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Former Disney chairman Michael Eisner and other company executives were blinded
by ethnocentrism. Avoiding the Self-Reference Criterion (SRC) requires a person to
suspend assumptions based on prior experience and success and be prepared to acquire
new knowledge about human behavior and motivation.
Colgate discovered that in Spanish colgate is a verb form that means "go hang
yourself."
Nike came under fire from critics who alleged poor working conditions in the factories
that make the company's athletic shoes.
Competitive advantage exists when there is a match between a firm's distinctive
competencies and the factors critical for success within its industry.
A company or activity that is somewhat removed from the final customer is said to
bedownstream in the value chain.
According to innovation expert Clayton Christensen, markets that don't exist can't be
analyzed since companies embrace agnostic marketing.
Terms like crony capitalism and kleptocracy refer to rampant corruption and bribery on
the part of Putin loyalists.
Analyzed in terms of Porter's five forces model, online music file sharing services
represent a threat to the music industry in the form of a substitute product.
Avon Products uses both acquisition and joint ventures to enter developing markets.
Dell's rise to a leading position in the global PC industry was based on Michael Dell's
decision to bypass conventional channels by selling direct and by building computers to
customers' specifications.
Under the Alternative Fines Act, fines imposed on individuals may not be paid by their
employer or principal.
A global company that uses market skimming as a pricing strategy is likely to invite
charges of "dumping" by competitors in host-country markets.
China and India take great pride in their manufacturing capabilities but, generally
speaking, consumer perception lags behind the reality.
One of the characteristics of core competence is that it is difficult for competitors to
imitate.
The digital revolution is a paradigm shift resulting from technological advances that
allow for the digitalization of analog sources of information, sounds, and images.
Toyota, Sony, Olympus, and Komatsu are some of the well-known Japanese companies
that use target costing, a process which is also known as "design to cost."
To win sales in important markets such as China, global companies can face demands
for offsets even when transactions do involve military procurement.
The objective of the EU member countries is to harmonize national laws and
regulations so that goods, services, people, and money can flow freely across national
boundaries.
To establish ownership of a written, recorded, performed, or filmed creative work, it is
necessary to apply for and be granted a patent.
Coca-Cola's contour bottle version helps consumers seek out the "real thing" is intended
to differentiate Coke from other soft drinks.
Today, almost 3 billion peoplenearly half of the world's populationare using the
Internet.
Today, "conbinis" are ubiquitous in Japan, with more than 43,000 store locations.
A company with a regiocentric orientation is likely to utilize third-country nationals for
its sales force in less developed countries.
In a Common Market there are no internal barriers to trade, and it allows for free
movement of factors of production such as labor and capital.
Acknowledging that consumer awareness of Alibaba is low in the United States,
executives are pursuing a "go-slow" approach to the U.S. market.
Rivalry among firms refers to all the actions taken by firms in the industry to improve
their position and gain advantage over each other.
Toys "R" Us unsuccessfully targets the Japanese toy market by bypassing layers of
distribution and adopting a warehouse style of selling that is similar to its U.S.
approach.
Although the ASEAN member countries are geographically close, they have historically
been divided in many respects.
When Kraft Foods launched Oreo brand cookies in China in 1996, they found that Oreo
was too sweet for the Chinese palate, and the price was too low. Oreo reformulated a
less-sweet chocolate-covered wafer and increased its price. This strategy is referred to
as product extension approach.
Although big data and big data analytics have long been the province of astronomers,
meteorologists, and other members of the scientific community, it is only recently that
big data collection and analysis has been used in business situations.
After successfully penetrating China's first-tier cities, Mary Kay expanded into second-
and third-tier locations.
"McDonaldization of culture," a term coined by Geert Hofstede, refers to the wide
spread of McDonald's restaurants in the world and its adverse impact on global culture.
A Customs Union represents the most fully developed form of preferential trade
agreement among nations.
Laura Ashley, The Body Shop, Victoria's Secret, Starbucks, the Disney Store and Gap
are examples of global retail operators that can be classified as specialty retailers since
they offer less variety than department stores.
"Factor conditions" refers to a country's endowment with resources which may have
been created or inherited.
IKEA, the home furnishings retailer based in Sweden, wraps itself in the Swedish
flagliterally, since inside and out, their stores are decorated in the national colors of blue
and yellow. This is an example of local consumer culture positioning.
In the cosmetics industry, Unilever pursues differentiated global marketing strategies by
targeting both ends of the perfume market.
Generally speaking, franchising is a market-entry strategy that is typically executed
with more localization than is licensing.
