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: D Diff: Page Ref: 406 Skill: Concept Objective: 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: A Diff: Page Ref: 406 Skill: Application Objective: 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: C Diff: Page Ref: 408 Skill: Concept Objective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy ScholarStock 4) A marketing strategy stresses the diversity among consumers in different nations A) diverse B) international C) global D) comprehensive E) localized Answer: E Diff: Page Ref: 408 AACSB: Reflective Thinking Skill: Concept Objective: 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 company B) global company C) multinational company D) glocal company E) international company Answer: D Diff: Page Ref: 408 AACSB: Analytic Skills Skill: Concept Objective: 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: A Diff: Page Ref: 408 Skill: Concept Objective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy ScholarStock 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: A Diff: Page Ref: 408 AACSB: Reflective Thinking Skill: Concept Objective: 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 marketing B) Travel C) Movies D) Gifts E) Television Answer: A Diff: Page Ref: 409 AACSB: Analytic Skills Skill: Application Objective: 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) NAFTA B) The European Union C) CAFTA D) ASEAN E) Mercosur Answer: B Diff: Page Ref: 408 Skill: Concept Objective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy ScholarStock 10) , which currently consists of the United States, Canada, and Mexico, provides free market access to more than 440 million consumers A) NAFTA B) The European Union C) CAFTA D) ASEAN E) Mercosur Answer: A Diff: Page Ref: 408 Skill: Concept Objective: 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) NAFTA B) The European Union C) CAFTA D) ASEAN E) Mercosur Answer: C Diff: Page Ref: 408 Skill: Concept Objective: 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: B Diff: Page Ref: 409 Skill: Concept Objective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy ScholarStock 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) stereotyping C) country of origin effects D) the halo effect E) judging value Answer: C Diff: Page Ref: 410 Skill: Concept Objective: 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) stereotyping C) country of origin effects D) the halo effect E) judging value Answer: C Diff: Page Ref: 410 Skill: Application Objective: 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: E Diff: Page Ref: 411 Skill: Concept Objective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy ScholarStock 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: E Diff: Page Ref: 410 Skill: Application Objective: 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: C Diff: Page Ref: 412 AACSB: Analytic Skills Skill: Concept Objective: 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: B Diff: Page Ref: 412 Skill: Concept Objective: 13.2: Understand how to study the differences among cultures while developing marketing strategies ScholarStock 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) individualized B) generalized C) homogenized D) heterogeneous E) uniform Answer: A Diff: Page Ref: 413 Skill: Concept Objective: 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: A Diff: Page Ref: 414 Skill: Concept Objective: 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) China B) India C) Western Europe D) the United States E) Russia Answer: A Diff: Page Ref: 414 AACSB: Analytic Skills Skill: Application Objective: 13.2: Understand how to study the differences among cultures while developing marketing strategies ScholarStock 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: C Diff: Page Ref: 415 Skill: Concept Objective: 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 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: B Diff: Page Ref: 415 Skill: Application Objective: 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 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 not go through enough enculturation education D) marketers' use of localized marketing strategies negatively influence consumer preferences E) country of origin effects Answer: B Diff: Page Ref: 418 AACSB: Reflective Thinking Skill: Application Objective: 13.2: Understand how to study the differences among cultures while developing marketing strategies ScholarStock 25) Learning about foreign cultures is called A) enculturation B) acculturation C) ethnocentrism D) consumer research E) novoculturation Answer: B Diff: Page Ref: 418 AACSB: Analytic Skills Skill: Concept Objective: 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: A Diff: Page Ref: 418 Skill: Application Objective: 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: C Diff: Page Ref: 420 Skill: Application Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy ScholarStock 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: B Diff: Page Ref: 420 Skill: Application Objective: 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: D Diff: Page Ref: 419, Table 13.8 Skill: Application Objective: 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 structure Answer: B Diff: Page Ref: 419, Table 13.8 AACSB: Analytic Skills Skill: Application Objective: 13.2: Understand how to study the differences among cultures while developing marketing strategies 10 ScholarStock 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: A Diff: Page Ref: 427 Skill: Concept Objective: 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: C Diff: Page Ref: 427 Skill: Concept Objective: 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: A Diff: Page Ref: 422 Skill: Application Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy 20 ScholarStock 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 effects B) localized strategy C) glocal branding D) cross-cultural analysis E) consumer ethnocentricity Answer: A Diff: Page Ref: 410 Skill: Application Objective: 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 Citizens B) Global Dreamers C) Global Indifferents D) Antiglobals E) Global Agnostics Answer: A Diff: Page Ref: 422 AACSB: Reflective Thinking Skill: Application Objective: 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: D Diff: Page Ref: 422 AACSB: Analytic Skills Skill: Application Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy 21 ScholarStock 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: B Diff: Page Ref: 425, Table 13.10 Skill: Application Objective: 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: A Diff: Page Ref: 422 Skill: Application Objective: 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: C Diff: Page Ref: 410 Skill: Application Objective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy 22 ScholarStock 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: E Diff: Page Ref: 420 Skill: Application Objective: 