mkt final quizzes

Large corporations in Korea hire fewer MBAs than their American counterparts because

They only place family members in top management positions ● they prefer to train their managers in-house They pay lower salaries It is very difficult to fire managers in Korea

A monochronic culture is one in which

all the people of a country have the same habits and preferences a manager is expected to manage multiple tasks schedules and agendas must bend to the needs of people ● activities are addressed one at a time, and schedules and agendas are respected

Compared to Sweden, France is a

common-law country future-oriented country ● high-power-distance society more neutral culture

Hofstede's measures

● Are useful in identifying cultural differences Are absolute measures Describe every individual in every society Are available for every society in every country

________ represent(s) the cumulative added value of a company's investment in the marketing of a brand over time.

● Brand equity

When operating in Muslim countries, US fast-food chains respect local traditions by

● Certifying their products as halal Not using any beef products Certifying their products as kosher Closing all day Friday

In the early 1970s, McKesson, an American firm, owned 31 percent of the shares of stock in the Iranian firm, Pak Dairy. During the Iranian revolution in 1979, the Iranian government seized and took full control of Pak Dairy by force. They did not pay McKesson for their losses. This is an example of a ____.

● Confiscation

Comparability of studies across cultures can be made difficult due to respondents trying to guess the answer the interviewer wants to hear. This leads to what kind of bias?

● Courtesy bias

Cultural changes occur rapidly; a change in leadership of the country can significantly change the culture of the country.

● False

In Korea, making eye contact is considered a sign of trustworthiness.

● False

Which product is too costly to transport long distances and is therefore a poor choice for export?

● Fresh orange juice

Which of the following is not a reason for branding?

● Leave market quicker

In typical feminine societies, which virtue is predominant?

● Modesty

Affective cultures express emotions openly, and persons from affective cultures can unnerve persons from neutral cultures.

● True

OPIC insurance covers losses due to currency inconvertibility.

● True

Sweden's smaller population explains why IKEA, Saab, and Ericsson have looked beyond their borders for significant growth opportunities.

● True

Market entry through acquisitions is an attractive option when

● a market is saturated with competitors.

People who are uncertainty-avoidance

● are anxious in general

Export agents

● assist in exporting to one country or one part of the world.

Psychographic segmentation involves grouping people in terms of their:

● attitudes, values and lifestyle.

Anna Vischtung, who is fluent in German and English, composes the survey in English (version A). She hires a first translator to translate the survey from English to German (version B). She hires another translator to translate the document from German back into English (version C). She then compares the two English versions (version A and version C). Anna has conducted a(n) _____________ translation.

● back

Regulatory changes include

● changes in tax rates. ● revisions of labeling requirements. ●

In high-context cultures

● communication is implicit words tend to keep the same meanings in all situations communication is explicit

IKEA commissions a study on the Egyptian furniture market, including information about locally and foreign-owned furniture producers. IKEA has commissioned a(n) ____ study.

● competitive

For most Venezuelan family purchases, the husband makes the purchasing decision. In the United States, most family purchases are made jointly by the husband and wife. This illustrates differences in ____ between the two countries.

● consumer behavior

For business buyers the main factor influencing the purchase decision is the

● cost-performance criterion.

A taste test is administered in Mexico. An experienced international market researcher is concerned that respondents may say they like the product even if they did not. The researcher is concerned with possible ________, which is common in Mexican culture.

● courtesy bias

Tea is preferred in certain cultures; in other cultures coffee is the drink of choice. In some countries, white is the color worn at a funeral, but in other countries, black is commonly worn. In Turkey, cheese, tomatoes, cucumbers, and olives are common for breakfast, but cereal, milk, and juice are more common in the United States. These normative differences are due to cross-national differences in ___________.

● culture

Which of the following criteria should marketers use when assessing opportunity in global target markets?

● current size of the segment ● anticipated growth potential ● competition

Primary data refers to

● data collected specifically for the assignment.

Tin City Bicycles has decided to open a marketing subsidiary in Italy. Now the company will have to

● decide how to price, promote, and distribute its bicycles in Italy.

A licensing agreement typically

● decreases exposure to political risk for the licensor.

The Swatch Group markets watches in all price ranges, from the Swatch brand at the low end to luxury brands such as Longines, Blancpain, and Breguet. Which target market strategy does this illustrate?

● differentiated global marketing

The Nigerian government decided to host the All-Africa Games in 2003, despite the fact that building costs for a new stadium exceeded $340 million, twice what the government planned to spend on health care for one year. This action was motivated by the Nigerian government's interest in ____.

● enhancing national prestige

A study designed to better understand the economic, political, and legal context of a national market is called a(n) __________ study.

