MKT 341 Exam 1 review questions

Dimensions of the PESTLE Model? P____ E____ S____ T____ L____ E____

Political Economic Social Technological Legal Environmental

True or False? Adaptation requires that business executives to abandon their culture/customs and adopt local customs.

False

True or False? All countries have agencies that collect information on a regular basis.

False

True or False? Civil law is a legal system based on tradition, past practices, and legal precedents while common law is an all-inclusive legal system of written rules of law.

False

True or False? Communication in low-context cultures depends heavily on the contextual (who says it, when it is said, how it is said), whereas in high-context cultures, it depends more on explicit, verbally expressed communications.

False

True or False? Laws governing marketing are the same in all countries.

False

True or False? The ability to conduct and analyze research is an unimportant skill.

False

True or False? Unplanned cultural change involves introducing an idea or product and deliberately trying to overcome resistance and to cause change that accelerates the rate of acceptance.

False

True or False? Additional complications that impact international research include communication and inventing completely new methods.

False (communication and context/environment)

True or False? In low power distance countries understanding the rank and status of clients and business partners is much more important than in high power distance societies.

False (high power distance)

True or False? Criticizing or joking about another country's politics, mores, and customs is a cultural elective.

False (it's an exclusive)

True or False? Company researchers must narrow the definition of competitors in international markets.

False (must broaden)

True or False? In high-PDI countries, subordinates are more likely to contradict their boss than in low-PDI countries.

False (other way around)

True or False? Ethnocentrism is an unconscious reference to one's own cultural values, experiences, and knowledge as a basis for decisions

False (self-reference criterion)

True or False? Cultural imperatives are the same in every country.

False (they vary)

True or False? A basic objective of the market research function is providing management with information for decision making.

True

True or False? A cultural elective in one county may be a cultural imperative in another.

True

True or False? A difficulty in marketing research is converting often ambiguous business problems into research objectives.

True

True or False? Aesthetics include art, folklore, music, drama, dance, and dress.

True

True or False? Business people should be able to differentiate between good and bad research.

True

True or False? Committee decision making is by group or consensus. This type of decision making is most likely found in large collectivist MNCs.

True

True or False? Differences between domestic and international marketing research include "cultural megashock" and psychological overload.

True

True or False? Even if a company is not global oneself, it is still affected by international business.

True

True or False? Information is a key component in developing successful marketing strategies and avoiding major marketing blunders.

True

True or False? Informational needs in international marketing includes a variety of categories, including market potential, general conditions and foreign exchange.

True

True or False? Management style is the business culture, management values, and business methods and behaviors existing in a country

True

True or False? Nationalism is an intense feeling of national pride and unity, an awakening of a nation's people to pride in their country.

True

True or False? One of the differences between domestic and international marketing research is there may be new parameters of doing business.

True

True or False? Participating in a cultural elective can show interest, good will, and sensitivity to that culture.

True

True or False? Researchers' language skills may impede access to secondary data.

True

True or False? Some U.S. laws still apply to U.S. businesses while operating in other countries, such as the Foreign Corrupt Practices Act and national security laws.

True

True or False? Superstitions can play a large role in a society's belief system and therefore, to make light of superstitions in other cultures can be a mistake.

True

True or False? The U.S. government, trade journals, other country websites, the United Nations, and newspapers can be secondary data sources.

True

True or False? The major difference between domestic and global marketing is the environment.

True

True or False? The unit of analysis might be global, a region, a country, a city, etc.

True

True or False? Typically common law countries award patents based on prior use while civil law countries award patents based on registration.

True

True or False? Typically, the most challenging and important adaptations global marketers must make are cultural adjustments.

