consumer behavior, 10e (schiffman/kanuk) web viewchapter 13 cross-cultural consumer behavior: an...

Consumer Behavior, 10e (Schiffman/Kanuk)Chapter 13 Cross-Cultural Consumer Behavior: An International Perspective

1) Differences between consumers of different societies are known as ________. A) cross-cultural interpretation B) cross-cultural consumer research C) cross-cultural analysis D) cross-cultural differences E) cross-cultural localization Answer: DDiff: 1 Page Ref: 406Skill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

2) The objective of understanding cross-cultural differences is to ________. A) develop effective targeted marketing strategies to use in each foreign market of interest B) be informed as good citizens C) to fulfill a societal marketing aspect D) to be considered a global company E) to fulfill their social responsibilities Answer: ADiff: 2 Page Ref: 406Skill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

3) A ________ marketing perspective stresses the similarities among consumers worldwide. A) diverse B) international C) global D) comprehensive E) localized Answer: CDiff: 1 Page Ref: 408Skill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

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4) A ________ marketing strategy stresses the diversity among consumers in different nations. A) diverse B) international C) global D) comprehensive E) localized Answer: EDiff: 2 Page Ref: 408AACSB: Reflective ThinkingSkill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

5) A company that includes a blend of standardized and local elements in order to secure the benefits of their different marketing strategies is called a ________. A) smart companyB) global companyC) multinational companyD) glocal company E) international company Answer: DDiff: 3 Page Ref: 408AACSB: Analytic SkillsSkill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

6) A glocal company is one that ________. A) is both global and local B) operates inside and outside the U.S. C) is a company that is environmentally oriented D) buys products locally and sells them globally E) blends a uniform communication strategy with a uniform product Answer: ADiff: 1 Page Ref: 408Skill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy


7) Why are firms selling their products all over the world? A) Overseas markets represent the single most important opportunity for growth. B) Trade agreements require all companies operating within the agreement nations to have a global plan. C) Companies fear competition from "me too" products elsewhere.D) Companies want to gain new production and marketing ideas.E) Companies seek to take advantage of lower labor costs.Answer: ADiff: 3 Page Ref: 408AACSB: Reflective ThinkingSkill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

8) ________ provide(s) a form of "culture transfer" when companies expand their markets by bringing new products, services, practices, ideas, and experiences to potential consumers residing in a different country and possessing a different cultural view.A) International marketingB) TravelC) Movies D) GiftsE) Television Answer: ADiff: 3 Page Ref: 409AACSB: Analytic SkillsSkill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

9) ________ is made up of 27 member countries in Europe who allow the free movement of goods and services.A) NAFTAB) The European UnionC) CAFTAD) ASEANE) MercosurAnswer: BDiff: 1 Page Ref: 408Skill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy


10) ________, which currently consists of the United States, Canada, and Mexico, provides free market access to more than 440 million consumers.A) NAFTAB) The European UnionC) CAFTAD) ASEANE) MercosurAnswer: ADiff: 1 Page Ref: 408Skill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

11) ________ is a free trade agreement that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.A) NAFTAB) The European UnionC) CAFTAD) ASEANE) MercosurAnswer: CDiff: 1 Page Ref: 408Skill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

12) By exposing consumers to unfamiliar and foreign products, international marketing provides a form of ________. A) cross-cultural diversity B) culture transfer C) international homogeneity D) cross-cultural analysis E) stereotyping Answer: BDiff: 3 Page Ref: 409Skill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy


13) When consumers make consumption decisions based on an association between the product, brand name, or service, and the country in which it was made, this is referred to as ________. A) jumping to conclusions B) stereotypingC) country of origin effects D) the halo effect E) judging value Answer: CDiff: 2 Page Ref: 410Skill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

14) A research study in Turkey found that while products from Germany, France, Italy, and Israel were favored by Turkish consumers for their quality, design, and performance, products from the United States and England were chosen for their reliability and warranty. This is an example of ________.A) jumping to conclusions B) stereotypingC) country of origin effects D) the halo effect E) judging value Answer: CDiff: 2 Page Ref: 410Skill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

15) Of the three entities involved in country of origin, ________ has the strongest influence on product evaluations. A) country of design B) country of sale C) country of assembly D) country of purchase E) country of parts Answer: EDiff: 2 Page Ref: 411Skill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy


16) American consumers who preferentially select products made in the USA demonstrate high ________. A) cultural homogeneity B) national heritage C) belief structure D) international view E) consumer ethnocentrism Answer: EDiff: 1 Page Ref: 410Skill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

17) ________ is defined as the effort to determine to what extent the consumers of two or more nations are similar or different. A) Cross-cultural difference B) Consumer behavior C) Cross-cultural analysis D) Country of origin effects E) Marketing research Answer: CDiff: 1 Page Ref: 412AACSB: Analytic SkillsSkill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

18) ________ can provide marketers with an understanding of the psychological, social, and cultural characteristics of the foreign consumers they wish to target, so that they can design effective marketing strategies for the specific national markets involved. A) Marketing research B) Cross-cultural analysis C) Cross-cultural difference D) Country of origin research E) Consumer behavior Answer: BDiff: 2 Page Ref: 412Skill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies


19) If the cultural beliefs, values, and customs of specific target countries are found to differ widely then a highly ________ marketing strategy is indicated for each country. A) individualizedB) generalized C) homogenized D) heterogeneous E) uniform Answer: ADiff: 2 Page Ref: 413Skill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

20) By 2020, the middle class will grow to constitute over ________ of the world's population.A) 50%B) 60%C) 70%D) 75%E) 80%Answer: ADiff: 2 Page Ref: 414Skill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

21) According to recent projections, the middle class will increase in size by 1.8 billion people, of which about one third will be in ________.A) ChinaB) IndiaC) Western EuropeD) the United StatesE) RussiaAnswer: ADiff: 2 Page Ref: 414AACSB: Analytic SkillsSkill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies


22) Many marketers, finding their home markets to be nearing the saturation point in terms of sales opportunities, are looking to the growing ________ in developing countries to expand their sales. A) lower class B) working class C) middle class D) wealthy class E) upper class Answer: CDiff: 3 Page Ref: 415Skill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

23) Which of the following is true of the middle class in emerging markets?A) Companies can expect middle class consumers worldwide to earn roughly the same income.B) Middle-class consumers in less-developed nations often cannot afford to pay as much for a product as consumers in the more advanced economies do.C) The majority of the global middle class lives in developed nations. D) Only one-third of people living in developing countries are literate.E) The emerging middle class constitutes the highest percentage of the total country population in Mexico.Answer: BDiff: 3 Page Ref: 415Skill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

24) The reason that many products fail when marketed in a foreign country is ________. A) many companies do not insure their products against theft B) many companies assume that if a product is a success domestically than it will be accepted anywhere C) marketers do not go through enough enculturation education D) marketers' use of localized marketing strategies negatively influence consumer preferences E) country of origin effects Answer: BDiff: 3 Page Ref: 418AACSB: Reflective ThinkingSkill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies


25) Learning about foreign cultures is called ________. A) enculturation B) acculturation C) ethnocentrism D) consumer research E) novoculturation Answer: BDiff: 1 Page Ref: 418AACSB: Analytic SkillsSkill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

26) To overcome a narrow and culturally myopic view, marketers must go through a(n) ________ process. A) acculturation B) enculturation C) proculturation D) adculturation E) novoculturation Answer: ADiff: 3 Page Ref: 418Skill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

27) Company A appeals to consumers in different countries in terms of their "common" needs, values, and goals. Company A is using ________ as a segmentation strategy. A) national borders B) international status C) shared needs and values D) local concerns E) contemporary issues Answer: CDiff: 2 Page Ref: 420Skill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


28) Company B appeals to consumers in different countries by using relatively different, "local," or specific marketing strategies for members of distinctive cultures or countries. Company B is using ________ as a segmentation strategy. A) shared needs and values B) national borders C) international status D) local concerns E) contemporary issues Answer: BDiff: 2 Page Ref: 420Skill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

29) Two nations may use or consume the same product in very different ways or for different purposes. This is an example of which of the following basic research issues in cross-cultural analysis? A) differences in language and meaning B) differences in marketing research possibilities C) differences in consumption patterns D) differences in perceived benefits of products and services E) differences in economic and social conditions and family structure Answer: DDiff: 3 Page Ref: 419, Table 13.8Skill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

30) The income, social class, age, and sex of target customers may differ dramatically between two different countries. This is an example of which of the following basic research issues in cross-cultural analysis? A) differences in language and meaning B) differences in marketing segmentation opportunities C) differences in consumption patterns D) differences in perceived benefits of products and services E) differences in economic and social conditions and family structureAnswer: BDiff: 3 Page Ref: 419, Table 13.8AACSB: Analytic SkillsSkill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies


31) In some cultures, the female head of household is the primary decision-maker when it comes to purchases for the family. In others, it is the male head of household. This is an example of which of the following basic research issues in cross-cultural analysis? A) differences in language and meaning B) differences in marketing research possibilities C) differences in consumption patterns D) differences in perceived benefits of products and services E) differences in economic and social conditions and family structure Answer: EDiff: 3 Page Ref: 419, Table 13.8Skill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

32) The availability of professional consumer researchers can vary considerably from country to country. This is an example of which of the following basic research issues in cross-cultural analysis?A) differences in language and meaning B) differences in marketing research possibilities C) differences in consumption patterns D) differences in perceived benefits of products and services E) differences in economic and social conditions and family structure Answer: BDiff: 3 Page Ref: 419, Table 13.8AACSB: Analytic SkillsSkill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

33) ________ products are manufactured, packaged, and positioned in exactly the same way regardless of the country in which they are sold. A) Regional brand B) World brand C) National brand D) Local brand E) International brand Answer: BDiff: 2 Page Ref: 420AACSB: Analytic SkillsSkill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


34) An upscale wristwatch such as Patek Philippe would be best marketed through a ________ strategy. A) global B) world brand C) adapted marketing D) mass marketing E) direct marketing Answer: BDiff: 3 Page Ref: 420Skill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

35) _________ refers to the fact that consumers view global brands as a kind of "cultural ideal," and their purchase and use makes the consumer feel like a citizen of the world. A) Quality signal B) Social responsibility C) Constructive marketing D) Global myth E) Corporate speculation Answer: DDiff: 2 Page Ref: 422AACSB: Analytic SkillsSkill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

36) Global companies are held to a higher level of ________ than local brands, and are expected to respond to social problems associated with what they sell. A) quality B) corporate social responsibility C) identification D) prestige E) employment Answer: BDiff: 2 Page Ref: 422Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


37) The majority of a country's citizens fall into which one of the following categories with respect to their view of global brands? A) global citizens B) global dreamers C) antiglobals D) global pragmatists E) global agnostics Answer: ADiff: 2 Page Ref: 422AACSB: Multicultural and DiversitySkill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

38) According to research presented in the text, ________ feel that global brands are higher in quality than local brands, but dislike brands that preach U.S. values and do not trust global companies to act responsibly. A) global citizens B) global dreamers C) antiglobals D) global pragmatists E) global agnostics Answer: ADiff: 2 Page Ref: 422Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

39) According to research presented in the text, ________ view global brands as quality products, and are not particularly concerned about the social responsibility issue. A) global citizens B) global dreamers C) antiglobals D) global pragmatists E) global agnostics Answer: BDiff: 2 Page Ref: 423Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


40) According to research presented in the text, ________ evaluate global brands in the same way they evaluate local brands. A) global citizens B) global dreamers C) antiglobals D) global pragmatists E) global agnostics Answer: EDiff: 2 Page Ref: 423AACSB: Reflective ThinkingSkill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

41) McDonald's tries to adapt its advertising messages to the specific values of particular cultures. This makes it a ________ company. A) globalB) local C) glocal D) world brand E) multinational Answer: CDiff: 2 Page Ref: 423Skill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

42) According to recent consumer research, which of the following is true of combining global and local marketing strategies? A) Consumers in different countries of the world are exposed to roughly the same level of advertising. B) Consumers worldwide focus more on the aesthetic qualities of advertising than on the product-related claims made. C) Creating a general consensus of meaning across various cultures can be achieved using strong visual images whose fundamental message is highly apparent. D) In developing advertising for international markets, localizing language to blend with the local culture is considered to be the least important component of advertising customization. E) The most effective way to reach international markets for all types of products is by using a uniform advertising theme. Answer: CDiff: 3 Page Ref: 424AACSB: Reflective ThinkingSkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


43) What is the most important advertising component that will blend with the local culture? A) language B) localizing product attributes C) use of local models D) using local music E) using local advertising settings Answer: ADiff: 2 Page Ref: 424Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

44) A ________ advertising strategy involves standardization of both the product and the communications program. A) local B) national C) restricted D) global E) mixed Answer: DDiff: 1 Page Ref: 424Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

45) A ________ advertising strategy involves customizing both the product and communications program. A) local B) national C) restricted D) global E) mixed Answer: ADiff: 1 Page Ref: 424Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


46) A ________ advertising strategy involves customizing either the product or the communications program. A) local B) restricted C) national D) global E) mixed Answer: EDiff: 2 Page Ref: 424Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

47) There are four possible global marketing strategies, one of which is a mixed strategy, which involves offering ________. A) a uniform product and a customized messageB) a customized pricing scheme and a uniform message C) a uniform product and a uniform message D) a customized product and a customized message E) a uniform product and a uniform pricing scheme Answer: ADiff: 3 Page Ref: 425, Table 13.10AACSB: Analytic SkillsSkill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

48) There are four possible global marketing strategies, one of which is a global strategy, which involves offering ________. A) a uniform product and a customized message B) a uniform product and a uniform message C) a customized pricing strategy and a uniform message D) a customized product and a uniform message E) a customized product and a customized message Answer: BDiff: 3 Page Ref: 425, Table 13.10AACSB: Analytic SkillsSkill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


49) There are four possible global marketing strategies, one of which is a local strategy, which is offering ________. A) a uniform product and a customized message B) a uniform product and a uniform message C) a customized product and a uniform message D) a customized product and a customized message E) a uniform pricing strategy and a customized productAnswer: DDiff: 3 Page Ref: 425, Table 13.10Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

50) Product standardization works best with ________ products. A) snack food B) cleaning C) high tech D) fashion and clothing E) agricultural Answer: CDiff: 2 Page Ref: 426, Table 13.11Skill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

51) A localized marketing strategy works best when ________.A) the local economy is prosperous B) there are very few market segmentsC) there is intense local competitionD) the company's international reputation is very goodE) there are few potential local partners Answer: CDiff: 3 Page Ref: 426, Table 13.11AACSB: Multicultural and DiversitySkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


52) When seeking success in a foreign market, it has been suggested that a company should remember the following P's: ________. A) place, position, and products B) price, place, and people C) place, price, and position D) place, people, and products E) products, people and position Answer: DDiff: 3 Page Ref: 425Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

53) The Chevrolet Nova did not sell well in Latin America because the Spanish word Nova means "it doesn't run." This is an example of failure due to which of the following of the three P's?A) Product B) ProjectionC) Pricing D) PlacementE) PeopleAnswer: ADiff: 3 Page Ref: 425AACSB: Analytic SkillsSkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

54) When Snapple failed to reduce the level of sweetness before offering it to the Japanese market, sales came in significantly below anticipated levels. This is an example of failure due to which of the following three P's? A) PlacementB) Pricing C) PromotionD) Product E) PeopleAnswer: DDiff: 1 Page Ref: 425AACSB: Analytic SkillsSkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


55) Using different colors to package products that are being sold in foreign countries is a way to overcome failure due to ________ problems. A) product B) pricing C) distribution D) promotional E) consumption Answer: ADiff: 3 Page Ref: 425Skill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

56) Which of the following global consumer market segments is the youngest group?A) strivers B) devouts C) fun Seekers D) creatives E) intimates Answer: CDiff: 3 Page Ref: 427Skill: ConceptObjective: 13.4: Understand how lifestyle and psychographic segmentation can be used in developing global or local marketing strategies

57) Which of the following global consumer market segments is known for seeking knowledge and insight, and having a keen interest in books and new media? A) strivers B) devouts C) fun Seekers D) creatives E) intimates Answer: DDiff: 3 Page Ref: 427Skill: ConceptObjective: 13.4: Understand how lifestyle and psychographic segmentation can be used in developing global or local marketing strategies


58) Which of the following global consumer market segments considers material things to be extremely important? A) strivers B) devouts C) fun seekers D) creatives E) intimates Answer: ADiff: 3 Page Ref: 427Skill: ConceptObjective: 13.4: Understand how lifestyle and psychographic segmentation can be used in developing global or local marketing strategies

59) Which of the following global consumer market segments is most focused on social relationships and family? A) strivers B) devouts C) fun seekers D) creatives E) intimates Answer: CDiff: 3 Page Ref: 427Skill: ConceptObjective: 13.4: Understand how lifestyle and psychographic segmentation can be used in developing global or local marketing strategies

CLOTHING MINI CASE: Outer Limits Outfitters is an Swiss company that makes clothes for skiing and snowboarding. The company produces standardized lines of clothing for sale at its retail outlets worldwide. In Switzerland,. Outer Limits' advertising portrays the company as a distinctly Swiss brand. In other countries, however, it creates localized advertising, using local actors and local scenery. Outer Limits also makes substantial donations to regional natural preservation charities in its various markets because it knows that natural conservation is very important to its core consumers.

60) In the CLOTHING MINI CASE, Outer Limits Outfitters would be considered a(n) ________.A) global brand B) acculturated brand C) subsidiary brand D) national brand E) local brand Answer: ADiff: 3 Page Ref: 422Skill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


61) In the CLOTHING MINI CASE, if U.S. consumers held positive perceptions of Outer Limits Outfitters because it is a Swiss company and the Swiss are known for having beautiful mountains and high quality goods, this would be an example of ________.A) country of origin effectsB) localized strategyC) glocal brandingD) cross-cultural analysisE) consumer ethnocentricityAnswer: ADiff: 3 Page Ref: 410Skill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

62) In the CLOTHING MINI CASE, the majority of Outer Limits' consumers fall into the ________ consumer segment.A) Global CitizensB) Global DreamersC) Global IndifferentsD) AntiglobalsE) Global AgnosticsAnswer: ADiff: 3 Page Ref: 422AACSB: Reflective ThinkingSkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

63) In the CLOTHING MINI CASE, the success of Outer Limits clothing abroad is most clearly attributable to ________. A) quality signal B) social responsibility C) international prestige D) global myth E) cross-cultural analysis Answer: DDiff: 3 Page Ref: 422AACSB: Analytic SkillsSkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


64) In the CLOTHING MINI CASE, Outer Limits' marketing strategy would be best described as ________. A) global B) mixed C) homogenous D) local E) individualistic Answer: BDiff: 3 Page Ref: 425, Table 13.10Skill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

CRAFT MINI CASE: Global Craft is an importer of crafts from Indian and African craftsmen to the United States. The company broadcasts a standardized advertising campaign nationwide emphasizing the fair price that it pays for the crafts that it imports, supporting rather than exploiting these craftsmen. Its advertising also serves to introduce American consumers to international craft products to which they may not have been already introduced.

65) In the CRAFT MINI CASE, Global Craft capitalizes on its reputation for ________ to promote the products it imports.A) social responsibility B) global myth C) quality signaling D) prestige E) value Answer: ADiff: 3 Page Ref: 422Skill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

66) In the CRAFT MINI CASE, Global Craft highlights the exotic origins of the crafts it imports, relying on positive ________ to promote sales of its imports. A) cultural exposure B) consumption experiences C) country of origin effects D) cross-cultural differences E) standardized products Answer: CDiff: 3 Page Ref: 410Skill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy


67) In the CRAFT MINI CASE, Global Craft's advertising strategy would be best described as ________. A) heterogeneous B) localized C) individualized D) value-driven E) standardized Answer: EDiff: 3 Page Ref: 420Skill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

68) In the CRAFT MINI CASE, Global Craft's marketing provides a form of ________. A) cross-cultural analysis B) culture transfer C) indirect selling D) enculturation E) world brand Answer: BDiff: 3 Page Ref: 409Skill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

69) In the CRAFT MINI CASE, the majority of Global Craft's consumers fall into the ________ consumer segment.A) Global CitizensB) Global DreamersC) Global IndifferentsD) AntiglobalsE) Global AgnosticsAnswer: ADiff: 3 Page Ref: 422AACSB: Reflective ThinkingSkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


COLA MINI CASE: Fizzy Cola is a manufacturer of sodas that has come to be regarded as a symbol of American values and society and has traditionally supplied beverages to the United States Armed Forces. Given that Islamic law prohibits the consumption of alcohol, Fizzy Cola sees a huge market potential for its refreshing, non-alcoholic beverages in the Middle East. Due to current geopolitical conditions, however, marketing Fizzy Cola as a symbol of America is unlikely to be a successful marketing approach with Muslim consumers in the Middle East. As a result, Fizzy Cola plans to tailor its marketing message to the specific needs and values of the potential markets in the Middle East. Market research, however, has been hindered by laws in the area, especially in Saudi Arabia, where gatherings of more than four people are illegal, making focus group research a near impossibility.

70) In the COLA MINI CASE, Fizzy Cola plans to use a(n) ________ marketing strategy to reach customers in the Middle East.A) individualized B) global C) international D) homogeneous E) uniform Answer: ADiff: 2 Page Ref: 413Skill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

71) In the COLA MINI CASE, marketers of Fizzy Cola must undergo a process of ________ in order to recognize the relevant factors pertaining to the usage of its products in the Middle East.A) enculturation B) acculturation C) proculturation D) novoculturation E) adculturation Answer: BDiff: 2 Page Ref: 418Skill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies


72) In the COLA MINI CASE, marketing of Fizzy Cola in the Middle East as a symbol of America is likely to fail largely due to ________. A) cross-cultural analysis B) indirect selling C) country of origin effects D) prestige properties E) global segmentation strategies Answer: CDiff: 3 Page Ref: 410Skill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

73) In the COLA MINI CASE, Fizzy Cola's marketing research difficulties arise from which of the following basic research issues in cross-cultural analysis?A) differences in consumption patterns B) differences in economic and social conditions C) differences in market segmentation opportunities D) differences in language and meaning E) differences in marketing research possibilities Answer: EDiff: 3 Page Ref: 419, Table 13.8Skill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

74) In the COLA MINI CASE, Islamic law prohibits the consumption of alcohol, leading to a relative increase in the consumption of soft drinks by Muslims in the Middle East. This is an example of ________.A) differences in consumption patterns B) differences in economic and social conditions C) differences in market segmentation opportunities D) differences in language and meaning E) differences in marketing research possibilities Answer: ADiff: 3 Page Ref: 419, Table 13.8Skill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies


75) The formation of the European Union has resulted in the transformation of the European continent into a homogeneous market of people with the same or very similar wants and needs. Answer: FALSEDiff: 3 Page Ref: 408Skill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

76) Overseas markets represent the single most important opportunity for the future growth of firms whose home markets have reached maturity. Answer: TRUEDiff: 1 Page Ref: 408AACSB: Analytic SkillsSkill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

77) Consumers around the world are increasingly reluctant to try foreign products that are popular in different and far-off places. Answer: FALSEDiff: 2 Page Ref: 408Skill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

78) The only way consumers gain exposure to different cultures is through their travel, living, and working in foreign countries. Answer: FALSEDiff: 1 Page Ref: 409AACSB: Reflective ThinkingSkill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

79) The Swiss have a reputation for making excellent watches, demonstrating that consumers tend to have an established attitude or preference when it comes to a particular product being made in a particular country. Answer: TRUEDiff: 2 Page Ref: 410AACSB: Multicultural and DiversitySkill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy


80) Country of design, country of assembly, and country of parts are three dimensions that make up country of origin. Answer: TRUEDiff: 1 Page Ref: 410AACSB: Analytic SkillsSkill: ConceptObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

81) The smaller the similarity between nations, the more feasible it is to use relatively similar marketing strategies in each nation. Answer: FALSEDiff: 1 Page Ref: 412AACSB: Reflective ThinkingSkill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

82) A firm's success in marketing a product or service in a number of foreign countries is likely to be influenced by how similar the beliefs, values, and customs are that govern the use of the product in the various countries. Answer: TRUEDiff: 1 Page Ref: 412Skill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

83) Products are viewed in the same way in all countries. Answer: FALSEDiff: 1 Page Ref: 416AACSB: Reflective ThinkingSkill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

84) Teenagers appear to have quite similar interests, desires, and consumption behavior no matter where they live. Answer: TRUEDiff: 3 Page Ref: 416Skill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies


85) Global brands are viewed differently than local brands, and consumers worldwide associate global brands with three characteristics: quality signal, global myth, and social responsibility. Answer: TRUEDiff: 2 Page Ref: 422AACSB: Analytic SkillsSkill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

86) Consumers believe that the more people who purchase a brand, the higher the brand's quality, which often results in a global brand being able to command a premium price. Answer: TRUEDiff: 2 Page Ref: 422AACSB: Reflective ThinkingSkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

87) Consumers worldwide believe that local brands develop new products and breakthrough technologies at a faster pace than global brands. Answer: FALSEDiff: 3 Page Ref: 422AACSB: Analytic SkillsSkill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

88) There are four major segments in each country with respect to how its citizens view global brands. These include: global citizens, global dreamers, antiglobals, and global agnostics. Answer: TRUEDiff: 1 Page Ref: 423AACSB: Analytic SkillsSkill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

89) Global pragmatists use a company's global success as an indication of product quality and innovativeness, and are also concerned that the firm acts in a socially responsible manner. Answer: FALSEDiff: 2 Page Ref: 423Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


90) Consumers are more responsive when advertising content is adapted to their local needs. Answer: TRUEDiff: 1 Page Ref: 426AACSB: Multicultural and DiversitySkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

91) Local adaptation of marketing material involves no more than translating Web pages into the local language. Answer: FALSEDiff: 1 Page Ref: 426Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

92) Consumers in different countries of the world have roughly the same amount of exposure to advertisements. Answer: FALSEDiff: 1 Page Ref: 424Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

93) Product standardization appears to be most successful for high-involvement products that approach either end of the high-tech/high-touch continuum. Answer: TRUEDiff: 3 Page Ref: 425AACSB: Analytic SkillsSkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

94) Low-involvement products in the midrange of the high-tech/high-touch continuum are most suitably marketed as global brands. Answer: FALSEDiff: 3 Page Ref: 425Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


95) In general, demographic segments in other nations want to be or act like Americans. Answer: FALSEDiff: 1 Page Ref: 425AACSB: Multicultural and DiversitySkill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

96) The Internet is a culturally neutral medium. Answer: FALSEDiff: 2 Page Ref: 426Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

97) The largest of the six global consumer market segments are the Altruists. Answer: FALSEDiff: 3 Page Ref: 427AACSB: Analytic SkillsSkill: ConceptObjective: 13.4: Understand how lifestyle and psychographic segmentation can be used in developing global or local marketing strategies

98) Strivers are dedicated to technology, knowledge, and learning, and are the highest consumers of media. Answer: FALSEDiff: 3 Page Ref: 427Skill: ConceptObjective: 13.4: Understand how lifestyle and psychographic segmentation can be used in developing global or local marketing strategies

99) Intimates are consumers focused on relationships close to home, such as spouses, significant others, family, and friends. Answer: TRUEDiff: 3 Page Ref: 427Skill: ConceptObjective: 13.4: Understand how lifestyle and psychographic segmentation can be used in developing global or local marketing strategies


100) What is the motivation for firms to sell their products worldwide? Answer: Firms are selling their products worldwide for a variety of reasons. First, with the buildup of "multinational fever" and the general attractiveness of multinational markets, products or services originating in one country are increasingly being sought out by consumers in other parts of the world. Second, many firms have learned that overseas markets represent the single most important opportunity for their future growth when their home markets reach maturity. Consumers all over the world are increasingly eager to try foreign products that are popular in different and far-off places. Diff: 2 Page Ref: 408AACSB: Reflective ThinkingSkill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy

101) How does a product's country of origin influence how consumers rate quality and which brands they will ultimately select? Give an example. Answer: Consumers tend to have an established attitude or preference when it comes to a particular product being made in a particular country. Country of origin effects influence how consumers rate quality and which brands they will ultimately select. For example, a consumer might be negatively influenced when he learns that a television set he is considering is made in a country he does not associate with fine electronics, like Cuba. When consumer motivation is high and when a specific model of a product is being evaluated, as opposed to a range of products manufactured in a particular country, then consumers are less likely to base judgments on country of origin information. However, when consumers are less familiar with foreign products, country of origin becomes an important extrinsic cue. Diff: 2 Page Ref: 410AACSB: Multicultural and DiversitySkill: ApplicationObjective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy


102) How has the growth of the middle class in developing countries impacted marketers? Answer: The growing middle class in developing countries is a phenomenon that is very attractive to global marketers who are often eager to identify new customers for their products. This expansion of the middle class is based on the reality that, although per capita income may be low, there is nevertheless considerable buying power in such countries. These consumers in less developed nations, however, often cannot afford to pay as much for a product as consumers in more advanced economies. Nevertheless, the rapid expansion of middle class consumers over the past 50 years has attracted the attention of many marketers, who are finding their home markets to have reached the saturation point in terms of sales opportunities. Ultimately, more consumer goods are sold each year because of the growth of the world's middle class population, and a marketer would do well to focus more on the emerging middle class in other nations than on people who cannot afford to buy its products in its home market. Diff: 3 Page Ref: 414AACSB: Reflective ThinkingSkill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

103) What is acculturation and how does it affect marketers? Answer: Acculturation is learning about other cultures. Marketers need to be educated about other cultures before entering foreign countries in order not to make the wrong assumptions about what is going to be a successful product versus what might fail. Diff: 1 Page Ref: 418Skill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

104) In a sense, cross-cultural acculturation is a dual process for marketers. How does this dual process work? Give an example. Answer: In a sense, cross-cultural acculturation is a dual process for marketers. First, marketers must thoroughly orient themselves to the values, beliefs, and customs of the new society to appropriately position and market their products. Second, to gain acceptance for a culturally new product in a foreign society, they must develop a strategy that encourages members of that society to modify or even break with their own traditions.

For example, a social marketing effort designed to encourage consumers in developing nations to secure polio vaccinations for their children would require marketers to obtain an in-depth picture of a society's present attitudes and customs with regard to preventative medicine, then devise promotional strategies that will convince members of a target market to have their children vaccinated, even if doing so requires a change in current attitudes. Diff: 3 Page Ref: 418Skill: ApplicationObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies


105) What are three of the issues that might deter researchers from conducting marketing research in foreign countries? Answer: Students may select any three of the following basic research issues in cross-cultural analysis: ∙ Differences in language and meaning: words or concepts may not mean the same things in two different countries ∙ Differences in market segmentation opportunities: the income, social class, age, and sex of target customers may differ dramatically between two different countries∙ Differences in consumption patterns: two countries may differ substantially in the level of consumption or use of products or services ∙ Differences in the perceived benefits of products and services: two nations may use or consume the same product in very different ways ∙ Differences in the criteria for evaluating products and services: the benefits sought from a service may differ from country to country ∙ Differences in economic and social conditions and family structure: the "style" of family decision making may vary significantly from country to country∙ Differences in marketing research and conditions: the types and quality of retail outlets and direct-mail lists may vary greatly among countries∙ Differences in marketing research possibilities: the availability of professional consumer researchers may vary considerably from country to country Diff: 3 Page Ref: 419, Table 13.8Skill: ConceptObjective: 13.2: Understand how to study the differences among cultures while developing marketing strategies

106) Do all consumers, internationally, respond similarly to brand extensions from global brands?Answer: Just because a brand may be global in character does not mean that consumers around the world will necessarily respond similarly to a brand extension. Consumer acceptance of brand extensions depends on cultural perceptions of brands and how the extension fits into that perception. For example, Eastern culture consumers think about brands in a holistic way and are more apt to judge there to be a reasonable fit between a brand extension and the core product than are Westerners, who have a more analytic style of thinking that focuses on the attributes or parts of objects. Diff: 3 Page Ref: 423AACSB: Multicultural and DiversitySkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy


107) What are the four possible multinational marketing strategies with regard to standardization and localization? Answer: When going into foreign markets, we have the option of complete standardization, where we use a uniform product and a uniform message. On the opposite end, we can modify both the product and the message to accommodate the foreign customer. There are two other options, which are using a mixed strategy of either modifying the message or the product, but not both. Diff: 3 Page Ref: 425, Table 13.10Skill: ConceptObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

108) When is standardization of product and message most appropriate? Answer: A global strategy and product standardization is most effective when marketing a high tech or high touch product. The target market is usually similar regardless of the country. Diff: 2 Page Ref: 424AACSB: Reflective ThinkingSkill: ApplicationObjective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy

109) Roper Starch Worldwide conducted a major multinational study and found out that most of the world can be segmented into six major segments. Talk about two of those segments. Answer: Students may discuss any two of the following: Strivers (23%): Value wealth, status, ambition, and power. They consider material things to be extremely important. Devouts (22%): Have more traditional values, like faith, duty, obedience, and respect for elders. Least involved with the media and least likely to want Western brands. Concentrated in Mideast, Africa, and Asia. Altruists (18%): Very outer focused – interested in social issues and causes. Generally well educated, older, and more female than the norm. Found in Russia and Latin America. Intimates (15%): These are "people people," and focus on relationships close to home. Often found in England, Hungary, the Netherlands, and the U.S. Very heavy users of media, as it gives them something to talk about to others. Fun Seekers (12%): The youngest group. They value, adventure, pleasure, and looking good, and spend time at bars, clubs, and restaurants. The group loves electronic media and is more global in its lifestyle, especially in music. Creatives (10%): Dedicated to technology, knowledge, and learning, and are the highest consumers of media, especially books, magazines, and newspapers. Members of this group are global trendsetters in owning and using a PC and in surfing the web. Diff: 3 Page Ref: 427AACSB: Reflective ThinkingSkill: ApplicationObjective: 13.4: Understand how lifestyle and psychographic segmentation can be used in developing global or local marketing strategies


consumer behavior, 10e (schiffman/kanuk) web viewchapter 13 cross-cultural consumer behavior: an...

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