● environmental

GlobalNOW!, a management consulting company, is debating whether or not they should set up a subsidiary in Germany. They ask their marketing research department to prepare a report on the political, economic, social-cultural, and legal characteristics of the German market. The marketing research department bases their report on data found on the Internet, in periodicals, and reports published by the German embassy, the Economist Intelligence Unit, and the U.S. Department of Commerce. The marketing department has been asked to prepare a(n) ____ study based on ____ research.

● environmental; secondary

Eight women are invited by a market research company to participate in a group discussion about a new skincare product produced by Estée Lauder. A moderator leads the group discussion. Representatives from the Estée Lauder company watch the group discussion in the next room through a one-way mirror. The group discussion is called a(n) ____ study.

● focus group

A major goal of the European Union government is to provide full employment and increasing standard of living for its citizens by encouraging foreign investment in the EU and promoting EU exports in foreign markets. These actions are motivated by the EU government's interest in ____.

● fostering national prosperity.

A focus group consisting of eight women in Brazil can take an hour longer than a similar focus group in the United States due to the considerable time participants invest up front in getting to know one another. After all, introductory chats are common in ____ cultures.

● high-context

An American company sets up a subsidiary in Thailand, including a production facility and marketing/sales office. In this example, Thailand is a(n) ____ country

● host

A country that contains an operational unit of an international company is called a

● host country

With a trend toward the dissolution of nuclear families in Western Europe, there has been a(n)

● increase in the demand for consumer durables

If a country has a surplus of labor, then

● labor-intensive methods of manufacturing are appropriate.

In the case of indirect exporting,

● markets are reached through intermediaries in the exporters' home market.

Confucianism is

● not a religion

The Iraqi government limits foreign ownership of businesses in Iraq to 49 percent. This is an example of a(n) ____.

● ownership restriction.

Before entering into the Syrian market, a Danish consumer packaged goods company requests a consulting firm to analyze the possibility that an unexpected and drastic change due to political forces will result in adverse circumstances for their potential operations in Damascus. The Danish company has asked the consulting company for a(n) ____ assessment for the Syrian market.

● political risk

Focus groups in Thailand, Malaysia, and Indonesia typically show up late -- if at all -- for focus groups due to their countries' ____ culture.

● polychronic

Brazil is an example of a(n)

● polychronic society

A factor influencing government purchasing is

● preference for local suppliers. ● protection of national security. ● protection of local industry.

For nearly 50 years, North Korea has pursued the strategy of juche, or self-reliance, trading very little with the outside world except with fellow communist states of China and Russia. This is because of the North Korean government's interest in ____.

● promoting national ideology

The main reason countries limit foreign ownership of newspapers, television, and radio stations is to

● protect national sovereignty.

In the past, Iran and Venezuela have attempted to outlaw foreign brand names, requiring international marketers to establish names for their products in Persian and Spanish. These governments were interested in ____.

● protecting cultural identity

In July 2005, the U.S. Congress blocked China's plans to acquire the U.S. oil and gas company, Unocal. Congress argued that crucial raw materials, such as oil, should not be controlled by an economic rival. This action is motivated by the American government's interest in ____.

● protecting national security.

For many years, Romania promised all export-oriented foreign investors a five-year tax holiday if they set up a factory in Romania. Recently, this tax holiday was revoked. Now all foreign investors must pay the same taxes as local companies. Romania has just undergone ____

● regulatory change

The same customer survey is used by Toyota in Brazil and Japan. The survey gauges customer satisfaction via the use of a 10-point scale, where 1 indicates that the customer is "extremely dissatisfied" and 10 indicates that the customer is "extremely satisfied." A Brazilian consumer feels that he is marginally satisfied, so he circles the answer "8." A Japanese customer who is enthusiastically satisfied circles the answer "8." This example illustrates that there are often cross-cultural differences in ____.

● scalar equivalence

Taiwan Mirrors wants to enter the Vietnamese car mirror market but does not want to become involved itself in producing mirrors in Vietnam. However, the company does want to keep control over the marketing of its mirrors in Vietnam. Taiwan Mirrors should

● seek a contract manufacturer in Vietnam.

Should we target French housewives or French working women? Should we develop a different marketing mix for Brazilian teens than the one we developed for Brazilian adults? These questions concern the firm's ____ strategy.

● segmentation

In Australia, foreign ownership of television stations is limited to no more than 20 percent. It is feared that if a foreign country controlled the media, it could influence public opinion and national sovereignty. This regulation is motivated by the Australian government's interest in ____.

● self-preservation.

When identifying global market segments, a fundamental guiding principle should be the need to determine:

● similar needs and buying behavior.

An alliance involving two or more global firms in which each partner brings a particular skill or resource is called a

● strategic alliance.

Marketing subsidiaries are preferred over independent distributors because

● they provide better control of after-sale service.

Many Chinese firms acquired companies in foreign markets because

● they were late movers into those markets

A disadvantage of a licensing agreement is the

● uncertainty of production quality. ● nurturing of potential competitors. ● dependence on a local company to generate revenue.