True

If Apple assumes that it can sell its iPhone which was originally designed for the U.S. market virtually unaltered in every market, the company can be said to have what management orientation?

ethnocentric

What is the major difference between ethnocentric and geocentric management orientations?

geocentric: company views the world as one market and does not have a home/domestic market. develops global products ethnocentric: company design the product for the domestic market and does not make adaptations when entering a foreign market

What are each of the following? •Local-content laws •Import restrictions •Tax controls •Price controls •Labor issues

- local content laws: businesses must use a certain % of local resources in production - import restrictions: restrictions on the import of raw materials, machines, and parts - tax controls: can be used to control foreign investment -Price controls: govt set prices of certain types of products - labor issues: sometimes labor unions have a strong support from the govt

What are each of the following? •Tariffs •Quotas •Voluntary Export Restraints •Boycotts and Embargoes •Standards

- tariffs: tax imposed by the govt on goods entering its borders - quotas: specific unit or $ limit applied to a type of good - voluntary export restraints: when one country voluntarily agrees to limit its exports to another country - boycotts and embargoes: boycott- restriction on importing goods, embargo- refusal to sell to another country - standards: govt sets regulations about specifications a product needs to meet in order to import it into the country

Monochronic Time (M-time) vs. Polychronic Time (P-time) • _____ views time as something linear and an asset that can be saved, wasted, spent, and lost. _____ cultures tend to concentrate on one thing at a time and value promptness. • _____ operates on the view that the completion of a human interaction is more important than holding its schedules. _____ is characterized by the simultaneous occurrence of many things and is more focused on completeness.

1. Monochronic 2. Polychronic

Dispute Resolution: Litigation, Arbitration, & Conciliation • _____: non-binding agreement between parties to resolve disputes by asking a third party to mediate differences • _____: procedure in which parties in a dispute may select a disinterested third party or parties as referee to determine the merits of the case and make a judgment that both parties agree to honor • _____: process in which a dispute between parties is contested in a formal judicial setting

1. conciliation 2. arbitration 3. litigation

Ownership/Control Risk: Expropriation, Domestication, & Confiscation • _________: the seizing of a company's assets without payment • _________: where the government seizes an investment but makes some reimbursement for the assets • _________: when host countries gradually causes the transfer of foreign investments to national control and ownership

1. confiscation 2. expropriation 3. domestication

Cultural Imperatives, Electives, & Exclusives _____ : relate to areas of behavior or to customs that foreign business people may wish to conform to or participate in but are not required to _____ : customs or behavior patterns reserved solely for the locals _____ : business customs and expectations that must be met and conformed to (or avoided) if relationships are to be successful

1. electives 2. exclusives 3. imperatives

Boycott vs. Embargo _______ : a refusal to sell to a specific country _______ : restriction against the purchase and importation of certain goods and/or services from other countries

1. embargo 2. boycott

Hofstede's Cultural Values: High or Low? •In a culture with _____ individualism, the focus is on individual achievement. •In a culture with _____ power distance, society is more egalitarian. •In the culture with _____ uncertainty avoidance, people are more likely to avoid ambiguity and risk.

1. high 2. low 3. high

The Research Process (put in order) •Assess the value of research •Information requirement •Research design •Data analysis •Interpretation and presentation •Choose unit of analysis •Examine data availability •Problem definition

1. info requirement 2. problem definition 3. choose unit of analysis 4. examine data availability 5. assess the value of research 6. research design 7. data analysis 8. interpretation and presentation

Latent vs. Incipient Markets • _____ : an undiscovered market segment in which demand for a product would materialize if an appropriate product were offered • _____ : a market in which demand will materialize in the future if particular economic, demographic, political or sociocultural trends continue

1. latent 2. incipient

Which Business is Most Likely to Use Which Authority Pattern? (Match) •Toyota, Japanese MNC •Family-owned local car dealership •General Motors, US MNC •Top-level management •Decentralized management •Committee decision making

1. top level = family owned 2. decentralized = GM 3. committee = toyota

Product/Market Growth Matrix(Match) 1.Market penetration strategy 2.Product development strategy 3.Market development strategy 4.Diversification A.New products, existing markets B.New products, new markets C.Existing products, existing markets D.Existing products, new markets

1: C 2: A 3: D 4: B

Which of the following is a reason that the PESTLE model is used? (circle all that apply) A.It helps spot opportunities and gives advance warning of threats. B.It helps prevent unconscious assumptions when entering a new country, region, or market. C.It helps avoid projects that are likely to fail for reasons outside of the company's control. D.It reveals the direction of change within the business environment.

