International Advertising and Promotion
Chapter Exam Questions
Course Introduction
International Advertising and Promotion explores the strategies, challenges, and opportunities involved in marketing communication across global markets. This course examines how cultural, economic, legal, and technological factors shape advertising messages and promotional activities in diverse regions. Students learn to develop effective international advertising campaigns by analyzing market dynamics, adapting creative content to local preferences, and utilizing various global media platforms. The course also addresses ethical considerations and the impact of globalization on brand management, providing a comprehensive understanding of how to engage consumers worldwide with persuasive and culturally relevant communication.
Recommended Textbook Global Marketing 7th Edition by Warren J. Keegan
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Page 2
Chapter 1: Introduction to Global Marketing
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Q1) When management moves to integrate and coordinate activities on a regional basis, the decision reflects an ethnocentric orientation.
A)True
B)False
Answer: False
Q2) A U.S.company that focuses on the countries included in the North American Free Trade Agreement (NAFTA)has a regiocentric orientation.
A)True
B)False
Answer: True
Q3) The decision to enter one or more particular markets outside the home country depends on all of the mentioned factors except:
A)company's resources.
B)company's age.
C)company's managerial mind-set.
D)nature of opportunities.
E)threats.
Answer: B
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Chapter 2: The Global Economic Environment
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Q1) A country with a positive current account balance has a trade deficit; that is, the outflow of money to pay for imports exceeds the inflow of money for sales of exports.
A)True
B)False
Answer: False
Q2) Which of the following nations fall in the lower-middle-income category?
A)Burundi
B)Bangladesh
C)China
D)Venezuela
E)none of the above
Answer: C
Q3) During the past two decades production has become "uncoupled" from employment.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Regional Market Characteristics and Preferential Trade Agreements
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Q1) The Gulf Cooperation Council (GCC)includes all of the following countries except: A)Kuwait.
B)Saudi Arabia.
C)Iraq.
D)Bahrain.
E)Oman.
Answer: C
Q2) Arrange the following in order from lowest to highest level of economic integration.
A)customs union economic union free trade area common market
B)economic union customs union common market free trade area
C)common market free trade area economic union customs union
D)free trade area customs union common market economic union
E)common market economic union customs union free trade area
Answer: D
Q3) About 50% of global trade takes place among nations linked by free trade areas.
A)True
B)False
Answer: True
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Chapter 4: Social and Cultural Environments
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Q1) Food taboos, language, marriage, medicine, music, dancing, courtship, body adornment, religious rituals, and residence rules are all examples of "cultural universals."
A)True
B)False
Q2) 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:
A)capitalizing on astrological beliefs of Indians.
B)a first step in introducing U.S.programs in emerging markets.
C)attracting families to theme parks in India.
D)emphasizing the role of families in emerging markets.
E)adapting to cultural differences and going native in emerging markets.
Q3) According to Hofstede's research on cultural values, Japan and Austria ranked highest in masculinity.
A)True
B)False
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Chapter 5: The Political, Legal, and Regulatory
Environments
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Q1) The United Nations Conference on International Trade Law (UNCITRAL)has also been a significant force in the area of arbitration.
A)True
B)False
Q2) Which of the following best describes the legal basis for protection of trade secrets, patents, and copyrights in the United States?
A)Trade secrets, patents, and copyrights are protected by federal statutes.
B)Trade secrets, patents, and copyrights are protected by state law.
C)Trade secrets are protected by state law, while patents and copyrights are protected by federal statutes.
D)Trade secrets are protected by federal statutes, while patents and copyrights are protected by state law.
E)Trade secrets, patents, and copyrights are not protected by any laws.
Q3) Which of the following is not a common-law country?
A)India
B)Pakistan
C)Malaysia
D)Korea
E)Singapore
Page 7
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Chapter 6: Global Information Systems and Market Research
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Q1) Anyone undertaking a market research project should understand that the first step is:
A)setting the budget.
B)determining the methodology to use.
C)deciding who will see the final report.
D)defining the problem.
E)determining the information requirement.
Q2) If a market researcher would like to know how much the typical Nigerian consumer spends on soft drinks, the information can be obtained from GNP or GDP.
A)True
B)False
Q3) Tools that can be used for collecting primary data include:
A)survey research and interviews.
B)consumer panels and observation.
C)focus groups and survey research.
D)interviews and observation.
E)all of the above
Q4) Discuss the guidelines submitted by David Arnold pertaining to the importance of data gathering for market research.Indicate the rationale behind each guideline.
Page 8
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Chapter 7: Segmentation, Targeting, and Positioning
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Q1) Sometimes it is preferable to market to a particular age group rather than a mind-set; in such an instance psychographic studies can help marketers arrive at a deeper understanding of consumer behavior than is possible with traditional segmentation variables.
A)True
B)False
Q2) The world's best-known cosmetics companies are setting their sights on a lucrative new market segment: the emerging middle classes in countries such as Brazil, Russia, India, and China.However these companies have to understand:
A)that women's preferences in those countries are almost similar.
B)that Chinese consumers are not willing to invest in beauty products.
C)what beauty means to Chinese women.
D)that working Indian women prefer only local brands.
E)cosmetics are preferred mostly by the top end of the market in China.
Q3) The United States ranks number one among nations in terms of both per capita income and in terms of income adjusted for purchasing power for the year 2009.
A)True
B)False
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Chapter 8: Importing, Exporting, and Sourcing
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Q1) The Ministry of International Trade and Industry (MITI)has helped devise export strategies for companies in:
A)Singapore.
B)South Korea.
C)Taiwan.
D)Hong Kong.
E)Japan.
Q2) "Piggyback exporter," "cooperative exporter," and "export vendor" are all terms used to describe an export broker.
A)True
B)False
Q3) A number of explanations have been offered for the low level of U.S.exports relative to other countries.All of the following can be considered as reasons for low level of exports except:
A)limited ambition by many American business owners.
B)lack of knowledge of market opportunities abroad.
C)perceived lack of necessary resources.
D)marketing to home-country users is easier than exporting.
E)a strong U.S.dollar translates into less affordable prices in export markets.
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Page 10
Chapter 9: Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances
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Q1) To succeed in global markets, firms can rely exclusively on the technological superiority or core competence which made them successful in the past.
A)True
B)False
Q2) Which of the following does not fit into the sequence of experiences Anheuser-Busch had in Japan?
A)Anheuser-Busch first entered Japan by means of a licensing agreement with Suntory, the smallest brewery in Japan.
B)Anheuser-Busch created a joint venture with Kirin Brewery, the market leader.
C)Anheuser-Busch dissolved the joint venture with Kirin Brewery.
D)Anheuser-Busch entered into a joint venture with Kirin Brewery.
E)Anheuser-Busch reverted to a licensing agreement with Kirin Brewery.
Q3) Licensing is a contractual agreement whereby one company (the licensor)makes a legally protected asset available to another company (the licensee)in exchange for royalties, license fees, or some other form of compensation.
A)True
B)False
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Page 11
Chapter 10: Brand and Product Decisions in Global Marketing
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Q1) Products that fall under the dynamically continuous innovation category require more R & D expenditures.
A)True
B)False
Q2) Global marketers must understand the importance of visual aesthetics embodied in the color or shape of a product, label, or package.Which of the following statement is not true regarding the use of color in selected countries:
A)Yellow color on Caterpillar's earthmoving equipment is acceptable worldwide.
B)Packaging aesthetics are particularly important to the Japanese.
C)White color is associated with death and bad luck in some Asian countries.
D)The red Marlboro color had to be changed in some Asian countries.
E)Chinese consider the red color to be lucky.
Q3) Whenever a new product interacts with human, mechanical, or chemical elements, there is the potential for a surprising and unexpected incompatibility.
A)True
B)False
Q4) Explain the differences between "Product Adaptation-Communication Extension" and "Product-Communication Adaptation" strategies.
Page 12
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Chapter 11: Pricing Decisions
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Q1) Joseph Quinlan, chief marketing strategist at Bank of America, estimated that about 25% of U.S.merchandise exports represent shipments by American companies to their foreign affiliates and subsidiaries.This situation underscores the importance of ________ in global marketing.
A)dumping
B)gray marketing
C)transfer pricing
D)price skimming
E)price fixing
Q2) A global company that uses market skimming as a pricing strategy is likely to invite charges of "dumping" by competitors in host-country markets.
A)True
B)False
Q3) Price can be used as a strategic variable to achieve specific goals, including ROI, profit, and rapid recovery of product development costs.
A)True
B)False
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Chapter 12: Global Marketing Channels and Physical Distribution
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Q1) When Wal-Mart Stores first expanded into Mexico, management established a joint venture with the country's largest retailer.Judging by the approach Wal-Mart used, management must have viewed Mexico as:
A)culturally close and easy to enter.
B)culturally distant and easy to enter.
C)culturally close and difficult to enter.
D)culturally distant and difficult to enter.
E)culturally difficult and easy to enter.
Q2) An important new tool for inventory management is:
A)ODW.
B)RFID.
C)LEGO.
D)VUCA.
E)EPOS.
Q3) When utilizing the services of a local independent distributor, management is well advised to yield control of marketing strategy to the distributor.
A)True
B)False
Q4) What are global retail categories? Describe these categories giving examples.
Page 14
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Chapter 13: Global Marketing Communications Decisions I:
Advertising and Public Relations
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Q1) The "localized" versus "standardized" debate pertaining to global advertising has finally been resolved in favor of standardization.
A)True
B)False
Q2) In the language of global marketing, ________ is the phrase used to describe advertising that represents a middle ground between 100% standardization and 100% localization.
A)"stereotype advertising"
B)"template advertising"
C)"cookie-cutter advertising"
D)"compromise advertising"
E)"pattern advertising"
Q3) Consumer products companies typically use advocacy advertising to give the public reasons to buy their products.
A)True
B)False
Q4) What issues must be considered in selecting an advertising agency for global advertising?
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Sales Promotion, Personal Selling, and Special Forms of Marketing Communication
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Q1) Which promotional technique is best suited to a situation in which a company wants consumers to actually try its product or service at no cost?
A)sampling
B)sweepstakes
C)couponing
D)free-standing inserts
E)personal selling
Q2) Which of the following is not a step in the strategic/consultative selling model?
A)develop a marketing mix
B)develop a personal selling philosophy
C)develop a product strategy
D)develop a relationship strategy
E)develop a presentation strategy
Q3) It is expected that information technology will have a big role in promotions using innovative methods.Discuss how infomercials, teleshopping, and interactive television will change the way consumers shop in the near future.
Q4) Giving examples, show how sampling can be an effective sales promotion technique.
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Chapter 15: Global Marketing and the Digital Revolution
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Q1) According to innovation expert Clayton Christensen, the creation of the Internet represented a disruptive technology for Dell Computer.
A)True
B)False
Q2) The term "m-commerce" is used to describe:
A)the use of Internet in commerce.
B)the use of web.com in commerce.
C)the use of credit cards in commerce.
D)the use of money in commerce.
E)the use of cell phones in commerce.
Q3) Cybersquatting is the practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it.
A)True
B)False
Q4) The EUs regulations for e-commerce are among the world's most strict.
A)True
B)False
Q5) How can Web sites be classified? Show how different companies fall under different categories.
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Chapter 16: Strategic Elements of Competitive Advantage
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Q1) In Michael Porter's model, "buyers" refers to manufacturers (e.g., GM)and retailers (e.g.Wal-Mart), rather than consumers.
A)True
B)False
Q2) Unique product attributes represent a barrier to industry entry known as differentiation.
A)True
B)False
Q3) Rugman and D'Cruz cite Benetton as an example of a flagship firm that excels at building partnerships.
A)True
B)False
Q4) Describe how competitive advantage can be created via strategic intent, giving examples of successful approaches of competitors.
Q5) "Hypercompetition" is a term that describes a business environment of escalating rivalry characterized by rapid product innovation and short product life cycles.
A)True B)False
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Chapter 17: Leadership, Organization, and Corporate Social Responsibility
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Q1) Successful companies, the real global winners, must have both good strategies and good execution.
A)True
B)False
Q2) In developing countries, globalization's opponents accuse companies of:
A)undermining local cultures.
B)placing intellectual property rights ahead of human rights.
C)promoting unhealthy diets and unsafe food technologies.
D)pursuing unsustainable consumption.
E)all of the above
Q3) As markets globalize, and as Japan opens its own market to more competition from overseas, more Japanese companies are likely to break from traditional organization patterns.
A)True
B)False
Q4) The matrix organization requires fundamental changes in management behavior, organizational culture, and technical systems.
A)True
B)False
Q5) What is a matrix organization? Describe giving examples.
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