国际市场营销学 （原书第18版）测试题及答案 Chapter 15 International Marketing Channels

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InternationalMarketing,18e(Cateora)

Chapter15InternationalMarketingChannels

1)Thedistributionprocessincludespromotionofgoodsandservicesbysellersandresellers.

2)Thebehaviorofchannelmembersinthedistributionprocessistheresultoftheinteractionsbetweentheculturalenvironmentandthemarketingprocess.

3)Inanimport-orienteddistributionstructure,supplyoftenexceedsdemand.

4)Traditionaldistributionchannelsindevelopingcountriesevolvedfromeconomieswithastrongdependenceonimportedmanufacturedgoods.

5)Inatraditionaldistributionstructure,distributionsystemsarenationalratherthanlocalinscope.

6)Inthetraditionaldistributionstructureinadevelopingcountry,independentagenciesthatprovidefacilitatingfunctionsarenonexistentorunderdeveloped.

7)AdistinguishingcharacteristicoftheJapanesedistributionchannelsystemisthatitiscontrolledbyafewsmalllocalretailers.

8)TheJapanesedistributionstructureissimilartoonesfoundintheUnitedStatesorEurope.

9)InthecontextofthedistributionstructureinJapan,ithasbeenobservedthatJapaneseconsumersfavorcheaperpricesoverpersonalservice.

10)Astraditionalchannelstructuresarechanging,importersandretailersarebecominglessinvolvedinnewproductdevelopment.

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

12)Globally,wholesalingshowsagreaterdiversityinitsdistributionstructurethandoesretailing.

13)Directmarketingworkswellinaffluentmarketsaswellasinmarketswithunderdevelopeddistributionsystems.

14)Agentmiddlemenworkoncommissionanddonottaketitletothemerchandise.

15)Merchantmiddlementendtobemorecontrollablethanagentmiddlemenbecausetheytaketitletomanufacturers'goods.

16)Thedistributionchannelprocessincludesallactivities,beginningwiththemanufacturerandendingwiththeretailer.

17)Domesticmiddlemenoffermanyadvantagesforcompanieswithlargeinternationalsalesvolume.

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

19)TheWTOin2003ruledexportmanagementcompaniestobeinviolationofinternationaltraderules.

20)TheExportTradingCompanyActallowsproducersofsimilarproductstoformexporttradingcompanies.

21)TradingcompaniesprovidethebestmeansforintensivecoverageofthemarketinJapan.

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

23)Channelsofdistributionoftenposelongevityproblemsastheytendtobesmallinstitutions.

24)IntheUnitedStates,ifamiddlemanisterminated,thecompanyisrequiredtopay1percentofthemiddleman'saverageannualcompensationmultipliedbythenumberofyearsthemiddlemanservedasafinalsettlement.

25)Selectingamiddlemanisusuallyassimpleasaskingforarecommendationfromacompany'slocalmanager.

26)Legaladviceisnotnecessarywhenenteringdistributioncontractswithmiddlemen.

27)Ideally,awebsiteshouldbetranslatedintothelanguagesofthetargetmarket.

28)Ane-vendorinaforeignmarketcangenerallyignorecultureasanimportantvariablebecausethecommerceisbeingdoneviatheInternet,whichisculturallyinsensitive.

29)Achangeoftransportationmodecanaffectachangeinpackagingandhandling,inventorycosts,warehousingtimeandcost,anddeliverycharges.

30)Aphysicaldistributionsysteminvolvesonlythephysicalmovementofgoods.

31)The________processincludesthephysicalhandlinganddistributionofgoods,thepassageofownership(title),andthebuyingandsellingnegotiationsbetweenproducersandmiddlemenandbetweenmiddlemenandcustomers.

A)logistics

B)marketing

C)channel

D)distribution

E)control

32)Ina________distributionstructure,animportercontrolsafixedsupplyofgoodsandthemarketingsystemdevelopsaroundthephilosophyofsellingalimitedsupplyofgoodsathighpricestoasmallnumberofaffluentcustomers.

A)domestic

B)traditional

C)manufacturer-oriented

D)service

E)customer-oriented

33)Whichdistributionstructureisalsoknownasatraditionaldistributionstructure?

A)Export-oriented

B)Import-oriented

C)Manufacturer-oriented

D)Service-oriented

E)Customer-oriented

34)Inanimport-orienteddistributionstructure,

A)theimporter–wholesalertraditionallyperformsmostofthemarketingfunctions.

B)therelationshipbetweentheimporterandanymiddlemanissimilartothatfoundinamass-marketingsystem.

C)severalindependentagenciesprovidefunctionssuchasadvertising,marketingresearch,andfinancing.

D)theideaofachannelasachainofintermediariesperformingspecificactivitiesiscommon.

E)thedistributionsystemisnationalinscope.

35)Distributionin________haslongbeenconsideredthemosteffectivenontariffbarriertothatmarket.

A)China

B)Japan

C)theU.S.

D)WesternEurope

E)Canada

36)WhatgroupisconsideredtobethefoundationoftheJapanesedistributionsystem?

A)consumers

B)brokers

C)manufacturers

D)smallretailers

E)wholesalers

37)WhichfeaturecharacterizesthebusinessphilosophyofJapanesedistributionchannels?

A)loyalty

B)directsales

C)fastdelivery

D)variety

E)pricecompetition

38)InJapan,undertheLarge-ScaleRetailStoreLaw,allproposalsfornew"large"storeswerefirstjudgedbythe

A)TransportandTourismDepartment.

B)InternalAffairsandBusinessCouncil.

C)MinistryofInternationalTradeandIndustry.

D)HealthandWelfareCommittee.

E)LocalRetailersUnion.

39)WhatmakesWalmart'stransactionswithsuppliershighlyefficientandlowersitscostofoperations?

A)cleanbusinessreputation

B)internalInternet-basedsystemwithsuppliers

C)lackofcompetitors

D)outreachprogramstoplacatesmallretailers

E)abilitytoinfluenceforeigngovernments

40)GeneralMotors,________,andDaimlerChryslerhavecreatedasingleonlinesitecalledCovisintforpurchasingautomotivepartsfromsuppliers.

A)ToyotaMotorCorporation

B)HondaMotorCompany

C)FordMotorCompany

D)NissanMotorCompany

E)HyundaiMotors

41)Therateofchangeinretailingaroundtheworldappearstobedirectlyrelatedtothe

A)literacyrate.

B)rateofinflation.

C)populationgrowth.

D)speedofeconomicdevelopment.

E)currencyexchangerate.

42)Whatisoftentheapproachofchoiceinmarketswithinsufficientorunderdevelopeddistributionsystems?

A)directmarketing

B)abigwholesalestore

C)Internetselling

D)adiscounthouse

E)televisionadvertising

43)WhathasproventobeanimportantwaytobreakthetradebarrierimposedbytheJapanesedistributionsystem?

A)directsalesthroughcatalogs

B)largewholesalestores

C)streetcornerkiosks

D)Internetshopping

E)televisionadvertising

44)Whichgroupisfrequentlycriticizedfornotrepresentingthebestinterestsofamanufacturer?

A)globalwholesalers

B)tradingcompanies

C)consumers

D)merchantmiddlemen

E)brokers

45)Whichgrouptakestitletomanufacturers'goodsandassumethetradingrisks?

A)merchantmiddlemen

B)brokers

C)buyingoffices

D)exportagent

E)agentmiddlemen

46)Thechannelprocessincludesallactivities,beginningwiththemanufacturerandendingwiththe

A)wholesaler.

B)agentmiddlemen.

C)merchantmiddlemen.

D)retailer.

E)finalconsumer.

47)Adisadvantagewhenusinghome-countrymiddlemenasintermediariesinthedistributionprocessisthe

A)largefinancialinvestmentrequired.

B)limitedcontroloverthedistributionprocess.

