Chapter 10 Multiple Choice Questions | Global Strategic Management by Philippe Lasserre

1. What is the “Californization” of markets?

Apple, HP and Google dominate the new technologies Movies from Hollywood studios have a dominant share of the film industry Consumers across the world want to imitate the ‘rich and famous’ Consumers across the world tend to share the same taste

2. Why is the aircraft industry ‘globally standardized’?

Because travelers fly around the world Because the minimum economic size of production is high and consumer segments are similar across the world Because the industry is concentrated into a small number of manufacturers Because aircraft manufacturing is not considered as ‘strategic’ by governments

3. What is the difference between ‘pure global brands’ and ‘product adaptive global brands’ (choose both that apply)?

Address similar consumer needs worldwide Pure global brands are advertised globally while product adaptive global brands are advertised locally Both use names that are easy to pronounce in all languages The products of pure global brands are standardized globally while products adaptive global brands are adapted locally

4. What is the ‘waterfall’ model of product launching?

Products are launched everywhere at the same time Products are tested before being launched Several products are launched at the same time Products are launched first in one country or region and then later launched progressively in other countries

5. When is global pricing most appropriate (choose all that apply)?

The product or service is targeted at customers that have similar value curves The product or service is sold under a strong ‘global brand’ There are strong possibilities for arbitrage The product or service has standardized functionalities, qualities and features

6. What are the changes in global advertising induced by the Internet (choose all three that apply)?

No real changes: global campaigns are still global Global campaigns need to be easily adaptable to local characteristics and cultures Data-mining capabilities enable Internet search engines such as Google to target advertisements at specific consumers Brands can be advertised on many on-line media using banners, social networks and web videos, giving the ability to combine global and local campaigns

7. Which of these factors are common criticisms of ‘global account management’ (choose both that apply)?

Local customers do not like it because they want their autonomy It is a theoretical concept invented by academics and consultants The reward system is only based on country performance It gives too much power to origin country headquarters

8. ‘Solution selling’ implies that (choose both that apply):

The global company has the ability to mobilize resources across the world The local subsidiaries want to promote their own solutions The final price has to be competitive One cannot offer a standard global solution

9. In ‘global usage/local product’ positioning:

The product is global, all the other elements are localized The product is localized, all the other elements are standardized The product, the price and the brand are localized, all the other elements are standardized All elements of the marketing mix are localized

10. Which of the following defines ‘fair trade marketing’?

A method of fixing low prices to reach the poorest consumers A way to respect the environment by reducing packaging The marketing of products from small-sized enterprises in developing countries A marketing practice that takes into account the cultures of countries

Chapter 10: Global Marketing