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1、Chapter 12 Global Placement and Distribution Channels ? Multiple Choice Questions ? 1. Lorenzo is assessing the internal factors that impact his channel development in the Middle East. Among other issues, he is considering _________________________________________. ? ? A.? market penetr

2、ation objectives and the financial strength of his firm B.? local regulations C.? consumer shopping habits and market size D.? the stage of the product’s life cycle ? 2. Adeena is finalizing her distribution strategy in Indonesia, and is developing statistics regarding local reg

3、ulations, the competitive climate, and consumer shopping habits there. Adeena is assessing ________________________. ? ? A.? both internal and external factors B.? the stage of the product life cycle C.? external factors D.? internal factors ? ? True / False Questions ?

4、 3. Choosing indirect export as an international market entry mode will provide complete control of the foreign marketing strategy. ? ? True????False ? 4. Strategic alliances and franchising agreements allow constant monitoring of sales activities abroad. ? ? True????False ? ? Multiple

5、Choice Questions ? 5. In Europe, products such as milk, snack foods, and cigarettes are purchased with high frequency, and found in almost every possible outlet. The distribution strategy used for these types of items would be ____________________. ? ? A.? specialty B.? exclusive C.

6、? selective D.? intensive ? 6. High end kitchen cookware manufacturer LeCreuset’s products are widely available through specialized retailers such as Bed, Bath and Beyond, and can also be found at department store chains such as Macys.?However, the product is not heavily distributed thro

7、ugh other types of retailers such as discount stores. LeCreuset’s distribution strategy would be considered ________________. ? ? A.? intensive B.? selective C.? exclusive D.? dual ? 7. In an exclusive distribution strategy, ___________________________________. ? ? A.?

8、 only a limited number of retailers have the right to sell products in their specific territories B.? product is made available exclusively through online sales C.? competitive products are not allowed to be sold in the same store D.? products are sold in every available distribution

9、outlet ? 8. Rolex watches employs a(n) _______________________ distribution strategy. ? ? A.? limited B.? selective C.? intensive D.? exclusive ? 9. Beechwood Gums has identified a high market penetration as one of its key objectives in pursuing the market in Russia.

10、Accordingly, it will require a(n) _______________ distribution strategy, and a _____________ financial investment. ? ? A.? selective, moderate B.? exclusive, minimal C.? intensive, large D.? intensive, minimal ? ? True / False Questions ? 10. The intimacy of distributo

11、r relationships is more intense as the complexity of the product increases. ? ? True????False ? ? Multiple Choice Questions ? 11. Mary Kay, Amway, and Avon lost significant sales in China due to the nature of their distribution network and the __________________ environment. ? ? A.? s

12、ociocultural B.? legal/regulatory C.? technological D.? economic ? ? True / False Questions ? 12. The type of distribution outlets used for a specific product in multiple foreign markets is one factor that is easily standardized. ? ? True????False ? 13. The stage of th

13、e product life cycle in which your product is currently operating is one consideration in distribution strategy development. ? ? True????False ? ? Multiple Choice Questions ? 14. In Yemen, consumer products are primarily distributed via small, often mobil retail kiosks situated in a local

14、souk, or town marketplace. Residential luxuries such as refrigerators are not as readily available, so food and other items are purchased on a daily basis. This scenario speaks to the dimensions of _______________ and ______________ which must be considered when establishing a foreign market distrib

15、ution strategy. ? ? A.? consumer shopping habits, outlet preferences B.? market size, consumer distribution C.? life cycle stage, regulations D.? economics, education ? ? True / False Questions ? 15. Procter and Gamble’s venture into rural Chinese consumer products dis

16、tribution has not produced satisfactory results for the firm. ? ? True????False ? 16. In a growing economy it is expected that retail and wholesale institutions becomes larger and more specialized, while less efficient intermediaries exit the market. ? ? True????False ? ? Multiple Choice

17、 Questions ? 17. When Greatlands Beer salespeople sell their products to consumers at holiday events and fairs across the U.K., they are employing this type of distribution. ? ? A.? intensive B.? business to business C.? indirect D.? direct ? 18. The food brokers and sup

