When Walmart came to Brazil in the mid-1990s, it discovered that local competitors did
not have the technological infrastructure that allowed them to match its aggressive
pricing policies.
Licensing agreements offer limited market control since the licensee typically does not
become involved in the licensor’s marketing program.
High-contextmessages are explicit and specific; words carry most of the
communication power.
Some advertisers acknowledge that, in Brazil, traditional outdoor advertising may not
be the best communication channel due to noise level.
When research shows that Burberry and Ferragamo are perceived as the most similar by
consumers while Coach and Dior are the farthest apart, researchers can interpret the
results to show which brands are in direct competition.
Intangibleproduct attributes, include the status associated with product ownership, a
manufacturer’s service commitment, and a brand’s overall reputation or mystique
In China, consumers are reluctant to buy full-sized packages of unfamiliar imported
products. In such a marketing environment, sampling is an appropriate promotional
strategy.
A nontariff barrier (NTB) is a hidden trade barrier that is a deterrent or obstacle to the
sale of products in a foreign market.
Despite commanding a 37 percent share of the global cellular handset market, Nokia
announced that it would make the source code for handset manufactured by Siemens
AG.
When assessing potential country target markets, management should rely heavily on its
network of contacts as a primary criterion for targeting.
Some observers believe global market integration is enriching national economic
sovereignty.
Subaru’s assembly plant in Indiana is the first “zero landfill” auto plant in the United
States.
Intel’s loose brick was its narrow focus on complex microprocessors for PCs.
One of the benefits of strong brand equity is more elastic consumer response to price
increases.
One of the Corporate Social Responsibility (CSR) initiatives by IKEA’s primary carpet
supplier in India is to provide good working conditions for children working in the
India’s carpet industry.
The matrix organization requires fundamental changes in management behavior,
organizational culture, and technical systems.
After research has zeroed in on potential markets, there is no substitute for a personal
visit to size up the market firsthand and begin the development of an actual export
marketing program.
Competition in an industry tends to drive rates of return on invested capital up towards
the level of “perfect competition.”
Despite trade agreements, attempts to achieve integration in Central America have been
described as uncoordinated, inefficient, and costly. There are still tariffs on imports of
sugar, coffee, and alcoholic beverages.
Historically, the lagoon in Venice provided Venetians with a safe haven from Germanic
and Hun invaders.
Brazil is not among the emerging market countries who have signed the New York
Convention.
In Japan, the biggest barrier facing U.S. auto manufacturers is that half the cars that are
sold each year are sold door-to-door.
Multinational companies pursuing strategies of product adaptation run the risk of failing
to be successful against global competitors that have recognized opportunities to serve
global customers.
Since hand carried wine bottles crossing the border from Hong Kong to China are
taxed. Entrepreneurial individuals hire “mules” to transport wine into the mainland.
The CEO of Otis Elevators says they measure elevator populations in countries as units
installed per thousand people. According to this, China is about one-half an elevator per
thousand people.
Africa represents a huge untapped market for shoes since most people walk barefoot.
Thus, it will be easy to alter entrenched consumer behavior pattern if shoes are
available.
Starbucks entered India via an alliance with the Tata Group. This is an example of
“market penetration.”
China, India, Brazil, and the European Union (EU) have taken the position that, because
the Internet is global, one single country should be in control of it.
In the last stage of the developmental process for exporting, a firm evaluates global
market potential before screening for the “best” target markets to include in its
marketing strategy and plan.
Licensing is a contractual agreement whereby one company (the licensor) makes a
legally protected asset available to another company (the licensee) in exchange for
royalties, license fees, or some other form of compensation.
A latent market is, in essence, an undiscovered market segment.
A company using geocentric pricing neither fixes a single price worldwide, nor allows
subsidiaries or local distributors to make independent pricing decisions.
The joint venture between Corning Glass and Mexican manufacturer Vitro failed
primarily due to conflicts arising from cultural differences.
Legislatures in India are suspicious about Walmart’s motives in going to India, since
they fear the foreigners will raise prices after they have driven small operators out of
business.
Historically, many companies that used the ________ for pricing were located in the
Pacific Rim.
A) skimming strategy
B) penetration strategy
C) cost-based strategy
D) price ceiling strategy
E) transfer pricing strategy
Tools that can be used for collecting primary data include:
A) survey research and interviews.
B) consumer panels and observation.
C) focus groups and survey research.
D) interviews and observation.
E) all of the above
While some food preferences remain deeply embedded in culture, there is plenty of
evidence that global dietary preferences are converging. Examples of such a change can
be predicted from the:
A) popularity of Domino’s Pizza in Italy.
B) preference for local hamburgers from a local chain, Jollibee’s, in the Philippines.
C) growing number of McDonald’s restaurants globally.
D) increased sales of soups and noodles in Thailand.
E) popularity of Chinese foods in Taiwan.
Licensing as a market entry mode has several disadvantages and opportunity costs,
which does not include:
A) limited market control.
B) agreement may have short life.
C) leveraging and exploiting by licensee.
D) similar product or technology development by licensee.
E) adaptations by licensee to fit local tastes.
Which of the following has an American woman as the chief executive?
A) Nissan Motor (Japan)
B) PepsiCo (USA)
C) Ford Motor Company (USA)
D) Pharmacia Corporation (USA)
E) Atlas Copco AB (Sweden)
The five original members of the Central American Common Market (CACM) are El
Salvador, Honduras, Guatemala, Panama, and Cost Rica.
Saks Fifth Avenue has ________ stores in the Middle East.
A) licensed
B) organic
C) franchise
D) joint venture
E) own-label focus
Which of the following lists some of the steps in the market research process in the
correct order?
A) determine information requirement→problem definition→choose unit of
analysis→examine data availability→assess value of research
B) problem definition→assess value of research→determine information
requirement→choose unit of analysis→examine data availability
C) examine data availability→problem definition→choose unit of analysis→assess
value of research→determine information requirement
D) choose unit of analysis→assess value of research→problem definition→determine
information requirement→examine data availability
E) examine data availability→assess the value of research→problem
definition→presentation
Coupons are not a favorite promotion tool for use in:
A) the United Kingdom.
B) Belgium.
C) the United States.
D) Italy.
E) Malaysia.
When a marketer understands that a product satisfies a buyer’s rational criteria while
also evoking an emotional response, the marketer should:
A) only target consumers in high-income countries.
B) utilize a multi-tiered targeting strategy rather than a concentrated strategy.
C) commission psychographic segmentation studies to augment demographic data.
D) create advertising that reflects a bipolar, high-tech and high-touch approach.
E) follow normal targeting strategy.
Transnational companies, such as Toyota and Honda, have characteristic features that
include:
A) being in both global markets and utilizing global supply chains.
B) characterized by a mind-set of being ‘stateless.”
C) using both localized and standardized elements in marketing programs.
D) decisions made on the basis of ongoing research.
E) all of the above.
The dimensions of global marketing strategy include all of the following except:
A) Concentration of marketing activities
B) Development of cultural activities
C) Coordination of marketing activities
D) Integration of competitive moves
E) Integration of marketing mix
A fundamental difference between regular marketing and global marketing is the:
A) lack of marketing mix.
B) scope of activities.
C) lack of strategic planning.
D) focus on resources.
E) lack of communication.
The fastest-growing sector of world trade includes:
A) travel and entertainment.
B) accounting and legal services.
C) royalties and license fees.
D) engineering services.
E) all of the above
Which of the following is an IT tool designed specifically to help retailers work more
closely with vendors on stock replenishment?
A) BOLD
B) ECR
C) data warehouse
D) projection
E) EDI
Which of the following correctly characterizes the retailing strategy shared by Toys “R”
Us and Virgin Megastores?
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
Starbucks dropped the word “Coffee” from its logo. This is an example of:
A) Standardization.
B) Adaptation.
C) Diversification.
D) Automation.
E) Modernization.
________ is derived from the price required to be competitive in the global
marketplace.
A) Market-based transfer price
B) Cost-based transfer price
C) Negotiated transfer price
D) Horizontal price
E) Vertical price
The visionary strategy of the Chief Executive Officer of Volkswagen which included
switching the German plants entirely to the new model, failed due to all of the
following reasons except:
A) resistance on the part of German unions.
B) confusion among American dealers about where it was made.
C) investment of billions of dollars in Skoda autoworks in Czechoslovakia.
D) investment in SEAT in Spain.
E) continued demand for Beetle model in the United States.
Among the upper-middle-income countries, also known as industrializing or developing
countries, the following aspects are observed except:
A) the CNI capita ranges from $4,126 to $12,475.
B) the percentage of the population engaged in agriculture drops sharply.
C) people move to the industrial sector.
D) the degree of urbanization increases.
E) none of the above
Amazon.com, the leading Internet bookseller, allows users to purchase books, CDs, and
other products online. Amazon.com is primarily a(n) ________ site.
A) promotion
B) content
C) transaction
D) execution
E) cyber
The country that withdrew from the original members of the Andean Community is:
A) Bolivia.
B) Chile.
C) Ecuador.
D) Peru.
E) Venezuela.
In today’s dynamic global competitive environment, organizations need to develop new
forms of:
A) ethnocentrism and myopia.
B) flexibility, efficiency, and responsiveness.
C) export department structure.
D) self-reference criterion.
E) geographic structure.
In every industry, companies are embedded in a(n) ________, which has a cost
structure associated with it that dictates the margins needed to achieve profitability.
A) innovator’s dilemma
B) transaction
C) URL
D) value network
E) digital network
Primary stakeholders include all of the following except:
A) top management.
B) employees.
C) media.
D) suppliers.
E) customers.
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
The entry global retailing market expansion strategies include all of the following
except:
A) franchise.
B) chain acquisition.
C) departmental stores.
D) joint ventures.
E) organic.
Which of the following is not one of the steps in the Strategic/Consultative Selling
model?
A) develop personal selling philosophy
B) develop relationship strategy
C) develop product strategy
D) develop ethnocentric policy
E) develop customer strategy
Intel’s loose brick was:
A) it’s narrow focus on complex microprocessors for PCs.
B) demand for non-PC products.
C) getting into the smartphone market.
D) unbeatable in computer market.
E) developing new chips incorporating 3D technology.
To win a contract to supply the United Kingdom with AWACS military aircraft, Boeing
agreed to purchase products from the United Kingdom whose value was equivalent to
130% of the contract. This type of pricing arrangement, which is common when the
customer is a foreign government and the product has military applications, is known
as:
A) barter.
B) switch trading.
C) compensation trading.
D) offset.
E) dumping.
The Washington, D.C.-based Heritage Foundation survey consists of over 178 countries
ranked by degree of economic freedom. The key economic variables considered for this
ranking include all of the following except:
A) taxation policy.
B) government consumption of economic output.
C) percent foreign ownership.
D) banking policy.
E) wage and price control.
In a recent case, Revlon sued United Overseas Limited (UOL) in the U.S. District Court
for the Southern District of New York for breach of contract. UOL countered by asking
the court to dismiss the claim since they are not operating in that area. Revlon cited the
presence of a UOL sign above the entrance to the offices of a New York company in
which UOL had a 50-percent ownership. The court dismissed UOL’s claim. This is an
issue related to :
A) jurisdiction.
B) antitrust.
C) dilution of equity.
D) bribery and corruption.
E) intellectual property.
Several years ago, the D’arcy Massius Benton & Bowles (DMBB) agency created
psychographic profiles for several countries and regions.” Which region did the survey
specifically focused on?
A) Asia
B) America
C) Europe
D) Australia
E) Far East
Trade ministers representing the WTO member nations meet ________ to work on
improving world trade.
A) weekly
B) monthly
C) annually
D) biannually
E) fortnightly
Counterfeiting is:
A) the use of a formal legal document for illegal purposes.
B) the ownership of a written, recorded, performed or filmed creative work.
C) the unauthorized copying or production of a product.
D) the use of a product name that has different meaning than the original brand.
E) the use of a distinctive mark of a brand that is no longer producing the original
brand.
Walt Disney Company has successfully adapted licensing as a market entry mode in
different countries. What are the advantages of using licensing as entry mode?
After evaluating identified segments, decisions have to be made whether to pursue a
particular opportunity or not. Assuming the decision is made to proceed, an appropriate
targeting strategy must be developed. Explain the basic categories of target marketing
strategies and how they can be implemented.
“The worldwide success of Apple’s iTunes Store has generated a backlash of sorts.”
Explain why this statement is true giving examples.
What is the significance of innovation in global marketing? Describe different
categories of innovation with examples.
Although the ASEAN countries are geographically close, they have historically been
divided in many respects. Elaborate on this statement and highlight the important
economic development of member countries within ASEAN. How does Singapore
represent a special case within the ASEAN nations?
Why is compensation trading also called a “buyback?” How does it differ from switch
trading?
Global marketing does not necessarily mean operating everywhere since there are
forces affecting global integration and global marketing. Justify this statement using
examples based on the world economic trends.
In recent years, in light of the technological developments, many exporters have been
forced to finance international transactions by taking full or partial payment in some
form other than money. A number of alternative forms of payments known as
countertrade are widely used. How does a countertrade transaction work? How do
barter transactions differ from offset?
Hofstede considers culture as “the collective programming of the mind,” which makes it
necessary to look at the attitudes, beliefs, and values. Giving an example of a country,
explain how these attributes are so important.
Applying Hofstede’s typology, show how Power Distance and Gender Differentiation
can influence the marketing of products and services in different countries.
Discuss the impact of management myopia and organizational culture on the
globalization of a corporation?
What is “Economic exposure,” and how does it impact companies like Nestl, Daimler
AG, Royal Dutch Shell, and Astra Zeneca? Assess the impact of a weaker dollar on the
financial performance of these corporations.
The formation and enlargement of the European Union have wide everlasting impact on
marketing strategies and marketing mix. Discuss this giving example from member
nations.
The authors of one study noted that Nestl and other large companies that once had a
polycentric approach to consumer and trade sales promotions have redesigned their
efforts. Based on a study by Kashani and Quelch, identify factors that contribute to
more headquarters involvement in the sales promotions effort.
Giving examples to show the differences between ethnocentric and polycentric
orientation.