1. Which of the following is referred to as the big new idea in business and marketing?

A) the emphasis on pushing products

B) the focus of a business to maximize profits

C) the responsibility of a business to create value

D) the provision for customer-perceived benefits

Which of the following statements is true about the new concept of value creation?

A) It defines value based on stockholder welfares.

B) It creates a profit-centric value.

C) It defines value as only customer-perceived benefits.

D) It creates real economic and social value.

Which of the following will most likely give an organization a sense of identity?

A) short-term perspectives

B) purpose and values

C) profit maximization

D) customer retention

Which of the following is essential in organizing corporate social responsibility as a means to attain competitive advantage?

A) translating existing business strategies and methods into policies on ethical and social issues

B) communicating corporate policies on environmental impact and human rights on a need-to-know basis

C) adopting only a top-down approach for strategic planning and development

D) integrating social, economic, and technological issues into all dimensions of a business

Which of the following is the first stage in creating a sustainable competitive advantage?

A) making value chains sustainable

B) viewing compliance as an opportunity

C) designing sustainable products and services

D) developing new business models

Which of the following is a challenge faced by organizations in the second stage of moving toward a sustainable growth?

A) to increase efficiencies and reduce harmful environmental impact

B) to set standards for environmental regulations

C) to identify compliance as an opportunity to competitive advantage

D) to recognize the ways sustainability can create consumer value

Which of the following statements is true about shareholders?

A) They are not entitled to a distribution of the dividend income.

B) They have direct equity interest in the firms to which they fund resources.

C) They have no rights to transfer their shares to other investors.

D) They emphasize corporate responsibility over financial profitability.

Which of the following statements is true about the relationship between consumers and an organization's corporate social responsibilities?

A) Consumers' image of the organization and their purchasing powers are influenced by it.

B) Consumers are not considered as powerful stakeholders and the organization's poor relationship with them does not affect its credibility.

C) Consumers today view the quality of products and services as a key issue more than social responsibility.

D) Consumers are not concerned about the organization's corporate ethical behavior.

Which of the following statements is true of members of society as stakeholders of an organization?

A) Members of society are external stakeholders, and are therefore not affected by corporate activities.

B) Collaboration between members of civil society, the private sector, and the public sector can lead to intractable and complex global problems.

C) Members of society have become powerful catalysts and can use modern communication technology to form protest alliances.

D) Members of society do not have the power to force businesses to contribute to change.

Which of the following is the single most important driver of globalization?

A) national regulation

B) information technology

C) domestic focus

D) market difference

Which of the following has eliminated distance as a barrier to communications and connection via data and voice?

A) telegraph

B) radio

C) telephone

D) World Wide Web

Which of the following trends in world economy has shaped up the future of global marketing and marketing enterprises?

A) the growing role of consumers as just purchasers of products and services

B) downfall of GDP per capita income in developed countries

C) the rise of the rest of the world on par with the developed nations

D) global economy shifting toward the growth of developed countries

Which of the following is an impact of IT driven globalization on marketing?

A) All markets in the world regions are being exposed to global competition.

B) Identifying consumer needs has become more complex than ever.

C) Employers replacing computers with manual labor are gaining competitive advantages.

D) The interaction between companies and consumers is decreasing.

Which of the following is an effect of the Internet on distance in marketing?

A) Marketers cannot communicate with more than one person at the same time.

B) The time taken to communicate increases with increase in distance.

C) The costs of transportation and communication have increased significantly.

D) Marketers can communicate with anyone in the world irrespective of distance.

Which of the following is a typical reason for the accelerating growth of the global markets?

A) decreasing number of middle-class consumers

B) high growth rate in the emerging markets

C) stagnant growth in the high-income countries

D) lack of growth in the world's poorer countries

Which of the following is most likely to cause global economic migration of people to more developed countries?

A) decreasing number of middle-class consumers

B) graying population in developed countries

C) low birthrate in undeveloped countries

D) large wealth in emerging markets

Which of the following statements is true about the location of production units over the past few decades?

A) Shifting production activities to locations with lower wages leads to long-term sustainable competitive advantage.

B) Production units are being shifted from low to high-income countries.

C) The cost of production is low in emerging markets.

D) The location of production for mature products is restricted to high-wage countries.

Which of the following is the key to success in global marketing?

A) maturity of a product

B) location of production

C) understanding of the market and the customer

D) availability of skilled labor

How organizations can create sustainable competitive advantage in the global marketing environment?

A) by adopting a shared-value approach to marketing

B) by shifting production locations to low-wage countries

C) by restricting value creation to top management executives

D) by enriching the shareholders at the expense of the society

Which of the following is essential for a company to survive successfully in a global market?

A) a product-centric marketing approach

B) an ethnocentric management orientation

C) a low-wage workforce

D) a sustainable competitive advantage