International Marketing An Asia Pacific

Perspective Australian 6th Edition

Fletcher Test Bank
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Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) Drivers of guanxi include all of the following EXCEPT: 1)

A) Elitism
B) Collectivism
C) Infrastructure shortcomings
D) Lack of governance mechanisms
E) Information access
Answer: A
Explanation: A)
B)
C)
D)
E)

2) A significant difference between relationship marketing in Western countries and relationship 2)

marketing in Asian countries is that in Western countries:
A) Relationships drive performance
B) Relationships are opportunistic
C) Relationships are predominantly driven by non financial concerns
D) The main emphasis is on personal relationships
E) Performance drives relationships
Answer: E
Explanation: A)
B)
C)
D)
E)

3) Guanxi literally means the ________ to ________. 3)

A) Doorway; Relationships
B) Gate; Relationships
C) Doorway; Connections
D) Gate; Connections
E) None of the above
Answer: D
Explanation: A)
B)
C)
D)
E)

1
4) ________ and ________ are examples of sequential approaches to internationalisation. 4)
A) Contingency; stages
B) Linear; stages
C) Learning; stages
D) Linear; contingency
E) Learning; contingency
Answer: C
Explanation: A)
B)
C)
D)
E)

5) A marketing relationship can be characterised as virtual where: 5)

A) A significant amount of activity between relationship partners occurs outside the
organisational domains
B) A significant amount of activity between relationship partners is in a non-face-to-face
context
C) The management orientation between relationship partners follows a command and control
model
D) All of the above
E) Options A and B only
Answer: E
Explanation: A)
B)
C)
D)
E)

6) CRM is directly related to networks because: 6)

A) It involves harnessing the international network in which the firm is embedded to serve the
customer
B) Members of the network provide marketing-related services that help create and satisfy the
demand of international customers
C) Members of the networks supply the inputs
D) All of the above
E) Options A and C only
Answer: D
Explanation: A)
B)
C)
D)
E)

2
7) Which of the approaches to internationalisation argues that 'the firm evaluates and responds to an 7)
opportunity as it occurs, regardless of whether the market is close in psychic distance terms or
whether an advanced mode of entry is required'?
A) Contingency approach
B) Learning approach
C) Stages approach
D) Concurrent approach
E) Network approach
Answer: A
Explanation: A)
B)
C)
D)
E)

8) A key reason for building international networks is to create the necessary infrastructure for: 8)
A) Consistent international branding
B) Influencing international trade policy
C) Accessing international resources
D) Achieving economies of scale
E) Effective competition in international markets
Answer: E
Explanation: A)
B)
C)
D)
E)

9) Firms usually internationalise because they wish to: 9)

A) Access factors of production on a more cost-competitive basis
B) Achieve economies of scale in sourcing and production
C) Gain exposure to new ways of doing business
D) All of the above
E) Options A and B only
Answer: D
Explanation: A)
B)
C)
D)
E)

3
10) The common element of relationship marketing and neo-relationship marketing is: 10)
A) Integration
B) Co-production
C) Interdependency
D) Co-location
E) Intercommunication
Answer: C
Explanation: A)
B)
C)
D)
E)

11) Guanxi is manifested in: 11)

A) Profit orientation
B) Human obligation
C) Transactional relationships
D) Financial obligation
E) Options A and C only
Answer: B
Explanation: A)
B)
C)
D)
E)

12) CRM is designed to increase customer satisfaction and: 12)

A) Optimise profit
B) Create brand loyalty
C) Maximise customer contact
D) Minimise customer defection
E) Reduce customer dissatisfaction
Answer: E
Explanation: A)
B)
C)
D)
E)

13) Activity links refer to: 13)

A) the flow of goods and services across the network
B) the interpersonal contacts between those involved in partner relationships
C) the financial, commercial, technical and administrative links formed between companies as
part of their interactions
D) the ability of members of a network to interact on a commercial basis
E) the exchanges which occur between different network members
Answer: C
Explanation: A)
B)
C)
D)
E)

4
14) A key strategic element in a typical relationship marketing approach is to: 14)
A) Leverage off new technologies to analyse customer behaviour
B) Redefine the business as a service business and the key competitive element as service
competition
C) Engage in continuous customer contact
D) Create loyalty based incentives for customers based on frequency and regularity of purchases
E) Create large databases of customer needs
Answer: B
Explanation: A)
B)
C)
D)
E)

15) Compared to relationships, networks tend to be: 15)

