____ 25. Laws and regulations of various governments and their ongoing development and change are an example of _____ factors that are part the external environment of all organizations. a. economic investment b. political and legal c. research and development d. competitive e. demographic ____ 26. Refer to E-cigarettes. E-cigarette manufacturers claim they are not trying to sell this product to children. Rather, they are offering an alternative to combustible tobacco for committed smokers. These smokers comprise the manufacturers’: a. target market b. buying center c. consumer cluster d. demographic sample e. mass market ____ 27. Individuals and organizations utilizing a global vision to effectively market goods and services across the world are engaged in: a. international selling schemes b. borderless commerce c. global marketing standardization d. global logistics e. global marketing ____ 28. Many people fear world trade because it: a. will inevitably lead to inflation b. will cause living standards to increase at a slower rate c. causes some people to lose their jobs as production shifts abroad d. has brought entire nations out of poverty e. has increased per capita income for some countries ____ 29. Claiborne, Inc. produces leather accessories for motorcycle riders and is in the first stage of creating its global business. This means that Claiborne: a. operates in one country and sells to others b. has set up a foreign subsidiary c. operates an entire line of business in another country d. has top executives and core corporate functions in different countries e. operates in every country in the world ____ 30. A company that is capital intensive: a. has an altered fiscal strategy for overseas operations b. spends more on equipment than on labor c. makes better use of benchmarking than other types of business d. creates employment monopolies e. must engage in countertrading due to restrictive foreign legislature
____ 49. IBM and Cisco work together to provide banks with the products and services they need to manage their multiple locations. In other words, the two companies have joined in a: a. retail cooperative b. direct investment venture c. transactional relationship d. strategic alliance e. synergistic relationship ____ 50. The demand for consumer goods often affects the demand for business products. This characteristic of business markets is called _____ demand. a. elastic b. inelastic c. fluctuating d. derived e. joint ____ 51. When demand for a product is _____, an increase or decrease in the price of the product will not significantly affect demand for the product. a. responsive b. elastic c. inelastic d. derived e. bundled ____ 52. Electric cars will increase the demand for electricity, which will then dramatically increase demand for the equipment needed to provide consumers with the electricity. This dramatic increase is due to the: a. demand fluctuator principle b. joint demand principle or division effect c. inelastic demand effect d. circumlocution effect e. accelerator principle ____ 53. _____ is the primary promotional method for the sale of all business products. a. Direct mail b. Advertising c. Personal selling d. Public relations e. Trade promotions ____ 54. The three most important evaluative criteria for business-to-business purchases are quality, price, and: a. competitive offers b. service c. reliability d. assurance e. existing relationships ____ 55. In terms of how business buyers evaluate products and suppliers, the most important criterion is: a. price
____ 72. Apple recently updated its iPod Touch product, expanding its storage from 8 GB to 16 GB. Enlarging the iPod Touch’s storage capacity is an example of a: a. product modification b. brand mix extension c. product diversification d. brand repositioning e. demographic modification ____ 73. A regional utility company needs to change consumers’ perceptions of its current service as being harmful to the environment. Which of the following strategies would best allow the company to accomplish this goal? a. Contraction of the number of services offered by the utility company b. Adding new services to its product line c. Repositioning d. Disintermediation e. Use of product cannibalization ____ 74. The value of company and brand names is referred to as: a. brand equity b. brand loyalty c. brand power d. brand equivalency e. brand strength ____ 75. Wal-Mart sells many health and beauty aid products under the name Equate. This brand can only be purchased in Wal-Mart stores and is an example of a(n) _____ brand. a. manufacturers’ b. international c. family d. private e. corporate