Scenario 7-4 It Doesn't Matter Where in the World You Are or Are

question 17

Multiple Choice

Scenario 7-4
It doesn't matter where in the world you are or how well off, the fast food culture has become a way of life for all of us. According to the latest findings from ACNielsen, the world's leading market research firm, nearly all Hong Kong people (97%) are fast food patrons. A fast food culture has shaped the lifestyles of us all, and with fast food operators introducing healthier options in the form of salads and low carb meals, consumers today have greater choice than ever before.
While building a good brand image is close to the heart of most marketers, it is worth noting that brand image appears to have little influence on consumer choice of take away restaurants. Brand Image ranked the least important among all respondents. Among the international fast food chains and local operators, McDonalds was the world's most popular with 68 percent of people in the 28 major countries picking it as the first choice for take away food. KFC ranks No.2 at 32 percent and Pizza Hut ranks No.3 at 29 percent. Nevertheless local fast food chains also have a strong foothold taking Hong Kong as an example, 62 percent also chose local operators as their choice of fast food restaurants, and as ACNielsen I-Scan ImpulseTM indicates those local chains include Caf'de Coral and Maxim's. (Asians the World's Greatest Fast Food Fans.Two thirds of Hong Kongers frequent at least once a week, December 23, 2004. http://acnielsen.com.)
-(Scenario 7-4) In an attempt to get a fix on whether or not to enter this market, an advertiser performs an analysis of economic conditions. Which piece of information is this analysis most likely to reveal?

• A) Television stations often charge a higher rate for foreign-owned enterprises to advertise.
• B) 37.3 percent of the total population is between the ages of 15 and 34.
• C) Chinese consumer trust in advertising is among the highest in the world.
• D) Most Chinese consumers have annual incomes of less than $1000.

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Definitions:

Expected Return

The anticipated profit or loss from an investment, considering all possible outcomes weighted by their probabilities.

Top Manager

A senior executive responsible for overseeing the overall strategy and policy implementation of an organization.

Entrepreneur

An individual who organizes and operates a business venture, taking on greater than normal financial risks in order to do so.

Existing Company

A business entity that has already been established and is operating in the market.