Global Marketing Final
Select elements in the diffusion of new ideas as stated by Everett Rogers
1. Communication through specific channels 2. Communication over a period of time 3. Creation of a product
Which of the following statements are true regarding the impact of global competition on business?
1. Companies must emphasize competitive prices. 2. Product life cycles are increasingly shorter.
Identify the factors that affect the adoption of certain products by buyers.
1. Conformity with buyers' conduct 2. Conformity with buyers' conventions and principles 3. Physical characteristics and functions of the product
Select the circumstances that affect an object's pace of diffusion
1. Degree of perceived newness 2. Approaches utilized to convey ideas about the object 3. Perceived characteristics of the innovation
Identify the factors that dictate product adaption.
1. Economic conditions 2. Climatic requirements 3. Technological demands 4. Political requirements
Identify the accurate statements about a product.
1. It is a collection of fulfillments that a consumer purchases. 2. It is dependent on the prestige enjoyed by its brand.
Identify a true statement about maintaining quality in today's global competitive market.
1. It is necessary. 2. It is desirable.
Identify the utilities or satisfactions associated with a product.
1. Its smell 2. Its labeling 3. Its color 4. Its texture 5. Its major function
Order the following problems in international business negotiations, placing the least serious problem on top and the most serious problem at the bottom
1. Language 2. Nonverbal Behaviors 3. Values 4. Thinking and decision-making processes
Identify the three typical company structures.
1. Matrix organizations 2. Geographical divisions 3. Global product divisions
Select the qualities of innovation that control the pace of consumers' acceptance of or resistance to a product.
1. Observability 2. Trialability 3. Complexity 4. Relative advantage 5. Compatibility
What are the four phases of planning for global marketing, starting from the first phase and ending with the last phase?
1. Preliminary analysis and screening 2. Defining market segments and adapting the market mix accordingly 3. Developing the marketing plan 4. Implementation and control
What are the benefits of global marketing?
1. Reducing the cost of purchasing a product 2. Sharing experience across markets 3. Sharing knowledge across markets
Identify the levels at which cultural differences cause problems in international business negotiations. (Check all that apply.)
1. Values 2. Language and nonverbal behaviors 3. Thinking and decision-making processes
identify the three typical company structures.
1. geographical divisions 2. global product divisions 3. matrix organizations
Identify the factors that influence the performance and structure of direct investment.
1. investment timing 2. knowledge of local firms 3. complicated contracts
Quality is defined on which of the following dimensions?
1. market-perceived quality 2. performance quality
Identify the incentives that induce companies to control solid waste.
1. public pressure 2. political pressure
Examples of companies' green marketing efforts include:
1. using recycled components in products 2. reducing packaging waste 3. reducing the fuel emissions of vehicles
Identify the factors that affect the adoption of certain products by buyers
1.Conformity with buyers' conventions and principles 2.Physical characteristics and functions of the product 3.Conformity with buyers' conduct
In which decade was the market segmentation argument framed as "global integration versus local responsiveness"?
1990's
Select the circumstances that advance conversion in the global pharmaceutical sector
Ability and resources to wait a long time to see results Previous experience launching innovative products Concentration on a handful of significant innovations
Identify the market segmentation dispute in the 1970's
Adaptation vs Standardization
Identify the market segmentation dispute in the 1970s.
Adaptation vs Standardization
The factors that can make important differences in business negotiations are _____
Age and experience
Which statement is true of planning for global markets? A. It encourages hierarchical structure in an organization B. It is a structured way of thinking about anticipated and unanticipated events
B.
In the context of the Product Component Model, identify the elements included in the packaging component.
Brand name Quality Price
Match the phase of planning for global marketing (in the left column) with its description (in the right column). Phase 2:
Branding products keeping cultural specificities in mind
Company information and data are located in one place.
Centralized companies
Match the phase of planning for global marketing (in the left column) with its description (in the right column). Phase 3:
Choosing an approach into a country market
Identify an accurate statement about acceptance of products by consumers in new country markets.
Consumer accept new products fairly slowly
Identify an accurate statement about acceptance of products by consumers in new country markets. Consumer accept new products fairly slowly.
Consumer accept new products fairly slowly.
What must global businesses understand about doing business in emerging markets?
Consumers in emerging countries have a variety of yearly incomes
What facilitates a company's success when innovative products are commercially launched?
Conversion-ability
General planning for a company over a long period of time is called ________
Corporate planning
Match the components of the Product Component Model in the left column to their corresponding examples in the right column: Packaging Component
Cost of Product
Executives have a localized view of the company, not an all-encompassing one.
Decentralized companies
Identify a measure that companies take when corporate objectives do not match foreign market opportunities.
Developing a new company objective to match the opportunity
______ is the process by which market innovation spreads.
Diffusion
What kind of exporting occurs when companies sell products to consumers in another country
Direct Exporting
Identify the statement that relates to the "timing" factor of direct foreign investments.
Early foreign investment in a market has benefits, but it is more uncertain.
In Rovamia, a developing country, companies often had to compromise on quality and cost earlier to make their products affordable to consumers. However, with the increase in per capita income of the country, companies can now maintain the quality of their products without lowering price. Identify a factor that best describes the reason for this shift in Rovamia.
Economic growth
Match the phase of planning for global marketing (in the left column) with its description (in the right column). Phase 4:
Evaluating a firm's operation in a country market
Match the phase of planning for global marketing (in the left column) with its description (in the right column). Phase 1:
Exploratory assessment of potential country markets
True or false: During business negotiations, countries and companies negotiate with each other.
F
True or false: The Japanese are often located in the middle of the scale on every dimension of negotiation
F
T/T: during business negotiations, countries and companies negotiate with each other.
F Companies and countries do not negotiate; people do. Consider the cultures of the customers and business partners, but treat them as individuals.
True or False: Corporate planning plans for the immediate future
False
True or False: Strategic planning takes place only at the lowest level of management
False
True or false: Adaptation is independent of changes in the psychological aspects of a product.
False
True or false: Consumers care exclusively about the physical forms of a product.
False
True or false: Tactical planning is done at the national level and deals with products, research, and long-term goals of the company.
False
True or false: When a product is assessed from a foreign user's point of view, the assessment may cause a misjudgment of the product's cultural significance.
False
Solinol Inc. is one of the largest oil refineries in Europe. Three years ago, it entered the Central African Republic and started production on several oil fields. The access to these oil fields made Solinol one of the largest oil companies in the world. Soon after that, the political situation in the Central African Republic deteriorated. Many of its assets are now under siege by rebel groups. The result has been losses of over $5 billion to Solinoil. In this scenario, the market opportunities for Solinol in the Central African Republic clashed with the _____.
Firm's Business Objectives
Identify the scenario that describes a consortium
Five technology corporations and ten consulting corporations come together to form a telecommunications company in Africa for the first time.
Identify the scenario that describes a consortium.
Five technology corporations and ten consulting corporations come together to form a telecommunications company in Africa for the first time.
Identify an accurate statement about franchising.
Franchisers have some direction over the activities of the franchisees
Identify the characteristics of French negotiators in the simulated negotiation study. (Check all that apply.)
Frequent use of the word "you" Highest usage of threats Frequent interruptions
Identify the major categories of U.S. exports.
Goods that are durable, Goods that are non-durable, and services
Match the components of the Product Component Model in the left column to their corresponding examples in the right column: Support Services Component
Handbook that explains how to use a product
In context of the Product Component Model, identify the elements of the core component
How the product works What the product does
What kind of exporting occurs when companies sell products to a distributor or an importer in the home city
Indirect Exporting
Identify an accurate statement about a joint venture.
It helps an outsider firm comprehend cultural differences and niceties
Identify an accurate statement about a joint venture.
It helps an outsider firm comprehend cultural differences and niceties.
Which statement is true about establishing global operations?
It leads to the creation of innovative methods to attract customers.
Whirling Dervish is a U.S.-based company that manufactures Floor-It, an all-in-one floor-cleaning device that cleans, mops, and shines. The product has been on the market for over a decade and has been very successful and widely accepted by consumers. The company plans to introduce Floor-It to international markets that have few products in the floor-cleaning category. Which of the following should be a concern for the company?
It must realize that Floor-It may be perceived as new in the foreign markets.
Identify a scenario that best describes protectionism.
Limiting the amount of foreign investment in the field of education
Identify an accurate statement about direct foreign investment.
Local firms are able to acquire new technology from foreign investors.
Refers to a consumer's satisfaction with many aspects of a product
Market-perceived quality
Identify the reason for avoiding stereotypes in international business negotiations.
Negotiations are conducted between people rather than national stereotypes.
Refers to a product's ability to carry out its primary function
Performance quality
The primary medium of organizational learning is the _____ process.
Planning
Match the components of the Product Component Model in the left column to their corresponding examples in the right column: Core component
Purpose of Product
Identify an important lesson that stands out from the author's study of negotiation styles
Regional generalizations are usually incorrect
Identify an accurate statement about strategic international alliances (SIAs).
SIAs decrease marketing expenses
identify an accurate statement about strategic international alliances (SIAs).
SIAs decrease marketing expenses
Which factor is crucial in delivering a quality product?
Standardization
_____ planning deals with capital, products, research, and the short-term and long-term goals of the company. The highest levels of management are involved with this type of planning.
Strategic
Identify the components of the Product Component Model.
Support services component Core component Packaging component
_____ planning relates to the allocation of resources used to implement strategic planning goals in particular markets
Tactical
_____ planning relates to the allocation of resources used to implement strategic planning goals in particular markets.
Tactical
________ planning refers to the allocation of resources used to implement strategic planning goals in particular markets
Tactical
Select the hurdles faced by companies that would like to offer services in foreign countries
Tariffs Copyright issues Restrictions of data movement between countries
Give an example of services
Telecommunications and tourism
Identify an accurate statement about the Spanish negotiators in the simulated negotiation study
They used the highest percentage of commands
identify features of Israeli negotiators that were observed in the simulated negotiation study.
They used the lowest percentage of self-disclosures. They frequently interrupted one another during negotiations.
True or false: In the study on the verbal behaviors of negotiators across cultures, the Mexican behavioral pattern was very similar to that of the negotiators from Brazil. True
This statement is false. In the context of the study conducted by the authors on the verbal behaviors of negotiators across cultures, the Mexican behavioral pattern was very similar to that of the negotiators from the United states. The Mexican negotiation style is different from the Brazilian negotiation style.
True or false: A matrix structure encourages transfer of a variety of knowledge throughout the firm.
True
True or false: The problem of locating and overseeing licensees can contribute to the failure of licensing agreements
True
True or false: The problem of locating and overseeing licensees can contribute to the failure of licensing agreements.
True
Licensing is an appropriate choice when _____.
a company wants to enter a country that places strict limits on imports
During face-to-face international business negotiations, people usually nonverbally exchange _____
a great deal of information
Research suggests that multinational firms like to focus on specific regions because _____
a regional focus minimizes problems caused by cultural distance
Research suggests that multinational firms like to focus on specific regions because _____.
a regional focus minimizes problems caused by cultural distance
A joint venture between two multinational corporations helps an international marketer _____.
access a partner's local supply and delivery methods
To maximize satisfactions received from a product, marketers need to _____.
adapt its nonphysical features to suit culture
If there is a difference between cultures of an existing market and a new market, then _____.
adaptation increases
The factors that can make important differences in business negotiations are _____.
age and experience
Planning aids International marketers by __________
allowing them to create guidelines for dealing with both positive and negative business circumstances that may occur
Direct exporting involves selling products to foreign customers, while indirect exporting involves selling products to _____.
another company in the home country that then exports the products
A successful international business negotiator should treat foreign customers and partners
as Individuals
A successful international business negotiator should treat foreign customers and partners
as individuals
The simulated negotiation study indicated that negotiators from northern China emphasized _____
asking questions
The psychological attributes of products are _____.
based on societal norms and values
Product choices tend to _____ when products are culturally delicate or complex.
be decentralized
A strategic international alliance (SIA) is a(n)
business relationship between two or more companies
As a result of direct foreign investment, local companies that are acquired by large multinationals _____.
can export goods to new consumers
The third phase of planning for global marketing involves _____.
choosing a mode of entry into the target country
In the first phase of planning for international marketing, companies _____.
collect information to evaluate the potential of a country market
Give an example of Durable goods
computers and cars
Unlike a joint venture, a consortium _____.
consists of a greater number of companies
Do business in countries where none of the participants have a presence
consortia
Thanks in part to the smartphone, marketplace power is held by
consumers
Glen's, a multinational chain of restaurants, is famous for its steak dishes. In most outlets of Glen's, consumers prefer rare to medium steak. However, in Palatina, consumers prefer well-done steak. The restaurant modifies its recipe to meet the demands of the consumers because the _____ preference of consumers of Palatina is different from those of the consumers of other countries.
cultural
Identify the factor that makes a relevant difference in business negotiations
cultural diversity within countries
In many global companies, a wider portfolio of markets served
decreases revenue instability
The U.S. cake mix company mentioned in the text was successful in England because it
did extensive market research
Investing in a foreign company is a means of foreign market development and entry known as
direct foreign investment
Wavetel, a hardware company based in Europe, acquires Telior, its competitor in a neighboring country. Identify the market-entry strategy that best describes Wavetel's move.
direct foreign investment
Unlike decentralized organizations, centralized organizations _____
direct planning
Give an example of non-durable goods
drugs, toys, and food
The simulated negotiation study found that the Chinese in Taiwan were extraordinary in the _____
duration of facial gazing
The most common complaint heard from American managers regarding foreign clients is that the clients ________
engage in side conversations
When making decisions for international marketing, managers should
ensure that policies define the decisions to be made at each managerial level.
True or false: A product that is perceived as extremely innovative is rapidly accepted by consumers because they appreciate its newness.
false
True or false: Research demonstrates that when choices are centralized, subsidiaries have no impact on business choices.
false
P&L, a French luxury goods company, launched a new line of leather accessories in four countries. The company devised an aggressive marketing strategy to promote this line of products. After 6 months, the CEO of P&L calls a meeting to evaluate the success of the marketing campaigns in each country. In the context of global marketing, this meeting would fall under the _____ of the planning process.
forth phase
P&L, a French luxury goods company, launched a new line of leather accessories in four countries. The company devised an aggressive marketing strategy to promote this line of products. After 6 months, the CEO of P&L calls a meeting to evaluate the success of the marketing campaigns in each country. In the context of global marketing, this meeting would fall under the _____ of the planning process.
fourth phase
Offers information about host country market
franchisee
offers homogenized company products
franchiser
The trend of establishing manufacturing operations around the world will increase when _____.
free trade is allowed
________ is the term used to identify concern with the environmental consequences of a variety of marketing activities.
green marketing
Global Product division
handles product sales throughout the world
Geographical division
handles products within a particular region
Emerging markets may ________
have rudimentary frameworks for doing business
Unlike differences in language, cultural differences in nonverbal behavior are usually _____
imperceptible to most people
In comparison to the other Asian groups in the study on verbal behaviors of negotiators across cultures, the Chinese in Taiwan provided more _____
information in their statements
According to a study conducted on the verbal behavior of negotiators from different cultures in simulated settings, most of the negotiations focused on _____.
information-exchange tactics
According to the study of negotiators across cultures, the northern Chinese negotiators made statements that were classified as _____.
information-exchange tactics
From a sociological point of view, when a group perceives any idea as new, that idea is a(n) _____.
innovation
Deal City, an online shopping portal based in China, supplies cost-effective household products to customers in North America. Identify the type of alternate market-entry strategy that best describes this scenario.
international internet marketing
The study on the negotiating behaviors across cultures revealed that compared to Japanese negotiators, Korean negotiators frequently
interrupted other speakers
One advantage of a matrix structure is that it _____.
involves transfer of knowledge and skills
What is an advantage of franchising?
it allows the parent company to grow quickly
The more innovative a product is observed to be, _____.
it becomes increasingly challenging to acquire consumer approval
In the context of the Product Component Model, an importance of the core component is that _____.
it can be altered to meet local preference
A partnership between legally incorporated entities that join forces to create a separate, legal entity, where each partner holds an equity position, is known as a(n) ______________
joint venture
A partnership of two or more companies with the goal of creating a separate legal entity is known as a ______.
joint venture
Two companies decide to pool their resources and create a company to exploit opportunities in a developing market. Their agreement is a good example of a _____.
joint venture
Do business in countries where the participants have a presence
joint ventures
According to the analysis of verbal behaviors in negotiators across cultures, the style of Japanese interaction is characterized by _____
less aggression and more politeness
According to the analysis of verbal behaviors in negotiators across cultures, the style of Japanese interaction is characterized by _____.
less aggression and more politeness
A product needs a greater degree of change for acceptance if a market is _____ developed.
less economically
Identify a market-entry strategy that will help a multinational company gain entry into a country market that is not receptive to companies with foreign owners.
licensing
Tactical plans are made at the _______ level and addresses marketing and advertising questions
local
Tactical choices for international marketing should be made at the ______ of an organization.
