Global Marketing Test 2 - Jensen
Comparing the traditional formulation of Maslow's hierarchy with the results of current research on the consumer needs and motivation in Asia, which of the following is correct? A) The lowest 2 levels of the hierarchy are the same in the traditional and Asian versions. B) The lowest 3 levels of the hierarchy are the same in the traditional and Asian versions. C) The lowest 4 levels of the hierarchy are the same in the traditional and Asian versions. D) The five levels in the traditional formulation apply equally in the West and in Asia. E) The highest levels of the hierarchy are the same in the traditional and Asian versions.
A) The lowest 2 levels of the hierarchy are the same in the traditional and Asian versions.
Which of the following is true about Japanese keiretsu? A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu. B) Toyota is a horizontal keiretsu, Mitsubishi is a vertical keiretsu. C) Toyota and Mitsubishi are both horizontal keiretsu. D) Toyota and Mitsubishi are both vertical keiretsu. E) none of the above
A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu.
Procter & Gamble recently introduced Pampers Rash Guard. Rash Guard does not represent a new product per se; rather, the diapers are being marketed as an alternative to regular Pampers. What type of innovation do Pampers Rash Guard diapers represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a platform-based innovation E) none of the above
A) a continuous innovation
Maslow's hierarchy is applicable to global marketing because it can help explain how: A) basic human needs can drive the development of global products. B) "self-actualization" is the highest-order need in Japan as well as Western nations. C) status needs in different countries can only be fulfilled with localized products. D) "luxury badging" is irrelevant to companies marketing in Asia. E) Asians differ from Westerners in their basic physiological needs.
A) basic human needs can drive the development of global products.
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) competition.
Saab markets two luxury car models, both prized by drivers for their "quirkiness." About 30% of Saab's sales come from the USA, with most of the rest from Western Europe. Which strategy does Saab appear to be using? A) country concentration/market segment concentration B) country diversification/market segment concentration C) country concentration/market segment diversification D) country diversification/market segment diversification E) none of the above
A) country concentration/market segment concentration
Example of a "brand symbol" includes all of the following except: A) date of manufacture on Coca-Cola cans. B) the wave that appears on red Coke cans and bottle labels. C) non-word marks such as the Nike swoosh. D) three-pronged Mercedes star. E) McDonald's golden arches.
A) date of manufacture on Coca-Cola cans.
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) emotional
Ford and Mazda have market entry and expansion in a relationship known as: A) joint venture. B) licensorship. C) franchising. D) contract manufacturing. E) none of the above
A) joint venture.
"Successful GSPs create win-win situations, where participants pursue objectives on the basis of mutual advantage." When applied to global strategic partnerships, this statement indicates the importance of which factor? A) mission B) strategy C) governance D) culture E) organization
A) mission
Which of the following could hinder the success of products labeled "Made in Bangladesh" or "Made in Thailand" in export markets? A) negative country-of-origin bias B) no possible quality/price positioning C) low acceptance of private brands D) lack of promotion in global markets E) high product saturation levels in global markets
A) negative country-of-origin bias
According to a 1991 report by McKinsey & Co., problems of alliances between Western and Japanese firms were related to all of the following factors except: A) objective levels of performance. B) a feeling of mutual disillusionment. C) difference in expectations. D) balance between partners. E) frictional loss.
A) objective levels of performance.
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) people between the ages of 12 and 19.
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) people with shared interest in fashions.
British entrepreneur Richard Branson has built a global business empire by: A) relying on brand extension. B) being the first to use smart cards in major markets. C) developing local brands. D) avoiding consumer businesses with established leaders. E) restricting the "Virgin" name only to airlines.
A) relying on brand extension.
The marketers of Corona beer achieved great success in the U.S. market by: A) retaining the bottle design originally used in Mexico. B) hiring Hispanic movie stars as endorsers. C) distributing Corona in returnable bottles. D) changing the brewing recipe to conform to American palates. E) having the label in Spanish language.
A) retaining the bottle design originally used in Mexico.
When introduced in the late 1970s, the VCR created new patterns of consumer behavior. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. DVD, a playback only video system, was introduced in the late 1990s. DVD discs contain full-length movies with digital sound in a format that resembles conventional music compact discs. Which of the following most accurately describes the respective degree of newness of these two global products? A) The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation. B) The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation. C) The VCR and DVD are both dynamically continuous innovations. D) The VCR and DVD are both discontinuous innovations. E) The VCR and DVD are both continuous innovations.
A) the VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation.
Coca-Cola's distinctive contour bottle, which is sold in many countries, illustrates the point that: A) the packaging strategies can vary by country and region. B) the packaging helps in storing large sizes in refrigerators. C) the packaging strategies do not change by country and region. D) the packaging appeals only to Asian consumers. E) the packaging helps in brand identification.
A) the packaging strategies can vary by country and region.
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: A) the pluralization of consumption. B) the ethnicitization of consumption. C) the democratization of consumption. D) the sophistication of consumption. E) the domestication of consumption.
A) the pluralization of consumption.
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) Activa
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) Honda and Toyota began targeting the segment years ago; Ford and GM launched their efforts more recently.
A global product meets the wants and needs of a global market, including the Triad which includes the following countries: A) Brazil, Russia, and China. B) Japan, Western Europe, and the United States. C) China, the United States, and Europe. D) China, India and Brazil. E) Japan, China, and Western Europe.
B) Japan, Western Europe, and the United States.
Packaging is an important consideration for products that are shipped to markets worldwide. Which of the following statements related to packaging is not true? A) Nestlé's worldwide network of packaging teams gives improvement suggestions on a quarterly basis. B) Japanese prefer plain soft colors on their packages. C) The Aquafresh Ultimate tube was designed to stand vertically. D) Coca-Cola had contour bottles in both glass and plastic versions in many countries. E) Nestlé asked suppliers to find a glue to make the clicking sound louder when a tube of Smarties brand chocolate candies are unwrapped.
B) Japanese prefer plain soft colors on their packages.
The disadvantages of joint venturing can include all of the following except: A) Joint venture partners must share rewards as well as risks. B) Joint ventures allow partners to achieve synergy. C) Joint ventures can have the potential for conflict between partners. D) A dynamic joint venture partner can evolve into a strong competitor. E) A company incurs very significant costs by joint venturing.
B) Joint ventures allow partners to achieve synergy.
The Russian market for imported premium vehicles is exploding as the number of households that can afford luxury products exhibit rapid growth. The luxury cars include all of the following except: A) Porsche. B) Lexus. C) BMW. D) Rolls-Royce. E) Infiniti.
B) Lexus.
Which of the following currently owns a 70% stake in Skoda, the Czech automaker? A) GM B) Volkswagen C) Ford D) DaimlerChrysler E) Renault
B) Volkswagen
Motorola's failed Iridium venture was a global satellite telephone network designed to allow users to make or receive calls anywhere on the globe using handsets that are somewhat bigger than typical cellular phones. What type of innovation did Iridium represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a platform-based innovation E) none of the above
B) a dynamically continuous innovation
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) graying population. D) technology professionals. E) persons having power.
B) affluent, well-traveled persons.
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) attribute/benefit
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) behavioral
Many American car buyers perceived Korean cars as: A) durable. B) cheap. C) reliable. D) of high quality. E) good investment.
B) cheap.
Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect? A) brand equity B) co-branding C) brand image D) brand extension E) tiered branding
B) co-branding
The president of a Mexican company recently remarked, "Business in Mexico is done on a consensus basis, very genteel and sometimes slow by U.S. standards." A few months later, the Mexican company and its U.S. joint venture partner parted company. Judging by the president's remark, one important reason for the "divorce" was: A) failure of one partner to live up to the terms of the contract. B) cultural differences. C) the cancellation of NAFTA. D) the U.S. government's insistence on quick negotiations. E) the language barrier.
B) cultural differences.
The Advanced Photo System (APS) created by Kodak and its partners combines traditional chemical photo processing with digital technology. One benefit of the system is that shutterbugs can choose 3 different print sizes. The APS would best be described as a: A) continuous innovation. B) dynamically continuous innovation. C) discontinuous innovation. D) platform-based innovation. E) new and improved innovation.
