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NoreproductionordistributionwithoutthepriorwrittenonsentofMcGraw-HillEducation.
InternationalMarketing,18e(Cateora)
Chapter14ProductsandServicesforBusinesses
1)Forfirmsproducingproductsandservicesforindustrialmarkets,thechiefreasonforventuringabroadistheprospectofhighprofitswithnorisk.
Answer:FALSE
Explanation:Demandinindustrialmarketsisbynaturemorevolatile.Firmsproducingproductsandservicesforindustrialmarketshaveacrucialreasonforventuringabroad:dampeningthenaturalvolatilityofindustrialmarkets.
Difficulty:1Easy
Topic:ManagingPoliticalRiskandDifferences
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
2)Thesinglemostimportantdifferencebetweenconsumerandindustrialmarketingisthecyclicalswingsindemandinherentinthelatter.
Answer:TRUE
Explanation:Thesinglemostimportantdifferencebetweenconsumerandindustrialmarketingisthehuge,cyclicalswingsindemandinherentinthelatter.
Difficulty:1Easy
Topic:ChallengesandOpportunitiesCreatedbyGlobalization
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
3)Managersneedtounderstandtheconceptofderiveddemand,particularlywhentheyaresellingcapitalequipmentandbig-ticketindustrialservices.
Answer:TRUE
Explanation:Formanagerssellingcapitalequipmentandbig-ticketindustrialservices,understandingtheconceptofderiveddemandisabsolutelyfundamentaltotheirsuccess.Deriveddemandcanbedefinedasdemanddependentonanothersource.
Difficulty:1Easy
Topic:ChallengesandOpportunitiesCreatedbyGlobalization
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
4)Deriveddemandcanbedefinedasdemandthatisnotdependentonanothersource.
Answer:FALSE
Explanation:Deriveddemandisdependentonanothersource.Thus,thedemandforBoeing747sisderivedfromtheworldwideconsumerdemandforairtravelservices.
Difficulty:1Easy
Topic:ChallengesandOpportunitiesCreatedbyGlobalization
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
5)Industrialdemandisunaffectedbychangesinconsumerdemand.
Answer:FALSE
Explanation:Minorchangesinconsumerdemandmeanmajorchangesintherelatedindustrialdemand.
Difficulty:1Easy
Topic:ChallengesandOpportunitiesCreatedbyGlobalization
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
6)Oneofthewaysthatanindustrialfirmshouldmanagetheinherentvolatilityoftheindustrialsectorisbyincreasingadvertisingexpenditureduringbooms.
Answer:FALSE
Explanation:Industrialfirmscantakeseveralmeasurestomanageinherentvolatility,suchasmaintainingbroadproductlinesandbroadmarketcoverage,raisingpricesfasterandreducingadvertisingexpendituresduringbooms,ignoringmarketshareasastrategicgoal,eschewinglayoffs,andfocusingonstability.
Difficulty:1Easy
Topic:FactorsThatInfluenceInternationalAdvertisingandPromotionStrategies
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
7)Themostsignificantenvironmentalfactoraffectingtheinternationalmarketforindustrialgoodsandservicesisthedegreeofstandardization.
Answer:FALSE
Explanation:Themostsignificantenvironmentalfactoraffectingtheinternationalmarketforindustrialgoodsandservicesisthedegreeofindustrialization.
Difficulty:1Easy
Topic:ChallengesandOpportunitiesCreatedbyGlobalization
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
8)Thedegreeofeconomicdevelopmentofacountrycanbeusedasaroughmeasureofthecountry'sindustrialmarket.
Answer:TRUE
Explanation:Althoughgeneralizingaboutcountriesisalmostalwaysimprudent,thedegreeofeconomicdevelopmentcanbeusedasaroughmeasureofacountry'sindustrialmarket.
Difficulty:1Easy
Topic:EconomicDevelopment
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
9)InStage1(thetraditionalsociety)ofRostow'sfive-stagemodelofeconomicdevelopment,themostimportantindustrialdemandislabor.
Answer:FALSE
Explanation:InStage1ofRostow'sfive-stagemodelofeconomicdevelopment,themostimportantindustrialdemandwillbeassociatedwithnaturalresourcesextraction—thinkpartsofAfricaandtheMiddleEast.
Difficulty:1Easy
Topic:EconomicDevelopment
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
10)InRostow'sfive-stagemodelofeconomicdevelopment,countriesinStage5(theageofmassconsumption)aremostlyserviceeconomies.
Answer:TRUE
Explanation:WithrespecttoRostow'sfive-stagemodelofeconomicdevelopment,countriesinStage5arecountrieswheredesignactivitiesaregoingonandmanufacturingtechniquesarebeingdeveloped,andtheyaremostlyserviceeconomies.JapanandGermanyareexamplesofthisstage.
Difficulty:1Easy
Topic:EconomicDevelopment
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
11)Acountrycanleapseveralstagesofeconomicdevelopmentbyusingtechnologyaseconomicleverage.
Answer:TRUE
Explanation:Animportantapproachtogroupingcountriesisonthebasisoftheirabilitytobenefitfromandusetechnology,particularlynowthatcountriesareusingtechnologyaseconomicleveragetoleapseveralstagesofeconomicdevelopmentinaveryshorttime.
Difficulty:1Easy
Topic:EconomicDevelopment
LearningObjective:14-02Howdemandisaffectedbytechnologylevels
Bloom's:Remember
AACSB:Technology
Accessibility:KeyboardNavigation
12)OneoftheinterrelatedtrendsthatspurredthedemandfortechnologicallyadvancedproductswasthedisintegrationoftheSovietempire.
Answer:TRUE
Explanation:Threeinterrelatedtrendsspurdemandfortechnologicallyadvancedproducts:(1)expandingeconomicandindustrialgrowthinAsia,particularlyChinaandIndia;(2)thedisintegrationoftheSovietempire;and(3)theprivatizationofgovernment-ownedindustriesworldwide.
Difficulty:1Easy
Topic:EconomicDevelopment
LearningObjective:14-02Howdemandisaffectedbytechnologylevels
Bloom's:Remember
AACSB:Technology
Accessibility:KeyboardNavigation
13)Goodqualityasinterpretedbyahighlyindustrializedmarketisthesameasthatinterpretedbystandardsofalessindustrializednation.
Answer:FALSE
Explanation:Recentstudieshavedemonstratedthatperceptionsofindustrialproductqualitycanvaryacrossculturalgroupseveninthemosttechnologicallydevelopedcountries.Goodqualityasinterpretedbyahighlyindustrializedmarketisnotthesameasthatinterpretedbystandardsofalessindustrializednation.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-02Howdemandisaffectedbytechnologylevels
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
14)Aproductthatexceedsperformanceexpectationscanalsobeconsideredtobeofpoorquality.
Answer:TRUE
Explanation:Itislessapparentbutnonethelesstruethataproductthatexceedsperformanceexpectationscanalsobeofpoorquality.Qualityformanygoodsisassessedintermsoffulfillingspecificexpectations—nomoreandnoless.Thus,aproductthatproduces20,000unitsperhourwhenthebuyerneedsonethatproducesonly5,000unitsperhourisnotnecessarilyahigherqualityproduct,inthattheextracapacityisunnecessarytomeetthebuyer'suseexpectations.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-03Characteristicsofanindustrialproduct
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
15)Aproductwhosedesignreflectstheneedsandexpectationsofthebuyer—nomore,noless—isaqualityproduct.
Answer:TRUE
Explanation:Aproductwhosedesignreflectstheneedsandexpectationsofthebuyer—nomore,noless—isaqualityproduct.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-03Characteristicsofanindustrialproduct
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
16)Thelackofcommonstandardsformanufacturinghighlyspecializedequipmentisaproblemininternationalsalesofindustrialproducts.
Answer:TRUE
Explanation:TheUnitedStateshastwomajorareasofconcernfortheindustrialgoodsexporter:alackofcommonstandardsformanufacturinghighlyspecializedequipmentsuchasmachinetoolsandcomputers,andtheuseoftheinch-pound,orEnglish,systemofmeasurement.
Difficulty:1Easy
Topic:RequirementsofaGloballyDispersedProductionSystem
LearningObjective:14-03Characteristicsofanindustrialproduct
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
17)Theadoptionofuniversalqualitystandardswouldmeanthattheperceptionsofindustrialproductqualitywouldalsobestandardized.
Answer:FALSE
Explanation:Theconceptofqualityencompassesmanyfactors,andtheperceptionofqualityrestssolelywiththecustomer.Theleveloftechnologyreflectedintheproduct,compliancewithstandardsthatreflectcustomerneeds,supportservicesandfollow-through,andthepricerelativetocompetitiveproductsareallpartofacustomer'sevaluationandperceptionofquality.
Difficulty:1Easy
Topic:RequirementsofaGloballyDispersedProductionSystem
LearningObjective:14-03Characteristicsofanindustrialproduct
Bloom's:Understand
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
18)Whilecountrieshavestandardsforproductsproducedwithinitsborders,therearenosuchstandardsthatareapplicabletoimportedgoods.
Answer:FALSE
Explanation:Inadditiontoindustryandinternationalorganizationssettingstandards,countriesoftenhavestandardsforproductsenteringtheirmarkets.
Difficulty:1Easy
Topic:RequirementsofaGloballyDispersedProductionSystem
LearningObjective:14-03Characteristicsofanindustrialproduct
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
19)TheU.S.DepartmentofCommercehasmandatedthatallU.S.governmentpurchasesusethemetricsystem.
Answer:TRUE
Explanation:TospurU.S.industryintoaction,theDepartmentofCommerceindicatedthatacceptingthemetricsystemwillnotbemandatoryunlessyouwanttosellsomethingtotheU.S.government;allU.S.governmentpurchasesaretobeconductedexclusivelyinmetric.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-03Characteristicsofanindustrialproduct
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
20)TheISO9000certificationguaranteesthateachproductorserviceproducedbyacompanyisofthehighestquality.
Answer:FALSE
Explanation:ISO9000standardsdonotapplytospecificproducts.Theyrelatetogenericsystemstandardsthatenableacompany,throughamixofinternalandexternalaudits,toprovideassurancethatithasaqualitycontrolsystem.Itisacertificationoftheproductionprocessonlyanddoesnotguaranteethatamanufacturerproducesa"quality"productorservice.
Difficulty:1Easy
Topic:RequirementsofaGloballyDispersedProductionSystem
LearningObjective:14-04TheimportanceofISO9000certification
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
21)ToreceiveISO9000certification,acompanyrequestsacertifyingbodytoconductaregistrationassessment.
Answer:TRUE
Explanation:ToreceiveISO9000certification,acompanyrequestsacertifyingbody(athirdpartyauthorizedtoprovideanISO9000audit)toconductaregistrationassessment—thatis,anauditofthekeybusinessprocessesofacompany.
Difficulty:1Easy
Topic:RequirementsofaGloballyDispersedProductionSystem
LearningObjective:14-04TheimportanceofISO9000certification
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
22)Formanyindustrialproducts,therevenuefromassociatedservicesexceedstherevenuefromtheproductsthemselves.
Answer:TRUE
Explanation:Formanyindustrialproducts,therevenuesfromassociatedservicesexceedtherevenuesfromtheproducts.Formanycapitalequipmentmanufacturers,themarginsonafter-saleservices(i.e.,maintenancecontracts,overhauls,repairs,andreplacementparts)aremuchhigherthanthemarginsonthemachineryitself.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-04TheimportanceofISO9000certification
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
23)Forinternationalusersofheavyconstructionequipment,themanufacturer'scountryoforiginisofprimaryimportanceinpurchasingconstructionequipment.
Answer:FALSE
Explanation:Arecentstudyofinternationalusersofheavyconstructionequipmentrevealedthat,nexttothemanufacturer'sreputation,quickdeliveryofreplacementpartswasofmajorimportanceinpurchasingconstructionequipment.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-04TheimportanceofISO9000certification
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
24)Amanufacturerwhodoesnotprovideafter-salesservicesandsupportcouldalsobeforgoingtheopportunityofparticipatinginalucrativeaftermarket.
Answer:TRUE
Explanation:Someinternationalmarketersalsomaybeforgoingtheopportunityofparticipatinginalucrativeaftermarket.Certainkindsofmachinetoolsuseuptofivetimestheiroriginalvalueinreplacementpartsduringanaveragelifespanandthusrepresentanevengreatermarket.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-04TheimportanceofISO9000certification
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
25)Communismisthemostseriousthreattothecontinuedexpansionofinternationalservicestrade.
Answer:FALSE
Explanation:Protectionismisthemostseriousthreattothecontinuedexpansionofinternationalservicestrade.Thegrowthofinternationalserviceshasdrawntheattentionoflocalcompanies,governments,andresearchers.Asaresult,directandindirecttradebarriershavebeenimposedtorestrictforeigncompaniesfromdomesticmarkets.
Difficulty:1Easy
Topic:TradePolicyandGovernmentInterventioninInternationalTrade
LearningObjective:14-05Thegrowthofbusinessservicesandnuancesoftheirmarketing
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
26)Acompanywebsiteisthemostimportantvehicleforsellingindustrialproducts,reachingprospectiveB2Bcustomers,andmarketinginmostcountries.
Answer:FALSE
Explanation:Tradeshowsserveasthemostimportantvehiclesforsellingproducts,reachingprospectiveB2Bcustomers,contactingandevaluatingpotentialagentsanddistributors,andmarketinginmostcountries.Firmsthathavesuccessfullyintegratedtradeshowattendanceandfollow-uppersonalsellingeffortshavebeenconsistentlyshowntobemoreprofitable.
Difficulty:1Easy
Topic:ValueofTradeMissionsandTradeFairs
LearningObjective:14-06Theimportanceoftradeshowsinpromotingindustrialgoods
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
27)TradeshowsserveamuchmoreimportantroleintheU.S.thaninothercountries.
Answer:FALSE
Explanation:AlthoughimportantintheUnitedStates,tradeshowsserveamuchmoreimportantroleinothercountries.TheyhavebeenatthecenterofcommerceinEuropeforcenturiesandarewheremostprospectsarefound.
Difficulty:1Easy
Topic:ValueofTradeMissionsandTradeFairs
LearningObjective:14-06Theimportanceoftradeshowsinpromotingindustrialgoods
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
28)Indifficulteconomicandpoliticalcircumstancesorotherwise,onlinetradeshowsareamorethanadequatesubstituteforphysicaltradeshowsortradefairs.
Answer:FALSE
Explanation:Indifficulteconomicand/orpoliticalcircumstances,onlinetradeshowsbecomeauseful,butobviouslylessthanadequate,substituteforactualtradeshows.
Difficulty:1Easy
Topic:ValueofTradeMissionsandTradeFairs
LearningObjective:14-06Theimportanceoftradeshowsinpromotingindustrialgoods
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
29)Thesalesofindustrialgoodsaredrivenbythebuyer'sneedtomakeprofits.
Answer:TRUE
Explanation:Thefirstandforemostcharacteristicofindustrialgoodsmarketsisthemotiveofthebuyer:tomakeaprofit.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-07Theimportanceofrelationshipmarketingforindustrialproductsandservices
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
30)Relationshipmarketingshiftsthefocusawayfrompricetoserviceandlong-termbenefits.
Answer:TRUE
Explanation:Theobjectiveofrelationshipmarketingistomaketherelationshipanimportantattributeofthetransaction,thusdifferentiatingoneselffromcompetitors.Itshiftsthefocusawayfrompricetoserviceandlong-termbenefits.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-07Theimportanceofrelationshipmarketingforindustrialproductsandservices
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
31)Maiisanewinternationalsalesrepresentativeforanindustrialsupplycompanythatisfocusingheavilyontechnologyasasellingfeature.Shewilllearnthatthisstrategy
A)willbeakeysellingfeatureinallmarkets.
B)willhavethemostimpactindevelopingcountries.
C)maynotbeappropriateforallcountries.
D)willnotmakeabigdifferenceintheglobalmarket.
E)canbeeasilyovercomebycompetitors.
Answer:C
Explanation:Notonlyistechnologythekeytoeconomicgrowth,butformanyproducts,itisalsothecompetitiveedgeintoday'sglobalmarkets.However,theleveloftechnologyofproductsandservicesmakestheirsalemoreappropriateforsomecountriesthanothers.
Difficulty:2Medium
Topic:DifferencesBetweenDomesticandInternationalMarketing
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Understand
AACSB:Technology
Accessibility:KeyboardNavigation
32)Industrialmarketsdifferfromconsumermarketsinthat
A)thedemandforindustrialgoodsismorevolatilethanthedemandforconsumergoods.
B)themarketforindustrialgoodsisinsignificantincomparisontothemarketforconsumergoods.
C)industrialgoodsaremarketeddomesticallywhereasconsumergoodsaremarketedinternationally.
D)industrialproductsarealwaysmoreexpensivethanconsumerproducts.
E)industrialproductsusethesameleveloftechnologyforallproductsmakingitappropriateforallcountrieswhereasconsumergoodsneedtobecustomizedforeachmarket.
Answer:A
Explanation:Threefactorsseemtoaffectthedemandininternationalindustrialmarketsdifferentlythaninconsumermarkets.First,demandinindustrialmarketsisbynaturemorevolatile.Second,stagesofindustrialandeconomicdevelopmentaffectdemandforindustrialproducts.Third,theleveloftechnologyofproductsandservicesmakestheirsalemoreappropriateforsomecountriesthanothers.
Difficulty:2Medium
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Understand
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
33)Whatstatementistrueinindustrialmarkets?
A)Demandisnonvolatilebynature.
B)Marketsareunaffectedbyderiveddemand.
C)Industrialsellerstendtohavesmallnumbersofcustomersuponwhichtheyaremoredependent.
D)Salesofindustrialgoodsarestableanddonotfluctuate.
E)Professionalbuyerstendtoundertakedissimilarinvestmentactionstoachievethesamegoal.
Answer:C
Explanation:Inindustrialmarkets,threefactorscomeintoplaythatexacerbateboththeupsanddownsindemand:Industrialsellerstendtohavesmallnumbersofcustomersuponwhichtheyaremoredependent,professionalbuyerstendtoactinconcert,andderiveddemandaccelerateschangesinmarkets.
Difficulty:2Medium
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Understand
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
34)WhatisareasonformarketingindustrialgoodsabroadthatdoesNOTnecessarilyapplytoconsumergoods?
A)bypassingimporttariffs
B)avoidingsalestax
C)reducingthevolatilityofdemand
D)acquiringISOcertification
E)acquiringACSIcertification
Answer:C
Explanation:Firmsproducingproductsandservicesforindustrialmarketshaveacrucialreasonforventuringabroad:dampeningthenaturalvolatilityofindustrialmarkets.Perhapsthesinglemostimportantdifferencebetweenconsumerandindustrialmarketingisthehuge,cyclicalswingsindemandinherentinthelatter.
Difficulty:1Easy
Topic:ChallengesandOpportunitiesCreatedbyGlobalization
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
35)Whatfactorincreasesthevolatilityindemandinindustrialmarkets?
A)Professionalbuyersintheindustrialmarkettendtoactinconcert.
B)Thedemandforindustrialgoodsisindependentofchangesineconomicdevelopment.
C)Small,noncyclicalswingsindemandareinherentinindustrialmarkets.
D)Experiencedpurchaserstendtomakebuyingdecisionsindependently.
E)Thedemandforindustrialgoodsishighlyinelastic.
Answer:A
Explanation:Inindustrialmarkets,threefactorscomeintoplaythatexacerbateboththeupsanddownsindemand:Industrialsellerstendtohavesmallnumbersofcustomersuponwhichtheyaremoredependent,professionalbuyerstendtoactinconcert,andderiveddemandaccelerateschangesinmarkets.
Difficulty:2Medium
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Understand
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
36)Formanagerssellingcapitalequipmentandbig-ticketindustrialservices,understandingtheconceptof________isabsolutelyfundamentaltotheirsuccess.
A)availabilityheuristic
B)bankeffect
C)Baskervilleeffect
D)deriveddemand
E)catapultdemand
Answer:D
Explanation:Formanagerssellingcapitalequipmentandbig-ticketindustrialservices,understandingtheconceptofderiveddemandisabsolutelyfundamentaltotheirsuccess.Deriveddemandcanbedefinedasdemanddependentonanothersource.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
37)Deriveddemandcanbedefinedasdemandthatis
A)independentofprice.
B)independentofconsumerwantsandneeds.
C)dependentonanothersource.
D)highlyvolatile.
E)highlyresponsivetofactorsotherthanprice.
Answer:C
Explanation:Deriveddemandcanbedefinedasdemanddependentonanothersource.Forexample,thedemandforBoeingaircraftisderivedfromtheworldwideconsumerdemandforairtravelservices.
Difficulty:2Medium
Topic:FactorstoConsiderWhenDevelopingInternationalProductStrategies
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Understand
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
38)Whatcanbeusedasameasuretomanagevolatilityinindustrialdemand?
A)maintaininganarrowproductline
B)reducingpricesduringbooms
C)reducingadvertisingexpendituresduringbooms
D)focusingonmarketshareasastrategicgoal
E)avoidinginvestmentinforeignhigh-yieldfinancialinstruments
Answer:C
Explanation:Industrialfirmscantakeseveralmeasurestomanagetheinherentvolatilityinindustrialdemand,suchasmaintainingbroadproductlinesandbroadmarketcoverage,raisingpricesfasterandreducingadvertisingexpendituresduringbooms,ignoringmarketshareasastrategicgoal,eschewinglayoffs,andfocusingonstability.
Difficulty:2Medium
Topic:FactorsThatInfluenceInternationalAdvertisingandPromotionStrategies
LearningObjective:14-01Theimportanceofderiveddemandinindustrialmarkets
Bloom's:Understand
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
39)WhydoGermanandJapanesefirmsgenerallydobetterthanU.S.firmswhenitcomestomanagingvolatility?
A)Theiremphasisisonbeatingcompetitors.
B)Theyvalueemployeesandstabilitymorehighly.
C)Theymaintainlimitedproductlines.
D)Theyreduc
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