Chapter 18: New Directions and Challenges
TRUE/FALSE
1. Death of distance is the measure of the inequality in the population and health profiles between rich
and poor countries.
2. Nearly all of the world population growth is now concentrated in the world’s wealthiest nations.
3. The advanced economies tend to have the most broadband subscribers.
4. Cultures around the globe will become more similar with respect to macro issues.
5. Cocooning leads to a decrease in the sale of video games and DVDs.
6. Technology makes cocooning easy.
7. During the 2008 economic crisis, Iceland seized United Kingdom’s bank funds.
8. The trend in international marketing is to have a decentralized budgeting process.
9. The trend in international marketing is to have a decentralized marketing mix.
10. Sustaining growth is an example of innovation.
11. Application innovation takes existing technologies into new markets to serve new purposes.
12. Marketing innovation makes processes for established offers in established markets more effective or
efficient.
13. Structural innovation capitalizes on disruption to restructure industry relationships.
14. Experiential innovation is the first stage in the life cycle of a product category.
15. Marketing innovation is the last stage in the life cycle of a product category.
16. Companies that innovate across borders and across companies are referred to as metanational
innovators.
17. Videoconferencing is a form of interactive digital media.
18. Virtual worlds appeal more to an older audience.
19. With the help of fMRI, the researcher can see what consumers are really viewing when they see an
advertisement, a package design, or website.
20. Brand information found in the center of the screen is a strong predictor of ad recognition.
MULTIPLE CHOICE
1. _____ is the measure of the inequality in the population and health profiles between rich and poor
countries.
a.
Cocooning
b.
Demographic divide
c.
Death of distance
d.
Cultural gap
2. Which of the following is true of world population?
a.
The world’s wealthiest nations have the highest population.
b.
Growth of population in the wealthier countries is a result of increased birth rate in these
countries.
c.
Growth of population in the wealthier countries is a result of immigration.
d.
Decrease of population in the poorer countries is a result of decreased longevity.
3. Which of the following is a result of technology?
a.
Demographic divide
b.
Cultural clash
c.
Population growth in the wealthiest nations
d.
Death of distance
4. Which of the following is an/are indicator(s) of the level of technological development?
a.
Passport holders
b.
Broadband Internet subscribers
c.
Student population
d.
Unemployed population
5. Which of the following is true of technology?
a.
It increases the cost of performing functions.
b.
It is more developed in advanced nations.
c.
It is rarely accurate.
d.
It leads to inefficiency in marketing.
6. Macro issues such as accountability, performance expectations, freedom accorded within society, and
product preferences lead to _____.
a.
similarity in cultures around the world
b.
cultural clashes across countries
c.
death of distance
d.
cocooning
7. Which of the following is expected at the micro level, with regard to culture?
a.
Cultural clashes
b.
Accountability
c.
Performance expectations
d.
Product preferences
8. Which of the following can inhibit globalization?
a.
Transportation
b.
Technology
c.
Death of distance
d.
Cultural clashes
9. Cocooning is:
a.
not influenced by technology.
b.
a trend that first appeared in 2001 after the terrorist attacks in the United States.
c.
observed only in the United States.
d.
not easy for people who engage in social exchange via social networking sites.
10. Which of the following is true of cocooning?
a.
It discourages expenses like renting of DVDs and meal-preparation ingredients.
b.
It promotes purchases like traveling and eating out.
c.
It was more popular before the 2001 terrorist attacks.
d.
It is a worldwide trend of staying at home.
11. Kate, an editor, does most of her work from home because she finds it unsafe to go out. She shops
online, watches movies on her television, and plays video games for entertainment. This lifestyle of
Kate is referred to as _____.
a.
cocooning
b.
westernization
c.
indolence
d.
teleporting
12. The sales of _____ have increased as a result of cocooning.
a.
movie tickets
b.
video games
c.
train tickets
d.
concert passes
13. The sale of which of the following products or services would decrease as a result of cocooning?
a.
Movie tickets
b.
Video games
c.
DVDs
d.
Meal-preparation ingredients
14. Which of the following was a result of the economic crisis that began in 2008?
a.
Iceland seized the United Kingdom’s bank funds.
b.
