Deck 19: Global Marketing and the Internet

Question 1

ISP is an acronym for:

A) Internet strategies provider.
B) Internet standards provider.
C) Internet service provider.
D) Internet system provider.
E) none of the above.

Answer 1

C

Question 2

In 2005, the worldwide Internet population surpassed 1 billion.

A) 1 billion
B) 2 billion
C) 3 billion
D) 4 billion
E) 5 billion

Answer 2

A

Question 3

In many European markets, consumers are reluctant to surf the Web because of:

A) high telecommunication charges.
B) low per capita income.
C) government rules and regulations.
D) distribution costs.
E) limited training and education.

Answer 3

A

Question 4

In many countries, businesspeople prefer to do business on a________________.

A) virtual basis.
B) simple basis.
C) complex basis.
D) face-to-face basis.
E) none of the above.

Question 5

Although the Internet has become a global phenomenon, it first originated in (the):

A) Italy.
B) Japan.
C) U.S.A.
D) Belgium.
E) Singapore.

Question 6

The majority of the Internet users now live outside of ________________ speaking countries.

A) English
B) French
C) Arabic
D) German
E) Spanish

Question 7

The country with the highest penetration rate of Internet users is:

A) United States
B) Japan
C) South Korea
D) United Kingdom
E) Canada

Question 8

In global e-commerce, Web site localization services have created the need for more:

A) translators.
B) copy writers.
C) media specialists.
D) network specialists.
E) knowledge experts.

Question 9

The structural barriers to global e-commerce include the following EXCEPT:

A) language barriers.
B) cultural barriers.
C) infrastructure.
D) knowledge barriers.
E) roaming charges.

Question 10

The barriers to global e-commerce are:

A) language barriers.
B) cultural barriers.
C) infrastructure.
D) all of the above.
E) none of the above.

Question 11

In the Asia-Pacific region, B2B e-commerce activities are facing obstacles which could hinder the growth of the Internet. These obstacles include:

A) doing business on a face-to-face basis.
B) cultivating relationships and secrecy issues.
C) reluctance to share information.
D) all of the above are obstacles.
E) none of the above are obstacles.

Question 12

Which of these languages is NOT in the top three on Internet sites?

A) Hindu
B) Chinese
C) Spanish
D) German
E) Both a and d

Question 13

E-readiness for Brazil, India, Russia and China is:

A) unknown-they won't answer the surveys.
B) excellent-their relative backwardness lets them jump ahead with the latest technology.
C) middle of the pack because their economies are growing rapidly.
D) very low.
E) none of the above

Question 14

Companies that wish to make their Web sites international by translating the information and content into other languages have two alternatives that may include:

A) hire a firm or a person doing the translation.
B) use a software having the translation function.
C) use only English.
D) both a and b
E) both b and c

Question 15

Using only English on a website:

A) is doomed to fail.
B) is ethnocentric.
C) works in some industries like aerospace.
D) limits your market.
E) both c and d

Question 16

The country with the most Internet users is:

A) United States
B) Japan
C) India
D) China
E) none of the above

Question 17

According to this textbook, compared to the U.S., Europe as a future Internet market will be:

A) better, because virtual retailers have a competitive advantage over traditional stores.
B) worse because there are so many languages.
C) better because delivery is faster.
D) worse because Europe has less well developed Internet infrastructure.
E) both A and C

Question 18

Which of the following is NOT a barrier to Internet marketing?

A) language
B) culture
C) infrastructure
D) access charges
E) none of the above

Question 19

According to the text, the Web clearly provides a unique _______________ and ______________ channel to marketers across the globe.

A) distribution, higher education
B) distribution, production
C) distribution, network
D) distribution, communication
E) none of the above

Question 20

Which of these would NOT be a barrier to Internet marketing?

A) preference for face-to-face business transactions
B) lack of familiarity with credit cards
C) strict Internet security measures
D) website wording, logos, and colors
E) patriotism

Question 21

For global marketers, the Web could affect the firm's high margins because of:

A) profit transparency.
B) channel transparency.
C) price transparency.
D) channel captaincy.
E) knowledge transparency.

Question 22

In some countries, customers might resent having the human element removed from the service encounter because of:

A) cultural factors.
B) national factors.
C) technology factors.
D) consumption factors.
E) international factors.

Question 23

In Japan, access to the web was previously dominated by ______________________, the Japanese telecom firm, which charges sky-high fees.

A) British Telecom.
B) Toyota.
C) Nippon Telephone & Telegraph (NTT).
D) Seven-Eleven Japan.
E) AT&T.

Question 24

Because of the Internet, many MNCs' pricing decisions are less _____________.

A) national
B) flexible
C) creative
D) rigid
E) vertical

Question 25

At the core of any global Web marketing strategy is the conflict between local responsiveness and _______________________.

A) local integration
B) regional integration
C) transnational integration
D) polycentric integration
E) global integration .

Question 26

In the Internet world, there are many unsolved issues. For example, e-commerce is global but the national laws are mostly ________________.

A) local
B) regional
C) political
D) religious
E) secular

Question 27

In the area of global marketing, the Internet offers two major benefits to companies that may be interested in selling their products worldwide. The two benefits include:

A) cost/efficiency savings and accessibility (connectivity).
B) cost/efficiency savings and brand image.
C) cost/efficiency savings and product standardization.
D) cost/efficiency savings and high quality intelligence.
E) cost/efficiency savings and product image.

Question 28

In international distribution, replacement effect can:

A) cannibalize existing distribution channels.
B) delete existing distribution channels.
C) replace existing distribution channels.
D) downsize existing distribution channels.
E) add more distribution channels

Question 29

In the area of pricing, the Internet facilitates:

A) work transparency.
B) price transparency.
C) profit transparency.
D) channel transparency.
E) none of the above is true.

Question 30

In the product policy area, the Internet can help build:

A) regional brands.
B) food brands only.
C) global brands.
D) high-tech brands.
E) tangible brands. .

Question 31

India Yahoo! is different from normal portals because is has:

A) no online auctions.
B) astrology.
C) no online shopping.
D) real estate.
E) cricket.

Question 32

In international marketing, a Web site gives service marketers the ability to offer _________ hour service to customers worldwide.

A) 10
B) 15
C) 20
D) 22
E) 24

Question 33

In many industries, connectivity means that existing channels/distributors can be bypassed by connecting:

A) buyers and suppliers.
B) buyers and governments.
C) buyers and software companies.
D) buyers and advertisers.
E) buyers and media companies.

Question 34

In many countries, the cost of going online can be reduced by:

A) government deregulations.
B) increased competition.
C) new access alternatives.
D) all of the above.
E) none of the above.

Question 35

According to the text, regarding the profile of Internet buyers, differences across countries are mainly due to two factors which are:

A) access charges and availability of computer programmers.
B) access charges and availability of outsourcing.
C) access charges and availability of entertainment options.
D) access charges and availability of CNN.
E) access charges and availability of AOL. .

Question 36

At the global level, a new nongovernmental body has been established to resolve domain disputes. The name of this body is:

A) Internet Corporation for Domain Names (ICDN).
B) Internet Corporation for Assigned Names (ICAN).
C) Internet Corporation for Assigned Names and Numbers (ICANN).
D) Internet Corporation for Networks (ICN).
E) Internet Corporation for Domain Disputes (ICDD).

Question 37

Manufacturers who plan to add the Internet to their existing international channels should be aware of two possibilities:

A) replacement effect and international effect.
B) replacement effect and complementary effect.
C) complementary effect and managerial effect.
D) complementary effect and adaptation effect.
E) replacement effect and quality effect.

Question 38

In Internet marketing, consumers often are aware of low prices because of the availability of brand and pricing information. This is a result of:

A) profit transparency.
B) knowledge transparency.
C) labor transparency.
D) profit transparency.
E) price transparency.

Question 39

Marketing of services differs from tangible goods in four areas:

A) intangibility, simultaneity, heterogeneity, and perishability.
B) intangibility, simultaneity, heterogeneity, and collectivity.
C) intangibility, simultaneity, heterogeneity, and connectivity.
D) intangibility, simultaneity, heterogeneity, and believability.
E) intangibility, simultaneity, heterogeneity, and credibility.

Question 40

To deal with price transparency issues in Internet marketing, companies can use methods such as:

A) cutting prices in high-price countries.
B) localizing the products.
C) refusal to handle orders from overseas.
D) All of the above methods can be used.
E) None of the above methods are used.

Question 41

In Internet advertising, by clicking on the banner ad, users can be taken to the:

A) internet's databank.
B) advertiser's web site.
C) Netscape's site.
D) Yahoo's site.
E) none of the above.

Question 42

International marketers who plan on using the Web as an advertising tool should familiarize themselves with:

A) advertising regulations and restrictions in foreign markets.
B) search engines.
C) distribution channels.
D) digital networks.
E) digital suppliers.

Question 43

Click-and-mortar retailers are defined as:

A) those large retail chains trying to compete by pursuing no Web site presence.
B) those large retail chains trying to compete by making alliances and joint ventures.
C) those large retail chains trying to compete by going international.
D) those large retail chains trying to compete by hiring Web specialists.
E) those large retail chains trying to compete by setting up a Web site presence.

Question 44

The Internet offers advantages to international advertisers which include:

A) global reach.
B) interactivity.
C) precise information
D) all of the above.
E) none of the above.

Question 45

In international marketing, many well-known brands in pure web retailing (e-trade, Amazon.com) still have limited ________________________ expertise.

A) local
B) international
C) regional
D) economic
E) political

Question 46

ISP is an acronym for Internet Standards Provider.

Question 47

Keyword search advertising allows the company to have a link to its Web site when people are looking for ________________________ -related information.

A) people
B) market
C) product
D) country
E) none of the above

Question 48

Click-and-mortar chains provide one advantage where:

A) products cannot be returned to the local stores.
B) products can be returned to the local stores.
C) click-and mortar stores have no Web sites.
D) All of the above.
E) None of the above.

Question 49

In Internet advertising, microsites are created to promote ____________________ brands.

A) hybrid
B) individual
C) complex
D) global
E) none of the above

Question 50

The ultimate success of an online campaign hinges on four factors which include:

A) nature of the product, the target, choice of site, and color
B) nature of the product, the target, choice of site, and graphics
C) nature of the product, the target, choice of site, and banners
D) nature of the product, the target, choice of site, and execution of the ad
E) none of the above

Question 51

Small and medium-size companies (SMEs) are also participating in the area of e-commerce and Internet-related opportunities.

Question 52

In international distribution, complementary effect can:

A) expand the overall business.
B) cannibalize existing distribution channels.
C) materialize the overall business.
D) downsize existing distribution channels.
E) none of the above.

Question 53

Knowledge barrier is not one of the barriers in Internet-related activities.

Question 54

In many European markets, consumers are reluctant to spend time surfing the Web
because of higher telecommunication charges.

Question 55

Online campaigns would work for __________________________________.

A) high involvement goods.
B) low involvement goods.
C) vertical involvement goods
D) horizontal involvement goods
E) none o the above

Question 56

According to the text, the ultimate success of an online campaign depends on the following factors EXCEPT:

A) the nature of the product.
B) the targeting.
C) choice of the site.
D) execution of the ad.
E) hiring an efficient CEO.

Question 57

According to Jupiter Research, online advertising spending is expected to grow to around ____________ in the U.S. by 2009.

A) $10 billion
B) $16 billion
C) $20 billion
D) $30 billion
E) $35 billion

Question 58

Success of an e-tailing model will depend on three factors which include:

A) consumer behavior, cost structure, and networks.
B) consumer behavior, cost structure, and government policies.
C) consumer behavior, cost structure, and logistics.
D) consumer behavior, cost structure, and human resources.
E) consumer behavior, cost structure, and manufacturing.

Question 59

Internet usage worldwide is not growing.

Question 60

Although Internet advertising is growing at a very rapid pace, many advertisers are skeptical about its potential as a global promotion tool because of (the):

A) annoyance factor.
B) audience measurement.
C) click-thru rates.
D) high access and/or phone charges
E) all of the above. .

Question 61

Online campaigns would work for high-involvement goods whose buyers engage in
product research and price comparisons.

Question 62

Banner advertising is not used in Internet advertising.

Question 63

The Internet is not helping companies to create global brands.

Question 64

Mass customization is not the major plus of the Web.

Question 65

There are many unsolved issues in the Internet. For example, e-commerce is global
but the national laws are mostly transnational.

Question 66

It is estimated that most of the Internet advertising spending will be spent in Japan.

Question 67

Discuss some of the ramifications of the Internet for global marketing strategies. Also explain some of the challenges faced by international marketers in the areas of global branding and Internet-based new products.

Question 68

In international distribution, replacement effect does not cannibalize existing distribution channels.

Question 69

The Internet has leveled the playing field between large and small firms in global
competition.

Question 70

Web sites enable companies to manage perishability.

Question 71

Consumer co-creation involves customers in value creation.

Question 72

In many industries, connectivity means that existing channels can be bypassed by
connecting buyers and suppliers directly.

Question 73

Keyword search advertising allows the company to have a link to its competitors.

Question 74

Microsites are used to promote a particular brand.

Question 75

Describe briefly the history of the Internet. Which nations are becoming prominent among Internet users? How does their growth compare with the Internet readiness shown in Exhibit 19-2?

Question 76

Google is the #1 search engine throughout the world.

Question 77

For global marketers, the Web could affect the firm's high margins because of price transparency.

Question 78

Asians have the most favorable attitude toward Internet shopping.

Question 79

Although global e-commerce is expected to increase, it has encountered obstacles and structural barriers. Discuss these structural barriers.

Question 80

In international marketing, a Web site gives service marketers the ability to offer 24 hour service to customers worldwide.