Mktg 452 Chapter 1

) McDonald's restaurants in France do not look like McDonald's elsewhere. This is an example of: A) think locally and act globally. B) think globally and act locally. C) diversification. D) standardization E) adaptation

a

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

A type of advantage that a global company possesses by virtue of the fact that it has experience in more than one country is referred to as: A) Leverage. B) Transferability. C) Flexibility. D) Capability. E) Accountability.

a

Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the domestic U.S. market. This is most likely a result of: A) management myopia. B) national controls. C) opposition to globalization. D) newcomers from emerging markets. E) organizational culture.

a

Coke's worldwide success is based on: A) adaptation of the marketing mix. B) standardization of the marketing mix. C) selected elements of the marketing mix. D) using local sales force and vending machines. E) using existing local infrastructure.

a

Ethnocentric orientation is sometimes associated with all of the following attitudes except: A) national arrogance. B) assumption of national superiority. C) indifference to marketing opportunities. D) selecting a standardized approach. E) selecting an adaptation approach.

a

McDonald's serves McAloo Tikki Burger in India, McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, and McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of a: A) combination of global and local marketing mix elements. B) reflection of failure of U.S. menu items in those countries. C) deviation from successful marketing practices. D) replacement of standard menu names with fancy names. E) selection of menu items that can be sold eventually in U.S. markets.

a

Nissan's earlier vehicles were difficult to start in many parts of the United States during the cold winter months. In northern Japan, it was customary for many car owners to put blankets over the hoods of their cars during winter months. Nissan's assumption was that Americans would do the same thing. This is an example of: A) ethnocentric orientation. B) polycentric orientation. C) regiocentric orientation. D) geocentric orientation. E) geopolitic orientation.

a

The largest single market in the world in terms of national income is the United States representing roughly ________ of the total world market for all products and services. A) 25% B) 35% C) 55% D) 65% E) 75%

a

Walmart exited from the German market due to the fact that Germans A) could find lower prices at discount stores. B) preferred shopping in larger malls. C) did not care for American businesses. D) preferred "all-in-one" store. E) preferred only European businesses.

a

When a country like China is experiencing rapid economic growth, policymakers are likely to: A) look more favorably on outsiders. B) look less favorably on outsiders. C) experience more resistance toward outsiders. D) feel threatened by outsiders. E) none of the above

a

A fundamental difference between regular marketing and global marketing is the: A) lack of marketing mix. B) scope of activities. C) lack of strategic planning. D) focus on resources. E) lack of communication.

b

At Procter & Gamble, one of the problems they were facing was that 80-plus country teams were all acting independently. Pampers Europe was not collaborating with Pampers North America. This example illustrates the differences due to their: A) geocentric orientation. B) regiocentric orientation. C) polycentric orientation. D) ethnocentric orientation. E) poor globalization orientation.

b

Burberry's global marketing strategy of offering "affordable luxury" to customers in the United States, with a value proposition of being more expensive than Coach and less expensive than Prada represents a focus on: A) product. B) price. C) promotion. D) position. E) place.

b

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 the Philippines and McDo in France.

b

In their book, Daniel Yergin and Joseph Stanislaw wrote "Governments are getting out of businesses by disposing of what amounts to trillions of dollars of assets. Everything is going-from steel plants and phone companies . . . to hotels, restaurants, and nightclubs." This is an indication of: A) the fact that governments can make more money by selling assets. B) privatization is becoming a driving force for global marketing. C) these businesses are considered as closed markets. D) foreign companies are competing with governments. E) there is less demand for these type of companies.

b

Starbucks entered India via an alliance with the Tata Group. They are sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. This is an example of: A) Market Penetration. B) Market Development. C) Market Diversification. D) Product Development. E) Regular Marketing.

b

The best-selling smartphone in China is marketed by: A) Samsung. B) Xiaomi. C) Apple. D) Mitsubishi. E) Android.

b

The cell phone division of Toshiba prospered by doing business in the domestic market. When handset sales slowed, Atsutoshi Nishida, president of Toshiba noted, "We were thinking only about Japan. We really missed our chance." This statement is indicative of ________ orientation. A) polycentric B) ethnocentric C) geocentric D) technocentric. E) regiocentric

b

The dimensions of global marketing strategy include all of the following except: A) Concentration of marketing activities B) Development of cultural activities C) Coordination of marketing activities D) Integration of competitive moves E) Integration of marketing mix

b

The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as: A) Value = Price/Benefits. B) Value = Benefits/Price. C) Value = Benefits × Price. D) Value = Benefits - Price. E) Value = Benefits + Price.

b

The marketing mix is integral to the value equation which is represented by: A) Value = Price/Benefits. B) Value = Benefits/Price. C) Value = Benefits × Price. D) Value = Benefits - Price. E) Value = Benefits + Price.

b

The success of Uniqlo's retail stores can be attributed to it's decision to: A) remain in Japan. B) locate in high population density areas. C) locate in low population density areas. D) manufacture most of their products in Japan. E) become the world's number one apparel retailer.

b

Unilever, the Anglo-Dutch consumer products company, at one time had 30 different package designs and 48 different formulations for its Rexona deodorant brand. This is an example of: A) ethnocentric orientation. B) polycentric orientation. C) regiocentric orientation. D) geocentric orientation. E) transnational orientation.

b

A company that succeeds in global marketing: A) pursues a "one size fits all" strategy by creating identical products for homogeneous markets. B) customizes special products for each world country or region. C) creates both standardized and localized products. D) nurtures an ethnocentric management orientation. E) uses localized products only.

c

An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans as well as the extent to which adaptation is desired. The way a company addresses this task is a reflection of the company's: A) market penetration. B) market diversification. C) global marketing strategy. D) product development. E) product standardization.

c

As apparent from the 2014 rankings of Fortune magazine's global 500 companies, Volkswagen is trying to unseat ________, the world's most valuable car company. A) GM B) Daimler AG C) Toyota D) Ford E) Chrysler

c

Companies that fail to formulate adequate responses to the challenges and opportunities of globalization will face all of the following consequences except: A) getting absorbed by visionary enterprises. B) getting absorbed by dynamic enterprises. C) becoming locally profitable enterprises. D) undergoing wrenching transformations. E) simply disappearing from the business horizon.

c

Harley-Davidson's competitive advantage is based, in part, on it's A) shifting production outside of the United States. B) new production facility in China. C) "Made in the USA" positioning. D) simultaneous production of Buell Motorcycles. E) acquiring MV Augusta, an Italian motorcycle manufacturer.

c

In the United States, some people believe that globalization has depressed the wages of American workers resulting in the loss of both blue-collar and white-collar jobs. This is an example of: A) discrimination. B) domination. C) globaphobia. D) management myopia. E) economic crisis.

c

Nike recently adopted the slogan "Here I am" for its pan-European clothing advertising targeting women. The decision to drop the famous "Just do it" tag line was based on the research indicating that: A) the famous slogan did not have accurate translation in European languages. B) Europeans do not like tag lines that portray American thinking. C) college-age women in Europe are not as competitive about sports as men are. D) the old slogan conveys superiority of men over women. E) European women want to differentiate themselves from men.

c

Pfizer, Merck, Novartis, and other pharmaceutical companies have little choice but to engage in global marketing since: A) there is little demand for their products in home countries. B) their research centers are located overseas. C) no single market is large enough to recover costs incurred in research. D) there is more demand overseas for their products. E) technology is not available in home countries.

c

Starbucks dropped the word "Coffee" from its logo. This is an example of: A) Standardization. B) Adaptation. C) Diversification. D) Automation. E) Modernization.

c

Statements that illustrate the success of global marketing include all of the following except: A) the Coca-Cola Company supports its Coke brand by utilizing global and local marketing mix. B) Apple is synonymous with cutting-edge innovation and high-tech design. C) Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs. D) the backbone of Caterpillar's global success is its network of dealers. E) Germany's reputation for engineering and manufacturing provides a competitive advantage.

c

The former chairman of Nestlé recently told an interviewer: "We are food and beverages. We are not running bicycle shops. Even in food, we are not in all fields. There are certain areas we do not touch. Also, we have no soft drinks because I have said we either buy Coca-Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically? A) customer value B) competitive advantage C) focus D) myopia E) policy of dealing only with Swiss businesses

c

The worldview of a company's personnel can be described by all of the following types of orientation except: A) Ethnocentric. B) Geocentric. C) Technocentric. D) Polycentric. E) Regiocentric.

c

Even though the dollar value of the home market for Japanese companies is the third largest in the world, the market outside Japan is ________ of the world market potential for Japanese companies. A) 40% B) 55% C) 70% D) 90% E) 95%

d

In global markets, Starbucks is a good example of simultaneously executing all of the growth strategies except: A) Market penetration. B) Market development. C) Product development. D) Market orientation. E) Diversification.

d

McDonald's developed a vegetarian burger in India. This is an example of: A) Market Penetration. B) Market Development. C) Market Diversification. D) Product Development. E) Global Marketing.

d

McDonald's has been in many country markets long enough that a new generation of consumers has grown up with McDonald's and are not aware of the company's U.S. origins. On the basis of this summary, what is the highest stage of corporate development that McDonald's arguably has achieved? A) international B) multinational C) global D) transnational E) myopic

d

Renault and its rivals are racing to offer middle-class consumers a new value proposition by selling cars for the equivalent of $10,000 or less. On the heels of Renault's success with Dacia Logan came the $2,500 Nano from India's Tata Motors. This illustrates that: A) consumers are looking for low price irrespective of quality. B) Renault is overcharging for their cars compared to their competitors. C) higher product development costs are a driving force behind globalization. D) market success depends on reaching a threshold of acceptable quality for consumers. E) cars are not very popular in emerging markets like India.