A) More focussed
B) Looser arrangements
C) More formalised legal arrangement
D) Smaller in scope
E) Tighter arrangements
Answer: B
Explanation: A)
B)
C)
D)
E)

16) Internationalisation can be classified into the following approaches: 16)

A) Stages, commitment, experience, network
B) Stages, experience, contingency, global
C) Stages, contingency, network, financial
D) Stages, commitment, eclectic, network
E) Stages, learning, contingency, network, holistic
Answer: E
Explanation: A)
B)
C)
D)
E)

17) The network model involves interdependence between: 17)

A) activity links, competitor networks, resource ties
B) market players, member needs, network ties
C) competitor networks, resource ties, member needs
D) actor bonds, action links, competitor networks
E) actor bonds, activity links, resource ties
Answer: E
Explanation: A)
B)
C)
D)
E)

5
18) Which of the following is an inward form of entry into international markets? 18)
A) Export agent
B) Strategic alliance
C) Franchisor overseas
D) Co-operative manufacturing
E) Buying agent
Answer: E
Explanation: A)
B)
C)
D)
E)

19) Which of the following is an example of a network approach to: internationalisation? 19)
A) International extension
B) International penetration
C) International integration
D) All of the above
E) Options A and B only
Answer: D
Explanation: A)
B)
C)
D)
E)

20) Exchanges in a relationship approach are based on ________ rather than ________. 20)
A) Co-existence; co-operation
B) Co-operation; collaboration
C) Co-operation; competition
D) Collaboration; conformity
E) Co-operation; collaboration Collaboration; competition
Answer: E
Explanation: A)
B)
C)
D)
E)

21) Learning approaches to internationalisation recognise that internationalisation is a ________ 21)

process.
A) Static
B) Dynamic
C) Linear
D) Contingent
E) Concurrent
Answer: B
Explanation: A)
B)
C)
D)
E)

6
22) The home country market factors that can influence a firm's decision to internationalise include: 22)
A) Management interest, openness, niches
B) Niches, location, experiences
C) Large size, openness, niches
D) Openness, location, small size
E) Small size, location, management interest
Answer: D
Explanation: A)
B)
C)
D)
E)

23) There has been a growing interest in sustainability because of: 23)
A) The increasing importance of citizen-based activities
B) Greater social awareness among customers
C) Increased competition among firms causing some to use CSR as a market positioning strategy
D) Globalisation and advances in information technology
E) All of the above
Answer: E
Explanation: A)
B)
C)
D)
E)

24) Which of the following is a reason for the increased popularity of strategic alliances in international 24)
marketing?
A) Reduced R & D costs
B) Ability to overcome protectionism
C) Economies of scale
D) All of the above
E) Options A and B only
Answer: D
Explanation: A)
B)
C)
D)
E)

25) Strategic alliances improve international competitiveness by: 25)

A) Targeting promotions by creating country specific advertising
B) Focussing on multiple national markets with unique offerings
C) Introducing products sequentially across multiple markets
D) Lowering costs by focussing on core competencies
E) All of the above
Answer: D
Explanation: A)
B)
C)
D)
E)

7
26) In the international marketing context, competition usually occurs between: 26)
A) Conglomerates
B) Companies
C) Brands
D) Actors
E) Networks
Answer: E
Explanation: A)
B)
C)
D)
E)

27) Which of the following is a key tactical element of a relationship strategy? 27)
A) Seeking direct contacts with customers are other stakeholders
B) Developing a customer oriented service system
C) Building up a database covering necessary information about customers and others
D) All of the above
E) Options A and B only
Answer: D
Explanation: A)
B)
C)
D)
E)

28) 'Atmosphere' in the network model encompasses: 28)

A) Trust, power and commitment
B) Trust, commitment and reciprocity
C) Trust, power and dependency
D) Trust, power and reciprocity
E) Trust, power and faith
Answer: C
Explanation: A)
B)
C)
D)
E)

29) Fletcher's model of international behaviour consists of which three modes of entry into 29)
international markets?
A) Outward forms, relationship forms, inward forms
B) Outward forms, combined forms, inward forms
C) Outward forms, linked forms, inward forms
D) Outward forms, central forms, inward forms
E) Outward forms, consolidated forms, inward forms
Answer: C
Explanation: A)
B)
C)
D)
E)

8
 30) The ________ approach to internationalisation is the only one with the capacity to cater for more 30)
advanced forms of international market entry
A) Learning
B) Network
C) Stages
D) Contingency
E) All are able to cater for advanced forms of international entry
Answer: B
Explanation: A)
B)
C)
D)
E)

