Personal Selling and Sales Management Full Test Bank Ch17

International Marketing, 18e (Cateora)

Chapter 17 Personal Selling and Sales Management

1) The first step in managing a sales force is making a decision regarding its design.

2) For selling in relationship-oriented countries, a sales force consisting of American expatriates proves to be most efficient.

3) Only a limited number of American high-caliber sales personnel are willing to live abroad for extended periods of time as expatriates.

4) A chief disadvantage of an expatriate sales force is the high cost for a company.

5) Since expatriates are not locals, they often have a negative effect on the prestige of the company and its product line in the eyes of foreign customers.

6) With advances in communications technologies, virtual expatriates find it easy to maintain close contact with subordinates and customers.

7) Local salespeople are better able to lead a company through the maze of unfamiliar distribution systems and referral networks of a foreign country.

8) The main disadvantage of hiring local nationals for an international sales force is the tendency of headquarters personnel to ignore their advice.

9) In relationship-oriented cultures, sales representatives tend to be on the bottom rung of the social ladder.

10) For an American company, one of the disadvantages of recruiting a U.S. home-country national for a foreign sales assignment is the cost of double taxation.

11) Though maturity and emotional stability are essential, the transnational manager is rarely expected to have knowledge of many subjects, either on or off the job.

12) An international salesperson can be hampered by flexibility when working in a foreign country or in the home country.

13) The traits that make for successful sales representatives in the United States are the same as those that are important in other countries as well.

14) In the context of international sales management, managers' cultures affect their personnel decisions.

15) Training for expatriates focuses on the company, its products, technical information, and selling methods, while that for local personnel focuses on customs and foreign sales problems.

16) Marketing is a business function requiring high motivation regardless of the location of the practitioner.

17) Social recognition is a more important motivating factor for an American sales representative compared to a Japanese salesperson.

18) Japanese sales representatives are motivated more by the social pressure of their peers than by the prospect of making more money individually.

19) In eastern European countries, compensation packages typically involve a substantially greater emphasis on performance-based incentives than in the United States.

20) Differences in languages and culture can make mutual understanding between foreign managers and sales representatives difficult.

21) Expatriate managers fear that they will lose opportunities for promotion because they will be forgotten by the home office while they are working in a foreign country.

22) Expatriates working in high-tax countries prefer direct income instead of fringe benefits as part of their compensation package.

23) Separation allowances are benefits paid when an expatriate manager leaves a company.

24) In Europe, external labor unions are involved in setting compensation rules for sales people.

25) In the U.S., poor performers typically stay with the company and are seldom fired.

26) The primary control tool used by American sales managers is the benefits system.

27) Jacob's wife never grew accustomed to his foreign assignment and was miserable, so Jacob requested a move back to the home country. This is a common reason for an expatriate's failure to function effectively in a foreign assignment.

28) Personal career planning for the expatriate is a significant strategy that helps companies prevent returnee attrition.

29) An expatriate with excellent management and technical skills is sure to excel in any environment, even if he or she lacks an understanding of cultural differences.

30) An expatriate with excellent cultural skills does not tolerate ambiguity and upholds the superiority of his or her culture.

31) Most companies today limit their search for senior-level executive talent to their home countries.

32) What is a company's most direct tie to the customer?

A) the product

B) the salesperson

C) the parent company

D) the retail outlet

E) the distributor

33) What is the final link in a company's marketing and sales efforts?

A) the chairperson

B) the marketing manager

C) the sales representative

D) the customer

E) the sales manager

34) Relationship marketing focuses on

A) the short-term effort.

B) maintaining an atmosphere of trust with the sales manager.

C) involving all members of the sales team in the sale.

D) treating each sale as a one-time event.

E) building long-term alliances.

35) Countries such as Germany allow for greater use of expatriates in international sales forces. What is most likely the reason for this?

A) Germany is a member of the World Trade Organization.

B) Germany has a relationship-oriented culture.

C) The German language is easy to master.

D) Germany has an information-oriented culture.

E) Germany is a member of the United Nations.

36) In countries like Japan, a sales force is likely to be most effective if it consists mostly of

A) professional expatriates.

B) local nationals.

C) virtual expatriates.

D) third-world nationals.

E) expatriates from Asian countries.

37) A multinational company with its headquarters in the U.S. wants to sell its new high-technology product in Germany. For the most effective selling, the sales force for this company would probably consist mostly of

A) local German nationals.

B) illegal aliens living in the US.

C) temporary, freelancing German sales personnel.

D) American expatriates.

E) third-culture people from Japan.

38) The largest personnel requirement in foreign countries for most companies is in the

A) management team.

B) finance department.

C) information technology team.

D) human resources department.

E) sales team.

39) An expatriate sales force is likely to be

A) most efficient in relationship-based cultures.

B) unsuitable when a company wants to sell high-technology products.

C) lacking in knowledge regarding the product line of the company.

D) received unfavorably in information-oriented cultures.

E) the best choice when selling requires an extensive background of information.

40) When is an expatriate sales force most likely to have an advantage over a native sales force?

A) when selling consulting services

B) when selling in relationship-oriented countries

C) when the product caters to a niche market

D) when the product is highly technical in nature

E) when selling does not require effective communication skills

41) What is an advantage of a sales force consisting of expatriate sales representatives?

A) They possess greater technical training.

B) They transcend cultural and legal barriers.

C) They cost less to be maintained in a foreign location.

D) The cultural gap can be easily narrowed.

E) They have a better understanding of distribution channels.

42) What is a disadvantage associated with a sales force consisting of expatriate salespeople?

A) adverse effect on the prestige of the product

B) inability to effectively communicate and influence headquarters' personnel

C) lack of technological expertise

D) inadequate knowledge of the company

E) large cultural barriers

43) What is the most likely reason for Americans to seek third-country nationals for their international sales forces?

A) They transcend legal and cultural barriers.

B) They are thoroughly knowledgeable about a country's business structure.

C) They are often able to speak several languages.

D) They cost less to maintain than a staff of local nationals.

E) They can lead a company better through unfamiliar referral networks than local nationals.

44) What is a strategy that international companies use to encourage sales personnel to accept foreign assignments?

A) International experience is considered important to join top management.

B) It is made mandatory for all sales personnel to take up expatriate positions.

C) Part of the headquarters of the company is set up at the foreign location.

D) Companies unfailingly provide employment for the employee's spouse in a top position.

E) Legal obligations are imposed on the expatriate sales representatives.

45) What is a characteristic of a professional expatriate?

A) They work abroad for a period of one month and then return to the home office.

B) They work for a foreign company in a third country for a short period.

C) They work abroad in country after country for the greater part of their careers.

D) They work in their home branches for most of their careers.

E) They manage operations in other countries but do not move there.

46) Helmut, a German national, works as a sales manager for Grey Oil Corporation in the Middle East. Given the benefits associated with the job, he works on one foreign assignment after another and rarely returns to the headquarters in Germany. In view of the given information, we can say that Helmut is a

A) repatriate manager.

B) virtual expatriate.

C) third-country national.

D) professional expatriate.

E) native salesperson.

47) What best defines virtual expatriates?

A) They stay and work abroad for a short period of one to two months and then return to their home country.

B) They work in a foreign culture and blend to such an extent that they may more closely resemble a local than an expatriate.

C) They work abroad in one country after another for the greater part of their career.

D) They are expatriates from their own countries working for a foreign company in a third country.

E) They manage operations in foreign countries but do not move there.

48) Jorge, an American citizen, works as the sales manager at an office supply company. He is posted at the company headquarters in the U.S. and manages operations in China, making frequent and lengthy visits to conduct business meetings with his colleagues there. Jorge may be considered to be a

A) repatriate.

B) virtual expatriate.

C) third-country national.

D) professional expatriate.

E) local sales manager.

49) What is an advantage of being a virtual expatriate?

A) They can eliminate the problem of time zone differences.

B) They can establish closer relationships with their customers in the foreign country.

C) Their families do not have to be uprooted from their home country.

D) They possess complete local knowledge about cultural practices in the foreign country.

E) They can avoid cross-cultural communications problems with their foreign colleagues.

50) From an international firm's perspective, what is an advantage associated with virtual assignments?

A) Sales personnel can avoid health risks involved in flying frequently to foreign countries.

B) Customer relationship structures may be improved due to direct customer interaction.

C) The extra expense involved in an actual executive move may be avoided.

D) Problems related to low morale of personnel due to living in hotels can be avoided.

E) Misunderstandings due to lack of cultural skills may be completely eliminated.

51) Horatio is a virtual expatriate based in the U.S., managing operations in France and Belgium for his company. What disadvantage of working as a virtual expatriate is Horatio likely to experience?

A) He may find it difficult to build close contact with subordinates and customers.

B) His family will need to be uprooted.

C) He will risk losing out on promotions at corporate headquarters.

D) He will likely lack the understanding of how home-office politics influence decisions.

E) The top personnel at the headquarters will tend to ignore his advice.

52) The primary difference between professional expatriates and virtual expatriates is that

A) professional expatriates can avoid misunderstandings that arise from cross-cultural communications.

B) for virtual expatriates, building close contact with customers is much easier.

C) professional expatriates do not incur any extra expense to the company.

D) for virtual expatriates, establishing a good working relationship with subordinates is much easier.

E) virtual expatriates work from their home branch and do not relocate to the assignment country.

53) When recruiting sales and marketing personnel for an international sales force, there is a preference in favor of the locals. The reason for this is most likely that local nationals

A) transcend both cultural and legal barriers.

B) have supreme technological expertise.

C) are more highly trained than expatriates.

D) have a better understanding of home-office politics.

E) do not accept bribes.

54) What is an advantage of hiring local nationals in the sales force?

A) They are more efficient in communicating with and influencing headquarters' personnel.

B) They are more knowledgeable about a country's business structure and systems.

C) They add to the prestige of the product line in the eyes of foreign customers.

D) They are likely to have superior technical expertise.

E) They do not accept any form of bribe.

55) What is an advantage that a sales force consisting of local nationals is likely to have over a sales force of expatriates?

A) They are more efficient in communicating with and influencing headquarters' personnel.

B) They cost the firm less to maintain.

C) They add more to the prestige of the product line in the eyes of foreign customers.

D) They have greater technical expertise.

E) They are less likely to accept any form of bribe.

56) What is the main disadvantage of hiring local nationals in the sales force?

A) Headquarters personnel tend to ignore the advice of local nationals.

B) Most local nationals are costly to maintain.

C) Poaching of experienced personnel by competitor companies increases.

D) Cultural differences lead to communication issues with customers.

E) Lack of familiarity with distribution systems and referral networks plagues local nationals.

57) What is most likely to be a reason that headquarters personnel tend to ignore the advice of local nationals?

A) Foreign nationals are not keen on keeping up with current best practices.

B) Foreign nationals lack the understanding of how home-office politics work.

C) Foreign nationals have a good grasp of the local culture and prevalent practices.

D) Foreign nationals cannot build close contact with subordinates and customers.

E) Foreign nationals have superior technical expertise, but are not good at relationship management.

58) What is true of local nationals who are hired to sell a company's products?

A) They are not keen on maintaining a cordial relationship at the home office.

B) They lack the knowledge of local culture and prevalent practices.

C) They are better able to lead a company through the maze of unfamiliar distribution systems.

D) They do not communicate with subordinates and customers directly.

E) They normally work for a foreign company in a third country.

59) In relationship-oriented cultures such as France, Mexico, and Japan, sales representatives

A) are available to fill vacant positions perennially.

B) tend not to be highly respected.

C) are better paid than their U.S. counterparts.

D) lack proper knowledge of their culture.

E) are respected and held in high esteem.

60) What is considered to be the most common job in the United States despite being viewed negatively?

A) government service

B) attorney

C) office management

D) personal selling

E) teaching

61) Expatriates from their own countries working for a foreign company in another country are called

A) virtual expatriates.

B) native salespeople.

C) third-country nationals.

D) professional expatriates.

E) local nationals.

62) Doreen is a French citizen who has been working for a U.S. company in Spain for twenty years. Doreen may be considered to be a

A) virtual expatriate.

B) native salesperson.

C) third-country national.

D) professional expatriate.

E) local national.

63) One feature of third-country nationals is

A) U.S. firms have to pay double tax when hiring them.

B) they are local nationals who work for a foreign company.

C) they work at the company's headquarters and are located in their home country.

D) they manage their foreign clients and subordinates from their home country.

E) their nationality has little to do with where they work or for whom.

64) What is the most important quality of marketing personnel for a foreign assignment that a recruiter should consider?

A) They should have little cultural empathy as this might distract them from their main purpose.

B) When working in a foreign country, they must be capable of making decisions that are not influenced by the habits of the market.

C) They should be able to represent a culturally superior image of their country and its products.

D) They should be hypersensitive to the behavioral variations in different countries.

E) They should possess a considerable breadth of knowledge of many subjects both on and off the job.

65) A marketer who expects to be effective in the international marketplace should

A) be antagonistic toward other cultures.

B) not let the local culture influence his or her decisions.

C) practice cultural ethnocentrism.

D) not let consumer behavior influence marketing decisions.

E) have a positive outlook on an international assignment.

66) Cultural empathy involves

A) being subservient to a superior culture.

B) understanding another culture and not being antagonistic.

C) believing that the people of inferior cultures should be enlightened.

D) having the attitude that one's own culture is superior to others.

E) being dissatisfied with one's own culture and adopting a new culture.

67) When hiring new personnel for international marketing, what is considered to be the best way to assess the traits necessary for success?

A) paper-and-pencil ability tests

B) interviews and role-playing exercises

C) biographical information

D) reference checks

E) calligraphy analysis

68) Japanese sales representatives tend to be most satisfied with their jobs when

A) their values are consistent with those of their company.

B) they receive high salaries and many perks.

C) they are better educated than their colleagues.

D) their technological knowledge is superior to that of others.

E) their ideas that do not conform to the company's goals are well-received.

69) What is most likely the reason that continual training is more important in foreign markets than in domestic ones?

A) slow adaptation of foreign markets to innovative products

B) technological inferiority of domestic products

C) the need to establish the superiority of domestic cultures

D) lack of technical knowledge among expatriate salespersons

E) lack of routine contact with the parent company

70) The training of foreign employees is likely to be most effective when

A) it is handled by trainers who communicate in languages alien to the employees.

B) it is tailored to the employees' ways of learning and communicating.

C) national differences are ignored during motivational sessions.

D) the superiority of their culture is emphasized over others.

E) it is different from the familiar ways of communicating.

71) What is likely to be the most effective method in making home-office personnel aware of the problems of foreign operations?

A) providing cross-cultural training

B) designing a theoretical course

C) conducting in-house seminars

D) holding corporate virtual reality training

E) distributing marketing reading materials

72) Japanese and American salespersons are surprisingly similar except for one difference that Japanese rate as more important than their American counterparts. Identify this difference.

A) job security

B) promotion

C) job satisfaction

D) social recognition

E) personal growth and development

73) Considering the specific characteristics of Japan's culture, what strategies would be most successful in motivating employees in Japanese organizations?

A) individual commission systems

B) group bonus systems

C) company cars

D) birthday gift vouchers

E) best employee awards

74) What is the main reason for the failure of individual incentives to motivate employees in Japan?

A) society's emphasis on paternalism and collectivism

B) high corruption levels

C) practice of cultural chauvinism

D) a democratic form of government

E) encouragement of individualism

75) Nontaxable perks such as a company vehicle given to an expatriate is an example of

A) an overseas premium.

B) a family compensation.

C) a special assessment.

D) a fringe benefit.

E) a separation allowance.

76) Claudia is being transferred to a foreign assignment that will last 3 months. Her family is not accompanying her, so the company is paying her a premium, which is called a

A) fringe benefit.

B) pension plan.

C) displacement reserve.

D) special assessment.

E) separation allowance.

77) What is actively involved in setting rules about compensation companywide in Europe?

A) pension committees

B) work councils

C) external labor unions

D) the European Union

E) the World Trade Organization

78) A survey showed that most companies establish sales compensation practices locally (either at the country or regional levels). The program element most often determined at the global level is

A) Program Design Principles.

B) Pay Mix.

C) Job Grades.

D) Formula Mechanics.

E) Performance Measures.

