Question 1

Which of the following statements is true of the influence of customer characteristics on a company's channel strategy?

Accepted Answer

A)   The need for multiple channel intermediaries decreases as the number of customers increases.
B)   The need for multiple channel intermediaries is high during the early stages of market development.
C)   The need for multiple channel intermediaries increases toward the last stages of market development.
D)   The technique of direct selling is one of the most cost-effective means of serving large-volume retailers.E) A) and B)
F) A) and C)

Question 2

It is expensive and often impossible to terminate distributor and agent agreements.

Accepted Answer

A) True 
 B)False

Question 3

The purpose of marketing channels is to create ________.

Accepted Answer

A)   time utility
B)   place utility
C)   form utility
D)   all of the aboveE) A) and B)
F) None of the above

Question 4

Which of the following best explains form utility?

Accepted Answer

A)   the availability of answers to questions about useful product features and benefits
B)   the availability of a product that is processed, prepared, ready to use, and in proper condition
C)   the availability of a product or service in a location that is convenient to a potential customer
D)   the availability of a product or service when desired by a customerE) C) and D)
F) None of the above

Question 5

Distribution channels in markets around the world are among the most highly uniform aspects of national marketing systems.

Accepted Answer

A) True 
 B)False

Question 6

How do customer characteristics influence channel design?

Accepted Answer

Customer characteristics constitute a ma...

Question 7

Direct selling that bypasses wholesale intermediaries is a cost-effective means of serving large-volume retailers.

Accepted Answer

A) True 
 B)False

Question 8

In the case of direct involvement, a company that wants to enter a competitive market should ________.

Accepted Answer

A)   establish franchised outlets in the new market
B)   approach retailers selling substitute products in the new market
C)   approach retailers selling complementary products in the new market
D)   establish bonds with distributors or wholesalers in the new marketE) None of the above
F) All of the above

Question 9

Half of Japan's cars are sold through door-to-door selling.

Accepted Answer

A) True 
 B)False

Question 10

While distributing industrial goods, the larger a target market, the more feasible it is for a manufacturer to ________.

Accepted Answer

A)   rely on distributors or agents
B)   increase the number of intermediary levels
C)   use its own sales force
D)   rely on a wholesaler's work forceE) A) and D)
F) A) and C)

Question 11

Door-to-door selling is growing in popularity in many countries at later stages of market development.

Accepted Answer

A) True 
 B)False

Question 12

Bulky products require channel arrangements that minimize the number of times products change hands between channel intermediaries before reaching customers.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is true of the influence of product characteristics on a company's channel strategy?

Accepted Answer

A)   Products with low unit prices are usually sold using a company's sales force.
B)   Products that are sold using direct distribution generally require narrow selling margins.
C)   Perishability is an important product characteristic that influences channel strategy.
D)   Bulky products are ideally distributed through direct-sales systems globally.E) None of the above
F) C) and D)

Question 14

Distribution channels are composed of coordinated groups of individuals or firms that add utility to a product or service.

Accepted Answer

A) True 
 B)False

Question 15

The need for multiple channel intermediaries increases as the number of customers increases in a market.

Accepted Answer

A) True 
 B)False

Question 16

Japan has a characteristic distribution pattern where several layers of small wholesalers play an important role in the distribution of food.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true of door-to-door selling?

Accepted Answer

A)   It is a relatively inexpensive form of distribution.
B)   It is growing in popularity in many countries at later stages of market development.
C)   It fails to take advantage of and utilize local market strengths.
D)   It requires high gross margins and can result in higher product prices.E) A) and B)
F) B) and D)

Question 18

Which of the following statements is true of transportation in the context of global product distribution?

Accepted Answer

A)   Global firms fail to survive in a "two-speed world" that has a high growth rate and low per capita income.
B)   Companies in low-growth markets need to deliver high volumes of low-cost products profitably with little infrastructure to support it.
C)   Companies in high-growth markets need to develop innovative and cost-competitive logistics to surpass competitors without sacrificing profit margins.
D)   A company with home-market competitive advantages in both upstream and downstream activities may be forced to reconfigure distribution activities to enter new global markets.E) None of the above
F) All of the above

Question 19

Which of the following involves a contractual agreement whereby a company grants the right to sell its goods and services to another company?

Accepted Answer

A)   joint ventures
B)   franchising
C)   cross-licensing
D)   acquisitionsE) All of the above
F) C) and D)

Question 20

Which of the following is an example of having indirect involvement when entering a competitive market?

Accepted Answer

A)   using retail stores
B)   using distributors
C)   using manufacturer's own sales force
D)   selling through company websiteE) B) and D)
F) None of the above

Exam 12: Global Marketing Channels

In the case of direct involvement, a company that wants to enter a competitive market should ________.

Correct AnswerverifiedShow Answer

Which of the following is an example of having indirect involvement when entering a competitive market?

Correct AnswerverifiedShow Answer

Which of the following statements is true of door-to-door selling?

Correct AnswerverifiedShow Answer

Distribution channels in markets around the world are among the most highly uniform aspects of national marketing systems.

Correct AnswerverifiedShow Answer

Door-to-door selling is growing in popularity in many countries at later stages of market development.

Correct AnswerverifiedShow Answer

Which of the following involves a contractual agreement whereby a company grants the right to sell its goods and services to another company?

Correct AnswerverifiedShow Answer

Which of the following statements is true of the influence of product characteristics on a company's channel strategy?

Correct AnswerverifiedShow Answer

Which of the following statements is true of the influence of customer characteristics on a company's channel strategy?

Correct AnswerverifiedShow Answer

Which of the following best explains form utility?

Correct AnswerverifiedShow Answer

Distribution channels are composed of coordinated groups of individuals or firms that add utility to a product or service.

Correct AnswerverifiedShow Answer

The purpose of marketing channels is to create ________.

Correct AnswerverifiedShow Answer

While distributing industrial goods, the larger a target market, the more feasible it is for a manufacturer to ________.

Correct AnswerverifiedShow Answer

How do customer characteristics influence channel design?

Correct AnswerverifiedCustomer characteristics constitute a ma...View AnswerShow Answer

Bulky products require channel arrangements that minimize the number of times products change hands between channel intermediaries before reaching customers.

Correct AnswerverifiedShow Answer

Japan has a characteristic distribution pattern where several layers of small wholesalers play an important role in the distribution of food.

Correct AnswerverifiedShow Answer

Which of the following statements is true of transportation in the context of global product distribution?

Correct AnswerverifiedShow Answer

Direct selling that bypasses wholesale intermediaries is a cost-effective means of serving large-volume retailers.

Correct AnswerverifiedShow Answer

It is expensive and often impossible to terminate distributor and agent agreements.

Correct AnswerverifiedShow Answer

The need for multiple channel intermediaries increases as the number of customers increases in a market.

Correct AnswerverifiedShow Answer

Half of Japan's cars are sold through door-to-door selling.

Correct AnswerverifiedShow Answer

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Customer characteristics constitute a ma...
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