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45) Insisting on competitive bidding can cause complications in: A) low-context cultures B) high-context cultures. C) low and high context cultures. D) Korean cultures. E) Japanese cultures.
Answer: A
10) Linguists have divided the study of languages into four main areas. The system of word formation is referred to as: A) syntax. B) phonology. C) morphology. D) semantics. E) semiotics.
Answer: C
53) Which is not considered as a long-term value? A) persistence B) sense of shame C) thrift D) ordering relationships E) search for truth
Answer: E
38) Americans typically want to "go it alone." As a result, they may be outnumbered in a negotiation situation.
Answer: TRUE
67) Former Disney chairman Michael Eisner and other company executives were blinded by ethnocentrism. Avoiding the Self-Reference Criterion (SRC) requires a person to suspend assumptions based on prior experience and success and be prepared to acquire new knowledge about human behavior and motivation.
Answer: TRUE
52) According to Hofstede, a cultural dimension which describes a society in which the social roles of men and women overlap, with neither gender exhibiting overly ambitious or competitive behavior is known as: A) nurturing B) individualistic C) collectivistic D) power distance E) achievement
Answer: A
76) Together, innovators and early adopters make up about ________ of the potential market for a new product. A) 16% B) 26% C) 34% D) 46% E) 12%
Answer: A
63) Which of the following best sums up the experience of Walt Disney Company executives when creating Disney's theme park in Paris? A) They were guided by the "think global, act local" principle. B) They fell victim to the self-reference criterion. C) They exhibited a geocentric management orientation. D) They miscalculated the rate of diffusion of innovations in Europe. E) They had an unbiased perception of existing culture in Europe.
Answer: B
12) When the Coca-Cola Company was developing its new Dasani bottled water brand, linguists helped guide the naming process. For example, the recurring "a" was chosen because it has a soothing sound. In linguistics, issues pertaining to letters and sounds are a matter of: A) syntax. B) synonym. C) phonology. D) semiotics. E) semantics.
Answer: C
47) According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia? A) power distance B) individualist/collectivist C) feminine/masculine D) uncertainty avoidance E) long-term orientation
Answer: E
words carry most of the communication power.
Answer: FALSE
36) Westerners doing business in the Middle East must be careful not to reveal the soles of their shoes to hosts or pass documents with the left hand.
Answer: TRUE
51) If a potential Latin American customer insists on giving you a tour of the architectural highlights of his city prior to discussing business, it's a clue that you are doing business in a high-context culture.
Answer: TRUE
13) In China, Dell had to find a meaningful interpretation of "direct sales." A literal translation results in zhi xiao which is the Chinese term for "illegal pyramid marketing schemes." To counteract the negative connotation, Dell's sales representatives began using the phrase zhi xiao ding gou, which translates as: A) direct orders. B) direct marketing. C) pyramid orders. D) pyramid scheme. E) direct shipping.
Answer: A
2) Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries. Which of the following describes your friend? A) "vegetarianism" represents a value, "dislike McDonald's" represents an attitude B) "vegetarianism" represents an attitude, "dislike McDonald's" represents a value C) "vegetarianism" and "dislike McDonald's" both represent an attitude D) "vegetarianism" represents a value, "dislike McDonald's" represents a belief E) "vegetarianism" and "dislike McDonald's" both represent values
Answer: A
46) Lawyers are more important in: A) low-context cultures. B) high-context cultures. C) Indian cultures. D) Korean cultures. E) Japanese cultures.
Answer: A
6) Considering Hofstede's notion of culture as "the collective programming of the mind," then attitudes can be defined as: A) a learned tendency to respond in a consistent way to a given object or entity. B) an organized pattern of knowledge that an individual holds to be true about the world. C) an enduring belief or feeling of a specific mode of conduct. D) a personally or socially preferable mode of conduct. E) the deepest level of a culture present in the majority of the members of a particular culture.
Answer: A
73) To speed adoption of a new product, a marketing team should: A) ensure that features and benefits can be communicated or demonstrated. B) design the maximum amount of complexity into the product. C) discourage limited use on a "trial" basis. D) attempt to make a clean break with existing customer values. E) rely heavily on word-of-mouth marketing.
Answer: A
59) Hofstede considers culture as "the collective programming of the mind," which makes it necessary to look at the attitudes, beliefs, and values. Giving an example of a country, explain how these attributes are so important.
Answer: An attitude is a learned tendency to respond in a consistent way to a given object or entity. Actually, they are clusters of interrelated beliefs. Many Japanese believe that the West is the source of important fashion trends, and therefore they share a favorable attitude toward American brands. A belief is an organized pattern of knowledge that an individual holds to be true about the world. Japan's monocultural society reflects the belief among the Japanese that they are unique in the world. Attitudes and beliefs are closely related to values. A value can be defined as an enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct. Values represent the deepest level of a culture and are present in the majority of the members of a particular culture. The Japanese, for example, strive to achieve cooperation, consensus, self-denial, and harmony. Since these all represent feelings about modes of conduct, they are values. Attitudes, beliefs, and values are all interrelated and extremely important from a marketing point of view.
11) Anheuser-Busch and Miller Brewing both experienced market failures in the United Kingdom when they used the phrase "light beer" which was misinterpreted as: A) being low in calories. B) having reduced alcohol levels. C) having light color. D) having less quality. E) having less quantity.
Answer: B
14) Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself." Whirlpool found that consumers in Italy, France, and Germany had trouble pronouncing the name. These are examples which show the importance of ________ in global marketing. A) syntax and morphology B) phonology and morphology C) syntax and semantics D) semantics and phonology E) semantics and morphology
Answer: B
44) In high-context cultures, time is: A) monochronic. B) polychronic. C) linear. D) short. E) common.
Answer: B
54) The power distance dimension reflects the degree of trust among members of society. Thus, the higher the power distance (PDI) the: A) greater is uncertainty avoidance. B) lower is the level of trust. C) higher is tolerance for ambiguity. D) greater is male dominance. E) lower is the harmony.
Answer: B
65) When Walt Disney Company's executives were planning to build a theme park in France, they firmly believed that the success of McDonald's and Coke as well as their own success in Tokyo ensured the runaway success of their plans. Disney policies prohibit sale or consumption of alcohol inside their theme parks which they also implemented in France. This proved to be a failure since consuming wine with the midday meal is a long-established custom in France. This is most likely a classical example of: A) the "think global, act local" principle. B) being victim to the self-reference criterion. C) a geocentric management orientation. D) miscalculation of the rate of diffusion of innovations in Europe. E) an unbiased perception of existing culture in Europe.
Answer: B
75) The sales of the Apple watch increased when customers were informed about various functions of the watch. This change in sales reflects which of the following characteristics of innovation? A) relative advantage B) communicability C) compatibility D) complexity E) divisibility
Answer: B
79) Adopter categories are classifications of individuals within a market on the basis of their innovativeness. When Apple introduced the Apple watch people waited in long lines before the doors opened. According to experts, those people can be categorized as: A) early adopters. B) innovators. C) early majority. D) late majority. E) laggards.
Answer: B
8) As cultural differences become less relevant and disposable incomes become high, a trend towards greater consumption of the following type of foods is predicted. A) French artistic foods B) American fast foods C) Chinese retail foods D) Indian spicy foods E) Mexican spicy foods
Answer: B
81) Comparing and contrasting the diffusion of innovations in Western countries and in Asia, one can say that: A) the process occurs in an identical manner in both regions. B) in Asia, the adoption process begins more slowly but ramps up more rapidly than it does in Western countries. C) in Western countries, the adoption process begins more slowly but ramps up more rapidly than it does in Asia. D) the diffusion of innovation framework is applicable in the West but not in Asia. E) the diffusion of innovation framework is applicable in Asia but not in the West.
Answer: B
DCC was also designed to play the older, analog cassette tapes that many people own. However, die-hard audio buffs were the only ones to buy DCC and Philips ultimately discontinued the product. Which of the following statements based on adopter categories describes this? A) early adopters bought, but innovators didn't B) innovators bought, but early adopters didn't C) innovators bought, and everyone else was a laggard D) early majority bought, but late majority didn't E) DCC was a laggard
Answer: B
they are comfortable doing things that are not carefully thought out or planned. Denmark's "flexicurity" policy combines free labor markets with adjustable welfare benefits. This is an example of the application of Hofstede's typology under the values which highlight: A) Future Orientation. B) Uncertainty Avoidance. C) Gender Differentiation. D) Power Distance. E) Individualism/Collectivism.
Answer: B
1) While marketers should be secure in their own convictions and traditions, ________ are required to appreciate the integrity and value of other ways of life and points of view. A) standard of living and stage of economic development B) production process and standards of measurement C) open mind and absence of prejudice D) degree of nationalism and economic community membership E) fast food culture and slow food culture
Answer: C
15) Giving business cards with the left hand in Malaysia, showing soles of shoes to a host in Saudi Arabia, and winking one eye in India are all considered impolite interpersonal communication due to the fact that: A) in Middle Eastern countries it is customary to take off shoes at the door. B) it is difficult to notice when one winks eyes since there are many people in India. C) people pick up nonverbal cues and understand intuitively without being told. D) these actions distract people from hearing at meetings. E) people are not aware of Western ways of doing business.
Answer: C
16) A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows the underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that: A) John is not a very popular name in Korea. B) it is difficult to translate John in Korean language. C) customs, hierarchies, and class structure of Korean culture have to be respected. D) Korean culture requires that first and last name be used in addressing guests. E) it is not appropriate to disclose nicknames in business meetings.
Answer: C
4) The use of the color ________ dates back millennia as seen by artisans in ancient Egypt, China, and Mayan civilizations and is now associated with royalty and divinity. A) red B) green C) blue D) orange E) brown
Answer: C
43) A characteristic of a low-context culture which is prevalent in the United States, Switzerland, and Germany is that: A) less information is contained in verbal communication. B) major emphasis is on a person's values and position in society. C) the messages are explicit and specific. D) a person's word is his or her bond. E) negotiations are long and protracted.
Answer: C
48) Two countries that score low in uncertainty avoidance are: A) Austria and Belgium. B) Japan and Hong Kong. C) United States and Switzerland D) Denmark and Finland. E) Ireland and Italy.
Answer: C
5) Cultural influences are also quite apparent in food preparation and consumption patterns and habits. Domino's Pizza, the world's largest pizza-delivery company, pulled out of Italy because: A) its tomato sauce was too bold and competed with Italian products. B) people did not like to eat at home. C) Italians perceived its products to be "too American." D) Italians wanted more toppings on thick crust. E) Italians did not like anyone else to use the name "pizza."
Answer: C
64) The lesson that SRC (Self-Reference Criterion) teaches can be summarized as: A) a person's perception of market needs is framed by others cultural experience. B) the perceptual blockage and distortion about cultures are hard to reduce. C) an unbiased perception is a vital and critical skill in global marketing. D) an unconscious reference to one's cultural values is critical in global marketing. E) the prior success and ethnocentrism can override the SRC.
Answer: C
7) While some food preferences remain deeply embedded in culture, there is plenty of evidence that global dietary preferences are converging. Examples of such a change can be predicted from the: A) popularity of Domino's Pizza in Italy. B) preference for local hamburgers from a local chain, Jollibee's, in the Philippines. C) growing number of McDonald's restaurants globally. D) increased sales of soups and noodles in Thailand. E) popularity of Chinese foods in Taiwan.
Answer: C
71) Which of the following can negatively influence the rate of diffusion of an innovation? A) substantial relative advantage B) high compatibility C) high complexity D) divisibility E) high level of communicability
Answer: C
77) If a marketing manager plans to enter newly industrializing-countries (NICs) or other Asia markets with a product that has proved to be successful in the home market, the product's diffusion processes are likely to be: A) negligible since consumers will take time to assess the relative advantage. B) much slower than in the home market. C) much faster than in the home market. D) similar to that in the home market. E) less compatible in the Asian market.
Answer: C
DCC was also designed to play the older, analog cassette tapes that many people own. This latter feature reflects which of the following characteristics of innovations? A) relative advantage B) communicability C) compatibility D) complexity E) divisibility
Answer: C
3) There is nothing inherently "good" or "bad" about any color of the spectrum and all associations and perceptions regarding color arise from culture. Which of the following statements is not true? A) Red is a popular color in most parts of the world. B) Red color is associated with "active," "vibrant," and "emotional." C) Red color is preferred in many countries since it is the color of blood. D) Red color is highly preferred in some African countries. E) Red color is tied to the traditions of viticulture and winemaking.
Answer: D
56) European consumers have faced a number of food-related issues, including an outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease. As a result, many are skeptical about GMOs (genetically-modified organisms) and the benefits of eating food products that incorporate genetically-engineered ingredients. As one French citizen noted recently, "We have a very risk-averse society that has been completely traumatized by food scares." Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret this remark to indicate that France ranks relatively high in: A) Power Distance. B) Short-term Orientation. C) Masculinity. D) Uncertainty Avoidance. E) Individualism.
Answer: D
61) Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first. The problem was that Japanese women wash clothes in cold water-either tap water or leftover bath water-so they don't care about all-temperature washing (which is a big selling point in the United States). Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding. However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't produce many suds (Americans don't use as much fabric softener). P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads for Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of the following might have helped P&G avoid the initial problems with Cheer? A) Maslow's hierarchy B) high vs. low context culture C) diffusion of innovation D) self-reference criterion E) polycentric orientation
Answer: D
62) The Walt Disney Company's decision to build a theme park in France provides an excellent vehicle to understanding SRC (Self-Reference Criterion). All of the statements listed below portray this meaning except: A) Disney executives believed there is virtually unlimited demand for American cultural exports. B) French are sensitive about American cultural imperialism. C) Consuming wine with the midday meal is a long-established custom which was not realized by Disney executives. D) Disney executives were blinded by their prior success and ethnocentrism. E) The SRC can be a powerful negative force in global business.
Answer: D
70) Which of the following shows the correct order of the product adoption process? A) evaluation→trial→awareness→interest→adoption B) trial→interest→evaluation→awareness→adoption C) interest→awareness→adoption→trial→evaluation D) awareness→interest→evaluation→trial→adoption E) adoption→evaluation→trial→interest→awareness
Answer: D
9) An intern from the United Kingdom was working in an American software company during summers. One day her boss gave her a memo asking her to post it, with the intention of having it put on the bulletin board. To her boss's surprise the letter was mailed by the intern since the word "post" means "mail" in British English. In communication terms this error can be attributed due to: A) syntax. B) phonology. C) morphology. D) semantics. E) semiotics.
Answer: D
69) One of the basic elements of sociologist Everett Roger's Diffusion theory is the concept of an "adoption process." The first step in this adoption process is: A) interest. B) evaluation. C) trial. D) adoption. E) awareness.
Answer: E
72) The rate of adoption of the new Apple watch is slow, particularly in developing country markets with low rates of literacy. This can generally be attributed to which characteristics of innovation? A) compatibility B) relative advantage C) divisibility D) communicability E) complexity
Answer: E
80) Which of the following is true about the innovation diffusion process in Asia? A) Japan has a high-context culture with a relatively homogeneous population. B) Because risk avoidance is a cultural value, there are fewer innovators in Asia than in the United States. C) Once innovators in Asia have tried a product, early adopters and the early majority quickly follow suit. D) After a new product has achieved success in one Asian market, it is likely to be adopted in other Asian markets at an even faster rate. E) All of the above are true.
Answer: E
19) Culture includes conscious and unconscious values, ideas, attitudes, and symbols that shape human behavior that are confined to a generation.
Answer: FALSE
23) Aesthetic elements that are attractive, appealing, and in good taste are perceived as decent and accepted universally.
Answer: FALSE
24) In surveys about color preferences, 50 percent of respondents indicate white is their favorite-and it is favored by a wide margin over the next-preferred color, blue.
Answer: FALSE
28) Background music can be used effectively in broadcast commercials, however, the type of music appropriate for a commercial in one part of the world may be inappropriate in another part.
Answer: FALSE
29) White connotes purity and cleanliness in the West, but it is often associated with death, mourning, and funerals in China and other parts of Asia.
Answer: FALSE
32) Japanese strive to achieve cooperation, consensus, self-denial, and harmony. Because these all represent feelings about modes of conduct, they are beliefs.
Answer: FALSE
37) "McDonaldization of culture," a term coined by Geert Hofstede, refers to the wide spread of McDonald's restaurants in the world and its adverse impact on global culture.
Answer: FALSE
50) The president of an American company was interested in dealing with a company in Saudi Arabia. The Saudi CEO made it clear at the outset that the credentials in the documents have less credibility than personal trust and confidence. This shows that the Saudi Arabian culture is a high-context culture.
Answer: FALSE
57) According to Hofstede's research on cultural values, masculinity dimension describes a society in which social roles of men and women overlap.
Answer: FALSE
58) What are some of the salient characteristics and differences between high- and low-context cultures?
Answer: In a low-context culture, messages are explicit and specific
similarly "Pepsi is for Generations" became "your grandparents will come out of the grave to drink Pepsi." Studies showing how linguists have divided the study of spoken or verbal language demonstrate how verbal and non-verbal communication can have an impact on marketing around the world.
Answer: Linguists have divided the study of spoken language into four main areas: syntax (rules of sentence formation)
60) Applying Hofstede's typology, show how Power Distance and Gender Differentiation can influence the marketing of products and services in different countries.
Answer: Power Distance is the degree to which members of a particular society expect power to be unequally shared. Hong Kong and France are both high power-distance cultures
40) London's Sunday Times reported that Mecca-Cola has become the drink which has come to be seen as "politically preferable" to Pepsi or Coke in many Muslim countries. Also, Danish products were boycotted in many Islamic countries in protest of an offensive cartoon that was printed in Danish newspapers. Considering these two examples, show how religion can have an impact on marketing.
Answer: Religion is one of the most important sources of a culture's beliefs, attitudes, and values. Hindus do not eat beef, which means that McDonald's does not serve hamburgers in India. There was a big uproar when it was found that McDonald's french fries had beef as one of the ingredients. Similarly, Jews do not combine fish and dairy products, which makes McDonald's fish fillet a problem for them. Jews and Muslims do not eat pork, which rules out the use of bacon in many products sold by fast food operations. Restaurants in Malaysia have to declare that all meats are Halal or sacrificed in a specified religious way. In addition to religious requirements, religious sentiments also play an important role. After the incidents of September 2001, there was a distinct feeling of anti-Americanism in many parts of the world, particularly the Middle Eastern region. Mecca-Cola was an attempt to make indigenous products to compete with American ones. One of the concerns in allowing Turkey to join the European Union is that it is predominantly Islamic, whereas other members are comprised of Christians. All these cases show that religion plays a very important role in how people live as well as buy products and services.
17) Historically, the lagoon in Venice provided Venetians with a safe haven from Germanic and Hun invaders.
Answer: TRUE
18) One reason cultural factors challenge global marketers is that many of these factors are hidden from view.
Answer: TRUE
20) When marketers refer to "fast-food culture", or "credit-card culture" they are referring to a cosmopolitan culture which is comprised of various segments of the population which are interconnected.
Answer: TRUE
21) According to Hofstede's definition of culture a particular "category of people" may constitute a nation, an ethnic group, a gender group, an organization, a family, or some other unit.
Answer: TRUE
22) In Indonesia, home of the world's largest Muslim population, KFC uses Ramadan-themed outdoor advertising to encourage Indonesians to come to the restaurants at buka puasa, the end of each day's fast.
Answer: TRUE
25) Cadbury has trademarked the color purple for its chocolate confectionary packaging.
Answer: TRUE
26) Music is an aesthetic component of all cultures and is accepted as a form of artistic expression and a source of entertainment.
Answer: TRUE
27) Music provides an interesting example of the "think globally, act locally" concept.
Answer: TRUE
30) Domino's Pizza had to pull out of Italy because Italians perceived its products to be "too American."
Answer: TRUE
31) Although some food preferences remain deeply embedded in culture, plenty of evidence suggests that global dietary preferences are converging.
Answer: TRUE
33) In China, Dell had to find a meaningful interpretation of "direct sales," the phrase that describes the company's powerful business model.
Answer: TRUE
34) In Korea 4 5683 968 can be interpreted as "I love you."
Answer: TRUE
35) Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself."
Answer: TRUE
66) Long-term values include persistence (perseverance), defined as a general tenacity in the pursuit of a goal.
Answer: TRUE
39) There are considerable differences and similarities among world cultures. This makes the task of the global marketer much more difficult. Giving examples, show what factors have to be taken into account when planning marketing strategy for different parts of the world.
Answer: The task of the global marketer is twofold based on the differences and similarities prevalent worldwide. First, marketers must study and understand the country cultures in which conduction of business is planned. Secondly, marketers must incorporate this understanding into the marketing planning process. Several adaptations will be needed in developing strategies. Deep cultural understanding can actually be a source of competitive advantage for global companies. It is not only the language but deep understanding of culture and developing a relationship that is of paramount importance. In a new geographic market, it requires a combination of tough-mindedness and generosity. While marketers should be secure in their own convictions and traditions, generosity is required to appreciate the integrity and value of other ways of life as well as points of view. People should overcome the prejudices that are a natural result of the human tendency toward ethnocentricity.
68) Reference to one's own cultural values or self-reference criterion (SRC) can create a cultural myopia. It can consciously or unconsciously create considerable problems for marketing professionals. Using Walt Disney's decision to build a theme park in France, address the problem, following a systematic framework.
Answer: To address the problem and to eliminate or reduce cultural myopia, a systematic four-step framework is proposed as described below: Step 1. Define the problem or goal in terms of home-country cultural traits, habits and norms. Disney executives believe there is virtually unlimited demand for American cultural exports all over the world. Disney has a track record in exporting its American management system as seen by the success of Tokyo Disneyland. However, Disney policies prohibit sale or consumption of alcohol inside its theme parks. Step 2. Define the problem or goal in terms of host-country cultural traits, habits, and norms. Make no value judgments. Europeans in general and the French in particular are sensitive about American cultural imperialism. Consuming wine with the midday meal is a long-established custom in France. Many Disney characters are based on European folklore. Step 3. Isolate the SRC influence and examine it carefully to see how it complicates the problem. The differences noted in earlier steps suggest strongly that the needs upon which the American and Japanese Disney theme parks were based did not exist in France Step 4. Redefine the problem without the SRC influence and solve for the host-country market situation. A modification in design of the theme park that is in keeping with French and European cultural norms will solve the problem. Focus on French identity on the park.
41) Giving examples show how technology is providing interesting new opportunities for exploiting linguistics in the name of marketing.
Answer: With the increased use of information technology and computers, there has been a noticeable positive and negative impact on linguistics. Text messaging and chat rooms have made it much easier to abbreviate common words, primarily due to limited space on keyboards of cell phones such as BlackBerry and to reduce time involved. Thus, a combination of numerical and alphabetical abbreviations is being used. For example, GR8 (great)