B) dynamically continuous innovation.
The agreements that allow McDonald's franchisees around the globe to use McDonald's trademarked name and menu items represent, in essence, which form of market entry? A) joint ventures B) franchising C) 100% ownership D) exporting E) acquisition
B) franchising
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) global consumer culture positioning.
In Chinese markets, Nike had a problem using the "Just Do It" attitude which was not found to be appropriate. Finally, Nike decided to use Chinese athletes in their promotion. This type of adaptation was needed due to: A) Chinese do not wear running shoes. B) ingrained Chinese values which respect authority. C) Chinese athletes use Nike shoes. D) "Just do it" in Chinese has a negative connotation. E) parents do not want their children to see such ads.
B) ingrained Chinese values which respect authority.
In a joint venture with Russian manufacturer AvtoVAZ, GM executives were planning to have a stripped-down reengineered car based on its Opel model. However, the market research revealed that a "Made-in-Russia" car would only be acceptable if: A) it has a German name. B) it sported a very low sticker price. C) it has an American name. D) it has a very high sticker price. E) it has a Russian name.
B) it sported a very low sticker price.
One of the advantages of licensing is: A) licensees have limited control. B) licensees have considerable autonomy. C) license agreements have short life. D) licensees can develop similar products. E) licensees have considerable leverage.
B) licensees have considerable autonomy.
As outlined by branding expert Kevin Keller, the benefits of strong brand equity include all of the following except: A) greater loyalty. B) more vulnerability to marketing actions. C) less vulnerability to marketing crises. D) more inelastic consumer response to price increases. E) more elastic consumer response to price decreases.
B) more vulnerability to marketing actions.
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) polycentrics.
Before Ben & Jerry's launched their ice cream in the United Kingdom, the company conducted extensive research to determine whether the package design was appropriate. The research indicated that British consumers perceived the colors differently than U.S. consumers. The package design was changed accordingly. This type of strategy can be defined as: A) product-communications extension. B) product extension-communications adaptation. C) product adaptation-communications extension. D) product-communication adaptation. E) product invention.
B) product extension-communications adaptation
Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the United States. This is an example of the ________ strategy. A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
B) product extension-communications adaptation
Targeting the 300 million farmers in India who still use plows harnessed to oxen, John Deere engineers created a line of relatively inexpensive, no-frills tractors. The Deere team then realized that the same equipment could be marketed to hobby farmers and acreage owners in the United States, a segment that they had previously overlooked. This is an example of ________ strategy. A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
B) product extension-communications adaptation
To promote its Centrino wireless chip, Intel launched a global ad campaign that features different combinations of celebrities. These celebrities were chosen because they are widely recognized in the key world markets. This type of strategy is referred to as: A) product-communications extension. B) product extension-communications adaptation. C) product adaptation-communications extension. D) product-communication adaptation. E) product invention.
B) product extension-communications adaptation
"Corporate amnesia" in global partnership is a term which refers to: A) achieving world leadership by differentiation. B) short-term goals with no memory on how to compete. C) relationship which is short lived. D) discontinuation of partnership due to personal chemistry. E) losing national identity and ideology.
B) short-term goals with no memory on how to compete.
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) standardized global marketing.
Another perspective on the future of cooperative strategies envisions the emergence of: A) mergers and acquisition. B) virtual corporations. C) franchising. D) joint ventures. E) keiretsu.
B) virtual corporations.
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) "bottom-up" segmentation analysis
Boeing developed the wide-bodied aircraft, the 777, with about ________ of the work subcontracted out to Mitsubishi, Fuji, and Kawasaki. A) 50% B) 25% C) 20% D) 60% E) 75%
C) 20%
Which of the following statements is not an example of local products or brands? A) Coca-Cola developed several branded drink products for Japan. B) Coca-Cola markets Kinely brand bottled water in India. C) BMW uses "the ultimate driving machine" slogan in India. D) Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United Kingdom. E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.
C) BMW uses "the ultimate driving machine" slogan in India.
Generally speaking, which of the following statements is true concerning product attributes? A) Tangible product attributes are more important than intangible ones. B) Intangible product attributes are more important than tangible ones. C) Both tangible and intangible product attributes are important. D) Neither tangible nor intangible product attributes are important. E) A product has more attributes than tangible and intangible ones.
C) Both tangible and intangible product attributes are important
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 buying Porsche 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 EU, the number of consumers aged 16 and under is rapidly approaching consumers aged 60.
C) Consumers buying Porsche would like to be noticed.
In a study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" the 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) Disaffected Survivors.
The DMBB 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) Elites.
Which automaker currently has a joint venture with Hindustan Motors (India)? A) Volkswagen B) Ford C) GM D) Renault E) Mazda
C) GM
Which of the following statements most accurately describes the extent to which GM and Toyota outsource components? A) GM and Toyota each outsource approximately 50% of their components. B) Toyota outsources about 50% of its components; GM outsources about 75%. C) GM outsources about 50% of its components; Toyota outsources about 75%. D) Neither GM nor Toyota outsources a significant proportion of its components. E) GM and Toyota each outsource approximately 25% of their components.
C) GM outsources about 50% id its components; Toyota outsources about 75%.
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) Heineken utilizes the GCCP strategy; Foster's utilizes the FCCP strategy.
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) It relies less on specialized information and more on image.
Tata Motors (India) acquired the following auto company: A) Volkswagen AG (Germany). B) Volvo (Sweden). C) Jaguar (UK). D) Toyota (Japan). E) Hyundai (South Korea).
C) Jaguar (UK).
Packaging aesthetics are particularly important to the: A) Indian. B) Chinese. C) Japanese. D) American. E) Russian.
C) Japanese.
________ represent(s) a market entry strategy whereby one company permits a foreign company to make use of its patents, know-how, technology, company name, or other intangible assets in return for a royalty payment. A) Joint ventures B) One-hundred-percent ownership C) Licensing D) Exporting E) Global strategic alliances
C) Licensing
GM executives are looking for a joint venture with AvtoVAZ, the largest carmaker in: A) Germany. B) Lithuania. C) Russia. D) Kazakhstan. E) Turkey.
C) Russia
Several years ago, the DMBB agency created a single-country psychographic profile that includes segment labels such as "Cossacks" and "Kuptsy." What country does the survey cover? A) India B) Japan C) Russia D) China E) Vietnam
C) Russia
Based on 2011 projections, the top ten nations ranked by per capita income does not include: A) the United States. B) Japan. C) Russia. D) Spain. E) Italy.
C) Russia.
The challenges in bringing the Smart across Atlantic include all of the following except: A) the euro's strength relative to dollar. B) DaimlerChrysler merger ended. C) Smart was under the ownership of DaimlerChrysler. D) Smart was under the ownership of Daimler AG. E) distribution and promotion critical to a successful U.S. launch.
C) Smart was under the ownership of DaimlerChrysler.
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 smaller population. D) Sweden is land locked geographically. E) Sweden has relaxed export policies.
C) Sweden has a smaller population.
A number of factors combine to make Russia an excellent location for an alliance which do not include: A) a well-educated workforce. B) quality is important to Russian consumers. C) abundance of supplies. D) potential for economic growth. E) potential for growth in service sector.
C) abundance of supplies
A. Coskun Samli had developed a useful approach to global market segmentation that compares and contrasts "conventional" versus "unconventional" wisdom. An example of unconventional wisdom is: A) since per capita income in India is about $1,420, assuming that all Indians have low incomes. B) assuming that consumers in Europe and Latin America are interested in World Cup soccer whereas Americans are not. C) assuming that there is a presence of a higher-income middle-class segment in India. D) assuming that the potential Indian customer base for a McDonald's is larger than the size of entire developed countries. E) assuming that there is no running water and electricity in India.
C) assuming that there is a presence of a higher-income middle-class segment in India
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) attitudes, values and lifestyle.
