Deck 4: Social and Cultural Environments

Question 1

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 1

B

Question 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 2

A

Question 3

An intern from the United Kingdom was working in an American software company during summers. One day 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 3

D

Question 4

The use of the color ________ dates back millennia as seen by artisans in ancient Egypt, China, and Mayan civilizations and is now associated with royalty and divinity.

A)red
B)green
C)blue
D)orange
E)brown

Question 5

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.

Question 6

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 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 some African countries.
E)Red color is tied to the traditions of viticulture and winemaking.

Question 7

Culture includes conscious and unconscious values, ideas, attitudes, and symbols that shape human behavior that are confined to a generation.

Question 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

Question 9

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.

Question 10

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."

Question 11

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.

Question 12

While marketers should be secure in their own convictions and traditions, ________ are required to appreciate the integrity and value of other ways of life and points of view.

A)standard of living and stage of economic development
B)production process and standards of measurement
C)open mind and absence of prejudice
D)degree of nationalism and economic community membership
E)fast food culture and slow food culture

Question 13

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.

Question 14

Historically, the lagoon in Venice provided Venetians with a safe haven from Germanic and Hun invaders.

Question 15

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.

Question 16

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.

Question 17

In China, Dell had to find a meaningful interpretation of "direct sales." A literal translation results in zhi xiao which is the Chinese term for "illegal pyramid marketing schemes." To counteract the negative connotation, Dell's sales representatives began using the phrase zhi xiao ding gou, which translates as:

A)direct orders.
B)direct marketing.
C)pyramid orders.
D)pyramid scheme.
E)direct shipping.

Question 18

One reason cultural factors challenge global marketers is that many of these factors are hidden from view.

Question 19

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.

Question 20

When marketers refer to "fast-food culture", or "credit-card culture" they are referring to a cosmopolitan culture which is comprised of various segments of the population which are interconnected.

Question 21

"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.

Question 22

Americans typically want to "go it alone." As a result, they may be outnumbered in a negotiation situation.

Question 23

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.

Question 24

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.

Question 25

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

Question 26

Music provides an interesting example of the "think globally, act locally" concept.

Question 27

In surveys about color preferences, 50 percent of respondents indicate white is their favorite-and it is favored by a wide margin over the next-preferred color, blue.

Question 28

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.

Question 29

White connotes purity and cleanliness in the West, but it is often associated with death, mourning, and funerals in China and other parts of Asia.

Question 30

In China, Dell had to find a meaningful interpretation of "direct sales," the phrase that describes the company's powerful business model.

Question 31

Music is an aesthetic component of all cultures and is accepted as a form of artistic expression and a source of entertainment.

Question 32

Although some food preferences remain deeply embedded in culture, plenty of evidence suggests that global dietary preferences are converging.

Question 33

Japanese strive to achieve cooperation, consensus, self-denial, and harmony. Because these all represent feelings about modes of conduct, they are beliefs.

Question 34

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.

Question 35

Colgate discovered that in Spanish colgate is a verb form that means "go hang yourself."

Question 36

Background music can be used effectively in broadcast commercials, however, the type of music appropriate for a commercial in one part of the world may be inappropriate in another part.

Question 37

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.

Question 38

Domino's Pizza had to pull out of Italy because Italians perceived its products to be "too American."

Question 39

Aesthetic elements that are attractive, appealing, and in good taste are perceived as decent and accepted universally.

Question 40

Cadbury has trademarked the color purple for its chocolate confectionary packaging.

Question 41

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.

Question 42

What are some of the salient characteristics and differences between high- and low-context cultures?

Question 43

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

Question 44

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.

Question 45

Insisting on competitive bidding can cause complications in:

A)low-context cultures
B)high-context cultures.
C)low and high context cultures.
D)Korean cultures.
E)Japanese cultures.

Question 46

High-context messages are explicit and specific; words carry most of the communication power.

Question 47

Two countries that score low in uncertainty avoidance are:

A)Austria and Belgium.
B)Japan and Hong Kong.
C)United States and Switzerland
D)Denmark and Finland.
E)Ireland and Italy.

Question 48

Which is not considered as a long-term value?

A)persistence
B)sense of shame
C)thrift
D)ordering relationships
E)search for truth

Question 49

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." 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.

Question 50

Lawyers are more important in:

A)low-context cultures.
B)high-context cultures.
C)Indian cultures.
D)Korean cultures.
E)Japanese cultures.

Question 51

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.

Question 52

Applying Hofstede's typology, show how Power Distance and Gender Differentiation can influence the marketing of products and services in different countries.

Question 53

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.

Question 54

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.

Question 55

In high-context cultures, time is:

A)monochronic.
B)polychronic.
C)linear.
D)short.
E)common.

Question 56

According to Hofstede's research on cultural values, masculinity dimension describes a society in which social roles of men and women overlap.

Question 57

Giving examples show how technology is providing interesting new opportunities for exploiting linguistics in the name of marketing.

Question 58

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

Question 59

A characteristic of a low-context culture which is prevalent in the United States, Switzerland, and Germany is that:

A)less information is contained in verbal communication.
B)major emphasis is on a person's values and position in society.
C)the messages are explicit and specific.
D)a person's word is his or her bond.
E)negotiations are long and protracted.

Question 60

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.

Question 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.

Question 62

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.

Question 63

Long-term values include persistence (perseverance), defined as a general tenacity in the pursuit of a goal.

Question 64

Former Disney chairman Michael Eisner and other company executives were blinded by ethnocentrism. Avoiding the Self-Reference Criterion (SRC)requires a person to suspend assumptions based on prior experience and success and be prepared to acquire new knowledge about human behavior and motivation.

Question 65

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.

Question 66

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.

Question 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

Question 68

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.

Question 69

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.

Question 70

The rate of adoption of the new Apple watch is slow, particularly in developing country markets with low rates of literacy. This can generally be attributed to which characteristics of innovation?

A)compatibility
B)relative advantage
C)divisibility
D)communicability
E)complexity

Question 71

In the 1990s, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette (DCC)player. DCC allowed users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. This latter feature reflects which of the following characteristics of innovations?

A)relative advantage
B)communicability
C)compatibility
D)complexity
E)divisibility

Question 72

One of the basic elements of sociologist Everett Roger's 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.

Question 73

A few years ago, Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette player. DCC did more than allow users to record and playback in a new digital format; DCC was also designed to play the older, analog cassette tapes that many people own. However, die-hard audio buffs were the only ones to buy DCC and Philips ultimately discontinued the product. Which of the following statements based on adopter categories describes this?

A)early adopters bought, but innovators didn't
B)innovators bought, but early adopters didn't
C)innovators bought, and everyone else was a laggard
D)early majority bought, but late majority didn't
E)DCC was a laggard

Question 74

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.

Question 75

The sales of the Apple watch increased when customers were informed about various functions of the watch. This change in sales reflects which of the following characteristics of innovation?

A)relative advantage
B)communicability
C)compatibility
D)complexity
E)divisibility

Question 76

If a marketing manager plans to enter newly industrializing-countries (NICs)or other Asia 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.

Question 77

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

Question 78

Adopter categories are classifications of individuals within a market on the basis of 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.

Question 79

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

Question 80

Together, innovators and early adopters make up about ________ of the potential market for a new product.

A)16%
B)26%
C)34%
D)46%
E)12%