This Document Contains Chapters 16 to 18 Chapter 16: Social Networks and Communication TRUE/FALSE 1. Social media leverage the power of electronic word of mouth. Answer: True 2. International communications via social networks are a form of mass marketing. Answer: True 3. Traditional marketing campaigns are dynamic and have an unlimited life. Answer: False 4. Traditional media serve niche markets well. Answer: False 5. The strength of the ties between marketers and consumers depends mainly on the frequency and quality of customer interactions related to the firm’s products. Answer: True 6. Podcasts are purely audio files for the iPod. Answer: False 7. The dynamic nature of cyberspace means that a single person can take on the roles of opinion provider, giver, and sharer. Answer: True 8. Individualist cultures are more likely than collectivist cultures to value brand-oriented interactions available through social media. Answer: False 9. Social media provide the means to obtain information instantly about a given brand, product category, and firm. Answer: True 10. Viral marketing depends on a low pass-along rate. Answer: False 11. The digital divide affects developed economies the most. Answer: False 12. Online marketing requires minimum commitment of time and resources. Answer: False 13. Measuring the effectiveness of social media is always easy. Answer: False 14. The Internet has surpassed television as the largest market for advertising. Answer: True 15. The online press room is a critical asset for publicizing the firm and its brands. Answer: True 16. Offering coupons online increases the costs of development, distribution, and database creation. Answer: False 17. Cultural differences have very little impact on the way social media are used around the world. Answer: False 18. Differences in technology diffusion drive the way social media are used around the world. Answer: True 19. To ensure social media success in international marketing, marketers should use mass media techniques rather than customizing messages to the audience. Answer: False 20. Continuous scanning helps a firm to deal proactively with emergent news stories that can harm the firm’s good name. Answer: True MULTIPLE CHOICE 1. A ____________ network is a communal structure consisting of individuals or organizations connected with each other through friendship, common interest, commercial transactions, information exchange, or other types of relationship. a. business b. technological c. social d. dependent Answer: C 2. When a social network converges around shared interests, goals, values, or attitudes, it fosters a common identity among its members, which is called ____________. a. a social community b. social loafing c. a social contagion d. social marketing Answer: A 3. Social ____________ refers to the use of communications technology by firms to promote their brands and connect with customers by creating Web pages, profiles, and advertising. a. facilitation b. contagion c. conceptualization d. media Answer: D 4. The extent to which people are exposed to, and influenced by, the knowledge, attitude, or behavior of others, particularly those in their peer group is known as social ____________. a. undermining b. facilitation c. loafing d. contagion Answer: D 5. Which of the following is an example of social contagion? a. A man purchasing an electronic gadget just because it was on sale b. A woman buying medicines over the counter that were prescribed by her doctor c. A retired man purchasing a house in an urban area so that he can socialize with wealthy people d. A middle-aged woman purchasing an anti-wrinkle cream just because her colleagues influenced her to try the product Answer: D 6. Which of the following is true about traditional marketing communications? a. They are two-way. b. They are inexpensive. c. They are the most efficient form of communications. d. They are fragmenting. Answer: D 7. Which of the following is true of traditional marketing communications? a. They are very well suited to smaller firms. b. They involve campaigns that have an unlimited life. c. They focus on a company-to-customer approach. d. They serve niche markets well. Answer: C 8. Social media differ from traditional media in that social media are ____________. a. expensive b. fragmenting c. inefficient d. interactive Answer: D 9. Which of the following is true of social media? a. They emphasize pushing or cajoling consumers to buy the firm’s products. b. They implement campaigns that are static, with a limited life. c. They are slowly fragmenting. d. They provide the means for consumers to voice negative as well as positive views on products and services. Answer: D 10. A ____________ is a Web site on which individuals make regular entries of commentary or descriptions of events. It is the fastest growing medium of personal publishing on the Internet. a. wiki b. blog c. forum d. podcast Answer: B 11. A(n) ____________ is a Web site developed and maintained by a community of users who add informative content on a variety of topics. a. podcast b. aggregator c. wiki d. VoIP Answer: C 12. An Internet ____________ is essentially a site where people hold conversations in the form of posted messages. a. wiki b. forum c. podcast d. bulletin board Answer: B 13. Which of the following is a factor behind the success of social media-based communications? a. Emphasis on pushing or cajoling consumers to buy the firm’s products b. Implementation of static campaigns with a limited lifespan c. Minimum requirement of time and resources d. Ability to measure consumer behavior and target highly specific market segments Answer: D 14. Which of the following is a marketing technique that facilitates and encourages people to pass along a marketing message to other users or sites, leading to a potentially exponential growth of communications? a. Ambush marketing b. Transformational marketing c. Reverse marketing d. Viral marketing Answer: D 15. Numerous firms in developing economies have accelerated marketing activities by skipping less efficient or more expensive approaches and embracing cost-effective social media to achieve marketing goals. This is known as: a. market cannibalization. b. astroturfing. c. technological leapfrogging. d. crowdsourcing. Answer: C 16. Millennials, those born between 1980 and 2000, regard using the Internet for ____________ as their favorite media activity. a. sending/receiving e-mails b. getting religious information c. social or personal interests d. creating blogs Answer: C 17. Brand ____________ refers to customers developing a personal relationship with the brand. a. engagement b. identity c. extension d. equity Answer: A 18. Which of the following is a major benefit that firms obtain by using social media in their international marketing activities? a. They require minimum commitment of time and resources. b. It is easier to measure the effectiveness of social media over traditional media. c. They provide myriad opportunities to develop and maintain awareness of the firm’s brands. d. Internationally, all people and organizations, including those in poor countries, have ready access to social media. Answer: C 19. Which of the following is an advantage of using social media? a. Social media enhances viral marketing. b. The world’s entire population has access to social media. c. The effectiveness of social media is easy to measure. d. Social media require the least amount of commitment in terms of time and resources. Answer: A 20. Which of the following gives the appearance of a grassroots movement that is actually produced behind the scenes by a firm promoting itself or its products? a. Crowdsourcing b. Insourcing c. Cannibalization d. Astroturfing Answer: D 21. ____________ is the act of mining a group of customers for new product ideas, improvements in marketing methods, and other useful outcomes. a. Cannibalization b. Nano-campaigning c. Astroturfing d. Crowdsourcing Answer: D 22. Sigma-Electro Inc. is a leading electronics company located in Philadelphia. As part of its new product promotion strategy, the company has placed advertisements in several social networking sites requesting marketing professionals to take part in an online discussion to suggest ways of promoting a product which the company plans to launch in the market shortly. Which of the following is the marketing technique implemented by Sigma-Electro? a. Astroturfing b. Crowdsourcing c. Nano-campaigning d. Cannibalization Answer: B 23. Which of the following is a major benefit of using social media? a. Social media require minimum commitment of time and resources. b. Measuring the effectiveness of social media is relatively easy. c. People all over the world have access to social media. d. Social media can be used to develop ideas for new products and marketing approaches. Answer: D 24. Which of the following is a disadvantage of using social media? a. They are conducted through expensive advertisements. b. They involve campaigns that are static with limited life. c. They exploit buyers by interrupting and even disrupting buyers’ lives. d. They can send the wrong message about the firm and its brands. Answer: D 25. Which of the following is a shortcoming of social media? a. They require substantial commitment of time and resources. b. They drive traffic away from corporate Web sites. c. They fail to draw sufficient attention to a firm’s products or services. d. They are more expensive than traditional media. Answer: A 26. Which of the following is a challenge associated with social media? a. They are considerably more expensive than traditional media. b. They involve campaigns that are static, with a limited life. c. It is difficult to measure their effectiveness. d. They emphasize pushing customers to buy the firm’s products. Answer: C 27. Which of the following is a drawback of using social media? a. They involve campaigns that are static, with a limited life. b. They lack the means to engage target markets more efficiently. c. They restrict viral marketing. d. Many people around the world lack access to social media. Answer: D 28. ____________ consists of nonpaid news or editorial commentary intended to generate goodwill and a positive image for the firm or its products. a. Advertising b. Podcasting c. Advocacy d. Public relations Answer: D 29. Sales promotion: a. refers to short-term inducements that provide extra value and incentives to sales personnel, intermediaries, and consumers. b. consists of nonpaid news intended to generate goodwill and a positive image for the firm or its products. c. is most effective when the salesperson visits a prospect directly or by telephone. d. implies making several calls on prospective customers and being there when they are ready to buy. Answer: A 30. Which of the following is true about the use of social media for sales promotion? a. Offering coupons online significantly increases the costs of development, distribution, and database creation. b. Firms offer coupons to entice customers to act immediately by visiting a Web site. c. Firms will have to incur costs on the printing of coupons. d. Consumers take considerably more time to search and organize online coupons. Answer: B 31. Offering coupons, discounts, rebates, product sampling, contests, and premiums are all forms of ____________. a. personal selling b. advertising c. sales promotion d. publicity Answer: C 32. Which of the following is true about the use of social media around the world? a. Differences in culture affect the way social media are used around the world. b. The world’s entire population has ready access to social media. c. The digital divide affects only developed countries. d. Economic conditions have no impact on the way social media are used. Answer: A 33. Which of the following countries has the most Internet users? a. China b. The United States c. Germany d. France Answer: A 34. Which of the following is a strategy that firms should follow to maximize the effectiveness of social media in international marketing? a. Firms need to use mass media strategies to target the world’s entire population simultaneously. b. Firms need to concentrate on targeting the entire market and avoid targeting only certain segments of the market. c. Firms need to ignore gossip, complaints, rants of disgruntled consumers and activists, and any such related news about it on the Internet. d. Firms need to gain credibility and loyalty by providing expertise online that addresses the specific problems of target markets. Answer: D 35. Which of the following is a social media success strategy in international marketing? a. Monitor the firm’s online reputation b. Implement static and limited campaigns c. Push consumers to buy the firm’s products d. Target the general, nonspecific market Answer: A ESSAY 1. What are blogs, wikis, forums, and podcast? Answer: Social media can take various forms, including blogs, wikis, forums, and podcasts. A blog is a Web site on which individuals make regular entries of commentary or descriptions of events. Blogging is the fastest growing medium of personal publishing, individual expression, and opinion on the Internet. Bloggers may upload graphics, video, and other materials. Most blogs are interactive—visitors can leave comments and message each other, facilitating a dynamic Web site on topics of interest. Companies launch blogs to foster discussion, feedback, testimonials, descriptions, videos, and other material related to particular brands. A wiki is a Web site developed and maintained by a community of users who add informative content on a variety of topics. On a smaller scale, many firms use wikis as a form of collaborative software, allowing employees and customers to interact and enhance group learning. Ultimately the wiki can become a database for creating, browsing, and searching through useful information. An Internet forum is essentially a site where people hold conversations in the form of posted messages. Typically, the conversation deals with a product, a brand, or some other specific topic. The resulting information is usually archived so buyers can conduct searches on issues that interest them. For many firms, podcasting is an important part of the marketing mix. Podcasts started out as purely audio files for the iPod and other MP3 players. Their availability in video formats gave firms more flexibility to provide consumers with useful material, such as do-it-yourself guides and product-use instructions. Today, many firms address product problems proactively through podcasts that consumers download. Podcasts can also raise awareness of new products and ways to use existing products in novel ways. 2. Discuss any one major benefit that firms obtain by using social media in their international marketing activities. Answer: Perhaps the number one advantage of social media is the ability to draw attention to the firm’s products and services. A good Web site and skillful use of social media lay the foundation for selling products and promoting the firm. Once consumers are exposed to a particular brand, marketers then take additional steps to generate interest and desire and spur potential buyers to action. Online social networks are an important channel through which information on new and existing products diffuse through marketplaces worldwide. 3. Explain how social media benefits promotional activities. Answer: Sales promotion refers to short-term inducements that provide extra value and incentives to sales personnel, intermediaries, and consumers. The Internet, and social media in particular, lend themselves well to facilitating sales promotion activities, which include offering coupons, discounts, rebates, product sampling, contests, and premiums. Firms may offer any or some combination of these to entice buyers to act immediately, such as by visiting a Web site, registering online, or making a purchase. Offering coupons online significantly lowers the costs of development, distribution, and database creation. Unlike traditional coupons, the firm incurs no printing costs. Many consumers prefer to obtain coupons online because of the time savings in searching for and organizing them. Some sites allow users to sample digital offerings prior to purchase. This approach is common in international sales of music, software, and many types of online services. Many firms employ social media to engage users in contests, sweepstakes, and games. The goal is typically to create interest, generate excitement, and entice users to visit a retail Web site. Chapter 17: Leadership, Corporate Social Responsibility, and Sustainability TRUE/FALSE 1. International marketers often wrongly interpret the cultural differences in the local market due to lack of sufficient research. Answer: True 2. In socialist societies, it is typically the individual that receives preference over the group. Answer: False 3. Government intervention in international marketing activities has increased after the economic crisis in 2008. Answer: True 4. When host-country regulations have been less demanding than those in home countries, some firms sell products that may not meet home-country expectations in terms of quality or benefit. Answer: True 5. A company can obtain greater public trust by ensuring that it brings good benefits to societies. Answer: True 6. Consumers around the world place a great deal of trust in financial services firms compared to other industries. Answer: False 7. The trust in business is currently much stronger in developed countries than in emerging markets. Answer: False 8. Rapid technological and scientific advances in international markets require high-level leadership qualities among government, societal, and business leaders. Answer: True 9. Governments are playing a new and growing role in international marketing, partly because of the outgrowth of global crises that had not been anticipated or addressed by market forces. Answer: True 10. American consumers expect businesses to treat and pay their employees well as part of their corporate commitment. Answer: True 11. Corporate philanthropy is a specific term used to highlight the charitable contributions of a firm. Answer: True 12. Corporate citizenship practices are new in the international marketing environment. Answer: False 13. Shared value creation focuses on identifying and expanding the connections between the societal and economic programs. Answer: True 14. The United States was one of the first nations to sign the 1997 Kyoto Protocol, an international agreement that sets binding targets for industrialized countries to reduce the level of national greenhouse gas emissions. Answer: False 15. Consumers who are aware of the environmental issues and take some action due to their concern for the environment are called “Greenthusiasts.” Answer: False 16. In periods of good economic conditions, consumers do not have limits to the price premiums they will pay for secondary benefits. Answer: False 17. There is a universally accepted certification standard for organic labeling of products. Answer: False 18. International marketers try to avoid criticism on sustainability by avoiding marketing campaigns centered on sustainability performance. Answer: True 19. Marketing must base itself on fact rather than emotion, on insights rather than speculation, and do so within a changing context. Answer: True 20. It is essential for front-line marketers to understand the working of the product in order to be truthful to the consumers. Answer: True MULTIPLE CHOICE 1. Which of the following is true regarding the impact of economic growth in emerging and developing markets? a. It has reduced the gap between the rich, the middle class, and the poor in the society. b. It has brought in new opportunities for the middle class to enjoy and experience a better quality of life. c. It has brought about changes that have made life simple both for marketers and those to whom they market. d. It has led to a reduction in greenhouse gas emissions across the world. Answer: B 2. A theme park in Switzerland charges an extra fee for customers who want to use the locker facility located inside the park, or want to use their vehicle for going from one ride to another, apart from the highly priced entrance tickets. The customers have no choice but to pay for these facilities when they are inside the theme park. This strategy employed by the company to make profits by charging additional prices from its customers is known as ____________. a. sustainable marketing b. buzz marketing c. ethical marketing d. vampire marketing Answer: D 3. Which of the following is true of the impact of economic crisis in 2008? a. It enhanced people’s level of trust on businesses in developed economies. b. It revealed the importance of emerging markets and their influence on the global economic system. c. It limited the role of governments in international markets in developed economies. d. It reduced the limitations on the size and activities of the banks in international markets. Answer: B 4. Public trust in a business serves as a measurement that corresponds to the: a. extent to which the government of a country allows leeway on societal norms. b. willingness of the government to permit an open-market orientation subject to the needs of the domestic policy. c. willingness of the society to allow international marketers greater leeway to do business. d. extent to which the customers in a country trust the government’s role in protecting the consumers from international marketers. Answer: C 5. Companies that align their products with societal interests and global trends that are impacting societies: a. try to meet the needs of their government customers who face complex challenges. b. aim to create products exclusively for profit. c. end up in losses because of the costs involved in these activities. d. focus only on their home country. Answer: A 6. Which of the following represents the view of Milton Friedman on the social responsibility of a business? a. The responsibility of a business is to donate its private wealth to do good for the society which provides the resources to it. b. The responsibility of a business is to provide low-priced products to its consumers. c. The responsibility of a business is to maximize the return of the shareholder’s investment by employing any measure that increases profits. d. The responsibility of a business is to use its resources, and engage in activities that are designed to increase its profits so long as it stays within the rules of the game. Answer: D 7. For consumers in the United States, corporate social responsibility refers: a. to not just charitable and philanthropic giving, but also treating and paying the employees well. b. only to supporting local and national communities through volunteer programs. c. to taking measures exclusively to reduce the environmental impact of the firm’s operations and products. d. only to donating funds toward the social development of the society. Answer: A 8. The term “corporate philanthropy” specifically refers to the: a. support provided by the firms to the local and national communities through volunteer programs. b. support provided by the firms to nonprofit organizations by providing membership to their board. c. philanthropic or charitable contributions of a firm. d. measures taken by firms to reduce the environmental impact of their operations and products. Answer: C 9. According to Porter and Kramer, the concept of shared value refers to: a. techniques or market-based solutions that are at the center of a business and help the company to gain an advantage over its competitors. b. policies and practices that focus mainly on creation of goods and services for profit by privately owned businesses. c. policies and operating practices that enhance the competitiveness of the company while simultaneously advancing the economic and social conditions in the communities in which it operates. d. techniques or market-based solutions that help in balancing the world’s energy needs and environmental integrity. Answer: C 10. The shared value approach: a. focuses on directly improving a company’s profitability and competitive position. b. mostly focuses on building corporate reputation. c. focuses exclusively on effectively marketing the company’s products. d. focuses mainly on developing the cultural infrastructure of communities. Answer: A 11. CSR reporting is an effective means of formal communication to companies as these reports: a. assist in improving a company’s profitability and competitive position. b. mainly focus on building corporate reputation. c. help in fulfilling the moral obligation to the society. d. help in assessing the actual commitment of the company to responsibility programs. Answer: D 12. Which of the following companies have the highest risk of failing to deliver on the promises they make in their CR report? a. Companies that have an effective way of communicating and a good level of process maturity. b. Companies that have quality communications but a low level of process maturity. c. Companies that have a good level of process maturity but lack quality communications. d. Companies that have just started to focus on improving the quality of their processes as well as their communication abilities. Answer: B 13. “Greenthusiasts” are consumers: a. for whom green products are attractive only if they are low-priced. b. who have strong environmental attitudes but do not necessarily reflect their attitudes in actual purchases. c. for whom environmental issues are a passionate concern. d. who are aware, concerned, and taking some action. Answer: C 14. Linda is concerned about environmental issues and the impact of her purchases on the environment. But she is not keen on paying higher prices for green products due to financial constraints. Linda is an example of “____________.” a. Greenspeaks b. Greenthusiasts c. Greensteps d. Greenwashers Answer: A 15. Consumers who are aware of the environmental issues, concerned about the environmental impact of products, and take action to bring about change are called “____________.” a. Greenspeaks b. Greensteps c. Greenthusiasts d. Greenwashers Answer: B 16. Which of the following factors will mostly affect the purchase of green products by consumers who are committed to buying green products? a. Shopping convenience b. Product availability c. High price d. Lack of good and reliable information Answer: D 17. The term “greenwashing” refers to: a. the policies and practices employed by a firm to reduce the environmental impact of its operations and products. b. the overblown environmental claims made by a firm to create a false green image. c. the marketing approach used by a firm to specifically promote its certified environment friendly products. d. the genuine claims made by a firm regarding its charitable or philanthropic contributions to the society. Answer: B 18. Lanco foods advertised its products as eco-friendly as they were packaged using recycled material. However, the company was still sourcing raw materials from farmers who were using environmentally hazardous pesticides. These false claims made by Lanco foods while marketing its products is referred to as ____________. a. eco-marketing b. green trading c. carbon offsetting d. greenwashing Answer: D 19. There are no perfect standards to judge the environmental issues and the impact of products on the environment. Hence companies can avoid criticism centered on greenwashing by: a. reporting on sustainability performance but avoiding marketing campaigns centered on it. b. not reporting about their sustainability measures to the public. c. keeping information regarding the products confidential. d. ignoring the environmental impact of their operations and products. Answer: A 20. Curative marketing is considered to be a necessary approach for international marketers as it: a. focuses on offering quality green products at the right price points. b. uses marketing capabilities to make up for the past errors with future action. c. helps to promote their environmental or sustainability behavior. d. aims to sell their products at competitive prices in international markets. Answer: B 21. Naira’s, an international clothing brand, has set up a team to analyze the mistakes the company made in understanding the cultural nuances of one of its international markets. The team has been asked to conduct a survey to understand the local culture and to take measures to rectify the mistakes in order to restore the brand image in the market. Naira’s is engaging in ____________. a. creative marketing b. curative marketing c. vampire marketing d. greenwashing Answer: B ESSAY 1. What is the influence of economic growth on consumers in developing markets? Answer: The economic growth in emerging and developing markets has allowed millions of people to enter the middle class and has brought great new opportunities for them to experience and enjoy a better quality of life with goods and services that help them in many ways. It has also exposed them to the challenge of rising aspirations with limited income. It has presented practical and ethical dilemmas and the new international consumers must learn how to manage their aspirations as they experience emotional marketing appeals for products and services that might not be practical or good for them. 2. A higher standard of leadership is now required for international marketers. Explain. Answer: Leadership has become a challenge for international marketers as it extends beyond the global economy and financial markets. Globalization, shifting demographics, rapidly accelerating technological change, increased connectivity, economic uncertainty, a growing multiplicity of actors and shifting power structures have made marketing unprecedentedly complex and challenging for corporations, institutions, and states alike. International marketers need to have the capabilities to lead an organization with its multiple customer, employee, and other stakeholder audiences towards a competitive vision for future. 3. What is curative marketing? Why is it important for a business? Answer: Curative international marketing restores and develops international economic health. Curative marketing accepts responsibilities for problems to which marketing has contributed. It then uses marketing’s capabilities to set things right, to heal past wounds, and to increase the well-being of the individual and the society on a global level. Curative marketing’s two perspectives consist of looking back to check on what marketing has wrought and making up for the past errors with future action. Curative marketing is important for international marketers as they need to focus on past errors and mistakes inflicted by international marketing and correct them as part of restitution. Chapter 18: New Directions and Challenges TRUE/FALSE 1. Death of distance is the measure of the inequality in the population and health profiles between rich and poor countries. Answer: False 2. Nearly all of the world population growth is now concentrated in the world’s wealthiest nations. Answer: False 3. The advanced economies tend to have the most broadband subscribers. Answer: True 4. Cultures around the globe will become more similar with respect to macro issues. Answer: True 5. Cocooning leads to a decrease in the sale of video games and DVDs. Answer: False 6. Technology makes cocooning easy. Answer: True 7. During the 2008 economic crisis, Iceland seized United Kingdom’s bank funds. Answer: False 8. The trend in international marketing is to have a decentralized budgeting process. Answer: False 9. The trend in international marketing is to have a decentralized marketing mix. Answer: True 10. Sustaining growth is an example of innovation. Answer: True 11. Application innovation takes existing technologies into new markets to serve new purposes. Answer: True 12. Marketing innovation makes processes for established offers in established markets more effective or efficient. Answer: False 13. Structural innovation capitalizes on disruption to restructure industry relationships. Answer: True 14. Experiential innovation is the first stage in the life cycle of a product category. Answer: False 15. Marketing innovation is the last stage in the life cycle of a product category. Answer: False 16. Companies that innovate across borders and across companies are referred to as metanational innovators. Answer: True 17. Videoconferencing is a form of interactive digital media. Answer: True 18. Virtual worlds appeal more to an older audience. Answer: False 19. With the help of fMRI, the researcher can see what consumers are really viewing when they see an advertisement, a package design, or website. Answer: False 20. Brand information found in the center of the screen is a strong predictor of ad recognition. Answer: True MULTIPLE CHOICE 1. ____________ is the measure of the inequality in the population and health profiles between rich and poor countries. a. Cocooning b. Demographic divide c. Death of distance d. Cultural gap Answer: B 2. Which of the following is true of world population? a. The world’s wealthiest nations have the highest population. b. Growth of population in the wealthier countries is a result of increased birth rate in these countries. c. Growth of population in the wealthier countries is a result of immigration. d. Decrease of population in the poorer countries is a result of decreased longevity. Answer: C 3. Which of the following is a result of technology? a. Demographic divide b. Cultural clash c. Population growth in the wealthiest nations d. Death of distance Answer: D 4. Which of the following is an/are indicator(s) of the level of technological development? a. Passport holders b. Broadband Internet subscribers c. Student population d. Unemployed population Answer: B 5. Which of the following is true of technology? a. It increases the cost of performing functions. b. It is more developed in advanced nations. c. It is rarely accurate. d. It leads to inefficiency in marketing. Answer: B 6. Macro issues such as accountability, performance expectations, freedom accorded within society, and product preferences lead to ____________. a. similarity in cultures around the world b. cultural clashes across countries c. death of distance d. cocooning Answer: A 7. Which of the following is expected at the micro level, with regard to culture? a. Cultural clashes b. Accountability c. Performance expectations d. Product preferences Answer: A 8. Which of the following can inhibit globalization? a. Transportation b. Technology c. Death of distance d. Cultural clashes Answer: D 9. Cocooning is: a. not influenced by technology. b. a trend that first appeared in 2001 after the terrorist attacks in the United States. c. observed only in the United States. d. not easy for people who engage in social exchange via social networking sites. Answer: B 10. Which of the following is true of cocooning? a. It discourages expenses like renting of DVDs and meal-preparation ingredients. b. It promotes purchases like traveling and eating out. c. It was more popular before the 2001 terrorist attacks. d. It is a worldwide trend of staying at home. Answer: D 11. Kate, an editor, does most of her work from home because she finds it unsafe to go out. She shops online, watches movies on her television, and plays video games for entertainment. This lifestyle of Kate is referred to as ____________. a. cocooning b. westernization c. indolence d. teleporting Answer: A 12. The sales of ____________ have increased as a result of cocooning. a. movie tickets b. video games c. train tickets d. concert passes Answer: B 13. The sale of which of the following products or services would decrease as a result of cocooning? a. Movie tickets b. Video games c. DVDs d. Meal-preparation ingredients Answer: A 14. Which of the following was a result of the economic crisis that began in 2008? a. Iceland seized the United Kingdom’s bank funds. b. The United States seized Icelandic bank funds. c. Iceland was not at all affected by this crisis because of its strong banking sector. d. The relationship between Iceland and the United Kingdom got seriously damaged. Answer: D 15. Which of the following factors helps in safeguarding the earth? a. Sustainable development b. Urbanization c. Growing population d. Energy demand Answer: A 16. The concern about the world’s natural resources and sustainability has led to a variety of predictions about the future. Which of the following predictions is true? a. Governments will attempt to put less land into grain production. b. Farming will lose its attractiveness and profitability. c. Recycling and recovery will grow as vital business opportunities. d. There will be less emphasis on water conservation. Answer: C 17. Which of the following is a disadvantage of the Internet in globalization? a. Reduced ability in customizing for local markets b. Increased worker mobility c. Cost inefficiency d. Limited market expansion Answer: A 18. According to recent trends, which of the following is most likely to be centralized? a. Budgeting process b. Spending c. Allocation d. Marketing mix Answer: A 19. Which of the following factors would lead a business to choose a decentralized structure? a. Global customers who are culturally alike b. Global customers with similar tastes c. Global customers with similar standards of living d. Global customers with local preferences Answer: D 20. ____________ innovation gets a great deal of attention and has its roots in technological discontinuities. a. Process b. Disruptive c. Application d. Product Answer: B 21. ____________ innovation takes existing technologies into new markets to serve new purposes. a. Process b. Disruptive c. Application d. Product Answer: C 22. ____________ innovation takes established offers in established markets to the next level. a. Application b. Product c. Process d. Experiential Answer: B 23. ____________ innovation makes mechanisms for established offers in established markets more effective or efficient. a. Product b. Process c. Experiential d. Marketing Answer: B 24. ____________ innovation makes surface modifications that improve customers’ exposure to established products or processes. a. Product b. Process c. Experiential d. Marketing Answer: C 25. ____________ innovation improves customer-touching processes. a. Product b. Process c. Experiential d. Marketing Answer: D 26. ____________ innovation reframes an established value proposition to the customer or a company’s established role in the value chain, or both. a. Business model b. Structural c. Process d. Product Answer: A 27. ____________ innovation capitalizes on disruption to modify industry relationships. a. Experiential b. Process c. Business model d. Structural Answer: D 28. Which of the following innovations takes place at the earliest stage of a product category’s life cycle? a. Experiential b. Disruptive c. Marketing d. Structural Answer: B 29. Which of the following innovations takes place at the last stage of a product category’s life cycle? a. Disruptive b. Application c. Structural d. Process Answer: C 30. Companies that innovate across borders and across companies are referred to as ____________ innovators. a. subnational b. multinational c. transnational d. metanational Answer: D 31. Social networking websites and blogs are examples of ____________. a. sign language media b. unicast media c. Internet think tanks d. interactive digital media Answer: D 32. Which of the following tools/techniques helps in finding out what was noticed or not noticed and what seemed to pique interest on a website? a. Digital video recorders b. Virtual worlds c. Eye-tracking technology d. Functional magnetic resonance imaging Answer: C 33. Which of the following is a true eye-tracker study result? a. Brand information found in the center of the screen is a strong predictor of ad recognition. b. Fast-forwarding viewers constrain their vision to the right of the screen. c. All visitors scroll below the fold to see the ads. d. Advertisements with branding in the corners lead to increased brand attitude. Answer: A 34. ____________ is a noninvasive neural-imaging technique that basically looks inside the brain. a. Neuromarketing b. Magnetic immunoassaying c. Eye-tracking d. Functional magnetic resonance imaging Answer: D 35. Which of the following can be detected with the help of an fMRI? a. Whether a person will purchase a given product b. The real-time scan path or eye movement and areas of focus c. Static plots illustrating where the respondent looked on a website d. What was noticed or not noticed and what seemed to pique interest on a web site Answer: A ESSAY 1. What is cocooning? How does it affect the sales of various products and services? Answer: Cocooning, the trend toward staying at home, is now a worldwide phenomenon. People are bringing their work and entertainment into their homes rather than going out for these things. Challenging economic times are behind this push to cut back on large purchases like traveling, eating out, and viewing movies at the cinema. Retailers in the Unites States report cocooning trend-related sales in the areas of food shopping, outdoor barbeque equipment, video games, and flat-panel televisions. Similarly, retailers in Australia report the buying or renting of DVDs, meal-preparation ingredients, and outdoor furniture and accessories topping the cocoon-buyer’s list of properties. 2. What are the different types of innovations? Answer: The different types of innovations are as follows: 1. Disruptive innovation gets a great deal of attention and has its roots in technological discontinuities. 2. Application innovation takes existing technologies into new markets to serve new purposes. 3. Product innovation takes established offers in established markets to the next level. 4. Process innovation makes processes for established offers in established markets more effective or efficient. 5. Experiential innovation makes surface modifications that improve customers’ experiences of established products or processes. 6. Marketing innovation improves customer-touching processes. 7. Business model innovation reframes an established value proposition to the customer or a company’s established role in the value chain, or both. 8. Structural innovation capitalizes on disruption to restructure industry relationships. 3. How does eye-tracking technology aid marketing research? Answer: An eye-tracking marketing research report can provide: 1. The real-time scan path or eye movement and areas of focus 2. Static plots illustrating where the respondent looked, in what order, and for how long 3. What was noticed or not noticed and what seemed to pique interest Test Bank for International Marketing Michael R. Czinkota, Ilkka A. Ronkainen 9781133627517, 9788131533642
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