MKTG 4280 Ch. 14 McGraw-Hill Connect
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
True or false: Demand in international industrial markets is less volatile than demand in consumer markets.
False. Demand in international industrial markets is more volatile than demand in consumer markets.
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.
In developing economies, the ______ is an important factor in marketing.
price-quality relationship
Identify a factor that affects demand in industrial markets.
professional buyers acting in concert
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
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.
Even in high-tech nations, perceptions of a product's quality can vary, depending on the
cultural group.
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
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.
True or false: Features that a customer does not want in an industrial product can enhance the product's quality rating.
false. A product's quality rating is determined by how well it meets the needs of customers.
True or false: ISO 9000 certification guarantees that a manufacturer produces a high-quality product or service.
false. ISO 9000 is a certification of the production process only and does not guarantee that the product itself is of high quality.
True or false: The volatility of industrial demand remains unaffected by derived demand.
false. In industrial markets, professional buyers tend to act in concert, and derived demand accelerates changes in markets.
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 privatization of government-owned enterprises has _____.
increased demand for products that are technologically advanced
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.
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.
What are the consequences of using technology in factories or industries? (Check all that apply.)
- Access to raw materials is less important. - Manufacturing is becoming more science-oriented. - Access to inexpensive labor is less important.
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.
What benefits do consumer product firms derive by marketing internationally? (Check all that apply.)
- Sales and profits can be enhanced. - Competition with other companies can be maintained. - Life cycles of products can be extended.
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
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
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.
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
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
ISO 9000 standards can affect businesses in the European Union in what ways?
-competitively - legally
Click and drag on elements in order List in order the stages of Rostow's five-stage model of economic development, beginning with the first stage. Instructions
1. The Traditional Society 2. Preconditions for Takeoff 3. Takeoff 4. Drive to maturity 5. The Age of Mass Consumption
List, in order, from the beginning, the steps a firm follows to obtain ISO certification. Instructions
1. The company asks a certifying org. to audit its key business operations 2. The assessor asks numerous questions about various aspects of the company 3. A highly detailed plan of action is drafted 4. Management and the assessor work together to draw up a quality manual, which customers will use to verify the company's credibility 5. Accreditation is granted, the company receives its certification, and evaluations are conducted periodically thereafter.
List in order the stages of Rostow's five-stage model of economic development, beginning with the first stage. Instructions
1. the traditional society 2. preconditions for takeoff 3. Takeoff 4. drive to maturity 5. the age of mass consumption
Match each stage of Rostow's five-stage model of economic development in the left column to its corresponding description in the right column. Instructions
1. the traditional society = The most significant industrial demand is based on extraction of natural resources. 2. preconditions for takeoff = Some manufacturing starts up, and infrastructure is being built to support it. 3. Takeoff = Semidurable and nondurable consumer goods are manufactured. Customers want to buy equipment and supplies for their business operations. 4. drive to maturity = Recently industrialized countries make inexpensive consumer and industrial products. 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.
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.
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 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
IS0 9000 certification
often increases a company's stock price.
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 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.
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.
True or false: Customer training programs help buyers by enabling them to operate and maintain technical equipment on their own.
true. Training programs help buyers by enabling them to acquire the required skills for operating and maintaining technical products.
A product with more features
usually costs more
