e

1) Japan is Coach's second largest market, representing about 20% of global sales. All of the
following statements are true regarding the market for Coach's products compared to that in
America except:
A) Japanese consumers are enormously brand-centric.
B) Japanese consumers are not as brand loyal as American consumers.
C) American women tend to carry two or three brands while their Japanese counterparts tend to
carry as many as five.
D) The company's $500 handbags are especially popular with young women.
E) Coach has to work on improving its brand image in Japan.
e
2) The music industry's use of big data shows how information about buyer behavior and the
overall business environment is vital to effective managerial decision making. All of the factors
listed below facilitate decision making for music industry except:
A) Musicians can interact with fans via social networks.
B) Big data allows record executives and band managers to find patterns and discern market
trends.
C) Big data allows executives to see what factors "move the needle" across a variety of metrics.
D) Data analytics permit record company executives to overlay information about an artist's
appearance on a TV show.
E) Big data helps in increasing revenues from paid downloads.
b
3) One of the key advantages of an EDI (Electronic Data Interchange) system is:
A) it allows easy access to all company data to vendors.
B) its transaction formats are universal.
C) it allows third-party transmission connections to company data.
D) it saves both time and money by using different languages.
E) vendors receive orders by voice mail.
d
4) An ________ system allows a company's business units to submit orders, issue invoices, and
conduct business electronically with other company units as well as outside companies.
A) Internet
B) intranet
C) ECR
D) EDI
E) EPOS
c
5) An ________ is a company's private data network, accessible only by authorized persons
inside the organization.
A) EDI
B) Internet
C) intranet
D) EPOS
E) ECR
b
6) Which of the following is an IT tool designed specifically to help retailers work more closely
with vendors on stock replenishment?
A) BOLD
B) ECR
C) data warehouse
D) projection
E) EDI
b
7) Which of the following can be defined as a business philosophy that values two-way
communication between a company and individual customers?
A) ECR
B) CRM
C) EDI
D) EPOS
E) BOLD
c
8) CRM tools allow companies such as Credit Suisse, AT&T, Hewlett-Packard and others to
determine:
A) warranty of products sold to consumers.
B) amount paid by consumers in different countries.
C) which customers are most valuable.
D) the use of credit cards for payment.
E) the use of laptop computers by customers.
a
9) One challenge of using CRM is:
A) integrating data into customer relationship.
B) knowing amount paid by consumers in different countries.
C) understanding which customers are most valuable.
D) assessing the use of credit cards for payment.
E) knowing the use of laptop computers by customers.
c
10) Direct sensory perception provides a vital background for the information that comes from
human and documentary sources since:
A) it provides secondhand information.
B) it is easy and the most economical way of collecting data.
C) it means firsthand seeing, feeling, hearing, smelling, and tasting.
D) it involves reading and reviewing documents.
E) top executives are involved in getting firsthand information.
c
11) CRM tools does not help companies in determining:
A) warranty of products sold to consumers.
B) amount paid by consumers in different countries.
C) which customers are very demanding.
D) the use of credit cards for payment.
E) the use of laptop computers by customers.
e
23) Although environmental scanning is a vital source of information, research has shown that
headquarters executives of global companies obtain as much as two-thirds of the information
they need from:
A) government publications.
B) professional publications.
C) trade publications.
D) census data.
E) personal sources.
e
24) Which of the following environmental factors may require marketers to adjust their approach
to conducting international as opposed to domestic marketing research?
A) Researchers must be prepared for new parameters of doing business.
B) Company personnel must come to grips with a new set of culture-based assumptions about
conducting business.
C) Research may help reduce psychological overload.
D) Researchers may have to broaden the definition of competitors to include competitive
pressures not present in the domestic market.
E) All of the above
c
25) A vice president of a shoe company was in India to assess the market. He found that many
people in the southern part of India were walking bare footed. This can be indicative of either the
fact that there is a potential market for shoes or there is no market for shoes in that part of the
world. To formally confirm one instinct or the other the vice president should:
A) establish an office to start manufacturing shoes in India.
B) give free shoe samples to a selected group of customers.
C) conduct research to find potential and actual customers.
D) find out if that is true for other Asian countries.
E) give up the idea of doing business in India.
c
32) When Mattel first introduced Barbie in Japan, managers assumed that Japanese girls would
find the doll's design just as appealing as American girls did. This may be due to:
A) Barbie's physical features such as long legs and blonde hair.
B) Barbie being a symbol of American lifestyle.
C) the SRC tendency on the part of American managers.
D) the SRC tendency on the part of Japanese consumers.
E) the limited competition for dolls in Japan.
e
34) Anyone undertaking a market research project should understand that the first step is:
A) setting the budget.
B) determining the methodology to use.
C) deciding who will see the final report.
D) defining the problem.
E) determining the information requirement.
e
35) For consumer products, qualitative research is especially well suited to:
A) get close to the consumer.
B) describe the cultural context of consumer behavior.
C) identify core brand equity.
D) identify what people really feel.
E) all of the above
e
36) The unit of analysis can be a single country or region; however, for all market-entry
decisions ________ data are not required.
A) specific city
B) statewide
C) provincial
D) district wise
E) country wide
a
37) The U.S. government's most comprehensive source of world trade data is:
A) National Trade Data Base (NTDB).
B) Census Bureau.
C) Bureau of Economic Analysis.
D) Eurostat.
E) Gross Domestic Product (GDP).
a
38) According to the Global Market Research Reports, data for Chinese markets are available
for:
A) cosmetics.
B) online music.
C) whiskies.
D) luxury goods.
E) pharmaceutical.
c
39) Potential markets can be subdivided into:
A) latent and parallel markets.
B) existing and incipient markets.
C) latent and incipient markets.
D) existing and latent markets.
E) incipient and existing markets.
e
40) Marketers must be aware of the impact of SRC and other cultural assumptions since:
A) it can have several positive effects on market planning.
B) it enhances management's willingness to pursue market research.
C) it can help ensure that the research effort is designed with minimal home-country bias.
D) it can help ensure that the research effort is designed with minimal second-country bias.
E) All of the above are correct.
b
41) Which of the following is not true of secondary data about global markets?
A) It was not gathered specifically for the research project at hand.
B) It is often so expensive that small companies can't afford to use it.
C) It can be accessed quickly.
D) A great deal is available from government agencies.
E) It cannot be retrieved online.
b
42) Harley-Davidson celebrated its 110th anniversary in 2013. The company grew impressively
during its century of operations. All of the following mentioned facts regarding the company are
true except:
A) the company's international success came after years of neglecting overseas markets.
B) the company reacted swiftly to a growing threat from Japanese manufacturers.
C) early on, the company used an export-selling approach.
D) early on, it had an underdeveloped dealer network.
E) after the 1980s, they recruited dealers in the important Japanese markets.
e
43) Which of the following correctly reflects marketing expert David Arnold's recommendations
for companies engaged in global market research?
A) use multiple indicators
B) develop customized measures specific to an industry or product
C) conduct comparative assessments in neighboring countries
D) observation should be weighted more heavily than statements of purchase intention
E) all of the above
e
44) Which of the following is not recommended by expert David Arnold for companies engaged
in global market research?
A) use multiple indicators
B) develop customized measures specific to an industry or product
C) conduct comparative assessments in neighboring countries
D) observation should be weighted more heavily than statements of purchase intention
E) assess a particular market in isolation
d
45) For consumer products, qualitative research is especially well suited to accomplish all of the
following tasks except:
A) provide consumer understanding.
B) describe the social and cultural context of consumer behavior.
C) identify core brand equity and brands.
D) assess consumer spending trends.
E) what consumers really feel.
a
46) The decision by Toyota executives to introduce the Sienna minivan in the U.S. market was
based on their study of a(n) ________ market.
A) existing
B) latent
C) parallel
D) incipient
E) global
b
47) The international marketing manager of an office furniture company ordered a research
report on global telecommunications equipment sales. The report noted that, in the early 1990s,
AT&T was awarded a $4 billion contract to provide communication network products and
services in Saudi Arabia. The manager took this as a cue to put Saudi Arabia on her information
agenda, reasoning that office furniture sales would increase as the country's telephone system
was improved. As described here, the marketing manager is viewing Saudi Arabia as a(n):
A) latent market.
B) incipient market.
C) cluster market.
D) existing market.
E) primary market.
d
48) Predicting economic and income growth rates is particularly important when researching
which type of market?
A) existing markets
B) latent markets
C) parallel markets
D) incipient markets
E) local markets
e
49) When a survey questionnaire in English is translated into Korean for use in South Korea and
then translated back into English to check its accuracy, it is described as:
A) incipient translation.
B) comparative translation.
C) native translation.
D) parallel translation.
E) back translation.
e
50) Tools that can be used for collecting primary data include:
A) survey research and interviews.
B) consumer panels and observation.
C) focus groups and survey research.
D) interviews and observation.
E) all of the above
e
52) Emerging markets present a number of challenges to anyone conducting market research,
which includes all of the following except:
A) underdeveloped technology infrastructure.
B) geographic issues.
C) data-gathering methodologies.
D) privacy issues.
E) lack of field teams.
c
55) Manufacturers of Splenda, a low-calorie sugar substitute, wanted to arrange a focus group to
find out its use in different markets. Open-ended questions were used in order to secure the
unconscious attitudes and biases held by the subjects. This type of technique is known as:
A) scaling technique.
B) qualitative technique.
C) projective technique.
D) reactivity technique.
E) MDS technique.
d
56) In Singapore, Coca-Cola wanted to develop an advertisement program. They selected a
group of teenagers and a trained moderator facilitated discussion asking questions related to
brand's image, advertisement, social trends, TV watching habits, and snack usage. This type of
research is called:
A) survey research.
B) observational studies.
C) comparison studies.
D) focus group research.
E) experimental research.
a
57) In Mexico City, only 55-60% of the population owns a telephone. The number drops to less
than 50% in Guadalajara and Monterey, and 35% or lower in other cities. This will complicate
the task of market researchers hoping to use a telephone survey to obtain a ________ of the
Mexican population.
A) probability sample
B) convenience sample
C) secondary sample
D) focus group sample
E) quota sample
c
70) Suppose Apple has collected extensive survey data about its new iPhone, and respondents
have rated it on 20 different features and benefits. Now researchers want to reduce the amount of
data to a few underlying dimensions. Which data analysis technique should the researchers use?
A) analogy
B) conjoint analysis
C) factor analysis
D) multidimensional scaling
E) cluster analysis
b
72) When consumers have difficulty in verbalizing their perceptions, and there are different
alternative brands of toothpaste, what is the best method of judging them in terms of similarity?
A) cluster analysis
B) MDS
C) dependence techniques
D) factor loading
E) focus group
e
73) Campbell is the world's largest soup company, commanding about 80% of the U.S. canned
soup market. However, the company has a presence in only 6% of the world's soup markets.
Russians eat 32 billion servings of soup each year, and the Chinese consume 300 billion! By
contrast, Americans eat 15 billion servings each year. Sensing a huge opportunity, Campbell has
dispatched teams to observe Russian and Chinese habits. This type of interpretation and decision
is based on:
A) demand pattern analysis.
B) income elastic analysis.
C) time series displacement.
D) polycentrism.
E) comparative analysis.
c
74) A market researcher who uses multidimensional scaling (MDS) will:
A) attempt to estimate market size by analogy.
B) ask respondents to rate a particular product or brand in terms of multiple characteristics or
attributes.
C) ask respondents to evaluate product or brand pairs in terms of similarity.
D) attempt to determine the combination of product features that create the greatest utility for
consumers.
E) conduct a focus group.
d
87) In India, only about 10% of men who shave use Gillette razors. Worldwide, 50% of male
shavers use Gillette products. To achieve greater penetration in India, Gillette rolled out a no-
frills brand that costs 15 rupee ---- about 34 cents. The Gillette Guard has a lighter handle that is
cheaper to produce. It also lacks the lubrication strip found in Gillette's more expensive razors,
and replacement blades cost only 5 rupees (11 cents). This use of data and process are described
as:
A) demand pattern analysis.
B) income elastic analysis.
C) factor analysis.
D) market estimation by analogy.
E) multidimensional scaling.
e
88) According to David Arnold, there are four possible approaches to forecasting by analogy,
which does not include which of the following?
A) Data is available on a comparable product in the same country.
B) Data is available on the same product in a comparable country.
C) Data is available on the same product from a dependent distributor in a neighboring country.
D) Data is available about a comparable company in the same country.
E) Data is available on the same product in every country.
b
89) Which of the following is true about etic and emic approaches to country analysis?
A) The etic and emic approaches are identical.
B) An emic approach studies a culture from within; etic analysis is "from the outside."
C) An emic approach studies a culture "from the outside"; etic analysis studies a culture from
within.
D) The emic/etic distinction is not useful in cultural studies.
E) The emic/etic approaches cannot be applied to Asian countries.
d
90) A market research study of soft drink consumption and distribution in Hungary
commissioned by an American company indicated that soft drinks were available in drugstores.
However, Western-style drugstores do not exist in Hungary. This illustrates an important issue in
global marketing research, namely:
A) inflated data.
B) using convenience samples.
C) market estimation by analogy.
D) comparability of data.
E) using multiple dimensional scaling.
c
91) Whirlpool conducts usability studies that provide insight into the ways consumers interact
with its products. In one study in an emerging market, engineers and designers stood behind a
two-way mirror and watched as a volunteer put groceries away in a Kenmore Elite refrigerator.
The Whirlpool team recorded a variety of data, such as the amount of time required for the
volunteer to finish the task and the number of features used. The basis of this research study was
based on the fact that:
A) listening to customers is only possible in America.
B) data collected in the United States should be applicable in other countries.
C) consumers in different countries prefer different types of features.
D) in China, it will be difficult to find enough space in homes to put a refrigerator.
E) in India, refrigerators are seldom used by customers.
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b
31) The first step in formulating and conducting research is to:
A) define the problem.
B) collect information.
C) select unit of analysis.
D) examine data availability.
E) design research.
a
33) Which of the following lists some of the steps in the market research process in the correct
order?
A) determine information requirement→problem definition→choose unit of analysis→examine
data availability→assess value of research
B) problem definition→assess value of research→determine information requirement→choose
unit of analysis→examine data availability
C) examine data availability→problem definition→choose unit of analysis→assess value of
research→determine information requirement
D) choose unit of analysis→assess value of research→problem definition→determine
information requirement→examine data availability
E) examine data availability→assess the value of research→problem definition→presentation
a
51) When a trained person is recording the items selected in a grocery cart or basket, the research
method is known as:
A) observation.
B) survey research.
C) focus study.
D) secondary data collection.
E) personal interviews.
e
53) A marketer of breakfast cereals might send researchers to preselected households at 6 A.M.
to watch families go about their morning routines. The client could also assign a researcher to
accompany family members to the grocery store to record their behavior under actual shopping
conditions. This type of research method is considered as:
A) focus group.
B) invasion of privacy.
C) consumer panel study.
D) factor analysis.
E) observation.
a
54) When the Coca-Cola Company convened focus groups in Europe and Asia to assess potential
market acceptance of a contoured aluminum soft drink can, it was attempting to collect
________ data.
A) primary
B) secondary
C) incipient
D) quantitative
E) MIS
e
71) One study of adult involvement in household tasks revealed greater similarities between the
United Kingdom and the United States compared with France, Belgium, and French Canada.
Thus, the United States and United Kingdom were "twins" based on common language. This
study is an example of:
A) market latency.
B) conjoint analysis.
C) factor analysis.
D) multidimensional scaling.
E) cluster analysis.
e
2) The efforts of global companies to reach low-income consumers in emerging markets
highlight the importance of skillful global market segmentation and targeting. Market
segmentation represents:
A) targeting prospective customers.
B) finding customers who can respond to advertisement.
C) promoting products and services internationally.
D) identifying customers who can help in promoting products.
E) identifying customers based on common characteristics.

c
3) When identifying global market segments, a fundamental guiding principle should be the need
to determine:
A) shared demographic characteristics.
B) similar languages.
C) similar needs and buying behavior.
D) similar ethnic backgrounds.
E) similar geographic regions.

c
4) Demographic segmentation is based on measurable characteristics of populations which
includes all of the following examples except:
A) Asia is home to 500 million consumers aged 16 and younger.
B) India has more than half of the population younger than 25.
C) Consumers that buy Porsches would like to be noticed.
D) The United States is home to 28.4 million foreign-born residents with combined income of $
233 billion.
E) In the EU, the number of consumers aged 16 and under is rapidly approaching consumers
aged 60.

a
5) Global marketing authority, Theodore Levitt, has noted that many ethnic and regional foods-
sushi, for example-are enjoying popularity in many countries of the world. This observation is
known as the:
A) pluralization of consumption.
B) ethnicitization of consumption.
C) democratization of consumption.
D) sophistication of consumption.
E) domestication of consumption.

c
6) A. Coskun Samli had developed a useful approach to global market segmentation that
compares and contrasts "conventional" versus "unconventional" wisdom. An example of
unconventional wisdom can be identified with one of the following assumptions:
A) Since per capita annual income in India is about $1,420, all Indians have low income.
B) Consumers in Europe and Latin America are interested in World Cup soccer whereas
Americans are not.
C) There is a presence of a higher-income, middle-class segment in India.
D) The potential customer base for McDonald's in India is greater than in any developed country.
E) There is no running water and electricity in India.

c
8) Based on 2013 projections, the top 10 nations ranked by per capita income does not include:
A) Switzerland.
B) Qatar.
C) Russia.
D) Norway.
E) Australia.

c
9) Ericsson, IKEA, Saab, and other companies based in Sweden have looked beyond their
borders for significant growth market because:
A) Sweden has high total annual income.
B) Sweden has low total annual income.
C) Sweden has a fairly small population.
D) Sweden is land locked geographically.
E) Sweden has relaxed export policies.

c
10) The concentration of income in the high-income and large-population countries means that a
company can be "global" by targeting buyers in:
A) just 50 countries.
B) just 20 countries.
C) just 10 or fewer countries.
D) just 30 countries.
E) none of the above

b
11) A global segment is referred to as "global elite," which includes:
A) people between the ages of 12 and 19.
B) affluent, well-traveled persons.
C) the graying population.
D) technology professionals.
E) persons having power.
d
13) McDonald's operates in over 118 countries; however, 80% of its restaurants are located in
nine countries which does not include the following country market:
A) Australia.
B) Brazil.
C) Germany.
D) India.
E) Japan.

e
24) Sony's U.S. consumer segments include all of the following except:
A) Affluent.
B) Zoomers.
C) SoHo.
D) Gen Y.
E) Fashionists.

d
25) "Usage rates" and "user status" are important criteria for which segmentation variable?
A) demographic
B) occupational
C) psychographic
D) behavioral
E) benefit

d
26) Campbell's Soup is making significant inroads into Japan's $500 million soup market as
time-pressed homemakers place a premium on convenience. This type of consumer segmentation
by Campbell's Soup is referred to as:
A) demographic.
B) occupational.
C) psychographic.
D) benefit.
E) behavioral.

b
29) Diageo PLC, V&S Vin & Spirit AB, and Seagram and other marketers know that Russians
consume a great deal of vodka. This type of market segmentation can be classified as:
A) demographic.
B) behavioral.
C) psychographic.
D) occupational.
E) benefit.

c
30) Several years ago, the D'arcy Massius Benton & Bowles (DMBB) agency created
psychographic profiles for several countries and regions." Which region did the survey
specifically focused on?
A) Asia
B) America
C) Europe
D) Australia
E) Far East

c
33) Three Mexican retailers Famso, Grupo Gigante SA, and Grupo Comercial Chedraui SA have
opened stores in the United States. This is an indication of:
A) U.S. retailers were lagging behind in collecting demographic information.
B) the Mexican retailers provide better products than American stores.
C) the Hispanic American segments represent a great opportunity for marketers.
D) American businesses cannot compete with Mexican retailers.
E) the Mexican retailers would like to compete with businesses like Best Buy and Circuit City.
d
55) Global automakers are targeting the U.S. market with SUVs. All of the following SUVs are
assembled or manufactured in the listed country except:
A) Porsche in Germany.
B) Honda in Japan.
C) Volkswagen in Slovakia.
D) Kia in India.
E) Mercedes-Benz in the United States.

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

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

b
83) Marketing that involves creating the same marketing mix for a broad mass market of
potential buyers is referred to as:
A) differentiated target marketing.
B) standardized global marketing.
C) concentrated global marketing.
D) competitive global marketing.
E) target benefit marketing.

c
84) The Swatch Group markets watches in all price ranges, from the Swatch brand at the low end
to luxury brands such as Longines, Blancpain, and Breguet. Which target market strategy does
this illustrate?
A) standardized global marketing
B) concentrated global marketing
C) differentiated global marketing
D) psychographic global marketing
E) none of the above

c
85) Positioning refers to the act of:
A) determining what areas of the globe to target.
B) ensuring a choice retail shelf location.
C) differentiating a brand in customer's mind.
D) formulating a private label strategy.
E) formulating a companion product.

a
94) Some of Body Shop's recent advertising has emphasized the difference between the
company's principles and those of "mainstream" cosmetics companies on such issues as animal
testing. As described here, Body Shop's ads illustrate positioning by:
A) competition.
B) niche.
C) quality/price.
D) attribute/benefit.
E) culture.
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c
17) Psychographic segmentation involves grouping people in terms of their:
A) combined household income.
B) age and income.
C) attitudes, values, and lifestyle.
D) psychological well being.
E) gender.

c
18) Porsche AG uses the label "Top Guns" to describe one segment of its customers, namely
those who care about power and control and who expect to be noticed. Such a profile would be
based on which type of segmentation?
A) demographic
B) occupational
C) psychographic
D) behavioral
E) gender

e
20) In the study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?"
researchers identified four lifestyle groups. The group that represents mainstream European
consumers was labeled as:
A) Successful Idealists.
B) Affluent Materialists.
C) Young Professionals.
D) Trendy Teens.
E) Disaffected Survivors.

d
28) Nutraceuticals are health food products which are manufactured by:
A) Kraft foods.
B) General Mills
C) Campbell's soups.
D) Nestlé foods.
E) Gerber foods.

e
32) Procter & Gamble has identified a group of consumers in Europe who are willing to pay
premium prices for pet food that will improve the health of their pets. This is an example of
________ segmentation.
A) demographic
B) psychographic
C) ethnic
D) behavioral
E) benefit

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e
1) The trend showing popularity of ethnic or regional foods such as sushi, falafel, or pizza
worldwide is referred to as the ________, which provides an opportunity for marketers to pursue
one or more segments on a global scale.
A) segmentation of markets
B) popularity of segmentation
C) promotion of products and services
D) identification of consumers
E) pluralization of consumption

b
7) The process of global market segmentation begins with the choice of one or more variables to
use as a basis for grouping customers. All of the following are variables that are commonly used
except:
A) demographics.
B) polycentrics.
C) behavioral characteristics.
D) benefits sought.
E) psychographics.

e
12) In 2013, the 10 most populous countries in the world accounted for just over ________
percent of the world income.
A) 20
B) 30
C) 40
D) 50
E) 60

d
14) The concentration of wealth in a handful of industrialized countries has significant
implications for global marketers. After segmenting in terms of a single demographic variable-
income- a company can reach the most affluent markets which does not include:
A) half of the EU nations
B) all of North America
C) Canada and Mexico
D) 90 percent of the world's population
E) Japan.

a
15) A global segment is referred to as "global teens" which includes:
A) people between the ages of 12 and 19.
B) affluent, well-traveled persons.
C) young, global travelers.
D) technology professionals.
E) persons having power.

a
16) A global segment is referred to as "global teens" which includes:
A) people with shared interest in fashions.
B) affluent, well-traveled persons.
C) movie stars.
D) technology professionals.
E) persons having power.

c
19) SRI International developed Values and Lifestyles (VALS). Such a consumer profile would
be helpful for which type of segmentation?
A) demographic
B) occupational
C) psychographic
D) behavioral
E) gender

c
21) In a study entitled "The Euroconsumer: Marketing Myth or Cultural Certainty?" researchers
identified different lifestyle groups. The segment that is concentrated in high-crime, inner-city
neighborhoods were classified as:
A) Successful Idealists.
B) Affluent Materialists.
C) Disaffected Survivors.
D) Trendy Teens.
E) Comfortable Belongers.

d
22) The law of disproportionality suggests that ________ percent of the company's menu or
profits are accounted for the 20 percent of a firm's products or customers.
A) 50
B) 60
C) 70
D) 80
E) 90

c
23) The DMBB (D'arcy Massius Benton & Bowles) agency created a psychographic profile of
the Russian market. The categories include all of the following except:
A) Kuptsy.
B) Cossacks.
C) Elites.
D) Students.
E) Business Executives.

d
27) According to Euromonitor International, the global market for foods that offer health benefits
is currently worth about $________ billion in annual sales.
A) 300
B) 400
C) 500
D) 600
E) 700.

b
31) In response to increasing worldwide concerns about obesity, diabetes, and other food-related
health issues, some of the world's largest food companies are developing new products. Nestlé
and Groupe Danone SA have developed several health-foods which include all of the following
except:
A) Souvenaid.
B) Activa.
C) NutriChoice.
D) Nutraceuticals.
E) Medical Foods.

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

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

e
58) The feasibility of targeting a particular market segment can be negatively impacted by
various factors. Which of the following is not of those factors?
A) regulatory hurdles.
B) cultural barriers.
C) lack of distribution system.
D) time required to establish business.
E) surplus demand.
c
59) The basis for global marketing expert David Arnold's framework for screening intercountry
comparisons include:
A) demographic data.
B) "top-down" segmentation analysis.
C) "bottom-up" segmentation analysis.
D) income level.
E) population data.

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

e
61) Companies like Coca-Cola had the first-mover advantage since they were the first company
to enter a global market. The first-mover advantages include all of the following except:
A) best chance of becoming world leader.
B) advantage in adapting to the local culture.
C) lead in advertising and promotion exposure.
D) gain business experience.
E) substantial investments in marketing.

e
79) Both Nestlé and Cadbury determined that a liquid chocolate confection would be one way to
address the issue of India's hot weather. This is an example of:
A) differentiated target marketing.
B) standardized global marketing.
C) competitive global marketing.
D) target benefit marketing.
E) product-market decision

e
82) India's vehicle market can be segmented into:
A) First time car buyers
B) Generation Y drivers
C) different age group drivers
D) women drivers
E) scooter and motorcycle drivers

b
92) For years, ads for Volvo automobiles stressed safety features and protection in the event of a
crash. Thus, Volvo automobiles developed a reputation based on which positioning strategy?
A) use/user
B) attribute/benefit
C) competition
D) high touch
E) quality/price

c
93) BMW advertises its cars as the "ultimate driving machine" which is described as positioning
based on:
A) high touch.
B) use/user.
C) attribute/benefit.
D) competition.
E) quality/price.
c
95) Which of the following is generally true about the marketing of high-touch products such as
fine china and crystal?
A) It relies equally on specialized information and image.
B) It relies less on image and more on specialized information.
C) It relies less on specialized information and more on image.
D) Neither image nor specialized information is relevant to the marketing of high-touch
products.
E) It relies partially on specialized information and partially on image.

a
96) Consumers shopping for high-touch products, such as fine perfume, are generally energized
by ________ motives.
A) emotional
B) rational
C) both emotional and rational
D) neither emotional nor rational
E) high-tech

c
97) When a marketer understands that a product satisfies a buyer's rational criteria while also
evoking an emotional response, the marketer should:
A) only target consumers in high-income countries.
B) utilize a multi-tiered targeting strategy rather than a concentrated strategy.
C) commission psychographic segmentation studies to augment demographic data.
D) create advertising that reflects a bipolar, high-tech and high-touch approach.
E) follow normal targeting strategy.

c
98) Which of the following is true of advertising for the Heineken and Foster's brands in the
United States?
A) Both Heineken and Foster's utilize the GCCP strategy.
B) Both Heineken and Foster's utilize the FCCP strategy.
C) Heineken utilizes the GCCP strategy; Foster's utilizes the FCCP strategy.
D) Heineken utilizes the FCCP strategy; Foster's utilizes the GCCP strategy.
E) Heineken utilizes the LCCP strategy; Foster's utilizes the GCCP strategy.

c
99) The world's best-known cosmetics companies are setting their sights on a lucrative new
market segment: the emerging middle classes in countries such as Brazil, Russia, India, and
China. However, these companies have to understand:
A) that women's preferences for cosmetics are same in all countries.
B) that Chinese consumers are not willing to invest in beauty products.
C) what beauty means to Chinese women.
D) that working Indian women currently prefer only local brands.
E) cosmetics are preferred mostly by the top end of the market in China.

b
100) The strategy that identifies a brand as a symbol of a particular global segment is known as:
A) foreign consumer culture positioning.
B) global consumer culture positioning.
C) local consumer culture positioning.
D) global market positioning.
E) demographic market positioning.
d
1) The only marketing mix element that is applicable in export selling is:
A) price.
B) product.
C) promotion.
D) place.
E) process.

e
2) Which of the following is not true about a personal visit to size up the market firsthand and
begin the development of an actual export-marketing program?
A) Confirm assumptions regarding market potential
B) Contradict assumptions regarding market potential
C) Gather additional data to help make decisions
D) Develop a marketing plan in cooperation with local agents
E) Arrange a face-to-face meeting and avoid going to trade shows

e
3) Export marketing requires all of the following except:
A) an understanding of the target market environment.
B) the use of marketing research.
C) identification of market potential.
D) decisions concerning product design.
E) reaching retail customers.

e
4) After the research effort has zeroed in on potential markets, marketers should:
A) work on understanding the target market environment.
B) modify methods used for marketing research.
C) identify products that can be marketed.
D) make decisions concerning product design.
E) plan a personal visit.

c
5) The advantages of a market visit include all of the following except:
A) confirm market potential.
B) contradict market potential.
C) gain confidence in firm's ability for exporting.
D) gather additional data to reach final decision.
E) build confidence in firm's ability for exporting.
e
6) The possible arrangements of the responsibilities for handling exports include all of the
following except:
A) as a part-time activity performed by domestic employees.
B) through an export partner affiliated with the domestic marketing structure.
C) through an export department within an international division.
D) through an export department that is independent of the domestic marketing structure.
E) through an export department of an embassy in a foreign country.

c
19) Research has shown that exporting is essentially a developmental process that proceeds in
different stages. Before a firm reaches stage 4, it must do which one of the following activities?
A) explore the feasibility of exporting
B) commit resources for exporting
C) receive unsolicited export orders
D) believe in attractiveness of exporting
E) build confidence in firm's ability for exporting

b
20) ________ is the most important aspect of a company's international orientation.
A) Experience
B) Commitment
C) Dynamism
D) Confidence

b
24) The top ranked country among those exporting to the United States is:
A) Taiwan.
B) China.
C) Mexico.
D) India.
E) Honduras.

b
25) Representatives of the apparel, footwear, furniture, and textile industries in many countries
are deeply concerned about the impact that increased trade with ________ will have on these
sectors.
A) Hong Kong
B) China
C) Italy
D) India
E) Bangladesh

b
26) The so-called "China Triangle" includes:
A) Hong Kong, Republic of China, and Singapore
B) Republic of China, Taiwan, and Hong Kong
C) Republic of China, Taiwan, and South Korea
D) Taiwan, Hong Kong, and Republic of China
E) Singapore, China, and Republic of China

e
27) Governments commonly use activities to support and encourage firms that engage in
exporting. Such activities include all of the following except:
A) tax incentives.
B) subsidies.
C) export assistance.
D) free trade zones.
E) voting rights.

c
28) Agricultural subsidies are particularly controversial because, although they protect the
interests of farmers in some countries, they work to the detriment of farmers in countries such as:
A) Singapore.
B) the United States.
C) India.
D) Switzerland.
E) Japan.

e
29) The Ministry of International Trade and Industry (MITI) has helped devise export strategies
for companies in:
A) Singapore.
B) South Korea.
C) Taiwan.
D) Hong Kong.
E) Japan.

e
30) The four tigers-Singapore, South Korea, Taiwan, and Hong Kong-learned from the
________ experience and built strong export-based economies of their own.
A) Chinese
B) Indian
C) German
D) American
E) Japanese

c
31) Which of the following was a major U.S. tax incentive for exporters that the WTO recently
ruled was an illegal subsidy?
A) NTR
B) CVD
C) FSC
D) NTB
E) HTS

d
32) The export and import process can entail red tape and bureaucratic delays. In an effort to
facilitate exports, countries are designating certain areas as:
A) import control zones.
B) special tariff zones.
C) global business zones.
D) free trade zones.
E) duty free zones.

b
33) Developed under the auspices of the Custom Cooperation Council (now the World Customs
Organization) the system which took effect is referred to as:
A) preferential tariffs.
B) harmonized tariff.
C) BTN duty.
D) specialized tariff.
E) antidumping duty.

b
34) After the aftermath of the tragedy involving fire in garment factories in Bangladesh, it was
found that the buildings were inspected by:
A) Dhaka's building-safety authority.
B) Business Social Compliance Initiative (BSCI).
C) Walmart's approved contractors.
D) Worker Rights Consortium.
E) Interfaith Center for Corporate Responsibility.

c
35) After the aftermath of the tragedy involving fire in garment factories in Bangladesh, Walmart
implemented a "zero-tolerance policy." The Workers Rights Consortium, the International Labor
Organization and other groups monitoring labor issues are stepping up pressure on companies
that participate in the global garment supply chain due to the following reasons, except:
A) retailers pay lip service to concerns about factory safety.
B) retailers continue to focus on low prices.
C) those auditing facilities are audited by BSCI's qualified engineers.
D) the buyers and consumer are willing to pay more for garments.
E) retailers do not provide funds for fire safety training.

e
36) A nontariff barrier (NTB) includes all of the following except:
A) quotas.
B) discriminatory procurement policies.
C) restrictive administrative policies.
D) restrictive technical regulations.
E) ad valorem duty.

b
45) A duty that represents a certain percentage of the value of a particular product is a(n):
A) specific duty.
B) ad valorem duty.
C) BTN duty.
D) "schedule B" duty.
E) antidumping duty.

a
46) The sale of merchandise in export markets at unfair prices is known as:
A) dumping.
B) countervailing.
C) tariff.
D) ad valorem.
E) transaction.

b
47) Which of the following types of duties would be imposed on a company whose home-
country government provides export subsidies?
A) ad valorem duty
B) countervailing duty
C) antidumping duty
D) specific duty
E) customs duty

b
48) Which of the following is described as the three R's of global business: rules, rate schedules,
and regulations?
A) quotas
B) tariffs
C) NTBs
D) NTR
E) duties

c
49) Sweden applies a system to certain categories of imported agricultural products referred to
as:
A) temporary surcharges.
B) ad valorem duty.
C) variable import levies.
D) specific duty.
E) countervailing duty.

b
50) The United States has given Normal Trade Relations (NTR) status to some 180 countries. In
actuality only four countries are excluded from this status which includes all of the following
countries except:
A) North Korea.
B) Iraq.
C) Iran.
D) Cuba.
E) Libya.

c
66) ________ are variously referred to as buyer for export, export commission house, or export
confirming house.
A) Export brokers
B) Export merchants
C) Foreign purchasing agents
D) Export managers
E) Manufacturer's agents

c
67) ________ is sometimes called a mother hen, a piggyback exporter, or an export vendor
A) Export broker
B) Export merchant
C) Cooperative exporter
D) Export manager
E) Manufacturer's agent

a
68) Which of the following can be referred to as a "buyer for export" or an "export commission
house" and operates on behalf of a buyer from a foreign country?
A) foreign purchasing agent
B) export broker
C) export merchant
D) export management company
E) freight forwarder

b
69) Which of the following receives a fee for bringing together an exporter and a buyer in
another country?
A) foreign purchasing agent
B) export broker
C) export merchant
D) export management company
E) freight forwarder

d
70) ________ is an independent marketing intermediary that acts as the export department for
two or more manufacturers whose product lines do not compete with each other.
A) Manufacturer's export agent
B) Export commission representative
C) Export merchant
D) Export management company
E) Cooperative exporter

d
71) ________ are licensed specialists in traffic operations, customs clearance, and shipping
tariffs and schedules. They can be considered as the travel agents for handling export goods.
A) Foreign purchasing agents
B) Export brokers
C) Export merchants
D) Freight forwarders
E) Cooperative exporters

c
77) The possible arrangements for handling exports include all of the following except:
A) as a part-time activity performed by domestic employees.
B) through an export partner affiliated with the domestic marketing structure that takes
possession of the goods before they leave the country.
C) as a low-cost arrangement requiring no additional personnel.
D) through an export department within an international division.
E) for multidivisional companies, each of the preceding options is available.

e
79) Direct representation, as opposed to representation by independent intermediaries, for
exporting by the market country, has several advantages which do not include:
A) facilitates control and communications.
B) allows decisions concerning program development and resource allocation.
C) benefits when a product is not yet established in a market.
D) ensures marketer's interest and special efforts.
E) helps selling products directly to the consumer in the market country.

a
82) Which of the following offers a company the best assurance of being paid for exported
goods?
A) a letter of credit
B) a "piggyback" arrangement
C) a swap
D) an in-house export organization
E) a certified check

a
83) The international standard by which letters of credit (L/Cs) are interpreted is known as the
________ 500.
A) UCP
B) NTR
C) FSC
D) NTB
E) HTS

a
84) Which of the following documents represents title to goods in an export transaction?
A) bill of lading
B) invoice
C) packing list
D) certificate of origin
E) insurance certificates

b
85) An irrevocable letter of credit transfers the payment obligation for an export deal from the
buyer to the buyer's:
A) in-house export organization.
B) bank.
C) freight forwarder.
D) credit union.
E) checking account.

b
86) Which set of documents generally represents the minimum documentation required to clear a
shipment through customs?
A) packing list, commercial invoice
B) bill of exchange, commercial invoice
C) certificate of origin, bill of exchange
D) packing list, insurance certificate
E) letter of credit, commercial invoice

c
87) Which of the following completely eliminates the risk of nonpayment by an importer or a
bank in an international transaction?
A) documentary credit (letter of credit)
B) documentary collection
C) cash in advance
D) sales on open account
E) draft

b
88) Which of the following correctly states the role of banks in import/export transactions
involving a letter of credit (L/C)?
A) The importer's bank is the advising and/or confirming bank; the exporter's bank is the issuing
bank.
B) The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing
bank.
C) The exporter's bank is the advising, confirming, and issuing bank.
D) The importer's bank is the advising, confirming, and issuing bank.
E) none of the above

b
89) In which of the following forms of export financing does a bank assume a financial
obligation?
A) with an L/C but not a documentary collection
B) with a documentary collection but not an L/C
C) neither an L/C nor a documentary collection requires a bank to assume financial obligation
D) with either an L/C or a collection letter
E) with both an L/C and a documentary collection

b
90) Which of the following incorrectly states the role of banks in import/export transactions
involving a letter of credit (L/C)?
A) The exporter's bank is the advising and/or confirming bank.
B) The importer's bank is the advising and/or confirming bank.
C) The importer's bank is the advising, confirming, and issuing bank.
D) The exporter's bank is the advising, confirming, and issuing bank.
E) The importer's bank is neither advising nor confirming bank.

d
91) Which of the following arranges export financing payment methods in descending order
starting with the most secure/reliable and ending with the least secure/reliable?
A) sales on open account→cash in advance→documentary credit (L/C)→documentary
collection (draft)
B) documentary credit (L/C)→sales on open account→documentary collection (draft)→cash in
advance
C) documentary collection (draft)→documentary credit (L/C)→cash in advance→sales on open
account
D) cash in advance→documentary credit (L/C)→documentary collection (draft)→sales on open
account
E) none of the above

c
92) Which of the following financing methods would be used by an exporter that enjoys good
relations with a buyer in a well-established market?
A) letter of credit
B) cash in advance
C) sales on open account
D) barter
E) arrival draft

d
93) Which of the following methods of financing would be used if the exporting and importing
parties had a strong, long-standing relationship?
A) documentary credit (letter of credit)
B) documentary collection
C) cash in advance
D) sales on open account
E) bank draft
b
94) In the post-September 11 business environment in the United States, imports have come
under increased security. One of the initiatives taken in the interest of national security is:
A) NAFTA.
B) C-TPAT.
C) WTO.
D) NTB.
E) FSC.

d
98) The organizational decision to purchase production inputs, components, or finished goods
from domestic or foreign producers is known as the ________ decision.
A) import/export
B) NTB
C) preferential
D) sourcing
E) security

c
99) Which of the following refers to a system of farm subsidies in Europe?
A) CVD
B) FSC
C) CAP
D) HTS
E) NTR

e
100) ________ is an independent marketing intermediary that acts as the export department for
two or more manufacturers whose product lines do not compete with each other.
A) Export commission
B) Manufacturer's export agent
C) Cooperative exporter
D) Freight forwarders
E) Export Management Company

e
101) Which of the following establishes classification numbers that must be used by importers
and exporters?
A) NTR
B) CVD
C) FSC
D) NTB
E) HTS

b
102) Governmental actions that discourage imports and block markets include all of the
following except:
A) tariffs.
B) free trade zones
C) subsidies.
D) tax incentives.
E) duties.

d
103) Restrictive administrative and technical regulations can create barriers to trade which may
take all of the following forms except:
A) antidumping regulations.
B) product size regulations.
C) safety and health regulations.
D) common agricultural policies.
E) safety and pollution regulations.

b
104) In an effort to attract assembly operations, Brazil allows certain product components to be
imported at reduced tariff rates. This is an example of:
A) offsets.
B) preferential tariffs.
C) the effect of the Customs Valuation Code.
D) an EMC.
E) discriminatory procurement.

c
105) The chief executives of Swiss Swatch Group and Japanese Canon would like to:
A) outsource all of the manufacturing units overseas in order to save money.
B) outsource a majority of the manufacturing functions overseas.
C) retain a majority, if not all, of the manufacturing in their home country.
D) establish "call centers" in developing countries in order to save labor costs.
E) outsource a full line of new products only.

c
106) If the dollar, the yen, or the euro becomes seriously overvalued, a company with a
production capacity in other locations can achieve competitive advantage by:
A) buying different currencies before major fluctuations take place.
B) conducting transactions in different currencies of the world.
C) shifting production among different sites.
D) cutting down production and waiting until the currency rate is reasonable.
E) reducing production and labor force simultaneously.

e
107) A number of explanations have been offered for the low level of U.S. exports relative to
other countries. All of the following can be considered as reasons for low level of exports except:
A) limited ambition by many American business owners.
B) lack of knowledge of market opportunities abroad.
C) perceived lack of necessary resources.
D) marketing to home-country users is easier than exporting.
E) a strong U.S. dollar translates into less affordable prices in export markets.

b
108) Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as:
A) countervailing duties.
B) antidumping duties.
C) specific duties.
D) ad valorem duties.
E) temporary surcharges.

c
109) The furniture industry has become one of the fastest-growing sectors of China's economy.
Furniture imports are flooding into the United States from China. This can be attributed to:
A) the quality of furniture is better than that made in Europe.
B) American tastes in décor have changed.
C) China's low labor rates translate into reasonable prices for consumers.
D) China can survive tough competition.
E) replacement parts are readily available from China.
d
1) For Starbucks and other companies whose business models include a service component, it is
not recommended that they use one of the following methods for going global.
A) joint ventures
B) licensing
C) 100-percent ownership
D) exporting
E) franchising

b
2) For Walt Disney Company, the best mode for going global is by:
A) joint ventures.
B) licensing.
C) 100-percent ownership.
D) exporting.
E) franchising.

b
3) One of the advantages of licensing is:
A) licensees have limited control.
B) licensees have considerable autonomy.
C) license agreements have short life.
D) licensees can develop similar products.
E) licensees have considerable leverage.

e
4) Licensing as a market entry mode has several disadvantages and opportunity costs, which
does not include:
A) limited market control.
B) agreement may have short life.
C) leveraging and exploiting by licensee.
D) similar product or technology development by licensee.
E) adaptations by licensee to fit local tastes.

c
5) ________ represents a market entry strategy whereby one company permits a foreign
company to make use of its patents, know-how, technology, company name, or other intangible
assets in return for a royalty payment.
A) A joint venture
B) One-hundred-percent ownership
C) Licensing
D) Exporting
E) A Global strategic alliance

b
6) ________ provides technical specifications to a subcontractor or local manufacturer, who then
oversees production.
A) A joint venture
B) Contract manufacturing
C) Licensing
D) Exporting
E) A Global strategic alliance

c
7) In order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements
should provide for:
A) contract manufacturing.
B) franchising.
C) cross licensing.
D) strategic decision making.
E) adaptation for local tastes.

