MKTG 452 CH 7

A global segment is referred to as "global teens" which includes: A) people between the ages of 12 and 19. B) affluent, well-traveled persons. C) young, global travelers. D) technology professionals. E) persons having power.

A

A global segment is referred to as "global teens" which includes: A) people with shared interest in fashions. B) affluent, well-traveled persons. C) movie stars. D) technology professionals. E) persons having power.

A

An example of a trap that marketers can set for themselves while targeting a foreign market is to: A) overstate the size and short-term attractiveness of individual country markets. B) realize that short-term profit and revenue growth objectives may be hard to achieve. C) restrain from being persistent to enter a country market. D) ignore shareholders' or competitors' pressure not to "miss out" on a strategic opportunity. E) enter a market based on time-consuming rigorous market analysis.

A

Consumers shopping for high-touch products, such as fine perfume, are generally energized by ________ motives. A) emotional B) rational C) both emotional and rational D) neither emotional nor rational E) high-tech

A

Global marketing authority, Theodore Levitt, has noted that many ethnic and regional foods-sushi, for example-are enjoying popularity in many countries of the world. This observation is known as the: A) pluralization of consumption. B) ethnicitization of consumption. C) democratization of consumption. D) sophistication of consumption. E) domestication of consumption.

A

Some of Body Shop's recent advertising has emphasized the difference between the company's principles and those of "mainstream" cosmetics companies on such issues as animal testing. As described here, Body Shop's ads illustrate positioning by: A) competition. B) niche. C) quality/price. D) attribute/benefit. E) culture.

A

A global segment is referred to as "global elite," which includes: A) people between the ages of 12 and 19. B) affluent, well-traveled persons. C) the graying population. D) technology professionals. E) persons having power.

B

Diageo PLC, V&S Vin & Spirit AB, and Seagram and other marketers know that Russians consume a great deal of vodka. This type of market segmentation can be classified as: A) demographic. B) behavioral. C) psychographic. D) occupational. E) benefit.

B

For years, ads for Volvo automobiles stressed safety features and protection in the event of a crash. Thus, Volvo automobiles developed a reputation based on which positioning strategy? A) use/user B) attribute/benefit C) competition D) high touch E) quality/price

B

In response to increasing worldwide concerns about obesity, diabetes, and other food-related health issues, some of the world's largest food companies are developing new products. Nestlé and Groupe Danone SA have developed several health-foods which include all of the following except: A) Souvenaid. B) Activa. C) NutriChoice. D) Nutraceuticals. E) Medical Foods.

B

Marketing that involves creating the same marketing mix for a broad mass market of potential buyers is referred to as: A) differentiated target marketing. B) standardized global marketing. C) concentrated global marketing. D) competitive global marketing. E) target benefit marketing.

B

The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers. All of the following are variables that are commonly used except: A) demographics. B) polycentrics. C) behavioral characteristics. D) benefits sought. E) psychographics.

B

The strategy that identifies a brand as a symbol of a particular global segment is known as: A) foreign consumer culture positioning. B) global consumer culture positioning. C) local consumer culture positioning. D) global market positioning. E) demographic market positioning.

B

Which of the following is true about efforts by automakers to target the Hispanic segment in the United States? A) Honda, Toyota, Ford, and GM all began targeting the segment years ago. B) Honda and Toyota began targeting the segment years ago; Ford and GM launched their efforts more recently. C) Ford and GM began targeting the segment years ago; Honda and Toyota launched their efforts more recently. D) Only Ford and GM are targeting the Hispanic segment. E) none of the above

B

BMW advertises its cars as the "ultimate driving machine" which is described as positioning based on: A) high touch. B) use/user. C) attribute/benefit. D) competition. E) quality/price.

C

Based on 2013 projections, the top 10 nations ranked by per capita income does not include: A) Switzerland. B) Qatar. C) Russia. D) Norway. E) Australia.

C

Coskun Samli had developed a useful approach to global market segmentation that compares and contrasts "conventional" versus "unconventional" wisdom. An example of unconventional wisdom can be identified with one of the following assumptions: A) Since per capita annual income in India is about $1,420, all Indians have low income. B) Consumers in Europe and Latin America are interested in World Cup soccer whereas Americans are not. C) There is a presence of a higher-income, middle-class segment in India. D) The potential customer base for McDonald's in India is greater than in any developed country. E) There is no running water and electricity in India.

C

Demographic segmentation is based on measurable characteristics of populations which includes all of the following examples except: A) Asia is home to 500 million consumers aged 16 and younger. B) India has more than half of the population younger than 25. C) Consumers that buy Porsches would like to be noticed. D) The United States is home to 28.4 million foreign-born residents with combined income of $ 233 billion. E) In the EU, the number of consumers aged 16 and under is rapidly approaching consumers aged 60.

