good or intangible service, including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales.
E)It refers to the location at which the company offers any physical good or intangible service for sale.

Accepted Answer

Price refers to the amount of money that the consumer pays for any physical good or intangible service.

Question 12

In marketing, which of the following statements holds true for the direct channel of distribution?
A)It refers to the shortest channel of distribution, consisting of just the producer and the end consumer.
B)It refers to a channel of distribution that starts with the supplier and ends with the distributor.
C)It refers to a channel of distribution which contains one or more intermediaries between the consumer and the producer.
D)It refers to a channel of distribution where the customer is the first and not the last link in the distribution chain.
E)It refers to the entire channel of activities that inform and encourage consumers to buy any physical good or intangible service including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales.

Accepted Answer

The direct channel of distribution involves only two parties: the producer and the consumer, with no intermediaries involved, making it the shortest distribution channel.

Question 13

Nestlé India has a distribution channel that consists of the central warehouse near New Delhi.The goods are handed over to carry forward agents.The agents ensure that the goods reach the distributors assigned to each territory.Then the goods are passed over to the wholesalers in each of the territories.The goods then go to the retailers and finally reach the end customers.The above constitutes an example of:
A)indirect channel of distribution.
B)direct channel of distribution.
C)channel value proposition.
D)franchising.
E)licensing.

Accepted Answer

The described distribution process involves multiple intermediaries (carry forward agents, distributors, wholesalers, and retailers) between the manufacturer (Nestlé India) and the end customers, which is characteristic of an indirect channel of distribution. Direct channels would involve selling directly to consumers without intermediaries.

Question 14

In marketing, which of the following statements holds true for promotion?
A)It refers to the shortest channel of distribution, consisting of just the producer and the end consumer.
B)It refers to any physical good or intangible service that is offered for sale.
C)It refers to the amount of money that the consumer pays for any physical good or intangible service.
D)It refers to the activities that inform and encourage consumers to buy any physical good or intangible service including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales.
E)It refers to the location at which the company offers any physical good or intangible service for sale.

Accepted Answer

Promotion encompasses the various efforts and tools used to communicate with customers about products or services, aiming to stimulate interest and demand. This includes advertising, sales promotions, and personal selling among other strategies.

Question 15

Paying small sums of money, typically to a foreign official in exchange for him/her violating some official duty or responsibility or to speed routine government actions, refers to:
A)Tax evasion practice
B)Traditional Small Scale Bribery
C)Large Scale Bribery
D)Gift/Favors/Entertainment
E)Illegal/Immoral Activities in the Host Country

Accepted Answer

This practice is referred to as "Traditional Small Scale Bribery," which involves paying small sums of money to expedite or facilitate routine government actions, often seen as a form of corruption.

Question 16

Companies invest a lot in building their brand recognition and reputation because a brand name signals trust.

Accepted Answer

A brand name signals trust to consumers by representing a certain level of quality, reliability, and consistency in the products or services offered, which is why companies invest significantly in building their brand recognition and reputation.

Question 17

A consumer durable company produces and markets refrigerators locally.It faces competition from cheap imports.To compete with the cheap imports, it starts procuring the component parts of the refrigerator from a country with low manufacturing costs.The above is an example of:
A)open-sourcing.
B)in sourcing.
C)global sourcing.
D)home sourcing.
E)farm shoring.

Accepted Answer

The company is sourcing component parts from a country with low manufacturing costs to compete with cheap imports, which is an example of global sourcing. This strategy involves procuring goods and services from across geopolitical boundaries, often to take advantage of lower costs.

Question 18

In marketing, market segmentation refers to the:
A)process of dividing a larger market into smaller markets that share a common characteristic, such as age, gender, income level, or lifestyle.
B)combination of the four Ps of marketing that can be customized for different countries.
C)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.
D)commerce areas where vendors purposely deceive buyers by altering products and then selling them as branded products at a bargain cost.
E)set of expectations, memories, stories and relationships that-taken together-account for a consumer's decision to choose one product or service over another.

Accepted Answer

Market segmentation is the process of dividing a larger market into smaller segments that share common characteristics, such as demographics or lifestyle preferences, to target marketing efforts more effectively.

Question 19

In marketing, gray market refers to the:
A)process of dividing a larger market into smaller markets that share a common characteristic, such as age, gender, income level, or lifestyle.
B)trade of goods and services that are illegal in themselves and/or distributed through illegal channels.
C)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.
D)commerce areas where vendors purposely deceive buyers by altering products and then sell them as branded products at a bargain cost.
E)secretive, unregulated (though often technically legal)trading in commodity futures.

Accepted Answer

EC) Gray market refers to situations where products are sold through channels that are unauthorized by the original manufacturer but not necessarily illegal. This often happens across international borders where price differences can make it profitable to sell goods in a country different from where they were intended to be sold.E) The term is also used in finance to describe the trading of a commodity through channels that are unregulated by official bodies but not necessarily illegal. This can include trading in futures or other financial instruments in a way that is outside of the oversight of regulatory bodies.

Question 20

The main disadvantages of global sourcing are low quality and higher cost.

Accepted Answer

Global sourcing can lead to lower costs due to cheaper labor and materials in some countries. However, it can introduce challenges such as longer lead times, cultural differences, and potential risks to supply chain disruptions, rather than inherently leading to low quality and higher costs.

Quiz 14: Competing Effectively Through Global Marketing, Distribution, and Supply-Chain Management

The first step in inventing a product for a new country market is to understand the key product characteristics needed to succeed in that market.

Reverse innovation means designing a product for the home country and taking that innovation to a developing country.

A cosmetic company manufactures and markets beauty and related products.It markets its products only via the internet.This is an example of (a) :

In marketing, which of the following holds true for counterfeit markets?

Which of the following statements holds true for the indirect channel of distribution?

In marketing, which of the following statements holds true for place?

In the case of sole-sourcing, if the company gives the supplier a lot of business, the company may have more influence over the supplier for preferential treatment.

In marketing, which of the following statements holds true for a product?

A single supplier from Pennsylvania supplies ash tree wood to a company that manufactures baseball bats.This is an example of:

In marketing, which of the following statements holds true for price?

In marketing, which of the following statements holds true for the direct channel of distribution?

In marketing, which of the following statements holds true for promotion?

Paying small sums of money, typically to a foreign official in exchange for him/her violating some official duty or responsibility or to speed routine government actions, refers to:

Companies invest a lot in building their brand recognition and reputation because a brand name signals trust.

A consumer durable company produces and markets refrigerators locally.It faces competition from cheap imports.To compete with the cheap imports, it starts procuring the component parts of the refrigerator from a country with low manufacturing costs.The above is an example of:

In marketing, market segmentation refers to the:

In marketing, gray market refers to the:

The main disadvantages of global sourcing are low quality and higher cost.