Deck 4: Social and Cultural Environments

Question 1

The cultural environment of global marketing has a big impact on FIFA (Federation internationale de Football Association).

Answer 1

True

Question 2

"Mecca Cola" and "Qibla Cola" are brand names given to Coca-Cola for effective marketing in Muslim countries.

Answer 2

False

Question 3

Food taboos, language, marriage, medicine, music, dancing, courtship, body adornment, religious rituals, and residence rules are all examples of "cultural universals."

Answer 3

True

Question 4

Gray color is associated with high quality and expensive in the United States, whereas it is considered inexpensive in China and Japan.

Question 5

Hindus do not eat beef, which means that McDonald's does not serve hamburgers in India.

Question 6

In the United States bridal gowns are white in color whereas in many countries they are red in color.White is considered as a color of mourning in many Asian countries.

Question 7

In Indonesia, home of the world's largest Muslim population, KFC uses Ramadan-themed outdoor advertising to encourage Indonesians to come to the restaurants at buka puasa, the end of each day's fast.

Question 8

In order to convey the sense of the country of origin it is advisable to use the same background music in broadcast commercials in all parts of the world.

Question 9

In China, authorities have the power to dictate which songs can be marketed and performed.

Question 10

A "value" is an organized pattern of knowledge that an individual holds to be true about the world.

Question 11

Culture includes both conscious and unconscious values, idea, attitudes, and symbols that shape human behavior and that are confined to one generation.

Question 12

Domino's Pizza had to pull out of Italy because Italians perceived its products to be "too American."

Question 13

Although "culture shock" is a normal human reaction to the new and unknown, successful global marketers strive to comprehend human experience from the global point of view.

Question 14

Aesthetic elements that are attractive, appealing, and in good taste are perceived as decent and accepted universally.

Question 15

FIFA, the Federation internationale de Football Association, is launching a new global fashion brand in order to build and maintain awareness as well as interest in soccer in the years between World Cup matches.

Question 16

Music represents a "transculture" that cannot be identified with any particular nation since rhythm is a universal aspect of music.

Question 17

Subway chains in India had to educate consumers about the benefits of the company's sandwiches since Indians normally did not consume buns.

Question 18

When marketers refer to "fast-food culture", or "credit-card culture" they are referring to a cosmopolitan culture which is comprised of various segments of the population which are interconnected by information technology.

Question 19

As a component of abstract (as opposed to physical)culture, many forms of music exhibit the same "think global, act local" paradox that is at the heart of global marketing.

Question 20

As cultural information and imagery flow freely across borders via satellite TV, the Internet, and similar communication channels, new global consumer cultures are emerging.

Question 21

According to Roger's diffusion theory, most customers will not purchase expensive products without the "hands-on" experience marketers call "trial."

Question 22

The phonetic pronunciation of the numerical sequence 8282 means "hurry up" in Korean.

Question 23

Although some food preferences remain deeply embedded in culture,plenty of evidence suggests that global dietary preferences are converging.

Question 24

A number of authors, journalists, and food critics have chronicled a disturbing trend in the land of haute cuisine the decline in France's status as a culinary superpower.

Question 25

In China, it is bad luck to give a book, an umbrella, or a clock as a gift.

Question 26

If a potential Latin American customer insists on giving you a tour of the architectural highlights of his city prior to discussing business, it s a clue that you are doing business in a high-context culture.

Question 27

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.

Question 28

The power distance dimension reflects the degree of trust among members of society.Thus the higher the power distance (PDI), the higher the level of trust.

Question 29

"McDonaldization of culture," a term coined by Geert Hofstede, refers to the wide spread of McDonald's restaurants in the world and its adverse impact on global culture.

Question 30

A sense of shame leads to sensitivity in social contacts within high-performing Asian countries such as Hong Kong, Taiwan, and Japan.

Question 31

Since there is no letter which sounds like a "P" in Arabic, "Popeye's" becomes "Bob eyes" and Pepsi sounds like "Bebsi." This is an example of difference due to phonology.

Question 32

While McDonald's continues to open new restaurants in France, the number of traditional bistros has declined by over 50%.

Question 33

Both the spoken and unspoken aspects of language are included in the broader linguistic field of semiotics, which is the study of signs and their meanings.

Question 34

The president of an American company was interested in dealing with a company in Saudi Arabia.The Saudi CEO made it clear at the outset that the credentials in the documents have less credibility than personal trust and confidence.This shows that the Saudi Arabian culture is a high-context culture.

