IMANET IMANET Certifications IMANET-CMA Questions & Answers

• Question 1111:

  The least risky method of entering a market in a foreign country is by:

  A. Indirect exports

  B. Licensing

  C. Direct exports

  D. Direct investments

  Correct Answer: A

  An indirect export strategy operates through intermediaries; such as home-country merchants who buy and resell the product, home-country agents who negotiate transactions with foreign buyers for a commission, cooperatives that represent groups of sellers, and export-management firms that receive fees for administering the firm's export efforts. Indirect export requires lower investment than direct export and is less risky because of the intermediate's expertise

• Question 1112:

  Many retail stores have found that it is more profitable to sell a product carrying the store's brand name as opposed to the more well-known brands. This is an example of a

  A. Manufacturer's brand

  B. National brand

  C. Private brand

  D. Co-brand

  Correct Answer: C

  When a manufacturer agrees to place a retail store's own name on a product, it is referred to a s a private brand.

• Question 1113:

  A service firm may improve productivity by

  A. Creating a product that reduces the need for a service

  B. Increasing the quality of a given quantity of service

  C. Avoiding the trap of treating the service as a manufacturing process

  D. Performing more tasks using highly trained employees

  Correct Answer: A

  Service firms may improve productivity by. (1) hiring and training better employees;(2) changing the quantity-quality tradeoff ratio;(3) treating the performance of the service as a manufacturing process;(4) creating a product (for example, permanent press clothing) that reduces the need for a service; (5) performing more substitute services (e.g., allowing a nurse practitioner to do some physician's work); (6) giving customers reasons to provide labor (e.g., ATMs); and (7) using technology effectively and efficiently.

• Question 1114:

  Quality control of services should be managed by

  A. Separating the performance of services from their consumptions

  B. Emphasizing customer attraction rather than satisfaction

  C. Standardizing the firm's services

  D. Adopting selective hiring practices and allowing those employees to use judgment in performing services

  Correct Answer: C

  Services vary greatly in quality. Accordingly, quality control must be managed effectively by selective hiring, strong training programs, standardizing the firm's services, and researching customer satisfaction

• Question 1115:

  Which of the following is a true statement about packaging?

  A. A customer ordinarily will not pay more for a better package

  B. The package advertises the firm's and brand's image

  C. Packaging identifies and describes the product and gives usage instructions

  D. The package only provides the benefits associated with shipping and product protection

  Correct Answer: B

  Packaging is an element of the product strategy. It consists of designing and producing the container. The package also advertises the firm's and the brand's image. An effective package makes a good general impression, attracts attention, is descriptive, and instills confidence.Moreover, a customer may pay more for a better(more convenient, dependable, or prestigious) package. Thus, an invention of a new type of package may provide greater customer value, e.g., a better way of dispensing the product.

• Question 1116:

  According to the Kotler, what is the positive differential effect that knowing the brand name has on customer response to the product or service?

  A. Brand valuation

  B. Customer equity

  C. Brand equity

  D. Customer lifetime value

  Correct Answer: C

  According to Kotler, brand equity is "the positive differential effect that knowing the brand name has on customer response to the product or service." It may be measured by the incremental price a customer will pay for the product

• Question 1117:

  Upmarket stretching mat reflect

  A. A search for greater profit margins

  B. A way to provide lower-priced products

  C. A middle market firm's move into the upmarket and the downmarket

  D. A way to add products within the firm's current range

  Correct Answer: A

  Upmarket stretching may reflect a search for growth, greater profit margins; or positioning as a full product line seller

• Question 1118:

  The attribute of the product mix that equals the number of variants of each product is

  A. Length

  B. Depth

  C. Width

  D. Consistency

  Correct Answer: B

  The product mix is the product assortment. Analysis of the attributes of the mix helps the firm top determine its marketing strategy and make decisions about its product lines. The following are the attributes: (1) width is the number of product lines; (2) length equals the total items in the mix; (3) depth equals the variants (e.g., flavors of ice cream) of each product, and (4) consistency is the degree of the relationship of the product lines.

• Question 1119:

  Basic product , expected product, augmented product, and potential product are

  A. Elements of the customer value hierarchy

  B. Items in the product hierarchy

  C. Product classifications

  D. Product lines

  Correct Answer: A

  A product may be analyzed in terms of the customer value hierarchy. (1) core benefits (e.g., transportation), (2) basic product (car that functions), (3) expected product (a car with standard features and quality) , (4) augmented product (a car that exceeds expectations), and (5) potential product (a car that reflects every possible augmentation and new ways to differentiate the product)

• Question 1120:

  Nonprice competitive differentiation of a firm's services may be achieved by

  l.

  A superior image ll. Varying the offering lll. Innovation lV. Improving reliability

  A.

  ll and lll only

  B.

  l, ll, and lV only

  C.

  l, lll and lV only

  D.

  l, ll, lll and lV

  Correct Answer: D

  Nonprice competitive differentiation is a major issue for services firms. It may be achieved by (1) varying the offering by including secondary service features with the primary service features;(2) improving delivery through greater reliability, resilience (e.g., coping with customer inquiries, recalls, and emergencies), and innovation, and (3) superior image conveyed by symbols and branding