C)largemanagerialinvestmentsrequired.

D)limitednumberofretailersintheforeigncountrywhocanbereached.

E)largeamountofcommission.

48)HowareglobalretailerslikeIKEA,Costco,andWalmartbecomingmajordomesticmiddlemenforinternationalmarkets?

A)Theymaintaintheircoremarketingapproacheswhilelocalizingthearrayofproducts,promotions,andotherperipheralaspectsoftheiroperations.

B)Theyworkunderthenamesofthemanufacturersandfunctionaslow-cost,independentmarketingdepartmentswithdirectresponsibilitytotheparentfirms.

C)Theyhaveminimuminvestmentcostsastheydonotcommittoinvestingincompanypersonnel.

D)Theyserveastheproducer'sexportdepartmentbuthaveashort-termrelationship,coveronlyoneortwomarkets,andoperateonastraightcommissionbasis.

E)Theyofferreductionofexportcosts,demandexpansionthroughpromotion,tradebarrierreduction,andimprovementoftradetermsthroughbilateralbargaining.

49)Home-countrymiddlemenarealsoknownas________middlemen,andarelocatedintheproducingfirm'scountry.

A)area

B)local

C)merchant

D)domestic

E)regional

50)Whatcompanyoffersamanufacturer'sretailstore?

A)Toys"R"Us

B)Walmart

C)Costco

D)Benetton

E)IKEA

51)Amarketingmanagerofafirmwithsmallinternationalsalesvolumeislookingforamiddlemanwhocantakeresponsibilityforpromotionofthecompany'sproducts,creditarrangements,physicalhandling,andmarketresearch.Also,themiddlemanmustbeabletoprovideinformationonfinancial,patent,andlicensingmatters.Whattypeofmiddlemanwouldbethebestchoiceforthismarketingmanagerifhewantstomeethisobjectives?

A)amanufacturer'sexportagent

B)anexportmerchant

C)atraderepresentative

D)anexportmanagementcompany

E)acomplementarymarketer

52)Whichstatementistrueregardinganexportmanagementcompany(EMC)?

A)Itactsasamiddlemanforfirmswithrelativelylargeinternationalsalesvolume.

B)Itoperatesunderitsownnamewhileprovidingservicestoanotherfirm.

C)Itdoesnothavedirectresponsibilitytotheparentfirm.

D)Itactsasamiddlemanforfirmswillingtoinvolvetheirownpersonnelininternationalfunctions.

E)Itcallsforsmallerinvestmentfromtheparentfirmtogetintointernationalmarkets.

53)Amajordisadvantageof________isthattheycanseldomaffordtomakethekindofmarketinvestmentneededtoestablishdeepdistributionforproducts.

A)exportmanagementcompanies

B)tradingcompanies

C)importassociations

D)globalretailers

E)complementarymarketers

54)________offeroneoftheeasiestroutestogainentranceintothecomplicatedJapanesedistributionsystembecausetheyvirtuallycontroldistributionthroughalllevelsofchannelsinJapan.

A)Traderepresentatives

B)Tradingcompanies

C)Brokers

D)Exportmanagementcompanies

E)Complementarymarketers

55)AmajorgoaloftheExportTradingCompany(ETC)Actwasto

A)allowU.S.companiestobypasstaxlawswithrespecttointernationaltrading.

B)removeantitrustdisincentivestoexportactivitiesintheU.S..

C)bypasstradebarriersinforeigncountries.

D)earnthehighestpossibleprofitsinforeigncountries.

E)combineexportshipmentswithinsinglecontainers.

56)Whicharrangementisbestundertakenwhenafirmwantstokeepitsseasonaldistributionchannelsfunctioningthroughouttheyear?

A)priceskimming

B)usingtheservicesofatradingcompany

C)establishingaretailstore

D)usingtheservicesofanexportmanagementcompany

E)complementarymarketing

57)IGPownedalargewarehouseinEnglandwhereitstoredanddistributedbooks.ItwasapproachedbyagreetingcardcompanyintheU.S.todistributethoseaswell.SincetheproductswouldgointosimilarmarketsandIGPcouldmakeaprofitonthedistributionofthegreetingcardline,itdecidedtoparticipatein

A)backhauling.

B)demandshifting.

C)piggybacking.

D)shapeshifting.

E)skimming.

58)Companieswithmarketingfacilitiesorcontactsindifferentcountrieswithexcessdistributioncapacityoradesireforabroaderproductlinesometimestakeonadditionallinesforinternationaldistribution.Theformalnameforsuchactivitiesis

A)skimming.

B)backhauling.

C)complementarymarketing.

D)exportmarketing.

E)demandshifting.

59)A(n)________isanindividualagentmiddlemanoranagentmiddlemanfirmprovidingasellingserviceformanufacturersthatcoveronlyoneortwomarkets.

A)manufacturer'sretailstore

B)exportmanagementcompany

C)Webb-Pomereneexportassociation

D)globalretailer

E)manufacturer'sexportagent

60)A________providesasellingserviceforamanufacturer,hasashort-termrelationshipwiththemanufacturer,andoperatesonastraightcommissionbasis.

A)manufacturers'retailstore

B)tradingcompany

C)globalretailer

D)manufacturer'sexportagent

E)complementarymarketer

61)TheWebb-PomereneActof1918madeitpossibleforAmericanbusinessfirmstojoinforcesinexportactivitieswithoutbeingsubjecttothe

A)ShermanAntitrustAct.

B)FederalCommunicationsAct.

C)TradeCommissionAct.

D)Food,Drug,andCosmeticsAct.

E)Robinson-PatmanAct.

62)A(n)________isamiddlemaninaforeigncountryorU.S.possessionthatcanobtainacorporatetaxexemptiononaportionoftheearningsgeneratedbythesaleorleaseofexportproperty.

A)Webb-Pomereneexportassociation

B)manufacturer'sexportagent

C)exportmanagementcompany

D)complementarymarketer

E)foreignsalescorporation

63)________areatypeofdomesticmiddleman.

A)Soleproprietors

B)Exportmanagementcompanies

C)Foreigndistributors

D)Lessors

E)Jointventures

64)Inthecontextofthetypesofdomesticmiddlemen,theWTOin2003ruled________tobeinviolationofinternationaltraderules,thusstartingamajortradedisputewiththeEuropeanUnion.

A)foreignsalescorporations

B)directmarketingpartnerships

C)tradingcompanies

D)exportpromotioncompanies

E)Webb-Pomereneexportassociations

65)Whatistrueofforeignsalescorporations?

A)Theyarecommonlycalledpiggybackers.

B)Theycanonlyberelatedtoamanufacturingparentandnotanindependentbroker.

C)TheyvirtuallycontroldistributionthroughalllevelsofchannelsinJapan.

D)Theyaccumulate,transport,anddistributegoodsfrommanycountries.

E)Theycanfunctionasaprincipaloracommissionedagent.

66)WhatisoneofthesixCsofdistributionchannelstrategy?

A)communication

B)continuity

C)capacity

D)commission

E)contribution

67)Whatisoneofthekeyelementsindistributiondecisionswhenitcomestochoosingchannels?

A)selectionofoptimumcontainersizes

B)volumediscountsandrebates

C)functionsperformedbymiddlemen

D)localadvertisingmodes

E)targetmarketculture

68)Whatisacriticalelementassociatedwithusingaparticulartypeofmiddleman?

A)knowledgeofthecultureofthetargetmarket

B)numberofemployees

C)modeoftransportationformovinggoods

D)influenceoverthetargetmarket

E)cash-flowpatterns

69)Whichmodeofdistributionintheforeignmarketwillrequireacompanytomakethemaximumfinancialinvestment?

A)exportmanagementcompanies

B)tradingcompanies

C)exportassociations

D)directsalesforce

E)complementarymarketers

70)WhatisoneofthehighestcostsofdoingbusinessinChina?

A)moneyrequiredforthetransportationofgoods

B)moneyrequiredforobtainingappropriatepermits

C)costoflocaladvertising

D)capitalrequiredtomaintaineffectivedistribution

E)costofcustomizingproductsfortheChinesemarket

71)Whichmodeofdistributionaffordsthemostcontroloverthedistributionchannelsbutoftenatacostthatisnotpractical?

A)complementarymarketers

B)directsalesforce

C)exportassociations

D)tradingcompanies

E)exportmanagementcompanies

72)Transportingandstoringgoods,breakingbulk,providingcredit,localadvertising,salesrepresentation,andnegotiationswithmiddlemenmostdirectlyrelatetowhichofthesixCsofthechanneldistributionstrategy?

A)cost

B)control

C)coverage

D)character

E)continuity

73)Onewaytogetaroundthedifficultyoffull-marketcoverageinacountryisto

A)seeksignificantpenetrationinmajorpopulationareas.

B)avoidcountrieswithmultiplelanguages.

C)assesscountriesintermsofmarketsegments,notgeographicsegments.

D)keepmarketingeffortstohighlydevelopedareas.

E)focusontheuseofonechannel.

74)Mostmiddlemenhandlebrandsingoodtimeswhenthelineismakingmoneybutquicklyrejectsuchproductswithinaseasonorayeariftheyfailtoproduceduringthatperiod.ThisisaproblemassociatedwithwhichofthesixCsofdistributionchannelstrategy?

A)character

B)continuity

C)control

D)cost

E)capitalrequirement

75)Onereasonchannelsofdistributionoftenposelongevityproblemsisthatmostmiddlemen

A)donotmaintainsufficientinventorytoservecustomers.

B)lackproductknowledgeresultinginlowsalesvolume.

C)havelittleloyaltytotheirvendors.

D)tendtoslowdowndistributiontoextracthighercommissions.

E)donothavesufficientknowledgeofthetargetmarket.

76)Whatsubjectareashouldbeonthechecklistofcriteriaforevaluatingmiddlemenservicingamarket?

A)flexibility

B)sensitivity

C)culturalempathy

D)productivity

E)breadthofknowledge

77)Whichactionshouldbetakenwhenbeginningthesearchforprospectivemiddlemen?

A)short-listingthemiddlemen

B)studyingthetargetmarket

C)evaluatingtheavailablefinancialresources

D)designingthesalesforcerequired

E)understandingthemissionofthemanufacturingfirm

78)SixtypercentoftheJapanesepopulationlivesinthe________marketarea,whichessentiallyfunctionsasonemassivecity.

A)Tokyo–Nagoya–Osaka

B)Komaki–Tokoname–Kariya

C)Nagoya–Handa–Seto

D)Nishio–Okazaki–Inazawa

E)Inuyama–Nisshin–Takahama

79)Accordingtoexperiencedexporters,whatistheonlyeffectivewaytoselectamiddleman?

A)Conductabackgroundcheckonallthedistributorsavailableinthetargetmarket.

B)Issuearequest-for-proposaltoalldistributorsinthetargetmarketandevaluatetheirresponses.

C)Consultothermanufacturersofsimilarproductsandselectthedistributorrecommendedbythem.

D)Consulttradeorganizationsandselectthedistributorrecommendedbythem.

E)Talkpersonallytoultimateconsumerstofindwhomtheyconsidertobethebestdistributors.

80)Thecloserthecompanywantstogettothecustomerinitschannelcontact,

A)thelargerthesalesforcerequired.

B)themoreroutinethechannel-buildingprocessbecomes.

C)themorelikelythecompanywillusemiddlemen.

D)themoreimportantitistoconsultwithtradeorganizations.

E)themoreeffectiveuseoftheInternetwillbe.

81)AbelCorp.isawholesalerforGlobalElectricintheFrenchmarket.GlobalElectricdiscoveredthatAbelCorp.wasdivertingsomeofitsgoodstotheEnglishmarket.AbelcouldgetagreaterprofitintheEnglishmarketbecausethegoodswereboughtbythefirmatacheaperpriceinFrance.WhatisAbelengagedin?

