Question 1

Which of the following statements about cultural values is true?

Accepted Answer

Cultural values can greatly impact consumer behavior and receptivity towards foreign products and services. For example, a culture that values collectivism and community may prioritize the opinions and preferences of their close social network when making purchasing decisions, while a culture that values individualism may prioritize personal preferences and desires. Therefore, understanding cultural values is important for companies looking to expand into new markets and appeal to diverse consumer groups.

Question 2

Chinese values are centered around ____,which stresses loyalty and interpersonal relationships.

Accepted Answer

Confucianism is a philosophy and belief system that places great emphasis on loyalty, respect for authority, and strong interpersonal relationships, which are core values in Chinese culture. Ethnocentrism, the country-of-origin effect, and xenocentrism do not specifically relate to Chinese cultural values. The halo effect is a cognitive bias and does not apply in this context.

Question 3

In France,cosmetics are used heavily by men as well as women and advertising directed to the male market is common.Consumers in the U.S.are heavier users of personal hygiene products such as deodorants and mouthwashes.These are examples of _____ differences that affect consumption patterns.

Accepted Answer

The differences mentioned in the sentence are related to the cultural factors that affect consumption patterns. The sentence talks about how cosmetics are used by both men and women in France due to cultural factors, whereas in the U.S., personal hygiene products are more popular, indicating a different cultural preference. Therefore, option C is the correct answer. Demographic, economic, regulatory, and generic differences are not mentioned in the given sentence.

Question 4

British Airways believes it is very difficult to differentiate itself from other major airlines on the basis of schedules,routes and price.However,the airline thinks it can be differentiated on the basis of service and has decided to focus much of its effort on image advertising using the theme "The World's Favorite Airline".Which of the following is correct regarding this type of advertising campaign?

Accepted Answer

Since the focus of the campaign is on service and image, which are easily understood by airline passengers in all countries, it could easily be adapted to a global campaign. Therefore, the campaign does not require a localized approach with different ads for each country, nor does it require a localized strategy since perceptions of service will not necessarily be different among airline passengers in every country. Moreover, while price is an important factor in the selection of international flights, British Airways believes that it cannot differentiate itself on the basis of price, and therefore has decided to focus on service. Finally, although service is intangible, it can still be communicated through advertising and branding efforts.

Question 5

To reach out to the youth market in the Middle East,Coca-Cola and Pepsi have:

Accepted Answer

As stated in the question, Coca-Cola and Pepsi are reaching out to the youth market in the Middle East. The most effective approach would be to use a variety of integrated marketing communication (IMC) tools that appeal to this target audience, such as sponsorships and branded entertainment. This approach would allow the brands to create a strong emotional connection with the youth and embed themselves in their lifestyles, which in turn could drive brand loyalty and increased consumption. Pressuring governments or emphasizing their association with America would likely have negative effects on the brands' image and reputation in the region. Targeting parents may have some influence on teenagers' consumption preferences, but ultimately the youth would still make their own decisions. Therefore, choice C is the best option.

Question 6

The only South American country where Coca-Cola is not the market leader is Peru,where local tastes prefer Inca Kola.Inca Kola is golden-yellow in color and tastes like banana-flavored bubble gum.Which environmental factor is most responsible for the fact Coca-Cola does not sell well in Peru?

Accepted Answer

Cultural factors such as local traditions, values, and tastes play a significant role in determining consumer preferences. In Peru, the preference for Inca Kola over Coca-Cola is primarily driven by cultural factors, as Inca Kola is seen as a national symbol and part of the country's cultural heritage. Therefore, cultural factors are most responsible for Coca-Cola's low market share in Peru.

Question 7

For which of the following will worldwide appeals NOT be appropriate?

Accepted Answer

Worldwide appeals are not appropriate for products steeped in cultural traditions and significance because these products are often deeply tied to specific cultural contexts and may not resonate with or be understood by a global audience.

Question 8

Diet Coke is known as Coca-Cola Light in Germany,France and many other countries because these countries have legal restrictions prohibiting the use of the word diet.This is an example of how _____ factors affect global marketing.

Accepted Answer

The legal restrictions in the countries prohibiting the use of the word "diet" demonstrate how political and legal factors affect global marketing.

Question 9

Production standardization leads to:

Accepted Answer

Production standardization leads to higher efficiency, lower waste and easier quality control. This results in a reduction in production costs which can be passed on to consumers as lower prices for products.

Question 10

_____ is a strategy of advertising in which certain banned products are indirectly advertised by labeling a non-banned product with a familiar logo so as to develop brand image and easy recall.

Accepted Answer

Surrogate advertising is a strategy where banned products are indirectly advertised by associating them with a non-banned product or service. This practice is commonly used to promote alcohol and tobacco products which are banned from direct advertising in many countries. Surrogate advertising often relies on branding and logo recognition to develop brand image and easy recall for the banned product.

Question 11

Since the European Union banned the use of food dyes in seafood,the salmon market has suffered.People mistakenly believe that salmon is naturally pink.Unfortunately,salmon is an unappetizing gray color.This is an example of how _____ factors can inadvertently hurt small businesses.

Accepted Answer

The ban on the use of food dyes in seafood was a political/legal decision made by the European Union. This decision inadvertently hurt small businesses in the salmon market.

Question 12

The UB Group named its airline business Kingfisher,after its popular beer brand of the same name.This is one of the most successful examples of ____.The extension of the Kingfisher brand to the airline gave a great push to the original category,beer,which cannot be advertised in many parts of the world.

Accepted Answer

The given scenario is an example of surrogate advertising, which refers to the promotion of a product or brand through the advertising of another product or brand. Here, the Kingfisher brand of beer cannot be advertised directly (due to certain regulations), so the company used its airline business (Kingfisher Airlines) to indirectly promote the beer brand.

Question 13

_____ refers to the tendency of individuals to view their own group or society as the center of the universe.

Accepted Answer

Ethnocentrism refers to the belief that one's own culture or society is superior to others, leading individuals to view their own group or society as the center of the universe.

Question 14

An American sporting goods manufacturer wanting to sell on the Belgian home shopping channel would find that different laws govern the people who live in the Flemish communities,the German communities and the French communities that exist in the nation.For instance,in the French-speaking community of Walloon in Belgium,the home shopping channel is legal.It is an illegal operation,however,in Flanders,the area of the country where Flemish is spoken.This is an example of how _____ factors affect global marketing.

Accepted Answer

This scenario highlights the impact of political and legal factors on global marketing. The different laws and regulations in each community in Belgium create barriers and limitations for the American sporting goods manufacturer trying to sell on the home shopping channel.

Question 15

The concept of ______ deals with all elements of a firm's marketing mix while the concept of _____ deals specifically with the communication aspect of marketing.

Accepted Answer

Global marketing involves all elements of a firm's marketing mix, including product, price, place, and promotion. Global advertising specifically focuses on the communication aspect of marketing.

Question 16

_____ was the marketing scholar who popularized the concept of global marketing.

Accepted Answer

Theodore Levitt is considered the marketing scholar who popularized the concept of global marketing with his article "The Globalization of Markets" published in the Harvard Business Review in 1983.

Question 17

A beverage company entered a new market in which it saw great potential.However,though its products matched those of local competitors in quality and price,sales were sluggish.The company realized that consumers believed that the local brands were better just because they were local.It had failed to account for the _____ of the consumers during the planning process.

Accepted Answer

The concept that the local brands are considered better because they are local refers to ethnocentrism, which is a belief that one's own culture or country is superior to others. The beverage company failed to account for this factor in its planning process, which resulted in sluggish sales despite the quality and pricing of its products.

Question 18

U.S.brands have become popular in many other European countries as well as in Asia.Marketers attribute the rising popularity of many U.S.-made products to:

Accepted Answer

The increased familiarity of foreign nationals with American culture, values, and lifestyles is the most likely reason for the rising popularity of many U.S.-made products. American culture, values, and lifestyles are widely portrayed in the media and entertainment industries, and therefore, people around the world are becoming more familiar with them. As a result, they may be more likely to embrace products that are reflective of these values and lifestyles.

Question 19

_____ is a marketing approach that assumes that the needs satisfied by a product or service and the way it is used are the same everywhere in the world,and therefore utilizes a common approach in all countries.

Accepted Answer

Global marketing assumes that there is a universal need for a product or service and a standardized approach can be used to meet those needs in all countries. It focuses on creating a consistent brand image and product offering across different markets, often with little to no adaptation to local preferences or cultural differences. This approach tends to be more efficient and cost-effective than localized marketing, but can also be riskier if cultural differences and other factors are not taken into consideration.

Question 20

In the U.S. ,promotions for Agile Sports products emphasize individualism and independence.In Japan,however,the company had to change its message to one that focused on team values and cooperation,due to the differing _____ in the two countries.

Accepted Answer

The differing message required in Japan suggests that the reason for the change was due to cultural values, which differ between the two countries. Demographics, religious beliefs, ethics, and lifestyles could play a role in these differences, but cultural values better encompasses the overall differences seen in the promotion of Agile Sports products.

Quiz 17: International Advertising and Promotion