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NoreproductionordistributionwithoutthepriorwrittenonsentofMcGraw-HillEducation.

InternationalMarketing,18e(Cateora)

Chapter15InternationalMarketingChannels

1)Thedistributionprocessincludespromotionofgoodsandservicesbysellersandresellers.

Answer:FALSE

Explanation:Thedistributionprocessincludesthephysicalhandlinganddistributionofgoods,thepassageofownership(title),andthebuyingandsellingnegotiationsbetweenproducersandmiddlemenandbetweenmiddlemenandcustomers.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

2)Thebehaviorofchannelmembersinthedistributionprocessistheresultoftheinteractionsbetweentheculturalenvironmentandthemarketingprocess.

Answer:TRUE

Explanation:Thebehaviorofchannelmembersistheresultoftheinteractionsbetweentheculturalenvironmentandthemarketingprocess.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

3)Inanimport-orienteddistributionstructure,supplyoftenexceedsdemand.

Answer:FALSE

Explanation:Inanimport-orientedortraditionaldistributionstructure,animportercontrolsafixedsupplyofgoods,andthemarketingsystemdevelopsaroundthephilosophyofsellingalimitedsupplyofgoodsathighpricestoasmallnumberofaffluentcustomers.Intheresultingseller'smarket,marketpenetrationandmassdistributionarenotnecessarybecausedemandexceedssupply,andinmostcases,thecustomerseeksthesupplyfromalimitednumberofmiddlemen.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

4)Traditionaldistributionchannelsindevelopingcountriesevolvedfromeconomieswithastrongdependenceonimportedmanufacturedgoods.

Answer:TRUE

Explanation:Traditionalchannelsindevelopingcountriesevolvedfromeconomieswithastrongdependenceonimportedmanufacturedgoods.Inanimport-orientedortraditionaldistributionstructure,animportercontrolsafixedsupplyofgoods,andthemarketingsystemdevelopsaroundthephilosophyofsellingalimitedsupplyofgoodsathighpricestoasmallnumberofaffluentcustomers.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

5)Inatraditionaldistributionstructure,distributionsystemsarenationalratherthanlocalinscope.

Answer:FALSE

Explanation:Inthetraditionaldistributionstructure,distributionsystemsarelocalratherthannationalinscope.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

6)Inthetraditionaldistributionstructureinadevelopingcountry,independentagenciesthatprovidefacilitatingfunctionsarenonexistentorunderdeveloped.

Answer:TRUE

Explanation:Inatraditionaldistributionstructure,theimporter–wholesalerperformsmostofthemarketingfunctions.Hence,independentagenciesthatprovideadvertising,marketingresearch,warehousingandstorage,transportation,financing,andotherfacilitatingfunctionsfoundinadeveloped,maturemarketinginfrastructurearenonexistentorunderdeveloped.

Difficulty:2Medium

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

7)AdistinguishingcharacteristicoftheJapanesedistributionchannelsystemisthatitiscontrolledbyafewsmalllocalretailers.

Answer:FALSE

Explanation:TheJapanesesystemhasfourdistinguishingfeatures:(1)astructuredominatedbymanysmallmiddlemendealingwithmanysmallretailers,(2)channelcontrolbymanufacturers,(3)abusinessphilosophyshapedbyauniqueculture,and(4)lawsthatprotectthefoundationofthesystem—thesmallretailer.

Difficulty:1Easy

Topic:RetailersinForeignMarkets

LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

8)TheJapanesedistributionstructureissimilartoonesfoundintheUnitedStatesorEurope.

Answer:FALSE

Explanation:TheJapanesedistributionstructureisdifferentenoughfromitsU.S.orEuropeancounterpartsthatitshouldbecarefullystudiedbyanyonecontemplatingentry.TheJapanesesystemhasfourdistinguishingfeatures:(1)astructuredominatedbymanysmallmiddlemendealingwithmanysmallretailers,(2)channelcontrolbymanufacturers,(3)abusinessphilosophyshapedbyauniqueculture,and(4)lawsthatprotectthefoundationofthesystem—thesmallretailer.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

9)InthecontextofthedistributionstructureinJapan,ithasbeenobservedthatJapaneseconsumersfavorcheaperpricesoverpersonalservice.

Answer:FALSE

Explanation:TheJapaneseconsumercontributestothecontinuationofthetraditionalnatureofthedistributionsystemthroughfrequentbuyingtrips,smallpurchases,favoringpersonalserviceoverprice,andaproclivityforloyaltytobrandsperceivedtobeofhighquality.Additionally,Japaneselawgivesthesmallretailerenormousadvantageoverthedevelopmentoflargerstoresandcompetition.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

10)Astraditionalchannelstructuresarechanging,importersandretailersarebecominglessinvolvedinnewproductdevelopment.

Answer:FALSE

Explanation:Importersandretailersalsoarebecomingmoreinvolvedinnewproductdevelopment,aschannelexpansioncontributestofirmvalue;forexample,theMexicanapplianceandelectronicsgiantGrupoElektrahasformedanalliancewithBeijingAutomobileWorksGrouptodevelopandbuildlow-costcarsforMexicoandexportmarkets.

Difficulty:2Medium

Topic:RetailersinForeignMarkets

LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

11)Inthecontextofdistributionstructures,oneofWalmart'sstrengthsisitsabilitytoworkwithdistributorsone-on-one.

Answer:FALSE

Explanation:OneofWalmart'sstrengthsindistributionisitsinternalInternet-basedsystem,whichmakesitstransactionswithsuppliersmoreefficientandlowersitscostofoperations.Itisbuyingailingretailersaroundtheworldwiththeintentionof"savingthem"withitsdistributiontechnologies.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

12)Globally,wholesalingshowsagreaterdiversityinitsdistributionstructurethandoesretailing.

Answer:FALSE

Explanation:Retailingshowsgreaterdiversityinitsstructurethandoeswholesaling.

Difficulty:1Easy

Topic:RetailersinForeignMarkets

LearningObjective:15-03Howdistributionpatternsaffectthevariousaspectsofinternationalmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

13)Directmarketingworkswellinaffluentmarketsaswellasinmarketswithunderdevelopeddistributionsystems.

Answer:TRUE

Explanation:Sellingdirectlytotheconsumerthroughmail,bytelephone,ordoor-to-doorisoftentheapproachofchoiceinmarketswithinsufficientorunderdevelopeddistributionsystems.Theapproach,ofcourse,alsoworkswellinthemostaffluentmarkets.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-03Howdistributionpatternsaffectthevariousaspectsofinternationalmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

14)Agentmiddlemenworkoncommissionanddonottaketitletothemerchandise.

Answer:TRUE

Explanation:Agentmiddlemenworkoncommissionandarrangeforsalesintheforeigncountrybutdonottaketitletothemerchandise.Byusingagents,themanufacturerassumestradingriskbutmaintainstherighttoestablishpolicyguidelinesandpricesandtorequireitsagentstoprovidesalesrecordsandcustomerinformation.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

15)Merchantmiddlementendtobemorecontrollablethanagentmiddlemenbecausetheytaketitletomanufacturers'goods.

Answer:FALSE

Explanation:Merchantmiddlemenactuallytaketitletomanufacturers'goodsandassumethetradingrisks,sotheytendtobelesscontrollablethanagentmiddlemen.Becausemerchantmiddlemenprimarilyareconcernedwithsalesandprofitmarginsontheirmerchandise,theyarefrequentlycriticizedfornotrepresentingthebestinterestsofamanufacturer.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

16)Thedistributionchannelprocessincludesallactivities,beginningwiththemanufacturerandendingwiththeretailer.

Answer:FALSE

Explanation:Thedistributionchannelprocessincludesallactivities,beginningwiththemanufacturerandendingwiththefinalconsumer.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

17)Domesticmiddlemenoffermanyadvantagesforcompanieswithlargeinternationalsalesvolume.

Answer:FALSE

Explanation:Domesticmiddlemenoffermanyadvantagesforcompanieswithsmallinternationalsalesvolume,thoseinexperiencedwithforeignmarkets,thosenotwantingtobecomeimmediatelyinvolvedwiththecomplexitiesofinternationalmarketing,andthosewantingtosellabroadwithminimalfinancialandmanagementcommitment.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

18)Anexportmanagementcompany(EMC)functionsasalow-cost,independentmarketingdepartmentwithdirectresponsibilitytotheparentfirm.

Answer:TRUE

Explanation:Workingunderthenamesofthemanufacturers,theEMCfunctionsasalow-cost,independentmarketingdepartmentwithdirectresponsibilitytotheparentfirm.Theworkingrelationshipissoclosethatcustomersareoftenunawaretheyarenotdealingdirectlywiththeexportdepartmentofthecompany.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

19)TheWTOin2003ruledexportmanagementcompaniestobeinviolationofinternationaltraderules.

Answer:FALSE

Explanation:TheWTOin2003ruledforeignsalescorporationstobeinviolationofinternationaltraderules,thusstartingamajortradedisputewiththeEuropeanUnionthatstillsimmersandoccasionallyboilsover.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

20)TheExportTradingCompanyActallowsproducersofsimilarproductstoformexporttradingcompanies.

Answer:TRUE

Explanation:TheExportTradingCompany(ETC)Actallowsproducersofsimilarproductstoformexporttradingcompanies.AmajorgoaloftheETCActwastoincreaseU.S.exportsbyencouragingmoreefficientexporttradeservicestoproducersandsupplierstoimprovetheavailabilityoftradefinanceandtoremoveantitrustdisincentivestoexportactivities.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

21)TradingcompaniesprovidethebestmeansforintensivecoverageofthemarketinJapan.

Answer:TRUE

Explanation:Becausetradingcompaniesmaycontrolmanyofthedistributorsandmaintainbroaddistributionchannels,theyprovidethebestmeansforintensivecoverageofthemarket.ForcompaniesseekingentranceintothecomplicatedJapanesedistributionsystem,theJapanesetradingcompanyoffersoneoftheeasiestroutestosuccess.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

22)Usingforeign-countrymiddlemenmovesthemanufacturerawayfromthemarketandthecompanybecomeslessinvolvedwithproblemsoflanguage,physicaldistribution,communications,andfinancing.

Answer:FALSE

Explanation:Usingforeign-countrymiddlemenmovesthemanufacturerclosertothemarketandinvolvesthecompanymorecloselywithproblemsoflanguage,physicaldistribution,communications,andfinancing.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

23)Channelsofdistributionoftenposelongevityproblemsastheytendtobesmallinstitutions.

Answer:TRUE

Explanation:Channelsofdistributionoftenposelongevityproblems.Mostagentmiddlemenfirmstendtobesmallinstitutions.Whenoneindividualretiresormovesoutofalineofbusiness,thecompanymayfindithaslostitsdistributioninthatarea.Wholesalersandespeciallyretailersarenotnotedfortheircontinuityinbusinesseither.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-04Thefunctions,advantages,anddisadvantagesofvariouskindsofmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

24)IntheUnitedStates,ifamiddlemanisterminated,thecompanyisrequiredtopay1percentofthemiddleman'saverageannualcompensationmultipliedbythenumberofyearsthemiddlemanservedasafinalsettlement.

Answer:FALSE

Explanation:IntheUnitedStates,terminationisusuallyasimpleactionregardlessofthetypeofmiddlemen;theyaresimplydismissed.However,inotherpartsoftheworld,themiddlemanoftenhassomelegalprotectionthatmakesterminationdifficult.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-05Theimportanceofselectingandmaintainingmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

25)Selectingamiddlemanisusuallyassimpleasaskingforarecommendationfromacompany'slocalmanager.

Answer:FALSE

Explanation:Thescreeningandselectionprocessforamiddlemanshouldincludeanexploratoryletterore-mailincludingproductinformationanddistributorrequirementsinthenativelanguagesenttoeachprospectivemiddleman;afollow-upwiththebestrespondentsforspecificinformationconcerninglineshandled,territorycovered,sizeoffirm,numberofsalespeople,andotherbackgroundinformation;checkofcreditandreferencesfromotherclientsandcustomersoftheprospectivemiddleman;and,ifpossible,apersonalcheckofthemostpromisingfirms.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-05Theimportanceofselectingandmaintainingmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

26)Legaladviceisnotnecessarywhenenteringdistributioncontractswithmiddlemen.

Answer:FALSE

Explanation:Competentlegaladviceisvitalwhenenteringdistributioncontractswithmiddlemen.Butasmanyexperiencedinternationalmarketersknow,thebestruleistoavoidtheneedtoterminatedistributorsbyscreeningallprospectivemiddlemencarefully.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-05Theimportanceofselectingandmaintainingmiddlemen.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

27)Ideally,awebsiteshouldbetranslatedintothelanguagesofthetargetmarket.

Answer:TRUE

Explanation:Ideally,awebsiteshouldbetranslatedintothelanguagesofthetargetmarkets.Thistranslationmaynotbefinanciallyfeasibleforsomecompanies,butatleastthemostimportantpagesofthesiteshouldbetranslated.

Difficulty:1Easy

Topic:HowthePhysicalEnvironmentandTechnologyInfluenceCulture

LearningObjective:15-06Thegrowingimportanceofe-commerceasadistributionalternative.

Bloom's:Remember

AACSB:Technology

Accessibility:KeyboardNavigation

28)Ane-vendorinaforeignmarketcangenerallyignorecultureasanimportantvariablebecausethecommerceisbeingdoneviatheInternet,whichisculturallyinsensitive.

Answer:FALSE

Explanation:Thewebsiteandtheproductmustbeculturallyneutraloradaptedtofittheuniquenessofamarket,becauseculturedoesmatter.

Difficulty:1Easy

Topic:HowthePhysicalEnvironmentandTechnologyInfluenceCulture

LearningObjective:15-06Thegrowingimportanceofe-commerceasadistributionalternative.

Bloom's:Remember

AACSB:Technology

Accessibility:KeyboardNavigation

29)Achangeoftransportationmodecanaffectachangeinpackagingandhandling,inventorycosts,warehousingtimeandcost,anddeliverycharges.

Answer:TRUE

Explanation:Achangeoftransportationmodecanaffectachangeinpackagingandhandling,inventorycosts,warehousingtimeandcost,anddeliverycharges.Sincecontainershipsmovemorethan95%oftheworld'smanufacturedgoods,changesincargocapacitycanhaveadramaticeffectonpricingflowofgoodsattheretaillevel.

Difficulty:1Easy

Topic:TheImportanceofProductionandLogisticsDecisions

LearningObjective:15-07Theinterdependenceofphysicaldistributionactivities.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

30)Aphysicaldistributionsysteminvolvesonlythephysicalmovementofgoods.

Answer:FALSE

Explanation:Aphysicaldistributionsysteminvolvesmorethanthephysicalmovementofgoods.Itincludesthelocationofplantsandwarehousing(storage),transportationmode,inventoryquantities,andpacking.

Difficulty:1Easy

Topic:TheImportanceofProductionandLogisticsDecisions

LearningObjective:15-07Theinterdependenceofphysicaldistributionactivities.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

31)The________processincludesthephysicalhandlinganddistributionofgoods,thepassageofownership(title),andthebuyingandsellingnegotiationsbetweenproducersandmiddlemenandbetweenmiddlemenandcustomers.

A)logistics

B)marketing

C)channel

D)distribution

E)control

Answer:D

Explanation:Thedistributionprocessincludesthephysicalhandlinganddistributionofgoods,thepassageofownership(title),and—mostimportantfromthestandpointofmarketingstrategy—thebuyingandsellingnegotiationsbetweenproducersandmiddlemenandbetweenmiddlemenandcustomers.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

32)Ina________distributionstructure,animportercontrolsafixedsupplyofgoodsandthemarketingsystemdevelopsaroundthephilosophyofsellingalimitedsupplyofgoodsathighpricestoasmallnumberofaffluentcustomers.

A)domestic

B)traditional

C)manufacturer-oriented

D)service

E)customer-oriented

Answer:B

Explanation:Inanimport-orientedortraditionaldistributionstructure,animportercontrolsafixedsupplyofgoods,andthemarketingsystemdevelopsaroundthephilosophyofsellingalimitedsupplyofgoodsathighpricestoasmallnumberofaffluentcustomers.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

33)Whichdistributionstructureisalsoknownasatraditionaldistributionstructure?

A)Export-oriented

B)Import-oriented

C)Manufacturer-oriented

D)Service-oriented

E)Customer-oriented

Answer:B

Explanation:Animport-orienteddistributionstructuresisalsoknownasatraditionaldistributionstructure.Inanimport-orientedortraditionaldistributionstructure,animportercontrolsafixedsupplyofgoods,andthemarketingsystemdevelopsaroundthephilosophyofsellingalimitedsupplyofgoodsathighpricestoasmallnumberofaffluentcustomers.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

34)Inanimport-orienteddistributionstructure,

A)theimporter–wholesalertraditionallyperformsmostofthemarketingfunctions.

B)therelationshipbetweentheimporterandanymiddlemanissimilartothatfoundinamass-marketingsystem.

C)severalindependentagenciesprovidefunctionssuchasadvertising,marketingresearch,andfinancing.

D)theideaofachannelasachainofintermediariesperformingspecificactivitiesiscommon.

E)thedistributionsystemisnationalinscope.

Answer:A

Explanation:Animport-orienteddistributionstructureisconsideredasatraditionaldistributionstructure.Sincetheimporter–wholesalertraditionallyperformsmostmarketingfunctions,independentagenciesthatprovideadvertising,marketingresearch,warehousing,andstoragearenonexistentorunderdeveloped.

Difficulty:2Medium

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-01Thevarietyofdistributionchannelsandhowtheyaffectcostandefficiencyinmarketing.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

35)Distributionin________haslongbeenconsideredthemosteffectivenontariffbarriertothatmarket.

A)China

B)Japan

C)theU.S.

D)WesternEurope

E)Canada

Answer:B

Explanation:DistributioninJapanhashistoricallybeenconsideredthemosteffectivenontariffbarriertotheJapanesemarket.However,themarketisbecomingmoreopenasmanytraditionalmodesofoperationareerodinginthefaceofcompetitionfromforeignmarketersandasJapaneseconsumerscontinuetofocusonlowerprices.

Difficulty:1Easy

Topic:FactorstoConsiderWhenDesigningInternationalDistributionStrategies

LearningObjective:15-02TheJapanesedistributionstructureandwhatitmeanstoJapanesecustomersandtocompetingimportersofgoods.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

36)WhatgroupisconsideredtobethefoundationoftheJapanesedistributionsystem?

A)consumers

B)brokers

C)manufacturers

D)smallretailers

E)wholesalers

Answer:D

Explanation:TheJapanesesystemhasfourdistinguishingfeatures:(1)astructuredominatedbymanysmallmiddlemendealingwithmanysmallretailers,(2)channelcontrolbymanufacturers,(3)abusinessphilosophyshapedbyauniqueculture,and(4)lawsthatprotectthefoundationofthesystem—thesmallretailer.

Difficulty:1Easy

Topic:Retaile

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