e
8) The advantages of "contract manufacturing" include all of the following except:
A) access to technical specifications by subcontractors.
B) access to technical specifications by local manufacturers.
C) a licensing firm can specialize in product marketing.
D) limited commitment of financial resources.
E) considerable commitment of management resources.

d
9) Pollo Campero, a chicken restaurant chain based in Central America, is using the following
method for expanding operations in the United States:
A) joint ventures.
B) licensing.
C) exporting.
D) franchising.
E) acquisition.

d
10) Would-be franchisors ask all of the following questions except one before expanding
overseas:
A) How tough is the local competition?
B) Does the government respect trademark and copyrights?
C) Can profits be easily repatriated?
D) Can products be easily counterfeited?
E) Is commercial space available?

c
11) The specialty retailing industry, as well as the fast-food industry, favors ________ for global
growth.
A) licensing
B) investment
C) franchising
D) joint ventures
E) strategic alliances

b
12) The agreements that allow McDonald's franchisees around the globe to use McDonald's
trademarked name and menu items represent, in essence, which form of market entry?
A) joint ventures
B) franchising
C) 100% ownership
D) exporting
E) acquisition

d
13) McDonald's success in franchising in global markets can be attributed to several factors
which do not include:
A) a well known global brand name.
B) a business system that can be easily replicated.
C) local market knowledge.
D) cross licensing.
E) granting franchisees leeway to tailor menu offerings to suit local tastes.

d
29) Honda has invested $550 million in building an assembly plant in Greensburg, Indiana;
IKEA spent nearly $2 billion to open stores in Russia; and South Korea's LG Electronics
purchased a 58% stake in Zenith Electronics. All of these are examples of:
A) acquisition.
B) licensing.
C) franchising.
D) FDI.
E) exporting.

d
30) Strictly speaking, a (n) ________ is an entry strategy for a single target country in which the
partners share ownership of a newly created business entity.
A) acquisition
B) licensing
C) franchising
D) joint venture
E) exporting

b
31) Disadvantages of joint venturing can include all of the following except:
A) joint venture partners must share rewards as well as risks.
B) joint ventures allow partners to achieve synergy.
C) joint ventures can have the potential for conflict between partners.
D) a dynamic joint venture partner can evolve into a strong competitor.
E) a company incurs very significant costs by joint venturing.
c
32) The strategy to use joint ventures has several advantages which do not include:
A) risk sharing.
B) reduced financial risk.
C) reward sharing.
D) achieve synergy.
E) the only way to enter a country or region.

d
33) Which of the following does not fit into the sequence of experiences Anheuser-Busch had in
Japan?
A) Anheuser-Busch first entered Japan by means of a licensing agreement with Suntory, the
smallest brewery in Japan.
B) Anheuser-Busch created a joint venture with Kirin Brewery, the market leader.
C) Anheuser-Busch dissolved the joint venture with Kirin Brewery.
D) Anheuser-Busch entered into a joint venture with Kirin Brewery.
E) Anheuser-Busch reverted to a licensing agreement with Kirin Brewery.

c
34) As a general rule, the Chinese government allows foreign companies to participate in its
market only if those companies agree to establish operations with local Chinese enterprises.
Which market entry mode would be the appropriate choice under these circumstances?
A) acquisition
B) licensing
C) joint venture
D) exporting
E) franchising

b
35) The president of a Mexican company recently remarked, "Business in Mexico is done on a
consensus basis, very genteel and sometimes slow by U.S. standards." A few months later, the
Mexican company and its U.S. joint venture partner parted company. Judging by the president's
remark, one important reason for the "divorce" was:
A) failure of one partner to live up to the terms of the contract.
B) cultural differences.
C) the cancellation of NAFTA.
D) the U.S. government's insistence on quick negotiations.
E) the language barrier.

d
36) Toyota learned many things from its partnership with GM, however American managers
involved in the venture complained that:
A) Toyota learned many things about the U.S. supply system.
B) Toyota learned about the U.S. transport system.
C) Toyota learned about managing American workers.
D) Toyota did not apply manufacturing expertise at GM plant.
E) Toyota applied its expertise at its Camry plant.

c
37) GM executives are looking for a joint venture with AvtoVAZ, the largest carmaker in:
A) Germany.
B) Lithuania.
C) Russia.
D) Kazakhstan.
E) Turkey.

b
38) In a joint venture with Russian manufacturer AvtoVAZ, GM executives were planning to
have a stripped-down reengineered car based on its Opel model. However, the market research
revealed that a "Made-in-Russia" car would only be acceptable if:
A) it has a German name.
B) it sported a very low sticker price.
C) it has an American name.
D) it has a very high sticker price.
E) it has a Russian name.

b
39) The Russian market for imported premium vehicles is exploding as the number of
households that can afford luxury products exhibit rapid growth. The luxury cars include all of
the following except:
A) Porsche.
B) Lexus.
C) BMW.
D) Rolls-Royce.
E) Infiniti.

d
40) Ford Motor Company (United States) has a 50-50 joint venture to build Ford Fiestas with:
A) Toyota (Japan).
B) Shanghai Automotive Industry (China).
C) BMW (Germany).
D) Mahindra & Mahindra (India).
E) Mazda (Japan).

c
41) Which automaker currently has a joint venture with Hindustan Motors (India)?
A) Volkswagen
B) Ford
C) GM
D) Renault
E) Mazda

a
42) Ford and Mazda have market entry and expansion in a relationship known as:
A) joint venture.
B) licensorship.
C) franchising.
D) contract manufacturing.
E) none of the above

b
43) Which of the following currently owns a 70 percent stake in Skoda, the Czech automaker?
A) GM
B) Volkswagen
C) Ford
D) DaimlerChrysler
E) Renault

e
44) Which automaker owns an equity stake in Japan's Nissan Motor?
A) GM
B) Volkswagen
C) Ford
D) DaimlerChrysler
E) Renault

c
45) Tata Motors (India) acquired the following auto company:
A) Volkswagen AG (Germany).
B) Volvo (Sweden).
C) Jaguar (UK).
D) Toyota (Japan).
E) Hyundai (South Korea).

e
46) Avon Products uses ________ to enter developing markets.
A) franchising and licensing
B) joint venture and licensing
C) acquisition and franchising
D) licensing and franchising
E) acquisition and joint ventures

d
66) A competitive business environment is now characterized by all of the following
characteristics except:
A) unprecedented degrees of turbulence.
B) dynamism.
C) unpredictability.
D) inadaptability.
E) environmental responsiveness.

e
67) Which of the following is not a characteristic of global strategic partnership?
A) Participants maintain independence outside the framework of alliance.
B) Participants share benefits of the alliance.
C) Participants share control over the performance of the assigned tasks.
D) Participants make ongoing contributions in technology, products, and other areas.
E) Participants agree not to compete in areas unrelated to the alliance.

d
68) Which of the following is not a characteristic of global strategic alliances?
A) Participants maintain independence outside the framework of alliance.
B) Participants share benefits as well as control.
C) Participants make ongoing contributions in technology, products, and other areas.
D) Participants focus on an individual country market.
E) Participants share benefits of the alliance.
e
69) The terminology used to describe the new forms of cooperation strategies varies widely and
the phrases used include all of the following except:
A) collaborative agreements.
B) strategic alliances.
C) global strategic partnerships.
D) strategic international alliances.
E) Greenfield operations.

e
70) GSPs (Global Strategic Partnerships) are attractive for several reasons which do not include:
A) sharing high product development costs.
B) sharing technological developments.
C) securing access to national and regional markets.
D) continuous transfer of technology between partners.
E) focus on a single national market or a specific problem.

e
71) Which of the following does not fit in with the factors that should be considered by
companies forming GSPs?
A) Partners are competitors to each other.
B) Harmony is the most important measure of success.
C) All employees and managers must understand where cooperation ends and competitive
compromise begins.
D) Learning from partners is critically important.
E) none of the above

e
72) Having partners from another country can have advantages which include all of the
following except:
A) reducing product development costs.
B) securing technology.
C) access to capital.
D) shared risks.
E) increased competition.

c
73) An attribute which does not represent true global partnership is:
A) achieving world leadership by differentiation.
B) achieving a reciprocal relationship.
C) relationship is organized vertical lines.
D) continual transfer of resources.
E) retaining national identities.

b
74) "Corporate amnesia" in global partnership is a term which refers to:
A) achieving world leadership by differentiation.
B) short-term goals with no memory on how to compete.
C) a relationship which is short lived.
D) discontinuation of a partnership due to personal chemistry.
E) losing national identity and ideology.

c
75) "Discussion and consensus must be the norms. Partners must be viewed as equals." When
applied to global strategic partnerships, this statement indicates the importance of which factor?
A) mission
B) strategy
C) governance
D) culture
E) organization

a
76) "Successful GSPs create win-win situations, where participants pursue objectives on the
basis of mutual advantage." When applied to global strategic partnerships, this statement
indicates the importance of which factor?
A) mission
B) strategy
C) governance
D) culture
E) organization

a
77) According to a 1991 report by McKinsey & Co., problems of alliances between Western and
Japanese firms were related to all of the following factors except:
A) objective levels of performance.
B) a feeling of mutual disillusionment.
C) difference in expectations.
D) balance between partners.
E) frictional loss.

e
78) The success of CFM International (the strategic partnership between GE and Snecma) can be
attributed to which of the following?
A) compatibility of the partners
B) capability of the partners
C) commitment of the partners
D) personal chemistry between executives
E) all of the above

c
79) Critics warn that employees of a company that become reliant on an outside supplier for
critical components will:
A) encourage outsourcing
B) become used to value-added components
C) lose expertise and engineering skills
D) use time for developing other skills
E) look for employment with competitors

c
80) Boeing developed the wide-bodied aircraft, the 777, with about ________ of the work
subcontracted out to Mitsubishi, Fuji, and Kawasaki.
A) 50%
B) 25%
C) 20%
D) 60%
E) 75%

c
81) A number of factors combine to make Russia an excellent location for an alliance which do
not include:
A) a well-educated workforce.
B) quality is important to Russian consumers.
C) abundance of supplies.
D) potential for economic growth.
E) potential for growth in service sector.

c
92) Which of the following is not true of Japanese keiretsu?
A) promotes risk sharing
B) promotes long-term employment
C) ensures low prices for Japanese consumers
D) blocks foreign suppliers from the Japanese market
E) relationships are cemented by bank ownership

a
93) Which of the following is true about Japanese keiretsu?
A) Toyota is a vertical keiretsu, Mitsubishi is a horizontal keiretsu.
B) Toyota is a horizontal keiretsu, Mitsubishi is a vertical keiretsu.
C) Toyota and Mitsubishi are both horizontal keiretsu.
D) Toyota and Mitsubishi are both vertical keiretsu.
E) none of the above

b
94) Another perspective on the future of cooperative strategies envisions the emergence of:
A) mergers and acquisition.
B) virtual corporations.
C) franchising.
D) joint ventures.
E) keiretsu.

a
100) Saab markets two luxury car models, both prized by drivers for their "quirkiness." About 30
percent of Saab's sales come from the USA, with most of the rest from Western Europe. Which
strategy does Saab appear to be using?
A) country concentration/market segment concentration
B) country diversification/market segment concentration
C) country concentration/market segment diversification
D) country diversification/market segment diversification
E) none of the above
c
1) Generally speaking, which of the following statements is true concerning product attributes?
A) Tangible product attributes are more important than intangible ones.
B) Intangible product attributes are more important than tangible ones.
C) Both tangible and intangible product attributes are important.
D) Neither tangible nor intangible product attributes are important.
E) A product has more attributes than tangible and intangible ones.
b
2) Many American car buyers perceive Korean cars as:
A) durable.
B) cheap.
C) reliable.
D) of high quality.
E) good investment.

c
3) An express warranty is a written guarantee that assures the buyer that he or she:
A) is getting what he or she desired.
B) will be able to get express response if any defects are found.
C) is getting what he or she has paid for.
D) will be able to contact the manufacturer whenever needed.
E) has limited time for filling out information required by the manufacturer.

b
4) Packaging is an important consideration for products that are shipped to markets worldwide.
Which of the following statements related to packaging is not true?
A) Nestlé's worldwide network of packaging teams provide improvement suggestions on a
quarterly basis.
B) The Japanese prefer plain soft colors on their packages.
C) The Aquafresh Ultimate tube was designed to stand vertically.
D) Coca-Cola had contour bottles in both glass and plastic versions in many countries.
E) Nestlé asked suppliers to find a glue to make the clicking sound louder when a tube of
Smarties brand chocolate candies are unwrapped.

a
5) Coca-Cola's distinctive contour bottle, which is sold in many countries, illustrates the point
that packaging:
A) strategies can vary by country and region.
B) helps in storing large sizes in refrigerators.
C) strategies do not change by country and region.
D) appeals only to Asian consumers.
E) helps in brand identification.

a
6) The marketers of Corona beer achieved great success in the U.S. market by:
A) retaining the bottle design originally used in Mexico.
B) hiring Hispanic movie stars as endorsers.
C) distributing Corona in returnable bottles.
D) changing the brewing recipe to conform to American palates.
E) having the label in Spanish.

d
7) Regulators in different countries have proposed various regulations for product labeling. All
of the following statements pertaining to such regulations are true except:
A) mandatory health warnings on tobacco products are required in most countries.
B) the American Automobile Labeling Act clarifies the country of origin as well as the final
assembly point.
C) in 2008, the United States enacted a country of origin labeling (COOL) law.
D) the use of terms "light" and "natural" are allowed on labels only in the United States.
E) McDonald's is posting nutrition information on all food packaging and wrappers in selected
markets.

d
8) Global marketers must understand the importance of visual aesthetics embodied in the color or
shape of a product, label, or package. Which of the following statements is not true regarding the
use of color in selected countries?
A) The yellow color on Caterpillar's earthmoving equipment is acceptable worldwide.
B) Packaging aesthetics are particularly important to the Japanese.
C) The color white is associated with death and bad luck in some Asian countries.
D) The red Marlboro color had to be changed in some Asian countries.
E) The Chinese consider the color red to be lucky.

d
9) The American Automobile Labeling Act clarifies all of the following except:
A) country of origin.
B) final assembly point.
C) the percentages of the major sources of every car and truck.
D) information about car dealer.
E) aesthetic style.

b
10) Packaging aesthetics are particularly important to the ________ consumer.
A) Indian
B) Japanese
C) French
D) German
E) American

b
24) As outlined by branding expert Kevin Keller, the benefits of strong brand equity include all
of the following except:
A) greater loyalty.
B) more vulnerability to marketing actions.
C) less vulnerability to marketing crises.
D) more inelastic consumer response to price increases.
E) more elastic consumer response to price decreases.

d
25) ________ represents the cumulative added value of a company's investment in the marketing
of a brand over time.
A) A brand extension
B) Co-branding
C) Brand image
D) Brand equity
E) Brand loyalty

d
26) ________ can also be thought of as an asset representing the value created by the
relationship between the brand and its customers over time.
A) Brand extensions
B) Co-branding
C) Brand image
D) Brand equity
E) Brand loyalty

c
27) Which of the following statements is not an example of local products or brands?
A) Coca-Cola developed several branded drink products for Japan.
B) Coca-Cola markets Kinely brand bottled water in India.
C) BMW uses "the ultimate driving machine" slogan in India.
D) Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United
Kingdom.
E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.

a
28) Example of a "brand symbol" includes all of the following except:
A) date of manufacture on Coca-Cola cans.
B) the wave that appears on red Coke cans and bottle labels.
C) non-word marks such as the Nike swoosh.
D) three-pronged Mercedes star.
E) McDonald's golden arches.
b
29) Around the world, various brands of personal computers are sold with Pentium processors.
This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which
branding concept does such advertising reflect?
A) brand equity
B) co-branding
C) brand image
D) brand extension
E) tiered branding

a
30) British entrepreneur Richard Branson has built a global business empire by:
A) relying on brand extension.
B) being the first to use smart cards in major markets.
C) developing local brands.
D) avoiding consumer businesses with established leaders.
E) restricting the "Virgin" name only to airlines.

d
31) A logo can be all of the following except:
A) Word Mark
B) Non-word Mark
C) Brand symbol
D) Brand equity
E) Trade Mark

e
32) Which of the following is not in the top five of the world's most valuable brands according to
2012 rankings?
A) Sony
B) Microsoft
C) Coca-Cola
D) GE
E) Nokia

a
33) Maslow's hierarchy is applicable to global marketing because it can help explain how:
A) basic human needs can drive the development of global products.
B) "self-actualization" is the highest-order need in Japan as well as Western nations.
C) status needs in different countries can only be fulfilled with localized products.
D) "luxury badging" is irrelevant to companies marketing in Asia.
E) Asians differ from Westerners in their basic physiological needs.

d
34) Alfred Zeien, former chairman of Gillette, once noted that his company's Parker Pen unit
does not have to develop a special model for Malaysia and Singapore because shoppers
worldwide seek the same things when buying a gift that will serve the recipient as a status
symbol. This insight relates to which level of Maslow's hierarchy of needs?
A) physiological
B) safety
C) social
D) esteem
E) self-actualization

a
35) Comparing the traditional formulation of Maslow's hierarchy with the results of current
research on the consumer needs and motivation in Asia, which of the following is correct?
A) The lowest two levels of the hierarchy are the same in the traditional and Asian versions.
B) The lowest three levels of the hierarchy are the same in the traditional and Asian versions.
C) The lowest four levels of the hierarchy are the same in the traditional and Asian versions.
D) The five levels in the traditional formulation apply equally in the West and in Asia.
E) The highest levels of the hierarchy are the same in the traditional and Asian versions.
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e
36) Which of the following is not one of the levels in the Asian version of Maslow's hierarchy?
A) physiological
B) safety
C) affiliation
D) admiration
E) self-actualization

c
37) The benefits of strong brands include all of the following except:
A) greater loyalty.
B) less vulnerability to marketing actions.
C) less inelastic consumer response to price increases.
D) more elastic consumer response to price decreases.
E) larger margins.

b
38) A global product meets the wants and needs of a global market, including the Triad which
includes the following countries:
A) Brazil, Russia, and China.
B) Japan, Western Europe, and the United States.
C) China, the United States, and Europe.
D) China, India, and Brazil.
E) Japan, China, and Western Europe.

c
39) "Intel inside" campaign promoting both the Intel Corporation and its Pentium-brand
processors in conjunction with advertising for various brands of personal computers is an
example of:
A) brand equity.
B) brand symbol.
C) co-branding.
D) brand extension.
E) brand loyalty.

c
40) When a corporate name such as Sony is combined with a product brand name such as
Walkman, the brand category is referred to as:
A) brand equity
B) brand symbol
C) tiered brand
D) co-brand
E) brand loyalty

c
54) Marketers in Gillette's Parker Pen subsidiary focused on upscale shoppers in Malaysia and
Singapore. This is an example which coincides with the Maslow's hierarchy related to
A) self-esteem
B) physiological needs
C) security
D) self actualization
E) social needs

a
60) Which of the following could hinder the success of products labeled "Made in Bangladesh"
or "Made in Thailand" in export markets?
A) negative country-of-origin bias
B) no possible quality/price positioning
C) low acceptance of private brands
D) lack of promotion in global markets
E) high product saturation levels in global markets

c
66) Generally speaking, which of the following product categories represents the best potential
for extension into international markets without adaptation?
A) companion products
B) food products
C) industrial products
D) intangible products
E) non-alcoholic drinks

b
67) Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the
United States. This is an example of the ________ strategy.
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product invention

b
68) Targeting the 300 million farmers in India who still use plows harnessed to oxen, John Deere
engineers created a line of relatively inexpensive, no-frills tractors. The Deere team then realized
that the same equipment could be marketed to hobby farmers and acreage owners in the United
States, a segment that they had previously overlooked. This is an example of ________ strategy.
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product invention
d
69) Prior to 2004, Nokia launched different cell phone products in different countries at different
times. Nokia also used different advertising images and messages in different countries. Which
approach to the world marketplace was Nokia using?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) product-communication adaptation
E) product invention

b
70) Before Ben & Jerry's launched their ice cream in the United Kingdom, the company
conducted extensive research to determine whether the package design was appropriate. The
research indicated that British consumers perceived the colors differently than U.S. consumers.
The package design was changed accordingly. This type of strategy can be defined as:
A) product-communications extension.
B) product extension-communications adaptation.
C) product adaptation-communications extension.
D) product-communication adaptation.
E) product invention.

d
71) Campbell's has been marketing soup in Japan for more than 40 years. Early on, Japanese
consumers were not receptive to ads featuring the Campbell Kids and the "M'm M'm Good"
slogan. This compelled Campbell's to develop ads featuring a talking soup can known as "Mr.
Campbell." Campbell's also developed soup varieties for Japan with fish as the main protein
source and spices that reflect local preferences. As described here, which of the following
strategies has Campbell's used in Japan?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) product-communication adaptation
E) product invention
b
72) To promote its Centrino wireless chip, Intel launched a global ad campaign that features
different combinations of celebrities. These celebrities were chosen because they are widely
recognized in the key world markets. This type of strategy is referred to as:
A) product-communications extension.
B) product extension-communications adaptation.
C) product adaptation-communications extension.
D) product-communication adaptation.
E) product invention.

e
73) Colgate's Total is a new toothpaste brand whose formulation, imagery, and consumer appeal
were designed from the beginning to translate across national boundaries. Which strategy did
Colgate use with Total?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product innovation

e
74) Hindustan Lever recently developed a hard candy flavored with natural fruit juice that it sells
profitably in India for the equivalent of 1 cent per piece. This is Hindustan Lever's first-ever
candy product. What strategy is evident here?
A) product-communications extension
B) product extension-communications adaptation
C) product adaptation-communications extension
D) dual adaptation
E) product invention

b
75) In Chinese markets, Nike had a problem using the "Just Do It" attitude which was found not
to be appropriate. Finally, Nike decided to use Chinese athletes in their promotion. This type of
adaptation was needed due to:
A) the Chinese do not wear running shoes.
B) ingrained Chinese values which respect authority.
C) Chinese athletes use Nike shoes.
D) "Just do it" in Chinese has a negative connotation.
E) parents do not want their children to see such ads.

d
76) Which of the following consumer products companies experienced a major product failure in
Europe due to inadequate test marketing?
A) Procter & Gamble
B) Colgate
C) Kao
D) Unilever
E) Seagram

e
88) Products that belong to the category of "game changers" are considered as ________
innovations.
A) new product
B) line extensions
C) continuous
D) dynamically continuous
E) discontinuous

e
89) Guidelines which can assist managers in their effort to establish global brand leadership
include all of the following except:
A) create a compelling value proposition for customers.
B) before taking brand overseas, select name, marks and symbols.
C) make a process template available to all managers.
D) assign specific responsibility for managing branding issues.
E) make a process template for international consumers.

c
90) The formulation, imagery, and consumer appeal of Colgate's Total brand toothpaste were
designed to translate across national boundaries. This new global brand represents which type of
product innovation?
A) discontinuous innovation
B) dynamically continuous innovation
C) continuous innovation
D) comparative innovation
E) dynamically discontinuous innovation

a
91) When introduced in the late 1970s, the VCR created new patterns of consumer behavior. For
example, assuming the user could learn to set the timer, he or she could tape programs to watch
at a later time. DVD, a playback only video system, was introduced in the late 1990s. DVD discs
contain full-length movies with digital sound in a format that resembles conventional music
compact discs. Which of the following most accurately describes the respective degree of
newness of these two global products?
A) The VCR is a discontinuous innovation; the DVD is a dynamically continuous innovation.
B) The VCR is a dynamically continuous innovation; the DVD is a discontinuous innovation.
C) The VCR and DVD are both dynamically continuous innovations.
D) The VCR and DVD are both discontinuous innovations.
E) The VCR and DVD are both continuous innovations.

c
92) The introduction of consumer VCRs in the late 1970s initiated a revolutionized in-home
electronic entertainment. For example, assuming the user could learn to set the timer, he or she
could tape programs to watch at a later time. The VCR's popularity also gave rise to an entirely
new retailing concept, the video rental store. What type of innovation did the consumer VCR
represent?
A) a continuous innovation
B) a dynamically continuous innovation
C) a discontinuous innovation
D) a comparative innovation
E) none of the above

b
93) The Advanced Photo System (APS) created by Kodak and its partners combines traditional
chemical photo processing with digital technology. One benefit of the system is that shutterbugs
can choose three different print sizes. The APS would best be described as a:
A) continuous innovation.
B) dynamically continuous innovation.
C) discontinuous innovation.
D) platform-based innovation.
E) new and improved innovation.

d
94) After four years of product development, Procter & Gamble recently introduced a new,
improved disposable diaper. Pampers Rash Guard diapers are designed to prevent diaper rash
and represent the first time a company has made a medical claim for its diapers. What kind of
innovation do the new diapers represent?
A) platform-based innovation
B) dynamically continuous innovation
C) discontinuous innovation
D) continuous innovation
E) none of the above

a
95) Procter & Gamble recently introduced Pampers Rash Guard. Rash Guard does not represent
a new product per se; rather, the diapers are being marketed as an alternative to regular Pampers.
What type of innovation do Pampers Rash Guard diapers represent?
A) a continuous innovation
B) a dynamically continuous innovation
C) a discontinuous innovation
D) a platform-based innovation
E) none of the above

b
96) Motorola's failed Iridium venture was a global satellite telephone network designed to allow
users to make or receive calls anywhere on the globe using handsets that are somewhat bigger
than typical cellular phones. What type of innovation did Iridium represent?
A) a continuous innovation
B) a dynamically continuous innovation
C) a discontinuous innovation
D) a platform-based innovation
E) none of the above

c
97) By definition, a ________ requires a large amount of learning on the part of users and
typically creates new markets and consumption patterns.
A) continuous innovation
B) dynamically continuous innovation
C) discontinuous innovation
D) platform-based innovation
E) new and improved innovation

c
98) The challenges in bringing the Smart across the Atlantic include all of the following except:
A) the euro's strength relative to dollar.
B) DaimlerChrysler merger ended.
C) Smart was under the ownership of DaimlerChrysler.
D) Smart was under the ownership of Daimler AG.
E) distribution and promotion critical to a successful U.S. launch.

e
99) The corporate development team at Virgin evaluates more than a dozen proposals each day
from outside and within the company. When assessing new-product ideas, they look for all of the
following except:
A) synergy with existing Virgin products.
B) pricing and return on investment.
C) marketing opportunities.
D) if the idea "uses or abuses" the Virgin brand.
E) aesthetic attributes of competitors products.

e
100) In the summer of 2006, it was announced that the company's Smart car would be offered for
sale in the United States. Which global company was responsible for bringing the Smart car to
market?
A) Swatch
B) Volkswagen
C) Nissan
D) Ford
E) DaimlerChrysler