国际市场营销学 （原书第18版）测试题答案 Chapter 14 – Products and Services for Businesses-answerkey

Copyright©2020McGraw-HillEducation.Allrightsreserved.

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