Global Marketing Management, 8e (Keegan)
Chapter 1 Introduction to Global Marketing
1) One difference between domestic marketing and global marketing is the scope of activities.
2) Marketing discipline varies from one region to another.
3) Marketers can always directly apply experience from one country to another or from one
market to another.
4) The old marketing concept focused on a customer-centric marketing approach.
5) The strategic concept of marketing focuses on customer satisfaction in a socially responsible
and sustainable way.
6) A company’s competitive advantage exists only in its price differentiation strategies.
7) A company engaging in global marketing must standardize all elements of the marketing mix
everywhere in the world.
8) Global marketing requires marketers to behave in a way that is global and local at the same
time by responding to similarities and differences in world markets.
9) Market capitalization is defined as a company’s total revenues in a given accounting period.
10) Ethnocentric companies are sometimes referred to as global companies.
11) Ethnocentric companies cater to the different needs of different world regions.
12) A polycentric company views foreign operations as being secondary or subordinate to
domestic operations.
13) Global companies view world regions as unique and seek to develop an integrated regional
strategy.
14) A regiocentric manager views the world outside his area of interest with an ethnocentric
orientation.
15) Geocentric companies are integrated on a global scale.
16) Geocentric companies are based on a belief of home-country superiority.
17) A polycentric orientation is diametrically different from an ethnocentric orientation.
18) Management vision is a driving force for global integration.
19) Cost is a restraining force affecting globalization.
20) Multinational companies adhere to the notion that the products that succeed in the home
country are superior and, therefore, can be sold everywhere without adaptation.
21) Trade agreements such as the European Union and NAFTA have decreased the pace of
global integration.
22) Most global markets do not exist in nature; they are created by marketing effort.
23) The time and cost barriers associated with distance have increased over the past decade.
24) A domestic company will have many times the revenue of a global company as it focuses
only on local regions.
25) A global company can leverage its experiences in any market in the world.
26) Countries protect local enterprise and interests by maintaining control over market access
and entry.
27) Government regulations on advertising and promotion are similar across all world countries.
28) Which of the following is a focus of the new concept of marketing?
A) Mmaking a profit is the only end result of selling products.
B) emphasizing the product rather than the end consumer
C) achieving objectives by pushing products toward consumers
D) using integrated marketing mix to achieve profits
29) Which of the following is a marketing mix element?
A) profit
B) promotion
C) potential
D) package
30) Which of the following statements is true about the strategic concept of marketing?
A) Its objective is to maximize stakeholder benefits.
B) It has a product-centric marketing focus.
C) It emphasizes marketing from a company-centric paradigm.
D) Its focus is only on consumers and not their societies.
31) Which of the following statements is true about global marketing?
A) Marketing practices must vary between different market segments.
B) Customers and markets across regions are considered similar.
C) Transferring irrelevant experience between markets may be beneficial.
D) Marketing initiatives cannot include more than one marketing mix element.
32) Which of the following statements best describes the phrase “global localization” in a
nutshell?
A) A global product must be the same product everywhere without modifications in the
marketing mix.
B) A global marketer must push local markets to accept global products.
C) A global marketer must adapt product marketing mix to the similarities and differences in the
world market.
D) A global product must be a different product everywhere across the world regions.
33) A company that sees only the similarities between the domestic and the world market is said
to have a(n) ________ orientation.
A) regiocentric
B) ethnocentric
C) concentric
D) polycentric
34) Levy Inc., a U.S.-based smartphone manufacturer, extends its line of high-end smartphones
to the Asian market to capitalize on the high demands for smartphones. Owing to its huge
success in the United States, Levy uses the same set of marketing mix in the Asian markets. In
this case, the company’s management orientation is referred to as ________.
A) regiocentric
B) polycentric
C) concentric
D) ethnocentric
35) In a(n) ________ international company, foreign operations are viewed as being secondary
or subordinate to domestic operations.
A) ethnocentric
B) concentric
C) polycentric
D) regiocentric
36) Which of the following management orientations views only the differences in the world
regions?
A) ethnocentric
B) regiocentric
C) polycentric
D) concentric
37) Which of the following statements is true of a polycentric company?
A) Its orientation is based on a belief in home-country superiority.
B) Its marketing management is decentralized.
C) It’s generally referred to as a domestic company.
D) It views foreign operations as being secondary to domestic operations.
38) A(n) ________ company typically has a regiocentric or geocentric management orientation.
A) multinational
B) transnational
C) domestic
D) international
39) Which of the following management orientations provides a worldview and sees the
similarities and differences in home and host countries?
A) ethnocentric
B) polycentric
C) concentric
D) geocentric
40) Latour Boutiques, which is based in Europe, views each section within the European Union
as a unique market and develops an integrated marketing strategy to sell its products. Due to its
success in the European territory, Latour exports its products to other world markets sans any
modifications. In this case, Latour’s management orientation is typically ________.
A) concentric
B) polycentric
C) regiocentric
D) geocentric
41) Which of the following companies is centralized in its market management strategies?
A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric
42) Which of the following companies typically has a polycentric management orientation?
A) transnational
B) international
C) domestic
D) multinational
43) Which of the following orientations is based only on home-country superiority?
A) ethnocentric
B) polycentric
C) geocentric
D) regiocentric
44) Which of the following is a driving force for global integration?
A) domestic focus
B) market needs
C) market differences
D) national controls
45) Which of the following is a restraining force behind global integration?
A) market needs
B) management vision
C) strategic intent
D) national controls
46) A(n) ________ corporation tries to link world resources to world market opportunities.
A) ethnocentric
B) geocentric
C) polycentric
D) concentric
47) Which of the following factors restrains ethnocentric companies from pursuing opportunities
in the global market?
A) experience transfer
B) scale economies
C) global strategy
D) management myopia
48) What are the new concept of marketing and the Four Ps?
49) What is the value equation? Identify its various components and explain how the equation
relates to a company’s pursuit of competitive advantage.
50) What are the differences between regiocentric and geocentric management orientation?