MKTG 445 (Knight) - Chapter 14

Identify the advantages associated with trade shows. (Check all that apply.) Multiple select question. A company can begin to develop a relationship with distributors, agents, and suppliers. Products can be demonstrated to customers. Foreign rivals can be prevented from selling their products in the domestic market. Many customers cannot be contacted in any other way.

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

What are the consequences of using technology in factories or industries? (Check all that apply.) Multiple select question. Access to raw materials is less important. Access to inexpensive labor is less important. International competitiveness among companies is decreasing. Manufacturing is becoming more science-oriented.

Access to raw materials is less important. Access to inexpensive labor is less important. Manufacturing is becoming more science-oriented.

Which of the following generates demand for client followers? Multiple choice question. growth of local markets growth of global markets ethnocentrism expropriation

growth of global markets

developed countries with advanced tech infrastructure readily adopt products like automation systems or AI software ex: the U.S. and South Korea invest heavily in high-tech industrial machinery to maintain productivity

high-tech markets

The privatization of government-owned enterprises has Blank______. Multiple choice question. increased demand for products that are technologically advanced decreased a nation's preference for self-managed industries increased expenditure on labor and raw materials decreased demand for domestic consumer goods and services

increased demand for products that are technologically advanced

ISO 9000 is a system of Multiple choice question. quality control for specific services. quality control for specific products. international advertising standards. international industrial standards.

international industrial standards.

ISO 9000 standards were established to certify and register a Multiple choice question. firm's promotional strategy. manufacturer's quality system. retailer's quantity system. buyer's investment strategy.

manufacturer's quality system.

ISO 9000s were designed to ensure that Multiple choice question. global health care organizations can receive guidelines to respond to various disasters. a manufacturer's product or service can be guaranteed. manufacturers would establish quality control systems. compatible international environmental standards can be established.

manufacturers would establish quality control systems.

"Standardization versus adaption" is a dilemma that arises mostly when a business is Multiple choice question. manufacturing industrial goods. marketing industrial products. promoting foreign services. marketing consumer goods.

marketing consumer goods.

IS0 9000 certification Multiple choice question. applies only within the European Union. often increases a company's stock price. was created as part of the Geneva Convention. applies to specific products.

often increases a company's stock price.

In developing economies, the Blank______ is an important factor in marketing. Multiple choice question. design-distribution ratio advertising agency price-quality relationship commercial-industrial relationship

price-quality relationship

Identify a factor that affects demand in industrial markets. Multiple choice question. professional buyers acting in concert manufacturers emphasizing cultural differences heterogeneity of products less competition

professional buyers acting in concert

The expansion of global business services has been seriously threatened by Multiple choice question. cultural barriers. authoritarianism. protectionism. psychosocial clashes.

protectionism

high-quality industrial products lead to customer satisfaction and loyalty poor quality products can lead to safety hazards, legal issues, and damage to brand reputation

quality defined by buyer

Focus on customer satisfaction, continuous improvement, and employee involvement importance of quality certifications (ISO standards)

quality expectations in industrial markets

(B2B Vs B2C Key Differences) demand in industrial markets is by nature more volatile. Industrial firms can take several measures to manage this inherent volatility, such as maintaining broad product lines and broad market coverage, raising prices faster and reducing advertising expenditures during booms, ignoring market share as a strategic goal, eschewing layoffs, and focusing on stability.

volatility

Industrial Markets vs Consumer Markets Key Differences _______: industrial demand fluctuates more ____ __ ______ ______: demand varies by development stage ______ _____: Product suitability depends on tech infrastructure _______________: Marketing across foreign markets more similar than different

volatility Impact of Economic Development technology level standardization

Demand in global industrial markets is influenced by Multiple select question. stages of cultural development. volatility. each country's economic and industrial stage of development. the technological level of products and services.

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

In the context of relationship marketing, identify the primary functions of global account managers. (Check all that apply.) Multiple select question. designing and modifying new products working in harmony with the customer's personnel collecting information adapting as situations change

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

tied to business cycles and macroeconomic trends highly sensitive to industry-specific changes (construction, manufacturing, cycles) can shift rapidly due to geopolitical risk, raw material availability, or tech disruption

characteristics of volatile demand

Even in high-tech nations, perceptions of a product's quality can vary, depending on the Multiple choice question. cultural group. government agency. legal group. labor union.

cultural group.

The perception of quality rests solely with the Multiple choice question. retailer. advertiser. customer. manufacturer.

customer

demand dependent on another source ex: airlines' demand is closely tied to the economic activities of other industries and sectors

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 Blank______ economy. Multiple choice question. pseudo overdeveloped developing developed

developing

Identify a trend that has expanded the market for high-tech products. Multiple choice question. political changes in the Middle East cultural changes in South America economic growth in Africa economic growth in Asia

economic growth in Asia

A nation's economic development can be assessed by examining the quality of its Blank______. Multiple choice question. psychosocial value scale educational system political system cultural beliefs

educational system

Consumer product firms enter global markets to Multiple choice question. produce goods and services for industrial customers. dampen the volatility of industrial markets. expand their customer base across countries. create huge, cyclical swings in demand.

expand their customer base across countries.

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

false

create long-term value, build trust, and drive repeat sales across international markets

B2B support services

List in order the stages of Rostow's five-stage model of economic development, beginning with the first stage. takeoff preconditions for takeoff the traditional society the age of mass consumption drive to maturity

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 Stage 1, the traditional society: Stage 2, preconditions for takeoff: Stage 3, takeoff: Stage 4, drive to maturity: Stage 5, the age of mass consumption: Recently industrialized countries make inexpensive consumer and industrial products. some manufacturing starts up, and infrastructure is being build to support it The most significant industrial demand is based on extraction of natural resources. Semidurable and nondurable consumer goods are manufactured. Customers want to buy equipment and supplies for their business operations. Business design products and hone their manufacturing techniques.

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? Multiple choice question. By talking to customers By commanding distributors By directing advertisers By interacting with manufacturers

By talking to customers

Which business services companies were among the first to launch branch offices as "client followers" in foreign countries? (Check all that apply.) Multiple select question. banking apparel manufacturing accounting advertising

banking accounting advertising

Identify a scenario that best describes the influence of after-sales service on demand for technical products. Multiple choice question. Consumers buy cars from a particular manufacturer because that manufacturer has reliable maintenance facilities. Consumers buy washing machines from a particular manufacturer due to its attractive designs and models. Consumers prefer cellphones manufactured by Keys Inc. because they are inexpensive. Consumers buy music systems manufactured by Screens Inc. because they have good sound quality.

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

Stage 1: Traditional Society Stage 2: Pre-Conditions for Take-Off Stage 3: Take-Off Stage 4: Drive to Maturity Stage 5: High Mass Consumption

Economic Growth Model

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

False

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. Multiple choice question. The company's products can be shielded from view of other competitors High import and export taxes can be avoided Relationships with potential distributors and franchisees can get started Foreign competitors can be prevented from selling their products in the same market

Relationships with potential distributors and franchisees can get started

Identify an accurate statement about a consumer's preference for one company's technical products over another's. Multiple choice question. It is not affected by a country's industrialization level. It is influenced by the firm's cultural diversity. It is affected by a seller's availability to install the products. It is not influenced by the dealer's inclination to provide training.

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

products with high-tech requirements often sell better in markets with robust technology infrastructure

Level of Technology

What benefits do consumer product firms derive by marketing internationally? (Check all that apply.) Multiple select question. Life cycles of products can be extended. Sales and profits can be enhanced. Volatility of industrial markets can be dampened. Competition with other companies can be maintained.

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

A product with more features Multiple choice question. has an unreliable quality certificate. usually costs more. always has a creative brand name. is usually easy to handle.

usually costs more

(Economic Growth Model) the most important industrial demand will be associated with natural resources extraction Agriculture-based, limited technology Africa and MENA (LLDCs)

Stage 1: Traditional Society

(Economic Growth Model) Manufacturing is beginning. Primary needs will be related to agriculture and infrastructure development - for example, telecommunications, construction, and power generation equipment and expertise. Vietnam would fit this category (LDCs)

Stage 2: Pre-Conditions for Take-Off

(Economic Growth Model) Manufacturing of both semidurable and nondurable consumer goods has begun. Goods demanded relate to equipment and supplies to support manufacturing. Russian and Eastern European countries fit this category. China, India, Vietnam (LDCs)

Stage 3: Take-Off

These are industrialized economies such as South Korea and the Czech Republic. Their focus is more on low-cost manufacturing of a variety of consumer and some industrial goods. They buy from all categories of industrial products and services. South Korea, Thailand (NICs)

Stage 4: Drive to Maturity

These are countries where design activities are going on and manufacturing techniques are being developed, and they are mostly service economies. Japan and Germany are obvious examples of countries that purchase the highest-technology products and services, mostly from other suppliers and consumer products from Stage 3 and 4 countries US, Canada, Japan Germany (MDCs)

Stage 5: High Mass Consumption

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? Multiple choice question. The extra capacity is not required or expected. The intellectual property right is not protected. Its efficiency is low. Its advertising expenditure is high.

The extra capacity is not required or expected.

ISO 9000 certification tends to improve Multiple choice question. a firm's general performance. customer service within corporations. employees' ability to be promoted within the companies where they work. a firm's packaging cost.

a firm's general performance.

ISO 9000 certification tends to improve Multiple choice question. a firm's general performance. employees' ability to be promoted within the companies where they work. a firm's packaging cost. customer service within corporations.

a firm's general performance.

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 promotion of consumer services. adaptation of consumer goods. adaptation of industrial products. expropriation of business services.

adaptation of industrial products.

In international industrial markets, the level of technology of products and services Multiple choice question. is independent of industrialization. affects the appropriateness of their sale in some countries. remains unaffected by volatility and economic development of market. remains the same for all nations.

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. Multiple choice question. packaging after-sales service psychological attributes product design

after-sales service

many countries adopt advanced tech without skilled personnel includes; delivery, installation, ongoing maintenance often more profitable than the initial product sale drives brand loyalty and repeat purchases

after-sales service

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 Multiple choice question. green marketing. the price-quality relationship. derived demand. relationship marketing.

relationship marketing.

The rapid growth of international business services has been hampered by multiple select restrictions that prevent foreign companies from competing in domestic markets. competition from aggressive infant industries. the imposition of direct and indirect trade barriers. prohibitions on exporting goods from domestic markets.

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 Multiple choice question. retailer's marketing expenditure. manufacturer's advertising cost. seller's willingness to provide training. seller's willingness to advertise products.

seller's willingness to provide training.

Companies that offer services to other businesses often enter foreign markets so that they can Multiple choice question. minimize after-sales technical services. use their international offices as a tax write-off. service their local clients abroad. minimize the flow of foreign goods into domestic markets.

service their local clients abroad.

diversity across products and global markets (broad product lines and geographic market coverage) use flexible pricing and scalable marketing programs (dynamic pricing adjustments and adjust advertising expenditures) emphasize long-term customer relationships over short-term share gains

strategies to manage volatility

It is essential for companies that wish to compete worldwide to incorporate Blank______ into their strategy. Multiple choice question. total quality management micromanagement pseudomanagement impression management

total quality management

Much of the world's desire for international services is driven by Multiple choice question. trade. cultural diversity. political clashes. subornation.

trade

firms enter foreign markets to support clients locally builds trust and loyalty in B2B relationships drives demand through local presence and word-of-mouth

trade-created service