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1: Marketing: A Global Discipline 1. According to Peter Drucker, what is the basic purpose of business? a. to make revenue and profit b. to create and keep customers c. to find and serve customers d. to sell products and services 2. Who in a company is not involved in creating customer value? a. the IT department b. the procurement department c. the HR department d. the finance department e. all of them are involved in creating customer value 3. Complete the missing word: Marketing needs to be ___ a. anywhere in the organization b. ubiquitous throughout the organization c. representative of the organization d. universal for the organization 4. Briefly define the term strategy. -> A strategy is a plan chosen to bring a desired future. 5. Three questions are central to strategy. Which is not one of them? a. When do we compete? b. With whom do we need to develop key relationships? c. Where do we compete? d. How do we compete? 6. There are complaints towards globalization. Which is not one of them? a. unhealthy dietary patterns b. legal rights c. unsustainable consumption d. loss of local culture 7. What describes the phrase “semiglobalization”? a. the free movement of goods, capital, services, people, technology and information b. the action or procedure of international integration of countries arising from the convergence of world views, products, ideas, and other aspects of culture c. the counter-globalization movement, a social movement critical of economic globalization d. the fact that cultural, administrative, geographic and economic differences are far more enduring than often assumed 8. Ghemawat invented the CAGE distance framework, where “CAGE” is an acronym standing for ___ differences. a. cultural, administrative, geographic and economic b. commercial, artistic, governmental and educational c. cultural, administrative, governmental and economic d. commercial, artistic, geographic and educational 9. Examples of effective global marketing by McDonald's include both standardized and localized marketing mix elements. Which of the following does not represent a localized element? a. It has home delivery service in India. b. It uses the advertising slogan "I'm lovin' it." c. It operates themed dining cars on the Swiss national rail system. d. It serves McAloo tikki potato burger in India. e. It has slang nicknames such as MakDo in Philippines and McDo in France. 10. When Royal Dutch Shell and British Petroleum are going abroad to find new oil reserves what is their motivation? a. knowledge seeking b. resource seeking c. efficiency seeking d. market seeking

11. When Nike or Acer are setting production facilities in new locations where labor is sourced more economically what is their motivation? a. economy seeking b. resource seeking c. market seeking d. knowledge seeking 12. According to the WTO the steady liberalization process of global trade has caused the average tariff for manufactured goods to fall ___ a. from 40% to below 4% b. from 90% to below 40% c. from 30% to below 10% d. from 60% to below 30% 13. Several driving forces explain the trend towards global integration and coordination. Which is not one of them? a. scale economies b. diverging consumer tastes and trends c. the declining cost of freight and communication cost d. communication cost 14. How can the fact that Barclay bank had to withdraw its $1 billion retail business from India be explained? a. unfavorable macro-economic conditions b. inappropriate marketing strategy c. underestimating cultural aspects d. insufficient financial resources 15. Which new element was added by Bartlett and Ghoshal to the Integration-Responsiveness ness (IR) Framework to acknowledge the need for worldwide learning, global efficiency and local responsiveness simultaneously? a. the multinational organization b. the international organization c. the transnational organization d. the global organization 16. In which circumstances should a company consider an aggregation strategy? a. When the R&D-to-Sales ratio is high b. When the Advertising-to-Sales ratio is high c. When the Labor-to-Sales ratio is high d. When the Revenue-to-Sales ratio is high 17. There are four main arguments supporting regional strategies. Which is not one of them? a. national idiosyncrasies and the liability of foreignness increase when crossing regional boundaries b. regional strategies and organizational structures can reduce organizational complexities c. cost reasons as it is more costly to transport merchandise and communicate over longer distances d. cognitive and emotional reasons when managers are managing in their own regions 18. What can be learned from studying case examples in marketing? a. Strategies or market policy decisions with which companies failed should be avoided in any case. b. Case studies are interesting to read, but you cannot learn much from them. c. Case studies can provide ideas for market entry or market development strategies. d. A marketing campaign that was successful in one country will also work in another country. e. Case studies teach students to distinguish right from wrong decisions in marketing. 19. What is a key debate in international Marketing? a. product development or product acquisition b. market development or market share c. standardization or adaptation d. market research or market testing 20. The so-called “Uppsala school” predicted an incremental commitment to internationalization subject to increased knowledge of foreign market operations. ✓ True False

2: Assessing Global Marketing Opportunities 1. At the center of global marketing lies the question “Where to compete?” Companies might consider a number of factors to select their geographic scope. Which is not one of these factors? a. presence or absence of competitors b. national borders, and business methods c. culture, language, political system, legal system, economic situation, and infrastructure d. market size and growth rate 2. When Procter and Gamble evaluated the transferability of the Japanese SK-II skin care product they had, among other things, to consider a. the advertising copy b. the brands’ low prices c. the distribution system, e.g. the use of beauty counselors d. the fit of the SK-II product concept in the Japanese product portfolio 3. The SLEPTS analysis gives an overall picture of the macro environment and supports to identify threats and opportunities that can be used in SWOT analysis. What does the acronym stand for? a. Solid, Legitimate, Economic, Provincial, Technological and Scientific Factors b. Shared, Local, Ecological, Parochial, Technical and Social Factors c. Social, Legitimate, Ecological, Parochial, Technological and Sustainability Factors d. Social, Legal, Economic, Political, Technological and Sustainability Factors 4. Provide a short explanation of secondary data. -> Secondary data has been collected by another person for another purpose. 5. Decide whether the statement about market research is true or false? 5.1. In global marketing research, it is important to establish scalar equivalence when obtaining information from different countries. ✓ True False 5.2. Africa represents a huge untapped market for shoes since most people walk barefoot. Thus, it will be easy to alter entrenched consumer behavior pattern if shoes are available. True ✓ False 5.3. An emic approach studies a culture from within; etic analysis is "from the outside." ✓ True False 5.4. An emic approach studies a culture "from the outside"; etic analysis studies a culture from within. True ✓ False 5.5. The etic and emic approaches are identical. True ✓ False 5.6. The emic/etic distinction is not useful in cultural studies. True ✓ False 6. A market research study of soft drink consumption and distribution in Hungary commissioned by an American company indicated that soft drinks were available in drugstores. However, Western-style drugstores do not exist in Hungary. This illustrates an important issue in global marketing research, namely: a. comparability of data b. using multiple dimensional scaling c. market estimation by analogy d. using convenience samples e. inflated data

7. Which statement about the four-stage approach of selecting country markets is correct? a. A quick weeding out of attractive country markets is the first step of the process. b. An in-depth assessment of the short list of markets, for example drawing up pro-forma income statement for each market is the final step. c. The second step is the assessment of countries based on secondary data, usually involving a scoring model. d. The third step of the process is a personal visit of the potential markets. 8. What is the problem with the use of scoring models? a. Scoring models are not a systematic approach to decision making. b. They are highly subjective. c. The selection criteria are strictly normed. d. Often the data needed is not available, outdated or inaccurate. 9. What explains the importance of a personal visit to potential markets for expansion? a. Management likes to travel. b. Lobbying with local governments is mandatory. c. Companies need to deal out contracts with competitors in person. d. A marketing plan for the foreign market usually requires the co-operation with a local agent or distributor 10. What is a characteristic of the international marketing research process? a. The international marketing research process is less costly as it relies primarily on secondary data. b. The international marketing research process is considerably longer and involves more steps than the local marketing research process. c. The international marketing research process is way more complex because it poses challenges to the company in terms of design and methodology. d. The international marketing research process is easier because blue-prints form other markets can be used thus a fundamentally new approach is not necessary. 11. In the USA bicycles are used for recreation and in India they are a mode for transportation? Thinking about equivalence in international market this is an example of ___ a. functional equivalence b. conceptual equivalence c. category equivalence d. mobility equivalence 12. Bring the steps in the research process in the right order: 1. information requirement/problem definition 2. examining previous data 3. collect secondary data 4. choosing unit of analysis 5. design research methodology 6. implement research design 7. data analysis 8. add new knowledge to the database 9. modify business strategies 13. When the Coca-Cola Company conducted focus groups in Europe and Asia to assess potential market acceptance of a contoured aluminum soft drink can, it was attempting to collect ___ data. a. primary b. secondary c. incipient d. quantitative e. MIS