A)blackmarketing

B)parallelimporting

C)backwashing

D)industrialpiracy

E)smuggling

82)Parallelimportingisalsoknownas

A)secondarywholesaling.

B)blackmarketing.

C)backwashing.

D)industrialpiracy.

E)smuggling.

83)E-commerceismoredevelopedin________thantherestoftheworld,partlybecauseofthelowercostofaccesstotheInternetthanfoundelsewhere.

A)China

B)Brazil

C)Switzerland

D)Japan

E)theUnitedStates

84)Whendevelopingawebsite,whatistrueabouttheuseoflanguage?

A)Englishshouldbeused,asitisthemostuniversallanguage.

B)Itisnotnecessarytousemultiplelanguagesbecausethecustomerwillbridgethelanguagegap.

C)Simpletranslationofwebpagesissufficienttoreachforeignmarkets.

D)Languageandculturedonotimpactawebsite'smessageinanysignificantway.

E)Acountry-specific(andlanguage-specific)websitemaymakethedifferencebetweensuccessandfailure.

85)Awebsiteshouldbeseenas

A)asolemeansofadvertising.

B)avehicleforproductdelivery.

C)asubstituteformarketinginmorethanonelanguage.

D)awaytogetarounddifferencesincultures.

E)ameansofpromotionandaretailstore.

86)E-commerceisaformof________selling.

A)direct

B)parallel

C)dual

D)indirect

E)targeted

87)Awebsiteandtheproductmustbeculturallyneutral,whichcanbeaproblemwhenitcomestocolor.Forinstance,thecolorredisassociatedwithsocialismin

A)theUnitedStates.

B)China.

C)Brazil.

D)Uruguay.

E)Spain.

88)Cargoshipsarereducingtransittimeandarelargerandthusabletocarrymorecontainers.WhatisadisadvantageofthisforU.S.companies'imports?

A)Theyaretakingbusinessawayfromotherformsoftransit.

B)SomeshipsaretoolargetofitintoU.S.ports.

C)Thecostisbecomingprohibitive.

D)ContainerscannotbeshippedbyrailinEurope.

E)Theyhaveimpededinvestmentinsupersonicpassengerjets.

89)OneresultoftheEU'sunificationis

A)theeliminationoftradebarrierswithcountriesoutsidetheEU.

B)theacceptanceofuniversalpricesonbasicgoods.

C)theeliminationoftransportationbarriersamongmembercountries.

D)anincreaseinthenumberofwarehousesinmembercountries.

E)eliminationoftheneedforcargoshipsfordistribution.

90)Whathappensinanimport-orienteddistributionstructure?Howareintermediariesaffected?

91)TheJapanesedistributionstructurehasfourdistinguishingfeatures.DiscusstheseandexplainhowtheyimpactJapan'smarket.

92)Whatarethemainfeaturesofexportmanagementcompanies?Describetheiradvantagesanddisadvantages.

93)Howdoescomplementarymarketingextendacompany'sdistribution?Whenisacompanymostlikelytouseit?

94)DiscusstheExportTradingCompany(ETC)ActanditseffectsonU.S.firms.

95)Whatisaforeignsalescorporation?

96)Discussthecontinuityproblemassociatedwithachannelofdistribution.

97)Whatarethevarioustechniquesthatcanbeusedtomotivatemiddlemen?

98)Whatissecondarywholesalingandwhenmightitbeused?

99)CompanyBfoundoutthatthemiddlemanitwasusingwasskimmingmoneyfromitsprofits,soitdecidedithadtoterminatetherelationship.WhatdoesCompanyBneedtoknowbeforeterminatingamiddlemaninaforeigncountry?

Whatarethesixissuesthatmustbetakenintoconsiderationbyane-vendor?

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:15-01Thevarietyofdistributionchannelsandhowtheyaffectcost