Which of the following components of the promotional mix is the most difficult to
globalize?
A.Personal selling
B.Direct marketing
C.Advertising
D.Public relations
The marketing issues raised by global products are similar, although much more
complex, compared to those raised by:
A.generic products.
B.local products.
C.regional products.
D.gray products.
The sale of products derived from, or related to, popular entertainment properties,
sports events, and/or personalities is at the core of the practice of:
A.cross-marketing.
B.point-of-purchase promotion.
C.in-store promotion.
D.event marketing.
Chase Corporation markets products in several foreign countries which have a history
of currency fluctuations. The firm should protect itself against losses from such risks
by:
A.employing price controls.
B.transfer pricing.
C.hedging.
D.price discrimination.
Resale price maintenance in the U.S. is generally illegal under which law?
A.Glass-Stegal Act
B.Smoot-Harley Act
C.Robinson-Patman Act
D.Clayton Act
The “four dragons” of the Asian growth markets include all of the following EXCEPT:
A.Korea.
B.Japan.
C.Taiwan.
D.Hong Kong.
For global marketing to work decisions are centralized, usually in the domestic country.
This fact means all of the following EXCEPT:
A.Subsidiaries in foreign countries have more autonomy.
B.Marketing effort is a top-down activity, basically.
C.Economic decisions that affect local employees are made elsewhere.
D.Others besides senior-level executives may be involved, too.
MCI Corporation is creating a new organization structure for its global marketing
efforts. The firm has created several new units composed of members from
headquarters and country subsidiaries, with the team leader typically coming from a
major lead country. These new organizational units are often called:
A.global teams.
B.international teams.
C.multinational teams.
D.multidomestic teams.
Which of the following countries boasts the largest potential market in the world?
A.India
B.China
C.Russia
D.Mexico
In the later stages of the PLC, customers tend:
A.to have established preferences and even loyalties to existing brands.
B.not to understand the attributes of products and form preferences.
C.not to understand product features, and blindly go by brands.
D.to overlook product features and choose at random.
Which of the following statements about global advertising is false?
A.It boosts brand image.
B.It increases global brand equity.
C.It is basically uniform in copy.
D.It is necessary that usage conditions be identical.
Standardization is the norm for the product element of the marketing mix in
globalization efforts. Which of the following is NOT an element of the marketing mix
that needs to be standardized as much as possible?
A.Prices
B.Promotion
C.Distribution
D.Market research
Firms have shifted away from a vertically integrated mode of entry PRIMARILY as a
result of:
A.limited availability of human resources.
B.high investment cost of FDI for a service entry.
C.high tariffs.
D.limited availability of service ideas.
Which of the following is an example of an international strategic alliance?
A.Coca-Cola allows local garment manufacturer to use its brand name by charging
royalty fees.
B.Toddlers Inc. allows local company to sell its unbranded product or component under
the local company’s brand name.
C.Taco Bell allows a Mexican firm to sell the Taco Bell products in the Mexico by
charging a royalty fee on sales.
D.The tie-up between Chrysler and Mitsubishi Motors to distribute cars in the United
States.
All of the following statements about strategic implications of global advertising are
true EXCEPT:
A.advertising expenditures create barriers to entry into some industries.
B.limitations on media availability limit the use of advertising as a competitive weapon
in some countries.
C.communication objectives are uniform for advertising media across countries.
D.the impact of advertising is measured by the hierarchy of effects concept.
Microsoft Corporation supports its global brands with heavy advertising that is seen and
heard in adjacent nations/markets not yet entered by the firm. Microsoft is hoping to
benefit from this:
A.piggybacking.
B.market-hopping.
C.demand spillover.
D.scope economies.
Johnson and Johnson Corporation is preparing to market a line of over-the-counter
medications and bandages in Asia. The firm will do well if it avoids packaging in which
of the following colors?
A.Red
B.Blue
C.White
D.Green
All of the following are advantages of direct, as opposed to indirect, exporting
EXCEPT
A.avoidance of overhead costs and administrative burdens associated with foreign
operations.
B.greater control over foreign operations.
C.the opportunity to learn how to operate abroad.
D.the ability to forge contacts with foreign distributors.
Some marketers do not find macrosegmentation useful because:
A.the research is poorly conducted, normally.
B.the indicators are too general to be predictive of buyer behavior.
C.the indicators are too narrow in scope for accuracy.
D.diffusion patterns are the same world-wide, anyway.
What action can firms take to deal with counterfeits?
A.Stop establishing manufacturing facilities in countries like China.
B.Reduce the price of their products to make them more competitive.
C.Apply various coding devices.
D.Use UPC labels.
Procter & Gamble Corporation frequently uses social appeals in advertising directed at
its foreign markets. The firm’s messages strongly suggest that the purchase of its brands
will bring approval and acceptance from the peer groups important to the consumer. P
& G’s appeal to social forces and reliance upon the consumer’s motivation to conform is
likely to be most successful in:
A.western cultures.
B.U.S.
C.low context cultures.
D.Korea.
Hofstede’s cultural dimension concept utilizes all of the following factors EXCEPT:
A.individualism versus collectivism.
B.power distance.
C.old versus young.
D.masculine versus feminine.
Amex Corporation is considering entry into Vietnam. Which of the following trade
groups may be helpful in that effort?
A.ANCOM
B.LAIA
C.ASEAN
D.MERCOSUR
Which of the following modes of entry allows the international marketer the LEAST
amount of control over operations?
A.Joint ventures
B.Wholly owned subsidiaries
C.Use of independent agents and distributors
D.Strategic alliances.
Which of the following modes of entry is typically MOST attractive for a newcomer to
international marketing?
A.Exporting
B.Joint ventures
C.Foreign direct investment
D.Franchising
The MOST common means of pricing exports is through the use of a _____ formula.
According to the text, generally, if clusters are useful, one would expect the new
product rate of penetration to be:
A.similar for countries across clusters.
B.similar for countries within a cluster.
C.different for countries within a cluster.
D.similar for some countries from different clusters.
Several countries in the Middle East have signed free trade agreements with:
A.South Asian countries.
B.EU Mediterranean countries.
C.African countries.
D.South American countries.
ANZCERTA pact applies to which areas of the world?
A.Japan
B.Africa and Southern Europe
C.Australia and New Zealand
D.Asia and Croatia
Recent economic data with respect to globalization supports all of the following,
EXCEPT:
A.increased wealth for most people.
B.people working harder and for longer hours.
C.decrease in wealth because of an increase in population.
D.employees working in multinational companies being paid higher wages.
Panther Colors, Inc. is trying to enter global markets, and is at stage one of the process.
It is clustering countries that are more homogenous as to general market characteristics.
Panther Colors is in the _____ stage of segmentation.
The major foreign market targets of Australia and New Zealand companies are found in
_____.
The emergence of transnational expertise, the growth of global communications, and
the drive toward the “lean” organization have led to the growth of _____ that have
become the new “ideal” form of organization.
Mercedes Corporation develops standardized advertising themes and visualizations for
its global market. The firm may change the voice-overs and/or reshoot the visuals to
include locals in their global _____.
_______________ can be described as international trade that ensures that producers in
poor nations get a fair share of the gains from trade. The flag bearer of this today is the
___________________.
The Whirlpool Corporation is anxious to provide a wealth of information about its
products, including direct comparisons against its major rivals, and offers the strongest
warranties and customer service department in its industry. The firm has explained its
policies by pointing to the fact that customers tend to experience perceived risk in
purchasing the types of products that it sells, and it is simply trying to help the
consumer reduce that tension. What is perceived risk? What factors tend to create
and/or increase it? Why does Whirlpool use these marketing tools to deal with the
problem of perceived risk?
Briefly explain the nature of competition and market segmentation in the Australia/New
Zealand markets.
The Polaroid Corporation is preparing to introduce its new holographic camera in
Japan. The product looks and operates like a traditional 35mm camera, but uses a
special film to produce lifelike, 3-D color prints. How are Japanese consumers likely to
evaluate this product? Is Japan a good choice for introducing this product?
Under a _____ system, a loaded container is simply put on a railcar and shipped by rail
for part of the way to avoid congested freeways.
Kraft Corporation, long frustrated in its attempts to enter the Japanese market, has
contracted with a Japanese firm which will allow it to use their distribution system for a
fee. Identify and evaluate this strategy from Kraft’s viewpoint.
Early in its global advertising program, the SK Corporation sought to clearly spell out
the strategic objectives of the effort. What objectives should the firm investigate?
In conducting a multi-attributed evaluation, the consumer may employ a _____ decision
rule to screen out alternatives on the basis of a series of gradually less important
features or a _____ decision rule to consider all features simultaneously.
Briefly distinguish between global logistics and global distribution. Why is this
difference important?
Localization is typically accomplished with many products by designing in _____ at the
outset.
Retailing is a dynamic area that is rapidly adopting the latest global technologies,
procedures, and practices. What opportunities and challenges await the global marketer
as a result of the globalization of retailing?
Why is transaction framework relevant to the international marketer? How does this
theory relate to FSAs, integration, and the choice between an internalization or
externalization strategy?