Download Consumer Behavior, 10e (Schiffman/Kanuk)

Consumer Behavior, 10e (Schiffman/Kanuk)
Chapter 13 Cross-Cultural Consumer Behavior: An International Perspective
1) Differences between consumers of different societies are known as ________.
A) cross-cultural interpretation
B) cross-cultural consumer research
C) cross-cultural analysis
D) cross-cultural differences
E) cross-cultural localization
Answer: D
Diff: 1 Page Ref: 406
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
2) The objective of understanding cross-cultural differences is to ________.
A) develop effective targeted marketing strategies to use in each foreign market of interest
B) be informed as good citizens
C) to fulfill a societal marketing aspect
D) to be considered a global company
E) to fulfill their social responsibilities
Answer: A
Diff: 2 Page Ref: 406
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
3) A ________ marketing perspective stresses the similarities among consumers worldwide.
A) diverse
B) international
C) global
D) comprehensive
E) localized
Answer: C
Diff: 1 Page Ref: 408
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
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4) A ________ marketing strategy stresses the diversity among consumers in different nations.
A) diverse
B) international
C) global
D) comprehensive
E) localized
Answer: E
Diff: 2 Page Ref: 408
AACSB: Reflective Thinking
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
5) A company that includes a blend of standardized and local elements in order to secure the
benefits of their different marketing strategies is called a ________.
A) smart company
B) global company
C) multinational company
D) glocal company
E) international company
Answer: D
Diff: 3 Page Ref: 408
AACSB: Analytic Skills
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
6) A glocal company is one that ________.
A) is both global and local
B) operates inside and outside the U.S.
C) is a company that is environmentally oriented
D) buys products locally and sells them globally
E) blends a uniform communication strategy with a uniform product
Answer: A
Diff: 1 Page Ref: 408
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
2
Copyright © 2010 Pearson Education, Inc.
7) Why are firms selling their products all over the world?
A) Overseas markets represent the single most important opportunity for growth.
B) Trade agreements require all companies operating within the agreement nations to have a
global plan.
C) Companies fear competition from "me too" products elsewhere.
D) Companies want to gain new production and marketing ideas.
E) Companies seek to take advantage of lower labor costs.
Answer: A
Diff: 3 Page Ref: 408
AACSB: Reflective Thinking
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
8) ________ provide(s) a form of "culture transfer" when companies expand their markets by
bringing new products, services, practices, ideas, and experiences to potential consumers
residing in a different country and possessing a different cultural view.
A) International marketing
B) Travel
C) Movies
D) Gifts
E) Television
Answer: A
Diff: 3 Page Ref: 409
AACSB: Analytic Skills
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
9) ________ is made up of 27 member countries in Europe who allow the free movement of
goods and services.
A) NAFTA
B) The European Union
C) CAFTA
D) ASEAN
E) Mercosur
Answer: B
Diff: 1 Page Ref: 408
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
3
Copyright © 2010 Pearson Education, Inc.
10) ________, which currently consists of the United States, Canada, and Mexico, provides free
market access to more than 440 million consumers.
A) NAFTA
B) The European Union
C) CAFTA
D) ASEAN
E) Mercosur
Answer: A
Diff: 1 Page Ref: 408
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
11) ________ is a free trade agreement that includes Costa Rica, the Dominican Republic, El
Salvador, Guatemala, Honduras, and Nicaragua.
A) NAFTA
B) The European Union
C) CAFTA
D) ASEAN
E) Mercosur
Answer: C
Diff: 1 Page Ref: 408
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
12) By exposing consumers to unfamiliar and foreign products, international marketing provides
a form of ________.
A) cross-cultural diversity
B) culture transfer
C) international homogeneity
D) cross-cultural analysis
E) stereotyping
Answer: B
Diff: 3 Page Ref: 409
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
4
Copyright © 2010 Pearson Education, Inc.
13) When consumers make consumption decisions based on an association between the product,
brand name, or service, and the country in which it was made, this is referred to as ________.
A) jumping to conclusions
B) stereotyping
C) country of origin effects
D) the halo effect
E) judging value
Answer: C
Diff: 2 Page Ref: 410
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
14) A research study in Turkey found that while products from Germany, France, Italy, and
Israel were favored by Turkish consumers for their quality, design, and performance, products
from the United States and England were chosen for their reliability and warranty. This is an
example of ________.
A) jumping to conclusions
B) stereotyping
C) country of origin effects
D) the halo effect
E) judging value
Answer: C
Diff: 2 Page Ref: 410
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
15) Of the three entities involved in country of origin, ________ has the strongest influence on
product evaluations.
A) country of design
B) country of sale
C) country of assembly
D) country of purchase
E) country of parts
Answer: E
Diff: 2 Page Ref: 411
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
5
Copyright © 2010 Pearson Education, Inc.
