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Chapter 14 International Marketing ChannelsTrue/False Questions   1. The distribution process includes promotion of goods ...
Chapter 14 International Marketing Channels   9. Merchant middlemen take title to the goods and buy and sell on their own ...
Chapter 14 International Marketing Channels     A)   discounters     B)   hypermarkets     C)   independent grocers     D)...
Chapter 14 International Marketing Channels       B)   Its internal Internet-based system.       C)   Its ability to drive...
Chapter 14 International Marketing Channels      financing, cumulative rebates, _____________, and _____________.      Ans...
Chapter 14 International Marketing Channels  1. Characterize a distribution process.     Page: 400 Difficulty: Easy Type: ...
Chapter 14 International Marketing Channels      middlemen that you select one from are: broker, manufacturers representat...
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Chapter 14 international marketing channels

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Transcript of "Chapter 14 international marketing channels"

  1. 1. Chapter 14 International Marketing ChannelsTrue/False Questions 1. The distribution process includes promotion of goods and services by sellers and resellers. Answer: False Page: 400 Difficulty: Moderate Type: Comprehension 2. One of the distinguishing characteristics of the Japanese channel system is that the channel system is controlled by the great numbers of small resellers found in the country. Answer: False Page: 401 Difficulty: Hard Type: Comprehension 3. One of the ways that channel control is maintained by manufacturers is through inventory financing. Answer: True Page: 403 Difficulty: Moderate Type: Comprehension 4. Business people in Japan and the United States see the Japanese distribution system as a major nontariff barrier, and the Japanese see it as a major roadblock to improvement of the Japanese standard of living. Answer: True Page: 404 Difficulty: Hard Type: Comprehension 5. One of Wal-Marts strengths in distribution is its internal Internet-based system, which makes its transactions with suppliers more efficient and lowers its cost of production. Answer: True Page: 408 Difficulty: Moderate Type: Application 6. The term “blocked channels” means that a foreign company is “blocked” from using a countrys already-established lines in various channels. Answer: True Page: 410 Difficulty: Easy Type: Definition 7. Agent middlemen work on commission and arrange for sales in the foreign country but do not take title to the merchandise. Answer: True Page: 414 Difficulty: Moderate Type: Definition 8. Agent middlemen take title to the goods and buy and sell on their own account. Answer: False Page: 414 Difficulty: Moderate Type: Definition
  2. 2. Chapter 14 International Marketing Channels 9. Merchant middlemen take title to the goods and buy and sell on their own account. Answer: True Page: 414 Difficulty: Easy Type: Definition 10. The most direct channel in international marketing is when a domestic producer or marketer sells directly to a foreign consumer. Answer: True Page: 414, Exhibit 14.4 Difficulty: Easy Type: ApplicationMultiple Choice Questions 1. The distribution process includes all of the following EXCEPT: A) physical handling of goods. B) physical distribution of goods. C) passage of ownership (title). D) buying and selling negotiations. E) promotion of goods and services. Answer: E Page: 400 Difficulty: Moderate Type: Comprehension 2. In a(n) ______________ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. A) export-oriented B) importer-oriented C) manufacturer-oriented D) service-oriented E) customer-oriented Answer: B Page: 400 Difficulty: Easy Type: Comprehension 3. The foundation of the Japanese distribution system is the: A) middleman. B) intermediary. C) manufacturer. D) small retailer. E) wholesaler. Answer: D Page: 401 Difficulty: Hard Type: Comprehension 4. With respect to the food store category of retailers, the United States system is dominated by supermarkets (some 43,000). In Japan, however, the same category is dominated by which of the following (some 74,000)?
  3. 3. Chapter 14 International Marketing Channels A) discounters B) hypermarkets C) independent grocers D) bakers E) green grocers Answer: D Page: 403, Exhibit 14.2 Difficulty: Hard Type: Fact and Application 5. Which of the following is one way that manufacturers (or middlemen) exercise control over the channel? A) cumulative rebates B) control of consumers C) specialized product lines D) personal service E) none of the above Answer: A Page: 403 Difficulty: Moderate Type: Comprehension 6. Japanese distribution channels are characterized by which of the following emphasis areas? A) loyalty B) harmony C) friendship D) all of the above (A, B, and C) E) none of the above as the channels is highly cutthroat Answer: D Page: 403 Difficulty: Moderate Type: Comprehension 7. What has been the effect of the Large-Scale Retail Store Location Act (2000) in Japan? A) No large stores (5,382 feet or 500 square meters) are allowed in Japan. B) Large stores, by way of encouragement of this act, are replacing small retail stores in Japan. C) The Ministry of International Trade and Industry (MITI) has now been removed from the approval process that grants permission for large stores to locate in Japan. D) Has allowed only Japanese-owned conglomerates to own large stores. E) All of the above are results of the Act. Answer: C Page: 404 Difficulty: Hard Type: Fact and Application 8. In the international business arena, which of the following is considered to be one of Wal-Marts strengths? A) Its squeaky-clean reputation in the international arena.
  4. 4. Chapter 14 International Marketing Channels B) Its internal Internet-based system. C) Its ability to drive all other competitors out of a market. D) Its ability to influence foreign governments. E) Its outreach programs designed to placate small retailers. Answer: B Page: 408 Difficulty: Moderate Type: Comprehension 9. With respect to the relationship between the stage of economic development and the length of marketing channels in international markets, which of the following is most true? A) There is no link whatsoever between the two concepts. B) There is negative correlation between the two concepts. C) There is some correlation between the two concepts. D) There is a high degree of correlation between the two concepts. E) There answer is unknown as no study has been done in this area. Answer: C Page: 410 Difficulty: Hard Type: Fact 10. What is the meaning of a blocked channel? A) A marketing channel has been closed to an international marketer by a domestic marketer(s), trade association, or cartel. B) One or more marketing intermediaries are prohibited from carrying goods that the domestic government deems unsafe. C) Consumers refuse to buy from certain channels. D) Manufacturers refuse to sell through certain channels because of reseller counterfeiting. E) None of the above describes a blocked channel. Answer: A Page: 410 Difficulty: Moderate Type: Definition and ApplicationFill in the Blank Questions 1. The __________ process includes the physical handling and distribution of goods, the passage of ownership, and the buying and selling negotiations between producers and middlemen and between middlemen and customers. Answer: distribution Page: 400 Difficulty: Easy Type: Definition 2. Another name for a traditional distribution structure where an importer controls a fixed supply of goods is a(n) ______________ structure. Answer: import-oriented Page: 400 Difficulty: Moderate Type: Comprehension 3. With respect to a distribution channel, control is maintained through inventory
  5. 5. Chapter 14 International Marketing Channels financing, cumulative rebates, _____________, and _____________. Answer: merchandise returns and promotional support Page: 403 Difficulty: Hard Type: Comprehension 4. The United States used pressure and the _______________ negotiations to pry open new markets for American companies in the Japanese distribution markets. Answer: Structural Impediments Initiative (SII) Page: 404 Difficulty: Hard Type: Fact 5. Some correlation may be found between the stage of _____________ and the length of marketing channels. Answer: economic development Page: 410 Difficulty: Moderate Type: Comprehension 6. Associations of middlemen in international markets sometimes restrict the number of distribution alternatives available to a producer from a foreign country. This practice is called _____________ channels. Answer: blocking or blocked Page: 410 Difficulty: Easy Type: Definition 7. __________ middlemen represent the principal rather than themselves. Answer: Agent Page: 414 Difficulty: Easy Type: Definition 8. ___________ middlemen take title to the goods and buy and sell on their own account. Answer: Merchant Page: 414 Difficulty: Easy Type: Definition 9. Working under the names of the manufacturers, the ___________ functions as a low- cost, independent marketing department with direct responsibility to the parent firm. Answer: export management company (EMC) Page: 416 Difficulty: Moderate Type: Definition 10. Trading companies accumulate, transport, and __________ goods from many countries. Answer: distribute Page: 417 Difficulty: Easy Type: ComprehensionEssay Questions
  6. 6. Chapter 14 International Marketing Channels 1. Characterize a distribution process. Page: 400 Difficulty: Easy Type: Definition Answer: A distribution process includes the physical handling and distribution of goods, the passage of ownership (title), and the buying and selling negotiations between producers and middlemen and between middlemen and customers. 2. The Japanese distribution system has four distinguishing characteristics. What are these characteristics? Page: 401 Difficulty: Moderate Type: Comprehension Answer: The characteristics are (a) a structure dominated by many small middlemen dealing with many small retailers, (b) channel control by manufacturers, (c) a business philosophy shaped by a unique culture, and (d) laws that protect the foundation of the system—the small retailer. 3. Characterize the difference(s) between agent middlemen and merchant middlemen. Page: 414 Difficulty: Easy Type: Comprehension Answer: The primary difference is that agent middlemen do not take title to the goods they process and the merchant middleman does. Additionally, the merchant middleman normally performs more work tasks that are often general in nature whereas the agent middleman may be more of a specialist. 4. Choose one of the following merchant middlemen and characterize the chosen middlemans duties with respect to (a) share of foreign output, (b) price authority, (c) type of goods carried, and (d) whether they handle competitive lines or not. The middlemen that you select one from are: Norazi, export merchant, export jobber, or complementary marketer. Be specific in your answers. Page: 420, Exhibit 14.6 Difficulty: Hard Type: Fact and Comprehension Answer: To answer each of the assigned questions, see the chart on page 420, Exhibit 14.6. 5. Choose one of the following foreign-country agents and characterize the chosen middlemans duties with respect to (a) share of foreign output, (b) price authority, (c) type of goods carried, and (d) whether they handle competitive lines or not. The
  7. 7. Chapter 14 International Marketing Channels middlemen that you select one from are: broker, manufacturers representative, managing agent, or comprador. Be specific in your answers. Page: 422, Exhibit 14.7 Difficulty: Hard Type: Fact and Comprehension Answer: To answer each of the assigned questions, see the chart on page 422, Exhibit 14.7.Application Questions 1. Steve Smith has been assigned the task of choosing a foreign market channel that would be most appropriate for his company. Assuming that his company was an automobile company and he wished to enter the Spanish market, list the four points that were identified in the text as starting places for making the channel selection decision. Be specific with your wording of the points. Page: 423 Difficulty: Hard Type: Application and Comprehension Answer: The points are: (a) identify specific target markets within and across countries; (b) specify marketing goals in terms of volume, market share, and profit margin requirements, (c) specify financial and personnel commitments to the development of international distribution, and (d) identify control, length of channels, terms of sale, and channel ownership. 2. Channel strategy is thought to have six specific strategic goals. If you were to list these goals for a strategic planner, what would be the six specific goals that the planner should consider? Page: 423-425 Difficulty: Moderate Type: Fact and Application Answer: The six Cs of channel strategy are: (a) cost, (b) capital, (c) control, (d) coverage, (e) character, and (f) continuity.

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