(Test Bank) Global Marketing

Keegan,Green, 8

Business

Test Bank

8th Edition

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Test Bank for Global Marketing, The downloadable file consists of 503 pages, and the total size of the file is 1.01 MB. Purchase now only for highly discounted price.

Author(s): Keegan, Green

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Study Note Preview

Only use the multiple choice . Global Marketing, 8e (Keegan/Green) Chapter 1 Introduction to Global Marketing 1) The market development strategy involves seeking new customers by introducing existing products or services to a new market segment. Answer: TRUE Difficulty: Easy Chapter LO: 1 AACSB: Reflective thinking Course LO: Discuss the fundamental concepts of marketing 2) Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. This is an example of Market Penetration. Answer: TRUE Difficulty: Moderate Chapter LO: 1 AACSB: Reflective thinking Course LO: Discuss the fundamental concepts of marketing 3) The perceived value equation can be represented as Value = Price/Benefits. Answer: FALSE Difficulty: Easy Chapter LO: 2 AACSB: Analytical thinking Course LO: Discuss the fundamental concepts of marketing 4) Companies can increase prices if costs are low because of process efficiencies in manufacturing. Answer: FALSE Difficulty: Easy Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 5) If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered as a lack of strategic focus and missed opportunity. Answer: FALSE Difficulty: Moderate Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing6) The Yugo automobile achieved a modest level of U.S. sales in the 1980s despite a "don't buy" rating from a consumer magazine. Answer: TRUE Difficulty: Easy Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 7) Walmart's recent exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as "hard discounters." Answer: TRUE Difficulty: Moderate Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 8) Nike dropped their well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it by the slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are. Answer: TRUE Difficulty: Moderate Chapter LO: 2 AACSB: Analytical thinking Course LO: Identify and describe the processes and tools of strategic marketing 9) From a global marketing perspective, the history of the Beatles' records is an interesting case study in both product adaptation and product extension. Answer: TRUE Difficulty: Moderate Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 10) In an effort to "Americanize" the sound of the Beatles' recordings, a studio effect known as reverb was added to some tracks. Answer: TRUE Difficulty: Moderate Chapter LO: 3 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 11) McDonald's global marketing strategy is based primarily on local marketing mix elements. Answer: FALSE Difficulty: Moderate Chapter LO: 3 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 12) Starbucks opened an experimental store in Amsterdam that serves as a testing ground for new design concepts such as locally sourced and recycled building materials. Answer: TRUE Difficulty: Moderate Chapter LO: 3 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 13) Tang drink powder became a $1 billion brand as regional managers in the Middle East added mango and pineapple flavors. Answer: TRUE Difficulty: Easy Chapter LO: 3 AACSB: Reflective thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 14) About 75 percent of the Coca-Cola Company's operating income and two-thirds of its operating revenue are generated outside North America. Answer: TRUE Difficulty: Moderate Chapter LO: 4 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 15) Ethnocentric companies that conduct business outside the home country adhere to the notion that the products that succeed in the home country will succeed anywhere. Answer: TRUE Difficulty: Difficult Chapter LO: 5 AACSB: Application of knowledge Course LO: Identify and describe the processes and tools of strategic marketing 16) The term "polycentric" describes management's belief or assumption that each country in which a company does business is the same as the home country business. Answer: FALSE Difficulty: Moderate Chapter LO: 5 AACSB: Analytical thinking Course LO: Identify and describe the processes and tools of strategic marketing17) Unilever's Rexona deodorant brand had 30 different package designs and 48 different formulations. This is an example of ethnocentrism. Answer: FALSE Difficulty: Easy Chapter LO: 5 AACSB: Application of knowledge Course LO: Identify and describe the processes and tools of strategic marketing 18) A U.S. company that focuses on the countries included in the North American Free Trade Agreement (NAFTA) has a regiocentric orientation. Answer: TRUE Difficulty: Moderate Chapter LO: 5 AACSB: Analytical thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 19) A European company that focuses its attention on Europe can be considered to have geocentric orientation. Answer: FALSE Difficulty: Difficult Chapter LO: 5 AACSB: Reflective thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 20) A company with a geocentric orientation views the world as a potential market and strives to develop integrated global strategies. Answer: TRUE Difficulty: Difficult Chapter LO: 5 AACSB: Diverse and multicultural work environment Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 21) A true transnational company would be characterized as "stateless." Answer: TRUE Difficulty: Difficult Chapter LO: 6 AACSB: Application of knowledge Course LO: Describe the global marketing environment today and explain the options companies consider as they go global22) One way to assess a company's "degree of transnationality" is to compute the ratio between the sales outside the home country to total sales. Answer: TRUE Difficulty: Difficult Chapter LO: 6 AACSB: Application of knowledge Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 23) Economic growth has reduced resistance that might otherwise have developed in response to the entry of foreign firms into domestic economies. Answer: TRUE Difficulty: Difficult Chapter LO: 6 AACSB: Diverse and multicultural work environment Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 24) In the context of global marketing, leverage means some type of advantage that a company enjoys by virtue of the fact that it has experience in its home country. Answer: FALSE Difficulty: Difficult Chapter LO: 6 AACSB: Analytical thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 25) Evidence of the company's ongoing commitment to innovation can be seen in continuous new product introduction. Answer: TRUE Difficulty: Moderate Chapter LO: 6 AACSB: Analytical thinking Course LO: Discuss the fundamental concepts of marketing 26) Most global markets do not exist in nature. Answer: TRUE Difficulty: Moderate Chapter LO: 6 AACSB: Reflective thinking Course LO: Discuss the fundamental concepts of marketing27) A global company can leverage its experience in any market in the world. Answer: TRUE Difficulty: Moderate Chapter LO: 5 AACSB: Reflective thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 28) Nontariff barriers (NTBs) are monetary restrictions on cross-border trade. Answer: FALSE Difficulty: Moderate Chapter LO: 6 AACSB: Reflective thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 29) Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of focusing primarily on the U.S. market. Answer: TRUE Difficulty: Moderate Chapter LO: 6 AACSB: Analytical thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 30) The term globaphobia is used to describe an attitude of hostility towards trade agreements and global brands. Answer: TRUE Difficulty: Easy Chapter LO: 5 AACSB: Reflective thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 31) When you call United Airlines for a reservation on a toll-free number and get a response from an operator in Mumbai, this is an example of: A) anti-globalization. B) global marketplace. C) multilingual expression. D) discrimination. E) E-ticketing. Answer: B Difficulty: Moderate Chapter LO: 1 AACSB: Reflective thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 32) In global markets, Starbucks is a good example of simultaneously executing all of the growth strategies except:A) Market penetration. B) Market development. C) Product development. D) Market orientation. E) Diversification. Answer: D Difficulty: Moderate Chapter LO: 1 AACSB: Reflective thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 33) Slumdog Millionaire, a movie which received several awards and an Oscar in 2009, was filmed on a location in and around: A) London. B) San Francisco. C) Cancun. D) Mumbai. E) Moscow. Answer: D Difficulty: Easy Chapter LO: 1 AACSB: Reflective thinking Course LO: Discuss the fundamental concepts of marketing 34) Starbucks has launched several new ventures in global markets, including music CDs and movie production. This is an example of: A) Market Penetration. B) Market Development. C) Market Diversification. D) Product Development. E) Global Marketing. Answer: C Difficulty: Moderate Chapter LO: 1 AACSB: Analytical thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global35) A fundamental difference between regular marketing and global marketing is: A) the lack of marketing mix. B) the scope of activities. C) the lack of strategic planning. D) the focus on resources. E) the lack of communication. Answer: B Difficulty: Moderate Chapter LO: 1 AACSB: Application of knowledge Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 36) Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. The app displays a bar code that the barista can scan. This is an example of: A) Market Penetration. B) Market Development. C) Market Diversification. D) Product Development. E) Global Marketing. Answer: A Difficulty: Moderate Chapter LO: 1 AACSB: Information technology Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 37) Starbucks is entering India via an alliance with the Tata Group. Phase 1 calls for sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. This is an example of: A) Market Penetration. B) Market Development. C) Market Diversification. D) Product Development. E) Regular Marketing. Answer: B Difficulty: Moderate Chapter LO: 1 AACSB: Analytical thinking Course LO: Describe the