KFC has added many offerings to its menus in China to appeal to local tastes, including the

"Dragon Twister," which is a chicken wrap with Peking-duck sauce. This is an example of which
type of global marketing product and promotion strategy?
A. Product Extension
B. Product Customization
C. Product Adaption
D. Product Invention
E. Product Integration D. Product Invention

Tricon was the restaurant division of PepsiCo until it was spun off in 1997. Since then, Tricon
has opened 6,000 KFC restaurants abroad. It has 158 restaurants in Indonesia and more than 500
restaurants in China. All are locally owned and each owner pays a fee to Tricon. Tricon is
engaged in:
A. licensing.
B. direct exporting.
C. indirect exporting.
D. contract manufacturing.
E. foreign assembly. A. Licensing

KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is an
example of which type of global marketing product and promotion strategy?
A. product extension
B..product adaptation
C. product customization
D. product invention
E. product integration B. Product Adaption

Global companies have five strategies for matching products and their promotion efforts to
global markets. Changing a product in some way to make it more appropriate for a country's
climate or preferences is an example of which type of global marketing product and promotion
strategy?
A. the strategy of transnational firms that employ the practice of standardizing marketing
activities when there are cultural similarities and adapting them when cultures differ.
B.the strategy used by firms that use the same product variations, brand names, and advertising
programs for every country in which they do business.
C.the strategy used by firms that have as many different product variations, brand names, and
advertising programs as countries in which they do business.
D. the strategy of seeking out already established firms in other nations and selling them the
rights to manufacture and distribute the firm's products.
E. the strategy currently used by most U.S. domestic firms that when entering a new international
market, these firms offer only those products that require the least amount of product adaptation.
C. the strategy used by firms that have as many different product variations, brand names,
and advertising programs as countries in which they do business.

Which form of entry into a global market makes a firm the most vulnerable to harm regarding its
brand name or reputation?
Answers:
A. direct exporting
B. indirect exporting
C. licensing
D. direct investment
E. joint venture C. licensing

The reverence that Japan shows towards its elderly is an example of that nation's __________.
A. Values
B. beliefs
C. customs
D. religion
E. cultural diversity A. Values

Which of the following statements about bribery is most accurate?

Answers:
A. Bribes, kickbacks, and payoffs offered to entice someone to commit an illegal or improper act
are deemed corrupt in some cultures but not in others.
B. The world's major exporting nations have agreed to treat bribery of foreign government
officials as a violation of trade agreements.
C. Bribes paid to foreign companies is in some cases a tax-deductible expense in the U.S.
D. It is a crime for U.S. corporations to bribe an official of a foreign government or political
party unless pre-approved by the Federal Trade Commission. D. It is a crime for U.S.
corporations to bribe an official of a foreign government or political party unless pre-approved
by the Federal Trade Commission.

Exporting refers to a global market-entry strategy

A. in which a company will sell its products in international markets but not in its own domestic
market.
B. in which a company produces goods in one country and sells them in another country.
C. in which a company will manufacture its product in several countries at the same time using
different brand names and slight product modifications.
D. in which a company will manufacture products specifically designed for non-domestic
markets, but will sell those products to distributors who take title and resell the products to
different companies around the world.
E. whereby a product is made in one country, assembled in a second country, and ultimately
marketed to a third country. B. in which a company produces goods in one country and sells
them in another country.

In terms of the global marketplace, there are three primary types of companies: __________
firms, multinational firms, and transnational firms.
A. worldwide
B. conglomerate
C. intercontinental
D. international
E. cosmopolitan D. international
A multidomestic marketing strategy refers to:

A. the strategy of transnational firms that employ the practice of standardizing marketing
activities when there are cultural similarities and adapting them when cultures differ.
B. the strategy used by firms that use the same product variations, brand names, and advertising
programs for every country in which they do business.
C. the strategy used by firms that have as many different product variations, brand names, and
advertising programs as countries in which they do business. C. the strategy used by firms
that have as many different product variations, brand names, and advertising programs as
countries in which they do business.

Concert Staging Company provides the stage, roof system, lighting and sound for outdoor
concerts and theatrical events. The number of concert and theater events sponsored by various
organizations determines how many times the company is hired to provide its services, which
often depends on consumer willingness to buy event tickets. Demand for the services provided
by Concert Staging Company is would be considered __________.
A. derived
B. unitized
C. industrial
D. applied
E. reseller A. Derived

Organizational buyers can be divided into three different markets, which are
A. industrial, wholesaler, and retailer.
B. industrial, retailer, and government.
C. retailer, manufacturer, and government.
D. industrial, government, and ultimate consumer.
E. industrial, reseller, and government. E. industrial, reseller, and government

All of the following are organizational buyers EXCEPT:

A. industrial firms.
B. government units.
C. ultimate consumers
D. resellers.
E. wholesalers. C. Ultimate Consumers

Airbus manufactures commercial aircraft that it sells to a variety of airlines worldwide. Still,
demand for its products often depends on rates of air travel among consumers. Demand for
Airbus products is referred to as __________ demand.
A. unitized
B. reseller
C. applied
D. implied
E. derived E. Derived
Mining companies, farms, financial services, and fisheries are all examples of
A. consumer markets.
B. cooperative markets.
C. reseller markets.
D. industrial markets.
E. government markets. D. Industrial markets

Merrill Lynch and Thompson Financial had a three-year, $1 billion project that put workstations
on the desks of 25,000 of Merrill Lynch's brokers. These machines put the world of investing
information at brokers' fingertips. Thompson, the supplier, was obligated to not only deliver
technology and services on time and on budget, but also constantly improve customer-
satisfaction levels among Merrill's brokers and customers. This is an example of:
A. a reciprocity agreement.
B. exclusive dealing.
C. supplier alliance.
D. a buyer-seller relationship.
E. a tying arrangement. D. a buyer-seller relationship.

The NAICS provides common industry definitions for

A. Canada, England, and the United States.
B. North America, Asia, and Europe.
C. North America, Central America, and South America.
D. Canada, England, Australia.
E. Canada, Mexico, and the United States. E. Canada, Mexico, and the United States

Organizational buying behavior is similar to consumer behavior in some ways and different in
others. One commonality is that both
A. use the same five stages in the purchase decision process.
B. use formal vendor rating when choosing among alternative brands.
C. are affected by derived demand.
D. have virtually unlimited options for suppliers.
E. rely on gatekeepers to control product information. A. Use the same five stages in the
purchase decision process

General Electric manufactures electric motors for its clothes dryers. The firm uses a formal
vendor rating system to evaluate suppliers and notify those whose parts did not meet quality
standards. If a supplier fails to correct the problem, GE will drop it as a future supplier. Which
stage in the organizational buying decision process would GE make this evaluation?
A. Purchase Decision stage
B. Information Search stage
C. Post-purchase Behavior stage
D. Alterative Evaluation stage
E. Problem Recognition stageC. Post- purchase Behavior Stage

Keystone Foods, which invented the individual quick freeze process for beef, provides
McDonald's with millions of pounds of chicken, beef, and fish annually for use in its restaurants.
The firm sources the animal proteins from farms and processes them in a variety of ways, such as
breading or freezing, before selling them to McDonald's. Keystone is operating in a(n)
__________ market.
A. Consumer
B. Government
C. Service
D. Industrial
E. Reseller D. Industrial

A firm that views the world as consisting of unique parts and markets to each part differently is
referred to as a(n)
A. Meganational firm
B. Extranational firm
C. International firm
D. Multinational firm
E. Transnational firm D. Multinational firm

Russia currently has a limit on pork of 400,000 metric tons annually that can be imported from
any country. This restriction would be considered a
A. tariff.
B. trade imbalance.
C. excise tax.
D. quota.
E. subsidy. D. Quota

U.S. citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more
for rice than the actual cost of the products because
A. both countries have suffered major financial crises due a severe trade imbalance
B. both countries have imposed tariffs on imported goods to protect their domestic markets
C. both countries have imposed limits on the quantity of these goods that can leave their
respective domestic markets.
D. both products are considered essentials and as a result are more heavily taxed.
E. these products were purchased at a lower price from nations that currently are under
governmental sanctions. B. Both countries have imposed tariffs on imported goods to
protect their domestic markets

A firm's profit potential and control over marketing activities __________ as it moves from
exporting to direct investment as a global market-entry strategy.
A. becomes more stable
B. increases
C. levels off
D. decreases
E. becomes more unpredictable B. Increases

What is considered normal and expected about the way people do things in a specific country is
referred to as __________.
A. morals
B. ethics
C. values
D. customs
E. beliefs D. Customs

