Chapter 14

True or false: Features that a customer does not want in an industrial product can enhance the product's quality rating.

False

True or false: ISO 9000 certification guarantees that a manufacturer produces a high-quality product or service.

False

True or false: The volatility of industrial demand remains unaffected by derived demand.

False

Identify a difference between industrial goods customers and consumer goods customers.

Industrial goods customers desire profit, whereas consumer goods customers desire satisfaction.

As in all areas of international business, the _____ is facilitating relationship building and maintenance in new ways.

Internet

Identify an accurate statement about a consumer's preference for one company's technical products over another's.

It is affected by a seller's availability to install the products.

Identify a scenario that illustrates the effect of climate on product design.

Only eight-wheeled vehicles are sold in Gumorah because it is a desert region.

Identify the advantages associated with trade shows. (Check all that apply.)

Products can be demonstrated to customers. Many customers cannot be contacted in any other way. A company can begin to develop a relationship with distributors, agents, and suppliers.

An aircraft manufacturing company launches a new aircraft model. Due to poor market response, the company nearly stops manufacturing it. However, the company later decides to display the model in a trade show. Identify a benefit that the company will reap by attending the trade show.

Relationships with potential distributors and franchisees can get started

The demand for high-tech products has increased because of the disintegration of the

Soviet empire.

Why is a product that generates 40,000 units per hour, when customers need only 10,000 units per hour, considered to be of low quality?

The extra capacity is not required or expected.

True or false: Customer training programs help buyers by enabling them to operate and maintain technical equipment on their own.

True

True or false: New industrial owners are investing a great deal of money in the latest technology because of privatization.

True

Consumer goods customers

Use goods in their final form

Industrial goods customers

Use goods to create other products and services

In which of the following circumstances are online trade shows a useful substitute for attending a live trade show? (Check all that apply.)

When economic situations are difficult When political situations are difficult

ISO 9000 certification tends to improve

a firm's general performance.

During the first three stages of economic development, countries use technological advancements to

accelerate their industrialization process

A company supplies printing machines to newspaper agencies across the world. Though the product supplied to different countries is standardized, the product must be customized somewhat to suit the requirements of different agencies. This scenario is an example of

adaptation of industrial products.

Which business services companies were among the first to launch branch offices as "client followers" in foreign countries? (Check all that apply.)

advertising accounting banking

In international industrial markets, the level of technology of products and services

affects the appropriateness of their sale in some countries.

Waves Inc. and Nica Inc. are two firms that manufacture laptops for the same market. However, buyers prefer the laptops manufactured by Waves Inc. because of the easy accessibility of company-owned repair outlets. In this scenario, identify a factor that has influenced buyers' preference.

after-sales service

International small-package door-to-door express air services and the Internet have made _______ almost instantly available.

after-sales technical service

An advantage of online trade shows is that

businesses and customers can connect with each other in an affordable way.

Identify the cultures in which it is particularly important to focus on developing long-term business relationships with clients. (Check all that apply.)

collectivistic cultures high-context cultures

The managers of a multinational pharmaceutical firm are direct and professional in their approach toward their clients. However, they instruct local managers in Surasia to focus on developing relations based on trust with their existing and potential clients. These instructions are possibly given because Surasia is located in a culture that is

collectivistic.

Countries purchase high-tech products during the first three stages of industrial development so they can

compete in global markets.

The perception of quality rests solely with the

customer.

A rise in the number of students going overseas for higher education has increased the popularity of social networking sites because students need an affordable medium to keep in touch with their friends and families. Which concept applies to this scenario?

derived demand

Rapid industrialization has accelerated the demand for steel and iron in Isotola, a developing country. This strengthened demand has led to the establishment of more steel and iron manufacturing plants in Isotola. This scenario is an example of

derived demand.

When a demand depends on another source, it is known as

derived demand.

A tractor manufacturer stops supplying tractors to farmers in Parain because of the availability of low-cost labor there and the consequent lack of demand for tractors. Because per capita income in Parain is low, workers willingly work for minimal wages. In this scenario, low-cost labor is easily available in Parain because it has a _____ economy.

developing

A country's industrial market can be estimated by ascertaining its level of _____ development.

economic

Identify a trend that has expanded the market for high-tech products.

economic growth in Asia

A nation's economic development can be assessed by examining the quality of its

educational system.

Consumer product firms enter global markets to

expand their customer base across countries.

