Question 1

Companies can increase prices if costs are low because of process efficiencies in manufacturing.

Accepted Answer

False

Question 2

McDonald's global marketing strategy is based primarily on local marketing mix elements.

Accepted Answer

False

Question 3

Ethnocentric companies that conduct business outside the home country adhere to the notion that the products that succeed in the home country will succeed anywhere.

Accepted Answer

Ethnocentric companies often believe that their home country's practices and products are superior and thus assume they will be successful in other markets without adaptation.

Question 4

From a global marketing perspective,the history of the Beatles' records is an interesting case study in both product adaptation and product extension.

Accepted Answer

The Beatles' records offer an interesting example of product adaptation and product extension in global marketing.

Question 5

The market development strategy involves seeking new customers by introducing existing products or services to a new market segment.

Accepted Answer

The statement is true. Market development strategy is about exploring untapped market segments and attracting new customers by introducing existing products or services. This can be achieved through market research, targeting a specific demographic, or expanding distribution channels in new locations.

Question 6

Unilever's Rexona deodorant brand had 30 different package designs and 48 different formulations.This is an example of ethnocentrism.

Accepted Answer

This is not an example of ethnocentrism. Ethnocentrism refers to a belief in the superiority of one's own culture or ethnicity over others, and has nothing to do with the number of package designs or formulations for a product.

Question 7

The perceived value equation can be represented as Value = Price/Benefits.

Accepted Answer

The perceived value equation is typically represented as Value = Benefits/Price, meaning value increases with higher benefits or lower price.

Question 8

The Yugo automobile achieved a modest level of U.S.sales in the 1980s despite a "don't buy" rating from a consumer magazine.

Accepted Answer

The Yugo automobile did achieve a modest level of U.S. sales in the 1980s despite a "don't buy" rating from a consumer magazine.

Question 9

If Nestlé decides not to market biscuits (cookies)in the United States due to competitive reasons,it is considered as a lack of strategic focus and missed opportunity.

Accepted Answer

Deciding not to enter a market can be a strategic decision based on competitive analysis, resource allocation, and alignment with company goals, rather than a lack of focus or missed opportunity.

Question 10

The term "polycentric" describes management's belief or assumption that each country in which a company does business is the same as the home country business.

Accepted Answer

The term "polycentric" describes management's belief or assumption that each country in which a company does business is different and should be managed differently from the home country business.

Question 11

Nike dropped their well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it by the slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.

Accepted Answer

Nike dropped their well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it by the slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.

Question 12

In an effort to "Americanize" the sound of the Beatles' recordings,a studio effect known as reverb was added to some tracks.

Accepted Answer

This is true. Reverb was added to some of the Beatles' recordings to create a more polished and commercial sound that would appeal to American audiences.

Question 13

A company with a geocentric orientation views the world as a potential market and strives to develop integrated global strategies.

Accepted Answer

A company with a geocentric orientation recognizes the importance of global markets and develops strategies that integrate different regions and countries to maximize its sales and profits. It does not focus on any specific region or country but instead views the entire world as a potential market.

Question 14

About 75 percent of the Coca-Cola Company's operating income and two-thirds of its operating revenue are generated outside North America.

Accepted Answer

This statement is true, as per Coca-Cola's financial reports.

Question 15

Starbucks opened an experimental store in Amsterdam that serves as a testing ground for new design concepts such as locally sourced and recycled building materials.

Accepted Answer

The statement correctly describes Starbucks' experimental store in Amsterdam.

Question 16

Tang drink powder became a $1 billion brand as regional managers in the Middle East added mango and pineapple flavors.

Accepted Answer

This statement is true. Tang drink powder became a $1 billion brand as regional managers in the Middle East added mango and pineapple flavors.

Question 17

A U.S.company that focuses on the countries included in the North American Free Trade Agreement (NAFTA)has a regiocentric orientation.

Accepted Answer

A regiocentric orientation means that a company focuses on one region or a few regions, such as NAFTA countries, and adapts its products and marketing strategies accordingly.

Question 18

Walmart's recent exit from the German market was due,in part,to the fact that German shoppers could find lower prices at stores known as "hard discounters."

Accepted Answer

Walmart struggled to compete with the low prices offered by German hard discounters, such as Aldi and Lidl, leading to their decision to exit the market.

Question 19

A European company that focuses its attention on Europe can be considered to have geocentric orientation.

Accepted Answer

A geocentric orientation means the company's focus is on the whole global market, not just Europe. A European company focusing on Europe only would have an ethnocentric orientation.

Question 20

Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically.This is an example of Market Penetration.

Accepted Answer

Market penetration refers to a company's efforts to increase its market share by attracting more customers or increasing the usage of its products/services among existing customers. In this case, Starbucks is using a smartphone app to enhance its loyalty program, which aims to increase customer retention and engagement, and potentially drive more sales.

Quiz 1: Introduction to Global Marketing

Companies can increase prices if costs are low because of process efficiencies in manufacturing.

McDonald's global marketing strategy is based primarily on local marketing mix elements.

Ethnocentric companies that conduct business outside the home country adhere to the notion that the products that succeed in the home country will succeed anywhere.

From a global marketing perspective,the history of the Beatles' records is an interesting case study in both product adaptation and product extension.

The market development strategy involves seeking new customers by introducing existing products or services to a new market segment.

Unilever's Rexona deodorant brand had 30 different package designs and 48 different formulations.This is an example of ethnocentrism.

The perceived value equation can be represented as Value = Price/Benefits.

The Yugo automobile achieved a modest level of U.S.sales in the 1980s despite a "don't buy" rating from a consumer magazine.

If Nestlé decides not to market biscuits (cookies)in the United States due to competitive reasons,it is considered as a lack of strategic focus and missed opportunity.

The term "polycentric" describes management's belief or assumption that each country in which a company does business is the same as the home country business.

Nike dropped their well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it by the slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.

In an effort to "Americanize" the sound of the Beatles' recordings,a studio effect known as reverb was added to some tracks.

A company with a geocentric orientation views the world as a potential market and strives to develop integrated global strategies.

About 75 percent of the Coca-Cola Company's operating income and two-thirds of its operating revenue are generated outside North America.

Starbucks opened an experimental store in Amsterdam that serves as a testing ground for new design concepts such as locally sourced and recycled building materials.

Tang drink powder became a $1 billion brand as regional managers in the Middle East added mango and pineapple flavors.

A U.S.company that focuses on the countries included in the North American Free Trade Agreement (NAFTA)has a regiocentric orientation.

Walmart's recent exit from the German market was due,in part,to the fact that German shoppers could find lower prices at stores known as "hard discounters."

A European company that focuses its attention on Europe can be considered to have geocentric orientation.

Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically.This is an example of Market Penetration.