Question 1

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.

Accepted Answer

The answer of When British entrepreneur Richard Branson established the...

Question 2

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.

Accepted Answer

The examples of Walmart and Best Buy demonstrate that a retail business model successful in a domestic market may not necessarily work in an international market.

Question 3

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

Accepted Answer

This statement is true. The retail industry varies greatly across the world due to differences in economic development, cultural preferences, and local regulations.

Question 4

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.

Accepted Answer

These global retail operators are examples of specialty retailers because they focus on specific products or services, rather than offering a wide range of products like department stores.

Question 5

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

Accepted Answer

Walmart's international expansion in the mid-1990s was partly driven by disappointing financial results in its home market.

Question 6

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.

Accepted Answer

Japanese retailers have a culture of offering limited extra services and their stock is not always based on consumer demand but on purchasing preferences of the stores.

Question 7

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.

Accepted Answer

Global retailing refers to the operation of retail chains in multiple countries, and while it can lead to access to a wider range of products, it does not inherently mean that prices will be higher than previously available. Prices can vary based on several factors including local competition, supply chain efficiencies, and pricing strategies.

Question 8

The world's five largest malls are in Asia.

Accepted Answer

The five largest malls in the world are all located in Asia, with the largest being the New South China Mall in China.

Question 9

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

Accepted Answer

Nakumatt is seen as a prestigious supermarket chain in Kenya, where people go to demonstrate their status and awareness of the wider world.

Question 10

Saks Fifth Avenue has ________ stores in the Middle East.
A) licensed
B) organic
C) franchise
D) joint venture
E) own-label focus

Accepted Answer

Saks Fifth Avenue has licensed stores in the Middle East, meaning they have given permission to a third-party company to use their brand name and sell their products in that specific region.

Question 11

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

Accepted Answer

This statement is true, according to recent news reports. The French Connection Group PLC has decided to close all of its stores in the United States and Japan, as well as various underperforming stores in Europe, in order to focus on its online business and remaining profitable stores.

Question 12

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

Accepted Answer

Retailers may have a difficult time crossing borders if they fail to appreciate differences in retailing environments, and consumer behavior and preferences, as understanding local market nuances is crucial for success.

Question 13

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.

Accepted Answer

The entry global retailing market expansion strategies include franchise, chain acquisition, joint ventures, and organic strategies, but departmental stores are not considered a separate expansion strategy but rather a type of retail format.

Question 14

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

Accepted Answer

This statement is true. Selfridge did fall victim to various demons and vices, including gambling, extramarital affairs, and excessive spending, which led to his ousting from the company he had founded.

Question 15

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.

Accepted Answer

The answer of A variety of environmental factors have combined...

Question 16

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

Accepted Answer

Conbinis, which are convenience stores, are indeed ubiquitous in Japan with tens of thousands of store locations. They play a crucial role in Japanese society and are known for their convenience, cleanliness, and wide product variety.

Question 17

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.

Accepted Answer

Aldi and Lidl are popular discount retailers in Germany, and Leader Price is a popular discount retailer in France.

Question 18

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.

Accepted Answer

Licensing stores in the Middle East allows Saks Fifth Avenue to enter difficult-to-enter markets while limiting their risk by partnering with a local licensed operator who can navigate the local business environment.

Question 19

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.

Accepted Answer

This statement is true. IKEA did recall their meatballs in several countries after it was discovered that some samples contained horse meat.

Question 20

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

Accepted Answer

Hypermarkets offer a wide range of products at low prices, similar to discounters and supermarkets, and also operate on the warehouse club model of bulk buying and discount pricing. All of these approaches are combined in a single location.

Quiz 12: Global Marketing Channels and Physical Distribution

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: