Description

INSTANT DOWNLOAD COMPLETE TEST BANK WITH ANSWERS

 

MKTG 9th Edition by Charles W. Lamb – Test Bank

 

Sample  Questions

 

1. Codes that are too detailed encourage employees to substitute rules for judgment.

a. True
b. False

 

ANSWER:   True
RATIONALE:   Codes that are too detailed encourage employees to substitute rules for judgment. For instance, if employees are involved in questionable behavior, they may use the absence of a written rule as a reason to continue behaving that way, even though their conscience may be telling them to stop. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Remember
BUSPROG: Ethics
Codes of Conduct
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: BZHZQ0VUY0AZ2EGSF409
QUESTION ID:   JFND-GO4G-G3BU-CC1F

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJA-GA5S-E3JZ-G3TG-CP3Z-GHSS-GCTO-CRSU-G3TI-GOSU-GQJZ-8YSU-CC5N-G7TG-KPJI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

2. Studies suggest that ethical beliefs vary little from culture to culture.

a. True
b. False

 

ANSWER:   True
RATIONALE:   Studies suggest that ethical beliefs vary little from culture to culture. Certain practices, however, such as the use of illegal payments and bribes, are far more acceptable in some places than in others, though enforced laws are increasingly making the practice less accepted. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Remember
BUSPROG: Ethics
Cultural Differences
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: CQPSR19RFYWPN98GM744
QUESTION ID:   JFND-GO4G-G3BU-CC1R

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJO-CA3D-Y3MB-CO3S-ECDB-8YSU-CPMD-CESU-YC5B-GOSS-NPDB-GCSU-NP3Z-GTTU-YAJI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

3. The process of formulating the code of ethics facilitates discussion among employees about what is right and wrong and ultimately leads to better decisions.

a. True
b. False

 

ANSWER:   False
RATIONALE:   The process of formulating the code of ethics facilitates discussion among employees about what is right and wrong and ultimately leads to better decisions. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Remember
BUSPROG: Ethics
Codes of Conduct
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: FVCA26FZPXYLJX686104
QUESTION ID:   JFND-GO4G-G3BU-CC1D

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJ3-G7UG-EA5N-8R3S-RPT3-8YSU-KP3W-8RSS-GCMR-GOSU-KAUR-GCSU-Y3BA-GPTG-RA5F-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

4. Moral relativism is a belief in time-and-place ethics, that is, that ethical truths depend on the individuals and groups holding them

a. True
b. False

 

ANSWER:   True
RATIONALE:   Moral relativism is a belief in time-and-place ethics, that is, that ethical truths depend on the individuals and groups holding them. See 3-2: The Concept of Ethical Behavior
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.02
TOPICS:   A-head: The Concept of Ethical Behavior
Bloom’s: Remember
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: GKGLH9KPK1WP92KC7322
QUESTION ID:   JFND-GO4G-G3BU-CCTU

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJO-GA5S-RQJZ-C3TD-E3JZ-CCSU-KCB3-CESS-RCMG-GOSU-R3BA-CRSU-RPMG-GF1U-KCTT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

5. No large companies have used cause-related marketing so far.

a. True
b. False

 

ANSWER:   False
RATIONALE:   Examples of cause-related marketing used by large companies are abundant. Nike and the Livestrong Foundation have sold more than 80 million Livestrong bracelets for cancer research. In one of the most unusual examples of cause-related marketing, Coca-Cola is trying to build better relationships between the people of India and Pakistan. See 3-6: Cause-Related Marketing
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.06
TOPICS:   A-head: Cause-Related Marketing
Bloom’s: Remember
BUSPROG: Ethics
Cause-Related Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: SEFMGZDRX855SR21U134
QUESTION ID:   JFND-GO4G-G3BU-CCT1

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJT-8BTD-NP5B-CW3D-CA3A-CASS-NQMR-CRSU-NQBT-GOSU-GPTW-COSU-KCJZ-CFOS-ECMB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

6. The greater the likelihood that an action will result in a harmful outcome, the more likely that marketers will recognize a problem as unethical.

a. True
b. False

 

ANSWER:   True
RATIONALE:   The greater the likelihood that an action will result in a harmful outcome, the more likely that marketers will recognize a problem as unethical. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Remember
BUSPROG: Ethics
Ethical Decision Making
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: THCHY8HE9ZH7KMJKW766
QUESTION ID:   JFND-GO4G-G3BU-CCTT

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJA-G3OU-GPUD-GBTS-G3J3-CWSU-OAJA-8RSU-EA3S-GOSS-EC3T-COSU-1PJU-GA5U-N3DD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

7. Preconventional morality moves from an egocentric viewpoint toward the expectations of society.

a. True
b. False

 

ANSWER:   False
RATIONALE:   Preconventional morality is childlike––calculating, self­centered, and even selfish, based on what will be immediately punished or rewarded. Conventional morality moves from an egocentric viewpoint toward the expectations of society. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Remember
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: UXGD24DBL98P4EFXD652
QUESTION ID:   JFND-GO4G-G3BU-CCTO

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMD-GEHS-NCBT-GT1S-NAT1-GOSS-NC3O-CESU-CA5F-GOSS-KCDF-GASU-GCTU-8Y3U-1QMR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

8. Marketing professionals who perceive fewer ethical problems in their organizations tend to disapprove more strongly of “unethical” or questionable practices than those who perceive more ethical problems.

a. True
b. False

 

ANSWER:   True
RATIONALE:   Marketing professionals who perceive fewer ethical problems in their organizations tend to disapprove more strongly of “unethical” or questionable practices than those who perceive more ethical problems. Apparently, the healthier the ethical environment, the more likely it is that marketers will take a strong stand against questionable practices. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Remember
BUSPROG: Ethics
Ethical Decision Making
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: VLUDNYPKXMPGX88R8571
QUESTION ID:   JFND-GO4G-G3BU-CCTZ

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJ3-GY5S-CPMD-8Y5U-YPMR-CWSU-KP3O-8RSS-E3TW-GOSU-KC5N-COSS-NPMB-CJ1G-NQMF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

9. In rule utilitarianism, a person performs the acts that benefit the most people, regardless of personal feelings or societal constraints such as laws.

a. True
b. False

 

ANSWER:   False
RATIONALE:   In act utilitarianism, a person performs the acts that benefit the most people, regardless of personal feelings or societal constraints such as laws. See 3-2: The Concept of Ethical Behavior
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.02
TOPICS:   A-head: The Concept of Ethical Behavior
Bloom’s: Remember
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: VWSKXYKNWFBFW3JA9696
QUESTION ID:   JFND-GO4G-G3BU-CCTS

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMN-8Y4D-1PBO-GW4U-GAMB-CCSS-C3TO-8YSU-ECUF-GOSU-NPDG-CESU-EQJZ-GF1U-N3TO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

10. Morals are rules people develop as a result of cultural values and norms.

a. True
b. False

 

ANSWER:   True
RATIONALE:   Morals are the rules people develop as a result of cultural values and norms. Culture is a socializing force that dictates what is right and wrong. Moral standards may also reflect the laws and regulations that affect social and economic behavior. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Remember
BUSPROG: Ethics
Ethical behavior
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: WFBN94X9CRGUMJQWJ553
QUESTION ID:   JFND-GO4G-G3BU-CCTI

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJT-GBTU-13BZ-GOHD-YQMR-CRSU-ECUN-8RSS-ECJT-GOSU-NATT-COSU-G3J3-CITG-ECB3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

11. Law is not a perfect mechanism for ensuring good corporate and employee behavior.

a. True
b. False

 

ANSWER:   True
RATIONALE:   Law is not a perfect mechanism for ensuring good corporate and employee behavior. This is because laws often address the lowest common denominator of socially acceptable behavior. See 3-1: Determinants of a Civil Society
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.01
TOPICS:   A-head: Determinants of a Civil Society
Bloom’s: Remember
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: WMKKAZS6AB4E2MA9D280
QUESTION ID:   JFND-GO4G-G3BU-CCTW

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJS-COAU-KP3W-GA5D-G3T3-GHSU-NQMN-CRSS-EPDR-GOSU-CQBZ-GRSS-RCBZ-CFTD-RATO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

12. Most business people have progressed beyond the self-centered and manipulative actions of preconventional morality.

a. True
b. False

 

ANSWER:   True
RATIONALE:   Preconventional morality is childlike––calculating, self­centered, and even selfish, based on what will be immediately punished or rewarded. Fortunately, most businesspeople have progressed beyond this behavior. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Remember
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: WSCFTVK9FZQJURCZA131
QUESTION ID:   JFND-GO4G-G3BU-CC4N

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMG-8BOU-QCUD-GCAD-YPJO-GESU-CQMD-CRSS-C3TO-GOSU-KCJA-CCSS-EQB3-GI1D-KCDF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

13. Cause-related marketing is very popular and is estimated to generate about $7 billion a year in revenue.

a. True
b. False

 

ANSWER:   True
RATIONALE:   Cause-related marketing is very popular and is estimated to generate about $7 billion a year in revenue. It creates good public relations for the firm and will often stimulate sales of the brand. See 3-6: Cause-Related Marketing
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.06
TOPICS:   A-head: Cause-Related Marketing
Bloom’s: Remember
BUSPROG: Ethics
Cause-Related Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: XQZU6GKM9V4XX1MQR566
QUESTION ID:   JFND-GO4G-G3BU-CC4B

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJU-GO3G-GPJW-CO3S-NCUG-GHSU-ECBO-8RSS-EAJW-GOSU-QA3O-GASU-RAJO-GY3G-N3T3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

14. Business gift giving is considered as the most unacceptable business practice in China.

a. True
b. False

 

ANSWER:   False
RATIONALE:   In China, business gift giving is widely accepted and expected. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Remember
BUSPROG: Ethics
Cultural Differences
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: YERDJAZ2DFQ7AD44K066
QUESTION ID:   JFND-GO4G-G3BU-CC33

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJU-CP1G-NCUG-CEAU-YPBI-8YSU-Q3JI-CRSU-1PJS-GOSU-QC3S-GHSU-RCBZ-8RHS-CCB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

15. Researchers found that when top managers develop a strong ethical culture, unethical behavior is reported less frequently.

a. True
b. False

 

ANSWER:   False
RATIONALE:   Researchers found that when top managers develop a strong ethical culture, there is reduced pressure to perform unethical acts, fewer unethical acts are performed, and unethical behavior is reported more frequently. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Remember
BUSPROG: Ethics
Ethical Decision Making
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: ZYAWZRARYP1YHXBAX387
QUESTION ID:   JFND-GO4G-G3BU-CC3A

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJT-GJTD-GA31-GFTD-GPBT-GOSS-EATU-8YSU-KQB1-GOSS-ECJI-8RSU-OP5D-GOHG-RQMN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

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

a. Any marketing effort for social or other charitable causes can be referred to as cause-related marketing.
b. Cause-related marketing is a marketing relationship based on a straight donation.
c. Cause-related marketing occurs when government agencies and nonprofit agencies launch social campaigns.
d. Cause-related marketing seldom helps companies increase the sales of their products.

 

ANSWER:   a
RATIONALE:   A sometimes controversial subset of social responsibility is cause-related marketing. Sometimes referred to as simply “cause marketing,” it is the cooperative efforts of a for-profit firm and a nonprofit organization for mutual benefit. Any marketing effort for social or other charitable causes can be referred to as cause-related marketing. See 3-6: Cause-Related Marketing
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.06
TOPICS:   A-head: Cause-Related Marketing
Bloom’s: Understand
BUSPROG: Ethics
Cause-Related Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: BZKU0EUT52W219T1P134
QUESTION ID:   JFND-GO4G-G3BU-CC4G

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJU-GE3S-C3DG-GA4S-RPMD-CASU-RAUF-CESS-GP31-GOSU-QCB3-8RSU-GCUF-GHHU-NCDF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

17. Synergy Inc. has developed a line of appliances that run on the sun’s energy and cause no harm to the environment. The company is also planning to introduce battery-run motorbikes that release no pollution. Which of the following concepts is illustrated in this scenario?

a. Divestment
b. Opportunism
c. Green marketing
d. Cause-related marketing

 

ANSWER:   c
RATIONALE:   Synergy Inc. is using green marketing. Green marketing is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment. See 3-5: Arguments For and Against Social Responsibility
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.05
TOPICS:   A-head: Arguments For and Against Social Responsibility
Bloom’s: Apply
BUSPROG: Reflective Thinking
Green Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: CBGHN40KYHAKFVR70148
QUESTION ID:   JFND-GO4G-G3BU-CC4F

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJZ-GFUD-RCUR-CC4G-KPJW-GCSS-RQMD-CRSU-RATI-GOSU-GC3I-8YSS-CA5R-GH3D-13UF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

18. Marketers are most likely to recognize an action as unethical when:

a. there is a greater degree of agreement among managerial peers that the action is harmful.
b. there is a long time gap between the action and the onset of negative consequences.
c. fewer individuals in the organizations are likely to get affected by the action.
d. top managers exercise little control over the organizational culture.

 

ANSWER:   a
RATIONALE:   The greater the degree of agreement among managerial peers that an action is harmful, the more likely that marketers will recognize a problem as unethical. Research has found that a strong ethical culture among coworkers decreases observations of ethical misconduct. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Ethical Decision Making
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: CEAQKYD2L1SJUS6RB861
QUESTION ID:   JFND-GO4G-G3BU-CC4R

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMG-CAHS-KC3A-CF1D-NPDN-GHSS-RP33-CRSU-1P33-GOSU-CA5G-GOSU-EAMR-CTUD-Q3TS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

19. The stakeholder theory of corporate social responsibility:

a. considers the management of an organization as one of the stakeholders.
b. excludes customers and government agencies among stakeholders.
c. does not consider the owners of an organization as the stakeholders.
d. does not consider first-line employees of an organization as stakeholders.

 

ANSWER:   a
RATIONALE:   Stakeholder theory says that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation. It considers the management of an organization as one of the stakeholders. See 3-4: Corporate Social Responsibility
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.04
TOPICS:   A-head: Corporate Social Responsibility
Bloom’s: Understand
BUSPROG: Ethics
Corporate Social Responsibility
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: CSQG5NZAPCWCTJTJ7149
QUESTION ID:   JFND-GO4G-G3BU-CC4D

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJZ-CPOU-QA31-GRHS-GAMR-CRSU-CP5R-8YSU-CAUF-GOSU-RATT-GWSU-RPT3-GA5D-QQJS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

20. Jordon, a sales manager, always advises his subordinates to build long-term relationships of trust with his customers. He also instructs them to refrain from making deals that might not be very suitable for the customers, even if it means not meeting sales targets. Which of the following levels of ethical development is illustrated in the scenario?

a. Postconventional morality
b. Conventional morality
c. Ethnocentric morality
d. Xenocentric morality

 

ANSWER:   a
RATIONALE:   Jordon is at the postconventional level of morality. Postconventional morality represents the morality of the mature adult. At this level, people are less concerned about how others might see them and more concerned about how they see and judge themselves over the long run. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Apply
BUSPROG: Reflective Thinking
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: CSWW1Z3G238QW0HKW189
QUESTION ID:   JFND-GO4G-G3BU-CC3U

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJ3-COAD-YATZ-CCHG-EPJO-CRSS-GCBA-8YSU-QATS-GOSS-RC3Z-CWSS-EQDF-G3UG-C3UN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

21. Which of the following statements is true about the pyramid model of corporate social responsibility?

a. It states that philanthropy should be the most important function of a corporation.
b. It states that the economic responsibility of a corporation provides the foundation for its other responsibilities.
c. It states that governments and nonprofit organizations and not corporations should carry out social responsibility functions.
d. It states that social responsibility efforts should be focused on the external and not the internal stakeholders of a corporation.

 

ANSWER:   b
RATIONALE:   One theorist suggests that total corporate social responsibility has four components: economic, legal, ethical, and philanthropic. The pyramid of corporate social responsibility portrays economic performance as the foundation for the other three responsibilities. See 3-4: Corporate Social Responsibility
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.04
TOPICS:   A-head: Corporate Social Responsibility
Bloom’s: Understand
BUSPROG: Ethics
Corporate Social Responsibility
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: FCZYZ7S8R01S66GSP322
QUESTION ID:   JFND-GO4G-G3BU-CC31

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMN-CE4D-GCBU-CJUD-NCMN-GASU-N3UB-8YSS-RATT-GOSU-NP31-GCSU-QC3U-GR5S-KCDB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

22. One of the four major components of the pyramid of corporate social responsibility is:

a. opportunism.
b. self-dealing.
c. creativity.
d. philanthropy.

 

ANSWER:   d
RATIONALE:   One theorist suggests that total corporate social responsibility has four components: economic, legal, ethical, and philanthropic. The pyramid of corporate social responsibility portrays economic performance as the foundation for the other three responsibilities. See 3-4: Corporate Social Responsibility
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.04
TOPICS:   A-head: Corporate Social Responsibility
Bloom’s: Remember
BUSPROG: Ethics
Corporate Social Responsibility
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: HDBEKJWA7RX6TD4RP207
QUESTION ID:   JFND-GO4G-G3BU-CC3T

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMF-GTTS-CC31-G71D-1CT3-CCSS-RPB3-CESU-EAJU-GOSU-CAJI-GOSU-NCTW-GWHD-CPJZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

23. Which of the following opinions would a proponent of act utilitarianism hold about decision making in ethical dilemmas?

a. Intuition and personal feelings should guide decision making in cases of dilemmas.
b. The fairest alternative must be chosen for a dilemma under any circumstance.
c. The alternative that benefits the most people should be chosen even if it means breaking laws.
d. All individuals have a duty to adhere to laws and standards set by government and nongovernment agencies.

 

ANSWER:   c
RATIONALE:   In act utilitarianism, a person performs the acts that benefit the most people, regardless of personal feelings or societal constraints such as laws. See 3-2: The Concept of Ethical Behavior
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.02
TOPICS:   A-head: The Concept of Ethical Behavior
Bloom’s: Understand
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: HEPZWZMZJV9WSXLRZ274
QUESTION ID:   JFND-GO4G-G3BU-CC3O

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJO-CW4D-RCDB-8RHG-KAJA-8YSU-1PBI-8RSS-NPJS-GOSS-R3DN-GCSU-CPUN-8RAG-KQDD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

24. Which of the following is true of moral relativists?

a. They believe that laws should be followed under all circumstances.
b. Their ethical beliefs center on the time, place, and the pressure of a dilemma.
c. Their decisions are typically based on the predictions they make about the consequences of actions.
d. They believe in absolute rules and apply them to all ethical dilemmas.

 

ANSWER:   b
RATIONALE:   Moral relativism is a belief in time-and-place ethics, that is, that ethical truths depend on the individuals and groups holding them. Moral relativists do not believe in absolute rules. Their beliefs center on the pressure of the moment and whether the pressure justifies the action taken. See 3-2: The Concept of Ethical Behavior
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.02
TOPICS:   A-head: The Concept of Ethical Behavior
Bloom’s: Understand
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: JGPUA78ZFRCRAUYT8335
QUESTION ID:   JFND-GO4G-G3BU-CC3Z

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJW-GE3U-OPMB-GAAU-EC5N-CRSU-Q3JS-8RSS-EP33-GOSS-KQBA-GWSS-NAJT-GEHU-RQJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

25. The Foreign Corrupt Practices Act:

a. applies exclusively cases of financial misrepresentations made by foreign corporations that have entered into contracts with U.S. corporations.
b. prohibits U.S. corporations from entering into contracts with foreign corporations.
c. applies exclusively to foreign corporations in the U.S.
d. prohibits U.S. corporations from bribing public officials of foreign governments.

 

ANSWER:   d
RATIONALE:   The Foreign Corrupt Practices Act (FCPA), was enacted because Congress was concerned about U.S. corporations’ use of illegal payments and bribes in international business dealings. This act prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Cultural Differences
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: JLXUBUC10NZ6GQJWS354
QUESTION ID:   JFND-GO4G-G3BU-CC3S

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMR-CA5S-EPTU-8Y5U-RATI-GCSU-1CT3-CRSU-1C5R-GOSS-CAUB-CWSU-C3DB-GH5U-QCBW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

26. Hallie has a tendency to be egocentric. She follows the rules of her company only to avoid punishment and not to gain respect. When making decisions, she always focuses on what immediate benefits she will gain from an alternative. Which of the following stages of ethical development is illustrated in the scenario?

a. Preconventional morality
b. Postconventional morality
c. Conventional morality
d. Ethnocentric morality

 

ANSWER:   a
RATIONALE:   Preconventional morality, the most basic level, is childlike. It is calculating, self-centered, and even selfish, based on what will be immediately punished or rewarded. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Apply
BUSPROG: Reflective Thinking
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: KFCUJSTT2L4GGUARV644
QUESTION ID:   JFND-GO4G-G3BU-CC3I

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJA-8FOU-OCJZ-CA5D-1PTA-GYSS-GP5F-CRSS-ECTU-GOSU-EQJW-GASU-QC3O-GJTD-EATU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

27. Marketing professionals are most likely to perceive questionable practices as unethical when:

a. unethical practices are commonplace in the organization.
b. there is a short time gap between the action and the onset of negative consequences.
c. there is no possibility that the action will result in severe adverse consequences.
d. the action is very unlikely to affect many people in the organization.

 

ANSWER:   b
RATIONALE:   The shorter the length of time between the action and the onset of negative consequences, the more likely that marketers will perceive a problem as unethical. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Ethical Decision Making
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: MUHD159T07RWXJEQC749
QUESTION ID:   JFND-GO4G-G3BU-CC3W

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMG-CA4D-K3JA-CRHD-OQBA-GOSU-NC3O-8RSU-NA3T-GOSS-EAT3-GRSS-NP5B-8RHD-NQDN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

28. Observations of ethical misconduct are more likely to decrease when:

a. coworkers have a strong ethical culture.
b. a code of ethics is absent.
c. organizational rules are absent.
d. the top managers have little control over organizational culture.

 

ANSWER:   a
RATIONALE:   Research has found that a strong ethical culture among coworkers decreases observations of ethical misconduct. In companies with strong ethical cultures, eight percent of employees observed misconduct, compared with 31 percent in companies with weaker cultures. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Ethical Decision Making
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: PLSYMKAAL6HEPY9QP232
QUESTION ID:   JFND-GO4G-G3BU-CCNN

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJI-GH5U-CAT1-CF1S-KP3U-COSS-KPUD-CRSS-R3BU-GOSS-NPUF-GESS-K3TT-CPUG-R3TS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

29. Which of the following is true of postconventional morality?

a. At this level, people are concerned about how they see and judge themselves over the long run.
b. At this level, the focus is on societal norms and people worry about how society might see them.
c. At this level, people are more self-centered, calculating, and even selfish.
d. At this level, people typically focus only on adhering to legal standards.

 

ANSWER:   a
RATIONALE:   Postconventional morality represents the morality of the mature adult. At this level, people are less concerned about how others might see them and more concerned about how they see and judge themselves over the long run. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: PXSTC3MK4JLQQSLPX909
QUESTION ID:   JFND-GO4G-G3BU-CCNB

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMN-GW4U-QCT3-8RHU-Q3TI-GASU-NP3U-8YSU-Q3T1-GOSU-EA31-COSU-1PBS-GH4D-GCBO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

30. Which of the following statements is true about the stakeholder theory of corporate social responsibility?

a. It states that companies should only focus on increasing shareholder wealth.
b. It states that social responsibility is best carried out by government agencies.
c. It states that a company owes a duty to be a good citizen in its community.
d. It states that employees and not the top management should be involved in corporate social responsibility.

 

ANSWER:   c
RATIONALE:   Stakeholder theory says that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation. The local community, through its government, grants the firm the right to build facilities. The firm is expected to be a good citizen by paying a fair wage, not polluting the environment, and so forth. See 3-4: Corporate Social Responsibility
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.04
TOPICS:   A-head: Corporate Social Responsibility
Bloom’s: Understand
BUSPROG: Ethics
Corporate Social Responsibility
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: QNSGZP74KLJJPNKCQ600
QUESTION ID:   JFND-GO4G-G3BU-CCBA

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMN-GC4D-E3BW-G3OU-C3UD-GCSU-YQJA-CESU-G3UN-GOSS-KPBW-GOSU-G3UR-CFTU-RQBA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

31. Which of the following opinions would a proponent of rule utilitarianism hold?

a. Ethical truths depend on the individuals and groups holding them.
b. Decisions must benefit the most people but through the fairest and most just means available.
c. Decisions should never be based on predictions of future.
d. Intuition and personal feelings should guide decision making in cases of dilemmas.

 

ANSWER:   b
RATIONALE:   A rule utilitarian seeks to benefit the most people but through the fairest and most just means available. Therefore, added benefits of rule utilitarianism are that it values justice and doing good at the same time. See 3-2: The Concept of Ethical Behavior
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.02
TOPICS:   A-head: The Concept of Ethical Behavior
Bloom’s: Understand
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: QGFCCMWFHVZXQWSCA517
QUESTION ID:   JFND-GO4G-G3BU-CCB3

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJS-8FTG-RATW-8BTG-RC31-GCSU-G3JT-CESS-KCBI-GOSU-O3UB-CASS-CA33-GOAS-NPUR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

32. Which of the following statements is true about the sustainability theory of social responsibility?

a. It states that corporations should only focus on increasing shareholder wealth.
b. It exclusively focuses on the corporations’ duty to protect the environment.
c. It states that focusing on the world’s social and responsible problems will help corporations outperform their peers.
d. It states that corporations should think about social responsibility only after they establish themselves and achieve profitability.

 

ANSWER:   c
RATIONALE:   The newest theory in social responsibility is called sustainability. This refers to the idea that socially responsible companies will outperform their peers by focusing on the world’s social and environmental problems and viewing them as opportunities to build profits and help the world at the same time. See 3-5: Arguments For and Against Social Responsibility
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.05
TOPICS:   A-head: Arguments For and Against Social Responsibility
Bloom’s: Understand
BUSPROG: Ethics
Sustainability
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: RSDJZSRZSGJLRPLDU394
QUESTION ID:   JFND-GO4G-G3BU-CCNG

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMG-8R5D-1CTU-8Y5S-EA5G-CESU-YPUN-CRSU-RC5R-GOSU-KC3O-GCSS-EPTU-CPTU-KPJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

33. Code of ethics:

a. should not include guidelines for day-to-day activities.
b. should exclusively include laws and regulations set by government agencies.
c. should not be too detailed.
d. should not be designed to guide decision making.

 

ANSWER:   c
RATIONALE:   Codes that are too detailed encourage employees to substitute rules for judgment. For instance, if employees are involved in questionable behavior, they may use the absence of a written rule as a reason to continue behaving that way, even though their conscience may be telling them to stop. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Codes of Conduct
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: SLCPAV77PY7AD8YR0639
QUESTION ID:   JFND-GO4G-G3BU-CCNF

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJA-GWHS-NPBU-CO4G-NAJS-GRSU-G3MG-CRSS-NQBW-GOSS-EPMF-CESS-K3MG-8RAU-KAUN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

34. Which of the following is true of conventional morality?

a. It is the most basic level of ethical development.
b. It is the most advanced level of ethical development.
c. It is predominantly characterized by egocentrism.
d. It involves an emphasis on the expectations of society.

 

ANSWER:   d
RATIONALE:   Conventional morality moves from an egocentric viewpoint toward the expectations of society. Loyalty and obedience to the organization (or society) become paramount. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: UQRQMMHF35T76HJBP802
QUESTION ID:   JFND-GO4G-G3BU-CCNR

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJ1-GAHD-GPMB-8RAU-ECBO-CASS-RP5B-8YSS-RCJ3-GOSS-E3B1-GWSS-E3DF-GE3D-1QMD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

35. Which of the following statements is true about code of ethics?

a. It is most effective when it is too detailed.
b. It can be an effective internal control of behavior.
c. It is typically drafted by government agencies.
d. It is created only for top managers of an organization.

 

ANSWER:   b
RATIONALE:   Creating ethics guidelines has several advantages. A code of ethics can be an effective internal control of behavior, which is more desirable than external controls such as government regulation. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Codes of Conduct
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: VREYWJPQ55KCNJ47A320
QUESTION ID:   JFND-GO4G-G3BU-CCND

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMF-8RAU-G3TT-CPTS-NAJ3-8YSS-KP5N-CRSS-CPMD-GOSU-N3TT-CRSU-QPUG-CO4G-CPTU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

36. Which of the following opinions is a proponent of corporate social responsibility most likely to hold?

a. The primary responsibility of social welfare rests with governments and not business firms.
b. The free market, not companies, should decide what is best for the world.
c. Businesses have resources, so businesses should be given the chance to solve social problems.
d. Businesses never perpetrate social problems.

 

ANSWER:   c
RATIONALE:   Corporate social responsibility has an increasing number of supporters based on several compelling factors. Some societal problems, such as pollution and poverty-level wages, have been brought about by corporations’ actions; it is the responsibility of business to right these wrongs. Businesses also have the resources, so businesses should be given the chance to solve social problems. See 3-5: Arguments For and Against Social Responsibility
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.05
TOPICS:   A-head: Arguments For and Against Social Responsibility
Bloom’s: Understand
BUSPROG: Ethics
Corporate Social Responsibility
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: WNRNBCDFPYTJ1SP1K493
QUESTION ID:   JFND-GO4G-G3BU-CCBU

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJI-GE4S-CAJI-GIOS-EC3W-CESU-KAJS-CESS-RCBA-GOSS-CPJW-CASU-YAJO-CC3D-G3JW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

37. Which of the statements is true in the context of preconventional morality?

a. At this level, people focus on the long-term results of their actions.
b. At this level, people tend to have an egocentric orientation.
c. At this level, people tend to focus on adhering to social norms and laws.
d. At this level, people tend judge themselves and their actions.

 

ANSWER:   b
RATIONALE:   Preconventional morality, the most basic level, is childlike. It is calculating, self-centered, and even selfish, based on what will be immediately punished or rewarded. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: WWHJTJW96K3T477ZW579
QUESTION ID:   JFND-GO4G-G3BU-CCB1

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMD-GY5U-QCTA-GWAS-GAUD-CRSS-EPB3-CESS-CQMR-GOSS-CCT3-GRSU-YA3S-GJTD-QPUR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

38. In order to combat U.S. corporations’ use of illegal payments and bribes in international business dealings, Congress enacted:

a. the Future Corporation Protection Act.
b. the Foreign Corrupt Practices Act.
c. the Foreign Trade Act.
d. the International Treaty Clause.

 

ANSWER:   b
RATIONALE:   The Foreign Corrupt Practices Act (FCPA), was enacted because Congress was concerned about U.S. corporations’ use of illegal payments and bribes in international business dealings. This act prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Cultural Differences
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: YBCCMT1RHQACR7728447
QUESTION ID:   JFND-GO4G-G3BU-CCBT

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJO-CA3G-N3JT-GRAS-CP3S-CASU-RA3Z-CESS-GP5B-GOSU-EPJI-GRSU-K3UD-CC3U-YAJ3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

39. Who among the following is most likely to recognize actions as unethical?

a. Rebecca has noticed that most of her colleagues often use office supply for personal use.
b. Jason has noticed that all his managers agree that it is okay to plagiarize to a small extent.
c. Sarah’s organization does not provide any guidelines on ethical behavior.
d. David has noticed for the first time a colleague misrepresenting data in a report.

 

ANSWER:   d
RATIONALE:   David is most likely to see his colleague’s action as unethical. Marketing professionals who perceive fewer ethical problems in their organizations tend to disapprove more strongly of “unethical” or questionable practices than those who perceive more ethical problems. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Apply
BUSPROG: Reflective Thinking
Ethical Decision Making
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: ZDWU9B4DAUL87VYZF337
QUESTION ID:   JFND-GO4G-G3BU-CCBO

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJO-CJOS-KP3Z-CCAS-R3MF-8RSU-KPBO-8YSS-GQBI-GOSU-RPUG-GRSU-NCJU-GITS-CCMF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

40. Which of the following statements is true about morals?

a. They are universal and seldom vary.
b. They are independent of factors such as culture and religion.
c. They may reflect the laws and regulations that affect social and economic behavior.
d. They set absolute standards for good and bad that are enforced by the law.

 

ANSWER:   c
RATIONALE:   Moral standards may also reflect the laws and regulations that affect social and economic behavior. Thus, morals can be considered a foundation of ethical behavior. See 3-3: Ethical Behavior in Business
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Ethical behavior
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: ZKRDJTXRP0C0FZPR0572
QUESTION ID:   JFND-GO4G-G3BU-CCBZ

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMD-C3OS-GC3S-CTOU-YP3T-CWSU-1A5N-CESU-13TS-GOSU-NQJ3-CCSS-G3UB-GR4G-GCBW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

41. Which of the following is a disadvantage of cause-related marketing?

a. It does not increase the sale of products.
b. It can lead to customer fatigue.
c. It results in immediate losses for the company.
d. It requires corporations to use anti-competitive measures.

 

ANSWER:   b
RATIONALE:   Cause-related marketing creates good public relations for the firm and will often stimulate sales of the brand. Nevertheless, the huge growth of cause-related marketing can lead to consumer cause fatigue. Researchers have found that businesses need to guard against being perceived as exploiting a cause simply to sell more of a product. See 3-6: Cause-Related Marketing
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.06
TOPICS:   A-head: Cause-Related Marketing
Bloom’s: Understand
BUSPROG: Ethics
Cause-Related Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: ZTSNDQAPRUYTFKD0L076
QUESTION ID:   JFND-GO4G-G3BU-CCBS

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJO-GB1D-CCJI-GW4D-13JS-GYSS-NC5B-CESU-YPB3-GOSS-G3TS-GHSS-KC3A-GY3S-C3UB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

42. __________is a business’s concern for the long-range welfare of both the company and its relationships to the society within which it operates.

ANSWER:   Corporate social responsibility
RATIONALE:   Corporate social responsibility (CSR) is a business’s concern for society’s welfare. This concern is demonstrated by managers who consider both the long-range best interests of the company and the company’s relationship to the society within which it operates. See 3-4: Corporate Social Responsibility
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.04
TOPICS:   A-head: Corporate Social Responsibility
Bloom’s: Remember
BUSPROG: Ethics
Corporate Social Responsibility
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: HTLBAQLMCKGHXNXD5677
QUESTION ID:   JFND-GO4G-G3BU-CCBI

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMG-CITU-Q3DG-GO3U-NA5R-GCSU-Y3B1-CESS-RQB3-GOSS-GAJ3-GCSU-GA5F-GAHD-KP5N-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

43. In the context of determinants of civil society,__________involves the voluntary acceptance of standards established by nongovernmental entities.

ANSWER:   self-regulation
RATIONALE:   Self-regulation involves the voluntary acceptance of standards established by nongovernmental entities, such as the American Association of Advertising Agencies (AAAA) or the National Association of Manufacturers. See 3-1: Determinants of a Civil Society
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.01
TOPICS:   A-head: Determinants of a Civil Society
Bloom’s: Remember
Business Ethics
BUSPROG: Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: RTAL929RKPXQ28NW4372
QUESTION ID:   JFND-GO4G-G3BU-CCBW

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJ1-G3OS-RAJS-CIOU-Q3MN-GCSS-G3UF-8YSS-ECTU-GOSU-CCTZ-GWSS-CC3U-CO5G-RC5F-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

44. Delta Inc. is a large organization that believes in serving the community it operates in. The organization conducts several campaigns about health awareness and also provides donations to nonprofit organizations working on such causes. Delta is illustrating__________.

ANSWER:   corporate social responsibility
RATIONALE:   This scenario illustrates corporate social responsibility (CSR). CSR is a business’s concern for society’s welfare. This concern is demonstrated by managers who consider both the long-range best interests of the company and the company’s relationship to the society within which it operates. See 3-4: Corporate Social Responsibility
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.04
TOPICS:   A-head: Corporate Social Responsibility
Bloom’s: Apply
BUSPROG: Reflective Thinking
Corporate Social Responsibility
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: SLCX1ELH4K0Q1J0C2931
QUESTION ID:   JFND-GO4G-G3BU-CCKN

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJS-CR4G-ECTS-8R4G-EAJS-GWSS-CAUB-CESU-RQJW-GOSU-RA3U-GYSU-NP5B-GY4S-KAMR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

45. Nutri Star Corp. is a large food manufacturing corporation which is more profitable that its competitors. The company uses only organically grown grains and fruits. Nutri Star also promotes organic farming and helps nonprofit agencies who focus food and nutrition causes. The company has now decided launch a campaign that aimed at promoting healthy eating habits among youth. Nutri Star is most likely to have adopted the concept of__________.

ANSWER:   sustainability
RATIONALE:   Nutri Star is most likely to have adopted the concept of sustainability. Sustainability refers to the idea that socially responsible companies will outperform their peers by focusing on the world’s social and environmental problems and viewing them as opportunities to build profits and help the world at the same time. See 3-5: Arguments For and Against Social Responsibility
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.05
TOPICS:   A-head: Arguments For and Against Social Responsibility
Bloom’s: Apply
BUSPROG: Reflective Thinking
Sustainability
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: STTJTJH7793W0LFRJ224
QUESTION ID:   JFND-GO4G-G3BU-CCKB

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJ3-GE4D-EPTU-8FTD-E3TU-GYSS-G3BO-8YSU-OP31-GOSU-OP5G-8YSS-KPJT-GCAS-RCUN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

46. Differentiate between act and rule utilitarianism.

ANSWER:   There are two types of utilitarianism: act utilitarianism and rule utilitarianism. Act utilitarianism adheres exactly to the definition of utilitarianism as just described. In act utilitarianism, a person performs the acts that benefit the most people, regardless of personal feelings or societal constraints such as laws. Rule utilitarianism, however, takes into account the law and is concerned with fairness. A rule utilitarian seeks to benefit the most people but through the fairest and most just means available.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.02
TOPICS:   A-head: The Concept of Ethical Behavior
Bloom’s: Understand
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: LVQPF9D89Q03LH43T785
QUESTION ID:   JFND-GO4G-G3BU-CCJ3

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJA-GC4S-RA3A-GEHD-KCB3-GOSU-YCJW-8RSU-Q3MN-GOSS-N3DN-8YSS-NQMD-GTUD-NPB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

47. Describe the pyramid of corporate social responsibility and include a description of its components.

ANSWER:   The pyramid of corporate social responsibility portrays four kinds of responsibility: economic, legal, ethical, and philanthropic. Economic performance is the foundation for the structure, because if the company does not make a profit, then the other three responsibilities are moot. While maintaining a profit, business is expected to obey the law, do what is ethically right, and be a good corporate citizen. (1) Philanthropic responsibilities are to be a good corporate citizen, contribute resources to the community, and improve the quality of life.(2) Ethical responsibilities are to be ethical; to do what is right, just, and fair; and to avoid harm.(3) Legal responsibilities are to obey the law, which is society’s codification of right and wrong, and play by the rules of the game.(4) Economic responsibilities are to be profitable; because profit is the foundation on which all other responsibilities rest.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.04
TOPICS:   A-head: Corporate Social Responsibility
Bloom’s: Understand
BUSPROG: Ethics
Corporate Social Responsibility
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: QVVJK3NMZ9C367BFQ782
QUESTION ID:   JFND-GO4G-G3BU-CCJA

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJ3-GFUD-E3JT-CO4D-YPJA-CWSU-NC3S-8RSU-YQJZ-GOSU-EPJA-GRSS-KCTT-GJUG-C3UR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

48. List and describe the three levels of ethical development.

ANSWER:   (1) Preconventional morality, the most basic level, is childlike. It is calculating, self- centered, and even selfish, based on what will be immediately punished or rewarded. (2) Conventional morality moves from an egocentric viewpoint toward the expectations of society. Loyalty and obedience to the organization (or society) becomes paramount. (3) Postconventional morality represents the morality of a mature adult. At this level, people are less concerned about how others might see them and more concerned about how they see and judge themselves over the long run.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: TUTCVGFZBQYDZ0KMH058
QUESTION ID:   JFND-GO4G-G3BU-CCKG

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJS-CE3S-NAJS-CE5U-NQDN-GOSU-1CJS-CRSS-C3J1-GOSS-CA3W-CCSU-YAUD-8BTD-CAMD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

49. Explain what is green marketing and its impact.

ANSWER:   Green marketing is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment.30 According to NASA, aver-age global temperatures have risen by 0.53oC since 1975, largely because of industrial pollution and other human activities. The United Nations Intergovernmental Panel on Climate Change predicts that an increase of 3.5oC could drive 40 to 70 percent of the world’s species into extinction. For these—and many other—reasons, environmentalism has become a pressing concern for many businesses and consumers alike.Seventy-three percent of U.S. consumers have purchased a product made from organic materials in the past 12 months. Categories that have seen notable increases in organic buying include food, household cleaning supplies, apparel, and pet food and supplies. Additionally, 93 percent of Americans say they have done something to conserve energy in their households in the past year and 77 percent say they have done something to save household water.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.05
TOPICS:   A-head: Arguments For and Against Social Responsibility
Bloom’s: Understand
BUSPROG: Ethics
Green Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: VSEHT28Y350PFQH59615
QUESTION ID:   JFND-GO4G-G3BU-CCKF

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMB-CA3D-GP3T-CEHS-EPTI-GRSU-YPUG-CRSS-RQJT-GOSU-CA3O-CRSU-C3BO-CO3U-CC5D-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

50. A recent study of marketing professionals found that their ethical judgments were influenced by several factors. List four of these factors. How do these factors contribute to the ethical environment of a marketing organization?

ANSWER:   Ethical judgments were influenced by several factors, and students can list any four:(1) The extent of ethical problems within the organization: The healthier the ethical environment, the more likely it is that marketers will take a strong stand against questionable practices.(2) Top management actions on ethics: Top management can have a profound influence on the ethical behavior of marketing professionals by performing actions that encourage ethical behavior or discourage unethical behavior. Setting an example communicates an ethical philosophy.(3) Potential magnitude of the consequences: The greater the harm, the more likely it is that marketers will recognize the action is unethical.(4) Social consensus: The greater the degree of agreement among other marketers that an action is harmful, the more likely it is that marketers will recognize it as unethical.(5) Probability of a harmful outcome: Higher probabilities of harmful outcomes mean that marketers are more likely to realize that the actions are unethical.(6) Length of time between the decision and the onset of consequences: The shorter the time frame between the action and the onset of negative consequence, the more likely it is that marketers will perceive a problem as unethical.(7) Number of people to be affected: The more people affected by a negative outcome, the more likely it is that marketers will recognize the decision as unethical.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.03 – 3-3
TOPICS:   A-head: Ethical Behavior in Business
Bloom’s: Understand
BUSPROG: Ethics
Ethical Decision Making
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   CGI: XPJD0ZNFAJB5NTV6B350
QUESTION ID:   JFND-GO4G-G3BU-CCKR

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJS-GYHG-C3BT-GWAU-QCDD-GESU-1AJU-CRSU-YPBT-GOSS-RC3U-GESU-Y3TW-G3TG-RPJI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

51. In the context of determinants of civil society, _____ involves the voluntary acceptance of standards established by nongovernmental entities.​

a. ​self-regulation
b. ​opportunism
c. ​self-dealing
d. ​socialization

 

ANSWER:   a
RATIONALE:   Self-regulation involves the voluntary acceptance of standards established by nongovernmental entities, such as the American Association of Advertising Agencies (AAAA) or the National Association of Manufacturers. See 3-1: Determinants of a Civil Society
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.01
TOPICS:   A-head: Determinants of a Civil Society
Bloom’s: Remember
BUSPROG: Ethics
Business Ethics
DATE CREATED:   5/25/2015 11:54 PM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   RTAL929RKPXQ28NW4372
QUESTION ID:   JFND-GO4G-GR3W-ETNR

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJO-CO3G-NP3Z-CRHG-G3JZ-GRSU-1A33-CESU-NP3I-GOSS-RPUR-GESU-CQBZ-GPTG-KPJU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

52. _____ is a business’s concern for the long-range welfare of both the company and its relationships to the society within which it operates.​

a. ​Deregulation
b. ​Social loafing
c. ​Corporate self-dealing
d. ​Corporate social responsibility

 

ANSWER:   d
RATIONALE:   Corporate social responsibility (CSR) is a business’s concern for society’s welfare. This concern is demonstrated by managers who consider both the long-range best interests of the company and the company’s relationship to the society within which it operates. See 3-4: Corporate Social Responsibility
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.04
TOPICS:   A-head: Corporate Social Responsibility
Bloom’s: Remember
BUSPROG: Ethics
Corporate Social Responsibility
DATE CREATED:   5/26/2015 12:01 AM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   HTLBAQLMCKGHXNXD5677
QUESTION ID:   JFND-GO4G-GR3W-EC1G

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJZ-CFTS-C3DN-CO5S-KPBU-CESS-NP5N-CESS-EQBI-GOSS-R3DN-CCSU-E3TZ-CFOU-GPMF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

53. Delta Inc. is a large organization that believes in serving the community it operates in. The organization conducts several campaigns about health awareness and also provides donations to nonprofit organizations working on such causes. Delta is illustrating _____.​

a. ​corporate social responsibility
b. ​divestment
c. social loafing​
d. corporate self-dealing​

 

ANSWER:   a
RATIONALE:   This scenario illustrates corporate social responsibility (CSR). CSR is a business’s concern for society’s welfare. This concern is demonstrated by managers who consider both the long-range best interests of the company and the company’s relationship to the society within which it operates. See 3-4: Corporate Social Responsibility
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.04
TOPICS:   A-head: Corporate Social Responsibility
Bloom’s: Apply
BUSPROG: Reflective Thinking
Corporate Social Responsibility
DATE CREATED:   5/26/2015 12:07 AM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   SLCX1ELH4K0Q1J0C2931
QUESTION ID:   JFND-GO4G-GR3W-EC4G

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMMN-GIOU-YCJU-GPUG-G3BZ-CESS-CCBO-8RSS-KPBZ-GOSS-NQMN-8YSU-1CJS-GEAS-GPMG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

54. Nutri Star Corp. is a large food manufacturing corporation which is more profitable that its competitors. The company uses only organically grown grains and fruits. Nutri Star also promotes organic farming and helps nonprofit agencies who focus food and nutrition causes. The company has now decided launch a campaign that aimed at promoting healthy eating habits among youth. Nutri Star is most likely to have adopted the concept of _____.​

a. ​divestment
b. ​consumerism
c. ​opportunism
d. ​sustainability

 

ANSWER:   d
RATIONALE:   Nutri Star is most likely to have adopted the concept of sustainability. Sustainability refers to the idea that socially responsible companies will outperform their peers by focusing on the world’s social and environmental problems and viewing them as opportunities to build profits and help the world at the same time. See 3-5: Arguments For and Against Social Responsibility
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.03.05
TOPICS:   A-head: Arguments For and Against Social Responsibility
Bloom’s: Apply
BUSPROG: Reflective Thinking
Sustainability
DATE CREATED:   5/26/2015 12:10 AM
DATE MODIFIED:   5/26/2015 12:14 AM
CUSTOM ID:   STTJTJH7793W0LFRJ224
QUESTION ID:   JFND-GO4G-GR3W-EC3S

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-CA4U-CCTA-CRAD-1A3A-GF1N-4QJI-COH1-4P3O-GO4N-4CTO-CEAN-4C5R-CW3D-YCBS-GPDI-GWN8-EPRW-EMJ1-COAD-QC5N-CIUD-K3JA-GWSS-G3BI-CRSU-NCJA-GOSS-CATO-GASU-Y3BT-CPTU-G3MB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

1. The surge in global trade in recent years has added to strains and charges for all forms of transport.

a. True
b. False

 

ANSWER:   True
RATIONALE:   The surge in global trade in recent years has added to strains and charges for all forms of transport. As a result, some manufacturers are developing costly buffer stocks, while others are shifting to more expensive but more reliable modes of transport. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Distribution
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: AVTA62QPPXCS4ERH8362
QUESTION ID:   JFND-GO4G-G3BU-QOJO

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMD-CEHU-GPJO-C3UD-RCT1-GYSU-Q3TU-CESU-Q3TT-GOSU-E3TZ-8YSU-RPTI-CA3S-NAJZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

2. The solving of promotional and product problems guarantees global marketing success.

a. True
b. False

 

ANSWER:   False
RATIONALE:   The solving of promotional and product problems does not guarantee global marketing success. The product must still get adequate distribution. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Distribution
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: EBDFQALR5PUPAF382649
QUESTION ID:   JFND-GO4G-G3BU-QOJZ

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJW-G71U-NP3T-CJTU-1PTW-CRSU-QQJI-CRSU-G3BS-GOSU-N3J1-CRSU-CP5D-8RHD-CC3A-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

3. Franchising is a form of exporting.

a. True
b. False

 

ANSWER:   False
RATIONALE:   Franchising is a form of licensing that has grown rapidly in recent years. More than half of the international franchises are for fast-food restaurants and business services. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Remember
BUSPROG: Analytic
International Franchising
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: FXLLD4Q0Z9DBE34MR026
QUESTION ID:   JFND-GO4G-G3BU-QOJS

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMR-GH3U-CQDR-GIOU-G3UB-CASU-QCTA-CESS-CP5R-GOSS-K3MR-GHSU-KPB1-GA5D-E3T3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

4. Global marketers use social media not only for understanding customers but also to build their brands as they expand internationally.

a. True
b. False

 

ANSWER:   True
RATIONALE:   In many respects, going global is easier than it has ever been before. Global marketers use social media not only for understanding customers but also to build their brands as they expand internationally. See 5-6: The Impact of the Internet
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.06
TOPICS:   A-head: The Impact of the Internet
Bloom’s: Understand
BUSPROG: Analytic
Internet
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: GDBLNYCMWAJS9EUKQ056
QUESTION ID:   JFND-GO4G-G3BU-QOJI

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMN-GWAD-13MN-GA3D-CCDD-GASU-CQBA-8YSS-RPB1-GOSS-EPBW-GOSU-G3UD-GFUD-E3UF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

5. Firms seeking to enter into foreign trade can succeed even if they do not adhere to the principles of the marketing mix.

a. True
b. False

 

ANSWER:   False
RATIONALE:   To succeed, firms seeking to enter into foreign trade must still adhere to the principles of the marketing mix. The marketing mix consists of the four Ps of global marketing strategy: product, place, promotion, and price. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Marketing Mix
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: KSCH0UGC6TCA3Z7WR856
QUESTION ID:   JFND-GO4G-G3BU-QOJW

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJS-8YHD-N3UR-GCAD-YA5D-COSU-CP5G-8YSU-GPDR-GOSU-EAJ1-8RSS-GC3A-GR4U-EAJO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

6. Opening an e-commerce site on the Internet makes it difficult for a company to gain recognition in the international marketplace.

a. True
b. False

 

ANSWER:   False
RATIONALE:   In many respects, going global is easier than it has ever been before. Opening an e-commerce site on the Internet immediately puts a company in the international marketplace. See 5-6: The Impact of the Internet
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.06
TOPICS:   A-head: The Impact of the Internet
Bloom’s: Understand
BUSPROG: Analytic
Internet
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: QTXJDRX5BY9CB4MM1420
QUESTION ID:   JFND-GO4G-G3BU-QO1N

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJT-CAHU-QCDD-CJ1D-RCTO-CASU-KCJI-CRSS-N3TS-GOSU-EQMD-GWSU-RQJ3-GH5D-1QJO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

7. In the context of direct foreign investment, direct investors have the lowest potential reward and the lowest potential risk.

a. True
b. False

 

ANSWER:   False
RATIONALE:   Active ownership of a foreign company or of overseas manufacturing or marketing facilities is called direct foreign investment. Direct investors have either a controlling interest or a large minority interest in the firm. Thus, they have the greatest potential reward and the greatest potential risk. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Understand
BUSPROG: Analytic
Foreign Direct Investment
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: SHTRN7P8GCSZ7RWLT793
QUESTION ID:   JFND-GO4G-G3BU-QO1B

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJZ-8YHU-GAMD-GO5S-KCJU-CRSU-N3B3-8RSU-1CJ3-GOSS-N3TS-GASU-RPBA-GC3G-EAMN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

8. Gross national product (GNP) is the total market value of all final goods and services produced in a country for a given time period.

a. True
b. False

 

ANSWER:   False
RATIONALE:   Gross domestic product (GDP) is the total market value of all final goods and services produced in a country for a given time period. The term final refers to final products that are sold, not to intermediary products used in the assembly of a final product. See 5-1: Rewards of Global Marketing and the Shifting Global Business Landscape
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Remember
BUSPROG: Analytic
International Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: SXYDVM8JK1PCZE258322
QUESTION ID:   JFND-GO4G-G3BU-QOT3

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMF-8BUD-EPJZ-CRAD-C3UF-CRSU-YA5G-CRSU-RPJ1-GOSS-KA31-CWSU-GAJU-CFTS-N3TW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

9. The final step in creating a marketing mix is developing a thorough understanding of the global target market.

a. True
b. False

 

ANSWER:   False
RATIONALE:   To succeed, firms seeking to enter into foreign trade must still adhere to the principles of the marketing mix. The marketing mix consists of the four Ps of global marketing strategy: product, place, promotion, and price. The first step in creating a marketing mix is developing a thorough understanding of the global target market. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Understand
BUSPROG: Analytic
Marketing Mix
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: TRZJUBXL2B79YWXVL312
QUESTION ID:   JFND-GO4G-G3BU-QOTA

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMF-8Y4G-GQBS-CRHS-G3UB-8YSS-RPBZ-CESS-KP5R-GOSU-1CJI-8RSU-RQJT-CJUD-YATA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

10. A blog is a publicly accessible Web page that functions as an interactive journal, where readers can post comments on the author’s entries.

a. True
b. False

 

ANSWER:   True
RATIONALE:   A blog is a publicly accessible Web page that functions as an interactive journal, where readers can post comments on the author’s entries. It is one of the social media sites from where companies can gather user-generated information to better understand their customers. See 5-6: The Impact of the Internet
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.06
TOPICS:   A-head: The Impact of the Internet
Bloom’s: Remember
BUSPROG: Analytic
Social Media Strategy
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: XFDCEDBQPJG4KYBFC496
QUESTION ID:   JFND-GO4G-G3BU-QO1G

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMG-CW4G-KP3O-GW3G-KA31-GWSU-KP5F-CRSS-GCDR-GOSU-E3JU-GRSS-R3T1-CW4D-N3MF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

11. Cost savings is considered a key driver for outsourcing by most companies.

a. True
b. False

 

ANSWER:   True
RATIONALE:   Many executives have said that outsourcing leads to corporate growth, efficiency, productivity, and revenue growth. Most companies see cost savings as a key driver for outsourcing. See 5-1: Rewards of Global Marketing and the Shifting Global Business Landscape
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Understand
BUSPROG: Analytic
International Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: XJCK2YPNEZ8LS66B2773
QUESTION ID:   JFND-GO4G-G3BU-QO1F

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMN-GO3S-GPBI-8Y4G-EA5F-8YSS-C3BI-8YSU-OAMB-GOSU-ECMR-CWSS-GPJO-GW5S-RPDR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

12. Because Facebook, YouTube, and other social media are popular around the world, firms both large and small have embraced social media marketing.

a. True
b. False

 

ANSWER:   True
RATIONALE:   Global marketers use social media not only for understanding customers but also to build their brands as they expand internationally. Because Facebook, YouTube, and other social media are popular around the world, firms both large and small have embraced social media marketing. See 5-6: The Impact of the Internet
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.06
TOPICS:   A-head: The Impact of the Internet
Bloom’s: Remember
BUSPROG: Analytic
Internet
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: YBWBP8JXSB6HDM2N2891
QUESTION ID:   JFND-GO4G-G3BU-QO1R

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMB-GO3D-R3TO-8R3D-YQBW-COSS-RCMG-8RSU-ECTS-GOSS-GQMG-CESU-1CTI-GAHU-NCB3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

13. Caused by shifting birthrate trends, a demographic dividend often leads to rising labor costs.

a. True
b. False

 

ANSWER:   False
RATIONALE:   Caused by shifting birthrate trends, a demographic dividend results in a temporary bulge in the number of working-age people. This often leads to falling labor costs, a healthier and more educated population, and the entry of millions of women into the workforce. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Understand
BUSPROG: Analytic
Demographics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: YJYRQ3LGZ8B0SBV4R586
QUESTION ID:   JFND-GO4G-G3BU-QO1D

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJA-GWHD-RC31-GHAD-OA5G-CRSU-EQMN-8YSU-CQB1-GOSS-C3MN-GASU-CA5D-CR3D-YPUN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

14. In general, average family incomes are higher in the more developed countries than in the less developed countries.

a. True
b. False

 

ANSWER:   True
RATIONALE:   A major factor in the external environment facing the global marketer is the level of economic development in the countries where it operates. Average family incomes are higher in the more developed countries than in the less developed countries. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Understand
BUSPROG: Analytic
Economic Forces
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: YNLLKRJSU0LX3G054652
QUESTION ID:   JFND-GO4G-G3BU-QOTU

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMF-8Y4U-CAJZ-GY4D-NCTU-CASU-YCJS-CESU-NPDD-GOSU-K3TU-GESU-GC5N-CW5U-OCMF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

15. Yuncen Foods, a company that manufactures frozen food, gets over half of its revenue from international sales. It has been consistently ranked the best frozen foods manufacturer in the world. It has catered its products to suit people in different countries according to their tastes and preferences. This shows that Yuncen Foods:

a. needs to increase its domestic sales.
b. has used inshoring to increase its profits and market share.
c. should invest in another product line to compete effectively in the market.
d. has a global vision that is paying off well.

 

ANSWER:   d
RATIONALE:   A global vision means recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets. In this scenario, Yuncen Foods caters its products to suit people in different countries according to their tastes and preferences, making it the best frozen foods manufacturer in the world. These measures characterize a company with a strong global vision. See 5-1: Rewards of Global Marketing and the Shifting Global Business Landscape
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Apply
BUSPROG: Reflective Thinking
International Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: BJLJJ9RN9L9BW62TQ878
QUESTION ID:   JFND-GO4G-G3BU-QOT1

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMD-CJ1U-EPMD-GYHS-CPTS-CCSU-GCUG-CRSU-OPBA-GOSS-E3TT-GWSU-CAJW-GF1D-YCBU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

16. Joint ventures are successful, however they can be risky. This is because joint ventures:

a. consist of partners who sometimes cannot agree on management policies.
b. depend heavily on contract manufacturing.
c. are void of government interference.
d. are very different from licensing agreements.

 

ANSWER:   a
RATIONALE:   In an international joint venture, the domestic firm buys part of a foreign company or joins with a foreign company to create a new entity. While joint ventures can be successful, they can also be very risky. Many fail, and others fall victim to a takeover in which one partner buys out the other. Sometimes joint ventures partners simply cannot agree on management strategies and policies. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Analyze
BUSPROG: Analytic
Joint Ventures
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: FZJSX5G4MUVPGNH1N720
QUESTION ID:   JFND-GO4G-G3BU-QOTT

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJA-GO4G-NA3A-GEAD-NP33-GCSU-YQDF-CESU-YPT3-GOSS-CC3Z-CRSU-EPBW-8F1D-1PB3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

17. Which of the following stages in the development of multinationals is characterized by multinational firms setting up foreign subsidiaries to handle sales in a country?

a. Stage one
b. Stage two
c. Stage three
d. Stage four

 

ANSWER:   b
RATIONALE:   Multinational corporations often develop their global business in stages. In the first stage, companies operate in one country and sell into others. Stage two is characterized by a multinational company setting up foreign subsidiaries to handle sales in one country. See 5-2: Multinational Firms
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.02
TOPICS:   A-head: Multinational Firms
Bloom’s: Remember
BUSPROG: Analytic
Multinational Corporations
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: GZJMG7K0P8QPP0BHM949
QUESTION ID:   JFND-GO4G-G3BU-QOTO

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJI-8FUD-EC3T-CW4U-Q3BZ-CRSU-RPUG-CESS-RPDF-GOSS-GCJW-CWSU-R3BT-GCHU-CQBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

18. A U.S. licensor will be most successful in maintaining effective control over licensees and preventing them from voiding its contract by:

a. using lawyers from both countries to write the licensing agreement.
b. insisting that all licensees have a published code of ethics.
c. not allowing the licensee to pay a fee for the use of proprietary knowledge.
d. locally registering patents and trademarks to the U.S. firm and not to the licensee.

 

ANSWER:   d
RATIONALE:   Licensing may create a new competitor in the long run, if the licensee decides to void the license agreement. Two common ways of maintaining effective control over licensees are shipping one or more critical components from the United States and locally registering patents and trademarks to the U.S. firm, not to the licensee. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Understand
BUSPROG: Analytic
International Licensing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: HMUBFJHMWPAXSLEZL645
QUESTION ID:   JFND-GO4G-G3BU-QOTZ

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJU-CAAS-R3DN-GIOS-KATW-COSU-KATA-8RSS-RPB3-GOSS-GPUR-COSU-GCTT-CPOU-OPBZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

19. Sinesia is a country that is famous for its vast deposits of cobalt, a material that is used to make high-speed and high-temperature cutting tools and dyes. A company that wants to manufacture tools for shaping steel would be most attracted to Sinesia’s:

a. political structure.
b. cultural aspects.
c. natural resources.
d. demographic makeup.

 

ANSWER:   c
RATIONALE:   A company that wants to manufacture tools for shaping steel would be most attracted to Sinesia’s natural resources. The vast deposits of cobalt are Sinesia’s natural resources. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Apply
BUSPROG: Reflective Thinking
Natural Resources
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: HSSYVYP5JWA8LUZ8E434
QUESTION ID:   JFND-GO4G-G3BU-QOTS

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJW-GE5S-KAMB-CJOU-E3TI-GOSU-KQJU-CESU-CPMG-GOSU-EC5B-CESU-EP3O-COAD-1QDF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

20. Which of the following is a difference between product invention and product adaptation?

a. Product invention involves altering the promotional strategies for a product, while product adaptation does not involve altering such strategies.
b. Product invention takes the marketing mix into consideration, while product adaptation does not take it into consideration.
c. Product invention involves drastically changing an existing product, while product adaptation involves slightly altering a basic product.
d. Product invention applies only to products that are displayed in local markets, while product adaptation applies to products all around the world.

 

ANSWER:   c
RATIONALE:   In the context of global marketing, product invention can be taken to mean either creating a new product for a market or drastically changing an existing product. Product adaptation refers to slightly altering a basic product to meet local conditions. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Analyze
BUSPROG: Analytic
Marketing Mix
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: LUUX1DK9HLFHYD01V423
QUESTION ID:   JFND-GO4G-G3BU-QOTI

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJA-GY4D-GP33-CW4G-KPJ3-GOSU-N3UB-8YSU-OCDF-GOSU-CPBS-CRSU-QC31-CE5G-RAMD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

21. Many people fear world trade because it:

a. closes the access to advanced technology for less developed countries.
b. slows down the rate at which people’s living standards increase.
c. causes some people to lose their jobs due to production shifts abroad.
d. empowers governments to abuse the freedom and property of their citizens.

 

ANSWER:   c
RATIONALE:   One of the negatives of world trade is that millions of people lose their jobs due to imports, production shifts abroad, or outsourcing of tech jobs. Employers often threaten to outsource jobs if workers do not accept pay cuts. See 5-1: Rewards of Global Marketing and the Shifting Global Business Landscape
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Understand
BUSPROG: Analytic
Globalization
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: MLZNPKP26CQMTZHHZ458
QUESTION ID:   JFND-GO4G-G3BU-QOTW

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJI-GHAG-RC33-GC5D-YPUD-GCSS-K3UD-CESS-R3TI-GOSU-CC3A-COSU-YQMR-8YHG-GPBT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

22. Which of the following is a similarity between export brokers and export agents?

a. Both act as hired purchasing agents for foreign customers operating in the exporter’s home market.
b. Both live in foreign countries and assist in international trade.
c. Both assume all risks associated with selling a manufacturer’s product in the international market.
d. Both allow manufacturers to retain title for products.

 

ANSWER:   d
RATIONALE:   Export brokers and export agents allow manufacturers to retain title and assume all risks for the products they manufacture. An export broker is an intermediary who plays the traditional broker’s role by bringing buyer and seller together. Export agents are foreign sales agents/distributors who live in the foreign country and perform the same functions as domestic manufacturers’ agents, helping with international financing, shipping, and so on. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Analyze
BUSPROG: Analytic
Exporting
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: NNLMVB0UXFKR05R68672
QUESTION ID:   JFND-GO4G-G3BU-QQNN

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJZ-GIOU-Y3UB-GE4U-GCTW-GHSU-EA5G-CRSU-YPBZ-GOSU-RQJU-CESS-NA3I-CA4G-CPUB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

23. Once marketing managers have determined a global product and promotion strategy, they can select the remainder of the marketing mix. However, entry into many developing nations presents special pricing problems because:

a. the rate of capital accumulation exceeds the rate of population growth.
b. there is always an expectation of countertrade by developing countries.
c. the demand for low quality products is very less compared to developed countries.
d. there is a lack of mass purchasing power.

 

ANSWER:   d
RATIONALE:   Once marketing managers have determined a global product and promotion strategy, they can select the remainder of the marketing mix. Because developing nations lack purchasing power, selling to them often poses special pricing problems. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Analyze
BUSPROG: Analytic
Pricing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: PNFBLW7H06FW81V4M603
QUESTION ID:   JFND-GO4G-G3BU-QQNB

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJU-CW5U-GCJU-GC5D-KC3S-8YSS-NPDD-8YSS-CPJU-GOSS-G3BI-GASU-EPBU-CI1S-KA3W-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

24. One of the factors in the external environment that has become more evident in the past decade is the:

a. decrease in the importance of language in foreign trade.
b. shortage of natural resources.
c. abundance of export brokers for major industries.
d. decrease in the working-age population of developing countries.

 

ANSWER:   b
RATIONALE:   A final factor in the external environment that has become more evident in the past decade is the shortage of natural resources. For example, petroleum shortages have created huge amounts of wealth for oil-producing countries such as Norway, Saudi Arabia, and the United Arab Emirates. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Remember
BUSPROG: Analytic
Natural Resources
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: RRRTLFUHC76TJN6MG379
QUESTION ID:   JFND-GO4G-G3BU-QQB3

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJI-GOAD-RCJA-CEHD-QQJI-GCSU-RQMN-CESU-NAUB-GOSS-NPMB-GRSU-1AUB-CAHG-CAJZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

25. Which of the following is true of globalization?

a. It expands economic freedom and increases the living standards of people.
b. It relies on strong government regulations to keep down prices.
c. It fails to offer access to advanced technology in less developed countries.
d. It makes it easier for governments to abuse the freedom and property of their citizens.

 

ANSWER:   a
RATIONALE:   Globalization expands economic freedom, spurs competition, and raises the productivity and living standards of people in countries that open themselves to the global marketplace. For less developed countries, globalization also offers access to foreign capital, global export markets, and advanced technology. See 5-1: Rewards of Global Marketing and the Shifting Global Business Landscape
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Understand
BUSPROG: Analytic
Globalization
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: SCRCV3F4QJVEZCM75355
QUESTION ID:   JFND-GO4G-G3BU-QQBA

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJI-CIOU-KQB3-8FTS-KCJZ-GYSU-YC3S-8RSU-CCTO-GOSS-CQDB-GHSU-1CUB-CEHD-YA5D-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

26. A company is said to be a direct foreign investor in another country if it:

a. outsources a part of its production to the country due to the availability of cheaper labor.
b. exports finished products to that country.
c. manufactures products for that country based on contract manufacturing.
d. acquires an active ownership of marketing facilities in that country.

 

ANSWER:   d
RATIONALE:   Active ownership of a foreign company or of overseas manufacturing or marketing facilities is called direct foreign investment. Direct investors have either a controlling interest or a large minority interest in the firm. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Understand
BUSPROG: Analytic
Foreign Direct Investment
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: UMXTAJXD8PY8T0Z1G261
QUESTION ID:   JFND-GO4G-G3BU-QQNG

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJO-CO3D-13MN-CPTG-KCMG-GESS-GPJU-CRSS-CPJI-GOSU-E3BI-GASU-K3BI-GOAG-CQDF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

27. Which of the following is true of franchising?

a. It is a form of contract manufacturing.
b. It has grown rapidly in recent years.
c. It is restricted to the market of fast-food restaurants.
d. It requires an export agent and an export broker to be successful.

 

ANSWER:   b
RATIONALE:   Franchising is a form of licensing that has grown rapidly in recent years. More than half of the international franchises are for fast-food restaurants and business services. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Understand
BUSPROG: Analytic
International Franchising
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: ZYHDZBK6LDF80NYYP151
QUESTION ID:   JFND-GO4G-G3BU-QQNF

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMB-CFUD-CPBT-8FOU-GAUB-CWSU-GCBW-CRSS-EQMB-GOSS-CCDD-COSS-GQJW-8YHD-RC31-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

28. Irving Inc., an apparel company, decides to expand operations to several countries around the world. However, it fails to take into account the various styles of clothing that are deemed acceptable in these countries. It sells the same clothes that it sells in its home country to the other countries. As a result, it suffers a major loss. In this scenario, Irving Inc. failed to be sensitive to the__________of the countries.

ANSWER:   cultural aspects
RATIONALE:   Irving Inc. fails to take into account the various styles of clothing that are deemed acceptable in various countries. By doing so, Irving Inc. failed to be sensitive to the cultural aspects of the countries. Culture underlies the family, the educational system, religion, and the social class system. A company that does not understand a country’s culture is doomed to failure in that country. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Apply
BUSPROG: Reflective Thinking
Culture
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: AKGQEUUMEQX5SHXBW876
QUESTION ID:   JFND-GO4G-G3BU-QQNR

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJ3-8B1D-CAJA-GHHG-CAJW-GOSU-QCJS-CRSU-CAT3-GOSU-N3B3-GOSS-K3BU-GAAD-KPTW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

29. __________is a fast-growing way to conduct global business in which all or part of the payment for goods or services is in the form of other goods and services.

ANSWER:   Countertrade
RATIONALE:   Global trade does not always involve cash. Countertrade is a fast-growing way to conduct global business. In countertrade, all or part of the payment for goods or services is in the form of other goods and services. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Remember
BUSPROG: Analytic
Marketing Mix
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: AMDLKTU2ER3BMNLEF197
QUESTION ID:   JFND-GO4G-G3BU-QQND

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJU-CP1G-RQDD-G31D-KA3A-GWSU-RA3O-8RSS-RP33-GOSS-ECJZ-GRSS-NAMD-GCAG-NCUB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

30. The primary reason large U.S. companies send U.S. jobs abroad is because labor costs are higher in the United States. Such companies are said to be engaging in__________.

ANSWER:   outsourcing
RATIONALE:   Outsourcing refers to sending U.S. jobs abroad. Many executives believe that outsourcing leads to corporate growth, efficiency, productivity, and revenue growth. Most companies see cost savings as a key driver in outsourcing. See 5-1: Rewards of Global Marketing and the Shifting Global Business Landscape
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Understand
BUSPROG: Analytic
International Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: AXQLW0SF9Y0JWDJHQ892
QUESTION ID:   JFND-GO4G-G3BU-QQBU

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJT-CW3D-GQJS-GB1G-C3JW-GCSU-1PTO-CESS-NA5G-GOSU-OQBZ-CCSU-NQB1-GR5U-QQBS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

31. A(n)__________is a limit on the amount of a specific product that can enter a country.

ANSWER:   quota
RATIONALE:   A quota is a limit on the amount of a specific product that can enter a country. Several U.S. companies have sought quotas as a means of protection from foreign competition. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Remember
BUSPROG: Analytic
Global Legal-Political Environment
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: AXXP5D4Y5QZGSCBRL582
QUESTION ID:   JFND-GO4G-G3BU-QQB1

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMG-GBTD-KPJ1-8Y5U-RPBT-GRSU-NAT3-CESS-RCTI-GOSS-GCT1-GHSS-N3BZ-G31D-CPUF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

32. D’Costas, an authentic Mexican restaurant, has many restaurants all over the world. The taste and authenticity of the food served is the same irrespective of the restaurant one visits. Based on this information, D’Costas follows the strategy of__________.

ANSWER:   global marketing standardization
RATIONALE:   D’Costas maintains the same taste and authenticity of food in all its restaurants. Therefore, it follows the strategy of global marketing standardization. Developing a single product for all markets and promoting it the same way all over the world is known as global marketing standardization. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Global Adaptation
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: AYXP7F287AT1MUSPG438
QUESTION ID:   JFND-GO4G-G3BU-QQBT

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJI-CO4G-RC3T-8R3D-GQMD-COSS-ECMG-8YSU-OC3I-GOSS-CCDR-GOSS-CP5F-CW3U-RCTW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

33. A company is most likely doomed to failure in a foreign country if it__________.

ANSWER:   does not understand the country’s culture
RATIONALE:   Central to any society is a common set of values shared by its citizens that determines what is socially acceptable and what is not. A company that does not understand a country’s culture is doomed to failure in that country. Cultural blunders lead to misunderstandings and often perceptions of rudeness and even incompetence. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Understand
BUSPROG: Analytic
Culture
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: CQVSSNGCCNCNYYGY7844
QUESTION ID:   JFND-GO4G-G3BU-QQBO

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJT-CIUG-EPJT-GR3G-ECBO-CCSU-YPDF-CESS-ECBI-GOSU-NPDF-GOSU-OAUF-8BTU-CCDN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

34. __________is the largest Latin American trade agreement and includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela.

ANSWER:   Mercosur
RATIONALE:   Mercosur is the largest Latin American trade agreement and includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela. A trade agreement is an agreement to stimulate international trade. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Remember
BUSPROG: Analytic
External Business Environment
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: DVHXKJEWYKXH62AET520
QUESTION ID:   JFND-GO4G-G3BU-QQBZ

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJU-8Y3S-RATU-C3TU-NQDF-CCSU-13DD-8YSS-KCUG-GOSU-EC3I-GWSU-QA5F-CAHS-CAT3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

35. Aztic Inc., a manufacturer of sports goods, plans to expand its operations to a new country. As part of this expansion, it determines whether the population of the country is primarily rural or urban. In this case, Aztic Inc. is assessing the__________of the country.

ANSWER:   demographic makeup
RATIONALE:   Aztic Inc. is assessing the country’s demographic makeup. Marketers need to know whether the population of a country is mostly urban or rural, because marketers may not have easy access to rural consumers. Another key demographic consideration is age. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Apply
BUSPROG: Reflective Thinking
Demographics
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: EDDHWEEWEBJRV9Z5Y771
QUESTION ID:   JFND-GO4G-G3BU-QQBS

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMB-CPTU-Y3BA-GJUD-RC33-CWSS-NPDG-8YSU-1ATO-GOSU-GAJA-GHSU-NAMG-COAU-YPMN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

36. In the context of global marketing, when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity, it is known as a__________.

ANSWER:   joint venture
RATIONALE:   In an international joint venture, the domestic firm buys part of a foreign company or joins with a foreign company to create a new entity. Joint ventures are somewhat similar to licensing agreements. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Remember
BUSPROG: Analyze
Joint Ventures
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: EVLHFUAQW7AWJMKLE460
QUESTION ID:   JFND-GO4G-G3BU-QQBI

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJI-GW4D-O3MB-GE5U-NCJS-GHSU-1A3W-CESU-N3BI-GOSS-NPTU-GHSU-ECT1-CW3S-NP3U-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

37. A(n)__________is an intermediary who brings a buyer and a seller together.

ANSWER:   export broker
RATIONALE:   An export broker is an intermediary who plays the traditional broker’s role by bringing buyer and seller together. The manufacturer still retains title and assumes all the risks. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Remember
BUSPROG: Analytic
Exporting
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: FPPQKFFWYJ71AUN12494
QUESTION ID:   JFND-GO4G-G3BU-QQBW

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMG-GITD-QAMN-GR4U-GCMD-GWSS-RP3A-8YSU-Y3UG-GOSU-KQBI-GYSS-R3JS-CW5U-O3BU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

38. Maria likes visiting different restaurants and trying out a variety of cuisines. She writes her experiences on a Web page, titled Maria’s Experiences, which can be read by people all around the world. She also reviews restaurants, and members of her Web page are entitled to post their comments and suggestions. Based on this information, Maria’s Experiences is an example of a(n)__________.

ANSWER:   blog
RATIONALE:   Maria’s Experiences is an example of a blog as it functions as a journal in which Maria writes her experiences with restaurants and allows members to read and leave their comments. A blog is a publicly accessible Web page that functions as an interactive journal, where readers can post comments on the author’s entries See 5-6: The Impact of the Internet
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
TOPICS:   A-head: The Impact of the Internet
Bloom’s: Apply
BUSPROG: Reflective Thinking
Social Media Strategy
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: HESDZ7YZMEJ9YK39R542
QUESTION ID:   JFND-GO4G-G3BU-QQKN

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJO-GAHS-NQBA-CPTG-G3DN-GASS-EATO-CESU-OPBA-GOSU-YP5N-GRSU-EPT3-GF1S-KCTU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

39. Melrow Inc., a U.S. firm, suffers heavy losses and lays off many of its employees. As a measure to reduce its manufacturing costs, it shifts its production units to another country where inexpensive labor is available. In this scenario, Melrow Inc. is engaged in__________.

ANSWER:   outsourcing
RATIONALE:   In this scenario, Melrow Inc. cuts costs by shifting its production units to another country because of the inexpensive labor available there. Therefore, Melrow Inc. is said to be engaged in outsourcing. Outsourcing refers to sending U.S. jobs abroad. See 5-1: Rewards of Global Marketing and the Shifting Global Business Landscape
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Apply
BUSPROG: Reflective Thinking
International Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: HQHZSC70J7U2KJ30P707
QUESTION ID:   JFND-GO4G-G3BU-QQKB

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJS-GHAU-OQJO-8RHG-GC5B-GCSS-CPJA-8RSU-EQBA-GOSS-E3TW-GYSU-OPJZ-8FUD-OCDD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

40. The__________is a trade agreement that has dramatically lowered trade barriers worldwide and also created the World Trade Organization.

ANSWER:   Uruguay Round
RATIONALE:   The Uruguay Round is a trade agreement that has dramatically lowered trade barriers worldwide and also created the World Trade Organization. It is the most ambitious global trade agreement ever negotiated. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Remember
BUSPROG: Analytic
External Business Environment
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: HYFR1569R4MSW486H791
QUESTION ID:   JFND-GO4G-G3BU-QQJ3

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJ1-8FTU-NPUR-COHG-GC5G-GWSU-Y3T3-8RSS-ECUD-GOSS-E3JO-GHSU-1PBI-GY3U-1P5F-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

41. __________are trade alliances in which several countries agree to work together to form a common trade area that enhances trade opportunities among those countries.

ANSWER:   Market groupings
RATIONALE:   Market groupings are trade alliances in which several countries agree to work together to form a common trade area that enhances trade opportunities among those countries. The best-known market grouping is the European Union (EU). See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Remember
BUSPROG: Analytic
Global Legal-Political Environment
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: LHWYWTT82CF84BJ3N457
QUESTION ID:   JFND-GO4G-G3BU-QQJA

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJW-GJ1S-RAJ1-GTUD-YCUD-GOSU-NPUR-CRSS-R3JI-GOSU-EA3T-GESS-RQB3-8FTU-NCBT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

42. Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency. This is the system of__________.

ANSWER:   floating exchange rates
RATIONALE:   Currency markets operate under a system of floating exchange rates, a system in which the prices of different currencies move up or down based on the demand for and supply of each currency. Global currency traders create the supply of and demand for a particular country’s currency based on that country’s investment, trade potential, and economic strength. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Remember
BUSPROG: Analytic
Pricing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: NRUQ0MB8PNMYN475H631
QUESTION ID:   JFND-GO4G-G3BU-QQKG

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJZ-CA4G-KPDD-GITD-OPDD-GYSS-GPJI-8RSU-RQDN-GOSS-CAJA-GOSS-EC5D-8Y3G-CCJW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

43. Vimonland Theme Park sells the necessary rights to an investment company to run a Vimonland theme park in a foreign country. The investment company gains most of the profits from the enterprise while paying Vimonland Theme Park a percentage as royalties. This is an example of__________.

ANSWER:   licensing
RATIONALE:   Licensing is the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge. The licensee, in turn, pays the licensor a royalty or fee agreed on by both parties. Vimonland Theme Park is selling an investment firm the rights to run its theme park in a foreign country. The investment company pays Vimonland Theme Park a percentage of its profits as royalties. Therefore, this is an example of licensing. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Apply
BUSPROG: Reflective Thinking
International Licensing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: PDCC6VQMHKV9101FF796
QUESTION ID:   JFND-GO4G-G3BU-QQKF

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJS-8R4D-OPTU-GYAS-R3TT-8RSU-QPDG-CESU-O3UN-GOSU-1QJZ-GASS-KQJS-GA4G-K3BZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

44. D Feet Corp. manufactures its footwear in a small town in America, but it sells to several countries around the world. Given this information, D Feet Corp. can best be characterized as a__________multinational corporation.

ANSWER:   first-stage
RATIONALE:   D Feet Corp. is a first-stage multinational company as it manufactures its footwear in America but sells it to different countries around the world. Multinationals often develop their global business in stages. In the first stage, companies operate in one country and sell to others. See 5-2: Multinational Firms
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.02
TOPICS:   A-head: Multinational Firms
Bloom’s: Apply
BUSPROG: Reflective Thinking
Multinational Corporations
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: QGZX6367NLAK5U25U030
QUESTION ID:   JFND-GO4G-G3BU-QQKR

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMB-GI1D-RPDR-GH3U-OPUF-GYSS-N3JZ-8RSS-EC31-GOSS-RPTA-CESS-GA3U-GW4U-QPMF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

45. A small U.S. print studio uses Facebook and Pinterest to promote its stationery and other products. The regular posts and reviews from customers have attracted the attention of several companies worldwide who like to customize their office stationaries and supplies. This is an effect of__________.

ANSWER:   using social media to expand beyond local markets
RATIONALE:   The print studio uses social media such as Facebook and Pinterest to display its products. This attracts the attention of several companies worldwide, thus allowing the firm to expand beyond local markets. Opening an e-commerce site on the Internet immediately puts a company in the international marketplace. See 5-6: The Impact of the Internet
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.06
TOPICS:   A-head: The Impact of the Internet
Bloom’s: Apply
BUSPROG: Reflective Thinking
Social Media Strategy
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: SYME9CH2SUGCUU3G4116
QUESTION ID:   JFND-GO4G-G3BU-QQKD

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJA-GEHD-RAJT-CR4U-EPMR-CWSS-CCMR-CESS-EAMG-GOSS-C3MD-CCSU-RCMB-G31U-RPB1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

46. The practice of returning production jobs to the United States is known as__________.

ANSWER:   inshoring
RATIONALE:   Inshoring is the practice of returning production jobs to the United States. Increased fuel and transportation costs associated with long-distance shipping, coupled with falling United States energy costs, have given impetus to inshoring. See 5-1: Rewards of Global Marketing and the Shifting Global Business Landscape
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Remember
BUSPROG: Analytic
International Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: TFBJ41HAYFVY7AUT5563
QUESTION ID:   JFND-GO4G-G3BU-QQJU

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJT-C3TD-R3UG-GOAD-E3B1-CRSU-GPMD-8YSU-RCBS-GOSU-RCDF-COSU-CP3S-CFTD-13MG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

47. Fashion Spell, an apparel store, has a page on Facebook through which it interacts with its customers. It encourages customers to post comments about the store and give feedback. It also holds a lucky draw competition every week and the winner receives a gift voucher from Fashion Spell. Given this information, Fashion Spell uses__________to increase its customer base.

ANSWER:   social media marketing
RATIONALE:   Fashion Spell is making use of social media marketing to keep in touch with its customers. Making use of social media sites such as Facebook is an example of social media marketing. See 5-6: The Impact of the Internet
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.06
TOPICS:   A-head: The Impact of the Internet
Bloom’s: Apply
BUSPROG: Reflective Thinking
Social Media Strategy
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: TWYBP4V4LMFSERYEY740
QUESTION ID:   JFND-GO4G-G3BU-QQJ1

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJI-GBUG-CPTU-CC4D-YAUB-8RSU-CQDD-8RSU-QAUN-GOSU-YCMB-COSU-NAJS-GA5D-RA5G-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

48. __________is the sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter.

ANSWER:   Dumping
RATIONALE:   Dumping is the sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter. This practice is regarded as a form of price discrimination that can potentially harm the importing nation’s competing industries. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Remember
BUSPROG: Analytic
Marketing Mix
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: UYRAVMYU5PD7NH6B9990
QUESTION ID:   JFND-GO4G-G3BU-QQJT

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMB-CR3G-N3BW-CE5D-RC3U-CRSS-N3TA-CESU-R3BI-GOSU-GC5D-GCSS-K3DF-8R3D-GQBT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

49. Khokho’s Coffee House is the first to introduce flavored coffee in the global market. It sells coffee in several different flavors, such as blueberry, cinnamon, and cranberry, based on the popular flavors in each country. Based on this information, Khokho’s Coffee House uses__________to market its products.

ANSWER:   product invention
RATIONALE:   Khokho’s Coffee House is the first to introduce flavored coffee in the market. This indicates that it is creating new flavors based on popular flavors in different countries and is therefore engaged in product invention. In the context of global marketing, product invention can be taken to mean either creating a new product for a market or drastically changing an existing product. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Global Adaptation
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: XWXREPQ50TJRCLDRW548
QUESTION ID:   JFND-GO4G-G3BU-QQJO

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJW-GHAU-R3TS-GIOS-CATZ-CESS-GQBT-CRSU-GP5F-GOSU-YPJ1-CWSU-E3UR-GTOS-CC5D-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

50. What are the benefits of globalization?

ANSWER:   Traditional economic theory says that globalization relies on competition to drive down prices and increase product and service quality. Business goes to the countries that operate most efficiently and/or have the technology to produce what is needed. In summary, globalization expands economic freedom, spurs competition, and raises the productivity and living standards of people in countries that open themselves to the global marketplace. For less developed countries, globalization also offers access to foreign capital, global export markets, and advanced technology while breaking the monopoly of inefficient and protected domestic producers. In developing countries around the world, globalization has created a vibrant middle class that has elevated the standard of living for hundreds of millions of people.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Understand
BUSPROG: Analytic
International Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: EEKHTXMUA3DEZE22W451
QUESTION ID:   JFND-GO4G-G3BU-QQJZ

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJT-CRHD-13JZ-8BTD-KPT3-CWSU-OPTI-CESU-NCTO-GOSU-KCJZ-GWSU-1PMN-GRAD-RP3W-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

51. Why do firms that enter into foreign trade need to adhere to the principles of the marketing mix?

ANSWER:   To succeed, firms seeking to enter into foreign trade must still adhere to the principles of the marketing mix. Information gathered on foreign markets through research is the basis for the four Ps of global marketing strategy: product, place (distribution), promotion, and price. Marketing managers who understand the advantages and disadvantages of different ways of entering the global market and the effect of the external environment on the firm’s marketing mix have a better chance of reaching their goals. The first step in creating a marketing mix is developing a thorough understanding of the global target market.
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Analyze
BUSPROG: Analytic
Marketing Mix
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: ETCF7ATW69AQ473NR367
QUESTION ID:   JFND-GO4G-G3BU-QQJS

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJW-GRAG-RPTT-CA4D-N3DF-GRSU-GCJU-8RSU-ECTW-GOSU-R3TZ-GYSU-KQBO-CW5U-CPJ1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

52. Explain with an example the major role played by social media in global marketing.

ANSWER:   Because Facebook, YouTube, and other social media are popular around the world, firms both large and small have embraced social media marketing. For example, Tim Hortons, a Canadian-based fast-casual restaurant chain known for its coffee and donuts, has more than 3,000 stores. To engage its Facebook fans, the company will occasionally post a picture of one of its restaurants on Facebook, and its 1.4 million fans guess the location. Every time a fan makes a guess, Facebook posts a Tim Hortons branded message to that fan’s and his or her friends’ news feeds.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.06
TOPICS:   A-head: The Impact of the Internet
Bloom’s: Understand
BUSPROG: Analytic
Internet
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: FRWUG3UYNDCNR7VMV157
QUESTION ID:   JFND-GO4G-G3BU-QQJI

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMB-CA3S-N3UF-GAAG-GC3W-GRSS-CPBI-CRSU-RAT1-GOSS-E3MB-8YSU-YCBT-GTTD-CPT3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

53. Identify a few disadvantages of global trade.

ANSWER:   Many people fear world trade and globalization because of the following disadvantages: Millions of Americans have lost jobs due to imports, production shifts abroad, or outsourcing of tech jobs. Some people find new jobs, but they often pay less than their old jobs. Millions of others fear losing their jobs, especially at companies operating under competitive pressure. Employers often threaten to outsource jobs if workers do not accept pay cuts. Service and white-collar jobs are increasingly vulnerable to operations moving offshore.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Understand
BUSPROG: Analytic
International Marketing
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: JWPJVUS7VR2HNRNWX787
QUESTION ID:   JFND-GO4G-G3BU-QQJW

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJ1-COAS-RPMR-CCAU-KAJ3-GASU-RPTI-8YSS-KC5R-GOSS-N3TS-GRSU-N3UD-8FUD-KAUR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

54. Write a note on the economic factors that influence the external business environment.

ANSWER:   One of the major factors in the external environment facing the global marketer is the level of economic development in the countries where it operates. In general, complex and sophisticated industries are found in developed countries, and more basic industries are found in less developed countries. Larger incomes mean greater purchasing power and demand, not only for consumer goods and services, but also for the machinery and workers required to produce consumer goods.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Understand
BUSPROG: Analytic
Economic Forces
DATE CREATED:   5/1/2015 4:22 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CGI: ZHFLXFP2PHWY33WUW909
QUESTION ID:   JFND-GO4G-G3BU-QTKN

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJO-CRAG-KCUN-8B1S-GA3Z-GYSU-O3MB-8RSU-GP3I-GOSS-NPMF-CASU-ECMB-CI1U-13UG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

55. ​The primary reason large U.S. companies send U.S. jobs abroad is because labor costs are higher in the United States. Such companies are said to be engaging in _____.

a. ​employee export
b. ​outsourcing
c. ​inshoring
d. ​joint ventures

 

ANSWER:   b
RATIONALE:   Outsourcing refers to sending U.S. jobs abroad. Many executives believe that outsourcing leads to corporate growth, efficiency, productivity, and revenue growth. Most companies see cost savings as a key driver in outsourcing. See 5-1: Rewards of Global Marketing and the Shifting Global Business Landscape
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Understand
BUSPROG: Analytic
International Marketing
DATE CREATED:   5/25/2015 11:43 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   AXQLW0SF9Y0JWDJHQ892
QUESTION ID:   JFND-GO4G-GR3W-EO4B

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJO-GI1S-CPUF-GW4U-NQMN-GWSS-KA3S-CESU-EP3U-GOSS-RA33-GCSU-CPT3-GCAU-O3MR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

56. ​Melrow Inc., a U.S. firm, suffers heavy losses and lays off many of its employees. As a measure to reduce its manufacturing costs, it shifts its production units to another country where inexpensive labor is available. In this scenario, Melrow Inc. is engaged in _____.

a. ​licensing
b. ​outsourcing
c. ​franchising
d. ​inshoring

 

ANSWER:   b
RATIONALE:   In this scenario, Melrow Inc. cuts costs by shifting its production units to another country because of the inexpensive labor available there. Therefore, Melrow Inc. is said to be engaged in outsourcing. Outsourcing refers to sending U.S. jobs abroad. See 5-1: Rewards of Global Marketing and the Shifting Global Business Landscape
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Apply
BUSPROG: Reflective Thinking
International Marketing
DATE CREATED:   5/25/2015 11:50 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   HQHZSC70J7U2KJ30P707
QUESTION ID:   JFND-GO4G-GR3W-EO3S

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMG-CR3D-KC3S-GY5D-E3B1-GOSU-GA3O-CESS-KCMB-GOSU-1A5N-GRSU-OCUR-8FOU-KPBI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

57. ​The practice of returning production jobs to the United States is known as _____.

a. ​outsourcing
b. ​international franchising
c. ​licensing
d. ​inshoring

 

ANSWER:   d
RATIONALE:   Inshoring is the practice of returning production jobs to the United States. Increased fuel and transportation costs associated with long-distance shipping, coupled with falling United States energy costs, have given impetus to inshoring. See 5-1: Rewards of Global Marketing and the Shifting Global Business Landscape
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.01
TOPICS:   A-head: Rewards of Global Marketing and the Shifting Global Business Landscape
Bloom’s: Remember
BUSPROG: Analytic
International Marketing
DATE CREATED:   5/25/2015 11:53 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   TFBJ41HAYFVY7AUT5563
QUESTION ID:   JFND-GO4G-GR3W-ETNB

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJA-G71D-YCTI-G71D-GPJ1-GWSU-OQJA-CESS-NCJU-GOSU-KQJW-CASU-GC3T-GC4S-R3J3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

58. ​D Feet Corp. manufactures its footwear in a small town in America, but it sells to several countries around the world. Given this information, D Feet Corp. can best be characterized as a _____ multinational corporation.

a. ​first-stage
b. ​second-stage
c. ​third-stage
d. ​fourth-stage

 

ANSWER:   a
RATIONALE:   D Feet Corp. is a first-stage multinational company as it manufactures its footwear in America but sells it to different countries around the world. Multinationals often develop their global business in stages. In the first stage, companies operate in one country and sell to others. See 5-2: Multinational Firms
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.02
TOPICS:   A-head: Multinational Firms
Bloom’s: Apply
BUSPROG: Reflective Thinking
Multinational Corporations
DATE CREATED:   5/25/2015 11:58 PM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   QGZX6367NLAK5U25U030
QUESTION ID:   JFND-GO4G-GR3W-ETBS

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMR-C31U-KP5B-GY4G-K3JW-GWSU-NCUG-CESU-RQDB-GOSS-R3JO-CESU-KPJZ-8Y5U-NCTI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

59. ​A company is most likely doomed to failure in a foreign country if it _____.

a. ​does not understand the country’s culture
b. ​does not emphasize its home country’s language over that of the country
c. ​varies its marketing mix based on the country’s economic growth
d. ​pays attention to the country’s demographics

 

ANSWER:   a
RATIONALE:   Central to any society is a common set of values shared by its citizens that determines what is socially acceptable and what is not. A company that does not understand a country’s culture is doomed to failure in that country. Cultural blunders lead to misunderstandings and often perceptions of rudeness and even incompetence. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Understand
BUSPROG: Analytic
Culture
DATE CREATED:   5/26/2015 12:01 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   CQVSSNGCCNCNYYGY7844
QUESTION ID:   JFND-GO4G-GR3W-ECT3

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMG-COAD-13UG-GE3U-KQDG-GHSU-GCJU-CESU-O3J3-GOSS-CATO-GRSU-GPJZ-CR5D-YPMG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

60. ​Irving Inc., an apparel company, decides to expand operations to several countries around the world. However, it fails to take into account the various styles of clothing that are deemed acceptable in these countries. It sells the same clothes that it sells in its home country to the other countries. As a result, it suffers a major loss. In this scenario, Irving Inc. failed to be sensitive to the _____ of the countries.

a. ​economic factors
b. ​legal environments
c. ​cultural aspects
d. ​political forces

 

ANSWER:   c
RATIONALE:   Irving Inc. fails to take into account the various styles of clothing that are deemed acceptable in various countries. By doing so, Irving Inc. failed to be sensitive to the cultural aspects of the countries. Culture underlies the family, the educational system, religion, and the social class system. A company that does not understand a country’s culture is doomed to failure in that country. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Apply
BUSPROG: Reflective Thinking
Culture
DATE CREATED:   5/26/2015 12:03 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   AKGQEUUMEQX5SHXBW876
QUESTION ID:   JFND-GO4G-GR3W-ECTT

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJI-CO3G-CCMF-COAD-CATO-8RSS-GP3I-CRSS-EC5D-GOSU-QC33-GASS-K3JI-GPUD-Y3TO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

61. ​A(n) _____ is a limit on the amount of a specific product that can enter a country.

a. ​quota
b. ​tariff
c. ​boycott
d. ​exchange control

 

ANSWER:   a
RATIONALE:   A quota is a limit on the amount of a specific product that can enter a country. Several U.S. companies have sought quotas as a means of protection from foreign competition. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Remember
BUSPROG: Analytic
Global Legal-Political Environment
DATE CREATED:   5/26/2015 12:06 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   AXXP5D4Y5QZGSCBRL582
QUESTION ID:   JFND-GO4G-GR3W-EC33

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJT-GH4D-1QBS-CWAU-EC5B-GCSU-1PMR-8YSS-CAJW-GOSU-OPDB-8RSS-NQJ3-GC5G-R3TU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

62. ​_____ are trade alliances in which several countries agree to work together to form a common trade area that enhances trade opportunities among those countries.

a. ​Exchange controls
b. ​Market groupings
c. ​Joint ventures
d. ​Direct foreign investments

 

ANSWER:   b
RATIONALE:   Market groupings are trade alliances in which several countries agree to work together to form a common trade area that enhances trade opportunities among those countries. The best-known market grouping is the European Union (EU). See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Remember
BUSPROG: Analytic
Global Legal-Political Environment
DATE CREATED:   5/26/2015 12:08 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   LHWYWTT82CF84BJ3N457
QUESTION ID:   JFND-GO4G-GR3W-EC31

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMR-G31U-ECTI-CJTD-OPBA-GOSU-RA3O-8YSS-R3TS-GOSS-GC3I-CESS-C3TS-CR3G-G3TU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

63. ​_____ is the largest Latin American trade agreement and includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela.

a. ​Mercosur
b. ​General Agreement on Tariffs and Trade (GATT)
c. ​The Uruguay Round
d. ​The North American Free Trade Agreement (NAFTA)

 

ANSWER:   a
RATIONALE:   Mercosur is the largest Latin American trade agreement and includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela. A trade agreement is an agreement to stimulate international trade. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Remember
BUSPROG: Analytic
External Business Environment
DATE CREATED:   5/26/2015 12:11 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   DVHXKJEWYKXH62AET520
QUESTION ID:   JFND-GO4G-GR3W-ECNB

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJA-CRHD-G3MR-G7TD-KQJA-CESU-GA3Z-CRSU-RCT3-GOSU-RCMG-CRSU-CP31-8FTD-K3TU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

64. ​The _____ is a trade agreement that has dramatically lowered trade barriers worldwide and also created the World Trade Organization.

a. ​European Union
b. ​General Agreement on Tariffs and Trade (GATT)
c. ​North American Free Trade Agreement (NAFTA)
d. ​Uruguay Round

 

ANSWER:   d
RATIONALE:   The Uruguay Round is a trade agreement that has dramatically lowered trade barriers worldwide and also created the World Trade Organization. It is the most ambitious global trade agreement ever negotiated. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Remember
BUSPROG: Analytic
External Business Environment
DATE CREATED:   5/26/2015 12:13 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   HYFR1569R4MSW486H791
QUESTION ID:   JFND-GO4G-GR3W-ECBO

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJO-8FTG-CAMF-CITU-Q3BA-CRSU-RPTS-CESS-RCUD-GOSU-CCT1-CESU-C3TU-8B1U-OPJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

65. ​Aztic Inc., a manufacturer of sports goods, plans to expand its operations to a new country. As part of this expansion, it determines whether the population of the country is primarily rural or urban. In this case, Aztic Inc. is assessing the _____ of the country.

a. ​political structure
b. ​natural resources
c. ​legal environment
d. ​demographic makeup

 

ANSWER:   d
RATIONALE:   Aztic Inc. is assessing the country’s demographic makeup. Marketers need to know whether the population of a country is mostly urban or rural, because marketers may not have easy access to rural consumers. Another key demographic consideration is age. See 5-3: External Environment Faced by Global Marketers
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.03
TOPICS:   A-head: External Environment Faced by Global Marketers
Bloom’s: Apply
BUSPROG: Reflective Thinking
Demographics
DATE CREATED:   5/26/2015 12:16 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   EDDHWEEWEBJRV9Z5Y771
QUESTION ID:   JFND-GO4G-GR3W-ECBW

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJI-GCHD-Y3T1-GCAU-OPBW-CWSS-RCJA-8RSU-EAJI-GOSU-RA5B-CRSU-CPT1-CA5D-R3MB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

66. ​A(n) _____ is an intermediary who brings a buyer and a seller together.

a. ​licenser
b. ​export broker
c. ​contract manufacturer
d. ​export merchant

 

ANSWER:   b
RATIONALE:   An export broker is an intermediary who plays the traditional broker’s role by bringing buyer and seller together. The manufacturer still retains title and assumes all the risks. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Remember
BUSPROG: Analytic
Exporting
DATE CREATED:   5/26/2015 12:18 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   FPPQKFFWYJ71AUN12494
QUESTION ID:   JFND-GO4G-GR3W-ECKD

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMR-COAD-1A33-CO5U-EATT-GCSU-RCJZ-CRSS-RPBA-GOSS-GAUR-GASS-EA3A-GC5D-G3MD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

67. ​Vimonland Theme Park sells the necessary rights to an investment company to run a Vimonland theme park in a foreign country. The investment company gains most of the profits from the enterprise while paying Vimonland Theme Park a percentage as royalties. This is an example of _____.

a. ​licensing
b. ​contract manufacturing
c. ​exporting
d. ​importing

 

ANSWER:   a
RATIONALE:   Licensing is the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge. The licensee, in turn, pays the licensor a royalty or fee agreed on by both parties. Vimonland Theme Park is selling an investment firm the rights to run its theme park in a foreign country. The investment company pays Vimonland Theme Park a percentage of its profits as royalties. Therefore, this is an example of licensing. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Apply
BUSPROG: Reflective Thinking
International Licensing
DATE CREATED:   5/26/2015 12:21 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   PDCC6VQMHKV9101FF796
QUESTION ID:   JFND-GO4G-GR3W-ECJW

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJS-GAAS-GP3Z-GF1D-CCTO-CWSS-CCJW-CRSU-RQDB-GOSU-RC5D-GYSU-EPDF-GHHS-K3TA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

68. ​In the context of global marketing, when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity, it is known as a _____.

a. ​countertrade
b. ​franchise
c. ​joint venture
d. ​common trade alliance

 

ANSWER:   c
RATIONALE:   In an international joint venture, the domestic firm buys part of a foreign company or joins with a foreign company to create a new entity. Joint ventures are somewhat similar to licensing agreements. See 5-4: Global Marketing by the Individual Firm
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.04
TOPICS:   A-head: Global Marketing by the Individual Firm
Bloom’s: Remember
BUSPROG: Analyze
Joint Ventures
DATE CREATED:   5/26/2015 12:23 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   EVLHFUAQW7AWJMKLE460
QUESTION ID:   JFND-GO4G-GR3W-EP1D

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJ1-G3TG-CAJO-CF1G-GA3S-COSS-CQJZ-8RSS-RPMF-GOSS-CPMB-GESS-GCMF-CW4G-RAJ3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

69. ​D’Costas, an authentic Mexican restaurant, has many restaurants all over the world. The taste and authenticity of the food served is the same irrespective of the restaurant one visits. Based on this information, D’Costas follows the strategy of _____.

a. ​retail channel omnification
b. ​product adaptation
c. ​mass customization
d. ​global marketing standardization

 

ANSWER:   d
RATIONALE:   D’Costas maintains the same taste and authenticity of food in all its restaurants. Therefore, it follows the strategy of global marketing standardization. Developing a single product for all markets and promoting it the same way all over the world is known as global marketing standardization. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Global Adaptation
DATE CREATED:   5/26/2015 12:26 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   AYXP7F287AT1MUSPG438
QUESTION ID:   JFND-GO4G-GR3W-EPTI

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJA-CW4D-KA3S-GEAD-OPUN-CESU-OPUR-8YSS-CAJI-GOSU-NPJA-CWSS-NPJ1-GY5U-N3J3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

70. ​Khokho’s Coffee House is the first to introduce flavored coffee in the global market. It sells coffee in several different flavors, such as blueberry, cinnamon, and cranberry, based on the popular flavors in each country. Based on this information, Khokho’s Coffee House uses _____ to market its products.

a. ​product invention
b. ​promotion adaptation
c. ​global marketing standardization
d. ​product adaptation

 

ANSWER:   a
RATIONALE:   Khokho’s Coffee House is the first to introduce flavored coffee in the market. This indicates that it is creating new flavors based on popular flavors in different countries and is therefore engaged in product invention. In the context of global marketing, product invention can be taken to mean either creating a new product for a market or drastically changing an existing product. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Apply
BUSPROG: Reflective Thinking
Global Adaptation
DATE CREATED:   5/26/2015 12:28 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   XWXREPQ50TJRCLDRW548
QUESTION ID:   JFND-GO4G-GR3W-EP4G

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJT-8RAU-13TA-CA5U-QQJS-GESU-KPMD-8YSU-G3DR-GOSU-GCMN-GRSS-CATZ-CTTU-KPJT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

71. ​Currency markets operate under a system in which the prices of different currencies move up or down based on the demand for and supply of each currency. This is the system of _____.

a. ​countertrade
b. ​floating exchange rates
c. ​dumping
d. ​contract manufacturing

 

ANSWER:   b
RATIONALE:   Currency markets operate under a system of floating exchange rates, a system in which the prices of different currencies move up or down based on the demand for and supply of each currency. Global currency traders create the supply of and demand for a particular country’s currency based on that country’s investment, trade potential, and economic strength. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Remember
BUSPROG: Analytic
Pricing
DATE CREATED:   5/26/2015 12:31 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   NRUQ0MB8PNMYN475H631
QUESTION ID:   JFND-GO4G-GR3W-EP3Z

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMG-CJ1D-GPJI-G3TS-RPJ1-GRSU-QPBZ-CESS-CP3U-GOSU-N3MB-GCSU-EQBZ-8Y5U-E3JT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

72. ​_____ is the sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter.

a. ​Exporting
b. ​Dumping
c. ​Boycotting
d. ​Contract manufacturing

 

ANSWER:   b
RATIONALE:   Dumping is the sale of an exported product at a price lower than that charged for the same or a like product in the “home” market of the exporter. This practice is regarded as a form of price discrimination that can potentially harm the importing nation’s competing industries. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Remember
BUSPROG: Analytic
Marketing Mix
DATE CREATED:   5/26/2015 12:34 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   UYRAVMYU5PD7NH6B9990
QUESTION ID:   JFND-GO4G-GR3W-EPBA

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMF-GE3S-K3DB-GE4G-KCMD-COSU-GCT1-CRSU-GCUN-GOSU-EQJZ-GHSU-YAMN-GF1S-GCUF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

73. ​_____ is a fast-growing way to conduct global business in which all or part of the payment for goods or services is in the form of other goods and services.

a. ​Countertrade
b. ​Global market standardization
c. ​Exporting
d. ​Market grouping

 

ANSWER:   a
RATIONALE:   Global trade does not always involve cash. Countertrade is a fast-growing way to conduct global business. In countertrade, all or part of the payment for goods or services is in the form of other goods and services. See 5-5: The Global Marketing Mix
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.05
TOPICS:   A-head: The Global Marketing Mix
Bloom’s: Remember
BUSPROG: Analytic
Marketing Mix
DATE CREATED:   5/26/2015 12:36 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   AMDLKTU2ER3BMNLEF197
QUESTION ID:   JFND-GO4G-GR3W-EPBS

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJA-GW4G-RQB3-CE4G-GC31-CRSS-R3B1-CESU-YCUD-GOSU-R3B1-8RSS-RC3O-GJTS-NA3S-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

74. ​Fashion Spell, an apparel store, has a page on Facebook through which it interacts with its customers. It encourages customers to post comments about the store and give feedback. It also holds a lucky draw competition every week and the winner receives a gift voucher from Fashion Spell. Given this information, Fashion Spell uses _____ to increase its customer base.

a. ​social media marketing
b. ​product adaptation
c. ​contract manufacturing
d. ​countertrade

 

ANSWER:   a
RATIONALE:   Fashion Spell is making use of social media marketing to keep in touch with its customers. Making use of social media sites such as Facebook is an example of social media marketing. See 5-6: The Impact of the Internet
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.06
TOPICS:   A-head: The Impact of the Internet
Bloom’s: Apply
BUSPROG: Reflective Thinking
Social Media Strategy
DATE CREATED:   5/26/2015 12:39 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   TWYBP4V4LMFSERYEY740
QUESTION ID:   JFND-GO4G-GR3W-EPKR

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMJI-C31D-YP31-CIOU-O3JU-GRSS-K3JW-CESU-EC3S-GOSS-GQDB-GYSU-YQDB-8R4U-1CBO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

75. ​A small U.S. print studio uses Facebook and Pinterest to promote its stationery and other products. The regular posts and reviews from customers have attracted the attention of several companies worldwide who like to customize their office stationaries and supplies. This is an effect of _____.

a. ​contract manufacturing
b. ​using social media to expand beyond local markets
c. ​using dumping to export products
d. ​product differentiation

 

ANSWER:   b
RATIONALE:   The print studio uses social media such as Facebook and Pinterest to display its products. This attracts the attention of several companies worldwide, thus allowing the firm to expand beyond local markets. Opening an e-commerce site on the Internet immediately puts a company in the international marketplace. See 5-6: The Impact of the Internet
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.06
TOPICS:   A-head: The Impact of the Internet
Bloom’s: Apply
BUSPROG: Reflective Thinking
Social Media Strategy
DATE CREATED:   5/26/2015 12:42 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   SYME9CH2SUGCUU3G4116
QUESTION ID:   JFND-GO4G-GR3W-EPJI

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMD-GA3S-G3DN-COHD-Y3B1-GYSS-E3J1-CRSS-GCMR-GOSS-RATZ-8YSS-KCJW-COAS-NC3T-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

76. ​Maria likes visiting different restaurants and trying out a variety of cuisines. She writes her experiences on a Web page, titled Maria’s Experiences, which can be read by people all around the world. She also reviews restaurants, and members of her Web page are entitled to post their comments and suggestions. Based on this information, Maria’s Experiences is an example of a(n) _____.

a. ​blog
b. ​online forum
c. ​widget
d. ​e-commerce Web site

 

ANSWER:   a
RATIONALE:   Maria’s Experiences is an example of a blog as it functions as a journal in which Maria writes her experiences with restaurants and allows members to read and leave their comments. A blog is a publicly accessible Web page that functions as an interactive journal, where readers can post comments on the author’s entries See 5-6: The Impact of the Internet
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.05.06
TOPICS:   A-head: The Impact of the Internet
Bloom’s: Apply
BUSPROG: Reflective Thinking
Social Media Strategy
DATE CREATED:   5/26/2015 12:45 AM
DATE MODIFIED:   5/26/2015 12:51 AM
CUSTOM ID:   HESDZ7YZMEJ9YK39R542
QUESTION ID:   JFND-GO4G-GR3W-KOKF

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GPTU-OCB1-GITD-RQB3-CCHN-4CTO-8FTN-4PJI-GW4N-4AUN-8BO1-43UG-8FOS-E3MD-CPDI-GWN8-EPRW-EMMF-GO3D-RAJU-GAAS-CAMB-8RSU-OCJZ-CESU-RCMD-GOSU-OQBS-COSU-KQDN-GJ1G-GCUR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

1. A low failure rate, greater competition, and wide distribution typify the introductory stage of the product life cycle.

a. True
b. False

 

ANSWER:   False
RATIONALE:   A high failure rate, little competition, frequent product modification, and limited distribution typify the introductory stage of the product life cycle. The introductory stage of the product life cycle represents the full-scale launch of a new product into the market place. See 11-6:Product Life Cycles
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Understand
BUSPROG: Analytic
Product Introduction Stage
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: BWPR9ZFE7ZY0MJ3MR295
QUESTION ID:   JFND-GO4G-G3BU-ETTO

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMN-CC5D-RQJW-CE4U-GAMN-CCSU-N3UG-8YSU-CPMN-GOSU-OQBI-GYSU-1QDG-GAAS-KPTZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

2. A period during which sales decrease at an increasing rate signals the beginning of the maturity stage of the product life cycle.

a. True
b. False

 

ANSWER:   False
RATIONALE:   A period during which sales increase at a decreasing rate signals the beginning of the maturity stage of the product life cycle. Normally, this is the longest stage of the product life cycle. See 11-6:Product Life Cycles
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Remember
BUSPROG: Analytic
Product Maturity Stage
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: CCAUJWEA5J4UQ3BF7298
QUESTION ID:   JFND-GO4G-G3BU-ETTZ

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMD-CFUD-GPDR-GR5D-YPJS-CRSU-KAJS-CESU-E3TZ-GOSU-YQBZ-8RSU-ECBA-CR5U-1C3S-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

3. In the growth stage of the product life cycle, sales typically grow at an increasing rate, many competitors enter the market, and large companies may start to acquire pioneering firms.

a. True
b. False

 

ANSWER:   True
RATIONALE:   If a product category survives the introductory stage, it then advances to the growth stage of the life cycle. In the growth stage of a product life cycle, sales typically grow at an increasing rate, many competitors enter the market, and large companies may start to acquire pioneering firms. See 11-6:Product Life Cycles
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Understand
BUSPROG: Analytic
Product Growth Stage
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: CPEZKDA01MCYRCCC2069
QUESTION ID:   JFND-GO4G-G3BU-ETTS

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMF-CCHS-NPBT-CO3G-CAJW-CRSS-EA3U-8RSU-KP5D-GOSS-KCMG-GWSU-ECTT-8B1D-E3BZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

4. An organized effort to generate many ideas from various sources is important for any firm that wishes to produce a continuing flow of new products.

a. True
b. False

 

ANSWER:   True
RATIONALE:   An organized effort to generate many ideas from various sources is important for any firm that wishes to produce a continuing flow of new products. Many new product ideas are necessary to produce one successful new product. See 11-6:Product Life Cycles
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Understand
BUSPROG: Analytic
Marketing Management
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: KRCLB6CN5FDPB26G3427
QUESTION ID:   JFND-GO4G-G3BU-ETTI

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJ3-CEHU-1AUG-G3TD-YC3A-GCSU-EPUB-8RSU-RP3S-GOSU-NPBS-CRSU-KC5G-GF1D-QCUD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

5. 3D printing is a process which is sometimes used to create three dimensional prototypes of a product quickly and at a relatively low cost.

a. True
b. False

 

ANSWER:   True
RATIONALE:   The 3D printing is a process which is sometimes used to create three dimensional prototypes quickly and at a relatively low cost. It is used by the R&D or engineering department of a company to develop a prototype of a product. See 11-2:The New-Product Development Process
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Remember
BUSPROG: Analytic
New Product Development Process
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: KWCSCQ9KTLQGF3G4C626
QUESTION ID:   JFND-GO4G-G3BU-ETTW

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJI-8Y4S-GCBW-C31D-O3DD-CESU-CCDD-CRSU-QA3T-GOSU-GP3A-CASU-KP3U-GY4U-N3TS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

6. Eliminating all nonessential marketing expenses and letting sales decline is one of the successful strategies for marketing products in the decline stage of their life cycle.

a. True
b. False

 

ANSWER:   True
RATIONALE:   Some firms eliminate all nonessential marketing expenses and let sales decline as more and more customers discontinue purchasing products that are in the decline stage of their life cycle. It is one of the successful strategies for marketing products in the decline stage of the product life cycle. See 11-6:Product Life Cycles
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Remember
BUSPROG: Analytic
Product Decline Stage
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: MAHJPY65T97GC0N1Y604
QUESTION ID:   JFND-GO4G-G3BU-EO4N

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJS-GHHU-YPJU-GJTD-CA5B-GOSU-CAJ1-8RSS-GATS-GOSU-EQDN-GOSU-O3BO-8Y4D-NAJ3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

7. The use of concept tests during the idea screening stage of the new-product development process reduces the efficiency of screening.

a. True
b. False

 

ANSWER:   False
RATIONALE:   Concept tests are often used in the idea screening stage to rate concept (or product) alternatives. They are considered fairly good predictors of success for line extensions. See 11-2:The New-Product Development Process
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Understand
BUSPROG: Analytic
Product Screening
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: MJJL2K6QPTV2GEFLK333
QUESTION ID:   JFND-GO4G-G3BU-EO4B

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJU-8R3U-Y3DF-CRAS-R3JS-8RSU-NCJO-CRSU-E3MF-GOSU-KCT3-CCSS-CAT3-CR5D-1ATW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

8. Increasing globalization of markets and competition provides a reason for multinational firms to consider new-product development from a worldwide perspective.

a. True
b. False

 

ANSWER:   True
RATIONALE:   Increasing globalization of markets and competition provides a reason for multinational firms to consider new-product development from a worldwide perspective. A firm that starts with a global strategy is better able to develop products that are marketable worldwide. See 11-4:Global Issues in New-Product Development
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.04
TOPICS:   A-head: Global Issues in New-Product Development
Bloom’s: Understand
BUSPROG: Analytic
International Marketing
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: NBQCYKSHQYQA00JMQ668
QUESTION ID:   JFND-GO4G-G3BU-EO33

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMR-8RHD-CPTS-GTOS-EPDG-CCSU-K3MF-CESS-NQJ3-GOSS-GQDB-CRSU-GPTS-GHHU-QQJI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

9. The most important factor in successful new-product introduction is a good match between the product and market needs.

a. True
b. False

 

ANSWER:   True
RATIONALE:   The most important factor in successful new-product introduction is a good match between the product and market needs—as the marketing concept would predict. Successful new products deliver a meaningful and perceivable benefit to a sizeable number of people or organizations and are different in some meaningful ways from their intended substitutes. See 11-3:Why Some Products Succeed and Others Fail
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.03
TOPICS:   A-head: Why Some Products Succeed and Others Fail
Bloom’s: Remember
BUSPROG: Analytic
New Product Failures
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: RJZZ1ZLW8H9YYLEMD515
QUESTION ID:   JFND-GO4G-G3BU-EO3A

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJZ-8BUG-ECMF-CT1G-G3MB-GRSU-1A31-8YSS-NA3O-GOSU-ECJT-COSU-C3TW-GYAD-Y3MB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

10. A new-product strategy describes the characteristics of products an organization wants to offer and the markets it wants to serve.

a. True
b. False

 

ANSWER:   True
RATIONALE:   A new-product strategy specifies the roles that new products must play in an organization’s overall plan and describes the characteristics of products the organization wants to offer and the markets it wants to serve. See 11-2:The New-Product Development Process
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Remember
BUSPROG: Analytic
Product Strategy
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: SENWFNTHTMP1LENK3445
QUESTION ID:   JFND-GO4G-G3BU-EO4G

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJ1-GTUD-GCB1-CFTD-CC5F-GYSU-OQJT-CRSS-KPT3-GOSS-ECJU-GASU-CP3S-CC3D-RQMR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

11. Compatible products diffuse more slowly than incompatible products.

a. True
b. False

 

ANSWER:   False
RATIONALE:   Incompatible products diffuse more slowly than compatible products. Compatibility is the degree to which a new product is inconsistent with existing values and product knowledge, past experiences, and current needs. See 11-5:The Spread of New Products
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   True / False
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.05
TOPICS:   A-head: The Spread of New Products
Bloom’s: Remember
BUSPROG: Analytic
Product Adoption Process
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: YHGTPVGKG43R8BL2Y011
QUESTION ID:   JFND-GO4G-G3BU-EO4F

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMN-GE3U-EQBU-GYAS-NCJO-CASS-K3MR-CESS-NAJA-GOSS-RAJ3-GWSU-NPTO-CI1U-G3BS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

12. Hakimo Corp., a multinational corporation that specializes in audio equipment, has developed a wireless speaker that sits unobtrusively on a desktop. The tiny, yet strong, twin speakers use Bluetooth to stream music directly from a PC or MP3 player. This small wireless speaker, which is radically different from anything currently on the market, can most likely be classified as a:

a. repositioned product.
b. revision of an existing product.
c. discontinuous innovation.
d. lower-priced product.

 

ANSWER:   c
RATIONALE:   The small wireless speaker developed by Hakimo Corp. is an example of a discontinuous innovation. These products create an entirely new market. Discontinuous innovations represent the smallest category of new products. See 11-1: The Importance of New Products
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.01
TOPICS:   A-head: The Importance of New Products
Bloom’s: Apply
BUSPROG: Reflective Thinking
New Products and Service Introductions
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: BCRS1U04FJASV4E1Y129
QUESTION ID:   JFND-GO4G-G3BU-EO4R

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJZ-GC4G-KP5R-CJ1G-GQBS-8YSS-EAT1-8YSU-CP3S-GOSS-NAJZ-GHSS-RCBW-GE3U-RPTZ-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

13. Which of the following is true of customer innovation centers?

a. They depend largely on distributors to gather information about customer needs and expectations.
b. They involve key suppliers early in the process, capitalize on their knowledge, and enable them to develop critical component parts.
c. They provide a forum for meeting with customers and directly involving them in the process of developing new ideas.
d. They require a grouping of employees who can brainstorm and suggest ideas for new products to meet customer needs.

 

ANSWER:   c
RATIONALE:   The idea behind customer innovation centers is to provide a forum for meeting with customers and directly involving them in the innovation process. It is one of the approaches for generating new product ideas. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Understand
BUSPROG: Analytic
Product Idea Generation
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: DRGVR4XFWJ7TFDUDJ540
QUESTION ID:   JFND-GO4G-G3BU-EO4D

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJO-CJTS-KQBU-GH4D-G3J1-GASU-OQMD-CRSU-KP3U-GOSU-EPBO-CASU-GQJS-8BTD-Y3TT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

14. Which of the following is true of product modification?

a. It entails the creation of marketable new products.
b. It necessitates the use of crowdsourcing to develop new ideas for a product.
c. It goes beyond applied research by converting applications into marketable products.
d. It makes cosmetic or functional changes to existing products.

 

ANSWER:   d
RATIONALE:   Product modification makes cosmetic or functional changes to existing products. It is one of the four ways in which research and development can be carried out. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Understand
BUSPROG: Analytic
Product Idea Generation
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: EHJU84ZD0WA87X10W376
QUESTION ID:   JFND-GO4G-G3BU-EO3U

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJT-GR4S-GCMD-CF1U-KPB3-GCSU-GPJW-CRSU-RQDF-GOSS-RATO-GOSS-ECMR-8RHU-YPTI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

15. Daily Farm is a manufacturer of consumer goods such as foods, beverages, cleaning agents, and personal care products. It is expected to introduce more than ten new products in the next two years. One of the products is a spicier variant of its tomato ketchup aimed at the baby boomer market. Which of the following categories of new products will the spicier ketchup represent?

a. Repositioned product
b. Revision of existing product
c. New product line
d. Addition to existing product line

 

ANSWER:   d
RATIONALE:   The spicier ketchup would represent an addition to existing product line. This category includes new products that supplements a firm’s established line. In this case, the spicier variant of tomato ketchup is an addition to Daily Farm’s existing product line of tomato ketchups. See 11-1: The Importance of New Products
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.01
TOPICS:   A-head: The Importance of New Products
Bloom’s: Apply
BUSPROG: Reflective Thinking
New Products and Service Introductions
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: FEVU4QRRK71Q7AHEX413
QUESTION ID:   JFND-GO4G-G3BU-EO31

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJA-COHS-KPJO-8B1S-GPTZ-CRSS-RP5D-8YSS-NCBW-GOSU-YC5R-CWSU-RA5D-COHD-EPTT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

16. Which of the following is true of the development stage of a new-product development process?

a. It sets several tasks in motion, such as building inventories and advertising to potential customers.
b. It evaluates a new-product idea usually before any prototype has been created.
c. It estimates the demand, cost, sales, and profitability of a product for the first time.
d. It examines the feasibility of manufacturing a product at an acceptable cost.

 

ANSWER:   d
RATIONALE:   The development stage of a new-product development process examines the feasibility of manufacturing a product at an acceptable cost. The development stage can last a long time and thus be very expensive. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Understand
BUSPROG: Analytic
Product Development
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: KGKTGYUHYECN2E13M061
QUESTION ID:   JFND-GO4G-G3BU-EO3T

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMG-CW5D-CQJU-GIOU-YPJO-COSU-CQJT-8YSU-YCJS-GOSU-KQBI-GESS-NPT1-GY3G-RA3O-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

17. Why are marketing costs high in the introductory stage of the product life cycle?

a. Cutthroat competition during the introductory stage can lead to price wars.
b. Sales increase rapidly during the introductory stage, requiring greater investment for marketing.
c. High dealer margins are often needed to obtain adequate distribution.
d. Product and manufacturing costs need to be identified and corrected.

 

ANSWER:   c
RATIONALE:   Marketing costs in the introductory stage are normally high for several reasons. High dealer margins are often needed to obtain adequate distribution, and incentives are needed to get consumers to try the new product. Advertising expenses are high because of the need to educate consumers about the new product’s benefits. See 11-6: Product Life Cycles
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Analyze
BUSPROG: Analytic
Product Introduction Stage
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: KHLFJASZK10BVYZEM693
QUESTION ID:   JFND-GO4G-G3BU-EO3O

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMN-GCHU-QC3U-GB1S-RP3A-GYSS-RPDF-CRSS-KP3Z-GOSU-GQJ1-GOSS-GATT-CO5U-EQMR-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

18. Why do most firms consider test marketing essential for new products?

a. The high price of failure simply prohibits the widespread introduction of new products without testing.
b. The speed, safeness, and reliability of test marketing is higher than that of simulated market testing.
c. The ability of test marketing to evaluate consumer preference for a new product prior to developing a prototype increases its importance.
d. The decision to test a product sets several tasks in motion, such as ordering product materials, starting production, building inventories, and advertising to potential customers.

 

ANSWER:   a
RATIONALE:   The high price of failure simply prohibits the widespread introduction of new products without testing. Despite various cheaper, safer, and faster alternatives, most firms still consider test marketing essential for new products. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Analyze
BUSPROG: Analytic
Test Marketing
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:09 AM
CUSTOM ID:   CGI: LTGTSYV5X92ADZG0T472
QUESTION ID:   JFND-GO4G-G3BU-EO3Z

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJT-GTOU-QQJU-GY3G-GPUN-8RSU-OCUG-8YSS-G3TS-GOSS-RA33-GCSU-RP5G-GA5G-GC33-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

19. Which of the following is a feature of the product life cycle (PLC)?

a. It allows firms to shorten the development process of a product and reduce costs.
b. It helps marketers forecast future events and suggest appropriate strategy.
c. It dictates the marketing strategy to be used for a product.
d. It tells managers the length of a product’s life cycle or its duration in any stage.

 

ANSWER:   b
RATIONALE:   The product life cycle (PLC) concept is simply a tool to help marketers forecast future events and suggest appropriate strategies. It does not tell managers the length of a product’s life cycle or its duration in any stage. It does not dictate marketing strategy. See 11-6: Product Life Cycles
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Understand
BUSPROG: Analytic
Product Life Cycle
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: MZZNVD8C1M38UJ11W776
QUESTION ID:   JFND-GO4G-G3BU-EO3S

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMR-G31D-GAJZ-CFOU-EA33-GHSU-QPT3-CRSU-E3TZ-GOSU-E3DB-8YSU-YPUF-CRHG-ECUG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

20. A difference between early majority and early adopters is that early majority are:

a. more likely to be opinion leaders.
b. more eager to try new products and ideas, almost as an obsession.
c. likely to collect more information and evaluate more brands.
d. less likely to extend the adoption process.

 

ANSWER:   c
RATIONALE:   A difference between early majority and early adopters is that early majority are likely to collect more information and evaluate their brands, thereby extending the adoption process. They rely on the group for information but are unlikely to be opinion leaders themselves. See 11-5: The Spread of New Products
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.05
TOPICS:   A-head: The Spread of New Products
Bloom’s: Analyze
BUSPROG: Analytic
Buyer Adoption
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: QDXAHUP3BJX0CUCV1182
QUESTION ID:   JFND-GO4G-G3BU-EO3I

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJ1-CO4D-YQJS-GYHD-R3JT-COSU-RQMB-8YSU-Q3JW-GOSS-NPJU-8RSU-QCUB-CC3G-RCBS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

21. The purpose of the screening stage in a new-product development process is to:

a. refine the promotion campaign to be used with the new product.
b. eliminate ideas that are inconsistent with an organization’s new-product strategy.
c. identify and eliminate concept tests that might lead to duplication of experiments.
d. set a limit on the number of members allowed to assess the viability of a new-product idea.

 

ANSWER:   b
RATIONALE:   The screening stage in a new-product development process is used to eliminate ideas that are inconsistent with an organization’s new-product strategy or are obviously inappropriate for some other reason. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Understand
BUSPROG: Analytic
Product Screening
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: QTUXL6AEJ8RKC1CTB153
QUESTION ID:   JFND-GO4G-G3BU-EO3W

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJU-GAHD-GPTW-8R4D-RAT3-GRSS-CPTU-8RSU-YCDB-GOSU-1ATS-GOSU-NPTS-8F1S-KCJS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

22. The purpose of test marketing is to:

a. eliminate ideas that are inconsistent with an organization’s new-product strategy.
b. shorten the development process of a product and reduce costs.
c. assess how well various aspects of the marketing mix fit together.
d. evaluate a new-product idea before any prototype is created.

 

ANSWER:   c
RATIONALE:   Test marketing allows management to evaluate alternate strategies and to assess how well various aspects of the marketing mix fit together. It is the limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Understand
BUSPROG: Analytic
Test Marketing
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: SAUH5500NZRHUBX4Y080
QUESTION ID:   JFND-GO4G-G3BU-ETNN

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJS-GW3S-RP5F-GTTD-EQDD-GYSU-O3BI-CESS-GATU-GOSU-R3JA-GYSS-RPBT-GCHU-NCJI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

23. Which of the following is an advantage of simultaneous product development?

a. It shortens a product’s development process.
b. It ensures that a development process proceeds through highly structured stages.
c. It lengthens product lines to appeal additional markets.
d. It eliminates the need for test marketing a new product.

 

ANSWER:   a
RATIONALE:   Simultaneous product development allows firms to shorten the development process and reduce costs. With simultaneous product development, all relevant functional areas and outside suppliers participate in all stages of the development process See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Understand
BUSPROG: Analytic
Product Development
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: SVEDE3WBAESD4FBXP339
QUESTION ID:   JFND-GO4G-G3BU-ETNB

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJT-GR3U-R3TS-CEAU-QP3A-CWSU-NCUG-8YSU-N3DF-GOSU-ECTW-GASU-YCDG-G7OS-NPDG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

24. Steve wanted to open a day care service facility for dogs. He estimated the costs involved in providing the services desired by dog owners. After extensive deliberation, Steve decided not to proceed with the plan as the cost of providing the services was too high compared to the rates dog owners would be willing to pay. Which of the following stages of the new-product development process has Steve used to arrive at this decision?

a. Idea screening
b. Business analysis
c. Idea generation
d. Test marketing

 

ANSWER:   b
RATIONALE:   Steve has used the business analysis stage of the new-product development process to decide if he should open a day care service facility for dogs. In the business analysis stage, preliminary figures for demand, cost, sales, and profitability are calculated. For the first time, costs and revenues are estimated and compared. See 11-2: The New-Product Development Process​
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Apply
Business Analysis
BUSPROG: Reflective Thinking
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: TDMUEUWUGSHFWNXER793
QUESTION ID:   JFND-GO4G-G3BU-ETB3

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMB-COHS-RP3U-8RHG-CQJA-CASU-YPDR-8RSS-K3TU-GOSU-EATS-8RSS-K3DB-CJUG-CPUN-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

25. Which of the following is true of laggards?

a. They are more likely to get their information from scientific sources and experts.
b. They act as an important link in the process of diffusing ideas.
c. They are eager to try new products and ideas, almost as an obsession.
d. They have the longest adoption time and the lowest socioeconomic status.

 

ANSWER:   d
RATIONALE:   Laggards have the longest adoption time and the lowest socioeconomic status. They tend to be suspicious of new products and alienated from a rapidly advancing society. See 11-5: The Spread of New Products
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.05
TOPICS:   A-head: The Spread of New Products
Bloom’s: Understand
BUSPROG: Analytic
Buyer Adoption
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: UDET0DJCGFF3UE7N5279
QUESTION ID:   JFND-GO4G-G3BU-ETBA

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJW-GT1D-GCTZ-CAHD-CQJZ-COSS-CAT1-CESU-QCDN-GOSS-NPTS-GYSU-R3MD-GFTG-K3JO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

26. Which of the following is a feature of a new-product strategy?

a. It traces all stages of a product’s acceptance, from its introduction to its decline.
b. It provides general guidelines for generating, screening, and evaluating new-product ideas.
c. It increases the time spent by a product in the introduction stage of its life cycle.
d. It gives greater importance to highly structured development process rather than simultaneous development.

 

ANSWER:   b
RATIONALE:   A new-product strategy sharpens the focus and provides general guidelines for generating, screening, and evaluating new-product ideas. It is part of an organization’s overall marketing strategy. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Understand
BUSPROG: Analytic
Product Strategy
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: VRZRM7EF6C27FBUP7886
QUESTION ID:   JFND-GO4G-G3BU-ETNG

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMB-GOHD-NQJU-GIUD-1CJZ-GRSS-GAJ3-CESU-EQBT-GOSS-KA3I-GESU-NQMF-GHAU-CQDB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

27. The business analysis stage of a new-product development process__________.

ANSWER:   calculates preliminary figures for demand, cost, sales, and profitability
RATIONALE:   New-product ideas that survive the initial screening process move to the business analysis stage, where preliminary figures for demand, cost, sales, and profitability are calculated. For the first time, costs and revenues are estimated and compared. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Understand
Business Analysis
BUSPROG: Analytic
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: EZWDR9E6N0K84YBG1470
QUESTION ID:   JFND-GO4G-G3BU-ETNF

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMD-GRHD-QA3A-GPUG-K3BW-COSU-OCBW-8RSU-E3MB-GOSS-KPBT-GASS-ECBT-GYHD-NCBA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

28. During the__________stage of the new-product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin.

ANSWER:   commercialization
RATIONALE:   During the commercialization stage of the new-product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin. Commercialization is the final stage in the new-product development process. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Remember
BUSPROG: Analytic
Commercialization
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: GGSVLZENH17XQFUWS456
QUESTION ID:   JFND-GO4G-G3BU-ETNR

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJU-GE5S-RC5D-GT1S-EQBO-GASU-RQDN-CESU-R3JO-GOSS-GPJS-CASU-OP3I-GC4S-KPTS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

29. In the context of the product characteristics that can be used to predict and explain the rate of acceptance and diffusion,__________represents the degree of difficulty involved in understanding and using a new product.

ANSWER:   complexity
RATIONALE:   Complexity is the degree of difficulty involved in understanding and using a new product. The more complex the product, the slower is its diffusion. See 11-5: The Spread of New Products
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.05
TOPICS:   A-head: The Spread of New Products
Bloom’s: Remember
BUSPROG: Analytic
Product Adoption Process
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: HYELTC02Z08G7T78M944
QUESTION ID:   JFND-GO4G-G3BU-ETND

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMD-GCHG-CCJU-COAS-RCDF-GWSS-CC3Z-8YSS-CPTO-GOSU-CCJ3-GYSU-QPTT-GRHS-RATW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

30. The maker of Protect Your Hands hand sanitizer decided to test its consumers’ reactions to one of its new products, Protect Your Hands Sanitizing Wipes. It sent out flyers advertising several of the company’s products along with the new product to select customers of the target market. The flyer also asked the customers to shop in a mock store filled with real products, including the new product. In this case, the maker of Protect Your Hands has used__________.

ANSWER:   simulated market testing
RATIONALE:   The maker of Protect Your Hands has used simulated (laboratory) market testing. Simulated market tests typically entail showing members of the target market advertising for a variety of products and then monitoring purchase behavior in a mock or real store. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Apply
BUSPROG: Reflective Thinking
New Product Development Process
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: JJJG9DYS0RD9EFV4T916
QUESTION ID:   JFND-GO4G-G3BU-ETBU

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMF-GWAS-RPJT-GP1U-NPJW-CASU-O3DD-CRSU-NQMR-GOSU-EATS-8YSS-RC5R-8Y5G-CAJ1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

31. __________are typically categorized by a sudden and unpredictable spike in sales followed by a rather abrupt decline.

ANSWER:   Fad items
RATIONALE:   Fads are typically categorized by a sudden and unpredictable spike in sales followed by a rather abrupt decline. Examples of fad items are Silly Bandz, Beanie Babies, and Crocs. See 11-6: Product Life Cycles
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Remember
BUSPROG: Analytic
Product Life Cycle
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: MQVM99X423EDGUT40229
QUESTION ID:   JFND-GO4G-G3BU-ETB1

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJI-CEAG-CP3Z-C3UG-NPUB-GWSS-RAJU-CESS-KP31-GOSU-Y3JZ-GYSS-GPMF-CP1U-YAT3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

32. __________have the longest product life cycles.

ANSWER:   Product categories
RATIONALE:   Product categories have the longest life cycles. A product category includes all brands that satisfy a particular type of need, such as shaving products, passenger automobiles, or soft drinks. See 11-6: Product Life Cycles
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Remember
BUSPROG: Analytic
Product Life Cycle
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: MSTEGKJ779JYYKL5V566
QUESTION ID:   JFND-GO4G-G3BU-ETBT

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMN-CAHD-QC5B-GFOS-RQDB-GHSU-CAUN-CRSU-KP3I-GOSU-GQBU-8RSU-CP5B-CC4D-NCTT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

33. Roger is always eager to own the latest cell phone model launched in the market. He makes it a point to buy new cell phones on the first day of their launch. He is also an active member of various online forums that discuss the latest technical developments. In this case, Roger is a(n)__________.

ANSWER:   innovator
RATIONALE:   ​Roger is an innovator as he is always eager to own the latest cell phone model launched in the market. Innovators are the first 2.5 percent of all those who adopt the product. Innovators are eager to try new ideas and products, almost as an obsession. In addition to having higher incomes, they are more worldly and more active outside their community than noninnovators. See 11-5: The Spread of New Products

POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
TOPICS:   A-head: The Spread of New Products
Bloom’s: Apply
BUSPROG: Reflective Thinking
First Adopters
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: RTVBR7FATSVDCG8W7685
QUESTION ID:   JFND-GO4G-G3BU-ETBO

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJO-CO5D-NC33-8R3G-KCTT-GHSU-KCUF-CRSU-YQJA-GOSU-OCJW-8RSU-G3TA-GFTS-GCJS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

34. In the context of the product life cycle, a long-run drop in a product’s sales signals the beginning of the__________.

ANSWER:   decline stage
RATIONALE:   A long-run drop in sales signals the beginning of the decline stage. The rate of decline is governed by how rapidly consumer tastes change or substitute products are adopted. See 11-6: Product Life Cycles
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Remember
BUSPROG: Analytic
Product Life Cycle
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: SMHX2709A27AX8R29935
QUESTION ID:   JFND-GO4G-G3BU-ETBZ

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMD-GBOU-ECBA-GIUG-RPTU-GYSS-RCBW-8YSU-GCUN-GOSU-NPDG-COSS-EQDR-GOAU-OA3Z-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

35. Central Bark Doggie Day Care opened the first day care center for dogs. It currently has 31 locations, with a new Gainesville, Florida, location coming soon. The concept of day care center for dogs became so popular that other competitors begin to enter the market. With competing companies such as Camp Bow Wow and others entering the market, it can be said that the concept of day care center for dogs is moving into the__________stage of a product life cycle.

ANSWER:   growth
RATIONALE:   With the opening of competition in the form of Camp Bow Wow and others, it can be said that the dog day care product is moving into the growth stage of the product life cycle. A competitor entering the market is an indicator of the growth stage in the product life cycle. See 11-6: Product Life Cycles
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Apply
BUSPROG: Reflective Thinking
Product Growth Stage
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: TJTC346AL9S1KZAHD571
QUESTION ID:   JFND-GO4G-G3BU-ETBS

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJW-CAAD-NPUD-GA5S-KAMN-GRSS-GQJT-8YSU-KCBZ-GOSU-GPMG-CASU-YCMG-8BOS-GATO-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

36. Jeni’s Splendid Ice Creams has decided to put its new Beet Cake with Black Walnut ice cream on the market. This product has entered the__________stage of new-product development process.

ANSWER:   commercialization
RATIONALE:   The product has entered the commercialization stage of new-product development process. Commercialization is the decision to market a product. It is the final stage in the new-product development process. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Apply
BUSPROG: Reflective Thinking
Commercialization
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: UPLTLRS1NH1U666FC478
QUESTION ID:   JFND-GO4G-G3BU-ETBI

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJW-8Y3D-GPTT-GYAD-YP5D-GRSS-RQJW-CESS-CAUB-GOSS-EPBI-8RSS-R3J1-8R3D-NPT1-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

37. The process where all the involved areas—R&D, marketing, engineering, production, and even suppliers—work together rather than sequentially during a product’s development is called__________.

ANSWER:   simultaneous product development
RATIONALE:   The product development process works best when all the involved areas (R&D, marketing, engineering, production, and even suppliers) work together rather than sequentially, a process called simultaneous product development. It is a team-oriented approach to new-product development. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Remember
BUSPROG: Analytic
Product Development
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: WVSJ5E794XD8CJN0J022
QUESTION ID:   JFND-GO4G-G3BU-ETBW

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMR-G7TD-NQJT-GRAS-CA3S-GHSU-QCB3-8YSS-NATT-GOSU-E3TS-8RSS-N3TA-CA4U-N3UD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

38. Nutritreat Industries Corp. is a manufacturer of food products. The company introduced chocolate cookies to the local market. After a period of initial success, the product lost its market and Nutritreat decided to withdraw chocolate cookies from the market. This scenario is an example of the__________stage of a product life cycle.

ANSWER:   decline
RATIONALE:   This scenario is an example of the decline stage of the product life cycle. A long-run drop in sales signals the beginning of the decline stage. Eventually, the product is withdrawn from the market. See 11-6: Product Life Cycles
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Apply
BUSPROG: Reflective Thinking
Product Decline Stage
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: XWDHGJ60YVVXGM4DD593
QUESTION ID:   JFND-GO4G-G3BU-EC1N

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJT-CJTD-KQMB-GPOU-CQMG-CWSU-ECJ3-CESU-ECTU-GOSU-RCJT-CRSU-13TU-GP1U-1QMB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

39. __________are the first 2.5 percent of all those who first adopt a new product.

ANSWER:   Innovators
RATIONALE:   Innovators are the first 2.5 percent of all those who adopt a product. Innovators are eager to try new ideas and products, almost as an obsession. They are characterized as being venturesome. See 11-5: The Spread of New Products
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Completion
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.05
TOPICS:   A-head: The Spread of New Products
Bloom’s: Remember
BUSPROG: Analytic
First Adopters
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: ZQNKZT4WVKUEMU7H6225
QUESTION ID:   JFND-GO4G-G3BU-EC1B

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMN-GW5D-YCMF-CRAG-CCDB-GESU-KCTT-CRSU-Y3JW-GOSS-RQBA-CESU-Y3JO-GH3G-RATU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

40. Explain in detail the importance of the Internet for implementing simultaneous product development.

ANSWER:   The Internet is a useful tool for simultaneous product development. On the Web, multiple partners from a variety of location can meet regularly to assess new-product ideas, analyze markets and demographics, and review cost information. Ideas judged to be feasible can quickly be converted into new products. The best-managed global firms leverage their global networks by sharing best practices, knowledge, and technology. Without the Internet, it would be impossible to conduct simultaneous product development from different parts of the world. Some firms use online brain trusts to solve technical problems. Innovative firms are also gathering a variety of R&D input from customers online.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Understand
BUSPROG: Analytic
Product Development
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: PWHKAEB6D71B9AL95568
QUESTION ID:   JFND-GO4G-G3BU-ECT3

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMB-C31S-KCBO-GY5U-YAJT-GHSU-CCUN-8RSU-OC5D-GOSU-OC5F-GHSS-RQBS-GAHD-NC5F-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

41. Explain the differences between the maturity stage and growth stage in the product life cycle.

ANSWER:   A period during which sales increase at a decreasing rate signals the beginning of the maturity stage of a product life cycle. Normally, this is the longest period of the product life cycle. As prices and profits continue to fall, marginal competitors start dropping out of the market. Dealer margins also shrink, resulting in less shelf space for mature items, lower dealer inventories, and a general reluctance to promote the product.If a product category survives the introductory stage, it then advances to the growth stage of the life cycle. In this stage, sales typically grow at an increasing rate, many competitors enter the market, and large companies may start to acquire small pioneering firms. Profits rise rapidly in the growth stage, reach their peak, and begin declining as competition intensifies. Emphasis switches from primary demand promotion to aggressive brand advertising and communication of the differences between brands.
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Analyze
BUSPROG: Analytic
Product Maturity Stage
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: VVZUT9LHNXRWETCR9728
QUESTION ID:   JFND-GO4G-G3BU-ECTA

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMG-CTUD-YPTW-G3UG-CCMR-GHSS-E3B1-CRSU-N3UD-GOSU-KPDG-GRSU-O3T1-GA3S-RCTT-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

42. Explain in detail why a large proportion of new product introductions fail?

ANSWER:   Despite the amount of time and money spent on developing and testing new products, a large proportion of new product introductions fail. Products fail for a number of reasons. One common reason is that they simply do not offer any discernible benefit compared to existing products. Another commonly cited factor in new-product failures is a poor match between product features and customer desires. For example, there are telephone systems in the market with more than 700 different functions, although the user is happy with just ten functions. Other reasons for failure include overestimation of marker size, incorrect targeting or positioning, a price too high or too low, inadequate distribution, poor promotion, or simply an inferior product.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.03
TOPICS:   A-head: Why Some Products Succeed and Others Fail
Bloom’s: Understand
BUSPROG: Analytic
New Product Failures
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: YAWK9C2U8LU6P4C49804
QUESTION ID:   JFND-GO4G-G3BU-EC1G

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJZ-CE4S-NCTU-GT1S-GAJW-GCSU-OCDB-CESU-1QMB-GOSU-YQJU-GCSS-N3TO-CE3G-GQDD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

43. What are the major implications of the new-product development process and the diffusion process to marketing managers?

ANSWER:   The funnel shape of the new-product development process indicates that many new product ideas are necessary to produce one successful new product. The new-product development process is sometimes illustrated as a decay curve with roughly half of the ideas approved at one stage rejected at the next stage. While the actual numbers vary widely among firms and industries, the relationship between the stages can be generalized. This reinforces the notion that an organized effort to generate any ideas from various sources is important for any firm that wishes to produce a continuing flow of new products. The major implication of the diffusion process to marketing managers is that the message may need to change over time. The targeted adopter and media may need to shift based on how various categories of adopters gather product information. A message developed for and targeted toward early adopters will not be perceived similarly by late majority adopters.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Understand
BUSPROG: Analytic
Marketing Management
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: YTEHFQXFRJFTBJ3DF277
QUESTION ID:   JFND-GO4G-G3BU-EC1F

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJA-GY5D-GPBU-CW3D-N3UD-GESU-EQDN-CRSS-E3JZ-GOSS-GQJZ-CESS-EP3W-CE4U-NPMG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

44. Describe how a multinational corporation can most efficiently and effectively meet the needs of the global market.

ANSWER:   A firm that adopts a worldwide new-product development strategy is better able to develop products with specifications that are marketable in multiple countries. Ideally, products should be developed for potential worldwide distribution, and unique multinational market requirements are incorporated into the base product whenever technically feasible. A company could also design products to meet regulations and other key requirements in its major market and then meet smaller markets’ requirements on a country-by-country basis. The main goal of the global product development process is not to develop a standard product or product line but to build adaptability into products that are expected to achieve worldwide appeal.
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Essay
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.04
TOPICS:   A-head: Global Issues in New-Product Development
Bloom’s: Understand
BUSPROG: Analytic
International Marketing
DATE CREATED:   5/1/2015 4:21 PM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   CGI: ZZKN42A7F9EMYC0E8832
QUESTION ID:   JFND-GO4G-G3BU-EC1R

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJW-GITD-N3MN-GJUD-Q3JA-8RSU-QCTZ-CRSU-RAMG-GOSS-RA3T-GCSU-KPJ3-GAAS-CP5D-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

45. The business analysis stage of a new-product development process _____.​

a. ​involves the development of a prototype of the proposed product
b. ​calculates preliminary figures for demand, cost, sales, and profitability
c. ​eliminates ideas that are inconsistent with an organization’s new-product strategy
d. ​decides on a product’s packaging, branding, labeling, and so forth

 

ANSWER:   b
RATIONALE:   New-product ideas that survive the initial screening process move to the business analysis stage, where preliminary figures for demand, cost, sales, and profitability are calculated. For the first time, costs and revenues are estimated and compared. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Moderate
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Understand
BUSPROG: Analytic
Business Analysis
DATE CREATED:   5/26/2015 12:19 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   EZWDR9E6N0K84YBG1470
QUESTION ID:   JFND-GO4G-GR3W-ECJT

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMR-GOHG-NPB3-CWAD-GCBT-8RSS-KC5F-8RSS-CCTZ-GOSU-EPT1-CRSU-O3JO-GWAS-KP3T-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

46. The process where all the involved areas—R&D, marketing, engineering, production, and even suppliers—work together rather than sequentially during a product’s development is called _____.​

a. ​simultaneous product development
b. ​test marketing
c. ​simulated market testing
d. ​choice modelling

 

ANSWER:   a
RATIONALE:   The product development process works best when all the involved areas (R&D, marketing, engineering, production, and even suppliers) work together rather than sequentially, a process called simultaneous product development. It is a team-oriented approach to new-product development. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Remember
BUSPROG: Analytic
Product Development
DATE CREATED:   5/26/2015 12:23 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   WVSJ5E794XD8CJN0J022
QUESTION ID:   JFND-GO4G-GR3W-EP1F

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMD-GT1U-KATZ-GO5G-RATS-GYSS-ECJS-CESS-CPJA-GOSS-ECBW-CESU-O3UR-CW4S-K3TI-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

47. The maker of Protect Your Hands hand sanitizer decided to test its consumers’ reactions to one of its new products, Protect Your Hands Sanitizing Wipes. It sent out flyers advertising several of the company’s products along with the new product to select customers of the target market. The flyer also asked the customers to shop in a mock store filled with real products, including the new product. In this case, the maker of Protect Your Hands has used -_____.​

a. ​crowdsourcing
b. ​simulated market testing
c. ​concept testing
d. ​product simulation

 

ANSWER:   b
RATIONALE:   The maker of Protect Your Hands has used simulated (laboratory) market testing. Simulated market tests typically entail showing members of the target market advertising for a variety of products and then monitoring purchase behavior in a mock or real store. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Apply
BUSPROG: Reflective Thinking
New Product Development Process
DATE CREATED:   5/26/2015 12:26 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   JJJG9DYS0RD9EFV4T916
QUESTION ID:   JFND-GO4G-GR3W-EP4N

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMB-GW4G-NATT-GWAS-CPTT-GASU-RPMN-CESS-ECTW-GOSU-RPT3-GRSU-ECJU-CJ1U-ECBU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

48. During the _____ stage of the new-product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin.​

a. ​commercialization
b. ​test marketing
c. ​idea generation
d. ​business analysis

 

ANSWER:   a
RATIONALE:   During the commercialization stage of the new-product development process, production starts, inventories are built up, the product is shipped to distribution points, the sales force is trained, and advertising and promotion begin. Commercialization is the final stage in the new-product development process. See 11-2: The New-Product Development Process
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Remember
BUSPROG: Analytic
Commercialization
DATE CREATED:   5/26/2015 12:28 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   GGSVLZENH17XQFUWS456
QUESTION ID:   JFND-GO4G-GR3W-EP4F

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJI-CFUD-13B3-COHU-1C5B-8RSS-KPTZ-8RSS-R3BS-GOSU-RPTU-CCSU-CA5R-GA3S-CCTW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

49. Jeni’s Splendid Ice Creams has decided to put its new Beet Cake with Black Walnut ice cream on the market. This product has entered the _____ stage of new-product development process.​

a. ​business analysis
b. ​development
c. ​test marketing
d. ​commercialization

 

ANSWER:   d
RATIONALE:   The product has entered the commercialization stage of new-product development process. Commercialization is the decision to market a product. It is the final stage in the new-product development process. See 11-2: The New-Product Development Process
POINTS:   1
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.02
TOPICS:   A-head: The New-Product Development Process
Bloom’s: Apply
BUSPROG: Reflective Thinking
Commercialization
DATE CREATED:   5/26/2015 12:31 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   UPLTLRS1NH1U666FC478
QUESTION ID:   JFND-GO4G-GR3W-EP3I

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMB-GHAD-1PTS-CE3D-C3TS-CASU-YQJS-8YSU-Y3MD-GOSS-RQJW-GRSU-NCUG-CO5D-EPB3-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

50. _____ are the first 2.5 percent of all those who first adopt a new product.​

a. ​Innovators
b. ​Early adopters
c. ​Laggards
d. ​Early majority

 

ANSWER:   a
RATIONALE:   Innovators are the first 2.5 percent of all those who adopt a product. Innovators are eager to try new ideas and products, almost as an obsession. They are characterized as being venturesome. See 11-5: The Spread of New Products
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.05
TOPICS:   A-head: The Spread of New Products
Bloom’s: Remember
BUSPROG: Analytic
First Adopters
DATE CREATED:   5/26/2015 12:34 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   ZQNKZT4WVKUEMU7H6225
QUESTION ID:   JFND-GO4G-GR3W-EPB1

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJA-GY5G-RATW-CE4G-RPUF-CCSS-KPDG-CESS-CAJS-GOSU-QCB3-CESS-NCMG-CCAD-KP33-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

51. Roger is always eager to own the latest cell phone model launched in the market. He makes it a point to buy new cell phones on the first day of their launch. He is also an active member of various online forums that discuss the latest technical developments. In this case, Roger is a(n) _____.​

a. ​laggard
b. ​innovator
c. ​early majority
d. ​late majority

 

ANSWER:   b
RATIONALE:   Roger is an innovator as he is always eager to own the latest cell phone model launched in the market. Innovators are the first 2.5 percent of all those who adopt the product. Innovators are eager to try new ideas and products, almost as an obsession. In addition to having higher incomes, they are more worldly and more active outside their community than noninnovators. See 11-5: The Spread of New Products
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.05
TOPICS:   A-head: The Spread of New Products
Bloom’s: Apply
BUSPROG: Reflective Thinking
First Adopters
DATE CREATED:   5/26/2015 12:38 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   RTVBR7FATSVDCG8W7685
QUESTION ID:   JFND-GO4G-GR3W-EPKG

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJS-8R4U-EA3T-GR4G-NC3O-CCSS-KAT1-CRSU-GCUD-GOSS-CA3T-CCSS-RPUD-GI1U-KAMG-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

52. In the context of the product characteristics that can be used to predict and explain the rate of acceptance and diffusion, _____ represents the degree of difficulty involved in understanding and using a new product.​

a. ​complexity
b. ​compatibility
c. ​observability
d. ​trialability

 

ANSWER:   a
RATIONALE:   Complexity is the degree of difficulty involved in understanding and using a new product. The more complex the product, the slower is its diffusion. See 11-5: The Spread of New Products
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.05
TOPICS:   A-head: The Spread of New Products
Bloom’s: Remember
BUSPROG: Analytic
Product Adoption Process
DATE CREATED:   5/26/2015 12:43 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   HYELTC02Z08G7T78M944
QUESTION ID:   JFND-GO4G-GR3W-KOKB

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJU-CIUD-OCDN-G3TU-EPDG-GRSS-RCMR-CRSS-K3MB-GOSS-CPJA-CRSU-YCMF-GR3G-K3JW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

53. _____ have the longest product life cycles.​

a. ​Product categories
b. ​Product items
c. ​Individual brands
d. ​New products

 

ANSWER:   a
RATIONALE:   Product categories have the longest life cycles. A product category includes all brands that satisfy a particular type of need, such as shaving products, passenger automobiles, or soft drinks. See 11-6: Product Life Cycles
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Remember
BUSPROG: Analytic
Product Life Cycle
DATE CREATED:   5/26/2015 12:46 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   MSTEGKJ779JYYKL5V566
QUESTION ID:   JFND-GO4G-GR3W-KOJO

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJ3-CA5D-GA5B-CRAG-CA5G-CCSS-ECBA-CESU-13TT-GOSU-GCUB-CCSU-KPDG-8Y3U-RQMB-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

54. _____ are typically categorized by a sudden and unpredictable spike in sales followed by a rather abrupt decline.​

a. ​Consumer durable goods
b. ​Fad items
c. ​Product trends
d. ​Product life cycles

 

ANSWER:   b
RATIONALE:   Fads are typically categorized by a sudden and unpredictable spike in sales followed by a rather abrupt decline. Examples of fad items are Silly Bandz, Beanie Babies, and Crocs. See 11-6: Product Life Cycles
POINTS:   1
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Remember
BUSPROG: Analytic
Product Life Cycle
DATE CREATED:   5/26/2015 12:51 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   MQVM99X423EDGUT40229
QUESTION ID:   JFND-GO4G-GR3W-KO1G

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJZ-GO3D-CP3W-GR3U-C3DF-CCSU-R3BO-8YSU-CPJ1-GOSU-1PTU-CWSU-C3JT-GR4D-1CBW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

55. Central Bark Doggie Day Care opened the first day care center for dogs. It currently has 31 locations, with a new Gainesville, Florida, location coming soon. The concept of day care center for dogs became so popular that other competitors begin to enter the market. With competing companies such as Camp Bow Wow and others entering the market, it can be said that the concept of day care center for dogs is moving into the _____ stage of a product life cycle.​

a. ​introductory
b. ​growth
c. ​maturity
d. ​decline

 

ANSWER:   b
RATIONALE:   With the opening of competition in the form of Camp Bow Wow and others, it can be said that the dog day care product is moving into the growth stage of the product life cycle. A competitor entering the market is an indicator of the growth stage in the product life cycle. See 11-6: Product Life Cycles
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Apply
BUSPROG: Reflective Thinking
Product Growth Stage
DATE CREATED:   5/26/2015 12:56 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   TJTC346AL9S1KZAHD571
QUESTION ID:   JFND-GO4G-GR3W-KQNN

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMMF-CE5D-YAJZ-CW3D-1CB3-GYSS-EPTT-8RSS-NC3A-GOSU-RQJW-COSS-EPJT-CRAS-RPTS-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

56. In the context of the product life cycle, a long-run drop in a product’s sales signals the beginning of the _____.​

a. ​introductory stage
b. ​growth stage
c. ​maturity stage
d. ​decline stage

 

ANSWER:   d
RATIONALE:   A long-run drop in sales signals the beginning of the decline stage. The rate of decline is governed by how rapidly consumer tastes change or substitute products are adopted. See 11-6: Product Life Cycles
POINTS:   1
DIFFICULTY:   Easy
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Remember
BUSPROG: Analytic
Product Life Cycle
DATE CREATED:   5/26/2015 1:00 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   SMHX2709A27AX8R29935
QUESTION ID:   JFND-GO4G-GR3W-KQBW

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJZ-GCAS-ECTU-GY3S-GC5N-GYSU-GCMG-CESU-QATT-GOSU-GAUR-GASU-YA3T-CAAD-E3DD-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

 

57. Nutritreat Industries Corp. is a manufacturer of food products. The company introduced chocolate cookies to the local market. After a period of initial success, the product lost its market and Nutritreat decided to withdraw chocolate cookies from the market. This scenario is an example of the _____ stage of a product life cycle.​

a. ​introduction
b. ​growth
c. ​maturity
d. ​decline

 

ANSWER:   d
RATIONALE:   This scenario is an example of the decline stage of the product life cycle. A long-run drop in sales signals the beginning of the decline stage. Eventually, the product is withdrawn from the market. See 11-6: Product Life Cycles
POINTS:   1
DIFFICULTY:   Challenging
QUESTION TYPE:   Multiple Choice
HAS VARIABLES:   False
LEARNING OBJECTIVES:   MKTG.LAMB.15.11.06
TOPICS:   A-head: Product Life Cycles
Bloom’s: Apply
BUSPROG: Reflective Thinking
Product Decline Stage
DATE CREATED:   5/26/2015 1:04 AM
DATE MODIFIED:   5/26/2015 1:10 AM
CUSTOM ID:   XWDHGJ60YVVXGM4DD593
QUESTION ID:   JFND-GO4G-GR3W-KQKD

 

QUESTION GLOBAL ID:   GCID-E7BW-1TBP-GE5D-1A33-GFTG-KPBW-CA51-4AJI-CJO1-4QJT-CO4N-4CUB-CEHN-4QJS-CA4D-EP3U-GIDI-GWN8-EPRW-EMJA-GJ1G-GPMD-GWHD-YAJS-GCSU-1CJ3-CESU-GP31-GOSU-G3JI-CESS-CP3S-CR5D-QCBU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE