Consumer Chapter 8

Chapter 8: Consumer Culture
TRUE/FALSE
1. Consumer culture is commonly held societal beliefs that define what is socially gratifying.
ANS: T PTS: 1 DIF: Easy REF: p. 154
OBJ: 08-1
TOP: AACSB Reflective Thinking| CB&C Model Customer| R&D Knowledge of human behavior &
society
2. The primary function of culture is to facilitate communication among members of that culture.
ANS: F
This is only one function performed by culture and not necessarily the “primary” function. Other
functions include giving meaning to objects and activities.
PTS: 1 DIF: Hard REF: p. 154 OBJ: 08-1
society
3. Rules that specify the appropriate behavior in a given situation within a specific culture are called
cultural standards.
ANS: F
These are cultural norms.
PTS: 1 DIF: Moderate REF: p. 155 OBJ: 08-1
society
4. Cultural sanction refers to the penalties associated with performing a nongratifying or culturally
inconsistent behavior.
ANS: T PTS: 1 DIF: Moderate REF: p. 155
OBJ: 08-1
society
5. Role expectations are the specific expectations that are associated with each type of person.
OBJ: 08-1
society
6. Role expectations for a given role, such as a student or service provider, appear to be universal across
cultures.
ANS: F
Role expectations for a given role often vary from culture to culture.
society
7. Environmental factors are the physical characteristics that describe the physical environment and
habitat of a particular place.
ANS: F
These are ecological factors.
society
8. Eating turkey on Thanksgiving in the United States is an example of a tradition.
OBJ: 08-2
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society
9. Core societal values (CSV) represent a commonly agreed upon consensus about the most preferable
ways of living within a society.
OBJ: 08-2
society
10. Responsibility as a CSV means the extent to which people are expected to take care of themselves and
their immediate family.
ANS: F
This is individualism.
society
11. Highly collective societies tend to live in extended families and be very loyal to groups from which
they take their identity.
OBJ: 08-2
society
12. Generally, Western societies tend to be more collectivistic, whereas Eastern nations tend to be more
individualistic.
ANS: F
Generally, Western societies tend to be more individualistic, whereas Eastern nations tend to be more
collectivistic.
society
13. The masculinity CSV dimension captures distinctions existing in societies based on mannerisms
typically associated with male assertiveness and control.
OBJ: 08-2
society
14. Women’s traits tend to vary more from nation to nation than do those of men.
ANS: F
Women’s traits tend to vary less from nation to nation than do those of men.
society
15. Power distance is the extent to which authority and privilege are divided among different groups
within society and the extent to which these facts of life are accepted by the people within the society.
OBJ: 08-2
society
16. Low-power-distance nations tend to be less egalitarian.
ANS: F
Low-power-distance nations tend to be more egalitarian.
society
17. Uncertainty avoidance is the extent to which a culture is uncomfortable with things that are ambiguous
or unknown.
OBJ: 08-2
society
18. Long-term orientation reflects values consistent with Aristotle’s philosophy and a prioritization of
future reward over short-term benefits.
ANS: F
Long-term orientation reflects values consistent with Confucian philosophy and a prioritization of
future reward over short-term benefits.
society
19. Guanxi is the Chinese term for a way of doing business in which parties must first invest time and
resources in getting to know one another and becoming comfortable with one another before
consummating any important deal.
OBJ: 08-2
society
20. Dostat is a phenomenon associated with long-term orientation and is the idea that when someone does
a good deed for you, you are expected to return that good deed.
ANS: F
The term is renquing, not dostat.
society
21. BRIC is an acronym that refers to the collective economies of Britain, Russia, India, and Canada.
ANS: F
BRIC is an acronym that refers to the collective economies of Brazil, Russia, India, and China.
society
22. Cultural distance represents how disparate one nation is from another in terms of their CSVs.
OBJ: 08-2
society
23. Countries with relatively high CD scores are more similar and thus tend to value the same types of
consumption experiences.
ANS: F
Relatively low CD scores indicate they are more similar.
society
24. CANZUS is an acronym that refers to the close similarity in values between Canada, Australia, New
Zealand, and the United States.
OBJ: 08-2
society
25. Culture is a learned process.
OBJ: 08-3
society
26. Socialization involves learning through observation and the active processing of information about
lived, everyday experience.
OBJ: 08-3
society
27. Enculturation represents the way a person learns his or her native culture.
OBJ: 08-3
society
28. Assimilation is the process by which consumers come to learn a culture other than their natural, native
culture.
ANS: F
This is acculturation.
society
29. Children generally become acculturated more quickly than adults.
OBJ: 08-3
society
30. Ethnic grounding is the degree to which consumers feel a sense of belonging to the culture of their
ethnic origins.
ANS: F
This is ethnic identification.
society
31. National imperialism is the belief among consumers that their ethnic group is superior to others and
that the products that come from their native land are superior to other products.
ANS: F
This is consumer ethnocentrism.
society
32. Ethnocentrism is highly related to the concept of uncertainty avoidance.
ANS: T PTS: 1 DIF: Hard REF: p. 164
OBJ: 08-3
society
33. The quartet of institutions that are responsible for communicating the CSV through both formal and
informal processes from one generation to another is: family, school, church, and media.
OBJ: 08-3
society
34. Reflection is a process of imitating others’ behavior.
ANS: F
This is modeling.
society
35. Modeling is a form of observational learning.
OBJ: 08-3
society
36. Shaping is a socialization process by which consumers’ behaviors slowly adapt to a culture through a
series of rewards and sanctions.
OBJ: 08-3
society
37. Verbal communication refers to the transfer of information through either the literal spoken or written
word.
OBJ: 08-4
society
38. Dialects are variations of a common language.
OBJ: 08-4
society
39. Translational parity exists when two phrases share the same precise meaning in two different cultures.
ANS: F
This is translational equivalence.
society
40. Numerical equivalence refers to the state in which consumers are shown to use numbers to represent
quantities the same way across cultures.
ANS: F
This is metric equivalence.
society
41. Nonverbal communication is information passed through some nonverbal act.
OBJ: 08-4
society
42. Americans typically place a high value on time and timeliness.
OBJ: 08-4
society
43. Body language refers to the nonverbal communication cues signaled by somatic (controllable
biological) responses.
ANS: F
Body language refers to the nonverbal communication cues signaled by somatic (uncontrollable
biological) responses.
society
44. Etiquette represents the customary mannerisms consumers use in common social situations.
OBJ: 08-4
society
45. An Asian consumer who responds to a sales appeal with “yes” is definitely indicating agreement and
readiness to purchase.
ANS: F
This “yes” is more a way of indicating that he or she understands what is being said.
society
46. The symbolic meaning of objects affects gift giving from culture to culture.
OBJ: 08-4
society
47. The consumer price index (CPI) gives an idea of the total size of the consumer market in each country
in terms of total buying power.
ANS: F
The purchasing power parity (PPP) gives this information.
society
48. The term Chindia refers to the combined market and business potential of China and India.
OBJ: 08-5
society
49. Just over five billion consumers live in India.
ANS: F
Just over one billion consumers live in India.
society
50. Glocalization represents the idea that the marketing strategy may be global but the implementation of
that strategy at the marketing tactics level should be local.
OBJ: 08-5
society
MULTIPLE CHOICE
1. Consumer _____ can be thought of as commonly held societal beliefs that define what is socially
gratifying.
a. norms
b. behavior
c. culture
d. sanctions
e. values
ANS: C PTS: 1 DIF: Moderate REF: p. 154
OBJ: 08-1
society
2. All of the following are functions performed by culture EXCEPT _____.
a. giving meaning to objects
b. giving meaning to activities
c. lowering trade barriers between countries
d. facilitating communication
e. all of these choices are functions of culture
ANS: C PTS: 1 DIF: Hard REF: p. 154
OBJ: 08-1
society
3. Rules that specify the appropriate behavior in a given situation within a specific culture are called
cultural _____.
a. sanctions
b. beliefs
c. requirements
d. norms
e. roles
ANS: D PTS: 1 DIF: Moderate REF: p. 155
OBJ: 08-1
society
4. In the United States, it is expected that people attending a funeral wear dark colors, but in Japan they
are expected to wear white. These expectations regarding the appropriate behavior in a given
situation are called cultural _____.
a. taboos
b. norms
c. standards
d. sanctions
e. roles
ANS: B PTS: 1 DIF: Hard REF: p. 155
OBJ: 08-1
society
5. Penalties associated with performing a nongratifying or culturally inconsistent behavior are called
cultural ______.
a. sanctions
b. norms
c. punishments
d. sentences
e. penance
ANS: A PTS: 1 DIF: Moderate REF: p. 155
OBJ: 08-1
society
6. In most cultures, individuals committing crimes are punished in some way. These punishments are
examples of cultural _____.
a. norms
b. roles
c. sanctions
d. penance
e. chastising
OBJ: 08-1
society
7. _____ refer to specific expectations that are associated with each type of person.
a. Role expectations
b. Cultural norms
c. Gender roles
d. Traditional roles
e. Natural roles
OBJ: 08-1
society
8. The president of the United States is expected to act with diplomatic strength. This specific
expectation can be described as the president’s _____.
a. cultural norm
b. role expectation
c. traditional role
d. international stature
e. political role
OBJ: 08-1
society
9. Which of the following represents physical characteristics that describe the physical environment and
habitat of a particular place?
a. terrestrial factors
b. environmental factors
c. physical factors
d. external factors
e. ecological factors
ANS: E PTS: 1 DIF: Moderate REF: p. 157
OBJ: 08-2
society
10. What type of factors would influence hygiene habits of individuals living in a desert compared to
those living where water is more plentiful?
a. environmental factors
b. ecological factors
c. physical factors
d. terrestrial factors
e. external factors
OBJ: 08-2
society
11. Customs and accepted ways of structuring society are called _____.
a. sanctions
b. core societal values
c. traditions
d. cognitive behaviors
e. utilitarian values
OBJ: 08-2
society
12. In most Christian cultures, consumers exchange gifts at Christmas. This is an example of a(n) _____.
a. ecological factor
b. tradition
c. core societal value
d. cultural sanction
e. embedded behavior
ANS: B PTS: 1 DIF: Moderate REF: p. 157
OBJ: 08-2
society
13. _____ represent a commonly agreed upon consensus about the most preferable ways of living within
a society.
a. Cultural sanctions
b. Individualism
c. Collectivism
d. Core societal values (CSV)
e. Pluralism
OBJ: 08-2
society
14. The United States is a country where people place a high value on self-reliance, individual initiative,
and personal achievement. Which of the following core societal value best describes the U.S.?
a. individualism
b. collectivism
c. isolationism
d. personalism
e. divisionism
OBJ: 08-2
society
15. Which of the following refers to the extent to which an individual’s life is intertwined with a large
cohesive group?
a. individualism
b. collectivism
c. isolationism
d. pluralism
e. interactionism
OBJ: 08-2
society
16. Jamal lives with his two brothers, their wives and children, and his parents. In his country, each family
is expected to take care of other family members. Which of the following best describes Jamal’s
culture?
a. individualism
b. pluralism
c. collectivism
d. interdependent
e. self-reliant
OBJ: 08-2
society
17. Which CSV dimension captures distinctions existing in societies based on mannerisms typically
associated with male traits such as valuing assertiveness and control?
a. individualism
b. collectivism
c. masculinity
d. femininity
e. power distance
ANS: C PTS: 1 DIF: Easy REF: p. 159
OBJ: 08-2
society
18. _____ is the extent to which authority and privileges are divided among different groups within a
society and the extent to which these facts of life are accepted by the people within the society.
a. Masculinity
b. Individuality
c. Collectivism
d. Power distance
e. Uncertainty avoidance
OBJ: 08-2
society
19. In _____ nations, those with less status must show deference to those with greater status.
a. individualistic
b. low uncertainty avoidance
c. high uncertainty avoidance
d. low-power-distance
e. high-power-distance
ANS: E PTS: 1 DIF: Hard REF: p. 159
OBJ: 08-2
society
20. In some countries, such as South Korea, it is very important for men to know the age of other men
because age is associated with higher status and power. So it is not unusual for one man to ask
another his age if it is not readily obvious who is older so that proper deference can be shown to the
older of the two. Based on this information, South Korea would be classified as a high _____ culture.
a. individualistic
b. power distance
c. caste
d. uncertaintly avoidance
e. short-term orientation
OBJ: 08-2
society
21. A country high in which CSV is uncomfortable with things that are ambiguous or unknown?
a. femininity
b. uncertainty avoidance
c. power distance
d. short-term orientation
e. individualism
OBJ: 08-2
society
22. The 2011 Chinese New Year is the year of the rabbit. So many Chinese consumers are purchasing
bunnies as pets, thinking they will bring luck and prosperity to them. Cultures in which superstitions
and myths play a big role tend to be high on which CSV dimension?
a. femininity
b. power distance
c. individualism
d. short-term orientation
e. uncertainty avoidance
ANS: E PTS: 1 DIF: Hard REF: p. 160
OBJ: 08-2
society
23. _____ reflects values consistent with Confucian philosophy and a prioritization of future rewards over
short-term benefits.
a. Individualism
b. Collectivism
c. Power distance
d. Power longevity
e. Long-term orientation
OBJ: 08-2
society
24. Which of the following is the Chinese term for a way of doing business in which parties must first
invest time and resources in getting to know one another and becoming comfortable with one
another before consummating any important deal?
a. Guanxi
b. Dostat
c. Hungchoi
d. BRIC
e. Chow Shi
OBJ: 08-2
society
25. Mitch is a sales representative for Caterpillar, the world’s largest manufacturer of heavy equipment.
He is moving to China because of the rapid expansion in that country and the opportunity it offers
Caterpillar. He is undergoing extensive training, however, because business is conducted differently in
China compared to the U.S. For example, Mitch is learning that business people in China expect a
salesperson to develop a relationship with them before they ever discuss business, which is a practice
called _____.
a. renquing
b. hungchoi
c. guanxi
d. chow shi
e. tai chi
OBJ: 08-2
society
26. Which of the following is a phenomenon associated with long-term orientation and is the idea that
when someone does a good deed for you, you are expected to return that good deed?
a. reciprocity
b. renquing
c. guanxi
d. chow shi
e. tai chi
OBJ: 08-2
society
27. Wei and her family live in Beijing, and a friend of her parents helped get her son into a prestigious
school. These friends now expect renquing from Wei, which means she _____.
a. must pay these people a lump sum of money
b. must pay these people money during the time her son attends the school
c. is expected to return that good deed sometime in the future
d. must publicly announce the favor granted by her parents’ friends
e. must give these people periodic reports of her son’s progress in school
OBJ: 08-2
society
28. BRIC is an acronym that refers to the collective economies of Brazil, Russia, India, and _____.
a. Canada
b. Chile
c. China
d. Czechoslovakia
e. Chad
OBJ: 08-2
society
29. Which of the following represents how disparate one nation is from another in terms of their CSVs?
a. cultural distance
b. guanxi
c. dissociation score
d. cultural disparity measure
e. power distance
OBJ: 08-2
society
30. Theo is looking at how different one nation is from another in terms of their CSVs and learned that
the United States is very similar to Australia and the United Kingdom. The approach Theo is using is
based on the concept of _____.
a. Guanxi
b. cultural distance
c. social distance
d. geographic distance
e. cultural differentiation
OBJ: 08-2
society
31. Which of the following terms is used to refer to the close similarity in values between Canada,
Australia, New Zealand, and the United States?
a. Guanxi
b. cultural distance
c. CANZUS
d. BRIC
e. Dostat
OBJ: 08-2
society
32. _____ involves learning through observation and the active processing of information about lived,
everyday experience.
