Question 1

In designing a global marketing channel one should be concerned with channel width. This refers to:
A) The number of intermediaries of each type in the channel
B) The number of types of intermediaries in the channel
C) The number of intermediaries on each side of the national border
D) The number of intermediaries of each type in the foreign country
E) None of the above

Accepted Answer

Channel width refers to the number of intermediaries of each type in the channel, so option A is the correct choice. Options B, C, and D are incorrect because they don't refer to channel width specifically. Option E is incorrect because there is a specific definition for channel width in global marketing channels.

Question 2

Research has shown that Chinese channel leaders tend to rely on coercive power in their relationships.

Accepted Answer

Research indicates that Chinese channel leaders are more likely to use non-coercive sources of power, such as expert and referent power, rather than relying on coercive power in their relationships. This approach aligns with the cultural emphasis on harmony and relationship building in Chinese business practices.

Question 3

Which of the following is a consequence of parallel distribution?
A) Strained relationships between the manufacturer and its authorized distributors
B) Erosion of brand equity
C) More complicated sales forecasting
D) All of the above
E) (a) and (b) only

Accepted Answer

Parallel distribution can lead to strained relationships between manufacturers and authorized distributors, erosion of brand equity due to market saturation or unauthorized sales channels, and more complicated sales forecasting due to the unpredictability of parallel market sales.

Question 4

What is meant by the term 'keiretsu'? Why is the concept important to firms interested in penetrating the Japanese market?

Accepted Answer

The answer of What is meant by the term 'keiretsu'?...

Question 5

Identify three options available to the firm to distribute its products in foreign markets.

Accepted Answer

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Question 6

One of the actions that firms can take against the gray trade is to provide consumers with stronger reasons to patronize authorized dealers. This is referred to as:
A) Demand interference
B) Dealer interference
C) Public relations
D) Strategic attack

Accepted Answer

The answer of One of the actions that firms can...

Question 7

What is meant by the term 'parallel distribution'? Outline three strategic approaches to mitigating its impact on the global marketing firm.

Accepted Answer

The answer of What is meant by the term 'parallel...

Question 8

In designing a global marketing channel 'character' refers to:
A) The integrity of the distributor being evaluated
B) The nature of the product
C) The integrity of the manufacturer
D) The ability of the manufacturer to exercise power over other channel members

Accepted Answer

Character refers to the nature of the product being marketed, including its quality, reliability, and reputation. It does not refer to the integrity of specific channel members like distributors or manufacturers. It also does not refer to the ability of the manufacturer to exercise power over other channel members.

Question 9

In shipping products across international borders a __________________ may be required that states the country in which the products were manufactured.
A) Commercial invoice
B) Bill of lading
C) Certificate of origin
D) Shipper's export declaration
E) Consular invoice

Accepted Answer

A Certificate of origin is a document that is required when shipping products across international borders, which states the country in which the products were manufactured. This document may be needed for customs clearance, and it certifies the origin of the goods.

Question 10

Key differences between domestic and international logistics relate to:
A) More complex decisions
B) Increased risks
C) More complex terms of trade
D) All of the above
E) (a) and (b) only

Accepted Answer

All of the above options are key differences between domestic and international logistics. International logistics involves more complex decisions due to factors like longer distances, different modes of transport, and the involvement of multiple countries. Increased risks are also a significant factor, including political instability, currency fluctuations, and varying legal systems. Additionally, international logistics deals with more complex terms of trade, such as Incoterms, which define the responsibilities of buyers and sellers.

Question 11

In designing a global distribution channel for luxury goods why would control be an important consideration?

Accepted Answer

The answer of In designing a global distribution channel for...

Question 12

In designing a global marketing channel 'cost' refers to:
A) The financial requirements to set up the channel
B) Expenses incurred in maintaining the channel once established
C) The discounted value of the savings from designing a short channel
D) The incremental expense from handling the last unit of production in the redesigned channel.

Accepted Answer

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Question 13

Why do decentralized marketing channels illustrate the classic principal-agent problem?

Accepted Answer

The answer of Why do decentralized marketing channels illustrate the...

Question 14

Which of the following is a condition for parallel distribution?
A) A lack of government regulations on international trade
B) Wide price differences between national markets
C) Low transportation costs
D) (a) and (b) only
E) (b) and (c) only

Accepted Answer

Low transportation costs are necessary for parallel distribution because it allows for products to be transported between national markets without significantly increasing costs. Wide price differences between national markets are also necessary because it provides an opportunity for parallel distribution to occur - where products can be sold across different markets at different prices, allowing for arbitrage opportunities. A lack of government regulations on international trade is not necessarily a condition for parallel distribution.

Question 15

In designing a global distribution channel one may attempt to distribute the product through the largest number of different types of intermediaries and the largest number of individual intermediaries of each type. This is referred to as:
A) Exclusive distribution
B) Intensive distribution
C) Selective distribution
D) Normal distribution
E) Cross border distribution

Accepted Answer

Intensive distribution is the best choice for designing a global distribution channel as it aims to reach the maximum number of intermediaries and customers. This approach is ideal for fast-moving consumer goods with high demand and low unit value. Intensive distribution ensures broad market coverage and availability of the product in all possible outlets. This strategy is commonly used for products like soft drinks, snack foods, and personal care products. Selective distribution and exclusive distribution are more suitable for luxury products and niche markets, respectively. Normal distribution and cross border distribution are not recognized terms in the field of marketing and distribution.

Quiz 10: Global Distribution Strategies

In designing a global marketing channel one should be concerned with channel width. This refers to:

Research has shown that Chinese channel leaders tend to rely on coercive power in their relationships.

Which of the following is a consequence of parallel distribution?

What is meant by the term 'keiretsu'? Why is the concept important to firms interested in penetrating the Japanese market?

Identify three options available to the firm to distribute its products in foreign markets.

One of the actions that firms can take against the gray trade is to provide consumers with stronger reasons to patronize authorized dealers. This is referred to as:

What is meant by the term 'parallel distribution'? Outline three strategic approaches to mitigating its impact on the global marketing firm.

In designing a global marketing channel 'character' refers to:

In shipping products across international borders a __________________ may be required that states the country in which the products were manufactured.

Key differences between domestic and international logistics relate to:

In designing a global distribution channel for luxury goods why would control be an important consideration?

In designing a global marketing channel 'cost' refers to:

Why do decentralized marketing channels illustrate the classic principal-agent problem?

Which of the following is a condition for parallel distribution?

In designing a global distribution channel one may attempt to distribute the product through the largest number of different types of intermediaries and the largest number of individual intermediaries of each type. This is referred to as: