Question 1

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 refers to the practice of obtaining a product or service from only one supplier. In this case, the baseball bat manufacturer is obtaining all its ash tree wood from a single supplier in Pennsylvania.

Question 2

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

If a company gives a supplier a lot of business, it is likely that the supplier may be more willing to provide preferential treatment in order to maintain the business relationship. This can include better pricing, priority in fulfilling orders, or customized products/services to meet the company's needs. However, it's important to note that this influence only exists as long as the company continues to provide a significant amount of business to the supplier.

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

The company markets its product directly to the consumer via the internet, without any intermediaries involved, making it a direct channel of distribution.

Question 4

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 5

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

Accepted Answer

Companies invest in building their brand recognition and reputation because a well-established brand name generates trust among consumers.

Question 6

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 key product characteristics needed to succeed in a new country market is crucial for successful product invention and launch.

Question 7

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

Gray market refers to the legal importation and sale of products through unauthorized channels, taking advantage of price differences across countries. This differs from the illegal trade of goods and services, which is referred to as a black market. The other options listed are not related to gray market.

Question 8

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 refers to the location or distribution channel where the goods or services are offered for sale. It is the third P of the marketing mix and deals with all activities involved in making the product available to the customer. It includes decisions about channels of distribution, logistics, transport, and warehousing.

Question 9

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 statement "It refers to the shortest channel of distribution, consisting of just the producer and the end consumer" best describes the direct channel of distribution.

Question 10

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 procuring component parts from a country with low manufacturing costs, which is an example of global sourcing. Open-sourcing refers to the practice of making the source code of software freely available to the public, in order to encourage development and collaboration. In-sourcing and home sourcing refer to the practice of bringing previously outsourced work back in-house. Farm shoring is not a recognized term in the realm of sourcing or supply chain management.

Question 11

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 refers to the activities that inform and encourage consumers to buy a product or service, including advertising and personal sales. The other choices do not accurately describe promotion - A is describing distribution, B is describing a product, C is describing price, and E is describing place (or distribution).

Question 12

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 passage describes the firm outsourcing its research to various locations around the world, including India, China, the Czech Republic, and South Africa. Therefore, the correct answer is outsourcing.

Question 13

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:
A) product branding.
B) market positioning.
C) market segmentation.
D) channel of distribution.
E) social marketing.

Accepted Answer

The intermediaries mentioned in the statement are part of the channel of distribution, which is the path through which goods are transferred from the manufacturer to the end consumer.

Question 14

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

Accepted Answer

The statement is incorrect. While global sourcing may come with potential risks such as language and cultural barriers, longer lead times, and transportation costs, it can also provide benefits such as access to cheaper and higher-quality materials, larger market opportunities, and diversification of suppliers.

Question 15

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 16

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 refers to any physical good or intangible service that is offered for sale. The other options refer to distribution channels (A), price (C), promotion (D), and place (E) in the marketing mix.

Question 17

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 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. This helps companies to better understand their customers' needs, preferences, and behaviors, and to create products and marketing messages that resonate with specific segments.

Question 18

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

This is an example of an indirect channel of distribution as the goods are not directly passed from the producer to the end customer. Instead, they go through carry forward agents, distributors, wholesalers, and retailers before reaching the end customer.

Question 19

ICadbury Schweppes launched a 90-second television and cinema advertisement, which formed the centrepiece of the £6.2 million campaign for Cadbury Dairy Milk-brand chocolate. The campaign comprised of appearances on billboards, print newspapers and magazines, television and cinema spots, event sponsorships, and an internet presence. Which of the four Ps of marketing includes these activities?
A) Price
B) Promotion
C) Place
D) Product
E) Positioning

Accepted Answer

The activities listed, such as appearances on billboards, print newspapers and magazines, television and cinema spots, event sponsorships, and an internet presence, are all part of the promotional mix, which is one of the four Ps of marketing.

Question 20

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

Accepted Answer

Reverse innovation means designing a product in a developing country and bringing it to a developed country at a lower cost or with additional benefits.

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

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

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.

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 statements holds true for price?

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

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.

In marketing, gray market refers to the:

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

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

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, which of the following statements holds true for promotion?

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

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

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

In marketing, market segmentation refers to the:

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