MKT Chapter 19

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1. 13. (p. 639) Which of the following factors is limiting growth opportunities
in the U.S. market for many companies?
A. Huge population growth
B. Saturated markets for many products and services
C. Low competition from domestic companies
D. Low competition from foreign companies
E. Large markets for foreign products: B
2. 14. (p. 639) Many tobacco companies and breweries in the U.S. are focusing
their efforts on international markets to sustain growth because of:
A. high population growth, which leads to an unfavorable market environ-
ment.
B. the unsaturated domestic market, which leaves little possibility for expan-
sion.
C. declining domestic consumption as a result of restrictions on their mar-
keting and advertising efforts.
D. the saturated markets in foreign countries.
E. the high competition prevalent in foreign markets.: C
3. 15. (p. 640) Had globalization not occurred, most European companies
would not have been able to compete against larger U.S. and Japanese
companies because of:
A. the lack of funds among Europeans.
B. the inability to achieve economies of scale owing to the small size of most
of the European nations.
C. the lack of education about international markets.
D. the cultural differences prevailing amongst nations.
E. the political and legal differences amongst the nations: B
4. 16. (p. 640) Swiss-based Nestlé and Netherlands-based Unilever are two of
the world's largest consumer-product companies as a result of:
A. the favourable climatic conditions prevailing in the countries.
B. the large population existing in these countries.
C. the intense competition they face from domestic companies.
D. their ability to market their brands to consumers around the world.
E. their concentration on domestic markets and minimal expansion to inter-
national markets: D
5. 17. (p. 641) The difference between the monetary value of a nation's exports
and imports is its:
A. added value.
B. international trade.
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C. balance of trade.
D. balance of payments.
E. value of exports.: C
6. 18. (p. 641) A balance of trade deficit exists when the:
A. value of imports exceeds that of exports.
B. value of exports exceeds that of imports.
C. supply of imports exceeds the demand for them.
D. the value added by the exporting nation exceeds that added by the
importing nation.
E. the value of exports and imports are about equal.: A
7. 19. (p. 641) The U.S. has been experiencing a continuing balance of trade
____. This _____ the importance of international marketing efforts by U.S.
companies.
A. surplus; increases
B. surplus; decreases
C. deficit; increases
D. deficit; decreases
E. increase; increases: C
8. 20. (p. 642) The part of a firm's marketing functions that is the most visible
to consumers as well as the most culture-bound is its:
A. pricing.
B. promotion.
C. product development.
D. distribution.
E. inventory management.: B
9. 21. (p. 642) Which of the following is an example of a major external
environmental factor that a company must consider when analyzing the
international marketing environment?
A. economic factors
B. product factors
C. promotional factors
D. pricing factors
E. advertising factors: A
10. 22. (p. 643) Which of the following is a part of the economic environment
of a foreign country?
A. Language
B. Values and ethics
C. Currency stability
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D. Size of population
E. Education levels: C
11. 23. (p. 643) Which of the following is a cultural factor affecting internation-
al marketing?
A. Currency stability
B. Lifestyles
C. Distribution of wealth
D. Nationalism
E. Government policies: B
12. 24. (p. 643) _____ is an example of a cultural factor affecting international
marketing.
A. Laws
B. Currency stability
C. Income levels
D. Language
E. Government regulations: D
13. 25. (p. 643) Which of the following forms a part of the demographic
environment of a country?
A. Age distribution
B. Distribution of wealth
C. Lifestyles
D. Norms and customs
E. Exchange rates: A
14. 26. (p. 643) The communications, transportation, financial and distribu-
tion networks of a country are part of its:
A. political/legal environment.
B. cultural environment.
C. economic infrastructure.
D. demographic environment.
E. international interface.: C
15. 27. (p. 643) For companies wishing to enter a new market, a country's
economic conditions indicate its ____, since products and services can be
sold only to countries where there is enough income to buy them.
A. size of population
B. attitudes towards multinationals
C. cultural norms and values
D. present and future potential for consuming
E. occupation distribution: D
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16. 28. (p. 643) When the CEO of International Partners, Ltd. was in Katmandu,
the capital of Nepal, he found that 90 percent of his telephone calls didn't
connect to the party he was calling. This represents a problem with Nepal's:
A. demographic environment.
B. economic infrastructure.
C. balance of payments.
D. cultural system.
E. advertising system: B
17. 29. (p. 643) A U.S. executive in Namibia in Africa experienced trouble
negotiating a franchise deal with local investors because the electricity
was constantly shutting off. One of the investors was unable to attend the
meeting because there is so little public transportation in the country. These
problems indicate a problem with Namibia's:
A. demographic environment.
B. economic infrastructure.
C. balance of payments.
D. cultural system.
E. advertising system.: B
18. 30. (p. 644) China and India in particular are two countries that are
transforming the global economy. One of the main reasons for this is:
A. high population growth rate.
B. lack of savings habit among the nations.
C. less demand and needs.
D. lower economic growth rates.
E. lack of demand for luxury items.: A
19. 31. (p. 645) Factors such as size of the population, age distribution,
education, and income levels are part of a country's _____ characteristics.
A. economic
B. demographic
C. cultural
D. political/legal
E. lifestyle: B
20. 32. (p. 645) In the past few years, international toy manufacturers have
been targeting the South American market as a result of the growth in the
youngest segment of the population. Which of the following factors has
influenced this decision?
A. Psychographic factors
B. Geographic factors
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C. Demographic factors
D. Cultural factors
E. Legal factors: C
21. 33. (p. 645) A U.S. exporter of baby furniture is planning to export its
products to another country. The company wants to know how many people
are in the Full Nest I stage of the family life cycle in that country. This type of
information is part of a nation's _____ environment.
A. economic
B. demographic
C. cultural
D. political/legal
E. lifestyle: B
22. 34. (p. 645) _____ variables marketers must consider include language,
customs, tastes, attitudes, lifestyles, values, and ethical/moral standards.
A. Demographic
B. Economic
C. Political
D. Cultural
E. Legal: D
23. 35. (p. 645) The Polaroid Corporation encountered great problems when
it attempted to market instant cameras in France. The French consumer saw
little need for having a picture developed instantly. This indicates Polaroid
did not understand the French _____ environment.
A. demographic
B. economic
C. cultural
D. political/legal
E. media: C
24. 36. (p. 645) Variables such as language, customs, tastes, values and
lifestyles are part of a country's:
A. cultural environment.
B. infrastructure.
C. demographic environment.
D. regulatory environment.
E. political/legal environment.: A
25. 37. (p. 645) _____ factors of the international environment probably create
more problems for advertisers than any others since they directly impact the
ability to communicate effectively with consumers in foreign countries.
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A. Demographic
B. Economic
C. Cultural
D. Political
E. Marketing mix: C
26. 38. (p. 645) Most Asian women are shy about their bodies. This would be
important _____ information to a company like Victoria's Secret as it expands
into Korean markets.
A. demographic
B. economic
C. cultural
D. political
E. infrastructure: C
27. 39. (p. 645) To market on the Belgian home shopping channel, advertis-
ers have to prepare programs in Flemish (a version of Dutch), Dutch and
German because all three languages are commonly spoken in Belgium. This
language difficulty represents a _____ problem for a U.S. company trying to
sell its products on the Belgian home shopping channel.
A. demographic
B. economic
C. infrastructure
D. political
E. cultural: E
28. 40. (p. 645) A delivery service must understand that as a result of _____
differences, Europeans are not as time-sensitive as Americans, and Asians
are even less time-sensitive than Europeans.
A. economic
B. demographic
C. political
D. cultural
E. infrastructure: D
29. 41. (p. 646) The only South American country where Coca-Cola is not
the market leader is Peru, where local tastes prefer Inca Kola. Inca Kola is
golden-yellow in color and tastes like banana-flavored bubble gum. Which
environmental factor is most responsible for the fact Coca-Cola does not
sell well in Peru?
