(Test Bank all Chapters)
Global Marketing, 9e (Keegan)
Chapter 1 Introduction to Global Marketing
1) The best-selling smartphone in China is marketed by:
A) Samsung.
B) Xiaomi.
C) Apple.
D) Mitsubishi.
E) Android.
Answer: B
Difficulty: 2: Moderate
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 global markets, Starbucks is a good example of simultaneously executing all of the growth
strategies except:
A) Market penetration.
B) Market development.
C) Product development.
D) Market orientation.
E) Diversification.
Answer: D
Difficulty: 2: Moderate
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) Starbucks dropped the word "Coffee" from its logo. This is an example of:
A) Standardization.
B) Adaptation.
C) Diversification.
D) Automation.
E) Modernization.
Answer: C
Difficulty: 2: Moderate
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 © 2017 Pearson Education, Inc.
,4) McDonald's developed a vegetarian burger in India. This is an example of:
A) Market Penetration.
B) Market Development.
C) Market Diversification.
D) Product Development.
E) Global Marketing.
Answer: D
Difficulty: 2: Moderate
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) A fundamental difference between regular marketing and global marketing is the:
A) lack of marketing mix.
B) scope of activities.
C) lack of strategic planning.
D) focus on resources.
E) lack of communication.
Answer: B
Difficulty: 2: Moderate
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) Walmart exited from the German market due to the fact that Germans
A) could find lower prices at discount stores.
B) preferred shopping in larger malls.
C) did not care for American businesses.
D) preferred "all-in-one" store.
E) preferred only European businesses.
Answer: A
Difficulty: 2: Moderate
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 © 2017 Pearson Education, Inc.
,7) Starbucks entered India via an alliance with the Tata Group. They are sourcing coffee beans in
India and marketing them at Starbucks stores throughout the world. This is an example of:
A) Market Penetration.
B) Market Development.
C) Market Diversification.
D) Product Development.
E) Regular Marketing.
Answer: B
Difficulty: 2: Moderate
Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company
can expand globally.
AACSB: Application of knowledge
8) Four decades ago, the phrase global marketing did not exist.
Answer: TRUE
Difficulty: 1: Easy
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
Difficulty: 2: Moderate
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
Difficulty: 1: Easy
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 barista. This is an example of "market
development."
Answer: FALSE
Difficulty: 2: Moderate
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 © 2017 Pearson Education, Inc.
, 12) If Nestlé decides not to market biscuits (cookies) in the United States due to competitive
reasons, it is considered to be having a lack of strategic focus and missed opportunity.
Answer: FALSE
Difficulty: 2: Moderate
Chapter LO: 1.1: Use the product/market growth matrix to explain the various ways a company
can expand globally.
AACSB: Analytical thinking
13) What is "global marketing" and how does it differ from "regular marketing"? Giving
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.
Difficulty: 2: Moderate
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 as:
A) Value = Price/Benefits.
B) Value = Benefits/Price.
C) Value = Benefits × Price.
D) Value = Benefits - Price.
E) Value = Benefits + Price.
Answer: B
Difficulty: 3: Challenging
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Analytical thinking
15) The marketing mix is integral to the value equation which is represented by:
A) Value = Price/Benefits.
B) Value = Benefits/Price.
C) Value = Benefits × Price.
D) Value = Benefits - Price.
E) Value = Benefits + Price.
Answer: B
Difficulty: 3: Challenging
Chapter LO: 1.2: Describe how companies in global industries pursue competitive advantage.
AACSB: Analytical thinking
4
Copyright © 2017 Pearson Education, Inc.