Cross-Cultural Marketing Final Exam
Course Introduction
Cross-Cultural Marketing explores how cultural differences impact consumer behavior, marketing strategies, and communication in global markets. The course examines key concepts such as culture, subculture, values, and norms, and their influence on marketing decisions. Students learn to develop effective marketing programs tailored to diverse markets, analyze cultural barriers to product acceptance, and adapt advertising, branding, and promotional messages for different cultural contexts. Through case studies and projects, the course equips students with the skills to recognize and respond to the challenges and opportunities of marketing in a multicultural and international environment.
Recommended Textbook
International Marketing An Asia Pacific Perspective 7th Edition by Richard Fletcher
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Page 2
Chapter 1: Rationale for International Marketing
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Q1) When entering international markets, firms can take different approaches based on varying levels of commitment. Discuss the various approaches and when each approach may be appropriate.
Answer: With a domestic to transnational approach, a company often makes its first venture out of its home market through exporting, eventually becoming a transnational firm. With this approach, the company may chose to rely on overseas intermediaries or make a larger commitment to an overseas market by establishing its own offices there. The company might start with one offshore market and expand to more markets, or may make its first venture offshore to a number of markets simultaneously. With an indirect exporting to foreign direct investment approach, a company might choose to work initially with an export intermediary who handles all aspects of exporting then chose to export directly. If dictated by tariff or non-tariff barriers, the company might establish a manufacturing operation (joint venture, licensing or wholly-owned). With an export focus to holistic approach, the company takes into consideration not just exporting but also importing (e.g. lower-cost items from offshore). A range of variables will influence the level of commitment, including financial resources, management capabilities, government requirements and consumer demand.
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Page 3
Chapter 2: Avoiding the Pitfalls of the International Political and Legal Environment
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Sample Questions
Q1) The Trade in-Intellectual Property (TRIPS) code administered by the WTO:
A) contains comprehensive new rules to protect intellectual property and to govern disputes.
B) automatically provides global protection of intellectual property.
C) has no authority to manage or govern intellectual property disputes.
D) manages intellectual property trade, but refers all disputes to the International Court of Criminal Justice.
E) makes the WTO the final arbitrator of all intellectual property disputes.
Answer: A
Q2) Arbitration is the best approach to resolving contract disputes because it is less likely to close the door on future business relationships between the feuding parties.
A)True
B)False
Answer: False
Q3) Within parliamentary democracies, policies are designed to reflect the wishes of the majority.
A)True
B)False
Answer: True
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Chapter 4: Catering for the Social and Cultural
Environment of International Marketing
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Q1) Attitudes towards gender, specifically the role of women, varies from culture to culture. Discuss the various ways this may manifest itself in an international marketing context.
Q2) Identify the various levels at which culture operates in a foreign market, and explain how each might impact on the business dealings of a firm wishing to enter an overseas market.
Q3) A frequent problem encountered by Australian businesspeople in Asia (particularly in Japan) is whether 'yes' means 'yes' or merely 'I hear what you are saying'.
A)True
B)False
Q4) Which of the following is a manifestation of cultural influences at an industry level?
A) Credit policy
B) Legal frameworks
C) Decision-making styles
D) Belief systems
E) Codes of ethics
Q5) Explain psychic distance. What role does it play in international marketing?
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Chapter 5: Technology Change and International Marketing
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Q1) The most common form of commitment that firms use when embarking on an e-business strategy is:
A) local-level business models.
B) enterprise-level models.
C) pure play.
D) activity-level business models.
E) business process-level models.
Q2) In a consumer market, lead users of technology can serve as predictors of general market needs.
A)True
B)False
Q3) E-government is centralised control over internet access in a country.
A)True
B)False
Q4) The Long Tail theory supports the notion that there is no restriction on the range of products an online store can offer.
A)True
B)False
Page 6
Q5) Explain the external and internal factors that influence how consumers behave online.
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Chapter 6: Contemporary Environmental Variables in International Marketing
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Q1) The availability of an adequate infrastructure will have an impact on the feasibility of different ways of entering a market.
A)True
B)False
Q2) An organisation that follows an environmental strategy of pollution prevention and compliance has:
A) a proactive approach with a focus on cost reduction.
B) an accommodative approach with a focus on benefit enhancement for customers.
C) a proactive approach with a focus on benefit enhancement for customers.
D) an accommodative approach with a focus on cost reduction.
E) none of the above.
Q3) Health-related issues that create risk for international marketers are divided into the two key categories of:
A) exogenous and endogenous.
B) acute and chronic.
C) viral and bacterial.
D) animal and human.
E) none of the above.
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Chapter 7: Research in International Markets
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Sample Questions
Q1) When firms open in international markets, the competition is likely to be from
A) firms that receive government protection.
B) substitute products.
C) local firms
D) all of the above
E) options A and B only
Q2) Information is the key element in developing successful international marketing strategies, and the information needed can range from general data for assessing market opportunities to specific information for making decisions about the mix.
A)True
B)False
Q3) Outline the key new international marketing research methods. What are the advantages and disadvantages of employing these methods ahead of more traditional research approaches?
Q4) Why is equivalence important in international market research? What steps can international marketers take to maximise construct, measurement and data collection equivalence?
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Chapter 8: International Market Selection and Entry
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Sample Questions
Q1) The OLI paradigm describes the degree to which the firm has advantages due to its:
A) ownership, location and internalisation.
B) openness, location and internationalisation.
C) ownership, licensing and import potential.
D) ownership, location and innovation.
E) openness, location and innovation.
Q2) Environmentalism is an indirect trade barrier that is growing in importance.
A)True
B)False
Q3) The fifth stage of the screening process involves ________ markets because of ________ trade-offs.
A) expanding, internal
B) eliminating, internal
C) eliminating, external
D) expanding, internal.
E) none of the above
Q4) List additional factors that need to be weighed when considering decisions requiring foreign direct investment (FDI).
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Chapter 9: International Competitive Strategy
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Q1) At its narrowest level, a company can define its competitors as:
A) all those companies that offer the same level of service.
B) those companies that offer a similar product to the same customer at a similar price.
C) all those producers making the same product or class of product.
D) all those companies competing for the same consumer dollar.
E) none of the above.
Q2) The elements of the value chain related to offshoring/outsourcing are confined to manufacturing and the supply of raw materials.
A)True
B)False
Q3) Where a dominant firm wishes to hold its position in the market it should:
A) manage the market.
B) reinforce market perceptions.
C) be bold in everything it does.
D) all of the above.
E) options A and B only.
Q4) What are some major advantages and disadvantages of niching in international marketing?
Q5) Discuss the trade-offs between standardisation and adaptation.
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Chapter 10: Internationalization, Relationships and Networks
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Q1) CRM is directly related to networks because:
A)Members of the network provide marketing-related services that help create and satisfy the demand of international customers
B)Members of the networks supply the inputs
C)It involves harnessing the international network in which the firm is embedded to serve the customer
D)All of the above
E)Options A and C only
Q2) Customer relationship management is important for international firms because they are located close to their customers.
A)True
B)False
Q3) In Guanxi transactions come first followed by relationships.
A)True
B)False
Q4) Outline the four key approaches to internationalisation. Give examples of each approach in action.
Q5) Explain how a firm's international corporate social responsibility is influenced by its international networks.
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Chapter 11: Globalization
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Q1) Cost drivers for globalisation include:
A)Increasing levels of foreign ownership
B)Tariffs and trade barriers
C)Relative labour costs
D)Converging per capita incomes
E)Options A and B only
Q2) An understanding of the macro aspects of globalisation is essential because it:
A)Enables an assessment of the likelihood that the local government might engage in defensive or offensive intervention
B)Sensitises managers to how such globalisation efforts might be perceived at the local level
C)Provides firms with a deeper understanding of their product strengths and weaknesses
D)All of the above
E)Options A and B only
Q3) China is currently the world's largest economic entity.
A)True
B)False
Q4) Discuss the relationship between globalism and glocalisation.
Q5) Discuss the drivers and consequences of market globalisation.
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Chapter 12: Planning for Effective International Marketing
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Q1) Price, needs and potential usage are important aspects to consider when designing a positioning strategy.
A)True
B)False
Q2) A company's decision and reward systems will significantly affect the implementation of an international marketing plan.
A)True
B)False
Q3) When considering entering into a new market internationally, it is important to consider the business environment into which the organisation is moving. Which of the following in NOT a consideration?
A) Legal factors
B) Economic factors
C) Technological factors
D) Political factors
E) None of the above
Q4) Discuss why international marketers make use of scenario planning and discuss the essential steps involved.
