Deck 13: Products and Services for Businesses

Question 1

Adam Thomas' company has just invented a product that will reduce the time it takes to construct a new home by one-third.However,his company's product is not doing well in third world countries.The reason is probably that laborsaving features are of little importance when time has limited value and labor is plentiful.

Answer 1

True

Question 2

According to the text recent studies have demonstrated that perceptions of industrial product quality also can vary across per capital income levels.

Answer 2

False

Question 3

For managers selling capital equipment and big-ticket industrial services,understanding the concept of derived demand is absolutely fundamental to their success.

Answer 3

True

Question 4

Good quality,as perceived by highly industrialized and less-industrialized countries,is basically the same.

Question 5

Derived demand can be defined as demand that comes from the psychological aspects of market forces.

Question 6

For firms producing products and services for industrial markets,a chief reason for venturing abroad is the prospect of high profits with little risk.

Question 7

A country is able to leap several stages of economic development by using technology as economic leverage.

Question 8

The largest category (percentage of total)of U.S.services exported annually is found in the financial services category.

Question 9

One of the ways that an industrial firm can manage against the inherent volatility of the industrial sector is to maintain broad product lines.

Question 10

One of the trends that have spurred demand for technologically advanced products is the disintegration of the Soviet empire.

Question 11

With respect to Rostow's five-stage model of economic development,countries in Stage 5 (the age of mass consumption)are mostly service economies.

Question 12

Compared to practices in product markets,protectionism is much less prevalent in international services markets.

Question 13

One factor contributing to the greater similarity among industrial goods customers than among consumer goods customers is the motive or intent of the user.

Question 14

The most rapidly growing sector of U.S.international trade today consists of business services--accounting,advertising,banking,consulting,et cetera.

Question 15

With respect to Rostow's five-stage model of economic development,in Stage 1 (the traditional society),the most important industrial demand is associated with labor.

Question 16

The perception of quality rests soley with the quality inspector.

Question 17

At present,there are generally accepted universal standards for industrial products around the world.

Question 18

Extreme variations in climate create problems in designing equipment that is universally operable.

Question 19

One of the trends that have spurred demand for technologically advanced products is worldwide popularity of the X-box video game system.

Question 20

Perhaps the most significant environmental factor affecting the international market for industrial goods and services is the degree of industrialization.

Question 21

Services are an important element for U.S.exports.Which of the following services categories leads U.S.service exports with 9 percent of the total of all exports?

A)travel (hotels,etc.)
B)transportation (fares,freight,and port services)
C)financial services (banking and insurance)
D)entertainment (movies,books,recordings)
E)other categories (telecommunications,information,health care)

Question 22

Bob McMinn knows that domestic industrial demand is very volatile.He decided to hire a consultant to give him advice on what to do about this unacceptable situation.Which of the following would NOT be a measure put forward as a solution to combat volatile demand in the industrial goods sector?

A)maintain a broad product line
B)raise prices faster
C)reduce advertising expenditures during booms
D)ignore market share as a strategic goal,avoid layoffs,and focus on stability
E)invest in foreign high-yield financial instruments

Question 23

For managers selling capital equipment and big-ticket industrial services,understanding the concept of _________ demand is absolutely fundamental to their success.

A)kinked
B)sliding
C)multiple
D)derived
E)postponed

Question 24

Many reasons for marketing consumer products and services abroad match with those for marketing industrial goods abroad.However,there is one important additional reason for marketing industrial goods abroad that does not apply to the consumer market.What is that reason?

A)to avoid inflationary pressures domestically
B)to make as much profit as possible
C)dampening the natural volatility of industrial markets
D)to meet foreign competitors in their home markets
E)to set up situations where strategic alliance opportunities might be realized

Question 25

Two basic factors account for the market similarities among industrial goods customers.One factor is the motive or intent of industrial customers is the same.The other factor accounting for the similarity among industrial goods customers is:

A)the inherent nature of the product.
B)the customer is seeking satisfaction.
C)the influence of government over design specifications.
D)the tie to services.
E)the perishability of the product.

Question 26

A company Website is the most important vehicle for selling products,reaching prospective customers,and marketing in most countries.

Question 27

The first and foremost characteristic of industrial goods markets is the motive of the buyer--to make a profit.

Question 28

Which of the following statements regarding standardization versus adaptation in the industrial market is most correct?

A)the exact same situation occurs in marketing industrial goods as in marketing consumer goods
B)there is more standardization in industrial goods because there is more similarity in marketing these goods to businesses in the international marketplace
C)there is more adaptation in industrial goods than in consumer goods
D)the industrial goods market demands adaptation
E)the industrial goods market vary across cultural groups

Question 29

Along with industrial goods,the most rapidly growing sector of U.S.international trade today consists of:

A)industrial products.
B)consumer products.
C)computer products.
D)business services.
E)governmental services.

Question 30

There is agreement between the U.S.and the European Union to mutually accept one another's standards in sectors such as telecommunications,medical devices,electromagnetic compatibility,electrical safety,recreation craft,and pharmaceuticals.

Question 31

Which of the following two categories account for a combined 47 percent of all U.S.exports each year?

A)travel and foods,feeds,and beverages
B)transportation and automotive vehicles,engines,and parts
C)commercial,professional,and technical services
D)automotive vehicles,engines,and parts plus consumer goods
E)capital goods and industrial supplies

Question 32

The ISO in ISO 9000 stands for Industrial Safety Operations.

Question 33

Blue Cross is now selling HMO services to American companies operating in Mexico.In this case,Blue Cross is referred to as a client follower.

Question 34

The U.S.Department of Commerce does not mandate the use of the metric system unless your company wants to sell something to the U.S.government.All sellers to this market must use metric.

Question 35

With respect to industrial demand,which of the following best characterizes the "traditional society" described in Stage 1 of Rostow's five-stage model of economic development?

A)a service economy is on the horizon
B)the important industrial demand is associated with natural resources extraction
C)primary needs are related to infrastructure development
D)manufacturing of both semidurable and nondurable consumer goods begins
E)the focus in on low-cost manufacturing of a variety of consumer and some industrial goods

Question 36

Demand in industrial markets is different from that in consumer markets.All of the following are factors that differentiate the industrial market from the consumer market EXCEPT:

A)demand is more volatile in the industrial market.
B)stages in industrial development affect demand for industrial products.
C)stages in economic development affect demand for industrial products.
D)industrial products are always more expensive than consumer products.
E)the level of technology of products and services makes their sale more appropriate in some countries than others.

Question 37

For many industrial products,the revenue from associated services exceeds the revenue from the products themselves.

Question 38

Natalie is a new international sales rep for an industrial supply company.She will learn that the inherent nature of industrial good and the sameness in motive and behavior among business customers create a market where product and marketing mix __________________ are commonplace.

A)celebrity status
B)generic brand names
C)standardization
D)simplification
E)regulations

Question 39

Services are an important element for U.S.exports.The main product U.S.businesses export is:

A)agricultural products
B)technology
C)toys
D)home appliances
E)automotive vehicles

Question 40

Derived demand can be defined as demand:

A)that is derived from supply.
B)that is matched to consumer wants and needs.
C)dependent on another source.
D)that it volatile.
E)aggregate consumer desire

Question 41

Russia and Eastern European countries have been characterized as being in which of the following stages of Rostow's five-stage model of economic growth?

A)the traditional society
B)drive to maturity
C)preconditions to take-off
D)the age of mass consumption
E)take-off

Question 42

In Stage 2 of Rostow's five-stage model of economic growth,manufacturing is beginning and primary needs are related to infrastructure development.Which of the following countries would be characterized as being in this stage of economic development?

A)Russia
B)Eastern European countries
C)South Korea
D)Czech Republic
E)Vietnam

Question 43

One important dimension of quality is how well the product:

A)meets the specific needs of the buyer.
B)exceeds competitors' products.
C)conforms to manufacturer's specifications.
D)alters the marketing landscape.
E)all are important dimensions of quality.

Question 44

To be competitive in today's global markets,the concept of total quality management (TQM)must be part of all MNCs' management strategy,and TQM starts with:

A)the initial designer.
B)the comptroller's office.
C)talking with the customers.
D)ISO 9000.
E)the corporate mission statement.

Question 45

In the ________________ stage of Rostow's five-stage model of economic development,an industrialized economy's focus is more on low-cost manufacturing of a variety of consumer and some industrial products;they buy from all categories of industrial products and services.

A)the traditional society
B)drive to maturity
C)preconditions to take-off
D)the age of mass consumption
E)take-off

Question 46

To Chinese import managers,which of the following aspects of the purchasing process was ranked as the number one important aspect when buying a product or service from a foreign supplier?

A)quality
B)price
C)product style
D)product features
E)timely delivery

Question 47

Recent studies have demonstrated that perceptions of __________ also can vary across cultural groups even in the most technologically developed countries.

A)product reputation
B)consumer product quality
C)product benefits
D)new technology
E)industrial product quality

Question 48

If a country has reached an economic development level where there is a focus on manufacturing of both semidurable and nondurable consumer goods and goods demanded relate to equipment and supplies to support manufacturing,the country is in which of the following stages of Rostow's five-stage model of economic growth?

A)the traditional society
B)drive to maturity
C)preconditions to take-off
D)take-off
E)the age of mass consumption

Question 49

Quality is defined by the:

A)seller.
B)manufacturer.
C)buyer.
D)government.
E)trade publications.

Question 50

Business-to-business marketers frequently misinterpret the concept of quality.Which of the following examples best illustrates this idea?

A)Farmers in third-world countries often prefer less-efficient and lower quality but easier to maintain products to do work tasks.
B)Arabic accountants often use the abacus rather than a calculator.
C)The Japanese will no longer do business with many U.S.suppliers because their packaging is faulty.
D)The French absolutely abhor the term "French fry."
E)The universal acceptance of ISO 9000 standards as a guarantee of the suitability of products in consumer applications.

Question 51

Many suppliers are adopting ISO 9000 standards because:

A)customer satisfaction surveys indicate retail customers prefer ISO certified suppliers.
B)it is the thing to do.
C)they want to be perceived as eco-friendly.
D)the WTO expects international suppliers to conform to ISO standards.
E)manufacturers are requiring them to do so.

Question 52

ISO 9000 concerns the:

A)ability of a company to meet quality expectations of consumers.
B)registration and certification of a manufacturer's quality system.
C)profitability of a production line.
D)ability of a company's computer system to adapt to SAP.
E)assurance of product application.

Question 53

Which of the following is NOT an interrelated trend that spur demand for technologically advanced products?

A)expanding industrial growth in Asia.
B)expanding economic growth in Asia.
C)the disintegration of the Soviet empire.
D)the privatization of government-owned industries worldwide.
E)the opening of the Trans-Arctic route.

Question 54

With respect to universal standards in the sales of international products,which of the following statements is most applicable?

A)there are no universal standards whatsoever
B)there is a lack of universal standards
C)the movement toward universal standards is nearing completion
D)most governments now mandate universal standards
E)universal standards have been present for a number of years

Question 55

The term ISO stands for which of the following?

A)International Systems and Operations
B)International Strategic Organization
C)Industrial Safety Operations
D)International Organization for Standardization
E)International Standards of Operation

Question 56

The perception of quality rests solely with the __________.

A)retailer
B)customer
C)marketer
D)manufacturer
E)inspector

Question 57

What is the name of the international organization that is attempting to harmonize standards for several international industrial sectors?

A)U.S.Department of Labor
B)Global Harmonization Task Force
C)United Nations
D)Better Business Bureau
E)U.S.Chamber of Commerce

Question 58

The U.S.Congress and businesses have been resisting conversion to the metric system fearing

A)market competition from international firms already using the metric system.
B)consumer backlash and substitution of international products.
C)Department of Commerce rules requiring wine to be sold in liters.
D)workers would not understand the system.
E)it would be too costly.

Question 59

"Making deals in pounds isn't easy when you're negotiating with someone who speaks in grams" is why many American firms are:

A)championing an international weight-loss program.
B)only doing business in Great Britain.
C)converting measures to the metric system.
D)simulating rather than estimating production standards.
E)offering to change customers' calculations into standards acceptable to American manufacturers.

Question 60

If a country is in Stage 5 (the age of mass consumption)of Rostow's five-stage model of economic development,where does the country purchase most of its highest technology products and services?

A)from Stage 4 suppliers
B)from Stage 3 suppliers
C)from other Stage 5 suppliers
D)from itself--it never needs anyone else
E)from Stage 3 and 4 suppliers together

Question 61

Which of the following industries is most heavily damaged when restrictions are placed on cross-border data flows?

A)construction industry
B)plastics industry
C)pharmaceutical industry
D)communications industry
E)retailing industry

Question 62

Barnes and Filmore Advertising Agency has just acquired a significant piece of Oracle's multimillion-dollar advertising business.Oracle would particularly like B&F to come up with creative ideas for Oracle's recent expansion into the lower Asian markets of India and Indonesia.In order to accommodate Oracle,B&F has now opened offices in two Indian cities and one Indonesian city.What would be the proper term to use to describe what B&F is doing with its own expansion into the above Asian markets?

A)client baiting
B)client following
C)bargain hunting
D)padding their bet
E)risk avoidance

Question 63

Relationship marketing is particularly important in international markets where ______ dictates strong ties between people and companies.

A)demand
B)price
C)culture
D)government
E)manufacturing

Question 64

The ready availability of parts and services provided by U.S.marketers can give them _______________ in international markets.

A)a price war
B)a headache
C)performance problems
D)reduced costs
E)a competitive advantage

Question 65

One of the key functions of global account managers revolve around the notion of __________.

A)intelligence gathering
B)mass advertising
C)relationship building
D)corporate air travel
E)possibility thinking

Question 66

The ______________ measures customers' satisfaction and perceptions of quality of a representative sample of America's goods and services.

A)ISO 9000
B)Baldrige Award
C)Carnegie-Melon Index
D)American Consumer Satisfaction Index (ACSI)
E)American Price Index (API)

Question 67

Which of the following is considered to be an important competitive tool in Europe?

A)adoption of ISO 9000 by a company
B)all packaging instructions are printed in English
C)all pricing is pegged to the dollar as the international standard
D)the ability to incorporate U.S.products into inventories
E)the Airbus Integrated Company (AIC)

Question 68

_______________ provide the facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors' products.

A)Catalogs
B)Direct mail
C)Web sites
D)Trade shows
E)Specialty advertising venues

Question 69

Marla wants to provide accounting and financial services to her clients as they expand into international markets.Marla can expect to face most of the same __________ merchandise traders.

A)barriers confronting
B)receptiveness experienced by
C)support from local governments promised to
D)alternative distribution channels utilized by
E)outsourcing objections by.

Question 70

One of the major problems that is dampening the effect of international trade shows is:

A)they are becoming too expensive to attend.
B)they are not as productive as they once were with respect to marketing.
C)governments are now putting pressure on companies to stay away from certain trade shows as an extension of foreign policy.
D)the wrong type of customers are beginning to dominate trade shows.
E)many buyers are becoming less enthusiastic about buying as a result of attending a trade show.

Question 71

For many industrial products the revenues from associated services exceed the revenues from the products.Which of the following examples best illustrates this statement?

A)paper produced in a paper mill
B)a dental laboratory that prepares false teeth
C)cell phones
D)a computer
E)corporate information technology (IP)

Question 72

What is the chief reason that most U.S.business services companies enter the international market?

A)to service their U.S.clients abroad
B)to make high profits
C)to avoid government restrictions
D)to find and service new international customers
E)to avoid governmental controls in the domestic market

Question 73

Until the ___________ and ______________ agreements,there were few international rules of fair play governing trade in services.

A)WTO;MERCOSUR
B)GATT;NAFTA
C)FCPA;ISO
D)GDP;RRP
E)HMO;EU

Question 74

Which of the following has become the primary vehicle for business-to-business promotion and selling in many foreign countries?

A)trade show or trade fair
B)in-office visits by sales teams
C)TV advertising
D)local radio advertising
E)transit media

Question 75

Hosea always lets his customers know when changes are being made and calls on his customers regularly.As part of relationship marketing,Hosia is building ______________ with customers.

A)a long-term relationship
B)a distance relationship
C)an Internet link
D)service-only link
E)a standard call-contact frequency

Question 76

One of the key functions of global account managers revolve around the notion of __________.

A)mass promotion and advertising
B)customer relationship building
C)corporate air travel
D)coordination with customer's staff
E)possibility thinking

Question 77

McDonald's Hamburger University is known for having one of the finest (and most famous)international customer training facilities in the world.This is part of McDonald's __________________ when dealing with international customers.

A)pricing promotion
B)senior seminar transfer
C)capacity utilization efficiency
D)after-sales service
E)warranty

Question 78

Research has shown that after-sales services are crucial in building customer loyalty and maintaining company reputation.What is another key reason that after-sales services should receive particular attention of top management?

A)these services are almost always more profitable than the actual sale of primary good itself
B)these services are very difficult to duplicate
C)these services can be very heavily advertised
D)these services cost almost nothing
E)degree of outsourcing service support

Question 79

For many technical products,the willingness of the seller to provide ______________ may be the deciding factor for the buyers accepting one company's product over another's.

A)trade in kind
B)barter arrangements
C)installation and training
D)a 90-day no pay period
E)no fault policy

Question 80

All of the following are specific uses for trade shows in aiding the marketing effort in most countries EXCEPT:

A)selling products.
B)reaching prospective customers.
C)contacting and evaluating potential agents and distributors.
D)dispute settlement.
E)marketing.