Question 1

What is a drawback of longer distribution channels?

Accepted Answer

Longer distribution channels often involve more intermediaries, each adding their own markup, which can lead to higher prices for consumers.

Question 2

What is a characteristic of channel quality?

Accepted Answer

Channel quality often varies more in emerging markets and less developed nations due to less established retail infrastructures compared to developed nations.

Question 3

Which kind of retail systems tend to promote the growth of wholesalers to serve retailers, which lengthens distribution channels?

Accepted Answer

Fragmented retail systems consist of many small, independent retailers, which often rely on wholesalers to distribute products, thus lengthening the distribution channels.

Question 4

One advantage of longer distribution channels is

Accepted Answer

Longer distribution channels can provide greater market access by reaching more customers through intermediaries, expanding the product's availability and presence in different markets.

Question 5

When determining her company's distribution strategy in the United Kingdom, Caroline of Peterson Products found that the country's retail sector was very concentrated. How should her company respond to this?

Accepted Answer

In a concentrated retail sector, dealing directly with retailers can be more efficient and cost-effective, as it reduces the need for intermediaries like wholesalers.

Question 6

While wines from the United States have won prizes in international blind taste tests, the perception of American wines is generally low in continental Europe, particularly France. ________ refers to the extent to which the place of manufacturing influences product evaluations.

Accepted Answer

Country of origin effects refer to the influence of the place of manufacturing on product evaluations.

Question 7

What results when the retail sector is very concentrated?

Accepted Answer

When the retail sector is concentrated, there are fewer retailers with larger market shares, making it efficient for firms to deal directly with these retailers, bypassing wholesalers.

Question 8

Source effects are damaging for an international business when

Accepted Answer

Source effects are damaging when potential consumers have a bias against foreign firms, as this can negatively impact their perception of the product or brand.

Question 9

The Indian retail market is very fragmented with many small independent stores. The distribution structure in India typically involves two levels of distributors (large regional wholesalers and smaller city-wide wholesalers). All of these lead to a long distribution channel. Homer Products is concerned about India's long distribution channel for its products. What is a drawback of longer distribution channels that could affect Homer Product's decision?

Accepted Answer

Longer distribution channels often involve multiple intermediaries, each adding their own markup, leading to greater aggregate markups and potentially higher final prices for consumers.

Question 10

What factor contributes to greater retail concentration in developed countries?

Accepted Answer

The presence of refrigerators and freezers in households allows consumers to store more food, reducing the frequency of shopping trips and encouraging larger, less frequent purchases. This supports the growth of larger retail stores and chains, contributing to greater retail concentration.

Question 11

What is the most important determinant of channel length?

Accepted Answer

The answer of What is the most important determinant of...

Question 12

Kim will only buy cars from Japanese automakers because she thinks cars made in the United States are of inferior quality. She has this belief even though she has never studied the ratings of cars made in the United States. What type of communication barrier does this represent?

Accepted Answer

This represents the "country of origin effect," where a consumer's perception of a product is influenced by the country where it is made, regardless of actual product quality or performance data.

Question 13

The Hopper Leg Winery from California's Sonoma Valley is trying to enter the wine market in France. To the company's surprise, it found that the France wine distribution channel was difficult to access as an outsider. Based on this, the market must have a(n) ________ distribution channel.

Accepted Answer

An exclusive distribution channel is one where access is limited and controlled, often making it difficult for new entrants or outsiders to penetrate.

Question 14

Cassidy, the international sales manager for Knoll Home Products, is trying to determine the channel length for Brazil, a market the company hopes to enter. What is the most important consideration she should take into account?

Accepted Answer

The degree to which the retail system is fragmented is crucial because it affects how many intermediaries are needed in the distribution channel. A fragmented retail system may require a longer channel to reach consumers effectively.

Question 15

Anson Apparel's marketing message in the United States is one of apparel for the rugged man who spends most of his time outdoors. While this marketing message has worked very well for the company, it is concerned about using the same marketing message in its new market in China. What factor limits Anson Apparel's ability to use the same marketing message in both the United States and China?

Accepted Answer

Cultural differences between the United States and China may require different marketing messages to effectively resonate with consumers in each market.

Question 16

The number of intermediaries between the product (or manufacturer) and the consumer is referred to as

Accepted Answer

Channel length refers to the number of intermediaries between the product (or manufacturer) and the consumer.

Question 17

What is a critical variable that can affect a company's international communication?

Accepted Answer

Noise levels can significantly impact the clarity and effectiveness of international communication by introducing misunderstandings or misinterpretations.

Question 18

The sales manager for Jensen Exports is deciding on the firm's distribution strategy in several markets. He wants to find an area with a shorter channel length. Which factor is the best indicator of this?

Accepted Answer

The entry of large discount superstores typically indicates a shorter channel length because these stores often buy directly from manufacturers, reducing the number of intermediaries in the distribution channel.

Question 19

While watching television, Jillian saw a commercial for a product that was "made in Taiwan." She immediately dismissed the product being advertised because the last item she bought that was made there fell apart in just two weeks. What is affecting this advertising communication?

Accepted Answer

Jillian's perception of the product is influenced by her previous negative experience with a product from Taiwan, which is an example of source effects, where the origin of the product affects the consumer's perception and decision-making.

Question 20

Lots-of-Light Lanterns manufactures emergency lighting systems and markets them in underdeveloped countries that often lack easy access to electrical power. As the owner, LaTisha Reynolds knows that to successfully enter a foreign market, the retailers will have to be educated on how these products work. What factor is she considering?

Accepted Answer

LaTisha Reynolds is considering channel quality, which involves ensuring that retailers are knowledgeable and capable of effectively selling and supporting the product.

Quiz 16: Global Marketing and RD