Global Marketing, 11th edition Green
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,Test Bank for Global Marketing
Revised by Susan Schanne
Global Marketing
Eleventh Edition
Mark C. Green
Warren J. Keegan
,Global Marketing, 11e (Green/Keegan)
Chapter 1 Introduction to Global Marketing
1) What is the goal of a firm that pursues a global market development strategy?
A) Creating new product offerings in a new country
B) Seeking new customers in a geographical market
C) Creating new niche markets in each country they serve
D) Creating new products for a new country
Answer: B
Diff: 2
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 which way does Starbucks exemplify the implementation of growth strategies in its global
markets when the company offers drinks to non-coffee drinkers and introduces new flavors?
A) Market development
B) Diversification
C) Market penetration
D) Product development
Answer: D
Diff: 2
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) Why did Starbucks drop the word "coffee" from its logo after acquiring Evolution Fresh and
Teavana Holdings?
A) To indicate standardization
B) To indicate adaptation
C) To indicate diversification
D) To indicate automation
Answer: C
Diff: 2
Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company
can expand globally.
AACSB: Application of knowledge
1
Copyright © 2026 Pearson Education, Inc.
,4) How could McDonald's use product development to expand into India?
A) Offer meals and drinks in multiple sizes.
B) Offer a loyalty program for frequent diners.
C) Increase the number of outlets.
D) Offer a vegetarian burger.
Answer: D
Diff: 2
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) Which of the following is a fundamental difference between regular marketing and global
marketing?
A) The lack of marketing mix
B) The scope of activities
C) The lack of strategic planning
D) The focus on resources
Answer: B
Diff: 2
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) When a company wants to expand into new markets with existing products, which growth
strategy should they use?
A) Market development
B) Product development
C) Diversification
D) Market penetration
Answer: A
Diff: 2
Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company
can expand globally.
AACSB: Application of knowledge
7) Companies doing business in global markets must take extra care to protect knockoffs.
Answer: TRUE
Diff: 1
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
Copyright © 2026 Pearson Education, Inc.
,8) Four decades ago, the phrase global marketing did not exist.
Answer: TRUE
Diff: 1
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
Diff: 2
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
Diff: 1
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 customer. This is an example of market
development.
Answer: FALSE
Diff: 2
Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company
can expand globally.
AACSB: Analytical thinking
12) If Nestlé decides not to market biscuits (cookies) in the United States due to competitive
reasons, it is considered to have a lack of strategic focus and missed opportunity.
Answer: FALSE
Diff: 2
Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company
can expand globally.
AACSB: Analytical thinking
3
Copyright © 2026 Pearson Education, Inc.
,13) What is "global marketing" and how does it differ from "regular marketing"? Give 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.
Diff: 2
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 by which formula?
A) Value = Price/Benefits
B) Value = Benefits/Price
C) Value = Benefits × Price
D) Value = Benefits - Price
Answer: B
Diff: 3
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Analytical thinking
15) How are the sets of activities and processes, along with product design, manufacturing, and
transportation, described?
A) As the firm's competitive advantage
B) As the firm's value chain
C) As the firm's marketing strategy
D) As the firm's value equation
Answer: B
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
16) How do firms create competitive advantage in an industry?
A) By keeping costs low while improving the product itself
B) By targeting people who are willing and able to buy
C) By creating more value for customers than competitors do
D) By transforming national industries into global ones
Answer: C
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
4
Copyright © 2026 Pearson Education, Inc.
,17) Why is the marketing mix integral to the value equation?
A) Benefits include the product, promotion, and distribution.
B) Benefits establish the ability to surpass competition.
C) Benefits have to be significant if the firm is to go global.
D) Benefits determine the marketing strategy for a brand.
Answer: A
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
18) Which of the following would allow a company to use price as a competitive weapon and
offer lower prices than competitors?
A) A niche market is rapidly expanding.
B) There are very few competitors in the market.
C) People in the market are willing and able to buy.
D) Economies of scale are achieved.
Answer: D
Diff: 3
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
19) What is required of managers to achieve competitive advantage in a global industry?
A) A well-defined strategic focus
B) Alliances between suppliers and manufacturers
C) Producing the best value at the lowest price possible
D) The establishment of a value chain
Answer: A
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
20) Starbucks entered India via an alliance with the Tata Group. This is an example of "market
penetration."
Answer: FALSE
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Analytical thinking
21) An industry is global to the extent that a company's industry position in one country is
interdependent with its industry position in other countries.
Answer: TRUE
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Analytical thinking
5
Copyright © 2026 Pearson Education, Inc.
,22) The essence of marketing is to surpass the competition at the task of creating perceived
value.
Answer: TRUE
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
23) The value equation is represented as Value = Price/Benefits.
Answer: FALSE
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
24) One way to determine the value of globalization is to calculate the ratio of the annual value
of global trade in the sector to the annual value of industry sales.
Answer: FALSE
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Analytical thinking
25) Nonmonetary costs do not factor into the equation of value, which is represented by the
equation Value = Benefits/Price.
Answer: FALSE
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
26) Global marketing requires attention to value, competitive advantage, and focus on a
worldwide basis and utilization of a business intelligence system capable of monitoring the globe
for opportunities and threats.
Answer: TRUE
Diff: 1
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
27) When a company succeeds in creating more value for customers than its competitors do, that
company is said to enjoy competitive advantage.
Answer: TRUE
Diff: 3
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
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Copyright © 2026 Pearson Education, Inc.
, 28) The transformation of formerly local or national industries into global ones is part of a
broader economic process of globalization.
Answer: TRUE
Diff: 3
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
29) Studies show that the gains ascribed to globalization have been evenly distributed among
developing nations.
Answer: FALSE
Diff: 3
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
30) Why do some of the world's biggest, most successful companies stumble while pursuing
global opportunities? Give examples in support of your answer.
Answer: Store locations, pricing, customer preferences, convenience, and unfamiliarity can
cause successful companies to fail or not perform well in global markets. Walmart's exit from the
German market was due to the fact that German shoppers could find lower prices at "hard
discounters" such as Aldi's and Lidl. UK-based Tesco's attempts to enter the U.S. market with its
Fresh & Easy stores failed, in part, because U.S. consumers were unfamiliar with the private-
label goods that made up much of the merchandise stock. American "cheap chic" retailer Target
terminated in Canada due to missteps in store location and pricing.
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
31) Explain, with examples, the benefits of competitive advantage and show how globalization
presents companies with unprecedented opportunities.
Answer: When a company succeeds in creating more value for customers than its competitors,
that company is said to enjoy "competitive advantage." It is measured relative to rivals in a given
industry. For example, Coca-Cola and Pepsi are trying to maintain a competitive advantage in
global markets. Globalization presents companies with unprecedented opportunities as well as
challenges. Achieving competitive advantage in a global industry requires executives and
managers to maintain a well-defined strategic focus. Globalization provides companies with
opportunities to develop new products, get new ideas, develop markets, expand brand
recognition, and eventually profits.
Diff: 2
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Application of knowledge
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Copyright © 2026 Pearson Education, Inc.