Global Marketing Practice Questions

e
1.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.

b
2.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.
c
3.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.
c
4.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.
b
5.In centrally planned socialism economic systems, the state allocates resources, whereas production resources are privately owned.

A) True
B) False

e
6.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.
b
7.The ultimate goal of a free trade agreement is to have standardized duties on goods that cross borders between the partners.
A) True
B) False
a
8.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.

A) True
B) False

c
9.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:
A) the popularity of Domino’s Pizza in Italy.
B) the preference for local hamburgers from a local chain, Jollibee’s, in the Philippines.
C) the growing number of McDonald’s restaurants globally.
D) the increased sales of soups and noodles in Thailand.
E) popularity of Chinese foods in Taiwan.
c
10.A vice-president of an American software company introduced himself to a group of Korean partners and added “you may just call me John.” Although this verbal cue shows the underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that:
A) John is not a very popular name in Korea.
B) it is difficult to translate John in Korean language.
C) customs, hierarchies, and class structure of Korean culture have to be respected.
D) Korean culture requires that first and last name be used in addressing guests.
E) it is not appropriate to disclose nicknames in business meetings.
b
11.Insisting on competitive bidding can cause complications in:
A) low-context cultures
B) high-context cultures.
C) low and high context cultures.
D) Korean cultures.
E) Japanese cultures.
e
12.According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia?
A) power distance
B) individualist/collectivist
C) feminine/masculine
D) uncertainty avoidance
E) long-term orientation
e
13.One of the basic elements of sociologist Everett Roger’s Diffusion theory is the concept of an “adoption process.” The first step in this adoption process is:
A) interest.
B) evaluation.
C) trial.
D) adoption.
E) awareness.
b
14.That floppy disks are being dumped in favor of USB mass storage devices can be attributed to which characteristics of innovation?
A) compatibility
B) relative advantage
C) divisibility
D) communicability
E) complexity
a
15.Which of the following is arranged starting with the highest level of environmental sensitivity and ending with the lowest level?
A) food→computers→integrated circuits
B) integrated circuits→food→computers
C) integrated circuits→computers→food
D) computers→food→integrated circuits
E) none of the above
a
16.Engineers at a company in a developing country study an American computer chip design, copy it, and produce identical chips that are then sold to local computer makers. What form of intellectual property has been wrongly appropriated?
A) patent
B) copyright
C) trademark
D) trade secrets
E) technological
b
17.In many parts of the world, sales of unauthorized videos of Hollywood movies cost the movie studios billions of dollars. When illegal copies of movies are made, what form of intellectual property has been wrongly appropriated?

A) patent
B) copyright
C) trademark
D) trade secrets
E) down loading

b
18.Harley-Davidson has applied for federal protection of an unusual form of intellectual property; the “soul-pleasing rumble” produced by its motorcycles. What type of protection is Harley-Davidson seeking?
A) copyright
B) trademark
C) license
D) patent
E) trade dress
b
19.The first step in formulating and conducting research is:
A) to define the problem.
B) information requirement.
C) choosing unit of analysis.
D) examine data availability.
E) research design.
e
20.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
c
21.Demographic segmentation is based on measurable characteristics of populations which includes all of the following examples except:
A) Asia is home to 500 million consumers aged 16 and younger.
B) India has more than half of the population younger than 25.
C) Consumers buying Porsche would like to be noticed.
D) The United States is home to 28.4 million foreign-born residents with combined income of $ 233 billion.
E) In EU, the number of consumers aged 16 and under is rapidly approaching consumers aged 60.
c
22.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
c
23.Three Mexican retailers Famso, Grupo Gigant SA, and Grupo Commercial Chedraui SA have opened stores in the United States. This is an indication of:
A) U.S. retailers were lagging behind in collecting demographic information.
B) the Mexican retailers provide better products than American stores.
C) the Hispanic American segments represent a great opportunity for marketers.
D) American businesses cannot compete with Mexican retailers.
E) the Mexican retailers would like to compete with businesses like Best Buy and Circuit City.
e
24.Managers must decide how well a company’s product fits the country market by asking the following questions except:
A) Will adaptation be required?
B) Will import restriction drive up the product price?
C) Is it advisable to source locally?
D) Will strong home currency have an adverse impact on product price?
E) Will it be possible to neglect home-country regulations?
c
25.The Swatch Group markets watches in all price ranges, from the Swatch brand at the low end to luxury brands such as Longines, Blancpain, and Breguet. Which target market strategy does this illustrate?
A) standardized global marketing
B) concentrated global marketing
C) differentiated global marketing
D) psychographic global marketing
E) none of the above
b
26.Ads by BMW advertise it as the “ultimate driving machine” which is described as positioning based on:
A) high touch.
B) use/user.
C) attribute/benefit.
D) competition.
E) quality/price.
e
27.Export marketing requires all of the following except:
A) an understanding of the target market environment.
B) the use of marketing research.
C) identification of market potential.
D) decisions concerning product design.
E) reaching retail customers.
d
28.The export and import process can entail red tape and bureaucratic delays. In an effort to facilitate exports, countries are designating certain areas as:
A) import control zones.
B) special tariff zones.
C) global business zones.
D) free trade zones.
E) export control zones.
d
29.For Starbucks and other companies whose business models include a service component, it is not recommended that they use one of the following methods for going global.
A) joint ventures
B) licensing
C) 100-percent ownership
D) exporting
E) franchising
b
30.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
c
31.The strategy to use joint ventures has several advantages which do not include:
A) risk sharing.
B) reduced financial risk.
C) reward sharing.
D) achieve synergy.
E) only way to enter a country or region.
d
32.Which of the following is not a characteristic of global strategic alliances?
A) Participants maintain independence outside the framework of alliance.
B) Participants share benefits as well as control.
C) Participants make ongoing contributions in technology, products, and other areas.
D) Participants focus on an individual country market.
E) Participants share benefits of the alliance.
c
4.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.