A thorough audit for ISO 9000 recertification is completed every

four years.

Which of the following generates demand for client followers?

growth of global markets

The international market for goods and services required in the production sector is affected significantly by an environmental factor. This factor is

how industrialized the country has become.

IS0 9000 certification helps buyers

identify various classes of suppliers

The privatization of government-owned enterprises has _____

increased demand for products that are technologically advanced

ISO 9000 is a system of

international industrial standards.

Global standards for industrial products are being developed by

international organizations.

Companies that sell industrial products globally often encounter problems caused by

lack of common manufacturing standards.

ISO 9000 standards can affect businesses in the European Union in what ways?

legally competitively

Which of the following factors form a customer's perception of quality? (Check all that apply.)

level of technology reflected in a product prices of rival products support services and follow-through

In the industrial products market, the primary goal of buyers is

making considerable profit.

Identify a measure that restricts data transmission to foreign countries.

mandating tariffs on the transmission of information

ISO 9000 standards were established to certify and register a

manufacturer's quality system.

ISO 9000s were designed to ensure that

manufacturers would establish quality control systems.

"Standardization versus adaption" is a dilemma that arises mostly when a business is

marketing consumer goods.

To succeed in industrial goods markets, products must

meet current market requirements

IS0 9000 certification

often increases a company's stock price.

Which of the following are key drivers of success and failure in knowledge-based services such as consulting, engineering, and education? (Check all that apply.)

personnel issues intellectual property rights

In developing economies, the ______ is an important factor in marketing

price-quality relationship

Identify a factor that has been generating global sales of industrial products.

privatization

Identify a factor that affects demand in industrial markets.

professional buyers acting in concert

The Internet helps companies use relationship marketing to

promote online business-to-business commerce.

The expansion of global business services has been seriously threatened by

protectionism.

A laptop manufacturing company shares information about its progress online to reach out to its prospective clients and franchisees. It also provides links to its inventories and catalogs. This scenario is an example of

relationship marketing

How does total quality management start?

By talking to customers

What benefits do consumer product firms derive by marketing internationally? (Check all that apply.)

Competition with other companies can be maintained. Life cycles of products can be extended. Sales and profits can be enhanced.

Identify a scenario that best describes the influence of after-sales service on demand for technical products.

Consumers buy cars from a particular manufacturer because that manufacturer has reliable maintenance facilities.

Identify a scenario that best describes derived demand in industrial markets.

Demand for power supply accelerates the building of more hydroelectric power plants.

Identify the measures that industrial firms should take to manage volatility in demand. (Check all that apply.)

During periods of great demand for a product, increase prices more rapidly. Spend less on advertising when demand for a product is high. Disregard market share as a strategic goal.

A law has recently been passed in the country of Murivia. This law permits government agencies in Murivia to inspect files of multinational firms that have business connections with other countries. In this scenario, identify a trade barrier that has been imposed.

restriction on transmitting data to foreign nations

The rapid growth of international business services has been hampered by

restrictions that prevent foreign companies from competing in domestic markets. the imposition of direct and indirect trade barriers

An important factor that decides if a consumer wishes to buy technical products from a particular company is the

seller's willingness to provide training.

Companies that offer services to other businesses often enter foreign markets so that they can

service their local clients abroad.

Some countries are fast-forwarding through the stages of economic development by making use of

technology.

Enormous problems are created for the expansion of the _____ industry due to vast differences in standards among countries.

telecommunications

When marketing technological products globally, customer training is important because

the company that buys the product might not have employees who know how to use it.

Maintaining a diverse portfolio of market coverage helps a business

thrive during periods of fluctuating industrial demand.

Identify factors that have enabled businesses to deliver spare parts and after-sales technical service swiftly and easily. (Check all that apply.)

toll-free telephone services the Internet

It is essential for companies that wish to compete worldwide to incorporate ______ into their strategy.

total quality management

Before passage of the GATT and NAFTA free-trade agreements,

trade in services was governed by a few international rules emphasizing "fair play."

Much of the world's desire for international services is driven by

trade.

A product with more features

usually costs more

Demand in global industrial markets is influenced by

volatility. the technological level of products and services. each country's economic and industrial stage of development.

The increasing interest in ISO 9000 certification is driven largely by

what customers require.

In the context of relationship marketing, identify the primary functions of global account managers. (Check all that apply.)

working in harmony with the customer's personnel collecting information adapting as situations change