A. Economic
B. Demographic
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C. Political
D. Cultural
E. Infrastructure: D
30. 42. (p. 647) In France, cosmetics are used heavily by men as well as
women and advertising directed to the male market is common. Consumers
in the U.S. are heavier users of personal hygiene products such as deodor-
ants and mouthwashes. These are examples of _____ differences that affect
consumption patterns.
A. demographic
B. economic
C. cultural
D. regulatory
E. generic: C
31. 43. (p. 647) _____ refers to the tendency of individuals to view their own
group or society as the center of the universe.
A. Central perception
B. Halo effect
C. Origin-of-country effect
D. Ethnocentrism
E. Xenocentrism: D
32. 44. (p. 647) Which of the following statements about cultural values is
true?
A. In today's globalized market, cultural differences are negligible.
B. The values and beliefs of a society can affect its members' receptivity
toward foreign products and services.
C. Cultural values are personal values and are only applicable on an individ-
ual level.
D. A highly ethnocentric culture will be extremely receptive to foreign prod-
ucts.
E. Cultural values have no effect on the market or consumer behavior.: B
33. 45. (p. 647) A beverage company entered a new market in which it saw
great potential. However, though its products matched those of local com-
petitors in quality and price, sales were sluggish. The company realized that
consumers believed that the local brands were better just because they were
local. It had failed to account for the _____ of the consumers during the
planning process.
A. demographics
B. ethnocentrism
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C. pluralism
D. cultural relativism
E. xenocentrism: B
34. 46. (p. 647) In the U.S., promotions for Agile Sports products emphasize
individualism and independence. In Japan, however, the company had to
change its message to one that focused on team values and cooperation,
due to the differing _____ in the two countries.
A. demographics
B. religious beliefs
C. cultural values
D. ethics
E. lifestyles: C
35. 47. (p. 648) U.S. brands have become popular in many other European
countries as well as in Asia. Marketers attribute the rising popularity of many
U.S.-made products to:
A. the increased familiarity of foreign nationals with American culture, val-
ues, and lifestyles.
B. their superior quality.
C. the low prices of the products.
D. the centralized organizational approach adopted by most U.S companies.
E. the increasingly ethnocentric attitude of the consumers around the world.-
:A
36. 48. (p. 649) Chinese values are centered around ____, which stresses
loyalty and interpersonal relationships.
A. ethnocentrism
B. Confucianism
C. the country-of-origin effect
D. the halo effect
E. xenocentrism: B
37. 49. (p. 650) To reach out to the youth market in the Middle East, Coca-Cola
and Pepsi have:
A. pressured area governments into creating a single set of laws on advertis-
ing in the Middle East and established strict policies for their enforcement.
B. called for each Middle Eastern country to determine its own policies on
advertising regulation.
C. used a variety of IMC tools including sponsorships and branded entertain-
ment.
D. emphasized their association with America and American foreign policies.
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E. targeted parents because of their strong influence on teenagers' con-
sumption preferences: C
38. 50. (p. 650) An American sporting goods manufacturer wanting to sell on
the Belgian home shopping channel would find that different laws govern
the people who live in the Flemish communities, the German communities
and the French communities that exist in the nation. For instance, in the
French-speaking community of Walloon in Belgium, the home shopping
channel is legal. It is an illegal operation, however, in Flanders, the area of the
country where Flemish is spoken. This is an example of how _____ factors
affect global marketing.
A. economic
B. demographic
C. political/legal
D. cultural
E. infrastructure: C
39. 51. (p. 650) Since the European Union banned the use of food dyes in
seafood, the salmon market has suffered. People mistakenly believe that
salmon is naturally pink. Unfortunately, salmon is an unappetizing gray
color. This is an example of how _____ factors can inadvertently hurt small
businesses.