a. Sanctification
b. Cultural internalization
c. Guanxi
d. Socialization
e. Renquing
OBJ: 08-3
society
33. Carmen is a little girl who is learning her culture from observations in her everyday experiences. She
acts the way she sees her parents and siblings and friends at school act. What is this process Carmen
is using called?
a. socialization
b. sanctification
c. Guanxi
d. dissemination
e. cultural embedding
ANS: A PTS: 1 DIF: Hard REF: p. 163
OBJ: 08-3
society
34. _____ represents the way a person learns his or her native culture.
a. Acculturation
b. Enculturation
c. Manipulation
d. Sanctification
e. Elaboration
OBJ: 08-3
society
35. Most of us don’t even realize or think about how we learned the culture in which we live because
that’s all we’ve ever known our entire lives. This way in which we learn our own native culture is
called _____.
a. acculturation
b. elaboration
c. enculturation
d. immersion
e. manipulation
OBJ: 08-3
society
36. The process by which consumers come to learn a culture other than their natural, native culture is
called _____.
a. patriotation
b. enculturation
c. climatation
d. acculturation
e. identification
OBJ: 08-3
society
37. John’s U.S. law firm transferred him to their office in Beijing, China for three years. During that time,
John came to learn the Chinese culture. What is the process by which John came to learn this new
culture called?
a. acculturation
b. enculturation
c. ex-patriotation
d. sanctification
e. elaboration
OBJ: 08-3
society
38. The degree to which consumers feel a sense of belonging to the culture of their ethnic origins is
known as _____.
a. ethnocentrism
b. imperialism
c. ethnic roots
d. acculturation
e. ethnic identification
OBJ: 08-3
society
39. Many immigrants that move to other countries often live by others from their native country. In fact,
some immigrants never learn the language of the new country, such as Cubans in south Florida in the
United States or Turks in Germany and France. This is because they feel a sense of belonging to the
culture of their ethnic origins, which is a phenomenon known as _____.
a. ethnocentrism
b. ethnic identification
c. the primacy effect
d. the recency effect
e. nostalgia
OBJ: 08-3
society
40. A belief among consumers that their ethnic group is superior to others and that the products that
come from their native land are superior to other products is called _____.
a. consumer imperialism
b. consumer introversion
c. ethnic identification
d. consumer ethnocentrism
e. ethnic cleansing
OBJ: 08-3
society
41. Many French people believe that French wine is superior to wine produced in any other country. This
is an example of _____.
a. consumer snobbery
b. consumer ethnocentrism
c. consumer imperialism
d. social distance
e. acculturation
OBJ: 08-3
society
42. Which of the following is an institution that is responsible for communicating the CSV through both
formal and informal processes from one generation to another?
a. family
b. school
c. church
d. media
e. all of these choices
ANS: E PTS: 1 DIF: Easy REF: p. 165
OBJ: 08-3
society
43. The process of learning by imitating others’ behavior is known as _____.
a. shaping
b. modeling
c. parroting
d. translation equivalence
e. transference
OBJ: 08-3
society
44. Habbas was not sure how to behave in a formal dinner with so many utensils, so he watched others
and imitated their behaviors. Just by watching, he learned that the really small fork was for the
shrimp cocktail and the next smallest fork was for his salad. He also learned that the bread plate on
the left was his and that his water was the one on the right. Learning in this manner is an example of
_____.
a. shaping
b. dialection
c. modeling
d. posturing
e. mirroring
OBJ: 08-3
society
45. _____ is a socialization process by which consumers’ behaviors slowly adapt to a culture through a
series of rewards and sanctions.
a. Modeling
b. Posturing
c. Mirroring
d. Shaping
e. Dialection
OBJ: 08-3
society
46. Most children learn the proper way to behave in various situations by being rewarded for proper
behavior and corrected or punished for improper behavior. Through rewards and punishments,
children learn that, while some behavior is appropriate in one setting, such as screaming and laughing
loudly on a playground, it is inappropriate for others, such as in church. This process of adapting to a
culture through a series of rewards and sanctions is referred to as _____.
a. shaping
b. stepping
c. posturing
d. modeling
e. molding
OBJ: 08-3
society
47. Which type of communication is the transfer of information through either the literal spoken or
written word?
a. primary communication
b. dialectic communication
c. transference communication
d. literal communication
e. verbal communication
OBJ: 08-4
society
48. Karen is learning about a foreign culture by examining the literal spoken and written word of that
culture’s language. On which element of communication is Karen concentrating?
a. verbal communication
b. nonverbal communication
c. primary communication
d. secondary communication
e. elemental communication
ANS: A PTS: 1 DIF: Easy REF: p. 167
OBJ: 08-4
society
49. Variations of a common language are called _____.
a. dialects
b. translations
c. slangs
d. primary communications
e. secondary communications
OBJ: 08-4
society
50. Which of the following exists when two phrases share the same precise meaning in two different
cultures?
a. equivocating
b. dialectic equivalence
c. meaning transfer
d. translational equivalence
e. elemental equivalence
OBJ: 08-4
society
51. A researcher is interested in conducting a survey in the United States and in Brazil, but she wants each
survey to be in each country’s native language. So she hires a graduate student from Brazil to
translate the survey into Portuguese and hires another one to translate it back into English to ensure
that the two surveys share the same meaning. Using this technique, called back translation, helps
researchers ensure _____.
a. translational equivalence
b. metric equivalence
c. nonverbal communication
d. verbal communication
e. verbal congruency
OBJ: 08-4
society
52. The state in which consumers are shown to use numbers to represent quantities the same way across
cultures is called _____.
a. translational equivalence
b. metric equivalence
c. elemental equivalence
d. numerical equivalence
e. primary equivalence
OBJ: 08-4
society
53. All of the following are elements of nonverbal communication EXCEPT _____.
a. time
b. symbols
c. space
d. etiquette
e. language
ANS: E PTS: 1 DIF: Hard REF: p. 169-170
OBJ: 08-4
society
54. _____ refers to the nonverbal communication cues by somatic (uncontrollable biological) responses.
a. Secondary communication
b. Subtle communication
c. Body language
d. Subliminal communication
e. Cue language
OBJ: 08-4
society
55. Facial expressions, posture, gestures, voice, and arm position are examples of _____.
a. verbal communication
b. subtle communication
c. primary communication
d. secondary communication
e. body language
OBJ: 08-4
society
56. Maria is teaching her children to say “please” and “thank you” and to say “sir” or “ma’am” when
speaking to adults. These customary mannerisms used in social situations that Maria is teaching her
children represent _____.
a. etiquette
b. Guanxi
c. persuasion
d. cultural distance
e. acculturation
OBJ: 08-4
society
57. Which of the following gives an idea of the total size of the consumer market in a country in terms of
total buying power?
a. gross domestic product (GDP)
b. consumer price index (CPI)
c. consumer behavior index (CBI)
d. cultural distance (CD)
e. purchasing power parity (PPP)
OBJ: 08-5
society
58. All of the following statements are true regarding China and India EXCEPT _____.
a. The key for marketers in providing to the typical Chinese or Indian consumer is to provide
a hedonic product to consumers because they are accustomed to elaborately designed
products.
b. The consumer demographics of India today compare favorably to those of the United
States in 1970.
c. The market potential for India and China is made clear in the fact that population is
assessed in billions rather than millions.
d. Even inexpensive products can mean a lot of revenue for a company selling to the large
populations of these two countries.
e. Chindia refers to the combined market and business potential of China and India.
