Chapter 4 Social and Cultural Environments: Global Marketing, 10e (Green/Keegan)

Global Marketing, 10e (Green/Keegan)
Chapter 4 Social and Cultural Environments
1) That social and cultural environments influence marketing opportunities and dynamics around
the globe is illustrated by all of the following facts except:
A) coffee culture continues to spread around the globe.
B) coffee brew is becoming popular in countries such as India and China.
C) coffee became the hot beverage of choice in India.
D) conflict is brewing between government budget and consumer aspirations.
E) consumers want to drink more coffee made from premium coffee beans.
Answer: C
Difficulty: 2: Moderate
Chapter LO: 4.1: Define culture and identify the various expressions and manifestations of
culture that can impact global marketing strategies.
AACSB: Application of knowledge
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
B) "vegetarianism" represents an attitude; "dislike McDonald's" represents a value
C) "vegetarianism" and "dislike McDonald's; "both represent an attitude
D) "vegetarianism" represents a value; "dislike McDonald's" represents a belief
E) "vegetarianism" and "dislike McDonald's;" both represent values
Answer: A
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?
A) Red color is a popular color in most parts of the world.
B) Red color is associated with "active," "vibrant," and "emotional."
C) Red color is preferred in many countries since it is the color of blood.
D) Red color is highly preferred in Korea.
E) Red color is tied to the traditions of viticulture and winemaking.
Answer: D
4) When members of the British royal family make diplomatic tours, ________ is a frequent
wardrobe choice.
A) red
B) green
C) blue
D) orange
E) brown
Answer: C
Difficulty: 1: Easy
5) 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:
A) its tomato sauce was too bold and competed with Italian products.
B) people did not like to eat at home.
C) Italians perceived its products to be "too American."
D) Italians wanted more toppings on thick crust.
E) Italians did not like anyone else to use the name "pizza."
Answer: C
6) Considering Hofstede's notion of culture as "the collective programming of the mind," then
attitudes can be defined as:
A) a learned tendency to respond in a consistent way to a given object or entity.
B) an organized pattern of knowledge that an individual holds to be true about the world.
C) an enduring belief or feeling of a specific mode of conduct.
D) a personally or socially preferable mode of conduct.
E) the deepest level of a culture present in the majority of the members of a particular culture.
Answer: A
7) 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
the:
A) popularity of Domino's Pizza in Italy.
B) preference for local hamburgers from a local chain, Jollibee's, in the Philippines.
C) growing number of McDonald's restaurants globally.
D) increased sales of soups and noodles in Thailand.
E) popularity of Chinese foods in Taiwan.
Answer: C
8) As cultural differences become less relevant and disposable incomes become high, a trend
towards greater consumption of the following type of foods is predicted.
A) French artistic foods
B) American fast foods
C) Chinese retail foods
D) Indian spicy foods
E) Mexican spicy foods
Answer: B
9) An intern from the United Kingdom was working in an American software company during
the summer. 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:
A) syntax.
B) phonology.
C) morphology.
D) semantics.
E) semiotics.
Answer: D
10) Linguists have divided the study of languages into four main areas. The system of word
formation is referred to as:
A) syntax.
B) phonology.
C) morphology.
D) semantics.
E) semiotics.
Answer: C
11) Anheuser-Busch and Miller Brewing both experienced market failures in the United
Kingdom when they used the phrase "light beer" which was misinterpreted as:
A) being low in calories.
B) having reduced alcohol levels.
C) having light color.
D) having less quality.
E) having less quantity.
Answer: B
12) 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 a matter of:
A) syntax.
B) synonym.
C) phonology.
D) semiotics.
E) semantics.
Answer: C
Difficulty: 3: Challenging
13) Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself."
Whirlpool found that consumers in Italy, France, and Germany had trouble pronouncing the
name. These are examples, which show the importance of ________ in global marketing.
A) syntax and morphology
B) phonology and morphology
C) syntax and semantics
D) semantics and phonology
E) semantics and morphology
Answer: B
14) 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:
A) in Middle Eastern countries it is customary to take off shoes at the door.
B) it is difficult to notice when one winks eyes since there are many people in India.
C) people pick up nonverbal cues and understand intuitively without being told.
D) these actions distract people from hearing at meetings.
E) people are not aware of Western ways of doing business.
Answer: C
AACSB: Diverse and multicultural work environment
15) 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:
A) John is not a very popular name in Korea.
B) it is difficult to translate John in Korean language.
C) customs, hierarchies, and class structure of Korean culture have to be respected.
D) Korean culture requires that first and last name be used in addressing guests.
E) it is not appropriate to disclose nicknames in business meetings.
Answer: C
16) The English language requirement by Matsushita is a potent symbol that this Japanese
company is focusing on globalizing its operations.
Answer: TRUE
Difficulty: 1: Easy
17) Historically, the lagoon in Venice provided Venetians with a safe haven from Germanic and
Hun invaders.
Answer: TRUE
Difficulty: 1: Easy
18) Culture includes conscious and unconscious values, ideas, attitudes, and symbols that shape
human behavior that are confined to a generation.
Answer: FALSE
19) According to Hofstede's definition of culture a particular "category of people" may constitute
a nation, an ethnic group, a gender group, an organization, a family, or some other unit.
Answer: TRUE
20) In Indonesia, home of the world's largest Muslim population, KFC uses Ramadan-themed
outdoor advertising to encourage Indonesians to come to the restaurants at buka puasa, the end of
each day's fast.
Answer: TRUE
21) Aesthetic elements that are attractive, appealing, and in good taste are perceived as such
universally.
Answer: FALSE
22) In Korea, it is taboo to write a person's name in blue ink, since traditionally, red was used to
record the names of the deceased.
Answer: FALSE
23) Cadbury has trademarked the color brown for its chocolate confectionary packaging.
Answer: FALSE
24) Music is an aesthetic component of all cultures and is accepted as a form of artistic
expression and a source of entertainment.
Answer: TRUE
25) Music provides an interesting example of the "think globally, act locally" concept.
Answer: TRUE
26) Background music can be used effectively in broadcast commercials, since it can be accepted
universally.
Answer: FALSE
27) White connotes purity and cleanliness in the West, but is often associated with death,
mourning, and funerals in China and other parts of Asia.
Answer: TRUE
28) Domino's Pizza pulled out of Italy because Italians perceived its products to be "too
American."
Answer: TRUE
29) Although some food preferences remain deeply embedded in culture, plenty of evidence
suggests that global dietary preferences are converging.
Answer: TRUE
30) Japanese strive to achieve cooperation, consensus, self-denial, and harmony. Because these
all represent feelings about modes of conduct, they are beliefs.
Answer: FALSE
31) In China, Dell had to find a meaningful interpretation of "direct sales," the phrase that
describes the company's powerful business model.
Answer: TRUE
32) In Korea 4 5683 968 can be interpreted as "I love you."

Answer: TRUE
33) Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself."
Answer: TRUE
34) Westerners doing business in the Middle East must be careful not to reveal the soles of their
shoes to hosts or pass documents with the left hand.
Answer: TRUE
35) "McDonaldization of culture," a term coined by Geert Hofstede, refers to the wide spread of
McDonald's restaurants in the world and its adverse impact on global culture.
Answer: FALSE
36) 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, 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 also 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.
AACSB: Analytical thinking
37) 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.
38) 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 is 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 to be universally accepted terms due to common use of computers and
technological gadgets.
39) The diversity of cultures around the world is 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." Using studies showing how linguists have divided the study of spoken or verbal
language, demonstrate 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 through the post
office. 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.
40) In high-context cultures, time is:

A) monochronic.
B) polychronic.
C) linear.
D) short.
E) common.
Answer: B
Chapter LO: 4.2: Compare and contrast the key aspects of high- and low-context cultures.
41) Insisting on competitive bidding can cause complications in:
A) low-context cultures.
B) high-context cultures.
C) low and high context cultures.
D) the Korean culture.
E) the Japanese culture.
Answer: A
42) Lawyers are more important in:

A) low-context cultures.
B) high-context cultures.
C) Indian cultures.
D) the Korean culture.
E) the Japanese culture.
Answer: A
43) According to Geert Hofstede, which of the following is a key cultural dimension that helps
account for rapid economic growth in Asia?
A) power distance
B) individualist/collectivist
C) feminine/masculine
D) uncertainty avoidance
E) long-term orientation
Answer: E
44) Two countries that score low in uncertainty avoidance are:

A) Austria and Belgium.
B) Japan and Hong Kong.
C) United States and Canada
D) Denmark and Finland.
E) Ireland and Italy.
Answer: C
45) High-context messages are explicit and specific; words carry most of the communication
power.
Answer: FALSE
46) The president of an American company was interested in dealing with a company in Saudi
Arabia. The Saudi CEO made it clear at the outset that the credentials in the documents have less
credibility than personal trust and confidence. This shows that the Saudi Arabian culture is a
high-context culture.
Answer: FALSE
47) If a potential Latin American customer insists on giving you a tour of the architectural
highlights of his city prior to discussing business, it's a clue that you are doing business in a high-
context culture.
Answer: TRUE
48) According to Hofstede, a cultural dimension which describes a society in which the social
roles of men and women overlap, with neither gender exhibiting overly ambitious or competitive
behavior is known as:
A) nurturing.
B) individualistic.
C) collectivistic.
D) power distance.
E) achievement.
Answer: A
Chapter LO: 4.3: Identify and briefly explain the major dimensions of Hofstede's social values
typology.
49) Which is not considered as a long-term value?
A) persistence
B) sense of shame
C) thrift
D) ordering relationships
E) search for truth
Answer: E
typology.
50) The power distance dimension reflects the degree of trust among members of society. Thus,
the higher the power distance (PDI), the:
A) greater is uncertainty avoidance.
B) lower is the level of trust.
C) higher is tolerance for ambiguity.
D) greater is male dominance.
E) lower is the harmony.
Answer: B
typology.
51) 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:
A) Future Orientation.
B) Uncertainty Avoidance.
C) Gender Differentiation.
D) Power Distance.
E) Individualism/Collectivism.
Answer: B
typology.
52) 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:
A) Power Distance.
B) Short-term Orientation.
C) Masculinity.
D) Uncertainty Avoidance.
E) Individualism.
Answer: D
typology.
53) According to Hofstede's research on cultural values, masculinity dimension describes a

society in which social roles of men and women overlap.
Answer: FALSE
typology.
54) What are some of the 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.
typology.
55) 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.
typology.
56) 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.
typology.
57) 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 United States). 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?
A) Maslow's hierarchy
B) high vs. low context culture
C) diffusion of innovation
D) self-reference criterion
E) polycentric orientation
Answer: D
Chapter LO: 4.4: Explain how the self-reference criterion can affect decision making at global
companies, and provide a step-by-step example of a company adapting to conditions in a global
market.
58) 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:
A) Disney executives believed there is virtually unlimited demand for American cultural exports.
B) French are sensitive about American cultural imperialism.
C) Consuming wine with the midday meal is a long-established custom which was not realized
by Disney executives.
D) Disney executives were blinded by their prior success and ethnocentrism.
E) The SRC can be a powerful negative force in global business.
Answer: D
market.
59) Which of the following best sums up the experience of Walt Disney Company executives
when creating Disney's theme park in Paris?
A) They were guided by the "think global, act local" principle.
B) They fell victim to the self-reference criterion.
C) They exhibited a geocentric management orientation.
D) They miscalculated the rate of diffusion of innovations in Europe.
E) They had an unbiased perception of existing culture in Europe.
Answer: B
market.
60) The lesson that SRC (Self-Reference Criterion) teaches can be summarized as:
A) a person's perception of market needs is framed by others cultural experience.
B) the perceptual blockage and distortion about cultures are hard to reduce.
C) an unbiased perception is a vital and critical skill in global marketing.
D) an unconscious reference to one's cultural values is critical in global marketing.
E) the prior success and ethnocentrism can override the SRC.
Answer: C
Difficulty: 1: Easy
market.
61) 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 own success in
Tokyo ensured the runaway success of their plans. Disney policies prohibit sale or consumption
of alcohol inside their 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 most likely a classical example of:
A) the "think global, act local" principle.
B) being victim to the self-reference criterion.
C) a geocentric management orientation.
D) miscalculation of the rate of diffusion of innovations in Europe.
E) an unbiased perception of existing culture in Europe.
Answer: B
market.
62) Long-term values include persistence (perseverance), defined as a general tenacity in the
pursuit of a goal.
Answer: TRUE
market.
63) Former Disney chairperson Michael Eisner and other company executives were blinded by
ethnocentrism and the self-reference criterion (SRC).
Answer: FALSE
market.
64) 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.
market.
65) One of the basic elements of sociologist Everett Rogers study on the diffusion theory is the
concept of an "adoption process." The first step in this adoption process is:
A) interest.
B) evaluation.
C) trial.
D) adoption.
E) awareness.
Answer: E
Difficulty: 1: Easy
Chapter LO: 4.5: Analyze the components of diffusion theory and its applicability to global
marketing.
66) Which of the following shows the correct order of the product adoption process?
A) evaluation → trial → awareness → interest → adoption
B) trial → interest → evaluation → awareness → adoption
C) interest → awareness → adoption → trial → evaluation
D) awareness → interest → evaluation → trial → adoption
E) adoption → evaluation → trial → interest → awareness
Answer: D
marketing.
67) Which of the following can negatively influence the rate of diffusion of an innovation?
A) substantial relative advantage
B) high compatibility
C) high complexity
D) divisibility
E) high level of communicability
Answer: C
marketing.
68) Airbnb has become a source of social glue and a new pattern of trust due to all of the
following factors, except:
A) perception that "strangers equal friends."
B) the company's logo represents universal belonging.
C) the letter "A."
D) a heart shape design in the logo.
E) a symbol for "pinning" a location.
Answer: A
marketing.
69) To speed adoption of a new product, a marketing team should:

A) ensure that features and benefits can be communicated or demonstrated.
B) design the maximum amount of complexity into the product.
C) discourage limited use on a "trial" basis.
D) attempt to make a clean break with existing customer values.
E) rely heavily on word-of-mouth marketing.
Answer: A
marketing.
70) New York's attorney general declared that most of Airbnb's listings in the Big Apple are
illegal.
Answer: TRUE
marketing.
71) A new digital cassette recorder from Philips was a market failure, in part because
advertisements did not clearly mention the fact that the product could make CD-quality
recordings using new cassette technology while still playing older, analog tapes. This is an
example of:
A) relative advantage.
B) communicability.
C) compatibility.
D) complexity.
E) divisibility.
Answer: B
marketing.
72) Together, innovators and early adopters make up about ________ of the potential market for
a new product.
A) 16 percent
B) 26 percent
C) 34 percent
D) 46 percent
E) 12 percent
Answer: A
marketing.
73) If a marketing manager plans to enter newly industrializing-countries (NICs) or other Asian
markets with a product that has proved to be successful in the home market, the product's
diffusion processes are likely to be:
A) negligible since consumers will take time to assess the relative advantage.
B) much slower than in the home market.
C) much faster than in the home market.
D) similar to that in the home market.
E) less compatible in the Asian market.
Answer: C
marketing.
74) An innovation can mean all of the following except:

A) something new.
B) when a product is newly introduced.
C) a product introduced for the first time.
D) any product newly introduced in the world.
E) a product already introduced in a target market.
Answer: D
marketing.
75) Adopter categories are classifications of individuals within a market, based on their
innovativeness. When Apple introduced the Apple watch people waited in long lines before the
doors opened. According to experts, those people can be categorized as:
A) early adopters.
B) innovators.
C) early majority.
D) late majority.
E) laggards.
Answer: B
marketing.
76) Which of the following is true about the innovation diffusion process in Asia?
A) Japan has a high-context culture with a relatively homogeneous population.
B) Because risk avoidance is a cultural value, there are fewer innovators in Asia than in the
United States.
C) Once innovators in Asia have tried a product, early adopters and the early majority quickly
follow suit.
D) After a new product has achieved success in one Asian market, it is likely to be adopted in
other Asian markets at an even faster rate.
E) All of the above are true.
Answer: E
marketing.
77) Comparing and contrasting the diffusion of innovations in Western countries and in Asia,
one can say that:
A) the process occurs in an identical manner in both regions.
B) in Asia, the adoption process begins more slowly but ramps up more rapidly than it does in
Western countries.
C) in Western countries, the adoption process begins more slowly but ramps up more rapidly
than it does in Asia.
D) the diffusion of innovation framework is applicable in the West but not in Asia.
E) the diffusion of innovation framework is applicable in Asia but not in the West.
Answer: B
marketing.
78) According to Roger's diffusion theory, most customers will not purchase expensive products
without the "hands-on" experience marketers call "trial."
Answer: TRUE
marketing.
79) One of the basic elements of Rogers 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 giving 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.
marketing.
80) 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 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.
marketing.
81) Which of the following shows the correct order from the highest to the lowest environmental
sensitivity level?
A) food → computers → integrated circuits
B) integrated circuits → food → computers
C) integrated circuits → computers → food
D) computers → food → integrated circuits
E) none of the above
Answer: A
Difficulty: 1: Easy
Chapter LO: 4.6: Explain the marketing implications of different social and cultural
environments around the globe
82) 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
B) lower; greater
C) greater; lower
D) lower; lower
E) stronger; greater
Answer: A
83) Which of the following is true about "coffee culture" in England?

A) Starbucks has been unsuccessful in its attempt to change the Brits' preference for tea.
B) American entrepreneurs found success in England with the Seattle Coffee Company which
Starbucks later acquired.
C) Starbucks succeeded in England only after changing the company's name to Seattle Coffee
Company.
D) Starbucks-style coffee shops have been a flop because tea culture is too deeply engrained.
E) Starbucks has been successful in England since it started selling beer.
Answer: B
84) Why does a pound of "aged" Sumatra beans cost $29.95, while "regular" Sumatra beans cost
only $12.95? Why is Starbucks using "regular" beans?
Answer: Starbucks is preparing to ride coffee's third wave with a new venture called Starbucks
Reserve and Starbucks Reserve Roastery and Tasting Room. Growth in mass-market coffee
consumption in the United States has been slowing, a sign that it is entering the mature phase of
the product life cycle. For several years, Starbucks had been selling limited quantities of seasonal
Reserve beans that were much more expensive than the company's regular offerings. A pound of
Aged Sumatra beans cost $29.95 while "regular" Sumatra costs $12.95. Known as "single-origin
coffees," the Reserve beans typically are sourced from small farms with limited production
capacity. Some produce as few as 60 bags of green coffee beans each year. To ensure a reliable
source of Reserve beans, Starbucks is cultivating relationships with small-scale farmers. The
company even bought Hacienda Alsacia, a coffee producer in Costa Rica.
marketing.
85) Coca-Cola billboards were recently put up near the Piazza San Marco in Venice, which has
numerous historical landmarks. The major reason for allowing the billboards at a prominent
historical site is:
A) Coke is a very popular drink in Italy.
B) to introduce an American product in an emerging market.
C) a severe lack of funds for historic renovation.
D) aesthetic reasons.
E) the prominence of global marketing.
Answer: C
86) A massive effort dubbed as "MOSE Project" is underway in Venice in order to:
A) promote passive tourism.
B) reduce the number of billboards on historic sites.
C) provide biblical information to tourists.
D) prevent flooding.
E) modernize accommodations.
Answer: D
87) Relative advantage refers to how a new product compares with existing products or methods
in the eyes of the competitors.
Answer: FALSE

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Global Marketing, 10e (Green/Keegan)

Chapter 4 Social and Cultural Environments

15) A vice-president of an American software company introduced himself to a group of Korean

32) In Korea 4 5683 968 can be interpreted as "I love you."

40) In high-context cultures, time is:

42) Lawyers are more important in:

44) Two countries that score low in uncertainty avoidance are:

53) According to Hofstede's research on cultural values, masculinity dimension describes a

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

74) An innovation can mean all of the following except:

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

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