d

Walmart's exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as: A) All-in-one stores. B) Dollar stores. C) Discount sores. D) Hard discounters. E) Fresh & Easy stores.

d

________ refers to some type of advantage that a company enjoys by virtue of the fact that it has experience in more than one country. A) Transferability B) Capability C) Accountability D) Leverage E) Flexibility

d

A key factor that distinguishes transnational companies from international companies is their ________ for the marketing program. A) use of localized elements B) use of extension elements C) needs assessment D) domestic research E) mind-set

e

A number of multilateral trade agreements have accelerated the pace of global integration which include: A) NAFTA. B) GATT. C) WTO. D) EU. E) all of the above

e

According to the Fortune magazine's ranking of the global 500 companies for 2014, the largest corporation based on revenues is: A) Exxon Corporation. B) Toyota Motors. C) Royal Dutch Shell. D) General Electric. E) Walmart stores.

e

All of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix except: A) McDonald's standardizes some product elements and adapts others. B) McDonald's standardizes some place elements and adapts others. C) McDonald's standardizes some promotion elements and adapts others. D) McDonald's standardizes some price elements and adapts others. E) McDonald's standardizes all product elements.

e

Some globalization strategies do not yield the expected results as evidenced by the: A) acquiring of majority stake in Nissan Motor by Peugeot Citroen. B) leverage resulting from scale economies. C) leverage resulting from manufacturing. D) larger scale improvement of quality. E) unravelling of the DaimlerChrysler merger.

e

Today, the success of Honda and Toyota in world markets is primarily due to: A) exporting cars from factories in Japan. B) reporting cars are made in the USA. C) exporting cars from Japan to European countries. D) assembling cars in Japan and Europe. E) manufacturing cars in the Americas, Asia, and Europe.

e

Transnational companies, such as Toyota and Honda, have characteristic features that include: A) being in both global markets and utilizing global supply chains. B) characterized by a mind-set of being "stateless." C) using both localized and standardized elements in marketing programs. D) decisions made on the basis of ongoing research. E) all of the above.

e

t/f A company which is ethnocentric will expand geographically.

f

t/f An industry is considered to be global to the extent that its industry position in one country is dependent upon the industry position in other countries.

f

t/f If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered to be having a lack of strategic focus and missed opportunity.

f

t/f Leverage from scale economies is limited to manufacturing industries.

f

t/f McAloo Tikka potato burger offered in India is an example of standardization.

f

t/f McDonald's global marketing strategy is based primarily on local marketing mix elements.

f

t/f Nonmonetary costs do not factor into the equation of value, which is represented by the equation Value = Benefits/Price.

f

t/f Starbucks entered India via an alliance with the Tata Group. This is an example of "market penetration."

f

t/f Starbucks offers a loyalty card and rewards program in the United States with an app that displays a bar code that can be scanned by the barista. This is an example of "market development."

f

t/f The geocentric orientation represents a synthesis of ethnocentrism and regiocentrism.

f

t/f The term "polycentric" describes management's belief or assumption that each country in which a company does business is the same as the home country business.

f

t/f The value equation can be represented as Value = Price/Benefits.

f

t/f U.S. companies that wish to achieve maximum growth potential must "go global," because 25 percent of world market potential is outside their home country.

f

t/f A U.S. company that focuses on the countries included in the North American Free Trade Agreement (NAFTA) has a regiocentric orientation.

t

t/f A company with a geocentric orientation views the world as a potential market and strives to develop integrated global strategies.

t

t/f A critical reason why companies need to take global marketing seriously is survival

t

t/f A fundamental difference between regular marketing and global marketing is the scope of activities.

t

t/f A global company possesses the unique opportunity to develop leverage.

t

t/f According to Fortune Magazine, Walmart is ranked number one in revenue, although it currently generates only about one-third of its revenues outside the United States.

t

t/f Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the U.S. market

t

t/f Four decades ago, the phrase global marketing did not exist

t

t/f Globalization is presenting significant marketing opportunities to sports organizations such as the National Basketball Association and the National Football League.

t

t/f Globaphobia is a term which describes a hostile attitude toward global brands or company policies that appear to result in hardship for some individuals or countries while benefiting others.

t

t/f Multinational companies pursuing strategies of product adaptation run the risk of failing to be successful against global competitors that have recognized opportunities to serve global customers.

t

t/f Nike dropped its well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it with slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.

t

t/f People and organizations that are both able and willing to buy are considered as markets.

t

t/f Starbucks dropped the word "Coffee" from its logo when it acquired a juice maker and a bakery. This is an example of "diversification."

t

t/f Tang drink powder became a $1 billion brand as regional managers in the Middle East added mango and pineapple flavors.

t

t/f The essence of marketing is to surpass the competition at the task of creating perceived value.

t

t/f Toyota and Honda are two examples of companies that exhibit key characteristics of transnationality.

t

t/f When a company succeeds in creating more value for customers than its competitors do, that company is said to enjoy competitive advantage.

t