79) What strategy should be practiced when determining compensation globally?

A) A similar framework should be created for jobs with different responsibilities.

B) The support of senior sales executives should not be sought before taking action.

C) Local managers should not decide the mix between base and incentive pay.

D) Consistent communication and training themes should be used worldwide.

E) The incentive plan should be designed centrally and dictated to local offices.

80) Unlike the Japanese, the American sales managers have less need to worry about the problem of motivating poor performers. What is the reason for this?

A) The group incentive system balances pay differences and thus is motivating enough.

B) Companies are more focused on long-term loyalty and are willing to compromise on performance initially.

C) Sales personnel are shifted to areas where their performance levels can meet expectations.

D) The base pay that is higher than their performance based incentive motivates them.

E) The team usually does not have any low performers as they either quit or are fired.

81) What practice, with respect to motivating sales personnel, is most common in relationship-oriented countries like Japan?

A) Companies lay greater emphasis on incentives that are based on individual performance.

B) Companies do not allow local managers to decide the mix between base and incentive pay.

C) Commissions are measured by sales revenues generated by each employee.

D) Companies are not very tolerant of poor performers and fire them immediately.

E) Companies motivate sales representatives through frequent interaction with supervisors.

82) The primary control tool used by American sales managers with sales representatives is the

A) encumbrance system.

B) quota system.

C) incentive system.

D) attraction of a foreign assignment.

E) threat of foreign postings.

83) Qualified and ambitious sales personnel refuse to take up foreign assignments for fear of hampering their career development. This "out of sight, out of mind" fear is most closely linked to the problems of

A) conflict of interests.

B) acculturation.

C) skill redundancy.

D) naturalization.

E) repatriation.

84) When Sandra was offered a transfer to the London office from New York, she worried that she would miss out on opportunities in the New York office when she returned because she hadn't been there. This is a common problem with

A) conflict of interests.

B) acculturation.

C) skill redundancy.

D) repatriation.

E) assimilation.

85) What is likely the single most important reason for expatriate dissatisfaction?

A) unsuccessful family adjustment

B) cultural conflict in the foreign country

C) noncooperation of foreign colleagues

D) communication issues with home-country headquarters

E) redundant skills in a foreign country

86) Which factor significantly differentiates companies with the least amount of returnee attrition from those with the highest attrition?

A) specialized expatriate department

B) personal career planning for expatriates

C) continued cultural training

D) protection from work councils

E) family migration planning

87) Most expatriate failures are caused by the lack of

A) management skills.

B) technical skills.

C) an understanding of cultural differences.

D) knowledge of the product line.

E) knowledge of the company.

88) What is a trait of people with good cultural skills?

A) They have a clear set of principles and do not tolerate ambiguity.

B) They take pride in their culture and practice cultural ethnocentrism.

C) They monitor the behavior of their employees and judge them accordingly.

D) They convey a sincere interest in people and their culture.

E) They try to propagate their culture and insist that others follow them.

89) In the past, most chief executives came from one of three backgrounds. What is one of these?

A) accounting

B) information technology

C) law

D) marketing

E) public relations

90) A foreign managerial posting is becoming increasingly viewed as

A) a negative for advancement.

B) a necessary evil that can't be avoided.

C) an important stepping stone to executive positions.

D) a cherished experience.

E) an experience to be avoided at all costs.

91) What decisions must be made in designing an international sales force, and what are the complications that tend to arise?

92) Describe the advantages and disadvantages of using an expatriate sales force.

93) What are virtual expatriates, and what are the disadvantages associated with using these sales managers?

94) What are third-country nationals (TCNs)? Why do American companies favor third-country nationals over expatriates from other English-speaking countries for overseas assignments?

95) What are the eight specific characteristics and skills a company should look for when selecting sales and marketing personnel for international marketing positions?

96) What should be the nature of a training program for international marketing personnel?

97) What is the reason for the failure of individual incentives to motivate employees in Japan?

98) Discuss how compensation plans of American companies vary substantially around the world.

99) Describe three reasons for the low morale and growing amount of attrition among returning expatriates.

100) How does the family impact the success of an expatriate manager?

101) In the context of international marketing, how important is a second language for a manager?