Deck 12: Global Marketing Channels and Physical Distribution

Question 1

eBay pioneered a form of online commerce known as p-to-p or peer-to-peer marketing whereby individual consumers market products to other individuals.

Answer 1

True

Question 2

Prior to 2017,H&M was growing at a torrid pace,however,several changes took place which are represented by all of the following statements except:

A)revenue growth was driven by store openings and the company did not open new stores.
B)profits have been stagnant since discount retailers have lower prices.
C)online competitors are putting a lot of pressure on H&M sales.
D)customers are lured away by Britain's Asos and Germany's Zalando free shipping offers.
E)H&M had a successful business model,which did not change with market conditions.

Answer 2

A

Question 3

Sales representatives in which Japanese industry cultivate close long-term relations with customers by selling door-to-door?

A)consumer electronics
B)pharmaceuticals
C)automobiles
D)soft drinks
E)groceries

Answer 3

C

Question 4

To motivate shopkeepers to stock more of P&G's products,the company launched a:

A)door-to-door program.
B)retail store program.
C)golden store program.
D)hypermarket program.
E)sole distributor program.

Question 5

Peer-to-peer (p-to-p)marketing uses distribution channels through:

A)business-to-consumers.
B)electronic commerce.
C)business-to-business.
D)door-to-door.
E)manufacturer-to-wholesalers.

Question 6

Some wine importers insist on shipping their wines in refrigerated containers to protect the wines from being damaged by high temperatures.Such importers are creating which kind of utility?

A)place utility
B)time utility
C)form utility
D)information utility
E)worker utility

Question 7

Which of the following most accurately describes the relative length of consumer and industrial distribution channels?

A)Consumer channels tend to be longer (consist of more intermediaries)than industrial channels.
B)Industrial channels tend to be longer (consist of more intermediaries)than consumer channels.
C)Both consumer and industrial channels tend to be long (consist of several intermediaries).
D)Both consumer and industrial channels tend to be short (consist of few intermediaries).
E)Consumer channels tend to be shorter (consist of few intermediaries)than the industrial channels.

Question 8

What solution did Andersen Consulting provide to the Moscow Bread Company to solve the problem of stale bread?

A)Deliver the bread frozen.
B)Package the bread in plastic bags.
C)Convert to a paperless office to cut red tape.
D)Deliver the bread sliced rather than in whole loaf form.
E)Use paper packaging for bread.

Question 9

The American Marketing Association defines a channel of distribution as "an organized network of agencies and institutions that,in combination,perform all the activities required to link ________ with users to accomplish the marketing task."

A)stores
B)retailers
C)producers
D)marketers
E)competitors

Question 10

In less-developed countries the most important channel of distribution is:

A)door to door.
B)public marketplaces.
C)wholesale marketplaces.
D)pyramid schemes.
E)retail stores.

Question 11

eBay was a pioneer in a form of online marketing known as:

A)b-to-c.
B)b-to-b.
C)p-to-p.
D)d-to-d.
E)c-to-b.

Question 12

In exchange for a pledge to carry at least 40 different Procter & Gamble products,participating stores receive regular visits from P&G representatives who tidy and arrange display areas.This motivational program is referred to as:

A)"buy-in-bulk" store program.
B)"high-frequency" store program.
C)"mom-and-pop" store program.
D)"shop operators" program.
E)"golden store" program.

Question 13

Which personal computer company began life as a b-to-b marketer and then began marketing direct to the home PC market?

A)Hewlett-Packard
B)Compaq
C)Dell
D)Acer
E)Sony

Question 14

In ________,the Tupperware brand is associated with hip young women rather than traditional homemakers:

A)Romania
B)Indonesia
C)China
D)Russia
E)France

Question 15

Coca-Cola Company's global marketing leadership position is based in part on its ability to put Coke "within an arm's reach of desire";in other words,it is the ability to create:

A)place utility.
B)time utility.
C)form utility.
D)information utility.
E)all of the above

Question 16

Retail stores vary in size from giant hypermarkets to small stores in Latin America called pulperías.

Question 17

The retail environment in developing countries presents challenges for marketing nonperishable items.In Mexico,Proctor & Gamble,Unilever,Colgate-Palmolive,and other global consumer product companies use ________ for their products.

A)door-to-door selling
B)buy-in-bulk selling
C)mom-and-pop stores
D)franchised stores
E)manufacturer-owned stores

Question 18

Which country has the biggest market for Tupperware?

A)Romania
B)Indonesia
C)China
D)Russia
E)India

Question 19

The availability of the product processed,prepared,in proper condition,and\or ready to use is referred to as:

A)place utility.
B)price utility.
C)information utility.
D)form utility.
E)product utility.

Question 20

Specialty retailers such as Zara,H&M,and Uniqlo are just three of the many elements that make up distribution channels around the globe.

Question 21

The cherry picker is most interested in developing a market for a new product,which helps an expanding international company.

Question 22

A distributor with good contacts may appear to be the obvious choice in terms of generating quick sales and revenues but may not be the best one.Which of the guidelines for companies selecting independent distributors is this statement referring to?

A)Select distributors;don't let them select you.
B)Look for distributors capable of developing markets.
C)Give local distributors control over marketing strategy.
D)Treat local distributors as long-term partners.
E)From the start maintain control.

Question 23

An exporter that is new to a particular market would do well to choose a middleman with a reputation for "cherry picking" products.

Question 24

Nestlé in Brazil is using door-to-door selling to reach low-income neighborhoods;Dell computers provides home delivery for its products;Avon is using sales representatives and other companies are using other methods to reach consumers.Describe different channels that can be used for reaching the customers.

Question 25

Distribution channels for automobiles in Japan and the United States are similar in that most car buyers in both countries visit dealerships before making a purchase.

Question 26

It is advisable to treat local distributors as temporary market-entry vehicles.

Question 27

In Japan,the biggest barrier facing U.S.auto manufacturers is that half the cars that are sold each year are sold door-to-door.

Question 28

A distributor with good contacts is the best one to select in terms of generating quick sales and revenues.

Question 29

Western luxury goods marketers such as Jean Paul Gaultier (France)and Harmont & Blaine (Italy)have long relied on direct involvement for distribution.

Question 30

Which of the following is not an appropriate guideline for companies selecting independent distributors in international markets?

A)Select distributors;don't let them select you.
B)Look for distributors capable of developing markets.
C)Give local distributors control over marketing strategy.
D)Treat local distributors as long-term partners.
E)All of the above are appropriate guidelines.

Question 31

Tesco made vigorous effort to penetrate the U.S.market.

Question 32

After successfully penetrating China's first-tier cities,Mary Kay expanded into second- and third-tier locations.

Question 33

Dell's rise to a leading position in the global PC industry was based on Michael Dell's decision to bypass conventional channels by selling direct and by building computers to customers' specifications.

Question 34

When utilizing the services of a local independent distributor,management is well advised to treat the distributor as a temporary market-entry vehicle.

Question 35

Apple,Levi Strauss,Nike,Sony,well-known fashion design houses,and other companies with strong brands sometimes establish flagship retail stores as a means of obtaining marketing intelligence.

Question 36

Channel obstacles are often encountered when a company enters a competitive market where brands and supply relationships are less established.

Question 37

When companies adopt an indirect involvement channel they have all of the following activities except:

A)utilize independent agents.
B)use distributors.
C)utilize retailers.
D)establish their own sales force.
E)utilize those who have a network of stores.

Question 38

The close long-term relationships between auto salespersons and the Japanese people can be considered as a consumer version of the keiretsu system.

Question 39

Which of the following is an appropriate guideline for companies selecting independent distributors in international markets?

A)Select distributors;don't let them select you.
B)Look for distributors capable of developing markets.
C)Treat local distributors as long-term partners.
D)Maintain control over marketing strategy from day one.
E)All of the above are appropriate guidelines.

Question 40

The first step in the guidelines to help newcomers in choosing a channel intermediary is to let the distributors select the business.

Question 41

When Walmart entered the German market,________ were already entrenched.

A)specialty retailers
B)discount retailers
C)hard discounters
D)hypermarkets
E)supermarkets

Question 42

When Walmart stores first expanded into Mexico,management established a joint venture with the country's largest retailer.Judging by the approach Walmart used,management must have viewed Mexico as:

A)culturally close and easy to enter.
B)culturally distant and easy to enter.
C)culturally close and difficult to enter.
D)culturally distant and difficult to enter.
E)culturally difficult and easy to enter.

Question 43

The quadrant that offers a good example of a global retailer with a niche focus as well as an own-label focus is:

A)quadrant A.
B)quadrant B.
C)quadrant C.
D)quadrant D.
E)quadrant E.

Question 44

Which of the following is the largest retailer in the world in terms of annual sales according to the top five global retailers,2017?

A)Tesco PLC
B)Metro AG
C)Aldi
D)Carrefour
E)no correct answer

Question 45

Channel decisions are important because:

A)commitments are flexible.
B)relationships change with time.
C)it is expensive to terminate.
D)issues can be solved by arbitration.
E)local laws do not protect agreements.

Question 46

Dell's rise to a leading position in the global PC industry was based on Michael Dell's decision to bypass conventional channels by selling direct and by customizing computers.Discuss the importance of channel innovation,giving examples of piggyback marketing in emerging markets.

Question 47

Dollar stores are classified under:

A)convenience stores.
B)specialty retailers.
C)discount retailers.
D)hard discounters.
E)category killers.

Question 48

By definition,________ feature a narrow but deep merchandise mix and high levels of service.

A)department stores
B)specialty retailers
C)supermarkets
D)convenience stores
E)discount stores

Question 49

Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter?

A)organic growth
B)chain acquisition
C)franchise
D)joint venture
E)own-label focus

Question 50

Which of the following categories best describes the approach of Britain's Marks & Spencer to global retailing?

A)few product categories,own-label focus
B)few product categories,manufacturer brand focus
C)many product categories,own-label focus
D)many product categories,manufacturer brand focus
E)none of the above

Question 51

"Nakumatt" is a supermarket chain in:

A)Kenya.
B)India.
C)Japan.
D)Korea.
E)Indonesia.

Question 52

Which of the following correctly characterizes the retailing strategy of Benetton,IKEA,and Gap?

A)few product categories,own-label focus
B)few product categories,manufacturer brand focus
C)many product categories,own-label focus
D)many product categories,manufacturer brand focus
E)none of the above

Question 53

Departmentalized,single-story retail establishments that offer food and nonfood items,mostly on a self-service basis are called:

A)specialty retailers.
B)supermarkets.
C)convenience stores.
D)discount retailers.
E)hyper markets.

Question 54

When devising a channel strategy,it is necessary to be realistic about the intermediary's motives.What is "cherry picking" and how does it affect careful selection of a channel strategy?

Question 55

In the matrix-based scheme for classifying global retailers,in which quadrant does IKEA fall between retailers?

A)quadrant A
B)quadrant B
C)quadrant C
D)quadrant D
E)quadrant E

Question 56

"Organized retail" is a term used to describe:

A)modern chain stores.
B)grocery stores.
C)local retail chains.
D)supermarkets.
E)hypermarkets.

Question 57

Which of the following does not qualify as a "category killer?"

A)Victoria's Secret
B)IKEA
C)Home Depot
D)Circuit City
E)Toys "R" Us

Question 58

Companies entering emerging markets for the first time must exercise particular care in choosing a channel intermediary.Generally,a local distributor is required.What are some of the guidelines that should be considered in selecting a distributor in order to avoid any problems?

Question 59

Which of the following correctly characterizes the retailing strategy shared by Virgin Megastores?

A)few product categories,own-label focus
B)few product categories,manufacturer brand focus
C)many product categories,own-label focus
D)many product categories,manufacturer brand focus
E)none of the above

Question 60

Which of the following statements is not correct?

A)Walmart pulled out of Germany and South Korea.
B)Best Buy closed several stores in China.
C)Home Depot pulled out of China.
D)Mattel closed its flagship Barbie store in Shanghai.
E)Tesco shut down Fresh & Easy stores in the United States.

Question 61

Laura Ashley,The Body Shop,Victoria's Secret,Starbucks,the Disney Store and Gap are examples of global retail operators that can be classified as specialty retailers since they offer less variety than department stores.

Question 62

Today,"conbinis" are ubiquitous in Japan,with tens of thousands of store locations.

Question 63

The French Connection Group PLC closed all of its U.S.and Japanese stores,as well as underperforming stores in Europe.

Question 64

Swedish furniture retailer IKEA pulled meatballs from its cafeterias and grocery sections in several countries after food inspectors found some samples that contained horse meat.

Question 65

The reason why Saks Fifth Avenue has licensed stores in the Middle East is to limit their risk when targeting unfamiliar,difficult-to-enter markets.

Question 66

A variety of environmental factors have combined to push retailers out of their home markets in search of opportunities around the globe.All of the following reasons are responsible for such a move except:

A)saturation of the home-country market.
B)a recession in the home-country.
C)strict regulation on store development.
D)high operating costs.
E)high population growth.

Question 67

Hypermarkets are a hybrid retailing format combining the discounter,supermarket,and warehouse club approaches under a single roof.

Question 68

Germany's Aldi and Lidl ("Where quality is cheaper!")and France's Leader Price ("Le Prix La Qualité en Plus!")are among the most popular discount retailers.

Question 69

Selfridge fell victim to various demons and vices and was ousted from the company he had founded.

Question 70

Saks Fifth Avenue has ________ stores in the Middle East.

A)licensed
B)organic
C)franchise
D)joint venture
E)own-label focus

Question 71

When British entrepreneur Richard Branson established the first Virgin Megastore in France,he invested a great deal of money to develop a retail space on the famous Champs-Elysées.Judging by the approach Branson used,he and his management team must have viewed France as:

A)culturally close and easy to enter.
B)culturally distant and easy to enter.
C)culturally close and difficult to enter.
D)culturally distant and difficult to enter.
E)culturally difficult and easy to enter.

Question 72

When Carrefour,Tesco,or Walmart set up shop in developing countries,they provide customers with access to more products but at higher prices than were available previously.This is an example of global retailing.

Question 73

The entry global retailing market expansion strategies include all of the following except:

A)franchise.
B)chain acquisition.
C)departmental stores.
D)joint ventures.
E)organic.

Question 74

Walmart's international expansion in the mid-1990s coincided with disappointing financial results in its home market.

Question 75

Japanese retailers traditionally offered few extra services to clientele;their stock was chosen not according to consumer demand but,rather,according to purchasing preferences of the stores.

Question 76

Nakumatt,is a supermarket chain in Kenya,where people go to show that they are educated and prosperous and cognizant of larger affairs.

Question 77

Walmart pulled out of Germany;Best Buy closed several stores in China.These examples illustrate that it is not possible to export a retail business model that has proven successful in the domestic market.

Question 78

Retailers may have a difficult time crossing borders if they fail to appreciate similarities in retailing environments,and consumer behavior and preferences.

Question 79

The world's five largest malls are in Asia.

Question 80

Today's global retailing scene is characterized by great diversity.