Question 1

Scenario: Rookie Chong
John Chong is a rookie in global business, but wants to sell his product, Zulu doll, in every corner of the world. He wants to examine every potential market but wants to keep the costs low. John has asked you to explain a few things about analyzing international markets.
-When screening a potential market, which of these would you ask John to do first?

Accepted Answer

Before assessing the national business environment or measuring market potential, it's important to identify the basic appeal of the product in the potential market. This will help John determine if there is a demand for the Zulu doll and whether it will be successful in that market. Once the basic appeal is identified, John can then move on to assessing the business environment and measuring potential. Therefore, Choice C (Identify basic appeal) would be the best choice for John to do first.

Question 2

The process of collecting and analyzing original data and applying the results to current research needs is called ________.

Accepted Answer

The process of collecting and analyzing original data is called primary research. This involves collecting data directly from consumers or other relevant individuals or companies. This data is then analyzed and applied to current research needs. Secondary survey research refers to analyzing data collected by other companies or organizations, while secondary market research involves analyzing existing data about a market or industry. Original focus study is not a commonly used term in the research field.

Question 3

Scenario: Rookie Chong
John Chong is a rookie in global business, but wants to sell his product, Zulu doll, in every corner of the world. He wants to examine every potential market but wants to keep the costs low. John has asked you to explain a few things about analyzing international markets.
-The income elasticity coefficient for Zulu doll is 1.2, which means the demand for Zulu doll will ________.

Accepted Answer

The income elasticity coefficient of 1.2 indicates that the demand for Zulu doll is income elastic, meaning it will increase by 1.2 percent for every 1.0 percent increase in income.

Question 4

Scenario: Markowitz Tools
Susan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her research to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation.
-Which of these methods may be appropriate in Country B for collecting information about people's attitudes, behaviors, and purchasing habits?

Accepted Answer

The answer of Scenario: Markowitz Tools
Susan Markowitz is analyzing potential...

Question 5

Scenario: Indy Bats, LLC
Indy Bats, LLC is looking for new markets. Matt Johnson has been appointed head of a special task force that has been given the responsibility of identifying new markets for the company's products. The company is especially interested in exploring emerging economies.
-To get a rough estimate of the overall size of an emerging market's economy, Matt should examine the nation's ________.

Accepted Answer

To estimate the overall size of an emerging market's economy, Matt should look at the nation's market size, which refers to the total value of the goods and services produced in the country. This will give him an idea of whether the market is large enough to support the company's products and services. Market intensity, market growth rate, and market consumption capacity are all important factors as well, but they do not provide a rough estimate of the overall size of the market's economy.

Question 6

Research in which people record in personal diaries information on their attitudes, behaviors, or purchasing habits is called a ________.

Accepted Answer

The research method described is called a consumer panel, which involves participants recording information in personal diaries over a period of time to gather information on their attitudes, behaviors, or purchasing habits. Surveys involve collecting data through questionnaires or interviews, focus groups involve gathering a small group of individuals to participate in a facilitated discussion, and secondary research involves analyzing existing data sources.

Question 7

Scenario: Indy Bats, LLC
Indy Bats, LLC is looking for new markets. Matt Johnson has been appointed head of a special task force that has been given the responsibility of identifying new markets for the company's products. The company is especially interested in exploring emerging economies.
-For several emerging markets, Matt has collected data on the number of telephones, TVs, and fax machines per capita, and population per retail outlet, which helps determine ________.

Accepted Answer

The data collected on the number of telephones, TVs, and fax machines per capita, and population per retail outlet helps to determine the commercial infrastructure of the emerging markets. This includes the availability and quality of physical and institutional facilities that support economic activity.

Question 8

An exhibition at which members of an industry showcase their latest products, study activities of rivals, and examine recent trends and opportunities is called a ________.

Accepted Answer

The description given matches that of a trade show, where members of an industry exhibit their latest products and examine recent trends and opportunities. A focus group is a small group of people who participate in a market research study by sharing their opinions and attitudes about a product, service, or concept. An environmental survey is a tool used in environmental research to collect data on the physical, chemical, and biological characteristics of an ecosystem. A trade mission is a trip made by government officials or business representatives to another country to promote trade and investment opportunities.

Question 9

An ongoing process of gathering, analyzing, and dispensing information for tactical or strategic purposes is called ________.

Accepted Answer

The process described in the question is most closely aligned with environmental scanning, which involves systematically gathering, analyzing, and disseminating information about external factors that could affect an organization's success. Secondary research, consumer paneling, and survey research are all important research methods, but they do not necessarily involve the ongoing, strategic approach described in the question.

Question 10

The process of obtaining information that already exists within the company or that can be obtained from outside sources is called ________.

Accepted Answer

The process of obtaining information that already exists within the company or that can be obtained from outside sources is called secondary market research. Logistics management is the process of planning, implementing, and controlling the flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. Primary market research is the process of collecting data directly from potential customers through surveys, interviews, or other methods. Invalid market research is not a commonly used term in the field.

Question 11

Scenario: Rookie Chong
John Chong is a rookie in global business, but wants to sell his product, Zulu doll, in every corner of the world. He wants to examine every potential market but wants to keep the costs low. John has asked you to explain a few things about analyzing international markets.
-In which step would you ask John to actually visit the country personally?

Accepted Answer

Visiting the country personally would be most relevant in the step of selecting the market. In the other steps, John can gather information through research and analysis without necessarily needing to visit the country. However, in order to properly assess and select a market, personal visits and direct observation would be necessary to gain a better understanding of the culture, consumer behavior, and competition.

Question 12

Secondary data is ________ because it has already been collected, analyzed, and summarized by another party.

Accepted Answer

Secondary data is relatively inexpensive because it does not require the time, effort, and resources needed for primary data collection. However, it is important to evaluate the quality and reliability of secondary data sources before using them for decision making.

Question 13

A(n) ________ is an international trip by government officials and businesspeople that is organized by agencies of national or provincial governments for the purpose of exploring international business opportunities.

Accepted Answer

A trade mission is a trip organized by government agencies for their officials and business representatives to explore international business opportunities. It involves meeting with potential business partners, attending trade shows and conferences, and participating in various networking events. The main aim of a trade mission is to promote exports and strengthen economic ties between countries.

Question 14

Scenario: Rookie Chong
John Chong is a rookie in global business, but wants to sell his product, Zulu doll, in every corner of the world. He wants to examine every potential market but wants to keep the costs low. John has asked you to explain a few things about analyzing international markets.
-If John is examining government regulations and bureaucracy in a market, he is in which stage of the screening process?

Accepted Answer

Examining government regulations and bureaucracy falls under the stage of assessing the national business environment in the market screening process. This involves analyzing factors such as political stability, economic conditions, legal systems, and cultural differences.

Question 15

Scenario: Markowitz Tools
Susan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her research to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation.
-Susan should have good success collecting information in Country C using ________.

Accepted Answer

The answer of Scenario: Markowitz Tools
Susan Markowitz is analyzing potential...

Question 16

Scenario: Rookie Chong
John Chong is a rookie in global business, but wants to sell his product, Zulu doll, in every corner of the world. He wants to examine every potential market but wants to keep the costs low. John has asked you to explain a few things about analyzing international markets.
-The income elasticity of Zulu doll is determined in which step of the screening process?

Accepted Answer

The income elasticity of the Zulu doll is determined in the step of measuring the market potential. This step involves estimating the size of the potential market and examining various aspects such as demand, competition, and economic conditions to determine the market's attractiveness. The income elasticity of demand is a measure of the responsiveness of the quantity demanded of a product to changes in consumers' income levels. So, measuring the market potential would involve analyzing how changes in income levels in different markets would impact the demand for the Zulu doll.

Question 17

Scenario: Markowitz Tools
Susan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her research to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation.
-If Susan wants to get information in the least expensive way, she should use ________.

Accepted Answer

Secondary market research involves analyzing existing data and information that has already been collected and published by sources such as research firms, industry associations, and government organizations. This is typically less expensive than primary market research, which involves collecting new data through surveys, interviews, or focus groups. Since Susan is looking to gather information in the least expensive way, using secondary market research would be the best choice.

Question 18

An unstructured but in-depth interview of a small group of individuals by a moderator to learn the group's attitude about a company or its products is called a ________.

Accepted Answer

A focus group is a qualitative research method in which a small group of individuals are questioned by a moderator to obtain detailed opinions and attitudes about a particular product or company. It is an unstructured interview that enables the researcher to collect in-depth information on a particular topic. A survey is a quantitative research method that uses a structured questionnaire to collect data from a large number of participants. A consumer panel is a market research tool that uses a group of people to provide feedback on products over a period of time. Secondary research involves the collection of existing data and information from available sources.

Question 19

Research in which an interviewer asks current or potential buyers to answer written or verbal questions to obtain facts, opinions, or attitudes is called a ________.

Accepted Answer

A survey involves asking current or potential buyers to answer questions in written or verbal form to gather information, opinions or attitudes. A focus group typically involves a small group of participants who are asked questions and engage in discussion, while a consumer panel is a group of consumers who provide feedback over an extended period of time. Secondary research methods involve analyzing existing data sources.

Question 20

Scenario: Markowitz Tools
Susan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her research to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation.
-Which of these methods would you advise for collecting information in Country A?

Accepted Answer

Verbal questioning would be the best method for collecting information in Country A with a low literacy rate, as written surveys and secondary market research may not be as effective due to the population's ability to read and write. Consumer panels may also not be feasible due to factors such as low income levels and lack of access to technology. Verbal questioning would allow for direct communication and understanding of the population's needs and purchasing habits.

Quiz 12: Analyzing International Opportunities