14. In Mexico City, only 55-60% of the population owns a telephone. The number drops to less than 50% in Guadalajara and Monterey, and 35% or lower in other cities. This will complicate the task of market researchers hoping to use a telephone survey to obtain a ___ of the Mexican population. a. convenience sample b. probability sample c. secondary sample d. focus group sample e. quota sample 15. In Singapore, Coca-Cola wanted to develop an advertisement program. They selected a group of teenagers in a room, and a trained moderator facilitated discussion asking questions on brand's image, advertisement, social trends, TV watching habits, and snack usage. This type of research is called ___ . a. survey research b. observational studies c. comparison studies d. experimental research e. focus group research 3: Entering Global Markets 1. What is the consequence if a company’s objective to go international is: to follow its key customer? a. The supply of raw materials will be difficult. b. The customer will be heavily depending on the company. c. The company does not have a strategy. d. The customer determines which markets to enter. 2. When a(n) …. purchases channel members above him, it is called backward integration. ✓ wholesaler agent broker planner 3. The literature distinguishes between different objectives for market-entry. Which is not one of them? a. efficiency seeking b. information seeking c. knowledge seeking d. market seeking e. resource seeking 4. Coke was invented in 1896 by John S. Pemberton. When Caleb Bradham invented Pepsi-Cola thirteen years later, Coke was already selling a million gallons per year. For over a hundred years, Pepsi has been trying to play catch-up in the cola beverage market, but Coca-Cola continues to dominate the market. How can the success of Coca-Cola be explained? a. Coca-Cola is smarter than Pepsi b. Coca-Cola has a first mover advantage c. Coca-Cola has the better advertising d. Coca-Cola has the better management e. Coca-Cola has more funds to invest in marketing 5. Please fill in the missing words: A key consideration in selecting foreign markets entry modes is to balance between risk and control 6. Exporting may take various forms. When Avon sales reps are selling Mattel toys along with their cosmetic products this is the form of ___ indirect exporting ✓ independent market representation

7. Which statement about exporting services is correct? a. Embodied object export includes services such as market research or management consulting b. Services often require wholly owned subsidiaries or joint ventures. c. Soft services cannot be stored in a physical form. d. Services cannot be exported. 8. Which of the companies listed below is not operating by Franchising? a. Marriott International b. Hertz c. 7-Eleven d. H&M e. Burger King 9. The Walt Disney company is known for using what type of contractual agreement for market expansion ___? ✓ licensing 10. Fill in the words Franchising is a contract between a parent company, the franchisor and another company the franchisee that allows the franchisee to operate a business developed by the franchisor in return for a fee and adherence to franchise-wide policies. 11. ___ represent(s) a market entry strategy whereby one company permits a foreign company to make use of its patents, know-how, technology, company name, or other intangible assets in return for a royalty payment. ✓ licensing 12. If BMW is using parts in their manufacturing plant in Rayong, Thailand, that are produced in one of their factories in the US this is called ___. ✓ captive-offshoring 13. In the case of an emerging new technology which is for a company high on importance and difficulty and using the make-or-buy-decision-model by Allred and Swan (2008) this company should consider ___ for accessing this technology. ✓ getting a partner 14. As a rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances? a. outsourcing b. offshoring c. joint venture d. exporting e. acquisition 15. The failure rate of joint ventures is high. According to Stewart and Maughn (2011) the failure rate is ___ 30% 40% ✓ 50% 60% 4: Segmenting, Targeting and Positioning in Global Markets 1. The World Bank’s country classification uses what type of segmentation? a. geographic segmentation b. benefit segmentation c. demographic segmentation d. behavioral segmentation e. psychographic segmentation 2. Which statement about psychographic segmentation is incorrect? a. Y&R’s consumer groups named such as “Explorer” or “Aspirer” are based on psychographic Segmentation. b. Psychographic segmentation is often more appropriate than demographics alone. c. Psychographic segmentation is very reliable. d. Hundreds of psychographic segmentation approaches exist.

3. Procter & Gamble has identified a group of consumers in Europe who are willing to pay premium prices for pet food that will improve the health of their pets. This is an example of ___ segmentation. a. demographic b. psychographic c. ethnic d. behavioral e. benefit 4. What is a disadvantage using the countries-as-segments strategy to target markets? a. only one country can be targeted at a time b. segments may not be homogeneous with respect to customer needs and preferences c. geographic problems d. necessary data may not be available e. lack of field teams 5. The Lufthansa loyalty program groups travelers into Miles and More, Frequent Flyer, Senator and Hon card holders. This shows the application of which approach of segmentation? a. behavioral segmentation b. demographic segmentation c. psychographic segmentation d. benefit segmentation 6. Which approach to targeting may lead to a proliferation of segmentation schemes? a. countries-as-segments b. none of the above c. segments–across-countries d. segments–within-countries 7. In order to use the “Design Target” approach a company has identified the three respective groups with: promoters 32%, passives 54%, and detractors 14%. How big is company´s Net Promoter Score? a. 86% b. 18% = (32% promoters – 14% detractors) c. 46% d. 12% 8. Which is not one of criteria for assessing global target markets? a. probability of successfully reaching target segment b. strength of competition c. market history d. fit to the company’s overall objectives e. market size 9. Volkswagen has a portfolio of diverse brands including Bentley, Lamborghini, Porsche, Audi, SEAT, Skoda and others? This is an illustration of ___ . a. concentrated marketing b. differentiated marketing c. undifferentiated marketing d. mass marketing e. micromarketing 10. Henkel has used the same TV commercial for a fabric softener in CEE countries and only changed the voice over. In Bulgaria they were pointing to the economic benefit of using a fabric softener while in the Czech Republic the spokesperson emphasized the product´s pleasant fragrance. This is an example of ___ . a. Positioning by Usage Occasion b. Positioning by Consumer Insights c. Positioning by Brand Performance d. Positioning by Brand Imagery

11. Which of the type of products below is more likely to be successful using a standardized global positioning? a. None of the above, standardized global positioning hardly works b. High-Touch products only c. High-Tech and High-Touch products d. High-Tech Products only 12. Which statement about the country of origin effect is incorrect? a. The country-of-origin effect on demand is particularly relevant in international marketing. b. Buyers know exactly where the country-of-origin is for well-known brands. c. The actual place of production is of little importance to buyers. d. A strong effect comes from the perceived origin of the brand. 5: Creating Global Product and Service Offerings 1. According to ideas from Theodore Levitt: What are people buying from Revlon? a. Care b. Dreams c. Hope d. Cosmetics 2. After-sale services are part of the ___. a. service product b. physical product c. core customer value d. augmented product 3. Firms can reach differentiation at any of the three product levels. In recent years Toyota was suffering from a number of quality problems and product recalls. Which level(s) of the product was (were) affected? a. the augmented product b. the actual product c. the sought of product d. the main product e. the core product 4. If lawn mower is bought for house backyard, lawn mower is classified as ___ . a. consumer product b. business product c. service product d. specialty product 5. Which type of products imposes a higher need to establish a local presence? a. tangible products b. business products c. physical products d. service products 6. According to our current status of knowledge, which statement is true? a. Generally speaking standardized marketing is improving a firm’s bottom line. b. All statements are wrong. c. The world today is more homogenous than 30 years ago. d. Consumers trade off features for lower prices. e. The incremental cost incurred by adaptation is hardly paying off. 7. What has caused the market value of Coca Cola to drop by 40% in the 1980s? a. Too much standardization b. Too low economies of scale c. Too little standardization d. Too much adaptation e. Too little centralization

8. Which is not a benefit of standardization? a. quicker returns b. easier planning & control c. faster product launches d. reduced complexity e. opportunity economies 9. Which is most likely not a benefit or result from adaptation? a. higher...