A, B, C, D

Which of the following are reasons for the internationalization of U.S. businesses? (circle all the apply) A.Increasing liberalization of trade & the globalization of markets B.Advances in technology make global business easier & more profitable C.To diversify risk D.Increasing trade barriers in Europe and Asia E.Less competition both domestically and internationally F.To spread product development costs over a wider market

A, B, C, F

Which of the following can be considered part of the technological dimension of the PESTLE model? (circle all that apply) A.Infrastructure B.Technological development C.Labor laws D.Investment in research and development E.Nationalism F.Exchange rates G.Communication technology/infrastructure H.Technology access

A, B, D, G, H

Which of the following are part of the origins of culture? (circle all that apply) A.Geography B.Symbols C.History D.Technology and political economy E.Aesthetics F.Consumer behavior G.Social Institutions H.Thought processes

A, C, D, G

Which of the following can be considered part of the political dimension of the PESTLE model? (circle all that apply) A.Political stability B.Lifestyles C.Government policies D.Political parties E.Population growth rates and trends F.Family size and structure G.Lobbying H.Climate

A, C, D, G

Which of the following can be considered part of the environmental dimension of the PESTLE model? (circle all that apply) A.Natural resources B.Nationalism C.Sustainability D.Environmental regulations E.Intellectual property F.Family structure G.Energy H.Climate

A, C, D, G, H

Which of the following can be considered part of the social dimension of the PESTLE model? (circle all that apply) A.Lifestyles B.Trade barriers C.Social classes D.Infrastructure E.Family size and structure F.Buying habits G.Exchange rates H.Religion

A, C, E, F, H

The _____ method for estimating demand assumes that demand for a product develops in much the same way in all countries as comparable economic development occurs in each country. A) analogy B) reference class forecasting C) morphing D) scenario building

A. analogy

Management Orientations: ERPG Framework (Match) 1.Ethnocentric orientation 2.Polycentric orientation 3.Regiocentric orientation 4.Geocentric orientation A. Firms attempt to organize its international marketing activities on a country to country basis. Each country is treated as a separate entity and individual strategies are worked out accordingly. B.Firms accept a regional marketing policy covering a group of countries which have comparable market characteristics. The operational strategies are formulated on the basis of the entire region rather than individual countries.

A: Polycentric B: Regiocentric

Management Orientations: ERPG Framework (Match) 1.Ethnocentric orientation 2.Polycentric orientation 3.Regiocentric orientation 4.Geocentric orientation A.Firms accept a worldwide approach to marketing and its operations become global. It views the world as one market. The company develops global products and focuses on global market segments. B.All foreign marketing operations are planned and carried out from home base, with little or no difference in the marketing mix between home and overseas markets.

A: geocentric B: Ethnocentric

Which of the following is NOT a risk in global business? A.Not understanding foreign customer preferences B.Losing economies of scale C.Underestimating foreign regulations and incurring unexpected costs D.Lacking managers with international experience. E.Changes in the foreign environment F.Not understanding the foreign country's business culture

B

Which of the following are elements of culture? (circle all that apply) A.Management style B.Cultural Values C.Rituals D.Symbols E.Climate F.Language G.Aesthetics H.History I.Beliefs J.Thought Processes

B, C, D, F, G, I, J

Which of the following can be considered part of the economic dimension of the PESTLE model? (circle all that apply) A.Personality B.Economic freedom C.Inflation rates D.Jurisdiction E.Exchange rates F.Infrastructure G.Trade barriers H.Natural resources

B, C, E, G

Which internationalization approach is the process treated as evolutionary, sequential build-up of foreign commitments over time, due to the interaction between increasing knowledge of markets and resource commitment? A.Learning approach B.Contingency approach C.Network approach D.Holistic approach