Ads by BMW advertise it 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) attribute/benefit
Intel inside campaign promoting both the Intel Corporation and its Pentium-brand processors in conjunction with advertising for various brands of personal computers is an example of: A) brand equity. B) brand symbol. C) co-branding. D) brand extension. E) brand loyalty.
C) co-branding
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) commission psychographic segmentation studies to augment demographic data.
The formulation, imagery, and consumer appeal of Colgate's Total brand toothpaste were designed to translate across national boundaries. This new global brand represents which type of product innovation? A) discontinuous innovation B) dynamically continuous innovation C) continuous innovation D) comparative innovation E) dynamically discontinuous innovation
C) continuous innovation
In order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements should provide for: A) contract manufacturing. B) franchising. C) cross licensing. D) strategic decision making. E) adaptation for local tastes.
C) cross licensing.
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) differentiated global marketing
Positioning refers to the act of: A) determining on what points on 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) differentiating a brand in customer's mind.
By definition, a ________ requires a large amount of learning on the part of users and typically creates new markets and consumption patterns. A) continuous innovation B) dynamically continuous innovation C) discontinuous innovation D) platform-based innovation E) new and improved innovation
C) discontinuous innovation
Which of the following is not true of Japanese keiretsu? A) promotes risk sharing B) promotes long-term employment C) ensures low prices for Japanese consumers D) blocks foreign suppliers from the Japanese market E) relationships are cemented by bank ownership
C) ensures low prices for Japanese consumers
The specialty retailing industry, as well as the fast-food industry, favors ________ for global growth. A) licensing B) investment C) franchising D) joint ventures E) strategic alliances
C) franchising
"Discussion and consensus must be the norms. Partners must be viewed as equals." When applied to global strategic partnerships, this statement indicates the importance of which factor? A) mission B) strategy C) governance D) culture E) organization
C) governance
Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation? A) companion products B) food products C) industrial products D) intangible products E) non-alcoholic drinks
C) industrial products
As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances? A) acquisition B) licensing C) joint venture D) exporting E) franchising
C) joint venture
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) just 10 or fewer countries.
The benefits of strong brands include all of the following except: A) greater loyalty. B) less vulnerability to marketing actions. C) less inelastic consumer response to price increases. D) more elastic consumer response to price decreases. E) larger margins.
C) less inelastic consumer response to price increases
) 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) psychographic
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) psychographic
An attribute which does not represent true global partnership is: A) achieving world leadership by differentiation. B) achieving a reciprocal relationship. C) relationship is organized vertical lines. D) continual transfer of resources. E) retaining national identities.
C) relationship is organized vertical lines.
The strategy to use joint ventures has several advantages which do not include: A) risk sharing. B) reduced financial risk. C) reward sharing. D) achieve synergy. E) only way to enter a country or region.
C) reward sharing.
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) similar needs and buying behavior.
An express warranty is a written guarantee that assures the buyer: A) that he or she is getting what he or she desired. B) that he or she will be able to get express response if any defects are found. C) that he or she is getting what he or she has paid for. D) that he or she will be able to contact the manufacturer whenever needed. E) that he or she has limited time for filling out information required by the manufacturer.
C) that he or she is getting what he or she has paid for.
Three Mexican retailers Famso, Grupo Gigant SA, and Grupo Commercial 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) the Hispanic American segments represent a great opportunity for marketers.
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 in those countries are almost similar. B) that Chinese consumers are not willing to invest in beauty products. C) what beauty means to Chinese women. D) that working Indian women prefer only local brands. E) cosmetics are preferred mostly by the top end of the market in China.
C) what beauty means to Chinese women.
