Reference no: EM13746375

Question 1: Which of the following statements about the service sector of the American economy is true?

A. Over the next two decades the service sector in the U.S. will decline in monetary importance.

B. The service sector accounts for fewer than 30 percent of all jobs in the U.S.

C. Spending in the service sector today captures almost 20 cents of every consumer dollar.

D. The service sector in the U.S. produces a balance-of-trade surplus annually.

Question 2: Which of the following is the BEST example of a service product?

A. Your motel stay

B. Permission from the hotel to pay for your stay with a credit card

C. The toll-free number you call to check on your motel reservation

D. The delivery of your luggage to the motel room

Question 3: Which of the following is the BEST example of a service?

A. Surgery to correct nearsightedness

B. The complementary newspaper left outside your hotel room door

C. A transcontinental airplane trip

D. Repairs made to your lawn mower

Question 4: During Jack and Leah's first visit to the marriage counselor, Jack inspected all of the diplomas and certificates the counselor had prominently displayed on her wall. The most likely reason why the counselor displayed her diplomas and certificates was to:

A. comply with government regulation.

B. provide tangible evidence of her ability to perform the service required.

C. reduce the probability of fluctuating demand.

D. differentiate her counseling service from all other services.

Question 5: The promotional element of the traditional marketing mix is more important for services than it is for goods because services are:

A. homogeneous.

B. inventoried.

C. intangible.

D. simultaneously demanded and supplied.

Question 6: Services that are __________, and markets for these services, fluctuate by season, days, or time of day.

A. tangible

B. intangible

C. perishable

D. insufficient

Question 7: Tangibles include:

A. perishable goods.

B. the physical evidence of the services.

C. cyclical stability.

D. demographic factors.

Question 8: Off-peak pricing:

A. is used to overcome problems associated with the homogeneity of services.

B. is a strategy used to deal with fluctuating demand for services.

C. creates time, place, and form utility.

D. is used to separate the service provider from the service.

Question 9: If you were asked to distinguish between a service and a good, you could correctly say:

A. the customer is the end user for services, and the co-producer for goods.

B. collaboration between buyer and seller is highest for goods.

C. a greater number of brands of services are available than brands of goods.

D. the customer owns a good, but owns the memory of a service.

Question 10: Which of the following statements about products and services is true?

A. Collaboration is higher between the buyer and seller of a product, than between the buyer and seller of a service.

B. The goal of producing a service is uniqueness; the goal of producing a product is uniformity.

C. Quality control activities for both services and products compare expectations to experience.

D. With both products and services, the consumer is the end user and not involved in the production process.

Question 11: Which of the following is an example of a defensive strategic goal that might be used to explain why MTV developed MTV European, a pan-European cable and satellite system that transmits music-based programming across the continent?

A. To maximize its total sales revenues

B. To improve its overall market position

C. To increase its long-term growth and profit prospects

D. To preempt competitors' global moves

Question 12: There is a small, but growing, market for golfing equipment in China. Which of the following is an example of a defensive strategic goal that can be used to explain why American manufacturers of golfing equipment like Wilson and Titleist are eager to export their products to the Chinese?

A. To improve overall market position

B. To increase long-term growth and profit prospects

C. To avoid being locked out of markets by arriving too late

D. To take advantage of economies of scale

Question 13: ExxonMobile opened its first On the Run store in Chile. The store combines the familiar pumping islands out front, convenience stores, and separate food courts. The success of that store led to the opening of more than 300 On the Run stores worldwide. Which of the following is an example of an offensive strategic goal that can explain why ExxonMobil developed On the Run stores?

A. To increase long-term growth and profit prospects

B. To take advantage of significant differences in operating costs between countries

C. To preempt competitors from opening similar stores

D. To avoid being locked out of markets by arriving too late

Question 14: Which of the following is an example of an offensive strategic goal that might be used to explain why Eastman Kodak is eager to expand into new international markets?

A. To preempt its competitors' global moves

B. To increase its long-term growth and profit prospects

C. To compete with foreign companies on their own turf instead of in the United States

D. To take advantage of significant differences in operating costs in other countries

Question 15: When Procter & Gamble introduced Pampers disposable diapers in Japan, it used basically the same pricing strategy as it used in the United States. P&G did not realize the typical Japanese mother changes her baby about 14 times a day - twice as often as her U.S. counterpart. Thus, Pampers were too expensive for the Japanese market. What kind of a problem did P&G experience when it introduced Pampers?

A. Cultural misunderstanding

B. Communications divergence

C. Too heavy an emphasis on penetration pricing

D. Promotional dichotomy

Question 16: Which of the following describes a problem a company can experience when entering a foreign market?

A. Cultural misunderstandings

B. Import restrictions

C. Political uncertainty

D. All of the above

Question 17: Exchange controls are usually used by:

A. companies that are intermittent exporters.

B. industries that are selling commodities.

C. nations with a strong service sector.

D. nations that are experiencing balance-of-payment problems.

Question 18: __________ companies pursue different strategies in each of their foreign markets. They could have as many different product variations, brand names, and advertising campaigns as countries in which they operate.

A. Multidomestic

B. Transnational

C. Global

D. Ethnocentric

Question 19: Breath Right nasal strips are adhesive pads with a small spring inside that, when attached to the nose, pull the nasal passages open and make it easier to breathe. Their manufacturer, CNS, Inc., sells the nasal strips to countries on four different continents by using standardized marketing activities. CNS, Inc., is an example of a(n) __________ company.

A. multidomestic

B. transnational

C. global

D. ethnocentric

Question 20: How does the multidomestic corporation differ from the global corporation?

A. The multidomestic companies rely on management teams made up of nationals; global corporations use management teams from the home office.

B. Multidomestic companies are highly centralized, while global corporations are highly decentralized.

C. Multidomestic companies use a standardized marketing strategy; globalized companies use an adaptive marketing strategy.

D. Multidomestic companies pursue different strategies in each of their foreign markets; globalized companies use the same strategy regardless of boundaries.