A new factor that has encouraged regionalization is the insight that:
A.customer needs and preferences seldom differ markedly between regions.
B.understanding customers in different parts of the world does not require any
face-to-face interaction.
C.even in the age of the Internet and global communications, distance still matters.
D.it is possible to virtually manage employees and deal with local subsidiary managers.
Products which have been standardized to offer uniform features in all countries are
described as:
A.regional products.
B.global products.
C.world-class products.
D.pan-regional products.
Which old marketing adage is the most appropriate in mature markets?
A.Low cost is a key to success.
B.The customer is King.
C.Supply will rise to meet demand.
D.Two for one, today only.
Which of the following industries is MOST likely to embrace the horizontal approach
to global marketing organization?
A.Computers
B.Automobiles
C.Clothing
D.Telecommunications
Nestle Corporation enjoys a strong global brand image that facilitates its entry into new
foreign markets. The firm’s reputation for quality and value, as represented by its brand
name, is a valuable asset BEST described as:
A.brand positioning.
B.brand localization.
C.brand equity.
D.brand adaptation.
Which of the following statements is NOT true about internet searches?
A.Brands with large market shares and well-known names receive a majority of the
hits.
B.In many emerging markets the consumers have long waited for the arrival of
well-known brands.
C.There is a pent-up demand for the well-known brands that the newly arrived local
marketer can capitalize on.
D.More sophisticated consumers prefer to make hierarchical decisions by keeping away
from internet searches.
The greater price sensitivity that has come to characterize the Japanese consumer since
the early 1990s was a result of all of the following factors EXCEPT:
A.the easing of the “large-store” law.
B.the rise of parallel imports.
C.the development of “intrabrand” competition.
D.higher tariffs for foreign firms.
According to the text, television and magazine advertising increase the chances of:
A.awareness and purchase.
B.attitude change and image building.
C.knowledge transfer and purchase.
D.behavior change and awareness.
An interactive marketing system that uses one or more advertising media to effect a
measurable response and/or transaction at any location is:
A.cross-marketing.
B.direct marketing.
C.in-store promotions.
D.trade promotions.
The difficult obstacle to service standardization is usually:
A.quality control.
B.inventory control.
C.the human element.
D.computerization.
What happened in July 1997 that caused the worldwide financial crises?
A.The Vietnam war ended.
B.Thailand devalued its currency.
C.China tested a nuclear bomb.
D.India opened its markets to outsourcing.
The Interline Corporation would like to compare its advertising efforts against those of
competitors and its industry in the domestic market. Which of the following methods of
setting the advertising budget would be the MOST consistent with that desire?
A.Objective-task
B.All-you-can afford
C.Percentage-of-sales
D.Target rate of return
During preliminary screening, exchange rate volatility is considered to be an indication
of:
A.underlying economic or political problems.
B.prohibitive tariff barriers.
C.distribution problems.
D.slow population growth.
One of the earliest and best-known examples of an application of the matrix to several
country markets is the one developed by:
A.Ford Motor Company.
B.General Electric company.
C.McKinsey, a consulting firm.
D.BCG.
First Boston Corporation has historically had difficulty in wrestling market share from
British competitors in Hong Kong and Singapore. The firm’s problem is an example of:
A.a neocolonial attitude.
B.the price effect.
C.the global brand effect.
D.the egalitarian attitude.
In which of the following purchase “decision rules” all product features are considered
simultaneously?
A.The compensatory decision rule
B.The evoked set decision rule
C.The hierarchical decision rule
D.The cost/benefit decision rule
Plans for a common MERCOSUR currency would probably result in:
A.a shift towards a “lowest common price.”
B.a general increase in prices.
C.an increase in tariff barriers.
D.increased hostility toward foreign firms.
Even experienced managers thrust into unfamiliar cultures may unintentionally offend
foreign nationals through their dress, body position, gestures, eye movements or other
factors which compose the:
A.culture shock.
B.body language.
C.”silent speech.”
D.culture trap.
The newly democratized post-communist nations are usually placed under which type
of market category?
A.Mature markets
B.New, open markets
C.New growth markets
D.Emerging markets
_____ is most applicable to business-to-business marketing.
A.Relationship marketing
B.Direct marketing
C.Internet marketing
D.Channel marketing
The PRIMARY problem associated with the use of penetration pricing is the:
A.necessity of targeting relatively small niches.
B.need to accept slower market growth.
C.likelihood of attracting competition.
D.charges of selling its products below cost.
With regard to pricing, most global marketers entering the Latin market should:
A.price low to meet local competitors “head-on”.
B.employ a true skimming strategy.
C.aim at the large, and growing, upper class.
D.extend the high price range to include mid-range prices.
Hofstede’s mapping is especially helpful in determining the degree of cultural
adaptation for which of the following elements of the marketing program?
A.Product and packaging
B.Pricing and product
C.Packaging and pricing
D.Communications and services
All of the following statements about foreign acquisitions are true EXCEPT:
A.new products may not be compatible with existing product lines.
B.the sales force and existing channel members may have to be retrained.
C.the acquiring firm may benefit from the goodwill built up by the local firm.
D.it is easy to find candidates for acquisition that perfectly fit the acquiring firm’s entry
objectives.
Godiva Corporation produces strong global brands of luxury products. Which of the
following NIEs is MOST likely to be a prime market for its goods?
A.Russia
B.Europe
C.Singapore
D.Japan
Which of the following countries has the largest number of retail establishments?
A.The United States
B.Germany
C.Italy
D.Great Britain
The overall importance of the market for competitors is usually:
A.higher for domestic firms than for foreign entrants.
B.higher for foreign entrants than for domestic firms.
C.the same for both foreign and domestic competitors.
D.impossible to measure.
Functional over-standardization may lead to:
A.insufficient marketing research.
B.poor follow-up.
C.narrow vision.
D.mispositioning.
Which of the following industries tends to show the HIGHEST advertising-to-sales
ratio?
A.Automobiles
B.Cosmetics/personal care
C.Consumer packaged goods
D.Tobacco
Both Disney and Warner Brothers are now operating a number of stores selling a wide
variety of products bearing the likeness of their cartoon characters. The popularity of
these stores demonstrates the power of:
A.point-of-purchase advertising.
B.in-store promotion.
C.cross-marketing.
D.publicity.
Avon Corporation employs a high degree of standardization, regardless of the specific
country, throughout Latin America. The firm must believe that the Latin American
market is _____ in nature.
During its entry negotiations with the Chinese government, 3M Corporation expressed
concern that Chinese insistence upon the formation of joint ventures with local firms
would pose a threat to its proprietary technology. The firm may be able to avoid this
threat and still do business in China by:
A.unbundling to sell only components.
B.forming R & D alliances.
C.negotiating franchise arrangements.
D.selling only under licensing agreements.
Liz Claiborne Corporation is increasingly involved in marketing to large, global retail
chains. To meet the demands of these customers for customized product design,
advertising, direct marketing, and sales promotions, the firm is MOST likely to form:
A.international trade groups.
B.retail matrix units.
C.global retail account units.
D.retail trade marketing groups.
Global marketing can bring the benefits of globalization to people around the world
when implemented with an:
A.attention to local sensitivity.
B.ignorance to local sentiments.
C.attention to debt financing.
D.attention to critical density.
Which of the following is the last step in brand equity valuation?
A.Assess the role of the brand in intangible earnings to get a measure of “brand
strength.”
B.Compute the NPV of the projected future earnings attributable to the brand.
C.Estimate intangible earnings in each market as brand revenue less operating costs,
taxes, and cost of capital employed.
D.Estimate the future potential of the brand by deriving a “viability score,” which
indicates the long-term competitiveness of the brand.
Your author states that, “Financial, managerial, and other resource constraints often
dictate a more sequential approach” to global expansion. Explain why a sequential
method is the more prudent approach to foreign marketing.
Martin-Marietta Corporation would like to export high-technology electronics products
to Russia, China, North Korea, and Iraq. The firm may encounter obstacles from the
U.S. government in the form of _____.
The Nex Pro Corporation is currently active in all types of international markets posing
a variety of entry barriers. In its _____ markets, the firm must deal with high tariffs and
direct governmental intervention. In _____ markets, the challenge is to quickly
penetrate the market and establish a leadership position in order to secure first-mover
advantages. _____ markets emphasize competition on market share with severe
“natural” barriers created by locally-favored brands.
The Newbie Corporation has never attended a global trade fair. The firm believes that
its limited funds can be better used for other targeted promotions of its products. Why
should Newbie rethink its position?
Many firms have found that establishing _____ for global budgeting, global
performance reviews, and global accounting are helpful in their efforts to implement
global marketing.
After entering several foreign markets through OEM agreements with large local
retailers, the LG Corporation would like to sell under its own name. How can this be
accomplished? How can the firm minimize conflicts with existing wholesalers and
retailers?
When it comes to _____, the cultural issues revolve broadly around the question of the
extent to which adaptation in the marketplace is always necessary.
What is meant by the phrase “Equal, but not the same” as far as culture foundations are
concerned? What are the two main effects that culture has on the global marketing of
products?
Receiving payment from foreign buyers is often complicated by governments who
impose ________________ restrictions.
Briefly describe the three approaches a global firm may employ to coordinate pricing in
global markets. Which is MOST commonly used? Why?
Sony, Mercedes-Benz, Microsoft, Coca-Cola, etc., are examples of _____.
While it realizes that it may not be possible to use exactly the same advertising in all of
its markets, the Caster Oil Corporation desires to gain as much of the cost-savings and
efficiency of global advertising as possible. How can the firm balance its desire for
global efficiency against the need for local adaptation?
LG Corporation has long embraced the concept of customer satisfaction in its domestic
and foreign markets. How has that concept changed in meaning in the last decade? How
can the firm BEST meet this challenge? What has been, and will continue to be, the
result of this “new form” of competition?
Three types of forecasting techniques can be used in the early stages of the product life
cycle. These are ______________, ___________________ and
___________________.
Compaq Corporation is entering the “pan-European” market. Briefly evaluate the three
strategic options facing the firm as it prepares to sell its personal computers.
The creation of a(n) _____ structure is usually the first organizational step toward entry
into foreign markets.
_____ sell to retailers or industrial users, but _____ sell directly to the ultimate
consumer.