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Test Bank for Global Marketing , 10th Edition

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    Global Marketing Tenth Edition Mark C. Green Warren J. Keegan Test Bank (Download only) for Global Marketing Revised b y Mahmood K han

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    1 Global Marketing, 10e (Green/Keegan) Chapter 1 Introduction to Global Marketing 1) The global market development strategy involves: A) creating new product offerings to a new country. B) seeking new customers in a geographical market. C) creating new s ervice offerings targeting a new region. D) creating new products for a new country. E) seeking new customers targeting a new segment. Answer: B Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to ex plain the various ways a company can expand globally. AACSB: Application of knowledge 2) In global markets, Starbucks is a good example of simultaneously executing all of the growth strategies except : A) market penetration. B) market development. C) product development. D) marke t orientation. E) diversification. Answer: D Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally. AACSB: Application of knowledge 3) Starbucks dropped the word "Coffee " from its logo. This is an example of: A) standardization. B) adaptation. C) diversification. D) automation. E) modernization. Answer: C Difficulty: 2: Moderate Chapter LO: 1.1: Use the p roduct/market growth matrix to explain the various ways a company can expand globally. AACSB: Application of knowledge

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    2 4) McDonald's developed a vegetarian burger in India. This is an example of: A ) market penetration. B) market development. C) market diversification. D) product development. E) product diversificatio n Answer: D Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally. AACSB: Application of knowledge 5) A fundamental difference between regular marketing and global marke ting is the: A) lack of marketing mix. B) scope of activities. C) lack of strategic planning. D) focus on resources. E) lack of communication. Answer: B Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally. AACSB: Application of knowledge 6) Starbucks is entering Italy in 2018, starting with a 25,000 - square - foot flagship Reserve Roastery in Milan. This is an example of: A) market development. B) product development. C) d iversification. D) market penetration. E) service diversification. Answer: A Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally. AACSB: Application of knowledge 7) Co mpanies doing business in China must take extra care to protect knockoffs. Answer: TRUE Difficulty: 1: Easy Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally. AACSB: Application of knowledge

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    3 8) Four decades ago, the phrase global marketing did not exist. A nswer: TRUE Difficulty: 1: Easy Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally. AACSB: Application of knowledge 9) A c ritical reason why companies need to take global marketing seriously is survival. Answer: TRUE Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to e xplain the various ways a company can expand globally. AACSB: Application o f knowledge 10) A fundamental difference between regular marketing and global marketing is the scope of activities. Answer: TRUE Difficulty: 1: Easy Chapter LO: 1.1: Use the pr oduct/market growth matrix to explain the various ways a company can expand globally. AACSB: Application of knowledge 11) Starbucks offers a loyalty card and rewards program in the United States with an app that displays a bar code that can be scanned by the customer. This is an example of market development. Answer: FALSE Diff iculty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally. AACSB: Analytical thinking 12) If Nestlé de cides not to market biscuits (cookies) in the United States due to competiti ve reasons, it is considered to have a lack of strategic focus and missed opportunity. Answer: FALSE Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matri x to explain the various ways a company can expand globally. AACSB: Analyti cal thinking

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    4 13) What is "global marketing" and how does it differ from "regular marketing"? Give examples of at least one major corporation that explains these differences. A nswer: Marketing is an organizational function and a set of processes for crea ting, communicatin g, and delivering value to customers. An organization that engages in global marketing focuses its resources and competencies on global market opportunities and threats. A fundamental difference between "regular marketing" and "global mar keting" is the sco pe of activities. A company that engages in global marketing conducts important business activities outside the home - country market. For example, as Walmart expands into Guatemala and other Central America countries, it is implementing a market development strategy. Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally. AACSB: Application of knowledge 14) Why do some of the world's biggest, most successfu l companies stumble while pursuing global opportunities? Give examples in support of your answer. Answer: Store locations, pricing, customer preferences, convenience, and unfamiliarity can cause successful companies to fail or not perform well in global m ar kets. Walmart's exit from the German market was due to the fact that German shoppers could find lower prices at "hard discounters" such as Aldi and Lidl. UK - based Tesco's attempts to enter the US market with its Fresh & Easy stores failed, in part, becau se US consumers were unfamiliar with the private - label goods that made up much of the merchandise stock. American "cheap chic" retailer Target terminated in Canada due to missteps in store location and pricing. Difficulty: 2: Moderate Chapter LO: 1.1: Us e the product/market growth matrix to explain the various ways a company can expand globally. AACSB: Application of knowledge 15) The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as: A ) Value = Price/Benefits. B) Value = Benefits/Price. C) Value = Benefits × Price. D) Value = Benefits - Price. E) Value = Benefits + Price. Answer: B Difficulty: 3: Challenging Chapter LO: 1.2: Describe how companies in global industries pursue competit iv e advantage. AACSB: Analytical thinking

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    5 16) Starbucks entered India via an alliance with the Tata Group. This is an example of "market penetration." Answer: FALSE Difficulty: 2: Moderate Chapter LO: 1.2: Describe how companies in global industries pur sue competitive advantage. AACSB: Analytical thinking 17) Nike dropped its well - known tag line "Just do it" in advertising women's clothing in Europe and replaced it with slogan "Here I am" since college - age women in Europe are not as competitive abou t sports as men are. Answer: TRUE Difficulty: 2: Moderate Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage. AACSB: Analytical thinking 18) The essence of marketing is to surpass the competition at the task of c reating perceived value. Answer: TRUE Difficulty: 2: Mode rate Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage. AACSB: Application of knowledge 19) The value equation is represented as Value = Price/Benefits. A nswer: FALSE Difficulty: 2: Moderate Chapter LO: 1.2: De scribe how companies in global industries pursue competitive advantage. AACSB: Application of knowledge 20) McDonald's global marketing strategy is based primarily on local marketing mix elements . Answer: FALSE Difficulty: 2: Moderate Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage. AACSB: Analytical thinking 21) Nonmonetary costs do not factor into the equation of value, which is represented by the e quation Value = Benefits/Price. Answer: FALSE Difficul ty: 2: Moderate Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage. AACSB: Application of knowledge 22) Tang drink powder became a $1 billion brand as regiona l managers in the Middle East added popular flavors like mango and pineapple. Answer: TRUE Difficulty: 1: Easy Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage. AACSB: Application of knowledge

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    6 23) When a compan y succeeds in creating more value for custom ers than its competitors do, that company is said to enjoy competitive advantage. Answer: TRUE Difficulty: 3: Challenging Chapter LO: 1.2: Describe how companies in global industries pursue competitive advanta ge. AACSB: Application of knowledge 24) The transformation of formerly local or national industries into global ones is part of a broader economic process of globalization. Answer: TRUE Difficulty: 3: Challenging Chapter LO: 1.2: Describe how companies in global industries pursue competitive adv antage. AACSB: Application of knowledge 25) The National Football League (NFL) promotes American football in the United Kingdom by draping banners every fall over London's Regent Street to create awareness of t he games. Answer: TRUE Difficulty: 3: Chal lenging Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage. AACSB: Application of knowledge 26) Explain, with examples, the benefits of competitive advantage and show how globalization presents companies with unpre cedented opportunities. Answer: When a company succeeds in creating more value for customers than its competitors, that company is said to enjoy "competitive advantage." It is measured relative to rivals in a gi ven industry. For example, Coca - Cola and Pep si are trying to maintain a competitive advantage in global markets. Globalization presents companies with unprecedented opportunities as well as challenges. Achieving competitive advantage in a global industry r equires executives and managers to maintain a well - defined strategic focus. Globalization provides companies with opportunities to develop new products, get new ideas, develop markets, expand brand recognition, and eventually profits. Difficulty: 2: Moder ate Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage. AACSB: Application of knowledge 27) The dimensions of global marketing strategy include all of the following except: A) concentration of marketing activities. B) development of cultural activities. C) coordination of marketing activities. D) integration of competitive moves. E) integration of marketing mix. Answer: B Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strat egy with global marketing st rategy (GMS). AACSB: Analytical thinking

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    7 28) The former chairman of Nestlé recently told an interviewer: "We are food and beverages. We are not running bicycle shops. Even in food, we are not in all fields. There are certain areas we do not touch. Also , we have no soft drinks because I have said we either buy Coca - Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically? A ) customer value B) competitive advantage C) focus D) myopia E) policy of dealing only with Swiss businesses Answer: C Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Analytical thinking 29) Nike recent ly adopted the slogan "Here I am" for its pan - European clothing advertising targeting women. The decision to drop the famous "Just do it" tag line was based on the research indicating that: A) the famous slogan did not have accurate translation in European languages. B) Europeans do not like tag lines that portray American thinking. C) college - age women in Europe are not as competitive about sports as men are. D) the old slogan conveys superiority of men over women. E) European women want to differentiate t hemselves from men. Answer: C Difficulty: 3: Challenging Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Analytical thinking 30) Burberry's global marketing strategy of offering "af f ordable luxury" to customers in the United States, with a value proposition of being more expensive than Coach and less expensive than Prada represents a focus on: A) product. B) price. C) promotion. D) position. E) place. Answer: B Difficulty: 3: Chall e nging Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Analytical thinking

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    8 31) The way a company addresses the global marketing strategy (GMS) includes all of the following except : A ) global market participation. B) integration of inflationary moves. C) integration of competitive moves. D) coordination of marketing activities. E) concentration of marketing activities. Answer: B Difficulty: 3: Challenging Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Analytical thinking 32) Coke's worldwide success is based on: A) adaptation of the marketing mix. B) standardization of the marketing mix. C) selected elements of the marketing mix. D) using local sales force and vending machines. E) using existing local infrastructure. Answer: A Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global market ing strategy (GMS). AACS B: Application of knowledge 33) U.S. President Donald Trump's "America First" agenda is just one example of the way some nations are retreating into protectionism and isolation. Answer: TRUE Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contras t single - country marketing strategy with global marketing strategy (GMS). AACSB: Application of knowledge 34) A disproportionate amount of wealth has flowed to the "have nots" and "have yachts," with much going to the "have nots." Answer: FALSE Difficul ty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Application of knowledge

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    9 35) Launching of Burberry Acoustic to enhance advocacy and sharing v ia social media and onlin e channels is an example of which marketing mix element? A ) product B) price C) promotion D) place E) people Answer: C Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Information technology 36) The success of Uniqlo's retail stores can be attributed to its decision to: A) remain in Japan. B) locate in high population density areas. C) locate in low population density areas. D) m anufacture most of their products in Japan. E) become the world's number one apparel retailer. Answer: B Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Analyt ical thinking 37) Marco Gobetti, who took over as Burberry's CEO in 2017, faces a number of new challenges including the declining of department store shopping in the United States. Answer: TRUE Difficulty: 2: Moderate Chapter LO: 1.3: Compare and cont rast single - country marketing str ategy with global marketing strategy (GMS). AACSB: Application of knowledge 38) A company that succeeds in global marketing: A) pursues a "one size fits all" strategy by creating identical products for homogeneous markets . B) customizes special products for each world country or region. C) creates both standardized and localized elements. D) nurtures an ethnocentric management orientation. E) uses localized products only. Answer: C Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - co untry marketing strategy with global marketing strategy (GMS). AACSB: Analytical thinking

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    10 39) An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans as well as the extent to which adaptation is desired. The way a company addresses this task is a reflection of the company's: A ) market penetration. B) market diversific ation. C) global marketing strategy. D) product development. E) product standardization. Answer: C Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Analytical t hinking 40) Companies that fail to formulate adequate responses to the challenges and opportunities of globali zation will face all of the following consequences except : A) getting absorbed by visionary enterprises. B) getting absorbed by dynamic enterpris es. C) becoming locally profitable enterprises. D) undergoing wrenching transformations. E) simply disappearing from the business horizon. Answer: C Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with glo bal marketing strategy (GMS). AACSB: Analytical thinking 41) Global economic growth has been a driving force for companies to expand globally due to all of the following reasons except: A) rising per capita incomes in developing countries. B) growing ranks of middle - class consumers have more money to spend. C) rapid growth in industrialized countries has provided new opportunities. D) economic growth has reduced resistance in response to entry into new markets. E) policymakers are likely to look more favorably on outsiders. Answer: C Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country m arketing strategy with global marketing strategy (GMS). AACSB: Analytical thinking

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    11 42) McDonald's Switzerland operates themed d ining cars on the Swiss National Rail System. This is globalization of which marketing mix element? A ) place B) promotion C) p rice D) process E) product Answer: A Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing str ategy with global marketing strategy (GMS). AACSB: Analytical thinking 43) McDonald's serves McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variation s are examples of a: A) combination of global and local marketing mix elements. B) reflection of failure of U.S. menu items in those countries. C) deviation from successful marketing practices. D) replacement of standard menu names with fancy names. E) sel ection of menu items that can be sold eventually in U.S. markets. Answer: A Difficulty: 2: Moderate Chapter LO: 1.3: Compar e and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Analytical thinking 44) All of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix except : A) McDonald's s tandardizes some product elements and adapts others. B) McDonald's standardizes some place elements and adapts others. C) McDonald's standardizes some promotion elements and adapts others. D) McDonald's standardizes some price elements and adapts others. E ) McDonald's standardizes all product elements. Answer: E Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Analytical thinking

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    12 45) Examples of effective globa l marketing by McDonald's include both standardized and localized marketing mix elements. Which of the following does not represent a localized element? A ) It serves McAloo Tikki potato burger in India. B) It uses the advertising slogan "I'm lovin' it." C) It operates themed dining cars on the Swiss national rail system. D) It has home delivery service in India. E) It has sl ang nicknames such as MakDo in the Philippines and McDo in France. Answer: B Difficulty: 2: Moderate Chapter LO: 1.3: Compare and co ntrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Analytical thinking 46) The regio n that leads in the World Pharmaceutical Market is: A) Europe. B) North America. C) Japan. D) Asia. E) Latin America. Answer: B Diffic ulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Application of knowledge 47) An industry is considered to be global to the extent that its industry position in one c ountry is dependent upon the industry position in other countries. Answer: FALSE Difficulty: 2: Modera te Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Application of knowledge 48) A company with a geocentric orientation views the world as a potential market and strives to develop int egrated global strategies. Answer: TRUE Difficulty: 3: Challenging Chapter LO: 1.3: Compare and contrast single - country marketing strategy with globa l marketing strategy (GMS). AACSB: Application of knowledge

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    13 49) McAloo Tikka potato burger offered i n India is an example of standardization. A nswer: FALSE Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strateg y with global marketing strategy (GMS). AACSB: Application of knowledge 50) What are the dimensions of global marketing strategy (GMS) that pertain to marketing management? Answer: GMS has three dimensions that pertain to marketing management. First, "c oncentration of marketing activities" such as promotional campaigns or pricing decisions is performed in one or a few country locations. The second, "coordination of marketing activities," refers to the extent to which marketing activities related to the m arketing mix are planned and executed interdependently around the globe. Finally, "integrat ion of competitive moves" is the extent to which a firm's competitive marketing tactics in different parts of the world are interdependent. In essence, GMS should en hance the firm's performance on a worldwide basis. Difficulty: 2: Moderate Chapter LO: 1. 3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Application of knowledge 51) Why is it important for a firm to have global marketing strategy? Answer: A firm's global marketing strategy (GMS) can en hance its worldwide performance. The GMS addresses several issues. First is the nature of the marketing program in terms of the balance between a standardized (exten sion) approach to the marketing mix elements and a localized (adaptation) approach that is responsive to country or regional differences. Second is the concentration of marketing activities in a few countries or the dispersal of such activities across many countries. Companies that engage in global marketing can also engage in coordination of ma rketing activities. Finally, a firm's GMS addresses the issue of global market participation. Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Application of knowledge

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    14 52) The Coca - Cola Company has convincingly demonstrated that the ability to think globally and act locally can be a source of competitive advantage. Justify this statement using examples. A nswer: Coke achieved success in Japan by spending a great deal of time and money to become an insider. The company built a complete local infrastructure with its sales force and vending machine operations. Coke's success i n Japan is a function of its ability to achieve "global localization," b eing as much of an insider as a local company but still reaping the benefits of worldwide operations. The company is adept at adapting sales promotion, distribution, and customer servi ce efforts to local needs. Coke has become one of the brands that have s pent time and money getting this experience in unknown territories. Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global market ing strategy (GMS). AACSB: Application of knowledge 53) Using McDonald 's as an example, show how effective global marketing can be successfully achieved. Answer: The particular approach to global marketing that a company adopts will depend on industry c onditions and its source or sources of competitive advantage. McDonald's standardized product is Big Mac which is localized in various countries, such as McAloo Tikka Burger in India. Similar products with local slang names were used adapting to tastes in different countries. For promotion the standardized slogan "I'm lovin' i t" is used whereas individual promotion is used in different countries. Freestanding restaurants are a standardized version, which is localized in several countries by having kiosks or home delivery. Similarly, the average price of Big Mac is used as a sta ndard which is localized on the basis of currency fluctuation and affordability. Difficulty: 2: Moderate Chapter LO: 1.3: Compare and contrast single - country marketing strategy with global marketing strategy (GMS). AACSB: Application of knowledge 54) W hen a global company establishes a benchmark in quality, competitors must quickly make their own improvements and come up to par. Justify the statement giving examples. Answer: Starti ng in the 1960s, U.S. auto manufacturers saw their market erode as Japan ese carmakers built strong reputations based on their products' quality and durability. In turn the U.S. companies are making great strides in quality. A new threat is being faced due to the introduction of Tesla's all - electric cars which have frequently b een at or near the top of the quality and safety rankings for several years. Thus the global companies can establish a benchmark when other companies try to compete. Difficulty: 2: Mo derate Chapter LO: 1.3: Compare and contrast single - country marketing s trategy with global marketing strategy (GMS). AACSB: Application of knowledge

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