B. Contingency approach

_______ consists of the activities and processes across national borders that create, communicate, deliver, and exchange offerings that deliver value. A.Polycentric marketing B.International marketing C.Segmentation marketing D.Global supply organization administration

B. International Marketing

In _____, usually a large number of respondents are asked to reply either verbally or in writing to structured questions using a specific response format (such as yes/no) or to select a response from a set of choices. A.Qualitative research B.Quantitative research C.Netnographic research D.Incipient research

B. Quantitative research

Which of the following can be considered part of the legal dimension of the PESTLE model? (circle all that apply) A.Infrastructure B.Social class C.Anti-trust law D.Inflation E.Intellectual property law F.Geography G.Jurisdiction H.Conflict resolution

C, E, G, H

Which of the following are controllable elements? (circle all that apply) A.Culture B.Competitive forces C.Product D.Legal E.Economic climate F.Price G.Geography and infrastructure H.Channel of distribution

C, F, H

Qualitative research methods include: A.Depth interviews and experiments B.Focus groups and survey research C.Depth interviews and ethnographic research D.Ethnographic research and survey research

C. Depth interviews and ethnographic research

The _____ method for estimating demand polls experts for their opinions about market size and growth rates. Such experts may be companies' own sales managers or outside consultants and government officials. A) analogy B) reference class forecasting C) expert opinion D) scenario building

C. expert opinion

When considering business in another country it is important to understand the attitudes that the political parties in that country have towards: A.International trade B.Nationalism C.Other countries (targeted fear and/or animosity) D.All of the above

D

Assess Value of Research When assessing the value of the research, what question(s) should researchers ask? A.What is the information worth vs. what it will cost to collect? B.What will it cost if the data are not collected? C.What will the company gain with this information? D.All of the above

D. all of the above

SRC and Cultural Assumptions Marketers must be aware of the impact of SRC and other cultural assumptions since: A.it will enhance management's willingness to conduct market research B.it will ensure that research design has minimal home-country bias C.it will increase management's receptiveness to findings D.all of the above.

D. all of the above

When validating secondary data, you should ask all of the following EXCEPT: A.Who collected the data? B.Would there be any reason for purposely misrepresenting the facts? C.For what purposes was the data collected? D.How was the data collected? E.What language is used in the host country? F.Are the data internally consistent and logical in light of known data sources or market factors?

E. What language is used in the host country?

Problems gathering primary data include all of the following EXCEPT: A.Consistency in market data in existing markets B.No existing market to research in some cases C.Sampling (quota vs. convenience sample) D.Willingness to respond E.Sampling in field surveys F.Poor analysis skills G.Language and comprehension

F. poor analysis skills

Fill in the Rectangles: Single Country Marketing Strategy or International Marketing Strategy? •Global Market Participation •Marketing Mix Development -4 P's: Adapt or Standardize? •Concentration of Marketing Activities •Coordination of Marketing Activities •Integration of Competitive Moves •Target Market Strategy •Marketing Mix -Product-Price-Promotion-Place

Single Country: •Target Market Strategy •Marketing Mix -Product-Price-Promotion-Place International Marketing: •Global Market Participation •Marketing Mix Development -4 P's: Adapt or Standardize? •Concentration of Marketing Activities •Coordination of Marketing Activities •Integration of Competitive Moves

What is secondary data?

data collected by an agency or individual other than the one conducting the research

If Samsung regularly redesigns its cell phone in each market, the company can be said to have what management orientation?

polycentric

Relationship-Oriented vs. Information-Oriented Cultures (pair) •Low context (communication) •High context (communication) •Collectivism •Individualism •High power distance •Low power distance •M-time •P-time• Internet meetings •Face-to-Face meetings •Foreground •Background •Linguistic indirectness •Linguistic directness

relationship orientated: - high context - collectivist - high power distance - P time - face to face - background - linguistic indirectness info orientated - low context - individualism - low power distance - M time - internet meetings - foreground - linguistic directness