Question 1

The basis for global marketing expert David Arnold's framework for screening intercountry comparisons include:
A)demographic data.
B)"top-down" segmentation analysis.
C)"bottom-up" segmentation analysis.
D)income level.
E)population data.

Accepted Answer

The answer of The basis for global marketing expert David...

Question 2

Which of the following is true about efforts by automakers to target the Hispanic segment in the United States?
A)Honda, Toyota, Ford, and GM all began targeting the segment years ago.
B)Honda and Toyota began targeting the segment years ago; Ford and GM launched their efforts more recently.
C)Ford and GM began targeting the segment years ago; Honda and Toyota launched their efforts more recently.
D)Only Ford and GM are targeting the Hispanic segment.
E)none of the above

Accepted Answer

The statement mentions that Honda and Toyota began targeting the segment years ago, while Ford and GM launched their efforts more recently. Therefore, option B is the correct answer.

Question 3

Basic criteria that marketers should keep in mind while assessing opportunities in global markets include all of the following except:
A)current size of the market segment.
B)anticipated growth potential of the market.
C)compatibility with company's overall objectives.
D)competition in the market.
E)securing first mover advantage.

Accepted Answer

Securing first mover advantage is not a basic criteria that marketers should keep in mind while assessing opportunities in global markets. While it can be beneficial, it is not essential in evaluating potential opportunities. The other four options (current size of the market segment, anticipated growth potential of the market, compatibility with company's overall objectives, and competition in the market) are all important factors to consider when assessing opportunities in global markets.

Question 4

Sometimes it is preferable to market to a particular age group rather than a mind-set; in such an instance, psychographic studies can help marketers arrive at a deeper understanding of consumer behavior than is possible with traditional segmentation variables.

Accepted Answer

The answer of Sometimes it is preferable to market to...

Question 5

Global automakers are targeting the U.S. market with SUVs. All of the following SUVs are assembled or manufactured in the listed country except:
A)Porsche in Germany.
B)Honda in Japan.
C)Volkswagen in Slovakia.
D)Kia in India.
E)Mercedes-Benz in the United States.

Accepted Answer

Kia does not currently have a manufacturing facility in India. Their SUVs are typically assembled in South Korea, with some production also occurring in the United States and other countries.

Question 6

Sweden's smaller population explains why IKEA, Saab, and Ericsson have looked beyond their borders for significant growth opportunities.

Accepted Answer

Given the smaller population of Sweden, it is likely that its major companies like IKEA, Saab, and Ericsson have had to explore growth opportunities beyond its borders.

Question 7

For behavior segmentation, marketers use the 80/20 rule when assessing the consumers' usage rate, which means that 20% of the company's revenues or profits are accounted for by 80% of the firm's products or customers.

Accepted Answer

The 80/20 rule, or Pareto Principle, in the context of behavior segmentation suggests that 80% of a company's revenues or profits are accounted for by 20% of its customers, not its products.

Question 8

When assessing potential country target markets, management should rely heavily on its network of contacts as a primary criterion for targeting.

Accepted Answer

While a network of contacts can be valuable for gaining insights and facilitating entry into a new market, relying heavily on it as a primary criterion for targeting may overlook critical factors such as market size, growth potential, competitive landscape, and regulatory environment. A comprehensive market analysis should be conducted to make informed decisions.

Question 9

Despite having comparable per capita incomes, other industrialized countries are nevertheless quite small in terms of total annual income.

Accepted Answer

Per capita income refers to the average income per person in a country, while total annual income refers to the overall income generated by a country in a year. Therefore, even if other industrialized countries have a comparable per capita income, their overall annual income may be smaller due to smaller populations and/or economies.

Question 10

The feasibility of targeting a particular market segment can be negatively impacted by various factors. Which of the following is not of those factors?
A)regulatory hurdles.
B)cultural barriers.
C)lack of distribution system.
D)time required to establish business.
E)surplus demand.

Accepted Answer

Surplus demand is not a factor that can negatively impact the feasibility of targeting a particular market segment. Surplus demand refers to a situation where the market demand for a product or service exceeds the supply, which is actually a favorable condition for a business. The other options listed are all potential barriers to successfully targeting a market segment.

Question 11

Which of the following criteria should marketers use when assessing opportunity in global target markets?
A)current size of the segment
B)anticipated growth potential
C)competition
D)compatibility with company's overall objectives
E)all of the above

Accepted Answer

All of the above criteria should be considered when assessing opportunity in global target markets. The current size of the segment and anticipated growth potential will give insight into the potential revenue the company can generate. Competition will help determine the level of competition in the market, and compatibility with the company's overall objectives will ensure that the opportunity fits with the company's long-term goals.

Question 12

Eighty percent of McDonald's restaurants are located globally in more than 20 countries.

Accepted Answer

More than 80% of McDonald's restaurants worldwide are owned and operated by independent local business owners, and McDonald's operates in over 100 countries.

Question 13

Demographic changes can create opportunities for marketing innovation. Justify this statement using examples.

Accepted Answer

The answer of Demographic changes can create opportunities for marketing...

Question 14

An example of a trap that marketers can set for themselves while targeting a foreign market is to:
A)overstate the size and short-term attractiveness of individual country markets.
B)realize that short-term profit and revenue growth objectives may be hard to achieve.
C)restrain from being persistent to enter a country market.
D)ignore shareholders' or competitors' pressure not to "miss out" on a strategic opportunity.
E)enter a market based on time-consuming rigorous market analysis.

Accepted Answer

Overstating the size and short-term attractiveness of individual country markets can create unrealistic expectations and lead to disappointment and failure in the long run. It is important for marketers to conduct thorough research and analysis to understand the true potential and challenges of foreign markets before entering them.

Question 15

Categories such as "successful idealists" and "affluent materialists" can be used to describe age segmentation.

Accepted Answer

These categories describe psychographic segmentation, which is based on lifestyle and values, not age.

Question 16

Pareto's Law suggests that 80% of a company's revenues or profits are accounted for by 20% of a firm's products or customers.

Accepted Answer

Pareto's Law, also known as the 80/20 rule, states that roughly 80% of effects come from 20% of causes. In this case, it suggests that 80% of a company's revenues or profits are generated by 20% of its products or customers.

Question 17

Managers must decide how well a company's product fits the country market by asking all of the following questions except:
A)Will adaptation be required?
B)Will import restriction drive up the product price?
C)Is it advisable to source locally?
D)Will strong home currency have an adverse impact on product price?
E)Will it be possible to neglect home-country regulations?

Accepted Answer

None of the other options present a question about neglecting home-country regulations, so E is the only one that does not belong.

Question 18

By 2030, 30 percent of the U.S. population will be 65 years or older versus 13 percent today.

Accepted Answer

As of the latest projections, it is expected that by 2030, around 20% of the U.S. population will be 65 years or older, not 30%. The percentage increase is significant but not as high as the claim.

Question 19

A psychographic segmentation, "Comfortable Belongers" refers to "up-and-comers" of a country's population.

Accepted Answer

"Comfortable Belongers" refers to individuals who value comfort, familiarity, and belonging, rather than being "up-and-comers" who are typically more ambitious and status-driven.

Question 20

Ideally, GDP and other measures of national income converted to U.S. dollars should be calculated on the basis of purchasing power parities or through direct comparisons of actual prices for a given product.

Accepted Answer

This is true because using purchasing power parities or direct comparisons of actual prices accounts for differences in the cost of living and inflation rates between countries, providing a more accurate representation of living standards and economic performance. Simply converting the measures of national income to U.S. dollars using exchange rates could be misleading if the exchange rate does not reflect the differences in prices and costs between countries.

Quiz 7: Segmentation, Targeting, and Positioning

The basis for global marketing expert David Arnold's framework for screening intercountry comparisons include:

Which of the following is true about efforts by automakers to target the Hispanic segment in the United States?

Basic criteria that marketers should keep in mind while assessing opportunities in global markets include all of the following except: