1) The cultural environment of a country is best defined by which characteristics?

C) attitudes, beliefs, and values

2) Suppose you have a friend from India who is a lifelong vegetarian and who does not like McDonald's because the company sells hamburgers in many countries. Which of the following describes your friend?

A) "vegetarianism" represents a value, "dislike McDonald's" represents an attitude

3) There is nothing inherently "good" or "bad" about any color of the spectrum and all associations and perceptions regarding color arise from culture. Which of the following statements is not true:

D) Red color is highly preferred in some African countries.

4) Cultural influences are also quite apparent in food preparation and consumption patterns and habits. Domino's Pizza, the world's largest pizza-delivery company, pulled out of Italy because:

C) Italians perceived its products to be "too American."

5) While some food preferences remain deeply embedded in culture, there is plenty of evidence that global dietary preferences are converging. Examples of such a change can be predicted from:

C) the growing number of McDonald's restaurants globally.

6) American Nancy McKinstry recently became the new CEO at Dutch publisher Wolters Kluwer. As Ms. McKinstry noted, she had to drop the word "aggressive" in describing her strategic plan to company managers. She said, "I learned that the word has a negative connotation to a lot of Europeans. I was coming across too hard, too much of a results-driven American to the people. I needed to get on board so I started describing our strategy as 'decisive' and that made all the difference." Which of the following grammar topics is the critical element in this passage?

B) semantics
7) An intern from the United Kingdom was working in an American software company during summers. One day her boss gave her a memo asking her to post it, with the intention of having it put on the bulletin board. To her boss's surprise the letter was mailed by the intern since the word “post” means “mail” in British English. In communication terms this error can be attributed due to:

D) semantics.

8) When the Coca-Cola Company was developing its new Dasani bottled water brand, linguists helped guide the naming process. For example, the recurring "a" was chosen because it has a soothing sound. In linguistics, issues pertaining to letters and sounds are matter of:

C) phonology.

9) Giving business cards with the left hand in Malaysia, showing soles of shoes to a host in Saudi Arabia, and winking one eye in India are all considered impolite interpersonal communication due to the fact that:

C) people pick up nonverbal cues and understand intuitively without being told.

10) A vice-president of an American software company introduced himself to a group of Korean partners and added "you may just call me John." Although this verbal cue shows the underlying reality that Americans have a high value on informality and equality, it needs adaptation due to the reason that:

C) customs, hierarchies, and class structure of Korean culture have to be respected.

11) A characteristic of a low-context culture which is prevalent in United States, Switzerland, and Germany is:

C) messages are explicit and specific.

12) In high-context cultures, time is:

B) polychronic.

13) According to Geert Hofstede, which of the following is a key cultural dimension that helps account for rapid economic growth in Asia?

E) long-term orientation

14) Two countries that outrank the others in uncertainty avoidance are:

C) Greece and Portugal.

15) Which is not considered as a long-term value?

E) search for truth

16) The power distance dimension reflects the degree of trust among members of society. Thus, the higher the power distance (PDI) the:

B) lower is the level of trust.

17) Danes generally are not afraid of taking chances; they are comfortable doing things that are not carefully thought out or planned. Denmark's "flexicurity" policy combines free labor markets with adjustable welfare benefits. This is an example of the application of Hofstede's typology under the values which highlight:

B) Uncertainty Avoidance.

18) European consumers have faced a number of food-related issues, including an outbreak of hoof-and-mouth disease and continuing concerns over mad cow disease. As a result, many are skeptical about GMOs (genetically-modified organisms) and the benefits of eating food products that incorporate genetically-engineered ingredients. As one French citizen noted recently, "We have a very risk-averse society that has been completely traumatized by food scares." Thinking about this situation in terms of Hofstede's cultural values framework, one might reasonably interpret this remark to indicate that France ranks relatively high in:

D) Uncertainty Avoidance.
19) Procter & Gamble's introduction of All-Temperature Cheer laundry detergent in Japan was a flop at first. The problem was that Japanese women wash clothes in cold water– either tap water or leftover bath water–so they don't care about all-temperature washing (which is a big selling point in the U.S.). Also, Cheer was first introduced in Japan at a time when the market for fabric softeners in Japan was rapidly expanding. However, when Japanese housewives added lots of fabric softener to the water, Cheer didn't produce many suds (Americans don't use as much fabric softener). P&G reformulated the product so it wouldn't be affected by fabric softeners, and ads for Cheer in Japan pledged superior cleaning in cold water, not all temperatures. Which of the following might have helped P&G avoid the initial problems with Cheer?

D) self-reference criterion

20) The Walt Disney Company's decision to build a theme park in France provides an excellent vehicle to understanding SRC (Self-Reference Criterion). All of the statements listed below portray this meaning except:

D) Disney executives were blinded by their prior success and ethnocentrism.

21) Which of the following best sums up the experience of Walt Disney Company executives when creating Disney's theme park in Paris?

B) They fell victim to the self-reference criterion.

22) The lesson that SRC (Self-Reference Criterion) teaches can be summarized as:

C) unbiased perception is a vital and critical skill in global marketing.

23) When Walt Disney company's executives were planning to build a theme park in France, they firmly believed that the success of McDonald's and Coke as well as their success in Tokyo Disneyland ensures the runaway success of their plans. Disney policies prohibit sale or consumption of alcohol inside the theme parks which they also implemented in France. This proved to be a failure since consuming wine with the midday meal is a long-established custom in France. This is a classical example of:

C) a geocentric management orientation.

24) One of the basic elements of sociologist Everett Roger's Diffusion theory is the concept of an "adoption process." The first step in this adoption process is:

E) awareness.

25) Which of the following shows the correct order of the product adoption process?

D) awareness→interest→evaluation→trial→adoption

26) Which of the following can negatively influence the rate of diffusion of an innovation?

C) high complexity

27) That floppy disks are being dumped in favor of USB mass storage devices can be attributed to which characteristics of innovation?

B) relative advantage

28) To speed adoption of a new product, the marketing team should:

A) ensure that features and benefits can be communicated or demonstrated.

29) In the 1990s, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC allowed users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. This latter feature reflects which of the following characteristics of innovations?

C) compatibility

30) Together, innovators and early adopters make up about ________ of the potential market for a new product.

A) 16.0%

31) If a marketing manager plans to enter the newly industrializing countries (NICs) or other Asia markets with a product that has proved to be successful in the home market, the product's diffusion processes are likely to be:

C) much faster than in the home market.

32) A few years ago, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC did more than allow users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. However, die-hard audio buffs were the only ones to buy DCC and Philips ultimately discontinued the product. Which of the following statements based on adopter categories describes this?

B) innovators bought, but early adopters didn't

33) Adopter categories are classifications of individuals within a market on the basis of their innovativeness. Recently Apple introduced the iPhone for which people waited in long lines before the doors opened. According to experts these 2.5% of people who bought the iPhone are categorized as:

B) innovators.

34) Which of the following is true about the innovation diffusion process in Asia?

E) all of the above are true

35) Comparing and contrasting the diffusion of innovations in Western countries and in Asia, one can say that:

B) in Asia, the adoption process begins more slowly but ramps up more rapidly than it does in Western countries.

36) Which of the following is arranged starting with the highest level of environmental sensitivity and ending with the lowest level?

A) food→computers→integrated circuits

37) The ________ the level of environmental sensitivity for a given product, the ________ the need for managers to address country-specific economic, regulatory, technological, social and cultural environmental conditions.

A) greater; greater

38) Which of the following is true about "coffee culture" in England?

B) American entrepreneurs found success in England with the Seattle Coffee Company which Starbucks later acquired.

39) Despite the fact that the American team advanced to the semi-finals in South Africa, the game is much more popular in other parts of the world. There is an effort to make soccer popular in the United States, and many fashion brands are interesting in marketing their products which pertain to soccer and other sports. Considering this aspect which of the following statements is incorrect:

B) FIFA is the only global marketer seeking revenue growth by boosting soccer's popularity in America.

40) Disney is hoping to appeal to India's family-oriented middle-class consumers; the core themes include "believe in yourself, express yourself, and celebrate your family." Disney is also using cable television for its program in a number of local languages and dialects. This is an example of:

E) adapting to cultural differences and going native in emerging markets.

81) There are considerable differences and similarities among world cultures. This makes the task of the global marketer much more difficult. Giving examples, show what factors have to be taken into account when planning marketing strategy for different parts of the world.

Answer: The task of the global marketer is twofold based on the differences and similarities prevalent worldwide. First of all, marketers must study and understand the country cultures in which conduction of business is planned. Secondly, marketers must incorporate this understanding into the marketing planning process. Several adaptations will be needed in developing strategies. Deep cultural understanding can actually be a source of competitive advantage for global companies. It is not only the language but deep understanding of culture and developing a relationship that is of paramount importance. In a new geographic market it requires a combination of tough-mindedness and generosity. While marketers should be secure in their own convictions and traditions, generosity is required to appreciate the integrity and value of other ways of life as well as points of view. People should overcome the prejudices that are a natural result of the human tendency toward ethnocentricity.
Diff: 2 Page Ref: 102-106
AACSB: Reflective Thinking
Objective: 1
Question Type: Critical thinking

82) London's Sunday Times reported that Mecca-Cola has become the drink which has come to be seen as "politically preferable" to Pepsi or Coke in many Muslim countries. Also, Danish products were boycotted in many Islamic countries in protest of an offensive cartoon that was printed in Danish newspapers. Considering these two examples, show how religion can have an impact on marketing.
Answer: Religion is one of the most important sources of a culture's beliefs, attitudes, and values. Hindus do not eat beef, which means that McDonald's does not serve hamburgers in India. There was a big uproar when it was found that McDonald's french fries had beef as one of the ingredients. Similarly, Jews do not combine fish and dairy products, which makes McDonald's fish fillet a problem for them. Jews and Muslims do not eat pork, which rules out the use of bacon in many products sold by fast food operations. Restaurants in Malaysia have to declare that all meats are Halal or sacrificed in a specified religious way. In addition to religious requirements, religious sentiments also play an important role. After the incidents of September 2001, there was a distinct feeling of anti-Americanism in many parts of the world, particularly the Middle Eastern region. Mecca-Cola was an attempt to make indigenous products to compete with American ones. One of the concerns in allowing Turkey to join the European Union is that it is predominantly Islamic, whereas other members are comprised of Christians. All these cases show that religion plays a very important role in how people live as well as buy products and services.
Diff: 2 Page Ref: 103-106
AACSB: Multicultural and Diversity
Objective: 1
Question Type: Critical thinking

83) Giving examples, show how technology is providing interesting new opportunities for exploiting linguistics in the name of marketing.
Answer: With the increased use of information technology and computers, there has been a noticeable positive and negative impact on linguistics. Text messaging and chat rooms have made it much easier to abbreviate common words, primarily due to limited space on keyboards of cell phones such as BlackBerry and to reduce time involved. Thus, a combination of numerical and alphabetical abbreviations are being used. For example, GR8 (great); CU (see you); AFK (away from keyboard); b4 (before); BBL (be back later); BRB (be right back); GMTA (great minds think alike); l8r (later) and ^5 (high five). In Korean, the phonetic pronunciation of the numerical sequence 8282 (Pal Yi PalYi) means hurry up and 7179 (Chil Han Chil Gu) sounds like "close friend." In some languages numerology has different meanings which when decoded can convey messages. In addition to being exciting, such use of terminology can make slogans stick in the minds of consumers and therefore can be used effectively in marketing. Some of these are getting universally accepted terms due to common use of computers and technological gadgets.
Diff: 2 Page Ref: 109-111
AACSB: Use of IT
Objective: 1
Question Type: Application

