Question 1

Which of the following about ISO 9000 is true?

Accepted Answer

ISO 9000s were originally designed by the International Organization for Standardization in Geneva. ISO 9000 standards do not apply to specific products. It is a certification of the production process only and does not guarantee that a manufacturer produces a "quality" product or service. The series describes three quality system models.

Question 2

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

Accepted Answer

Most business services companies enter international markets to service their local clients abroad. Most recently, healthcare services providers have been following firms abroad. Once established, many of these client followers, as one researcher refers to them, expand their client base to include local companies as well.

Question 3

Which of the following countries is not officially on the metric system?

Accepted Answer

The only two countries not officially on the metric system are Myanmar and the United States. It is becoming increasingly evident that the United States must change or be left behind.

Question 4

Many suppliers are adopting ISO 9000 standards because:

Accepted Answer

As the market demands quality and more and more companies adopt some form of TQM, manufacturers are increasingly requiring ISO 9000 registration of their suppliers.

Question 5

Research has shown that 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?

Accepted Answer

After-sales services are not only crucial in building strong customer loyalty and the all-important reputation that leads to sales at other companies, but they are also almost always more profitable than the actual sale of the machinery or product.

Question 6

A strong level of interest in ISO 9000 is being driven more by:

Accepted Answer

A strong level of interest in ISO 9000 is being driven more by marketplace requirements than by government regulations, and ISO 9000 is now an important competitive marketing tool in Europe and around the world.

Question 7

The _____ measures customers' satisfaction and perceptions of quality of a representative sample of America's goods and services.

Accepted Answer

The American Customer Satisfaction Index (ACSI) measures customers' satisfaction and perceptions of quality of a representative sample of America's goods and services.

Question 8

For many technical products, the willingness of the seller to provide _____ may be the deciding factor for the buyers accepting one company's product over another's.

Accepted Answer

For many technical products, the willingness of the seller to provide installation and training may be the deciding factor for the buyers in accepting one company's product over another's.

Question 9

The mode of entry for most consumer services firms is licensing, franchising, strategic alliances, or direct. This tendency is so because of the:

Accepted Answer

The mode of entry for most consumer services firms is licensing, franchising, strategic alliances, or direct. This tendency is so because of the inseparability of the creation and consumption of the services.

Question 10

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

Accepted Answer

Until the GATT and NAFTA agreements, few international rules of fair play governed trade in services.

Question 11

ISO 9000 concerns the:

Accepted Answer

ISO 9000 concerns the registration and certification of a manufacturer's quality system.

Question 12

What is the most serious threat to the continued expansion of international services trade?

Accepted Answer

Protectionism is the most serious threat to the continued expansion of international services trade.

Question 13

McDonald's Hamburger University is known for having one of the finest (and most famous) international customer training facilities in the world. This is part of McDonald's _____ when dealing with international customers.

Accepted Answer

Customer training is rapidly becoming a major after-sales service when selling technical products in countries that demand the latest technology but do not always have trained personnel. While perhaps McDonald's Hamburger University is the most famous international customer training center, industrial sellers may soon catch up.

Question 14

Identify the correct statement about ISO 9000.

Accepted Answer

To receive ISO 9000 certification, a company requests a certifying body to conduct an audit of the key business processes of a company. The object is to develop a comprehensive plan to ensure that minute details are not overlooked. The assessor helps management create a quality manual, which will be made available to customers wishing to verify the organization's reliability. Although ISO 9000 is generally voluntary, except for certain regulated products, the EU Product Liability Directive puts pressure on all companies to become certified.

Question 15

For many industrial products, the revenues from associated services exceed the revenues from the products. Which of the following examples best illustrates this statement?

Accepted Answer

For many industrial products, the revenues from associated services exceed the revenues from the products. Perhaps the most obvious case is cellular phones, in which the physical product is practically given away to gain the phone services contract.

Question 16

To spur U.S. industry into action, the _____ indicated that accepting the metric system will not be mandatory unless you want to sell something to the U.S. government; all U.S. government purchases are to be conducted exclusively in metric.

Accepted Answer

To spur U.S. industry into action, the Department of Commerce indicated that accepting the metric system will not be mandatory unless you want to sell something to the U.S. government; all U.S. government purchases are to be conducted exclusively in metric.

Question 17

The ready availability of parts and services provided by U.S. marketers can give them _____ in international markets.

Accepted Answer

The ready availability of parts and services provided by U.S. marketers can give them a competitive edge.

Question 18

Because some business services have intrinsic value that can be embodied in some tangible form, they can be produced in one country and exported to another. Which of the following is an example of this?

Accepted Answer

Because some business services have intrinsic value that can be embodied in some tangible form, they can be produced in one country and exported to another. Data processing and data analysis services are good examples.

Question 19

Which of the following is considered to be an important competitive tool in Europe?

Accepted Answer