The value network for the personal computer industry is not different from the value
network for mainframe computers.
Nakumatt, is a supermarket chain in Kenya, where people go to show that they are
educated and prosperous and cognizant of larger affairs.
Which of the following can be referred to as a "buyer for export" or an "export
commission house" and operates on behalf of a buyer from a foreign country?
A) foreign purchasing agent
B) export broker
C) export merchant
D) export management company
E) freight forwarder
Coca-Cola billboards were recently put up near the Piazza San Marco in Venice, which
has numerous historical landmarks. The major reason for allowing the billboards at a
prominent historical site is:
A) Coke is a very popular drink in Italy.
B) to introduce an American product in an emerging market.
C) a severe lack of funds for historic renovation.
D) aesthetic reasons.
E) the prominence of global marketing.
Which of the following actions were approved both by the Antitrust Review in the EU
as well as in the United States?
A) acquisition of Honeywell (U.S.) by GE (U.S.)
B) joint venture between music businesses of EMI group (Great Britain) and Time
Warner (U.S.)
C) merger of Sony Music (Japan) and BMG (Germany)
D) merger of WorldCom (U.S.) and MCI (U.S.)
E) British Airways (U.K.) and American Airlines (U.S.)
The unauthorized distribution of trademarked goods to exploit price differentials in
world markets is known as:
A) market skimming.
B) black marketing.
C) gray marketing.
D) dumping.
E) licensing.
After much trial and error in creating sales forces, most companies today attempt to
establish a:
A) hybrid sales force composed of expatriates and in-country nationals.
B) sales force composed of a majority of expatriates.
C) hybrid sales force composed of expatriates and third country nationals.
D) sales force composed of third country nationals.
E) sales force consisting of all in-country nationals.
The president of a Mexican company recently remarked, "Business in Mexico is done
on a consensus basis, very genteel and sometimes slow by U.S. standards." A few
months later, the Mexican company and its U.S. joint venture partner parted company.
Judging by the president's remark, one important reason for the "divorce" was:
A) failure of one partner to live up to the terms of the contract.
B) cultural differences.
C) the cancellation of NAFTA.
D) the U.S. government's insistence on quick negotiations.
E) the language barrier.
The "balance of payments" is a record of all economic transactions between the
residents of a country and the rest of the world. It is divided into the current and capital
accounts. Current accounts include all of the following except:
A) balance on goods.
B) portfolio investments.
C) balance on services.
D) goods imports.
E) goods exports.
Smartphones that are equipped with a global positioning system can determine the
users' exact geographic position. This capability has created new opportunity for
marketers by using all of the following innovative means except:
A) text messages can be sent to smartphone users who are in the vicinity.
B) offering special deals to smartphone users who happen to be in the vicinity.
C) promoting mobile campaigns which will reach smartphone users.
D) obtaining demographic information about the smartphone users.
E) locate smartphone users for delivering products or services.
Porsche relies on currency hedging rather than price increases in order to:
A) boost pretax profits on sales of its automobiles.
B) balance the relative value of the dollar compared to the euro.
C) protect all earnings from foreign-exchange movements.
D) generate about 45% of its sales in the United States.
E) A, B, and C
"Organized retail" is a term used to describe:
A) modern chain stores.
B) grocery stores.
C) local retail chains.
D) supermarkets.
E) hypermarkets.
A marketer of breakfast cereals might send researchers to preselected households at 6
a.m. to watch families go about their morning routines.
Web sites can be classified by purpose as represented by the term:
A) matrix sites.
B) international sites.
C) geographic sites.
D) promotion sites.
E) regional sites.
________ are online retail operations that allow customers to purchase goods and
services.
A) Promotion sites
B) Matrix sites
C) Transfer sites
D) Transaction sites
E) Content sites
Which of the following is generally true about the marketing of high-touch products
such as fine china and crystal?
A) It relies equally on specialized information and image.
B) It relies less on image and more on specialized information.
C) It relies less on specialized information and more on image.
D) Neither image nor specialized information is relevant to the marketing of high-touch
products.
E) It relies partially on specialized information and partially on image.
The general characteristics shared by low-income countries do not include:
A) high birth rates.
B) low literacy rates.
C) concentration in Africa south of the Sahara.
D) heavy reliance on foreign aid.
E) lack of genuine market opportunities.
Porsche AG uses the label "Top Guns" to describe one segment of its customers,
namely those who care about power and control and who expect to be noticed. Such a
profile would be based on which type of segmentation?
A) demographic
B) occupational
C) psychographic
D) behavioral
E) gender
The efforts of global companies to reach low-income consumers in emerging markets
highlight the importance of skillful global market segmentation and targeting. Market
segmentation represents:
A) targeting prospective customers.
B) finding customers who can respond to advertisement.
C) promoting products and services internationally.
D) identifying customers who can help in promoting products.
E) identifying customers based on common characteristics.
Nike came under fire from critics who alleged poor working conditions in the factories
that make the company's athletic shoes. This is an example of the demand for:
A) labor unions.
B) equal opportunity employment.
C) higher wages.
D) standards for working conditions.
E) corporate social responsibility.
According to the hypercompetition model of competitive advantage, which of the
following allows the firm to create an entirely new product or market?
A) know-how advantage
B) timing advantage
C) outflanking
D) switching costs
E) countermoves
Each network has its own "metrics of value." For laptop computers this value would
include all of the following except:
A) small size.
B) low weight.
C) power consumption.
D) memory capacity.
E) rugged design.
The law of disproportionality suggests that ________ percent of the company's menu or
profits are accounted for the 20 percent of a firm's products or customers.
A) 50
B) 60
C) 70
D) 80
E) 90
Global marketing authority, Theodore Levitt, has noted that many ethnic and regional
foods'sushi, for example"are enjoying popularity in many countries of the world. This
observation is known as the:
A) pluralization of consumption.
B) ethnicitization of consumption.
C) democratization of consumption.
D) sophistication of consumption.
E) domestication of consumption.
Del Vecchio, the Italian entrepreneur's business principles include all but one of the
following:
A) "Made in Italy" is important.
B) cutting costs to keep production at home.
C) investing in automation.
D) hiring qualified personnel.
E) investing in Robots, not workers.
One of the major issues in trade relations between the high- and lower-income countries
is trade in:
A) automobiles.
B) computers.
C) textiles.
D) services.
E) shoes.
The possible arrangements of the responsibilities for handling exports include all of the
following except:
A) as a part-time activity performed by domestic employees.
B) through an export partner affiliated with the domestic marketing structure.
C) through an export department within an international division.
D) through an export department that is independent of the domestic marketing
structure.
E) through an export department of an embassy in a foreign country.
Some of the world's most memorable advertising campaigns have achieved success
because they originate from an idea that is so big that the campaign offers opportunities
for a seemingly unlimited number of new executions. Such a campaign is said to have:
A) "life."
B) "legs."
C) "love."
D) "fun."
E) "toes."
Which country was upgraded from "emerging" to "developed" status by the Financial
Times Stock Exchange (FTSE) in 2009?
A) United States
B) South Korea
C) Britain
D) Italy
E) Malaysia
In the 1950s, which company used transistor technology licensed from Bell Labs to
develop the transistor radio?
A) Nokia
B) Sony
C) Panasonic
D) RCA
E) Sanyo
An attribute which does not represent true global partnership is:
A) achieving world leadership by differentiation.
B) achieving a reciprocal relationship.
C) relationship is organized vertical lines.
D) continual transfer of resources.
E) retaining national identities.
Internet penetration is less than 10 percent in:
A) Qatar.
B) Bahrain.
C) Greenland.
D) Burundi.
E) the Netherlands.
As a starting point, firms that comply with Western cost-accounting principles typically
use the pricing method known as:
A) price bundling.
B) target costing.
C) cost-plus pricing.
D) export price costing.
E) full absorption cost.
As cultural differences become less relevant and disposable incomes become high, a
trend towards greater consumption of the following type of foods is predicted.
A) French artistic foods
B) American fast foods
C) Chinese retail foods
D) Indian spicy foods
E) Mexican spicy foods
Order processing, warehousing, and inventory management are all functions pertaining
to:
A) a polycentric orientation.
B) physical distribution and logistics.
C) sales promotion.
D) personal selling.
E) chain acquisition.
Which of the following best describes the legal basis for protection of trade secrets,
patents, and copyrights in the United States?
A) Trade secrets, patents, and copyrights are protected by federal statutes.
B) Trade secrets, patents, and copyrights are protected by state law.
C) Trade secrets are protected by state law, while patents and copyrights are protected
by federal statutes.
D) Trade secrets are protected by federal statutes, while patents and copyrights are
protected by state law.
E) Trade secrets, patents, and copyrights are not protected by any laws.
Microsoft's Windows 7 operating system was launched in 2009 with the user-centric
global advertising campaign keyed to the theme "I'm a PC, and Windows 7 was my
idea." This is an example of the dual-extension strategy.