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: B Diff: Page Ref: 409 Skill: Application Objective: 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 Citizens B) Global Dreamers C) Global Indifferents D) Antiglobals E) Global Agnostics Answer: A Diff: Page Ref: 422 AACSB: Reflective Thinking Skill: Application Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy 23 ScholarStock 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: A Diff: Page Ref: 413 Skill: Application Objective: 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: B Diff: Page Ref: 418 Skill: Application Objective: 13.2: Understand how to study the differences among cultures while developing marketing strategies 24 ScholarStock 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: C Diff: Page Ref: 410 Skill: Application Objective: 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: E Diff: Page Ref: 419, Table 13.8 Skill: Application Objective: 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: A Diff: Page Ref: 419, Table 13.8 Skill: Application Objective: 13.2: Understand how to study the differences among cultures while developing marketing strategies 25 ScholarStock 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: FALSE Diff: Page Ref: 408 Skill: Concept Objective: 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: TRUE Diff: Page Ref: 408 AACSB: Analytic Skills Skill: Application Objective: 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: FALSE Diff: Page Ref: 408 Skill: Concept Objective: 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: FALSE Diff: Page Ref: 409 AACSB: Reflective Thinking Skill: Concept Objective: 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: TRUE Diff: Page Ref: 410 AACSB: Multicultural and Diversity Skill: Application Objective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy 26 ScholarStock 80) Country of design, country of assembly, and country of parts are three dimensions that make up country of origin Answer: TRUE Diff: Page Ref: 410 AACSB: Analytic Skills Skill: Concept Objective: 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: FALSE Diff: Page Ref: 412 AACSB: Reflective Thinking Skill: Application Objective: 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: TRUE Diff: Page Ref: 412 Skill: Concept Objective: 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: FALSE Diff: Page Ref: 416 AACSB: Reflective Thinking Skill: Concept Objective: 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: TRUE Diff: Page Ref: 416 Skill: Concept Objective: 13.2: Understand how to study the differences among cultures while developing marketing strategies 27 ScholarStock 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: TRUE Diff: Page Ref: 422 AACSB: Analytic Skills Skill: Concept Objective: 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: TRUE Diff: Page Ref: 422 AACSB: Reflective Thinking Skill: Application Objective: 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: FALSE Diff: Page Ref: 422 AACSB: Analytic Skills Skill: Concept Objective: 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: TRUE Diff: Page Ref: 423 AACSB: Analytic Skills Skill: Concept Objective: 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: FALSE Diff: Page Ref: 423 Skill: Concept Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy 28 ScholarStock 90) Consumers are more responsive when advertising content is adapted to their local needs Answer: TRUE Diff: Page Ref: 426 AACSB: Multicultural and Diversity Skill: Application Objective: 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: FALSE Diff: Page Ref: 426 Skill: Concept Objective: 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: FALSE Diff: Page Ref: 424 Skill: Concept Objective: 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: TRUE Diff: Page Ref: 425 AACSB: Analytic Skills Skill: Application Objective: 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: FALSE Diff: Page Ref: 425 Skill: Concept Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy 29 ScholarStock 95) In general, demographic segments in other nations want to be or act like Americans Answer: FALSE Diff: Page Ref: 425 AACSB: Multicultural and Diversity Skill: Concept Objective: 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: FALSE Diff: Page Ref: 426 Skill: Concept Objective: 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: FALSE Diff: Page Ref: 427 AACSB: Analytic Skills Skill: Concept Objective: 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: FALSE Diff: Page Ref: 427 Skill: Concept Objective: 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: TRUE Diff: Page Ref: 427 Skill: Concept Objective: 13.4: Understand how lifestyle and psychographic segmentation can be used in developing global or local marketing strategies 30 ScholarStock 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: Page Ref: 408 AACSB: Reflective Thinking Skill: Application Objective: 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: Page Ref: 410 AACSB: Multicultural and Diversity Skill: Application Objective: 13.1: Understand the importance of formulating an appropriate multinational or global marketing strategy 31 ScholarStock 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 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: Page Ref: 414 AACSB: Reflective Thinking Skill: Concept Objective: 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: Page Ref: 418 Skill: Concept Objective: 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: Page Ref: 418 Skill: Application Objective: 13.2: Understand how to study the differences among cultures while developing marketing strategies 32 ScholarStock 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: Page Ref: 419, Table 13.8 Skill: Concept Objective: 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: Page Ref: 423 AACSB: Multicultural and Diversity Skill: Application Objective: 13.3: Understand how consumer-related factors impact a firm's decision to select a global, local, or mixed marketing strategy 33 ScholarStock 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: Page Ref: 425, Table 13.10 Skill: Concept Objective: 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: Page Ref: 424 AACSB: Reflective Thinking Skill: Application Objective: 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: Page Ref: 427 AACSB: Reflective Thinking Skill: Application Objective: 13.4: Understand how lifestyle and psychographic segmentation can be used in developing global or local marketing strategies 34 ScholarStock ... Ref: 409 Skill: Concept Objective: 13. 1: Understand the importance of formulating an appropriate multinational or global marketing strategy ScholarStock 13) When consumers make consumption decisions... 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... Cross-cultural difference D) Country of origin research E) Consumer behavior Answer: B Diff: Page Ref: 412 Skill: Concept Objective: 13. 2: Understand how to study the differences among cultures