The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home electronic entertainment. For example, assuming the user could learn to set the timer, he or she could tape programs to watch at a later time. The VCR's popularity also gave rise to an entirely new retailing concept, the video rental store. What type of innovation did the consumer VCR represent? A) a continuous innovation B) a dynamically continuous innovation C) a discontinuous innovation D) a comparative innovation E) none of the above
CC) a discontinuous innovation
The law of disproportionality suggests that ________ percent of the company's menu or profits are accounted for the 20% of a firm's products or customers. A) 50 B) 60 C) 70 D) 80 E) 90
D) 80
Which of the following does not fit into the sequence of experiences Anheuser-Busch had in Japan? A) Anheuser-Busch first entered Japan by means of a licensing agreement with Suntory, the smallest brewery in Japan. B) Anheuser-Busch created a joint venture with Kirin Brewery, the market leader. C) Anheuser-Busch dissolved the joint venture with Kirin Brewery. D) Anheuser-Busch entered into a joint venture with Kirin Brewery. E) Anheuser-Busch reverted to a licensing agreement with Kirin Brewery.
D) Anheuser-Busch entered into a joint venture with Kirin Brewery.
________ can also be thought of as an asset representing the value created by the relationship between the brand and its customers over time. A) Brand extensions B) Co-branding C) Brand image D) Brand equity E) Brand loyalty
D) Brand equity
________ represent(s) the cumulative added value of a company's investment in the marketing of a brand over time. A) Brand extensions B) Co-branding C) Brand image D) Brand equity E) Brand loyalty
D) Brand equity
Would-be franchisors ask all of the following questions except one before expanding overseas: A) How tough is the local competition? B) Does the government respect trademark and copyrights? C) Can profits be easily repatriated? D) Can products be easily counterfeited? E) Is commercial space available?
D) Can products be easily counterfeited?
Honda has invested $550 million in building an assembly plant in Greensburg, Indiana; IKEA spent nearly $2 billion to open stores in Russia; and South Korea's LG Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of: A) acquisition. B) licensing. C) franchising. D) FDI. E) exporting.
D) FDI.
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) Kia in India
Ford Motor Company (United States) has a 50-50 joint venture to build Ford Fiestas with: A) Toyota (Japan). B) Shanghai Automotive Industry (China). C) BMW (Germany). D) Mahindra & Mahindra (India). E) Mazda (Japan).
D) Mahindra & Mahindra (India)
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) Nestle foods.
Which of the following is not a characteristic of global strategic alliances? A) Participants maintain independence outside the framework of alliance. B) Participants share benefits as well as control. C) Participants make ongoing contributions in technology, products, and other areas. D) Participants focus on an individual country market. E) Participants share benefits of the alliance.
D) Participants focus on an individual country market.
Global marketers must understand the importance of visual aesthetics embodied in the color or shape of a product, label, or package. Which of the following statements is not true regarding the use of color in selected countries? A) Yellow color on Caterpillar's earthmoving equipment is acceptable worldwide. B) Packaging aesthetics are particularly important to the Japanese. C) White color is associated with death and bad luck in some Asian countries. D) The red Marlboro color had to be changed in some Asian countries. E) Chinese consider the red color to be lucky.
D) The red Marlboro color had to be changed in some Asian countries.
Toyota learned many things from its partnership with GM, however American Managers involved in the venture complained that: A) Toyota learned many things about U.S. supply system. B) Toyota learned about U.S. transport system. C) Toyota learned about managing American workers. D) Toyota did not apply manufacturing expertise at GM plant. E) Toyota applied expertise at its Camry plant.
D) Toyota did not apply manufacturing expertise at GM plant.
Which of the following consumer products companies experienced a major product failure in Europe due to inadequate test marketing? A) Procter & Gamble B) Colgate C) Kao D) Unilever E) Seagram
D) Unilever
"Usage rates" and "user status" are important criteria for which segmentation variable? A) demographic B) occupational C) psychographic D) behavioral E) benefit
D) behavioral
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) benefit.
After four years of product development, Procter & Gamble recently introduced a new, improved disposable diaper. Pampers Rash Guard diapers are designed to prevent diaper rash and represent the first time a company has made a medical claim for its diapers. What kind of innovation do the new diapers represent? A) platform-based innovation B) dynamically continuous innovation C) discontinuous innovation D) continuous innovation E) none of the above
D) continuous innovation
McDonald's success in franchising in global markets can be attributed to several factors which do not include: A) a well known global brand name. B) a business system that can be easily replicated. C) local market knowledge. D) cross licensing. E) granting franchisees leeway to tailor menu offerings to suit local tastes.
D) cross licensing.
Alfred Zeien, former chairman of Gillette, once noted that his company's Parker Pen unit does not have to develop a special model for Malaysia and Singapore because shoppers worldwide seek the same things when buying a gift that will serve the recipient as a status symbol. This insight relates to which level of Maslow's hierarchy of needs? A) physiological B) safety C) social D) esteem E) self-actualization
D) esteem
For Starbucks and other companies whose business models include a service component, it is not recommended that they use one of the following methods for going global. A) joint ventures B) licensing C) 100-percent ownership D) exporting E) franchising
D) exporting
Pollo Campero, a chicken restaurant chain based in Central America, is using the following method for expanding operations in the United States: A) joint ventures. B) licensing. C) exporting. D) franchising. E) acquisition.
D) franchising.
Competitive business environment is now characterized by all of the following except: A) unprecedented degrees of turbulence. B) dynamism. C) unpredictibility. D) inadaptability. E) environmental responsiveness.
D) inadaptability.
The American Automobile Labeling Act clarifies all of the following except: A) country of foreign. B) final assembly point. C) the percentages of the major sources of every car and truck. D) information about car dealer. E) aesthetic style.
D) information about car dealer.
Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese consumers were not receptive to ads featuring the Campbell Kids and the "M'm M'm Good" slogan. This compelled Campbell's to develop ads featuring a talking soup can known as "Mr. Campbell." Campbell's also developed soup varieties for Japan with fish as the main protein source and spices that reflect local preferences. As described here, which of the following strategies has Campbell's used in Japan? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) product-communication adaptation E) product invention
D) product-communication adaptation
Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) product-communication adaptation E) product invention
D) product-communication adaptation
Regulators in different countries have proposed various regulations for product labeling. All of the following statements pertaining to such regulations are true except: A) mandatory health warnings on tobacco products are required in most countries. B) the American Automobile Labeling Act clarifies the country of origin as well as the final assembly point. C) in 2008, the United States enacted a country of origin labeling (COOL) law. D) the use of terms "light" and "natural" are allowed on labels only in the United States. E) McDonald's is posting nutrition information on all food packaging and wrappers in selected markets.
D) the use of terms "light" and "natural" are allowed on labels only in the United States.
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. India.
In the summer of 2006, it was announced that the company's Smart car would be offered for sale in the United States. Which global company was responsible for bringing the Smart car to market? A) Swatch B) Volkswagen C) Nissan D) Ford E) DaimlerChrysler
E) DaimlerChrysler
In the study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" the 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) Disaffected survivors.
Sony's U.S. Consumer segments included all of the following except: A) Affluent. B) Zoomers. C) SoHo. D) Gen Y. E) Fashionists.
E) Fashionists.
The terminology used to describe the new forms of cooperation strategies varies widely and the phrases used include all of the following except: A) collaborative agreements. B) strategic alliances. C) global strategic partnerships. D) strategic international alliances. E) Greenfield operations.
E) Greenfield operations.
Which of the following is not in the top five of the world's most valuable brands according to 2012 rankings? A) Sony B) Microsoft C) Coca-Cola D) GE E) Nokia
E) Nokia
Which of the following is not a characteristic of global strategic alliances? A) Participants maintain independence outside the framework of alliance. B) Participants share benefits of the alliance. C) Participants share control over the performance of the assigned tasks. D) Participants make ongoing contributions in technology, products, and other areas. E) Participants agree not to compete in areas unrelated to the alliance.
E) Participants agree not to compete in areas unrelated to the alliance.
Hindustan Lever recently developed a hard candy flavored with natural fruit juice that it sells profitably in India for the equivalent of 1 cent per piece. This is Hindustan Lever's first-ever candy product. What strategy is evident here? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product invention
E) Product invention
Which automaker owns an equity stake in Japan's Nissan Motor? A) GM B) Volkswagen C) Ford D) DaimlerChrysler E) Renault
E) Renault
Managers must decide how well a company's product fits the country market by asking 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) Will it be possible to neglect home-country regulations?
Avon Products uses ________ to enter developing markets. A) franchising and licensing B) joint venture and licensing C) acquisition and franchising D) licensing and franchising E) acquisition and joint ventures
E) acquisition and joint ventures
Licensing as a market entry mode has several disadvantages and opportunity costs, which do not include: A) limited market control. B) agreement may have short life. C) leveraging and exploiting by licensee. D) similar product or technology development by licensee. E) adaptations by licensee to fit local tastes.
E) adaptations by licensee to fit local tastes.
The corporate development team at Virgin evaluates more than a dozen proposals each day from outside and within the company. When assessing new-product ideas, they look for all of the following except: A) synergy with existing Virgin products. B) pricing and return on investment. C) marketing opportunities. D) if the idea "uses or abuses" the Virgin brand. E) aesthetic attributes of competitors products.
E) aesthetic attributes of competitors products.
The success of CFM International (the strategic partnership between GE and Snecma) can be attributed to which of the following? A) compatibility of the partners B) capability of the partners C) commitment of the partners D) personal chemistry between executives E) all of the above
E) all of the above
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) all of the above
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) an effort to identify and categorize customers based on common characteristics.
E) an effort to identify and categorize customers.
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) benefit
Companies that use "contract manufacturing" provide all of the following advantages except: A) technical specifications to subcontractors. B) technical specifications to local manufacturers. C) licensing firm can specialize in product marketing. D) limited commitment of financial resources. E) considerable commitment of management resources.
E) considerable commitment of management resources.
In 2011, the ten most populous countries in the world accounted for just over ________ percent of the world income. A) ten B) twenty C) thirty D) forty E) fifty
E) fifty
GSPs (Global Strategic Partnerships) are attractive for several reasons which do not include: A) sharing high product development costs. B) sharing technological developments. C) securing access to national and regional markets. D) continuous transfer of technology between partners. E) focus on a single national market or a specific problem.
E) focus on a single national market or a specific problem.
Having partners from another country can have advantages which include all of the following except: A) reducing product development costs. B) securing technology. C) access to capital. D) shared risks. E) increased competition.
E) increased competition.
Guidelines which can assist managers in their effort to establish global brand leadership include all of the following except: A) create a compelling value proposition for customers. B) before taking brand overseas, select name, marks and symbols. C) make a process template available to all managers. D) assign specific responsibility for managing branding issues. E) make a process template for international consumers.
E) make a process template for international consumers.
Which of the following does not fit in with the factors that should be considered by companies forming GSPs? A) Partners are competitors to each other. B) Harmony is not the most important measure of success. C) All employees and managers must understand where cooperation ends and competitive compromise begins. D) Learning from partners is critically important. E) none of the above
E) none of the above
Product problems initially made headlines in 2008 regarding a turbine blade manufactured by Suzlon and financed by John Deere. All of the following problems were encountered by Suzlon except: A) wind energy cracked a turbine blade and broke off a tower in Illinois. B) cracks were found on more than 60 blades on turbines run by Deere. C) Suzlon was battling product reliability and durability problems. D) Suzlon faced a cash crunch. E) policymakers in many parts of the world supported Suzlon.
E) policymakers in many parts of the world supported Suzlon.
Colgate's Total is a new toothpaste brand whose formulation, imagery, and consumer appeal were designed from the beginning to translate across national boundaries. Which strategy did Colgate use with Total? A) product-communications extension B) product extension-communications adaptation C) product adaptation-communications extension D) dual adaptation E) product innovation
E) product innovation
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) securing first mover advantageg
Which of the following is not one of the levels in the Asian version of Maslow's hierarchy? A) physiological B) safety C) affiliation D) admiration E) self-actualization
E) self-actualization
Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market. However, there are also first-mover disadvantages which include: 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) substantial investments in marketing.
The feasibility of targeting a particular market segment can be negatively impacted by various factors which does not include: A) regulatory hurdles. B) cultural barriers. C) lack of distribution system. D) time required to establish business. E) surplus demand.
E) surplus demand.