Copyright 2017 Pearson Education, Inc.

1 Copyright © 2017 Pearson Education, Inc.Global Marketing, 9e (Keegan) Chapter 1 Introduction to Global Marketing

1) The best-selling smartphone in China is marketed by:

• Samsung.
• Xiaomi.
• Apple.
• Mitsubishi.
• Android.

Answer: B

Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Application of knowledge

2) In global markets, Starbucks is a good example of simultaneously executing all of the growth

strategies except:

• Market penetration.
• Market development.
• Product development.
• Market orientation.
• Diversification.

Answer: D

Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Application of knowledge

3) Starbucks dropped the word "Coffee" from its logo. This is an example of:

• Standardization.
• Adaptation.
• Diversification.
• Automation.
• Modernization.

Answer: C

Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Application of knowledge

(Global Marketing 9e Warren Keegan, Mark Green) (Test Bank all Chapters) 1 / 4

2 Copyright © 2017 Pearson Education, Inc.

4) McDonald's developed a vegetarian burger in India. This is an example of:

• Market Penetration.
• Market Development.
• Market Diversification.
• Product Development.
• Global Marketing.

Answer: D

Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Application of knowledge

5) A fundamental difference between regular marketing and global marketing is the:

• lack of marketing mix.
• scope of activities.
• lack of strategic planning.
• focus on resources.
• lack of communication.

Answer: B

Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Application of knowledge

6) Walmart exited from the German market due to the fact that Germans

• could find lower prices at discount stores.
• preferred shopping in larger malls.
• did not care for American businesses.
• preferred "all-in-one" store.
• preferred only European businesses.

Answer: A

Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Application of knowledge

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3 Copyright © 2017 Pearson Education, Inc.7) Starbucks entered India via an alliance with the Tata Group. They are sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. This is an example of:

• Market Penetration.
• Market Development.
• Market Diversification.
• Product Development.
• Regular Marketing.

Answer: B

Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Application of knowledge

8) Four decades ago, the phrase global marketing did not exist.

Answer: TRUE

Difficulty: 1: Easy Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Application of knowledge

9) A critical reason why companies need to take global marketing seriously is survival.

Answer: TRUE

Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Application of knowledge

10) A fundamental difference between regular marketing and global marketing is the scope of activities.

Answer: TRUE

Difficulty: 1: Easy Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Application of knowledge

11) Starbucks offers a loyalty card and rewards program in the United States with an app that displays a bar code that can be scanned by the barista. This is an example of "market development."

Answer: FALSE

Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Analytical thinking

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4 Copyright © 2017 Pearson Education, Inc.12) If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered to be having a lack of strategic focus and missed opportunity.

Answer: FALSE

Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Analytical thinking

13) What is "global marketing" and how does it differ from "regular marketing"? Giving examples of at least one major corporation that explains these differences.Answer: Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers. An organization that engages in global marketing focuses its resources and competencies on global market opportunities and threats. A fundamental difference between "regular marketing" and "global marketing" is the scope of activities. A company that engages in global marketing conducts important business activities outside the home-country market. For example, as Walmart expands into Guatemala and other Central America countries, it is implementing a market development strategy.Difficulty: 2: Moderate Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company can expand globally.

AACSB: Application of knowledge

14) The essence of marketing worldwide is to surpass the competition in creating perceived

value, which can be represented as:

• Value = Price/Benefits.
• Value = Benefits/Price.
• Value = Benefits × Price.
• Value = Benefits - Price.
• Value = Benefits + Price.

Answer: B

Difficulty: 3: Challenging Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.

AACSB: Analytical thinking

15) The marketing mix is integral to the value equation which is represented by:

• Value = Price/Benefits.
• Value = Benefits/Price.
• Value = Benefits × Price.
• Value = Benefits - Price.
• Value = Benefits + Price.

Answer: B

Difficulty: 3: Challenging Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.

AACSB: Analytical thinking

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