Question 1

In the study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" researchers identified four lifestyle groups. The group that represents mainstream European consumers was labeled as:
A)Successful Idealists.
B)Affluent Materialists.
C)Young Professionals.
D)Trendy Teens.
E)Disaffected Survivors.

Accepted Answer

E

Question 2

Global marketing authority, Theodore Levitt, has noted that many ethnic and regional foods-sushi, for example-are enjoying popularity in many countries of the world. This observation is known as the:
A)pluralization of consumption.
B)ethnicitization of consumption.
C)democratization of consumption.
D)sophistication of consumption.
E)domestication of consumption.

Accepted Answer

The pluralization of consumption refers to the phenomenon where a wide variety of cultural or ethnic products, including foods, become popular across different countries and cultures, beyond their places of origin. Theodore Levitt's observation about the global popularity of foods like sushi exemplifies this trend, where diverse food options become part of the consumption patterns in many countries, reflecting a broader range of choices and a blending of cultural preferences.

Question 3

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 that buy Porsches 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 the EU, the number of consumers aged 16 and under is rapidly approaching consumers aged 60.

Accepted Answer

The statement "Consumers that buy Porsches would like to be noticed" does not describe a measurable characteristic of a population, but rather a behavioral or attitudinal attribute of a subset of consumers. The other statements describe demographic characteristics based on age, location, and income.

Question 4

A. Coskun Samli had developed a useful approach to global market segmentation that compares and contrasts "conventional" versus "unconventional" wisdom. An example of unconventional wisdom can be identified with one of the following assumptions:
A)Since per capita annual income in India is about $1,420, all Indians have low income.
B)Consumers in Europe and Latin America are interested in World Cup soccer whereas Americans are not.
C)There is a presence of a higher-income, middle-class segment in India.
D)The potential customer base for McDonald's in India is greater than in any developed country.
E)There is no running water and electricity in India.

Accepted Answer

The assumption that all Indians have low income is a conventional wisdom and not an unconventional one. Option B is a conventional wisdom as well because soccer is not as popular in America as it is in Europe and Latin America. Option D is an unconventional wisdom because the assumption is that McDonald's can tap into a large customer base in India despite being a developed country. Option E is also a conventional wisdom since India is a developing country with running water and electricity in most urban and rural areas. Option C is the best answer as it challenges the conventional wisdom that there is only a low-income segment in India by suggesting the presence of a higher-income, middle-class segment.

Question 5

In 2013, the 10 most populous countries in the world accounted for just over ________ percent of the world income.
A)20
B)30
C)40
D)50
E)60

Accepted Answer

In 2013, the 10 most populous countries accounted for just over 60 percent of the world income, reflecting their significant economic contributions relative to their population sizes.

Question 6

The trend showing popularity of ethnic or regional foods such as sushi, falafel, or pizza worldwide is referred to as the ________, which provides an opportunity for marketers to pursue one or more segments on a global scale.
A)segmentation of markets
B)popularity of segmentation
C)promotion of products and services
D)identification of consumers
E)pluralization of consumption

Accepted Answer

The trend showing popularity of ethnic or regional foods worldwide is referred to as the pluralization of consumption. This trend creates an opportunity for marketers to pursue one or more segments on a global scale.

Question 7

The concentration of wealth in a handful of industrialized countries has significant implications for global marketers. After segmenting in terms of a single demographic variable-income- a company can reach the most affluent markets which does not include:
A)half of the EU nations
B)all of North America
C)Canada and Mexico
D)90 percent of the world's population
E)Japan.

Accepted Answer

Segmenting based on income will only allow companies to reach the most affluent markets, which means they will not be able to target the majority of the world's population that is not as wealthy. Therefore, option D is the correct choice. Options A, B, C, and E are incorrect because they all represent countries or regions that have affluent markets that can be targeted by global marketers.

Question 8

A global segment is referred to as "global elite," which includes:
A)people between the ages of 12 and 19.
B)affluent, well-traveled persons.
C)the graying population.
D)technology professionals.
E)persons having power.

Accepted Answer

The term "global elite" suggests a group of people who are affluent and well-traveled, indicating that they have financial resources and opportunities for international travel. The other options, such as teenagers (A) or technology professionals (D), do not necessarily fit this description. The graying population (C) refers to older individuals, which may or may not be affluent or well-traveled. While persons with power (E) can be part of the global elite, this option is not specific enough and may exclude individuals who are not in positions of political or social power.

Question 9

McDonald's operates in over 118 countries; however, 80% of its restaurants are located in nine countries which does not include the following country market:
A)Australia.
B)Brazil.
C)Germany.
D)India.
E)Japan.

Accepted Answer

According to the statement, McDonald's operates in over 118 countries, but 80% of its restaurants are in nine countries. The statement does not include India among these nine countries, so the correct answer is D. Australia, Brazil, Germany, and Japan are among the nine countries that have the highest number of McDonald's restaurants.

Question 10

Ericsson, IKEA, Saab, and other companies based in Sweden have looked beyond their borders for significant growth market because:
A)Sweden has high total annual income.
B)Sweden has low total annual income.
C)Sweden has a fairly small population.
D)Sweden is land locked geographically.
E)Sweden has relaxed export policies.

Accepted Answer

Sweden has a relatively small population, which limits the potential market size for companies based in Sweden. Therefore, these companies have looked beyond their borders to find significant growth opportunities.

Question 11

Based on 2013 projections, the top 10 nations ranked by per capita income does not include:
A)Switzerland.
B)Qatar.
C)Russia.
D)Norway.
E)Australia.

Accepted Answer

According to 2013 projections, the top 10 nations ranked by per capita income were: 
1. Qatar 
2. Luxembourg 
3. Singapore 
4. Brunei 
5. Kuwait 
6. Norway 
7. United Arab Emirates 
8. Switzerland 
9. Hong Kong 
10. United States

Therefore, Russia is not included in the top 10 nations ranked by per capita income.

Question 12

The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers. All of the following are variables that are commonly used except:
A)demographics.
B)polycentrics.
C)behavioral characteristics.
D)benefits sought.
E)psychographics.

Accepted Answer

"Polycentrics" is not a commonly used variable for global market segmentation. The other options provided, demographics, behavioral characteristics, benefits sought, and psychographics, are all commonly used variables for grouping customers in global market segmentation.

Question 13

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

Accepted Answer

The description of Porsche's "Top Guns" customers suggests a psychographic segmentation based on personality traits and attitudes towards power and status. This segmentation is not based on demographics (such as age, income, or gender) or occupation, and while behavioral segmentation could also play a role, the focus on attitude and mindset suggests a psychographic approach.

Question 14

The concentration of income in the high-income and large-population countries means that a company can be "global" by targeting buyers in:
A)just 50 countries.
B)just 20 countries.
C)just 10 or fewer countries.
D)just 30 countries.
E)none of the above

Accepted Answer

The concentration of income in high-income and large-population countries allows companies to target a relatively small number of countries, specifically 10 or fewer, and still be considered global. This is because these countries have a high concentration of purchasing power and a large consumer base. Therefore, companies can focus their resources on these select countries and still achieve global reach and success.

Question 15

A global segment is referred to as "global teens" which includes:
A)people with shared interest in fashions.
B)affluent, well-traveled persons.
C)movie stars.
D)technology professionals.
E)persons having power.

Accepted Answer

"Global teens" suggests that this segment refers specifically to teenagers around the world who share a common interest in fashion. None of the other choices are indicated to be relevant to this segment.

Question 16

SRI International developed Values and Lifestyles (VALS). Such a consumer profile would be helpful for which type of segmentation?
A)demographic
B)occupational
C)psychographic
D)behavioral
E)gender

Accepted Answer

VALS is a psychographic segmentation tool that categorizes consumers based on their values, attitudes, lifestyles, and personalities.

Question 17

The efforts of global companies to reach low-income consumers in emerging markets highlight the importance of skillful global market segmentation and targeting. Market segmentation represents:
A)targeting prospective customers.
B)finding customers who can respond to advertisement.
C)promoting products and services internationally.
D)identifying customers who can help in promoting products.
E)identifying customers based on common characteristics.

Accepted Answer

Market segmentation is the process of dividing a larger market into smaller groups of consumers who have similar needs, preferences, or characteristics. This helps companies identify and target specific groups of consumers with products and marketing messages that are more relevant and appealing to them. In this case, global companies are targeting low-income consumers in emerging markets, which is an example of using market segmentation to identify and reach a specific group of consumers based on their common characteristics. Therefore, the best answer is E.

Question 18

A global segment is referred to as "global teens" which includes:
A)people between the ages of 12 and 19.
B)affluent, well-traveled persons.
C)young, global travelers.
D)technology professionals.
E)persons having power.

Accepted Answer

"Global teens" specifically refers to people between the ages of 12 and 19, making option A the best choice. While the other options may also apply to some individuals within this group, they are not defining characteristics of the segment as a whole.

Question 19

Psychographic segmentation involves grouping people in terms of their:
A)combined household income.
B)age and income.
C)attitudes, values, and lifestyle.
D)psychological well being.
E)gender.

Accepted Answer

Psychographic segmentation involves grouping people based on their attitudes, values, and lifestyle. This type of segmentation focuses on the psychological aspects of consumer behavior rather than demographic information such as age or gender, or economic indicators such as income.

Question 20

When identifying global market segments, a fundamental guiding principle should be the need to determine:
A)shared demographic characteristics.
B)similar languages.
C)similar needs and buying behavior.
D)similar ethnic backgrounds.
E)similar geographic regions.

Accepted Answer

Identifying global market segments should be based on similar needs and buying behavior rather than shared demographic characteristics, languages, ethnic backgrounds, or geographic regions. This approach allows companies to develop targeted marketing strategies for each segment based on their specific needs and behaviors. By understanding the similarities and differences between various global market segments, companies can tailor their products and services to meet the unique demands of each segment and be more successful in their global marketing efforts.

Quiz 7: Segmentation, Targeting, and Positioning

In the study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" researchers identified four lifestyle groups. The group that represents mainstream European consumers was labeled as:

Global marketing authority, Theodore Levitt, has noted that many ethnic and regional foods-sushi, for example-are enjoying popularity in many countries of the world. This observation is known as the:

Demographic segmentation is based on measurable characteristics of populations which includes all of the following examples except:

A. Coskun Samli had developed a useful approach to global market segmentation that compares and contrasts "conventional" versus "unconventional" wisdom. An example of unconventional wisdom can be identified with one of the following assumptions:

In 2013, the 10 most populous countries in the world accounted for just over ________ percent of the world income.

The trend showing popularity of ethnic or regional foods such as sushi, falafel, or pizza worldwide is referred to as the ________, which provides an opportunity for marketers to pursue one or more segments on a global scale.

The concentration of wealth in a handful of industrialized countries has significant implications for global marketers. After segmenting in terms of a single demographic variable-income- a company can reach the most affluent markets which does not include:

A global segment is referred to as "global elite," which includes:

McDonald's operates in over 118 countries; however, 80% of its restaurants are located in nine countries which does not include the following country market:

Ericsson, IKEA, Saab, and other companies based in Sweden have looked beyond their borders for significant growth market because:

Based on 2013 projections, the top 10 nations ranked by per capita income does not include:

The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers. All of the following are variables that are commonly used except:

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?

The concentration of income in the high-income and large-population countries means that a company can be "global" by targeting buyers in:

A global segment is referred to as "global teens" which includes:

SRI International developed Values and Lifestyles (VALS) . Such a consumer profile would be helpful for which type of segmentation?

The efforts of global companies to reach low-income consumers in emerging markets highlight the importance of skillful global market segmentation and targeting. Market segmentation represents:

A global segment is referred to as "global teens" which includes:

Psychographic segmentation involves grouping people in terms of their:

When identifying global market segments, a fundamental guiding principle should be the need to determine: