Question 1

Which consumer characteristics of the targeted customers will form the basis for the channel design decisions?
A)Station approach and income level
B)Transactional analysis and future (predictable)categories of contingency
C)Lifetime value
D)Demographics and psychographics

Accepted Answer

Demographics and psychographics are the consumer characteristics that will help in designing the appropriate channels to reach the target audience. Demographics include age, gender, income level, education, and occupation, while psychographics include personality, values, lifestyle, and attitudes. By understanding these characteristics, businesses can identify the best channels to reach their target audience effectively.

Question 2

Which of the following is correct about sources of finding intermediaries?
A)The hardest approach for the firm seeking intermediaries is to consult trade directories.
B)Austrade provides tailor-made services that assist firms in identifying suitable representatives abroad.
C)Marketers should not use their websites to attract international distributors and agents as ideally they should be more proactive.
D)None of the above

Accepted Answer

Austrade is a government agency in Australia that helps businesses expand internationally. They offer services to help firms identify suitable representatives abroad, making option B the correct answer. Option A is incorrect as trade directories are actually one of the easiest ways to find potential intermediaries. Option C is also incorrect as using a website to attract international distributors and agents can be a very effective strategy.

Question 3

What is the most important document to the shipper, carrier and buyer?
A)Shipper export declaration
B)Bill of landing
C)Shipper agreement contract
D)Packing list

Accepted Answer

The Bill of Lading is the most important document for the shipper, carrier, and buyer. It serves as a contract of carriage between the shipper and carrier, evidence of receipt of goods by the carrier, and title to the goods for the buyer. The Shipper Export Declaration is only required for shipments needing clearance from government agencies, the Shipper Agreement Contract is an agreement between the shipper and carrier that outlines the terms of their relationship, and the Packing List provides details of what is included in the shipment but does not serve as a contract or evidence of ownership.

Question 4

Which of the following is incorrect? Retailers in Japan:
A)demand more from manufacturers and wholesalers than do other retailers.
B)expect wholesalers to build close relationships with their consumers.
C)expect returns of merchandise to be fully accepted even if there is no reason other than lack of sales.
D)expect significant amounts of financing and frequent delivery of products.

Accepted Answer

Retailers in Japan actually expect wholesalers to build close relationships with them, not their consumers. The other options are all true statements about Japanese retailers.

Question 5

The term 'distribution culture' means:
A)the language and business methods used in the supply channel.
B)the language, use of symbols and acceptable behaviour of channel members.
C)that industries tend to cluster geographically.
D)existing channel structures.

Accepted Answer

The answer of The term 'distribution culture' means:
A)the language and...

Question 6

Which of the following is not an internal determinant of channel structure and relationships?
A)Company objectives
B)Competition
C)Coverage
D)Communication

Accepted Answer

Competition is an external determinant of channel structure and relationships. The other options are internal determinants as they are directly influenced by the company itself.

Question 7

The type of channel chosen:
A)is an administrative decision based on costing rather than profit projections.
B)directly affects the distribution culture.
C)must match the overall positioning of the product in the market.
D)None of the above

Accepted Answer

The type of channel chosen must match the overall positioning of the product in the market. This means that the channel chosen should complement the brand image and target audience of the product. For example, a luxury brand would not be ideally distributed through a discount retailer or a mass-market channel. Therefore, the best choice would be C, as it emphasizes the need for strategic alignment between the channel and the product positioning.

Question 8

___________ will purchase the product and will therefore exercise more ____________ than ________.
A)Distributors; independence; agents
B)Distributors; dependence; agents.
C)Agents; dependence; distributors
D)Agents; independence; distributors

Accepted Answer

Distributors purchase the product and therefore exercise more independence than agents, who act on behalf of the company to sell its products but do not take ownership of them.

Question 9

What does the term 'channel design' mean?
A)The use of common product packaging within product families in a channel
B)The use of common texture within product families in a channel
C)The length and width of the channel employed
D)Development of the channel of communication to stockholders, particularly presentations and printed brochures

Accepted Answer

Channel design refers to the decisions made to determine the structure and elements of the distribution channel including the length and width of the channel employed.

Note: A and B are incorrect because they refer to product design, not channel design. D refers to investor relations, not distribution channels.

Question 10

Which of the following is not on the '11 Cs' checklist?
A)Country
B)Company objectives
C)Character
D)Capital

Accepted Answer

The answer of Which of the following is not on...

Question 11

Which of the following is not an advantage of a single distributor?
A)Promotional activities
B)Less noise in communication channel
C)More economical logistics flows
D)Elimination of intra-brand competition

Accepted Answer

All the other options are advantages of a single distributor, but promotional activities can still be done with multiple distributors.

Question 12

The more specialised, expensive, bulky or perishable is the product, and the more after-sales service it may require, the more likely:
A)the channel is relatively short.
B)the channel is relatively long.
C)multiple channels are used.
D)the channel is relatively wide.

Accepted Answer

When products are specialized, expensive, bulky, or perishable and require significant after-sales service, manufacturers tend to prefer shorter distribution channels. This allows for better control over the product, ensures quality service, and reduces the risk of damage or spoilage.

Question 13

Which of the following is not considered a channel?
A)Direct from producer to consumer
B)Multi-level
C)Business-to-business.
D)Trade-off

Accepted Answer

Trade-off is not considered as a channel. Channels are the ways through which products move from the producer to the final consumer or end-user. Direct from producer to consumer, multi-level, and business-to-business are all examples of channel types. Trade-off refers to the process of exchanging one thing for another.

Question 14

Some loss of control over the marketing of the firm's products comes from:
A)the use of intermediaries.
B)a short channel.
C)an over-taut relationship between marketer and intermediaries.
D)an intermediate channel.

Accepted Answer

The use of intermediaries in the distribution process often results in some loss of control over the marketing of a firm's products, as these intermediaries may make decisions or take actions that are not fully aligned with the firm's marketing strategy.

Question 15

According to the textbook, six sectors are forecast to lead the way in business-to-business online transactions.Which of the following is not in the six sectors?
A)Retail
B)Shipping
C)Technological products
D)Online marketing

Accepted Answer

Online marketing is not typically considered a sector leading in business-to-business online transactions, as it is more of a service or tool used across various sectors rather than a standalone sector itself.

Question 16

Which of the following is incorrect?
A)Sometimes, management goals may conflict with the best possible channel design.
B)Starbucks invests very little capital in international expansion (less than 5 per cent of revenue), and local partners bear all business risk.
C)Coca-Cola wins increased sales at the expense of displaced competition and a much lower cost-to-serve.
D)The term 'continuity' is used to describe both the number of areas in which the marketer's products are represented and the quality of that representation.

Accepted Answer

The term 'continuity' does not refer to the number of areas or the quality of representation; it generally refers to the consistency or ongoing nature of a marketing effort or campaign.

Question 17

According to the textbook, globalisation in the distribution function is taking place in two significant ways.Distribution formats are crossing borders, especially to newly emerging markets.The second trend is:
A)that intensive and selective coverage both call for longer channels using different types of intermediaries.
B)the globalisation of consumers themselves, either independently or through strategic alliances.
C)the globalisation of retailers themselves, either independently or through strategic alliances.
D)the globalisation of intermediaries themselves, either independently or through strategic alliances.

Accepted Answer

The answer of According to the textbook, globalisation in the...

Question 18

Channels used by competitors may be the only product distribution system that is accepted by the trade and consumers.In this case:
A)the international marketer may not be able to manipulate the distribution variable.
B)the international marketer may need to choose a partner capable of developing markets rather than one who has existing contracts.
C)developing a new distribution system is known as the 'green fields' scenario.
D)the international marketer may not be able to manipulate the distribution variable and the international marketer may need to choose a partner capable of developing markets rather than one who has existing contracts.

Accepted Answer

If the competitors have already established a distribution system that is widely accepted by the trade and consumers, the international marketer may not be able to manipulate the distribution variable. In this case, they may need to choose a partner capable of developing markets rather than one who has existing contracts. Therefore, the best choice is D.

Question 19

Which of the following statements about the termination of channel relationships is incorrect?
A)The most typical reason for termination is changes in the international marketer's distribution approach or a (perceived)lack of performance by the intermediary.
B)Channel relationships go through a life cycle.
C)Over time, the manufacturer's marketing capabilities increase while a distributor's ability and willingness to grow the manufacturer's business in that market decreases.
D)All the alternatives are correct.

Accepted Answer

All the provided statements are correct regarding the termination of channel relationships, making the statement that all alternatives are correct (D) the incorrect choice because it contradicts the premise of identifying an incorrect statement about channel relationship termination.

Question 20

What is the main reason to use an intermediary when introducing an internationally marketed product into a new foreign market?
A)Space reduction
B)Flighting of possible retailing expenditures
C)Relatively low-cost entry
D)Sensationalising the instalment precedent

Accepted Answer

The main reason to use an intermediary when introducing an internationally marketed product into a new foreign market is to achieve a relatively low-cost entry. Intermediaries such as agents or distributors can help reduce the costs and risks associated with entering a new market, such as language barriers, cultural differences, and legal requirements. They can also provide market knowledge, contacts, and distribution channels that can help the product reach its target customers more effectively. The other options (A, B, and D) are not relevant to the main reason for using an intermediary in this context.

Quiz 8: Channels of distribution and logistics

Which consumer characteristics of the targeted customers will form the basis for the channel design decisions?

Which of the following is correct about sources of finding intermediaries?

What is the most important document to the shipper, carrier and buyer?

Which of the following is incorrect? Retailers in Japan:

The term 'distribution culture' means:

Which of the following is not an internal determinant of channel structure and relationships?

The type of channel chosen:

___ will purchase the product and will therefore exercise more than .

What does the term 'channel design' mean?

Which of the following is not on the '11 Cs' checklist?

Which of the following is not an advantage of a single distributor?

The more specialised, expensive, bulky or perishable is the product, and the more after-sales service it may require, the more likely:

Which of the following is not considered a channel?

Some loss of control over the marketing of the firm's products comes from:

According to the textbook, six sectors are forecast to lead the way in business-to-business online transactions.Which of the following is not in the six sectors?

Which of the following is incorrect?

According to the textbook, globalisation in the distribution function is taking place in two significant ways.Distribution formats are crossing borders, especially to newly emerging markets.The second trend is:

Channels used by competitors may be the only product distribution system that is accepted by the trade and consumers.In this case:

Which of the following statements about the termination of channel relationships is incorrect?

What is the main reason to use an intermediary when introducing an internationally marketed product into a new foreign market?