Farm Tuff Inc

question 106

Multiple Choice

Farm Tuff Inc. hired a local agent to handle marketing when it started exporting products to Europe. Unfortunately, the local agent also handled the marketing for a competitor, Agri-Corp., and Farm Tuff soon realized the agent could not be "loyal" to their product. What should Farm Tuff do to best remedy this situation to its advantage?

• A) Implement a tariff on their products.
• B) Discontinue their exporting efforts.
• C) Export only process technology to foreign firms.
• D) Develop a licensing deal instead of exporting.
• E) Set up a wholly owned subsidiary to handle local marketing.

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Definitions:

Perishable

Describes goods that have a limited lifespan and can deteriorate quickly if not consumed or used within a certain period, such as food products.

Delivery Gap

The difference between a company's service quality performance compared to customer service expectations.

Zone Of Tolerance

The area between customers’ expectations regarding their desired service and the minimum level of acceptable service—that is, the difference between what the customer really wants and what he or she will accept before going elsewhere.

Standards Gap

The difference between the quality standards set by a company for its products or services and the actual performance perceived by customers.