International MKT Ch. 14
List, in order, from the beginning, the steps a firm follows to obtain ISO certification.
1. the company 2. the assesor 3. a highly 4. management 5. accreditation
What are the consequences of using technology in factories or industries? (Check all that apply.)
Access to inexpensive labor is less important. Access to raw materials is less important. Manufacturing is becoming more science-oriented.
Identify an accurate statement about volatility of industrial demand.
Avoiding layoffs helps firms to cope with fluctuations in the markets.
Stage 5, the age of mass consumption
Businesses design products and hone their manufacturing techniques.
How does total quality management start?
By talking to customers
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.)
Disregard market share as a strategic goal. Spend less on advertising when demand for a product is high. During periods of great demand for a product, increase prices more rapidly.
True or false: Demand in international industrial markets is less volatile than demand in consumer markets.
False
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.
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.
What benefits do consumer product firms derive by marketing internationally? (Check all that apply.)
Life cycles of products can be extended. Competition with other companies can be maintained. Sales and profits can be enhanced.
What are best practices for creating an website that supports international marketing? (Select all that apply.)
Offer multilingual access to website content. Provide attractive website designs. Strategically market the website.
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.
Stage 4, drive to maturity
Recently industrialized countries make inexpensive consumer and industrial products.
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
Stage 3, takeoff
Semidurable and nondurable consumer goods are manufactured. Customers want to buy equipment and supplies for their business operations.
Stage 2, preconditions for takeoff
Some manufacturing starts up, and infrastructure is being built to support it.
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.
Stage 1, the traditional society
The most significant industrial demand is based on extraction of natural resources.
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.
In the context of relationship marketing, identify the primary functions of global account managers. (Check all that apply.)
adapting as situations change working in harmony with the customer's personnel collecting information
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
Which business services companies were among the first to launch branch offices as "client followers" in foreign countries? (Check all that apply.)
banking accounting advertising
An advantage of online trade shows is that
businesses and customers can connect with each other in an affordable way.
A U.S.-based law firm establishes a branch office in the United Kingdom. A U.K.-based steel manufacturing company hires the law firm to take care of its legal issues. The law firm is an example of a(n)
client follower.
When attempting to design equipment that will be successful in all parts of the world, a company should anticipate extreme variations in
climate.
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.
ISO 9000 standards can affect businesses in the European Union in what ways?
competitively legally
Even in high-tech nations, perceptions of a product's quality can vary, depending on the
cultural group.
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
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.
Identify the cultures in which it is particularly important to focus on developing long-term business relationships with clients. (Check all that apply.)
high-context cultures collectivistic cultures
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.
ISO 9000 is a system of
international industrial standards.
Companies that sell industrial products globally often encounter problems caused by
lack of common manufacturing standards.
Which of the following factors form a customer's perception of quality? (Check all that apply.)
level of technology reflected in a product support services and follow-through prices of rival products
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.
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
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
Identify factors that have enabled businesses to deliver spare parts and after-sales technical service swiftly and easily. (Check all that apply.)
the Internet toll-free telephone services
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.
The rapid growth of international business services has been hampered by
the imposition of direct and indirect trade barriers. restrictions that prevent foreign companies from competing in domestic markets.
The designs of industrial products offered by suppliers need to be regularly updated because
the markets are always changing, and so are the customer's needs.
Demand in global industrial markets is influenced by
the technological level of products and services. volatility. each country's economic and industrial stage of development.
List in order the stages of Rostow's five-stage model of economic development, beginning with the first stage.
the traditional society preconditions for takeoff takeoff drive to maturity the age of mass consumption
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.
The increasing interest in ISO 9000 certification is driven largely by
what customers require.