Q5) Discuss the emerging bases for global segmentation.
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Chapter 13: Modifying Products for International Markets
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Q1) Modification of a product may be necessary in order to cater for different product usage patterns in an overseas market. Usage patterns can be a reflection of:
A) the environment in which the product is used.
B) product affordability.
C) particular social customs.
D) all of the above.
E) none of the above.
Q2) The internet leads to greater customisation of products to customer needs.
A)True
B)False
Q3) The phrase 'born global' is increasingly being used to describe firms that commence operations with a focus on their domestic market rather than on the global market.
A)True
B)False
Q4) Government regulations on packaging mostly relate to cultural differences such as the use of colour, size and shape.
A)True
B)False
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Chapter 14: International Pricing for Profit
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Q1) The price that an international buyer pays for the product, or sees being demanded for a product, becomes the ________ price against which other products are likely to be evaluated.
A) hidden
B) seasonal
C) reference
D) comparative
E) discount
Q2) An international price skimming strategy attempts to achieve:
A) the largest market share in the quickest possible time.
B) the highest possible return in the quickest possible time.
C) the highest level of brand awareness in the short term.
D) the highest possible return in the long term.
E) none of the above.
Q3) Discuss the various methods of terms of payment, and highlight the benefits and disadvantages of each from a seller's perspective.
Q4) How important are environmental factors in determining an international price structure? Illustrate your answer with examples taken from a specific country or product.
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Chapter 15: Promotion in International Marketing
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Q1) In your opinion, what influence does country of origin have when consumers are making a decision on purchasing products with which they are not familiar? Give examples to illustrate your answer.
Q2) Level of education influences which of the following aspects of international communications messages:
A)The relative use of written compared to visual or aural messages
B)Content of promotional or advertising messages
C)Country of origin diffusion effect
D)Country experience effect
E)Options A and B only
Q3) Television is a major international media option. Which of the following elements of television is regarded as its major disadvantage?
A)International audience reach, but only through satellites
B)Cost
C)Sensory effects
D)Source of opinion
E)National and regional audience reach
Q4) Discuss how social media has changed the way firms interact with their international customers.
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Chapter 16: Effective International Distribution
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Q1) You are the international marketing manager for an Australian confectionary company that is looking to export into China, Hong Kong and Taiwan. Prepare a discussion paper on how you would go about selecting, appointing, maintaining and possibly terminating intermediaries for these markets.
Q2) Two aspects of distribution standardisation are:
A)Process and program
B)Process and outcome
C)Process and channel
D)Process and structure
E)Process and element
Q3) In general, the more economically developed a country is the longer the distribution channel is.
A)True
B)False
Q4) Decisions on price setting in the international market involve establishing the minimum price the exporter is prepared to accept together with the maximum price the market is prepared to pay. What strategies could be used for determining this price?
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Chapter 17: Marketing Services and Projects Overseas
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Q1) When screening bids for international projects, internal and external factors are used at each stage of the screening process.
A)True
B)False
Q2) According to Lovelock et al (2004) services can be classified as:
A)People-processing services
B)Information-processing services
C)Possession-processing services
D)All of the above
E)Options A and C only
Q3) Technological advances have driven a reduction in low contact services.
A)True
B)False
Q4) Because services cannot be saved or stored, it is necessary to devise strategies to cope with fluctuating demand. This characteristic of services is referred to as simultaneity (inseparability).
A)True
B)False
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Chapter 18: International Marketing in the Decade Ahead
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Q1) Which of the following statements about products in the BOP market is FALSE?
A)Consumers make an effort to look for new or alternative products in the market-place
B)Consumers prefer to purchase products at local shops
C)Units of products for purchase are usually smaller
D)Expenditure on non durable goods accounts for a high percentage of income
E)There are significant perceived differences between authentic and pirated products
Q2) The three segments that make up the middle of the pyramid in Africa are known as:
A)Working class, lower middle class, upper class
B)Rural workers, regional workers, urban workers
C)Lower class, middle class, upper class
D)Blue collar workers, white collar workers, working families
E)Lower middle class, floating class, upper middle class
Q3) Consumer behaviour in BOP markets differs greatly to developed markets. Discuss these differences and explain how a firm that distributes clothing may need to adjust their marketing mix.
Q4) What are the key product decisions a firm needs to make when entering a BOP market?
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