Question 1

International marketers consider business precedent,local conditions,the availability of intermediaries,and managerial preference when selecting distribution strategies.

Accepted Answer

International marketers take into account various factors such as business precedent, local conditions, availability of intermediaries, and managerial preference when deciding on distribution strategies. Hence, the statement is true.

Question 2

A push strategy means that a producer concentrates on stimulating consumer demand through extensive advertising and consumer promotions.

Accepted Answer

A push strategy involves focusing on promoting and incentivizing retailers or distributors to carry a product in order to indirectly reach consumers. It is often used for products with high distribution and availability, such as snacks or soft drinks. A pull strategy, on the other hand, involves generating consumer demand through advertising and promotional activities in order to directly drive sales. It is often used for specialty or high-end products, such as luxury goods or electronics.

Question 3

International marketers use direct strategies when they sell a product directly to their customers without the use of intermediaries.

Accepted Answer

Direct strategies involve selling a product directly to customers without the use of intermediaries such as wholesalers or retailers. This approach is used by international marketers to establish a direct relationship with their customers, gain valuable feedback, and ensure that their products reach their target markets efficiently.

Question 4

Parallel importing is a gray market process in international marketing.

Accepted Answer

Parallel importing involves importing and selling genuine branded products in one country after they have been legally purchased in another country, where they may be cheaper. This practice is not illegal but often violates territorial agreements between manufacturers and authorized distributors, making it a gray market process in international marketing.

Question 5

International distribution decisions are largely impacted by country infrastructure development.

Accepted Answer

Country infrastructure development, such as transportation and communication networks, can greatly affect the ability to effectively distribute products in a country. Poor infrastructure can lead to higher distribution costs and longer delivery times, while well-developed infrastructure can make distribution easier and more efficient. Therefore, international distribution decisions are largely impacted by country infrastructure development.

Question 6

International marketers usually select push or pull strategies,but they rarely use both.

Accepted Answer

International marketers often use a combination of push and pull strategies, depending on the target market and product. Push strategies involve pushing the product towards the target market through advertising, personal selling, and other promotional activities. Pull strategies, on the other hand, involve creating demand for the product among consumers through advertising and other promotional activities. By using both push and pull strategies, international marketers can reach a wider audience and maximize their reach and impact.

Question 7

In an international context,merchant middlemen take title and ownership of products.

Accepted Answer

In an international context, merchant middlemen often take title and ownership of products as a way to assume risk and facilitate the distribution process.

Question 8

Horizontal integration exists when a company acquires or merges with another company at the same level of the distribution channel.

Accepted Answer

This is the correct definition of horizontal integration.

Question 9

International marketing channels differ significantly in both length and complexity.

Accepted Answer

International marketing channels can vary in both length and complexity depending on multiple factors such as the product being sold, the target market, and the distribution infrastructure in the foreign market. Therefore, the statement is true.

Question 10

Vertical integration means that one member of a market channel merges with or acquires another intermediary.

Accepted Answer

This statement is true. Vertical integration involves a company acquiring or merging with another company in the same market channel but at a different level, such as a manufacturer acquiring a distributor or a retailer acquiring a wholesaler.

Question 11

A freight forwarder provides shipping,documentation,customs clearance and brokerage,consolidation,storage,and insurance for international marketers.

Accepted Answer

This statement accurately describes the services provided by a freight forwarder.

Question 12

Japanese consumers make few trips to retailers which mean numerous large retail stores exist in the country.

Accepted Answer

The statement is incorrect. Japanese consumers make frequent trips to retailers and there are smaller retail stores and convenience stores that are more prevalent in Japan, rather than large retail stores.

Question 13

The Spanish clothing retail chain Zara uses a backward integration strategy as it produces many of its products in-house by producing its own products.

Accepted Answer

Backward integration refers to a situation where a company produces its own inputs or raw materials. Zara uses backward integration because it produces many of its products in-house by producing its own fabrics, designs, and cuts. This helps the company to have more control over the production process and ensure timely delivery of products.

Question 14

Political,geographical,economic,and cultural differences influence international distribution decisions.

Accepted Answer

Political, geographical, economic, and cultural differences can have significant impacts on international distribution decisions. Factors such as trade regulations, infrastructure, market demand, and consumer preferences can vary greatly between countries, making it essential for businesses to carefully consider these differences when developing their distribution strategies. Failure to take into account these differences can result in costly mistakes and missed opportunities for reaching international markets effectively.

Question 15

International marketers use indirect strategies when they sell a product directly to their customers without the use of intermediaries.

Accepted Answer

This statement is incorrect. Indirect marketing strategies involve the use of intermediaries such as distributors, wholesalers, retailers, or agents to reach the end customer. Direct marketing strategies, on the other hand, involve selling products or services directly to the end customers without intermediaries.

Question 16

In an international context,agent middlemen take title or ownership of products.

Accepted Answer

Agent middlemen typically do not take title or ownership of products; instead, they facilitate transactions between buyers and sellers, earning a commission for their services.

Question 17

International distribution system selection factors include type of product,price,competition,brand image,and target market considerations.

Accepted Answer

These factors are commonly considered when selecting an international distribution system, as they can have significant impacts on the success of product sales and market penetration in target markets.

Question 18

The chaebols of South Korea are similar in many ways to the Japanese keiretsus.

Accepted Answer

Both the chaebols of South Korea and the keiretsus of Japan are large conglomerates that dominate their respective economies, often with cross-ownership of companies within the groups and strong ties to government.

Question 19

A pull strategy focuses on providing intermediaries with incentives that will lead them to cooperate in marketing an international product.

Accepted Answer

A pull strategy focuses on creating demand for a product directly from consumers, which in turn encourages retailers and other intermediaries to stock and sell the product due to consumer demand, rather than providing intermediaries with incentives.

Question 20

Trading companies are rare in the Pacific Rim.

Accepted Answer

Trading companies are actually a common feature in the Pacific Rim region, particularly in countries like Japan, South Korea, and Taiwan. These companies often play a major role in facilitating international trade and investment, and they can be involved in a variety of industries and sectors.

Quiz 11: International Pricing