1) Competitive bidding is infrequent in a low-context culture.
2) In personal selling, the goal of negotiation should be to ensure that both the customer
and the salesperson come away from the presentation as winners.
3) According to Harvard professor David Arnold, one of the guidelines for choosing a
channel intermediary by a company is to select distributors rather than them selecting
the company.
4) When management moves to integrate and coordinate activities on a regional basis,
the decision reflects an ethnocentric orientation.
5) Marketers must understand that many Hispanic Americans live in two worlds;
although they identify strongly with the United States, there is also a sense of pride
associated with brands that connect to their heritage.
6) The dynamic interplay of several driving and restraining forces shapes the
importance of global marketing.
7) “Point of use” product sampling is gaining in popularity among marketers.
8) In the context of global marketing, leverage means some type of advantage that a
company enjoys by virtue of the fact that it has experience in its home country.
9) Many industry experts agree that packaging must engage the senses, make an
emotional connection, and enhance a consumer’s brand experience.
10) Asian cultures exhibit collectivist social values where cooperation and harmony are
highly valued in both personal life and the business world. Therefore, it is not surprising
that some of the Asia’s biggest companies, including Mitsubishi and Hyundai, pursue
cooperation strategies.
11) In the 1950s, Sony licensed the technology for the transistor from Bell Labs and
proceeded to become the world’s leading manufacturer of portable radios. Which
strategy was Sony using to gain competitive advantage?
A) collaboration
B) layers of advantage
C) changing the rules
D) loose bricks
E) engagement
12) Microsoft’s Windows 7 operating system was launched in 2009 with the user-centric
global advertising campaign keyed to the theme “I’m a PC, and Windows was my idea.”
This is an example of the dual-extension strategy.
13) A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents
when purchasing a Crest toothbrush. What type of sales promotion does this represent?
A) cross coupon
B) product placement coupon
C) trade promotion coupon
D) freestanding coupon
E) online coupon
14) In the 1950s, which company used transistor technology licensed from Bell Labs to
develop the transistor radio?
A) Nokia
B) Sony
C) Panasonic
D) RCA
E) Sanyo
15) 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
16) Bluetooth is gaining popularity in Europe compared to Wi-Fi due to all but one of
the following advantages:
A) less power consumption
B) well suited to use with cell phones
C) works over shorter distances
D) can be used in automobiles
E) can be incorporated into home appliances
17) Brazilian Carlos Ghosn is chief executive of:
A) Nissan Motor (Japan)
B) Pearson PLC (Great Britain)
C) Ford Motor Company (USA)
D) Pharmacia Corporation (USA)
E) Atlas Copco AB (Sweden)
18) ________ is a/an independent marketing intermediary that acts as the export
department for two or more manufacturers whose product lines do not compete with
each other.
A) Manufacturer’s export agent
B) Export commission representative
C) Export merchant
D) Export management company
E) Cooperative exporter
19) Which of the following is the largest retailer in the world in terms of annual sales
according to the top five global retailers, 2010?
A) Sears
B) Metro
C) Kmart
D) Carrefour
E) Wal-Mart
20) According to the authors of the Harvard Business Review article, “Serving the
World’s Poor, Profitably”, which of the following is a mistaken assumption that global
companies might have about the BOP (bottom of the pyramid)?
A) The poor have no money
B) The poor are too concerned with fulfilling basic needs to “waste” money on
nonessential goods
C) People in BOP markets will be criticized for exploiting the poor
D) People in BOP markets cannot use advanced technology
E) all of the above are mistaken assumptions discussed by the authors
21) Management strategic options pertaining to products that are facilitated by a single
European market include:
A) standardized packaging and labeling
B) consolidated production
C) shift from brand to benefit segmentation
D) seeking marketing economies
E) all of the above
22) What solution did Andersen Consulting provide to the Moscow Bread Company to
solve the problem of stale bread?
A) Deliver the bread frozen
B) Package the bread in plastic bags
C) MBC should convert a paperless office to cut red tape
D) Deliver the bread sliced rather than in whole loaf form
E) Use paper packaging for bread
23) A company with a polycentric orientation is likely to employ host-country nationals
in all but which of the following selling situations?
A) selling high-tech products in developed countries
B) selling high-tech products in less-developed countries
C) selling low-tech products in developed countries
D) selling low-tech products in less-developed countries
E) none of the above
24) Which of the following best describes the legal basis for protection of trade secrets,
patents, and copyrights in the United States?
A) Trade secrets, patents, and copyrights are protected by federal statutes
B) Trade secrets, patents, and copyrights are protected by state law
C) Trade secrets are protected by state law, while patents and copyrights are protected
by federal statutes
D) Trade secrets are protected by federal statutes, while patents and copyrights are
protected by state law
E) Trade secrets, patents, and copyrights are not protected by any laws
25) Peer-to-peer (p-to-p) marketing uses distribution channels through:
A) business-to-consumers
B) electronic commerce
C) business-to-business
D) door-to-door
E) manufacturer-to-wholesalers
26) Some wine importers insist on shipping their wines in refrigerated containers to
protect the wines from being damaged by high temperatures. Such importers are
creating which kind of utility?
A) place utility
B) time utility
C) form utility
D) information utility
E) worker utility
27) Concepts such as “assembler value chains” and “downstream value chains” are
associated with:
A) lean production
B) the matrix structure
C) polycentric organizational designs
D) the global marketing audit
E) traditional assembly design
28) Whirlpool conducts usability studies that provide insight into the ways consumers
interact with its products. In one study in an emerging market, engineers and designers
stood behind a two-way mirror and watched as a volunteer put groceries away in a
Kenmore Elite refrigerator. The Whirlpool team recorded a variety of data, such as the
amount of time required for the volunteer to finish the task and the number of features
used. The basis of this research study was based on the fact that:
A) listening to customers is only possible in America
B) data collected in the U.S. should be applicable in other countries
C) consumers in different countries prefer different types of features
D) in China, it will be difficult to find enough space in homes to put refrigerator
E) in India, refrigerators are seldom used by customers
29) Which of the following receives a fee for bringing together an exporter and a buyer
in another country?
A) foreign purchasing agent
B) export broker
C) export merchant
D) export management company
E) freight forwarder
30) 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
31) When Walt Disney company’s executives were planning to build a theme park in
France, they firmly believed that the success of McDonald’s and Coke as well as their
success in Tokyo Disneyland ensures the runaway success of their plans. Disney
policies prohibit sale or consumption of alcohol inside the theme parks which they also
implemented in France. This proved to be a failure since consuming wine with the
midday meal is a long-established custom in France. This is a classical example of:
A) the “think global, act local” principle
B) being victim to the self-reference criterion
C) a geocentric management orientation
D) miscalculation of the rate of diffusion of innovations in Europe
E) an unbiased perception of existing culture in Europe
32) 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
33) Recent research has confirmed that the levels in Maslow’s hierarchy are the same in
the United States and Asia.
34) Which of the following is true about advertising expenditures in Germany and
Brazil?
A) Television is the leading medium in both Germany and Brazil
B) Newspapers are the leading medium in both Germany and Brazil
C) Television is the leading medium in Brazil; newspapers are the leading medium in
Germany
D) Television is the leading medium in Germany; newspapers are the leading medium
in Brazil
E) Magazines are the leading medium in Brazil and Germany
35) Smartphones that are equipped with global positioning system can determine the
users exact geographic position. This capability has created new opportunity for
marketers by using all of the following innovative means except:
A) text messages can be sent to smartphone users who are in the vicinity
B) offering special deals to smartphone users who happen to be in the vicinity
C) promoting mobile campaign which will reach smartphone users
D) obtaining demographic information through the smartphone users
E) locate smartphone users for delivering products or services
36) Wi-Fi, or wireless fidelity, permits laptop and PDA users to establish high-speed
wireless connections to the Internet via:
A) infrared rays
B) magnetic rays
C) hot spots
D) laptop warriors
E) modem
37) The Walt Disney Company’s decision to build a theme park in France provides an
excellent vehicle to understanding SRC (Self-Reference Criterion). All of the
statements listed below portray this meaning except:
A) Disney executives believed there is virtually unlimited demand for American
cultural exports
B) French are sensitive about American cultural imperialism
C) Consuming wine with the midday meal is a long-established custom which was not
realized by Disney executives
D) Disney executives were blinded by their prior success and ethnocentrism
E) The SRC can be a powerful negative force in global business
38) 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 statement 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
39) Which automaker currently has a joint venture with Hindustan Motors (India)?
A) Volkswagen
B) Ford
C) GM
D) Renault
E) Mazda
40) 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
41) Environmental issues and challenges faced by a company which is in the initial
stages of implementing a personal selling strategy include all of the following except:
A) political risks
B) regulatory hurdles
C) product innovation
D) currency fluctuations
E) market unknowns
42) Which of the following is true about revised U.S. patent laws?
A) Patents are valid for 17 years after the patent is granted
B) Patents are valid for 17 years after the patent is filed
C) Patents are valid for 20 years after the patent is granted
D) Patents are valid for 20 years after the filing date of the application
E) Patents are valid as long as the product is manufactured
43) Wal-Mart refuses to stock CDs bearing parental advisory stickers for explicit lyrics
or violent imagery. Recording artists who want their recordings available at Wal-Mart
have the option of altering lyrics and song titles or deleting offending tracks. Likewise,
artists are sometimes asked to change album cover art if Wal-Mart deems it offensive.
Considering the elements of the five forces model this is an example of:
A) buyer power
B) supplier power
C) threat of new entrants
D) threat of substitute products
E) access to distribution channels
44) 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
45) 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
46) Which of the following correctly characterizes the retailing strategy of Benetton,
IKEA, and Gap?
A) few product categories, own-label focus
B) few product categories, manufacturer brand focus
C) many product categories, own-label focus
D) many product categories, manufacturer brand focus
E) none of the above
47) 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
48) A marketer of fine French cognac offers fancy cigar ashtrays as prizes to consumers
who correctly solve a crossword puzzle. Which of the following most accurately
describes this offer?
A) price promotion
B) non-price promotion
C) trade sales promotion
D) sweepstakes promotion
E) sampling
49) In the summer of 1999, Coca-Cola faced a major marketing problem in Europe.
Which of the following was at the heart of the problem?
A) pricing problems
B) advertising problems
C) sales promotion problems
D) public relations problems
E) distribution problems
50) What are some of the issues that need to be addressed when setting up for global
e-commerce?
51) Suppose that a book publisher sells a textbook for $150 each to its domestic
distributor. The same publisher sells the same edition of the textbook to a distributor in
Thailand for $85 since the affordable prices by Thai students may be much less than in
the domestic market. The textbook finds its way back into the domestic market since
the Thai distributor sold it back to another marketer who sells in the domestic market
for $85. What is this type of pricing known as, and what are the consequences of such
transactions to global marketers, if any?
52) Describe the guidelines that can assist marketing managers in their efforts to
establish global brand leadership.
53) Why does the tariff system vary from country to country? Explain, giving examples
of tariffs imposed by the United States with particular emphasis on preferential tariffs.
What are the conditions under which GATT allows the use of preferential tariffs?
54) The irony and paradox of the hypercompetition framework is that, in order to
achieve a sustainable advantage, companies must seek a series of unsustainable
advantages. Explain this statement using dynamic strategic interaction sequence.
55) A working knowledge of Incoterms can be a source of competitive advantage to
anyone seeking an entry-level job in global marketing. What are “Incoterms,” and how
are they classified? How are Incoterms applied in global marketing?