Question 35

Competitive bidding is infrequent in a low-context culture.

Question 36

According to Hofstede's research on cultural values, Japan and Austria ranked highest in masculinity.

Question 37

Diesel founder Renzo Rosso has asserted that his brand's "Diesel" name is one of the few words which is pronounced the same in almost every language.To a linguist, this comment is best understood within the context of phonology.

Question 38

Despite the fact that Sony is headquartered in Japan, the company makes it clear to job applicants in any part of the world that it does not consider English to be a "foreign language."

Question 39

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

Question 40

Americans typically want to "go it alone." As a result, they may be outnumbered in a negotiation situation.

Question 41

Danes generally are not afraid of taking chances; they are comfortable doing things that are not carefully thought out or planned.Denmark's "flexicurity" policy combines free labor markets with adjustable welfare benefits.This is an example of the application of Hofstede's typology under the values which highlight:

A)Future Orientation.
B)Uncertainty Avoidance.
C)Gender Differentiation.
D)Power Distance.
E)Individualism/Collectivism.

Question 42

European consumers have faced a number of food-related issues, including an outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease.As a result, many are skeptical about GMOs (genetically-modified organisms)and the benefits of eating food products that incorporate genetically-engineered ingredients.As one French citizen noted recently, "We have a very risk-averse society that has been completely traumatized by food scares." Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret this remark to indicate that France ranks relatively high in:

A)Power Distance.
B)Short-term Orientation.
C)Masculinity.
D)Uncertainty Avoidance.
E)Individualism.

Question 43

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:

A)Disney executives believed there is virtually unlimited demand for American cultural exports.
B)French are sensitive about American cultural imperialism.
C)Consuming wine with the midday meal is a long-established custom which was not realized by Disney executives.
D)Disney executives were blinded by their prior success and ethnocentrism.
E)The SRC can be a powerful negative force in global business.

Question 44

A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows the underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that:

A)John is not a very popular name in Korea.
B)it is difficult to translate John in Korean language.
C)customs, hierarchies, and class structure of Korean culture have to be respected.
D)Korean culture requires that first and last name be used in addressing guests.
E)it is not appropriate to disclose nicknames in business meetings.

Question 45

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 U.S.).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?

A)Maslow's hierarchy
B)high vs.low context culture
C)diffusion of innovation
D)self-reference criterion
E)polycentric orientation

Question 46

A characteristic of a low-context culture which is prevalent in United States, Switzerland, and Germany is:

A)less information is contained in verbal communication.
B)major emphasis on a person's values and position in society.
C)messages are explicit and specific.
D)a person's word is his or her bond.
E)negotiations are long and protracted.

Question 47

Cultural influences are also quite apparent in food preparation and consumption patterns and habits.Domino's Pizza, the world's largest pizza-delivery company, pulled out of Italy because:

A)tomato sauce was too bold and competed with Italian products.
B)people did not like to eat at home.
C)Italians perceived its products to be "too American."
D)Italians wanted more toppings on thick crust.
E)Italians did not like anyone else to use the name pizza.

Question 48

The cultural environment of a country is best defined by which characteristics?

A)standard of living and stage of economic development
B)production process and standards of measurement
C)attitudes, beliefs, and values
D)degree of nationalism and economic community membership
E)fast food culture and slow food culture

Question 49

There is nothing inherently "good" or "bad" about any color of the spectrum and all associations and perceptions regarding color arise from culture.Which of the following statements is not true:

A)Red is a popular color in most parts of the world.
B)Red color is associated with "active," "vibrant," and "emotional."
C)Red color is preferred in many countries since it is the color of blood.
D)Red color is highly preferred in some African countries.
E)Red color is tied to the traditions of viticulture and winemaking.

Question 50

Two countries that outrank the others in uncertainty avoidance are:

A)Austria and Belgium.
B)Japan and Hong Kong.
C)Greece and Portugal.
D)Denmark and Finland.
E)Ireland and Italy.

Question 51

According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia?

A)power distance
B)individualist/collectivist
C)feminine/masculine
D)uncertainty avoidance
E)long-term orientation

Question 52

An intern from the United Kingdom was working in an American software company during summers.One day her boss gave her a memo asking her to post it, with the intention of having it put on the bulletin board.To her boss's surprise the letter was mailed by the intern since the word "post" means "mail" in British English.In communication terms this error can be attributed due to:

A)syntax.
B)phonology.
C)morphology.
D)semantics.
E)semiotics.

Question 53

Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries.Which of the following describes your friend?

A)"vegetarianism" represents a value, "dislike McDonald's" represents an attitude
B)"vegetarianism" represents an attitude, "dislike McDonald's" represents a value
C)"vegetarianism" and "dislike McDonald's" both represent an attitude
D)"vegetarianism" represents a value, "dislike McDonald's" represents a belief
E)"vegetarianism" and "dislike McDonald's" both represent values

Question 54

When the Coca-Cola Company was developing its new Dasani bottled water brand, linguists helped guide the naming process.For example, the recurring "a" was chosen because it has a soothing sound.In linguistics, issues pertaining to letters and sounds are matter of:

A)syntax.
B)semantics.
C)phonology.
D)semiotics.
E)semantics.

Question 55

The power distance dimension reflects the degree of trust among members of society.Thus, the higher the power distance (PDI)the:

A)greater is uncertainty avoidance.
B)lower is the level of trust.
C)higher is tolerance for ambiguity.
D)greater is male dominance.
E)lower is the harmony.

Question 56

American Nancy McKinstry recently became the new CEO at Dutch publisher Wolters Kluwer.As Ms.McKinstry noted, she had to drop the word "aggressive" in describing her strategic plan to company managers.She said, "I learned that the word has a negative connotation to a lot of Europeans.I was coming across too hard, too much of a results-driven American to the people.I needed to get on board so I started describing our strategy as 'decisive' and that made all the difference." Which of the following grammar topics is the critical element in this passage?

A)syntax
B)semantics
C)morphology
D)phonology
E)semiotics

Question 57

While some food preferences remain deeply embedded in culture, there is plenty of evidence that global dietary preferences are converging.Examples of such a change can be predicted from:

A)the popularity of Domino's Pizza in Italy.
B)the preference for local hamburgers from a local chain, Jollibee's, in Philippines.
C)the growing number of McDonald's restaurants globally.
D)the increased sales of soups and noodles in Thailand.
E)popularity of Chinese foods in Taiwan.

Question 58

In high-context cultures, time is:

A)monochronic.
B)polychronic.
C)linear.
D)short.
E)common.

Question 59

Giving business cards with the left hand in Malaysia, showing soles of shoes to a host in Saudi Arabia, and winking one eye in India are all considered impolite interpersonal communication due to the fact that:

A)in Middle Eastern countries it is customary to take off shoes at the door.
B)it is difficult to notice when one winks eyes since there are many people in India.
C)people pick up nonverbal cues and understand intuitively without being told.
D)these actions distract people from hearing at meetings.
E)people are not aware of Western ways of doing business.

Question 60

Which is not considered as a long-term value?

A)persistence
B)sense of shame
C)thrift
D)ordering relationships
E)search for truth

Question 61

Comparing and contrasting the diffusion of innovations in Western countries and in Asia, one can say that:

A)the process occurs in an identical manner in both regions.
B)in Asia, the adoption process begins more slowly but ramps up more rapidly than it does in Western countries.
C)in Western countries, the adoption process begins more slowly but ramps up more rapidly than it does in Asia.
D)the diffusion of innovation framework is applicable in the West but not in Asia.
E)the diffusion of innovation framework is applicable in Asia but not in the West.

Question 62

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 success in Tokyo Disneyland ensures the runaway success of their plans.Disney policies prohibit sale or consumption of alcohol inside the 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 a classical example of:

A)the "think global, act local" principle.
B)being victim to the self-reference criterion.
C)a geocentric management orientation.
D)miscalculation of the rate of diffusion of innovations in Europe.
E)an unbiased perception of existing culture in Europe.

Question 63

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?

A)early adopters bought, but innovators didn't
B)innovators bought, but early adopters didn't
C)innovators bought, and everyone else was a laggard
D)early majority bought, but late majority didn't
E)DCC was a laggard

Question 64

Adopter categories are classifications of individuals within a market on the basis of their innovativeness.Recently Apple introduced the iPhone for which people waited in long lines before the doors opened.According to experts these 2.5% of people who bought the iPhone are categorized as:

A)early adopters.
B)innovators.
C)early majority.
D)late majority.
E)laggards.

Question 65

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

A)a person's perception of market needs is framed by others cultural experience.
B)perceptual blockage and distortion about cultures are hard to reduce.
C)unbiased perception is a vital and critical skill in global marketing.
D)unconscious reference to one's cultural values is critical in global marketing.
E)prior success and ethnocentrism can override the SRC.

Question 66

Disney is hoping to appeal to India's family-oriented middle-class consumers; the core themes include "believe in yourself, express yourself, and celebrate your family." Disney is also using cable television for its program in a number of local languages and dialects.This is an example of:

A)capitalizing on astrological beliefs of Indians.
B)a first step in introducing U.S.programs in emerging markets.
C)attracting families to theme parks in India.
D)emphasizing the role of families in emerging markets.
E)adapting to cultural differences and going native in emerging markets.

Question 67

Which of the following is arranged starting with the highest level of environmental sensitivity and ending with the lowest level?

A)food→computers→integrated circuits
B)integrated circuits→food→computers
C)integrated circuits→computers→food
D)computers→food→integrated circuits
E)none of the above

Question 68

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

A)They were guided by the "think global, act local" principle.
B)They fell victim to the self-reference criterion.
C)They exhibited a geocentric management orientation.
D)They miscalculated the rate of diffusion of innovations in Europe.
E)They had an unbiased perception of existing culture in Europe.

Question 69

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

A)Japan has a high-context culture with a relatively homogeneous population.
B)Because risk avoidance is a cultural value, there are fewer innovators in Asia than in the United States.
C)Once innovators in Asia have tried a product, early adopters and the early majority quickly follow suit.
D)After a new product has achieved success in one Asian market, it is likely to be adopted in other Asian markets at an even faster rate.
E)all of the above are true

Question 70

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

A)evaluation→trial→awareness→interest→adoption
B)trial→interest→evaluation→awareness→adoption
C)interest→awareness→adoption→trial→evaluation
D)awareness→interest→evaluation→trial→adoption
E)adoption→evaluation→trial→interest→awareness

Question 71

That floppy disks are being dumped in favor of USB mass storage devices can be attributed to which characteristics of innovation?

A)compatibility
B)relative advantage
C)divisibility
D)communicability
E)complexity

Question 72

If a marketing manager plans to enter the 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:

A)negligible since consumers will take time to assess the relative advantage.
B)much slower than in the home market.
C)much faster than in the home market.
D)similar to that in the home market.
E)less compatible in the Asian market.

Question 73

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:

A)interest.
B)evaluation.
C)trial.
D)adoption.
E)awareness.

Question 74

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

A)substantial relative advantage
B)high compatibility
C)high complexity
D)divisibility
E)high level of communicability

Question 75

The ________ the level of environmental sensitivity for a given product, the ________ the need for managers to address country-specific economic, regulatory, technological, social and cultural environmental conditions.

A)greater; greater
B)lower; greater
C)greater; lower
D)lower; lower
E)stronger; greater

Question 76

In the 1990s, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette 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?

A)relative advantage
B)communicability
C)compatibility
D)complexity
E)divisibility

Question 77

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

A)ensure that features and benefits can be communicated or demonstrated.
B)design the maximum amount of complexity into the product.
C)discourage limited use on a "trial" basis.
D)attempt to make a clean break with existing customer values.
E)rely heavily on word-of-mouth marketing.

Question 78

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

A)16.0%
B)26.0%
C)34.0%
D)46.0%
E)13.5%

Question 79

Despite the fact that the American team advanced to the semi-finals in South Africa, the game is much more popular in other parts of the world.There is an effort to make soccer popular in the United States, and many fashion brands are interesting in marketing their products which pertain to soccer and other sports.Considering this aspect which of the following statements is incorrect:

A)In the United States, 2010 World Cup merchandise such as T-shirts was available at Wal-Mart.
B)FIFA is the only global marketer seeking revenue growth by boosting soccer's popularity in America.
C)Yves Saint Laurent designer was selling merchandise with soccer related embossed emblems.
D)The fall 2010 collection of designer clothes included "FIFA Hertiage Tees" with logos on shirts.
E)FIFA has chosen Total Apparel Group (TAG)to boost soccer's visibility and popularity among Americans.

Question 80

Which of the following is true about "coffee culture" in England?

A)Starbucks has been unsuccessful in its attempt to change the Brits' preference for tea.
B)American entrepreneurs found success in England with the Seattle Coffee Company which Starbucks later acquired.
C)Starbucks succeeded in England only after changing the company's name to Seattle Coffee Company.
D)Starbucks-style coffee shops have been a flop because tea culture is too deeply engrained.
E)Starbucks has been successful in England since it started selling beer.