lowest level
Solving translation problems when companies negotiate with foreign companies can _____.
make the negotiations more efficient
A strategic international alliance aids international marketing by _____.
making a company more profitable
Once target markets are chosen, the ______ must be assessed with regard to the information yielded in the first phase of the planning process
marketing mix
Both marketers and communication researchers who study diffusion seek to
minimize the interval between the launch and acceptance of an idea or a product
A culture needs time to accept a new product. This is essential knowledge for marketers because it _____.
minimizes marketers' expectation that profitability will occur quickly
One advantage of clustering operations in specific regions is that clustering _____
minimizes problems caused by varying time zones
The major objective of the second phase of planning for international marketing is to _____.
modify a marketing mix to the cultural realities of the target country
Direct foreign investment will flourish with _____.
more free trade region
In comparison to Japanese negotiators, Korean negotiators used
more punishments and commands
According to the study of verbal behaviors of negotiators across different cultures, the negotiation style of the French negotiators was the _____
most aggressive
To control solid waste, manufacturers in the EU must _____.
offer financial assistance to centrally collect solid waste
In the process of franchising, franchisers _____.
offer management assistance to franchisees
In global marketing, the major objective of the fourth phase of the planning process is to _____.
organize and direct implementation
Joint ventures are
partnerships between legally incorporated entities and not between individuals.
A major element that influence the success of a franchise is
past international experience of the franchiser
The conversational style of Japanese negotiators is typically characterized by _____
periods of silence
Planning for global markets involves:
preparing for unknown and uncontrollable circumstances that mat affect the company
ComfyLife Corp., a manufacturer of home appliances, plans to launch a new line of refrigerators in Murico, a developing region. Because power supply is irregular in that region, the company re-designs its refrigerators so that they can function efficiently even during power failures. This scenario is a possible example of _____.
product homologation
Strategic planning is conducted at the highest levels of management and deals with:
products, capital, research, and the long- and short-term goals of the company
According to the simulated negotiation study, the Israeli negotiators used the highest percentage of _____
promises and recommendations
A culture needs time to accept a new product. This is essential knowledge for marketers because it _____.
provides a time frame to avoid product homologation
A product is a bunch of utilities or satisfactions that a customer receives, including _____ satisfaction
psychological
According to the study on simulated negotiations across cultures, the Germans were low on the percentage of _____
questions asked
Identify a similarity between Russian and Japanese negotiation styles.
rarely using the words "no" and "you"
In global marketing, the results of the first phase of planning help marketers _____
recognize potential issues in a new country market
In global marketing, the results of the first phase of planning help marketers _____.
recognize potential issues in a new country market
A drawback of licensing is that licensees
require supervision
The study conducted on verbal behaviors of negotiators across cultures revealed that the Germans were extraordinarily high in percentage of _____
self-disclosures
The videotaped simulated negotiation study suggested that the Spanish negotiators were low on the percentage of _____.
self-disclosures
Rachel owns a small business that deals in custom wear and accessories. She wants to expand her business worldwide and is launching an online portal under her label. To open an effective online business, she will have to ensure that _____.
she has easy access to delivery services that operate internationally
In a matrix structure, the management _____.
solves problems that happen in any region
Cultural stereotypes should be avoided in international business negotiations because _____.
stereotypes are grossly oversimplified overgeneralizations
A business relationship in which two or more companies share risks in achieving common objectives and cooperate out of mutual need is known as a ______.
strategic international alliance
Wonderscreens Inc., a U.S. based company, is a renowned global manufacturer of laptops. The laptops manufactured by Wonderscreens Inc. fail to gain popularity among consumers in a few countries, and the company does not make the desired profit there. In this scenario, the laptops fail to sell because _____.
the customer does not need or cannot afford the company's product
When a market analyst studies a product's features using the self-reference criterion, _____.
the product's cultural significance may be misjudged
Consortia reduce hazards associated with big investments because _____.
they generally involve a greater amount of participants
The ______ phase of planning for global markets begins with a situation analysis and ends with the selection of specific action plans for a new country market.
third
In the process of franchising, the franchiser _____.
utilizes the franchisee's awareness of the local market
A study of simulated negotiations found that there is a similarity among negotiators across different cultures in _____
verbal bargaining behaviors
"Quality" is defined by customers in terms of _____.
what they want and their ability to pay for it