OBJ: 08-5
society
59. The idea that marketing strategy may be global but the implementation of that strategy at the
marketing tactics level should be local is called _____.
a. guanxi
b. glocalization
c. acculturation
d. marketing adaptation
e. cultural distance
OBJ: 08-5
society
60. Coca-Cola markets its product using the same strategy worldwide, but changes are made when
implementing the marketing tactics to reflect the local culture, such as the ethnicity of the people in
their ads and the music used in jingles. This is an example of _____.
a. imperialism
b. Guanxi
c. glocalization
d. cultural distance
e. acculturation
OBJ: 08-5
society
WALMART SCENARIO
Walmart is the largest retailer in the world with more than 4,000 stores located in 14 countries outside
the United States. The corporation has learned, sometimes the hard way, that the Walmart business
model cannot be transferred to every country it enters due to cultural differences. For example, the
retailer ran into difficulties in many European countries because stores are not open 24-hours a day,
seven days a week like Walmart Supercenters are in the United States. When negotiating the purchase
of Trust-Mart stores in China, the company had to develop relationships with executives before even
discussing business opportunities. Finally, Walmart varies marketing mixes based on local tastes,
cultures, and economic conditions.
61. Refer to Walmart Scenario. Which term is used to describe the way of doing business in which parties
must first invest time and resources in getting to know one another, and becoming comfortable with
one another before consummating any important deal, such as the purchase of the Trust-Mart chain?
a. dostat
b. renquing
c. Guanxi
d. glocalization
e. acculturation
OBJ: 08-2
society
62. Refer to Walmart Scenario. If you were hired by Walmart and were sent to manage stores in another
country, by which process would you learn the culture of that country?
a. enculturation
b. acculturation
c. immersion
d. glocalization
e. translational equivalence
OBJ: 08-3
society
63. Refer to Walmart Scenario. In the United States, Walmart has a incentive system to encourage
employees to stand out among their peers and rewards them for doing so. This has worked well in
the United States because the U.S. scores high on individualism as a CSV. In which of the following
other countries would this incentive system work well?
a. Australia
b. Brazil
c. Russia
d. Pakistan
e. all of these choices
OBJ: 08-2
society
64. Refer to Walmart Scenario. Walmart has not yet expanded into Russia, perhaps because the total size
of the consumer market in terms of buying power is so much lower than other countries. The term
used to describe this purchasing power is known as _____.
a. foreign direct investment (FDI)
b. Guanxi
c. cultural distance (CD)
d. purchasing power parity (PPP)
e. dostat
ANS: D PTS: 1 DIF: Hard REF: p. 173
OBJ: 08-5
society
65. Refer to Walmart Scenario. Unlike Walmart stores in the United States, stores in China have rather
large seafood markets located within each store. Consumers can purchase squid and octopus for
dinner because consumers there like to eat that. So while Walmart’s marketing strategy may be
global, it varies marketing tactics at the local level to better serve its customers. Walmart is practicing
_____.
a. Guanxi
b. dostat
c. glocalization
d. enculturation
e. acculturation
OBJ: 08-5
society
ESSAY
1. What is consumer culture, how does it influence consumer value, and what are the functions it
performs for consumers?
ANS:
Consumer culture can be thought of as commonly held societal beliefs that define what is socially
gratifying. Culture shapes value by framing everyday held beliefs. Culture performs important
functions for consumers. These function shape the value of consumer activities and include:
(1) Giving meaning to objects.
(2) Giving meaning to activities.
(3) Facilitating communication.
TOP: AACSB Reflective Thinking| AACSB Communication| CB&C Model Customer| R&D
Knowledge of human behavior & society
2. Explain the meaning, if any, your native culture gives to the following and describe the traditions, if
any, associated with the object or activity:
(1) ring
(2) school graduation
(3) a specific number
(4) four-leaf clover
(5) red dot on forehead
(6) head covering
(7) love
(8) a specific type of animal
ANS:
Students’ answers will vary, but some examples of meaning placed on the following are:
(1) ring - engagement/wedding ring, graduation ring. Each has some sort of ceremony associated with
it.
(2) school graduation - students wear caps and gowns.
(3) number - 13 is an unlucky number, 8 is considered lucky in China, and 666 is associated with the
devil.
(4) four-leaf clover - means good luck if you find one.
(5) red dot on forehead - has no meaning in the U.S., but in other cultures, such as India, it signifies
that a woman is married.
(6) head covering - not a big deal in the U.S., but hats worn by athletic teams, police officers,
firefighters, and military personnel are part of a uniform. Burkas worn by women in other cultures
protect women.
(7) love - when we love someone, we give them our heart, but in other cultures it could be our liver.
(8) dog - in the U.S., a black cat crossing your path is unlucky and a dog is a “man’s best friend.” In
other cultures a dog is considered unclean, while in others, a dog could be dinner. The Chinese use
animals to symbolize a year (e.g., year of the rat, rabbit, etc.).
3. Define cultural norm and cultural sanction and discuss the cultural norms and sanctions regarding
behavior on social networking sites, such as Facebook and Twitter.
ANS:
Cultural norm refers to rule that specifies the appropriate behavior in a given situation within a
specific culture. A cultural sanction refers to the penalties associated with performing a nongratifying
or culturally inconsistent behavior. Students will probably have much to say about social networking
netiquette and the potential sanctions, such as de-friending someone who doesn’t conform to the norm.
4. Define core societal values (CSV) and discuss any three described in Chapter 8.
ANS:
Core societal values (CSV) represent a commonly agreed upon consensus about the most preferable
ways of living within a society. Five of them are discusses in this chapter, and students can discuss
any three:
(1) Individualism - the extent to which people are expected to take care of themselves and their
immediate family. Highly individualistic societies place high value on self-reliance, individual
initiative, and person achievement. In contrast, nations with low individualism are seen as
high in collectivism, which refers to the extent to which an individual’s life is intertwined with
a large cohesive group.
(2) Masculinity - captures distinctions existing in societies based on mannerisms typically
associated with male traits such as valuing assertiveness and control over traditional feminine
traits such as caring, conciliation, and community.
(3) Power distance - the extent to which authority and privilege are divided among different
groups within society and the extent to which these facts of life are accepted by the people
within the society. Social class distinctions become a very real issue among consumers in
high-power-distance nations.
(4) Uncertainty avoidance - the extent to which a culture is uncomfortable with things that are
ambiguous or unknown. Consumers high in uncertainty avoidance prefer the known, avoid
taking risks, and like life to be structured and routine.
(5) Long-term orientation - reflects values consistent with Confucian philosophy and a
prioritization of future rewards over short-term benefits. Consumers with this orientation
value thriftiness and perseverance as well as maintenance of long-term relationships.
PTS: 1 DIF: Moderate REF: p. 156-161 OBJ: 08-2
5. How is culture learned? List the quartet of institutions responsible for communicating CSVs and
discuss which one or ones had the greatest influence on your learning of your native culture and/or a
new culture.
ANS:
Enculturation represents the way a person learns his or her native culture. In other words,
enculturation represents the way in which a consumer learns and develops shared understandings of
things with his or her family. Acculturation is the process by which consumers come to learn a
culture other than their natural, native culture-that is, the culture one may adopt when exposed to a
new set of CSVs.
The quartet of institutions responsible for communicating the CSV through both formal and informal
processes are: (1) family, (2) school, (3) church, and (4) media. Students’ answers regarding which
institutions had the greatest impact on learning their culture will vary. Most likely, though, students
will probably say that their family had the greatest impact on them.
6. List the fundamental elements of verbal and nonverbal communication. Describe a recent interaction
you had with another person and discuss the verbal and nonverbal communication that took place.
ANS:
Verbal communication refers to the transfer of information through either the literal spoken or written
word. Nonverbal communication refers to information passed through some nonverbal act.
Elements of nonverbal elements include time, mannerisms/body language (i.e., facial expressions,
posture, arm/leg position, skin conditions, and voice), space, etiquette/manners, relationships,
agreement, and symbols.
Students’ examples will vary.

7. Explain the concept of glocalization and give and example of how marketers can apply it.
ANS:
Glocalization represents the idea that the marketing strategy may be global but the implementation of
that strategy at the marketing tactics level should be local.
Students’ examples will vary, but they will probably discuss familiar brands, such as Coca-Cola or
McDonald’s. McDonald’s, for example, maintains the same marketing strategy around the world
offering fast food at affordable prices, but there are variations depending on the country it is located.
For example, in India, McDonald’s serves mutton burgers instead of beef burgers because most
consumers there do not consume beef.

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