Midterm exam

Question 1

International Marketing

Answer 1

The individual market is served with specific tailored products especially adjusted to the customers in that market. eg. Lays: Chips super spicy for Thailand.

Question 2

Global Marketing

Answer 2

The same product distributed worldwide.

eg. Coca Cola classic is identical in every country and also the price.

Question 3

Glocalization

Answer 3

The same product distributed worldwide but adjusting the good accoording to the country. eg. Big Mac in India (no meat).

Question 4

Outsourcing

Answer 4

Contracting work out to an external company.

Question 5

Offshoring

Answer 5

Accessing products/ services in a different country.

Question 6

Tariffs

Answer 6

These are taxes that are imposed by the government on the goods imported from a different country.

Question 7

Quotas

Answer 7

It is a specific unit limit applied to a particular type of good. And it is to protect local product.

Question 8

Standards

Answer 8

Regulations to protect health, safety, product quality. And it can be used to restrict trade.

Question 9

Boycotts

Answer 9

Restriction against the purchase and importation of certain good or service from other countries by government or local customers.

Question 10

Cultural models

Independent

Answer 10

• Emphasis on individual action.
• Individuals see themselves as distinct from their groups.
• Preference for egalitarianism and achieved status.
• Rules of proper behavior should be universal. (universalism)

Question 11

Cultural models

Interdependent

Answer 11

• Emphasis on collective action.
• Individuals want to blend harmoniously with their reference groups.
• Acceptance of hierarchy and ascribed status.
• Rules of proper behavior differ from one situation to another. (particularism)

Question 12

Hofstede’s cultural dimensions

Power distance

Answer 12

the degree to which the less powerful members of a society accept annd expect that power is distributed unequally.

Low: people expect an equality distribution, but it is not so, people demand for justifications.

High: Power is distributed unequality in society. Everyone has a assigned place in the social hierarchy.

Question 13

Individualism vs Collectivism

Answer 13

The degree of interdependency a society mantains among its members.

Individualism: people are supposed to look after themselves and their direct family only.

Collectivism: people belong to “in group” that take care of them in exchange for loyalty.

Question 14

Masculinity vs Feminity

Answer 14

Masculinity: stands for preference in a society for achievement, heroism, assertiveness, and material rewards for success.

Feminity: stands for a preference for a cooperation, modesty, caring for the weak and quality of life.

Question 15

Uncertainty avoidance

Answer 15

The degree to which the members of a society feel uncomfortable with uncertainty and ambiguity.

Strong: Low tolerance for uncertainty. Desire to control the future. Higher trust in experts.

Low: Higher tolerance for uncertainty. Attitude toward the future is to just let things happen.

Question 16

Edward T. Hall, Beyond Culture

High Context

Answer 16

A high context culture relies on implicit communication.
A message cannot be understood without a great deal of background information.
The rules of communication are primarily transmitted through the use of contextual elements. (i.e. body language,..)

-> Restricted code: very little verbal development and detail.

Question 17

Pro and Con of High context system

Answer 17

Pro:
❏ They tend to be more intimate and comfortable (for insiders).
❏ They enable greater efficiency of communication.

Cons:
❏ They have difficulty including people from diverse backgrounds.
❏ Outsiders might easily misunderstand and misinterpret them.

Question 18

Edward T. Hall, Beyond Culture

Low Context

Answer 18

relies on explicit communication.
-more of the info in a message is spelled out and defined.

Elaborated code: most of the necessary info is expressed in verbal form.

Question 19

Pro and cons of a Low context system

Answer 19

Pro:
❏ They tolerate a wider variety of participants from diverse backgrounds.
❏ Low-context communicators tell you what they mean directly.

Con:
❏ As they increase in size, they become difficult to manage.
❏ They ignore personal and social circumstances that could be relevant and important.

Question 20

Organizational & National Culture

Answer 20

❏ culture: About people in groups.
❏ national culture: “values”, normative, the way things “should be”.
❏ organizational culture: “practices”, descriptive, the way things “are”.
-> sometimes called “corporate” culture.
-> how an organization and its people train everyone to behave and think in certain ways: organization’s common practices.
-> organizational culture might weaken or erase the influence of outside societal cultures.

Question 21

Hofstede’s dimensions of organizational culture

Means-oriented vs goal-oriented

Answer 21

Means-oriented: Emphasis on the process and routines of work, workers avoid risks and do not make many efforts in their jobs. “Doing things right”

Goal-oriented: Emphasis on producing results, workers feel comfortable in unfamiliar situation, they make maximum efforts and everyday at work brings new challenges. “doing things right”

Question 22

Hofstede’s dimensions of organizational culture

Internally driven vs externally driven

Answer 22

Internally driven (normative):

• workers see thir jobs as implementing inviolable rules, that must be followed (dogmatism)
• high, strict standards of business ethic and honesty.
• workers thing they know what is good for the customer.

Externally driven (pragmatic)

• workers see their job as meeting customer’s need and achieving results for customers (pragmatism)
• satisfying customer needs are more important than following strict rules and correct procedures.

Question 23

Hofstede’s dimensions of organizational culture

Easy going work discipline vs strict work discipline

Answer 23

Easy-going (loose control):

• workers do not think much about costs and expenses.
• meetings are often not scheduled and not on time.
• people make often jokes about company.

Strict (tight control):

• people care a lot about costs and expenses.
• all vice versa.

Question 24

Hofstede’s dimensions of organizational culture

Local vs professional (focus)

Answer 24

Local (parochial):

• workers feel that organization’s norms apply at work and outside.
• workers identify with the company. #likeabosh
• social and bakground are important in hiring decisions.
• workers trust the company will plan the future for them.

Professional (cosmopolitan):

• workers do not mix their privat lives with their jobs.
• they define their identities according to their job type. (“I am a doctor”).
• hiring decisions are based on own competence.
• workers think far into the future.

Question 25

Hofstede's dimensions of organizational culture Open system vs closed system

Answer 25

Open system: - people in the organnization are open and welcoming to newcomers and outsiders. - workers find easy to "fit in" and are always well informed and get all necessary info. - everyone get a second chance in case of failure. Closed system: - people in the organization seem to be closed off and secretive, even to insiders. - management is not keeping everyone informed. - no mercy for those who fail.

Question 26

Hofstede's dimensions of organizational culture Employee-oriented vs work oriented

Answer 26

Employee-oriented - the organization cares about workers welfare and well-being. And also workers feel that. - important decisions are made by groups/ committes. Work-oriented - workers feel strong pressure to finish their assigned work. - organization just care about the work/ results. - important decisions are made by individuals.

Question 27

Marketing research process

Answer 27

# Define the problem - > Design the research - > Design the data-collection form - > Specify the sample - > Collect the data - > Analyze the data - > Write the research report

Question 28

3. Design the data-collection

Answer 28

``` - Primary data are freshly gathered for a specific purpose or for a specific research project: • Survey • Focus group • Interview • Observation • Experiments ``` - Secondary data were collected for another purpose and already exist somewhere: • In company reports, memos etc. • Newspaper, reports • Various search engines, portals and websites • Industry or trade associations • Government and international publications

Question 29

Problem with secondary data research

Answer 29

* Lack of accuracy of data * Age of data * Decrease reliability over

Question 30

Primary data collection - Focus Groups

Answer 30

The focus group is a research technique used to collect data through group interaction on a topic determined by the researcher. • To test new products • To explore and identify issues of satisfaction for customers, staff or suppliers • To explore perceptions of brand and service elements associated with the brand

Question 31

Primary data collection - Focus Groups Pro & Cons

Answer 31

``` Strengths: • focused data collection • some control • flexibility • fairly speedy • fairly low-cost ``` ``` Weaknesses: • data are difficult to analyze • moderators are important • differences between groups • not all topics, not all people • generalize only to groups ```

Question 32

Primary data collection - Interviews Pro & Cons

Answer 32

Strengths • Depth vs. Breadth of understanding • Can be flexible or structured • The “So-What?” and the “Why” questions • Excellent accompaniment to other methods • Easy way to build rapport with informants • Can provide new uncharted avenues for exploration Disadvantages • Social desirability • Draining from time/energy perspective • Quality-of-informants issue (personalities) • Still run risk of misconstruing what was said

Question 33

4. Sampling

Answer 33

``` Probability Sampling • Random Sampling • Area Sampling • Systematic Sampling • Stratified Sampling ``` Nonprobability Sampling • Snowball Sampling • Convenience Sampling

Question 34

4.1. Random Sampling

Answer 34

each member of the subset carries an equal opportunity of being chosen as a part of the sampling process.

Question 35

4.2. Systematic Sampling

Answer 35

Select sample members from a larger population according to a random starting point but with a fixed, periodic interval. This interval, called the sampling interval, is calculated by dividing the population size by the desired sample size. ``` N = 100 want n = 20 N/n = 5 select a random number from 1-5: chose 4 so, we have to select every 5th unit starting from #4 ```

Question 36

4.3. Stratified Sampling

Answer 36

Divide the population into separate groups (by certain criteria), then, a probability sample (usually simple random sample) is drawn from each group.

Question 37

Research brief

Answer 37

* A research brief is a write-up from the client to the research agency * The brief helps the researcher and the client to understand the problem properly. * It makes the initiator of the brief more certain of how the information to be collected will support decision-making. * It ensures an amount of agreement or cohesion among all parties who may benefit from the research findings. * It helps both the marketer and the researcher to plan and administer the research program. * It helps to reduce disputes that can occur when the gaps in marketers’ knowledge are not ‘filled’ as intended. * It can form the basis for negotiation with a variety of research organizations.