Chapter 13
Products and Services for Businesses
True / False Questions
1.Compared to practices in product markets, protectionism is much less prevalent in international
services markets.
2.The most rapidly growing sector of U.S. international trade today consists of business
services--accounting, advertising, banking, consulting, et cetera.
3.For managers selling capital equipment and big-ticket industrial services, understanding the
concept of derived demand is absolutely fundamental to their success.
4.One of the ways that an industrial firm can manage against the inherent volatility of the
industrial sector is to maintain broad product lines.
5.With respect to Rostow's five-stage model of economic development, in Stage 1 (the traditional
society), the most important industrial demand is associated with labor.
Multiple Choice Questions
1. Services are an important element for U.S. exports. The main product U.S. businesses export
is:
A. agricultural products
B. technology
C. toys
D. home appliances
E. automotive vehicles
2.Natalie is a new international sales rep for an industrial supply company. She will learn that the
inherent nature of industrial good and the sameness in motive and behavior among business
customers create a market where product and marketing mix __________________ are
commonplace.
A. celebrity status
B. generic brand names
C. standardization
D. simplification
E. regulations
3. 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. the industrial goods market vary across cultural groups
4. Along with industrial goods, 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.
5.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
Essay Questions
1. Describe the two basic factors that account for greater market similarities among industrial
goods customers than among consumer goods customers.
2.Three factors seem to affect the demand in international industrial markets differently than in
consumer markets. What are these factors?