The United States seized Icelandic bank funds.
c.
Iceland was not at all affected by this crisis because of its strong banking sector.
d.
The relationship between Iceland and the United Kingdom got seriously damaged.
15. Which of the following factors helps in safeguarding the earth?
a.
Sustainable development
b.
Urbanization
c.
Growing population
d.
Energy demand
16. The concern about the world’s natural resources and sustainability has led to a variety of predictions
about the future. Which of the following predictions is true?
a.
Governments will attempt to put less land into grain production.
b.
Farming will lose its attractiveness and profitability.
c.
Recycling and recovery will grow as vital business opportunities.
d.
There will be less emphasis on water conservation.
17. Which of the following is a disadvantage of the Internet in globalization?
a.
Reduced ability in customizing for local markets
b.
Increased worker mobility
c.
Cost inefficiency
d.
Limited market expansion
18. According to recent trends, which of the following is most likely to be centralized?
a.
Budgeting process
b.
Spending
c.
Allocation
d.
Marketing mix
19. Which of the following factors would lead a business to choose a decentralized structure?
a.
Global customers who are culturally alike
b.
Global customers with similar tastes
c.
Global customers with similar standards of living
d.
Global customers with local preferences
20. _____ innovation gets a great deal of attention and has its roots in technological discontinuities.
a.
Process
b.
Disruptive
c.
Application
d.
Product
21. _____ innovation takes existing technologies into new markets to serve new purposes.
a.
Process
b.
Disruptive
c.
Application
d.
Product
22. _____ innovation takes established offers in established markets to the next level.
a.
Application
b.
Product
c.
Process
d.
Experiential
23. _____ innovation makes mechanisms for established offers in established markets more effective or
efficient.
a.
Product
b.
Process
c.
Experiential
d.
Marketing
24. _____ innovation makes surface modifications that improve customers’ exposure to established
products or processes.
a.
Product
b.
Process
c.
Experiential
d.
Marketing
25. _____ innovation improves customer-touching processes.
a.
Product
b.
Process
c.
Experiential
d.
Marketing
26. _____ innovation reframes an established value proposition to the customer or a company’s
established role in the value chain, or both.
a.
Business model
b.
Structural
c.
Process
d.
Product
27. _____ innovation capitalizes on disruption to modify industry relationships.
a.
Experiential
b.
Process
c.
Business model
d.
Structural
28. Which of the following innovations takes place at the earliest stage of a product category’s life cycle?
a.
Experiential
b.
Disruptive
c.
Marketing
d.
Structural
29. Which of the following innovations takes place at the last stage of a product category’s life cycle?
a.
Disruptive
b.
Application
c.
Structural
d.
Process
30. Companies that innovate across borders and across companies are referred to as _____ innovators.
a.
subnational
b.
multinational
c.
transnational
d.
metanational
31. Social networking websites and blogs are examples of _____.
a.
sign language media
b.
unicast media
c.
Internet think tanks
d.
interactive digital media
32. Which of the following tools/techniques helps in finding out what was noticed or not noticed and what
seemed to pique interest on a website?
a.
Digital video recorders
b.
Virtual worlds
c.
Eye-tracking technology
d.
Functional magnetic resonance imaging
33. Which of the following is a true eye-tracker study result?
a.
Brand information found in the center of the screen is a strong predictor of ad recognition.
b.
Fast-forwarding viewers constrain their vision to the right of the screen.
c.
All visitors scroll below the fold to see the ads.
d.
Advertisements with branding in the corners lead to increased brand attitude.
34. _____ is a noninvasive neural-imaging technique that basically looks inside the brain.
a.
Neuromarketing
b.
Magnetic immunoassaying
c.
Eye-tracking
d.
Functional magnetic resonance imaging
35. Which of the following can be detected with the help of an fMRI?
a.
Whether a person will purchase a given product
b.
The real-time scan path or eye movement and areas of focus
c.
Static plots illustrating where the respondent looked on a website
d.
What was noticed or not noticed and what seemed to pique interest on a web site
ESSAY
1. What is cocooning? How does it affect the sales of various products and services?
2. What are the different types of innovations?
ANS:
3. How does eye-tracking technology aid marketing research?
ANS: