Your SlideShare is downloading. ×
Chapter 13  products and services for businesses
Chapter 13  products and services for businesses
Chapter 13  products and services for businesses
Chapter 13  products and services for businesses
Chapter 13  products and services for businesses
Chapter 13  products and services for businesses
Chapter 13  products and services for businesses
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Chapter 13 products and services for businesses

5,426

Published on

Internationl Marketing MSQ-T/F

Internationl Marketing MSQ-T/F

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
5,426
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Chapter 13 Products and Services for BusinessesTrue/False Questions 1. The United States exports approximately $1 trillion worth of goods and service each year. Answer: True Page: 374, Exhibit 13.1 (footnote) Difficulty: Easy Type: Fact 2. Approximately 30 percent of U.S. exports come from the services sector. Answer: True Page: 374, Exhibit 13.1 Difficulty: Moderate Type: Fact 3. The largest category (percentage of total) of U.S. services exported annually is found in the financial services category. Answer: False Page: 374, Exhibit 13.1 Difficulty: Hard Type: Fact 4. The most rapidly growing sector of U.S. international trade today consists of business services—accounting, advertising, banking, consulting, et cetera. Answer: True Page: 375 Difficulty: Moderate Type: Fact 5. For firms producing products and services for industrial markets, a chief reason for venturing abroad is the prospect of high profits with little risk. Answer: False Page: 375-376 Difficulty: Moderate Type: Comprehension 6. For managers selling capital equipment and big-ticket industrial services, understanding the concept of derived demand is absolutely fundamental to their success. Answer: True Page: 377 Difficulty: Easy Type: Comprehension 7. Derived demand can be defined as demand that comes from the psychological aspects of market forces. Answer: False Page: 377 Difficulty: Hard Type: Definition 8. One of the ways that an industrial firm can manage against the inherent volatility of the industrial sector is to maintain broad product lines. Answer: True Page: 377 Difficulty: Moderate Type: Comprehension
  • 2. Chapter 13 Products and Services for Businesses 9. Perhaps the most significant environmental factor affecting the international market for industrial goods and services is the degree of industrialization. Answer: True Page: 378 Difficulty: Moderate Type: Comprehension 10. With respect to Rostows five-stage model of economic development, in Stage 1 (the traditional society), the most important industrial demand is associated with labor. Answer: False Page: 378 Difficulty: Hard Type: Comprehension and ApplicationMultiple Choice Questions 1. Services are an important element for U.S. exports. At present, _________ of total U.S. exports is accounted for by some form of services. A) 20 percent B) 29.6 percent C) 52.3 percent D) 61 percent E) none of the above Answer: B Page: 374, Exhibit 13.1 Difficulty: Moderate Type: Fact 2. 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) Answer: A Page: 374, Exhibit 13.1 Difficulty: Hard Type: Fact and Application 3. The U.S. exports around $700 billion in various merchandise categories each year. Which of the following merchandise categories leads all others in U.S. exports with approximately 29.4 percent of all exports? A) foods, feeds, and beverages B) industrial supplies C) capital goods (construction, equipment, aircraft, computers, telecommunications) D) automotive vehicles, engines, and parts E) consumer goods (pharmaceuticals, tobacco, toys, clothing) Answer: C Page: 374, Exhibit 13.1 Difficulty: Moderate Type: Fact and Application
  • 3. Chapter 13 Products and Services for Businesses 4. 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 Answer: E Page: 374, Exhibit 13.1 Difficulty: Hard Type: Fact and Application 5. 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) none of the above really describes the industrial goods market Answer: B Page: 374 Difficulty: Moderate Type: Comprehension and Application 6. Two basic factors account for greater market similarities among industrial goods customers than among consumer goods customers. Which of the following would be one of those factors? A) the inherent nature of the product B) the motive of the user is the same C) the intent of the user is the same D) the tie to services E) the perishability of the product Answer: A Page: 374-375 Difficulty: Moderate Type: Comprehension 7. 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. Answer: D Page: 375 Difficulty: Moderate Type: Comprehension
  • 4. Chapter 13 Products and Services for Businesses 8. 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. Answer: D Page: 375 Difficulty: Moderate Type: Comprehension 9. 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 Answer: C Page: 375-376 Difficulty: Hard Type: Comprehension 10. 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 Answer: D Page: 377 Difficulty: Easy Type: ComprehensionFill in the Blank Questions 1. With respect to the major categories of U.S. exports in the services sector, __________ leads all other categories with 9 percent of the total exports. Answer: travel Page: 374, Exhibit 13.1 Difficulty: Hard Type: Fact 2. With respect to the major categories of U.S. exports, __________ leads all other
  • 5. Chapter 13 Products and Services for Businesses categories with 29.4 percent of the total exports. Answer: capital goods Page: 374, Exhibit 13.1 Difficulty: Hard Type: Fact 3. One of the two basic factors that accounts for greater market similarities among industrial goods customers than among consumer goods customers is the motive or intent of the user differs. For example, industrial consumers are seeking ________, whereas the ultimate consumer is seeking satisfaction. Answer: profits Page: 374-375 Difficulty: Easy Type: Comprehension and Application 4. Three factors seem to affect the demand in international industrial markets differently than in consumer markets. One of these factors is that demand in industrial markets is by nature more _________. Answer: volatile Page: 375 Difficulty: Moderate Type: Comprehension 5. Demand dependent on another source is called ___________ demand. Answer: derived Page: 377 Difficulty: Easy Type: Definition 6. Stage 1 in the Rostow economic development model is classified as the ________ society where industrial demand is associated with natural resource extraction. Answer: traditional Page: 378 Difficulty: Moderate Type: Definition 7. Stage 2 in the Rostow economic development model is classified as the preconditions for __________ where primary needs are related to infrastructure development. Answer: takeoff Page: 378 Difficulty: Easy Type: Definition 8. Russian and Eastern European countries fit Stage ________ (#) of the Rostow economic development model. Answer: 3 Page: 378 Difficulty: Moderate Type: Comprehension and Application 9. In the Rostow economic development model, Stage 5 countries purchase the highest technology products and services most from Stage ________ (#) countries. Answer: 5 Page: 378 Difficulty: Easy Type: Comprehension and Application 10. The price-____ relationship is an important factor in marketing in developing economies.
  • 6. Chapter 13 Products and Services for Businesses Answer: quality Page: 380 Difficulty: Easy Type: ComprehensionEssay Questions 1. Describe the two basic factors that account for greater market similarities among industrial goods customers than among consumer goods customers. Page: 374-375 Difficulty: Easy Type: Comprehension Answer: The two factors are (a) the inherent nature of the product and (b) the motive or intent of the user differs. 2. Three factors seem to affect the demand in international industrial markets differently than in consumer markets. What are these factors? Page: 375 Difficulty: Moderate Type: Comprehension Answer: The factors are (a) demand in industrial markets is by nature more volatile, (b) stages of industrial and economic development affect demand for industrial products, and (c) the level of technology of products and services makes their sale more appropriate for some countries than others. 3. Explain the concept of derived demand. Provide an illustration. Page: 377 Difficulty: Easy Type: Definition and Application Answer: Derived demand can be defined as demand dependent on another source. Several examples are presented on page 377. GMs demand for steel is predicated on consumers demand for cars. 4. Describe the most advanced stage of Rostows economic development model. Page: 378 Difficulty: Moderate Type: Definition and Application Answer: The most advanced stage (Stage 5) is called the age of mass consumption. These are countries where design activities are going on and manufacturing techniques are developing, and they are mostly service economies. These countries purchase their highest technology products and services mostly from other Stage 5 suppliers, and consumer products from Stage 3 and Stage 4 countries.
  • 7. Chapter 13 Products and Services for Businesses 5. What is ISO 9000? Page: 384 Difficulty: Moderate Type: Definition Answer: ISO 9000 is a series of international industrial standards developed by the International Organization for Standardization to meet the need for product quality assurances in purchasing agreements.Application Questions 1. Mark Trent is trying to decide on the best possible communication and promotion vehicle for presenting his product in the European marketplace. According to information presented in the text, what has become the primary vehicle for doing business in many foreign countries? Explain and justify your answer. Page: 389-392 Difficulty: Moderate Type: Comprehension and Application Answer: Trade shows and trade fairs have rapidly become the primary way for U.S. firms to market their wares in the international arena. Trade shows serve as the most important vehicles for selling products, reaching prospective customers, contacting and evaluating prospective agents and distributors, and marketing in many countries. For additional information on trade shows see pages 389-392.

Ă—