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

31) A strategic alliance is a linked mode of market entry. 31)

Answer: True False
Explanation:

32) Reciprocity in relationship marketing refers to the fact that each party is knowledgeable about the 32)
other and draws on this information when solving problems.
Answer: True False
Explanation:

33) In guanxi transactions come first followed by relationships. 33)

Answer: True False
Explanation:

34) A 'late starter' firm is one which has a considerable amount of international expertise and is 34)
therefore likely to experience little difficulty in entering a country's networks.
Answer: True False
Explanation:

35) A key difference between relationship marketing and neo relationship marketing is that neo 35)
relationship marketing is based on dyadic relationships.
Answer: True False
Explanation:

36) In the learning approach to internationalisation firms evaluate and respond to opportunities as they 36)
occur regardless of psychic distance.
Answer: True False
Explanation:

37) The stages and learning approaches to internationalisation are both examples of a sequential 37)
approach to entering an international market.
Answer: True False
Explanation:

9
38) Horizontal networks comprise of firms that contribute different expertise to a collaborative 38)
venture.
Answer: True False
Explanation:

39) Host country market factors that encourage internationalisation include the large size of the 39)
market, niche opportunities and openness.
Answer: True False
Explanation:

40) Customer relationship management is important for international firms because they are located 40)
close to their customers.
Answer: True False
Explanation:

41) International corporate social responsibility is based on the notion that all firms must comply with 41)
the environmental laws of their international partner countries.
Answer: True False
Explanation:

42) The virtual organisation is a special case of the network approach to internationalisation. 42)
Answer: True False
Explanation:

43) The common element in the linkage between relationship marketing and networks is the 43)
interdependence of relationships.
Answer: True False
Explanation:

44) 'Actors' is NOT one of the components of the network model. 44)
Answer: True False
Explanation:

45) Firms often use international corporate social responsibility as a marketing tool to differentiate 45)
themselves in the market.
Answer: True False
Explanation:

46) The network paradigm emphasises the role of linkages and relationships in the international 46)
process.
Answer: True False
Explanation:

47) The three components of the network model are actors, activities and resources. 47)
Answer: True False
Explanation:

48) Having a buying agent is an example of an outward mode of market entry. 48)
Answer: True False
Explanation:

10
 49) In the international marketing domain, CRM is a company-wide process that affects decisions 49)
relating to pricing, product development, communications, resource allocation and customer
support services.
Answer: True False
Explanation:

50) Three modes of entry based on the firm's established position in international networks are 50)
international extension, international penetration and international integration.
Answer: True False
Explanation:

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

51) What are the advantages of adopting a network approach to internationalisation? What types of firms are most
likely to succeed using this model?
Answer:

52) Discuss how the growth in networks in B2C contexts is impacting on a firms approach to international customer
relationship management?
Answer:

53) Explain what is meant by the terms outward, inward and linked modes of market entry. How do these different
modes interact in practice?
Answer:

54) Discuss the different bonds or ties that create the interdependence between the different actors of the network
model.
Answer:

55) Relationship marketing and networks are particularly important when dealing with Asian trade partners. How
does relationship marketing link in with relationships?
Answer:

56) Why do firms internationalise? Discuss with reference to a firms internal factors, global factors, host country
factors and home country factors.
Answer:

57) In your opinion, is the sequential or non-sequential approach to internationalisation more effective? Justify
your answer and give examples of companies that have succeeded using either or both approaches.
Answer:

58) Outline the four key approaches to internationalisation. Give examples of each approach in action.
Answer:

59) Explain how a firm's international corporate social responsibility is influenced by its international networks.
Answer:

60) Explain the concept of guanxi and why it is important for the development of international marketing relations.
Answer:

11
Answer Key
Testname: C10

1) A
2) E
3) D
4) C
5) E
6) D
7) A
8) E
9) D
10) C
11) B
12) E
13) C
14) B
15) B
16) E
17) E
18) E
19) D
20) E
21) B
22) D
23) E
24) D
25) D
26) E
27) D
28) C
29) C
30) B
31) TRUE
32) FALSE
33) FALSE
34) FALSE
35) FALSE
36) FALSE
37) TRUE
38) FALSE
39) TRUE
40) FALSE
41) FALSE
42) TRUE
43) TRUE
44) FALSE
45) TRUE
46) TRUE
47) TRUE
48) FALSE
49) TRUE
50) TRUE
12
Answer Key
Testname: C10

51)
52)
53)
54)
55)
56)
57)
58)
59)
60)

13