Deck 10: Global Distribution Strategies

Question 1

In designing a global marketing channel one should be concerned with channel width. This refers to:
(a) The number of intermediaries of each type in the channel
(b) The number of types of intermediaries in the channel
(c) The number of intermediaries on each side of the national border
(d) The number of intermediaries of each type in the foreign country
(e) None of the above

Answer 1

A

Question 2

Research has shown that Chinese channel leaders tend to rely on coercive power in their relationships.

Answer 2

False

Question 3

Which of the following is a consequence of parallel distribution?
(a) Strained relationships between the manufacturer and its authorized distributors
(b) Erosion of brand equity
(c) More complicated sales forecasting
(d) All of the above
(e) (a) and (b) only

Answer 3

D

Question 4

What is meant by the term 'keiretsu'? Why is the concept important to firms interested in penetrating the Japanese market?

Question 5

Identify three options available to the firm to distribute its products in foreign markets.

Question 6

One of the actions that firms can take against the gray trade is to provide consumers with stronger reasons to patronize authorized dealers. This is referred to as:
(a) Demand interference
(b) Dealer interference
(c) Public relations
(d) Strategic attack

Question 7

What is meant by the term 'parallel distribution'? Outline three strategic approaches to mitigating its impact on the global marketing firm.

Question 8

In designing a global marketing channel 'character' refers to:
(a) The integrity of the distributor being evaluated
(b) The nature of the product
(c) The integrity of the manufacturer
(d) The ability of the manufacturer to exercise power over other channel members

Question 9

In shipping products across international borders a __________________ may be required that states the country in which the products were manufactured.
(a) Commercial invoice
(b) Bill of lading
(c) Certificate of origin
(d) Shipper's export declaration
(e) Consular invoice

Question 10

Key differences between domestic and international logistics relate to:
(a) More complex decisions
(b) Increased risks
(c) More complex terms of trade
(d) All of the above
(e) (a) and (b) only

Question 11

In designing a global distribution channel for luxury goods why would control be an important consideration?

Question 12

In designing a global marketing channel 'cost' refers to:
(a) The financial requirements to set up the channel
(b) Expenses incurred in maintaining the channel once established
(c) The discounted value of the savings from designing a short channel
(d) The incremental expense from handling the last unit of production in the redesigned channel.

Question 13

Why do decentralized marketing channels illustrate the classic principal-agent problem?

Question 14

Which of the following is a condition for parallel distribution?
(a) A lack of government regulations on international trade
(b) Wide price differences between national markets
(c) Low transportation costs
(d) (a) and (b) only
(e) (b) and (c) only

Question 15

In designing a global distribution channel one may attempt to distribute the product through the largest number of different types of intermediaries and the largest number of individual intermediaries of each type. This is referred to as:
(a) Exclusive distribution
(b) Intensive distribution
(c) Selective distribution
(d) Normal distribution
(e) Cross border distribution