MKTG 445 Exam 2 (100% Errorless Answers)

P&G in Japan correct answers • 1972: first mover in Japan for disposable diapers, 80% market share • 1985: market share 8%, losing $40M/year • just replicated mktg strategy from the US and put it in Japan • Japanese moms weren't concerned about absorbency & sizes were too big for small Japanese homes • ignored cultural differences Starbucks Mexican dilemma correct answers • mexicans don't drink coffee even though they're the 5th largest coffee producer • consume 2 lbs/year compared to 10 lbs for Americans or 26 lbs/year for Swedes • what did they do? Focus on breakfast sides, mostly pastries & cold beverages are consumption patterns converging? correct answers • yes overall, but major differences still persist national differences correct answers • global marketers still must consider differences in ability to buy (willingness to pay), consumer needs, and consumer behavior ability to buy correct answers • can look at per capita income, but not enough alone to estimate • purchasing power parity: better comparison metric, takes pricing into account, compares costs in one marketplace to another purchasing power parity correct answers • it's a household basket of goods that's compared country to country • ex. Big Mac Index: the cost of the big mac around the world hidden economy correct answers • informal sector: income not reported to authorities (paid under the table) • assumption: as economic development increases, the informal sector activity will decrease • reality: the bulk of new employment in recent years, particularly in developing and transitioning economies has been in the informal sector why has there been informal sector growth? GLOBALIZATION correct answers • globalization • loss of employment in formal sector • uncompetitive firms fold after liberalization • uncompetitive firms fold during currency crises and other global economic shocks • cost pressures of increased competition • core of wage employees and periphery of informal workers • information and comm. technology makes global coordination of informal firms possible why has there been informal sector growth? INSTITUTIONS correct answers • lack of enforcement institutions and laws against corruption, tax evasion, labor and health violations • red tape of bureaucratic institutions: role of HNO