Question 1

The Tim Hortons chain accounts for more than half of all the donut and coffee stores in Canada. The chain's red-and-white store banners are fixtures in many Canadian communities. In 2001, the first Tim Hortons appeared in the United States through a contractual agreement allowing an independent operation to adopt Tim Hortons' entire way of doing business. This agreement is an example of a(n)________.

Accepted Answer

The agreement between Tim Hortons and the independent operation in the United States is an example of a franchise, where the independent operation adopts the entire way of doing business of the franchisor (Tim Hortons).

Question 2

Compare the three product strategy choices a large organization such as General Electric or Frito Lay has when selling in foreign markets.

Accepted Answer

The answer of Compare the three product strategy choices a...

Question 3

Sony found that Japanese commuters had difficulty using standard laptops on crowded rush-hour trains since standing commuters have no laps, so it created the U as a "standing computer." The U includes a touch screen and small keyboard that can be used while standing or on the move. This is an example of ________.

Accepted Answer

The creation of a new product, the U, specifically designed for standing commuters is an example of product invention. The U was not simply a straight product extension or adaptation of an existing laptop, but a new product that addresses a specific need in the market. It is not a dual adaptation, as it was not adapted to meet the needs of two different markets or regions. Standardization was not a factor in this case, as the U was designed to be unique and tailored to a specific use case.

Question 4

Why are companies often eager to form joint ventures?

Accepted Answer

The answer of Why are companies often eager to form...

Question 5

Two or more firms pooling their resources for common goals have established a joint venture.

Accepted Answer

This is the definition of a joint venture.

Question 6

Which of the following suggests that what is ethical in one culture is not necessarily ethical in another culture?

Accepted Answer

Ethical relativism is the belief that ethical principles depend on the cultural context in which they are applied, and what is considered ethical in one culture may not be considered ethical in another culture. Therefore, ethical relativism suggests that what is ethical in one culture is not necessarily ethical in another culture.

Question 7

To successfully market the Corvette to the European market, General Motors had to make the automobile shorter and narrower. GM chose to use a ________ strategy with the Corvette.

Accepted Answer

Product adaptation involves modifying a product to better fit the needs or preferences of a particular market. In this case, GM adapted the Corvette to better fit the smaller roads and parking spaces of European cities by making it shorter and narrower.

Question 8

Which of the following is NOT among the ethical values identified in the American Marketing Association's Ethical Norms and Values for Marketers?

Accepted Answer

The ethical values identified in the American Marketing Association's Ethical Norms and Values for Marketers are transparency, citizenship, honesty, and responsibility. Equality is not included in the list of ethical values in this document.

Question 9

Eastman Kodak accused Japanese rival Fujifilm of selling color photographic paper in the United States for as little as a quarter of what it charges in Japan. What unethical and often illegal practice was Kodak accusing Fujifilm of implementing? Explain your answer.

Accepted Answer

The answer of Eastman Kodak accused Japanese rival Fujifilm of...

Question 10

Using which ethical philosophy would a marketer equally consider all concerned in making decisions?

Accepted Answer

The answer of Using which ethical philosophy would a marketer...

Question 11

Using which ethical philosophy would a marketer make the decision that provides the most good or the least harm?

Accepted Answer

The utilitarian approach focuses on maximizing the overall good and minimizing harm, which aligns with making decisions that provide the most good or the least harm in marketing.

Question 12

________ occurs when someone in authority extracts payment under duress.

Accepted Answer

Extortion is the act of obtaining something, usually money or property, through force or threats. It is often perpetrated by someone in authority over the victim, who may be threatened with harm, arrest, or other negative consequences if they do not comply with the extortionist's demands. Extortion is illegal and punishable by law.

Question 13

________ occurs when someone voluntarily offers payment to get an illegal advantage.

Accepted Answer

Bribery occurs when someone offers payment in exchange for an illegal advantage. It is a form of corruption and is illegal in most countries.

Question 14

A maker of cash registers had to develop hand-crank-operated cash registers to sell to Latin American and African markets where access to reliable electricity is limited. The company used a ________ strategy to enter those global markets.

Accepted Answer

The correct strategy is "backward invention," which involves simplifying or scaling back a product to make it more accessible or suitable for markets with different needs, such as those with limited access to reliable electricity. In this case, developing hand-crank-operated cash registers for markets without reliable electricity is an example of backward invention.

Question 15

The marketing team at Connected.com, a social networking site aimed at connecting job seekers with employers, must decide how much to charge for different levels of membership and access to those using the site. Using which ethical philosophy would they make their decision based on best serving the needs of the whole community of users even if it means treating some users unequally?

Accepted Answer

The answer of The marketing team at Connected.com, a social...

Question 16

Wrigley's chewing gum is the same product whether you buy it in Japan, Great Britain, Brazil, or the United States. Wrigley's sells the same products around the world. It has adopted a(n) ________ strategy.

Accepted Answer

The straight extension strategy involves offering the exact same product in different countries without any modifications. This is the case with Wrigley's chewing gum, which is sold globally without any localization or adaptation to the local market.

Question 17

SeaFood Family markets its frozen seafood products to the domestic United States market and to several Central American countries. SeaFood Family recently had a surplus of products. Management decided to maintain prices in the U.S. market but drastically cut prices in the Central American markets in order to reduce excess supply. SeaFood Family would most likely be accused of pirating.

Accepted Answer

SeaFood Family's decision to cut prices in the Central American markets is not an act of piracy, as they have the right to set their own prices and make business decisions to manage their supply and demand. Piracy refers to the unauthorized use or reproduction of someone else's intellectual property, such as music or software.

Question 18

To enter the European market, Starbucks joined in a cooperative venture with Bon Appetit Group A.G. in Switzerland. Bon Appetit has the recognized brand name, and Starbucks has the product and the expertise to run coffeehouses. This is an example of a(n) ________.

Accepted Answer

This is an example of a strategic alliance, where two parties come together to utilize each other's strengths for mutual benefit. Starbucks and Bon Appetit Group have joined forces to enter the European market, where Bon Appetit already has a recognized brand name, while Starbucks brings its expertise in running coffeehouses.

Question 19

In the British Isles, Guinness brewery was given the right to produce and market Budweiser beer by Anheuser-Busch, its U.S. brand owner. Because Guinness pays Anheuser-Busch royalties for the use of its brand, this is an example of a(n) ________.

Accepted Answer

This is an example of a licensing agreement, as Guinness has been given the right to produce and market Budweiser beer by Anheuser-Busch in exchange for payment of royalties.

Question 20

What is the relationship between the level of control and the level of risk in each type of market entry strategy?

Accepted Answer

The answer of What is the relationship between the level...

Quiz 2: Global, Ethical, and Sustainable Marketing