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NoreproductionordistributionwithoutthepriorwrittenonsentofMcGraw-HillEducation.
InternationalMarketing,18e(Cateora)
Chapter15InternationalMarketingChannels
1)Thedistributionprocessincludespromotionofgoodsandservicesbysellersandresellers.
Answer:FALSE
Explanation:Thedistributionprocessincludesthephysicalhandlinganddistributionofgoods,thepassageofownership(title),andthebuyingandsellingnegotiationsbetweenproducersandmiddlemenandbetweenmiddlemenandcustomers.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
2)Thebehaviorofchannelmembersinthedistributionprocessistheresultoftheinteractionsbetweentheculturalenvironmentandthemarketingprocess.
Answer:TRUE
Explanation:Thebehaviorofchannelmembersistheresultoftheinteractionsbetweentheculturalenvironmentandthemarketingprocess.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
3)Inanimport-orienteddistributionstructure,supplyoftenexceedsdemand.
Answer:FALSE
Explanation:Inanimport-orientedortraditionaldistributionstructure,animportercontrolsafixedsupplyofgoods,andthemarketingsystemdevelopsaroundthephilosophyofsellingalimitedsupplyofgoodsathighpricestoasmallnumberofaffluentcustomers.Intheresultingseller'smarket,marketpenetrationandmassdistributionarenotnecessarybecausedemandexceedssupply,andinmostcases,thecustomerseeksthesupplyfromalimitednumberofmiddlemen.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
4)Traditionaldistributionchannelsindevelopingcountriesevolvedfromeconomieswithastrongdependenceonimportedmanufacturedgoods.
Answer:TRUE
Explanation:Traditionalchannelsindevelopingcountriesevolvedfromeconomieswithastrongdependenceonimportedmanufacturedgoods.Inanimport-orientedortraditionaldistributionstructure,animportercontrolsafixedsupplyofgoods,andthemarketingsystemdevelopsaroundthephilosophyofsellingalimitedsupplyofgoodsathighpricestoasmallnumberofaffluentcustomers.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
5)Inatraditionaldistributionstructure,distributionsystemsarenationalratherthanlocalinscope.
Answer:FALSE
Explanation:Inthetraditionaldistributionstructure,distributionsystemsarelocalratherthannationalinscope.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
6)Inthetraditionaldistributionstructureinadevelopingcountry,independentagenciesthatprovidefacilitatingfunctionsarenonexistentorunderdeveloped.
Answer:TRUE
Explanation:Inatraditionaldistributionstructure,theimporter–wholesalerperformsmostofthemarketingfunctions.Hence,independentagenciesthatprovideadvertising,marketingresearch,warehousingandstorage,transportation,financing,andotherfacilitatingfunctionsfoundinadeveloped,maturemarketinginfrastructurearenonexistentorunderdeveloped.
Difficulty:2Medium
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
7)AdistinguishingcharacteristicoftheJapanesedistributionchannelsystemisthatitiscontrolledbyafewsmalllocalretailers.
Answer:FALSE
Explanation:TheJapanesesystemhasfourdistinguishingfeatures:(1)astructuredominatedbymanysmallmiddlemendealingwithmanysmallretailers,(2)channelcontrolbymanufacturers,(3)abusinessphilosophyshapedbyauniqueculture,and(4)lawsthatprotectthefoundationofthesystem—thesmallretailer.
Difficulty:1Easy
Topic:RetailersinForeignMarkets
LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
8)TheJapanesedistributionstructureissimilartoonesfoundintheUnitedStatesorEurope.
Answer:FALSE
Explanation:TheJapanesedistributionstructureisdifferentenoughfromitsU.S.orEuropeancounterpartsthatitshouldbecarefullystudiedbyanyonecontemplatingentry.TheJapanesesystemhasfourdistinguishingfeatures:(1)astructuredominatedbymanysmallmiddlemendealingwithmanysmallretailers,(2)channelcontrolbymanufacturers,(3)abusinessphilosophyshapedbyauniqueculture,and(4)lawsthatprotectthefoundationofthesystem—thesmallretailer.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
9)InthecontextofthedistributionstructureinJapan,ithasbeenobservedthatJapaneseconsumersfavorcheaperpricesoverpersonalservice.
Answer:FALSE
Explanation:TheJapaneseconsumercontributestothecontinuationofthetraditionalnatureofthedistributionsystemthroughfrequentbuyingtrips,smallpurchases,favoringpersonalserviceoverprice,andaproclivityforloyaltytobrandsperceivedtobeofhighquality.Additionally,Japaneselawgivesthesmallretailerenormousadvantageoverthedevelopmentoflargerstoresandcompetition.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
10)Astraditionalchannelstructuresarechanging,importersandretailersarebecominglessinvolvedinnewproductdevelopment.
Answer:FALSE
Explanation:Importersandretailersalsoarebecomingmoreinvolvedinnewproductdevelopment,aschannelexpansioncontributestofirmvalue;forexample,theMexicanapplianceandelectronicsgiantGrupoElektrahasformedanalliancewithBeijingAutomobileWorksGrouptodevelopandbuildlow-costcarsforMexicoandexportmarkets.
Difficulty:2Medium
Topic:RetailersinForeignMarkets
LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
11)Inthecontextofdistributionstructures,oneofWalmart'sstrengthsisitsabilitytoworkwithdistributorsone-on-one.
Answer:FALSE
Explanation:OneofWalmart'sstrengthsindistributionisitsinternalInternet-basedsystem,whichmakesitstransactionswithsuppliersmoreefficientandlowersitscostofoperations.Itisbuyingailingretailersaroundtheworldwiththeintentionof"savingthem"withitsdistributiontechnologies.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
12)Globally,wholesalingshowsagreaterdiversityinitsdistributionstructurethandoesretailing.
Answer:FALSE
Explanation:Retailingshowsgreaterdiversityinitsstructurethandoeswholesaling.
Difficulty:1Easy
Topic:RetailersinForeignMarkets
LearningObjective:15-03Howdistributionpatternsaffectthevariousaspectsofinternationalmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
13)Directmarketingworkswellinaffluentmarketsaswellasinmarketswithunderdevelopeddistributionsystems.
Answer:TRUE
Explanation:Sellingdirectlytotheconsumerthroughmail,bytelephone,ordoor-to-doorisoftentheapproachofchoiceinmarketswithinsufficientorunderdevelopeddistributionsystems.Theapproach,ofcourse,alsoworkswellinthemostaffluentmarkets.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-03Howdistributionpatternsaffectthevariousaspectsofinternationalmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
14)Agentmiddlemenworkoncommissionanddonottaketitletothemerchandise.
Answer:TRUE
Explanation:Agentmiddlemenworkoncommissionandarrangeforsalesintheforeigncountrybutdonottaketitletothemerchandise.Byusingagents,themanufacturerassumestradingriskbutmaintainstherighttoestablishpolicyguidelinesandpricesandtorequireitsagentstoprovidesalesrecordsandcustomerinformation.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
15)Merchantmiddlementendtobemorecontrollablethanagentmiddlemenbecausetheytaketitletomanufacturers'goods.
Answer:FALSE
Explanation:Merchantmiddlemenactuallytaketitletomanufacturers'goodsandassumethetradingrisks,sotheytendtobelesscontrollablethanagentmiddlemen.Becausemerchantmiddlemenprimarilyareconcernedwithsalesandprofitmarginsontheirmerchandise,theyarefrequentlycriticizedfornotrepresentingthebestinterestsofamanufacturer.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
16)Thedistributionchannelprocessincludesallactivities,beginningwiththemanufacturerandendingwiththeretailer.
Answer:FALSE
Explanation:Thedistributionchannelprocessincludesallactivities,beginningwiththemanufacturerandendingwiththefinalconsumer.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
17)Domesticmiddlemenoffermanyadvantagesforcompanieswithlargeinternationalsalesvolume.
Answer:FALSE
Explanation:Domesticmiddlemenoffermanyadvantagesforcompanieswithsmallinternationalsalesvolume,thoseinexperiencedwithforeignmarkets,thosenotwantingtobecomeimmediatelyinvolvedwiththecomplexitiesofinternationalmarketing,andthosewantingtosellabroadwithminimalfinancialandmanagementcommitment.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
18)Anexportmanagementcompany(EMC)functionsasalow-cost,independentmarketingdepartmentwithdirectresponsibilitytotheparentfirm.
Answer:TRUE
Explanation:Workingunderthenamesofthemanufacturers,theEMCfunctionsasalow-cost,independentmarketingdepartmentwithdirectresponsibilitytotheparentfirm.Theworkingrelationshipissoclosethatcustomersareoftenunawaretheyarenotdealingdirectlywiththeexportdepartmentofthecompany.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
19)TheWTOin2003ruledexportmanagementcompaniestobeinviolationofinternationaltraderules.
Answer:FALSE
Explanation:TheWTOin2003ruledforeignsalescorporationstobeinviolationofinternationaltraderules,thusstartingamajortradedisputewiththeEuropeanUnionthatstillsimmersandoccasionallyboilsover.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
20)TheExportTradingCompanyActallowsproducersofsimilarproductstoformexporttradingcompanies.
Answer:TRUE
Explanation:TheExportTradingCompany(ETC)Actallowsproducersofsimilarproductstoformexporttradingcompanies.AmajorgoaloftheETCActwastoincreaseU.S.exportsbyencouragingmoreefficientexporttradeservicestoproducersandsupplierstoimprovetheavailabilityoftradefinanceandtoremoveantitrustdisincentivestoexportactivities.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
21)TradingcompaniesprovidethebestmeansforintensivecoverageofthemarketinJapan.
Answer:TRUE
Explanation:Becausetradingcompaniesmaycontrolmanyofthedistributorsandmaintainbroaddistributionchannels,theyprovidethebestmeansforintensivecoverageofthemarket.ForcompaniesseekingentranceintothecomplicatedJapanesedistributionsystem,theJapanesetradingcompanyoffersoneoftheeasiestroutestosuccess.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
22)Usingforeign-countrymiddlemenmovesthemanufacturerawayfromthemarketandthecompanybecomeslessinvolvedwithproblemsoflanguage,physicaldistribution,communications,andfinancing.
Answer:FALSE
Explanation:Usingforeign-countrymiddlemenmovesthemanufacturerclosertothemarketandinvolvesthecompanymorecloselywithproblemsoflanguage,physicaldistribution,communications,andfinancing.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
23)Channelsofdistributionoftenposelongevityproblemsastheytendtobesmallinstitutions.
Answer:TRUE
Explanation:Channelsofdistributionoftenposelongevityproblems.Mostagentmiddlemenfirmstendtobesmallinstitutions.Whenoneindividualretiresormovesoutofalineofbusiness,thecompanymayfindithaslostitsdistributioninthatarea.Wholesalersandespeciallyretailersarenotnotedfortheircontinuityinbusinesseither.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
24)IntheUnitedStates,ifamiddlemanisterminated,thecompanyisrequiredtopay1percentofthemiddleman'saverageannualcompensationmultipliedbythenumberofyearsthemiddlemanservedasafinalsettlement.
Answer:FALSE
Explanation:IntheUnitedStates,terminationisusuallyasimpleactionregardlessofthetypeofmiddlemen;theyaresimplydismissed.However,inotherpartsoftheworld,themiddlemanoftenhassomelegalprotectionthatmakesterminationdifficult.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-05Theimportanceofselectingandmaintainingmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
25)Selectingamiddlemanisusuallyassimpleasaskingforarecommendationfromacompany'slocalmanager.
Answer:FALSE
Explanation:Thescreeningandselectionprocessforamiddlemanshouldincludeanexploratoryletterore-mailincludingproductinformationanddistributorrequirementsinthenativelanguagesenttoeachprospectivemiddleman;afollow-upwiththebestrespondentsforspecificinformationconcerninglineshandled,territorycovered,sizeoffirm,numberofsalespeople,andotherbackgroundinformation;checkofcreditandreferencesfromotherclientsandcustomersoftheprospectivemiddleman;and,ifpossible,apersonalcheckofthemostpromisingfirms.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-05Theimportanceofselectingandmaintainingmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
26)Legaladviceisnotnecessarywhenenteringdistributioncontractswithmiddlemen.
Answer:FALSE
Explanation:Competentlegaladviceisvitalwhenenteringdistributioncontractswithmiddlemen.Butasmanyexperiencedinternationalmarketersknow,thebestruleistoavoidtheneedtoterminatedistributorsbyscreeningallprospectivemiddlemencarefully.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-05Theimportanceofselectingandmaintainingmiddlemen.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
27)Ideally,awebsiteshouldbetranslatedintothelanguagesofthetargetmarket.
Answer:TRUE
Explanation:Ideally,awebsiteshouldbetranslatedintothelanguagesofthetargetmarkets.Thistranslationmaynotbefinanciallyfeasibleforsomecompanies,butatleastthemostimportantpagesofthesiteshouldbetranslated.
Difficulty:1Easy
Topic:HowthePhysicalEnvironmentandTechnologyInfluenceCulture
LearningObjective:15-06Thegrowingimportanceofe-commerceasadistributionalternative.
Bloom's:Remember
AACSB:Technology
Accessibility:KeyboardNavigation
28)Ane-vendorinaforeignmarketcangenerallyignorecultureasanimportantvariablebecausethecommerceisbeingdoneviatheInternet,whichisculturallyinsensitive.
Answer:FALSE
Explanation:Thewebsiteandtheproductmustbeculturallyneutraloradaptedtofittheuniquenessofamarket,becauseculturedoesmatter.
Difficulty:1Easy
Topic:HowthePhysicalEnvironmentandTechnologyInfluenceCulture
LearningObjective:15-06Thegrowingimportanceofe-commerceasadistributionalternative.
Bloom's:Remember
AACSB:Technology
Accessibility:KeyboardNavigation
29)Achangeoftransportationmodecanaffectachangeinpackagingandhandling,inventorycosts,warehousingtimeandcost,anddeliverycharges.
Answer:TRUE
Explanation:Achangeoftransportationmodecanaffectachangeinpackagingandhandling,inventorycosts,warehousingtimeandcost,anddeliverycharges.Sincecontainershipsmovemorethan95%oftheworld'smanufacturedgoods,changesincargocapacitycanhaveadramaticeffectonpricingflowofgoodsattheretaillevel.
Difficulty:1Easy
Topic:TheImportanceofProductionandLogisticsDecisions
LearningObjective:15-07Theinterdependenceofphysicaldistributionactivities.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
30)Aphysicaldistributionsysteminvolvesonlythephysicalmovementofgoods.
Answer:FALSE
Explanation:Aphysicaldistributionsysteminvolvesmorethanthephysicalmovementofgoods.Itincludesthelocationofplantsandwarehousing(storage),transportationmode,inventoryquantities,andpacking.
Difficulty:1Easy
Topic:TheImportanceofProductionandLogisticsDecisions
LearningObjective:15-07Theinterdependenceofphysicaldistributionactivities.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
31)The________processincludesthephysicalhandlinganddistributionofgoods,thepassageofownership(title),andthebuyingandsellingnegotiationsbetweenproducersandmiddlemenandbetweenmiddlemenandcustomers.
A)logistics
B)marketing
C)channel
D)distribution
E)control
Answer:D
Explanation:Thedistributionprocessincludesthephysicalhandlinganddistributionofgoods,thepassageofownership(title),and—mostimportantfromthestandpointofmarketingstrategy—thebuyingandsellingnegotiationsbetweenproducersandmiddlemenandbetweenmiddlemenandcustomers.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
32)Ina________distributionstructure,animportercontrolsafixedsupplyofgoodsandthemarketingsystemdevelopsaroundthephilosophyofsellingalimitedsupplyofgoodsathighpricestoasmallnumberofaffluentcustomers.
A)domestic
B)traditional
C)manufacturer-oriented
D)service
E)customer-oriented
Answer:B
Explanation:Inanimport-orientedortraditionaldistributionstructure,animportercontrolsafixedsupplyofgoods,andthemarketingsystemdevelopsaroundthephilosophyofsellingalimitedsupplyofgoodsathighpricestoasmallnumberofaffluentcustomers.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
33)Whichdistributionstructureisalsoknownasatraditionaldistributionstructure?
A)Export-oriented
B)Import-oriented
C)Manufacturer-oriented
D)Service-oriented
E)Customer-oriented
Answer:B
Explanation:Animport-orienteddistributionstructuresisalsoknownasatraditionaldistributionstructure.Inanimport-orientedortraditionaldistributionstructure,animportercontrolsafixedsupplyofgoods,andthemarketingsystemdevelopsaroundthephilosophyofsellingalimitedsupplyofgoodsathighpricestoasmallnumberofaffluentcustomers.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
34)Inanimport-orienteddistributionstructure,
A)theimporter–wholesalertraditionallyperformsmostofthemarketingfunctions.
B)therelationshipbetweentheimporterandanymiddlemanissimilartothatfoundinamass-marketingsystem.
C)severalindependentagenciesprovidefunctionssuchasadvertising,marketingresearch,andfinancing.
D)theideaofachannelasachainofintermediariesperformingspecificactivitiesiscommon.
E)thedistributionsystemisnationalinscope.
Answer:A
Explanation:Animport-orienteddistributionstructureisconsideredasatraditionaldistributionstructure.Sincetheimporter–wholesalertraditionallyperformsmostmarketingfunctions,independentagenciesthatprovideadvertising,marketingresearch,warehousing,andstoragearenonexistentorunderdeveloped.
Difficulty:2Medium
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
35)Distributionin________haslongbeenconsideredthemosteffectivenontariffbarriertothatmarket.
A)China
B)Japan
C)theU.S.
D)WesternEurope
E)Canada
Answer:B
Explanation:DistributioninJapanhashistoricallybeenconsideredthemosteffectivenontariffbarriertotheJapanesemarket.However,themarketisbecomingmoreopenasmanytraditionalmodesofoperationareerodinginthefaceofcompetitionfromforeignmarketersandasJapaneseconsumerscontinuetofocusonlowerprices.
Difficulty:1Easy
Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies
LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.
Bloom's:Remember
AACSB:AnalyticalThinking
Accessibility:KeyboardNavigation
36)WhatgroupisconsideredtobethefoundationoftheJapanesedistributionsystem?
A)consumers
B)brokers
C)manufacturers
D)smallretailers
E)wholesalers
Answer:D
Explanation:TheJapanesesystemhasfourdistinguishingfeatures:(1)astructuredominatedbymanysmallmiddlemendealingwithmanysmallretailers,(2)channelcontrolbymanufacturers,(3)abusinessphilosophyshapedbyauniqueculture,and(4)lawsthatprotectthefoundationofthesystem—thesmallretailer.
Difficulty:1Easy
Topic:Retaile
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