Question 1

When Walt Disney Company's executives were planning to build a theme park in France, they firmly believed that the success of McDonald's and Coke as well as their own success in Tokyo ensured the runaway success of their plans. Disney policies prohibit sale or consumption of alcohol inside their theme parks which they also implemented in France. This proved to be a failure since consuming wine with the midday meal is a long-established custom in France. This is most likely a classical example of:

Accepted Answer

The executives were victims of the self-reference criterion, which is the tendency to perceive and judge other cultures based on one's own cultural background and experiences. They assumed that their successful policies in Tokyo and the popularity of American products in France would ensure success, without taking into account the established custom of wine consumption in France.

Question 2

The Walt Disney Company's decision to build a theme park in France provides an excellent vehicle to understanding SRC (Self-Reference Criterion). All of the statements listed below portray this meaning except:

Accepted Answer

The answer of The Walt Disney Company's decision to build...

Question 3

Long-term values include persistence (perseverance), defined as a general tenacity in the pursuit of a goal.

Accepted Answer

Long-term values, such as persistence, are characterized by an ongoing commitment and perseverance in achieving a goal over an extended period of time.

Question 4

Former Disney chairman Michael Eisner and other company executives were blinded by ethnocentrism. Avoiding the Self-Reference Criterion (SRC)requires a person to suspend assumptions based on prior experience and success and be prepared to acquire new knowledge about human behavior and motivation.

Accepted Answer

The statement correctly describes the concept of Self-Reference Criterion (SRC) and how it can lead to ethnocentrism, and emphasizes the importance of avoiding it to acquire new knowledge about different cultures and behaviors.

Question 5

Which of the following best sums up the experience of Walt Disney Company executives when creating Disney's theme park in Paris?

Accepted Answer

The executives fell victim to the self-reference criterion, meaning they projected their own cultural assumptions onto the French market without fully understanding the unique cultural and historical factors at play. This ultimately led to challenges and criticisms from French stakeholders and visitors.

Question 6

To speed adoption of a new product, a marketing team should:

Accepted Answer

Ensuring that features and benefits can be easily communicated or demonstrated is crucial to speed up adoption of a new product. This helps potential customers better understand the product and its value proposition, which in turn leads to faster adoption.

Question 7

Which of the following can negatively influence the rate of diffusion of an innovation?

Accepted Answer

High complexity can negatively influence the rate of diffusion of an innovation because it makes it difficult for potential adopters to understand and use the innovation.

Question 8

Which of the following is true about the innovation diffusion process in Asia?

Accepted Answer

Each statement accurately reflects aspects of the innovation diffusion process in Asia. Japan's high-context culture and homogeneous population (A) influence communication and adoption patterns. The cultural value of risk avoidance (B) can impact the number of innovators. The pattern of adoption following innovators (C) and the rapid spread of successful products across Asian markets (D) are also observed phenomena in the region.

Question 9

The lesson that SRC (Self-Reference Criterion)teaches can be summarized as:

Accepted Answer

The lesson that SRC teaches is that an unbiased perception is a vital and critical skill in global marketing. This means that marketers should not let their own cultural background and biases influence their perception of the market needs of other cultures. Instead, they should try to approach the market with an open mind and understand the cultural differences that exist.

Question 10

The rate of adoption of the new Apple watch is slow, particularly in developing country markets with low rates of literacy. This can generally be attributed to which characteristics of innovation?

Accepted Answer

The slow rate of adoption in developing country markets with low rates of literacy suggests that the complexity of the innovation, i.e. the Apple watch, is a hindrance to its adoption. Factors such as low literacy rates can make it difficult for consumers to understand the features and functionalities of a complex innovation, thus slowing down its adoption.

Question 11

In the 1990s, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette (DCC)player. DCC allowed users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. This latter feature reflects which of the following characteristics of innovations?

Accepted Answer

Compatibility refers to the extent to which an innovation is consistent with existing values, past experiences, and the needs of potential adopters. In this case, the DCC player is compatible with the older, analog cassette format that many customers still have, which can make it easier for them to adopt the new digital format.

Question 12

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:

Accepted Answer

The first step in the adoption process is the individual becoming aware of the innovation or idea. They must first have knowledge of its existence before they can consider adopting it. Therefore, choice E, awareness, is the correct answer.

Question 13

A few years ago, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC did more than allow users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. However, die-hard audio buffs were the only ones to buy DCC and Philips ultimately discontinued the product. Which of the following statements based on adopter categories describes this?

Accepted Answer

The description suggests that only the "die-hard audio buffs," who would fall into the innovator category, were interested in purchasing the Digital Compact Cassette player. The lack of interest from other adopter categories ultimately led to the discontinuation of the product. Therefore, option B is the most accurate choice.

Question 14

Reference to one's own cultural values or self-reference criterion (SRC)can create a cultural myopia. It can consciously or unconsciously create considerable problems for marketing professionals. Using Walt Disney's decision to build a theme park in France, address the problem, following a systematic framework.

Accepted Answer

The answer of Reference to one's own cultural values or...

Question 15

The sales of the Apple watch increased when customers were informed about various functions of the watch. This change in sales reflects which of the following characteristics of innovation?

Accepted Answer

Communicability refers to how easily the benefits of an innovation can be communicated to potential customers, which in this case led to increased sales when customers were informed about the watch's functions.

Question 16

If a marketing manager plans to enter newly industrializing-countries (NICs)or other Asia markets with a product that has proved to be successful in the home market, the product's diffusion processes are likely to be:

Accepted Answer

NICs and other Asian markets have been known for their rapid economic development, which has encouraged consumerism. Therefore, the product's diffusion processes are likely to be much faster than in the home market, as consumers are more open to new products and less hesitant to adopt them. Additionally, the cultural similarity between some Asian countries and the home country of the product can also facilitate the diffusion process.

Question 17

Which of the following shows the correct order of the product adoption process?

Accepted Answer

The correct order of the product adoption process is awareness, interest, evaluation, trial, and adoption. Option D is the only option that presents this order correctly. Option A has the first two stages in reverse order, option B has the first two and last two stages switched, option C has the adoption stage before the trial stage, and option E has the adoption stage first, which is not correct.

Question 18

Adopter categories are classifications of individuals within a market on the basis of their innovativeness. When Apple introduced the Apple watch people waited in long lines before the doors opened. According to experts, those people can be categorized as:

Accepted Answer

The people waiting in long lines to be among the first to purchase the Apple Watch are considered "innovators," as they are eager to try new products and are willing to take risks.

Question 19

Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first. The problem was that Japanese women wash clothes in cold water-either tap water or leftover bath water-so they don't care about all-temperature washing (which is a big selling point in the United States). Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding. However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't produce many suds (Americans don't use as much fabric softener). P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads for Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of the following might have helped P&G avoid the initial problems with Cheer?

Accepted Answer

The answer of Procter & Gamble's introduction of All-Temperature Cheer...

Question 20

Together, innovators and early adopters make up about ________ of the potential market for a new product.

Accepted Answer

Innovators and early adopters make up about 16% of the potential market for a new product.

Quiz 4: Social and Cultural Environments

The Walt Disney Company's decision to build a theme park in France provides an excellent vehicle to understanding SRC (Self-Reference Criterion) . All of the statements listed below portray this meaning except: