Question 1

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.

Accepted Answer

The answer of Distribution channels for automobiles in Japan and...

Question 2

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

Accepted Answer

Treating local distributors as temporary market-entry vehicles can undermine long-term relationships and market presence, as successful market entry often relies on building strong, enduring partnerships with local distributors.

Question 3

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

Accepted Answer

"Cherry picking" refers to the practice of selecting only the best or most profitable items from what is available, which might not be beneficial for a new exporter looking to establish a broad presence in a new market. A middleman with such a reputation might ignore less immediately profitable products, limiting the exporter's market exposure.

Question 4

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.

Accepted Answer

This statement is true. Flagship retail stores allow companies to gather important information about consumer behavior, preferences, and purchasing habits, which can inform future product development and marketing strategies.

Question 5

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.

Accepted Answer

The statement is referring to the guideline of looking for distributors capable of developing markets, rather than just relying on their existing contacts to generate quick sales.

Question 6

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.

Accepted Answer

Establishing their own sales force is not an activity that companies typically engage in when using an indirect involvement channel. This is because indirect involvement channels rely on intermediaries such as agents, distributors, and retailers to sell products on their behalf, rather than the company's own sales force.

Question 7

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

Accepted Answer

The keiretsu system is a network of Japanese businesses and manufacturers that have close relationships and collaborate together, often through cross-shareholdings. The close long-term relationships between auto salespersons and the Japanese people can be described as a similar network or system, where trust and loyalty are key factors in sustaining the relationships.

Question 8

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

Accepted Answer

The guidelines recommend that newcomers should first identify and evaluate potential channel intermediaries based on their own preferences and criteria, and then invite selected distributors to participate in the business relationship.

Question 9

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.

Accepted Answer

Giving local distributors control over marketing strategy may not always be the best approach, as the company may have specific branding and promotion guidelines to maintain consistency across international markets. The other guidelines are appropriate for selecting independent distributors.

Question 10

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

Accepted Answer

A cherry picker typically refers to a type of aerial work platform used for accessing high areas, not someone focused on market development for new products.

Question 11

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

Accepted Answer

The answer of A distributor with good contacts is the...

Question 12

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

Accepted Answer

Treating a local independent distributor as a long-term partner rather than a temporary solution can lead to stronger relationships, better market understanding, and more sustainable success in the new market.

Question 13

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

Accepted Answer

The answer of Western luxury goods marketers such as Jean...

Question 14

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

Accepted Answer

Channel obstacles are more commonly encountered in competitive markets where brands and supply relationships are already well established, making it difficult for a new entrant to secure shelf space or distribution partnerships.

Question 15

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.

Accepted Answer

The answer of Nestlé in Brazil is using door-to-door selling...

Question 16

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

Accepted Answer

The answer of Tesco made vigorous effort to penetrate the...

Question 17

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.

Accepted Answer

All the options provided are considered appropriate guidelines for companies when selecting independent distributors in international markets. Selecting distributors actively ensures a better match with the company's goals, looking for distributors capable of developing markets ensures growth, treating local distributors as long-term partners fosters loyalty and cooperation, and maintaining control over marketing strategy ensures consistency with the company's overall objectives.

Question 18

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.

Accepted Answer

This statement is true. Michael Dell's strategy of direct sales and customization helped Dell become a top player in the PC industry.

Question 19

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.

Accepted Answer

The answer of In Japan, the biggest barrier facing U.S....

Question 20

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

Accepted Answer

The statement is true. Mary Kay expanded into second- and third-tier locations in China after establishing a presence in the first-tier cities.

Quiz 12: Global Marketing Channels and Physical Distribution