Question 1

Basic criteria that marketers should keep in mind while assessing opportunities in global markets include all of the following except:

Accepted Answer

Securing first-mover advantage is not a basic criterion for assessing opportunities in global markets. The primary considerations include the current market size, growth potential, compatibility with company objectives, and competition levels. First-mover advantage can be beneficial but is not a fundamental criterion for market assessment.

Question 2

Pareto's Law suggests that 80% of a company's revenues or profits are accounted for by 20% of a firm's products or customers.

Accepted Answer

Pareto's Law, also known as the 80/20 rule, posits that for many events, roughly 80% of the effects come from 20% of the causes. In a business context, this often translates to 80% of a company's revenues or profits coming from 20% of its products or customers.

Question 3

Demographic changes can create opportunities for marketing innovation.Justify this statement using examples.

Accepted Answer

The answer of Demographic changes can create opportunities for marketing...

Question 4

Russia is included in the top 10 nations ranked by the GDP (2016).

Accepted Answer

Russia is not included in the top 10 nations ranked by the GDP (2016).

Question 5

An example of a trap that marketers can set for themselves while targeting a foreign market is to:

Accepted Answer

Marketers can overstate the size and short-term attractiveness of a foreign market, leading to unrealistic expectations and potential failure.

Question 6

Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market.The first-mover advantages include all of the following except:

Accepted Answer

The answer of Companies like Coca-Cola had the first-mover advantage...

Question 7

The basis for global marketing expert David Arnold's framework for screening intercountry comparisons includes:

Accepted Answer

The answer of The basis for global marketing expert David...

Question 8

When assessing potential country target markets,management should rely heavily on its network of contacts as a primary criterion for targeting.

Accepted Answer

While a network of contacts can be valuable for gaining insights and facilitating entry into a new market, relying heavily on it as a primary criterion for targeting may overlook critical factors such as market size, growth potential, competitive landscape, and regulatory environment. A comprehensive market analysis should be conducted to make informed decisions.

Question 9

According to the World Bank reports,Tanzania has the most mobile money accounts per 1,000 adults for any African country.

Accepted Answer

Tanzania has the most mobile money accounts per 1,000 adults for any African country, according to the World Bank reports.

Question 10

Despite having comparable per capita incomes,other industrialized countries are nevertheless quite small in terms of total annual income.

Accepted Answer

While industrialized countries may have high per capita incomes, their total annual income can be smaller compared to larger economies due to their smaller population size.

Question 11

Eighty percent of McDonald's restaurants are located globally in more than 20 countries.

Accepted Answer

More than 80% of McDonald's restaurants worldwide are owned and operated by independent local business owners, and McDonald's operates in over 100 countries.

Question 12

Ideally,GDP and other measures of national income converted to U.S.dollars should be calculated on the basis of purchasing power parities or through direct comparisons of actual prices for a given product.

Accepted Answer

Using purchasing power parities (PPPs) for converting GDP and other measures of national income into U.S. dollars allows for a more accurate comparison of economic output and living standards between countries by accounting for differences in price levels. Direct comparisons of actual prices can also provide insight into the relative cost of living and the purchasing power of different currencies.

Question 13

All three Gulf carriers have experienced barriers to growth.For example,Qatar's bookings dropped dramatically after four of its Middle Eastern neighbors initiated an air and sea blockade in June 2017.

Accepted Answer

The blockade by Saudi Arabia, the UAE, Bahrain, and Egypt in June 2017 significantly impacted Qatar Airways, leading to a dramatic drop in bookings and forcing the airline to suspend flights to 18 cities and reroute many of its flights over Iran, Turkey, and Oman, which increased operational costs and flight times.

Question 14

Sweden's smaller population explains why IKEA,and Ericsson have looked beyond their borders for significant growth opportunities.

Accepted Answer

Sweden has a relatively small population, which limits the domestic market size. Companies like IKEA and Ericsson have sought international markets to achieve significant growth beyond the constraints of their home market.

Question 15

Which of the following criteria should marketers use when assessing opportunity in global target markets?

Accepted Answer

All the options listed are important criteria for marketers to consider when assessing opportunity in global target markets. Current size of the segment helps understand the existing market potential, anticipated growth potential indicates future opportunities, competition provides insight into market saturation and challenges, and compatibility with company's overall objectives ensures strategic alignment.

Question 16

The feasibility of targeting a particular market segment can be negatively impacted by various factors.Which of the following is not one of those factors?

Accepted Answer

Surplus demand, unlike the other options, indicates a high demand exceeding supply, which is generally a positive factor for entering a market segment. It suggests an opportunity for businesses to meet unfulfilled needs rather than a negative impact on the feasibility of targeting a market segment.

Question 17

Managers must decide how well a company's product fits the country market by asking all of the following questions except:

Accepted Answer

Managers should never consider neglecting home-country regulations when deciding on a product's fit in a foreign market. Compliance with home-country regulations is essential for legal and ethical business operations.

Question 18

Sometimes it is preferable to market to a particular age group rather than a mind-set;in such an instance,psychographic studies can help marketers arrive at a deeper understanding of consumer behavior than is possible with traditional segmentation variables.

Accepted Answer

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Question 19

For behavior segmentation,marketers use the 80\20 rule when assessing the consumers' usage rate,which means that 20% of the company's revenues or profits are accounted for by 80% of the firm's products or customers.

Accepted Answer

The 80/20 rule, or Pareto Principle, in the context of behavior segmentation suggests that 80% of a company's revenues or profits are accounted for by 20% of its customers, not its products.

Question 20

Global automakers are targeting the U.S.market with SUVs.All of the following SUVs are assembled or manufactured in the listed country except:

Accepted Answer

Kia does not assemble or manufacture SUVs in Malaysia; its manufacturing hubs for SUVs are primarily located in South Korea, India, and the United States, among others.

Quiz 7: Segmentation,targeting,and Positioning