Question 1

Explain the concept of derived demand. Provide an illustration.

Accepted Answer

Derived demand can be defined

Question 2

Which of the following factors accounts for greater market similarities among industrial goods customers than among consumer goods customers?

Accepted Answer

A)  The inherent nature of the product 
B)  The customer motive being individual satisfaction 
C)  Government control over design specifications 
D)  Industrial goods being associated with after-sales services 
E)  The restriction on international sale of industrial goods 
A)  The inherent nature of the product 
B)  The customer motive being individual satisfaction 
C)  Government control over design specifications 
D)  Industrial goods being associated with after-sales services 
E)  The restriction on international sale of industrial goods

Question 3

Which of the following statements regarding industrial goods is true?

Accepted Answer

A)  Industrial goods are always marketed through the same channels as consumer goods. 
B)  Industrial goods are generally standardized. 
C)  Industrial goods are meant for direct consumption by the general public. 
D)  The industrial goods are independent of the level of economic and technological development of their market. 
E)  All industrial goods must adhere to ISO 9000 standards. 
A)  Industrial goods are always marketed through the same channels as consumer goods. 
B)  Industrial goods are generally standardized. 
C)  Industrial goods are meant for direct consumption by the general public. 
D)  The industrial goods are independent of the level of economic and technological development of their market. 
E)  All industrial goods must adhere to ISO 9000 standards.

Question 4

To receive ISO 9000 certification, a company requests a certifying body to conduct a registration assessment.

Accepted Answer

A) True 
 B)False

Question 5

The adoption of universal quality standards would mean that the perceptions of industrial product quality would also be standardized.

Accepted Answer

A) True 
 B)False

Question 6

Mary is a new international sales representative for an industrial supply company. She will learn that the inherent nature of industrial goods creates a market where:

Accepted Answer

A)  firms need to incur huge losses to expand their product base. 
B)  most of the production and sale of goods takes place in the domestic market. 
C)  product and marketing mix standardization are commonplace. 
D)  the demand for the goods produced is relatively predictable and stable. 
E)  the buyer only seeks satisfaction from the product. 
A)  firms need to incur huge losses to expand their product base. 
B)  most of the production and sale of goods takes place in the domestic market. 
C)  product and marketing mix standardization are commonplace. 
D)  the demand for the goods produced is relatively predictable and stable. 
E)  the buyer only seeks satisfaction from the product.

Question 7

The most rapidly growing sector of U.S. international trade today consists of:

Accepted Answer

A)  social services. 
B)  consumer products. 
C)  manufactured goods. 
D)  business services. 
E)  governmental services. 
A)  social services. 
B)  consumer products. 
C)  manufactured goods. 
D)  business services. 
E)  governmental services.

Question 8

An important dimension of quality is how well the product:

Accepted Answer

A)  meets the specific needs of the buyer. 
B)  exceeds competitors' products. 
C)  conforms to manufacturer's specifications. 
D)  alters the marketing landscape. 
E)  saves time and labor. 
A)  meets the specific needs of the buyer. 
B)  exceeds competitors' products. 
C)  conforms to manufacturer's specifications. 
D)  alters the marketing landscape. 
E)  saves time and labor.

Question 9

Which of the following is true of Stage 1 of Rostow's five-stage model of economic development?

Accepted Answer

A)  The economy is primarily driven by the production of services. 
B)  The most important industrial demand relates to natural resources extraction. 
C)  Infrastructure development is a primary requirement in the economy. 
D)  Manufacturing of both semidurable and nondurable consumer goods has begun. 
E)  The focus is on low-cost manufacturing of a variety of consumer and some industrial goods. 
A)  The economy is primarily driven by the production of services. 
B)  The most important industrial demand relates to natural resources extraction. 
C)  Infrastructure development is a primary requirement in the economy. 
D)  Manufacturing of both semidurable and nondurable consumer goods has begun. 
E)  The focus is on low-cost manufacturing of a variety of consumer and some industrial goods.

Question 10

A product that exceeds performance expectations can also be considered to be of poor quality.

Accepted Answer

A) True 
 B)False

Question 11

For most consumer services firms, the mode of entry into a foreign market is licensing, franchising, strategic alliances, or direct. This is usually done because:

Accepted Answer

A)  services are highly differentiated. 
B)  services produced cannot be added to inventory. 
C)  the creation and consumption of services cannot be separated. 
D)  the inputs used vary to a great extent. 
E)  services usually do not have any intrinsic value that can be converted into a tangible form. 
A)  services are highly differentiated. 
B)  services produced cannot be added to inventory. 
C)  the creation and consumption of services cannot be separated. 
D)  the inputs used vary to a great extent. 
E)  services usually do not have any intrinsic value that can be converted into a tangible form.

Question 12

The degree of economic development of a country can be used as a rough measure of the country's industrial market.

Accepted Answer

A) True 
 B)False

Question 13

In the case of cellular phones, the physical product is practically given away to gain the phone services contract. This could be because:

Accepted Answer

A)  cellular phone companies do not view market share as a strategic goal. 
B)  the cost of production of cellular phones is very low. 
C)  the revenues from associated services exceed the revenues from the cellular phones. 
D)  the margins on after-sales services for cellular phones is low. 
E)  consumers sometimes buy a variety of services that are not associated with products. 
A)  cellular phone companies do not view market share as a strategic goal. 
B)  the cost of production of cellular phones is very low. 
C)  the revenues from associated services exceed the revenues from the cellular phones. 
D)  the margins on after-sales services for cellular phones is low. 
E)  consumers sometimes buy a variety of services that are not associated with products.

Question 14

Which of the following will expand demand for industrial goods and business services in Latin America?

Accepted Answer

A)  The increase of import tariff by 70 percent 
B)  The adoption of Marxist-socialist policies 
C)  The privatization of state-owned enterprises 
D)  The increased use of labor in place of capital in production 
E)  The decline of economic growth in Asia 
A)  The increase of import tariff by 70 percent 
B)  The adoption of Marxist-socialist policies 
C)  The privatization of state-owned enterprises 
D)  The increased use of labor in place of capital in production 
E)  The decline of economic growth in Asia

Question 15

Industrial markets differ from consumer markets in that:

Accepted Answer

A)  the demand for industrial goods is more volatile than the demand for consumer goods. 
B)  the market for industrial goods is insignificant in comparison to the market for consumer goods. 
C)  industrial goods are marketed domestically whereas consumer goods are marketed internationally. 
D)  industrial products are always more expensive than consumer products. 
E)  industrial products use the same level of technology for all products making it appropriate for all countries whereas consumer goods need to be customized for each market. 
A)  the demand for industrial goods is more volatile than the demand for consumer goods. 
B)  the market for industrial goods is insignificant in comparison to the market for consumer goods. 
C)  industrial goods are marketed domestically whereas consumer goods are marketed internationally. 
D)  industrial products are always more expensive than consumer products. 
E)  industrial products use the same level of technology for all products making it appropriate for all countries whereas consumer goods need to be customized for each market.

Question 16

A manufacturer who does not provide after-sales services and support could also be foregoing the opportunity of participating in a lucrative aftermarket.

Accepted Answer

A) True 
 B)False

Question 17

ISO 9000 concerns the:

Accepted Answer

A)  cost-effectiveness of the production of a good. 
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, a business management software. 
E)  marketing and promotional strategies of a firm. 
A)  cost-effectiveness of the production of a good. 
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, a business management software. 
E)  marketing and promotional strategies of a firm.

Question 18

For international users of heavy construction equipment, the manufacturer's country of origin is of major importance in purchasing construction equipment.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is the first stage of Rostow's five-stage model of economic development?

Accepted Answer

A)  The traditional society 
B)  Drive to maturity 
C)  Preconditions for takeoff 
D)  Takeoff 
E)  The age of mass consumption 
A)  The traditional society 
B)  Drive to maturity 
C)  Preconditions for takeoff 
D)  Takeoff 
E)  The age of mass consumption

Question 20

Which of the following is the most significant factor affecting the international market for industrial goods and services?

Accepted Answer

A)  The foreign exchange market 
B)  Political conditions 
C)  The degree of industrialization 
D)  The level of domestic competition 
E)  Global warming 
A)  The foreign exchange market 
B)  Political conditions 
C)  The degree of industrialization 
D)  The level of domestic competition 
E)  Global warming

Explain the concept of derived demand. Provide an illustration.

Which of the following factors accounts for greater market similarities among industrial goods customers than among consumer goods customers?

Which of the following statements regarding industrial goods is true?

To receive ISO 9000 certification, a company requests a certifying body to conduct a registration assessment.

The adoption of universal quality standards would mean that the perceptions of industrial product quality would also be standardized.

Mary is a new international sales representative for an industrial supply company. She will learn that the inherent nature of industrial goods creates a market where:

The most rapidly growing sector of U.S. international trade today consists of:

An important dimension of quality is how well the product:

Which of the following is true of Stage 1 of Rostow's five-stage model of economic development?

A product that exceeds performance expectations can also be considered to be of poor quality.

For most consumer services firms, the mode of entry into a foreign market is licensing, franchising, strategic alliances, or direct. This is usually done because:

The degree of economic development of a country can be used as a rough measure of the country's industrial market.

In the case of cellular phones, the physical product is practically given away to gain the phone services contract. This could be because:

Which of the following will expand demand for industrial goods and business services in Latin America?

Industrial markets differ from consumer markets in that:

A manufacturer who does not provide after-sales services and support could also be foregoing the opportunity of participating in a lucrative aftermarket.

ISO 9000 concerns the:

For international users of heavy construction equipment, the manufacturer's country of origin is of major importance in purchasing construction equipment.

Which of the following is the first stage of Rostow's five-stage model of economic development?

Which of the following is the most significant factor affecting the international market for industrial goods and services?

The Scope and Challenge of International Marketing

The Dynamic Environment of International Trade

History and Geography: The Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The Political Environment: a Critical Concern

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Inventive Negotiations With International Customers, Partners, and Regulators

Filters

Exam 14: Products and Services for Businesses

Explain the concept of derived demand. Provide an illustration.

Which of the following factors accounts for greater market similarities among industrial goods customers than among consumer goods customers?

Which of the following statements regarding industrial goods is true?

To receive ISO 9000 certification, a company requests a certifying body to conduct a registration assessment.

The adoption of universal quality standards would mean that the perceptions of industrial product quality would also be standardized.

Mary is a new international sales representative for an industrial supply company. She will learn that the inherent nature of industrial goods creates a market where:

The most rapidly growing sector of U.S. international trade today consists of:

An important dimension of quality is how well the product:

Which of the following is true of Stage 1 of Rostow's five-stage model of economic development?

A product that exceeds performance expectations can also be considered to be of poor quality.

For most consumer services firms, the mode of entry into a foreign market is licensing, franchising, strategic alliances, or direct. This is usually done because:

The degree of economic development of a country can be used as a rough measure of the country's industrial market.

In the case of cellular phones, the physical product is practically given away to gain the phone services contract. This could be because:

Which of the following will expand demand for industrial goods and business services in Latin America?

Industrial markets differ from consumer markets in that:

A manufacturer who does not provide after-sales services and support could also be foregoing the opportunity of participating in a lucrative aftermarket.

ISO 9000 concerns the:

For international users of heavy construction equipment, the manufacturer's country of origin is of major importance in purchasing construction equipment.

Which of the following is the first stage of Rostow's five-stage model of economic development?

Which of the following is the most significant factor affecting the international market for industrial goods and services?

The Scope and Challenge of International Marketing

The Dynamic Environment of International Trade

History and Geography: The Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The Political Environment: a Critical Concern

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Inventive Negotiations With International Customers, Partners, and Regulators

Filters