Exam 1 practice answers AEB4343

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

A) "vegetarianism" represents a value, "dislike McDonald's" represents an attitude

Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. The app displays a bar code that the barista can scan. This is an example of: A) Market Penetration. B) Market Development. C) Market Diversification. D) Product Development. E) Global Marketing.

A) Market Penetration.

Which one of the ASEAN members has the world's second-largest container port? A) Singapore B) Thailand C) India D) Philippines E) China

A) Singapore

To the extent that a country sells more goods and services abroad than it buys, there will be: A) a greater demand for its currency. B) a surplus production of goods and services. C) a scarcity of goods and services within the country. D) a need for revaluation of its currency. E) time for fluctuating its currency.

A) a greater demand for its currency.

The World Trade Organization, which came into existence on January 1, 1995, is the successor of another organization with the abbreviation: A) DSB. B) GATT. C) FTAA. D) NAFTA. E) ASEAN.

B) GATT.

Examples of effective global marketing by McDonald's include both standardized and localized marketing mix elements. Which of the following does not represent a localized element? A) It serves McAloo tikki potato burger in India. B) It uses the advertising slogan "I'm lovin' it." C) It operates themed dining cars on the Swiss national rail system. D) It has home delivery service in India. E) It has slang nicknames such as MakDo in Philippines and McDo in France.

B) It uses the advertising slogan "I'm lovin' it."

Being able to test drive the Tesla Model S electric sports sedan best represents which characteristic of an innovation? A) compatibility B) relative advantage C) divisibility D) communicability E) complexity

C) divisibility

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) perceptual blockage and distortion about cultures are hard to reduce. C) unbiased perception is a vital and critical skill in global marketing. D) unconscious reference to one's cultural values is critical in global marketing. E) prior success and ethnocentrism can override the SRC.

C) unbiased perception is a vital and critical skill in global marketing.

The term "Expanded Triad" includes all of the following countries except: A) Japan. B) United States. C) Germany. D) Mexico. E) Brazil.

E) Brazil.

A person who assumes that his or her home country is superior to the rest of the world is said to have: A) ethnocentric orientation. B) polycentric orientation. C) regiocentric orientation. D) geocentric orientation. E) None of the above

A) ethnocentric orientation.

A formal legal document that gives an inventor the exclusive right to make, use, and sell an invention for a specified period of time is known as: A) patent. B) copyright. C) trademark. D) trade secret. E) license.

A) patent.

In Mexico City, only 55-60% of the population owns a telephone. The number drops to less than 50% in Guadalajara and Monterey, and 35% or lower in other cities. This will complicate the task of market researchers hoping to use a telephone survey to obtain a ________ of the Mexican population. A) probability sample B) convenience sample C) secondary sample D) focus group sample E) quota sample

A) probability sample

From the global marketing perspective, the customization of the Beatles' records is a good example of: A) product adaptation. B) market penetration. C) diversification. D) product development. E) marketing mix.

A) product adaptation.

After Fidel Castro took power in Cuba in 1959, his government seized control of American property without paying compensation. Coca-Cola, DuPont, Texaco, and dozens of other American companies have filed claims against Cuba seeking financial settlements. Which of the following terms most specifically describes the action Castro took against these companies? A) nationalization B) confiscation C) expropriation D) internationalization E) deportation

B) confiscation

One of the basic elements of sociologist Everett Roger's diffusion theory is the concept of an "adoption process." The third step in this adoption process is: A) interest. B) evaluation. C) trial. D) adoption. E) awareness.

B) evaluation.

The first step in formulating and conducting research is: A) problem definition. B) information requirement. C) choose unit of analysis. D) examine data availability. E) research design.

B) information requirement.

The form of economic cooperation that calls for 1) eliminating internal barriers to trade and 2) establishing common external barriers is known as a(n): A) European Union. B) Economic union. C) Customs union. D) Free trade area. E) Common market.

C) Customs union.

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. Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret that France ranks relatively high in: A) Power Distance B) Short-term Orientation. C) Masculinity. D) Uncertainty Avoidance. E) Individualism.

D) Uncertainty Avoidance

The Gross Domestic Product (GDP), a measure of a nation's economic activity, is calculated by all of the following factors except: A) consumer spending. B) investment spending. C) government purchases D) industry purchases. E) net exports.

D) industry purchases.

During the past two decades, the world economic environment has become increasingly dynamic. To achieve success, executives and marketers must take into account all of the following realities except: A) capital movements have replaced trade as the driving force of the world economy. B) production has become "uncoupled" from employment. C) the world economy dominates the scene. D) the struggle between capitalism and socialism continues. E) the growth of e-commerce diminishes the importance of national barriers.

D) the struggle between capitalism and socialism continues.

What are some of the salient characteristics and differences between high- and low-context cultures?

In a low-context culture, messages are explicit and specific; words carry most of the communication power whereas in high-context culture, less information is contained in the verbal part of a message. Much more resides in the context of communication, including the background, associations, and basic values of the communicators. Japan and Saudi Arabia are examples of high-context culture, where a great deal of emphasis is placed on a person's values and position or place in society. In a low-context culture, such as the United States, Switzerland, or Germany, deals are made with much less information about the character, background, and values of the participants. In a high-context culture, a person's word is his or her bond. As a result, lawyers are much less important in high-context cultures. This also makes negotiations lengthy in high-context culture since several meetings or prodding is needed.

Describe how a global marketing strategy is different than a single country marketing strategy.

In single country marketing, choosing a target market and developing a marketing mix are two important considerations. The same two aspects are also important in global marketing; however, they are viewed from a different perspective. There is standardization or adaptation in each of the marketing mix components in each country where business is conducted. Global marketing strategy has three additional dimensions that pertain to marketing management: concentration of marketing activities, coordination of marketing activities, and integration of competitive moves.

Compare and contrast a latent market and an incipient market. Is market research useful for identifying latent markets? What about incipient markets? Justify your answers.

In some instances, there is no existing market to research. Such potential markets can be further subdivided into latent and incipient markets. A latent market is, in essence, an undiscovered market segment. It is a market in which demand would materialize if an appropriate product or service were made available. In a latent market, demand is zero before the product is offered. An incipient market is a market that will emerge if a particular economic, demographic, political, or socio-cultural trend continues. A company is not likely to achieve satisfactory results if it offers a product in an incipient market before the trends have taken roots. After the trends have had a chance to unfold, the incipient market will become latent and, later, an existing market. Market research is more useful for identifying incipient markets because it is possible to track the emerging trends. Market research is often less useful for identifying latent markets because it can be difficult for consumers to evaluate the benefit a product offers before it is actually experienced.

Identify and briefly describe some of the driving and restraining forces that have affected global integration and the importance of global marketing.

The dynamic involving driving and restraining forces is shown diagrammatically in Figure 1-2. Driving forces include regional economic agreements such as NAFTA, converging market needs and wants, technology advances such as the Internet and global TV networks, transportation improvements, the need to recoup high product development costs in global markets, the need to improve quality through R&D investment, world economic trends such as privatization and finally, opportunities to use leverage, corporate culture, and the continuing presence of national controls that create trade barriers.

Global competition intensifies the need for an effective management information system (MIS) and business intelligence that are accessible throughout the company. How can information technology (IT) be used to shape marketing efforts, enhance a supply chain, and respond to consumers' needs and wants?

There are different IT programs that can provide valuable tools for marketing. EDI (Electronic data interchange) links with vendors to enable retailers to improve inventory management and restock popular products in a timely, cost-effective manner. Also, effective consumer response (ECR) is another program which allows management to work more closely with vendors on stock replenishment. ECR systems utilize electronic point of sale (EPOS) data gathered by checkout scanners that help retailers identify product sales patterns as well as record consumer preferences separated by geographical areas. All these tools are also helpful in improving the ability of businesses to target consumers and increase loyalty. Customer relationship management (CRM) is another method by which a relationship is developed with the customer. It helps in determining which customers are most valuable and to react in a timely manner with customized product and service offerings that closely match customer needs. It also makes employees more productive and enhances corporate profitability. It also benefits customers by providing value-added products and services. Data warehouses store a company's CRM system as well as other IT systems. These data warehouses can provide multiple uses such as helping retailers with multiple store locations fine-tune their product assortments. In addition to Internet, intranet can be a valuable tool, which can connect individuals within a company on a private basis.