16) American consumers who preferentially select products made in the USA demonstrate high
________.
A) cultural homogeneity
B) national heritage
C) belief structure
D) international view
E) consumer ethnocentrism
Answer: E
Diff: 1 Page Ref: 410
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
17) ________ is defined as the effort to determine to what extent the consumers of two or more
nations are similar or different.
A) Cross-cultural difference
B) Consumer behavior
C) Cross-cultural analysis
D) Country of origin effects
E) Marketing research
Answer: C
Diff: 1 Page Ref: 412
AACSB: Analytic Skills
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
18) ________ can provide marketers with an understanding of the psychological, social, and
cultural characteristics of the foreign consumers they wish to target, so that they can design
effective marketing strategies for the specific national markets involved.
A) Marketing research
B) Cross-cultural analysis
C) Cross-cultural difference
D) Country of origin research
E) Consumer behavior
Answer: B
Diff: 2 Page Ref: 412
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
6
Copyright © 2010 Pearson Education, Inc.
19) If the cultural beliefs, values, and customs of specific target countries are found to differ
widely then a highly ________ marketing strategy is indicated for each country.
A) individualized
B) generalized
C) homogenized
D) heterogeneous
E) uniform
Answer: A
Diff: 2 Page Ref: 413
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
20) By 2020, the middle class will grow to constitute over ________ of the world's population.
A) 50%
B) 60%
C) 70%
D) 75%
E) 80%
Answer: A
Diff: 2 Page Ref: 414
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
21) According to recent projections, the middle class will increase in size by 1.8 billion people,
of which about one third will be in ________.
A) China
B) India
C) Western Europe
D) the United States
E) Russia
Answer: A
Diff: 2 Page Ref: 414
AACSB: Analytic Skills
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
7
Copyright © 2010 Pearson Education, Inc.
22) Many marketers, finding their home markets to be nearing the saturation point in terms of
sales opportunities, are looking to the growing ________ in developing countries to expand their
sales.
A) lower class
B) working class
C) middle class
D) wealthy class
E) upper class
Answer: C
Diff: 3 Page Ref: 415
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
23) Which of the following is true of the middle class in emerging markets?
A) Companies can expect middle class consumers worldwide to earn roughly the same income.
B) Middle-class consumers in less-developed nations often cannot afford to pay as much for a
product as consumers in the more advanced economies do.
C) The majority of the global middle class lives in developed nations.
D) Only one-third of people living in developing countries are literate.
E) The emerging middle class constitutes the highest percentage of the total country population
in Mexico.
Answer: B
Diff: 3 Page Ref: 415
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
24) The reason that many products fail when marketed in a foreign country is ________.
A) many companies do not insure their products against theft
B) many companies assume that if a product is a success domestically than it will be accepted
anywhere
C) marketers do not go through enough enculturation education
D) marketers' use of localized marketing strategies negatively influence consumer preferences
E) country of origin effects
Answer: B
Diff: 3 Page Ref: 418
AACSB: Reflective Thinking
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
8
Copyright © 2010 Pearson Education, Inc.
25) Learning about foreign cultures is called ________.
A) enculturation
B) acculturation
C) ethnocentrism
D) consumer research
E) novoculturation
Answer: B
Diff: 1 Page Ref: 418
AACSB: Analytic Skills
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
26) To overcome a narrow and culturally myopic view, marketers must go through a(n)
________ process.
A) acculturation
B) enculturation
C) proculturation
D) adculturation
E) novoculturation
Answer: A
Diff: 3 Page Ref: 418
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
27) Company A appeals to consumers in different countries in terms of their "common" needs,
values, and goals. Company A is using ________ as a segmentation strategy.
A) national borders
B) international status
C) shared needs and values
D) local concerns
E) contemporary issues
Answer: C
Diff: 2 Page Ref: 420
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
9
Copyright © 2010 Pearson Education, Inc.
28) Company B appeals to consumers in different countries by using relatively different, "local,"
or specific marketing strategies for members of distinctive cultures or countries. Company B is
using ________ as a segmentation strategy.
A) shared needs and values
B) national borders
C) international status
D) local concerns
E) contemporary issues
Answer: B
Diff: 2 Page Ref: 420
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
29) Two nations may use or consume the same product in very different ways or for different
purposes. This is an example of which of the following basic research issues in cross-cultural
analysis?
A) differences in language and meaning
B) differences in marketing research possibilities
C) differences in consumption patterns
D) differences in perceived benefits of products and services
E) differences in economic and social conditions and family structure
Answer: D
Diff: 3 Page Ref: 419, Table 13.8
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
30) The income, social class, age, and sex of target customers may differ dramatically between
two different countries. This is an example of which of the following basic research issues in
cross-cultural analysis?
A) differences in language and meaning
B) differences in marketing segmentation opportunities
C) differences in consumption patterns
D) differences in perceived benefits of products and services
E) differences in economic and social conditions and family structure
Answer: B
Diff: 3 Page Ref: 419, Table 13.8
AACSB: Analytic Skills
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
10
Copyright © 2010 Pearson Education, Inc.
31) In some cultures, the female head of household is the primary decision-maker when it comes
to purchases for the family. In others, it is the male head of household. This is an example of
which of the following basic research issues in cross-cultural analysis?
A) differences in language and meaning
B) differences in marketing research possibilities
C) differences in consumption patterns
D) differences in perceived benefits of products and services
E) differences in economic and social conditions and family structure
Answer: E
Diff: 3 Page Ref: 419, Table 13.8
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
32) The availability of professional consumer researchers can vary considerably from country to
country. This is an example of which of the following basic research issues in cross-cultural
analysis?
A) differences in language and meaning
B) differences in marketing research possibilities
C) differences in consumption patterns
D) differences in perceived benefits of products and services
E) differences in economic and social conditions and family structure
Answer: B
Diff: 3 Page Ref: 419, Table 13.8
AACSB: Analytic Skills
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
33) ________ products are manufactured, packaged, and positioned in exactly the same way
regardless of the country in which they are sold.
A) Regional brand
B) World brand
C) National brand
D) Local brand
E) International brand
Answer: B
Diff: 2 Page Ref: 420
AACSB: Analytic Skills
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
11
Copyright © 2010 Pearson Education, Inc.
34) An upscale wristwatch such as Patek Philippe would be best marketed through a ________
strategy.
A) global
B) world brand
C) adapted marketing
D) mass marketing
E) direct marketing
Answer: B
Diff: 3 Page Ref: 420
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
35) _________ refers to the fact that consumers view global brands as a kind of "cultural ideal,"
and their purchase and use makes the consumer feel like a citizen of the world.
A) Quality signal
B) Social responsibility
C) Constructive marketing
D) Global myth
E) Corporate speculation
Answer: D
Diff: 2 Page Ref: 422
AACSB: Analytic Skills
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
36) Global companies are held to a higher level of ________ than local brands, and are expected
to respond to social problems associated with what they sell.
A) quality
B) corporate social responsibility
C) identification
D) prestige
E) employment
Answer: B
Diff: 2 Page Ref: 422
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
12
Copyright © 2010 Pearson Education, Inc.
37) The majority of a country's citizens fall into which one of the following categories with
respect to their view of global brands?
A) global citizens
B) global dreamers
C) antiglobals
D) global pragmatists
E) global agnostics
Answer: A
Diff: 2 Page Ref: 422
AACSB: Multicultural and Diversity
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
38) According to research presented in the text, ________ feel that global brands are higher in
quality than local brands, but dislike brands that preach U.S. values and do not trust global
companies to act responsibly.
A) global citizens
B) global dreamers
C) antiglobals
D) global pragmatists
E) global agnostics
Answer: A
Diff: 2 Page Ref: 422
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
39) According to research presented in the text, ________ view global brands as quality
products, and are not particularly concerned about the social responsibility issue.
A) global citizens
B) global dreamers
C) antiglobals
D) global pragmatists
E) global agnostics
Answer: B
Diff: 2 Page Ref: 423
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
13
Copyright © 2010 Pearson Education, Inc.
40) According to research presented in the text, ________ evaluate global brands in the same
way they evaluate local brands.
A) global citizens
B) global dreamers
C) antiglobals
D) global pragmatists
E) global agnostics
Answer: E
Diff: 2 Page Ref: 423
AACSB: Reflective Thinking
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
41) McDonald's tries to adapt its advertising messages to the specific values of particular
cultures. This makes it a ________ company.
A) global
B) local
C) glocal
D) world brand
E) multinational
Answer: C
Diff: 2 Page Ref: 423
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
42) According to recent consumer research, which of the following is true of combining global
and local marketing strategies?
A) Consumers in different countries of the world are exposed to roughly the same level of
advertising.
B) Consumers worldwide focus more on the aesthetic qualities of advertising than on the
product-related claims made.
C) Creating a general consensus of meaning across various cultures can be achieved using strong
visual images whose fundamental message is highly apparent.
D) In developing advertising for international markets, localizing language to blend with the
local culture is considered to be the least important component of advertising customization.
E) The most effective way to reach international markets for all types of products is by using a
uniform advertising theme.
Answer: C
Diff: 3 Page Ref: 424
AACSB: Reflective Thinking
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
14
Copyright © 2010 Pearson Education, Inc.
43) What is the most important advertising component that will blend with the local culture?
A) language
B) localizing product attributes
C) use of local models
D) using local music
E) using local advertising settings
Answer: A
Diff: 2 Page Ref: 424
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
44) A ________ advertising strategy involves standardization of both the product and the
communications program.
A) local
B) national
C) restricted
D) global
E) mixed
Answer: D
Diff: 1 Page Ref: 424
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
45) A ________ advertising strategy involves customizing both the product and communications
program.
A) local
B) national
C) restricted
D) global
E) mixed
Answer: A
Diff: 1 Page Ref: 424
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
15
Copyright © 2010 Pearson Education, Inc.
46) A ________ advertising strategy involves customizing either the product or the
communications program.
A) local
B) restricted
C) national
D) global
E) mixed
Answer: E
Diff: 2 Page Ref: 424
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
47) There are four possible global marketing strategies, one of which is a mixed strategy, which
involves offering ________.
A) a uniform product and a customized message
B) a customized pricing scheme and a uniform message
C) a uniform product and a uniform message
D) a customized product and a customized message
E) a uniform product and a uniform pricing scheme
Answer: A
Diff: 3 Page Ref: 425, Table 13.10
AACSB: Analytic Skills
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
48) There are four possible global marketing strategies, one of which is a global strategy, which
involves offering ________.
A) a uniform product and a customized message
B) a uniform product and a uniform message
C) a customized pricing strategy and a uniform message
D) a customized product and a uniform message
E) a customized product and a customized message
Answer: B
Diff: 3 Page Ref: 425, Table 13.10
AACSB: Analytic Skills
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
16
Copyright © 2010 Pearson Education, Inc.
49) There are four possible global marketing strategies, one of which is a local strategy, which is
offering ________.
A) a uniform product and a customized message
B) a uniform product and a uniform message
C) a customized product and a uniform message
D) a customized product and a customized message
E) a uniform pricing strategy and a customized product
Answer: D
Diff: 3 Page Ref: 425, Table 13.10
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
50) Product standardization works best with ________ products.
A) snack food
B) cleaning
C) high tech
D) fashion and clothing
E) agricultural
Answer: C
Diff: 2 Page Ref: 426, Table 13.11
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
51) A localized marketing strategy works best when ________.
A) the local economy is prosperous
B) there are very few market segments
C) there is intense local competition
D) the company's international reputation is very good
E) there are few potential local partners
Answer: C
Diff: 3 Page Ref: 426, Table 13.11
AACSB: Multicultural and Diversity
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
17
Copyright © 2010 Pearson Education, Inc.
52) When seeking success in a foreign market, it has been suggested that a company should
remember the following P's: ________.
A) place, position, and products
B) price, place, and people
C) place, price, and position
D) place, people, and products
E) products, people and position
Answer: D
Diff: 3 Page Ref: 425
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
53) The Chevrolet Nova did not sell well in Latin America because the Spanish word Nova
means "it doesn't run." This is an example of failure due to which of the following of the three
P's?
A) Product
B) Projection
C) Pricing
D) Placement
E) People
Answer: A
Diff: 3 Page Ref: 425
AACSB: Analytic Skills
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
54) When Snapple failed to reduce the level of sweetness before offering it to the Japanese
market, sales came in significantly below anticipated levels. This is an example of failure due to
which of the following three P's?
A) Placement
B) Pricing
C) Promotion
D) Product
E) People
Answer: D
Diff: 1 Page Ref: 425
AACSB: Analytic Skills
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
18
Copyright © 2010 Pearson Education, Inc.
55) Using different colors to package products that are being sold in foreign countries is a way to
overcome failure due to ________ problems.
A) product
B) pricing
C) distribution
D) promotional
E) consumption
Answer: A
Diff: 3 Page Ref: 425
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
56) Which of the following global consumer market segments is the youngest group?
A) strivers
B) devouts
C) fun Seekers
D) creatives
E) intimates
Answer: C
Diff: 3 Page Ref: 427
Skill: Concept
Objective: 13.4: Understand how lifestyle and psychographic segmentation can be used in
developing global or local marketing strategies
57) Which of the following global consumer market segments is known for seeking knowledge
and insight, and having a keen interest in books and new media?
A) strivers
B) devouts
C) fun Seekers
D) creatives
E) intimates
Answer: D
Diff: 3 Page Ref: 427
Skill: Concept
Objective: 13.4: Understand how lifestyle and psychographic segmentation can be used in
developing global or local marketing strategies
19
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58) Which of the following global consumer market segments considers material things to be
extremely important?
A) strivers
B) devouts
C) fun seekers
D) creatives
E) intimates
Answer: A
Diff: 3 Page Ref: 427
Skill: Concept
Objective: 13.4: Understand how lifestyle and psychographic segmentation can be used in
developing global or local marketing strategies
59) Which of the following global consumer market segments is most focused on social
relationships and family?
A) strivers
B) devouts
C) fun seekers
D) creatives
E) intimates
Answer: C
Diff: 3 Page Ref: 427
Skill: Concept
Objective: 13.4: Understand how lifestyle and psychographic segmentation can be used in
developing global or local marketing strategies
CLOTHING MINI CASE: Outer Limits Outfitters is an Swiss company that makes clothes for
skiing and snowboarding. The company produces standardized lines of clothing for sale at its
retail outlets worldwide. In Switzerland,. Outer Limits' advertising portrays the company as a
distinctly Swiss brand. In other countries, however, it creates localized advertising, using local
actors and local scenery. Outer Limits also makes substantial donations to regional natural
preservation charities in its various markets because it knows that natural conservation is very
important to its core consumers.
60) In the CLOTHING MINI CASE, Outer Limits Outfitters would be considered a(n)
________.
A) global brand
B) acculturated brand
C) subsidiary brand
D) national brand
E) local brand
Answer: A
Diff: 3 Page Ref: 422
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
20
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61) In the CLOTHING MINI CASE, if U.S. consumers held positive perceptions of Outer Limits
Outfitters because it is a Swiss company and the Swiss are known for having beautiful mountains
and high quality goods, this would be an example of ________.
A) country of origin effects
B) localized strategy
C) glocal branding
D) cross-cultural analysis
E) consumer ethnocentricity
Answer: A
Diff: 3 Page Ref: 410
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
62) In the CLOTHING MINI CASE, the majority of Outer Limits' consumers fall into the
________ consumer segment.
A) Global Citizens
B) Global Dreamers
C) Global Indifferents
D) Antiglobals
E) Global Agnostics
Answer: A
Diff: 3 Page Ref: 422
AACSB: Reflective Thinking
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
63) In the CLOTHING MINI CASE, the success of Outer Limits clothing abroad is most clearly
attributable to ________.
A) quality signal
B) social responsibility
C) international prestige
D) global myth
E) cross-cultural analysis
Answer: D
Diff: 3 Page Ref: 422
AACSB: Analytic Skills
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
21
Copyright © 2010 Pearson Education, Inc.
64) In the CLOTHING MINI CASE, Outer Limits' marketing strategy would be best described
as ________.
A) global
B) mixed
C) homogenous
D) local
E) individualistic
Answer: B
Diff: 3 Page Ref: 425, Table 13.10
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
CRAFT MINI CASE: Global Craft is an importer of crafts from Indian and African craftsmen to
the United States. The company broadcasts a standardized advertising campaign nationwide
emphasizing the fair price that it pays for the crafts that it imports, supporting rather than
exploiting these craftsmen. Its advertising also serves to introduce American consumers to
international craft products to which they may not have been already introduced.
65) In the CRAFT MINI CASE, Global Craft capitalizes on its reputation for ________ to
promote the products it imports.
A) social responsibility
B) global myth
C) quality signaling
D) prestige
E) value
Answer: A
Diff: 3 Page Ref: 422
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
66) In the CRAFT MINI CASE, Global Craft highlights the exotic origins of the crafts it
imports, relying on positive ________ to promote sales of its imports.
A) cultural exposure
B) consumption experiences
C) country of origin effects
D) cross-cultural differences
E) standardized products
Answer: C
Diff: 3 Page Ref: 410
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
22
Copyright © 2010 Pearson Education, Inc.
67) In the CRAFT MINI CASE, Global Craft's advertising strategy would be best described as
________.
A) heterogeneous
B) localized
C) individualized
D) value-driven
E) standardized
Answer: E
Diff: 3 Page Ref: 420
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
68) In the CRAFT MINI CASE, Global Craft's marketing provides a form of ________.
A) cross-cultural analysis
B) culture transfer
C) indirect selling
D) enculturation
E) world brand
Answer: B
Diff: 3 Page Ref: 409
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
69) In the CRAFT MINI CASE, the majority of Global Craft's consumers fall into the ________
consumer segment.
A) Global Citizens
B) Global Dreamers
C) Global Indifferents
D) Antiglobals
E) Global Agnostics
Answer: A
Diff: 3 Page Ref: 422
AACSB: Reflective Thinking
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
23
Copyright © 2010 Pearson Education, Inc.
COLA MINI CASE: Fizzy Cola is a manufacturer of sodas that has come to be regarded as a
symbol of American values and society and has traditionally supplied beverages to the United
States Armed Forces. Given that Islamic law prohibits the consumption of alcohol, Fizzy Cola
sees a huge market potential for its refreshing, non-alcoholic beverages in the Middle East. Due
to current geopolitical conditions, however, marketing Fizzy Cola as a symbol of America is
unlikely to be a successful marketing approach with Muslim consumers in the Middle East. As a
result, Fizzy Cola plans to tailor its marketing message to the specific needs and values of the
potential markets in the Middle East. Market research, however, has been hindered by laws in
the area, especially in Saudi Arabia, where gatherings of more than four people are illegal,
making focus group research a near impossibility.
70) In the COLA MINI CASE, Fizzy Cola plans to use a(n) ________ marketing strategy to
reach customers in the Middle East.
A) individualized
B) global
C) international
D) homogeneous
E) uniform
Answer: A
Diff: 2 Page Ref: 413
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
71) In the COLA MINI CASE, marketers of Fizzy Cola must undergo a process of ________ in
order to recognize the relevant factors pertaining to the usage of its products in the Middle East.
A) enculturation
B) acculturation
C) proculturation
D) novoculturation
E) adculturation
Answer: B
Diff: 2 Page Ref: 418
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
24
Copyright © 2010 Pearson Education, Inc.
72) In the COLA MINI CASE, marketing of Fizzy Cola in the Middle East as a symbol of
America is likely to fail largely due to ________.
A) cross-cultural analysis
B) indirect selling
C) country of origin effects
D) prestige properties
E) global segmentation strategies
Answer: C
Diff: 3 Page Ref: 410
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
73) In the COLA MINI CASE, Fizzy Cola's marketing research difficulties arise from which of
the following basic research issues in cross-cultural analysis?
A) differences in consumption patterns
B) differences in economic and social conditions
C) differences in market segmentation opportunities
D) differences in language and meaning
E) differences in marketing research possibilities
Answer: E
Diff: 3 Page Ref: 419, Table 13.8
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
74) In the COLA MINI CASE, Islamic law prohibits the consumption of alcohol, leading to a
relative increase in the consumption of soft drinks by Muslims in the Middle East. This is an
example of ________.
A) differences in consumption patterns
B) differences in economic and social conditions
C) differences in market segmentation opportunities
D) differences in language and meaning
E) differences in marketing research possibilities
Answer: A
Diff: 3 Page Ref: 419, Table 13.8
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
25
Copyright © 2010 Pearson Education, Inc.
75) The formation of the European Union has resulted in the transformation of the European
continent into a homogeneous market of people with the same or very similar wants and needs.
Answer: FALSE
Diff: 3 Page Ref: 408
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
76) Overseas markets represent the single most important opportunity for the future growth of
firms whose home markets have reached maturity.
Answer: TRUE
Diff: 1 Page Ref: 408
AACSB: Analytic Skills
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
77) Consumers around the world are increasingly reluctant to try foreign products that are
popular in different and far-off places.
Answer: FALSE
Diff: 2 Page Ref: 408
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
78) The only way consumers gain exposure to different cultures is through their travel, living,
and working in foreign countries.
Answer: FALSE
Diff: 1 Page Ref: 409
AACSB: Reflective Thinking
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
79) The Swiss have a reputation for making excellent watches, demonstrating that consumers
tend to have an established attitude or preference when it comes to a particular product being
made in a particular country.
Answer: TRUE
Diff: 2 Page Ref: 410
AACSB: Multicultural and Diversity
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
26
Copyright © 2010 Pearson Education, Inc.
80) Country of design, country of assembly, and country of parts are three dimensions that make
up country of origin.
Answer: TRUE
Diff: 1 Page Ref: 410
AACSB: Analytic Skills
Skill: Concept
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
81) The smaller the similarity between nations, the more feasible it is to use relatively similar
marketing strategies in each nation.
Answer: FALSE
Diff: 1 Page Ref: 412
AACSB: Reflective Thinking
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
82) A firm's success in marketing a product or service in a number of foreign countries is likely
to be influenced by how similar the beliefs, values, and customs are that govern the use of the
product in the various countries.
Answer: TRUE
Diff: 1 Page Ref: 412
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
83) Products are viewed in the same way in all countries.
Answer: FALSE
Diff: 1 Page Ref: 416
AACSB: Reflective Thinking
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
84) Teenagers appear to have quite similar interests, desires, and consumption behavior no
matter where they live.
Answer: TRUE
Diff: 3 Page Ref: 416
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
27
Copyright © 2010 Pearson Education, Inc.
85) Global brands are viewed differently than local brands, and consumers worldwide associate
global brands with three characteristics: quality signal, global myth, and social responsibility.
Answer: TRUE
Diff: 2 Page Ref: 422
AACSB: Analytic Skills
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
86) Consumers believe that the more people who purchase a brand, the higher the brand's
quality, which often results in a global brand being able to command a premium price.
Answer: TRUE
Diff: 2 Page Ref: 422
AACSB: Reflective Thinking
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
87) Consumers worldwide believe that local brands develop new products and breakthrough
technologies at a faster pace than global brands.
Answer: FALSE
Diff: 3 Page Ref: 422
AACSB: Analytic Skills
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
88) There are four major segments in each country with respect to how its citizens view global
brands. These include: global citizens, global dreamers, antiglobals, and global agnostics.
Answer: TRUE
Diff: 1 Page Ref: 423
AACSB: Analytic Skills
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
89) Global pragmatists use a company's global success as an indication of product quality and
innovativeness, and are also concerned that the firm acts in a socially responsible manner.
Answer: FALSE
Diff: 2 Page Ref: 423
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
28
Copyright © 2010 Pearson Education, Inc.
90) Consumers are more responsive when advertising content is adapted to their local needs.
Answer: TRUE
Diff: 1 Page Ref: 426
AACSB: Multicultural and Diversity
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
91) Local adaptation of marketing material involves no more than translating Web pages into the
local language.
Answer: FALSE
Diff: 1 Page Ref: 426
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
92) Consumers in different countries of the world have roughly the same amount of exposure to
advertisements.
Answer: FALSE
Diff: 1 Page Ref: 424
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
93) Product standardization appears to be most successful for high-involvement products that
approach either end of the high-tech/high-touch continuum.
Answer: TRUE
Diff: 3 Page Ref: 425
AACSB: Analytic Skills
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
94) Low-involvement products in the midrange of the high-tech/high-touch continuum are most
suitably marketed as global brands.
Answer: FALSE
Diff: 3 Page Ref: 425
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
29
Copyright © 2010 Pearson Education, Inc.
95) In general, demographic segments in other nations want to be or act like Americans.
Answer: FALSE
Diff: 1 Page Ref: 425
AACSB: Multicultural and Diversity
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
96) The Internet is a culturally neutral medium.
Answer: FALSE
Diff: 2 Page Ref: 426
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
97) The largest of the six global consumer market segments are the Altruists.
Answer: FALSE
Diff: 3 Page Ref: 427
AACSB: Analytic Skills
Skill: Concept
Objective: 13.4: Understand how lifestyle and psychographic segmentation can be used in
developing global or local marketing strategies
98) Strivers are dedicated to technology, knowledge, and learning, and are the highest consumers
of media.
Answer: FALSE
Diff: 3 Page Ref: 427
Skill: Concept
Objective: 13.4: Understand how lifestyle and psychographic segmentation can be used in
developing global or local marketing strategies
99) Intimates are consumers focused on relationships close to home, such as spouses, significant
others, family, and friends.
Answer: TRUE
Diff: 3 Page Ref: 427
Skill: Concept
Objective: 13.4: Understand how lifestyle and psychographic segmentation can be used in
developing global or local marketing strategies
30
Copyright © 2010 Pearson Education, Inc.
100) What is the motivation for firms to sell their products worldwide?
Answer: Firms are selling their products worldwide for a variety of reasons. First, with the
buildup of "multinational fever" and the general attractiveness of multinational markets, products
or services originating in one country are increasingly being sought out by consumers in other
parts of the world. Second, many firms have learned that overseas markets represent the single
most important opportunity for their future growth when their home markets reach maturity.
Consumers all over the world are increasingly eager to try foreign products that are popular in
different and far-off places.
Diff: 2 Page Ref: 408
AACSB: Reflective Thinking
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
101) How does a product's country of origin influence how consumers rate quality and which
brands they will ultimately select? Give an example.
Answer: Consumers tend to have an established attitude or preference when it comes to a
particular product being made in a particular country. Country of origin effects influence how
consumers rate quality and which brands they will ultimately select. For example, a consumer
might be negatively influenced when he learns that a television set he is considering is made in a
country he does not associate with fine electronics, like Cuba. When consumer motivation is
high and when a specific model of a product is being evaluated, as opposed to a range of
products manufactured in a particular country, then consumers are less likely to base judgments
on country of origin information. However, when consumers are less familiar with foreign
products, country of origin becomes an important extrinsic cue.
Diff: 2 Page Ref: 410
AACSB: Multicultural and Diversity
Skill: Application
Objective: 13.1: Understand the importance of formulating an appropriate multinational or
global marketing strategy
31
Copyright © 2010 Pearson Education, Inc.
102) How has the growth of the middle class in developing countries impacted marketers?
Answer: The growing middle class in developing countries is a phenomenon that is very
attractive to global marketers who are often eager to identify new customers for their products.
This expansion of the middle class is based on the reality that, although per capita income may
be low, there is nevertheless considerable buying power in such countries. These consumers in
less developed nations, however, often cannot afford to pay as much for a product as consumers
in more advanced economies. Nevertheless, the rapid expansion of middle class consumers over
the past 50 years has attracted the attention of many marketers, who are finding their home
markets to have reached the saturation point in terms of sales opportunities. Ultimately, more
consumer goods are sold each year because of the growth of the world's middle class population,
and a marketer would do well to focus more on the emerging middle class in other nations than
on people who cannot afford to buy its products in its home market.
Diff: 3 Page Ref: 414
AACSB: Reflective Thinking
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
103) What is acculturation and how does it affect marketers?
Answer: Acculturation is learning about other cultures. Marketers need to be educated about
other cultures before entering foreign countries in order not to make the wrong assumptions
about what is going to be a successful product versus what might fail.
Diff: 1 Page Ref: 418
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
104) In a sense, cross-cultural acculturation is a dual process for marketers. How does this dual
process work? Give an example.
Answer: In a sense, cross-cultural acculturation is a dual process for marketers. First, marketers
must thoroughly orient themselves to the values, beliefs, and customs of the new society to
appropriately position and market their products. Second, to gain acceptance for a culturally new
product in a foreign society, they must develop a strategy that encourages members of that
society to modify or even break with their own traditions.
For example, a social marketing effort designed to encourage consumers in developing nations to
secure polio vaccinations for their children would require marketers to obtain an in-depth picture
of a society's present attitudes and customs with regard to preventative medicine, then devise
promotional strategies that will convince members of a target market to have their children
vaccinated, even if doing so requires a change in current attitudes.
Diff: 3 Page Ref: 418
Skill: Application
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
32
Copyright © 2010 Pearson Education, Inc.
105) What are three of the issues that might deter researchers from conducting marketing
research in foreign countries?
Answer: Students may select any three of the following basic research issues in cross-cultural
analysis:
∙ Differences in language and meaning: words or concepts may not mean the same things in
two different countries
∙ Differences in market segmentation opportunities: the income, social class, age, and sex of
target customers may differ dramatically between two different countries
∙ Differences in consumption patterns: two countries may differ substantially in the level of
consumption or use of products or services
∙ Differences in the perceived benefits of products and services: two nations may use or
consume the same product in very different ways
∙ Differences in the criteria for evaluating products and services: the benefits sought from a
service may differ from country to country
∙ Differences in economic and social conditions and family structure: the "style" of family
decision making may vary significantly from country to country
∙ Differences in marketing research and conditions: the types and quality of retail outlets and
direct-mail lists may vary greatly among countries
∙ Differences in marketing research possibilities: the availability of professional consumer
researchers may vary considerably from country to country
Diff: 3 Page Ref: 419, Table 13.8
Skill: Concept
Objective: 13.2: Understand how to study the differences among cultures while developing
marketing strategies
106) Do all consumers, internationally, respond similarly to brand extensions from global
brands?
Answer: Just because a brand may be global in character does not mean that consumers around
the world will necessarily respond similarly to a brand extension. Consumer acceptance of brand
extensions depends on cultural perceptions of brands and how the extension fits into that
perception. For example, Eastern culture consumers think about brands in a holistic way and are
more apt to judge there to be a reasonable fit between a brand extension and the core product
than are Westerners, who have a more analytic style of thinking that focuses on the attributes or
parts of objects.
Diff: 3 Page Ref: 423
AACSB: Multicultural and Diversity
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
33
Copyright © 2010 Pearson Education, Inc.
107) What are the four possible multinational marketing strategies with regard to standardization
and localization?
Answer: When going into foreign markets, we have the option of complete standardization,
where we use a uniform product and a uniform message. On the opposite end, we can modify
both the product and the message to accommodate the foreign customer. There are two other
options, which are using a mixed strategy of either modifying the message or the product, but not
both.
Diff: 3 Page Ref: 425, Table 13.10
Skill: Concept
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
108) When is standardization of product and message most appropriate?
Answer: A global strategy and product standardization is most effective when marketing a high
tech or high touch product. The target market is usually similar regardless of the country.
Diff: 2 Page Ref: 424
AACSB: Reflective Thinking
Skill: Application
Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a
global, local, or mixed marketing strategy
109) Roper Starch Worldwide conducted a major multinational study and found out that most of
the world can be segmented into six major segments. Talk about two of those segments.
Answer: Students may discuss any two of the following: Strivers (23%): Value wealth, status,
ambition, and power. They consider material things to be extremely important. Devouts (22%):
Have more traditional values, like faith, duty, obedience, and respect for elders. Least involved
with the media and least likely to want Western brands. Concentrated in Mideast, Africa, and
Asia. Altruists (18%): Very outer focused – interested in social issues and causes. Generally well
educated, older, and more female than the norm. Found in Russia and Latin America. Intimates
(15%): These are "people people," and focus on relationships close to home. Often found in
England, Hungary, the Netherlands, and the U.S. Very heavy users of media, as it gives them
something to talk about to others. Fun Seekers (12%): The youngest group. They value,
adventure, pleasure, and looking good, and spend time at bars, clubs, and restaurants. The group
loves electronic media and is more global in its lifestyle, especially in music. Creatives (10%):
Dedicated to technology, knowledge, and learning, and are the highest consumers of media,
especially books, magazines, and newspapers. Members of this group are global trendsetters in
owning and using a PC and in surfing the web.
Diff: 3 Page Ref: 427
AACSB: Reflective Thinking
Skill: Application
Objective: 13.4: Understand how lifestyle and psychographic segmentation can be used in
developing global or local marketing strategies
34
Copyright © 2010 Pearson Education, Inc.