When British entrepreneur Richard Branson opened the first Virgin Megastore in Japan,
he did so by establishing a joint venture with the Marui retailing chain. This represents
an inappropriate market-entry approach for a global retailer.
GATT (General Agreement on Tariffs and Trade) agreement had no enforcement power
since the losing party in a dispute was entitled to ignore the ruling.
A market penetration pricing strategy calls for setting price levels that are high enough
to quickly build market share.
In Hong Kong and Singapore, efficient postal services, highly educated populations,
wide use of credit cards, and high per capita income are attracting the attention of
catalog marketers.
“Hypercompetition” refers to companies that are successful and find sustainable
competitive advantages.
Although some food preferences remain deeply embedded in culture, plenty of
evidence suggests that global dietary preferences are converging.
To prevent the most value-conscious shoppers from defecting to Walmart, Tesco mined
its database to identify Clubcard users who buy the lowest-priced grocery items.
In companies where a polycentric management orientation prevails, host-country
nationals will be used in most selling situations with the exception of high-tech
products sold in developed countries.
Some companies choose not to produce in Mexico since a lack of checkpoints means
that cargo sits on trucks at bottleneck points such as Tijuana, a key hub for
manufacturing.
Culture includes conscious and unconscious values, ideas, attitudes, and symbols that
shape human behavior that are confined to a generation.
A firm that has the skills to be a “first mover” and arrive first in the market has achieved
a know-how advantage.
Trade secrets are confidential information or knowledge that has commercial value, is
in the public domain and for which steps have been taken to keep it secret.
The Sony Walkman is an example of combination or tiered branding, whereby a
corporate name is combined with the name of the product.
Denmark ranks highest in bribery as listed by the Corruption Perceptions Index (CPI)
by Transparency International in 2014.
During his years as chief executive of GE, Jack Welch discovered that many employees
resisted his ideas about the need to globalize the company.
Corporate social responsibility (CSR) refers to a company’s obligation to pursue goals
and policies that are in a company’s best interest.
Bandwidth determines the range of frequencies that can pass over a given transmission
channel.
An industry is considered to be global to the extent that its industry position in one
country is dependent upon the industry position in other countries.
The Middle East does not have a single societal type with a typical belief, behavior, and
tradition. Each capital and major city in the Middle East has a variety of social groups
that can be differentiated on the basis of religion, social class, education, and degree of
wealth.
Every “touch point” provides important data about consumers.
When a company conducts business across boundaries in countries with different
currencies, it is thrust into the turbulent world of exchange risk.
Overall, sales promotion tools, such as coupons, are used less frequently as consumer
products companies increase budget allocations for media advertising.
U.S. executives working on the importance of aesthetics learnt that in Japan “a book is
judged by its content.”
Germany’s Aldi and Lidl (“Where quality is cheaper!”) and France’s Leader Price (“Le
Prix La Qualit en Plus!”) are among the most popular discount retailers.
A supplier in China was accused of selling outdated meat to the fast-food giant
McDonald’s. Sales declined as a result.
A product is a good, service, or idea with both tangible and intangible attributes that
collectively create value for a buyer or user.
“Back translation” is a technique used to ensure that currency conversion is performed
correctly when financial statements of foreign subsidiaries are consolidated with
financial statements at headquarters.
The market opportunity in Africa is limited because the people are too poor, and it is too
risky to do business there.
Benetton’s striking print and outdoor advantage campaigns keyed to the “United Colors
of Benetton” generated both controversy and widespread media attention.
Competing ideologies in South America help explain why intraregional trade is yielding
more benefits.
In the U.S., the average Buick buyer is 61 years old, which stands in marked contrast to
Volvo, whose average buyer is only 50.
One of the advantages of targeting a market segment globally is that although the
segment in a single-country market might be small, even a narrow segment can be
served profitably if the segment exists in several countries.
Globalization is presenting significant marketing opportunities to sports organizations
such as the National Basketball Association and the National Football League.
In his 2010 State of the Union address, U.S. President Barack Obama had vowed to
double U.S. exports by 2015; doing so would require boosting exports 25 percent
annually.
On a per capita basis, German consumers are world-leader mail-order shoppers.
When Carrefour, Tesco, or Walmart set up shop in developing countries, they provide
customers with access to more products but at higher prices than were available
previously. This is an example of global retailing.
When consumers have difficulty in verbalizing their perceptions, and there are different
alternative brands of toothpaste, what is the best method of judging them in terms of
similarity?
A) cluster analysis
B) MDS
C) dependence techniques
D) factor loading
E) focus group
The success of Uniqlo’s retail stores can be attributed to it’s decision to:
A) remain in Japan.
B) locate in high population density areas.
C) locate in low population density areas.
D) manufacture most of their products in Japan.
E) become the world’s number one apparel retailer.
All of the following statements regarding Starbucks are trueexcept:
A) Starbucks offers health benefits to company employees.
B) Starbucks partners can take part in Starbucks’ stock option plan.
C) Starbucks has the opportunity to be a different global company.
D) Starbucks is a profitable company.
E) Shareholders consider Starbucks’ stock to be risky investment.
Excluding China, which does not allow Google to publish figures regarding its requests
for information, the government with the largest number of requests for information is:
A) Brazil.
B) India.
C) America.
D) Japan.
E) Taiwan.
A Canadian-built Caterpillar grader tractor imported into Chile would not be subject to
duty because:
A) Chile and Canada established an FTA.
B) tractors made in Canada are more durable.
C) tractors made in Canada do not require certification.
D) locally made tractors are more expensive in Chile.
Social couponing is one of the hottest sales promotion trends today. This refers to:
A) sampling.
B) Groupons.
C) sweepstakes.
D) freestanding inserts.
E) personal selling.
To the extent that a country sells more goods and services abroad than it buys, there will
be:
A) a greater demand for its currency.
B) a surplus production of goods and services.
C) a scarcity of goods and services within the country.
D) a need for revaluation of its currency.
E) time for fluctuating its currency.
A commodity raw material that comes from Africa, is refined in Asia, is shipped to
South America for finishing, and finally is transported to the Middle East and then sold
around the world mimics products marketed by:
A) Exxon.
B) McDonald’s.
C) Caterpillar.
D) IKEA.
E) Sears.
Tupperware is considered as an aspirational brand that represents “moving up” in life
in:
A) Romania.
B) Indonesia.
C) China.
D) Russia.
E) India.
A market researcher who uses multidimensional scaling (MDS) will:
A) attempt to estimate market size by analogy.
B) ask respondents to rate a particular product or brand in terms of multiple
characteristics or attributes.
C) ask respondents to evaluate product or brand pairs in terms of similarity.
D) attempt to determine the combination of product features that create the greatest
utility for consumers.
E) conduct a focus group.
McDonald’s restaurants in France do not look like McDonald’s elsewhere. This is an
example of:
A) think locally and act globally.
B) think globally and act locally.
C) diversification.
D) standardization
E) adaptation
In the study entitled “The Euroconsumer: Marketing Myth or Cultural Certainty?”
researchers identified four lifestyle groups. The group that represents mainstream
European consumers was labeled as:
A) Successful Idealists.
B) Affluent Materialists.
C) Young Professionals.
D) Trendy Teens.
E) Disaffected Survivors.
Caterpillar’s attention was focused elsewhere when Komatsu made its first entry into
the Eastern Europe and gained grounds. This is an example of:
A) collaborating.
B) loose bricks.
C) changing the rules.
D) layers of advantage.
E) differentiation.
Inventory management is:
A) determining what type of warehouse to manage.
B) establishing an inventory channel.
C) managing physical distribution of products.
D) purchasing products.
E) ensuring cost control.
Sony’s Blu-ray DVD format has gained widespread acceptance. Sony, Sharp,
Panasonic, and other Japanese manufacturers are all experiencing ________ sales of
traditional electronics products.
A) increasing
B) declining
C) improving
D) horizontal
E) vertical
A market ________ pricing strategy calls for setting price levels that are low enough to
quickly build market share.
A) gray
B) skimming
C) penetration
D) holding
E) cost-based
A number of multilateral trade agreements have accelerated the pace of global
integration which include:
A) NAFTA.
B) GATT.
C) WTO.
D) EU.
E) all of the above
Breaking all the conventional norms, Selfridge opened his department store just off
Oxford Street. The changes incorporated include all of the following except:
A) perfume and fragrance were moved to the front in order to avoid any horse dung
odors.
B) goods were put within reach of the customers.
C) goods were kept behind counters and were available by asking store clerks.
D) customers always came first.
E) early bird specials were offered.
A market research study of soft drink consumption and distribution in Hungary
commissioned by an American company indicated that soft drinks were available in
drugstores. However, Western-style drugstores do not exist in Hungary. This illustrates
an important issue in global marketing research, namely:
A) inflated data.
B) using convenience samples.
C) market estimation by analogy.
D) comparability of data.
E) using multiple dimensional scaling.
A type of advantage that a global company possesses by virtue of the fact that it has
experience in more than one country is referred to as:
A) Leverage.
B) Transferability.
C) Flexibility.
D) Capability.
E) Accountability.
An important new tool for inventory management is:
A) ODW.
B) RFID.
C) LEGO.
D) VUCA.
E) EPOS.
In Great Britain, the Wine and Spirit Association estimates that, on average, cars
returning from France are loaded with 80 bottles of wine. This is most likely due to
A) trademarks and copyrights violation.
B) cross-border smuggling.
C) bribes accepted by officers.
D) antitrust scrutiny.
E) high excise and VAT taxes.
The world’s newest common market includes all of the following countries except:
A) Kenya
B) Tanzania
C) Rwanda
D) Nigeria
E) Burundi
The top global merchandise exporter is:
A) China.
B) Germany.
C) the United States.
D) Japan.
E) Korea.
Dell’s factories can assemble a complete PC in three minutes. With a build-to-order
strategy at the heart of its business model, Dell’s sales staff maintains close ties with
customers. This approach represents which aspect of the Porter’s five forces model?
A) rivalry among competitors
B) bargaining power of buyers
C) threat of substitute products
D) threat of new entrants
E) bargaining power of suppliers
The Secretariat for Central American Integration is headquartered in:
A) El Salvador.
B) Honduras.
C) Guatemala City.
D) Nicaragua.
E) Costa Rica.
The agreements that allow McDonald’s franchisees around the globe to use McDonald’s
trademarked name and menu items represent, in essence, which form of market entry?
A) joint ventures
B) franchising
C) 100% ownership
D) exporting
E) acquisition
A broadband communication system is one that has sufficient capacity to carry
simultaneously which of the following?
A) multiple voice
B) data
C) video
D) music
E) all of the above
In Mexico City, only 55-60% of the population owns a telephone. The number drops to
less than 50% in Guadalajara and Monterey, and 35% or lower in other cities. This will
complicate the task of market researchers hoping to use a telephone survey to obtain a
________ of the Mexican population.
A) probability sample
B) convenience sample
C) secondary sample
D) focus group sample
E) quota sample
Which of the following consumer products companies experienced a major product
failure in Europe due to inadequate test marketing?
A) Procter & Gamble
B) Colgate
C) Kao
D) Unilever
E) Seagram
Konbini refers to convenience stores where consumers can pay for online purchases in
A) Indonesia.
B) Russia.
C) Croatia.
D) Japan
E) Bosnia.
In India, only about 10% of men who shave use Gillette razors. Worldwide, 50% of
male shavers use Gillette products. To achieve greater penetration in India, Gillette
rolled out a no-frills brand that costs 15 rupee —- about 34 cents. The Gillette Guard
has a lighter handle that is cheaper to produce. It also lacks the lubrication strip found in
Gillette’s more expensive razors, and replacement blades cost only 5 rupees (11 cents).
This use of data and process are described as:
A) demand pattern analysis.
B) income elastic analysis.
C) factor analysis.
D) market estimation by analogy.
E) multidimensional scaling.
If a company sells products in export markets at prices that are below fair market value
and that can harm producers in the export market that company may be accused of:
A) market skimming.
B) using offsets.
C) pursuing artificially high margins.
D) dumping.
E) gray marketing.
Which country has the biggest market for Tupperware?
A) Romania
B) Indonesia
C) China
D) Russia
E) India