Question 1

A firm that uses e-commerce channels to enter new markets most likely wants to do all of the following EXCEPT________.
A) increase sales growth
B) minimize expansion risks
C) gain proximity to local suppliers
D) identify local customer priorities
E) limit staff and infrastructure expenditures

Accepted Answer

Using e-commerce channels to enter new markets may not necessarily require gaining proximity to local suppliers. The other options are all potential advantages of using e-commerce channels for market entry.

Question 2

How has the Internet accelerated international expansion efforts by retailers such as Neiman Marcus and J.Crew?
A) facilitating the construction of brick-and-mortar stores
B) monitoring sales revenues more efficiently with extranets
C) providing low cost access to new markets through e-commerce
D) enabling firms to provide online customer service in multiple languages
E) building a strong customer base through social media and viral advertising

Accepted Answer

The Internet has provided retailers with a low-cost access to new markets through e-commerce, allowing them to expand internationally without the need to construct brick-and-mortar stores. This enables them to reach a wider customer base in different parts of the world.

Question 3

What is the world's largest market for e-commerce sales?
A) Japan
B) China
C) Germany
D) United States
E) United Kingdom

Accepted Answer

The answer of What is the world's largest market for...

Question 4

Which of the following would LEAST likely help a manufacturer become a successful service provider?
A) creating a customer-centric organizational culture
B) forming deeper relationships with customers
C) gathering customer feedback and assessment
D) teaching channel members to sell services
E) investing in boundary spanning personnel

Accepted Answer

Teaching channel members to sell services may not directly help a manufacturer become a successful service provider, as channel members are not the ones providing the services. The other options all directly contribute to enhancing the manufacturer's ability to provide and improve their services.

Question 5

Company X plans to enter a foreign market by purchasing land and building a new facility.What should Company X most likely do to improve its chances of success?
A) develop a knowledgeable local network of business associates
B) send home-country representatives to manage construction
C) acquire a small, local firm in the logistics industry
D) engage in e-commerce to identify local demands
E) leverage economies of scale in the local market

Accepted Answer

Developing a knowledgeable local network of business associates will help Company X understand the cultural and business norms of the foreign market and build relationships with key stakeholders, which is essential for success. Sending home-country representatives may not have the same level of understanding of the local market and may face challenges in managing construction in a different cultural environment. Acquiring a small, local firm in the logistics industry may not be necessary if Company X can build its logistics capabilities in-house. Engaging in e-commerce can help identify local demands, but it may not be sufficient to ensure success in the foreign market. Leveraging economies of scale in the local market may be difficult if Company X is just entering the market and may require significant investment upfront.

Question 6

What is the primary drawback of online shopping for most customers?
A) restricted reach
B) lack of immediacy
C) limited assortment
D) complex infrastructures
E) minimal customer support

Accepted Answer

The primary drawback of online shopping for most customers is the lack of immediacy. Customers have to wait for the product to be shipped and delivered, which can take several days or even weeks.

Question 7

Which term refers to vertical channel partners using multiple routes to reach horizontal end-users?
A) hierarchical multichannel relationship
B) integrated channel strategy
C) channel free-riding
D) vertical integration
E) disintermediation

Accepted Answer

Hierarchical multichannel relationships involve vertical channel partners using multiple routes to reach horizontal end-users.

Question 8

Why has Wal-Mart built numerous stores in India in recent years?
A) access to e-commerce sites
B) relaxed foreign investment rules
C) ability to develop brand position
D) creation of free trade agreements
E) limited franchising opportunities

Accepted Answer

Wal-Mart has been able to build numerous stores in India in recent years due to relaxed foreign investment rules. In 2012, India allowed 51% foreign direct investment (FDI) in multi-brand retail, allowing Wal-Mart to set up joint ventures in the country. This has since been increased to 100% FDI in single-brand retail and 49% in multi-brand retail.

Question 9

Which of the following is LEAST likely a benefit of e-commerce?
A) eliminating costly channel layers
B) reducing high labor and inventory costs
C) enabling customers to shop when convenient
D) reducing geographic barriers and constraints
E) building ties with more channel intermediaries

Accepted Answer

Building ties with more channel intermediaries is not a benefit of e-commerce as it often involves disintermediation, which means cutting out intermediaries and selling directly to customers. Through e-commerce, companies can sell their products and services directly to customers, reducing the need for intermediaries and ultimately building closer relationships with customers.

Question 10

AVW Enterprises,a supplier in the B2B sector,recently introduced an e-commerce site to improve its supply chain management.What should AVW most likely do to minimize conflicts with its downstream channel members?
A) offer mature and declining products on the website
B) avoid diverting website orders to channel partners
C) take online orders for products and services
D) offer lower prices than channel partners
E) promote channel partners on the website

Accepted Answer

Promoting channel partners on the website can help AVW Enterprises minimize conflicts by showing support and collaboration, rather than competing directly with them.

Question 11

Which of the following is most likely a true statement about Zappos?
A) Zappos reduces shoppers' risks by offering free shipping and returns.
B) Zappos gained immediate success when it came under the Amazon umbrella.
C) Zappos shifted from traditional brick-and-mortar stores to online-only retailing.
D) Zappos' e-commerce strategy reduces the firm's need for customer service employees.
E) Zappos' gross sales for clothing have now surpassed the firm's gross sales for footwear.

Accepted Answer

Zappos' free shipping and returns policy is one of the key ways it reduces shoppers' risks and builds trust with its customers.

Question 12

Which developing market ranks highest in market attractiveness for retailers?
A) China
B) Chile
C) India
D) Uruguay
E) Brazil

Accepted Answer

The answer of Which developing market ranks highest in market...

Question 13

TDX Manufacturing has adopted a service transition strategy and needs to gain specialized service capabilities,infrastructure,and knowledge.What would be the fastest method for TDX to accomplish this goal?
A) forming a service department
B) acquiring a services company
C) developing in-house service capabilities
D) establishing a contract with a services firm
E) forming a joint partnership with a services firm

Accepted Answer

Acquiring a services company would be the fastest method for TDX to gain specialized service capabilities, infrastructure, and knowledge. This would allow TDX to immediately have access to a pool of experienced staff and established processes and procedures. Forming a service department or developing in-house capabilities would take time and resources to establish, and partnering with or contracting a services firm would not provide the same level of control and integration as an acquisition.

Question 14

What channel system inequity is increasing significantly with the growth of e-commerce?
A) bundling
B) free-riding
C) hybrid retailing
D) reverse auctions
E) creative pricing

Accepted Answer

Free-riding refers to consumers who visit traditional brick-and-mortar stores to examine products firsthand but then purchase them at lower prices online. This tendency has increased significantly with the growth of e-commerce, leading to channel system inequity.

Question 15

What was the main reason that Fujitsu formed a partnership with FedEx?
A) FedEx provided the best logistics services at the lowest price.
B) Fujitsu wanted to sell computers in the less competitive U.S. market.
C) Fujitsu needed a faster method of delivering computers to channel partners.
D) FedEx had formed a similar partnership with Dell that had been highly lucrative.
E) Fujitsu customers and channel partners were primarily located on the West Coast.

Accepted Answer

Fujitsu formed a partnership with FedEx because they needed a faster method of delivering computers to channel partners.

Question 16

All of the following are most likely disadvantages of acquiring service capabilities through a joint venture EXCEPT ________.
A) losing proprietary information
B) engaging in management difficulties
C) losing control of end-user relationships
D) creating organizational culture clashes
E) increasing service transition investment risks

Accepted Answer

Increasing service transition investment risks is not a disadvantage of acquiring service capabilities through a joint venture. Joint ventures can actually spread and mitigate risks because the investment and resources are shared between the partners, unlike the other options which are common disadvantages of entering into joint ventures.

