Chapter 1 Introduction to Global Marketing
1) With rapid global market expansion, McDonald's identity as the quintessential
American fast-food restaurant is becoming blurred.
Answer: FALSE
Diff: 1 Page Ref: 3
AACSB: Reflective Thinking
Objective: 1
Question Type: Application
2) An organization that engages in global marketing focuses its resources and
competencies on global market opportunities and threats.
Answer: TRUE
Diff: 1 Page Ref: 4
AACSB: Reflective Thinking
Objective: 2
Question Type: Application
3) Starbucks is building on its loyalty card and rewards program in the United States with
a smartphone app that enables customers to pay for purchases electronically. This is an
example of Market Penetration.
Answer: TRUE
Diff: 2 Page Ref: 4
AACSB: Reflective Thinking
Objective: 2
,Question Type: Application
4) Starbucks is entering India via an alliance with the Tata Group. The next phase will
likely involve opening Starbucks outlets in Tata's upscale Taj Hotels in India. These are
examples of Market Penetration.
Answer: FALSE
Diff: 2 Page Ref: 4
AACSB: Analytic Skills
Objective: 2
Question Type: Critical thinking
5) The perceived value equation can be represented as Value = Price/Benefits.
Answer: FALSE
Diff: 1 Page Ref: 5
AACSB: Reflective Thinking
Objective: 2
Question Type: Definitional
,6) The transformation of formerly local or national industries into global ones is a part of
a broader economic process of globalization.
Answer: TRUE
Diff: 1 Page Ref: 6
AACSB: Reflective Thinking
Objective: 8
Question Type: Application
7) If Nestlé decides not to market biscuits (cookies) in the United States due to
competitive reasons, it is considered as a lack of strategic focus and missed opportunity.
Answer: FALSE
Diff: 2 Page Ref: 7
AACSB: Reflective Thinking
Objective: 2
Question Type: Definitional
8) Value, competitive advantage, and the focus required to achieve them are universal in
their relevance and should guide global marketing efforts in any part of the world.
Answer: TRUE
Diff: 2 Page Ref: 8
AACSB: Reflective Thinking
Objective: 2
Question Type: Definitional
9) The discipline of marketing is universal, and such marketing practices do not vary
from country to country.
Answer: FALSE
, Diff: 1 Page Ref: 8
AACSB: Reflective Thinking
Objective: 3
Question Type: Definitional
10) The way a company addresses recognition of the extent to which programs can be
expanded worldwide and adaptations required to do so is a reflection of its global
marketing strategy.
Answer: TRUE
Diff: 2 Page Ref: 8
AACSB: Reflective Thinking
Objective: 3
Question Type: Definitional
11) Nike dropped their well known tag line "Just do it" in advertising women's clothing
in Europe and replaced it by the slogan "Here I am" since college-age women in Europe
are not as competitive about sports as men are.
Answer: TRUE
Diff: 2 Page Ref: 10
AACSB: Analytic Skills
Objective: 3
Question Type: Critical thinking