84) The diversity of cultures around the world is also reflected in languages and communication. When KFC translated its slogan "Finger Licking Good" it became "Eat your fingers" in Chinese; similarly "Pepsi is for Generations" became "your grandparents will come out of the grave to drink Pepsi." Studies showing how linguists have divided the study of spoken or verbal language demonstrates how verbal and non-verbal communication can have an impact on marketing around the world.
Answer: Linguists have divided the study of spoken language into four main areas: syntax (rules of sentence formation); semantics (system of meaning); phonology (system of sound patterns); and morphology (word formation). Unspoken or nonverbal communication includes gestures, touching, and other forms of body language. Both the spoken and unspoken aspects of language are included in the broader field of semiotics, which is the study of signs and their meanings. Language is a crucial tool for communicating with customers and channel intermediaries. Words have different meanings in different cultures. For example post in America may refer to putting something on a bulletin board, whereas in British English it may mean mailing. Similarly, Miller Lite was considered to have less alcohol in Europe, whereas Diet Coke was considered as a dietary supplement in the Middle East. Changes were made to market Miller Lite as Miller Pilsner in Europe and Diet Coke as light coke in the Middle East. In addition to syntax and semantics, phonology can have an impact. For example there is no letter that sounds like P in Arabic so Pepsi sounds like Bebsi and Popeye's sounds like Bobeye's. Similarly, sounds of r and l are intermixed in Chinese. In the United States recently, Sioux Gateway City airport decided to keep the symbol "SUX" although there were a lot of comments about its phonology. On the other hand, the airport decided to use it in marketing by using the slogan "Fly SUX" thereby making it easy for people to remember it. Semantics can also have an impact, such as the word Esso has negative connotation in some languages; Nova (as in Chevy Nova) meant it does not move and Colgate means "go hang yourself" in Spanish. Also, nonverbal cues can have different meanings. In some cultures shaking the head from right to left is considered as yes whereas it means no in some other cultures. Shaking hands is considered as finalizing the deal in some cultures and in others it is just an introduction. There are different ways of bowing in Far Eastern cultures to indicate different aspects. Thus, verbal and nonverbal communications have a distinct impact on marketing practices.
Diff: 2 Page Ref: 107-111
AACSB: Communication
Objective: 1
Question Type: Critical thinking

85) What are some of the salient characteristics and differences between high- and low-context cultures?
Answer: In a low-context culture, messages are explicit and specific; words carry most of the communication power whereas in high-context culture, less information is contained in the verbal part of a message. Much more resides in the context of communication, including the background, associations, and basic values of the communicators. Japan and Saudi Arabia are examples of high-context culture, where a great deal of emphasis is placed on a person's values and position or place in society. In a low-context culture, such as the United States, Switzerland, or Germany, deals are made with much less information about the character, background, and values of the participants. In a high-context culture, a person's word is his or her bond. As a result, lawyers are much less important in high-context cultures. This also makes negotiations lengthy in high-context culture since several meetings or prodding is needed.
Diff: 2 Page Ref: 112-113
AACSB: Reflective Thinking
Objective: 2
Question Type: Definitional

86) Hofstede considers culture as "the collective programming of the mind," which makes it necessary to look at the attitudes, beliefs, and values. Giving an example of a country, explain how these attributes are so important.
Answer: An attitude is a learned tendency to respond in a consistent way to a given object or entity. Actually, they are clusters of interrelated beliefs. Many Japanese believe that the West is the source of important fashion trends, and therefore they share a favorable attitude toward American brands. A belief is an organized pattern of knowledge that an individual holds to be true about the world. Japan's monocultural society reflects the belief among the Japanese that they are unique in the world. Attitudes and beliefs are closely related to values. A value can be defined as an enduring belief or feeling that a specific mode of conduct is personally or socially preferable to another mode of conduct. Values represent the deepest level of a culture and are present in the majority of the members of a particular culture. The Japanese, for example, strive to achieve cooperation, consensus, self-denial, and harmony. Since these all represent feelings about modes of conduct, they are values. Attitudes, beliefs, and values are all interrelated and extremely important from a marketing point of view.
Diff: 2 Page Ref: 113-115
AACSB: Multicultural and Diversity
Objective: 3
Question Type: Definitional

87) Applying Hofstede's typology, show how Power Distance and Gender Differentiation can influence the marketing of products and services in different countries.
Answer: Power Distance is the degree to which members of a particular society expect power to be unequally shared. Hong Kong and France are both high power-distance cultures; low power distance characterizes Germany, Australia, the Netherlands, and Scandinavia. The power distance dimension reflects the degree of trust among members of society. The higher the power distance, the lower the level of trust. Companies in high power-distance cultures prefer sole ownership of subsidiaries because it provides them with more control. On the other hand, companies in low power-distance cultures are more apt to use joint ventures.

Masculinity describes a society in which men are expected to be assertive, competitive, and concerned with material success, and women fulfill the role of nurturer and are concerned with issues such as the welfare of children. Femininity, by contrast, describes a society in which the social roles of men and women overlap, with neither gender exhibiting overly ambitious or competitive behavior. Japan and Austria ranked highest in masculinity; whereas Spain, Taiwan, the Netherlands, and the Scandinavian countries were among the lowest. The masculinity-femininity dimension is likely to manifest itself in the relative importance of achievement and possessions (masculine values) compared with a spirit of helpfulness and social support (feminine values). An aggressive, achievement-oriented salesperson can be more successful in Austria, Japan, or Mexico than in Denmark. The Japanese managers may react negatively to a woman, especially if she is younger than they are.
Diff: 2 Page Ref: 113-116
AACSB: Multicultural and Diversity
Objective: 3
Question Type: Definitional

88) Reference to one's own cultural values or self-reference criterion (SRC) can create a cultural myopia. It can consciously or unconsciously create considerable problems for marketing professionals. Using Walt Disney's decision to build a theme park in France, address the problem, following a systematic framework.
Answer: To address the problem and to eliminate or reduce cultural myopia, a systematic four-step framework is proposed as described below:

Step 1. Define the problem or goal in terms of home-country cultural traits, habits and norms. Disney executives believe there is virtually unlimited demand for American cultural exports all over the world. Disney has a track record in exporting its American management system as seen by the success of Tokyo Disneyland. However, Disney policies prohibit sale or consumption of alcohol inside its theme parks.

Step 2. Define the problem or goal in terms of host-country cultural traits, habits, and norms. Make no value judgments. Europeans in general and the French in particular are sensitive about American cultural imperialism. Consuming wine with the midday meal is a long-established custom in France. Many Disney characters are based on European folklore.

Step 3. Isolate the SRC influence and examine it carefully to see how it complicates the problem. The differences noted in earlier steps suggest strongly that the needs upon which the American and Japanese Disney theme parks were based did not exist in France
.
Step 4. Redefine the problem without the SRC influence and solve for the host-country market situation. A modification in design of the theme park that is in keeping with French and European cultural norms will solve the problem. Focus on French identity on the park.
Diff: 2 Page Ref: 117-119
AACSB: Reflective Thinking
Objective: 4
Question Type: Synthesis

89) One of the basic elements of Roger's diffusion theory is the concept of adoption process which deals with the mental stages through which an individual passes from the time of his or her first knowledge of an innovation to the time of product adoption or purchase. Briefly describe these stages given examples of Apples iPhone.
Answer: 1. Awareness. In the first stage the customer becomes aware for the first time of the product or innovation. Mass media advertising was critical in informing customers about the new iPhone. 2. Interest. Enough interest was generated by advertisement which did not fully disclose the exciting features of iPhone but did provide some clues. 3. Evaluation. Customers became curious and started mental assessment of the product's benefits in relation to present and anticipated future needs. Also, comparative assessment was made to see how it is more versatile than the existing technology. 4. Trial. Most customers did not purchase iPhone since it was expensive and waited to get some "hands-on" experience. Such trials are common for many products and services. 5. Adoption. This is the final stage where the individual will make a decision to buy; purchases it; or adopts it. Personal sources of information are more important in the entire process than impersonal sources. Word-of-mouth becomes a very important persuasive force affecting the decision to buy.
Diff: 2 Page Ref: 118-121
AACSB: Reflective Thinking
Objective: 4
Question Type: Application

90) There are specific characteristics of innovations that affect which innovations are adopted. Define those characteristics giving examples of products or services.
Answer: There are five different characteristics that are important in the adoption of innovations. They are: 1. Relative advantage. This involves a comparative assessment of the existing products or methods. If a product has a substantial relative advantage, it is likely to gain quick acceptance. The popularity of jump drives is an example for their preference over floppy disk. 2. Compatibility. This concerns with the extent to which a product is consistent with existing values and past experiences of adopters. For example, the first consumer VCR, the Sony Betamax, failed because it could only record for one hour. Most customers wanted to record for longer periods of time and thus selected VHS-format, although the recording quality of Sony-Betamax was superior to VHS. 3. Complexity. The degree to which an innovation or new product is difficult to understand, operate, and use. The more complex a product is, the slower will be its adoption. The new digital cameras are an example of their slow adoption since their operations are very complex. 4. Divisibility. This is the ability of a product to be tried and used on a limited basis without great expense. There are wide discrepancies in income levels around the world as well as the storage conditions. Smaller cans of Coke and Pepsi are popular in many countries, with affordable prices and less storage space requirement. 5. Communicability. It is the degree to which benefits of an innovation or the value of a product may be communicated to a potential market. Many of the software programs go unsold since their benefits are not fully communicated to customers. These characteristics give a clear outline of what is needed for an innovation to be successful.
Diff: 2 Page Ref: 119-122
AACSB: Reflective Thinking
Objective: 4
Question Type: Application

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