Mazda: Positioning a Product Line

Chapter 04
Cultural Dynamics in Assessing Global Markets

True / False Questions 1. (p. 93) There is a moderate level American-style risk-taking among Japanese investors.
FALSE

Difficulty: Easy
Type: Knowledge 2. (p. 93) The liberalization of Japan's capital markets in recent years now gives Japanese more freedom of choice in their investments. However, only twelve percent of household financial assets are directly invested in stocks and a mere two percent in mutual funds.
TRUE

Difficulty: Moderate
Type: Knowledge 3. (p. 93) The Japanese transition into a more modern and stable securities market has been a smooth one.
FALSE

Difficulty: Easy
Type: Knowledge 4. (p. 94) The manner and amount in which people consume are factors that dictate their style of living.
TRUE

Difficulty: Easy
Type: Knowledge

5. (p. 94, footnote #1) Apparently obesity in the United States is causing Disneyland to deepen the channel on which its Small World boats float to keep the boats from bottoming out.
TRUE

Difficulty: Easy
Type: Knowledge 6. (p. 94) Culture deals with a group's design for living.
TRUE

Difficulty: Easy
Type: Comprehension 7. (p. 94) According to the text, culture is specifically how well someone walks, talks, or writes.
FALSE

Difficulty: Easy
Type: Knowledge 8. (p. 94) Marketers are often considered to be agents of change with respect to culture.
TRUE

Difficulty: Moderate
Type: Comprehension 9. (p. 94) Culture affects every part of our lives, every day, from birth to death and everything in between.
TRUE

Difficulty: Easy
Type: Comprehension

10. (p. 98) According to Dutch professor Geert Hofstede, culture is a figment of our imagination.
FALSE

Difficulty: Moderate
Type: Knowledge 11. (p. 99, Exhibit 4.4) According to the text, culture can trace its origins to geography, history, technology and political economy, and social institutions.
TRUE

Difficulty: Moderate
Type: Knowledge 12. (p. 99, Exhibit 4.4) Good illustrations of elements of culture would be one's family, religion, schools, media, government, and even corporations.
FALSE

Difficulty: Moderate
Type: Knowledge 13. (p. 104) In most cultures the first social institution infants are exposed to outside of the home takes the form of a church or other religious institution.
TRUE

Difficulty: Moderate
Type: Comprehension 14. (p. 103) The two social institutions that most strongly influence values and culture are governments and nonprofit institutions.
FALSE

Difficulty: Hard
Type: Comprehension

15. (p. 106) Underlying the cultural diversity that exists among countries are fundamental differences in cultural values.
TRUE

Difficulty: Moderate
Type: Knowledge 16. (p. 107) The Individualism/Collectivism Index measures the tolerance of social inequality.
FALSE

Difficulty: Moderate
Type: Knowledge 17. (p. 107) Aspects of additional data sets related to values related to leadership and organizations developed in the 1990s coincide with Hofstede's data collected 25 years earlier.
TRUE

Difficulty: Easy
Type: Knowledge 18. (p. 107) Rebecca Nguyen is attempting to measure power inequality between superiors and subordinates within AT&T's social system. The best measure would be the Power Distance Index.
TRUE

Difficulty: Moderate
Type: Application 19. (p. 111) Anthropologist Edward T. Hall tells us that culture is communication.
TRUE

Difficulty: Moderate
Type: Comprehension

20. (p. 112) With respect to languages, Spanish, Italian, French, and Portuguese are all classified as Romance languages because most poetry is written in these languages.
FALSE

Difficulty: Moderate
Type: Application 21. (p. 112) A researcher for the Gallup polling organization is designing a questionnaire that will explore people's attitudes toward the arts, folklore, and music. The researcher's survey will, therefore, explore people's attitudes toward what is called aesthetics.
TRUE

Difficulty: Moderate
Type: Application 22. (p. 114) According to information about beliefs found in the text, a Chinese man or woman who believed in feng shui would not face their home in either a northwesterly or southwesterly direction.
TRUE

Difficulty: Hard
Type: Application 23. (p. 115) The type of knowledge about a culture that is usually obvious and must be learned is designated as being interpretative knowledge.
FALSE

Difficulty: Moderate
Type: Knowledge

24. (p. 116) Jose and Mary Garcia, while both being Hispanic, are miles apart in their cultural upbringing. Jose, who grew up in Argentina, believes that time is unimportant in daily activities and that all things will eventually get done. Mary was raised in Los Angeles where everything is very time-oriented. These differences would be attributed to interpretative knowledge gained by the two Garcia's.
TRUE

Difficulty: Hard
Type: Application 25. (p. 116-117) If a person has cultural sensitivity then the person is attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated.
TRUE

Difficulty: Easy
Type: Knowledge 26. (p. 117) Cultural borrowing is relevant only to those cultures formed in what was called the New World.
FALSE

Difficulty: Moderate
Type: Knowledge 27. (p. 117) A good illustration of cultural borrowing is the fact that salsa is now the number one condiment used by Americans with their meals.
TRUE

Difficulty: Moderate
Type: Application 28. (p. 117) If there is anything constant about culture is that it is constantly changing.
TRUE

Difficulty: Easy
Type: Comprehension

29. (p. 118) If we were to describe a culture as being dynamic, we would recognize that this culture was resistant to change.
FALSE

Difficulty: Easy
Type: Comprehension 30. (p. 120) An illustration of cultural congruence would be the fact that Apple Computer prints all instructions for setting up their computer products in English and the native language of the country where the product is to be sold.
TRUE

Difficulty: Moderate
Type: Application 31. (p. 120) Nike would be following a program of unplanned change if it were to introduce a line of tennis shoes for women (Nike Goddess) in a Muslim country with no prior marketing or communication efforts.
TRUE

Difficulty: Hard
Type: Application

Multiple Choice Questions 32. (p. 94) __________ is pervasive in all marketing activities; the marketer's efforts actually become a part of the __________.
A. Resistance; opposition to change
B. Culture; fabric of culture
C. Acceptance; new global context
D. Public relations; culture
E. Change; marketing strategy

Difficulty: Moderate
Type: Comprehension

33. (p. 94) _____________ is the human-made part of human environment.
A. Sociology
B. Psychology
C. Culture
D. Reference groups
E. Cohort groups

Difficulty: Moderate
Type: Knowledge 34. (p. 94) The sum total of knowledge, beliefs, art, morals, law, customs, and any other capabilities and habits acquired by humans as members of society is called:
A. Sociology
B. Psychology
C. Culture
D. Reference groups
E. Cohort groups

Difficulty: Moderate
Type: Knowledge 35. (p. 94) When marketers first introduced the PDA to the American consumer they performed the role of being a(n) _____________ because the cultural impact of the product became widespread.
A. gatekeeper
B. role player
C. supply creator
D. agent of change
E. promoter

Difficulty: Moderate
Type: Application

36. (p. 96, Exhibit 4.2) With respect to a cultural fact, which of the following countries has the highest rate of consumption of chocolate?
A. France
B. Germany
C. United States
D. Italy
E. United Kingdom

Difficulty: Hard
Type: Application 37. (p. 98) According to Dutch management professor Geert Hofstede, culture is seen as:
A. "software of the mind."
B. "the difference between life and death."
C. "the conflict of civilization versus the masses."
D. "tool of the elite."
E. "art's triumph over banality."

Difficulty: Hard
Type: Comprehension 38. (p. 98) According to Dutch management professor Geert Hofstede, culture is seen as a:
A. weapon that is often used on the poor.
B. problem-solving tool.
C. bias that is used to justify racial inequality.
D. a relationship enhancer.
E. reflection of a nation's evolution.

Difficulty: Moderate
Type: Knowledge

39. (p. 99, Exhibit 4.4) All of the following are considered to part of the origins of culture EXCEPT:
A. geography.
B. history.
C. technology and political economy.
D. mathematical models
E. social institutions.

Difficulty: Moderate
Type: Comprehension 40. (p. 99, Exhibit 4.4) Which of the following would be considered to among the elements of culture according to a model presented in the text?
A. family
B. religion
C. media
D. rituals
E. school

Difficulty: Moderate
Type: Comprehension 41. (p. 99) A traditional definition of ____________ centers around the notion that it is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned, shared by a group of people, and transmitted from generation to generation.
A. social class
B. psychology
C. anthropology
D. demography
E. culture

Difficulty: Moderate
Type: Knowledge

42. (p. 102) As Mike Jones has grown up he has learned a great about his culture from his schools, church, mass media, and family. This learning is called:
A. acculturation.
B. socialization.
C. naturalization.
D. emancipation.
E. adaptation.

Difficulty: Hard
Type: Application 43. (p. 98, Crossing Borders 4.1) The following traits have been identified as those shared by humans EXCEPT __________.
A. conceive of success and failure
B. overestimate objectivity of thought
C. express emotions with face
D. engage in sport activities
E. imitate outside influences

Difficulty: Easy
Type: Knowledge 44. (p. 102) Mervin is excited about his new home in the Philippines. Even though he was born in Los Angeles, Mervin has been given the opportunity to learn about a new culture, form new friends, and capitalize on opportunities than were not available in his previous home or workplace. Mervin will go through what is called a ______________ as he adjusts to living in Manila.
A. acculturation
B. socialization
C. naturalization
D. emancipation
E. standardization

Difficulty: Moderate
Type: Application

45. (p. 103) The family, religion, schools, the media, government, and corporations are all illustrations of what are called:
A. social institutions.
B. cultural icons.
C. internal variables.
D. external variables.
E. demographic variables.

Difficulty: Moderate
Type: Knowledge 46. (p. 104) In most cultures the first social institution infants are exposed to outside the home takes the form of a:
A. day care center.
B. school.
C. religious institution (church, mosque, shrine, or temple).
D. shopping mall.
E. government agency.

Difficulty: Hard
Type: Comprehension 47. (p. 104) According to the text, there is some good news about gender equality in recent years -- the __________ gap between the sexes is narrowing in many places around the world.
A. intelligence
B. employment
C. identity
D. education
E. language

Difficulty: Easy
Type: Knowledge

48. (p. 105) __________ are seen as leading positive cultural changes and progress around the world.
A. Schools
B. Sports stadiums
C. Labor unions
D. Dogmatic religions
E. Internet and television

Difficulty: Easy
Type: Knowledge 49. (p. 105) The four social institutions that most strongly influence values and culture are schools, churches (religious institutions), families, and:
A. shopping malls.
B. day care centers.
C. government agencies.
D. the media.
E. corporations.

Difficulty: Moderate
Type: Comprehension 50. (p. 106) Compared with the early (during childhood) and direct influences of family, religion, school, and the media during childhood, governments:
A. hold a very strong position.
B. hold a moderate position.
C. hold relatively little sway.
D. control a great deal of our lives.
E. basically ignore people.

Difficulty: Hard
Type: Application

51. (p. 106-107) The most useful information on how cultural values influence various types of business and market behavior comes from work done by:
A. Sigmund Freud.
B. George Gallup.
C. Geert Hofstede.
D. Ayn Rand.
E. Milton Friedman.

Difficulty: Hard
Type: Knowledge 52. (p. 107, Exhibit 4.5) Many languages are very different from other languages. Which of the following languages is the most distant from English?
A. French.
B. German.
C. Spanish.
D. Arabic.
E. Taiwanese (Taiwan).

Difficulty: Hard
Type: Knowledge 53. (p. 108) The ________________ Index refers to the preference for behavior that promotes one's self-interest.
A. Individualism/Collectivism
B. Power Distance
C. Uncertainty Avoidance
D. Ritual
E. Language

Difficulty: Moderate
Type: Knowledge

54. (p. 107, Exhibit 4.5) Which of the following countries scores highest on the Individualism/Collectivism Index meaning that this country values and rewards individual initiative more that the others cited?
A. Brazil
B. Greece
C. France
D. Germany
E. United States

Difficulty: Easy
Type: Application 55. (p. 107, Exhibit 4.5) Which of the following countries would have the most affinity (score highest) for collectivism (cohesive groups are honored and encouraged)?
A. Great Britain
B. Australia
C. Canada
D. France
E. Japan

Difficulty: Easy
Type: Application 56. (p. 108) The Uncertainty Avoidance Index measure the tolerance of ___________ and __________ among members of a society.
A. social equality; inequality
B. self-interest; collective interest
C. uncertainty; ambiguity
D. primary; secondary language tolerance
E. ritual; dislocation

Difficulty: Moderate
Type: Comprehension

57. (p. 107, Exhibit 4.5) Emma Smith has just been hired as a consultant for the Smith Barney stock brokerage firm. Her task is to determine whether Smith Barney should use face-to-face contacts to encourage sales or the more impersonal electronic communications that have become so popular today. Her data indicates (based on reviews of Individualism/Collectivism studies) that all but one of the following countries would probably favor electronic communication. Which country would most likely favor face-to-face contact with a Smith Barney broker?
A. United States
B. Australia
C. Canada
D. Japan
E. Great Britain

Difficulty: Moderate
Type: Application 58. (p. 109, Crossing Borders 4.2) Giving a gift in another country requires careful attention if it is to be done properly. According to the characteristics of gift giving that follows, which country most likely matches with this form of gift giving? Characteristics: never make an issue of a gift presentation--publicly or privately; gifts should be presented privately, with the exception of collective ceremonial gifts at banquets or after speeches.
A. Arab World
B. United States
C. Japan
D. Latin America
E. China

Difficulty: Moderate
Type: Application 59. (p. 110-111) Rituals let people know:
A. what to expect.
B. what something costs.
C. how the government operates.
D. the impact of language.
E. the ancient rites of worship.

Difficulty: Moderate
Type: Comprehension

60. (p. 111) Anthropologist Edward T. Hall tells us that culture is:
A. all-encompassing.
B. relatively minor in the scheme of life.
C. communication.
D. strongly linked to physiology.
E. standard throughout the world.

Difficulty: Moderate
Type: Knowledge 61. (p. 111) In many parts of the world language is itself thought of as a social institution (often with political importance). Which of the following countries best exemplifies the above statement?
A. Australia
B. United States
C. France
D. Mexico
E. Switzerland

Difficulty: Moderate
Type: Application 62. (p. 111) The relationship between language and international marketing is an important factor that cannot be overestimated. Recent studies indicate that a new concept, __________, is proving useful to marketing researchers in market segmentation and strategic entry decisions.
A. linguistic traps
B. linguistic distance
C. language parallels
D. language roots
E. linguistic accents

Difficulty: Moderate
Type: Comprehension

63. (p. 112) Which of the following general terms would most closely be associated with the arts, folklore, music, drama, and dance?
A. controllable environmental variables
B. uncontrollable environmental variables
C. aesthetics
D. cultural mandates
E. cultural icons

Difficulty: Moderate
Type: Knowledge 64. (p. 114) Much of what we learn to believe comes from:
A. the media.
B. the Internet.
C. religious training.
D. biological heredity.
E. physiological need states.

Difficulty: Easy
Type: Comprehension 65. (p. 114) Gin and Oki Chen are about to purchase a new home in San Francisco. The first home shown to the couple is a lovely ranch-style house. As Gin looks at the home she comments to the real estate broker, "This will never do. I am sorry but the front entrance faces northwest. No one would ever visit us. May we please see another house from your list." Her husband concurs. Which of the following would explain why Gin Chen's statement was so strong and why she would rather look at another home?
A. She is afraid of earthquakes in the San Francisco area.
B. She dislikes the color of the house but is afraid to say so because it would be rude.
C. She never has liked houses that face shaded areas.
D. She is from southern China and, therefore, prefers an entrance that faces southwest.
E. She respects traditional feng shui beliefs.

Difficulty: Moderate
Type: Application

66. (p. 115) How people think and view the world is important to any cultural study of the international environment. According to a book written by Richard Nisbett, The Geography of Thought, Asians tend to:
A. prefer home cooking to fast food.
B. see the whole picture and can report details about background and foreground.
C. focus on small details in the foreground but cannot often see the "big picture."
D. see the world (surprisingly) in a similar way to everyone else.
E. see only what they want to see as they are very biased on their outlook on life.

Difficulty: Hard
Type: Application 67. (p. 115) ____________ knowledge about a culture is usually obvious and must be learned.
A. Factual
B. Interpretative
C. Virtual
D. Historical
E. Superstitious

Difficulty: Moderate
Type: Knowledge 68. (p. 115) _____________ knowledge about a culture is an ability to understand and to appreciate fully the nuances of different cultural traits and patterns.
A. Factual
B. Interpretative
C. Virtual
D. Historical
E. Superstitious

Difficulty: Moderate
Type: Knowledge

69. (p. 115) Factual knowledge is very important to understanding a culture. Which of the following would be the best illustration of this importance?
A. The Catholic religion is widespread throughout the world.
B. The United States is located in the Northern Hemisphere of what was called the New World.
C. 98 percent of Mexico is Roman Catholic.
D. Great Britain is made up of England, Scotland, Ireland, and Wales.
E. Traffic laws requiring autos to travel on the right or left side of the road.

Difficulty: Hard
Type: Application 70. (p. 116) ______________ is being attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated.
A. Cultural ombudsmanship
B. Being a cultural icon
C. Being a cultural maven
D. Cultural sensitivity
E. Cultural borrowing

Difficulty: Moderate
Type: Knowledge 71. (p. 117) ________________ is a responsible effort to learn from other's cultural ways in the quest for better solutions to a society's particular problems.
A. Cultural ombudsmanship
B. Being a cultural icon
C. Being a cultural maven
D. Cultural sensitivity
E. Cultural borrowing

Difficulty: Moderate
Type: Knowledge

72. (p. 117) Modern medicine in the United States has been impacted by application of herbal remedies from South America and acupuncture from the Orient. This would be an example of which of the following?
A. Cultural ombudsmanship
B. Being a cultural icon
C. Being a cultural maven
D. Cultural sensitivity
E. Cultural borrowing

Difficulty: Moderate
Type: Application 73. (p. 117) Which of the following best illustrates the concept of cultural borrowing in the United States?
A. Eating three meals a day.
B. Working five days a week.
C. Eating salsa on just about everything.
D. The popularity of SUVs in suburban neighborhoods.
E. The popularity of basketball among urban youth.

Difficulty: Easy
Type: Application 74. (p. 119) According to text, innovations vary across cultures. In the Hofstede and other studies it was shown that innovation was associated with all of the following EXCEPT:
A. higher individualism
B. lower power distance
C. uncertainty avoidance
D. production and acceptance of innovations
E. customized disruptive innovations

Difficulty: Hard
Type: Application

75. (p. 119) Some studies have shown that one of the most important factors in determining what kind and how much of an innovation will be accepted is the:
A. degree of interest in the particular subject.
B. how much the item costs.
C. what color the item is.
D. how the item is packaged.
E. knowledge of the brand name.

Difficulty: Hard
Type: Comprehension 76. (p. 119) Often, cultural resistance to change disappears as:
A. government mandates force consumers to change.
B. religion and rituals spark acceptance of cultural change.
C. change agents provide correct change.
D. superstition overcomes science.
E. ideas initially too complex for consumers become less so.

Difficulty: Hard
Type: Application 77. (p. 120) Marketers have two options when introducing an innovation to a culture. First, they can cause change. What is the other option?
A. They can wait.
B. They re-package the innovation to cause confusion.
C. They mandate adoption by withdrawing all alternatives.
D. They can plea for governmental assistance and support.
E. They can promote the innovation as accepted in other cultures.

Difficulty: Moderate
Type: Comprehension

78. (p. 120) One of the ways to introduce change into a market is to do it in slow gradual steps by making the new products as similar to the old ones as possible. This would be called a strategy of:
A. unplanned change.
B. cultural adiaphoria.
C. cultural syncopation.
D. cultural congruence.
E. continuous change

Difficulty: Moderate
Type: Comprehension 79. (p. 120-121) Morton Foods has decided to introduce a new line of turkey products to the American consumer. Turkey Steaks will resemble beefsteak in taste but will be made from turkey meat. The Turkey Steaks will be leaner and healthier for a variety of reasons. However, Morton Foods is concerned that the product will not be accepted. If Morton Foods follows a strategy of ______________, they are more likely to success with the introduction of the new product.
A. unplanned change
B. cultural adiaphoria
C. cultural syncopation
D. cultural congruence
E. continuous change

Difficulty: Hard
Type: Application 80. (p. 119-120) Nexar Energy is advocating the use solar power to replace all petroleum-based energy sources. The company has demonstrations to show how solar power could be used in all major petroleum-based products--automobiles, power sources, and heating and cooling. Since Nexar Energy is advocating _____________, their information documents their deliberate attempt to change the way we do things with respect to energy sources.
A. unplanned change
B. planned change
C. parallel change
D. syncopated change
E. synergistic change

Difficulty: Moderate
Type: Application

81. (p. 120) The Westernized diet has caused many Japanese to become overweight. This would be an illustration of which of the following forms of change?
A. unplanned change
B. planned change
C. parallel change
D. syncopated change
E. synergistic change

Difficulty: Moderate
Type: Application 82. (p. 121) When ____________ (acceptance) occurs, a process of social change may also occur.
A. product replacement
B. product abandonment
C. product innovation
D. product diffusion
E. product acceleration

Difficulty: Hard
Type: Comprehension 83. (p. 121-122) The marketer seeking _____________ and adoption may inadvertently bring about change that affects the very fabric of a social system.
A. product replacement
B. product abandonment
C. product innovation
D. product diffusion
E. product acceleration

Difficulty: Hard
Type: Comprehension

84. (p. 121) If the consequences of diffusion on an innovation on a society are undesirable, then the innovation can be said to have had a(n) ____________ impact on the society.
A. functional
B. dysfunctional
C. symmetrical
D. parallel
E. dynamic

Difficulty: Moderate
Type: Knowledge

Fill in the Blank Questions 85. (p. 94) The human-made part of human environment is associated with the concept of _____________.
Culture

Difficulty: Moderate
Type: Knowledge 86. (p. 94) Marketers often seek to get consumers to adopt new ideas and products. When the marketers do this they are called ____________. agents of change

Difficulty: Easy
Type: Comprehension 87. (p. 96, Exhibit 4.2) The annual consumption per capital for tobacco products in __________ has declined approximately 29%.
Germany

Difficulty: Easy
Type: Knowledge

88. (p. 98, Crossing Borders 4.1) Since we are all of the same species there are hundreds of __________ that we share. traits Difficulty: Easy
Type: Knowledge 89. (p. 98) Dutch management professor ______________ refers to culture as the "software of the mind."
Geert Hofstede

Difficulty: Hard
Type: Knowledge 90. (p. 99, Exhibit 4.4) Elements of culture include values, rituals, symbols, beliefs, and ______________. thought processes

Difficulty: Moderate
Type: Knowledge 91. (p. 103) ____________ includes such areas as family, religion, school, the media, government, and corporations.
Social institutions

Difficulty: Moderate
Type: Knowledge 92. (p. 103) The four social institutions that most strongly influence values and culture are ________, churches, family, and the media. schools Difficulty: Moderate
Type: Comprehension

93. (p. 106) Underlying the cultural diversity that exists among countries are fundamental differences in cultural __________. values Difficulty: Easy
Type: Knowledge 94. (p. 107, Exhibit 4.5) According to indices developed by Hofstede, the ____________ Index focuses on self-orientation.
Individualism/Collectivism

Difficulty: Hard
Type: Knowledge 95. (p. 111) Linguistic ___________ is proving useful to marketing researchers in marketing segmentation and strategic entry decisions. distance Difficulty: Moderate
Type: Comprehension 96. (p. 115) ___________ knowledge is usually obvious and must be learned.
Factual

Difficulty: Easy
Type: Knowledge 97. (p. 116) Being attuned to the nuances of culture is called cultural ___________. sensitivity Difficulty: Easy
Type: Knowledge

98. (p. 117) Cultural __________ is what occurs when products or customs from one culture are used by another culture. borrowing Difficulty: Easy
Type: Knowledge

Essay Questions 99. (p. 94) Culture deals with a group's design for living. Comment and explain.
When designing a product, the style, uses, and other related marketing activities must be made culturally acceptable is they are to be operative and meaningful. Culture is pervasive in all marketing activities. For more information and suggestions, see page 94.

Difficulty: Easy
Type: Comprehension 100. (p. 94) Define culture.
Culture is the human-made part of human environment--the sum total of knowledge, beliefs, art, morals, laws, customs, and any other capabilities and habits acquired by humans as members of society.

Difficulty: Moderate
Type: Knowledge 101. (p. 99, Exhibit 4.4) Describe the relationships among origins, elements, and consequences of culture according to the model presented in the text.
See Exhibit 4.4 on page 99 for a graphic display of the model and associated explanation.

Difficulty: Hard
Type: Comprehension

102. (p. 103-105) List and briefly discuss the role of the six social institutions that impact a nation's culture.
The six social institutions are family, religion, school, the media, government, and corporations. Discussion of the impact of the social institutions is found on pages 103-105.

Difficulty: Hard
Type: Comprehension 103. (p. 103-105) Four social institutions strongly influence values and culture. List and briefly describe these four social institutions as to their strong influence.
The four institutions are schools, churches, families, and the media. For a discussion of the impact, see page 103-105.

Difficulty: Moderate
Type: Comprehension 104. (p. 107, Exhibit 4.5) Pick one of the indices used by Geert Hofstede to describe the fundamental differences between cultural values among nations and indicate its purpose and what a high and low score on that indices would indicate.
The Hofstede indices include Individualism/Collectivism (preference for behavior that promotes one's self-interest), Power Distance (tolerance of social inequality), and Uncertainty Avoidance (tolerance of uncertainty and ambiguity among members of a society). See text material to determine high and low value ramifications.

Difficulty: Hard
Type: Comprehension

105. (p. 110-111) What is a ritual? Give an example of a ritual that has cultural significance and explain the connection.
Life is filled with rituals, or patterns of behavior and interaction that are learned and repeated. The most obvious rituals are associated with major life events such as marriage or death (funerals).

Difficulty: Moderate
Type: Comprehension 106. (p. 111-112) What is linguistic distance? What is its importance to marketers?
Linguistic distance is determined to be narrow or wider differences in language content and meaning. Linguistic distance increases transaction costs. For additional information see pages 110-111.

Difficulty: Moderate
Type: Comprehension 107. (p. 117-118) Explain the concept of cultural borrowing and provide an example to illustrate your discussion.
Cultural borrowing is common to all cultures. Societies have found that answers to problems can be found by seeing how other cultures have solved their problems. Although each society has a few truly unique situations facing it, most problems confronting all societies are similar in nature. See the text (page 116) for illustrations of cultural borrowing.

Difficulty: Moderate
Type: Comprehension 108. (p. 119-120) What is cultural congruence?
Cultural congruence involves marketing similar products to ones already on the market in a manner as congruent as possible with existing cultural norms, thereby minimizing resistance.

Difficulty: Easy
Type: Knowledge

109. (p. 99, Exhibit 4.4; 117) Using information gained from the model that demonstrates origins, elements, and consequences of culture, create an example of how one culture might adapt a product or service from another culture. Please be specific in your application and use of the model.
See model on page 99, Exhibit 4.4. Students should review material on cultural borrowing (see page 117). Students should construct an example that will apply to the model. This question could be given as a homework assignment or as take-home portion of an exam.

Difficulty: Hard
Type: Application 110. (p. 107, Exhibit 4.5) Considering that the United States scores high on the Individualism/Collectivism Index (91) and Japan scores low (46), describe what this means to a marketer of an automobile, computer, or life insurance policy (pick one for discussion).
The index refers to the preference for behavior that promotes one's self-interest. A high score indicates individualism as an approach. A low score indicates more group orientation and value. Students are free to create with the illustrations; however, an American would probably prefer a car that addresses individual needs and is different in styling, a computer that is highly adaptable to a personal need, and an insurance policy that could benefit one's self (investment). The Japanese consumer might want a car that fit with group expectations and did not standout. The computer would be chosen for its ability to interact with others. The insurance policy would to provide security for a larger family unit.

Difficulty: Hard
Type: Application 111. (p. 117-118) Culture is dynamic in nature; it is a living process. Comment.
Cultural change is constant. The dynamic character of culture is significant in assessing new markets even though changes face resistance. Students can follow with a discussion of how societies change and what culture has to do with this. Students can also introduce the concept of cultural borrowing at this point. For additional information see the text (pages 117-118.)

Difficulty: Moderate
Type: Application