Question 17

Sadie's Shoes sells fashionable,affordable shoes directly to customers through the company Web site.The firm does not have any brick-and-mortar stores.Sadie's Shoes is most likely engaged in ________.
A) niche marketing
B) globalization
C) networking
D) e-commerce
E) blogging

Accepted Answer

Sadie's Shoes selling their products directly to customers through their website signifies that they are engaged in e-commerce, which involves conducting business transactions through digital communication networks.

Question 18

Which characteristic of developing markets most likely appeals to firms from developed markets?
A) strong infrastructures
B) minimal economic risks
C) high numbers of retirees
D) significant competition levels
E) large and growing populations

Accepted Answer

Large and growing populations in developing markets offer the potential for significant new customer bases and revenue growth, which appeals to firms from developed markets seeking expansion opportunities.

Question 19

According to the text,Wal-Mart's unsuccessful expansion into Germany occurred because the firm ________.
A) was unable to leverage its economies of scale in a foreign market
B) failed to adapt its channel structure and strategy to local conditions
C) utilized local channel intermediaries that were costly and unreliable
D) failed to implement the same low-cost processes that it uses domestically
E) formed a partnership with a local grocery store chain that went out of business

Accepted Answer

The text states that Wal-Mart failed to adapt its channel structure and strategy to local conditions, which ultimately led to its unsuccessful expansion into Germany. This suggests that the firm did not properly adjust to the unique demands of the German market, resulting in a failure to connect with local consumers and establish a foothold in the industry.

Question 20

What is the main reason that channel participants expand internationally?
A) increase revenue
B) integrate vertically
C) acquire new firms
D) form joint partnerships
E) avoid regulatory environments

Accepted Answer

The main reason for channel participants expanding internationally is to increase revenue. By entering new markets and reaching new customers, they can generate more sales and profits. Integrating vertically, acquiring new firms, forming joint partnerships, and avoiding regulatory environments may be secondary reasons, but the primary motivation is typically to grow their business and increase revenue.

Quiz 9: Emerging Channel Structures and Strategies

A firm that uses e-commerce channels to enter new markets most likely wants to do all of the following EXCEPT________.

How has the Internet accelerated international expansion efforts by retailers such as Neiman Marcus and J.Crew?

What is the world's largest market for e-commerce sales?

Which of the following would LEAST likely help a manufacturer become a successful service provider?

Company X plans to enter a foreign market by purchasing land and building a new facility.What should Company X most likely do to improve its chances of success?

What is the primary drawback of online shopping for most customers?

Which term refers to vertical channel partners using multiple routes to reach horizontal end-users?

Why has Wal-Mart built numerous stores in India in recent years?

Which of the following is LEAST likely a benefit of e-commerce?

AVW Enterprises,a supplier in the B2B sector,recently introduced an e-commerce site to improve its supply chain management.What should AVW most likely do to minimize conflicts with its downstream channel members?

Which of the following is most likely a true statement about Zappos?

Which developing market ranks highest in market attractiveness for retailers?

TDX Manufacturing has adopted a service transition strategy and needs to gain specialized service capabilities,infrastructure,and knowledge.What would be the fastest method for TDX to accomplish this goal?

What channel system inequity is increasing significantly with the growth of e-commerce?

What was the main reason that Fujitsu formed a partnership with FedEx?

All of the following are most likely disadvantages of acquiring service capabilities through a joint venture EXCEPT ________.

Sadie's Shoes sells fashionable,affordable shoes directly to customers through the company Web site.The firm does not have any brick-and-mortar stores.Sadie's Shoes is most likely engaged in ________.

Which characteristic of developing markets most likely appeals to firms from developed markets?

According to the text,Wal-Mart's unsuccessful expansion into Germany occurred because the firm ________.

What is the main reason that channel participants expand internationally?