international sourcing decisions and the role of the supplier

Question 1

what is original equipment manufacturer

Answer 1

customer of a sub supplier

Question 2

what is vertical integration

Answer 2

strategy that allows a company to streamline its operations by taking direct ownership of various stages of its production process rather than relying on external contractors or suppliers

Question 3

what are the reasons for internal sourcing

Answer 3

1. concentration on in-house competenties
2. lower wages
3. general cost efficiency
4. increased innovation potential
5. fluctuating demand buffer

Question 4

what are the two different marketing exchanges

Answer 4

transaction and relationship

Question 5

what are characteristics of marketing exchange transaction

Answer 5

time horizon: short
switching costs: low
objective: needs satisfaction
customer understanding: anonymous
marketer’s task: price, product
core: selling products

Question 6

what are the characteristics of marketing exchange relationship

Answer 6

time horizon: long
switching costs: high
objective: customer integration
customer understanding: well-known
marketer’s task: problem solving
core: selling service

Question 7

what is a marriage metaphor

Answer 7

process of reducing the distance and increase the dependence between buyer and seller. shared value and joint investments in the relationship

Question 8

what is the dissolution phase

Answer 8

the divorce: termination of the relationship. it can make the assets dedicated to the relationship obsolete

Question 9

what is the relationship phase

Answer 9

awareness> exploration> expansion> commitment> dissolution

Question 10

what is reverse marketing

Answer 10

the buyer takes the initiative in searching for a supplier that is able to fulfil its needs