Marketing Final Exam

Does not like to be yelled at since japan is the

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Unformatted text preview: Product licensing e. Product adaptation ANS: E A basic product (shampoo) was changed. PTS: 1 REF: 70 OBJ: 05-5 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Product MSC: BLOOMS Application 86. AFLAC has had to ditch the AFLAC duck in its Japanese commercials because the Japanese consumer does not like to be yelled at. Since Japan is the source of about 70 percent of the insurance company’s business, it had no trouble adopting a _____ strategy. a. product substitution b. market differentiation c. promotion adaptation d. product invention e. market diversification ANS: C AFLAC altered its promotional strategy to reach the Japanese market. PTS: 1 REF: 70 OBJ: 05-5 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Promotion MSC: BLOOMS Application 87. 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. of exchange rate caps c. of price discrimination d. there is a lack of mass purchasing power e. advertising time on television is available for sale in all developed countries ANS: D Developing nations typically do not have mass purchasing power. PTS: 1 REF: 71 OBJ: 05-5 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Pricing MSC: BLOOMS Comprehension 88. The pricing component of the global marketing mix is: a. the same in domestic and foreign markets b. fairly simplistic due to the strength of the U.S. dollar abroad c. the easiest element to implement successfully d. complicated by product penetration strategies e. a complex matter due to tariffs, exchange rates, and transportation costs, insurance, and taxes. ANS: E In domestic pricing decisions, tariffs and exchange rates are not considered. Local government regulations are more likely to be known and understood. These are just some of the issues that make global pricing difficult. PTS: 1 REF: 71-72 OBJ: 05-5 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Pricing MSC: BLOOMS Comprehension 89. 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 practice is called: a. countertrading b. floating exchange rates c. variable purchasing power d. flexible monetary policies e. purchasing power elasticity ANS: B This is the definition of floating exchange rates. PTS: 1 REF: 72 OBJ: 05-5 TOP: AACSB Reflective Thinking KEY: CB&E Model International Perspective | CB&E Model Pricing MSC: BLOOMS Knowledge 90. _____ is generally defined as 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. Export reengineering b. Crossd...
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