The many factors that affect acquisition, usage, and disposition decisions can be classified into four broad domains: the psychological core, the process of making decisions, the consumer's culture, and consumer behavior outcomes.
Indicate whether the statement is true or false
Question 2What is a letter of credit?
a. An instrument issued by a bank at the request of a buyer in which the bank promises to pay a specified amount of money on presentation of documents stipulated in the letter.
b. It is a letter which states that after the seller ships the goods, the shipping documents and the draft demanding payment should be presented to the importer through banks acting as the seller's agent.
c. It is given to shipping companies who have a line of vessels.
d. An instrument of currency issued by a foreign government to the exporter.
Question 3All of the following are opportunities for supplier cost reductions except _____.
a. process capability
b. plant utilization
c. learning-curve effect
d. ability to vote out the supplier's labor union
e. management capability
Question 4When Mattel sells Barbie's younger sister, Kelly, only at Target stores, Mattel is engaging in:
a. A long-term placement strategy.
b. Channel member selection strategy.
c. Exclusive placement strategy.
d. Target market selection strategy.
e. Intermediary selection strategy.
Question 5Which of the following is not true regarding licensing?
a. Licensing is a principal entry mode for the service industry.
b. Licensing permits the company access to closed markets.
c. Licensing may produce a viable competitor in the licensee.
d. All of the above are true.
Question 6The sequence of acquisition, consumption, and disposition does not occur over time.
Indicate whether the statement is true or false
Question 7Which of the following does not apply to freight forwarders?
a. They act as facilitators and advisors and help keeping down some of the export-related costs.
b. They can prepare quotations.
c. They pay for the shipping and absorb the costs.
d. They ensure that unexpected charges do not cause the exporter to lose money.
Question 8In _____, a purchaser may have to use internal engineering estimates about what it costs to produce an item, rely on historical experience and judgment to estimate costs, or review public financial documents to identify key cost data about the seller.
a. reverse price analysis
b. TCO analysis
c. penetration pricing
d. using the PPI
e. competition pricing
Question 9If a manufacturer's products are middle of the road in quality and aimed at the mass market, its distribution strategy should stress:
a. Exclusive distribution.
b. Broad coverage of the market.
c. Very selective distribution.
d. Intensive or exclusive distribution.
e. Regional distribution.
Question 10When a licensee cannot guarantee the product's quality it is preferable for the licensor to
a. export to the market. c. license without the brand name.
b. license with the brand name. d. create a joint venture.
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