Global companies have five strategies for matching products and their promotion efforts to
global markets. Changing a product in some way to make it more appropriate for a country's
climate or preferences is an example of which type of global marketing product and promotion
strategy?
A. product extension
B. product customization
C. product adaption
D. product invention
E. product integration D. Product invention

Walmart asked that Procter & Gamble (P&G) electronically link to its computerized cash
register scanning system, allowing for direct electronic ordering and replenishing for all of its
stores. This way, Walmart can tell P&G what merchandise it needs, along with how much, when,
and to which store to deliver on a daily basis. Walmart is engaged in __________.
A. ISO 9000 certification
B. ISO 14000 certification
C. a supply partnership
D. sustainable development
E. cause marketing C. a supply partnership

All of the following statements about the purchase involved in organizational buying are true
EXCEPT:

A. the length of time required to arrive at a purchase agreement can vary with size of purchase.
B. the dollar value of a single purchase made by an organization often runs into thousands or
millions of dollars.
C. the size of purchase impacts who participates in the purchase decision.
D. the size of purchase impacts who makes the final decision.
E. the size of the purchase involved in organizational buying is typically smaller than that in
consumer buying but it is done more frequently. E. the size of the purchase involved in
organizational buying is typically smaller than that in consumer buying but it is done more
frequently.

Archer Daniels Midland Co. (ADM) is the world's largest cocoa-bean processor. It buys cocoa
beans and converts them into cocoa powder and cocoa butter, which it then sells to companies
like Hershey's that manufacture consumer products containing chocolate. ADM is operating in
a(n) __________ market.
A. consumer
B. government
C. service
D. reseller
E. industrial E. Industrial

Derived demand refers to

A. a graph relating the quantity sold and price, which shows the maximum number of units that
will be sold at a given price.
B. the demand for industrial products and services that is driven by the demand for consumer
products and services
C. the relationship between total revenue and total cost to determine profitability at various
levels of output.
D. the point on a demand curve where supply and demand intersect.
E. the percentage change in quantity demanded relative to a percentage change in price. B. the
demand for industrial products and services that is driven by the demand for consumer products
and services

In a buying center, __________ affect the buying decision, usually by helping define the
specifications for what is bought.
A.gatekeepers
B. deciders
C. buyers
D. influencers
E. users D. influencers

Firms selling consumer products or services often try to reach thousands or millions of
individuals or households. Firms selling to organizations,
A. try to reach tens of millions of wholesalers, retailers, and government units.
B. are restricted to far fewer buyers.
C. hope to obtain similar numbers of business customers, or even more.
D. do not have customers, per se.
E. simultaneously purchase from organizational buyers and ultimate consumers. B. are
restricted to far fewer buyers.

Starbucks purchases from coffee growers located in more than 20 countries. It pays the coffee
farmers a fair price for the beans, the coffee is grown in an ecologically sound manner, and
Starbucks invests in the farming communities where the coffees are produced. This is an
example of
A. green marketing.
B. ISO 14000 certification.
C. Sustainable procurement
D. ecological procurement.
E. cause marketing. C. Sustainable procurement

Federal, state, and local agencies that buy products and services for the constituents they serve
are referred to as
A. Industrial Markets
B. Reseller Markets
C. Consumer Markets
D. Government Units
E. Global Markets D. Government Units

In terms of organizational buying, Amazon.com, Lands' End, and JCPenney would most likely
be classified as
__________.
A. government units
B. resellers
C. manufacturers
D. wholesalers
E. industrial firms B. resellers

In Latvia, only one six-lane highway exists, connecting Riga, its capitol, with Moscow.
Otherwise, the roads are two-lane and many are made of cobblestones or bricks. This limits the
speed with which deliveries can be made and requires that delivery trucks be quite small. The
road network in Latvia is an example of problems with a country's
A. capital improvements.
B. fixed-asset base.
C. geopolitical wealth.
D. asset wealth.
E. Economic infrastructure E. economic infrastructure

For the marketer, a thorough __________ involves an understanding of and an appreciation for
the values, customs, symbols, and language of other societies.
A. market synthesis
B. international sociographic study
C. anthropological examination
D. cross-cultural analysis
E. ethnocentrism assessment D. cross-cultural analysis

A gray market refers to

A. the segment of products specifically designed for the need of older buyers.
B. a once active and powerful market that is rapidly becoming the bottom of the barrel.
C. a situation where products are sold through unauthorized channels of distribution
D. a pricing structure that is based upon haggling that is considered acceptable in some countries
but not others
E. the willingness of one party to accept gifts in exchange for better prices or price allowances.
C. situation where products are sold through unauthorized channels of distribution

The strategy transnational firms employ that standardizes marketing activities when there are
cultural similarities and adapts them when cultures differ is referred to as a(n)
A. global marketing strategy.
B. integrated marketing strategy.
C. transnational marketing strategy.
D. meganational marketing strategy.
E. international marketing strategy. A. Global Market strategy

At which stage of the organizational buying decision process would design and production
engineers draft specifications?
A. problem recognition
B. information search
C. alternative evaluation
D. purchase decision
E. value analysis B. information search

In an effort to make better and more efficient purchase decisions, the Ford Motor Company
includes various people in them, depending on the purchase situation. Individuals may include
key personnel from various departments, including research and development, finance,
marketing, shipping, and sales. This is a description of Ford's __________.
A. selling committee
B. sustainable procurement department
C. purchasing unit
D. buying center
E. buying committee D. buying center

When Trek orders a seat or saddle for one of its models that has a slightly different material for
the cover only but the other components are the same as existing saddles used on other bikes, this
purchase situation is known as a __________.
A. new buy
B. straight rebuy
C. standard reorder
D. modified rebuy
E. make-buy D. modified rebuy

Becca, an office manager for a small construction company, met with representatives from
Xerox and Minolta, along with the President and the accountant, to compare options for a new
copier for the office. Since she made most of the copies, Becca wanted to see the features of the
machines, though her boss would have to approve the final purchase. Becca has what role in the
buying center?
A. purchasing agent
B. decider
C. buyer
D. user
E. motivator D. user

Because orders in organizational buying are typically much larger than in consumer buying,
buyers must often __________ when the order is above a specific amount, such as $5,000
A. pay estimated sales taxes in advance
B. move up the time required to execute a purchase agreement
C. get competitive bids from at least three prospective suppliers
D. forgo the purchase because senior management is unlikely to approve it
E. forgo identifying the members of the supplying center and their roles in the selling process
C. get competitive bids at least three prospective suppliers

According to the textbook, JCPenney buys paper for which of the following medium(s)?
A. in-store signage
B, special advertising inserts in magazines such as Cosmopolitan
C. newspaper inserts and direct mail pieces
D. annual and 10K reports
E. point-of-purchase displays C. newspaper inserts and direct mail pieces

U.S. citizens pay $5 billion more annually for shoes and Japanese citizens pay $6 billion more
for rice than the actual cost of the products because
A. both countries have suffered major financial crises due a severe trade imbalance
B. both countries have imposed tariffs on imported goods to protect their domestic markets.
C. both countries have imposed limits on the quantity of these goods that can leave their
respective domestic markets.
D. both products are considered essentials and as a result are more heavily taxed.
E. these products were purchased at a lower price from nations that currently are under
governmental sanctions. B. both countries have imposed tariffs on imported goods to
protect their domestic markets.

Apple, Inc. custom orders the microprocessors for its iMac, iPhone, and iPad. Intel makes chips
for the iMac and Samsung produces Apple-designed chips for the iPhone and iPad. Intel and
Samsung work with Apple to minimize costs for each of them while maximizing quality,
ultimately giving customers good value for their money. This is an example of a(n)
A. symbiotic partnership.
B. make-buy decision.
C. reciprocal agreement
D. Supply partnership
E. Exclusive dealing D. Supply partnership

An industrial firm
A. is one that is independently owned and takes title to the merchandise it sells.
B. buys physical goods and resells them again without any reprocessing.
C. deals exclusively with federal, state, and local governments.
D. in some way reprocesses a product or service it buys before selling it again to the next buyer
E. only produces a product, not a service. D. in some way reprocesses a product or service it
buys before selling it again to the next buyer.

At which stage of the organizational buying decision process would a firm use key
organizational buying criteria such as price, quality, delivery time, and technical capability to
select a supplier?
A. problem recognition
B. information search
C. purchase decision
D. purchase review
E. alternative evaluation C. purchase decision

All of the following are roles in a buying center EXCEPT:

A. specifiers.
B. deciders.
C. buyers.
D. influencers.
E. users. A. specifiers