global marketing environment today and explain the options companies consider as they go global38) The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as: A) Value = Price/Benefits. B) Value = Benefits/Price. C) Value = Benefits × Price. D) Value = Benefits - Price. E) Value = Benefits + Price. Answer: B Difficulty: Difficult Chapter LO: 1 AACSB: Analytical thinking Course LO: Discuss the fundamental concepts of marketing 39) The marketing mix is integral to the value equation which is represented by: A) Value = Price/Benefits. B) Value = Benefits/Price. C) Value = Benefits × Price. D) Value = Benefits - Price. E) Value = Benefits + Price. Answer: B Difficulty: Difficult Chapter LO: 1 AACSB: Analytical thinking Course LO: Discuss the fundamental concepts of marketing 40) Renault and its rivals are racing to offer middle-class consumers a new value proposition by selling cars for the equivalent of $10,000 or less. On the heels of Renault's success with Dacia Logan came the $2,500 Nano from India's Tata Motors. This illustrates that: A) consumers are looking for low price irrespective of quality. B) Renault is overcharging for their cars compared to their competitors. C) higher product development costs are a driving force behind globalization. D) market success depends on reaching a threshold of acceptable quality for consumers. E) cars are not very popular in emerging markets like India. Answer: D Difficulty: Difficult Chapter LO: 1 AACSB: Analytical thinking Course LO: Discuss the fundamental concepts of marketing41) Walmart's exit from the German market was due, in part, to the fact that German shoppers could find lower prices at stores known as: A) All-in-one stores. B) Dollar stores. C) Discount sores. D) Hard discounters. E) Fresh & Easy stores. Answer: D Difficulty: Moderate Chapter LO: 1 AACSB: Analytical thinking Course LO: Discuss the fundamental concepts of marketing 42) According to Michael Porter, a global industry is one in which ________ can be achieved by integrating and leveraging operations on a worldwide scale. A) marketing mix B) competitive advantage C) cross border infiltration D) ration analysis E) production capability Answer: B Difficulty: Moderate Chapter LO: 2 AACSB: Reflective thinking Course LO: Discuss the fundamental concepts of marketing 43) The former chairman of Nestlé recently told an interviewer: "We are food and beverages. We are not running bicycle shops. Even in food we are not in all fields. There are certain areas we do not touch. Also, we have no soft drinks because I have said we either buy Coca- Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically? A) customer value B) competitive advantage C) focus D) myopia E) policy of dealing only with Swiss businesses Answer: C Difficulty: Difficult Chapter LO: 2 AACSB: Reflective thinking Course LO: Discuss the fundamental concepts of marketing44) Nike recently adopted the slogan "Here I am" for its pan-European clothing advertising targeting women. The decision to drop the famous "Just do it" tag line was based on the research indicating that: A) the famous slogan did not have accurate translation in European languages. B) Europeans do not like tag lines that portray American thinking. C) college-age women in Europe are not as competitive about sports as men are. D) the old slogan conveys superiority of men over women. E) European women want to differentiate themselves from men. Answer: C Difficulty: Moderate Chapter LO: 2 AACSB: Diverse and multicultural work environment Course LO: Identify and describe the processes and tools of strategic marketing 45) The decision to enter one or more particular markets outside the home country depends on all of the mentioned factors except: A) company's resources. B) company's age. C) company's managerial mind-set. D) nature of opportunities. E) threats. Answer: B Difficulty: Easy Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 46) From the global marketing perspective, the customization of the Beatles' records is a good example of: A) product adaptation. B) market penetration. C) diversification. D) product development. E) marketing mix. Answer: A Difficulty: Easy Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing47) In an effort to "Americanize" the sound of the Beatles' recordings, a studio effect known as reverb was added to some tracks. This is an example of: A) product adaptation. B) market penetration. C) diversification. D) product development. E) marketing mix. Answer: A Difficulty: Easy Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 48) Two decades ago, professor Ted Levitt wrote a classic Harvard Business Review article titled "The Globalization of Markets." Which of the following statements about the author and the article is accurate? A) Levitt urged companies to adopt products on a country-by-country basis. B) There was universal agreement about his thesis that the world is becoming homogeneous. C) Levitt urged companies to develop standardized products that could be marketed worldwide with little adaptation. D) Levitt warned of the coming backlash against globalization. E) Levitt did not recommend developing standardized products. Answer: C Difficulty: Difficult Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 49) Coca-Cola achieved success in the Japanese market primarily by: A) standardization of marketing mix elements. B) global localization. C) vending machine operations. D) selecting market mix options. E) homogenization. Answer: B Difficulty: Moderate Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing50) A company that succeeds in global marketing: A) pursues a "one size fits all" strategy by creating identical products for homogeneous markets. B) customizes special products for each world country or region. C) creates both standardized and localized products. D) nurtures an ethnocentric management orientation. E) uses localized products only. Answer: C Difficulty: Moderate Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 51) An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans as well as the extent to which adaptation is desired. The way a company addresses this task is a reflection of the company's: A) market penetration. B) market diversification. C) global marketing strategy. D) product development. E) product standardization. Answer: C Difficulty: Difficult Chapter LO: 2 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing 52) One of the dimensions of global marketing strategy which pertains to marketing management is: A) concentration of market penetration. B) coordination of market diversification. C) integration of competitive moves. D) coordination of product development. E) product standardization. Answer: C Difficulty: Difficult Chapter LO: 3 AACSB: Reflective thinking Course LO: Identify and describe the processes and tools of strategic marketing53) Statements that illustrate the success of global marketing include all of the following except: A) the Coca-Cola Company supports its Coke brand by utilizing global and local marketing mix. B) Apple is synonymous with cutting-edge innovation and high-tech design. C) Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs. D) the backbone of Caterpillar's global success is its network of dealers. E) Germany's reputation for engineering and manufacturing provides a competitive advantage. Answer: C Difficulty: Moderate Chapter LO: 3 AACSB: Diverse and multicultural work environment Course LO: Identify and describe the processes and tools of strategic marketing 54) McDonald's serves McAloo Tikki Burger in India, McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, and McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of: A) a combination of global and local marketing mix elements. B) a reflection of failure of U.S. menu items in those countries. C) a deviation from successful marketing practices. D) a replacement of standard menu names with fancy names. E) a selection of menu items that can be sold eventually in U.S. markets. Answer: A Difficulty: Easy Chapter LO: 3 AACSB: Diverse and multicultural work environment Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 55) All of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix except: A) McDonald's standardizes some product elements and adapts others. B) McDonald's standardizes some place elements and adapts others. C) McDonald's standardizes some promotion elements and adapts others. D) McDonald's standardizes some price elements and adapts others. E) McDonald's standardizes all product elements. Answer: E Difficulty: Moderate Chapter LO: 3 AACSB: Diverse and multicultural work environment Course LO: Describe the global marketing environment today and explain the options companies consider as they go global56) Examples of effective global marketing by McDonald's include both standardized and localized marketing mix elements. Which of the following does not represent a localized element? A) It serves McAloo tikki potato burger in India. B) It uses the advertising slogan "I'm lovin' it." C) It operates themed dining cars on the Swiss national rail system. D) It has home delivery service in India. E) It has slang nicknames such as MakDo in Philippines and McDo in France. Answer: B Difficulty: Moderate Chapter LO: 3 AACSB: Diverse and multicultural work environment Course LO: Describe the global marketing environment today and explain the options companies consider as they go global 57) Uniqlo, a division of Japan's Fast Retail, operates about 850 stores in Japan and currently has six stores in the United States. Their plans call for a total of 200 U.S. stores by 2020. The fulfillment of their plan will depend on: A) industry conditions. B) sources of competitive advantage. C) the condition of the apparel market worldwide. D) the demand in Japan for U.S. style garments. E) all of the above Answer: E Difficulty: Moderate Chapter LO: 4 AACSB: Analytical thinking Course LO: Identify and describe the processes and tools of strategic marketing 58) Measured by national income, the United States represents the world's largest single market for goods and services. Roughly what percentage of world income is found outside the United States? A) 25% B) 50% C) 75% D) 95% E) 35% Answer: C Difficulty: Moderate Chapter LO: 4 AACSB: Analytical thinking Course LO: Identify and describe the processes and tools of strategic marketing