Question 1

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:
A) best chance of becoming world leader.
B) advantage in adapting to the local culture.
C) lead in advertising and promotion exposure.
D) gain business experience.
E) substantial investments in marketing.

Accepted Answer

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

Question 2

Managers must decide how well a company's product fits the country market by asking all of 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?

Accepted Answer

It is never advisable to neglect home-country regulations. All other questions are valid and important for managers to consider when deciding how well a product fits a country market.

Question 3

An example of a trap that marketers can set for themselves while targeting a foreign market is to:
A) overstate the size and short-term attractiveness of individual country markets.
B) realize that short-term profit and revenue growth objectives may be hard to achieve.
C) restrain from being persistent to enter a country market.
D) ignore shareholders' or competitors' pressure not to "miss out" on a strategic opportunity.
E) enter a market based on time-consuming rigorous market analysis.

Accepted Answer

Overstating the size and short-term attractiveness of individual country markets can lead to unrealistic expectations and poor decision-making, ultimately causing the marketer to fall short of their goals. It is important to have a realistic understanding of the market and its potential before entering to avoid disappointment and financial losses.

Question 4

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?
A) regulatory hurdles
B) cultural barriers
C) lack of distribution system
D) time required to establish business
E) surplus demand

Accepted Answer

Surplus demand is not a factor that would negatively impact the feasibility of targeting a particular market segment. In fact, having a surplus demand would make it easier to target and serve that market segment. Regulatory hurdles, cultural barriers, lack of distribution system, and time required to establish a business are all factors that can negatively impact feasibility.

Question 5

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

Purchasing power parities allow for a more accurate comparison of economic output across countries, as they take into account differences in the cost of goods and services. Direct comparisons based on actual prices can also be used, although they are more difficult to calculate and may not be as accurate as PPPs.

Question 6

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 7

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

Accepted Answer

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

Question 8

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

Accepted Answer

The answer of Russia is included in the top 10...

Question 9

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 10

The basis for global marketing expert David Arnold's framework for screening intercountry comparisons includes:
A) demographic data.
B) "top-down" segmentation analysis.
C) "bottom-up" segmentation analysis.
D) income level.
E) population data.

Accepted Answer

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

Question 11

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

Accepted Answer

Sweden has a smaller population compared to other countries, which limits the growth opportunities for companies like IKEA and Ericsson, prompting them to look beyond their borders for expansion.

Question 12

Basic criteria that marketers should keep in mind while assessing opportunities in global markets include all of the following except:
A) current size of the market segment.
B) anticipated growth potential of the market.
C) compatibility with company's overall objectives.
D) competition in the market.
E) securing first-mover advantage.

Accepted Answer

The basic criteria that marketers should keep in mind while assessing opportunities in global markets include the current size of the market segment, anticipated growth potential of the market, compatibility with the company's overall objectives, and competition in the market. However, securing first-mover advantage is not a basic criterion but rather a strategy that companies may use to gain a competitive edge in the market.

Question 13

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

Accepted Answer

The answer of Despite having comparable per capita incomes, other...

Question 14

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

This statement is true.

Question 15

Global automakers are targeting the U.S. market with SUVs. All of the following SUVs are assembled or manufactured in the listed country except:
A) Porsche in Germany.
B) Honda in Japan.
C) Volkswagen in Slovakia.
D) Kia in Malaysia.
E) Mercedes-Benz in the United States.

Accepted Answer

Kia is not manufactured in Malaysia. Kia is a South Korean auto manufacturer.

Question 16

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, states that roughly 80% of effects come from 20% of causes. In business, this can apply to the idea that 80% of revenues or profits come from 20% of a company's products or customers.

Question 17

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 18

Which of the following criteria should marketers use when assessing opportunity in global target markets?
A) current size of the segment
B) anticipated growth potential
C) competition
D) compatibility with company's overall objectives
E) all of the above

Accepted Answer

All of the criteria listed (current size of the segment, anticipated growth potential, competition, and compatibility with company's overall objectives) are important factors that should be evaluated when assessing opportunity in global target markets. All of these factors help to determine the potential profitability and fit for the company's overall strategy.

Question 19

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 20

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

The answer of Sometimes it is preferable to market to...

Quiz 7: Segmentation, Targeting, and Positioning

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:

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

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

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?