18、ermarkets who sell Mertensen’s salt to the consumer are classified as ___________________. ? ? A.? distribution centers B.? wholesalers C.? intermediaries D.? principals ? 19. The number of levels and types of intermediaries which perform some work to bring the product to t

19、he final user defines distribution channel?______________. ? ? A.? mix B.? breadth C.? width D.? length ? 20. If Wendy is assessing her distribution network on the basis of the types of retailers to whom she sells; for example, convenience stores, department stores, and dis

20、count outlets, she is analyzing channel ________________. ? ? A.? width B.? length C.? directness D.? standardization ? 21. Invotech sells the latest in large scale printing equipment to wallpaper producers, who depend on the firm for continuous service and technical suppor

21、t. Invotech’s best option for distribution involves ________________________. ? ? A.? direct sales through an internal sales force B.? indirect sales involving distributors and retailers C.? three-tiered distribution D.? indirect sales involving distributors ? ? True / Fa

22、lse Questions ? 22. Online purchases are typically confined to products like books and airline tickets. ? ? True????False ? ? Multiple Choice Questions ? 23. Intermediaries perform all of these functions except ________________________. ? ? A.? after-sales service B.? selling

23、 C.? product development D.? promotion ? 24. The benefits of using intermediaries in foreign markets include all of these except ________________________. ? ? A.? increased control of pricing policy at various channel stages B.? reduction in the number of exchanges C.?

24、reduction of cultural barriers D.? simplification of the selling process ? 25. ? ? A.? horizontal B.? VMS C.? When intermediaries are independent and they act as if they are running a separate business they are participating in a ____________________distribution channel.

25、 D.? vertical ? 26. Wal-Mart stores depend in large part on their suppliers to monitor Wal-Mart’s inventory levels at their various distribution centers. When supplies of a particular product are diminished, it is up to the suppliers themselves to place reorders on behalf of Wal-Mart. This a

26、rrangement would reflect the cooperation found in _______________. ? ? A.? diagonal marketing system B.? traditional marketing system C.? horizontal marketing system D.? vertical marketing system ? 27. Royal Crest Soda?bottlers around the world, under contract with Royal Cr

27、est, are charged with the compounding of ingredients to produce Royal Crest products and subsequently distribute the finished goods. These bottlers are representative of ___________________ VMS. ? ? A.? corporate B.? contractual C.? administrative D.? integration ? 28. When

28、 manufacturers create sales branches and offices that perform the wholesale function, they are creating a(n) ______________ VMS system. ? ? A.? corporate B.? contractual C.? administrative D.? arm's length ? 29. Hampton Road is an exclusive manufacturer and marketer of luxu

29、ry, high end luggage and travel accessories. As it expands to the Indian market, it is not satisfied with the distribution partners available there, fearing that they do not exhibit the right image for the brand. Hampton Road should consider _____________________________. ? ? A.? direct-to-cons

30、umer sales B.? contract manufacturing C.? forward integration by company-owned stores D.? eliminating plans to market in India ? 30. Hernando works for Global Industrial Sales Corporation. He sells a large number of diverse but related product lines for manufacturers that produc

31、e construction-related products. Acting on behalf of the manufacturers, he obtains sales contracts and forwards them directly to his principals without taking title to the goods. Hernando is compensated via commission on sales. Global Industrial Sales Corporation represents a(n) ____________________

32、________. ? ? A.? agent B.? wholesaler C.? distributor D.? retailer ? 31. When CCD Industries buys cleaning products from KleenRite Chemicals and resells them to the hospitality industry, they are performing a(n) ____________ function. ? ? A.? retailer B.? wholesa

33、ler C.? industrial agent D.? manufacturer's representative ? 32. Auckland Supply provides purchases and resells on behalf of many industries who manufacture safety equipment for use in production facilities and medical institutions. While the company takes title to the goods, they do

34、 not inventory the items, which are drop-shipped directly to the purchasers from the manufacturer. Auckland is an example of a(n) _____________________. ? ? A.? broker B.? agent C.? full-service wholesaler D.? limited-service wholesaler ? ? True / False Questions ? 33.

35、 Due to limited income levels in underdeveloped country markets, sales are typically made on a direct basis without the use of wholesalers in order to reduce end-user prices. ? ? True????False ? 34. In foreign markets, wholesaler power is concentrated in the hands of a few companies that operat

36、e on a nationwide basis. ? ? True????False ? ? Multiple Choice Questions ? 35. Edgemont has a network of 200 outlets across Europe. The company purchases and inventories products, then resells the items to consumers while providing after sales services. Edgemont is a(n) ? ? A.? agent

37、 B.? distributor C.? retailer D.? wholesaler ? ? True / False Questions ? 36. Because of the similarities in geography, culture, and consumer buying behavior, retailing formats for groceries in Europe are congruous from country to country. ? ? True????False ? 37. Retail

38、ing giant Tesco is successful in global markets primarily due to its ability to standardize retail formats among markets and take advantage of the consequent economies of scale. ? ? True????False ? ? Multiple Choice Questions ? 38. Helga is conducting extensive research on CoreMark Constru

39、ction Product Distributors?in Hong Kong. She is dissecting the company’s financial statements and credit ratings and reading up on CoreMark brand’s influence in the marketplace. ? ? A.? Helga is considering CoreMark as a distributor partner in Hong Kong. B.? Helga has signed CoreMark as he

40、r new distributor in Hong Kong. C.? Helga has decided to terminate her partnership with CoreMark in Hong Kong. D.? Helga has recently acquired CoreMark. ? 39. When Michelin taught its distributors how to promote its new line of tires based on their superior product characteristics, t

41、hey exhibited the channel management practice of __________. ? ? A.? coverage management B.? motivational programs C.? performance management D.? capability-building programs ? ? True / False Questions ? 40. Distributor partners are motivated primarily through the prov

42、ision of monetary benefits such as higher commissions. ? ? True????False ? Chapter 12 Global Placement and Distribution Channels Answer Key ? Multiple Choice Questions ? 1. Lorenzo is assessing the internal factors that impact his channel development in the Middle East. Among othe

43、r issues, he is considering _________________________________________. ? ? A.? market penetration objectives and the financial strength of his firm B.? local regulations C.? consumer shopping habits and market size D.? the stage of the product’s life cycle Correct! ? 2. Ade

44、ena is finalizing her distribution strategy in Indonesia, and is developing statistics regarding local regulations, the competitive climate, and consumer shopping habits there. Adeena is assessing ________________________. ? ? A.? both internal and external factors B.? the stage of the pro

45、duct life cycle C.? external factors D.? internal factors There are no internal factors included in Adeena's research. ? ? True / False Questions ? 3. Choosing indirect export as an international market entry mode will provide complete control of the foreign marketing strategy.

46、? ? FALSE Choosing indirect export as an international market entry mode often forces the company to delegate its distribution choices to a foreign partner. ? 4. Strategic alliances and franchising agreements allow constant monitoring of sales activities abroad. ? ? TRUE Correct! ? ?

47、 Multiple Choice Questions ? 5. In Europe, products such as milk, snack foods, and cigarettes are purchased with high frequency, and found in almost every possible outlet. The distribution strategy used for these types of items would be ____________________. ? ? A.? specialty B.? exclus

48、ive C.? selective D.? intensive 'Specialty' is not considered a type of distribution strategy, but in dealing with the products noted in the question, it would be clear that these are not specialty items. ? 6. High end kitchen cookware manufacturer LeCreuset’s products are widely ava

49、ilable through specialized retailers such as Bed, Bath and Beyond, and can also be found at department store chains such as Macys.?However, the product is not heavily distributed through other types of retailers such as discount stores. LeCreuset’s distribution strategy would be considered _________

50、_______. ? ? A.? intensive B.? selective C.? exclusive D.? dual Because LeCreuset's distribution is through specialized retailers it would not be considered intensive. ? 7. In an exclusive distribution strategy, ___________________________________. ? ? A.? only a limit

51、ed number of retailers have the right to sell products in their specific territories B.? product is made available exclusively through online sales C.? competitive products are not allowed to be sold in the same store D.? products are sold in every available distribution outlet Corr

52、ect! ? 8. Rolex watches employs a(n) _______________________ distribution strategy. ? ? A.? limited B.? selective C.? intensive D.? exclusive The term 'limited' is not one which is used to describe a specific distribution strategy. ? 9. Beechwood Gums has identified a h

53、igh market penetration as one of its key objectives in pursuing the market in Russia. Accordingly, it will require a(n) _______________ distribution strategy, and a _____________ financial investment. ? ? A.? selective, moderate B.? exclusive, minimal C.? intensive, large D.? int

54、ensive, minimal The goal of high market penetration, and the nature of the product, indicate that selective distribution would be an inappropriate strategy for this product. ? ? True / False Questions ? 10. The intimacy of distributor relationships is more intense as the complexity of the

55、 product increases. ? ? TRUE Correct! ? ? Multiple Choice Questions ? 11. Mary Kay, Amway, and Avon lost significant sales in China due to the nature of their distribution network and the __________________ environment. ? ? A.? sociocultural B.? legal/regulatory C.? techno

56、logical D.? economic These firms' Chinese sales were limited by new regulations which required their salespeople to pass an exam administered by local authorities. ?This would not be a sociocultural restriction. ? ? True / False Questions ? 12. The type of distribution outlets used f

57、or a specific product in multiple foreign markets is one factor that is easily standardized. ? ? FALSE Refer to Table 12-1 to see how dispersed just one product category can be in terms of distribution strategy in varied global markets. ? 13. The stage of the product life cycle in which your

58、product is currently operating is one consideration in distribution strategy development. ? ? TRUE Correct! ? ? Multiple Choice Questions ? 14. In Yemen, consumer products are primarily distributed via small, often mobil retail kiosks situated in a local souk, or town marketplace. Reside

59、ntial luxuries such as refrigerators are not as readily available, so food and other items are purchased on a daily basis. This scenario speaks to the dimensions of _______________ and ______________ which must be considered when establishing a foreign market distribution strategy. ? ? A.? cons

60、umer shopping habits, outlet preferences B.? market size, consumer distribution C.? life cycle stage, regulations D.? economics, education Correct! ? ? True / False Questions ? 15. Procter and Gamble’s venture into rural Chinese consumer products distribution has not produc

61、ed satisfactory results for the firm. ? ? FALSE See Box 12-1 in your text for further details. ? 16. In a growing economy it is expected that retail and wholesale institutions becomes larger and more specialized, while less efficient intermediaries exit the market. ? ? TRUE Correct! ? ?

62、 Multiple Choice Questions ? 17. When Greatlands Beer salespeople sell their products to consumers at holiday events and fairs across the U.K., they are employing this type of distribution. ? ? A.? intensive B.? business to business C.? indirect D.? direct The strategy wo

63、uld not be considered intensive as it involves only a limited type of retail outlet. ? 18. The food brokers and supermarkets who sell Mertensen’s salt to the consumer are classified as ___________________. ? ? A.? distribution centers B.? wholesalers C.? intermediaries D.? pr

64、incipals Distribution centers are large scale warehouses and not a form of channel partner. ? 19. The number of levels and types of intermediaries which perform some work to bring the product to the final user defines distribution channel?______________. ? ? A.? mix B.? breadth C

65、.? width D.? length See Figure 12-2 for more details. ? 20. If Wendy is assessing her distribution network on the basis of the types of retailers to whom she sells; for example, convenience stores, department stores, and discount outlets, she is analyzing channel ________________. ? ?

66、 A.? width B.? length C.? directness D.? standardization Correct! ? 21. Invotech sells the latest in large scale printing equipment to wallpaper producers, who depend on the firm for continuous service and technical support. Invotech’s best option for distribution involves ________________________. ? ? A.? direct sales through an internal sales force B.? indirect sales involving distributors and retailers C.? three-tiered distribution D.? indirect sales