Deck 4: Social and Cultural Environments

Question 1

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

Answer 1

True

Question 2

Venice is threatened by modern invaders since it is one of the top cruise destinations.

Answer 2

True

Question 3

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 3

True

Question 4

A number of authors,journalists,and food critics have chronicled a disturbing trend in the land of haute cuisine-the decline in France's status as a culinary superpower.

Question 5

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

Question 6

Music represents a "transculture" that cannot be identified with any particular nation since rhythm is a universal aspect of music.

Question 7

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

Question 8

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

Question 9

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

Question 10

A "value" is an organized pattern of knowledge that an individual holds to be true about the world.

Question 11

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

Question 12

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

Question 13

In order to convey the sense of the country of origin it is advisable to use the same background music in broadcast commercials in all parts of the world.

Question 14

"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 15

Venice is unique among the cities of the world and consists of more than 100 islands linked by a system of canals.

Question 16

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

Question 17

In China,authorities have the power to dictate which songs can be marketed and performed.

Question 18

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 19

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

Question 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.

Question 21

The cultural environment of a country is best defined by which characteristics?

A)standard of living and stage of economic development
B)production process and standards of measurement
C)attitudes,beliefs,and values
D)degree of nationalism and economic community membership
E)fast food culture and slow food culture

Question 22

A sense of shame leads to sensitivity in social contacts within high-performing Asian countries such as Hong Kong,Taiwan,and Japan.

Question 23

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

Question 24

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 25

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

Question 26

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 27

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 28

Competitive bidding is most likely to be infrequent in a low-context culture.

Question 29

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

Question 30

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 31

According to Roger's diffusion theory,most customers will not purchase expensive products without the "hands-on" experience marketers call "trial."

Question 32

American Nancy McKinstry recently became the new CEO at Dutch publisher Wolters Kluwer.As Ms.McKinstry noted,she had to drop the word "aggressive" in describing her strategic plan to company managers.She said,"I learned that the word has a negative connotation to a lot of Europeans.I was coming across too hard,too much of a results-driven American to the people.I needed to get on board so I started describing our strategy as 'decisive' and that made all the difference." Which of the following grammar topics is the critical element in this passage?

A)syntax
B)semantics
C)morphology
D)phonology
E)semiotics

Question 33

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

Question 34

The power distance dimension reflects the degree of trust among members of society.Thus,the higher the power distance (PDI),the higher the level of trust.

Question 35

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 36

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)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 37

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:

A)the popularity of Domino's Pizza in Italy.
B)the preference for local hamburgers from a local chain,Jollibee's,in the Philippines.
C)the growing number of McDonald's restaurants globally.
D)the increased sales of soups and noodles in Thailand.
E)popularity of Chinese foods in Taiwan.

Question 38

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

A)Red
B)Green
C)Blue
D)Orange
E)Brown

Question 39

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.

Question 40

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 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

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 43

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 44

In high-context cultures,time is:

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

Question 45

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 46

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 47

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 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

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 50

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 51

Long-term values include all of the following except:

A)dynamism.
B)persistence.
C)sense of shame.
D)thrift.
E)ordering relationships.

Question 52

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 53

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 54

Two countries that score high in uncertainty avoidance are:

A)Austria and Belgium.
B)Japan and Hong Kong.
C)Greece and Portugal.
D)Denmark and Finland.
E)Ireland and Italy.

Question 55

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 56

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 57

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

Question 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.

Question 59

Lawyers are more important in:

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

Question 60

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 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)the negotiations are long and protracted.

Question 61

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

A)16.0%
B)26.0%
C)34.0%
D)46.0%
E)13.5%

Question 62

Adopter categories are classifications of individuals within a market on the basis of their innovativeness.Recently Apple introduced the iPhone for which people waited in long lines before the doors opened.According to experts these 2.5% of people who bought the iPhone are categorized as:

A)early adopters.
B)innovators.
C)early majority.
D)late majority.
E)laggards.

Question 63

If a marketing manager plans to enter the 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 64

Despite the fact that the American team advanced to the semi-finals in South Africa,the game is much more popular in other parts of the world.There is an effort to make soccer popular in the United States,and many fashion brands are interesting in marketing their products which pertain to soccer and other sports.Considering this aspect which of the following statements is incorrect?

A)In the United States,2010 World Cup merchandise such as T-shirts was available at Walmart.
B)FIFA is the only global marketer seeking revenue growth by boosting soccer's popularity in America.
C)Yves Saint Laurent designer was selling merchandise with soccer related embossed emblems.
D)The fall 2010 collection of designer clothes included "FIFA Heritage Tees" with logos on shirts.
E)FIFA has chosen Total Apparel Group (TAG)to boost soccer's visibility and popularity among Americans.

Question 65

That floppy disks are being dumped in favor of USB mass storage devices can be attributed to which characteristics of innovation?

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

Question 66

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

Question 67

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 68

Which of the following is arranged starting with the highest level of environmental sensitivity and ending with the lowest 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

Question 69

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 70

A massive effort dubbed as "Moses 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.

Question 71

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 72

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 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

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.

Question 75

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 success in Tokyo Disneyland ensures the runaway success of their plans.Disney policies prohibit sale or consumption of alcohol inside the 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 76

To speed adoption of a new product,the 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 77

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)severe lack of funds for historic renovation.
D)aesthetic.
E)global marketing.

Question 78

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.

Question 79

In the 1990s,Philips Electronics developed a new consumer electronics product called the Digital Compact Cassette 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 80

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)perceptual blockage and distortion about cultures are hard to reduce.
C)unbiased perception is a vital and critical skill in global marketing.
D)unconscious reference to one's cultural values is critical in global marketing.
E)prior success and ethnocentrism can override the SRC.