Question 1

Foreign legislation affecting distribution and agents is part of what is termed 'distribution culture'.

Accepted Answer

Foreign legislation affecting distribution and agents is indeed part of the cultural norms and practices that shape the distribution industry, often referred to as 'distribution culture'.

Question 2

Red markets refer to authentic and legitimately manufactured trademark items that are produced and purchased abroad but imported or diverted to the country by bypassing designated channels.

Accepted Answer

Red markets refer to the illegal trade or sale of counterfeit or pirated goods, not to legitimately manufactured items that are imported by bypassing official channels.

Question 3

Because only a few products are sold directly to ultimate users, an international marketer has to decide on alternative ways to move products to chosen markets.

Accepted Answer

This statement is true. Most products are sold through intermediaries, such as distributors, wholesalers, or retailers, who help move products to the final customers in various markets. As an international marketer, it is important to choose the right distribution channels and partners to effectively reach the target audience in different countries.

Question 4

Carbon footprint is not as relevant as it was it the past due to more efficient international logistics.

Accepted Answer

While more efficient logistics have reduced the carbon footprint of international trade, it is still a significant contributor to greenhouse gas emissions and remains a relevant concern for environmental sustainability.

Question 5

There are four forms of 'flow' in the channel, and they include physical, transactional, routine and information.

Accepted Answer

The four forms of 'flow' in marketing channels are product flow, information flow, negotiation flow, and ownership flow.

Question 6

Because most marketers have a vested interest in the distribution of their products, they structure the channel relationships so that they control the distribution systems from manufacturer to customer.

Accepted Answer

The answer of Because most marketers have a vested interest...

Question 7

The demographic and psychographic characteristics of targeted customers will form the basis for channel design decisions and, in any case, channel design refers to the length and width of the channel employed.

Accepted Answer

The statement is true. The characteristics of targeted customers, such as their age, income, and lifestyle, will influence the choice of channels used to reach them, and channel design encompasses the number and types of intermediaries involved in distributing a product or service to its intended market.

Question 8

The 11 'C's checklist is used to determine channel structure and relationships.Three of the factors are not controllable because the firm must adjust to existing structures.These factors are culture, competition and coverage.

Accepted Answer

The answer of The 11 'C's checklist is used to...

Question 9

The 'trade-off' concept in international logistics is based on the notion that material flow activities can be considered only in the context of their interaction.

Accepted Answer

The answer of The 'trade-off' concept in international logistics is...

Question 10

Pirates no longer exist.

Accepted Answer

While there may be fewer incidents of piracy in modern times due to increased naval patrols and security measures, piracy still exists in certain areas such as the coast of Somalia and the Strait of Malacca.

Question 11

Global internet penetration grew at a rate of approximately 550 per cent from 2000 to 2012.

Accepted Answer

According to data from the International Telecommunication Union, global internet penetration grew from 6.5% in 2000 to 35.7% in 2012, which represents a growth rate of approximately 450%.

Question 12

JIT systems are not popular in international distribution due to lower inventory costs.

Accepted Answer

The statement is false. JIT systems are popular in international distribution precisely because they can help reduce inventory costs, as well as improve efficiency and speed of delivery.

Question 13

If a business depends on an outside distribution system (that may have regional or global coverage), it is considered to have intra-company links.

Accepted Answer

An outside distribution system implies inter-company links, as it involves coordination between different companies, rather than intra-company links, which would involve distribution within the same company.

Question 14

Neglect of logistics issues brings only higher costs but not the risk of eventual non-competitiveness due to diminished market share, more expensive supplies or lower profits.

Accepted Answer

Neglect of logistics issues can lead to higher costs, risks of non-competitiveness, diminished market share, more expensive supplies, and lower profits. It is important to prioritize logistics issues to remain competitive in the market.

Question 15

The easiest approach for the firm seeking intermediaries is to consult trade directories.

Accepted Answer

The answer of The easiest approach for the firm seeking...

Question 16

Selective coverage entails having a number of intermediaries for each area to be penetrated.

Accepted Answer

Selective coverage involves having a limited number of intermediaries in specific areas for better penetration instead of having a large number of intermediaries spread out.

Question 17

The term 'coverage' includes the quality of the representations of a company's products.

Accepted Answer

The term 'coverage' refers to the extent to which something is covered or provided, and in the context of a company's products, it can refer to the extent of media coverage, distribution coverage or market coverage. Quality of representations of the products falls under media coverage and hence, is included in the term 'coverage'.

Question 18

The importance of structuring channel relationship is further compounded by the fact that the channel decision is the most long-term of the marketing mix decisions in that, once changed, it cannot easily be dissolved.

Accepted Answer

Channel relationships, while important and often long-term, can be adjusted or dissolved if necessary, although it may involve significant effort, cost, and strategic realignment.

Question 19

Channel configuration of services and consumers goods is practically the same.

Accepted Answer

The channel configuration of services and consumer goods is typically not the same. While both may involve a chain of intermediaries from producer to consumer, the specific types of intermediaries and distribution channels used can vary significantly depending on the industry and product category. For example, service providers may rely heavily on direct sales, online platforms, or referral networks, whereas consumer goods may be distributed through wholesalers, retailers, or specialized dealers.

Question 20

The connections made by marketing institutions are not solely for the physical movement of goods.They also serve as transactional title flows and informational communications flows.

Accepted Answer

Marketing institutions not only move physical goods, but also facilitate transactional title flows (such as transfers of ownership) and informational communications flows (such as marketing messages and feedback from customers).

Quiz 8: Channels of distribution and logistics