76. __________ is based on the cost of a standard market basket of products bought in each country.
A. Adjusted gross income (AGI)
B. Gross domestic product (GDP)
C. Per capita income (PCI)
D. Purchasing power parity (PPP)
E. Cross-cultural purchasing power (CPP)
77. Which country has the largest percentage of its citizens older than 60 years of age?
A. Philippines
B. Canada
C. the United States
D. Japan
E. Saudi Arabia
78. Using one marketing strategy across various cultures is referred to as
A. standardization.
B. optimization.
C. cross-culturalization.
D. marketing imperialism.
E. cross-fertilization.
2-34
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Gradable: automatic
Learning Objective: 02-05 Understand the role of global demographics.
Topic: Cross-Cultural Marketing Strategy
79. Which one of these factors is not true regarding glocalization?
A. Standardized marketing can offer a cost savings.
B. Uniformity is always possible.
C. Values and demographics require adapting to cultural differences.
D. An ad that appeals to some countries might be inappropriate in others.
E. All of these factors are true.
80. Which of the following is a key consideration for each geographic market that a firm is contemplating?
A. Is the geographic area homogenous or heterogeneous with respect to culture?
B. What needs can this product or a version of it fill in this culture?
C. What are the distribution, political, and legal structures for the product?
D. In what ways can we communicate about the product?
E. All of these choices are correct.
81. Coca-Cola is highly successful in marketing its beverages outside of the United States. Which factors do they
use to adapt within and across countries where they do business?
A. cultural homogeneity
B. ethical implications
C. affordability
D. infrastructure
E. All of these choices are correct.
82. Two companies cannot use the same logo and brand name when operating in different countries.
83. Marketing across cultural boundaries is a difficult and challenging task.
84. While culture heavily influences marketing strategy, culture is not influenced by marketing strategy.
85. Global citizens are highly concentrated in the United States and the United Kingdom.
86. Cultures are static and rarely change.
87. Other-oriented values reflect a society’s view of the appropriate relationships between individuals and groups
within that society.
2-37
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Moderate
Gradable: automatic
Learning Objective: 02-02 Describe core values that vary across culture and influence behaviors.
Topic: Variations in Cultural Values
88. Collectivism is a defining characteristic of American culture.
89. The family unit is the basis for virtually all societies.
90. The changing and expanding roles of women throughout much of the world is creating new opportunities as well
as challenges for marketers.
91. Power gap refers to the degree to which people accept inequality in power, authority, status, and wealth as
natural or inherent in society.
92. Terminal materialism is the acquisition of things to enable one to do something.
93. The meaning of time varies between cultures in two major ways: time perspective and interpretations assigned to
specific uses of time.
94. Personal space refers to the nearness that others can come to you in various situations without your feeling
uncomfortable.
2-39
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
Blooms: Remember
Difficulty: Easy
Gradable: automatic
Learning Objective: 02-03 Understand cross-cultural variations in nonverbal communications.
Topic: Other-Oriented Values
95. The color blue connotes femininity in Holland but masculinity in Sweden and the United States.
96. The largest single influence toward uniformity among youth worldwide is education.
97. Psychographics describe a population in terms of its size, structure, and distribution.
98. Adapting products and services to local considerations is known as localizing.
2-40
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
Difficulty: Easy
Gradable: automatic
Learning Objective: 02-05 Understand the role of global demographics.
Topic: Cross-Cultural Marketing Strategy
Essay Questions
99. List the cultural factors that influence consumer behavior and marketing strategy.
Explanation:
100. Explain the concept of culture and discuss why is it important to study for understanding consumer behavior.
2-41
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
Gradable: manual
Learning Objective: 02-02 Describe core values that vary across culture and influence behaviors.
Topic: Variations in Cultural Values
102. Jason is planning a business trip to Japan, and it is his first time doing business in that country. Discuss some
value differences between Japanese culture and American culture that are most relevant to him in a business meeting
situation.
103. Name the seven factors influencing nonverbal communications and describe four of them.
Explanation:
Nonverbal factors influencing nonverbal communications include: time, space, symbols, relationships,
2-42
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
Learning Objective: 02-03 Understand cross-cultural variations in nonverbal communications.
Topic: Cultural Variations in Nonverbal Communications
104. List and describe the three trends in the global youth market.
105. List and explain four of the seven factors that Coca-Cola utilizes in order to successfully sell its beverages
globally.
2-43
Copyright © 2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
Learning Objective: 02-06 List the key dimensions in deciding to enter a foreign market.
Topic: Considerations in Approaching a Foreign Market
Chapter 02 Test Bank Summary
Category
# of Questions
AACSB: Analytical Thinking
105
Accessibility: Keyboard Navigation
105
Blooms: Remember
60
Blooms: Understand
45
Difficulty: Easy
18
Difficulty: Hard
24
Difficulty: Moderate
63
Gradable: automatic
98
Gradable: manual
7
Learning Objective: 02–01 Define the concept of culture.
24
Learning Objective: 02–02 Describe core values that vary across
culture and influence behaviors.
38
Learning Objective: 02–03 Understand cross-cultural variations
in nonverbal communications.
24
Learning Objective: 02–04 Summarize key aspects of the global youth culture.
4
Learning Objective: 02–05 Understand the role of global demographics.
12
Learning Objective: 02–06 List the key dimensions in deciding to enter a foreign market.
3
Topic: A Global Youth Culture?
4
Topic: Considerations in Approaching a Foreign Market
3
Topic: Cross-Cultural Marketing Strategy
3
Topic: Cross-Cultural Variations in Consumer Behavior
10
Topic: Cultural Variations in Nonverbal Communications
7
Topic: Environment-Oriented Values
6
Topic: Etiquette
3
Topic: Global Cultures
1
Topic: Global Demographics
9
Topic: Other-Oriented Values
12
Topic: Relationships
1
Topic: Self-Oriented Values
8
Topic: Space
1
Topic: Symbols
2
Topic: The Concept of Culture
14
Topic: Time
8
Topic: Variations in Cultural Values
13