C

Ericsson, IKEA, Saab, and other companies based in Sweden have looked beyond their borders for significant growth market because: A) Sweden has high total annual income. B) Sweden has low total annual income. C) Sweden has a fairly small population. D) Sweden is land locked geographically. E) Sweden has relaxed export policies.

C

In a study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" researchers identified different lifestyle groups. The segment that is concentrated in high-crime, inner-city neighborhoods were classified as: A) Successful Idealists. B) Affluent Materialists. C) Disaffected Survivors. D) Trendy Teens. E) Comfortable Belongers.

C

Porsche AG uses the label "Top Guns" to describe one segment of its customers, namely those who care about power and control and who expect to be noticed. Such a profile would be based on which type of segmentation? A) demographic B) occupational C) psychographic D) behavioral E) gender

C

Positioning refers to the act of: A) determining what areas of the globe to target. B) ensuring a choice retail shelf location. C) differentiating a brand in customer's mind. D) formulating a private label strategy. E) formulating a companion product.

C

Psychographic segmentation involves grouping people in terms of their: A) combined household income. B) age and income. C) attitudes, values, and lifestyle. D) psychological well being. E) gender.

C

SRI International developed Values and Lifestyles (VALS). Such a consumer profile would be helpful for which type of segmentation? A) demographic B) occupational C) psychographic D) behavioral E) gender

C

Several years ago, the D'arcy Massius Benton & Bowles (DMBB) agency created psychographic profiles for several countries and regions." Which region did the survey specifically focused on? A) Asia B) America C) Europe D) Australia E) Far East

C

The DMBB (D'arcy Massius Benton & Bowles) agency created a psychographic profile of the Russian market. The categories include all of the following except: A) Kuptsy. B) Cossacks. C) Elites. D) Students. E) Business Executives.

C

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? A) standardized global marketing B) concentrated global marketing C) differentiated global marketing D) psychographic global marketing E) none of the above

C

The basis for global marketing expert David Arnold's framework for screening intercountry comparisons include: A) demographic data. B) "top-down" segmentation analysis. C) "bottom-up" segmentation analysis. D) income level. E) population data.

C

The concentration of income in the high-income and large-population countries means that a company can be "global" by targeting buyers in: A) just 50 countries. B) just 20 countries. C) just 10 or fewer countries. D) just 30 countries. E) none of the above

C

The world's best-known cosmetics companies are setting their sights on a lucrative new market segment: the emerging middle classes in countries such as Brazil, Russia, India, and China. However, these companies have to understand: A) that women's preferences for cosmetics are same in all countries. B) that Chinese consumers are not willing to invest in beauty products. C) what beauty means to Chinese women. D) that working Indian women currently prefer only local brands. E) cosmetics are preferred mostly by the top end of the market in China.

C

Three Mexican retailers Famso, Grupo Gigante SA, and Grupo Comercial Chedraui SA have opened stores in the United States. This is an indication of: A) U.S. retailers were lagging behind in collecting demographic information. B) the Mexican retailers provide better products than American stores. C) the Hispanic American segments represent a great opportunity for marketers. D) American businesses cannot compete with Mexican retailers. E) the Mexican retailers would like to compete with businesses like Best Buy and Circuit City.

C

When a marketer understands that a product satisfies a buyer's rational criteria while also evoking an emotional response, the marketer should: A) only target consumers in high-income countries. B) utilize a multi-tiered targeting strategy rather than a concentrated strategy. C) commission psychographic segmentation studies to augment demographic data. D) create advertising that reflects a bipolar, high-tech and high-touch approach. E) follow normal targeting strategy.

C

When identifying global market segments, a fundamental guiding principle should be the need to determine: A) shared demographic characteristics. B) similar languages. C) similar needs and buying behavior. D) similar ethnic backgrounds. E) similar geographic regions.

C

Which of the following is generally true about the marketing of high-touch products such as fine china and crystal? A) It relies equally on specialized information and image. B) It relies less on image and more on specialized information. C) It relies less on specialized information and more on image. D) Neither image nor specialized information is relevant to the marketing of high-touch products. E) It relies partially on specialized information and partially on image.

C

Which of the following is true of advertising for the Heineken and Foster's brands in the United States? A) Both Heineken and Foster's utilize the GCCP strategy. B) Both Heineken and Foster's utilize the FCCP strategy. C) Heineken utilizes the GCCP strategy; Foster's utilizes the FCCP strategy. D) Heineken utilizes the FCCP strategy; Foster's utilizes the GCCP strategy. E) Heineken utilizes the LCCP strategy; Foster's utilizes the GCCP strategy.

C

"Usage rates" and "user status" are important criteria for which segmentation variable? A) demographic B) occupational C) psychographic D) behavioral E) benefit

D

According to Euromonitor International, the global market for foods that offer health benefits is currently worth about $________ billion in annual sales. A) 300 B) 400 C) 500 D) 600 E) 700.

D

Campbell's Soup is making significant inroads into Japan's $500 million soup market as time-pressed homemakers place a premium on convenience. This type of consumer segmentation by Campbell's Soup is referred to as: A) demographic. B) occupational. C) psychographic. D) benefit. E) behavioral.

D

Global automakers are targeting the U.S. market with SUVs. All of the following SUVs are assembled or manufactured in the listed country except: A) Porsche in Germany. B) Honda in Japan. C) Volkswagen in Slovakia. D) Kia in India. E) Mercedes-Benz in the United States.

D

McDonald's operates in over 118 countries; however, 80% of its restaurants are located in nine countries which does not include the following country market: A) Australia. B) Brazil. C) Germany. D) India. E) Japan.

D

Nutraceuticals are health food products which are manufactured by: A) Kraft foods. B) General Mills C) Campbell's soups. D) Nestlé foods. E) Gerber foods.

D

The concentration of wealth in a handful of industrialized countries has significant implications for global marketers. After segmenting in terms of a single demographic variable-income- a company can reach the most affluent markets which does not include: A) half of the EU nations B) all of North America C) Canada and Mexico D) 90 percent of the world's population E) Japan.

D

The law of disproportionality suggests that ________ percent of the company's menu or profits are accounted for the 20 percent of a firm's products or customers. A) 50 B) 60 C) 70 D) 80 E) 90

D

Basic criteria that marketers should keep in mind while assessing opportunities in global markets include all of the following except: A) current size of the market segment. B) anticipated growth potential of the market. C) compatibility with company's overall objectives. D) competition in the market. E) securing first mover advantage.

E

Both Nestlé and Cadbury determined that a liquid chocolate confection would be one way to address the issue of India's hot weather. This is an example of: A) differentiated target marketing. B) standardized global marketing. C) competitive global marketing. D) target benefit marketing. E) product-market decision

E

Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market. The first-mover advantages include all of the following except: A) best chance of becoming world leader. B) advantage in adapting to the local culture. C) lead in advertising and promotion exposure. D) gain business experience. E) substantial investments in marketing.

E

In 2013, the 10 most populous countries in the world accounted for just over ________ percent of the world income. A) 20 B) 30 C) 40 D) 50 E) 60

E

In the study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" researchers identified four lifestyle groups. The group that represents mainstream European consumers was labeled as: A) Successful Idealists. B) Affluent Materialists. C) Young Professionals. D) Trendy Teens. E) Disaffected Survivors.

E

India's vehicle market can be segmented into: A) First time car buyers B) Generation Y drivers C) different age group drivers D) women drivers E) scooter and motorcycle drivers

E

Managers must decide how well a company's product fits the country market by asking all of the following questions except: A) Will adaptation be required? B) Will import restriction drive up the product price? C) Is it advisable to source locally? D) Will strong home currency have an adverse impact on product price? E) Will it be possible to neglect home-country regulations?

E

Procter & Gamble has identified a group of consumers in Europe who are willing to pay premium prices for pet food that will improve the health of their pets. This is an example of ________ segmentation. A) demographic B) psychographic C) ethnic D) behavioral E) benefit

E

Sony's U.S. consumer segments include all of the following except: A) Affluent. B) Zoomers. C) SoHo. D) Gen Y. E) Fashionists.

E

The efforts of global companies to reach low-income consumers in emerging markets highlight the importance of skillful global market segmentation and targeting. Market segmentation represents: A) targeting prospective customers. B) finding customers who can respond to advertisement. C) promoting products and services internationally. D) identifying customers who can help in promoting products. E) identifying customers based on common characteristics.

E

The feasibility of targeting a particular market segment can be negatively impacted by various factors. Which of the following is not of those factors? A) regulatory hurdles. B) cultural barriers. C) lack of distribution system. D) time required to establish business. E) surplus demand.

E

The trend showing popularity of ethnic or regional foods such as sushi, falafel, or pizza worldwide is referred to as the ________, which provides an opportunity for marketers to pursue one or more segments on a global scale. A) segmentation of markets B) popularity of segmentation C) promotion of products and services D) identification of consumers E) pluralization of consumption

E

Which of the following criteria should marketers use when assessing opportunity in global target markets? A) current size of the segment B) anticipated growth potential C) competition D) compatibility with company's overall objectives E) all of the above

E

A market segment or country market characterized by weak competition may be a segment to avoid.

F

A psychographic segmentation, "Comfortable Belongers" refers to "up-and-comers" of a country's population.

F

By 2030, 30 percent of the U.S. population will be 65 years or older versus 13 percent today.

F

Categories such as "successful idealists" and "affluent materialists" can be used to describe age segmentation.

F

Dove, a division of Unilever, traditionally targeted men and women with its Dove-branded skin care products.

F

Eighty percent of McDonald's restaurants are located globally in more than 20 countries.

F

For behavior segmentation, marketers use the 80/20 rule when assessing the consumers' usage rate, which means that 20% of the company's revenues or profits are accounted for by 80% of the firm's products or customers.

F

For some consumer products such as cigarettes, soft drinks, and candy that have a low per-unit cost, income is often a more valuable segmentation variable than is population.

F

France has a fragmented shop system that consisted of small, specialized stores such as the boulangerie and charcuterie; which became a part of France's national heritage.

F

IKEA, the home furnishings retailer based in Sweden, wraps itself in the Swedish flag—literally, since inside and out, their stores are decorated in the national colors of blue and yellow. This is an example of local consumer culture positioning.

F

India is the world's fastest growing cell phone market with the industry expanding at a rate of 50% annually with 5 million new subscribers added every month. This is an indication of continued private-sector growth.

F

Late movers in global markets can never succeed even by developing innovative business models.

F

Sometimes it is preferable to market to a particular age group rather than a mind-set; in such an instance, psychographic studies can help marketers arrive at a deeper understanding of consumer behavior than is possible with traditional segmentation variables.

F

Standardized global marketing is analogous to mass marketing in a single country and is also known as differentiated target marketing.

F

When assessing potential country target markets, management should rely heavily on its network of contacts as a primary criterion for targeting.

F

When making a decision about market entry timing, a company's management team should understand that the first-mover always becomes the market leader.

F

After convening worldwide employee conferences to study women's shaving preferences, Schick-Wilkinson Sword introduced a shaving system for women that features a replaceable blade cartridge.

T

As Emirates and other middle eastern carriers penetrate more deeply into the world's largest aviation market, they are becoming known for very high-quality in-flight service.

T

BMW's slogan "the ultimate driving machine," is an example of an attribute or benefit which has proven successful in their positioning strategy.

T

Benetton uses the slogan "United Colors of Benetton" to position itself as a brand concerned with the unity of humankind. This type of strategy is referred to as GCCP (global consumer culture positioning).

T

Despite having comparable per capita incomes, other industrialized countries are nevertheless quite small in terms of total annual income.

T

Differentiated global marketing represents a more ambitious approach than concentrated target marketing.

T

Global market segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires.

T

Global marketers must determine whether a standardized or an adapted marketing mix is required to best serve the wants and needs of the consumers.

T

Ideally, GDP and other measures of national income converted to U.S. dollars should be calculated on the basis of purchasing power parities or through direct comparisons of actual prices for a given product.

T

Implicit or explicit reference to competitors can provide the basis for an effective positioning strategy

T

In the cosmetics industry, Unilever pursues differentiated global marketing strategies by targeting both ends of the perfume market.

T

India has the youngest demographic profile among the world's large nations with more than half of its population being younger than 25 and the number of young people below the age of 14 is greater than the entire U.S. population.

T

Lexus developed new diesel models as well as a gas-hybrid engine because Germans want the option of buying vehicles with diesel engines.

T

Marketing model drivers are key elements or factors required for a business to take root and grow in a particular country market environment.

T

Middle eastern airlines have encountered some opposition. United Continental, American Airlines, and Delta have filed complaints with the US Government that the state-owned carriers are benefiting from substantial government subsidies.

T

One of the advantages of targeting a market segment globally is that although the segment in a single-country market might be small, even a narrow segment can be served profitably if the segment exists in several countries.

T

One of the first-mover disadvantages is that a late-mover competitor may reap benefit from the investments made in marketing and establishing in a particular country.

T

Pareto's Law suggests that 80% of a company's revenues or profits are accounted for by 20% of a firm's products or customers.

T

Sushi, falafel, tandoori chicken or pizza is in demand in many parts of the world. This phenomenon can be due to the pluralization of consumption and segment simultaneity.

T

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

T

There is a tendency to overstate the size and short-term attractiveness of individual country markets, especially when estimates are based primarily on demographic data such as income and population.

T

Unilever and other consumer goods companies often engage in differentiated target marketing, offering a full range of brands within a given product category.

T