A. economic
B. demographic
C. political/legal
D. geographic
E. infrastructure: C
40. 52. (p. 650) Diet Coke is known as Coca-Cola Light in Germany, France
and many other countries because these countries have legal restrictions
prohibiting the use of the word diet. This is an example of how _____ factors
affect global marketing.
A. economic
B. demographic
C. political/legal
D. cultural
E. infrastructure: C
41. 53. (p. 651) _____ is a strategy of advertising in which certain banned
products are indirectly advertised by labeling a non-banned product with a
familiar logo so as to develop brand image and easy recall.
A. Aerial advertising
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B. Transit advertising
C. Surrogate advertising
D. Cross-selling
E. Ethnocentrism: C
42. 54. (p. 651) The UB Group named its airline business Kingfisher, after its
popular beer brand of the same name. This is one of the most successful
examples of ____. The extension of the Kingfisher brand to the airline gave
a great push to the original category, beer, which cannot be advertised in
many parts of the world.
A. ethnocentrism
B. subliminal perception
C. aerial advertising
D. surrogate advertising
E. puffery: D
43. 55. (p. 652) _____ is a marketing approach that assumes that the needs
satisfied by a product or service and the way it is used are the same
everywhere in the world, and therefore utilizes a common approach in all
countries.
A. Global marketing
B. Complementary marketing
C. Localized marketing
D. Nationalized marketing
E. Countertrading: A
44. 56. (p. 652) The concept of ______ deals with all elements of a firm's
marketing mix while the concept of _____ deals specifically with the com-
munication aspect of marketing.
A. global marketing: global advertising
B. global advertising: standardization
C. global advertising: global marketing
D. standardization: global marketing
E. adaptation: standardization: A
45. 57. (p. 652) _____ was the marketing scholar who popularized the concept
of global marketing.
A. Phillip Kotler
B. John Naisbitt
C. Theodore Levitt
D. Peter Drucker
E. Robert Holloway: C
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46. 58. (p. 653) Production standardization leads to:
A. high production costs.
B. lower prices of products.
C. lower marketing efficiency.
D. increased competition.
E. higher lead times.: B
47. 59. (p. 656) British Airways believes it is very difficult to differentiate
itself from other major airlines on the basis of schedules, routes and price.
However, the airline thinks it can be differentiated on the basis of service and
has decided to focus much of its effort on image advertising using the theme
"The World's Favorite Airline". Which of the following is correct regarding
this type of advertising campaign?
A. This campaign will definitely require a localized approach with different
ads for each country.
B. This campaign could easily be adapted to a global campaign since the
focus is on service and image, which are easily understood by airline pas-
sengers in all countries.
C. This campaign will require a localized strategy since perceptions of ser-
vice will definitely be different among airline passengers in every country.
D. British Airlines should forget the service campaign and focus on price
since international flights are chosen on a price basis.
E. The campaign will definitely fail as 'service' is intangible.: B
48. 60. (p. 656) For which of the following will worldwide appeals NOT be
appropriate?
A. Brands or messages that have great visual appeal
B. Image campaigns that play to universal needs, values, and emotions.
C. High-tech products and new products
D. Products that evoke the country-of-origin effect
E. Products that are steeped in cultural traditions and significance: E
49. 61. (p. 657) Products such as Swiss watches, German automobiles and
French wines are automatically assumed to be superior to similar products
from other countries because:
A. they are all high-tech products.
B. they appeal to market segments with universal tastes and interests.
C. they come from countries that have strong reputations for making these
products.
D. they can be advertised using totally visual appeals.

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E. they appeal to a market segment with universally similar tastes, interests,
needs, and values.: C
50. 62. (p. 657) Products from countries with national reputations for quality
and/or a distinctive image that can be used as the basis for global advertising
capitalize on the:
A. ability to cross-sell.
B. country-of-origin effect.
C. customary and accepted perception.
D. self-regulation of global images rule.
E. Central Hudson test.: B

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