Managing Volatility in International Industrial Markets

CHAPTER 14

1. Which of the following factors exacerbates the volatility in demand in industrial markets?

Professional buyers tend to act in concert.

2. Why are Japanese and German firms generally better at managing market volatility than American firms?

They value employees and stability very highly.

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

Takeoff.

4. The perception of quality rests solely with the:

customer.

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

Farmers in third world countries often prefer less-efficient and lower quality but easier-to-maintain products to do work tasks.

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

There is a lack of universal standards.

7. Which of the following is the international organization that is attempting to synchronize standards for several international industrial sectors?

The Global Harmonization Task Force

8. ISO 9000 involves the:

registration and certification of a manufacturer's quality system.

9. According to research, 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?

These services are almost always more profitable than the actual sale of the primary good itself.

10. B&F 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. To facilitate accommodate Oracle, B&F has now opened offices in two Indian cities and one Indonesian city. What would be the proper term to describe what B&F is doing with its own expansion into the above Asian markets?

Client following

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

GATT; NAFTA

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

Trade shows

13. _____ provide(s) the facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors' products

Trade shows

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

Culture

15. One of the key functions of global account managers revolves around the notion of:

intelligence gathering.